The Wassenaar Arrangement was established to promote transparency and responsibility in international transfers of conventional weapons and dual-use goods and controlled technologies. This international effort to prevent global destabilization was established at Wittenburg Castle in Germany in 1995.
The Wassenaar Arrangement Plenary meets once a year in Vienna. The Plenary is led by a rotating chair of members that is changed annually. The Plenary establishes subsidiary bodies for the preparation of recommendations. These bodies include a General Working Group that deals with policy matters, and an Experts Group that refines issues with the lists of controlled items.
Wassenaar members are required to report their transfers and denials of goods that fall under the List of Dual-Use Goods and Technologies and the Munitions List. Enactment of agreed upon guidelines, elements, and procedures are implemented at the discretion of member states policies.
U.S. Wassenaar Arrangement Reporting Requirements
The Bureau of Industry and Security (BIS) requires exporters in the United States to submit semiannual reports for certain commodities, software, and technology controlled under the Wassenaar Arrangement (WA). These reports must include specific information such as the Export Control Classification Number and the country of ultimate destination.
Reports are required for exports authorized under specific License Exceptions, including GBS, CIV, TSR, LVS, APP, and Validated End-User authorizations. Each report must contain the Export Control Classification Number (ECCN) of the commodity, the country of ultimate destination, and the number of units in the shipment. You must submit two (2) copies of each report and maintain supporting records per § 762.2(b) of the EAR.
Changes in Multilateral Expectations
Recent actions by members reflect a growing dissatisfaction with the effectiveness of the WA. These perceived weaknesses include membership of Russia, requirements for unanimous agreements, and slow decision making. In response many nations and groups of nations have undertaken efforts to develop controls for emergent technologies.
In recent years the United States has placed specific controls on emerging technologies ahead of Wassenaar decisions. This has led to specific controls over AI and quantum computing semiconductors, devices used in hypersonic applications, and tools used in the design and development of integrated circuits. These controls are being implemented in ad hoc agreements between partner countries in an effort to control exports to specific countries while allowing licensing between partner countries that have harmonized controls in place.
Other nations have cited the inability of the WA to keep abreast with technologies that can be exported digitally. This can create loopholes and vague regulatory controls. This is especially the case with technologies that can be used for surveillance under repressive regimes.
CVG Strategy Export Compliance Management Programs
Organizations involved with export must adhere to everchanging regulations related to developing technologies. Remaining informed and having an effective export compliance program is essential for avoiding criminal and civil penalties.
Export Compliance Management Programs establish clearly defined policies and procedures for all departments within an organization. They ensure that registration, item classifications, license applications, denied part screening, and security measures are taken that will prevent violation. They also ensure that training, auditing, and record keeping are maintained according to requirements.
CVG Strategy can help you understand revisions to the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR), and help you establish a coherent and effective export compliance program. We can perform export control classifications, perform audits, assist in filings for export licenses and educate your team. Regardless of whether your business falls under EAR or ITAR, CVG Strategy has the expertise to help.