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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was very loosely described in the Export Administration Regulations (EAR) and this classification was often a matter of unpublished Departmental policies.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 The following is OCS's analysis of the interim rule:
TABLE 1
Export Guidance of Owen Oil Tools International Sales Representatives Skip all this discussion and go directly to the export guide 5/17/2002 -- Several questions arise frequently regarding selling into foreign markets such as: "Can my customer re-export to another country?" These are all excellent questions and the following will answer the 4 questions listed above. Additionally, you should review the Export Guidance page (updated 12/22/2005) frequently to ensure that sales you anticipate are legal and properly licensed (if required). You can visit the Export Guidance page by clicking here. If you have additional questions that should be considered here, please sent them to David Boston 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:
"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. "How much do I need to know?" You need to know:
"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. Commodity
Classification --
updated 5/21/2009
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.
Schedule B and NAFTA HS numbers -- updated 02/17/2010 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. You may download an XLS-formatted version of this table by clicking here -- updated 02/17/2010.
COUNTRY GUIDANCE 10/19/2007 -- As a result of expanded sanctions imposed by President Bush today, Burma, also known as Myanmar, has been added to the list of countries that Owen Oil Tools will not export to as a matter of company policy. Already on this list are Cuba, Iran, North Korea, Sudan, and Syria.
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:
These new rules have the following impact on export Owen Oil Tools products to PRC:
Consult the Federal Register notice for more details. See also the compliance update to Owen Oil Tools LP. 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):
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:
If you are unsure as to what the ECCNs 1C992, 1A007, and EAR99 include, please click here. More information:
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):
Copies of the relevant EC regulations are available by clicking the links below: More information:
12/4/2006 -- On August 31, 2006, the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce announced amendments to the Export Administration Regulations regarding the recission of Libya as a state sponsor of terrorism. This action "significantly reduces the level of U.S. Government controls over commercial exports to Libya, ..." and has the following impact on export Owen Oil Tools products to Libya:
Consult the Federal Register notice for more details. The information presented on the FAQ page, "Do I need an export license?" has been updated to reflect the new Libya export licensing policy of the U.S. Government. 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. UPDATES 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:
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:
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).
ATF | CE Certification | Classification
| Exemptions | Export Controls |
HAZLIST | HAZCOM |
Org Chart | UN |
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