GTW Export Control
FEATURE
In contrast, exporters of
fi rearms will require an export
licence for exports to all
countries. Exports of fi rearm
components will generally
require an export licence, too,
with exceptions for low value
shipments ($500 of less) of most
parts and a few other exceptions.
So, how is it that ammunition
will be exempted from licensing
for these 34 countries, but
fi rearms will not? Just as
the ITAR contain certain
limited exemptions from
licensing requirements, the
EAR contain what the EAR
refer to as “exceptions” to
licensing requirements. EAR
exceptions are diff erent from
ITAR exemptions so one of
the headaches associated with
transitioning from the ITAR to
the EAR will be learning how
EAR exceptions aff ect exports
that otherwise would require a
licence.
Th e aff ect that the Strategic
Trade Authorization (STA)
exception has on licensing
requirements for ammunition
and components demonstrates
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that it will often be worthwhile
to endure the headaches. Th e
STA exception is quite complex,
with many limitations and
conditions, but what it does
is carve out a list of countries
with respect to which the
otherwise applicable requirement
for a licence does not apply.
Th e countries listed above are
referred to in the EAR (along
with Canada and Argentina) as
“Country Group A-5.”
Exporters of ammunition
and ammunition components
who rely on the STA exception
to export product to these
destinations without licences are
required to comply with detailed
conditions with respect to which
there will be a one-time learning
curve, but it will be worth it. Th e
ability to export without a licence
is a big deal.
Licence exception STA can
be found in §740.20 of the
EAR. Th e most important
conditions are contained in
subsections §740.20 (c) and (d).
All applicable conditions and
limitations must be complied
with to use this licence exception.
Some readers may be
wondering why Canada is not on
the list. Canada and Argentina
actually are included in Country
Group A-5 but licence exception
STA cannot be used for exports
of ammunition and components
to those countries because
Canada and Argentina are
parties, as is the United States, to
a treaty among members of the
Organization of American States
that requires an export licence.
Th at treaty takes precedence over
exception STA.
DETERMINING WHETHER
AMMUNITION IS CONTROLLED
BY THE ITAR OR EAR MAY NOT
ALWAYS BE EASY
To take advantage of licence
exception STA and the other
benefi ts of the EAR exportcontrol
regime, exporters
will fi rst have to be sure the
ammunition they plan to export
has in fact migrated from the
ITAR to the EAR.
Th at may take some work.
One benefi t of today’s rules is
that classifying ammunition for
export control purposes is easy.
Virtually all ammunition up to
.50 calibre is controlled under
Category III (a) of the U.S.M.L.
and ammunition components are
in Category III (d).
Under Export Control
Reform, the Government has
endeavoured to distinguish
between ammunition that “has
little or no civil use or that is
inherently military,” on the one
hand, and ammunition that,
on the other hand, “does not
confer a military advantage
on the United States” because
it is widely available in the
international market to both
friendly and unfriendly countries.
Th e result is a new, long list
of characteristics that cause
ammunition to remain on the
ITAR and a second long list of
ammunition components that
remain on the ITAR. All other
ammunition and components
move by default to the EAR.
As will be the case for
manufacturers and exporters
of fi rearms, Export Control
Reform will require that those
who manufacture or export
ammunition or components
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