As a subscriber to Bureau of Industry and Security (BIS) email notifications, I received a letter about two entities being charged with attempt (conspiracy) to export carbon fiber. The letter is reproduced below. I would like to draw LawCustoms guests attention not to the penalty details, but to the extent of export control regime related to carbon fibers in the civil industrial context. More specifically, to the finished product being exported made of controlled carbon fiber.
The centerpiece of the charge was the Export Control Classification Number (ECCN) 1C210, which provides for certain “fibrous or filamentary material.” We know that because 1C210 is in the “C” product group, it deals with materials, rather than the finished product which is usually provided in the “A” product group. See e.g. BIS’s Export Control Basics overview. The relevant ECCN in “A” group is 1A002, which provides for “Composite” structures or laminates wich certain characteristics. Provided that the characteristics are there, Note 2 to ECCN 1A002 provides an exception: “1A002 does not control finished or semi-finished items, specially designed for purely civilian applications as follows: (a) sporting goods; (b) automotive industry; (c) machine tool industry; (d) medical applications.” This means that if the otherwise qualified item is used in any other industry, then export restrictions may apply. Other industries that particularly come to mind is mining and offshore, agriculture, food, and consumer goods (other than sporting) industry. By way of example, if one cells carbon fiber iPhone cases for export that fit the technical criteria, then NS/NP/AT 1A002 controls may apply.