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Focus on Regulation

Export Control Reform Initiative: New ECCN Series

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) published a final rule on April 13, 2012 announcing a new series of Export Control Classification Numbers (ECCN 0Y521 series) on the Commerce Control List (CCL) of the Export Administration Regulations intended to capture items that warrant control on the CCL but are not yet identified in an existing ECCN.  No action is legally required at this time until the U.S. Government assigns technologies to these new categories.

The rule is a highly anticipated part of the Export Control Reform Initiative to set forth a framework for aligning the CCL with the United States Munitions List (USML).  According to BIS, the purpose of the final rule is to transparently identify and classify emerging technologies that have significant security and foreign policy implications for the United States.  BIS further notes that the new temporary holding classification is the equivalent of USML Category XXI (Miscellaneous Articles), but with a limitation that while an item is temporarily classified under ECCN 0Y521, the U.S. Government will work to adopt a control through the relevant multilateral regime(s); to determine an appropriate longer-term control over the item; or determine that the item does not warrant control on the CCL.