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BIS Rules Make Extensive Changes to the EAR


The Bureau of Industry and Security has issued three final rules amending the Export Administration Regulations. The first rule, Wassenaar Arrangement 2011 Plenary Agreements Implementation: Commerce Control List, Definitions, New Participating State (Mexico) and Reports (72,750.260), carries an effective date of July 2, 2012. The second rule, Implementation of the Understandings Reached at the 2011 Australia Group (AG) Plenary Meeting and Other AG-Related Clarifications to the EAR (72,750.259), also has a July 2, 2012, effective date. The last rule, Amendment to Existing Validated End-User Authorizations: Hynix Semiconductor China Ltd., Hynix Semiconductor (Wuxi) Ltd., and Boeing Tianjin Composites Co. Ltd. in the People's Republic of China (72,750.261), went into effect on July 9, 2012.

Wassenaar Arrangement Agreements

The first rule (72,750.260) implements changes to the Wassenaar Arrangement's List of Dual-Use Goods and Technologies made by governments participating in the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies at the December 2011 WA Plenary Meeting. The rule amends entries on the Commerce Control List (Supplement No. 1 to EAR Part 774) that are controlled for national security reasons in Categories 1 through 9, revises reporting requirements, and amends definitions. The rule raises the Adjusted Peak Performance parameter for high performance computers and the APP eligibility level for deemed exports of computers in License Exception APP. Also, the rule implements changes to the WA List that pertain to low light level items that were agreed upon by the WA in December 2007 through 2011 at the WA Plenary Meetings. Finally, the rule adds Mexico as the 41st Participating State in the list of WA members. The WA advocates implementation of effective export controls on strategic items with the objective of improving regional and international security and stability. A complete listing of the EAR provisions affected by this rule appears in the regulation table below.

Australia Group Understandings

The second rule (72,750.259) implements the understandings reached at the June 2011 plenary meeting of the Australia Group. The rule amends the CCL entry that controls human and zoonotic pathogens and "toxins" and the entry that controls genetic elements and genetically modified organisms to reflect changes to the AG "List of Biological Agents for Export Control." The rule also amends the CCL entries that control chemical manufacturing facilities and equipment, and equipment capable of use in handling biological materials, to reflect the June 2011 AG plenary changes to the "Control List of Dual-Use Chemical Manufacturing Facilities and Equipment and Related Technology and Software" and the "Control List of Dual-Use Biological Equipment and Related Technology and Software."

VEU Authorizations

The last rule (72,750.261) revises the existing Authorization Validated End-User listings for three VEUs in the People's Republic of China. Specifically, the rule amends Supplement No. 7 to EAR Part 748 to change the names of Hynix Semiconductor China Ltd. and Hynix Semiconductor (Wuxi) Ltd. and their respective "Eligible Destinations" in the PRC. The rule also amends the list of "Eligible Items (by ECCN)" that may be exported, reexported, and transferred (in-country) to the approved facility of VEU Boeing Tianjin Composites Co. Ltd. in the PRC. These changes are prompted by factors arising from the companies' normal course of business, and are not the result of any activities of concern by the companies.





(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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