BIS rule clarifies and tightens STA exemption for coating technologies
The US Bureau of Industry and Security, BIS has published a rule in which it proposes to amend the Export Administration Regulations (‘EAR’) to ‘clarify and expand restrictions on the availability of License Exception Strategic Trade Authorization (‘License Exception STA or STA’) for the export, reexport and transfer (in-country) of certain items controlled under the EAR.’
It says: ‘Specifically, BIS proposes to clarify the “Special Conditions for STA” paragraph in certain Category 9 Export Control Classification Numbers (ECCNs) on the Commerce Control List to refer exporters to the limitations set forth in the EAR. Also, continuing its efforts to improve export controls and refine License Exception STA, BIS proposes to further restrict the availability of License Exception STA for certain technology controlled under ECCNs 2E003.f and 1E001. This rule also proposes related conforming amendments in License Exception STA and in affected ECCNs.’
It explains that ECCN 2E003.f ‘controls technology for the application of inorganic overlay coatings or inorganic surface modification coatings to non-electronic substrates by certain coating processes. The coating processes specified in this ECCN are critical to the performance of gas turbine engine hot section parts, but are also used for other manufacturing processes, such as optics.’
‘Recognizing that the scope of 2E003.f coating technology includes technology with sensitive industrial applications, this proposed rule would expand restrictions on the use of License Exception STA for ECCN 2E003.f technology, when the technology is used for the application of inorganic overlay coatings on gas turbine engine combustors, or turbine blades, vanes or “tip shrouds” by adding a new restriction in paragraph (b)(2)(ix) of § 740.20,’ the rule says.
