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Missile Technology Control Regime Plenary Agreements; and License Exception Eligibility

News & Blog

This final rule, as further described in section A of this preamble, revises six ECCNs under the EAR to reflect changes to the MTCR Annex agreed to at the March 2018 Technical Experts Meeting (TEM) in Reykjavik, Iceland; November 2018 TEM in Basel, Switzerland; May 2019 TEM in Berlin, Germany; October 2019 TEM in Auckland, New Zealand; and October 2021 TEM in Sochi, Russian Federation. References are provided below for the MTCR Annex changes agreed to at the meetings that correspond to the EAR revisions described below. These changes are primarily editorial corrections to these ECCNs for consistency with the MTCR Annex. This rule also makes changes to the Commerce Control List (CCL) (supplement no. 1 to part 774 of the EAR) to conform with the MTCR Annex. All of the changes in this final rule align the MT controls on the CCL with the MTCR Annex. In the discussion below, BIS identifies the origin of each change in the regulatory text of this final rule by using one the following parenthetical phrases: (Reykjavik 2018 TEM), (Basel 2018 TEM), (Berlin 2019 TEM), (Auckland 2019 TEM), (Sochi 2021 TEM), or (Changes to Align with MTCR Annex).

This final rule expands the eligibility of license exceptions for MT-controlled items, as further described in section B, by amending the EAR to expand the eligibility for the use of four license exceptions under the EAR for MT-controlled items and to add one new license exception authorization under an existing license exception. In addition, this rule revises the general restriction on the use of license exceptions to ensure that the limited set of additional license exception authorizations specified are not available for destinations of concern for missile technology reasons or that are subject to a U.S. arms embargo and makes conforming changes where needed to license exceptions to ensure that only certain license exceptions or portions of license exceptions will be available for MT-controlled items. These changes to license exception eligibility for MT-controlled items will better harmonize the availability of license exceptions for such items with the availability of license exceptions that are available for other items of similar sensitivity under the EAR. Because of the terms and conditions of existing licenses exceptions there will only be a limited number of license exceptions or portions of those license exceptions that will be available for MT-controlled items.

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