On Thursday, 7 March 2013, the Obama administration took a major step in its export control reform initiative: the submission of its first formal notification to Congress of proposed changes to the State Department’s U.S. Munitions List. The notification, which was required under Section 38(f) of the Arms Export Control Act, relates to the movement of certain military aircraft, aircraft parts, and gas turbine engines to the Commerce Department’s Commerce Control List.
The submission kicks off a 30-day review period, after which the Administration plans to publish a Final Rule in the Federal Register to implement the changes. The control list changes will become effective 180 days after publication of the Final Rule. Along with the control list revisions, the Final Rule is expected to include a number of significant regulatory changes that are needed to implement the export control reforms, including the definition of the term “specially designed” and “transition rules” covering licensing and other procedures for items moving to the Commerce Control List. The Administration will then roll out a series of additional notices throughout 2013 to implement revisions to other USML categories, including those covering military vehicles, commercial communications satellites, and military electronics. In a related action, President Obama issued an Executive Order to implement certain administrative measures to facilitate the export control reforms.
The Administration’s comprehensive export control reform initiative will impact nearly all companies engaged in transactions involving controlled U.S.-origin items. Companies will need to carefully review the control list revisions to identify changes in export control status and applicable licensing requirements.
Additional details regarding these developments, as well as links to the White House Fact Sheet and the new Executive Order, are available at: http://ehoganlovells.com/collect/click.aspx?u=+kwomMh7G5day8JRamO35KmiIStteeqZmogfYxbkfkc=&rh=ff000ea970f7d9310c1cf5bf5648bc31ba544f03