On June 30th, 2014, the Department of State's Directorate of Defense Trade Controls (DDTC) and the Department of Commerce's Bureau of Industry and Security (BIS) concurrently published the latest Export Control Reform (ECR) changes in a final rule amending the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR). This is the fourth round of changes for these regulations and this change primarily impacts one category of the United States Munitions List (USML), Military Electronics (Category XI), and becomes effective December 30th, 2014. 15 of 21 categories have now been transitioned under ECR.
In addition to the changes to Category XI, this final rule removes paragraphs (h)(21) and (h)(22) from Category VIII of the USML and paragraph (f)(7) from Category XIX of the USML, because they will be superseded by paragraphs (c)(2), (c)(3), and (c)(11) in USML Category XI.
Category VIII has also been modified to ensure that certain wing folding systems for commercial aircraft, and their related software and technology, are not controlled as defense articles on the USML; however, the Department of Commerce, with the concurrence of the Departments of Defense and State, has stated in the final rule that the Anti-Terrorism (AT) controls of Export Control Classification Numbers (ECCN) 9D991 and 9E991 in the EAR do not provide adequate control for development software and technology for wing folding systems to be used on large commercial aircraft and greater control is necessary because the software and technology required to develop a robust civil system would confer insights that would be useful to the development of a military wing folding system.
Software and technology related to wing folding systems will be controlled for one year under ECCNs 0D521 and 0E521, respectively. In the interim, the U.S. Government intends to submit a proposal to control these items on the Wassenaar Arrangement Dual-Use List.
While the wing folding systems change is effective August 15th, 2014 in the USML, the change to the software and technology for those systems in the EAR is effective July 1st, 2014.