DDTC

More Military Items Transferred to Department of Commerce Control

DS_TanksWhyEffective today, as part of the continuing changes being made by the President’s Export Control Reform Initiative (“ECR”), a variety of items formerly controlled under the International Traffic in Arms Regulations at U.S. Munitions List (“USML”) Categories VI (Surface Vessels of War and Special Naval Equipment), VII (Ground Vehicles), XIII (Materials and Miscellaneous Articles), and XX (Submersible Vessels and Related Articles) are now controlled under the Department of Commerce’s Export Administration Regulations, following their transfer to the Commerce Control List (“CCL”). [1]

Among other things, the changes include the transfer of most unarmored and unarmed military vehicles, trucks, trailers, and trains (unless specially designed as firing platforms for weapons above .50 caliber), and includes armored vehicles (either unarmed or with inoperable weapons) manufactured before 1956 from the USML to the CCL.  As described by the ECR Task Force, these revisions are intended to narrow the types of ground vehicles controlled on the ITAR to only those that warrant control under the requirements of the Arms Export Control Act.

These and other USML to CCL transfers are being made as part of the Obama Administration’s original ECR framework, which promises a single export licensing agency and a single export control list.  So the oddity of all these military items appearing on the Department of Commerce list, which was formerly reserved for dual-use items (i.e., items with both civilian and military applications) may make sense in the end if the administration fulfills its promises.  If not, the presence of purely military items on the CCL and other changes made by the administration as part of ECR will leave us with an overly complex and conceptually disconnected system.

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[1] “Amendment to the International Traffic in Arms Regulations: Continued Implementation of Export Control Reform; Final Rule,” 78 Fed. Reg. 40922, July 8, 2013;  “Revisions to the Export Administration Regulations: Military Vehicles; Vessels of War; Submersible Vessels, Oceanographic Equipment; Related Items; and Auxiliary and Miscellaneous Items That the President Determines No Longer Warrant Control Under the United States Munitions List; Final Rule,” 78 Fed. Reg. 40892, July 8, 2013; “Revisions to the Export Administration Regulations: Military Vehicles; Vessels of War; Submersible Vessels, Oceanographic Equipment; Related Items; and Auxiliary and Miscellaneous Items That the President Determines No Longer Warrant Control Under the United States Munitions List; Final Rule; Correction,” 79 Fed. Reg. 22, January 2, 2014; “Amendment to the International Traffic in Arms Regulations: Continued Implementation of Export Control Reform; Correction,” 79 Fed. Reg. 26, January 2, 2014.

[U.S. Army Photo]

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* The above is not intended as an exhaustive list of restrictions that may apply to a particular transaction nor advice for a specific transaction because the specifics of an individual case may implicate application of other U.S. laws as well as foreign laws that carry added or different requirements.  In addition, U.S. export control and sanctions laws are frequently subject to change.  Such changes can affect the continued validity of the information above, which is based on U.S. law existing as of January 6, 2014.  For these reasons, assistance from a qualified attorney competent to advise on such matters is highly recommended.

Matthew A. Goldstein is an International Trade Attorney in Washington D.C. licensed to practice in the District of Columbia and the State of Arizona.  He can be reached at (202) 550-0040 and Matthew@GoldsteinPLLC.com.