Export Rulings Requests from DDTC and BIS

Export Rulings Requests from DDTC and BIS October 2012

Why Get Export Rulings? • Certainty,Certainty,Certainty • (with limitations) • Best Avenue to Defend Your Export Practices • Can I Assume Dual Use Commerce Controls? • “Bleed Through Rule” for Components (DDTC) • Avoiding Costly Business Surprises • Avoid Unintended Results

Commodity Jurisdictions (CJs) • Directorate of Defense Trade Controls (DDTC) • Scope of US Military List Items (22 CFR 120) • Defense Articles • Defense Services • Equipment must be “specifically designed or modified for military operations.”22 CFR 120.3 • Note, without modifying regulation DDTC has adopted a “capable of performing” a defense service standard in a penalty letter for fluid dynamics software. • COTS : Beware Product Modifications for Defense Industry

Commodity Jurisdictions • Key questions for CJs • Why was this product originally developed, and for whom? • What was the product designed to do, and what can it actually do? • Has the product been changed since its original development and, again, why and for whom? • Is there a USML category that seems to capture it?

Submitting a CJ • Firms not required to be registered with DDTC prior to submitting CJ per 22 CFR 120.4(b). • Non Registered firms use Electronic Forms Submittal (EFS) • Download and use the most recent version of the form available under the EFS TAB. All prior versions will be rejected. Be advised to always use the current version on-line versus saving a copy to their desktop and re-using it. • Registered Firms use D-Trade. • Reference: http://pmddtc.state.gov/

Commodity Classification Request (CCATS) with BIS with SNAP-R • Certainty, Certainty, Certainty • (with limitations) • Refresher • Best Avenue to Defend Your Export Practices • Can I Assume Dual Use Commerce Controls? • “Bleed Through Rule” for Components (DDTC) • Avoiding Costly Business Surprises • Avoid Unintended Results

Commodity Classification Request (CCATS) with BIS with SNAP-R • Be as explicit as possible about the product • Advisory Only • The CCAT will be limited by accuracy your data application. • Provide your Own Self Classification Opinion • Be Complete with Facts and Arguments • If Appropriate , State Alternatives and Distinguish From Yours • Best Result is No Surprise.

Commodity Classification Request (CCATS) with BIS with SNAP-R • Attach documents to the CCAT request • Cover Letter with Your ECCN Analysis • Data sheets • Blue prints • Bill of Materials • Brochure • Assert Your ECCN

Example CCAT Application

Example CCAT (continued)

Strategy for Borderline Cases • CJ vs. CCAT • Doing Your Homework • Designed for Whom? • Developed from What Technology? • All Facts, Statements, Budgets, and Product Approval Forms • All Regulatory Changes During Development Cycle • Market Analysis • Which Export Analysis is First? Consequences? • Which Export Ruling is First? Consequences? • Real World Example • Homeland Security Products

References • DDTC • http://pmddtc.state.gov/index.html • http://pmddtc.state.gov/registration/faqs_reg.html • BIS • http://www.bis.doc.gov/ • http://beta-www.bis.doc.gov/index.php/licensing/simplified-network-application-process-redesign-snap-r/snap-r-faqs • Questions

Export Rulings Requests from DDTC and BIS