Obama Administration Notifies Congress of Proposed Transfer of Certain Defense Articles from USML to CCL and President Issues Export Control Reform Administration Executive Order

As part of the ongoing Export Control Reform process that could eventually move many parts and components associated with defense articles from the U.S. Munitions List and the International Traffic in Arms Regulations (ITAR) to the jurisdiction of the Bureau of Industry and Security (BIS) and the Export Administration Regulations (EAR), President Obama today issued an Executive Order (see below) that delegates the various responsibilities associated with the reformed export control system to the appropriate Cabinet Department.

The Executive Order makes the following changes to the existing U.S. export control system:

1. Consolidates brokering responsibilities with the State Department's Directorate of Defense Trade Controls (DDTC).
2. Eliminates possible “double licensing” requirements by allowing  the State Department to authorize the accompanying items that may have moved to the Commerce Control List (CCL) and prevent any potential double-licensing requirement. 
3. Modifies the Congressional notification process by requiring BIS to establish procedures for notifying Congress of approved export licenses for a certain subset of items that are moved or that may move from the USML to the CCL.
4. Other Administrative Updates: The Executive Order delegates to the Attorney General the functions previously assigned in 2003 to the Secretary of the Treasury, reflecting the move of ATF to the Department of Justice. ATF will remain responsible for permanent imports of most defense articles.

This Executive Order was timed to coincide with the notifications by the State Department to the U.S. Congress required by section 38(f)(1) of the Arms Export Control Act (22 USC 2778(f)(1)) regarding the defense articles that will be transferred from the USML to the CCL as part of the Export Control Reform process.

The initial notifications to Congress for USML Categories VIII (aircraft) and XIX (gas turbine engines) were submitted yesterday to the Speaker of the House, Chairman and Ranking Members of the Senate Foreign Relations Committee and House Foreign Affairs Committee. The House and Senate now have 30 days to review the proposed transfer. Absent a Congressional resolution of disapproval, the Obama Administration will have the authority to transfer the designated items from the USML to the CCL, which will take place after BIS and DDTC issue the final rules modifying the USML and CCL, as well as the other required regulations, including the transition rules. 

Further information on the Export Control Reform process can be found at www.export.gov/ecr.

Export Control Reform Administration EO (3.8.2013) by