Implementation in the Export Administration Regulations of the United States' Rescission of Libya's Designation as a State Sponsor of Terrorism and Revisions Applicable to Iraq, 51714-51724 [06-7255]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security
• Industry and Security Bureau

[Federal Register Volume 71, Number 169 (Thursday, August 31, 2006)]
[Rules and Regulations]
[Pages 51714-51724]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-7255]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 734, 738, 740, 742, 746, 748, 750, 752, 764, 772 and 
774

[Docket No. 060816218-6218-01]
RIN 0694-AD81


Implementation in the Export Administration Regulations of the 
United States' Rescission of Libya's Designation as a State Sponsor of 
Terrorism and Revisions Applicable to Iraq

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: In this rule, the Bureau of Industry and Security (BIS) amends 
the Export Administration Regulations (EAR) to implement the June 30, 
2006 rescission of Libya's designation as a state sponsor of terrorism. 
The rescission followed the President's May 15, 2006 submission of a 
report to Congress certifying that Libya had not provided any support 
for international terrorism during the preceding six months and that 
Libya had provided assurances that it would not support future acts of 
international terrorism. To implement the rescission, BIS amends the 
EAR by removing Libya from the list of terrorist supporting countries 
in Country Group E:1, and by making other conforming amendments and 
related revisions throughout the EAR. In particular, Libya is added to 
Country Group D:1 and remains in Country Groups D:2, D:3, and D:4.
    This rule also revises the EAR to reflect the fact that in October 
2004 the United States rescinded Iraq's designation as a state sponsor 
of terrorism. As a result of the rescission of this designation, BIS 
may no longer control for anti-terrorism (AT) reasons items covered by 
eight export control classification numbers (ECCNs) for which BIS 
previously required a license for export or reexport to Iraq, or for 
transfer within Iraq. Note that BIS now controls these items for 
regional stability (RS) reasons and continues to require a license for 
their export or reexport to Iraq, or transfer within Iraq. This rule 
also amends the EAR to delete all references to Iraq's status as a 
Designated State Sponsor of Terrorism.

DATES: This rule is effective August 31, 2006. Comments must be 
received October 2, 2006.

ADDRESSES: Written comments on this rule may be sent to the Federal 
eRulemaking Portal: https://www.regulations.gov, or by e-mail to 
publiccomments@bis.doc.gov. Include RIN 0694-AD81 in the subject line 
of the message. Comments may be submitted by mail or hand delivery to 
Sheila Quarterman, Office of Exporter Services, Regulatory Policy 
Division, Bureau of Industry and Security, Department of Commerce, 14th 
& Pennsylvania Avenue, NW., Room 2705, Washington, DC 20230, ATTN: RIN 
0694-AD81; or by fax: 202-482-3355.
    Send comments regarding the collection of information to David 
Rostker, Office of Management and Budget (OMB), by e-mail to David--
Rostker@omb.eop.gov, or by fax to 202-395-7285.

FOR FURTHER INFORMATION CONTACT: Joan Roberts, Director, Foreign Policy 
Division, Office of Nonproliferation and Treaty Compliance, Bureau of 
Industry and Security, Department of Commerce, P.O. Box 273, 
Washington, DC 20044; Telephone: (202) 482-4252, or E-mail: 
jroberts@bis.doc.gov.

SUPPLEMENTARY INFORMATION:

Background

    The Bureau of Industry and Security (BIS) is amending the Export 
Administration Regulations (EAR) to implement the June 30, 2006 
rescission of Libya's designation as a state sponsor of terrorism. This 
action is the latest in a series of steps taken by the U.S. Government 
to reflect the improvement in the bilateral relationship since Libya's 
announcement in December 2003 that it was renouncing terrorism and 
giving up its weapons of mass destruction programs. In recognition of 
these actions, on April 23, 2004, the President terminated the 
application of the Iran-Libya Sanctions Act with respect to Libya 
allowing the resumption of most commercial activities with Libya. 
Concurrent with the President's action, the Department of the 
Treasury's Office of Foreign Assets Control (OFAC) published a General 
License implementing the President's action. On April 29, 2004, BIS 
published an amendment to the EAR that allowed for the licensing and 
authorization of the export or reexport of dual-use items to Libya. On 
March 22, 2005, BIS published a second amendment to the EAR on Libya 
that established a review policy and licensing procedure for items 
illegally exported or reexported to Libya prior to the end of the 
comprehensive embargo (``installed base'' items). The installed based 
provisions, as set forth in section 764.7, continue in effect. On 
November 16, 2005, BIS published a third

[[Page 51715]]

amendment to the EAR for Libya that allowed for the export of certain 
items controlled only for anti-terrorism (AT) reasons to be exported to 
U.S. Persons in Libya under a new license exception (License Exception 
USPL).
    On May 15, 2006, the President submitted a report to Congress 
certifying that Libya had not provided any support for international 
terrorism during the preceding six months and that Libya had provided 
assurances that it would not support future acts of international 
terrorism. In light of the report, on June 30, 2006, the U.S. 
Government rescinded Libya's designation as a state sponsor of 
terrorism. To implement the rescission, BIS amends the EAR by removing 
Libya from the list of terrorist supporting countries in Country Group 
E:1, and by making other conforming amendments and related revisions 
throughout the EAR. In particular, Libya is added to Country Group D:1 
and remains in Country Groups D:2, D:3, and D:4.
    The specific amendments that implement this change in U.S. policy 
toward Libya and the revisions applicable to Iraq are described below.

Libya Overview

    The new Libya export licensing policy significantly reduces the 
level of U.S. Government controls over commercial exports to Libya, 
which is consistent with Libya's removal from the list of Designated 
State Sponsors of Terrorism. BIS, however, retains restrictions on the 
export of multilaterally-controlled items and other sensitive items to 
Libya.

Revised License Requirements for Exports and Reexports to Libya

Items for Which Export License Requirements are Generally Lifted
    Under this rule, items subject to the EAR but not listed on the 
Commerce Control List (15 CFR part 774) (CCL) (i.e., EAR99 items) will 
generally not be subject to license requirements for export or reexport 
to Libya except pursuant to the end-user and end-use controls set forth 
in part 744 of the EAR. In addition, items controlled only for anti-
terrorism (AT) reasons on the CCL will no longer be subject to a 
licensing requirement for export or reexport to Libya, except for the 
end-use and end-user requirements noted above.
    Also, the de minimis rules applicable to Libya are amended to 
reflect Libya's removal from Country Group E:1. Reexports of items to 
Libya from abroad are subject to the EAR only when U.S.-origin 
controlled content in such items exceeds 25% instead of the 10% that 
applies to Country Group E:1 countries.
Items for Which Export License Requirements Will Be Retained
    This rule retains license requirements for the export or reexport 
to Libya of items on the multilateral export control regime lists (the 
Wassenaar Arrangement, the Nuclear Suppliers' Group, the Australia 
Group and the Missile Technology Control Regime) and items controlled 
for Crime Control (CC) or Regional Stability (RS) reasons. These 
license requirements are set forth in part 742 of the EAR and are 
reflected in the relevant columns of the Country Chart in Supplement 
No. 1 to part 738 of the EAR. Certain categories of items that are 
controlled for reasons not included on the Country Chart (e.g., 
encryption (EI), short supply (SS), and Chemical Weapons (CW)) also 
require a license for export or reexport to Libya.

Revised Licensing Policy for Libya

    BIS will review license applications for exports or reexports to 
Libya on a case-by-case basis pursuant to applicable licensing policies 
set forth in parts 742, 744, or elsewhere in the EAR.
Items Controlled for Chemical and Biological Weapons (CB) Reasons
    License applications for CB-controlled exports and reexports to 
Libya will be reviewed on a case-by-case basis consistent with the 
licensing policy set forth in part 742.2 of the EAR.
Items Controlled for Nuclear Nonproliferation (NP) Reasons
    License applications for NP-controlled exports and reexports to 
Libya will be reviewed on a case-by-case basis consistent with the 
licensing policy set forth in part 742.3 of the EAR. Applications for 
exports and reexports to civil-end users and end-uses will generally be 
approved.
Items Controlled for National Security (NS) Reasons
    License applications for NS-controlled exports and reexports to 
Libya will be reviewed on a case-by-case basis consistent with the 
licensing policy set forth in part 742.4 of the EAR. Applications for 
exports and reexports to civil end-users and end-uses will generally be 
approved.
Items Controlled for Missile Technology (MT) Reasons
    License applications for MT-controlled exports and reexports to 
Libya will be reviewed on a case-by-case basis consistent with the 
licensing policy set forth in part 742.5 of the EAR.
Items Controlled for Regional Stability (RS) Reasons
    License applications for RS-controlled exports and reexports to 
Libya will be reviewed on a case-by-case basis consistent with the 
licensing policy set forth in part 742.6 of the EAR.
Items Controlled for Crime Control (CC) Reasons
    License applications for CC-controlled exports and reexports to 
Libya will be reviewed favorably on a case-by-case basis consistent 
with the licensing policy set forth in part 742.7 of the EAR.
    As a result of the rescission of Libya's designation as a state 
sponsor of terrorism, Libya will also be an eligible destination for 
special comprehensive licenses as described in part 752 of the EAR.

License Exceptions Available for Libya

License Exceptions Available Generally to Group D Countries
    This rule removes Libya from Country Group E:1, found in Supplement 
1 to part 740 of the EAR. It adds Libya to Country Group D:1. Libya 
remains in Country Groups D:2, D:3, and D:4. As a result of Libya's 
inclusion in Country Groups D:1 through D:4, the following License 
Exceptions may be available, in whole or in part: CIV, APP, TMP, RPL, 
GOV, GFT, TSU, BAG, AVS, ENC and KMI. A specific transaction is 
eligible for a License Exception only if it satisfies all of the terms 
and conditions of the relevant License Exception and is not excluded by 
any of the restrictions that apply to all License Exceptions, as set 
forth in section 740.2 (Restrictions on all License Exceptions) and 
elsewhere in the EAR.

Expanded License Exception Availability

    This rule adds Libya to Computer Tier 3 for exports or reexports of 
high performance computers under License Exception Computers (APP) in 
section 740.7 of the EAR. Additionally, foreign nationals from Libya 
are now eligible to receive without a license ``development'' and 
``production'' technology and source code for computers with an 
adjusted peak performance (APP) of less than or equal to 0.1 Weighted 
TeraFLOPS (WT) and ``use'' technology and source code for computers 
with an APP of less than or equal to 0.75 WT under License Exception 
APP subject to the Foreign National Review requirements of section 
740.7(d)(4).
    This rule also removes License Exception USPL (section 740.19) from 
the EAR. This License Exception was

[[Page 51716]]

established to allow for the export or reexport of certain items 
controlled for AT reasons only to U.S. persons in Libya. With the 
lifting of AT controls on Libya, this License Exception has been 
rendered irrelevant.

Overview of Iraq Revisions

    This rule also makes revisions to the EAR to reflect the October 
2004 rescission of Iraq's designation as a state sponsor of terrorism. 
Under the terms of the revisions, items covered by eight export control 
classification numbers (ECCNs) which previously required a license for 
export or reexport to Iraq, or transfer within Iraq, for anti-terrorism 
(AT) reasons now require a license for export or reexport to Iraq, or 
transfer within Iraq, for regional stability (RS) reasons. This change 
affects the following ECCNs: 0B999 (Specific processing equipment such 
as hot cells and glove boxes suitable for use with radioactive 
materials), 0D999 (Specific software for neutronic calculations, 
radiation transport calculations and hydrodynamic calculations/
modeling), 1B999 (Specific processing equipment such as electrolytic 
cells for fluorine production and particle accelerators), 1C992 
(Commercial charges containing energetic materials, n.e.s.), 1C995 
(Certain mixtures and testing kits), 1C997 (Ammonium Nitrate), 1C999 
(Specific Materials, n.e.s.) and 6A992 (Optical Sensors, not controlled 
by 6A002). BIS has retained a licensing requirement for these items for 
RS reasons to reflect the U.S. Government's position that they could 
contribute to military capabilities within Iraq and in the region in a 
manner destabilizing to the region and contrary to the foreign policy 
interests of the United States. This rule also amends the EAR to delete 
all references to Iraq's former status as a Designated State Sponsor of 
Terrorism.
    This action is taken after consultation with the Secretary of 
State. This rule imposes new export controls for foreign policy 
reasons. Consistent with section 6 of the Export Administration Act of 
1979, as amended, 50 U.S.C. app. Sec.  Sec.  2401-2420 (2000) (the 
Act), a foreign policy report was submitted to Congress on August 17, 
2006, notifying Congress of the imposition of new controls.
    Since August 21, 2001, the Act has been in lapse and the President, 
through Executive Order 13222 of August 17, 2001 (3 CFR, 2001 Comp. 783 
(2002)), as extended most recently by the Notice of August 3, 2006, (71 
Fed. Reg. 44551 (August 7, 2006)), has continued the EAR in effect 
under the International Emergency Economic Powers Act (50 U.S.C. 1701--
1706 (2000)) (IEEPA). BIS continues to carry out the provisions of the 
Act, as appropriate and to the extent permitted by law, pursuant to 
Executive Order 13222.

Rulemaking Requirements

    1. This interim rule has been determined to be not significant for 
the purposes of Executive Order 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to nor be subject to a penalty for failure to 
comply with a collection of information, subject to the requirements of 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), 
unless that collection of information displays a currently valid Office 
of Management and Budget (OMB) Control Number. This regulation involves 
collections previously approved by the OMB under control numbers 0694-
0088, ``Multi-Purpose Application,'' which carries a burden hour 
estimate of 58 minutes to prepare and submit form BIS-748. This rule is 
expected to result in a decrease in license applications. Send comments 
regarding this burden estimate or any other aspect of this collection 
of information, including suggestions for reducing the burden to David 
Rostker, Office of Management and Budget (OMB), and to the Regulatory 
Policy Division, Bureau of Industry and Security, Department of 
Commerce, as indicated in the ADDRESSES section of this rule.
    3. This rule does not contain policies with Federalism implications 
sufficient to warrant preparation of a Federalism assessment under 
Executive Order 13132.
    4. The provisions of the Administrative Procedure Act (5 U.S.C. 
553) requiring notice of proposed rulemaking, the opportunity for 
public participation, and a delay in effective date, are inapplicable 
because this regulation involves a military or foreign affairs function 
of the United States (see 5 U.S.C. 553(a)(1)). Further, no other law 
requires that a notice of proposed rulemaking and an opportunity for 
public comment be given for this rule. Because a notice of proposed 
rulemaking and an opportunity for public comment are not required to be 
given for this rule by 5 U.S.C. 553, or by any other law, the 
analytical requirements of the Regulatory Flexibility Act, 5 U.S.C. 601 
et seq., are not applicable.
    However, because of the importance of the issues raised by these 
regulations, this rule is being issued in interim form and BIS will 
consider comments in the development of the final regulations. 
Accordingly, the Department of Commerce (the Department) encourages 
interested persons who wish to comment to do so at the earliest 
possible time to permit the fullest consideration of their views.
    The period for submission of comments will close October 2, 2006. 
The Department will consider all comments received before the close of 
the comment period in developing final regulations. Comments received 
after the end of the comment period will be considered if possible, but 
their consideration cannot be assured. The Department will not accept 
public comments accompanied by a request that a part or all of the 
material be treated confidentially because of its business proprietary 
nature or for any other reason. The Department will return such 
comments and materials to the persons submitting the comments and will 
not consider them in the development of final regulations. All public 
comments on these regulations will be a matter of public record and 
will be available for public inspection and copying. In the interest of 
accuracy and completeness, the Department requires comments in written 
form.
    Oral comments must be followed by written memoranda, which will 
also be a matter of public record and will be available for public 
review and copying. Communications from agencies of the United States 
Government or foreign governments will not be available for public 
inspection.
    The Office of Administration, Bureau of Industry and Security, U.S. 
Department of Commerce, displays these public comments on BIS's Freedom 
of Information Act (FOIA) Web site at https://www.bis.doc.gov/foia. This 
office does not maintain a separate public inspection facility. If you 
have technical difficulties accessing this Web site, please call BIS's 
Office of Administration at (202) 482-0637 for assistance.

List of Subjects

15 CFR Part 734, 740, 748, 750 and 752

    Administrative practice and procedure, Exports, Reporting and 
recordkeeping requirements.

15 CFR Parts 738 and 772

    Exports.

15 CFR Part 746

    Exports, Reporting and recordkeeping requirements.

15 CFR Parts 742 and 774

    Exports, Foreign trade.

[[Page 51717]]

15 CFR Part 764

    Administrative practice and procedure, Exports, Law enforcement, 
Penalties.


0
Accordingly, parts 734, 738, 740, 742, 746, 748, 750, 752, 764, 772 and 
774 of the Export Administration Regulations (15 CFR parts 730-799) are 
amended as follows:

PART 734--[AMENDED]

0
1. The authority citation for 15 CFR part 734 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13020, 61 
FR 54079, 3 CFR, 1996 Comp. p. 219; E.O. 13026, 61 FR 58767, 3 CFR, 
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; Notice of October 25, 2005, 70 FR 62027 (October 27, 2005); 
Notice of August 3, 2006, 71 FR 44551 (August 7, 2006).


Sec.  734.4  [Amended]

0
2. Section 734.4 is amended by revising the phrase ``Cuba, Iran, Libya, 
North Korea, Sudan, and Syria'' in paragraph (a)(1) to read ``Cuba, 
Iran, North Korea, Sudan, and Syria.''

PART 738--[AMENDED]

0
3. The authority citation for 15 CFR part 738 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 18 U.S.C. 2510 et seq.; 22 U.S.C. 
287c; 22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 
185(u); 42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 1354; 46 U.S.C. 
app. 466c; 50 U.S.C. app. 5; Sec. 901-911, Pub. L. 106-387; Sec. 
221, Pub. L. 107-56; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of 
August 3, 2006, 71 FR 44551 (August 7, 2006).


0
4. Supplement No. 1 to part 738 is amended
0
A. By removing the ``X'' in AT column 1 in the entry for ``Libya'; and
0
B. By revising the footnote to the Country Chart to read as follows:
* * * * *

Supplement No. 1 to Part 738--Commerce Country Chart

    \1\ This country is subject to sanctions implemented by the 
United Nations Security Council. See Sec.  746.3 for license 
requirements for exports and reexports to Iraq or transfer within 
Iraq, as well as regional stability licensing requirements not 
included in the Country Chart. See Sec.  746.8 for license 
requirements for exports and reexports to Rwanda.

PART 740--[AMENDED]

0
5. The authority citation for 15 CFR part 740 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
Sec. 901-911, Pub. L. 106-387; E.O. 13026, 61 FR 58767, 3 CFR, 1996 
Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; 
Notice of August 3, 2006, 71 FR 44551 (August 7, 2006).


0
6. Section 740.7 is amended
0
A. By revising the phrase ``Cuba, Iran, Libya, North Korea, Sudan, 
orSyria,'' in paragraph (b)(2)(i) to read ``Cuba, Iran, North Korea, 
Sudan, or Syria,'';
0
B. By removing the phrase ``Libya,'' in paragraph (b)(2)(ii); and
0
C. By revising paragraph (d)(1) to read as follows:


Sec.  740.7  Computers (APP).

* * * * *
    (d) Computer Tier 3 destinations--(1) Eligible destinations. 
Eligible destinations under paragraph (d) of this section are 
Afghanistan, Albania, Algeria, Andorra, Angola, Armenia, Azerbaijan, 
Bahrain, Belarus, Bosnia & Herzegovina, Cambodia, China (People's 
Republic of), Comoros, Croatia, Djibouti, Egypt, Georgia, India, Iraq, 
Israel, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Laos, Lebanon, Libya, 
Macau, Macedonia (The Former Yugoslav Republic of), Mauritania, 
Moldova, Mongolia, Morocco, Oman, Pakistan, Qatar, Russia, Serbia and 
Montenegro, Saudi Arabia, Tajikistan, Tunisia, Turkmenistan, Ukraine, 
United Arab Emirates, Uzbekistan, Vanuatu, Vietnam, and Yemen.
* * * * *

0
7. Section 740.15 is amended by revising paragraph (d)(5) to read as 
follows:


Sec.  740.15  Aircraft and vessels (AVS).

* * * * *
    (d) * * *
    (5) No vessels may be exported or reexported under this License 
Exception to a country in Country Group E:1.


Sec.  740.19  [Removed]

0
8. Section 740.19 is removed.

0
9. Supplement No. 1 to part 740 is amended:
0
A. By revising the entry for Libya in the table to Country Group D; and
0
B. By removing Libya from Country Group E.

Supplement No. 1 to Part 740--Country Groups

* * * * *

                                                 Country Group D
----------------------------------------------------------------------------------------------------------------
                                                              [D:1]                       [D:3]         [D:4]
                         Country                            National        [D:2]     Chemical and     Missile
                                                            Security       Nuclear      biological   technology
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
Libya...................................................            X             X             X             X
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *

PART 742--[AMENDED]

0
10. The authority citation for 15 CFR part 742 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
18 U.S.C. 2510 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 
Sec. 901-911, Pub. L. 106-387; Sec. 221, Pub. L. 107-56; Sec 1503, 
Pub. L. 108-11,117 Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR, 1978 
Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; 
E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 61 
FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 
2001 Comp., p. 783; Presidential Determination 2003-23 of May 7, 
2003, 68 FR 26459, May 16, 2003; Notice of October 25, 2005, 70 FR 
62027 (October 27, 2005); Notice of August 3, 2006, 71 FR 44551 
(August 7, 2006).

0
11. Section 742.1 is amended by revising paragraph (d) to read as 
follows:


Sec.  742.1  Introduction.

* * * * *
    (d) Anti-terrorism Controls on Cuba, Iran, North Korea, Sudan and 
Syria.Commerce maintains anti-terrorism controls on Cuba, Iran, North 
Korea, Syria and Sudan under section 6(a) of the Export Administration 
Act. Items controlled under section 6(a) to Iran, Syria, Sudan, and 
North Korea are described in Sec. Sec.  742.8, 742.9, 742.10, and

[[Page 51718]]

742.19, respectively, and in Supplement No. 2 to part 742. Commerce 
also maintains controls under section 6(j) of the EAA to Cuba, Iran, 
North Korea, Sudan and Syria. Items controlled to these countries under 
EAA section 6(j) are also described in Supplement 2 to part 742. The 
Secretaries of Commerce and State are required to notify appropriate 
Committees of the Congress 30 days before issuing a license for an item 
controlled under section 6(j) to Cuba, North Korea, Iran, Sudan or 
Syria. As noted in paragraph (c) of this section, if you are exporting 
or reexporting to Cuba or Iran you should review part 746 of the EAR, 
Embargoes and Other Special Controls.
* * * * *

0
12. Section 742.6 is amended by adding paragraphs (a)(3) and (b)(4) to 
read as follows:


Sec.  742.6  Regional stability.

    (a) * * *
    (3) As indicated on the CCL, a license is required for the export 
or reexport to Iraq or transfer within Iraq of the following items 
controlled for RS reasons on the CCL: 0B999, 0D999, 1B999, 1C992, 
1C995, 1C997, 1C999 and 6A992. The Commerce Country Chart is not 
designed to determine RS licensing requirements for these ECCNs.
    (b) * * *
    (4) See Sec.  746.3(b) of the EAR for the applicable licensing 
policies for items controlled for RS reasons to Iraq.
* * * * *


Sec.  742.20  [Removed]

0
13-14. Section 742.20 is removed.

0
15. Supplement No. 1 to part 742 is amended by revising paragraphs (5), 
(7), (8) and (11) to read as follows:

Supplement No. 1 to Part 742--Nonproliferation of Chemical and 
Biological Weapons

* * * * *
    (5) The contract sanctity date for exports to Iran or Syria of 
potassium hydrogen fluoride, ammonium hydrogen fluoride, sodium 
fluoride, sodium bifluoride, phosphorus pentasulfide, sodium 
cyanide, triethanolamine, diisopropylamine, sodium sulfide, and N,N-
diethylethanolamine is December 12, 1989.
* * * * *
    (7) The contract sanctity date for exports to all destinations 
(except Iran or Syria) of 2-chloroethanol and triethanolamine is 
January 15, 1991. For exports of 2-chloroethanol to Iran or Syria, 
paragraph (1) of this Supplement applies. For exports of 
triethanolamine to Iran or Syria, paragraph (5) of this Supplement 
applies.
* * * * *
    (8) The contract sanctity date for exports to all destinations 
(except Iran or Syria) of chemicals controlled by ECCN 1C350 is 
March 7, 1991, except for applications to export the following 
chemicals: 2-chloroethanol, dimethyl methylphosphonate, dimethyl 
phosphite (dimethyl hydrogen phosphite), phosphorus oxychloride, 
phosphorous trichloride, thiodiglycol, thionyl chloride 
triethanolamine, and trimethyl phosphite. (See also paragraphs (6) 
and (7) of this Supplement.) For exports to Iran or Syria, see 
paragraphs (1) through (6) of this Supplement.
* * * * *
    (11) The contract sanctity date for reexports of chemicals 
controlled under ECCN 1C350 is March 7, 1991, except that the 
contract sanctity date for reexports of these chemicals to Iran or 
Syria is December 12, 1989.
* * * * *

0
16. Supplement No. 2 to part 742 is amended;
0
A. By removing the Note to Paragraph (b)(1);
0
B. By removing paragraphs (c)(1)(v), (4)(v), (5)(v), (6)(v), (7)(v), 
(8)(v), (10)(v), (11)(v), (12)(v), (13)(v), (14)(v), (15)(iii), 
(16)(v), (17)(v), (18)(v), (19)(v), (22)(v), (23)(v), (24)(v), 
(25)(vi), (26)(i)(D), (27)(v), (28)(v), (29)(v), (30)(v), (31)(v), 
(32)(v), (33)(v), (34)(v), (35)(v), (36)(v), (37)(v), (38)(v), 
(39)(i)(E), (39)(ii)(E), (40)(v), (41)(v), (42)(v), (43)(v), and 
(44)(v);
0
C. By removing the phrase, ``Libya,'' in paragraph (c)(2);
0
D. By removing the phrase, ``Libya,'' in paragraph (c)(3); and
0
E. By revising paragraph (a), paragraph (b)(1), paragraph (b)(3) 
introductory text, and paragraph (b)(3)(ii) to read as set forth below; 
and
0
F. By revising the first two sentences of paragraph (c) introductory 
text to read as set forth below.

Supplement No. 2 to Part 742--Anti-Terrorism Controls: Iran, North 
Korea, Syria and Sudan: Contract Sanctity Dates and Related Policies

* * * * *
    (a) Terrorist-supporting countries. The Secretary of State has 
designated Cuba, Iran, North Korea, Sudan and Syria as countries 
whose governments have repeatedly provided support for acts of 
international terrorism under section 6(j) of the Export 
Administration Act (EAA).
    (b) * * *
    (1) On December 28, 1993, the Secretary of State determined that 
the export to Cuba, Iran, North Korea, Sudan, or Syria of items 
described in paragraphs (c)(1) through (c)(5) of this Supplement, if 
destined to military, police, intelligence or other sensitive end-
users, are controlled under EAA section 6(j). Therefore, the 30-day 
advance Congressional notification requirement applies to the export 
or reexport of these items to sensitive end-users in any of these 
countries.
* * * * *
    (3) Items controlled for anti-terrorism reasons under section 
6(a) to Iran, North Korea, Sudan and Syria are:
* * * * *
    (ii) The following items to all end-users: for Iran, items in 
paragraphs (c)(6) through (c)(44) of this Supplement; for North 
Korea, items in paragraph (c)(6) through (c)(45) of this Supplement; 
for Sudan, items in paragraphs (c)(6) through (c)(14) and (c)(16) 
through (c)(44) of this Supplement; and for Syria, items in 
paragraphs (c)(6) through (c)(8), (c)(10) through (c)(14), (c)(16) 
through (c)(19), and (c)(22) through (c)(44) of this Supplement.
    (c) The license requirements and licensing policies for items 
controlled for anti-terrorism reasons to Iran, Syria, Sudan, and 
North Korea are generally described in Sec. Sec.  742.8, 742.9, 
742.10, and 742.19 of this part, respectively. This Supplement 
provides guidance on licensing policies for Iran, North Korea, 
Syria, and Sudan and related contract sanctity dates that may be 
available for transactions benefiting from pre-existing contracts 
involving Iran, Syria, and Sudan. * * *
* * * * *

PART 746--[AMENDED]

0
17. The authority citation for 15 CFR part 746 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 287c; Sec 1503, Pub. L. 108-11,117 Stat. 559; 22 U.S.C. 
6004; Sec. 901-911, Pub. L. 106-387; Sec. 221, Pub. L. 107-56; E.O. 
12854, 58 FR 36587, 3 CFR 1993 Comp., p. 614; E.O. 12918, 59 FR 
28205, 3 CFR, 1994 Comp., p. 899; E.O. 13222, 3 CFR, 2001 Comp., p. 
783; Presidential Determination 2003-23 of May 7, 2003, 68 FR 26459, 
May 16, 2003; Notice of August 3, 2005, 71 FR 44551 (August 7, 
2006).


0
18. Section 746.3 is amended by revising paragraph (a)(3) to read as 
follows:


Sec.  746.3  Iraq.

* * * * *
    (a) * * *
    (3) A license is required for the export or reexport to Iraq or 
transfer within Iraq of items on the Commerce Control List controlled 
for RS reasons under the following ECCNs: 0B999, 0D999, 1B999, 1C992, 
1C995, 1C997, 1C999 and 6A992.
* * * * *

PART 748--[AMENDED]

0
19. The authority citation for 15 CFR part 748 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 3, 2006, 71 FR 
44551 (August 7, 2006).

[[Page 51719]]

Supplement No. 2 to Part 748 [Amended]

0
20. Supplement No. 2 to part 748 is amended by revising the phrase 
``Cuba, Iran, Libya, North Korea, Sudan, and Syria'' in paragraph 
(c)(2) to read ``Cuba, Iran, North Korea, Sudan, and Syria.''

PART 750--[AMENDED]

0
21. The authority citation for 15 CFR part 750 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
Sec. 1503, Pub.L. 108-11, 117 Stat. 559; E.O. 13026, 61 FR 58767, 3 
CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., 
p. 783; Presidential Determination 2003-23 of May 7, 2003, 68 FR 
26459, May 16, 2003; Notice of August 3, 2006, 71 FR 44551 (August 
7, 2006).


0
22. Section 750.4 is amended by revising paragraph (b)(6)(i) to read as 
follows:


Sec.  750.4  Procedures for processing license applications.

* * * * *
    (b) * * *
    (6) * * *
    (i) Designated countries. The following countries have been 
designated by the Secretary of State as terrorist-supporting countries: 
Cuba, Iran, North Korea, Sudan, and Syria.
* * * * *

PART 752--[AMENDED]

0
23. The authority citation for 15 CFR part 752 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13222, 66 
FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 3, 2006, 71 FR 
44551 (August 7, 2006).


0
24. Section 752.4 is amended by revising paragraph (a)(1) to read as 
follows:


Sec.  752.4  Eligible countries.

    (a) * * *
    (1) Cuba, Iran, Iraq, North Korea, Sudan, and Syria.
* * * * *

PART 764--[AMENDED]

0
25. The authority citation for 15 CFR part 764 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 
3, 2006, 71 FR 44551 (August 7, 2006).


Sec.  764.7  [Amended]

0
26. Section 764.7 is amended by removing the parenthetical phrase 
``(e.g. Sec.  742.20 of the EAR)'' from paragraph (b)(4).

PART 772--[AMENDED]

0
27. The authority citation for 15 CFR part 772 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 
3, 2006, 71 FR 44551 (August 7, 2006).


0
28. The definition of Countries supporting international terrorism in 
Sec.  772.1 and paragraph (a) introductory text of the definition for 
U.S. Person in Sec.  772.1 are revised to read as follows:


Sec.  772.1  Definitions of terms as used in the Export Administration 
Regulations (EAR).

* * * * *
    Countries supporting international terrorism. In accordance with 
Sec.  6(j) of the Export Administration Act of 1979, as amended (EAA), 
the Secretary of State has determined that the following countries' 
governments have repeatedly provided support for acts of international 
terrorism: Cuba, Iran, North Korea, Sudan, and Syria.
* * * * *
    U.S. Person. (a) For purposes of Sec. Sec.  744.6, 744.10, 744.11, 
744.12, 744.13 and 744.14 of the EAR, the term U.S. person includes:
* * * * *

PART 774--[AMENDED]

0
29. The authority citation for 15 CFR part 774 is revised to read as 
follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
10 U.S.C. 7420; 10 U.S.C. 7430(e); 18 U.S.C. 2510 et seq.; 22 U.S.C. 
287c, 22 U.S.C. 3201 et seq., 22 U.S.C. 6004; 30 U.S.C. 185(s), 
185(u); 42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 1354; 46 U.S.C. 
app. 466c; 50 U.S.C. app. 5; Sec. 901-911, Pub. L. 106-387; Sec. 
221, Pub. L. 107-56; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of 
August 3, 2006, 71 FR 44551 (August 7, 2006).


0
30. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 0--Nuclear Materials, Facilities, and Equipment (and Misc. 
Items), Export Control Classification Number (ECCN) 0B999 is amended by 
revising the License Requirements section to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

Category 0--Nuclear Materials, Facilities, and Equipment (and 
Miscellaneous Items)

* * * * *

0B999 Specific processing equipment, as follows (see List of Items 
Controlled).

License Requirements

    Reason for Control: AT, RS

Control(s) Country Chart

    AT applies to entire entry. A license is required for items 
controlled by this entry to North Korea for anti-terrorism reasons. 
The Commerce Country Chart is not designed to determine AT license 
requirements for this entry. See Sec.  742.19 of the EAR for 
additional information. RS applies to entire entry. A license is 
required for items controlled by this entry for export or reexport 
to Iraq or transfer within Iraq for regional stability reasons. The 
Commerce Country Chart is not designed to determine RS license 
requirements for this entry. See Sec. Sec.  742.6 and 746.3 of the 
EAR for additional information.
* * * * *

0
31. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 0 `` Nuclear Materials, Facilities, and Equipment (and Misc. 
Items), Export Control Classification Number (ECCN) 0D999 is amended by 
revising the License Requirements section to read as follows:

Supplement No. 1 to Part 774-The Commerce Control List

Category 0--Nuclear Materials, Facilities, and Equipment (and 
Miscellaneous Items)

* * * * *

0D999 Specific Software, as follows (see List of Items Controlled)

License Requirements

    Reason for Control: AT, RS

Control(s) Country Chart

    AT applies to entire entry. A license is required for items 
controlled by this entry to North Korea for anti-terrorism reasons. 
The Commerce Country Chart is not designed to determine AT license 
requirements for this entry. See Sec.  742.19 of the EAR for 
additional information. RS applies to entire entry. A license is 
required for items controlled by this entry for export or reexport 
to Iraq or transfer within Iraq for regional stability reasons. The 
Commerce Country Chart is not designed to determine RS license 
requirements for this entry. See Sec. Sec.  742.6 and 746.3 of the 
EAR for additional information.
* * * * *

0
32. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--Materials, Chemicals, Microorganisms and Toxins, Export 
Control Classification Number (ECCN) 1B999 is amended by revising the 
License Requirements section to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

Category 1--Materials, Chemicals, Microorganisms and Toxins

* * * * *

[[Page 51720]]

1B999 Specific processing equipment, n.e.s., as follows (see List of 
Items Controlled)

License Requirements

    Reason for Control: AT, RS

Control(s) Country Chart

    AT applies to entire entry. A license is required for items 
controlled by this entry to North Korea for anti-terrorism reasons. 
The Commerce Country Chart is not designed to determine AT license 
requirements for this entry. See Sec.  742.19 of the EAR for 
additional information. RS applies to entire entry. A license is 
required for items controlled by this entry for export or reexport 
to Iraq or transfer within Iraq for regional stability reasons. The 
Commerce Country Chart is not designed to determine RS license 
requirements for this entry. See Sec. Sec.  742.6 and 746.3 of the 
EAR for additional information.
* * * * *

0
33. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--Materials, Chemicals, Microorganisms and Toxins, Export 
Control Classification Number (ECCN) 1C350 is amended by revising the 
License Requirements section to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

Category 1--Materials, Chemicals, Microorganisms and Toxins

* * * * *

1C350 Chemicals that may be used as precursors for toxic chemical 
agents.

License Requirements

    Reason for Control: CB, CW, AT

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
CB applies to entire entry..............  CB Column 2.
------------------------------------------------------------------------

    CW applies to 1C350 .b, and .c. The Commerce Country Chart is 
not designed to determine licensing requirements for items 
controlled for CW reasons. A license is required, for CW reasons, to 
export or reexport Schedule 2 chemicals and mixtures identified in 
1C350.b to States not Party to the CWC (destinations not listed in 
Supplement No. 2 to part 745 of the EAR). A license is required, for 
CW reasons, to export Schedule 3 chemicals and mixtures identified 
in 1C350.c to States not Party to the CWC, unless an End-Use 
Certificate issued by the government of the importing country has 
been obtained by the exporter prior to export. A license is 
required, for CW reasons, to reexport Schedule 3 chemicals and 
mixtures identified in 1C350.c from a State not Party to the CWC to 
any other State not Party to the CWC. (See Sec.  742.18 of the EAR 
for license requirements and policies for toxic and precursor 
chemicals controlled for CW reasons. See Sec.  745.2 of the EAR for 
End-Use Certificate requirements that apply to exports of Schedule 3 
chemicals to countries not listed in Supplement No. 2 to part 745 of 
the EAR.)
    AT applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled 
for AT reasons in 1C350. A license is required, for AT reasons, to 
export or reexport items controlled by 1C350 to a country in Country 
Group E:1 of Supplement No. 1 to part 740 of the EAR. (See part 742 
of the EAR for additional information on the AT controls that apply 
to Iran, North Korea, Sudan, and Syria. See part 746 of the EAR for 
additional information on the comprehensive trade sanctions that 
apply to Cuba and Iran. See Supplement No. 1 to part 736 of the EAR 
for export controls on Syria.)

License Requirement Notes

    1. Sample Shipments: Subject to the following requirements and 
restrictions, a license is not required for sample shipments when 
the cumulative total of these shipments does not exceed a 55-gallon 
container or 200 kg of a single chemical to any one consignee during 
a calendar year. A consignee that receives a sample shipment under 
this exclusion may not resell, transfer, or reexport the sample 
shipment, but may use the sample shipment for any other legal 
purpose unrelated to chemical weapons.
    a. Chemicals Not Eligible:
    A. [RESERVED]
    B. CWC Schedule 2 chemicals (States not Party to the CWC). No 
CWC Schedule 2 chemical or mixture identified in 1C350.b is eligible 
for sample shipment to States not Party to the CWC (destinations not 
listed in Supplement No. 2 to part 745 of the EAR) without a 
license.
    b. Countries Not Eligible: Countries in Country Group E:1 of 
Supplement No. 1 to part 740 of the EAR are not eligible to receive 
sample shipments of any chemicals controlled by this ECCN without a 
license.
    c. Sample shipments that require an End-Use Certificate for CW 
reasons: No CWC Schedule 3 chemical or mixture identified in 1C350.c 
is eligible for sample shipment to States not Party to the CWC 
(destinations not listed in Supplement No. 2 to part 745 of the EAR) 
without a license, unless an End-Use Certificate issued by the 
government of the importing country is obtained by the exporter 
prior to export (see Sec.  745.2 of the EAR for End-Use Certificate 
requirements).
    d. Sample shipments that require a license for reasons set forth 
elsewhere in the EAR: Sample shipments, as described in this Note 1, 
may require a license for reasons set forth elsewhere in the EAR. 
See, in particular, the end-use/end-user restrictions in part 744 of 
the EAR, and the restrictions that apply to embargoed countries in 
part 746 of the EAR.
    e. Quarterly report requirement. The exporter is required to 
submit a quarterly written report for shipments of samples made 
under this Note 1. The report must be on company letterhead 
stationery (titled ``Report of Sample Shipments of Chemical 
Precursors'' at the top of the first page) and identify the 
chemical(s), Chemical Abstract Service Registry (C.A.S.) number(s), 
quantity(ies), the ultimate consignee's name and address, and the 
date exported. The report must be sent to the U.S. Department of 
Commerce, Bureau of Industry and Security, P.O. Box 273, Washington, 
DC 20044, Attn: ``Report of Sample Shipments of Chemical 
Precursors''.
    2. Mixtures:
    a. Mixtures that contain precursor chemicals identified in ECCN 
1C350, in concentrations that are below the levels indicated in 
1C350.b through .d, are controlled by ECCN 1C395 or 1C995 and are 
subject to the licensing requirements specified in those ECCNs.
    b. A license is not required for mixtures controlled under this 
ECCN when the controlled chemical in the mixture is a normal 
ingredient in consumer goods packaged for retail sale for personal 
use. Such consumer goods are classified as EAR99.
    Note to Mixtures: Calculation of concentrations of AG-controlled 
chemicals:
    a. Exclusion. No chemical may be added to the mixture (solution) 
for the sole purpose of circumventing the Export Administration 
Regulations;
    b. Percent Weight Calculation. When calculating the percentage, 
by weight, of components in a chemical mixture, include all 
components of the mixture, including those that act as solvents.
    3. Compounds. Compounds created with any chemicals identified in 
this ECCN 1C350 may be shipped NLR (No License Required), without 
obtaining an End-Use Certificate, unless those compounds are also 
identified in this entry or require a license for reasons set forth 
elsewhere in the EAR.
    4. Testing Kits: Certain medical, analytical, diagnostic, and 
food testing kits containing small quantities of chemicals 
identified in this ECCN 1C350, are excluded from the scope of this 
ECCN and are controlled under ECCN 1C395 or 1C995. (Note that 
replacement reagents for such kits are controlled by this ECCN 1C350 
if the reagents contain one or more of the precursor chemicals 
identified in 1C350 in concentrations equal to or greater than the 
control levels for mixtures indicated in 1C350.)
    Technical Notes: 1. For purposes of this entry, a ``mixture'' is 
defined as a solid, liquid or gaseous product made up of two or more 
components that do not react together under normal storage 
conditions.
    2. The scope of this control applicable to Hydrogen Fluoride 
(see 1C350.d.7 in the List of Items Controlled) includes its liquid, 
gaseous, and aqueous phases, and hydrates.
* * * * *

0
34. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--Materials, Chemicals, Microorganisms and Toxins, Export 
Control Classification Number (ECCN) 1C355 is amended by revising the 
License Requirements section to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

Category 1--Materials, Chemicals, Microorganisms and Toxins

* * * * *

[[Page 51721]]

1C355 Chemical Weapons Convention (CWC) Schedule 2 and 3 chemicals and 
families of chemicals not controlled by ECCN 1C350 or by the Department 
of State under the ITAR.

License Requirements

    Reason for Control: CW, AT
    Control(s).
    CW applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled 
for CW reasons. A license is required to export or reexport CWC 
Schedule 2 chemicals and mixtures identified in 1C355.a to States 
not Party to the CWC (destinations not listed in Supplement No. 2 to 
part 745 of the EAR). A license is required to export CWC Schedule 3 
chemicals and mixtures identified in 1C355.b to States not Party to 
the CWC, unless an End-Use Certificate issued by the government of 
the importing country is obtained by the exporter, prior to export. 
A license is required to reexport CWC Schedule 3 chemicals and 
mixtures identified in 1C355.b from a State not Party to the CWC to 
any other State not Party to the CWC. (See Sec.  742.18 of the EAR 
for license requirements and policies for toxic and precursor 
chemicals controlled for CW reasons.) AT applies to entire entry. 
The Commerce Country Chart is not designed to determine licensing 
requirements for items controlled for AT reasons in 1C355. A license 
is required, for AT reasons, to export or reexport items controlled 
by 1C355 to a country in Country Group E:1 of Supplement No. 1 to 
part 740 of the EAR. (See part 742 of the EAR for additional 
information on the AT controls that apply to Iran, North Korea, 
Sudan, and Syria. See part 746 of the EAR for additional information 
on the comprehensive trade sanctions that apply to Cuba and Iran. 
See Supplement No. 1 to part 736 of the EAR for export controls on 
Syria.)

License Requirements Notes

    1. Mixtures:
    a. Mixtures containing toxic and precursor chemicals identified 
in ECCN 1C355, in concentrations that are below the control levels 
indicated in 1C355.a and .b, are controlled by ECCN 1C995 and are 
subject to the license requirements specified in that ECCN.
    b. Mixtures containing chemicals identified in this entry are 
not controlled by ECCN 1C355 when the controlled chemical is a 
normal ingredient in consumer goods packaged for retail sale for 
personal use or packaged for individual use. Such consumer goods are 
classified as EAR99.
    Note to mixtures: Calculation of concentrations of CW-controlled 
chemicals:
    a. Exclusion. No chemical may be added to the mixture (solution) 
for the sole purpose of circumventing the Export Administration 
Regulations;
    b. Percent Weight Calculation. When calculating the percentage, 
by weight, of components in a chemical mixture, include all 
components of the mixture, including those that act as solvents.
    2. Compounds: Compounds created with any chemicals identified in 
this ECCN 1C355 may be shipped NLR (No License Required), without 
obtaining an End-Use Certificate, unless those compounds are also 
identified in this entry or require a license for reasons set forth 
elsewhere in the EAR.
    Technical Notes: For purposes of this entry, a ``mixture'' is 
defined as a solid, liquid or gaseous product made up of two or more 
components that do not react together under normal storage 
conditions.
* * * * *

0
35. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1-- Materials, Chemicals, Microorganisms and Toxins, Export 
Control Classification Number (ECCN) 1C395 is amended by revising the 
License Requirements section to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

Category 1--Materials, Chemicals, Microorganisms and Toxins

* * * * *

1C395 Mixtures and medical, analytical, diagnostic, and food testing 
kits not controlled by ECCN 1C350, as follows (See List of Items 
Controlled).

License Requirements

    Reason for Control: CB, CW, AT
    Control(s).
    CB applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled 
for CB reasons in 1C395. A license is required, for CB reasons, to 
export or reexport mixtures controlled by 1C395.a and test kits 
controlled by 1C395.b to States not Party to the CWC (destinations 
not listed in Supplement No. 2 to part 745 of the EAR).
    CW applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled 
for CW reasons. A license is required for CW reasons, as follows, to 
States not Party to the CWC (destinations not listed in Supplement 
No. 2 to part 745 of the EAR): (1) Exports and reexports of mixtures 
controlled by 1C395.a, (2) exports and reexports of test kits 
controlled by 1C395.b that contain CWC Schedule 2 chemicals 
controlled by ECCN 1C350, (3) exports of test kits controlled by 
1C395.b that contain CWC Schedule 3 chemicals controlled by ECCN 
1C350, except that a license is not required, for CW reasons, to 
export test kits containing CWC Schedule 3 chemicals if an End-Use 
Certificate issued by the government of the importing country is 
obtained by the exporter prior to export, and (4) reexports from 
States not Party to the CWC of test kits controlled by 1C395.b that 
contain CWC Schedule 3 chemicals. (See Sec.  742.18 of the EAR for 
license requirements and policies for toxic and precursor chemicals 
controlled for CW reasons.)
    AT applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled 
for AT reasons in 1C395. A license is required, for AT reasons, to 
export or reexport items controlled by 1C395 to a country in Country 
Group E:1 of Supplement No. 1 to part 740 of the EAR. (See part 742 
of the EAR for additional information on the AT controls that apply 
to Iran, North Korea, Sudan, and Syria. See part 746 of the EAR for 
additional information on the comprehensive trade sanctions that 
apply to Cuba and Iran. See Supplement No. 1 to part 736 of the EAR 
for information on export controls that apply to Syria.)

License Requirements Notes

    1. 1C395.b does not control mixtures that contain precursor 
chemicals identified in ECCN 1C350.b or .c in concentrations below 
the control levels for mixtures indicated in 1C350.b or .c. 1C395.a 
and 1C995.a.1 and a.2.a control such mixtures, unless they are 
consumer goods, as described in License Requirements Note 2 of this 
ECCN.
    2. This ECCN does not control mixtures when the controlled 
chemicals are normal ingredients in consumer goods packaged for 
retail sale for personal use. Such consumer goods are classified as 
EAR99.
* * * * *

0
36. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--Materials, Chemicals, Microorganisms and Toxins, Export 
Control Classification Number (ECCN) 1C992 is amended by revising the 
License Requirements section to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

Category 1--Materials, Chemicals, Microorganisms and Toxins

* * * * *

1C992 Commercial charges and devices containing energetic materials, 
n.e.s. and nitrogen trifluoride in a gaseous state.

License Requirements

    Reason for Control: AT, RS

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

    RS applies to entire entry. A license is required for items 
controlled by this entry for export or reexport to Iraq and transfer 
within Iraq for regional stability reasons. The Commerce Country 
Chart is not designed to determine RS license requirements for this 
entry. See Sec. Sec.  742.6 and 746.3 of the EAR for additional 
information.
* * * * *

0
37. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1--Materials, Chemicals, Microorganisms and Toxins, Export 
Control Classification Number (ECCN) 1C995 is amended by revising the 
License Requirements section to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

[[Page 51722]]

Category 1--Materials, Chemicals, Microorganisms and Toxins

* * * * *

1C995 Mixtures not controlled by ECCN 1C350, ECCN 1C355 or ECCN 1C395 
that contain chemicals controlled by ECCN 1C350 or ECCN 1C355 and 
medical, analytical, diagnostic, and food testing kits not controlled 
by ECCN 1C350 or ECCN 1C395 that contain chemicals controlled by ECCN 
1C350.d, as follows (see List of Items Controlled).

License Requirements

    Reason for Control: AT, RS

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

    RS applies to entire entry. A license is required for items 
controlled by this entry for export or reexport to Iraq or transfer 
within Iraq for regional stability reasons. The Commerce Country 
Chart is not designed to determine RS license requirements for this 
entry. See Sec. Sec.  742.6 and 746.3 of the EAR for additional 
information.

License Requirement Notes

    1. This ECCN does not control mixtures containing less than 0.5% 
of any single toxic or precursor chemical controlled by ECCN 
1C350.b, .c, or .d or ECCN 1C355 as unavoidable by-products or 
impurities. Such mixtures are classified as EAR99.
    2. 1C995.c does not control mixtures that contain precursor 
chemicals identified in 1C350.d in concentrations below the levels 
for mixtures indicated in 1C350.d. 1C995.a.2.b controls such 
mixtures, unless they are consumer goods as described in License 
Requirements Note 3 of this ECCN.
    3. This ECCN does not control mixtures when the controlled 
chemicals are normal ingredients in consumer goods packaged for 
retail sale for personal use. Such consumer goods are classified as 
EAR99.
* * * * *

0
38. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1-- Materials, Chemicals, Microorganisms and Toxins, Export 
Control Classification Number (ECCN) 1C997 is amended by revising the 
License Requirements section to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

Category 1--Materials, Chemicals, Microorganisms and Toxins

* * * * *

1C997 Ammonium nitrate, including fertilizers and fertilizer blends 
containing more than 15% by weight ammonium nitrate, except liquid 
fertilizers (containing any amount of ammonium nitrate) or dry 
fertilizers containing less than 15% by weight ammonium nitrate.

License Requirements

    Reason for Control: AT, RS

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

    RS applies to entire entry. A license is required for items 
controlled by this entry for export or reexport to Iraq or transfer 
within Iraq for regional stability reasons. The Commerce Country 
Chart is not designed to determine RS license requirements for this 
entry. See Sec. Sec.  742.6 and 746.3 of the EAR for additional 
information.
* * * * *
0
39. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 1-- Materials, Chemicals, Microorganisms and Toxins, Export 
Control Classification Number (ECCN) 1C999 is amended by revising the 
License Requirements section to read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

Category 1--Materials, Chemicals, Microorganisms and Toxins

* * * * *

1C999 Specific materials, n.e.s., as follows (see List of Items 
Controlled).

License Requirements

    Reason for Control: AT, RS
    AT applies to entire entry. A license is required for items 
controlled by this entry to North Korea for anti-terrorism reasons. 
The Commerce Country Chart is not designed to determine AT license 
requirements for this entry. See Sec.  742.19 of the EAR for 
additional information. RS applies to entire entry. A license is 
required for items controlled by this entry for export or reexport 
to Iraq or transfer within Iraq for regional stability reasons. The 
Commerce Country Chart is not designed to determine RS license 
requirements for this entry. See Sec. Sec.  742.6 and 746.3 of the 
EAR for additional information.
* * * * *

0
40. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 2--Materials Processing, Export Control Classification Number 
(ECCN) 2A994 is amended by revising the License Requirements section to 
read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

Category 2--Materials Processing

* * * * *

2A994 Portable electric generators and specially designed parts.

License Requirements

    Reason for Control: AT
    Control(s).
    AT applies to entire entry. A license is required for items 
controlled by this entry to Cuba, Iran and North Korea. The Commerce 
Country Chart is not designed to determine licensing requirements 
for this entry. See part 746 of the EAR for additional information 
on Cuba and Iran. See Sec.  742.19 of the EAR for additional 
information on North Korea.
* * * * *
0
41. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 2--Materials Processing, Export Control Classification Number 
(ECCN) 2D994 is amended by revising the License Requirements section to 
read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

Category 2--Materials Processing

* * * * *

2D994 ``Software'' specially designed for the ``development'' or 
``production'' of portable electric generators controlled by 2A994.

License Requirements

    Reason for Control: AT
    Control(s).
    AT applies to entire entry. A license is required for items 
controlled by this entry to Cuba, Iran and North Korea for anti-
terrorism reasons. The Commerce Country Chart is not designed to 
determine licensing requirements for this entry. See part 746 of the 
EAR for additional information on Cuba and Iran. See Sec.  742.19 of 
the EAR for additional information on North Korea.
* * * * *

0
42. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 2--Materials Processing, Export Control Classification Number 
(ECCN) 2E994 is amended by revising the License Requirements section to 
read as follows:

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

Category 2--Materials Processing

* * * * *

2E994 ``Technology'' for the ``use'' of portable electric generators 
controlled by 2A994.

License Requirements

    Reason for Control: AT
    Control(s).
    AT applies to entire entry. A license is required for items 
controlled by this entry to Cuba, Iran and North Korea for anti-
terrorism reasons. The Commerce Country Chart is not designed to 
determine licensing requirements for this entry. See part 746 of the 
EAR for additional information on Cuba and Iran. See Sec.  742.19 of 
the EAR for additional information on North Korea.
* * * * *

0
43. In Supplement No. 1 to part 774 (the Commerce Control List), 
Category 3--Electronics, Export Control Classification Number (ECCN) 
3A991 is amended by revising the License Requirements section to read 
as follows:

[[Page 51723]]

Supplement No. 1 to Part 774--The Commerce Control List

* * * * *

Category 3--Electronics

* * * * *

3A991 Electronic devices and components not controlled by 3A001.

License Requirements

    Reason for Control: AT

 
------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

License Requirements Notes

    1. Microprocessors with a ``Composite Theoretical Performance'' 
(``CTP'') below 550 MTOPS listed in subparagraphs (a)(2) or (a)(3) 
of this entry may be shipped NLR (No License Required) when destined 
to North Korea, provided restrictions set forth in other sections of 
the EAR (e.g., end-use restrictions), do not apply. See 
``Information on How to Calculate ``Composite Theoretical 
Performance'' (``CTP'')'' at the end of Category 3.
    2. See 744.17 of the EAR for additional license requirements for 
commodities classified as 3A991.a.1.
* * * *