Industry Requests Elimination of Implementation Period in Public Comments for Proposed Revisions to USML XV
Industry urged the Obama administration to waive the proposed 180-day implementation period for the proposed move of spacecraft, including satellites, from category VI of the U.S. Munitions List (USML) to the Commerce Control List (CCL). Associations such as the National Foreign Trade Council (NFTC) said that the proposed rules for spacecraft and related items (see 13052318), published May 24, would bring “clarity to a field of regulation” while enhancing competitiveness in technology sectors. However, NFTC said that the effective date should be “significantly shortened.”
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NFTC has supported long implementation periods in the past due to members’ concerns that it would take time to adjust to compliance procedures and reorganize licensing operations, but said costs of delayed implementation of the final rule would outweigh any benefits in this case. Along with NFTC, the Satellite Industry Association, technology association TechAmerica, IBM, and Lockheed Martin made similar recommendations. Lockheed Martin said the 180-day period “will not aid the only industry affected by it but will in fact harm it.” IMB raised concerns that the lengthy implementation period could lead to the “inappropriate capture” by the USML of commercial integrated circuits (ICs) that meet or exceed all technical parameters contained in category XV. These ICs were originally developed for civilian applications and not specially designed for military use, NFTC said.
IBM said that the long implementation dates of the proposed rules could potentially affect the company’s “business decisions this year, along with design activity for 2013 and 2014.” The 180-day period, which would put the ruling’s effective date “sometime in mid-2014,” could also have negative repercussions for U.S. competitiveness, they added.
In order to avoid these issues, TechAmerica requested the elimination of USML Category XV(d) and transfer of radiation hardened ICs to Export Administration Regulations (EAR) control (see 11071318) be made effective on the publication date of the final rule.
The full list of public comments can be viewed (here).