On April 16, 2013, the State Department and the Commerce Department published the first set of final rules in the Federal Register to implement the Obama administration’s Export Control Reform Initiative. The State Department described the publication of these final rules as a “major milestone” for U.S. export controls. Additional final rules will be published in the coming months. Also, on May 24, 2013, the State Department published a proposed revision to the definition of the term “defense service.”

Background -

Currently, most exports are subject to one of the following export control regulations: the International Traffic in Arms Regulations (ITAR), administered by the State Department, or the Export Administration Regulations (EAR), administered by the Commerce Department. The ITAR’s U.S. Munitions List (USML) is a broad list that controls virtually anything specifically designed, developed, configured, adapted, or modified for a military application. The breadth of the USML means that certain items that may have been originally developed for a military application may continue to be controlled under the USML, even when used in commercial applications. The EAR’s Commerce Control List (CCL) controls dual-use items, which include commercial items that may be useful in both commercial and military end-uses. Unlike the USML, the CCL is a “positive” list that specifically identifies controlled items based on technical parameters...