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Export Compliance: Ask The Experts



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We have imported one of our components that is ITAR under 123.4(a)(1) exemption. It has been determined that the parts are not repairable and our customer has asked us to scrap in house.  Can we scrap in house since we imported under the exemption?  If so, what would be the process for informing CBP that we are not returning the parts to our customer?  We also are not replacing the parts.

The ITAR does not say what you should do when a temporary import under the exemption turns into a permanent import. Arguably, you do not have to do anything according to the ITAR.  If you wish, you may contact Customs at the port of import and ask if they would like you to do anything.

I was told that if our company has a MAA in place with a company in the UK to manufacture defense articles, to bring them into the US on a permanent basis (import), we would need to apply for a permit with the ATF.  I have perused the ITAR and could not find anything about this. Would you please clarify?

The ITAR has nothing to do with BATF requirements.  If the items are on the BATF US Munitions Import List they generally require a BATF import authorization.

The final rule for Cat XII has finalized, but to definitely be sure that our products will no longer be governed under the ITAR, we submitted a CJ to State.  According to the Order of Review process, our product should be governed by ECCN 0A606.x.  We have a tradeshow we plan to attend in the UK in 2 weeks and a demo in Belgium the following week.  Can we proceed with export under ECCN 0A606.x or should we use DSP licenses?

Obtaining an official ruling is not required.  If you make an accurate determination as to an item's USML or CCL classification, you may proceed based on that.  There is no way for me to know the classification of the item based on the information your provided.  If you feel comfortable with your jurisdiction classification, you should feel comfortable proceeding on that basis.