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Transition Deadline Approaching for Category VIII Agreements

October 15, 2016 will mark three years from the effective date of the Export Control Reform transition of Categories VIII and XIX. It is vital that all agreements including items that have transitioned to the EAR be amended, or alternative licensing secured, by that time.  If all items on your DDTC agreement have transitioned to EAR jurisdiction, the agreement will no longer be valid three years after the relevant transition date.  If the agreement contains both transitioning and non-transitioning items, it will also expire after three years unless it has been amended. If the agreement contains only items that remain in the USML, the agreement is valid until its expiration date.  If the agreement contains items from multiple USML categories, it must be amended by three years following transition of the last rule to transition. 

 

 

For example:

 

If an agreement contains only USML Category VIII and all items are transitioning to the EAR- the agreement is no longer valid as of 10/15/16

 

If an agreement contains only USML Category VIII and some items are transitioning to the EAR and some items will remain on the USML- the agreement must be amended by 10/15/16

 

If an agreement contains Category VIII and Category XI – the agreement must be amended by 12/30/17, the transition date for Category XI (which would be the last transition date for USML categories on the agreement)

 

 

Also as a reminder, all DSP-5s with transitioning items may be used until their date of expiration.

 

Please contact us with any questions on specific requirements to amend agreements.

 

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