U.S. Moves to Ease Some Export Controls - Global Trade Magazine
  July 2nd, 2015 | Written by

U.S. Moves to Ease Some Export Controls

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  • The proposed rules to ease some military-related export controls are part of a broader reform effort.
  • Products affected by eased rules may be eligible for export without prior governmental authorization.
  • Companies covered by eased export controls should re-examine global markets.

The U.S. Departments of State and Commerce proposed earlier this month new rules to transfer certain items from more restrictive to less restrictive export control lists. The proposed rules are part of President Obama’s broader export control reform effort designed to streamline the U.S. export control system.

The transitioned items will be eligible for greater license exceptions, which will allow for the export and re-export of those items without the need for export licenses or other government authorization.

The lists affected include the U.S. Munitions List (USML) Category XIV—which covers chemical agents, biological agents, and associated equipment—and Category XVIII—which covers directed energy weapons. Under the proposal, items from Category XIV—primarily dissemination, detection and protection equipment—and and from Category XVIII—tooling, production equipment, test and evaluation equipment, and test models—will be transferred to the less restrictive Commerce Control List (CCL).

The proposed rule would also revise USML Categories XIV and XVIII to more precisely describe the items still controlled by the USML. Items no longer controlled in the revised USML will be transferred to new Export Control Classification Numbers on the CCL.

Experts say that once implemented, the rules will change affected companies’ export compliance responsibilities as well as their perspectives on global markets and international product development efforts.


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