Where Industry and Security Intersect
What's New | Sitemap | Search
The purpose of this guidance is to provide a greater understanding of multilaterally-based and unilaterally-based Reasons for Control. This guidance is based on information found in different Parts of the EAR, such as Part 738 (Commerce Control List Overview and the Country Chart) and Part 742 (Control Policy - CCL Based Controls), as well as the Export Administration Act (EAA) of 1979, as amended.
It is intended to allow exporters and reexporters to have a better understanding of what are the multilaterally-based and unilaterally-based reasons for control on the CCL. Exporters and reexporters should be aware that these two tables: (1) Multilaterally-based Reasons for Control on the CCL and (2) Unilaterally-based Reasons for Control on the CCL are only intended to provide general guidance about these Reasons for Control, but there are exceptions as noted in this web guidance.
Section 738.2 (Commerce Control List (CCL) Structure) under paragraph (d) (Entries - (1) Composition of an entry) provides a list of all Reasons for Control on the Commerce Control List. This list of Reasons for Control set forth in §738.2(d) has been divided into two tables: (1) a table for multilaterally-based Reasons for Control on the CCL and (2) a table for unilaterally-based Reasons for Control on the CCL. These two tables also feature the basis of the CCL control and the applicable EAR references. As noted above, this information is readily available in other formats in the EAR, but it is hoped that breaking the Reasons for Control into these two tables in this guidance will help to improve the public’s understanding of the basis of these CCL-based controls under the EAR.
| Multilaterally-based Reasons for Control on the CCL | ||
|---|---|---|
| Reason for Control | Basis of the control and multilateral regime cooperation | Part 742 reference or other applicable EAR references |
| National Security (NS) | Section 5 (National Security Controls) of the Export Administration Act (EAA) of 1979, as amended. The Wassenaar Arrangement (Wassenaar) www.wassenaar.org/ Wassenaar members are listed in Supplement No. 1 to part 743 of the EAR. Through their national policies, Wassenaar members seek to ensure that transfers of arms and dual-use goods and technologies do not contribute to the development or enhancement of military capabilities that undermine international or regional security and stability. All measures undertaken with respect to Wassenaar are in accordance with national legislation and policies of member countries, and are implemented on the basis of national discretion. Items with a Reason for Control of NS-1 or NS-2 are controlled as a part of U.S. Government implementation of its commitments under Wassenaar. Note: In some cases on the CCL, items previously controlled for NS-1 or NS-2 may continue to be controlled on a unilateral basis for AT reasons. | |
| NS 1 | §742.4(a) | |
| NS 2 | §742.4(a) | |
| Missile Technology (MT) | Section 6, "Foreign Policy Controls", Paragraph (l), (Missile Technology), of the EAA, as amended. Missile Technology Control Regime (MTCR) www.mtcr.info/english/index.html Missile Technology Control Regime (MTCR) members are listed in Country Group A:2 (see Supplement No. 1 to Part 740 of the EAR). Controls on items identified in paragraph (a) of §742.5 are consistent with the MTCR list and are included in the MTCR Annex. |
|
| MT 1 | §742.5(a) | |
| Chemical & Biological Weapons (CB) | Section 6, "Foreign Policy Controls", Paragraph 6 (m) (Chemical and Biological Weapons) of the EAA, as amended. Australia Group (AG) www.australiagroup.net/en/index.html The Australia Group, a multilateral body that works to halt the spread of chemical and biological weapons, has developed common control lists of items specifically related to chemical and biological weapons. Australia Group members are listed in Country Group A:3 (see Supplement No. 1 to part 740 of the EAR). Controls on items listed in paragraph (a) of §742.2 are consistent with the Australia Group. | |
| CB 1 | §742.2 (a)(1) | |
| CB 2 | §742.2 (a)(2) | |
| CB 3 | §742.2 (a)(3) | |
| Nuclear Nonproliferation (NP) | Section 309(c) of the Nuclear Non-Proliferation Act of 1978 requires BIS to identify items subject to the EAR that could be of significance for nuclear explosive purposes if used for activities other than those authorized at the time of export or reexport. ECCNs on the CCL that include the symbols "NP 1" or "NP 2" in the "Country Chart" column of the "License Requirements" section identify items that could be of significance for nuclear explosive purposes and are therefore subject to licensing requirements under Part 742 and under section 309(c) of the Nuclear Non-Proliferation Act of 1978. These items are referred to as "The Nuclear Referral List." Nuclear Suppliers Group (NSG) www.nsg-online.org Most items on the Nuclear Referral List that require a license under NP Column No. 1 on the Country Chart (see Supplement No. 1 to Part 738 of the EAR) are contained in the Annex to the "Guidelines for Transfers of Nuclear-Related Dual-Use Equipment, Material, and Related Technology" (the Annex), as published by the International Atomic Energy Agency in INFCIRC/254/Revision 1/Part 2. The adherents to INFCIRC/254/Revision 1/Part 2, which includes the Nuclear Suppliers Guidelines, have agreed to establish export licensing procedures for the transfer of items identified in the Annex. | |
| NP-1 Note: NP 2 is included under the second table. | §742.3 (a)(1) | |
| Chemical Weapons Convention (CW) | States that are parties to the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on Their Destruction, also known as the Chemical Weapons Convention (CWC or Convention), undertake never to develop, produce, acquire, stockpile, transfer, or use chemical weapons. As a State Party to the Convention, the United States is subjecting certain toxic chemicals and their precursors listed in Schedules within the Convention to trade restrictions. Organization for the Prohibition of Chemical Weapons www.opcw.org | |
| CW Schedule 1 chemicals Note: Commerce Country Chart not designed to determine license requirements for this Reason for Control | §742.18(a)(1) and Part 745 | |
| CW Schedule 2 chemicals Note: Commerce Chart not designed to determine license requirements for this Reason for Control | §742.18(a)(2) and Part 745 | |
| CW Schedule 3 chemicals Note: Commerce Chart not designed to determine license requirements for this Reason for Control | §742.18(a)(2) and Part 745 | |
| Firearms Convention (FC) | Section 6, "Foreign Policy Controls", Paragraph 6 (a) (Authority) of the EAA, as amended. BIS maintains a licensing system for the export of shotguns and related items to all OAS member countries. This action is based on the Organization of American States (OAS) Model Regulations for the Control of the International Movement of Firearms, their Parts and Components and Munitions (OAS Model Regulations) which were developed to assist OAS member countries to implement the Inter-American Convention Against the Illicit Manufacturing of and Trafficking in Firearms, Ammunition, Explosives, and Other Related Materials (Firearms Convention) Note: Status of Convention as of April 13, 1999 had not entered into force. Organization of American States (OAS) www.oas.org/main/english | |
| FC 1 | §742.17(a) | |
| United Nations Embargo (UN) | Section 6, "Foreign Policy Controls", Paragraph 6 (a) (Authority) of the EAA, as amended. Resolutions of the United Nations Security Council and the United Nations Participation Act (22 U.S.C. § 287c) www.un.org/english/ | |
| UN | §§746.3, 746.4, 746.8 | |
| Unilaterally-based Reasons for Control on the CCL | ||
|---|---|---|
| Reason for Control | Basis of the unilateral control | Part 742 reference and other applicable EAR references |
| Nuclear Nonproliferation (NP) | Section 309(c) of the Nuclear Non-Proliferation Act of 1978 requires BIS to identify items subject to the EAR that could be of significance for nuclear explosive purposes if used for activities other than those authorized at the time of export or reexport. ECCNs on the CCL that include the symbols "NP" or "NP 2" in the "Country Chart" column of the "License Requirements" section identify items that could be of significance for nuclear explosive purposes and are therefore subject to licensing requirements under Part 742 and under section 309(c) of the Nuclear Non-Proliferation Act of 1978. These items are referred to as "The Nuclear Referral List."
Items that are listed as requiring a license under NP Column No. 2 on the Country Chart (see Supplement No. 1 to Part 738 of the EAR) are not included in the Annex to the "Guidelines for Transfers of Nuclear-Related Dual-Use Equipment, Material, and Related Technology" (the Annex), as published by the International Atomic Energy Agency in INFCIRC/254/Revision 1/Part 2 and these controls are not based on any multilateral agreement with other countries. | |
| NP 2 Note: NP 1 is included under the first table | §742.3(a)(2) | |
| Crime Control (CC) | Section 6, "Foreign Policy Controls", Paragraphs 6(a) (Authority) and 6(n) (Crime Control Instruments) of the EAA, as amended. U.S. controls. Although the United States seeks cooperation from like-minded countries in maintaining controls on crime control and detection items, at this time these controls are not based on any multilateral agreement with other countries. Note: In support of U.S. foreign policy to promote the observance of human rights throughout the world, a license is required to export any commodity controlled by ECCN 0A983 to all destinations including Canada, as described in §742.11. Commerce Country Chart not designed to determine license requirements for this CC Reason for Control under ECCN 0A983. | |
| CC 1 | §742.7(a)(1) | |
| CC 2 | §742.7(a)(2) | |
| CC 3 | §742.7(a)(3) | |
| Anti-Terrorism (AT) | Section 6, "Foreign Policy Controls", Paragraphs 6(a) (Authority) or 6(j) (Countries Supporting International Terrorism) of the EAA, as amended. U.S. controls. Although the United States seeks cooperation from like-minded countries in maintaining anti-terrorism controls, at this time these controls are not based on any multilateral agreement with other countries. |
|
| AT 1 | -Supplement No. 1 to Part 736 General Order No. 2 -§§742.8(a) (Iran), 742.9(a) (Syria), 742.10(a) (Sudan), 742.19(a) (North Korea), Supplement No. 2 to Part 742 |
|
| AT 2 | -§§742.8(a), 742.10(a), 742.19(a), Supplement No. 2 to Part 742 | |
| Encryption Items (EI) | Section 6, "Foreign Policy Controls", Paragraph 6 (a), (Authority) of the EAA, as amended. EI control were added to the EAR pursuant to E.O. 13026 of 1996, when jurisdiction over dual use encryption items was transferred from the ITAR to the EAR. EI controls are currently the same as NS controls, maintained cooperatively with other member countries of the Wassenaar Arrangement. The three ECCNs that include an EI control -- ECCN 5A002, 5D002 and 5E002 also have an NS-1 Reason for Control. See the first table of this web guidance for a discussion of NS-1. |
|
| EI Note: Commerce Country Chart not designed to determine license requirements for this Reason for Control | §742.15(a) | |
| Regional Stability (RS) | Section 6, "Foreign Policy Controls", Paragraph 6 (a), (Authority) of the EAA, as amended. U.S. controls. Although the United States seeks cooperation from like-minded countries in maintaining regional stability controls, at this time these controls are not based on any multilateral agreement with other countries. |
|
| RS 1 | §742.6(a)(1) | |
| RS 2 | §742.6(a)(2) | |
| Short Supply (SS) | Section 7 (Short Supply Controls), Paragraph 7(i) (Unprocessed Red Cedar) of the EAA. Energy Policy and Conservation Act (42 U.S.C. § 6212);Mineral Leasing Act of 1920, as amended (30 U.S.C. §§ 185(s) & (u)); Outer Continental Shelf Lands Act Amendments of 1978 (43 U.S.C. § 1354); Naval Petroleum Reserves Production Act (10 U.S.C. § 7430(e)). Export Administration Amendments Act of 1985 (46 U.S.C. app. § 466c) (Export of Horses). | |
| SS Note: Commerce Country Chart not used to determine license requirements for this Reason for Control | Part 754 | |
| Significant Items (SI) | Section 6, "Foreign Policy Controls", Paragraph 6 (a) (Authority) of the EAA, as amended. Pursuant to section 6 of the Export Administration Act of 1979, as amended, foreign policy controls apply to technology required for the development, production or overhaul of commercial aircraft engines controlled by ECCN 9E003.a.1. through a.12, .f, and related controls. These controls supplement the national security controls that apply to these items. |
|
| SI Note: Commerce Country Chart not designed to determine license requirements for this Reason for Control | §742.14 | |
| Surreptitious Listening (SL) | Section 6, "Foreign Policy Controls", Paragraph 6 (a) (Authority) of the EAA, as amended. In support of U.S. foreign policy to prohibit the export of items that may be used for the surreptitious interception of wire, oral, or electronic communications, a license is required for all destinations, including Canada, for ECCNs having an "SL" under the "Reason for Control" paragraph. These licensing requirements do not supersede the requirements contained in the Omnibus Crime Control and Safe Streets Act of 1968, as amended (18 U.S.C. Section 2512). U.S. controls. Section 742.13 controls on items classified under ECCNs 5A980, 5D980, and 5E980 are maintained by the United States Government for foreign policy purposes. |
|
| SL Note: Commerce Country Chart not designed to determine license requirements for this Reason for Control | §742.13 (Communications intercepting devices) | |