April 22, 2020
EAR CONTROLS OVER PARTS, COMPONENTS, ACCESSORIES & ATTACHMENTS
First and foremost, we at Reeves & Dola hope that all of our readers are staying healthy and are weathering this storm as best as they can. Though we have been socially distancing ourselves, we have not stopped digging into the rewrites of the U.S. Munitions List (USML) and the Commodity Control List (CCL) that became effective March 9, 2020. Specifically, we have spent some time digging into the treatment of "parts," "components," "accessories," and "attachments" on the CCL and thought we would share some reminders.
First, as many of you are likely aware, the terms "parts," "components," "accessories," and "attachments" are all defined in the Export Administration Regulations (EAR) in Part 772 as follows:
"Part"
is any single unassembled element of a "component," "accessory," or "attachment" which is not normally subject to disassembly without the destruction or the impairment of design use. Examples include threaded fasteners (e.g., screws, bolts, nuts, nut plates, studs, inserts), other fasteners (e.g., clips, rivets, pins), common hardware (e.g., washers, spacers, insulators, grommets, bushings), springs and wire.
"Component"
is an item that is useful only when used in conjunction with an "end item." "Components" are also commonly referred to as assemblies. For purposes of this definition an assembly and a "component" are the same. There are two types of "components": "major components" and "minor components." A "major component" includes any assembled element which forms a portion of an "end item" without which the "end item" is inoperable. A "minor component" includes any assembled element of a "major component." "Components" consist of "parts." References in the CCL to "components" include both "major components" and "minor components."
"Accessories"
are associated items for any "component," "end item," or "system," and which are not necessary for their operation, but which enhance their usefulness or effectiveness. For purposes of this definition, "accessories" and "attachments" are the same.
"Attachments"
are associated items for any "component," "end item," or "system," and which are not necessary for their operation, but which enhance their usefulness or effectiveness. For purposes of this definition, "attachments" and "accessories" are the same.
Because each Export Control Classification Number (ECCN) on the CCL specifically enumerates what it controls, it is critical to understand these definitions (including "specially designed") and apply them to the products you are classifying. It is also important to remember that you should classify at the highest level of assembly that is being exported. For example, if you are exporting a barrel with a flash suppressor attached, you would classify the barrel. Conversely, if you are exporting only a flash suppressor, you would classify just the flash suppressor for export. We will stick with flash suppressors to highlight the importance of the parts, components, accessories, and attachments definitions.
Under the old export control regime, a flash suppressor was classified as USML Category I(e) and was also considered Significant Military Equipment (SME). Now, after the rewrite, that flash suppressor has moved off the ITAR and is now subject to the EAR. ECCN 0A501 controls firearms and related commodities, so to determine the jurisdiction of a flash suppressor, one would start with a review of ECCN 0A501.
Those firearm parts, components, accessories and attachments that are controlled by ECCN 0A501 are enumerated in the following subparagraphs:
- 0A501.c - captures "parts" and "components" "specially designed" for firearms in 0A501 paragraphs .a or .b, but only such parts and components that are specifically enumerated in the control paragraph.
- 0A501.x - captures "parts" and "components" that are "specially designed" for firearms and not elsewhere listed on the CCL or USML.
- 0A501.y - captures "parts", "components", "accessories", and "attachments" "specially designed" for items in 0A501 that are specifically listed in the .y subparagraphs.
To determine which of these subparagraphs may apply, you must determine whether a flash suppressor is a "part," "component," "accessory," or "attachment" as defined in the EAR. As you can see by the control paragraphs, the only subparagraph of ECCN 0A501 that controls "accessories" or "attachments" is the ".y" paragraph. Stated differently, the only accessories or attachments controlled in ECCN 0A501 are the seven (7) at are specifically enumerated in ".y". Therefore, it is imperative you determine which definition most appropriately describes your item to know which control paragraph is applicable.
After a review of the definitions, a flash suppressor is best described as an "accessory" or "attachment." As noted, above, ".y" controls only those items that are specifically listed. Flash suppressors are not enumerated in ".y". Following the Order of Review, you would need to see if flash suppressors are captured in another ECCN. They are not. Therefore, flash suppressors are now classified as EAR99 items.
As shown by the analysis above, there can be risk in loosely calling your item a part or component as you may be unnecessarily over-controlling for export licensing purposes. While there is no difference in licensing requirements between 0A501.c and 0A501.x (a license or other authorization is required for all countries in the world), there is a big difference for the ".y" paragraph. The ".y" items only require a license for those countries controlled for AT (Anti-Terrorism) or UN (United Nations) reasons, which is a very limited number of countries.
This quick review illustrates the importance of EAR definitions and closely reading the control paragraphs. While most new ECCNs created as part of the Export Control Reform (ECR) process include a catch all for parts, components, accessories, and attachments, not all do. ECCN 0A501 is one example of this, but there are others, such as ECCNs 0A505 and 0A602. It may seem tedious, but take the time to carefully walk through the reclassification process. You may find some surprises too.
