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Overview

Commodity Classification
updated 5/21/09

CCATS
updated 8/28/12

Commercial Explosive Devices
updated 4/13/09

Request an Export License
updated 10/10/11

Identification of Export License Parties
added 10/11/11

Schedule B and NAFTA HS numbers
updated 01/07/14

Export Guidance for 
Owen Oil Tools 
International Sales Representatives
updated 10/11/11

Skip the discussion and go to the Guide
updated 12/22/05

COUNTRY GUIDANCE UPDATES

BIS Proposal Regarding Transfer of USML Items to CCL and Proposed Change to ECCN xY018 (including ECCN 1C018) items
added
8/3/2011

BIS removes 1A007 License Requirement Note
added 12/23/2009

BIS issues Advisory
Opinion regarding
1A007 commodities

added 7/23/2009

EBW Detonator re-classification
updated 4/14/2009

EBW Firing Set re-classification
added 5/21/2009

EXPORT FAQs

1.  Do I need an Export License?
updated 12/3/2012

2.  What is the dual-use status of Owen Oil Tools commodities?
updated 9/16/08

        

Overview
Control of US exports to other countries is enforced by several agencies of the US Government.  The Bureau of Industry & Security (Dept. of Commerce) (BIS) regulates exports of commercial commodities.  The Office of Defense Trade Controls (Dept. of State) (ODTC) regulates exports of military commodities.  The Office of Foreign Assets Control (Department of Treasury) (OFAC) administers embargoes, sanctions, boycotts, etc.

Product exported by Owen Oil Tools generally falls under the BIS and may require export licenses prior shipment.  OCS assists OOT in obtaining these licenses when required.

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Commercial Explosive Devices -- updated 4/13/2009

Export control of commercial explosive devices has been a difficult issue for years -- dating back to the mid-1980s.  Some devices were subject to very relaxed control, while others, often components of the same system, were subject to very stringent control.  Additionally, the export classification of these devices was very loosely described in the Export Administration Regulations (EAR) and this classification was often a matter of unpublished Departmental policies.  Often, these devices were subject to interdepartmental jurisdiction conflicts, which further frustrated the exporter trying to conduct his business overseas.  All of this put the US exporter of commercial explosive devices at a competitive disadvantage with his foreign competitor.

Thanks to the hard work and cooperation between the BIS, Department of State, DOD's Defense Threat Reduction Agency, industry (represented primarily by the Institute of Makers of Explosives (IME) and its member companies), and others this problem has been resolved.  On September 1, 1999, after months of negotiation and fine-tuning, the BIS issued an interim rule, that clarifies the export classification of commercial explosive devices and the export controls applicable to them.  The new rule effects commodities that have formerly been classed in export classifications ECCN 1C018, 1C992, and 1C998, it does not effect other classifications, such as ECCN 3A229, 1A007 (formerly 3A232), and EAR99.  

This interim rule, known as Docket No. 990811214–9214–01, Exports and Reexports of Commercial Charges and Devices Containing Energetic Materials (64 FR 47666-47669) establishes two export classifications for commercial explosives devices, one for devices containing limited quantities of explosives (1C992) and one for larger devices (1C018).  Those devices that don't fit into either category are under the jurisdiction of the Department of State and must be licensed under that Department's rules.  Although effective on the date of publication (9/1/1999), this is an interim rule, and the BIS is accepting comments on the rule until October 18, 1999.  The rule will be finalized sometime after the close of the comment period.  Successful acceptance of this interim rule is very important to industry and interested parties are encouraged to send their written comments in support of the rule to:

Hillary Hess
Regulatory Policy Division
Bureau of Export Administration
Department of Commerce
P.O. Box 273
Washington, DC  20044

The following is OCS's analysis of the interim rule:

Docket No: 990811214–9214–01
Publication: September 1, 1999
64 FR 47666-47669
See the Federal Register notice by clicking here
Status: Interim rule
Effective date: September 1, 1999
Comment deadline: October 18, 1999
Export classifications: The interim rule revises ECCNs 1C018 and 1C992 providing clear limits as to what products fall within each classification.  Additionally, ECCN 1C998 has been eliminated and the products formerly controlled under 1C998 are now controlled under 1C992.  See Table 1 for an analysis of this new export classification scheme.

As shown in Table 1, the breakdown between 1C018 and 1C992 is primarily based upon a set of mass ranges of "controlled materials" contained in the subject devices.  For the purposes of this interim rule, the following guidelines in determining mass apply:

1.  "Controlled materials"  means materials controlled under ECCN 1C011, 1C111, 1C239 and USML Category V (22 CFR 121.1, Category V).  Click here to review a list of "controlled materials".

2.  When computing mass of the commodity, the mass of certain materials is excluded.  Click here for a list of "excluded materials".

 

TABLE 1
Summary of Export Classifications for Commercial Explosive Devices
(all weights shown are of "controlled materials" unless specified otherwise)

Commodity

Department of Commerce

1C018
Export license required for most destinations

Department of Commerce

1C992
Ship NLR to most destinations

Department of State

USML V
Export license required for all destinations

Perforators

90.1 – 2000 grams
</=
90° angle
</= 4.5” diameter

</= 10 grams (regardless of liner angle and diameter)  

-- OR --

10.1 – 90 grams
</= 90° angle
</= 4.5” diameter

> 2000.1 grams
> 90° angle
> 4.5” diameter(11.43cm)

Detonating cord and shock tubes

300.1 – 470 grains/ft

</= 300 grains/ft

> 470 grains/ft

Cartridges, power device (Power charges)

700.1 – 1000 grams of controlled materials in the formulation

</= 700 grams of controlled materials in the formulation

> 1000 grams of controlled materials in the formulation

Detonators

10.1 – 100 grams

</= 10 grams

> 100 grams

Igniters

10.1 – 100 grams

</= 10 grams

> 100 grams

Oil well cartridges

15.1 - 100 grams

</= 15 grams

> 100 grams

Boosters (cast or pressed), including bi-directional boosters

1000 – 5000 grams

</= 1000 grams

> 5000 grams

Commercial prefabricated slurries and emulsions

> 10,000 grams and
</= 35% by weight of USML controlled materials

</= 10,000 grams and
</= 35% by weight of USML controlled materials

> 10,000 grams and 
> 35% by weight of USML controlled materials

Cutters & severing tools

3500.1 – 10,000 grams

</= 3500 grams

> 10,000 grams

Commercial pyrotechnic devices

3000.1 – 5,000 grams

</= 3000 grams

> 5,000 grams

Other commercial devices

1000.1 – 5000 grams

</= 1000 grams

> 5000 grams


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Export Guidance of Owen Oil Tools International Sales Representatives -- updated 10/11/2011  

Skip all this discussion and go directly to the export guide -- updated 10/11/2011

5/17/2002 -- Several questions arise frequently regarding selling into foreign markets such as:

"Can my customer re-export to another country?"
"What if my customer ships to a country to which we don't have a license?"
"How much do I need to know?"
"How do we protect ourselves?"

These are all excellent questions and the following will answer the 4 questions listed above.  Additionally, you should review the Export Guidance page (updated 8/29/2011) frequently to ensure that sales you anticipate are legal and properly licensed (if required).  You can visit the Export Guidance page (updated 8/29/2011) by clicking here.  If you have additional questions that should be considered here, please send them to Jeana Mallard at OCS.  

"Can my customer re-export to another country?"  Re-exports are subject to the same rules as exports.  If a commodity can be shipped into a country "X" NLR (no license required), then it can be also be re-exported to country "X" from country "A" NLR.  On the other hand, if an export license is required for exports to country "X", then an export license is also required for re-exports to country "X" from country "A".  The following examples should help to understand:

  • Perforators (ECCN 1C992) may be exported from the US to Germany NLR.  Additionally, perforators that have been exported to the UK from the US may be re-exported from the UK to Germany NLR.  If NLR is available for a country re-exports to that country are also allowed using NLR.
  • EBW detonators (ECCN 3A232) can be exported from the US to India, but an export license is required.  No export license is required for exports of EBWs to Germany; however, if OOT was to sell EBWs to a German customer who was going to re-export to India, an export license would be required for the entire transaction.
  • Perforators (ECCN 1C992) may be exported from the US to Egypt for use in Egypt under NLR.  Exports from the US to Egypt for re-export to Syria would require and export license since exports of perforators to Syria require an export license.
  • Exports of detonators (ECCN 1C992) to Libya are prohibited.  Although detonators can go to Kuwait under NLR, if those detonators are to be re-exported to Libya, the entire export is prohibited.

"What if my customer ships to a country to which we don't have a license?"  If a license is required and a customer re-exports without a proper license in effect, that transaction is illegal and it will be reported to the Bureau of Industry and Security (BIS).  A warning to this effect appears on all export documentation for every export shipment that OOT processes.  You must make it your business to know how your customer intends to use OOT products you sell, to ensure that OOT products are never used in illegal activities, in terrorist attacks, or are diverted to countries upon which export controls or sanctions have been put in place.

"Do freight forwarders have to be identified on an export license? (added 10/11/2011)"   Yes.  For more, please click here.

"How much do I need to know?"  You need to know:

  • Who your customer is.
  • What your customer intends to do with OOT products you sell them.
  • That your customer is not a person or company to which we cannot export (see the Export Guidance page for assistance).
  • That your customer will pay for what you sell them.

"How do we protect ourselves?"  Follow the guidance provided here, on the Export Guidance page, via other OCS communications, and by Core Laboratories.  If you are unsure, don't assume, ask.  If you have any questions, please contact David Boston or Mark Elvig.

Click here to review the Export Guidance page.  

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Commodity Classification -- updated 5/21/2009

BIS classifies specialty explosives under several Export Commodity Control Numbers (ECCN).  These ECCNs are used to determine export licensing requirements for the commodity to be exported.  In general, BIS classifies specialty explosives in the following categories:

ECCN
Click an ECCN number to see specific controls
Description Examples
1C018 Commercial charges and devices containing energetic materials on the International Munitions List

Bi-directional boosters, cutters, detonators (electric and non-electric), detonating cord, chemical cutters, and perforators not meeting 1C992 qualifications

As of 9/21/99, the only OOT products that are 1C018 are
CEM-2000-012 and CEM-2000-060.

1C992 Commercial charges and devices containing energetic materials, n.e.s.

Bi-directional boosters, cutters, detonators (electric and non-electric), detonating cord, chemical cutters, and perforators not meeting 1C018 qualifications

1C998 Detonation cords and equipment and explosive material (n.e.s.)

DISCONTINUED -- these devices are now 1C992

1A007 (formerly 3A229)

This entry was revised on 5/21/2009
Explosive detonator firing sets designed to drive explosive detonators specified by 1A007.b

EFI controllers
EBW or EFI firing sets (firesets)

1A007 (formerly 3A232)

This entry was revised on 4/13/2009
Equipment and devices, specially designed to initiate charges and devices containing energetic materials, by electrical means

Exploding bridge (EB)
Exploding bridge wire (EBW)
Slapper detonators
Exploding foil initiators (EFI)

3E001

This entry added to table on 3/24/2006
Technology for development and production of ECCNs 3A229 and 3A232

Drawings, technical data, and/or specifications related to development or production of ECCNs 3A229 or 3A232
Manufacturing instructions

3E201

This entry added to table on 3/24/2006
Technology for use of ECCNs 3A229 and 3A232

Drawings, technical data, and/or specifications related to the use of ECCNs 3A229 or 3A232
User instructions

EAR99 Items subject to the EAR that are not elsewhere controlled This category catches those commodities that do not fall into any other BIS category.  Included in this ECCN are:

Stim™ products, propellant sticks, certain lithium batteries, and hardware
Probe Technology products that do not contain an emitter source (emitter sources  & tools containing emitter sources require an export license)

 

CCATS -- updated 8/28/2012

To support the ECCN assignments to commodities exported by Owen Oil Tools, we have obtained the following Commodity Classifications (CCATS) from the Bureau of Industry and Security.  Please check back again, as additional applications for other commodities are being submitted and the resulting CCATS will be posted here.

Commodity description

Model/Part Numbers included ECCN Link to CCATS
EBW Detonators
(updated 5/21/2009)
VMEBW 1A007 (b.2) G071920
(replaces
G070500)
EBW/EFI Firing Systems
(updated 8/28/2012)
VMFS
VMFSR
VMST
ADP-PX16-100
ADP-PX16-110
ADP-PX31-100
1A007 (a)
EAR99
G072905
replaces
G060058
EBW/EFI Firing Systems
(updated 8/28/2012)
ADP-PX31-110
PUR-0610-007
SEV-1375-250SA
1A007 (a)
EAR99
G072905
replaces
G060059
EPA Software N/A Public Domain G047752
Lithium Battery, Size C PMX165 EAR99 G028242
Oil Well Cartridges &
Pellets
VMSTC
INCLUDING, BUT NOT LIMITED TO: 
CRT & SEV CARTRIDGTES &
PELLETS
1C992L G061467
Oil Well Casing Cutters VMCC 1C992J G061456
Oil Well Detonators & 
Bi-di boosters

(added 4/29/2008)
VMD 1C992E G063374
Oil Well Igniters
(added 4/29/2008)
VMD 1C992F G063374
Oil Well Detonating Cord
(added 4/24/2008)
VMDC 1C992C G063379
Oil Well Perforators VMP
INCLUDING, BUT NOT LIMITED TO: 
BWC, DEP, FFG, FWC, HSC, LNK, 
RTG, SDP, SHO, SLK, STB, STK, 
STP, SWG, AND TAG PERFORATORS
1C992A G060610
Oil Well Power Charges
(added 4/24/2008)
VMPC 1C992D G063401
Oil Well Tubing Cutters VMTC 1C992J G061453

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Schedule B and NAFTA HS numbers -- updated 1/7/2014   

The following table provides the Schedule B and NAFTA HS numbers for commodies exported by Owen Oil Tools.  Inquiries regarding commodities not listed and/or other inquiries must be directed to Owen Compliance Services, Inc.  

Special Note about Perforating Gun Classification (5/1/2013) -- US Customs and Border Protection has revoked previous classifications of perforating guns and has ruled that they are properly classified under the entry 7326.90.85.  A previous notification was posted here on 11/26/2012 that referred to the advance notice of this classification change.  The formal notification has now been issued (dated 2/27/2013) and is effective for merchandise entered or withdrawn from warehouse for consumption on or after April 29, 2013.

  • A copy of the advance notification from the May 16, 2012 Customs Bulletin may be retrieved by clicking here.
  • A copy of the final notification from the February 27, 2013 Customs Bulletin may be retrieved by clicking here.

You may download an XLS-formatted version of this table by clicking here -- updated 1/7/2014.

Commodity Schedule B NAFTA HS
Batteries, lithium 8506.50.0000 8506.50
Black Cat 2825.70.0000 2825.70
Boosters, bi-directional -- updated 07/29/2010 3602.00.0030 3602.00
Brochures, printed 4901.99.0092 4901.99
Bull plugs 8479.89.9850 8479.89
Calipers 9017.30.4000 9017.30
Cartridges 3602.00.0030 3602.00
Cartridges, firing pin -- updated 2/13/2013 3603.00.6000 3603.00
Charges, shaped 3602.00.0030 3602.00
Circuit boards 8534.00.0020 8534.00
Cotters and cotter pins 7318.24.0000 7318.24
Coveralls, mens 6103.42.0000 6103.42
Cutter bodies, inert 8479.89.9850 8479.89
Cutter, detonating cord 8203.20.6060 8203.20
Cutters, casing 3602.00.0030 3602.00
Cutters, SplitShot™  3602.00.0030 3602.00
Cutters, tubing 3602.00.0030 3602.00
Detonating cord -- updated 5/1/2013 3602.00.0030 3602.00
Detonators, EBW -- updated 2/13/2013 3603.00.9000 3603.00
Detonators, electric -- updated 2/13/2013 3603.00.9000 3603.00
Detonators, non-electric -- updated 2/13/2013 3603.00.6000 3603.00
Disks, video 8523.29.8000 8523.29
Downhole patch equipment 8479.89.9850 8479.89
Firing heads 8479.89.9850 8479.89
Fuses, delay 3603.00.0000 3603.00
Fuzes, detonating -- updated 2/13/2013 3603.00.9000 3603.00
Galvanometer, blasting 9030.89.0100 9030.89
Greases 2710.19.3750 2710.19
Hardware & accessories, down hole 8479.89.9850 8479.89
Igniters -- updated 2/13/2013 3603.00.9000 3603.00
Lead wire 8544.49.9000 8544.49
Linear shaped charges 3602.00.0030 3602.00
Logo patches, embroidered 5810.91.0000 5810.91
Multimeter, blasting 9030.31.0000 9030.31
O-rings 4016.99.6000 4016.99
Packers 8479.89.9850 8479.89
Packing materials, fiberboard 4804.52.0040 4804.52
Patch, casing 8479.89.9850 8479.89
Pellets 3602.00.0030 3602.00
Perforating gun bodies -- updated 2/13/2013 7326.90.8588 7326.90
Perforating gun carrier wire -- updated 2/13/2013 7326.90.8588 7326.90
Perforating gun strips -- updated 2/13/2013 7326.90.8588 7326.90
Perforators 3602.00.0030 3602.00
Plugs 8479.89.9850 8479.89
Power charges 3604.90.0000 3604.90
Primers, detonating 3603.00.0000 3603.00
Primers, percussion 3603.00.0000 3603.00
Retainer, detonating cord 7318.29.0000 7318.29
Rivets 7318.23.0000 7318.23
Screws 7318.15.9000 7318.15
Seizing cord, nylon 5607.50.0000 5607.50
Setting tools 8479.89.9850 8479.89
Severing tool bodies, inert 8479.89.9850 8479.89
Severing tools (loaded) 3602.00.0030 3602.00
Shaped charges 3602.00.0030 3602.00
StimGun™ Products -- updated 2/13/2013 2829.90.4000 2829.90
Tandem subs 8479.89.9850 8479.89
Tape, silicone 3919.90.5060 3919.90
Tape, teflon 3919.90.5040 3919.90
Tools, hand-held 8203.20.6060 8203.20
Trade booth 9406.00.4000 9406.00
Washers, lock 7318.21.0000 7318.21
Washers, other 7318.22.0000 7318.22
Washers, spring 7318.21.0000 7318.21
WellStim™ Products -- updated 2/13/2013 2829.90.4000 2829.90
Wire, lead wire 8544.49.9000 8544.49

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COUNTRY GUIDANCE

Burma (Myanmar)

12/3/12 -- The previous company policy banning exports to Burma (Myanmar) has been partially cancelled and may be authorized by the Corelab law department on a case-by-case basis.  OOT may now export commodities to Burma (Myanmar), so long as all of the following requirements are met:

  1. The commodities are exported in compliance with the controls listed in the BIS Commerce Control list.  See the FAQ page, "Do I need an export license?" for more on this.
  2. Written Corelab law department confirmation authorizing the export is delivered to OCS.

The information presented on the FAQ page, "Do I need an export license?" has been updated to reflect this new company policy regarding exports to Burma (Myanmar).

China

7/11/2007 -- On June 19, 2007, the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce announced amendments to the Export Administration Regulations to "revise and clarify U.S. licensing requirements and licensing policy on exports and re-exports of items to the People's Republic of China (PRC)".  This final rule:

Establishes controls on exports of certain items to PRC for military end-use

Includes a revision to application review policy for items controlled for reasons of national security and destined to PRC

Revises controls for items to be exported to PRC that are controlled for reasons of chemical and biological weapons proliferation, nuclear nonproliferation, and missile technology

Revises circumstances in which a PRC End-user Statement (EUS) is required from the PRC Ministry of Commerce (MOFCOM)

Establishes a new authorization for validated end-users to which specified items may be exported/re-exported without a license.

These new rules have the following impact on export Owen Oil Tools products to PRC:

EAR99 -- no change.  Exports will still go to non-military users for non-military end-uses under symbol NLR.

1C992 -- no change.  Exports will still go to non-military users for non-military end-uses under symbol NLR.

3A229 (EBW hardware) and 3A232 (EBW explosives) and related technology (3E001 and 3E201) -- no change in licensing policy; a license is still required.  Documentation requirements have changed as follows:

  • Orders over $50,000 in value -- a PRC EUS issued by MOFCOM is required

  • Orders up to $50,000 in value -- a BIS-711 Statement by Ultimate Consignee and Purchaser will be substituted for the PRC EUS

  • A nuclear non-proliferation end-use statement (NNES) is still required

2-year supply licenses will no longer be sought by OOT for exports of EBW-related commodities to PRC.  Export licenses will be obtained on a case-by-case basis after receipt of purchase order and completed Export License Request form.

Consult the Federal Register notice for more details.

See also the compliance update to Owen Oil Tools LP.

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Côte d'Ivoire (Ivory Coast) (EU Regulation)

7/1/09 -- The following notice dated 6/9/2009 has been replaced by updated information.  Please see the next section for the update.

6/9/2009 -- On January 31, 2005, the EU published Council Regulation (EC) No 174/2005 implementing the UN Security Council Resolution (UNSCR) 1572 (2004) to ban technical and financial assistance related to military activities and on equipment that might be used for internal repression in Côte d'Ivoire.  Article 3 of EC No 174/2005 prohibits distribution of equipment listed in Annex 1 of EC No 174/2005 from EU Nations to any person, entity or body in, or for use in, Côte d'Ivoire.  This ban includes equipment and devices designed to initiate explosions by electrical or not electrical means, linear cutting explosive charges, certain explosives and related substances.  Explosives for air-bag inflators, electric-surge arresters, and fire sprinkler actuators are excluded from the ban.

The phrase "... equipment and devices designed to initiate explosions ..." includes (companies in EU countries cannot export these items to Côte d'Ivoire):

  • firing sets
  • detonators
  • igniters
  • boosters
  • detonating cord
  • specially designed components of any of the items listed above

For a copy of EC No 174/2005, click here.

Presently, the USA does exercise as stringent requirements as the EU.  IT does; however, maintain sanctions against individuals who threaten peace and publicly incite violence and hatred in Côte d'Ivoire or who supply armaments and military training to Côte d’Ivoire.  For more on this, review the Office of Foreign Assets Control (OFAC) overview of sanctions or their web page on the topic.

US Export licensing requirements to Côte d'Ivoire for commercial products are administered by the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce.  Currently, for explosive products, the licensing requirements to Côte d'Ivoire are as follows:

  • 1C992 items -- NLR (no license required)
  • 1A007 items -- IVL (export license) required
  • EAR99 items -- NLR

If you are unsure as to what the ECCNs 1C992, 1A007, and EAR99 include, please click here.

More information:

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EU Sanctions Regarding Internal Repression (EU Regulation)

6/9/2009 -- The EU has published Council Regulation banning technical and financial assistance related to military activities and on equipment that might be used for internal repression in Burma (Myanmar), Côte d'Ivoire, Indonesia, Uzbekistan, and Zimbabwe.   

These regulations prohibit distribution of certain equipment from EU Nations to any person, entity or body in, or for use in, Burma, Côte d'Ivoire, Indonesia, Uzbekistan, or Zimbabwe.  Also prohibited are activities such as providing techical assistance, financing or promoting such activities.  These bans include equipment and devices designed to initiate explosions by electrical or not electrical means, linear cutting explosive charges, certain explosives and related substances.  Explosives for air-bag inflators, electric-surge arresters, and fire sprinkler actuators are excluded from the ban.

The phrase "... equipment and devices designed to initiate explosions ..." includes (companies in EU countries cannot export these items to Burma, Côte d'Ivoire, Indonesia, Uzbekistan, or Zimbabwe):

  • firing sets
  • detonators
  • igniters
  • boosters
  • detonating cord
  • specially designed components of any of the items listed above

Copies of the relevant EC regulations are available by clicking the links below:

More information:

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Libya

7/17/12 -- The previous company policy banning exports to Libya has been cancelled.  OOT may now export commodities to Libya, so long as all of the following requirements are met:

  1. The commodities are exported in compliance with the controls listed in the BIS Commerce Control list.  See the FAQ page, "Do I need an export license?" for more on this.
  2. A written certification is delivered to OCS that the OOT customer (entity or individual) in Libya is not owned or controlled in any way by the Libyan Investment Authority (LIA) or Qadhafi family members.

The information presented on the FAQ page, "Do I need an export license?" has been updated to reflect this new company policy regarding exports to Libya.

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Nigeria (SONCAP)

11/16/2009 -- According to the Standards Organisation of Nigeria (SON), Owen Oil Tools products are not subject to the SON Certification Assessment Program (SONCAP) certification.  These items are imported into Nigeria pursuant to import licenses obtained by the importer.  Nigerian importers are encouraged to contact SON to obtain a regulatory confirmation that the oil and gas exploration equipment, tools, supplies, and spares that they import into Nigeria are not subject to SONCAP.

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Russia

3/28/14 -- Since March 1, 2014, BIS has placed a hold on the issuance of licenses that would authorize the export or reexport of items to Russia. BIS will continue this practice until further notice.

Affect on items exported by Owen Oil Tools:

  • 1A007 (EBW, EFI, etc. detonators and controllers):  The BIS hold applies to these items.
  • 1C992 (commercial explosives such as perforators, detonators (those not controlled under 1A007), detcord, cutters, power charges, cartridges, etc.):  The BIS hold does not apply to these items
  • EAR99 (hardware, Stim(tm) products, etc.):  The BIS hold does not apply to these items

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South Sudan

12/3/12 -- The previous company policy banning exports to South Sudan has been partially cancelled and may be authorized by the Corelab law department on a case-by-case basis.  OOT may now export commodities to South Sudan, so long as all of the following requirements are met:

  1. The commodities are exported in compliance with the controls listed in the BIS Commerce Control list.  See the FAQ page, "Do I need an export license?" for more on this.
  2. Written Corelab law department confirmation authorizing the export is delivered to OCS.

The information presented on the FAQ page, "Do I need an export license?" has been updated to reflect this new company policy regarding exports to South Sudan.

 

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UPDATES

BIS Proposal Regarding Transfer of USML Items to CCL and Proposed Change to ECCN xY018 (including ECCN 1C018) items -- added 8/3/2011

BIS published a proposed rule on 7/15/2011 regarding a proposed merging of the USML and CCL and it's effect upon ECCN 1C018 (among others) items.  Owen Oil Tools does not export affected ECCNs.  The following is a summary of the proposed rule.  

Agency

Bureau of Industry and Security, Department of Commerce

Regulations affected

Export Administration Regulations

Type of notice

Proposed rule

Effective date:

TBA

Comment deadline:

9/13/2011

FR Reference:

76 FR No. 136, 7/15/11, pp. 41958 – 41985 (click here for copy)

Summary:

Proposes a new regulatory construct for the transfer of items on the USML (State Department) that, in accordance with section 38(f) of the Arms Export Control Act (AECA) (22 U.S.C. 2778(f)(1)), the President determines no longer warrant control under the AECA and that would be controlled under the Export Administration Regulations (BIS, Commerce Department).

Proposes movement of ECCN xY018 items, including ECCN 1C018, to new “600 series” ECCNs so that all Wassenaar Arrangement Munitions List and formerly USML items would be together in one series, which would create a de facto Commerce Munitions List inside the larger CCL, consistent with the overall structure of the CCL.

 

BIS Removes License Requirement Note for ECCN 1A007 -- added 12/23/2009

On December 11, 2009, BIS published a final rule (74 FR 66000 - 66027) that removed the License Requirement Note discussed in the update of 7/22/2009.  The effect of this action is:

1.  The Advisory Opinion discussed below is now invalid.

2.  Export licenses are again required for exports of 1A007 commodities (EBW detonators, EBW firing sets, etc.) to those countries that are controlled for NS2, NP1, and/or AT1 purposes.  See Table 1 on the "Is an Export License Required?" page for a list of countries for which export licenses are now required. 

The effective date of this final rule is 12/11/2009.

More Information:

BIS issues Advisory Opinion clarifying the License Requirement Note of entry ECCN 1A007 -- added 7/22/2009

The new Commerce Control List entry ECCN 1A007 (see below) contains a License Requirement Note (LRN) that states:

1A007 does not apply to equipment when accompanying its operator. 

On July 1, 2009, the Bureau of Industry and Security (BIS), of the U.S. Department of Commerce, issued an advisory opinion (AO) clarifying its intent regarding the meaning of this LRN.  In the AO, BIS explains what it means by the term "operator" in the LRN.  BIS states that the operator is:

  • Any agent of the exporter, including contract carrier,
  • An employee of the export license applicant (the exporter),
  • An employee of the ultimate consignee, and/or
  • An employee of the end-user.

In a subsequent telephone conference between BIS and OCS, BIS stated that by "contract carrier", they mean any carrier or carriers hired by the exporter to transport the 1A007 commodities to their final destination.  In this context, BIS agreed that companies such as Bob's Hot Shot Service, American Airlines, FedEx, UPS, and Lufthansa were all within the meaning of the term "contract carrier" as used in the AO.

BIS also stated that the term "equipment" in the LRN means both detonators and firing sets controlled under ECCN 1A007.

BIS also stated that the intent of the AO, when used with the LRN of 1A007, was to apply only AT-1 controls on exports of 1A007 commodities, much as is the case with 1C992 commodities.  The NP and/or NS controls of 1A007 would only come into play if the conditions of the LRN and the AO cannot be met.  Like 1C992 commodities, if the LRN and AO conditions are met, then exports to countries that are not controlled for AT-1 purposes, are made under ECCN 1A007 and license symbol "NLR" (no license required).

So what does this mean?  If an export of 1A007 commodities is exported by a carrier hired by the exporter and is picked up at its destination by an employee of the exporter, the ultimate consignee, or the end-user, and if the export is going to a country that is not controlled for AT-1 purposes, then no export license is required and the symbol "NLR" is used for the export.

What are AT-1, NP, and NS you referred to?  They are levels of control over exports, where AT refers to anti-terrorism, NP to nuclear nonproliferation, and NS refers to national security.  For more, see 15 CFR 738.2(d)(2)(i)(A).

More Information:

EBW Detonator Reclassification -- updated 4/14/2009

On October 14, 2008, BIS issued a final rule that changed the export classification of EBW detonators from 3A232 to 1A007.  In making this change, BIS retained the NP1 and AT1 controls previously in effect for these devices, but expanded controls to include NS2 (National Security).  This change expands the list of countries for which and IVL is required for exports of EBW detonators by adding the following countries:  Argentina, Belarus, Brazil, Cyprus, Kazakhstan, Russia, South Africa, and Ukraine.

(4/14/2009)  The Export Administration Regulations, in 15 CFR 750.7(c)(1)(viii) authorize continued use of existing export licenses, without revision, despite a change in ECCN as a result of a change to the Commerce Control List.  A statement regarding this provision is available by clicking here.

Consult the Federal Register notice for more details.  For the text of the new 1A007 CCL entry, click here.

EBW-related Firing Set Reclassification -- added 5/21/2009

We have been advised by BIS that our previous CCATS that assigned firing sets to EAR99 are no longer valid and that these commodities are now controlled under 1A007.  This brings export licensing requirements back to this product line and expands the countries for which licenses are required as described above.  For more on this, please see the notice distributed to Owen Oil Tools on May 21, 2009 (click here).  For effect on existing licenses, please see the notice distributed on April 14, 2009 (click here).

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