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Export Control Reform: Update and Recap

Over the last 3 years, the State and Commerce Departments have proceeded in issuing proposed and final rules related to Export Control Reform.  Below is the current status of each category and a summary of the requirements for replacement/amendment of licenses for Category VIII/XIX transitioned items related to the termination of the transition period for these categories which will be on October 15, 2016.

 

2016 End of Transition Period for USML Category VIII and XIX:

 

The Category VIII (Aircraft) and XIX (Turbine Engine) final rule was effective on October 15, 2013.  DSP-5 licenses received prior to October 15, 2013 will remain valid 48 months from the date of issuance (or as otherwise indicated on the license approval) and do not need to be replaced to reflect transitioned items.

 

Agreement approvals issued prior to the effective date of USML Category VIII/XIX transition that contain transitioning and non-transitioning items, or solely contain transitioning items, will remain valid until expired, or until October 15, 2016, whichever occurs first, unless otherwise revoked, suspended, or terminated. Therefore, any agreements containing any transitioning items that have not expired as of October 15, 2016 will need to be amended to reflect the Export Control Reform changes.

 

2017 Transitions:

 

The Category VI (Surface Vessels of War), VII (Ground Vehicles) and XX (Submersible Vehicles) final rules were effective on January 6, 2014. All agreements that provide for Category VI and VII items where items have transitioned to the EAR must be transitioned to BIS licensing authority by January 6, 2017.

 

The Category IV (Launch Vehicles, Missiles, etc.), V (Explosives), IX (Military Training Equipment), and X (Personnel Protection Equipment) final rules were effective on July, 1, 2014. The transition period ends July 1, 2017.

 

The Category XV (Spacecraft) final rule was effective on November 10, 2014.  The transition period ends November 9, 2017.

 

The Category XI (Military Electronics) final rule was effective on December 30, 2014.  The transition period ends on December 29, 2017.

 

Proposed Rules:

Additionally, for Category XII (Fire Control) an additional proposed rule was published on February 19, 2016. The comment period closed in April, but the date of publication of the final rule is unknown at this time.

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