Monthly Archives: May 2015

May 29, 2015

Open for Business: State Issues Final Rule to Allow Defense Exports to Fiji

by Gwen Green

FijiOn May 29, 2015, the U.S. Department of State issued a final rule amending the International Traffic in Arms Regulations (“ITAR”) to rescind its previous policy of denying the export of defense articles and defense services to Fiji.  The final rule, effective May 29, 2015, comes approximately eight months after Fiji held the first democratic elections in the country since retired Rear Adm. Voreqe Bainimarama seized control in a military coup in 2006.

The Multinational Observer Group (“MOG”), representing 14 countries including the United States, was invited by the acting Fijian Government to observe the September 2014 parliamentary elections, which resulted in the landslide victory of Bainimarama’s Fiji First Party.  In April 2015, the MOG released its final report on the Fijian elections finding, “The outcome of the 2014 Fijian Election broadly represented the will of the Fijian voters.  The conditions were in place for Fijians to exercise their right to vote freely.”

In the final rule, the Department of State explained it has therefore determined it is in the best interests of U.S. foreign policy, national security, and human rights concerns to rescind its previous policy of denying defense exports to Fiji.

May 26, 2015

DDTC Publishes Proposed Changes to Registration and Licensing of U.S. Persons Providing Defense Services to Non-U.S. Persons

by Gwen Green

subscribe icon write signOn May 26, 2015, the U.S. Department of State, Directorate of Defense Trade Controls (“DDTC”) published a proposed rule to amend the International Traffic in Arms Regulations (“ITAR”) to clarify requirements for the registration and licensing of U.S. persons providing defense services while employed by non-U.S. employers.

The proposed rule would require U.S. “natural persons”, who furnish defense services to and/or on behalf of their non-U.S. employer, whether in the United States or abroad, to register with the Directorate of Defense Trade Controls (“DDTC”), unless their non-U.S. employer is an ITAR-registered entity or is listed on the ITAR registration statement of a U.S. parent or other U.S.-affiliate entity.  In the proposed rule, the term “natural person” is defined as an individual human being, as distinguished from a corporation, business association, partnership, society, trust, or any other entity, organization or group.

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May 5, 2015

More Export Control Reform on the Horizon: BIS and DDTC Publish Proposed Rules to Revise Category XII

by Gwen Green

School ReformOn May 5, 2015, the U.S. Department of State, Directorate of Defense Trade Controls (“DDTC”) and the U.S. Department of Commerce, Bureau of Industry and Security (“BIS”) concurrently published proposed rules to transfer certain less-sensitive items from Category XII of the U.S. Munitions List (“USML”), which currently controls fire control, range finder, optical and guidance and control equipment, to the Export Administration Regulations (“EAR”) Commerce Control List (“CCL”). The proposed rules are intended to create a “bright line” regarding control of these items between the USML and CCL.

The revised Category XII, with a few exceptions for “specially designed” parts, components, accessories, and attachments, would describe in more precise detail the specific parts, components, accessories, and attachments that still warrant control on the USML. Items formerly controlled under Category XII would largely be transferred to new and pre-existing “600 Series”  Export Control Classification Numbers (“ECCNs”) on the CCL.  New ECCNs 6A615, 6B615 and 6D615 would control military fire control, ranger finder, and optical equipment, and revised ECCN 7A611 and new ECCNs 7B611, 7D611 and 7E611 would include military optical and guidance equipment.  The proposed rules would revise several existing ECCNs outside of the 600 Series, including 0A987, 2A984, and several 6Axxx and 7Axxx ECCNs, to add notes to the Related Controls paragraph or Items subparagraphs to reference corresponding Category XII control(s).

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