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The US Department of Commerce Bureau of Industry and Security (BIS) recently announced a Final Rule (“Rule”) effective on 15 August 2017 that revises the US Commerce Control List (CCL) (see 82 FR 38764). The revisions have been made in line with changes to the Wassenaar Arrangement (WA) that were agreed during the December 2016 WA Plenary meeting.

Summary

The Rule revises 50 Export Control Classification Numbers (ECCNs) in order to harmonise each category of the CCL with agreements reached during the WA Plenary, and also makes corresponding changes to the Export Administration Regulations (EAR).

While the changes to ECCNs are wide in scope, covering each category of the CCL, most are relatively minor changes meant to clarify certain definitions and more closely align certain phrases with those used in the WA List of Dual-Use Goods and Technologies (WA List).

Still, the changes are an important reminder that businesses should regularly review ECCN entries in order to ensure that all items are being classified correctly.

Notable Changes

Among the more notable changes are an adjustment to Category 4 controls on computers that raise the ‘adjusted peak performance’ (APP) in order to track with improvements in micro-processor technology, a loosening of controls on computer, technology, and software exports to Burma, and a restructuring of the CCL’s Category 5 Part 2 text on Information Security. As with others changes to ECCNs as part of the Rule, this latter adjustment appears to better specify items subject to control, rather than to adjust the scope of the controls themselves.

The full list of revised ECCNs can be found at http://www.federalregister.com/Browse/Document/usa/na/fr/2017/8/15/2017-16904

The Rule also includes a “saving clause” that allows exports, re-exports, and transfers of items that were removed from license exception eligibility by the new Rule to proceed to their destination under previous license exceptions until midnight on 16 October 2017 – subject to certain conditions that are described in more depth at the link above.

Implementation Timeline

  • The new Rule went into effect on 15 August 2017, with the following two exceptions:
    • Amendatory Instruction 30 (on revised APP for computers covered by ECCN 4A003) went into effect on 25 September 2017; and
    • Amendatory Instruction 2 (making Burma a Computer Tier 1 country) goes into effect on 24 November 2017.

For questions and additional information on updates to the CCL and EAR, please contact our team, below.

  • Pablo LeCour is a Partner in Deloitte’s Global Export Controls and Sanctions team
  • Tina Carlile is a Senior Manager in Deloitte’s Global Export Controls and Sanctions team