Amendments to the International Traffic in Arms Regulations: Office Names, Corrected Cross-Referencing, Reference to Wassenaar Arrangement, and Other Corrections/Administrative Changes, 20534-20555 [06-3500]

Agencies

• DEPARTMENT OF STATE

[Federal Register Volume 71, Number 77 (Friday, April 21, 2006)]
[Rules and Regulations]
[Pages 20534-20555]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-3500]


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DEPARTMENT OF STATE

22 CFR Parts 120, 121, 122, 123, 124, 125, 126, 127, 128, 129, and 
130

[Public Notice: 5345]


Amendments to the International Traffic in Arms Regulations: 
Office Names, Corrected Cross-Referencing, Reference to Wassenaar 
Arrangement, and Other Corrections/Administrative Changes

AGENCY: Department of State.

ACTION: Final rule.

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SUMMARY: The Department of State is amending the International Traffic 
in Arms Regulations (ITAR) to reflect current office names, correct 
cross-references, update the reference to the Wassenaar Arrangement, 
and make other corrections and administrative changes.

DATES: Effective Date: This rule is effective April 21, 2006.

ADDRESSES: Interested parties may submit comments at any time by any of 
the following methods:
     E-mail: DDTCResponseTeam@state.gov with an appropriate 
subject line.
     Mail: Department of State, Directorate of Defense Trade 
Controls, Office of Defense Trade Controls Management, ATTN: Regulatory 
Change, 12th Floor, SA-1, Washington, DC 20522-0112.
     Fax: 202-261-8199.
     Hand Delivery or Courier (regular work hours only): 
Department of State, Directorate of Defense Trade Controls, Office of 
Defense Trade Controls Management, ATTENTION: Regulatory Change, SA-1, 
12th Floor, 2401 E Street, NW., Washington, DC 20037.
    Persons with access to the Internet may also view this notice by 
going to the regulations.gov Web site at: https://www.regulations.gov/
index.cfm.

FOR FURTHER INFORMATION CONTACT: Mary Sweeney, Office of Defense Trade 
Controls Management, Department of State, 12th Floor, SA-1, Washington, 
DC 20522-0112; Telephone 202-663-2865 or FAX 202-261-8199; e-mail: 
DDTCResponseTeam@state.gov. ATTN: Regulatory Change.

SUPPLEMENTARY INFORMATION: References to the ``Office of Defense Trade 
Controls'' have been amended to the ``Directorate of Defense Trade 
Controls'' (Sec. Sec.  120.1(c), 120.4(a), 120.4(b), 120.12, 120.20, 
120.28(a), 121.1 Category XXI(a), 121.16, 122.1(a), 122.4(a), 122.4(b), 
122.4(c), 122.4(c)(4). 122.4(d), 123.1(a), 123.1(c), 123.3(a), 
123.8(a), 123.8(b), 123.9(a), 123.9(d), 123.9(e), 123.9(e)(3), 
123.9(e)(4), 123.10(b), 123.10(c), 123.11(a), 123.14(b), 123.25(a), 
123.27(a), 123.27(a)(2), 123.27(a)(5), 123.27(a)(6), 123.27(b), 
123.27(c), 124.1(a), 124.1(b), 124.1(c), 124.1(d), 124.4(a), 124.4(b), 
124.5, 124.6, 124.10(a), 124.10(b)(1), 124.10 Note, 124.12(1), 
124.12(a)(1), 124.13(d), 124.13(e), 124.14(a), 124.14(b), 124.14(b)(4), 
124.14(c)(5), 124.14(e), 124.14(e)(1), 125.1(b), 125.2(a), 125.2(b), 
125.3(a), 125.3(b), 125.3(c), 125.4(a), 125.4(b)(10)(iii), 
125.4(b)(11), 125.5(a), 125.5(b), 125.7(a), 125.7(b), 125.9, 126.1(e), 
126.2, 126.7(b), 126.7(c), 126.8(a), 126.8(a)(1), 126.8(a)(2), 
126.8(a)(3), 126.8(c)(1)(i), 126.8(c)(2), 126.9(a), 126.9(b), 
126.10(a), 126.14(a), 126.14(a)(1), 126.14(a)(2), 126.14(a)(3)(i), 
126.14(b), 127.1(a)(1), 127.1(a)(2), 127.1(a)(3), 127.1(c), 
127.7(b)(2), 127.8(a), 127.9, 127.10, 127.11, 127.12(a), 127.12(b)(1), 
127.12(b)(2), 127.12(b)(3), 127.12(c), 127.12(d)(iii), 128.3(a), 
128.5(c), 128.6(a), 128.6(b), 128.6(d), 128.10, 128.11(a), 128.13(d), 
128.15(a), 128.15(b)(3), 129.3(a), 129.4(b), 129.5(b), 129.5(c), 
129.5(e), 129.6(a), 129.7(a), 129.7(b)(2), 129.7(c), 129.8(a), 
129.8(b), 129.9(a), 130.2, 130.8(a)(1), 130.9(a)(1), 130.9(a)(1)(ii), 
130.9(a)(2), 130.9(b), 130.9(b)(2), 130.9(d), 130.10(a), 130.11(a)(3), 
130.11(b), 130.11(b)(2), 130.12(c), 130.12(d)(1), and 130.12(d)(2)).
    ``COCOM'' has been amended to the ``Wassenaar Arrangement'' 
(Sec. Sec.  120.4(d)(3)(ii), 120.4(d)(3)(iii), and 126.10(d)(2)). 
``Center for Defense Trade'' has been amended to the ``Directorate of 
Defense Trade Controls'' (Sec. Sec.  120.4(g) and 121.1(a)). ``Center 
for Defense Trade'' has been amended to ``Office of Defense Trade 
Controls Policy'' (Sec.  120.4(e)). Also, references to the ``Bureau of 
Politico-Military Affairs'' have been amended to the ``Bureau of 
Political-Military Affairs'' (Sec. Sec.  120.4(g), 120.12, 120.28(a), 
127.7(a), 127.9 and 127.11(b)). Grammatical changes have been made to 
the definition of ``U.S. person'' at Sec.  120.15, to Sec.  124.1(a) by 
deleting ``either,'' and to ``Voluntary Disclosures'' at Sec.  
127.12(b)(4). The ``Defense Security Assistance Agency'' has been 
amended to the ``Defense Security Cooperation Agency'' (Sec.  
120.28(b)(3)).
    Certain references to the Treasury Department have been amended to 
the Attorney General, and other references to Treasury have been 
amended to the Department of Justice, as appropriate, because the 
Bureau of Alcohol, Tobacco and Firearms (ATF) was transferred to the 
Department of Justice and ATF's name was changed to Bureau of Alcohol, 
Tobacco, Firearms and Explosives (Sec. Sec.  120.5, 120.18, 123.2 and 
126.11). Also, the reference to 31 CFR part 505 has been changed to 27 
CFR part 447 and 15 CFR parts 768-799 have been changed to 15 CFR parts 
730-799 at Sec.  120.5. References to 27 CFR parts 47, 178 and 179 have 
been changed to 27 CFR parts 447, 478, 479, and 555 at Sec. Sec.  
120.18 and 123.2. Reference to 27 CFR 178.115(d) has been changed to 27 
CFR 478.115(d) at Sec.  123.17(d).
    Numerous typographical errors are being corrected in the United 
States Munitions List, Sec.  121.1, Categories V and XV.
    References to ``technical data'' and ``defense service'' have been 
corrected in Sec.  121.1, Categories IV, V, XI, XII, XIV, XVII, XX, and 
XXI. Cross references have been corrected (Sec. Sec.  120.1(c), 
120.10(a)(1), 120.16, 121.1(b), 121.1 Category V(g)(2), 121.1 Category 
V(g)(5), 121.1 Category V(g)(6), 121.1 Category V(g)(7), 121.1 Category 
V(g)(8), 124.2(c)(5)(ix), 126.7(a), 127.8(a), 127.9 and 127.11(c)). 
Typographical mistakes have been corrected in Sec.  121.1, Category 
V(a)(1); Sec.  121.1, Category V(a)(5); Sec.  121.1, Category V(a)(9); 
Sec.  121.1, Category V(a)(15)(i); Sec.  121.1, Category V(a)(20)(i); 
Sec.  121.1, Category V(a)(24)(ii); Sec.  121.1, Category V(a)(29); 
Sec.  121.1, Category V(a)(31)(i); Sec.  121.1, Category V(a)(31)(ii); 
Sec.  121.1, Category V(a)(31)(iv); Sec.  121.1, Category V(c)(8); 
Sec.  121.1, Category V(c)(9); Sec.  121.1, Category V(e)(2); Sec.  
121.1, Category V(e)(9); Sec.  121.1, Category V(e)(13); Sec.  121.1, 
Category V(e)(14); Sec.  121.1, Category V(f)(3)(iv); Sec.  121.1, 
Category V(f)(14); Sec.  121.1, Category V(f)(15); Sec.  121.1, 
Category V(f)(17); Sec.  121.1, Category XV(d)(1); Sec.  121.1, 
Category XV(d)(2); Sec.  121.1, Category XV(d)(3); Sec.  121.1, 
Category XV(d)(5); Sec.  121.16, Item 1-Category 1; Sec.  121.16, Item 
4-Category II; Sec.  121.16, Item 9-Category II; Sec.  121.16, Item 12-
Category II; Sec.  121.16, Note to Item 18(a); and in Sec. Sec.  
123.16(b)(2)(v), 126.5(c)(4)(v), 126.14(a)(3)(iv), 127.3(b), 
128.7(a)(1)(ii), and 130.5(b)(1). CAS numbers were added in Sec.  
121.1, Category V(a)(2); Sec.  121.1, Category V(a)(31)(vii); Sec.  
121.1, Category V(a)(34); Sec.  121.1, Category V(e)(11); Sec.  121.1, 
Category V(e)(13); and Sec.  121.1, Category V(e)(15). The ``Director 
of the Office of Defense Trade Controls'' has been changed to the 
``Director, Office of Defense Trade Controls Policy''

[[Page 20535]]

at Category XXI-Miscellaneous Articles in Sec.  121.1.
    ``Registration Statement'' has been amended to ``Statement of 
Registration'' (Sec. Sec.  122.2(b), 122.4(a)(2), 124.1(b), 125.3(a), 
126.13(c), and 129.4(a) and (b)).
    ``Defense Investigative Service'' has been amended to ``Defense 
Security Service'' (Sec. Sec.  123.6, 125.3(a), 125.9 and 127.5). The 
``Industrial Security Manual'' has been changed to the ``National 
Industrial Security Program Operating Manual'' (Sec. Sec.  124.3(b)(2), 
125.3(b), 125.4(b)(9)(iii), 125.5(a), 125.5(b), 125.7(b), 125.9 and 
127.5). Clarification has been made relating to the authority of the 
Secretary of State to impose different conditions on exports apart from 
those imposed by the Department of Defense. The ``Directorate for 
Freedom of Information and Security Review'' has been amended to 
``Office of Freedom of Information and Security Review'' (Sec.  
125.4(b)(13)).
    Reference to 49 U.S.C. 1508 has been updated to 49 U.S.C. 40103 
regarding overflight approval at Sec.  126.6(b). Reference to 15 CFR 
part 388 has been updated to 15 CFR part 720 at Sec.  126.7(a)(6).
    Additional language has been added to clarify Sec.  127.1(a): 
reexporting or retransferring or attempting to reexport or retransfer 
from one foreign destination to another foreign destination by a U.S. 
Person of any defense article or technical data or by anyone of any 
U.S. origin defense article or technical data, or to furnish a defense 
service for which a license or written approval is required by the 
ITAR; engaging in the business of either manufacturing or exporting 
defense articles or furnishing defense services without complying with 
the registration requirements of the ITAR; and, engaging in the 
business of brokering activities without complying with the 
registration requirements of the ITAR or obtaining a license or written 
approval as required by the ITAR.
    In addition, we have clarified that the ``business of manufacturing 
or exporting defense articles or furnishing defense services'' includes 
participating in one action and does not require more than one action 
(Sec. Sec.  122.1(a) and 127.1(a)). The potential harm to the security 
or foreign policy of the United States by even one unregulated action 
to facilitate the manufacture, export, or import of a defense article 
or defense service warrants the need to subject such actions to 
regulation under this subchapter.
    Also, Sec.  127.1(d) has been clarified by adding ``knowingly.''
    ``Under Secretary for International Security Affairs'' has been 
amended to the ``Under Secretary for Arms Control and International 
Security'' (Sec. Sec.  127.7(d) and 127.8(b)). ``Arms Control and 
International Security Affairs'' has been amended to ``Arms Control and 
International Security'' (Sec. Sec.  128.13(a), 128.13(c), 
128.13(e)(2), and 128.13(f)).
    In Sec.  128.2, reference to the Department of Commerce appointing 
the Administrative Law Judge has been deleted. Sec.  128.5(c) has been 
changed from sending the ``answer'' to the Office of Administrative Law 
Judge, United States Department of Commerce, to the designated 
Administrative Law Judge.
    In Sec.  129.2, the definition of brokering activities has been 
clarified to reflect that the ``business of brokering activities'' 
includes participating in one or more actions as described in the 
definition. The potential harm to the security or foreign policy of the 
United States by even one unregulated brokering action warrants the 
need to subject such action or actions to regulation under this 
subchapter.
    In Sec.  129.4, language has been added to make it clear that the 
registration requirements for brokers are not meant to exclude foreign 
persons from registering as brokers. Where foreign persons cannot 
provide the same information that a U.S. person would provide, they 
still are required to submit information that is substantially similar 
in content to that which would be provided by a U.S. person.
    References to Sec.  36(a)(8) of the Arms Export Control Act and 22 
U.S.C. 2776(a)(8) have been updated to Sec.  36(a)(7) and 22 U.S.C. 
2776(a)(7) pertaining to submitting Part 130 reports to Congress as 
contained in Sec.  130.17(a).
    In Sec.  120.27, the listed criminal statutes have been updated to 
reflect corresponding changes to Sec.  38(g)(1)(A) of the Arms Export 
Control Act.
    In addition, other minor changes have been made in various sections 
to clarify the authority of particular offices and officials or to 
clarify the underlying purpose of the specific section.

Regulatory Analysis and Notices

Administrative Procedure Act

    This amendment involves a foreign affairs function of the United 
States and, therefore, is not subject to the procedures required by 5 
U.S.C. 553 and 554.

Regulatory Flexibility Act

    This rule does not require analysis under the Regulatory 
Flexibility Act.

Unfunded Mandates Act of 1995

    This rule does not require analysis under the Unfunded Mandates 
Reform Act.

Small Business Regulatory Enforcement Fairness Act of 1996

    This amendment has been found not to be a major rule within the 
meaning of the Small Business Regulatory Enforcement Fairness Act of 
1996. It will not have substantial direct effects on the States, the 
relationship between the National Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government.

Executive Orders 12372 and 13132

    It is determined that this rule does not have sufficient federalism 
implications to warrant application of the consultation provisions of 
Executive Orders 12372 and 13132.

Executive Order 12866

    This amendment is exempt from review under Executive Order 12866, 
but has been reviewed internally by the Department of State to ensure 
consistency with the purposes thereof.

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.

List of Subjects

22 CFR Parts 120 and 125

    Arms and munitions, Classified information, Exports.

22 CFR Part 121

    Arms and munitions, Exports, U.S. Munitions List.

22 CFR Part 122

    Arms and munitions, Exports, Reporting and recordkeeping 
requirements.

22 CFR Parts 123 and 126

    Arms and munitions, Exports.

22 CFR Parts 124 and 129

    Arms and munitions, Exports, Technical assistance.

22 CFR Part 127

    Arms and munitions, Crime, Exports, Penalties, Seizures and 
forfeitures.

22 CFR Part 128

    Administrative practice and procedures, Arms and munitions, 
Exports.

[[Page 20536]]

22 CFR Part 130

    Arms and munitions, Campaign funds, Confidential business 
information, Exports, Reporting and recordkeeping requirements.


0
Accordingly, for the reasons set forth above, Title 22, Chapter I, 
Subchapter M, parts 120, 121, 122, 123, 124, 125, 126, 127, 128, 129 
and 130 are amended as follows:

PART 120--PURPOSE AND DEFINITIONS

0
1. The authority citation for part 120 is revised 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. 2794; E.O. 11958, 42 FR 4311; 
E.O. 13284, 68 FR 4075; 3 CFR, 1977 Comp. p. 79; 22 U.S.C. 2651a; 
Pub. L. 105-261, 112 Stat. 1920.


0
2. Section 120.1 is amended by revising paragraphs (b)(2) and (c) to 
read as follows:


Sec.  120.1  General authorities and eligibility.

* * * * *
    (b) * * *
    (1) * * *
    (2) In the Bureau of Political-Military Affairs, there is a Deputy 
Assistant Secretary for Defense Trade Controls (DAS--Defense Trade 
Controls) and a Managing Director of Defense Trade Controls (MD--
Defense Trade Controls). The DAS--Defense Trade Controls and the MD--
Defense Trade Controls are responsible for exercising the authorities 
conferred under this subchapter. The DAS--Defense Trade Controls is 
responsible for oversight of the defense trade controls function. The 
MD--Defense Trade Controls is responsible for the Directorate of 
Defense Trade Controls, which oversees the subordinate offices 
described in paragraphs (b)(2)(i) through (b)(2)(iv) of this section.
    (i) The Office of Defense Trade Controls Management and the 
Director, Office of Defense Trade Controls Management, which have 
responsibilities related to management of defense trade controls 
operations, to include the exercise of general authorities in this part 
120, and the design, development, and refinement of processes, 
activities, and functional tools for the export licensing regime and to 
effect export compliance/enforcement activities;
    (ii) The Office of Defense Trade Controls Licensing and the 
Director, Office of Defense Trade Controls Licensing, which have 
responsibilities related to licensing or other authorization of defense 
trade, including references under parts 120, 123, 124, 125, 126, 129 
and 130 of this subchapter;
    (iii) The Office of Defense Trade Controls Compliance and the 
Director, Office of Defense Trade Controls Compliance, which have 
responsibilities related to violations of law or regulation and 
compliance therewith, including references contained in parts 122, 126, 
127, 128 and 130 of this subchapter, and that portion under part 129 of 
this subchapter pertaining to registration;
    (iv) The Office of Defense Trade Controls Policy and the Director, 
Office of Defense Trade Controls Policy, which have responsibilities 
related to the general policies of defense trade, including references 
under this part 120 and part 126 of this subchapter, and the commodity 
jurisdiction procedure under this subchapter, including under this part 
120.
    (c) Eligibility. Only U.S. persons (as defined in Sec.  120.15) and 
foreign governmental entities in the United States may be granted 
licenses or other approvals (other than retransfer approvals sought 
pursuant to this subchapter). Foreign persons (as defined in Sec.  
120.16) other than governments are not eligible. U.S. persons who have 
been convicted of violating the criminal statutes enumerated in Sec.  
120.27, who have been debarred pursuant to part 127 or 128 of this 
subchapter, who are the subject of an indictment involving the criminal 
statutes enumerated in Sec.  120.27, who are ineligible to contract 
with, or to receive a license or other form of authorization to import 
defense articles or defense services from any agency of the U.S. 
Government, who are ineligible to receive export licenses (or other 
forms of authorization to export) from any agency of the U.S. 
Government, who are subject to Department of State Suspension/
Revocation under Sec.  126.7(a)(1) through (a)(7) of this subchapter, 
or who are ineligible under Sec.  127.7(c) of this subchapter are 
generally ineligible. Applications for licenses or other approvals will 
be considered only if the applicant has registered with the Directorate 
of Defense Trade Controls pursuant to part 122 of this subchapter. All 
applications and requests for approval must be signed by a U.S. person 
who has been empowered by the registrant to sign such documents.
* * * * *

0
3. Section 120.4 is amended by revising paragraphs (a), (b), 
(d)(3)(ii), (d)(3)(iii), (e), and (g), to read as follows:


Sec.  120.4  Commodity jurisdiction.

    (a) The commodity jurisdiction procedure is used with the U.S. 
Government if doubt exists as to whether an article or service is 
covered by the U.S. Munitions List. It may also be used for 
consideration of a redesignation of an article or service currently 
covered by the U.S. Munitions List. The Department must provide notice 
to Congress at least 30 days before any item is removed from the U.S. 
Munitions List. Upon written request, the Directorate of Defense Trade 
Controls shall provide a determination of whether a particular article 
or service is covered by the U.S. Munitions List. The determination, 
consistent with Sec. Sec.  120.2, 120.3, and 120.4, entails 
consultation among the Departments of State, Defense, Commerce and 
other U.S. Government agencies and industry in appropriate cases.
    (b) Registration with the Directorate of Defense Trade Controls as 
defined in part 122 of this subchapter is not required prior to 
submission of a commodity jurisdiction request. If it is determined 
that the commodity is a defense article or defense service covered by 
the U.S. Munitions List, registration is required for exporters, 
manufacturers, and furnishers of such defense articles and defense 
services (see part 122 of this subchapter), as well as for brokers who 
are engaged in brokering activities related to such articles or 
services.
* * * * *
    (d) * * *
    (3) * * *
    (ii) The nature of controls imposed by other nations on such items 
(including Wassenaar Arrangement and other multilateral controls), and
    (iii) That items described on the Wassenaar Arrangement List of 
Dual-Use Goods and Technologies shall not be designated defense 
articles or defense services unless the failure to control such items 
on the U.S. Munitions List would jeopardize significant national 
security or foreign policy interests.
    (e) The Directorate of Defense Trade Controls will provide a 
preliminary response within 10 working days of receipt of a complete 
request for commodity jurisdiction. If after 45 days the Directorate of 
Defense Trade Controls has not provided a final commodity jurisdiction 
determination, the applicant may request in writing to the Director, 
Office of Defense Trade Controls Policy that this determination be 
given expedited processing.
* * * * *
    (g) A person may appeal a commodity jurisdiction determination by

[[Page 20537]]

submitting a written request for reconsideration to the Managing 
Director of the Directorate of Defense Trade Controls. The Directorate 
of Defense Trade Controls will provide a written response of the 
Managing Director's determination within 30 days of receipt of the 
appeal. If desired, an appeal of the Managing Director's decision can 
then be made directly through the Deputy Assistant Secretary for 
Defense Trade Controls to the Assistant Secretary for Political-
Military Affairs.

0
4. Section 120.5 is revised to read as follows:


Sec.  120.5  Relation to regulations of other agencies.

    If an article or service is covered by the U.S. Munitions List, its 
export is regulated by the Department of State, except as indicated 
otherwise in this subchapter. For the relationship of this subchapter 
to regulations of the Department of Energy and the Nuclear Regulatory 
Commission, see Sec.  123.20 of this subchapter. The Attorney General 
controls permanent imports of articles and services covered by the U.S. 
Munitions Import List from foreign countries by persons subject to U.S. 
jurisdiction (27 CFR part 447). In carrying out such functions, the 
Attorney General shall be guided by the views of the Secretary of State 
on matters affecting world peace, and the external security and foreign 
policy of the United States. The Department of Commerce regulates the 
export of items on the Commerce Control List (CCL) under the Export 
Administration Regulations (15 CFR parts 730 through 799).

0
5. Section 120.10 is amended by revising paragraph (a)(1) to read as 
follows:


Sec.  120.10  Technical data.

    (a) * * *
    (1) Information, other than software as defined in Sec.  
120.10(a)(4), which is required for the design, development, 
production, manufacture, assembly, operation, repair, testing, 
maintenance or modification of defense articles. This includes 
information in the form of blueprints, drawings, photographs, plans, 
instructions or documentation.
* * * * *

0
6. Section 120.12 is revised to read as follows:


Sec.  120.12  Directorate of Defense Trade Controls.

    Directorate of Defense Trade Controls, Bureau of Political-Military 
Affairs, Department of State, Washington, DC 20522-0112.

0
7. Section 120.15 is revised to read as follows:


Sec.  120.15  U.S. person.

    U.S. person means a person (as defined in Sec.  120.14 of this 
part) who is a lawful permanent resident as defined by 8 U.S.C. 
1101(a)(20) or who is a protected individual as defined by 8 U.S.C. 
1324b(a)(3). It also means any corporation, business association, 
partnership, society, trust, or any other entity, organization or group 
that is incorporated to do business in the United States. It also 
includes any governmental (federal, state or local) entity. It does not 
include any foreign person as defined in Sec.  120.16 of this part.

0
8. Section 120.16 is revised to read as follows:


Sec.  120.16  Foreign person.

    Foreign person means any natural person who is not a lawful 
permanent resident as defined by 8 U.S.C. 1101(a)(20) or who is not a 
protected individual as defined by 8 U.S.C. 1324b(a)(3). It also means 
any foreign corporation, business association, partnership, trust, 
society or any other entity or group that is not incorporated or 
organized to do business in the United States, as well as international 
organizations, foreign governments and any agency or subdivision of 
foreign governments (e.g., diplomatic missions).

0
9. Section 120.18 is revised to read as follows:


Sec.  120.18  Temporary import.

    Temporary import means bringing into the United States from a 
foreign country any defense article that is to be returned to the 
country from which it was shipped or taken, or any defense article that 
is in transit to another foreign destination. Temporary import includes 
withdrawal of a defense article from a customs bonded warehouse or 
foreign trade zone for the purpose of returning it to the country of 
origin or country from which it was shipped or for shipment to another 
foreign destination. Permanent imports are regulated by the Attorney 
General under the direction of the Department of Justice's Bureau of 
Alcohol, Tobacco, Firearms, and Explosives (see 27 CFR parts 447, 478, 
479, and 555).

0
10. Section 120.20 is revised to read as follows:


Sec.  120.20  License.

    License means a document bearing the word ``license'' issued by the 
Directorate of Defense Trade Controls or its authorized designee which 
permits the export or temporary import of a specific defense article or 
defense service controlled by this subchapter.

0
11. Section 120.27 is amended by revising paragraph (a)(3) and adding a 
new paragraph (a)(13) to read as follows:


Sec.  120.27  U.S. criminal statutes.

    (a) * * *
    (3) Sections 793, 794, or 798 of title 18, United States Code 
(relating to espionage involving defense or classified information) or 
Sec.  2339A of such title (relating to providing material support to 
terrorists);
* * * * *
    (13) Sections 3, 4, 5, and 6 of the Prevention of Terrorist Access 
to Destructive Weapons Act of 2004, relating to missile systems 
designed to destroy aircraft (18 U.S.C. 2332g), prohibitions governing 
atomic weapons (42 U.S.C. 2122), radiological dispersal services (18 
U.S.C. 2332h), and variola virus (18 U.S.C. 175b);
* * * * *

0
12. Section 120.28 is amended by revising paragraphs (a) introductory 
text and (b)(3) to read as follows:


Sec.  120.28  Listing of forms referred to in this subchapter.

* * * * *
    (a) Department of State, Bureau of Political-Military Affairs, 
Directorate of Defense Trade Controls, Washington, DC 20522-0112.
* * * * *
    (b) * * *
    (3) Department of Defense, Defense Security Cooperation Agency: 
Letter of Offer and Acceptance (DD Form 1513).

PART 121--THE UNITED STATES MUNITIONS LIST

0
13. The authority citation for part 121 is revised to read as follows:

    Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778, 2797); E.O. 11958, 42 FR 4311; 3 CFR, 1977 Comp. 
p. 79; 22 U.S.C. 2651a; Pub. L. 105-261, 112 Stat. 1920.


0
14. Section 121.1 is revised to read as follows:
0
A. Revise paragraphs (a) and (b)
0
B. In paragraph (c) in Category IV revise paragraph (i)
0
C. In paragraph (c) in Category V revise paragraphs (a)(1), (a)(2), 
(a)(5), (a)(9), (a)(15)(i), (a)(20)(i), (a)(24)(ii), (a)(29), 
(a)(31)(i), (a)(31)(ii), (a)(31)(iv), (a)(31)(vii), (a)(34), (c)(8), 
(c)(9), (e)(2), (e)(9), (e)(11), (e)(13), (e)(14), (e)(15), (f)(3)(iv), 
(f)(14), (f)(15), (f)(17), (g)(2), (g)(5), (g)(6), (g)(7), (g)(8), and 
(h)
0
D. In paragraph (c) in Category XI revise paragraph (d)
0
E. In paragraph (c) in Category XII revise paragraph (f)

[[Page 20538]]

0
F. In paragraph (c) in Category XIV revise paragraph (m)
0
G. In paragraph (c) in Category XV revise paragraphs (d)(1), (d)(2), 
(d)(3), and (d)(5)
0
H. In paragraph (c) in Category XVII revise paragraph (a)
0
I. In paragraph (c) in Category XX revise paragraph (d)
0
J. In paragraph (c) in Category XXI revise paragraphs (a) and (b)


Sec.  121.1  General. The United States Munitions List.

    (a) The following articles, services and related technical data are 
designated as defense articles and defense services pursuant to 
Sec. Sec.  38 and 47(7) of the Arms Export Control Act (22 U.S.C. 2778 
and 2794(7)). Changes in designations will be published in the Federal 
Register. Information and clarifications on whether specific items are 
defense articles and services under this subchapter may appear 
periodically through the Internet Web site of the Directorate of 
Defense Trade Controls.
    (b) Significant Military Equipment: An asterisk precedes certain 
defense articles in the following list. The asterisk means that the 
article is deemed to be ``Significant Military Equipment'' to the 
extent specified in Sec.  120.7 of this subchapter. The asterisk is 
placed as a convenience to help identify such articles. Note that 
technical data directly related to the manufacture or production of any 
defense articles enumerated in any category that are designated as 
Significant Military Equipment (SME) shall itself be designed SME.
    (c) * * *
* * * * *

Category IV--Launch Vehicles, Guided Missiles, Ballistic Missiles, 
Rockets, Torpedoes, Bombs and Mines

* * * * *
    (i) Technical data (as defined in Sec.  120.10 of this 
subchapter) and defense services (as defined in Sec.  120.9 of this 
subchapter) directly related to the defense articles enumerated in 
paragraphs (a) through (h) of this category. (See Sec.  125.4 of 
this subchapter for exemptions.) Technical data directly related to 
the manufacture or production of any defense articles enumerated 
elsewhere in this category that are designated as Significant 
Military Equipment (SME) shall itself be designated SME.

Category V--Explosives and Energetic Materials, Propellants, Incendiary 
Agents and Their Constituents

    (a) * * *
    (1) ADNBF (aminodinitrobenzofuroxan or 7-Amino 4,6-
dinitrobenzofurazane-1-oxide) (CAS 97096-78-1);
    (2) BNCP (cis-bis (5-nitrotetrazolato) tetra amine-cobalt (III) 
perchlorate) (CAS 117412-28-9);
* * * * *
    (5) CP (2-(5-cyanotetrazolato) penta aminecobalt (III) 
perchlorate); (CAS 70247-32-4);
* * * * *
    (9) DIPAM (3,3'-Diamino-2,2',4,4',6,6'-hexanitrobiphenyl or 
dipicramide) (CAS 17215-44-0);
* * * * *
    (15) * * *
    (i) BNNII (Octohydro-2,5-bis(nitroimino) imidazo [4,5-
d]Imidazole);
* * * * *
    (20) * * *
    (i) RDX (cyclotrimethylenetrinitramine), cyclonite, T4, 
hexahydro-1,3,5-trinitro-1,3,5-triazine, 1,3,5-trinitro-1,3,5-
triaza-cyclohexane, hexogen, or hexogene) (CAS 121-82-4);
* * * * *
    (24) * * *
* * * * *
    (ii) NTNT (1-N-(2-nitrotriazolo)-4-nitrotetrazole);
* * * * *
    (29) TNP (1,4,5,8-tetranitro-pyridazino [4,5-d] pyridazine) (CAS 
229176-04-9);
* * * * *
    (31) * * *
    (i) 5-azido-2-nitrotriazole;
    (ii) ADHTDN (4-amino-3,5-dihydrazino-1,2,4-triazole 
dinitramide)(CAS 1614-08-0);
* * * * *
    (iv) BDNTA ([Bis-dinitrotriazole]amine);
* * * * *
    (vii) NTDNA (2-nitrotriazole 5-dinitramide) (CAS 75393-84-9);
* * * * *
    (34) Diaminotrinitrobenzene (DATB) (CAS 1630-08-6);
* * * * *
    (c) * * *
    (8) Titanium subhydride (TiHn) of stoichiometry equivalent to n 
= 0.65-1.68;
    (9) Military materials containing thickeners for hydrocarbon 
fuels specially formulated for use in flame throwers or incendiary 
munitions; metal stearates or palmates (also known as octol); and 
M1, M2 and M3 thickeners;
* * * * *
    (e) * * *
    (2) BAMO (bisazidomethyloxetane and its polymers) (CAS 17607-20-
4) (see paragraph (g)(1)of this category);
* * * * *
    (9) Poly-NIMMO (poly nitratomethylmethyoxetane, poly-NMMO, 
(poly[3-nitratomethyl-3-methyl oxetane]) (CAS 84051-81-0);
* * * * *
    (11) TVOPA 1,2,3-Tris [1,2-bis(difluoroamino) ethoxy]propane; 
tris vinoxy propane adduct; (CAS 53159-39-0);
* * * * *
    (13) FPF-1 (poly-2,2,3,3,4,4-hexafluoro pentane-1,5-diolformal) 
(CAS 376-90-9);
    (14) FPF-3 (poly-2,4,4,5,5,6,6-heptafluoro-2-trifluoromethyl-3-
oxaheptane-1,7-diolformal);
    (15) PGN (Polyglycidylnitrate or poly(nitratomethyl oxirane); 
poly-GLYN); (CAS 27814-48-8);
* * * * *
    (f) * * *
    (3) * * *
    (iv) n-butyl-ferrocene (CAS 31904-29-7);
* * * * *
    (14) Polyfunctional aziridine amides with isophthalic, trimesic 
(BITA or butylene imine trimesamide), isocyanuric, or 
trimethyladipic backbone structures and 2-methyl or 2-ethyl 
substitutions on the aziridine ring and its polymers;
    (15) Superfine iron oxide (Fe2O3 hematite) 
with a specific surface area more than 250 m\2\/g and an average 
particle size of 0.003 [micro]m or less (CAS 1309-37-1);
* * * * *
    (17) TEPANOL (Tetraethylenepentaamineacrylo- nitrileglycidol) 
(CAS 110445-33-5); cyanoethylated polyamines adducted with glycidol 
and their salts;
* * * * *
    (g) * * *
    (2) Dinitroazetidine-t-butyl salt (CAS 125735-38-8) (see 
paragraph (a)(27) of this category);
* * * * *
    (5) TAT (1, 3, 5, 7-tetraacetyl-1, 3, 5, 7-tetraaza-cyclooctane) 
(CAS 41378-98-7) (see paragraph (a)(12) of this category);
    (6) Tetraazadecalin (CAS 5409-42-7) (see paragraph (a)(26) of 
this category);
    (7) 1,3,5-trichorobenzene (CAS 108-70-3) (see paragraph (a)(22) 
of this category);
    (8) 1,2,4-trihydroxybutane (1,2,4-butanetriol) (CAS 3068-00-6) (see 
paragraph (e)(3) of this category);
    (h) Technical data (as defined in Sec.  120.10 of this subchapter) 
and defense services (as defined in Sec.  120.9 of this subchapter) 
directly related to the defense articles numerated in paragraphs (a) 
through (g) of this category. (See Sec.  125.4 of this subchapter for 
exemptions.) Technical data directly related to the manufacture or 
production of any defense articles enumerated elsewhere in this 
category that are designated as Significant Military Equipment (SME) 
shall itself be designated SME.
* * * * *

Category XI--Military Electronics

* * * * *
    (d) Technical data (as defined in Sec.  120.10) and defense 
services (as defined in Sec.  120.9) directly related to the defense 
articles enumerated in paragraphs (a) through (c) of this category. 
(See Sec.  125.4 for exemptions.) Technical data directly related to 
the manufacture or production of any defense articles enumerated 
elsewhere in this category that are designated as Significant Military 
Equipment (SME) shall itself be designated as SME.

Category XII--Fire Control, Range Finder, Optical and Guidance and 
Control Equipment

* * * * *

[[Page 20539]]

    (f) Technical data (as defined in Sec.  120.10) and defense 
services (as defined in Sec.  120.9) directly related to the defense 
articles enumerated in paragraphs (a) through (e) of this category. 
(See Sec.  125.4 for exemptions.) Technical data directly related to 
manufacture and production of any defense articles enumerated elsewhere 
in this category that are designated as Significant Military Equipment 
(SME) shall itself be designated as SME.
* * * * *

Category XIV--Toxicological Agents, Including Chemical Agents, 
Biological Agents, and Associated Equipment

* * * * *
    (m) Technical data (as defined in Sec.  120.10 of this subchapter) 
and defense services (as defined in Sec.  120.9 of this subchapter) 
related to the defense articles enumerated in paragraphs (a) through 
(l) of this category. (See Sec.  125.4 of this subchapter for 
exemptions.) Technical data directly related to the manufacture or 
production of any defense articles enumerated elsewhere in this 
Category that are designated as Significant Military Equipment (SME) 
shall itself be designated as SME.
* * * * *

Category XV--Spacecraft Systems and Associated Equipment

* * * * *
    (d) * * *
    (1) A total dose of 5 x 10\5\ Rads (SI);
    (2) A dose rate upset of 5 x 10\8\ Rads (SI)/sec;
    (3) A neutron dose of 1 x 10\14\ N/cm2;
* * * * *
    (5) Single event latch-up free and having a dose rate latch-up of 5 
x 10\8\ Rads (SI)/sec or greater.
* * * * *

Category XVII--Classified Articles, Technical Data and Defense Services 
Not Otherwise Enumerated

    (a) All articles, technical data (as defined in Sec.  120.10 of 
this subchapter) and defense services (as defined in Sec.  120.9 of 
this subchapter) relating thereto which are classified in the interests 
of national security and which are not otherwise enumerated in the U.S. 
Munitions List.
* * * * *

Category XX--Submersible Vessels, Oceanographic and Associated 
Equipment

* * * * *
    (d) Technical data (as defined in Sec.  120.10 of this subchapter) 
and defense services (as defined in Sec.  120.9 of this subchapter) 
directly related to the defense articles enumerated in paragraphs (a) 
through (c) of this category. (See Sec.  125.4 of this subchapter for 
exemptions.) Technical data directly related to the manufacture or 
production of any defense articles enumerated elsewhere in this 
Category that are designated as Significant Military Equipment (SME) 
shall itself be designated as SME.

Category XXI--Miscellaneous Articles

    (a) Any article not specifically enumerated in the other categories 
of the U.S. Munitions List which has substantial military applicability 
and which has been specifically designed, developed, configured, 
adapted, or modified for military purposes. The decision on whether any 
article may be included in this category shall be made by the Director, 
Office of Defense Trade Controls Policy.
    (b) Technical data (as defined in Sec.  120.10 of this subchapter) 
and defense services (as defined in Sec.  120.9 of this subchapter) 
directly related to the defense articles enumerated in paragraph (a) of 
this category.


0
15. Section 121.16 is amended as follows:
0
A. Revise Item 1--Category I.
0
B. Revise Item 4--Category II.
0
C. In Item 9--Category II revise paragraph (b).
0
D. In Item 12--Category II revise paragraph (d)(2) introductory text.
0
E. In Item 18--Category II revise Note to Item 18(a).


Sec.  121.16  Missile Technology Control Regime Annex.

* * * * *

Item 1--Category I

    Complete rocket systems (including ballistic missile systems, 
space launch vehicles, and sounding rockets (see Sec.  121.1, Cat. 
IV(a) and (b))) and unmanned air vehicle systems (including cruise 
missile systems, see Sec.  121.1, Cat. VIII (a), target drones and 
reconnaissance drones (see Sec.  121.1, Cat. VIII (a))) capable of 
delivering at least a 500 kg payload to a range of at least 300 km.
* * * * *

Item 4--Category II

    Propellants and constituent chemicals for propellants as 
follows:
    (a) Propulsive substances:
    (1) Hydrazine with a concentration of more than 70 percent and 
its derivatives including monomethylhydrazine (MMH);
    (2) Unsymmetric dimethylhydrazine (UDHM);
    (3) Ammonium perchlorate;
    (4) Sphercical aluminum powder with particle of uniform diameter 
of less than 500 x 10-\6\M (500 microns) and an aluminum 
content of 97 percent or greater;
    (5) Metal fuels in particle sizes less than 500 x 
10-\6\M (500 microns), whether spherical, atomized, 
spheriodal, flaked or ground, consisting of 97 percent or more of 
any of the following: zirconium, beryllium, boron, magnesium, zinc, 
and alloys of these;
    (6) Nitroamines (cyclotetramethylenetetranitramene (HMX), 
cyclotrimethylenetrinitramine (RDX);
    (7) Percholrates, chlorates or chromates mixed with powdered 
metals or other high energy fuel components;
    (8) Carboranes, decaboranes, pentaboranes and derivatives 
thereof;
    (9) Liquid oxidizers, as follows:
    (i) Nitrogen dioxide/dinitrogen tetroxide;
    (ii) Inhibited Red Fuming Nitric Acid (IRFNA);
    (iii) Compounds composed of fluorine and one or more of other 
halogens, oxygen or nitrogen.
    (b) Polymeric substances:
    (1) Hydroxyterminated polybutadiene (HTPB);
    (2) Glycidylazide polymer (GAP).
    (c) Other high energy density propellants such a Boron Slurry 
having an energy density of 40 x 10 joules/kg or greater.
    (d) Other propellants additives and agents:
    (1) Bonding agents as follows:
    (i) Tris (1(2methyl)aziridinyl phosphine oxide (MAPO);
    (ii) Trimesol 1(2)ethyl)aziridine (HX868, BITA);
    (iii) ``Tepanol'' (HX878), reaction product of 
tetraethylenepentamine, acrylonitrile and glycidol;
    (iv) ``Tepan'' (HX879), reaction product of tet enepentamine and 
acrylonitrile;
    (v) Polyfunctional aziridene amides with isophthalic, trimesic, 
isocyanuric, or trimethyladipic backbone also having a 2methyl or 
2ethyl aziridine group (HX752, HX872 and HX877).
    (2) Curing agents and catalysts as follows:
    (i) Triphenyl bismuth (TPB);
    (ii) Burning rate modifiers as follows:
    (iii) Catocene;
    (iv) Nbutylferrocene;
    (v) Other ferrocene derivatives.
    (3) Nitrate esters and nitrato plasticizers as follows:
    (i) 1,2,4butanetriol trinitrate (BTTN).
    (4) Stabilizers as follows:
    (i) Nmethylpnitroaniline.
* * * * *

Item 9--Category II

* * * * *
    (b) Gyro-astro compasses and other devices which derive position 
or orientation by means of automatically tracking celestial bodies 
or satellites (see Sec.  121.1, Category XV(d));
* * * * *

Item 12--Category II

* * * * *
    (d) * * *
    (2) Range instrumentation radars including associated optical/
infrared trackers and the specially designed software therefor with 
all of the following capabilities (see Sec.  121.1, Category 
XI(a)(3)):
* * * * *

Item 18--Category II

* * * * *

Note to Item 18(a)

    A detector is defined as a mechanical, electrical, optical or 
chemical device that automatically identifies and records, or 
registers a stimulus such as an environmental change in pressure or 
temperature, an electrical or electromagnetic signal or radiation 
from a radioactive material. The following pages were removed from 
the final ITAR for replacement by DDTC's updated version Sec.  6(l) 
of the Export Administration Act of 1979 (50 U.S.C. App. 2405(l)), 
as amended. In accordance with this provision, the list of MTCR 
Annex items shall constitute all items on the U.S. Munitions List in 
Sec.  121.16.

[[Page 20540]]

PART 122--REGISTRATION OF MANUFACTURERS AND EXPORTERS

0
16. The authority citation for part 122 continues to read as follows:

    Authority: Secs. 2 and 38, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778); E.O. 11958, 42 FR 4311; 1977 Comp. p. 79; 22 
U.S.C. 2651a.


0
17. Section 122.1 is amended by revising paragraph (a) to read as 
follows:


Sec.  122.1  Registration requirements.

    (a) Any person who engages in the United States in the business of 
either manufacturing or exporting defense articles or furnishing 
defense services is required to register with the Directorate of 
Defense Trade Controls. For the purpose of this subchapter, engaging in 
the business of manufacturing or exporting defense articles or 
furnishing defense services requires only one occasion of manufacturing 
or exporting a defense article or furnishing a defense service. 
Manufacturers who do not engage in exporting must nevertheless 
register.
* * * * *

0
18. Section 122.2 is amended by revising paragraph (b) introductory 
text to read as follows:


Sec.  122.2  Submission of registration statement.

    (a) * * *
    (b) Transmittal letter. A letter of transmittal, signed by an 
authorized senior officer of the intended registrant, shall accompany 
each Statement of Registration.
* * * * *

0
19. Section 122.4 is amended by revising paragraphs (a) introductory 
text, (a)(2), (b), (c) introductory text, (c)(4) and (d) to read as 
follows:


Sec.  122.4  Notification of changes in information furnished by 
registrants.

    (a) A registrant must, within five days of the event, notify the 
Directorate of Defense Trade Controls by registered mail if:
* * * * *
    (2) There is a material change in the information contained in the 
Statement of Registration, including a change in the senior officers; 
the establishment, acquisition or divestment of a subsidiary or foreign 
affiliate; a merger; a change of location; or the dealing in an 
additional category of defense articles or defense services.
    (b) A registrant must notify the Directorate of Defense Trade 
Controls by registered mail at least 60 days in advance of any intended 
sale or transfer to a foreign person of ownership or control of the 
registrant or any entity thereof. Such notice does not relieve the 
registrant from obtaining the approval required under this subchapter 
for the export of defense articles or defense services to a foreign 
person, including the approval required prior to disclosing technical 
data. Such notice provides the Directorate of Defense Trade Controls 
with the information necessary to determine whether the authority of 
Sec.  38(g)(6) of the Arms Export Control Act regarding licenses or 
other approvals for certain sales or transfers of defense articles or 
data on the U.S. Munitions List should be invoked (see Sec. Sec.  
120.10 and 126.1(e) of this subchapter).
    (c) The new entity formed when a registrant merges with another 
company or acquires, or is acquired by, another company or a subsidiary 
or division of another company shall advise the Directorate of Defense 
Trade Controls of the following:
* * * * *
    (4) Amendments to agreements approved by the Directorate of Defense 
Trade Controls to change the name of a party to those agreements. The 
registrant must, within 60 days of this notification, provide to the 
Directorate of Defense Trade Controls a signed copy of an amendment to 
each agreement signed by the new U.S. entity, the former U.S. licensor 
and the foreign licensee. Any agreements not so amended will be 
considered invalid.
    (d) Prior approval by the Directorate of Defense Trade Controls is 
required for any amendment making a substantive change.

PART 123--LICENSES FOR THE EXPORT OF DEFENSE ARTICLES

0
20. The authority citation for part 123 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. 2753; E.O. 11958, 42 FR 4311; 3 
CFR, 1977 Comp. p. 79; 22 U.S.C. 2651a; 22 U.S.C. 2776; Pub. L. 105-
261, 112 Stat. 1920; Sec 1205(a), Pub. L. 107-228.

0
21. Section 123.1 is amended by revising paragraphs (a) introductory 
text and (c) introductory text to read as follows:


Sec.  123.1  Requirement for export or temporary import licenses.

    (a) Any person who intends to export or to import temporarily a 
defense article must obtain the approval of the Directorate of Defense 
Trade Controls prior to the export or temporary import, unless the 
export or temporary import qualifies for an exemption under the 
provisions of this subchapter. Applications for export or temporary 
import must be made as follows:
* * * * *
    (c) As a condition to the issuance of a license or other approval, 
the Directorate of Defense Trade Controls may require all pertinent 
documentary information regarding the proposed transaction and proper 
completion of the application form as follows:
* * * * *
0
22. Section 123.2 is revised to read as follows:


Sec.  123.2  Import jurisdiction.

    The Department of State regulates the temporary import of defense 
articles. Permanent imports of defense articles into the United States 
are regulated by the Department of the Justice's Bureau of Alcohol, 
Tobacco, Firearms and Explosives under the direction of the Attorney 
General (see 27 CFR parts 447, 478, 479, and 555).

0
23. Section 123.3 is amended by revising paragraph (a) introductory 
text to read as follows:


Sec.  123.3  Temporary import licenses.

    (a) A license (DSP-61) issued by the Directorate of Defense Trade 
Controls is required for the temporary import and subsequent export of 
unclassified defense articles, unless exempted from this requirement 
pursuant to Sec.  123.4. This requirement applies to:
* * * * *

0
24. Section 123.6 is revised to read as follows:


Sec.  123.6  Foreign trade zones and U.S. Customs and Border Protection 
bonded warehouses.

    Foreign trade zones in the United States and U.S. Customs and 
Border Protection bonded warehouses are considered integral parts of 
the United States for the purpose of this subchapter. An export license 
is therefore not required for shipment between the United States and a 
foreign trade zone or a U.S. Customs and Border Protection bonded 
warehouse. In the case of classified defense articles, the provisions 
of the Department of Defense National Industrial Security Program 
Operating Manual will apply. An export license is required for all 
shipments of articles on the U.S. Munitions List from foreign trade 
zones and U.S. Customs and Border Protection bonded warehouses to 
foreign countries, regardless of how the articles reached the zone or 
warehouse.

0
25. Section 123.8 is revised to read as follows:

[[Page 20541]]

Sec.  123.8  Special controls on vessels, aircraft and satellites 
covered by the U.S. Munitions List.

    (a) Transferring registration or control to a foreign person of any 
aircraft, vessel, or satellite on the U.S. Munitions List is an export 
for purposes of this subchapter and requires a license or written 
approval from the Directorate of Defense Trade Controls. This 
requirement applies whether the aircraft, vessel, or satellite is 
physically located in the United States or abroad.
    (b) The registration in a foreign country of any aircraft, vessel 
or satellite covered by the U.S. Munitions List which is not registered 
in the United States but which is located in the United States 
constitutes an export. A license or written approval from the 
Directorate of Defense Trade Controls is therefore required. Such 
transactions may also require the prior approval of the U.S. Department 
of Transportation's Maritime Administration, the Federal Aviation 
Administration or other agencies of the U.S. Government.

0
26. Section 123.9 is amended by revising paragraphs (a), (d), (e) 
introductory text, (e)(3) and (e)(4) to read as follows:


Sec.  123.9  Country of ultimate destination and approval of reexports 
or retransfers.

    (a) The country designated as the country of ultimate destination 
on an application for an export license, or on a Shipper's Export 
Declaration where an exemption is claimed under this subchapter, must 
be the country of ultimate end-use. The written approval of the 
Directorate of Defense Trade Controls must be obtained before 
reselling, transferring, transshipping, or disposing of a defense 
article to any end user, end use or destination other than as stated on 
the export license, or on the Shipper's Export Declaration in cases 
where an exemption is claimed under this subchapter. Exporters must 
ascertain the specific end-user and end-use prior to submitting an 
application to the Directorate of Defense Trade Controls or claiming an 
exemption under this subchapter.
* * * * *
    (d) The written approval of the Directorate of Defense Trade 
Controls must be obtained before reselling, transferring, transshipping 
on a non-continuous voyage, or disposing of a defense article in any 
country other than the country of ultimate destination, or anyone other 
than the authorized end-user, as stated on the Shipper's Export 
Declaration in cases where an exemption is claimed under this 
subchapter.
    (e) Reexports or retransfers of U.S.-origin components incorporated 
into a foreign defense article to a government of a NATO country, or 
the governments of Australia or Japan, are authorized without the prior 
written approval of the Directorate of Defense Trade Controls, 
provided:
* * * * *
    (3) The person reexporting the defense article must provide written 
notification to the Directorate of Defense Trade Controls of the 
retransfer not later than 30 days following the reexport. The 
notification must state the articles being reexported and the recipient 
government.
    (4) In certain cases, the Managing Director, Directorate of Defense 
Trade Controls or the Director, Office of Defense Trade Controls 
Licensing, may place retransfer restrictions on a license prohibiting 
use of this exemption.

0
27. Section 123.10 is revised to read as follows:


Sec.  123.10  Non-transfer and use assurances.

    (a) A nontransfer and use certificate (Form DSP-83) is required for 
the export of significant military equipment and classified articles, 
including classified technical data. A license will not be issued until 
a completed Form DSP-83 has been received by the Directorate of Defense 
Trade Controls. This form is to be executed by the foreign consignee, 
foreign end-user, and the applicant. The certificate stipulates that, 
except as specifically authorized by prior written approval of the 
Department of State, the foreign consignee and foreign end-user will 
not reexport, resell or otherwise dispose of the significant military 
equipment enumerated in the application outside the country named as 
the location of the foreign end-use or to any other person.
    (b) The Directorate of Defense Trade Controls may also require a 
DSP-83 for the export of any other defense articles, including 
technical data, or defense services.
    (c) When a DSP-83 is required for an export of any defense article 
or defense service to a non-governmental foreign end-user, the 
Directorate of Defense Trade Controls may require as a condition of 
issuing the license that the appropriate authority of the government of 
the country of ultimate destination also execute the certificate.

0
28. Section 123.11 is amended by revising paragraph (a) to read as 
follows:


Sec.  123.11  Movements of vessels and aircraft covered by the U.S. 
Munitions List outside the United States.

    (a) A license issued by the Directorate of Defense Trade Controls 
is required whenever a privately-owned aircraft or vessel on the U.S. 
Munitions List makes a voyage outside the United States.
* * * * *

0
29. Section 123.14 is amended by revising paragraph (b) to read as 
follows:


Sec.  123.14  Import certificate/delivery verification procedure.

    (a) * * *
    (b) Exports. The Directorate of Defense Trade Controls may require 
the IC/DV procedure on proposed exports of defense articles to non-
government entities in those countries participating in IC/DV 
procedures. In such cases, U.S. exporters must submit both an export 
license application (the completed Form DSP-5) and the original Import 
Certificate, which must be provided and authenticated by the government 
of the importing country. This document verifies that the foreign 
importer complied with the import regulations of the government of the 
importing country and that the importer declared the intention not to 
divert, transship or reexport the material described therein without 
the prior approval of that government. After delivery of the 
commodities to the foreign consignee, the Directorate of Defense Trade 
Controls may also require U.S. exporters to furnish Delivery 
Verification documentation from the government of the importing 
country. This documentation verifies that the delivery was in 
accordance with the terms of the approved export license. Both the 
Import Certificate and the Delivery Verification must be furnished to 
the U.S. exporter by the foreign importer.
* * * * *

0
30. Section 123.16 is amended by revising paragraph (b)(2)(v) to read 
as follows:


Sec.  123.16  Exemptions of general applicability.

    (a) * * *
    (b) * * *
    (2) * * *
    (v) the exporter may not make more than 24 shipments per calendar 
year to the previously authorized end user;
* * * * *

0
31. Section 123.17 is amended by revising paragraph (d) to read as 
follows:


Sec.  123.17  Exports of firearms and ammunition.

* * * * *
    (d) Port Directors of U.S. Customs and Border Protection shall 
permit a foreign person to export without a license such firearms in 
Category I(a) of Sec.  121.1 of this subchapter and ammunition

[[Page 20542]]

therefor as the foreign person brought into the United States under the 
provisions of 27 CFR 478.115(d). (The latter provision specifically 
excludes from the definition of importation the bringing into the 
United States of firearms and ammunition by certain foreign persons for 
specified purposes.)
* * * * *

0
32. Section 123.25 is amended by revising paragraph (a) to read as 
follows:


Sec.  123.25  Amendments to licenses.

    (a) The Directorate of Defense Trade Controls may approve an 
amendment to a license for permanent export, temporary export and 
temporary import of unclassified defense articles. A suggested format 
is available from the Directorate of Defense Trade Controls.
* * * * *

0
33. Section 123.27 is amended by revising paragraphs (a) introductory 
text, (a)(2), (a)(5), (a)(6), (b), and (c) to read as follows:


Sec.  123.27  Special licensing regime for export to U.S. allies of 
commercial communications satellite components, systems, parts, 
accessories, attachments and associated technical data.

    (a) U.S. persons engaged in the business of exporting specifically 
designed or modified components, systems, parts, accessories, 
attachments, associated equipment and certain associated technical data 
for commercial communications satellites, and who are so registered 
with the Directorate of Defense Trade Controls pursuant to part 122 of 
this subchapter, may submit license applications for multiple permanent 
and temporary exports and temporary imports of such articles for 
expeditious consideration without meeting the documentary requirements 
of Sec.  123.1(c)(4) and (5) concerning purchase orders, letters of 
intent, contracts and non-transfer and end use certificates, or the 
documentary requirements of Sec.  123.9, concerning approval of re-
exports or re-transfers, when all of the following requirements are 
met:
* * * * *
    (2) The proposed exports concern exclusively one or more foreign 
persons (e.g., companies or governments) located within the territories 
of the countries identified in paragraph (a)(1) of this section, and 
one or more commercial communications satellite programs included 
within a list of such persons and programs approved by the U.S. 
Government for purposes of this section, as signified in a list of such 
persons and programs that will be publicly available through the 
Internet Web site of the Directorate of Defense Trade Controls and by 
other means.
* * * * *
    (5) The U.S. exporter provides complete shipment information to the 
Directorate of Defense Trade Controls within 15 days of shipment by 
submitting a report containing a description of the item and the 
quantity, value, port of exit, and end-user and country of destination 
of the item, and at that time meets the documentary requirements of 
Sec.  123.1(c)(4) and (5), the documentary requirements of Sec.  123.9 
in the case of re-exports or re-transfers, and, other documentary 
requirements that may be imposed as a condition of a license (e.g., 
parts control plans for MTCR-controlled items). The shipment 
information reported must include a description of the item and 
quantity, value, port of exit and end user and country of destination 
of the item.
    (6) At any time in which an item exported pursuant to this section 
is proposed for re-transfer outside of the approved territory, programs 
or persons (e.g., such as in the case of an item included in a 
satellite for launch beyond the approved territory), the detailed 
requirements of Sec.  123.9 apply with regard to obtaining the prior 
written consent of the Directorate of Defense Trade Controls.
    (b) The re-export or re-transfer of the articles authorized for 
export (including to specified re-export destinations) in accordance 
with this section do not require the separate prior written approval of 
the Directorate of Defense Trade Controls provided all of the 
requirements in paragraph (a) of this section are met.
    (c) The Directorate of Defense Trade Controls will consider, on a 
case-by-case basis, requests to include additional foreign companies 
and satellite programs within the geographic coverage of a license 
application submitted pursuant to this section from countries not 
otherwise covered, who are members of the European Space Agency or the 
European Union. In no case, however, can the provisions of this section 
apply or be relied upon by U.S. exporters in the case of countries who 
are subject to the mandatory requirements of Section 1514 of the Strom 
Thurmond National Defense Authorization Act for Fiscal Year 1999 (Pub. 
L. 105-261), concerning national security controls on satellite export 
licensing.
* * * * * *

PART 124--AGREEMENTS, OFF-SHORE PROCUREMENT AND OTHER DEFENSE 
SERVICES

0
34. The authority citation for part 124 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); E.O. 11958, 42 FR 4311; 3 CFR, 1977 Comp., 
p. 79; 22 U.S.C. 2651a; 22 U.S.C. 2776; Pub. L. 105-261.


0
35. Section 124.1 is revised to read as follows:


Sec.  124.1  Manufacturing license agreements and technical assistance 
agreements.

    (a) Approval. The approval of the Directorate of Defense Trade 
Controls must be obtained before the defense services described in 
Sec.  120.9(a) of this subchapter may be furnished. In order to obtain 
such approval, the U.S. person must submit a proposed agreement to the 
Directorate of Defense Trade Controls. Such agreements are generally 
characterized as manufacturing license agreements, technical assistance 
agreements, distribution agreements, or off-shore procurement 
agreements, and may not enter into force without the prior written 
approval of the Directorate of Defense Trade Controls. Once approved, 
the defense services described in the agreements may generally be 
provided without further licensing in accordance with Sec. Sec.  124.3 
and 125.4(b)(2) of this subchapter. The requirements of this section 
apply whether or not technical data is to be disclosed or used in the 
performance of the defense services described in Sec.  120.9(a) of this 
subchapter (e.g., all the information relied upon by the U.S. person in 
performing the defense service is in the public domain or is otherwise 
exempt from the licensing requirements of this subchapter pursuant to 
Sec.  125.4 of this subchapter). This requirement also applies to the 
training of any foreign military forces, regular and irregular, in the 
use of defense articles. Technical assistance agreements must be 
submitted in such cases. In exceptional cases, the Directorate of 
Defense Trade Controls, upon written request, will consider approving 
the provision of defense services described in Sec.  120.9(a) of this 
subchapter by granting a license under part 125 of this subchapter. 
Also, see Sec.  126.8 of this subchapter for the requirements for prior 
approval of proposals relating to significant military equipment.
    (b) Classified articles. Copies of approved agreements involving 
the release of classified defense articles will be forwarded by the 
Directorate of Defense Trade Controls to the Defense

[[Page 20543]]

Security Service of the Department of Defense.
    (c) Amendments. Changes to the scope of approved agreements, 
including modifications, upgrades, or extensions must be submitted for 
approval. The amendments may not enter into force until approved by the 
Directorate of Defense Trade Controls.
    (d) Minor amendments. Amendments which only alter delivery or 
performance schedules, or other minor administrative amendments which 
do not affect in any manner the duration of the agreement or the 
clauses or information which must be included in such agreements 
because of the requirements of this part, do not have to be submitted 
for approval. One copy of all such minor amendments must be submitted 
to the Directorate of Defense Trade Controls within thirty days after 
they are concluded.

0
36. Section 124.2 is amended by revising paragraph (c)(5)(ix) to read 
as follows:


Sec.  124.2  Exemptions for training and military service.

* * * * *
    (c) * * *
    (5) * * *
    (ix) Nuclear radiation measuring devices manufactured to military 
specifications listed in Category XVI(c);
* * * * *

0
37. Section 124.3 is amended by revising paragraph (b)(2) to read as 
follows:


Sec.  124.3  Exports of technical data in furtherance of an agreement.

* * * * *
    (b) * * *
    (2) The U.S. party complies wit