In August 2009, President Obama launched a comprehensive, inter-agency review to the US export control system. This exercise represents one of the most significant reforms to the US export control regime in the past 40 years.
The International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR) are two of the regulatory pillars of the United States export control regime that will be impacted as part of these reforms. The International Traffic in Arms Regulations, administered by the US Department of State (DoS), controls the export and temporary import of defence-related articles and services as well as transfers of technology and technical data, all of which are listed on the US Munitions List (USML). The related Export Administration Regulations, administered by the US Department of Commerce (DoC), controls the export and re-export of primarily commercial items, including dual-use goods and technology as identified on the Commerce Control List (CCL), as well as a limited number of defence-related articles also identified on the CCL.
Given the integration of the Canadian and US industrial bases, and the unique position of Canada under both the International Traffic in Arms Regulations of the Department of State and the Export Administration Regulations of the Department of Commerce, these reforms have important implications for Canada.
While there are multiple deliverables associated with the reform exercise, it is not focused on removing items from control, but reassessing how controls are administered. This goal will result in the movement of less sensitive items from control under the Department of State’s International Traffic in Arms Regulations to the Department of Commerce’s Export Administration Regulations, which allows for more flexible treatment. Items deemed to be the most strategically sensitive will continue to be controlled under the Department of State’s International Traffic in Arms Regulations. The first transfer of items will be on October 15, 2013, when certain aircraft and gas turbine engine items will move from the jurisdiction of the Department of State to the Department of Commerce.
Representatives of the Government of Canada are working closely with US colleagues to ensure that reform activities continue to respect Canada’s unique position within the US export control regime and that these reforms do not impede the defence trade between our two countries.
Canadians dealing with goods and technology whose administration of control will be transferred from the Department of State to the Department of Commerce should familiarize themselves with the Export Administration Regulations, the procedures of the Department of Commerce’s Bureau of Industry and Security and any resulting requirements they may have as a result of dealing with items subject to control under the Export Administration Regulations.
This article is available in its entirety on the EICS website at: http://www.international.gc.ca/controls-controles/about-a_propos/expor/ecr-rsce.aspx?lang=eng.