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August 03, 2006 

BIS Amends EAR to Conform to Changes in MTCR Annex

In case you missed it, the Bureau of Industry and Security (BIS) earlier this week published a final rule in the Federal Register amending the Export Administration Regulations (EAR) to reflect changes to the Missile Technology Control Regime (MTCR) Annex that were agreed to by MTCR member countries at the September 2005 Plenary in Madrid, Spain.

Among other thing, the rule amended the EAR by making the MT controlled commodities of ECCN 2A001 (certain ball bearings) available for license exceptions TMP and RPL when those items are exported or reexported as one-for-one replacement for equipment previously legally exported or reexported. The rule also makes a number of changes to the Commerce Control List to reflect changes to the MTCR Annex, including changes to ECCNs 1C101, 1C107, 7A101, 7A102 and 7A103.b and c and 9A120 and 9B106.

The rule adds ECCN 9A103, which covers "Liquid Propellant Tanks Specially Designed for the Propellants Controlled in ECCNs 1C011, 1C111 or Other Liquid Propellants Used in 'Missiles.'" However, commodities covered in this ECCN will be controlled by the Department of State under the International Traffic in Arms Regulations (ITAR). The rule notes that this item was added in the EAR "to make the public aware that these liquid propellant tanks are ITAR controlled." In addition, the rule states that "these liquid propellant tanks are being added to the EAR and also to the ITAR to diminish opportunities by countries involved in missile proliferation activities from acquiring these types of tanks for their missile programs."

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