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	<title>Export Rules &#187; QRS-11</title>
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		<title>Your See Through Rule Blues</title>
		<link>http://www.exportrules.com/uncategorized/see-through-rule-blues.html</link>
		<comments>http://www.exportrules.com/uncategorized/see-through-rule-blues.html#comments</comments>
		<pubDate>Thu, 05 Jul 2007 22:08:29 +0000</pubDate>
		<dc:creator>keeton</dc:creator>
				<category><![CDATA[China]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[QRS-11]]></category>
		<category><![CDATA[See Through Rule]]></category>
		<category><![CDATA[Uncategorized]]></category>

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		<description><![CDATA[Q: What is all the fuss about this See-Through Rule?Â  A: Letâ€™s pretend you are Export Compliance SuperPerson with x-ray vision that can see through, say, an aircraft engine. Your uncanny sight can distinguish USML (United States Munitions List) Â classified parts from commercial parts. Â Letâ€™s say you see a USML nut and bolt in there, [...]]]></description>
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<path o:extrusionok="f" gradientshapeok="t" o:connecttype="rect"></path><lock v:ext="edit" aspectratio="t"></lock><span style="font-family: 'Trebuchet MS'">Q: What is all the fuss about this See-Through Rule?</span><span style="font-family: 'Trebuchet MS'">Â </span> </span><span style="font-family: 'Trebuchet MS'"></span><span style="font-family: 'Trebuchet MS'">A: Letâ€™s pretend you are Export Compliance SuperPerson with x-ray vision that can see through, say, an aircraft engine. Your uncanny sight can distinguish USML (United States Munitions List) <span>Â </span>classified parts from commercial parts. Â Letâ€™s say you see a USML nut and bolt in there, but all else is commercial.</span><span style="font-family: 'Trebuchet MS'">Â </span><span style="font-family: 'Trebuchet MS'">Under the current interpretation of the See Through Rule, Export SuperPerson must now consider the entire engine as being <span>Â </span>under the USML jurisdiction. </span><span style="font-family: 'Trebuchet MS'">Â </span><span style="font-family: 'Trebuchet MS'"> </span><span style="font-family: 'Trebuchet MS'"><span style="font-family: 'Trebuchet MS'">Or maybe not?</span><span style="font-family: 'Trebuchet MS'">Â </span></span><span style="font-family: 'Trebuchet MS'"><span style="font-family: 'Trebuchet MS'"></span><span style="font-family: 'Trebuchet MS'">This is the puzzling mud-pit known as the â€œSee Through Ruleâ€. Some call it â€œITAR Creepâ€ because of its slow moving and, well, creepy quicksand nature. Â It is when one bad ITAR apple spoils the whole bunch.Â </span><span style="font-family: 'Trebuchet MS'">Â </span></p>
<p></span><span style="font-family: 'Trebuchet MS'"></span><span style="font-family: 'Trebuchet MS'">Brilliant analogies aside, the Rule considers products to be on the USML list if any part or component in the commercial dual use item is on the USML.Â </span></p>
<p><span style="font-family: 'Trebuchet MS'">While tight export restrictions can be a good thing when it comes to protecting <country-region w:st="on"></country-region><country-region w:st="on"></country-region>US technology from smarmy evildoers, industry, particularly the military industrial complex, is up in arms: Â &#8221;globalization&#8221; efforts and sales of dual use equipment to China are frozen since, as we all know, USML parts or their related technology canâ€™t be sent there. </span><span style="font-family: 'Trebuchet MS'">It is also more costly, or even impossible to outsource production or to even export ITAR-tainted products for sale to other countries. Not to mention all that infected stuff out there was previously exported in more carefree days. </span></p>
<p><span style="font-family: 'Trebuchet MS'">Thus, the industry argues, it will lose out against foreign competitorsÂ whoÂ aren&#8217;t impeded by Cold War era ITAR restrictions. </span><span style="font-family: 'Trebuchet MS'">So industry is still pushing for clarification of the see-through rule but the State Department won&#8217;t give it up just yet.</span><span style="font-family: 'Trebuchet MS'">Â </span><span style="font-family: 'Trebuchet MS'">A Big Chill was sent though the aeronautics industry a few years back when Boeing was fined $15 million because a USML classified QRS-11 navigation chip was included in a commercial engine exported for sale to <country-region w:st="on"></country-region></p>
<place w:st="on"></place>China.Â </span></p>
<p><span style="font-family: 'Trebuchet MS'">Â </span><span style="font-family: 'Trebuchet MS'"></span><span style="font-family: 'Trebuchet MS'">The question is: just how far will the See Through Rule be applied? <span>Â </span>If State decides that the See Through Rule applies to all things, then there are lots of export violations floating around this planet which will be a world of bureaucratic hurt for US exporters. </span><span style="font-family: 'Trebuchet MS'">Â  </span><span style="font-family: 'Trebuchet MS'"><span style="font-family: 'Trebuchet MS'">JR</span><font face="Times New Roman">Â </font></span></p>
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