Export Control Reform

More ECR Correction Rules

DS_CorrectionsThe President’s Export Control Reform Initiative (“ECR”) Task Force has published a parade of “Correction” rules following initial implementation of its reform.  Adding to the mix, on June 27, 2014, the Task Force published its sixth “Correction” rule in less than a year. [F/N 1]  More Correction rules are expected.

The Correction rules generally make conforming changes to fit other changes made in reform, update cross-references, correct grammar and punctuation mistakes, and fix typographical errors.  However, even changes to simple scrivener errors, such as the addition of quotation marks or a comma, can substantively impact the scope of control listings.

The Correction rules also create challenging compliance burdens because the Task Force does not provide black-line copies of changes for industry review.  Accordingly, compliance professionals should take meticulous care in reviewing each Correction rule and determine what changes, if any, impact their company’s operations.

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[FN/1] “Amendment to the International Traffic in Arms Regulations: Third Rule Implementing Export Control Reform; Correction,” 79 Fed. Reg. 36393  (June 27, 2014); “Corrections and Clarifications to the Export Administration Regulations; Conforming Changes to the EAR Based on Amendments to the International Traffic in Arms Regulations,” 79 Fed. Reg. 32612 (June 5, 2014); “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. 0022 (January 2, 2014); “Amendment to the International Traffic in Arms Regulations: Continued Implementation of Export Control Reform; Correction,” 79 Fed. Reg. 0026 (January 2, 2014); “Revisions to the Export Administration Regulations: Initial Implementation of Export Control Reform; Correction,” 78 Fed. Reg. 61,744 (October 3, 2013); “Amendment to the International Traffic in Arms Regulations: Initial Implementation of Export Control Reform; Correction,” 78 Fed. Reg. 61,750 (October 3, 2013).

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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 June 28, 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.  He can be reached at (202) 550-0040 and Matthew@GoldsteinPLLC.com.