BIS Proposes to Remove Special Comprehensive License Provisions

October 1, 2014

In a Notice published in the Federal Register on September 30, the Bureau of Industry and Security (BIS) proposed additional changes to the Export Administration Regulations (EAR), consistent with the ongoing initiative to streamline regulations and reduce unnecessary regulatory burdens on the public. In this proposal, BIS seeks to amend the EAR by removing the Special Comprehensive License (SCL) authorization.

According to the Notice, the SCL was created to make licensing more efficient and practical by consolidating authorizations for different activities (e.g., bulk exports and reexports of items as well as certain other activities) and extending periods that had been authorized under the several special licenses: Project, Distribution, Service Supply, Service Facilities, Aircraft and Vessel Repair Station Procedure, and Special Chemical Licenses. With the implementation of the SCL, those special licenses were discontinued. Although SCLs offer advantages to exporters, BIS has issued less than twelve SCLs.

As export reform continues, BIS has implemented new mechanisms to facilitate the authorized export of controlled goods, technology, and services from the United States. BIS believes that those new mechanisms, including a longer license validity period; the option to export, reexport, or transfer (in-country) to and among approved end-users on a license, under certain conditions; and expanded license exception for temporary imports, exports, reexports, and transfers, offer a simpler and less burdensome means of obtaining the required authorization to export. 

To further “simplify, clarify and make regulations more user-friendly,” BIS proposes amending the EAR to remove the SCL authorization.  Comments are due by October 30, 2014 and may be submitted through the Federal eRulemaking Portal (under identification number BIS – 2014 – 0021) or email to publiccomments@bis.doc.gov (reference RIN 0694-AG13 in the subject line.  The complete proposal is available at here.