International Law Advisory - Amended the Export Administration Regulations

On Monday, the United States Department of Commerce, Bureau of Industry and Security (“BIS”) amended the Export Administration Regulations (“EAR”) with the publication of a final rule to implement decisions to move certain chemicals from the export jurisdiction of the Department of State, Directorate of Defense Trade Controls (“DDTC”) to the jurisdiction of BIS.  The new regulations also move jurisdiction over certain chemicals from BIS to DDTC.

These revisions to the regulations, published at 69 Fed. Reg. 42,862 ( July 19, 2004), are part of an effort to implement the Defense Trade Security Initiative, announced in 2000 by the Secretary of State at a NATO ministerial meeting. 

Chemicals transferred to the Commerce Control List (“CCL”) from the United States Munitions List (“USML”) include chloropicrin, propyleneimine (2-methylaziridine) and certain oxidizers and mixtures thereof, liquid pepper, except when in individual containers as specified by the regulations, and nitrogen trifluoride in a gaseous state.  Generally speaking, the export controls and licensing requirements administered by the Commerce Department are less restrictive than those administered by the State Department DDTC.

With that in mind, chemicals transferred from the CCL to USML include 0-ethyl-2-diisopropyl aminoethyl methylphosphonite (QL), ethyl phosphonyl difluoride, methyl phosphonyl difluoride (DF), methylphosphonous dichloride, methylphosphonous difluoride, and methylphosphonyl dichloride.  These six chemicals are now on the USML.  Exporters who produce or use these chemicals should be sure that export compliance, traffic, supply chain management, sales, or other company personnel pay particular attention  to the restrictions and licensing requirements of the ITAR.

We will continue to keep you apprised of sanctions and export control developments.  If you have any questions, please feel free to contact Ed Krauland 202.429.8083 or Meredith Rathbone 202.429.6437.