As part of the Export Control Reform (ECR) Initiative, on October 15, 2013 certain military aircraft and gas turbine engine items were added to the Commerce Control List (CCL). At the same time, the U.S. Munitions List (USML) was amended by revising Category VIII (Aircraft and Related Articles) and by creating Category XIX (Gas Turbine Engines and Associated Equipment) to describe items controlled in those categories in positive, objective terms. Then in 2015, the U.S. Departments of Defense, State, and Commerce reviewed these changes to assess their effectiveness and utility. The Departments of Commerce and State solicited public comments at that time and issued in February 2016 proposed rules to revise the treatment of military aircraft and gas turbine engine items. Following an interagency review of the public comments on the proposed rules, on November 21, 2016 the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and State Department issued final rules.
The State Department’s final rule described more precisely the items controlled in USML Categories VIII (aircraft and related articles) and XIX (gas turbine engines and associated equipment). Moreover, the State Department subsequently posted a notice stating that as a result of its final rule “a narrow range of articles” (which relate “primarily to next-generation platforms”) previously subject to the Export Administration Regulations (EAR) will become subject to the International Traffic in Arms Regulations (ITAR). BIS’ final rule implemented certain clarifications and revisions regarding military aircraft and gas turbine engines as well as related items. Specifically, BIS clarified the types of military aircraft controlled on the CCL and clarified and expanded the lists of items controlled only for anti-terrorism reasons; among other things. Both rules become effective December 31, 2016.
Below is a synopsis of BIS’ major changes.
Note Regarding Castings, Forgings and Other Unfinished Products
BIS made the following changes to Section 770.2 of the EAR:
- Added note stating that forgings, castings, and other unfinished products, such as extrusions and machined bodies, that have reached a stage in manufacturing where they are clearly identifiable by mechanical properties, material composition, geometry or function as commodities controlled by any Product Group A “600 series” ECCN are controlled by that ECCN.
BIS made the following changes to ECCN 3A611:
- Revised 3A611.y to allow, but not require, commodities enumerated in that paragraph or in other “600 series” .y paragraphs to be classified either under 3A611.y or the other .y paragraph. The same change is being made to 3A611.x.
- Added Note 3 to 3A611.x stating that “parts,” “components,” “accessories,” and “attachments” subject to the EAR and within the scope of any “600 series” .x entry that are of a type that are or would potentially be for use in or with multiple platforms (e.g., military electronics, military vehicles, and military aircraft) may be classified under 3A611.x for the sake of convenience.
BIS made the following changes to ECCN 8A992:
- Added a “Related controls” note to inform readers that marine gas turbine engines are not controlled in 8A992.g.
BIS made the following changes to ECCN 9A115:
- Revised text to refer readers to not only the ITAR, but also ECCN 9A610 when determining the jurisdiction or classification of certain apparatus, devices, and vehicles designed or modified for certain rockets, missiles, and UAVs (controlled under the entry).
BIS made the following changes to ECCN 9A610:
- Removed text in the “Control(s)” table that excludes paragraph .t, .u, .v, and .w from national security controls.
- Revised text in the “Control(s)” table so that the national security (NS) and regional stability (RS) reasons for controls would not apply to L-100 aircraft manufactured prior to 2013 or to specially designed parts and components for L-100 aircraft controlled in paragraph .x.
- Added new paragraph .b to control L-100 aircraft manufactured prior to 2013 to implement the limited applicability of NS and RS controls to these aircraft
- Expanded “Related controls” paragraph to refer to USML Cat. XIX and ECCN 9A619 for controls on military aircraft engines and related items, among other things.
- Added new paragraph .e to control mobile aircraft arresting and engagement runway systems for all aircraft controlled by either USML VIII(a) or ECCN 9A610.a.
- Revised text of paragraph .f to (1) clarify that it applies only to pressure refueling equipment and equipment that facilitates operations in confined areas that are specially designed for military aircraft, and (2) incorporate the illustrative list currently in the technical note.
- Added note to paragraphs .t, .u., .v, and .w to clarify that commodities that do not meet the range or range and payload parameters specified are controlled in the “catch all” paragraph .x.
- Revised Note 1 to expressly include the LM-100J in paragraph .a, thereby treating it as a “600 series” military aircraft. (The State Department’s final rule explicitly excludes the LM-100J from Cat. VIII(a)(14).)
- Added related definition regarding “fluid.”
- Revised paragraph .y:
- Paragraph .y.2 (which currently applies to cockpit analog gauges and indicators) is revised to apply to such gauges and indicators wherever they are located on the aircraft.
- Paragraph .y.8 is revised to apply to all types of fluid filters and filter assemblies—not just hydraulic, oil and fuel system filters and filter assemblies.
- Paragraph .y.10 is expanded to apply to fluid hoses, certain straight and unbent lines (for commodities in that entry or defense articles in USML Cat. VIII), and fittings, couplings, clamps (for commodities in that entry or defense articles in USML Cat. VIII), and brackets therefor. (Clamps were not previously controlled in this entry.)
- Paragraph .y.15 is expanded to cover mirrors whether located in the cockpit or cabin, instead of just the cockpit as is now the case.
- Paragraph .y.20 is revised to be made more precise to cover underwater locator beacons instead of underwater beacons as the text reads now.
- Paragraph .y.23 is revised to remove the word “cockpit,” making filtered and unfiltered panel knobs, indicators, switches, buttons, and dials controlled by the paragraph, wherever on the aircraft they are located.
- Paragraphs .y.31 and .y.32 are added to cover identification plates/name plates and fluid manifolds, respectively.
BIS made the following changes to ECCN 9A619:
- Revised paragraph .y:
- Paragraph .y.3 is expanded to apply to fluid hoses, and lines (for a commodity subject to control in this entry or a defense article in USML Category XIX), fittings, couplings, and brackets therefor, instead of only fuel lines and hoses, as is now the case.
- Paragraph .y.4 is expanded to cover fluid filters and filter assemblies, instead of only fuel and oil filters, as is now the case.
- Paragraph .y.5 is revised to apply to gas turbine engine clamps of all types.
- Paragraph .y.7 is amended to add the term “nameplates.” The entry currently controls only “identification plates.”
- Existing text of paragraph .y.8—air, fuel and oil manifolds— is revised to read “fluid manifolds.”
- Paragraph .y.9 is revised to apply to check valves for fluid systems.
- Added related definition regarding “fluid.”
- Revised “Related Controls” paragraph by adding: (1) text stating explicitly the historical practice of controlling 501-D22 gas turbine engines in ECCN 9A991.d, which is the classification that has been used for many years; (2) a reference to USML Category XIX(f) to alert readers that some aircraft parts and components are enumerated in that paragraph; and (3) a note reminding readers that the commodities enumerated in paragraph .y are subject to the controls in that paragraph rather than the broader controls elsewhere in the ECCN.
ECCNs 9B610 and 9B619
BIS made the following changes to ECCNs 9B610 and 9B619:
- The word “equipment” has been removed from the “Related controls” paragraphs in ECCNs 9B610 and 9B619 to be consistent with the removal of the word from USML Categories VIII(h) and XIX(f) in the State Department’s proposed rule.
BIS made the following changes to ECCN 9C610:
- Revised text by adding references to USML Cat. VIII in both the heading and in paragraph .a to clarify that materials specially designed for commodities enumerated or otherwise described in that category are controlled in ECCN 9C610.
BIS made the following changes to ECCN 9C619:
- Revised text by adding references to USML Cat. XIX in both the heading and in paragraph .a to clarify that materials specially designed for commodities enumerated or otherwise described in that category are controlled in ECCN 9C619.
- Added new paragraph .b to reference the materials proposed by the State Department in USML Cat. XIX(f)(13) through (15).
- Added new note 3, which provides that materials that are used in engines that are or have been in production and are not enumerated or otherwise described on the USML or ECCN 9A619 are not subject to ECCN 9C619.
- Clarified that existing note 2 (which states that materials used in engines controlled in USML Cat. XIX and ECCN 9A619 are controlled in ECCN 9C619) applies only to materials described in paragraph .a of that entry.
BIS made the following changes to ECCN 9E610:
- Specifically enumerated in ECCN 9E610.b technology required for either the “development” or “production” of “specially designed” parts or components controlled in 9A610.x or damage or failure-adaptive flight control systems controlled in USML Category VIII(h)(7), and limiting its License Exception STA eligibility to “build to print” technology.
BIS made the following changes to ECCN 9E619:
- Added to ECCN 9E619.b technology for the “development,” “production,” operation, installation, maintenance, repair, overhaul, or refurbishing of materials controlled in ECCN 9C619.b, “which imposes the national security (NS Column 1), regional stability (RS Column 1), antiterrorism (AT Column 1) and United Nations embargo reasons for control on the technology and limits use of License Exception STA to ‘build to print’ technology.”
- Amended the “Related controls” note by removing the sentence that reads, “Technology described in ECCN 9E003 is controlled by that ECCN” to avoid misleading readers into thinking that the order of review does not apply.
For specific questions, please contact us.
Paragraph .g of ECCN 8A992 controls certain inboard and outboard marine engines other than gas turbine engines.
BIS stated that the “addition of the national security controls would not increase the number of destinations to which a license is required for the commodities controlled by these paragraphs as those paragraphs already have missile technology and regional stability controls.”
BIS stated that this “classification will retain the license requirement for all destinations except Canada and, like all other aircraft controlled under ECCN 9A610.a, License Exception STA will not be available for the LM-100J aircraft unless such use is approved pursuant to the procedures set forth in § 740.20(g) of the EAR.”
BIS stated that there are many types of underwater beacons, but that underwater beacons installed on aircraft generally are designed to facilitate locating the aircraft if it crashes in the water. BIS's intent is to cover only these types of beacons.
The materials proposed by the State Department in USML Cat. XIX included: “Powders specially designed for thermal or environmental barrier coating of defense articles enumerated in paragraphs (f)(1)-(f)(4) of this category;” “Superalloys (i.e., nickel, cobalt or iron based), used in directionally solidified or single crystal casting, specially designed for defense articles enumerated in paragraphs (f)(1)-(f)(4) of this category;” and “Imide matrix, metal matrix, or ceramic matrix composite material (i.e., reinforcing fiber combined with a matrix) specially designed for defense articles enumerated in paragraphs (f)(1)-(f)(4) of this category.”
License Exception Strategic Trade Authorization (STA).