Final Rule on Civil Aviation Manufacturing Exports a Boost to Aerospace

ARLINGTON, Va: A long-awaited clarification of rules governing the export of civil aviation items, which was finalized today, will be a shot in the arm for the aerospace industry and American exports, AIA President and CEO Marion Blakey said.

The State Department issued the final rule to eliminate ongoing confusion over implementation of section 17(c) of the Export Administration Act. While the act gave the Commerce Department export control jurisdiction over civil aviation parts, it has been unclear which parts could still be labeled "military" and subject to more stringent rules.

Congressional attention to the matter, led by Reps. Don Manzullo and Brad Sherman and the Congressional Export Control Working Group, helped result in Thursday's move, Blakey said.

"The administration and Congress have both demonstrated real leadership on this matter," Blakey said. "Resolving this confusing issue will help cement one of our industry's great strengths, our $60 billion foreign trade surplus."

Prior to the State Department's clarification, the line was blurred between commercial aviation items that were regulated as civilian items by the Commerce Department and those that had military applications that are not allowed on civil aircraft. The latter are on the U.S. munitions list and are subject to stringent export regulation.

The new rule makes it clear to companies what export licenses, if any, are required to sell items overseas and whether they can be used in civil aviation.

The move is the latest step in a string of efforts by the administration to modernize the U.S. export control system. AIA has long advocated for that goal, leading the Coalition for Security and Competitiveness efforts pushing for improvements. The administration used coalition recommendations as a basis for a slate of modernization improvements earlier this year.

Aerospace Industries Association