Exactly a year after their last round of proposed rules, the Department of Commerce’s Bureau of Industry and Security (BIS) and Department of State’s Directorate of Defense Trade Controls (DDTC) published their much-anticipated final definitions rules. These rules revise certain key terms in the Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR). The final rules go into effect on September 1, 2016, meaning that, if they haven’t already started, impacted industries need to get to work on updating their compliance programs to reflect the changes.
Keeping with the theme of the rest of the President’s Export Control Reform Initiative, the two agencies’ final rules attempt to more fully harmonize the EAR and the ITAR by, among other things, revising/adding definitions of “export,” “reexport,” and “transfer”(BIS)/“retransfer” (DDTC). And, while the two agencies’ proposed rules largely were aligned, BIS’s final rule covers a lot more ground than does DDTC’s, such as the treatment of encrypted technology that is sent abroad, leaving the door open for still more changes to come.
For more detailed information on the changes made in BIS’s and DDTC’s final rules, see our recent article. The full text of the final rules, including a complete list of the regulatory revisions, can be found here (BIS’s final rule) and here (DDTC’s final rule).