BIS Proposes New Restrictions, Clarifications for License Exception STA

The Bureau of Industry and Security is proposing to clarify and expand restrictions on using License Exception Strategic Trade Authorization (see 2109130013), which it hopes will reduce exporter “confusion” and better control certain sensitive technologies, BIS said Oct. 21.

The rule, if finalized, will clarify certain “special conditions” for using the license exception in several Category 9 Export Control Classification Numbers on the Commerce Control List. It will also restrict the use of the exception for certain controlled coating technologies and certain technologies used to produce “hot section gas turbine parts” and “advanced military composite structures.” The rule also proposes several “conforming amendments” and technical corrections throughout STA and the affected ECCNs. Comments on the proposed changes are due Dec. 6.

Part of the effort could clarify various conditions for using License Exception STA, “which potentially confuses exporters,” BIS said. The agency hopes to revise the special conditions for using STA for certain Category 9 items, which include aerospace and propulsion technologies. The changes will revise text -- but won’t change license requirements or restrictions -- “to reduce the possibility of confusion” among exporters of technologies listed under ​​ECCNs 9D001, 9D002, 9D004, 9E001, 9E002 and 9E003.

BIS is also proposing to exclude certain items from eligibility under STA, including technologies controlled under ECCN 2E003.f used “for the application of inorganic overlay coatings or inorganic surface modification coatings to non-electronic substrates by certain coating processes.” The agency said coating technologies controlled under that ECCN have “sensitive industrial applications” and shouldn’t be eligible for STA when they are used to apply inorganic overlay coatings on gas turbine engine combustors.

BIS would also exclude certain technology in ECCN 1E001 that can be used to develop and produce hot section gas turbine parts and components and advanced military composite structures. The change would exclude STA eligibility to all destinations for technology described in ECCN 1E001 used to develop or produce equipment and materials specified by ECCNs 1A002, 1C001, 1C007.c, 1C008.a.1, 1C009.b, and 1C010.b, -.c or -.d.