December 2005 Wassenaar Arrangement Plenary Agreement Implementation: Categories 1, 2, 3, 5 Part I (Telecommunications), 5 Part II (Information Security), 6, 8, and 9 of the Commerce Control List; Wassenaar Reporting Requirements; Definitions; and Certain New or Expanded Export Controls, 52956-52979 [06-7385]

Agencies

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

[Federal Register Volume 71, Number 173 (Thursday, September 7, 2006)]
[Rules and Regulations]
[Pages 52956-52979]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-7385]



[[Page 52955]]

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Part IV





Department of Commerce





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 Bureau of Industry and Security



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15 CFR Parts 740, 743, 772 and 774



 December 2005 Wassenaar Arrangement Plenary Agreement Implementation; 
Final Rule

Federal Register / Vol. 71, No. 173 / Thursday, September 7, 2006 / 
Rules and Regulations

[[Page 52956]]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 740, 743, 772 and 774

[Docket No. 060807211-6211-01]
RIN 0694-AD 73


December 2005 Wassenaar Arrangement Plenary Agreement 
Implementation: Categories 1, 2, 3, 5 Part I (Telecommunications), 5 
Part II (Information Security), 6, 8, and 9 of the Commerce Control 
List; Wassenaar Reporting Requirements; Definitions; and Certain New or 
Expanded Export Controls

AGENCY: Bureau of Industry and Security, Commerce.

ACTION: Final rule.

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SUMMARY: The Bureau of Industry and Security (BIS) maintains the 
Commerce Control List (CCL), which identifies items subject to 
Department of Commerce export controls. This final rule revises the 
Export Administration Regulations (EAR) to implement changes made to 
the Wassenaar Arrangement's List of Dual-Use Goods and Technologies 
(Wassenaar List), and Statements of Understanding maintained and agreed 
to by governments participating in the Wassenaar Arrangement on Export 
Controls for Conventional Arms and Dual-Use Goods and Technologies 
(Wassenaar Arrangement, or WA.) The Wassenaar Arrangement advocates 
implementation of effective export controls on strategic items with the 
objective of improving regional and international security and 
stability. To accommodate the changes to the Wassenaar List, this rule 
revises the EAR by amending certain entries that are controlled for 
national security reasons in Categories 1, 2, 3, 5 Part I 
(Telecommunications), 5 Part II (Information Security), 6, 8, and 9, 
and by amending the EAR Definitions.
    The purpose of this final rule is to make the necessary changes to 
the CCL, definitions of terms used in the EAR, and Wassenaar reporting 
requirements to implement Wassenaar List revisions that were agreed 
upon in the December 2005 Wassenaar Arrangement Plenary Meeting. In 
addition, this rule adds Croatia, Estonia, Latvia, Lithuania, South 
Africa, and Malta to the list of Wassenaar participating states in the 
EAR, which brings the total number of participating states to 40.
    This rule also adds or expands unilateral U.S. controls and 
national security controls on certain items to make them consistent 
with the amendments made to implement the Wassenaar Arrangement's 
decisions.

DATES: Effective Date: This rule is effective September 7, 2006.

FOR FURTHER INFORMATION CONTACT: For questions of a general nature 
contact Sharron Cook, Office of Exporter Services, Bureau of Industry 
and Security, U.S. Department of Commerce at (202) 482-2440 or E-Mail: 
scook@bis.doc.gov.
    For questions of a technical nature contact:
    Category 1: Bob Teer 202-482-4749.
    Category 2: George Loh 202-482-3570.
    Category 3: Brian Baker 202-482-5534.
    Category 5 Part 1: Joe Young 202-482-4197.
    Category 5 Part 2: Joe Young 202-482-4197.
    Category 6: Chris Costanzo 202-482-0718.
    Categories 7 and 8: Dan Squire 202-482-3710.
    Categories 8 and 9: Gene Christensen 202-482-2984.
    Comments regarding the collections of information associated with 
this rule, including suggestions for reducing the burden, should be 
sent to OMB Desk Officer, New Executive Office Building, Washington, DC 
20503--Attention: David Rostker; and to the Office of Administration, 
Bureau of Industry and Security, Department of Commerce, 14th and 
Pennsylvania Avenue, NW., Room 6883, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    In July 1996, the United States and thirty-three other countries 
gave final approval to the establishment of a new multilateral export 
control arrangement, called the Wassenaar Arrangement on Export 
Controls for Conventional Arms and Dual-Use Goods and Technologies 
(Wassenaar Arrangement or WA). The Wassenaar Arrangement contributes to 
regional and international security and stability by promoting 
transparency and greater responsibility in transfers of conventional 
arms and dual-use goods and technologies, thus preventing destabilizing 
accumulations of such items. Participating states have committed to 
exchange information on exports of dual-use goods and technologies to 
non-participating states for the purposes of enhancing transparency and 
assisting in developing common understandings of the risks associated 
with the transfers of these items.

Addition of Croatia, Estonia, Latvia, Lithuania, Malta, and South 
Africa

    In April-June 2005, consultations resulted in decisions to admit 
Croatia, Estonia, Latvia, Lithuania and Malta to the Wassenaar 
Arrangement as new Participating States, and in December 2005 at the 
Plenary meeting, South Africa was added as a new Participating State. 
To reflect this change, this rule adds Croatia, Estonia, Latvia, 
Lithuania, Malta, and South Africa to the list of Wassenaar Arrangement 
Participating States in Supplement No. 1 to Part 743 of the EAR.

Expansion or New Export Controls

    New or expanded anti-terrorism (AT) controls imposed by this rule. 
This rule imposes a unilateral U.S. license requirement to export and 
reexport commodities (and related software and technology) controlled 
under ECCNs 1E998, 2B006.b.1.d, 2D001, 2E001, 2E002, 2E201, 5A001.f, 
5A002.a.9, 5D001, 5D002 , 5E001, 5E002, 6A006.b, 6D003.f, 6E003.f, 
9A012.b, 9B010, 9E001, 9E003.a.11 for AT reasons to Cuba, Iran, North 
Korea, Sudan and Syria, in addition to the national security controls 
imposed to implement the Wassenaar Arrangement's decisions, because 
under Section 6(j) of the Export Administration Act of 1979 a license 
is required for items that could make a significant contribution to the 
military potential of such country or could enhance the ability of such 
country to support acts of international terrorism. There is a general 
policy of denial for applications to terrorism supporting countries, as 
set forth in Part 742 of the EAR. In addition, certain of these 
countries are also subject to embargoes, as set forth in Part 746 of 
the EAR and Supplement No. 1 to Part 736 of the EAR for Syria. A 
license is also required for the export and reexport of these items to 
specially designated terrorists and foreign terrorist organizations, as 
set forth in Part 744 of the EAR; license applications to these parties 
are reviewed under a general policy of denial.
    New or expanded significant items (SI) controls imposed by this 
rule. Through the adoption of revisions by WA, this rule imposes 
foreign policy controls pursuant to section 6 of the Export 
Administration Act of 1979, as amended to export and reexport 
technology required for the development, production or overhaul of 
commercial aircraft engines controlled under ECCN 9E003.a.11 for SI 
reasons to all countries, except Canada, in addition to the national 
security controls imposed to implement the Wassenaar

[[Page 52957]]

Arrangement's decisions. Applications to export and reexport this 
technology will be reviewed on a case-by-case basis to determine 
whether the export or reexport is consistent with U.S. national 
security and foreign policy interests. For designated terrorism-
supporting countries or embargoed countries, the applicable licensing 
policies are found in Parts 742 and 746 of the EAR, and Supplement No. 
1 to Part 736 of the EAR for Syria.
    New or expanded NS Column 2 controls imposed by this rule. This 
rule imposes a license requirement under section 742.4(a) of the EAR 
for exports and reexports of commodities (and related software and 
technology) described in ECCNs 2B006.b.1.d, 5A001.f, 6A006.b, to 
destinations that are not Country Group A:1 destinations, or that are 
not cooperating countries (see Supplement No. 1 to Part 740 of the 
EAR). These destinations have an ``X'' indicated in NS column 2 on the 
Commerce Country Chart of Supplement No. 1 to Part 738 of the EAR. The 
purpose of the controls is to ensure that these items do not make a 
contribution to the military potential of such destination countries 
that would prove detrimental to the national security of the United 
States. For designated terrorism-supporting countries or embargoed 
countries, the applicable licensing policies are found in Parts 742 and 
746 of the EAR, and Supplement No. 1 to Part 736 of the EAR for Syria.
    New or expanded NS Column 1 controls imposed by this rule. This 
rule imposes a license requirement under section 742.4(a) of the EAR 
for exports and reexports to all destinations, except Canada, of 
commodities (and related software and technology) described in ECCNs 
2D001, 2E001, 2E002, 5A002.a.9, 5D002, 5E002, 6D003.f, 6E003.f, 
9A012.b, 9B010, 9D001 and 9D002 (only software for the development and 
production of equipment classified under ECCN 9B010), 9E001 (only 
technology for the development of equipment under ECCNs 9A012 and 
9B010), and 9E003.a.11. These destinations have an ``X'' indicated in 
NS column 1 on the Commerce Country Chart of Supplement No. 1 to Part 
738. The purpose of the controls is to ensure that these items do not 
make a contribution to the military potential of any other country or 
combination of countries that would prove detrimental to the national 
security of the United States. For designated terrorism-supporting 
countries or embargoed countries, the applicable licensing policies are 
found in Parts 742 and 746 of the EAR, and Supplement No. 1 to Part 736 
of the EAR for Syria.
    The licensing policy for national security controlled items 
exported or reexported to any country except a country in Country Group 
D:1 (see Supplement No. 1 to Part 740 of the EAR) is to approve license 
applications unless there is a significant risk that the items will be 
diverted to a country in Country Group D:1. The general policy for 
exports and reexport of items to Country Group D:1 is to approve 
license applications when BIS determines, on a case-by-case basis, that 
the items are for civilian use or would otherwise not make a 
significant contribution to the military potential of the country of 
destination that would prove detrimental to the national security of 
the United States.

Revisions to the Commerce Control List

    This rule revises a number of entries on the Commerce Control List 
(CCL) to implement the December 2005 agreed revisions to the Wassenaar 
List of Dual-Use Goods and Technologies. This rule also revises 
language to provide a complete or more accurate description of 
controls. A description of the specific amendments to the CCL pursuant 
to the December 2005 Wassenaar Agreement is provided below. The ECCNS 
affected, as described below, are 1C008, 1C998, 1E001, 1E998, 2B002, 
2B006, 2E201, 3A001, 3B001, 3B991, 3E001, 5A001, 5A002, 5A991, 5D001, 
5D991, 6A006, 6D003, 6E003, 8A002, 9A001, 9A012, 9B010 (New), 9D001, 
9D002, 9D004, 9E001, 9E002, and 9E003.

Category 1--Materials, Chemicals, ``Microorganisms,'' and Toxins

    ECCN 1C008 is amended by removing and reserving 1C008.c.1, because 
foreign availability has been proven, and continued national security 
control cannot be justified any longer.
    ECCN 1C998 is added to continue antiterrorism (AT) controls on 
polyether ether ketone (PEEK), which was removed from 1C008.c.1. 
Therefore, the materials no longer controlled under ECCN 1C008 continue 
to be controlled for AT reasons under ECCN 1C998 for exports and 
reexports to designated terrorism-supporting countries, as set forth in 
Parts 742 and 746 of the EAR, and as indicated in AT Column 1 of the 
Commerce Country Chart in Supplement No. 1 to Part 738 of the EAR.
    ECCN 1E001 is amended by revising the heading to exclude control of 
development and production technology for ECCNs 1B999, 1C995, 1C996, 
1C997, 1C998, and 1C999, because none of these technologies are 
controlled on the Wassenaar List of Dual-Use Goods and Technologies.

    Note: This rule adds technology for commodities controlled by 
ECCNs 1B999, 1C995, 1C996, 1C997, and 1C999 to ECCN 1E998, which is 
controlled for antiterrorism reasons (AT:1).


    ECCN 1E998 is added to maintain AT controls on technology for the 
development or production of materials that were controlled under 
1C008.c.1 and are now controlled by ECCN 1C998. In addition, references 
to ECCNs 1B999, 1C995, 1C996, 1C997, and 1C999 have been moved from 
ECCN 1E001 to ECCN 1E998 to maintain AT controls on technology for the 
development or production of processing equipment and materials 
described in these ECCNs.

Category 2--Materials Processing

    ECCN 2B002 is amended by adding to the heading ``(see List of Items 
Controlled),'' and adding parameters for control of numerically 
controlled machine tools using a Magnetorheological finishing (MRF) 
process.


    Note: MRF tools are mostly used for optical components; 
therefore optical parameters were selected to describe the 
capability of the machines. One set of such parameters are form and 
finish; form referring to the shape of the optic and finish to the 
surface roughness. A form value describes how close the actual shape 
of the optic is to the design and finish value describes how smooth 
the surface is. MRF tools, such as interferometers and profilers are 
typically used to measure form, while profilometers and 
scatterometers are used to measure finish.


    ECCN 2B006 is amended by:
    a. Revising the NP paragraph in the License Requirements section, 
to except 2B006.b.1.d from NP controls because electronic assemblies do 
not appear under the Nuclear Suppliers Group Annex item 1.B.3;
    b. Adding paragraph 2B006.b.1.d to control electronic assemblies 
specially designed to provide feedback capability in systems controlled 
by 2B006.b.1.c; and
    c. Revising the Note to 2B006.b.1.


    Note: The combination of control and decontrol lead to the 
possibility of an ineffective control. These revisions together will 
enhance the effectiveness of control by explicitly controlling 
certain specially designed components. Equipment under 2B006 is 
controlled for national security reasons (NS:2), nuclear 
nonproliferation reasons (NP:1), and antiterrorism reasons (AT:1); 
Related software for the development, production, or use of 2B006 
commodities is controlled for national security reasons (NS:1) and 
antiterrorism reasons (AT:1) under ECCN 2D001; related technology 
for the development or production of 2B006

[[Page 52958]]

commodities is controlled for national security reasons (NS:1) and 
antiterrorism reasons (AT:1) under ECCNs 2E001 and 2E002 
respectively; related technology for the use of 2B006 commodities is 
controlled for nuclear proliferation reasons (NP:1) and 
antiterrorism reasons (AT:1) under ECCN 2E201.


    ECCN 2E201 is amended by:
    a. Revising the heading to remove ECCN 2B008, because no 
international export control regime has controlled ``use'' technology 
for this ECCN;
    b. Adding to the end of the heading the phrase ``for NP reasons'' 
to assure that ECCN 2E201 only controls use technology for NP 
controlled portions of the ECCNs listed in the heading; and
    c. Revising the NP paragraph in the License Requirements section to 
remove the reference to 2B008.

Category 3--Electronics

    ECCN 3A001 is amended by:
    a. Revising the CIV paragraph in the License Exception section by 
replacing reference to 3A001.a.3.b with 3A001.a.3, because this rule 
moves 3A001.a.3.b to 3A001.a.3; and removing the reference to 
3A001.a.3.c, because this rule deletes this paragraph.
    b. Removing 3A001.a.3.c (interconnects), because they cannot be 
effectively controlled, as they are now integrated into mass market 
products.
    c. Incorporating 3A001.a.3.b into 3A001.a.3 to revise the format of 
3A001.a.3.
    d. Revising the Note 2 to 3A001.b.2 to avoid incorrect 
interpretation that it is only relevant if the device spans more than 
one entire range.
    e. Adding the word ``Discrete'' before 3A001.b.3, which reads 
``Microwave transistors having any of the following:'' to add 
clarification.
    f. Revising the Note to 3A001.b.3 (Microwave transistors) to add 
clarification and avoid misinterpretation.
    g. Revising the operation frequency for microwave sold state 
amplifiers and microwave assemblies/modules containing microwave 
amplifiers from ``3 GHz'' to ``3.2 GHz'' in 3A001.b.4.f. This change 
was made for consistency with the parameter in 3A001.b.2.a (MMIC 
amplifiers), 3A001.b.3.a (transistors) and 3A001.b.4.a (solid state 
amplifiers).
    h. Revising Note 2 to 3A001.b.4 to avoid incorrect interpretation 
that it is only relevant if the device spans more than one entire 
range.
    i. Adding a Technical Note to 3A001.b.4.f.3 to eliminate ambiguity 
in the case of amplifiers having performance both above and below the 
frequency threshold.
    ECCN 3A991 is amended by:
    a. Revising 3A991.c, because the rule entitled, ``December 2004 
Wassenaar Arrangement Plenary Agreement Implementation: Categories 1, 
2, 3, 4, 5 Part I (telecommunications), 6, 7, 8, and 9 of the Commerce 
Control List; Wassenaar Reporting Requirements; Definitions; and 
Certain New or Expanded Export Controls'' that was published in the 
Federal Register on July 15, 2005 (70 FR 41094) modified the 3A001.a.5 
entry for analog-to-digital converters by revising the total conversion 
time in ns to output rate in million words per second, however, the 
3A991.c entry was not appropriately adjusted to conform with this 
revision. Therefore, this rule revises the output rate to millions of 
words per second in 3A991.c.
    b. Removing 3A991.j.2 (rechargeable cells and batteries) because it 
was erroneously created, and is a duplicate entry to 3A001.e.1.b. 
Because of this removal, paragraph 3A991.j.1 will become 3A991.j to 
conform with the structure format of the CCL.
    ECCN 3B001 is amended by:
    a. Removing 3B001.a.1.a, because certain EPI tools are not a 
critical technology in the semiconductor manufacturing process and are 
not a key enabler in the production of semiconductors.
    b. Revising the formula for minimum resolvable feature size in the 
technical note following 3B001.f.1.b by replacing the ``Fm'' with 
``nm'' to conform with the corresponding entry in the Wassenaar 
Arrangement's List of Dual-Use Goods and Technologies.


    Note: For equipment no longer controlled under ECCN 3B001.a.1.a, 
related software controlled under 3D001 and 3D002, and related 
technology controlled under 3E001, there remains a license 
requirement under ECCNs 3B991.b.1.d.1, 3D991, and 3E991, 
respectively, for exports and reexports to designated terrorism-
supporting countries, as set forth in Parts 742 and 746 of the EAR 
and as indicated in AT Column 1 of the Commerce Country Chart.


    ECCN 3B991 is amended by:
    a. Revising the ``unit'' paragraph in the List of Items Controlled 
section to provide instructions to input dollar value in the unit block 
on a license application for components and accessories;
    b. Redesignating paragraphs 3B991.b.1.d.1 and 3B991.b.1.d.2 as 
3B991.b.1.d.2 and 3B991.b.1.d.3 respectively;
    c. Adding a new paragraph 3B991.b.1.d.1 to maintain AT controls for 
stored program controlled equipment for epitaxial growth capable of 
producing a silicon layer with a thickness uniform to less than 2.5% 
across a distance of 200 mm or more (previously controlled under ECCN 
3B001.a.1.a).
    ECCN 3E001 is amended by:
    a. Removing the text in the CIV paragraph of the License Exception 
section and replacing it with ``N/A'', as it is no longer necessary 
because of the agreed upon deletions in 3A001 by the Wassenaar 
Arrangement; and
    b. Revising the heading to add exceptions from this technology 
control over commodities in ECCN 3C992, because this technology is not 
controlled on the Wassenaar List of Dual-Use Goods and Technologies.


    Note: This rule adds ECCN 3C992 to the heading of ECCN 3E991 to 
maintain antiterrorism (AT:1) controls on the technology for the 
development , production or use of commodities described in ECCN 
3C992.


    Note: The equipment no longer controlled under ECCNs 3A001.a.3.c 
and 3B001.a.1.a, related software under ECCNs 3D001 and 3D002, and 
related technology under ECCNs 3E001 continues to be controlled for 
antiterrorism reasons under ECCNs 3A991.a.3, 3B991.b.1.d.1, 3D991, 
and 3E991 respectively, for exports and reexports to designated 
terrorism-supporting countries, as set forth in Parts 742 and 746 of 
the EAR and as indicated in AT Column 1 of the Commerce Country 
Chart. Also note, that technology for the development and production 
of microprocessor microcircuits, micro computer microcircuits and 
microcontroller microcircuits having a composite theoretical 
performance (CTP) of 530 MTOPS or more and an arithmetic logic unit 
with an access width of 32 bits or more continue to be controlled 
for national security reasons under ECCN 3E002.


    ECCN 3E991 is amended by revising the heading to add technology 
controls for development, production, or use of specific processing 
equipment described in 3A991, and materials controlled by 3C992 
(positive resists designed for semiconductor lithography * * *), 
because this technology warrants anti-terrorism (AT) controls.

Category 5--Part I--Telecommunications

    ECCN 5A001 is amended by:
    a. Adding the phrase ``, as follows (see List of Items 
Controlled)'' to the heading.
    b. Revising the License Requirements section to reflect that there 
is a license requirement for jamming equipment described in newly added 
paragraph 5A001.f to countries that have an ``X'' in NS Column 2 of the 
Commerce Country Chart in Supplement No.1 of Part 738.


    Note: 5A001.f is eligible for License Exceptions LVS, GBS, and 
CIV, if the criteria

[[Page 52959]]

in Part 740 of the EAR for the license exception authorizing the 
export or reexport has been met and none of the license exception 
restrictions of Sec.  740.2 apply to the transaction.


    Note: Related software for the development, production, or use 
of this equipment is controlled for national security reasons (NS:1) 
and antiterrorism reasons (AT:1) under ECCN 5D001, and related 
technology for the development, production, or use of this equipment 
is controlled for national security reasons (NS:1) and antiterrorism 
reasons (AT:1) under ECCN 5E001.


    c. Adding ``or antennae'' to the Unit paragraph of the List of 
Items Controlled section.
    d. Revising the second note following 5A001.a.3 to add the phrase 
``designed or modified for use'' to conform with the corresponding 
entry in the Wassenaar Arrangement's List of Dual-Use Goods and 
Technologies.
    e. Adding the phrase ``not controlled in 5A001.b.4'' to 5A001.b.3 
to avoid overlapping controls with the new parameters in 5A001.b.4.
    f. Revising 5A001.b.4 (radio equipment employing ultra-wideband 
modulation techniques) so that it would be independent of the 
modulation technique employed in ultra-wideband (UWB) (i.e., not 
limited to ``time modulation'' (TM)). Today, in addition to TM-UWB, 
Direct Sequence-Spread Spectrum (DS-SS) and Multi-Band Orthogonal 
Frequency Division Multiplex (MB-OFDM) have appeared as different 
modulation techniques for UWB. Because of the emergence of DS-SS and 
MB-OFDM, the previously standing text of 5A001.b.4 and 5A002.a.6, were 
limited to TM-UWB, which created a loophole.
    g. Adding a Technical Note 2 for 5A001.b.6, because the bandwidth 
of audio-coding (20-22,000 Hz) overlaps the bandwidth of voice-coding 
(300-3,400 Hz), and the scope of control in the context of 5A001.b.6 is 
only adopted to ``voice coding.'' It is necessary to clearly indicate 
that ``voice coding'' controlled in 5A001.b.6 is a voice-coding 
technique that uses voice-coding algorithms that are based on peculiar 
human voice characteristics.
    h. Adding a descriptor ``Radio'' to make it ``Radio direction 
finding equipment'' in 5A001.e; changing the ``Instantaneous 
bandwidth'' from ``1 MHz or more'' to ``10 MHz or more'' in 5A001.e.1; 
and replacing the parallel processing parameter with the capability to 
find a line of bearing (LOB) to non-cooperating radio transmitters with 
a signal duration of less than 1 ms in 5A001.e.3.


    Note: In 2004, the Wassenaar Expert's Group determined that ECCN 
7A007 was not navigation or avionics equipment and belonged instead 
in Category 5 Part 1; it was determined that the equipment 
controlled by that ECCN should be placed in a revised paragraph 
5A001.e. In the course of the discussion, it was also found that the 
level of the ECCN 7A007 control was set so high as to not control 
systems of potential concern. In addition, the ECCN 7A007 control 
text is technology-specific.
    Previously, the text in 5A001.e was found to only control one 
specific, highly-advanced system. The revised text of ECCN 5A001.e 
is written in an effort to set forth provisions that control systems 
of concern and support a level playing field in the global 
marketplace. Advanced DF systems, which can direction-find against 
short-duration signals and frequency-hopping radios are of 
particular concern because they can be used by military forces of 
countries of concern to locate and target advanced tactical 
communications equipment.
    Because the system accuracy of a direction finder is directly 
related to the antenna geometry of the direction finder, and thus 
does not imply a high degree of know-how, this revision is based on 
the control parameter ``Instantaneous bandwidth'', which is the 
decisive factor for direction finding against frequency-hopping 
radios and signals of the short duration type.


    i. Adding paragraph 5A001.f to control sophisticated cellular phone 
jamming equipment. Equipment of this type is capable of selectively 
jamming cellular phone communications, which can pose a national 
security threat.
    ECCN 5A991 is amended by:
    a. Adding the definition of `Asynchronous transfer mode' (`ATM') to 
the related definitions paragraph of the List of Items Controlled 
section; and
    b. Replacing the double quotes with single quotes around the term 
`Asynchronous transfer mode' (`ATM') in paragraph 5A991.c.12, to 
signify that the definition is found in the related definitions section 
of 5A991 and no longer in Part 772 of the EAR.
    ECCN 5D001 is amended by:
    a. Moving 5D001.c.1 into 5D001.c;
    b. Deleting the reserved paragraph 5D001.c.2; and
    c. Removing 5D001.c.3, because consensus was reached to delete 
5D001c3 controlling the source code specially designed for dynamic 
adaptive routing. This technology has become widely available due to 
the recent expansion of packet telecommunication networks, such as the 
internet.


    Note: The software removed from ECCN 5D001.c.3, and related 
technology under ECCN 5E001 continue to be controlled for 
antiterrorism (AT:1) reasons under ECCNs 5D991 and 5E991 
respectively, for exports and reexports to designated terrorism-
supporting countries, as set forth in Parts 742 and 746 of the EAR 
and as indicated in AT Column 1 of the Commerce Country Chart.


    ECCN 5D991 is amended by revising the heading and the ``items'' 
paragraph in the List of Items Controlled section to add reference to 
the software removed from 5D001.c.3 (``Software'', other than in 
machine-executable form, specially designed for ``dynamic adaptive 
routing'').

Category 5--Part 2--Information Security

    ECCN 5A002 is amended by:
    a. Adding a sentence to the ``Related Controls'' paragraph of the 
List of Items Controlled section to note that 5A002 does not control 
commodities eligible for the Cryptography Note (Category 5 Part 2 Note 
3).
    b. Adding the phrase ``not controlled in 5A002.a.6.'' to 5A002.a.5 
to avoid overlapping controls with the new parameters in 5A002.a.6.
    c. Adding new control parameters to 5A002.a.6, including adding 
networked identification code to the type of codes that could be 
generated using cryptographic techniques. Also adding control 
characteristics for systems using ultra-wideband modulation techniques, 
i.e., A bandwidth exceeding 500 MHz; or a ``fractional bandwidth'' of 
20% or more.

    Note: Following WA agreement reached on revised text for 
5A001.b.3 and 5A001.b.4 in Category 5 Part 1, to control new ultra 
wideband techniques that had appeared on the market, agreement was 
reached by WA on consequential changes in 5A002.a.5 & 5A002.a.6.in 
Category 5 Part 2.


    d. Adding paragraph 5A002.a.9 to add controls for quantum 
cryptography because it represents advancement in cryptography that can 
improve information security in two important ways: (1) It may be used 
in conjunction with digital cryptography to securely distribute shared 
keys for a digital symmetric algorithm and (2) it may make for a fast 
and highly secure ``one-time-pad'' cipher. A Technical Note that 
describes quantum cryptography is also added to this paragraph.


    Note: This equipment under ECCN 5A002.a.9 is controlled for 
encryption items (EI) reasons, national security reasons (NS:1) and 
antiterrorism reasons (AT:1). Related software for the development, 
production, and use of this equipment is controlled for encryption 
items (EI) reasons, national security reasons (NS:1), and 
antiterrorism reasons (AT:1) under ECCN 5D002; related technology 
for the development, production, and use of this equipment is 
controlled for encryption items (EI) reasons, national security 
reasons (NS:1), and antiterrorism reasons (AT:1) under ECCN 5E002.


    e. Adding a new paragraph c.4 to the Note at the top of the items 
paragraph in the List of Items Controlled section of

[[Page 52960]]

5A002 to clarify that model-based simulation software that is specially 
designed and limited to protect libraries, design attributes, or 
associated data for the design of semiconductor devices or integrated 
circuits, is not controlled under the corresponding software entry ECCN 
5D002. The Note describes software for which the underlying encryption 
functionality is for specific purposes such as protection of 
intellectual property, and the underlying encryption functionality 
(including the protected libraries, design attributes or associated 
data) is not directly accessible to the end-user.
    f. Moving an existing nota bene (``NB'') so that it immediately 
follows the text of Note d to ECCN 5A002, to conform with the 
corresponding entry in the Wassenaar Arrangement's List of Dual-Use 
Goods and Technologies.

Category 6--Sensors

    ECCN 6A006 is amended by:
    a. Revising the heading to add newly controlled ``underwater 
electric field sensors;''
    b. Revising ``6A006.c'' to read ``6A006.d'' in the LVS paragraph in 
the License Exceptions section, because magnetic compensation systems, 
as well as compensation systems for underwater electric field sensors 
are now controlled under 6A006.d;
    c. Revising the ``Related Controls'' paragraph in the List of Items 
Controlled section to add an exemption from control for instruments 
controlled by 6A006 that are used for ``fishery applications,'' such as 
research on fish reproduction.
    d. Redesignating 6A006.b (magnetic gradiometers) as 6A006.c;
    e. Adding a new paragraph 6A006.b to control Underwater Electric 
Field Sensors, because they now have civil applications, such as 
underwater exploration, salvage, and biological and medical sciences, 
and no longer are strictly used in military applications, such as 
detection of submarines and underwater mines.
    ECCN 6D003 is amended by:
    a. Revising 6D003.f from reading ``Magnetometers.'' to read 
``Magnetic and Electric Field Sensors'' in conformance with new 
paragraph 6A006.b.
    b. Revising 6D003.f.1 and 6D003.f.2 by adding ``and electric 
field'' in conformance with new paragraph 6A006.b.
    ECCN 6E003 is amended by revising the title of 6E003.f from 
``Magnetometers'' to read ``Magnetic and Electric Field Sensors.''


    Note: Equipment under 6A006 is controlled for national security 
reasons (NS:2) and antiterrorism reasons (AT:1); Related software 
for magnetic and electric field sensors is controlled for national 
security reasons (NS:1) and antiterrorism reasons (AT:1) under ECCN 
6D003; and related technology for magnetic and electric field 
sensors is controlled for national security reasons (NS:1) and 
antiterrorism reasons (AT:1) under ECCN 6E003.


Category 8--Marine

    ECCN 8A002 is amended by adding a decontrol note in 8A002.f for 
digital cameras specially designed for consumer purposes, other than 
those employing electronic image multiplication techniques. This note 
was added because of the foreign availability of digital cameras.

Category 9--Propulsion Systems, Space Vehicles and Related Equipment

    ECCN 9A001 is amended by:
    a. Revising the ``unit'' paragraph in the List of Items Controlled 
section to read ``number'' instead of ``Equipment in number; parts and 
accessories in $ value.''
    b. Revising paragraph 2 in the Note to 9A001.a, because it was 
discovered that the International Civil Aviation Organization (ICAO) 
issues a document equivalent to a civil Type Certificate that the 
participating members of Wassenaar found acceptable for export control 
purposes. Reference to that document has been added to paragraph 2.a 
within the Note to 9A001.a. The approval of the design of certain types 
of aircraft, engines and propellers is signified by the issue of a Type 
Certificate. In general there will be a Type Certificate Data Sheet 
(TCDS) associated with each Type Certificate issued. The TCDS records 
the basis of certification, the designation of each approved variant 
and general information concerning the design.
    ECCN 9A012 is amended by:
    a. Revising the heading to add double quotes around the term 
``unmanned aerial vehicles'' to indicate that this is a term now 
defined in Part 772. Also, adding the abbreviation ``UAV'' to the 
heading.
    b. Revising the heading to add associated systems, equipment, and 
components, because Wassenaar has agreed to expand this ECCN entry. It 
was determined that it would be prudent for the control of conventional 
arms to place export controls on the associated systems, equipment, and 
components used for remote controlling or guidance of the UAV or to 
convert a manned aircraft to an UAV.
    c. Revising the Related Controls paragraph of the List of Items 
Controlled section to add a reference to section 744.3 ``Restrictions 
on Certain Rocket Systems (including ballistic missile systems and 
space launch vehicles and sounding rockets) and Unmanned Air Vehicles 
(including cruise missile systems, target drones and reconnaissance 
drones) End-Uses.''
    d. Redesignating paragraphs 9A012.a and 9A012.b as 9A012.a.1 and 
9A012.a.2.
    e. Adding a new paragraph 9A012.b for associated systems, equipment 
and components.


    Note: Related software for the development and production of 
equipment controlled under ECCN 9A012 is controlled for national 
security reasons (NS:1) and antiterrorism reasons (AT:1) under ECCN 
9D001 and 9D002 respectively; software specially designed or 
modified for the ``use'' of full authority digital electronic engine 
controls (FADEC) for propulsion systems controlled by 9A012 is 
controlled for antiterrorism reasons (AT:1) under ECCN 9D003; and 
related technology for the development of this equipment is 
controlled for national security reasons (NS:1) and antiterrorism 
reasons (AT:1) under ECCN 9E001.


    ECCN 9B010 is added to control ``equipment specially designed for 
the production of ``UAVs'' and associated systems, equipment and 
components controlled by 9A012.''
    The Participating States of the Wassenaar Arrangement agreed to 
control equipment, software and technology for the conversion of 
aircraft for UAV operation, because of attempts by countries of concern 
to acquire such conversion capability for conventional arms and 
terrorism purposes.

    Note: Equipment under 9B010 is controlled for national security 
reasons (NS:1) and antiterrorism reasons (AT:1); Related software 
for the development and production of this equipment is controlled 
for national security reasons (NS:1) and antiterrorism reasons 
(AT:1) under ECCN 9D001 and 9D002 respectively; software specially 
designed or modified for the ``use'' of full authority digital 
electronic engine controls (FADEC) for propulsion systems controlled 
by 9B010 is controlled for antiterrorism reasons (AT:1) under ECCN 
9D003; and related technology for the development and production of 
this equipment is controlled for national security reasons (NS:1) 
and antiterrorism reasons (AT:1) under ECCN 9E001 and 9E002 
respectively.


    ECCNs 9D001 and 9D002 have been amended by revising the License 
Requirement section in each to add ECCN 9B010 to the NS paragraph.
    ECCN 9D004 is amended by adding a new paragraph 9D004.e to control 
``software'' specially designed or modified for the ``use'' of ``UAVs'' 
and associated systems, equipment and components controlled by 9A012.
    ECCN 9E001 has been amended by:

[[Page 52961]]

    a. Revising the heading to include 9A012; and
    b. Adding 9A012 and 9B010 to the NS paragraph in the License 
Requirement section.
    ECCN 9E002 is amended by removing the License Requirement Note that 
refers to Wassenaar reporting requirements in section 743.1 of the EAR, 
because this ECCN is not eligible for License Exceptions GBS, CIV, TSR, 
LVS, CTP, or GOV and therefore does not require Wassenaar reporting.
    ECCN 9E003 is amended by revising 9E003.a.11 to remove the 
qualifiers, (i.e., ``wide chord'' and ``without part-span support''), 
so that ``technology'' ``required'' for the ``development'' or 
``production'' of all types of hollow fan blades for gas turbine 
engines are controlled for NS:1, SI, and AT:1 reasons. The advantage of 
using this type of blade is weight saving, stress reduction and an 
element of foreign object damage protection.

Section 740.11 and Supplement No. 1 to Section 740.11--License 
Exception GOV

    This rule amends section 740.11 (a)(2)(vi)(G) to add 9A011 as it 
relates to ECCN 9D001 software, and to add a new paragraph 
(a)(2)(vi)(H) to cover software controlled by ECCN 9D002, specially 
designed or modified for the ``production'' of equipment controlled by 
ECCN 9A011. These items may not be exported or reexported for official 
international safeguard use by the International Atomic Energy Agency 
(IAEA) and the European Atomic Energy Community (EURATOM) under License 
Exception GOV to destinations other than Austria, Belgium, Canada, 
Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, 
the Netherlands, Portugal, Spain, Sweden, and the United Kingdom.
    Supplement No. 1 to section 740.11 is amended to:
    a. Add 6D001 (specially designed for the ``production'' or 
``development'' of equipment in 6A008.1.3 or 6B008) and 6D003.a to 
paragraphs (a)(1)(vii)(D) and (b)(1)(vii)(D), which relate to 6E001 
technology;
    b. Add ECCN 9A011 to (a)(1)(vi)(G) that relates to 9D001 software;
    c. Add a new paragraph (a)(1)(vi)(H) to cover software controlled 
by ECCN 9D002, specially designed or modified for the ``production'' of 
equipment controlled by ECCN 9A011;
    d. Add to paragraph (a)(1)(vii)(G) 9A011, 9D001 and 9D002 as they 
relate to the development and production of 9A011, and as they relate 
to ECCN 9E001; and
    e. Add a new paragraph (a)(1)(vii)(H) to cover technology 
controlled by ECCN 9E002 for the production of equipment in 9A011.
    Therefore, 6E001 technology for the development of software in 
ECCNs 6D001 (specially designed for the ``production'' or 
``development'' of equipment in 6A008.1.3 or 6B008) and 6D003; 9D001 
for the development of equipment controlled by 9A011; 9D002 specially 
designed or modified for the production of equipment controlled by 
9A011, 9D001 or 9D002 for the development or production of 9A011; and 
9E002 for the production of equipment in 9A011, which are listed on the 
Wassenaar Arrangement's Very Sensitive List, are no longer eligible for 
License Exception GOV when consigned to and for the official use of any 
agency of a cooperating government within the territory of any 
cooperating government, or when consigned to and for the official use 
of a diplomatic or consular mission of a cooperating government located 
in any country in Country Group B of Supplement No. 1 to Part 740 of 
the EAR.

Section 740.17 ``License Exception ENC''

    This rule amends the introductory paragraph and paragraphs (a), 
(b)(1), and (b)(2) to state that newly controlled quantum cryptography 
items described in 5A002.a.9 of the Commerce Control List (CCL) in 
Supplement No. 1 to Part 774 of the EAR are eligible for License 
Exception ENC. Paragraph (a) of Section 740.17 of the EAR authorizes 
certain exports, reexports, and technical assistance to countries 
listed in Supplement No. 3 to Part 740 of the EAR under License 
Exception ENC. The countries in Supplement No. 3 to Part 740 represent 
the European Union's ``license-free zone'' and include: Austria, 
Australia, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, 
France, Germany, Greece, Hungary, Ireland, Italy, Japan, Latvia, 
Lithuania, Luxembourg, Malta, Netherlands, New Zealand, Norway, Poland, 
Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland, and the 
United Kingdom. Paragraph (b) of Section 740.17 of the EAR authorizes 
exports and reexports destined to U.S. subsidiaries under License 
Exception ENC and, for other end-users, exports and reexports to 
countries not listed in Supplement No. 3 to Part 740 of the EAR. (This 
rule renames this Paragraph (b) to make clear the scope of this 
paragraph.) Paragraph (b)(1) of Section 740.17 of the EAR authorizes 
exports and reexports of encryption items for U.S. subsidiaries. 
Paragraph (b)(2) of Section 740.17 of the EAR authorizes exports and 
reexports of encryption commodities and software to non-government end-
users in countries not listed in Supplement No. 3 to Part 740 of the 
EAR under License Exception ENC. Quantum cryptography items are not 
eligible for export or reexport to ``government end-users'' under 
License Exception ENC outside the countries listed in Supplement No. 3 
to Part 740 of the EAR, because of the provisions of Sec.  
740.17(b)(3)(i)(B) and Sec.  740.17(b)(2)(iii)(E) of the EAR. To 
receive written authorization from the Bureau of Industry and Security 
(BIS) to export your encryption items under License Exception ENC, you 
must submit an encryption review request to BIS and the ENC Encryption 
Request Coordinator. For guidance on applying for authorization under 
License Exception ENC go to BIS's Web page https://www.bis.doc.gov/
encryption/enc.htm.

Section 743.1 ``Wassenaar Arrangement''

    Sec.  743.1 is amended by:
     Deleting ECCN 2B003 from the Note to paragraph (c)(1)(ii) 
to conform to the Wassenaar Sensitive List. This relates to Wassenaar 
reporting requirements for ECCNS 2D001, 2E001, and 2E002.
     Removing 5A001.b.5 from paragraph (c)(1)(v), because BIS 
does not need to require reporting for commodities that are not 
eligible for License Exceptions GBS, CIV, TSR, LVS, CTP, or GOV. BIS 
can get the necessary information to fulfill U.S. obligations for 
reporting to the Wassenaar Arrangement from license application data.
     Adding 5A001.b.5 under the 5B001.a in paragraph (c)(1)(v), 
because 5B001.a is specially designed for 5A001.b.5, is eligible for 
license exception and is on the Wassenaar Arrangement's Sensitive List.
     Adding 5D001.a entry in paragraph (c)(1)(v), because 
software for the development or production of equipment, components, or 
accessories classified under 5B001.a is on the Wassenaar Arrangement's 
Sensitive List and is eligible for License Exceptions CIV and TSR. This 
addition is necessary in order for the United States to fulfill its 
reporting obligations to the Wassenaar Arrangement.
     Adding 6A002.a.1.a, 6A002.a.1.b, 6A002.a.2.a (changing 350 
uA/Im to 700 uA/Im in 6A002.a.2.a.3.a), 6A002.a.3, 6A002.c, 6A002.e; 
6A003.b.3, 6A003.b.4, and 6A006.a to paragraph (c)(1)(vi), because 
these commodities are on the Wassenaar Arrangement's Sensitive List and 
are eligible for license exception under the EAR. This addition is 
necessary in order for the United

[[Page 52962]]

States to fulfill its reporting obligations to the Wassenaar 
Arrangement.
     Revising 6A006.g to 6A006.d in paragraph (c)(1)(vi), 
because this paragraph has moved under ECCN 6A006.
     Removing 6D003.a from paragraph (c)(1)(vi), because that 
ECCN is not eligible for License Exceptions LVS, GBS, CIV, APP, TSR, or 
GOV.
     Removing 6A006.h from paragraph (c)(1)(vi), because this 
paragraph has been removed from 6A006 by agreement of the Wassenaar 
Arrangement.
     Adding a note to paragraph (c)(1)(vi) to clarify the 
reporting requirement for 6A002.a.3.
     Redesignating paragraphs (c)(1)(vii) and (c)(1)(viii) as 
paragraphs (c)(1)(viii) and (c)(1)(ix), in order to add a new paragraph 
(c)(1)(vii) to cover Category 7: 7D002; 7D003.c, d.1 to d.4, and d.7; 
7E001; and 7E002, because these commodities are on the Wassenaar 
Arrangement's Sensitive List and are eligible for license exception 
under the EAR. This addition is necessary in order for the United 
States to fulfill its reporting obligations to the Wassenaar 
Arrangement.
     Adding 9D001 (for 9B001.b and 9E003 as described in this 
paragraph), 9D002 (for 9B001.b), 9D004.a, 9D004.c, 9E001 for technology 
controlled for NS reasons, 9E002, 9E003.a.2, a.3.b, a.3.c, a.4, a.5, 
a.8, and a.9 to newly designated paragraph (c)(1)(ix), because these 
commodities are on the Wassenaar Arrangement's Sensitive List and are 
eligible for license exception under the EAR. This addition is 
necessary in order for the United States to fulfill its reporting 
obligations to the Wassenaar Arrangement.
    This rule revises the title to Supplement No. 1 to Part 743 of the 
EAR from ``Wassenaar Arrangement Member Countries'' to ``Wassenaar 
Arrangement Participating States,'' because this is the term used by 
the Wassenaar Arrangement to address its members.
    In addition, this rule adds Croatia, Estonia, Latvia, Lithuania, 
Malta, and South Africa to the list of Wassenaar Arrangement 
Participating States in Supplement No. 1 to Part 743 of the EAR, 
because they were recently admitted to the Wassenaar Arrangement.

Definitions in Part 772

    This rule removes the definition for ``Asynchronous transfer mode'' 
(``ATM'') from section 772.1 of the EAR, and moves it to the related 
definitions paragraph in the List of Items Controlled section of ECCN 
5A991, because the term is only referred to in 5A991.c.12.
    This rule adds a reference to Category 2 in the definition for 
``Electronic assembly,'' because of the addition of controls on 
electronic assemblies in 2B006.b.1.
    This rule removes the definition for ``time-modulated ultra-
wideband,'' because the Wassenaar Arrangement agreed to remove it from 
5A001.b.4 and 5A002.a.6, and instead use the undefined term ``ultra-
wideband modulation techniques.''
    This rule adds the definition for ``unmanned aerial vehicle'' 
(``UAV'') to section 772.1, which is used in ECCNs 9A012 and newly 
added ECCN 9B010. In addition, UAVs are addressed in section 744.3 of 
the EAR.
    Although the Export Administration Act expired on August 20, 2001, 
the President, through Executive Order 13222 of August 17, 2001, 3 CFR, 
2001 Comp., p. 783 (2002), as extended by the Notice of August 3, 2006, 
71 FR 44551 (August 7, 2006), has continued the Export Administration 
Regulations in effect under the International Emergency Economic Powers 
Act.

Saving Clause

    Shipments of items removed from license exception eligibility or 
eligibility for export without a license as a result of this regulatory 
action that were on dock for loading, on lighter, laden aboard an 
exporting carrier, or en route aboard a carrier to a port of export, on 
September 7, 2006, pursuant to actual orders for export to a foreign 
destination, may proceed to that destination under the previous license 
exception eligibility or without a license so long as they have been 
exported from the United States before October 10, 2006. Any such items 
not actually exported before midnight, on October 10, 2006, require a 
license in accordance with this regulation.

Rulemaking Requirements

    1. This final rule has been determined to be not significant for 
purposes of E.O. 12866.
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor shall any person 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 rule 
involves two collections of information subject to the PRA. One of the 
collections has been approved by OMB under control number 0694-0088, 
``Multi-Purpose Application,'' and carries a burden hour estimate of 58 
minutes for a manual or electronic submission. The other of the 
collections has been approved by OMB under control number 0694-0106, 
``Reporting and Recordkeeping Requirements under the Wassenaar 
Arrangement,'' and carries a burden hour estimate of 21 minutes for a 
manual or electronic submission. Send comments regarding these burden 
estimates or any other aspect of these collections of information, 
including suggestions for reducing the burden, to OMB Desk Officer, New 
Executive Office Building, Washington, DC 20503; and to the Office of 
Administration , Bureau of Industry and Security, Department of 
Commerce, 14th and Pennsylvania Avenue, NW., Room 6883, Washington, DC 
20230.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under E.O. 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 and foreign affairs 
function of the United States (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 final rule. Because a notice of 
proposed rulemaking and an opportunity for public comment are not 
required to be given for this rule under the Administrative Procedure 
Act or by any other law, the analytical requirements of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. Therefore, 
this regulation is issued in final form. Although there is no formal 
comment period, public comments on this regulation are welcome on a 
continuing basis. Comments should be submitted to Sharron Cook, Office 
of Exporter Services, Bureau of Industry and Security, Department of 
Commerce, P.O. Box 273, Washington, DC 20044.

List of Subjects

15 CFR Part 740

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

15 CFR Part 743

    Administrative practice and procedure, Reporting and recordkeeping 
requirements.

15 CFR Part 772

    Exports.

[[Page 52963]]

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

0
Accordingly, Parts 740, 743, 772 and 774 of the Export Administration 
Regulations (15 CFR Parts 730-799) are amended as follows:

PART 740--[AMENDED]

0
1. The authority citation for Part 740 continues 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
2. Section 740.11 is amended by revising (a)(2)(vi)(G) and adding a 
paragraph (a)(2)(vi)(H) to read as follows:


Sec.  740.11  Governments, International Organizations, and 
International Inspections Under the Chemical Weapons Convention (GOV).

* * * * *
    (a) * * *
    (2) * * *
    (vi) * * *
    (G) Controlled by 9D001, specially designed or modified for the 
``development'' of equipment or ``technology'' controlled by 9A011, 
9E003.a.1, or 9E003.a.3.a; and
    (H) Controlled by 9D002, specially designed or modified for the 
``production'' of equipment controlled by 9A011.
* * * * *

0
3. Supplement No. 1 to 740.11 is amended by:
0
a. Revising paragraphs (a)(1)(vi)(F) and (a)(1)(vi)(G), as set forth 
below;
0
b. Adding paragraphs (a)(1)(vi)(H) and (b)(1)(vi)(H), as set forth 
below; and
0
c. Revising paragraphs (a)(1)(vii)(D), (a)(1)(vii)(G), (a)(1)(vii)(H), 
(b)(1)(vi)(F), (b)(1)(vi)(G), (b)(1)(vii)(D), and (b)(1)(vii)(H) to 
read as follows:

Supplement No. 1 to Section 740.11--Additional Restrictions on Use of 
License Exception GOV

    (a) * * *
    (1) * * *
    (vi) * * *
    (F) Controlled by 8D001, specially designed for the 
``development'' or ``production'' of equipment controlled by 
8A001.b, 8A001.d, or 8A002.o.3.b;
    (G) Controlled by 9D001, specially designed or modified for the 
``development'' of equipment or ``technology'' controlled by 9A011, 
9E003.a.1, or 9E003.a.3.a; and
    (H) Controlled by 9D002,specially designed or modified for the 
``production'' of equipment controlled by 9A011;
    (vii) * * *
    (D) Controlled by 6E001 for the ``development'' of equipment or 
``software'' in 6A001.a.1.b.1, 6A001.a.2.a.1, 6A001.a.2.a.2, 
6A001.a.2.a.3, 6A001.a.2.a.5, 6A001.a.2.a.6, 6A001.a.2.b, 
6A001.a.2.c, 6A001.a.2.e, 6A001.a.2.f, 6A002.a.1.c, 6A008.1.3, 
6B008, 6D001 (specially designed for the ``production'' or 
``development'' of equipment in 6A008.1.3 or 6B008), or 6D003.a as 
described in paragraph (a)(1) of this Supplement; and
* * * * *
    (G) Controlled by 9E001 for the ``development'' of equipment or 
``software'' in 9A011, 9D001 for the ``development'' of 9A011, or 
9D002 for the ``production'' of 9A011; and
    (H) Controlled by 9E002 for the ``production'' of equipment in 
9A011; and
* * * * *
    (b) * * *
    (1) * * *
    (vi) * * *
    (F) Controlled by 8D001, specially designed for the 
``development'' or ``production'' of equipment controlled by 
8A001.b, 8A001.d, or 8A002.o.3.b;
    (G) Controlled by 9D001, specially designed or modified for the 
``development'' of equipment or ``technology'' controlled by 9A011, 
9E003.a.1, or 9E003.a.3.a; and
    (H) Controlled by 9D002, specially designed or modified for the 
``production'' of equipment controlled by 9A011;
    (vii) * * *
    (D) Controlled by 6E001 for the ``development'' of equipment or 
``software'' in 6A001.a.1.b.1, 6A001.a.2.a.1, 6A001.a.2.a.2, 
6A001.a.2.a.3, 6A001.a.2.a.5, 6A001.a.2.a.6, 6A001.a.2.b, 
6A001.a.2.c, 6A001.a.2.e, 6A001.a.2.f, 6A002.a.1.c, 6A008.1.3, 
6B008, 6D001 (specially designed for the ``production'' or 
``development'' of equipment in 6A008.1.3 or 6B008), or 6D003.a as 
described in paragraph (a)(1) of this Supplement; and
* * * * *
    (H) Controlled by 9E002 for the production of 9A011; and
* * * * *


0
4. Section 740.17 is amended by:
0
a. Revising the phrase ``by ECCNs 5A002.a.1, .a.2, .a.5, and .a.6, 
5B002, and 5D002'' to read ``by ECCNs 5A002.a.1, .a.2, .a.5, .a.6, and 
.a.9, 5B002, and 5D002'' in the introductory paragraph;
0
b. Revising the heading of paragraph (b) to read as set forth below; 
and
0
c. Revising the phrase ``ECCNs 5A002.a.1, .a.2, .a.5, or .a.6,'' to 
read ``ECCNs 5A002.a.1, .a.2, .a.5, .a.6, or .a.9,'' in paragraphs (a) 
introductory text, (b)(1) introductory text, and (b)(2) introductory 
text.


Sec.  740.17  Encryption Commodities and Software (ENC).

* * * * *
    (b) Exports and reexports for U.S. subsidiaries and to countries 
not listed in Supplement No. 3 to this part.
* * * * *

PART 743--[AMENDED]

0
5. The authority citation for Part 743 is revised to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; Pub. L. 106-508; 50 
U.S.C. 1701 et seq.; Notice of August 3, 2006, 71 FR 44551 (August 
7, 2006).

0
6. Section 743.1 is amended by:
0
a. Revising the note to paragraph (c)(1)(ii), as set forth below;
0
b. Revising paragraphs (c)(1)(v), and (c)(1)(vi), as set forth below;
0
c. Redesignating paragraphs (c)(1)(vii) and (viii) as (viii) and (ix);
0
d. Adding a new paragraph (c)(1)(vii) as set forth below; and
0
e. Revising newly designated paragraphs (c)(1)(viii) and (c)(1)(ix) to 
read as follows:


Sec.  743.1  Wassenaar Arrangement.

* * * * *
    (c) * * *
    (1) * * *
    (ii) * * *


    Note to paragraph (c)(1)(ii): Reports for 2D001, are for 
``software'', other than that controlled by 2D002, specially 
designed for the ``development'' or ``production'' of the equipment 
in 2B001.a or .b (changing 6[mu]m to 5.1[mu]m in 2B001.a.1 and 
2B001.b.1.a; and adding ``a positioning accuracy with ``all 
compensations available'' equal to or less (better) than 5.1[mu]m 
along any linear axis'' to the existing text for 2B001.b.2) of the 
Commerce Control List (CCL).
    Reports for 2E001, are for ``technology'' according to the 
General Technology Note for ``development'' of ``software'' as 
described in this paragraph for 2D001, or for the equipment in 
2B001.a or .b (changing 6[mu]m to 5.1[mu]m in 2B001.a.1 and 
2B001.b.1.a; and adding ``a positioning accuracy with ``all 
compensations available'' equal to or less (better) than 5.1[mu]m 
along any linear axis'' to the existing text for 2B001.b.2) of the 
CCL.
    Reports for 2E002, are for ``technology'' according to the 
General Technology Note for ``production'' of the equipment in 
2B001.a or .b (changing 6[mu]m to 5.1[mu]m in 2B001.a.1 and 
2B001.b.1.a; and adding ``a positioning accuracy with ``all 
compensations available'' equal to or less (better) than 5.1[mu]m 
along any linear axis'' to the existing text for 2B001.b.2) of the 
CCL.


* * * * *
    (v) Category 5: 5A001.b.3; 5B001.a (items specially designed for 
5A001.b.3 and b.5); 5D001.a (specially designed for the ``development'' 
or ``production'' of equipment, function, or features in 5A001.b.3 or 
5B001.a as described in this paragraph) and 5D001.b (specially designed 
or modified to support ``technology'' under 5E001.a as described in 
this paragraph); and 5E001.a (for the ``development'' or ``production'' 
of equipment, function, features, or ``software'' in 5A001.b.3,

[[Page 52964]]

5B001.a, 5D001.a or 5D001.b as described in this paragraph);
    (vi) Category 6: 6A001.a.1.b (changing 10 kHz to 5 kHz and adding 
the text ``or a sound pressure level exceeding 224 dB (reference 1 
[mu]Pa at 1 m) for equipment with an operating frequency in the band 
from 5 kHz to 10 kHz inclusive'' to the existing text in 6A001.a.1.b.1) 
, and .a.2.d; 6A002.a.1.a, 6A002.a.1.b, 6A002.a.2.a (changing 350 uA/Im 
to 700 uA/Im in 6A002.a.2.a.3.a), 6A002.a.3, 6A002.b, 6A002.c, 6A002.e; 
6A003.b.3, 6A003.b.4; 6A004.c and .d; 6A006.a, 6A006.d (excluding 
compensators which provide only absolute values of the earth's magnetic 
field as output (i.e., the frequency bandwidth of the output extends 
from DC to at least 0.8 Hz); 6A008.d, .h, and .k; 6D001 (for 6A004.c 
and .d and 6A008.d, .h, and .k); 6E001 (for equipment and software 
listed in this paragraph); and 6E002 (for equipment listed in this 
paragraph);


    Note to paragraph (c)(1)(vi): The reporting requirement for 
6A002.a.3 excludes the following ``focal plane arrays'':

    a. Platinum Silicide having less than 10,000 elements;
    b. Iridium Silicide;
    c. Indium Antimonide or Lead Selenide having less than 256 
elements;
    d. Indium Arsenide;
    e. Lead Sulphide;
    f. Indium Gallium Arsenide;
    g. Mercury Cadmium Telluride, as follows:
    1. `Scanning Arrays' having any of the following:
    a. 30 elements or less; or
    b. Incorporating time delay-and-integration within the element and 
having 2 elements or less;
    2. `Staring Arrays' less than 256 elements;
    Technical Notes:
     `Scanning Arrays' are defined as ``focal plane arrays'' designed 
for use with a scanning optical system that images a scene in a 
sequential manner to produce an image.
     `Staring Arrays' are defined as ``focal plane arrays'' designed 
for use with a non-scanning optical system that images a scene.
    h. Gallium Arsenide or Gallium Aluminum Arsenide quantum well 
having less than 256 elements;

    (vii) Category 7: 7D002; 7D003.c, d.1 to d.4, and d.7; 7E001; and 
7E002;
    (viii) Category 8: 8A001.c; 8A002.b (for 8A001.b, .c, .d), .h, .j, 
.o.3, and .p; 8D001 (for commodities listed in this paragraph); 8D002; 
8E001 (for commodities listed in this paragraph); and 8E002.a; and
    (ix) Category 9: 9B001.b, 9D001 (for 9B001.b and 9E003 as described 
in this paragraph), 9D002 (for 9B001.b), 9D004.a, 9D004.c, 9E001 for 
technology controlled for NS reasons, 9E002, 9E003.a.2, a.3.b, a.3.c, 
a.4, a.5, a.8, and a.9.
* * * * *
0
7. Supplement No. 1 to Part 743 is amended by:
0
a. Revising the heading of the Supplement to read as set forth below; 
and
0
b. Adding Croatia, Estonia, Latvia, Lithuania, Malta, and South Africa 
in alphabetical order.

Supplement No. 1 to Part 743--Wassenaar Arrangement Participating 
States

* * * * *

PART 772--[AMENDED]

0
8. The authority citation for Part 772 continues 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
9. Section 772.1 is amended as follows:
0
a. By removing the definition ``Asynchronous transfer mode'' (``ATM'') 
and the separate entry for the acronym ``ATM.''
0
b. By revising the phrase ``(Cat 3, 4, and 5)'' to read ``(Cat 2, 3, 4, 
and 5) in the definition ``Electronic assembly.''
0
c. By removing the definition ``time-modulated ultra-wideband.''
0
d. By adding the definition ``unmanned aerial vehicles'' (``UAVs'') in 
alphabetic order after the definition for ``United States airline,'' to 
read as follows:


Sec.  772.1  Definitions of Terms as Used in the Export Administration 
Regulations (EAR).

* * * * *
    Unmanned aerial vehicle (``UAV''). (Cat 9) Any ``aircraft'' capable 
of initiating flight and sustaining controlled flight and navigation 
without any human presence on board. In addition, according to section 
744.3 of the EAR, unmanned air vehicles, which are the same as 
``unmanned aerial vehicles,'' include, but are not limited to, cruise 
missile systems, target drones and reconnaissance drones.
* * * * *

PART 774--[AMENDED]

0
10. The authority citation for Part 774 continues 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).

Supplement No. 1 to Part 774 [Amended]

0
11. In Supplement No. 1 to Part 774 (the Commerce Control List), 
Category 1--Materials, Chemicals, Microorganisms, and Toxins, Export 
Control Classification Number (ECCN) 1C008 is amended by revising the 
``items'' paragraph in the List of Items Controlled section, to read as 
follows:

    1C008 Non-fluorinated polymeric substances, as follows (see List 
of Items Controlled).
* * * * *

List of Items Controlled

    Unit: * * *
    Related Controls: * * *
    Related Definitions: * * *
    Items:
    a. Non-fluorinated polymeric substances, as follows:
    a.1. Bismaleimides;
    a.2. Aromatic polyamide-imides;
    a.3. Aromatic polyimides;
    a.4. Aromatic polyetherimides having a glass transition 
temperature (Tg) exceeding 513K (240 [deg]C).

    Note: 1C008.a does not control non-fusible compression molding 
powders or molded forms.

    b. T