Industry News

Draft Export Control Reform Bill Nears Finalization
August 3, 2011

On July 25, 2011, White House officials announced that the Obama Administration is in the process of finalizing draft legislation for the final phase of the export control reform process. The third and final phase of export control reform is expected to include the creation of a single export licensing agency, a merger of the two export control lists, and the consolidation of export enforcement units. All three of these potential reforms require passage in Congress before they can take effect.

While legislation for phase three is being formulated, phase two of the export reform process is currently underway. Phase two includes moving thousands of items from the U.S. Munitions List (USML) to the Commerce Control List (CCL). A July 15, 2011, Federal Register notice proposed a new regulatory construct for the transfer of certain items from the USML to the CCL. Phase two has yet to be completed, as such a transfer requires congressional notification procedures. The Obama Administration is currently in the process of consulting with Congress about the transfer.

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