Reference: Export Controls

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was very loosely described in the Export Administration Regulations (EAR) and this classification was often a matter of unpublished Departmental policies.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, 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
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

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 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 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 John Denson.

Commodity Classification -- updated 3/24/2006

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:

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/EFI Firing Systems	VMFS VMFSR VMST ADP-PX16-100 ADP-PX16-110 ADP-PX31-100	EAR99	G060058
EBW/EFI Firing Systems	ADP-PX31-110 PUR-0610-007 SEV-1375-250SA	EAR99	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	1C992D	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

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.

Commodity	Schedule B	NAFTA HS
Batteries, lithium	8506.50.0000	8506.50
Black Cat	2825.70.0000	2825.70
Boosters, bi-directional	3603.00.0000	3603.00
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	3603.00.0000	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	3602.00.0030	3602.00
Detonators, EBW	3603.00.0000	3603.00
Detonators, electric	3603.00.0000	3603.00
Detonators, non-electric	3603.00.0000	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	3603.00.0000	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	3603.00.0000	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	8479.89.9850	8479.89
Perforating gun carrier wire	8479.89.9850	8479.89
Perforating gun strips	8479.89.9850	8479.89
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	3604.90.0000	3604.90
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	3604.90.0000	3604.90
Wire, lead wire	8544.49.9000	8544.49

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:

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:

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.