Export Administration Regulations (EAR) and Commercial Exports

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”

By: Thad McBride and Cheryl Palmeri

As part of the Obama Administration’s Export Control Reform Initiative, the U.S. Department of Commerce, Bureau of Industry and Security (BIS) has recently revised the Export Administration Regulations (EAR) by adding a new Export Classification Control Number (ECCN) series to the Commerce Control List (CCL).  The newly created ECCN series 0Y521 is a temporary holding classification for items that are subject to the EAR but are not yet identified in an existing ECCN.
Continue Reading BIS Creates a Temporary Holding Classification Number on the CCL

By: Curt Dombek, Brian Weimer, Dan Brooks, and Reid Whitten

Since 1999, strict controls on the export of U.S. satellites and satellite components have drastically eroded U.S. manufacturers’ market share in the global satellite industry.  On April 18, 2012, the U.S. Departments of State and Defense released the “1248 Report” containing findings related to reducing some of those controls.  The 1248 Report assesses the national security risks of removing certain satellites and related components from the tightly controlled United States Munitions List (USML) and transferring them to the generally less restrictive Commerce Control List (CCL).  The report concludes that most communications satellites, lower-performing remote sensing satellites, and related components could be transferred from the USML to the CCL without harming U.S. national security.  The transfer of these items to the CCL could greatly benefit the U.S. satellite industry by significantly easing the export controls placed on its products.
Continue Reading Proposed Easing of Satellite Export Controls Could Benefit U.S. Satellite Industry

By: John M. Hynes

The U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”) has issued welcome guidance for those wishing to provide personal communications services or software to individuals in Iran. On March 20, 2012, OFAC released interpretive guidance regarding the scope of the personal communications general and specific licenses found in Section 560.540 of the Iranian Transactions Regulations, 31 C.F.R. part 560 (“ITR”). On the same day, OFAC also revised the ITR definition of the term “entity owned or controlled by the Government of Iran”.

While the personal communications licenses remain limited in scope, OFAC’s new interpretive guidance should help exporters understand what specific services and software may be provided to individuals in Iran.
Continue Reading OFAC Provides Much Needed Guidance for Anyone Wishing to Export Personal Communications Services or Software to Iran

By: Scott Maberry

As illustrated by three recent export enforcement actions, when armed government enforcement agents come to your door with PowerPoint slides, pay close attention. On March 8, 2012, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and the U.S. Attorney’s Office for the District of Wyoming announced settlements of three related cases involving illegal exports to Syria. The cases involved an increasingly common enforcement tool, the U.S. government “outreach” visit.
Continue Reading Export Control Settlements Highlight the Need to Pay Attention During “Outreach” Visits

By: David S. Gallacher

2011 was a banner year for U.S. export control laws. The Obama administration has vowed to streamline and reform the bloated U.S. export control system – promising to build “higher walls” around a narrower universe of goods and technologies requiring export licenses. Following is a summary of ten of the key reforms to U.S. export laws that took place (or were proposed) in 2011.

Continue Reading 2011 Year In Review: Export Controls and Promised Reforms