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August 14, 2008 

DDTC Publishes Long-Awaited Final Rule on Jurisdiction of Aircraft Parts and Components

The State Department's Directorate of Defense Trade Controls (DDTC) today published in the Federal Register the long-awaited final rule amending Category VIII of the U.S. Munitions List (USML) to clarify how the criteria of section 17(c) of the Export Administration Act should be applied in determining whether certain basic parts and components having a long history of use on both civil and military aircraft should be under the jurisdiction of the International Traffic in Arms Regulations (ITAR) or the Export Administration Regulations.

The new rule amends USML Categories VIII(b) and (h) and adds an important new "Note" after Category VIII(h) which clarifies that any part or component that (a) is standard equipment; (b) is covered by a civil aircraft type certificate (including amended type certificates and supplemental type certificates) issued by the Federal Aviation Administration for civil, non-military aircraft (this expressly excludes military aircraft certified as restricted and any type certification of Military Commercial Derivative Aircraft); and (c) is an integral part of such civil aircraft, is subject to the Export Administration Regulations.

The public comments submitted to DDTC on the proposed rule can be found DDTC's website.

Update: In a press release, Marion Blakey, President and CEO of the Aerospace Industries Association American said today that this rule "will be a shot in the arm for the aerospace industry and American exports."

Congressional attention to the matter, led by Reps. Don Manzullo and Brad Sherman and the Congressional Export Control Working Group, helped result in Thursday's move, Blakey said.

"The administration and Congress have both demonstrated real leadership on this matter," Blakey said. "Resolving this confusing issue will help cement one of our industry's great strengths, our $60 billion foreign trade surplus."

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