Export Control Reform Overview

In 21^st century the U.S  is the part of the new world order where multipolarity is the foreign policy of geopolitical players in international arena, so the United States requires new proactive approaches and strategies to deal with constantly arising security threats. The reality is that current national security structure is not appropriate and qualified in solving contemporary national security problems and might be in fact harmful if reorganizations of national security apparatus would be ignored or delayed. According to the United States Commission on National Security/ 21^st Century “…most troublesome is the lack of an overarching strategic framework… clear goals and priorities are rarely set and  budgets are prepared and appropriated as they were during the Cold War..”
Along with the process of reorganization of national security structure to meet the emerging threats of the new century, the President directed in depth review and reformation of the U.S. export control system in order to address the challenges of contemporary economic and technological environment. Indeed the confusion exist due to difficulty in identification which list  the U.S. Munitions List (USML) or Commerce Control List (CCL), administered by the Department of State and Commerce respectively holds  jurisdiction over the certain item controlled. The ECR initiative is a long process which started in year 2009 by the presidential decision to review all seven agencies directly involved in export control process.  By implementing all three Phases of reformation the administrations tries to create a single control list,  licensing agency as well as unified information technology system, and enforcement coordination center. As of now in October 15, 2013 certain proposed rules will take an effect and the changes to ITAR controls are scheduled to be implemented by categories  starting with Category VIII – Aircraft and Associated Equipment and Category XIX – Gas Turbine Engines and Associated Equipment. Furthermore, one of the most significant changes is the addition in CCL of the new “600 series” which will be controlling former USML items. The establishment of a new series ought to bring simplification of export control system through eliminating restrictions on exporting items by transferring them from laws and regulations that govern military products and services under the International Trafficking in Arms Regulations (ITAR) to the laws of dual use items controlled by the Export Administration Regulations (EAR).

About the Author:
Marina Truhan

International trade compliance expert with a focus on export compliance, denied party screening, export classification, EAR, ITAR, deemed export and encryption items.
For additional details on changes to EAR and ITAR and how this important change may affect your organization you can consult Intredex Export Compliance services. Intredex assists companies with services such as restricted and denied party screening, product export classification, and with achieving the EAR (Export Administration Regulations) and ITAR compliance with developing procedures for export transactions in alignment with the U.S. Government laws and regulations.