Licensing and
Classification Review:
Recent Changes under Export
Control Reform
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Some Acronyms
• EAR
• CCL
• ECCN
• USML
• ECR
Export Administration Regulations
Commerce Control List
Export Control Classification
Number
US Munitions List (State Dept.
International Traffic in Arms
Regulations or ITAR)
Export Control Reform
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ECR Background
• To enhance national security:
• Increase interoperability with NATO and close
allies;
• Reduce incentives for companies to design out
or avoid US-origin content; and
• Focus resources on transactions of greater
concern.
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ECR Background
• To implement these objectives:
• Identified specific items on a positive USML that
warrant individual license review; and
• Amended the EAR and the CCL to control the
former USML items as military items, but with
more flexibility in exports to allies
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“600 Series” Framework
9A610
CCL
Category
0-9
Product
Group
A-E
Last two
characters will
generally track
the WAML
“600 series” derives its name from the
3rd character of the ECCN
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Note: when classifying any item subject to the EAR, consult Supp.
No. 4 to Part 774
Reasons for Control
• 0 – National Security
• 1 – Missile Technology
• 2 – Nuclear Nonproliferation
• 3 – Chemical and Biological
• 5 – National Security or Foreign Policy
• 6 – Wassenaar Arrangement Munitions List
(WAML) or US Munitions List (USML)
• 9 – Anti-terrorism, Crime Control, Regional
Stability, Short Supply, UN Sanctions, etc.
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“600 Series” ECCNs
Former USML items listed in the sub-paragraphs:
• .a - .w: specifically enumerated end items,
materials, parts, components, accessories, and
attachments
• -Some items may be described in paragraphs that use
“specially designed”
• .y: specifically described parts, components,
accessories, and attachments that are “specially
designed”
• .x: “specially designed” parts, components,
accessories, and attachments that are not
specifically enumerated
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Prerequisite – Determine Jurisdiction
Is item subject
to jurisdiction
of another
USG agency?
Is the item
described in
the USML?
yes
yes
no
no
** See EAR for
other U.S.
no
Government
agencies with
export control
responsibilities.
Is item subject
to the EAR?
yes
The item is subject
to ITAR.
Contact DDTC for
all ITAR questions.
no
*The item is not subject to the EAR.
EXIT here, but first review the three
WARNING Notes.
*WARNING Notes:
(1) Items described in the USML are subject to
the ITAR. Contact DDTC for ALL ITAR questions.
(2) Certain other items are subject to the
exclusive jurisdiction of other U.S. Government
agencies. See Supplement 3 of Part 730
(3) EAR includes controls that extend to items
not ordinarily subject to the EAR and to certain
activities. See section 734.5 (Activities of U.S.
and foreign persons subject to the EAR).
Classifying an Item on the CCL: Guidance
Step 1 (category)
Step 2 (product group)
yes
Have you
reviewed
characteristics
and identified
category and
product group
for the item?
no
Return,
if needed.
Use options 1 or 2 to review characteristics and
identify category and product group for the item
before proceeding. Then return to the previous
question. Option 3 below will require access to
SNAP-R. Option 2 you should still also review the
CCL.
3 ways to classify an item:
(1) Contact manufacturer, developer or producer,
(2) Self-classify, or
(3) Submit a classification request to BIS.
**Guidance Note for Steps 3-6: You will determine if the item is described on the CCL by conducting:
(A) a “600 series” ECCNs analysis, followed by (B) a Non-”600 series” ECCNs analysis. If subject to the EAR, but not described, see Step 6.
yes
**(A) “600 series” ECCNs analysis – Steps 3 and 4
Step 3
Step 4 - including 4.a. (‘catch’) and
4.b (‘release’)
Is the
item
enumerated
in 600
series?
no
yes
The CCL
(B) Non-”600 series” ECCNs analysis – Step 5 (including 4.a and 4.b, if
needed) If entry uses “specially designed,” determine whether the item is
“specially designed” by reviewing the definition in section 772.1. See 4.a
(‘catch’) and 4.b (‘release’) or the “Specially Designed” decision tool.
yes
The item is classified in a
military ECCN (“600 series” )
Is the item
a “specially
designed”
600 series
item?
Step 5
no
Is the item
described
elsewhere
in the CCL?
Step 6 (If subject to EAR,
but not described, then EAR99)
no
yes
The item is classified in a
non-”600 series” ECCN
The Item is
designated as
EAR99
“Specially Designed”
• To determine whether an item is “specially designed,”
answer a series of yes/no questions.
• Apply existing EAR definitions (such as “development,”
“production,” and “knowledge”) and also new EAR
definitions (such as for “part,” “component,” and “end
item.”)
• Use the BIS web-based “Specially Designed” decision tool
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Decision Tree Tools
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CCL Order of Review Decision Tool
• Guides public through steps to take in reviewing
CCL, in light of addition of "600 series" and new
"specially designed“ definition.
• Includes questions:
• to determine if an item is "specially designed"
for "600 series," and then, as needed,
• to determine if an item is "specially designed"
for non-"600 series."
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Specially Designed Decision Tool
• Guides public through steps to take in light of
the new "specially designed“ definition.
• Includes questions under Step 4:
• to determine if an item is "specially
designed" for "600 series," and then, as
needed,
• to determine if an item is "specially
designed" for non-"600 series."
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License Exception STA
Decision Tool
• Guides public through steps to take to
determine if items are eligible for export
under license exception STA
• Applicability for “600” series items will be
updated
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License Exceptions
for “600” Series
Available license exceptions listed in
§740.2(a)(13):
• LVS
• TMP
• RPL
• GOV
• TSU
• STA
(§ 740.3)
(§ 740.9)
(§ 740.10)
(§ 740.11)
(§ 740.13)
(§ 740.20)
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License Exceptions
for “600” Series
• Restrictions on use of License Exceptions for 600 series:
• May only use those license exceptions listed in
§740.2(a)(13)
• Country Group D:5 (except § 740.11(b)(2) of GOV)
• ECCNs 9D619.b, 9E610.b, or 9E619.b or .c (except
§740.11(b)(2) of GOV)
• Major Defense Equipment sold under a contract
exceeding certain values
• Other applicable restrictions in § 740.2 (e.g., MTcontrolled items) or specific section of applicable
license exception
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Country Groups
New columns to implement ECR:
• Country Group A:5 = close allies and multiregime members
• Country Group A:6 = countries eligible for
some license exception STA provisions.
• Country Group D:5 = U.S. arms embargoed
countries (see also § 126.1 of the ITAR)
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600 Series and
China Military End Use
• Section 744.21 currently imposes a license
requirement for exports or reexports of certain
items subject to the EAR when one knows such
items are intended for a military end use
• Since 600 series items are presumptively for a
military end use, all 600 series items (including .y
items) will require a license when destined for
China – see new §744.21(a)(2)
• Maintains ITAR status quo
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CCL _ _ 018 ECCNs
• ECCN _ _ 018 items are controlled on the
Wassenaar Munitions list. Because they
are military items, it is appropriate that
they be treated like any other “600 series”
item.
• In general, the ECCNs that end in 018 will
be transitioned to a new 600 series ECCN.
• See ECCN 0A617.y.1and .y.2 for items
formerly controlled by ECCN 0A018.a.
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BIS Licenses
• Free online submission system (SNAP-R); no cost
associated with license application
• Default four-year validity period – new
• May export or reexport to and among end users
listed on license
• No purchase order required
• No large agreements to draft or lengthy
agreement guidelines to follow
• May pre-position applications prior to effective
date of applicable final rule
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Export Clearance – EAR §758.1
• Automated Export System
• All exports of 600 series items (except .y items)
require AES filing, regardless of value or destination
• Exports of .y items exempt from AES filing when
value is $2500 or less or when destined for Canada
• All exports authorized under STA require AES filing
• Furnishing Classification to Consignees
• If export is EAR “600 series”: must supply 600 series
ECCN on export control documents
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Shipping documents
• New EAR §758.6 (b)
• For all “600 series” items, in addition to the
required Destination Control Statement, the
ECCN for each “600 Series” item being
exported must be printed on the invoice, and
on the bill of lading, air waybill, or other
export control document that accompanies
the shipment from its point of origin in the
United States to the ultimate consignee or
end-user abroad.
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Contact Information
Outreach and Educational Services Division
Bureau of Industry and Security
(202) 482-4811
ECDOEXS@bis.doc.gov
Western Regional Office: (949) 660-0144
www.bis.doc.gov
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