Tag: USML

Agencies Continue Shift to Modern Export Control Reform System

Manufacturers have long supported a new approach to export controls, aimed at today’s threats rather than yesterday’s Cold War. Real progress is being made to implement the President’s export control reform initiative, with further updates to the U.S. Munitions List (USML) and the Commerce Control List (CCL) published this week.

The State Department published on July 8 a final rule revising USML Categories VI (Surface Vessels of War and Special Naval Equipment), VII (Ground Vehicles), XIII (Materials and Miscellaneous Articles), and XX (Submersible Vessels and Related Articles). The Commerce Department concurrently published a final rule to add CCL categories for the military vehicles and related items; vessels of war and related items; submersible vessels, oceanographic equipment and related items; and auxiliary and miscellaneous items that the President has determined no longer warrant control on the USML. These changes will be effective on January 6, 2014.

This new rule follows previously published revisions to USML Categories VIII (Aircraft) and XIX (Gas Turbine Engines). The Commerce Department published parallel changes to the CCL, along with the initial Export Control Reform implementation steps, in April.

Previous proposed rules and public comments are available on this tracking document. BIS continues to host weekly teleconferences on aspects of the Export Control Reform Initiative. Details and past presentations are available online here.

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Department of Defense Releases Risk Assessment on Removing Satellites from Export Control List

The Defense Department released a report today assessing the risk of transferring satellites and space-related items from the U.S. Munitions List (USML).  The so-called “1248 Report” was requested from the Secretaries of State and Defense in Section 1248 of the National Defense Authorization Act for FY 2010. The White House also issued a Fact Sheet on the report.

An excerpt:

“For the sake of national and economic security, the Departments recommend that authority to determine the appropriate export control status of satellites and space-related items be returned to the President. Specifically: The President should be authorized to determine the export control jurisdiction status of satellites and related items; and The Department of Defense should be authorized to determine the need to apply special export controls to U.S. companies providing technical services in support of foreign satellite or launch vehicle development and associated launch operations, and to be reimbursed as appropriate.”

Appendix 1 of the report includes a draft proposal of USML Category XV (Satellite and Related Items), and Appendix 2 includes a draft proposal for CCL ECCN 9X515 (Spacecraft and Related Commodities). These two proposals will need legislation to be enacted.

This issue was examined by the House Foreign Affairs Committee in February, with testimony by the Aerospace Industries Association and Satellite Industry Association. Earlier this year, AIA released a study on satellite export policy that outlined the case for modernized export controls on satellites and related components.

Rep. Howard Berman and Rep. Don Manzullo also introduced legislation (H.R. 3288) last fall that would allow the president to shift satellites from the USML to the CCL. (continue reading…)

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