Fewer Military Controls and Streamlined Licensing for Exporters Are Expected: Are You in Compliance?

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On Friday, March 8, 2013, the White House announced two important steps by the Administration to further its export control reform effort, which are expected to simplify licensing requirements for less sensitive items and establish stronger protections for items with higher national security implications.

The first step was the issuance of Executive Order (“E.O.” or “Order”) 13637 (March 8, 2013), which reorganizes and reallocates licensing and notification responsibilities among federal agencies and delegates certain authorities to carry out these responsibilities. The purpose of the E.O. is to improve efficiency and efficacy of the registration, licensing, and enforcement of U.S. export control laws.

Second, the Administration announced that it notified Congress on March 7, 2013 of proposed changes to the United States Munitions List (“USML”) that would simplify certain export controls associated with military aircraft (currently controlled in USML Category VIII) and certain gas turbine engines (currently controlled within USML Categories VI, VII and VIII). The Arms Export Control Act at section 38(f) requires the President to notify both houses of Congress at least 30 days prior to the removal of items from the USML. The delisting of items from the USML is one of several such steps to be undertaken this year.

Please see full alert below for more information.

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