GTW Export Control
FEATURE
review their product lists
carefully to determine whether
any of their products will remain
on the ITAR and, if so, their
proper classifi cation within the
revised USML Category III.
Items that are not covered by
the revised USML Category III
will fall into new ECCN 0A505,
except for some items that will
continue not to be controlled, as
discussed later.
Going forward, after
the eff ective date of ECR,
ammunition manufacturers and
exporters will want to be sure
that all new ammunition and
components they make or export
are added to the product matrix
and properly classifi ed. It will not
be possible to complete export
documents properly without
proper classifi cation, nor will
it be possible to use the STA
exception without knowing for
sure that the items in question
are in fact in ECCN 0A505
rather than USML Category III.
OTHER CONSEQUENCES OF ECR
FOR MANUFACTURERS AND
EXPORTERS OF AMMUNITION
AND COMPONENTS
Manufacturers and exporters of
ammunition and components
that move to the EAR will
enjoy, in addition to access to
license exception STA, certain
benefi ts of ECR. In other
words, (i) receipt of customer
purchase orders will not be a
precondition to applying for
export licences, (ii) other licence
supporting documents under
the ITAR will no longer be
needed (although exporters will
need to be in possession of the
customer’s import permit when
an import permit is required
by the destination country),
and (iii) blanket licences that
authorize the maximum, but
not the precise, quantity to
be exported will be permitted
for ammunition exports as for
fi rearms.
On the negative side, the
license exception for low-value
shipments of ammunition
components to countries not
in Country Group A-5 will
max out at $100 per shipment,
as opposed to the new $500
exception that will apply to
nearly all fi rearms components.
Th ere will be no exception
for complete ammunition (as
opposed to components), which
rules out the possibility of small
international retail sales of
ammunition.
Shotgun ammunition and
certain components, which
are already on the EAR, will
be classifi ed together with
ammunition for non-automatic
and semi-automatic fi rearms,
but will for the most part remain
unchanged.
We have noted one other
change that we have not had
time to fully analyse as of
the date of this piece. Under
the ITAR, “muzzle loading
(black powder) fi rearms” are
expressly excluded from USML
Category I and ammunition
for muzzle loading fi rearms is
therefore excluded from USML
Category III. Th e muzzle loader
exclusion under the new rules
is narrower. Note 1 to proposed
new ECCN for non-automatic
and semi-automatic fi rearms,
ECCN 0A501, affi rms that
muzzle loading black powder
fi rearms are excluded, “except
those designs based on centerfi re
weapons of a post 1937 design
(emphasis added)”. What that
means is that ammunition
“specially designed” for muzzle
loading fi rearms based on
centerfi re weapons of a post
1937 design will be subject to the
controls of the EAR in ECCN
0A505.
HOW CAN ORCHID ADVISORS
HELP?
Orchid Advisors, a leading
provider of regulatory
compliance solutions to the
fi rearms and ammunition
industry, is working to help the
industry learn how to use ECR
to do international business and
other aff ected activities more
easily and effi ciently than they
can today.
Orchid’s ITAR / EAR
Practice helps companies in
the fi rearms and ammunition
industry (i) sell fi rearms,
ammunition, components and
accessories to foreign customers,
(ii) build sustainable export
compliance programs, and (iii)
design, source and manufacture
fi rearms, components, tools and
accessories outside the United
States.
Look to Orchid Advisors to
help you take command of the
new ECR export environment in
the following ways:
· Formulation of EAR-driven
international sales and sourcing
strategies
· Technology solutions
for reducing the cost and
increasing the speed of export
license determinations, license
preparation and related activities
· Preparation of export licences
and provision of other “export
compliance department” services
on an outsourced basis
· Product and technology
re-classifi cation, compliance
program revisions, training
· Practical advice on making
near-term decisions under the
ITAR that will be aff ected in
2019 by the new rules
·Development of integrated
export and ATF compliance
solutions for transitioning to the
post-ITAR world.
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Orchid Advisors
www.orchidadvisors.com
+1 (855) 672-4430
/www.guntradeworld.com
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