International Trade Law News

Published by Jacobson Burton Kelley PLLC

The Bureau of Industry and Security published in the May 7, 2007 edition of the Federal Register a final rule amending the Export Administration Regulations (EAR) to reflect changes to the
Missile Technology Control Regime (MTCR) Equipment, Software and Technology Annex that were agreed to by MTCR member countries at the October 2006 Plenary in Copenhagen,
Denmark. The amendments set forth in this rule include the following changes to the EAR:

• Amends Export Control Classification Numbers (ECCNs) 1A102, 1C101, 1C107, 6A108, 6B108, 7A102, 7A103, 9A111 and 9B105 to clarify the scope of these ECCNs by replacing the defined term "missile" with new language controlling rockets, missiles, and unmanned aerial vehicles "capable of a range of at least 300 km". Previously, items controlled by these ECCNs were controlled only when they were "capable of' delivering at least 500 kilograms payload to a range of at least 300 kilometers.'' Thus, the new rule eliminates the payload capacity requirement.
  

• Adds new ECCN 7A107 to control three axis magnetic heading sensors designed or modified to be integrated with flight control and navigation systems. The rule notes that this ECCN was being added since MTCR members were concerned about the use of this type of equipment in Unmanned Aerial Vehicle systems of concern. This rule amends the headings of ECCNs 7D101 and 7E101, to include ECCN 7A107 in these software and technology entries, respectively. BIS noted that the addition of the new MT controlled ECCN 7A107 and the conforming changes to ECCNs 7D101 and 7E101 will produce a "slight increase" in export licensing activity.

• Amends ECCN 9B117 paragraph (a) by replacing the control parameter of "90 kN'' with "68 kN''. BIS stated that the lowering of the test stand thrust capacity threshold is being made to the EAR to address a concern raised by MTCR members that there is a proliferation concern with this type of equipment and its usefulness in MTCR type systems. BIS stated that this change is expected to have a minimal impact on licensing activity.

• Amends ECCN 9C110 by placing double quotes around the terms "specific tensile strength'' and "specific modulus'' in the heading text to indicate that these are defined terms in the Commerce Control List. BIS stated that this amendment "will clarify the control text, but is expected to have no impact on licensing activity."

Labels: BIS, MTCR