Dual-Use Export Controls and the Commerce Control List

Bureau of Industry and Security Bureau of Industry and Security U.S. Department of CommerceU.S. Department of Commerce

Dual-Use Export Controls and Dual-Use Export Controls and the Commerce Control Listthe Commerce Control List


Licensing OverviewLicensing Overview

Majority of products do not require a license.Majority of products do not require a license.

A few specialized high technology items require A few specialized high technology items require an export license due to Nuclear Proliferation an export license due to Nuclear Proliferation (NP), Missile Technology (MT), Chemical (NP), Missile Technology (MT), Chemical Biological (CB), National Security (NS) controls.Biological (CB), National Security (NS) controls.

If export license is required, license will generally If export license is required, license will generally be approved for a valid civil end use or tofriendly be approved for a valid civil end use or tofriendly militaries. militaries.


License JurisdictionLicense Jurisdiction

Department of Commerce : Dual-useDepartment of Commerce : Dual-use

Department of State: MunitionsDepartment of State: Munitions

Nuclear Regulatory Commission (NRC): Trigger Nuclear Regulatory Commission (NRC): Trigger listlist

Department of Energy (DOE): Technology for Department of Energy (DOE): Technology for Special Nuclear MaterialSpecial Nuclear Material


Internal ConsiderationsInternal ConsiderationsNational Security ConcernsNational Security ConcernsForeign Policy InitiativesForeign Policy InitiativesEconomic ConcernsEconomic Concerns

External ConsiderationsExternal ConsiderationsWassenaar ArrangementWassenaar ArrangementMissile Technology Control RegimeMissile Technology Control RegimeNuclear Suppliers GroupNuclear Suppliers GroupAustralia GroupAustralia Group

RationaleRationale

Dual-Use Export Controls and the Dual-Use Export Controls and the Commerce Control ListCommerce Control List


International Nonproliferation International Nonproliferation AgreementsAgreements

NuclearNuclear

MissilesMissiles

CBWCBW

ConventionalConventional

Australia GroupAustralia GroupBiological Weapons ConventionBiological Weapons ConventionChemical Weapons ConventionChemical Weapons Convention

Missile Technology Control Regime Missile Technology Control Regime Hague Code of ConductHague Code of Conduct

Nuclear Suppliers GroupNuclear Suppliers GroupZangger CommitteeZangger CommitteeNuclear Nonproliferation Treaty Nuclear Nonproliferation Treaty

Wassenaar ArrangementWassenaar Arrangement


Licensing PyramidLicensing Pyramid

EAR 99EAR 99

Anti-Terrorism Anti-Terrorism Unilateral ControlsUnilateral Controls

License ExceptionsLicense Exceptions

LicenseLicense

Majority Majority of items of items exported exported to China to China from the from the U.S. do U.S. do

not not require a require a licenselicense


List Based ControlsList Based Controls ECCNECCN 1B1171B117

HeadingHeading Batch mixers with Batch mixers with provision provision for mixing under for mixing under vacuum in vacuum in the range from the range from zero to 13.326 zero to 13.326 kPa and kPa and with temperature with temperature control control capability of the capability of the mixing chamber… mixing chamber…

Reason for Reason for MT, ATMT, AT ControlControl


What Are Catch-All Controls?What Are Catch-All Controls?

Designed to help eliminate the worldwide Designed to help eliminate the worldwide threat of proliferation of WMD and their threat of proliferation of WMD and their missile delivery systemsmissile delivery systems

License requirements beyond the License requirements beyond the multilateral regime control listsmultilateral regime control lists

Between 50 to 80 percent of the goods and Between 50 to 80 percent of the goods and technology required for a project or facility technology required for a project or facility of concern involving WMD or missile of concern involving WMD or missile delivery systems are not controlleddelivery systems are not controlled


U.S. Implementation of “Catch-U.S. Implementation of “Catch-All” ControlsAll” Controls

““Knows” ProvisionKnows” Provision

““Is Informed” Is Informed” ProvisionProvision

““U.S. Persons” U.S. Persons” ProvisionProvision

Crossover ProvisionCrossover Provision


Entities ListEntities List The Entities List notifies exporters of requirements The Entities List notifies exporters of requirements

for exports/re-exports to specified end usersfor exports/re-exports to specified end users

See Supplement Number 4 to Part 744 of the EARSee Supplement Number 4 to Part 744 of the EAR

. .


Transparency is the key.

- Clearly state name of the consignee, with accurate address and contact information.

- Provide alternate points of contact.

- If multiple end-users, provide accurate listings, including correct addresses and contact information.

- Provide thorough descriptions of end use that details the appropriateness of the export for the stated end use.

Helpful Hints If a License Is Helpful Hints If a License Is NeededNeeded


Licenses can be used for multiple shipments.

The quantity of items requested should be estimated for two(2) years of use.

- If a longer duration for the export transaction is required, ask to have license validity extended.

BIS licenses are authorizations to ship approved items to approved consignees/end user(s). BIS licenses allow numerous end users (over 35) to be placed on the license.

Provide prior licensing history, if applicable. Provide website information, press releases, etc.,

to show your company is engaged in commercial activities.

Helpful Hints If a License Is Helpful Hints If a License Is NeededNeeded


Evaluation Factors for ApplicationsEvaluation Factors for Applications Bona fides of consignee and end usersBona fides of consignee and end users

Sensitivity of commodity, software, or technologySensitivity of commodity, software, or technology

Stated end-use and appropriateness of the Stated end-use and appropriateness of the exported commodity, software, or technology for exported commodity, software, or technology for that end usethat end use

Non-proliferation credentialsNon-proliferation credentials

Assurances and guaranteesAssurances and guarantees

Risk of diversion and any associated intelligenceRisk of diversion and any associated intelligence

Licensing historyLicensing history


Licensing DeadlinesLicensing DeadlinesThe PresidentThe President

EARBEARB

ACEPACEP

OCOC

Dept. ofDept. ofDefenseDefense

Dept. ofDept. ofStateState

Dept. ofDept. ofEnergyEnergy

Dept. of Dept. of JusticeJustice

Export ApplicationExport ApplicationSubmitted to Dept.Submitted to Dept.

of Commerceof Commerce Day 1Day 1

Day 9Day 9

Day 39Day 39

Day 53Day 53

Day 69Day 69

Day 85Day 85

Day 90Day 90


QUESTIONS?QUESTIONS?

Documents

Dual-Use Export Controls and the Commerce Control List