Government Contracts EAR Rules Address Wassenaar Arrangement Changes, Venezuela
Friday, June 28, 2019

EAR Rules Address Wassenaar Arrangement Changes, Venezuela

By Government Contracts Editorial Staff

The Bureau of Industry and Security has issued two final rules amending the Export Administration Regulations. One final rule (¶72,750.453) revises the Commerce Control List (EAR Supplement No. 1 to EAR Part 744) to implement certain changes made to the Wassenaar Arrangement List of Dual-Use Goods and Technologies maintained and agreed to by governments participating in the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-Use Goods and Technologies at the December 2018 Wassenaar Arrangement Plenary meeting. This rule adds to the CCL discrete microwave transistors (a major component of wideband semiconductors), continuity of operation software, post-quantum cryptography, underwater transducers designed to operate as hydrophones, and air-launch platforms. These are five recently developed or developing technologies that are essential to the national security of the U.S. The rule adds these technologies to the CCL at Export Control Classification Numbers 3A001, 3D005, 5A002, 6A001 and 9A004. This rule went into effect May 23, 2019.

Country Groups. Another final rule (¶72,750.454) amends EAR Supplement No. 1 to EAR Part 738 and EAR Supplement No. 1 to EAR Part 740 to remove Venezuela from Country Group B, which affords favorable treatment for certain exports of National Security-controlled items, and move it to Country Group D:1, which lists countries of national security concern. BIS issued this rule to reflect current national security concerns related to Venezuela, such as the introduction of foreign military personnel and equipment into Venezuela, and to better protect U.S. national security. The changes also better align the Country Group designations for Venezuela with other EAR national security-related provisions that already apply to Venezuela, such as the military end-use and end-user controls that apply to certain items for export, reexport, or transfer (in-country) and provisions that are specific to countries subject to U.S. arms embargoes. Also, the rule adds Venezuela to Country Groups D:2-4, which list countries of nuclear, chemical and biological weapons, and missile technology concern, respectively. This rule went into effect May 24, 2019.

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