Proposed rules—released today by the Commerce Department and the State Department for publication in the Federal Register—include changes with respect to control of USML Category XII (fire control, laser, imaging, and guidance and control equipment).
The Commerce Department’s Bureau of Industry and Security (BIS) issued a proposed rule [PDF 305 KB] reflecting that these articles under Category XII of the U.S. Munitions List (USML) of the International Traffic in Arms Regulations (ITAR) would be controlled under the Commerce Control List (CCL) of the Export Administration Regulations.
Also, the BIS proposed rule would expand controls for certain software and technology, eliminate the use of some license exceptions, revise licensing policy, and expand license requirements for certain transactions involving military end-users or foreign military commodities. The proposed rule would also harmonize provisions within the EAR by revising controls related to certain quartz rate sensors and uncooled thermal imaging cameras.
The proposed changes correspond to changes in the State Department’s proposed amendment to USML Category XII.
The State Department’s proposed rule [PDF 258 KB] also concerns the proposal to amend the ITAR to revise Category XII, and proposes to amend USML Categories VIII, XIII, and XV to reflect that items now described under those categories will be included in the revised Category XII.
For more information, contact a professional with KPMG’s Trade & Customs practice:
Douglas Zuvich | +1 (312) 665-1022 | firstname.lastname@example.org
Andrew Siciliano | +1 (631) 425-6057 | email@example.com
© 2016 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.