AES Seminar Compliance with the Export Administration Regulations

AES Seminar Compliance with the Export Administration Regulations (EAR) in AES EEI Filings

Agenda Topics • Introduction • Determining Export Control Requirements ØWho, How, What, and Where? ØLicenses, License Exceptions, No License Required • AES Changes Ø For Export Control Reform

Bureau of Industry and Security Mission Advance national security, foreign policy and economic interests § Develops export control policies § Issues export licenses § Prosecutes violators to heighten national security § Develops and implements programs that ensure a technologically superior defense industrial base

Export Control Reform www. export. gov/ecr • Improvement of national security and interoperability with Allies • ECR tasks include: Ø Transitioning items on the State Department United States Munitions List (USML) to the Commerce Department’s Commerce Control List (CCL)

“ 600 Series” ECCN 9 A 610 Last two characters (i. e. numbers) will generally track the Wassenaar Arrangement Munitions List (WAML) CCL Category 0 -9 Product Group A-E The “ 600 series” derives its name from the 3 rd character (i. e. , number) of the ECCN. Bureau of Industry and Security, Export Enforcement

“ 515 Series” ECCN 9 A 515 CCL Category 0 -9 Product Group A-E The “ 515 series” derives its name from the 3 rd character (i. e. , number) of the ECCN. Bureau of Industry and Security, Export Enforcement

Addition of “ 600 Series” ECCNs 7

Addition of “ 600 Series” and 9 x 515 ECCNs New CCL ECCNs Related USML Category Eligible to be reported in AES beginning July 1, 2014 0 A 604, 0 B 604, 0 D 604, 0 E 604, 9 A 604, 9 B 604, 9 D 604, 9 E 604 IV – Missiles 0 A 614, 0 B 614, 0 D 614, 0 E 614 IX – Training Equipment 1 B 608, 1 C 608, 1 D 608, 1 E 608 V – Explosives 1 A 613, 1 B 613, 1 D 613, 1 E 613 X – Protective Equipment Eligible to be reported in AES beginning June 27, 2014 and November 10, 2014 9 A 515, 9 B 515, 9 D 515, 9 E 515 XV - Satellites Eligible to be reported in AES beginning December 30, 2014 3 A 611, 3 B 611, 3 D 611, 3 E 611, 9 A 620, 9 B 620, 9 D 620, 9 E 620 XI – Military Electronics 8

Overview of EAR § 758. 1 Changes • AES Filing is Required: ØFor all exports of items enumerated in paragraphs. a through. x of a 9 x 515 or “ 600 series” ECCN regardless of value or destination, including exports to Canada ØFor all exports under License Exception Strategic Trade Authorization (STA) 9

Overview of EAR § 758. 2 Changes Grounds for Denial for AES Post-Departure Filing include: Ø Exports made under BIS License Exception Strategic Trade Authorization (STA); under authorization Validated End User (VEU); or are of 9 x 515 or “ 600 series” items Ø Exports to E: 1 Countries Ø Exports involving parties on the Denied Persons List, Entity List, or UVL Ø Exports of items licensed, items having an ECCN other than AT, or ENC items 10

Overview of EAR § 758. 6 Changes Required on Invoices, & BOLs, AWBs, or other export control documentation: ØThe ECCN of a 9 x 515 or “ 600 series” item ØDestination Control Statement 11

XXXX 000000 X ABC, INC 1010 SECURITY AVE INDUSTRYVILLE, NY 00000 REF #: X 0000 SHIPPERS REFERENCE 000000 XYZ AEROSPACE 123 MAIN MNO FORWARDERS 2123 ANYWHERE STREET SAO PAULO, BRAZIL SUITE 100 ECCN and Destination Control Statement Included STERLING, VA 20166 US XYZ AEROSPACE RUA VERBO DIVINO, 1500, BLOCO H, TERREO USA 04719 -904 SAO PAULO, BRAZIL ECCN: 9 A 610 MNO FORWARDERS BALTIMORE, MD ACL MIAMI, FL SAO PAULO, BR MIAMI, FL 2 OTHER PARTS, NESOI, OF MILITARY AIRPLANES/HELICOPTERS THIS COMMODITY, TECHNOLOGY, OR SOFTWARE WAS EXPORTED FROM THE UNITED STATES IN ACCORDANCE WITH THE EXPORT ADMINISTRATION REGULATIONS. DIVERSION CONTRARY TO U. S. LAW IS PROHIBITED. AES X 201310151987654 380 Export Document Example 1

New AES License Type – C 60 (DY 6) • Required for. y paragraph 9 x 515 or “ 600 series” items • AES filing is exempt for shipments $2, 500 or less or destined to Canada • ECCNs allowed but not required to be reported. • When a 9 x 515 or “ 600 series” ECCN is reported under C 60, it must be eligible (See AESTIR, appendix F for those eligible) • “DY 6” is required in the License Number field 13

AES Editing on “ 600 Series” ECCNs • C 30 (BIS License), C 31 (SCL), C 40 (TMP), C 41 (RPL), C 42 (GOV), C 59 (STA) Ø All 29 ECCNs permitted • C 32 (NLR with control other than AT) Ø All 29 ECCNs permitted to Canada only • C 35 (LVS), C 44 (TSU), C 45 (BAG), C 60 (DY 6) Ø Only some “ 600 -series” ECCNs are permitted 14

AES Editing on 9 x 515 ECCNs • C 30 (BIS License), C 31 (SCL), C 40 (TMP), C 41 (RPL), C 42 (GOV), C 46 (AVS), and C 59 (STA) • C 32 (NLR with control other than AT) Ø 9 A 515. e to destinations permitted by the EAR Ø 9 A 515 (other than. e), 9 B 515, 9 D 515, and 9 E 515 permitted to Canada only • C 35 (LVS), C 44 (TSU), C 60 (DY 6) Ø Only some 9 x 515 ECCNs are permitted 15

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EAR Items Licensed under ITAR State Department may license an item subject to EAR on an ITAR approval Ø ITAR section 120. 5(b) AES filer must report the ECCN or EAR 99 in the ECCN field Ø Even for license type S 05 (DSP-5) 17

Contact Information U. S. Department of Commerce Bureau of Industry and Security Office of Technology Evaluation 1401 Constitution Ave. , NW Room 1093 Washington, DC 20230 202 -482 -4933 202 -482 -5361 (fax) ECR_AES@bis. doc. gov

BIS Contact Information • Website: www. bis. doc. gov • Exporter Services Offices: – Washington, D. C. (202) 482 -4811 – Southern California (949) 660 -0144 – Northern California (408) 998 -8806 • Export Enforcement Offices – Nationwide (800) 424 -2980