Controls on Exports of Military Electronics to Be Reformed
The U.S. government is scheduled to publish proposed rules tomorrow that would substantially ease the export control restrictions on electronics used in military applications. Under the current International Traffic in Arms Regulations ("ITAR"), numerous types of electronics are subject to onerous export restrictions because of their relevance to the military – even if the products were originally intended to be commercial items. This is because the scope of restricted electronics is extremely broad and includes "[e]lectronic equipment … specifically designed, modified or configured for military application" and components, parts, accessories, etc. that are "specifically designed or modified for use with [that] equipment."
This broad scope has forced commercial electronics manufacturers to invest substantial resources in ITAR compliance. The proposed rules would help greatly by transitioning many types of electronics from ITAR jurisdiction to control under the Export Administration Regulations ("EAR"). The EAR impose fewer export restrictions while also providing more license exceptions and easier licensing procedures.
The proposed rules would benefit very minor electronics the most. These would include products like certain couplings, connectors, fans, headsets and transformers that are intended for a particular military application. Such products typically cannot be exported without a government license, but, under the proposed rules, they could be exported to almost any country without a license. Other general use electronics that are intended for a military application would also benefit because they would become subject to the EAR. A few types of specialized electronics would benefit as well. They include certain radar systems, C3 radios, navigation and identification equipment, developmental electronics designed for the military, military computers and certain analog-to-digital converters.
Electronics companies that supply military applications should become familiar with the proposed rules soon so that they can understand how their compliance obligations might change.