In August 2009, President Obama directed the National Security Council and the National Economic Council to conduct a review of the U.S. export control system. The resulting reform effort is taking place in three phases. The U.S. Government is currently in the second phase of implementing Export Control Reform (ECR) through the publication of various proposed and final rules. After several years of intensive inter-agency consultations, the Departments of State and Commerce published in April 2013 final rules in the Federal Register codifying the first changes.
staff of Goforth Trade Advisors were central players in
advancing the President’s ECR initiative with input into all facets of
the effort. Our staff was intimately involved in the review of
public comments received on the proposed revisions to the U.S. Munitions
List and the companion changes to the CCL. Additionally, they
worked extensively on the formulation of the definition of “specially
designed" which is a critical element to the revision of the U.S.
Munitions List and the success of the ECR effort. The transition
guidance provided to industry on the licensing policies pre and
post-transition was drafted by our staff in collaboration with
colleagues at the Departments of State and Commerce.
the training sessions identified below, our staff will provide
invaluable insight into the intent of the U.S. Government and best
practices for companies in complying with the new regulations.
U.S. Munitions List Revisions: Overview of the new U.S. Munitions List structure; applying the “order
of review” and on-line tool from the Department of
Commerce; analysis of completed U.S. Munitions List categories and the
companion CCL entries.
Overview of both the ITAR and EAR definitions; identifying when the
definition applies; how to apply the definition; on-line tool from the
Department of Commerce.
Overview of the transition guidance; reviewing current and pending
authorizations to determine necessary actions; applicability of issued
Commodity Jurisdiction determinations; assessing requirements for items
Dual Licensing and the “x” Paragraph: Reviewing current authorizations; identifying the U.S. Munitions
List “x” paragraph is applicable and how to use it; identifying when
dual licensing is required and how to effectively obtain required
Understanding the structure of an ECCN; locating items which have
transitioned to CCL control; determining licensing requirements;
identifying the appropriate licensing mechanism for a transaction.
addition to providing training on particular ECR topics, our staff
will work with customers to design company-unique action plans to
implement the new regulations. These action plans will include:
- Assistance with commodity classification review of current products and inventory
- Review of current and pending authorizations to determine best way forward
- Assess impact of potential dual licensing requirements
- Retransfer and re-export requirements
- Notification of changes to customers in the U.S. and abroad
- Identify possible voluntary disclosure issues
- Managing two systems for transitioned and non-transitioned items