Avionics News January 2014 - 60

legislative

B Y
J A S O N
D I C K S T E I N
AEA GENERAL COUNSEL

Changes to U.S. Export Regulations

O

n Oct. 15, 2013, the United States implemented some
the economy by revising the export control system. To do so,
long-awaited changes to the International Traffic in
the two agencies have worked together to establish a regime to
Arms Regulations and the Export Administration
control items that no longer warrant control on the United States
Regulations - the regulations that govern the export of defense
Munitions List (USML - this is the ITAR list of things that are
and other articles that warrant oversight by the U.S. government.
regulated) but that still will be controlled on the Commerce
These changes should make it easier for exporters to accurately
Control List (CCL - the EAR list of regulated items). Given
characterize the articles they export and consequently ease the
the expansive nature of the project, the agencies have deemed it
determination of whether a license is needed, and if so which
expedient to complete and implement the changes incrementally.
license is needed, in order to legally export an aircraft compoThe changes that entered into effect on Oct. 15 are of particunent or article. This is a tremendous benefit for the civil aviation
lar interest to those exporters in the aerospace industry, as the
industry.
agencies revised USML Category VIII (aircraft and related artiThis change means that most dual use items (articles used
cles) and established USML Category XIX (gas turbine engines
on both civil and defense aircraft) are
transferred to the export jurisdiction of
The ongoing revisions to the USML and CCL
the Commerce Department's Bureau of
Industry and Security, where they will be
are a positive step, both in facilitating trade
regulated under the Export Administration
and in helping exporters remain compliant
Regulations. In some cases, even those
with export regulations.
articles that have an exclusive defense
purpose, but do not necessarily provide
the U.S. a critical military or intelligence advantage, are shifted
and associated equipment). Also revised were USML Categories
to the BIS-EAR regime.
XVII (classified articles, technical data and defense services not
In a nutshell, EAR-regulated exports are easier to handle than
otherwise enumerated) and XXI (articles, technical data and
ITAR-regulated exports. While the ITARs require almost every
defense services not otherwise enumerated). Companies that
export to be licensed, many EAR-regulated exports do not need
export articles falling under these USML categories will want
a license at all, and there are several useful license exceptions
to be sure they have reviewed the changes thoroughly to ensure
that apply to some typical aerospace transactions, as well. So
they remain compliant with export regulations and are applying
moving aircraft components and articles to the EAR regime
for licenses under the proper regime.
is a distinct benefit for exporter (and for companies that have
Given these changes, a brief overview of which aircraft
thought about exporting but have rejected it as too high a regulaarticles remain subject to ITAR control is helpful. The revised
tory hurdle to ensure compliance).
USML Category VIII goes a considerable way to creating a
As a part of the Export Control Reform Initiative, BIS and the
positive list of articles that are controlled by the ITARs. But
State Department's Directorate of Defense Trade Controls are
given the nature of the control regime, certain articles continue
working collaboratively to strengthen both national security and
to be described generically.
60

avionics news

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january

2014



Avionics News January 2014

Table of Contents for the Digital Edition of Avionics News January 2014

Point of Communication
AEA Now
The View From Washington
International News and Regulatory Updates
The In Crowd
Member Profile
Sales and Service
A Conversation With...
Make Way for LCDs
Lithium Batteries 101
Member Profile
Autopilot Upgrades
Aviation Aces
NCATT Becomes Part of ASTM International
Essential Documentation
What Do Dealers Want?
Legal Ease
Business Basics
What's New
Marketplace Classifieds
Avionics News January 2014 - Intro
Avionics News January 2014 - Cover1
Avionics News January 2014 - Cover2
Avionics News January 2014 - 1
Avionics News January 2014 - 2
Avionics News January 2014 - 3
Avionics News January 2014 - Point of Communication
Avionics News January 2014 - 5
Avionics News January 2014 - AEA Now
Avionics News January 2014 - 7
Avionics News January 2014 - 8
Avionics News January 2014 - 9
Avionics News January 2014 - 10
Avionics News January 2014 - 11
Avionics News January 2014 - The View From Washington
Avionics News January 2014 - 13
Avionics News January 2014 - International News and Regulatory Updates
Avionics News January 2014 - 15
Avionics News January 2014 - 16
Avionics News January 2014 - 17
Avionics News January 2014 - The In Crowd
Avionics News January 2014 - 19
Avionics News January 2014 - 20
Avionics News January 2014 - 21
Avionics News January 2014 - Member Profile
Avionics News January 2014 - 23
Avionics News January 2014 - 24
Avionics News January 2014 - 25
Avionics News January 2014 - Sales and Service
Avionics News January 2014 - 27
Avionics News January 2014 - 28
Avionics News January 2014 - 29
Avionics News January 2014 - 30
Avionics News January 2014 - 31
Avionics News January 2014 - A Conversation With...
Avionics News January 2014 - 33
Avionics News January 2014 - Make Way for LCDs
Avionics News January 2014 - 35
Avionics News January 2014 - 36
Avionics News January 2014 - 37
Avionics News January 2014 - Lithium Batteries 101
Avionics News January 2014 - 39
Avionics News January 2014 - 40
Avionics News January 2014 - 41
Avionics News January 2014 - Member Profile
Avionics News January 2014 - 43
Avionics News January 2014 - 44
Avionics News January 2014 - 45
Avionics News January 2014 - Autopilot Upgrades
Avionics News January 2014 - 47
Avionics News January 2014 - 48
Avionics News January 2014 - 49
Avionics News January 2014 - 50
Avionics News January 2014 - 51
Avionics News January 2014 - Aviation Aces
Avionics News January 2014 - 53
Avionics News January 2014 - NCATT Becomes Part of ASTM International
Avionics News January 2014 - 55
Avionics News January 2014 - Essential Documentation
Avionics News January 2014 - 57
Avionics News January 2014 - What Do Dealers Want?
Avionics News January 2014 - 59
Avionics News January 2014 - Legal Ease
Avionics News January 2014 - 61
Avionics News January 2014 - Business Basics
Avionics News January 2014 - 63
Avionics News January 2014 - 64
Avionics News January 2014 - 65
Avionics News January 2014 - What's New
Avionics News January 2014 - 67
Avionics News January 2014 - 68
Avionics News January 2014 - 69
Avionics News January 2014 - Marketplace Classifieds
Avionics News January 2014 - 71
Avionics News January 2014 - 72
Avionics News January 2014 - Cover3
Avionics News January 2014 - Cover4
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