Export Administration Regulations (EAR) and Commercial Exports

Glancing through the fictional but fascinating Hitchhiker’s Guide to the Galaxy (Rsch. Ford Prefect; Pub. Megadodo Publications), one might recognize that the assertions therein are a bit confusing. Similarly, one might become confused when reviewing another, less whimsical, guide to the galaxy: the revised United States Munitions List Category XV – Spacecraft and Related Articles.

On November 10, 2014 Export Control Reform revisions will go into effect reshaping the USML category that has covered communications satellites for nearly 20 years. If you are responsible for complying with satellite export controls, we offer the same profound and pithy advice one finds right on the cover of the Hitchhiker’s Guide, “Don’t Panic.”


Continue Reading ECR Episode XI: Rewriting the Guide to the Galaxy – Satellites Passed to Commerce Control

Here is a summary of export data for the first year after the initial implementation of ECR:

  • There have been over 61,000 shipments of 600 series items since October 2013.
  • The 600 series exports are valued at approximately $2.1 billion.
  • The top 600 series ECCNs exported are:


Continue Reading Bulletin: Commerce Department Statistics on the First Year of Export Control Reform

The Year Mark

Apparently, it is now fashionable among my peers to host elaborate parties in honor of the first birthdays of their children. I have attended a number of these fêtes, and been impressed to just what lengths the parents will go to celebrate twelve months of growth and achievement for a Guest of Honor who will almost certainly not recall the event. However, we at the Global Trade Law Blog are nothing if not fashionable (thanks to our firm’s Fashion and Apparel blog – your move, “white shoe” firms) and are not to be left out of the latest trend.  As such, we are throwing our own birthday party, celebrating the first anniversary of Export Control Reform.


Continue Reading ECR Episode IX: The Export Control Reform Turns One – What are Your Plans for the Big Celebration?

In the country pubs of Ireland, it has long been the practice of the barkeep to “stand the third round” for good customers, meaning to offer the third drink for free.  The practice makes sense both as customer appreciation and as an inducement for those fine customers to continue their revelries right where they are.  The third round represents a tipping point for the patron from an after-work drink to a full night out: the transition from a quiet pint or two, to a full investment in the proceedings.  When the bartender stands the third round, the now-happy, soon-to-be-elated customer is encouraged to see matters through to the evening’s finish.
Continue Reading ECR Episode IX – Serving up the Third Round: The Next Wave of Export Control Reform Takes Effect on July 1, 2014

The pressure on Russia continues to build.  As we previously reported here and here, throughout March, the United States and other Western powers implemented a series of sanctions against individuals and entities deemed to be involved in the political destabilization of Ukraine.  Those sanctions were restricted to specific parties, including high ranking Russian and Ukrainian officials and – notably – one Russian bank.
Continue Reading Starving the Bear: The United States Restricts Exports to Russia

Next week will mark one year since President Obama introduced the Transatlantic Trade and Investment Partnership (TTIP) to the nation in his State of the Union Address.  Although the TTIP received only a brief nod in the President’s speech, the TTIP initiative has moved forward at a stunning pace . . . well, a stunning pace for an international trade negotiation, a process that normally crawls along.  As discussed in this blog, the U.S. and European parties to this proposed partnership set an ambitious goal of finalizing an agreement by the end of 2014.  A year into the process, we take a look at the progress to date and the challenges to come.
Continue Reading Just the TTIP: A Review of the Transatlantic Partnership Agreement One Year After It Is Introduced to America

We have eaten all the holiday meals and treats, we have counted down and watched the ball drop, and we have emptied a fair few champagne bottles.  Now, we are all resolving to be leaner, nimbler, smarter, and stronger in the New Year.

So is the ITAR.


Continue Reading ECR Episode VIII: New Rules for the New Year

By: Reid Whitten

First they came by air, now by sea and by land.

On July 8, 2013, the U.S. Department of State published its final rule revising controls on naval vessels and military vehicles contained in the International Traffic in Arms Regulations (ITAR).   The changes will take effect on January 6, 2014 and will revise United States Munitions List Category VI (Surface Vessels and Special Naval Equipment), Category VII (Ground Vehicles), and Category XX, (now named Submersible Vessels and Related Articles)The final rule also makes changes to Category XII (Materials and Miscellaneous Articles) which are noteworthy and will be covered separately in an upcoming episode of this series.

This article covers highlights of the regulatory changes for naval vessels and military vehicles, notes the pattern of the Export Control Reform revisions, and comments on how these changes may be important to you and your business.
Continue Reading ECR Series Episode V: Revisions to Naval Vessel and Military Vehicle Controls – A Regulatory Sea (and Land) Change

By: Fatima Merchant

Background

In Episode 1 and Episode 2 of this series, we discussed some key points of U.S. Export Control Reform and took you through a step-by-step reclassification analysis of parts and components transitioning from the USML to the EAR.  After determining that the items you export will move from the USML to the CCL, you will need to evaluate your licensing requirements.
Continue Reading Export Control Reform Series Episode III: Harmonizing EAR Exceptions and ITAR Exemptions

By: Scott Maberry, Curtis Dombek, and Cheryl Palmeri

On April 16, 2013, the U.S. Departments of State and Commerce published the first in a series of final rules, amending the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR) in accordance with President Obama’s 2009 Export Control Reform (ECR) initiative.[1] This is a significant milestone in export reform.  The ECR aims to focus U.S. government efforts on controlling the export of sensitive technologies while streamlining exports of defense-related items to U.S. allies and partners around the world.


Continue Reading New “Beast” Rules Lessen the Export Control Burden

By: Curt Dombek and Mark Jensen

On June 19, The U.S. Department of State, Directorate of Defense Trade Controls (DDTC) and U.S. Department of Commerce, Bureau of Industry and Security (BIS) proposed a joint, largely standardized definition of “specially designed” that would apply to items on both the Commerce Control List (CCL) and U.S. Munitions List (USML).  The definition represents a major step in the functional merger of the two lists.  Once implemented, it should ease the administrative burden of U.S. export compliance on companies whose work touches both areas and clarify the status of a large number of items.  One thing it will not do (and which may never be done) is remove ambiguity from the lists altogether.
Continue Reading All Together Now: A New Joint Definition of “Specially Designed”