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On June 3, 2016, the Bureau of Industry and Security (BIS) published in the Federal Register a final rule [Docket No. 141016858–6004–02] revising certain definitions in the Export Administration Regulations (EAR). This final rule is part of the Administration’s Export Control Reform (ECR) Initiative. The Initiative will enhance U.S. national and economic security, facilitate compliance with export controls, update the controls, and further the goal of reducing unnecessary regulatory burdens on U.S. exporters. As part of this effort, BIS, in publishing this rule, makes revisions to the EAR to include certain definitions to enhance clarity and consistency with terms also found in the International Traffic in Arms Regulations (ITAR), which is administered by the Department of State, Directorate of Defense Trade Controls (DDTC), or that DDTC expects to publish in proposed rules. The final rule also revises the Scope part of the EAR to update and clarify application of controls to electronically transmitted and stored technology and software, including by way of cloud computing. DDTC is concurrently publishing comparable amendments to certain ITAR definitions for the same reasons. Finally, this rule makes conforming changes to related provisions. The rule is effective September 1, 2016. Also on June 3, 2016, the Department of State (State) published in the Federal Register an interim final rule [Public Notice: 9487] that amends the ITAR to update the definitions of “export,” and “reexport or retransfer” in order to continue the process of harmonizing the definitions with the corresponding terms in the EAR, to the extent appropriate. Additionally, State creates definitions of “release” and ”retransfer” in order to clarify and support the interpretation of the revised definitions that are in the rulemaking. State creates new sections of the ITAR detailing the scope of licenses, unauthorized releases of controlled information and revises the section on “exports” of technical data to U.S. persons abroad. Finally, State consolidates regulatory provisions on the treatment of foreign dual and third country national employees within one exemption. The rule is effective on September 1, 2016. State will accept comments on this interim final rule until July 5, 2016. |
