Seems like all my free moments are on a plane. This flight in particular is an 8 hour flight — the inflight entertainment and the light controls are not working! This gives me time to reflect on Export Control Reform. With the first set of changes happening on October 15, my colleagues and I have been trying to actually apply the regulations so we can create a process of review for our clients.
You have to really understand the new threshold questions before you try to apply them. Here is a key example: how do you begin if you want to classify something? Should you still use the old specifically designed language for products not affected by the changes or should you revise all your procedures to account for the new specially designed language and the new series of yes/no questions for classification?
What we have learned:
Since the old (specifically designed) language and new (specially designed) language are included in the actual text of the applicable enumerated classification categories, you can go ahead and revise your checklists and procedures now to include the new classification steps. The new steps will account for (1) the potential applicability of the new definition to your export and (2) the possibility that it has moved from the State Department’s United States Munitions List (“USML”) to the Commerce Department’s new ‘600 Series’. Once these new yes/no questions are incorporated into your materials, you will be able to properly classify any product, regardless of whether it falls under an unrevised USML category (that still employs the specifically designed definition), a revised USML category (that uses the new specially designed language), or the ‘600 Series’ of the Commerce Control List (that also makes use of the new language).
We revised our checklist accordingly based on the new regulations. We also created an online training program that will be available for purchase. We decided to make a straightforward program that is simple as well as being in clear business-friendly English. We don’t spoon feed you the regulations, we actually translate the process for your business. We will post a link soon so you can try it out. The best part is that we’ve created a one page flow chart that includes the new regulations and all three of the agency requirements. No one to my knowledge has done this yet. Feel free to try it. If you don’t like it, please let me know.
Meanwhile, we will use this blog to update you on the regulatory changes. As of October 15, the following USML categories have items moving over to the Commerce Control List:
Category VIII – Aircraft and Related Articles
Category XIX – Gas Turbine Engines and Associated Equipment
This means that some of these items will no longer require a license to export. However, it also means that the questions you must ask in order to classify products are also changing. If you have questions or want to make sure you understand this, please join us for a free webinar with Assistant Secretary Kevin Wolf, the man who designed this program for the Commerce Department. The webinar entitled “All You Want and need to Know About Export Control Reform” is on October 23 at 1PM EDT. You can register here: https://www3.gotomeeting.com/register/405406094.
Have a great day.