Pursuant to section 38(f) of the Arms Export Control Act (AECA), the President is obligated to review the USML "to determine what items, if any, no longer warrant export controls under" the AECA. The President must report the results of the review to Congress and wait 30 days before removing any such items from the USML. The report must "describe the nature of any controls to be imposed on that item under any other provision of law." 22 U.S.C. 2778(f)(1).
BIS has published and will continue to publish additional Federal Register notices containing proposed amendments to the CCL that describe proposed controls for additional categories of articles the President determines no longer warrant control under the USML. The State Department will publish concurrently proposed amendments to the USML that correspond to the BIS notices. BIS will also publish proposed rules to further align the CCL with the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies' (Wassenaar Arrangement) Munitions List (Wassenaar Arrangement Munitions List or WAML) and the Missile Technology Control Regime's (MTCR) Equipment, Software and Technology Annex (MTCR Annex).
Overview of This Proposed Rule
Following the structure set forth in the final rule entitled "Revisions to the Export Administration Regulations: Initial Implementation of Export Control Reform" (78 FR 22660, April 16, 2013) ("April 16 (initial implementation) rule"), this proposed rule describes BIS's proposal for controlling under the EAR's CCL certain military electronic equipment and related articles now controlled by the ITAR's USML Category XI, and equipment and related items in category ML20 of the WAML, which pertains to certain cryogenic and superconductive equipment. These items are currently controlled by "catch all" provisions of the ITAR's USML Categories VI, VII, VIII, and XV. Finally, this proposed rule would correct two ECCNs in CCL Category 7 to apply the "missile technology" reason for control only to items that are on the MTCR Annex.
This action re-proposes moving export control of certain military electronic equipment from the USML to the CCL. BIS originally proposed transferring the control of these items to the EAR in 2012, in a rule entitled, "Revisions to the Export Administration Regulations (EAR): Control of Military Electronic Equipment and Related Items the President Determines No Longer Warrant Control under the United States Munitions List (USML)" (77 FR 70945, November 28, 2012) ("November 28 (military electronics) rule"). That action was issued simultaneously with a proposed rule by the Department of State, entitled, "Amendment to the International Traffic in Arms Regulations: Revisions of US Munitions List Category XI and Definition for `Equipment' " (77 FR 70958, November 28, 2012) ("State's November 28, 2012 (military electronics) rule") (collectively, the "November 28, 2012 (military electronics) rules"). The provisions in this second proposed rule by BIS are based on a review of public comments to the November 28 (military electronics) rule, and on a review of USML Category XI and WAML category ML20 by the Department of Defense, which worked with the Departments of State and Commerce in preparing these proposed amendments. BIS is proposing this action a second time because the comments suggested changes from the original proposed rule that are sufficiently distinct from the November 28 (military electronics) rule to warrant providing them to the public for further review and to obtain public input on the feasibility of implementing the rule as re-proposed. The criteria used in this review are described in the November 28 (military electronics) rule. See 77 FR 70945.