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May 07, 2006 

BIS Scales Back Scope of Military "Catch-All" Rule

According to recent press reports, the Bureau of Industry and Security's (BIS) is scaling back the scope of its proposed military catch-all rule, which could be published at the end of this month. The proposed regulation, which is still in draft form, will impose new licensing requirements for the export, reexport or transfer of certain designated items to any country subject to an arms embargo, when the exporter is aware that the items are intended for a military end-use. The People's Republic of China is the main target of the military "catch-all" provision.

While the original version of the proposed regulation would have applied the licensing requirements to hundreds of items, the current draft would apply the enhanced licensing requirements to 46 products in the following nine categories: products containing chemicals, toxins or microorganisms; electronic design and development technology; computers, telecommunications equipment; information security; sensors and lasers; navigation equipment and other avionics; marine technology; propulsion and space vehicles; and materials processing equipment.

Under the proposal, exporters would have to apply for an export license if any of the listed items could be used to support the advancement of Chinese military capabilities. BIS will review such license applications under a general policy of denial.

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