Pick A Commodity – Any Commodity
Posted by Mallory Lengel on Tuesday, March 25, 2014 · Leave a Comment
Posted for TSA Inc. 
Pax II
By Heidi France, ITAR Expert
If only it were as easy as a simple card trick. Choosing the correct classification for a commodity has recently become more difficult. In the past year there have been three final rules issued by the Department of State (DoS) and Department of Commerce (DoC) which outline the restructuring of the U.S. Munitions List (USML) and the Commodity Control List (CCL) respectively. Many items that were previously included on the USML are now controlled on the CCL. The third and latest implementing rule was issued on 2 Jan 2014 with an effective date of 1 July 2014.
Within each revised USML category the parameters have become increasingly narrower to keep in line with a goal of Export Control Reform of creating a “positive” list of items that warrant control. Those items that don’t “make the cut” have been moved to the CCL and newly established Export Control Classification Numbers (ECCN) have been assigned.
If there is still uncertainty about where a commodity falls, an exporter can apply for a Commodity Jurisdiction (CJ) per §120.4 of the International Traffic in Arms Regulations (ITAR). It is not required for an exporter to be registered with the DoS in order to apply for a CJ. The exporter should provide as much information as possible on the Commodity Jurisdiction Determination Request Form (DS-4076) and also provide any amplifying information as attachments so the reviewers at the DoS and agency levels can properly identify the product and locate the correct technical authority to determine the proper classification.
It is important to note that because of the specificity within the new USML Categories, it is recommended for the exporter to provide details about the product and its use. For example, instead of just indicating that a commodity is for use on a F/A-18 aircraft, provide the Model (A-D or E/F or EA-18G). This aligns with the new breakdown of aircraft within USML Category VIII. Do your homework before applying for a CJ. Block 17 on the DS-4076 asks for a suggested USML Category or ECCN. If this block is left blank, the reviewers could make the determination that the commodity is something other than the exporter’s desired outcome leaving the exporter unprepared to take the necessary steps to export their product timely and compliantly. If a USML Category or ECCN is provided within the application it is much easier for the reviewers to pinpoint a correct placement of the commodity and helps to advance the application. That’s not to say that the reviewers will always agree with the exporter’s assessment, but it does assist in expediting the review.
Once the CJ review is complete, DoS will provide a determination letter to the exporter indicating whether the commodity falls under the USML or the CCL. If it is determined that the commodity belongs in a USML category, the licensing requirements of the ITAR must be followed. However, if the commodity is determined to belong on the CCL, then a very specific ECCN must be assigned in order to determine the licensing requirements. There is a separate process to assist with the proper classification of a commodity within the CCL. The process falls under the Export Administration Regulations (EAR) which is Title 15 Code of Federal Regulations (CFR) §748.3. The great thing about this process is that the Bureau of Industry and Security (BIS) will provide an ECCN down to the paragraph or subparagraph level. The results are only considered an “Advisory Opinion” but will provide the exporter with an answer whether a license is required or not for a particular commodity, end user and end use.
The BIS, DoC has a very useful link for Classification requests: http://www.bis.doc.gov/index.php/licensing/commerce-control-list-classification/classification-request-guidelines
Need help with export controls? TSA Inc. can help!
Heidi France is a Lead International Trade Specialist at Technology Security Associates, Inc.
Email: [email protected]
Filed under Leader Features · Tagged with CCL, Commerce Control List, EAR, ECR, Export Administration Regulations, Heidi France, International Traffic in Arms Regulations, ITAR, single License Authority, SLA, TSA, TSA blog, TSA Export Control Reform, TSA Inc, U.S. Munitions List, USML
