BIS Places Controls on Section 1758 Technologies

BIS Places Controls
BIS Places Controls

The Bureau of Industry and Security (BIS) places controls on technologies pursuant to Section 1758, whose export may threaten U.S. national security and foreign policy objectives.  As of May 23, 2022 the BIS announced that it would no longer classify those controlled technologies as emerging or foundational.  This action is providing the agency with flexibility in requiring export licenses for those technologies.

Commerce Control List Revisions

On August 15, 2022 the BIS has revised the Commerce Control List (CCL) to implement controls on specific technologies.  These actions were taken to reflect decisions made by nations participating in the Wassenaar Arrangement pursuant to Export Controls for Conventional Arms and Dual-Use Goods and Technologies.  

These actions are being taken because these types of devices have significant potential for use in military applications.  Effected ECCN classifications are listed in Document Number 2022-17125.

Controls Placed on Specific Types of Semiconductors

The BIS added export controls on two substrates of ultra-wide bandgap semiconductors.  These semiconductor materials include Gallium Oxide and diamond substrates.  These materials are typically used in semiconductors devices intended for use in severe conditions where high temperatures and voltages are present. 

Electrical Computer Aided Design (ECAD) Tools

ECAD software tools are used in the design process of integrated circuits and printed circuit boards.   They are currently being widely used in the aerospace and military applications in the development of Gate-All-Around Field Effect Transistors (GAAFET).  These devices are essential in the electronics design scaled to 3 nanometers or less.  Control have been placed on these tools as such they are ideal for the development of military and communication satellite applications.

Pressure Gain Combustion (PGC) Devices

Pressure Gain Combustion is being utilized to achieve higher efficiencies in gas turbine power systems.  As such it can be used in the development of high speed applications such as hypersonic air-breathing propulsion systems.

The Growing Role of Export Administration Regulations

Many assume that the Export Administration Regulations (EAR) are of less significance than the International Traffic in Arms Regulations (ITAR).  While the ITAR controls the export of  articles specifically designed or otherwise intended for military end-use, the EAR controls dual-use items that could be used for commercial and military applications.  As shown in the examples above, these dual-use items are of immense importance to national and international security.  

The BIS has been changing its scope and enforcement policies in recent years to address the increased complexities of the international political arena.  Export Administration Regulations have continually been changing as more items are being added to the Commerce Control List (CCL).  Additionally, the agency has increased its focus on the use of sanctions and denied parties lists to protect these sensitive technologies.

The Complexities of Export Compliance

As the BIS places controls on a growing number of technologies, it poses challenges for organizations involved in export transactions.  If a business produces or provides military articles or services, there is at the very least an understanding that ITAR export controls will probably be in place.  For those involved in dual-use items however, the requirements for export compliance are much less clear.

The CCL, by which controlled items are enumerated, has extremely fine distinctions based on highly technical criteria for determination of export controls.  For those items with controls there are further complications based on the nation or individuals to whom the items will be exported to. 

The fact is that EAR requires all companies to self-classify their products and services in order to determine the degree of necessary control on restricted articles as they are listed in the CCL.  These regulations apply to manufactures, service providers, distributors, engineering companies, freight forwarders, and brokers.  Additionally if an organization deals in controlled articles or services it must maintain a viable export compliance program.

CVG Strategy Export Compliance Expertise

If you are part of a large corporation or a small company with a part-time compliance person, CVG Strategy has the compliance and training programs to help you meet ITAR and EAR rules and requirements.  As the BIS place controls on a growing number of technologies it becomes increasing difficult for smaller businesses to stay abreast of regulatory developments.  Because of this we offer outsourced Export Compliance Officer services.  We also offer signs and accessories to aid in Visitor Access Control on our ITAR Store.

CVG Strategy, LLC is recognized the world over as the premier provider of customized ITAR Consulting and ITAR & Export Compliance Programs and Training that addresses critical U.S. Government regulations, from Export Administration Regulations (EAR), to the International Traffic in Arms Regulations (ITAR) and Office of Foreign Asset Controls (OFAC) and other regulatory agencies and more.