The Commerce Department’s Bureau of Industry and Security (“BIS”) and the State Department’s Directorate of Defense Trade Controls (“DDTC”) published proposed rules in the Federal Register today (BIS rules here; DDTC rules here) amending the Export Administration Regulations (“EAR”) and Category XII of the International Traffic in Arms Regulations (“ITAR”) as part of the President’s Export Control Reform (“ECR”) initiative.
Specifically, a number of items in ITAR Category XII (Fire Control, Laser, Imaging, and Guidance and Control Equipment) are being transferred to the EAR, and a number of items in USML Categories VIII (Aircraft and Associated Equipment), XIII (Auxiliary Military Equipment), and XV (Spacecraft Systems and Associated Equipment) are being amended to reflect that items in those Categories will now be in the revised Category XII. These changes are being implemented in the EAR by amending Export Control Classification Number (“ECCN”) 7A611 and creating new “600 series” ECCNs 7B611, 7D611, and 7E611. For certain dual-use infrared detection items, the proposed rules would expand controls for certain software and technology, eliminate the use of some license exceptions, revise licensing policy, and expand license requirements for certain transactions involving military end users or foreign military commodities.