March 6, 2020
AES Changes Impacted by Export Control Reform Implementation Rule
On Thursday, January 23, 2020, the Department of Commerce, Bureau of Industry and Security published a final rule (https://www.govinfo.gov/content/pkg/FR-2020-01-23/pdf/2020-00573.pdf) that will become effective March 9, 2020. As a result of this rule, the following changes will be made to the Automated Export System (AES) in order for exporters and authorized agents to successfully report electronic export information in the AES.
The Addition of thirteen “0x5zz” and four “600-series” Export Control Classification Numbers (ECCN)
ECCNs 0A501, 0A502, 0A503, 0A504, 0A505, 0B501, 0B505, 0D501, 0D505, 0E501, 0E502, 0E504, 0E505, 0A602, 0B602, 0D602, and 0E602 will be added to the AES ECCN reference table. See the following instructions to determine which new ECCNs are eligible for certain license types. By using any of the License Exceptions or “No License Required” (NLR), you are certifying that the terms, provisions, and conditions described in the EAR have been met.
- C30 (BIS license)1, C40 (TMP)1 –“0x5zz” ECCNs and 0A602, 0B602, 0D602, and 0E602 are eligible to the extent permitted under part 740 of the EAR.1 For additional filing requirements, refer to § 758.1(g)(4) of the EAR which includes two separate requirements under paragraphs (g)(4)(i) and (ii) of this section that are used to better identify exports of certain end item firearms under the EAR.
- C33 (NLR) – The following ECCNs are eligible if exported only to Canada: 0A602, 0B602, 0D602, and 0E602. Some of these “600 series” items were previously authorized under an International Traffic in Arms Regulations (ITAR) Canadian exemption (SCA).
- C35 (LVS) – The following ECCNs are eligible: 0A501, 0A502, 0A504, 0A505, 0B501, 0B505, 0A602, and 0B602 to the extent permitted under part 740 of the EAR and the respective ECCN entry.
- C41 (RPL), C42 (GOV), and C59 (STA) –“0x5zz” ECCNs and 0A602, 0B602, 0D602, and 0E602 are eligible to the extent permitted under part 740 of the EAR.
- C44 (TSU) – The following ECCNs are eligible: 0D501, 0D505, 0E501, 0E502, 0E504, 0E505, 0D602, and 0E602 to the extent permitted under part 740 of the EAR.
- C45 (BAG) – “0x5zz” ECCNs and 0A602, 0B602, 0D602, and 0E602 are eligible to the extent permitted under part 740 of the EAR. As noted above, exports of certain 0x5zz ECCNs are excluded from filling EEI in AES when authorized under BAG provided the export clearance requirements for firearms and related items are met under 758.11 of the EAR.
- C60 (DY6) – Reporting an ECCN is not required, but when reported, only the following ECCN is eligible: When C60 is used, the filer must report DY6 in the License Number field.
If the “0x5zz” and “600 series” ECCNs are reported under any other license type, AES will generate a fatal error (FATAL ERR 666-ECCN MUST BE FROM APPROVED LIST) back to the filer. Please note that under § 758.1 of the EAR, an AES filing is required for exports of items classified under “0x5zz” and “600 series” ECCNs, regardless of the value of the item or destination, except for exports authorized under License Exception BAG, as set forth in § 740.14 of the EAR, of items controlled under ECCNs 0A501.a or .b, shotguns with a barrel length less than 18 inches controlled under ECCN 0A502, or ammunition controlled under ECCN 0A505 except for .c.
Please review, once they are posted online, the FAQ’s to be provided by the Bureau of Industry and Security for more information on filing the new ECCNs in AES. The FAQ’s for this rule will soon be available at www.bis.doc.gov
Items subject to the EAR, including “600 series” ECCNs that are licensed by the State Department under the International Traffic in Arms Regulations (ITAR)
Under a delegation of authority, the State Department may license an item subject to the EAR on an ITAR license pursuant to new section 120.5(b) of the ITAR. If this occurs, the AES filer must report the ECCN (including “600 series” ECCNs) or the EAR99 designation in the ECCN field in AES, even if the license type is S05 (DSP-5). All other fields associated with license type S05 are required, such as registration number, significant military equipment indicator, DDTC eligible party certification indicator, USML category code, DDTC unit of measure and DDTC quantity.
A complete list of all of the AES License Type codes and reporting instructions for these types can be found at https://www.cbp.gov/trade/aes/aestir/appendices
For questions regarding these upcoming AES changes, please contact the Bureau of Industry and Security by email at ECR_AES@bis.doc.gov or at one of the phone numbers below.
Outreach and Educational Services Division (located in Washington, DC) (202) 482-4811
Office of Technology Evaluation (located in Washington, DC): (202) 482-4933
Western Regional Office (located in Irvine, CA) (949) 660–0144
Northern California branch (located in San Jose, CA) (408) 998-8806
1 See § 758.10 (Entry clearance requirements for temporary imports) of the EAR that specifies the temporary import entry clearance requirements for firearms “subject to the EAR” that are on the United States Munitions Import List (USMIL, 27 CFR 447.21), except for firearms “subject to the EAR” that are temporarily brought into the United States by nonimmigrant aliens under the provisions of Department of Justice regulations at 27 CFR part 478 (See § 740.14(e) of the EAR for information on the export of these firearms “subject to the EAR”). These firearms are controlled in ECCN 0A501.a or .b or shotguns with a barrel length less than 18 inches controlled in ECCN 0A502. Temporary imports of firearms described in § 758.10 must meet the entry clearance requirements specified in paragraph (b) of this section. Items that are temporarily exported under the EAR must have met the export clearance requirements specified in § 758.1 of the EAR.
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