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September 28, 2008 

Hartford Business Journal: Industry Applauds New Dual-Use Rule

The latest edition of the Hartford Business Journal contains an article entitled "Industry Applauds New Dual-Use Rule", which discusses how Connecticut's many aerospace companies will benefit from the State Department's recently issued final rule clarifying the jurisdiction of parts and components used on both civil and military aircraft.

By way of background, on August 14, 2008, the State Department's Directorate of Defense Trade Controls published in the Federal Register a long-awaited final rule amending Category VIII of the U.S. Munitions List 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 history of use on both civil and military aircraft should be under the jurisdiction of the International Traffic in Arms Regulations 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.

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