For aerospace and defense companies the ITAR-centric world is about to change in mid-October. Uncomfortable with change no matter how well intentioned, many of these defense companies had hoped that the Export Control Reform Initiative – ECRI — wouldn’t start in their own backyard. But that wish was not fulfilled. For example, there was the migration of many ITAR US Munitions List (USML) Category VIII items to either the EAR Commerce Control List (CCL) or USML Category XIX. The formerly reserved USML Category XIX will cover military turbine engines and the EAR Commerce Control List (CCL) was broadened to include a new “600 Series”, including a new series 9X600 for aircraft and 7X600 for avionics.

To better identify what is ITAR-controlled, Category VIII will be more clearly defined and more limited: those items not identified in USML category VIII will be moved on October 16 to the Department of Commerce, Commerce Control List (CCL).

As a Senior Advisor to the MK Trade Compliance Group (MK TCG), my colleagues and I have the expertise to help your enterprise through this confusing and daunting transition period by creating an ECRl­ compliant process for your enterprise, to keep your export/import operations running smoothly. To this goal we would execute an in-depth audit both to ITAR and EAR compliance and a technical assessment to determine which of your exported products would remain subject to ITAR and which would transition to the EAR. MK TCG consultants can work with you to get all of your products classified correctly, determine what items may need to be re-categorized under the EAR, and what, if any actions need to be taken regarding items transitioning to the EAR.

The State and Commerce Departments and other relevant government agencies have established a two­-year transition period, but there should be no time lost in training your workforce and reviewing your export control and compliance procedures and manuals.

In the EAR world, administered by the Bureau of Industry and Security, you are expected to classify your product on the CCL and determine the extent of your licensing requirements. Once you learn the EAR terminology and process, you will find that it is user-friendlier than the ITAR, but we have the expertise to assist you along the way.

We also have an extensive working relationship with the government agencies involved in the regulation of aircraft and aircraft-related products, including the Federal Aviation Administration, other national airworthiness agencies, and the International Civil Aviation Organization as well.

Frank Sutschek
Senior Advisor MKTCG