DDTC Commodity Jurisdiction Submissions

 

When it comes to importing or exporting controlled goods, it is the inherited responsibility of the U.S. Importer/Exporter to ensure that the proper controls and license authorizations from the correct U.S. regulatory bodies have been applied to their shipments, or civil/criminal penalties may be imposed.

Department of State’s Directorate of Defense Trade Controls (“DDTC”) jurisdiction vs. Bureau of Industry and Security’s (“BIS”) jurisdiction:
DDTC gets its authority to control “Defense Articles” that are being (1) permanently export, (2) temporarily exported, or (3) temporarily imported from the U.S. Arms Export Control Act. “Defense Articles” are items and technical data which are designated on DDTC’s U.S. Munitions List (“USML”). All items and technical data found within this list are subject to DDTC’s International Traffic in Arms Regulations (“ITAR”). Conversely, there are many goods and technology akin to Defense Articles that are not subject to the ITAR but that do fall under the purview of BIS’s Export Administration Regulations (“EAR”). These goods are often referred to as “Dual-Use Goods”. The EAR has a separate control list for Dual-Use Goods, “Commerce Control List” (“CCL”). Though BIS gets its authority to regulate from many different statutes, the CCL gets most of its structure after the international Wassenaar Agreement’s “Dual-Use Goods” list.

Though not overlapping, the fact remains that these two control lists cover items similar to one another. In some cases, goods have even been transferred from one control list to another. An example of this is that in March of 2020 there were Defense Articles under USML Categories I – III (certain firearms and related articles) transferred over to the EAR’s CCL. Given the nature of these two lists there is an elevated risk for confusion and subsequent missteps, but despite how understandable a mistake may be this does not excuse a U.S. Importer/Exporter from their responsibility to get this order of business right. As relief, DDTC aids U.S. companies with determining what jurisdiction their goods fall under via Commodity Jurisdiction requests.

DTGruelle is experienced in DDTC Commodity Jurisdiction (“CJ”) request submissions and can assist our clients in their CJ submission to DDTC. DTGruelle also offers well-informed guidance and support in:

  • The appropriate strategies and procedures that make for a well-executed CJ request.

  • Drafting comprehensive CJ request packets.

  • Self-determination of good(s) to determine whether they are subject to the ITAR or the EAR.

  • Regulatory interpretations of the ITAR and EAR.