Amendment to the International Traffic in Arms Regulations: U.S. Munitions List Categories VIII and XIX, 6797-6806 [2016-02587]

Agencies

• DEPARTMENT OF STATE

[Federal Register Volume 81, Number 26 (Tuesday, February 9, 2016)]
[Proposed Rules]
[Pages 6797-6806]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-02587]


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DEPARTMENT OF STATE

22 CFR Part 121

[Public Notice: 9395]
RIN 1400-AD89


Amendment to the International Traffic in Arms Regulations: U.S. 
Munitions List Categories VIII and XIX

AGENCY: Department of State.

ACTION: Proposed rule.

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SUMMARY: As part of the President's Export Control Reform (ECR) effort, 
the Department of State proposes to amend the International Traffic in 
Arms Regulations (ITAR) to revise Categories VIII (aircraft and related 
articles) and XIX (gas turbine engines and associated equipment) of the 
U.S. Munitions List (USML) to describe more precisely the articles 
warranting control on the USML. The revisions contained in this rule 
are part of the Department of State's retrospective plan under E.O. 
13563.

DATES: The Department of State will accept comments on this proposed 
rule until March 25, 2016.

ADDRESSES: Interested parties may submit comments within 45 days of the 
date of publication by one of the following methods:
     Email: DDTCPublicComments@state.gov with the subject line, 
``ITAR Amendment--Categories VIII and XIX.''
     Internet: At www.regulations.gov, search for this notice 
by using this rule's RIN (1400-AD89).
    Comments received after that date will be considered if feasible, 
but consideration cannot be assured. Those submitting comments should 
not include any personally identifying information they do not wish to 
be made public or information for which a claim of confidentiality is 
asserted, because those comments and/or transmittal emails will be made 
available for public inspection and copying after the close of the 
comment period via the Directorate of Defense Trade Controls Web site 
at www.pmddtc.state.gov. Parties who wish to comment anonymously may do 
so by submitting their comments via www.regulations.gov, leaving the 
fields that would identify the commenter blank and including no 
identifying information in the comment itself. Comments submitted via 
www.regulations.gov are immediately available for public inspection.

FOR FURTHER INFORMATION CONTACT: Mr. C. Edward Peartree, Director, 
Office of Defense Trade Controls Policy, Department of State, telephone 
(202) 663-2792; email DDTCPublicComments@state.gov. ATTN: ITAR 
Amendment--USML Categories VIII and XIX.

SUPPLEMENTARY INFORMATION: The Directorate of Defense Trade Controls 
(DDTC), U.S. Department of State, administers the International Traffic 
in Arms Regulations (ITAR) (22 CFR parts 120-130). The items subject to 
the jurisdiction of the ITAR, i.e., ``defense articles,'' are 
identified on the ITAR's U.S. Munitions List (USML) (22 CFR 121.1). 
With few exceptions, items not subject to the export control 
jurisdiction of the ITAR are subject to the jurisdiction of the Export 
Administration Regulations (``EAR,'' 15 CFR parts 730-774, which 
includes the Commerce Control List (CCL) in Supplement No. 1 to Part 
774), administered by the Bureau of Industry and Security (BIS), U.S. 
Department of Commerce. Both the ITAR and the EAR impose license 
requirements on exports and reexports. Items not subject to the ITAR or 
to the exclusive licensing jurisdiction of any other set of regulations 
are subject to the EAR.

USML List Review

    On March 2, 2015, the Department published a Notice of Inquiry 
requesting public comment on USML Categories VIII and XIX (see 80 FR 
11314). This Notice of Inquiry initiated a review of these categories 
to ensure that they are clear, do not inadvertently control items in 
normal commercial use, account for technological developments, and 
properly implement the national security and foreign policy objectives 
of the reform effort. The Department will similarly review each of the 
various USML categories that have been revised in the context of the 
ECR initiative.
    In response to this Notice of Inquiry, the Department received 25 
comments from the public. These comments offered proposals for 
modifications to the phrasing of regulatory text in USML Category VIII 
and Category XIX. The public comments were reviewed and considered by 
the Department and other agencies. Where the recommended changes added 
to the clarity of the regulation and were consistent with ECR 
objectives, the Department accepted them.
    All references to the USML in this rule are to the list of defense 
articles that are controlled for the purpose of export or temporary 
import pursuant to the ITAR, and not to the defense articles on the 
USML that are controlled by the Bureau of Alcohol, Tobacco, Firearms 
and Explosives (ATF) for the purpose of permanent import under its 
regulations (see 27 CFR part 447). Pursuant to Sec.  38(a)(1) of the 
Arms Export Control Act (AECA), all defense articles controlled for 
export or import are part of the USML under the AECA. For the sake of 
clarity, the list of defense articles controlled by ATF for the purpose 
of permanent import is the United States Munitions Import List (USMIL). 
The transfer of defense articles from the ITAR's USML to the EAR's CCL 
for the purpose of export control does not affect the list of defense 
articles controlled on the USMIL under the AECA for the purpose of 
permanent import.

[[Page 6798]]

Revision of Category VIII

    This proposed rule revises USML Category VIII, covering aircraft 
and related articles, to describe more precisely the articles 
warranting control on the USML.
    Paragraph (a) is revised to clarify that the controls for all 
paragraphs are applicable ``whether manned, unmanned, remotely piloted, 
or optionally piloted,'' by modifying paragraph (a)(5) to clarify the 
features meriting USML control, and by deleting paragraph (a)(6) and 
placing it into reserve, because the relevant control would be subsumed 
by paragraph (a)(5). Paragraphs (a)(7) and (a)(8) are modified to 
clarify the features meriting USML control. Paragraphs (a)(11) and 
(a)(13) are deleted and placed into reserve. Paragraph (a)(14) is 
modified to exclude L-100 aircraft manufactured prior to 2013 from the 
scope of control. The Note to paragraph (a) is revised to incorporate 
technical corrections.
    Paragraph (d) is modified to delete the ``ship-based'' control 
parameter and to clarify the intent and scope of the control.
    Notes 1 and 3 to paragraph (f) are modified to incorporate 
clarifying language.
    Several changes are proposed within paragraph (h). Paragraph (h)(1) 
is modified to delete the references to ``equipment'' in order to 
resolve any doubt that all production and test equipment specially 
designed for USML Category VIII articles presently is subject to the 
EAR under Export Control Classification Number (ECCN) 9B610. This rule 
proposes to move specific types of production and test equipment for 
specific aircraft identified in (h)(1) to the control of the USML 
because they are of a nature that inherently reveals technical data 
directly related to the defense article. The Department requests public 
comment on whether the production and test equipment identified in 
revised paragraph (h)(30) of the proposed revisions to USML Category 
VIII per se reveal technical data directly related to a defense 
article.
    In addition, paragraph (h)(1) is revised to update the list of 
subject platforms. The Note to paragraph (h)(1) is modified to 
incorporate technical corrections and to enhance the clarity of the 
note. Paragraph (h)(2) is revised to focus the scope of control on 
certain rotorcraft gearboxes meeting specific technical parameters, and 
a note to paragraph (h)(2) is added to clarify certain terminology used 
therein. Paragraph (h)(4)(ii) is modified to clarify the scope of 
control. Paragraph (h)(5) is updated to add the words ``On-aircraft'' 
in order to clarify the scope of control. Paragraph (h)(7) is modified 
to clarify the scope of control and to include control over specially 
designed parts and components of the subject flight control systems. 
Paragraph (h)(8) is modified to clarify the meaning of ``threat-
adaptive autonomous flight control systems.'' Paragraph (h)(10) is 
modified to enhance the clarity of the control text. Paragraph (h)(13) 
is deleted and placed into reserve. Paragraph (h)(16) is modified to 
incorporate a technical correction. Paragraph (h)(18) is modified to 
control specially designed parts and components of the subject systems. 
Paragraph (h)(19) is modified to remove reference to ECCN 9A610.
    Current paragraphs (h)(23) through (h)(26) are placed into reserve, 
with new controls added as paragraphs (h)(27) through (h)(30). Finally, 
the note to Category VIII is modified to update the paragraphs of 
paragraph (h) that are affected.
    A number of commenting parties submitted observations or 
recommendations that pertained to sections of the ITAR other than USML 
Categories VIII and XIX. Additional commenting parties offered general 
observations or requests regarding the ECR initiative or defense trade 
generally. The Department is not addressing such comments in this 
proposed rule because they are outside the scope of the pending 
inquiry. The Department welcomes input from the public on these matters 
under separate cover and through standard means of communication, and 
offers guidance to industry through the efforts of the DDTC Response 
Team or the Advisory Opinion process. As outlined in the Notice of 
Inquiry referenced above, this rulemaking addresses only the USML 
Categories identified specifically in the Notice of Inquiry.
    One commenter recommended that paragraph (a)(5) and paragraph 
(a)(13) be removed, and another commenter similarly recommended that 
paragraph (a)(6) be deleted, with paragraphs added to each entry in 
paragraph (a) for which the Department sought to control unmanned or 
optionally-piloted variants. The Department has revised these 
paragraphs, as described below, and modified paragraph (a) to confirm 
that the subject aircraft are ITAR-controlled if manned, unmanned, 
remotely piloted, or optionally piloted.
    A commenting party stated that the term ``attack helicopters'' in 
paragraph (a)(4) is ambiguous, and proposed a clarifying note. The 
Department did not accept this recommendation, because it has received 
little evidence to date to indicate that ITAR users have struggled with 
the meaning of this language and no other commenting party expressed a 
similar concern.
    Several commenting parties suggested that the use of the term 
``military'' in Category VIII, when used in the control text as a 
feature that would distinguish ITAR-controlled aircraft from other 
aircraft (e.g., in paragraph (a)(5)), did not provide sufficient 
clarity to allow for reliable self-classification of an aircraft. The 
Department accepted this suggestion and, where practical, has replaced 
references to ``military'' aircraft with controls impacting those 
aircraft that incorporate or are specially designed to incorporate a 
defense article. This includes revisions to paragraph (a)(5) and 
(a)(7).
    Additional commenting parties recommended that paragraph (a)(7) be 
revised to specifically describe the technical parameters or 
capabilities that merit ITAR control in the context of intelligence, 
surveillance, and reconnaissance missions. The Department has elected 
to limit revisions to paragraph (a)(7) to those referenced above, in 
order to capture an appropriate range of capabilities of concern.
    One commenting party recommended that paragraph (a)(8) be revised 
to specifically describe the technical parameters or capabilities that 
merit ITAR control in this context, asserting that commercial aircraft 
may be captured by the existing control. The Department did not accept 
the recommendation to add technical parameters, but has proposed 
revisions to the control text in order to better clarify the classes of 
aircraft subject to this control.
    Five commenting parties observed that the control set forth in 
paragraph (a)(11) created a significant burden for industry, by 
capturing any aircraft incorporating a mission system already 
controlled elsewhere in the USML, and thus recommended deletion of the 
control. Since the mission systems at issue in this paragraph are 
already subject to ITAR control and there is no other described feature 
that causes the aircraft at issue in this paragraph to merit ITAR 
control, the Department accepted these recommendations and deleted the 
paragraph and the notes to the paragraph.
    The Department did not receive public comment on paragraph (a)(12). 
However, public comment is requested on whether any commercial unmanned 
aerial vehicles have the capability described in this paragraph. In any 
public comment submitted in reply to this request, please provide 
specific

[[Page 6799]]

examples of the commercial models at issue.
    Four commenting parties recommend revision to or deletion of 
paragraph (a)(13), arguing that the control is overly broad and 
captures all optionally piloted aircraft, including aircraft that would 
otherwise be controlled by the EAR. The Department accepted these 
comments and deleted the paragraph, while revising paragraph VIII(a) to 
capture all optionally piloted variants of the aircraft listed in that 
paragraph.
    Two commenting parties recommended revision of paragraph (a)(14) to 
narrow the scope to capture only those aircraft platforms that provide 
critical military or intelligence capabilities, as well as to avoid 
inadvertent capture of commercial aircraft such as the L-100. The 
Department partially accepted the latter recommendation and excluded L-
100 aircraft manufactured prior to 2013 from control under paragraph 
(a)(14). The Department requests public comment on the scope and effect 
of this control and exclusion.
    Three commenting parties suggested that paragraph (a)(15)(ii) is 
not sufficiently clear to foreign readers, given its reliance on the 
military designations in paragraph (a)(15)(i) rather than specific 
performance criteria. While the Department believes the military 
designations set forth in paragraph (a)(15)(i) can be researched and 
understood satisfactorily using publicly available information and the 
relevant performance criteria can be determined based on this 
information, public comment is requested on whether paragraph (a)(15) 
captures articles that are not already controlled by paragraphs (a)(1)-
(a)(14). Similar to its request for comments on paragraph (a)(15), the 
Department requests public comment regarding whether the scope of 
controls described in paragraph (a)(16) is redundant given the controls 
in paragraphs (a)(1)-(a)(14), and whether it effectively precludes any 
less sensitive aircraft from being controlled in ECCN 9A610.a that, for 
example, may have been once manufactured with hard points that could be 
used to deliver munitions.
    One commenting party recommended revised control text for paragraph 
(a)(16), arguing that the word ``armed'' is ambiguous in its meaning. 
The Department did not accept this recommendation and believes that 
this term is sufficiently clear and understood by the public.
    Two commenting parties requested clarification on the scope of 
paragraph (d), with respect to the relationship between this paragraph 
and paragraph (h)(6), as well as the use of ``specially designed'' in 
this paragraph. The Department observes that the reference to 
``launching systems'' in paragraph (h)(6) is limited in scope to 
launching equipment for unmanned aerial vehicles. Additionally, the 
Department has revised paragraph (d) to remove the ``ship-based'' 
modifiers, as well as to clarify the performance characteristic for 
which the equipment at issue must be ``specially designed.''
    One commenting party recommended no change to paragraph (e), while 
three commenting parties recommended deletion of the paragraph or 
removal of its Significant Military Equipment designation. The 
Department did not accept any recommendation to modify this paragraph 
in this rulemaking. Since it is anticipated that the concurrent 
Category XII revision effort may impact controls over related 
technologies, the Department has elected to refrain from modifying the 
paragraph (e) control in Category VIII pending the outcome of the 
Category XII review and revision process.
    Three commenting parties suggested revisions to paragraph (f) or 
the Notes to that paragraph. Where commenting parties recommended 
technical clarifications or changes of terminology that did not 
materially alter the control, the Department did not accept these 
recommendations in order to maintain conformity between this paragraph 
and the analogous paragraphs that appear in other categories of the 
USML. The Department also did not accept a recommendation to limit the 
scope of paragraph (f) to developmental aircraft ``of the type 
described in VIII(a)(1)-(16)'' in favor of the existing scope of the 
paragraph. The Department accepted a recommendation to limit the class 
of modified contract affected by Note 3 to paragraph (f) to those that 
initiate the development of a new defense article and are dated April 
16, 2014 or later.
    One commenting party remarked in numerous instances on the use of 
``specially designed'' with respect to components of components. The 
Department received no other indication in the context of this review 
effort that the referenced control parameter is unclear and did not 
agree with these comments. Similarly, two commenting parties 
recommended the addition of technical parameters to remove ``specially 
designed'' wherever possible. The Department accepts this edit to the 
fullest extent possible, but notes that ``specially designed'' exists 
in recognition of the fact that an enumeration of specific technical 
parameters may prove too complex or unwieldy to produce a useful 
regulation in some cases.
    Several commenters offered recommendations to revise paragraph 
(h)(1), arguing that the control is overly broad or offering specific 
examples of technologies that are controlled by the paragraph but may 
be more appropriately controlled by the EAR. The Department did not 
accept any recommendation to remove a single technology or product from 
the paragraph, because such a change would be inconsistent with the 
national security, foreign policy, and regulatory drafting objectives 
of the paragraph to control as defense articles all parts and 
components, regardless of sophistication or similarity to items subject 
to the EAR, that are specially designed for the stealth and low-
observable aircraft platforms of greatest concern referenced in 
paragraph (h)(1). However, the Department modernized the list of 
aircraft platforms, and removed the reference to equipment. A new 
paragraph (h)(30) is added to capture the limited range of equipment 
relevant to a defense article described in paragraph (h)(1) and 
meriting ITAR control. Additionally, the Department notes that not all 
products designed for a referenced aircraft platform are ``specially 
designed'' for that platform. Please refer to ITAR Sec.  120.41 for 
more information.
    One commenting party requested confirmation that paragraph (h)(1) 
does not control articles controlled elsewhere on the USML, such as an 
F-35 radar that would otherwise be controlled as significant military 
equipment (SME) under USML Category XI(a)(3). The Department confirms 
that the higher-level SME control is appropriate in such a scenario. 
The essence of the Order of Review concept is that when determining 
whether an item is subject to the ITAR, one must first review the 
enumerated and other entries on the USML that do not use a ``specially 
designed'' catch-all reference to unspecified ``parts'' and 
``components.'' If no such references apply to the product at issue, 
then one must then review the ``specially designed'' catch-all 
provisions in the USML. If none of the USML catch-all provisions apply 
to the product at issue, then one must perform the same exercise within 
the 600 series controls of the CCL (or with the 515 controls for 
satellite-related items). If none of those entries apply, then one 
reviews the rest of the CCL as described in the EAR.
    A commenting party recommended clarification with respect to the 
Note to paragraph (h)(1), to confirm that the paragraph's description 
of specially

[[Page 6800]]

designed and ITAR Sec.  120.41 pertains only to paragraph (h)(1). The 
Department confirms that notes within the USML are intended only to 
pertain to the category, paragraph, or paragraph referenced in their 
heading; as such, the Note to paragraph (h)(1) relates only to that 
paragraph.
    Three commenting parties recommended revision to paragraph (h)(2) 
to remove the reference to interconnecting drive shafts and to clarify 
the scope of gearboxes that merit control under this provision. The 
Department accepted these edits and proposes a rewritten paragraph 
(h)(2) that controls only certain rotorcraft gearboxes that meet 
specific technical criteria.
    Two commenters recommended deletion of paragraph (h)(2) and an 
expansion of paragraph (h)(18) to control ballistic resistant gearbox 
parts and components. The Department partially accepted these comments. 
The revised control clarifies the narrowed scope of articles that merit 
control and is intended to address the commenters' objective of 
avoiding capture of items in normal commercial use.
    One commenting party recommended removal of the ``specially 
designed parts and components therefor'' language from paragraph 
(h)(2). The Department rejected this comment because the revised 
control now sets forth specific technical criteria.
    A commenter recommended revision of paragraph VIII(h)(3) to control 
only quick-fold systems designed for maritime operations and the 
specially designed parts and components thereof. In the interest of 
retaining the existing scope of control, the Department did not accept 
this recommendation.
    Similarly, the Department did not accept a recommendation to remove 
paragraph VIII(h)(4)'s control over certain wing folding systems. This 
paragraph was revised as recently as July 1, 2014 to ensure that wing 
folding systems for commercial aircraft are not controlled as defense 
articles, while retaining those systems that warrant ITAR controls for 
foreign policy and national security reasons. The range of public 
comments received did not indicate that the paragraph, as revised in 
July 2014, required further revision at this time.
    One commenting party requested clarification regarding the 
relationship between paragraph (h)(6) and paragraph (d) of the same 
category. As described above, the Department has revised paragraph (d) 
to provide more specific performance criteria, and further notes that 
the ``airborne launching systems'' referenced in paragraph (h)(6) 
pertain only to unmanned aerial vehicles.
    A commenting party recommended addition of a Note to paragraph 
(h)(6) to explain the meaning of ``external stores support systems for 
ordnance or weapons.'' In drafting control text the Department intends 
to avoid the overuse of clarifying notes to the extent possible, and 
did not believe that the recommended Note added sufficient clarity to 
merit its addition.
    One commenting party requested the addition of technical parameters 
to allow for the removal of ``specially designed'' language from 
paragraph (h)(7). The Department did not accept this comment but added 
a clarifying revision to the text of the paragraph, in order to better 
identify the intended scope of control, and added a control for parts 
and components of the systems described in this paragraph.
    Similarly, the Department did not accept a recommendation to add a 
Note to paragraph (a)(10) to indicate that the paragraph does not 
control radar or radio altimeter equipment conforming to Federal 
Aviation Administration Technical Standard Order C87. The Department 
made a minor clarifying revision to the paragraph, but the balance of 
comments received did not indicate a degree of confusion that would 
require the addition of the recommended Note.
    Two commenting parties recommended deletion of paragraph (h)(13), 
arguing that it does not control a uniquely military capability. The 
Department accepted these recommendations, deleted the control text of 
paragraph (h)(13), and placed the paragraph into reserve.
    One commenter recommended the removal of text in paragraph (h)(15) 
relating to ``specially designed parts, components, accessories, and 
attachments therefor'' and moving certain connectors, cables, and cable 
assemblies to ECCN 9A610. The commenter argued that the only 
differences between the EAR and apparent ITAR variants of the subject 
cables are the number of connectors on the cable and the wire length 
between connectors. The Department did not accept this recommendation 
because the cables as described would not be captured by the definition 
of specially designed in ITAR Sec.  120.41. The Department did not 
accept a similar recommended refinement of the same text to control 
only those specially designed parts, components, and accessories for 
the optical sights or slewing device of the integrated helmet. The 
relevant control extends to those parts, components, or accessories 
that meet the definition of specially designed with respect to the 
components described in the paragraph.
    A commenting party requested clarification with respect to the 
words ``and computers'' in paragraph (h)(16). The Department accepted 
this recommendation and made a minor revision to clarify that the words 
``aircraft-weapon interface units and computers'' should be read 
together as one concept.
    One commenting party remarked that paragraphs (h)(17), (h)(19), and 
(h)(23) described general purpose items and thus should be deleted. As 
noted above, paragraph (h)(23) is placed into reserve in this rule. 
With respect to paragraphs (h)(17) and (h)(19), the Department did not 
accept these recommendations because the commenter did not provide 
sufficient justification or explanation for these assertions.
    A commenter asked whether paragraph (h)(20) controlled all relevant 
classified parts, components, accessories, attachments, equipment, or 
systems, or if the paragraph only controlled those classified items not 
enumerated elsewhere in the subject category. This paragraph functions 
as a catch-all for classified defense articles not described elsewhere 
in the USML. Articles described elsewhere on the USML that are 
classified are controlled as specifically enumerated elsewhere in the 
subchapter, if applicable, or by USML Category XVII.
    One commenter recommended minor revisions to paragraph (h)(20) to 
match the analogous entries in USML Categories IV, V, IX, X, XI, and 
XV. The Department accepted this comment.
    Four commenting parties requested clarification of the terms 
``thermal engine'' and ``thermal batteries'' as they appear in 
paragraphs (h)(24) and (h)(25), respectively. The Department notes that 
those paragraphs are deleted in this proposed rule.
    A commenting party observed that paragraph VIII(k) is reserved, but 
in Sec.  121.16 of this subchapter, Item 10--Category II of the Missile 
Technology Control Regime (MTCR) Annex references the paragraph. The 
MTCR Annex is beyond the scope of this review effort but the Department 
acknowledges the observation of an error. Once all revised USML 
categories are published as final rules, ITAR Sec.  121.16 will be 
placed in reserve, and the parenthetical ``(MT)'' will be used at the 
end of each USML section containing such articles.
    One commenter suggested that the reference to ECCN 9A610 in the 
Note to Category VIII is not helpful, because most EAR-controlled 
aircraft that

[[Page 6801]]

incorporate a defense article are classified under ECCN 9A991.b. The 
Department did not accept the recommendation because it is not prepared 
to extend a per se exclusion from ITAR coverage to relevant aircraft 
controlled under the latter ECCN. Moreover, the Department believes 
that a very small number of USML articles are typically incorporated 
into ECCN 9A991.b aircraft. Any examples to the contrary should be 
identified in a public comment.
    A commenting party suggested that it is logically inconsistent to 
subject to ITAR control any spare or replacement parts for aircraft 
covered by the Note to Category VIII, where the spare or replacement 
parts are controlled by any of the USML paragraphs referenced in that 
Note. The Department does not agree with this comment because it 
continues to value the control of exports of unincorporated parts and 
components that would independently merit ITAR control under normal 
circumstances.

Revision of Category XIX

    This proposed rule revises USML Category XIX, covering gas turbine 
engines and associated equipment, to describe more precisely the 
articles warranting control on the USML.
    Paragraph (a) is modified to clarify the scope of controlled 
engines and to incorporate technical corrections. Paragraph (b) is 
revised to provide additional technical parameters to clarify the scope 
of controlled engines. With respect to paragraph (b)(1), public comment 
is requested on whether any commercial models exceed the capability 
described in this paragraph. In any public comment submitted in reply 
to this request, please provide specific examples of the commercial 
models at issue.
    Paragraph (c) is modified to incorporate conforming changes and to 
make clear that the paragraph applies only to gas turbine engines, 
while paragraph (d) is modified to update the list of subject engines. 
The Note to paragraph (e) is modified to incorporate a conforming 
change.
    Several changes are proposed within paragraph (f). Paragraph (f)(1) 
is modified to incorporate technical corrections and to update the list 
of subject engines. Paragraph (f)(2) introduces additional text to 
clarify the scope of controlled hot section components. New controls 
are proposed for paragraphs (f)(7) through (f)(16).
    A commenting party observed that Category XIX does not currently 
capture developmental engines that do not meet the performance criteria 
of paragraphs (a) through (e), and that paragraph (g) only covers 
technical data directly related to defense articles. A second commenter 
recommended the addition of a paragraph to specifically control 
developmental gas turbine engines, in a manner similar to development-
related paragraphs in other USML categories. The Department has revised 
paragraphs (a) through (c) to specifically control developmental 
engines that meet the technical criteria specified in those paragraphs 
that merit ITAR control.
    Two commenting parties recommended the addition of a Note to 
Category XIX that would allow the Department of Commerce to license the 
export of certain ITAR-controlled gas turbine engines when incorporated 
in a military aircraft subject to the EAR and classified under a ``600 
series'' ECCN. The Department accepted this recommendation. If examples 
exist of non-600 series production aircraft that are subject to the EAR 
and incorporate, in the ordinary course of civil applications, engines 
subject to the ITAR, please identify them in a public comment.
    A commenting party recommended the deletion of ``specially 
designed'' in various instances throughout the category. The Department 
has not received information indicating that the employment of the term 
has frustrated the application of the controls in this category, but 
will closely review any relevant comments received in reply to this 
proposed rule.
    One commenting party stated that the control text of paragraph (b), 
in concert with Category VIII(h)(2), frustrated commercial tilt rotor 
aircraft development. The Department has revised both categories to 
more specifically describe the parameters or characteristics that merit 
ITAR control. One commenter requested the removal of the T700 engine 
from control under paragraph (d). The Department did not accept this 
recommendation but has revised the list of engines subject to ITAR 
control under this paragraph.
    Several commenters offered recommendations to revise paragraph 
(f)(1), arguing that the control is overly broad or offering specific 
examples of technologies that are controlled by the paragraph but may 
be more appropriately controlled by the EAR. The Department did not 
accept any recommendation to remove the catch-all structure of the 
paragraph because such a revision would be inconsistent with the 
national security, foreign policy, and regulatory draft objectives of 
the paragraph to control as defense articles all parts and components 
specially designed for gas turbine engines of greatest concern and as 
identified in paragraph (f)(1). However, the Department modernized the 
list of gas turbine engines, and removed the reference to equipment. 
Several new paragraphs are added to capture the limited range of 
equipment relevant to a defense article described in paragraph (f)(1) 
and meriting ITAR control. Additionally, the Department notes that not 
all products designed for a referenced gas turbine engine are 
``specially designed'' for that engine. Please refer to ITAR Sec.  
120.41 for more information.
    A commenting party remarked that paragraph (f)(2) does not control 
augmenter parts and components. The Department confirms this 
observation and notes that parts and components specially designed for 
hot section components not controlled by paragraph (f)(2) are 
controlled by ECCN 9A619.x.
    A commenter asked whether paragraph (f)(6) controlled all relevant 
classified parts, components, accessories, attachments, equipment, or 
systems, or if the paragraph only controlled those classified items not 
enumerated elsewhere in the subject category. The Department observes 
that the paragraph functions as a catch-all for classified defense 
articles not described elsewhere in the USML. Articles described 
elsewhere on the USML that are classified are controlled as 
specifically enumerated elsewhere in the subchapter, if applicable, or 
by USML Category XVII.

Regulatory Analysis and Notices

Administrative Procedure Act

    The Department of State is of the opinion that controlling the 
import and export of defense articles and services is a foreign affairs 
function of the United States Government and that rules implementing 
this function are exempt from sections 553 (Rulemaking) and 554 
(Adjudications) of the Administrative Procedure Act. Although the 
Department is of the opinion that this rule is exempt from the 
rulemaking provisions of the APA, the Department is publishing this 
rule with a 45-day provision for public comment and without prejudice 
to its determination that controlling the import and export of defense 
services is a foreign affairs function. As noted above, and also 
without prejudice to the Department position that this rulemaking is 
not subject to the APA, the Department previously published a related 
Notice of Inquiry on March 2, 2015 (80 FR 11314), and accepted comments 
for 60 days.

[[Page 6802]]

Regulatory Flexibility Act

    Since the Department is of the opinion that this rule is exempt 
from the provisions of 5 U.S.C. 553, there is no requirement for an 
analysis under the Regulatory Flexibility Act.

Unfunded Mandates Reform Act of 1995

    This rulemaking does not involve a mandate that will result in the 
expenditure by State, local, and tribal governments, in the aggregate, 
or by the private sector, of $100 million or more in any year and it 
will not significantly or uniquely affect small governments. Therefore, 
no actions were deemed necessary under the provisions of the Unfunded 
Mandates Reform Act of 1995.

Small Business Regulatory Enforcement Fairness Act of 1996

    For purposes of the Small Business Regulatory Enforcement Fairness 
Act of 1996 (the ``Act''), a ``major'' rule is a rule that the 
Administrator of the OMB Office of Information and Regulatory Affairs 
finds has resulted or is likely to result in (1) an annual effect on 
the economy of $100,000,000 or more; (2) a major increase in costs or 
prices for consumers, individual industries, federal, state, or local 
government agencies, or geographic regions; or (3) significant adverse 
effects on competition, employment, investment, productivity, 
innovation, or on the ability of United States-based enterprises to 
compete with foreign-based enterprises in domestic and foreign markets.
    The Department does not believe this rulemaking will have an annual 
effect on the economy of $100,000,000 or more. Articles that are being 
removed from coverage in the U.S. Munitions List categories contained 
in this rule will still require licensing for export, but from the 
Department of Commerce. While the licensing regime of the Department of 
Commerce is more flexible than that of the Department of State, it is 
not expected that the change in jurisdiction of these articles will 
result in an export difference of $100,000,000 or more.
    The Department also does not believe that this rulemaking will 
result in a major increase in costs or prices for consumers, individual 
industries, federal, state, or local government agencies, or geographic 
regions, or have significant adverse effects on competition, 
employment, investment, productivity, innovation, or on the ability of 
United States-based enterprises to compete with foreign-based 
enterprises in domestic and foreign markets.

Executive Orders 12372 and 13132

    This rulemaking will not have substantial direct effects on the 
States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Therefore, in accordance with Executive 
Order 13132, it is determined that this rulemaking does not have 
sufficient federalism implications to require consultations or warrant 
the preparation of a federalism summary impact statement. The 
regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on Federal programs and activities do 
not apply to this rulemaking.

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess costs 
and benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety 
effects, distributed impacts, and equity). These executive orders 
stress the importance of quantifying both costs and benefits, of 
reducing costs, of harmonizing rules, and of promoting flexibility. 
This rulemaking has been designated a ``significant regulatory 
action,'' although not economically significant, under section 3(f) of 
Executive Order 12866. Accordingly, this rule has been reviewed by the 
Office of Management and Budget (OMB).

Executive Order 12988

    The Department of State has reviewed this rulemaking in light of 
sections 3(a) and 3(b)(2) of Executive Order 12988 to eliminate 
ambiguity, minimize litigation, establish clear legal standards, and 
reduce burden.

Executive Order 13175

    The Department of State has determined that this rulemaking will 
not have tribal implications, will not impose substantial direct 
compliance costs on Indian tribal governments, and will not preempt 
tribal law. Accordingly, the requirements of Executive Order 13175 do 
not apply to this rulemaking.

Paperwork Reduction Act

    This rule does not impose any new reporting or recordkeeping 
requirements subject to the Paperwork Reduction Act, 44 U.S.C. Chapter 
35; however, the Department of State seeks public comment on any 
unforeseen potential for increased burden.

List of Subjects in 22 CFR 121

    Arms and munitions, Classified information, Exports.

PART 121--THE UNITED STATES MUNITIONS LIST

0
1. The authority citation for part 121 continues to read as follows:

    Authority:  Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 
(22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2651a; Pub. L. 105-261, 112 
Stat. 1920; Section 1261, Pub. L. 112-239; E.O. 13637, 78 FR 16129.

0
2. Section 121.1 is amended by revising U.S. Munitions List Categories 
VIII and XIX, to read as follows:


Sec.  121.1  The United States Munitions List.

* * * * *

Category VIII--Aircraft and Related Articles

    (a) Aircraft, whether manned, unmanned, remotely piloted, or 
optionally piloted, as follows (MT if the aircraft, excluding manned 
aircraft, has a range equal to or greater than 300 km):
    *(1) Bombers;
    *(2) Fighters, fighter bombers, and fixed-wing attack aircraft;
    *(3) Turbofan- or turbojet-powered trainers used to train pilots 
for fighter, attack, or bomber aircraft;
    *(4) Attack helicopters;
    *(5) Unmanned aerial vehicles (UAVs) incorporating or specially 
designed to incorporate a defense article;
    *(6) [Reserved]
    *(7) Intelligence, surveillance, and reconnaissance aircraft 
incorporating or specially designed to incorporate a defense article;
    *(8) Electronic warfare aircraft, or airborne warning and control 
aircraft; or command, control, and communications aircraft 
incorporating or specially designed to incorporate a defense article;
    (9) Air refueling aircraft;
    (10) Target drones;
    (11) [Reserved]
    (12) Aircraft capable of being refueled in-flight including hover-
in-flight refueling (HIFR);
    (13) [Reserved]
    (14) Aircraft with a roll-on/roll-off ramp, capable of airlifting 
payloads over 35,000 lbs. to ranges over 2,000 nm without being 
refueled in-flight, and landing onto short or unimproved airfields, 
other than L-100 aircraft manufactured prior to 2013;
    *(15) Aircraft not enumerated in paragraphs (a)(1) through (a)(14) 
as follows:

[[Page 6803]]

    (i) U.S.-origin aircraft that bear an original military designation 
of A, B, E, F, K, M, P, R, or S; or
    (ii) Foreign-origin aircraft specially designed to provide 
functions equivalent to those of the aircraft listed in paragraph 
(a)(15)(i) of this category; or
    (16) Aircraft that are armed or are specially designed to be used 
as a platform to deliver munitions or otherwise destroy targets (e.g., 
firing lasers, launching rockets, firing missiles, dropping bombs, or 
strafing);
    Note 1 to paragraph (a): Aircraft specially designed for military 
applications that are not identified in paragraph (a) of this section 
are subject to the EAR and classified as ECCN 9A610, including any 
model of unarmed military aircraft manufactured prior to 1956, 
regardless of origin or designation, and unmodified since manufacture. 
Aircraft with modifications made to incorporate safety of flight 
features or other FAA or NTSB modifications such as transponders and 
air data recorders are considered ``unmodified'' for the purposes of 
this paragraph.
    Note 2 to paragraph (a): ``Range'' is the maximum distance that the 
specified aircraft system is capable of traveling in the mode of stable 
flight as measured by the projection of its trajectory over the surface 
of the Earth. The maximum capability based on the design 
characteristics of the system, when fully loaded with fuel or 
propellant, will be taken into consideration in determining range. The 
range for aircraft systems will be determined independently of any 
external factors such as operational restrictions, limitations imposed 
by telemetry, data links, or other external constraints. For aircraft 
systems, the range will be determined for a one-way distance using the 
most fuel-efficient flight profile (e.g., cruise speed and altitude), 
assuming International Civil Aviation Organization (ICAO) standard 
atmosphere with zero wind, but with no fuel reserve.
    (b)-(c) [Reserved]
    (d) Launching and recovery equipment specially designed to allow an 
aircraft described in paragraph (a) of this category to take off or 
land on a vessel described in Category VI paragraphs (a) through (c) 
(MT if the launching and recovery equipment is for an aircraft, 
excluding manned aircraft, that has a range equal to or greater than 
300 km).
    Note to paragraph (d): For the definition of ``range,'' see note to 
paragraph (a) of this category.
    *(e) Inertial navigation systems (INS), aided or hybrid inertial 
navigation systems, Inertial Measurement Units (IMUs), and Attitude and 
Heading Reference Systems (AHRS) specially designed for aircraft 
controlled in this category or controlled in ECCN 9A610 and all 
specially designed components, parts, and accessories therefor (MT if 
the INS, IMU, or AHRS is for an aircraft, excluding manned aircraft, or 
missile that has a ``range'' equal to or greater than 300 km). For 
other inertial reference systems and related components refer to USML 
Category XII(d).
    (f) Developmental aircraft funded by the Department of Defense via 
contract or other funding authorization, and specially designed parts, 
components, accessories, and attachments therefor.
    Note 1 to paragraph (f): This paragraph does not control aircraft 
and specially designed parts, components, accessories, and attachments 
therefor (a) in production; (b) determined to be subject to the EAR via 
a commodity jurisdiction determination (see Sec.  120.4 of this 
subchapter), or (c) identified in the relevant Department of Defense 
contract or other funding authorization as being developed for both 
civil and military applications.
    Note 2 to paragraph (f): Note 1 does not apply to defense articles 
enumerated on the U.S. Munitions List, whether in production or 
development.
    Note 3 to paragraph (f): This paragraph is applicable only to those 
contracts, other funding authorizations, or modifications initiating 
development of a new defense article that are dated April 16, 2014, or 
later.
    (g) [Reserved]
    (h) Parts, components, accessories, attachments, associated 
equipment and systems, as follows:
    (1) Parts, components, accessories, and attachments specially 
designed for the following U.S.-origin aircraft: the B-1B, B-2, F-15SE, 
F/A-18 E/F, EA-18G, F-22, F-35, and future variants thereof; or the F-
117 or U.S. Government technology demonstrators. Parts, components, 
accessories, and attachments of the F-15SE and F/A-18 E/F that are 
common to earlier models of these aircraft, unless listed in paragraph 
(h) of this category, are subject to the EAR;
    Note to paragraph (h)(1): This paragraph does not control parts, 
components, accessories, and attachments that are common to aircraft 
described in paragraph (a) of this category but not identified in 
paragraph (h)(1), and those identified in paragraph (h)(1). For 
example, when applying Sec.  120.41(b)(3), a part common to only the F-
16 and F--35 is not specially designed for purposes of this paragraph. 
A part common to only the F-22 and F-35--two aircraft models identified 
in paragraph (h)(1)--is specially designed for purposes of this 
paragraph, unless one of the other paragraphs is applicable under Sec.  
120.41(b).
    (2) Rotorcraft gearboxes with internal pitch line velocities 
exceeding 20,000 feet per minute and able to operate 30 minutes with 
loss of lubrication without an emergency or auxiliary lubrication 
system, and specially designed parts and components therefor;
    Note to paragraph (h)(2): Loss of lubrication means a situation 
where oil/lubrication is mostly or completely lost from a transmission/
gearbox such that only a residual coating remains due to the 
lubrication system failure.
    (3) Tail boom folding systems, stabilator folding systems or 
automatic rotor blade folding systems, and specially designed parts and 
components therefor;
    (4) Wing folding systems, and specially designed parts and 
components therefor, for:
    (i) Aircraft powered by power plants controlled under USML Category 
IV(d); or
    (ii) Aircraft with any of the following characteristics and powered 
by gas turbine engines:
    (A) The portion of the wing outboard of the wing fold is required 
for sustained flight;
    (B) Fuel can be stored outboard of the wing fold;
    (C) Control surfaces are outboard of the wing fold;
    (D) Hard points are outboard of the wing fold;
    (E) Hard points inboard of the wing fold are capable of in-flight 
ejection; or
    (F) The aircraft is designed to withstand maximum vertical 
maneuvering accelerations greater than +3.5g/-1.5g.
    (5) On-aircraft arresting gear (e.g., tail hooks and drag chutes) 
and specially designed parts and components therefor;
    (6) Bomb racks, missile launchers, missile rails, weapon pylons, 
pylon-to-launcher adapters, unmanned aerial vehicle (UAV) airborne 
launching systems, external stores support systems for ordnance or 
weapons, and specially designed parts and components therefor (MT if 
the bomb rack, missile launcher, missile rail, weapon pylon, pylon-to-
launcher adapter, UAV airborne launching system, or external stores 
support system is for an aircraft, excluding manned aircraft, or 
missile that has a ``range'' equal to or greater than 300 km);
    (7) Damage or failure-adaptive flight control systems, that do not 
consist

[[Page 6804]]

solely of redundant internal circuitry, specially designed for aircraft 
controlled in this category, and specially designed parts and 
components therefor;
    (8) Threat-adaptive autonomous flight control systems, where a 
``threat-adaptive autonomous flight control system'' is a flight 
control system that, without input from the operator or pilot, adjusts 
the aircraft control or flight path to minimize risk caused by hostile 
threats;
    (9) Non-surface-based flight control systems and effectors (e.g., 
thrust vectoring from gas ports other than main engine thrust vector);
    (10) Radar altimeters with output power management LPI (low 
probability of intercept) or signal modulation (i.e., frequency 
hopping, chirping, direct sequence-spectrum spreading) LPI capabilities 
(MT if for an aircraft, excluding manned aircraft, or missile that has 
a ``range'' equal to or greater than 300 km);
    (11) Air-to-air refueling systems and hover-in-flight refueling 
(HIFR) systems, and specially designed parts and components therefor;
    (12) Unmanned aerial vehicle (UAV) flight control systems and 
vehicle management systems with swarming capability (i.e., UAVs 
interact with each other to avoid collisions and stay together, or, if 
weaponized, coordinate targeting) (MT if for an aircraft, excluding 
manned aircraft, or missile that has a ``range'' equal to or greater 
than 300 km);
    (13) [Reserved]
    (14) Lift fans, clutches, and roll posts for short take-off, 
vertical landing (STOVL) aircraft and specially designed parts and 
components for such lift fans and roll posts;
    (15) Integrated helmets incorporating optical sights or slewing 
devices, which include the ability to aim, launch, track, or manage 
munitions (e.g., Helmet Mounted Cueing Systems, Joint Helmet Mounted 
Cueing Systems (JHMCS), Helmet Mounted Displays, Display and Sight 
Helmets (DASH)), and specially designed parts, components, accessories, 
and attachments therefor;
    (16) Fire control computers, stores management systems, armaments 
control processors, and aircraft-weapon interface units and computers 
(e.g., AGM-88 HARM Aircraft Launcher Interface Computer (ALIC));
    (17) Mission computers, vehicle management computers, and 
integrated core processers specially designed for aircraft controlled 
in this category;
    (18) Drive systems and flight control systems specially designed to 
function after impact of a 7.62mm or larger projectile, and specially 
designed parts and components therefor;
    (19) Thrust reversers specially designed to be deployed in flight 
for aircraft controlled in this category;
    *(20) Any part, component, accessory, attachment, equipment, or 
system that:
    (i) Is classified;
    (ii) Contains classified software directly related to defense 
articles in this subchapter or 600 series items subject to the EAR; or
    (iii) Is being developed using classified information.
    Note to paragraph (h)(20): Classified means classified pursuant to 
Executive Order 13526, or predecessor order, and a security 
classification guide developed pursuant thereto or equivalent, or to 
the corresponding classification rules of another government or 
international organization;
    (21)-(26) [Reserved]
    (27) Variable speed gearboxes capable of varying output speed by 
50% or greater and providing power to rotors, proprotors, propellers, 
propfans, or liftfans; and specially designed parts and components 
therefor;
    (28) Electrical power or thermal management systems integrated with 
an engine controlled in Category XIX having any of the following:
    (i) Electrical power generators that provide greater than 300kW of 
electrical power (per generator) with gravimetric power densities 
exceeding 2kW/pound;
    (ii) Heat exchangers that exchange 200 kW of heat or greater into 
the gas turbine engine flow path;
    (iii) Logic controls that maintain gas turbine engine operability 
during pneumatic and shaft power extraction of 2kW/pound; or
    (iv) Direct-cooling thermal electronic package heat exchangers that 
transfers 20kW of heat or greater at 100W/cm\2\ or greater;
    (29) Flight control algorithms or software that aid in landing a 
fixed-wing aircraft on any vessel controlled in Category VI(a)-(c); or
    (30) The following, if specially designed for a defense article 
described in paragraph (h)(1):
    (i) Wind tunnel and other scale test models;
    (ii) Full scale iron bird ground rigs used to test major aircraft 
systems;
    (iii) Autonomic logistics information system (ALIS); or
    (iv) Jigs, locating fixtures, templates, gauges, molds, dies, and 
caul plates, for production of airframe parts and components.
    Note to paragraph (h)(30)(iv): ``Airframe'' means an assembled 
structure influencing strength, integrity or shape and also includes 
transparencies, flush antennas, radomes, fairings, doors, internal 
ducts, pylons for external stores but does not include landing gear or 
other readily removable items.
    (i) Technical data (see Sec.  120.10 of this subchapter) and 
defense services (see Sec.  120.9 of this subchapter) directly related 
to the defense articles described in paragraphs (a) through (h) of this 
category and classified technical data directly related to items 
controlled in ECCNs 9A610, 9B610, 9C610, and 9D610 and defense services 
using classified technical data. (See Sec.  125.4 of this subchapter 
for exemptions.) (MT for technical data and defense services related to 
articles designated as such.)
    (j)-(w) [Reserved]
    (x) Commodities, software, and technical data subject to the EAR 
(see Sec.  120.42 of this subchapter) used in or with defense articles 
controlled in this category.
    Note to paragraph (x): Use of this paragraph is limited to license 
applications for defense articles controlled in this category where the 
purchase documentation includes commodities, software, or technical 
data subject to the EAR (see Sec.  123.1(b) of this subchapter).
    Note: Inertial navigation systems, aided or hybrid inertial 
navigation systems, Inertial Measurement Units, and Attitude and 
Heading Reference Systems in paragraph (e), and parts, components, 
accessories, and attachments in paragraphs (h)(3)-(5), (7), (14), (17), 
or (19) are licensed by the Department of Commerce when incorporated in 
an aircraft subject to the EAR and classified under ECCN 9A610. 
Replacement systems, parts, components, accessories and attachments are 
subject to the controls of the ITAR.
* * * * *

Category XIX--Gas Turbine Engines and Associated Equipment

    *(a) Turbofan and Turbojet engines (including those that are 
technology demonstrators, developmental engines, or variable cycle 
engines) capable of 15,000 lbf (66.7 kN) of thrust or greater that have 
any of the following:
    (1) With or specially designed for thrust augmentation 
(afterburner);
    (2) Thrust or exhaust nozzle vectoring;
    (3) Parts or components controlled in paragraph (f)(6) of this 
category;
    (4) Specially designed for sustained 30 second inverted flight or 
negative g maneuver; or
    (5) Specially designed for high power extraction (greater than 50 
percent of

[[Page 6805]]

engine thrust at altitude) at altitudes greater than 50,000 feet.
    *(b) Turboshaft and Turboprop engines (including those that are 
technology demonstrators or developmental engines) that have any of the 
following:
    (1) Capable of 1500 mechanical shp (1119 kW) or greater and 
specially designed with oil sump sealing when the engine is in the 
vertical position; or
    (2) Capable of 225 specific power or greater and specially designed 
for armament gas ingestion and transient maneuvers, where specific 
power is defined as maximum takeoff shaft horsepower divided by 
compressor inlet flow (lbm/sec).
    *(c) Gas turbine engines (including technology demonstrators, 
developmental engines, and variable cycle engines) specially designed 
for unmanned aerial vehicle systems controlled in this category, cruise 
missiles, or target drones (MT if for an engine used in an aircraft, 
excluding manned aircraft, or missile that has a ``range'' equal to or 
greater than 300 km).
    *(d) GE38, AGT1500, CTS800, MT7, T55, TF60, HPW3000, GE3000, T408, 
and T700 engines.
    Note to paragraph (d): Engines subject to the control of this 
paragraph are licensed by the Department of Commerce when incorporated 
in an aircraft subject to the EAR and controlled under ECCN 9A610. Such 
engines are subject to the controls of the ITAR in all other 
circumstances.
    *(e) Digital engine control systems (e.g., Full Authority Digital 
Engine Controls (FADEC) and Digital Electronic Engine Controls (DEEC)) 
specially designed for gas turbine engines controlled in this category 
(MT if the digital engine control system is for an aircraft, excluding 
manned aircraft, or missile that has a range equal to or greater than 
300 km).
    Note to paragraph (e): Digital electronic control systems 
autonomously control the engine throughout its whole operating range 
from demanded engine start until demanded engine shut-down, in both 
normal and fault conditions.
    (f) Parts, components, accessories, attachments, associated 
equipment, and systems as follows:
    (1) Parts, components, accessories, and attachments specially 
designed for the following U.S.-origin engines (and military variants 
thereof): F101, F107, F112, F118, F119, F120, F135, F136, F414, F415, 
and J402; Note to paragraph (f)(1): This paragraph does not control 
parts, components, accessories, and attachments that are common to 
engines enumerated in paragraph (a) through (d) of this category but 
not identified in paragraph (f)(1), and those identified in paragraph 
(f)(1). For example, a part common to only the F110 and F136 is not 
specially designed for purposes of this paragraph. A part common to 
only the F119 and F135--two engine models identified in paragraph 
(f)(1)--is specially designed for purposes of this paragraph, unless 
one of the other paragraphs is applicable under Sec.  120.41(b).
    *(2) Hot section components (i.e., combustion chambers and liners; 
high pressure turbine blades, vanes, disks and related cooled 
structure; actively cooled low pressure turbine blades, vanes, disks 
and related actively cooled structures; actively cooled power turbine 
blades, vanes, disks and related actively cooled structures; actively 
cooled intermediate turbine blades, vanes, disks and related actively 
cooled structures; actively cooled augmenters; and actively cooled 
nozzles) specially designed for gas turbine engines controlled in this 
category;
    (3) Uncooled turbine blades, vanes, disks, and tip shrouds 
specially designed for gas turbine engines controlled in this category;
    (4) Combustor cowls, diffusers, domes, and shells specially 
designed for gas turbine engines controlled in this category;
    (5) Engine monitoring systems (i.e., prognostics, diagnostics, and 
health) specially designed for gas turbine engines and components 
controlled in this category;
    *(6) Any part, component, accessory, attachment, equipment, or 
system that:
    (i) Is classified;
    (ii) Contains classified software directly related to defense 
articles in this subchapter or 600 series items subject to the EAR; or
    (iii) Is being developed using classified information.
    Note to paragraph (f)(6): ``Classified'' means classified pursuant 
to Executive Order 13526, or predecessor order, and a security 
classification guide developed pursuant thereto or equivalent, or to 
the corresponding classification rules of another government or 
international organization;
    (7) Test cells or test stands specially designed for technology 
demonstrator engines, developmental engines, or variable cycle engines 
controlled in this category;
    (8) Investment casting cores, core dies, or wax pattern dies for 
parts or components enumerated in paragraphs (f)(1), (f)(2), or (f)(3) 
of this category;
    (9) Pressure gain combustors specially designed for engines 
controlled in this category, and specially designed parts and 
components therefor;
    (10) Three-stream fan systems that allow the movement of airflow 
between the streams to control fan pressure ratio or bypass ratio (by 
means other than use of fan corrected speed or the primary nozzle area 
to change the fan pressure ratio or bypass ratio), and specially 
designed parts, components, accessories, and attachments therefor;
    (11) High pressure compressors with core-driven bypass streams that 
have a pressure ratio greater than one, occurring across any section of 
the bypass duct, and specially designed parts, components, accessories, 
and attachments therefor;
    (12) Intermediate compressors of a three-spool compression system 
with an intermediate spool-driven bypass stream that has a pressure 
ratio greater than one, occurring across any section of the bypass 
duct, and specially designed parts, components, accessories, and 
attachments therefor;
    (13) Powders specially designed for thermal or environmental 
barrier coating of defense articles enumerated in paragraphs (f)(1)-
(f)(4) of this category;
    (14) Superalloys (i.e., nickel, cobalt or iron based), used in 
directionally solidified or single crystal casting, specially designed 
for defense articles enumerated in paragraphs (f)(1)-(f)(4) of this 
category;
    (15) Imide matrix, metal matrix, or ceramic matrix composite 
material (i.e., reinforcing fiber combined with a matrix) specially 
designed for defense articles enumerated in paragraphs (f)(1)-(f)(4) of 
this category; or
    (16) The following, if specially designed for a defense article in 
paragraph (f)(1):
    (i) Jigs, locating fixtures, templates, gauges, molds, dies, or 
caul plates, for production of engine parts and components; or
    (ii) Test cells or test stands.
    (g) Technical data (see Sec.  120.10 of this subchapter) and 
defense services (see Sec.  120.9 of this subchapter) directly related 
to the defense articles described in paragraphs (a) through (f) of this 
category and classified technical data directly related to items 
controlled in ECCNs 9A619, 9B619, 9C619, and 9D619 and defense services 
using the classified technical data. (See Sec.  125.4 of this 
subchapter for exemptions.) (MT for technical data and defense services 
related to articles designated as such.)
    (h)-(w) [Reserved]
    (x) Commodities, software, and technical data subject to the EAR 
(see Sec.  120.42 of this subchapter) used in or

[[Page 6806]]

with defense articles controlled in this category.
    Note to paragraph (x): Use of this paragraph is limited to license 
applications for defense articles controlled in this category where the 
purchase documentation includes commodities, software, or technical 
data subject to the EAR (see Sec.  123.1(b) of this subchapter).
* * * * *

Rose E. Gottemoeller,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 2016-02587 Filed 2-8-16; 8:45 am]
 BILLING CODE 4710-25-P