U.S. final rule, removal of reporting requirements for certain encryption items

U.S. final rule

The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce today published in the Federal Register a final rule that revises the Commerce Control List (CCL), as well as corresponding parts of the Export Administration Regulations (EAR), to implement changes to the “Wassenaar Arrangement” list of dual-use goods, technology, and munitions.

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The CCL is part of the EAR, and identifies certain items subject to the jurisdiction of the Commerce Department. Today’s final rule [PDF 691 KB] (25 pages) implements changes that were decided upon by governments participating in the Wassenaar Arrangement in December 2019 plenary meeting. The Wassenaar Arrangement advocates implementation of effective export controls on strategic items with the objective of improving regional and international security and stability.

Effective today, March 29, 2021, the final rule:

  • Harmonizes the CCL with the decisions reached at the 2019 plenary meeting by revising Export Control Classification Numbers (ECCNs) controlled for national security reasons in each category of the CCL
  • Makes associated changes to the EAR, as well as corrections
  • Makes changes to various provisions the CCL in the EAR, including provisions on license exception encryption commodities, software, and technology (ENC)

The changes, including the removal of reporting requirements for certain encryption items, are designed to reduce the regulatory burden for exporters while still fulfilling U.S. national security and foreign policy objectives.


For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich
Partner and Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094
E: labad@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Amie Ahanchian
Principal
T: 202-533-3247
E: aahanchian@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

Gisele Belotto
Managing Director
T: 305-913-2779
E: gbelotto@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

Jessica Libby
Managing Director
T: 612-305-5533
E: jlibby@kpmg.com

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