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October 20, 2016

BIS Implements 2015 Wassenaar Changes

On September 20, 2016, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) issued a final rule revising the Commerce Control List (CCL), as well as corresponding parts of the Export Administration Regulations (EAR), to implement changes made to the Wassenaar Arrangement's (WA) List of Dual-Use Goods and Technologies at the December 2015 WA Plenary Meeting.[1] BIS’s final rule also made changes that were not agreed to at the WA Plenary Meeting, such as updates to the license requirements and policies associated with Category 5 – Part 2 of the CCL (including revisions to ECCNs 5A992, 5D992, and 5E992), the removal of the Foreign National Review requirement associated with deemed exports under License Exceptions Civil End-Users (CIV) and Computers (APP), and the addition of encryption-related definitions to the EAR. Below is a brief (non-exhaustive) synopsis of BIS’s Wassenaar changes and non-Wassenaar changes.

Wassenaar Changes

Revisions to Existing ECCNs
BIS revised 58 ECCNs: 0A617, 1A001, 1A002, 1A004, 1A613, 1C001, 1C002, 1C006, 1C008, 1C009, 1C608, 1E001, 1E002, 2B001, 2B006, 3A001, 3A002, 3A101, 3A292, 3B001, 3D001, 3E002, 4A001, 4A003, 4D001, 4E001, 5A001, 5B001, 5D001, 5E001, 5A002, 5B002, 5D002, 5E002, 6A001, 6A002, 6A003, 6A004, 6A005, 6A007, 6A008, 6B004, 6B007, 6C005, 6E003, 7A003, 7A004, 7A008, 7B001, 7B002, 7E004, 8A001, 8A002, 9A001, 9A004, 9A012, 9B001, and 9E003.

ECCN Additions
BIS added ECCNs 5A003 (“Systems,” “equipment,” and “components,” for non-cryptographic “information security”) and 5A004 (“Systems,” “equipment,” and “components” for Defeating, Weakening or Bypassing “information security”) to the CCL. These ECCNs control certain items formerly controlled under ECCN 5A002. The same licensing requirements and license exceptions that applied to these items under the former ECCN 5A002 still apply.

High-Performance Computers
BIS raised the Adjusted Peak Performance (APP) for high-performance computers.[2]

License Exceptions
BIS added certain License Exception eligibility to the following ECCNs:

BIS also removed certain License Exception eligibility from the following ECCNs:

Non-Wassenaar Changes

Category 5 – Part 2
BIS updated licensing requirements and policies associated with Category 5, Part 2 of the CCL.

This final rule became effective September 20, 2016. It is important for organizations to regularly update their trade compliance programs to incorporate, among other things, changes to U.S. government regulations that relate to international trade compliance. Joiner Trade Solutions®, a service offering of Joiner Law Firm PLLC, monitors changes to these U.S. government regulations and is prepared to assist your organization with updates to its trade compliance program.

For specific questions regarding these changes, please contact us.

[1] WA is a multinational export control regime that advocates for effective export controls on items to improve regional and international security and stability. Participating governments agree to modify their export control policies in accordance with the WA list of dual-use goods and technologies.
[2] APP is a metric used by BIS to more accurately determine computer performance for export control purposes.
[3] License Exception Shipments of Limited Value (LVS).
[4] License Exception Shipments to Country Group B Countries (GBS).
[5] License Exception Governments, International Organizations, International Inspections under the Chemical Weapons Convention, and the International Space Station (GOV).
[6] License Exception Temporary Imports, Exports, Reexports, and Transfers (In-Country) (TMP).
[7] ECCN 3B001.c has been removed.
[8] See § 742.15(b).