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BIS Final Rule Implements December 2010 Wassenaar Changes

The Bureau of Industry and Security has issued a final rule, effective May 20, 2011, that revises the Export Administration Regulations to implement the changes made to the Wassenaar Arrangement's List of Dual Use Goods and Technologies maintained and agreed to by governments participating in the Wassenaar Arrangement at the December 2010 Plenary Meeting.

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(The Wassenaar Arrangement advocates implementation of effective export controls on strategic items with the objective of improving regional and international security and stability.)

Revises 53 ECCNs to Implement Wassenaar Changes

To harmonize the Commerce Control List (CCL, 15 CFR 774, Supplement 1) with changes made at the Wassenaar Plenary Meeting, the BIS final rule amends entries on the CCL that are controlled for national security reasons in CCL Categories 1, 2, 3, 4, 5 Parts I and II, 6, 7, 8, and 9.

The 53 Export Control Classification Numbers (ECCNs) being amended are:

1A0021A0041B0011C0031C006
1C0101C0111C1112A0012B001
2B0063A0013A0023A9913B001
3E0014A0015A0015D0015E001
5D0025E0026A0016A0026A003
6A0066A0086D0016D0036E001
6E0037A0017A0027A0037E004
8A0029A0019A0039A9919B001
9B0089D0039D0049E0019E003

Additional Changes to the EAR

In addition to the changes to the CCL, the BIS final rule would amend the following sections of the Export Administration Regulations (EAR):

15 CFR 734.4 (De Minimis U.S. content)

15 CFR 740.11, Supplement 1 (License Exception GOV)

15 CFR 740.17 (License Exception ENC)

15 CFR 742.14 (Significant Items: Hot Section Technology)

15 CFR 742.15 (Encryption items)

15 CFR 743.1 (Wassenaar Arrangement)

15 CFR 772.1 (Definitions)

15 CFR 774, Supplement No. 3 (Statements of Understanding)

Savings Clause

Shipments of items removed from license exception eligibility or eligibility for export without a license as a result of this regulatory action that were on dock for loading, on lighter, laden aboard an exporting carrier, or en route aboard a carrier to a port of export, on May 20, 2011, pursuant to actual orders for export to a foreign destination, may proceed to that destination under the previous license exception eligibility or without a license so long as they have been exported from the U.S. before July 19, 2011. Any such items not actually exported before midnight, on July 19, 2011 require a license in accordance with this regulation.

See future issues of ITT for additional details on the Wassenaar changes being implemented by BIS.

(BIS final rule, D/N 110124056-1119-01, FR Pub 05/20/11)