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EAR Rule Would Expand License Exceptions

The Bureau of Industry and Security has issued a proposed rule addressing the transfer of control to the Export Administration Regulations of items the President determines no longer warrant control under the International Traffic in Arms Regulations. The rule is issued in connection with the President's Export Control Reform Initiative. The rule would establish a General Order regarding continued use of State Department authorizations for a specified period, by broadening license exceptions in the EAR to make them consistent with ITAR exemptions, and by extending the validity period of BIS licenses. Any modifications to license exceptions specific to particular types of items, such as firearms, will be addressed in proposed rules pertaining specifically to those items. In response to public comments on a June 15, 2011, proposed rule ( 72,755.37), the rule proposes a revised de minimis rule for "600 series" items. These are items the President determines no longer warrant control on the United States Munitions List that would be controlled in the new "600 series" of the Commerce Control List ( Supplement No. 1 to EAR Part 774). Finally, the rule proposes conforming changes necessary to implement the Export Control Reform Initiative. The conforming changes, such as changes to reporting thresholds for the Automated Export System, would affect items currently subject to the EAR. A complete list of the affected provisions appears in the regulation table below. Comments on the rule are due August 6, 2012. For the text of the rule, see 72,755.50.




(The news featured above is a selection from the news covered in the Government Contracts Report Letter, which is published weekly and distributed to subscribers of the Government Contracts Reporter. )


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