ECR creates New 600 Series ECCNs on CCL

New 600 Series ECCNs on Commerce Control List (CCL)

Effective October 15, 2013 a big change to the Export Regulations will move many items from the United States Munitions List (USML) or International Traffic in Arms Regulations (ITAR) and move them to the Bureau of Industry (BIS) jurisdiction known as Export Administration .  This is being lauded as a tremendous help for the aerospace industry.  Many times civil aircraft equipment has been classified as restricted because it is also used or may have been originally designed for military use.  In the past few years, Boeing and many other aircraft and equipment manufacturers have been fined and punished for infractions.  This move is being done to make the U.S. Aerospace Industry more competitive by moving the regulatory control from the Directorate of Defense Trade Controls (DDTC – Department of State) over to the Bureau of Industry Security (BIS – Department of Commerce) to be regulated under its Commerce Control List.

The rule change was mostly on aircraft parts.

So, after this regulation change, what aircraft parts remain subject to DDTC and the ITAR?

Here is a partial list:

1. Certain enumerated articles (and their parts) that are specially designed for controlled aircraft in these New 600 Series ECCNs:

  • Inertial Navigation Systems (INS)
  • Inertial Measurement Units (IMUs)
  • Attitude and Heading Reference Systems (AHRS)

2. Parts for DoD-funded developmental aircraft

3. Parts for B-1B, B-2, F-15SE, F/A-18E/F/G [parts for earlier models are subject to the EAR], F-22, F-35, F-117

4. Parts found in a positive list:

  • List is published at 22 C.F.R. 121.1 – VIII(h)
  • List includes articles with defense-specific purposes, like:
    • Threat-adaptive flight control systems;
    • Wing folding systems;
    • Certain high velocity gearboxes;
    • Defense-specific parts, like tail hooks, wing folding systems and bomb racks;
    • Certain technical related to export-controlled items;
    • Classified items;
    • “Commodities, software, and technical data subject to the EAR (§ 120.42 of this subchapter) used in or with defense articles controlled in this category.”

These above-referenced items remain on the USML and are controlled by the ITAR.

Parts that were previously described in the USML and were subject to the ITAR are now moved to EAR jurisdiction to the 600 series Export Commodity Classification Numbers (ECCNs) in the CCL.  These are ECCNs with the number “6″ in the middle spot of the five-character ECCN. The 600-series is designated for Wassenaar Arrangement Munitions List (WAML) articles and for former USML articles.

Many aircraft items that are no longer regulated under the ITAR are moved to ECCN 9A610.  If an article remains on the USML, like an Attitude and Heading Reference Systems (AHRS), then its unclassified software may have moved to an EAR 600 series ECCN; the unclassified software and technology indirectly related to such USML articles move to the new ECCNs 9D610/9E610 (aircraft software/technology) or 9D619/9E619 (engine software/technology).  There is also a new ECCN for military commodities outside the US that are derived from “600 series” controlled content (ECCN 0A919 – Category 0 includes miscellaneous items).

The precise location for a listing of an article may depend on whether it is “specially designed” for New 600 Series ECCNs articles or for non-600 series articles.  BIS has provided an online decision tree-based tool to help with the “specially designed” determination and it is available at http://www.bis.doc.gov/index.php/specially-designed-tool.

Licenses from BIS will still be required to export and reexport most New 600 Series ECCNs items worldwide (except to Canada), unless an EAR license exception is available.  If you have an item that was classified to be on the USML (ITAR jurisdiction) and has been moved to BIS (EAR jurisdiction), then your existing ITAR licenses may remain valid.

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