Exporters Adjusting to Export Control Changes, but Realizing Benefits, BIS Official Says
ARLINGTON, Va. -- Although exporters whose products are transferring from control via the International Traffic in Arms Regulations to the Commerce Control List are coping with “a lot of adjustment,” exporters, by and large, have benefited from export control reform, Karen Nies-Vogel, director of the Bureau of Industry and Security’s Office of Exporter Services, said June 7 during the American Association of Exporters and Importers conference.
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For example, export control reform has allowed exporters freedom to use their cloud computing servers in any country, except for BIS-designated “D5” (arms embargo) countries or Russia, when sending, taking or storing unclassified technology that is secured through end-to-end encryption, BIS attorney Liz Abraham pointed out during a panel. In addition to these new regulations, the State and Commerce departments are working to consolidate ITAR and CCL application forms into one document, and will solicit public input soon, said Steven Emme, senior policy advisor in the office of BIS’ assistant secretary of export administration. State has seen a 57 percent reduction in licensing volumes across its 15 ITAR categories since export control reform started, Emme said.
State and Commerce still must reform six ITAR categories and integrate definitions into the CCL, with the next final rules tackling U.S. Munitions List Categories XIV (toxicological agents, including chemical agents, biological agents and associated equipment), and XVIII (directed-energy weapons), Emme said. The final rules are currently “undergoing the notification” process on Capitol Hill, but the final drafts have cleared the Office of Management and Budget’s final interagency review process, and should publish later this summer, he said. “For these categories … we generally allow for a 6-month delayed implementation,” Emme said. “That will be different for these categories. We anticipate that we will have an effective date of December 31.”