How to Use License Exception RPL

Introduction

CBC routinely receives hundreds of applications for the servicing and replacement of equipment and parts every year. This includes items such as valves, valve components (e.g., valve bodies), pumps, pump components (e.g., impellers), and filters. A license is not necessary for such commodities if license exception RPL (Part 740.10 of the EAR) can be utilized. You may use the license exception RPL for two different situations as described below. We have summarized the major sections below but a full review of the license exception would still be necessary.

  1. Replacement Parts – This authorizes the export and reexport of replacement parts for the immediate repair of previously exported, reexported or foreign made equipment incorporating U.S. origin parts on a one-for-one replacement basis. It also authorizes the export and reexport of stock spare parts that were authorized to accompany the export of equipment.
  2. Servicing and Replacement – Replacements for defective or unacceptable U.S.-origin equipment. (a) The commodity or software to be replaced must have been previously exported or reexported in its present form under a license or authorization such as NLR. (b) No commodity or software may be exported or reexported to replace equipment that is worn out from normal use.

Limitations to using RPL: (1) Items that improve or change the basic design characteristics, as measured by the control criteria specified in the applicable ECCN of the equipment upon which they are installed, are not deemed to be replacement parts; (2) Parts to be replaced must be destroyed abroad or returned.

Common questions regarding how to use RPL

  1. Can I use RPL even if the original item was not shipped under a license? Answer: RPL is eligible for legally exported, reexported and foreign produced items. For example, if you exported pumps and spare impellors to South America in 2004 when there was no license required, you can still use RPL to replace the spare impellors since they were shipped legally and part of the original shipment. You may also be able to use RPL for the pumps if they are part of a piece of equipment and replacement is needed for repair of the equipment. For example, if the pumps are being exported to replace parts of a semiconductor wafer cleaning system in use, you can use RPL to export those pumps.
  2. How can an exporter confirm if the part to be replaced was "destroyed?" Answer: Get a statement from the end user describing how the replaced item will be disposed of. For example, the end user may send the part for scrap metal or recycling which satisfies “destroyed.”
  3. How do you evaluate that the replacement item does not improve the basic characteristic of the equipment as originally approved by license? Answer: A change in the performance criteria as described in the CCL is used to determine restrictions related to this cause. For example, if a replacement part is predicted to increase the flow rate of a pump from 20 m3/hr to 22 m3/hr- but it still falls within the tolerance design flow range of the original pump, you can use RPL for that replacement part. In contrast, if the replacement part increases the flow rate of the pump from 20 m3/hr to 60 m3/hr, then this would be considered a change in its basic characteristics. Similarly if the replaced item changes the capability of the equipment such as being able to process sulfuric acid instead of sea water, then that would not be eligible for RPL.

How to use RPL

Once it is determined that the export transaction is eligible for RPL, the following steps are necessary:

  1. Place a destination control statement on your export documents acknowledging you are in full compliance with the EAR (see Part 758 of the EAR).
  2. If the export requires an AES filing, enter the ECCN of the item (2B350, 2B352), enter the symbol RPL for the license authority, and a description of the item (see Part 758 of the EAR).
  3. Maintain all records as required in your files (see Part 762 of the EAR).