Monthly Archives: July 2015

July 15, 2015

DDTC Says, “Sorry for Confusion” – Temporarily Modifies USML Category XI – Military Electronics

by Gwen Green and Steven Pelak

text_editorOn July 2, 2015, the U.S. Department of State, Directorate of Defense Trade Controls (“DDTC”) published a final rule temporarily modifying Category XI of the United States Munitions List

(“USML”).  This final rule revises paragraph (b) of Category XI to clarify the extent of control over “certain intelligence analytics software”.  Specifically, DDTC has attempted to prevent exporters from “read[ing] the revised control language [of Category XI(b)] to exclude” such software from the USML.  DDTC maintains in its public notice that “intelligence analytics software . . . has been and remains controlled on the USML.”

A year ago on July 1, 2014, DDTC revised USML Category XI (effective December 30, 2014).  DDTC or others in the U.S. Government apparently have found that exporters may read the revised Category XI(b) language to exclude certain intelligence analytics software which, in DDTC’s view, should be controlled on the USML.  DDTC stated last week that it wished “in the interest of the security of the United States to temporarily revise” USML Category XI(b) pursuant to its emergency powers under Section 126.2 of the ITAR.  DDTC asserted that its “clarification is achieved by reinserting the words ‘analyze and produce information from’ and by adding software to the description of items controlled” under Category XI(b).  In full, Category XI(b) now reads:

“*(b) Electronic systems, equipment or software, not elsewhere enumerated in this sub-chapter, specially designed for intelligence purposes that collect, survey, monitor, or exploit, or analyze and produce information from, the electromagnetic spectrum (regardless of transmission medium), or for counteracting such activities.”

DDTC has put the revised rule into effect until December 29, 2015 “while a long term solution is developed.”

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