December 2006 Wassenaar Arrangement Plenary Agreement Implementation: Categories 1, 2, 3, 5 Part I, 6, 7, 8, and 9 of the Commerce Control List; Wassenaar Reporting Requirements; Definitions; and Statement of Understanding on Source Code, 62524-62551 [E7-21247]

Agencies

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

[Federal Register Volume 72, Number 213 (Monday, November 5, 2007)]
[Rules and Regulations]
[Pages 62524-62551]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-21247]



[[Page 62523]]

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Part II





Department of Commerce





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Bureau of Industry and Security



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15 CFR Parts 742, 743, et al.



December 2006 Wassenaar Arrangement Plenary Agreement Implementation: 
Categories 1, 2, 3, 5 Part I, 6, 7, 8, and 9 of the Commerce Control 
List; Wassenaar Reporting Requirements; Definitions; and Statement of 
Understanding on Source Code; Final Rule

Federal Register / Vol. 72, No. 213 / Monday, November 5, 2007 / 
Rules and Regulations

[[Page 62524]]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 742, 743, 744, 772 and 774

[Docket No. 070105004-7050-01]
RIN 0694 AD95


December 2006 Wassenaar Arrangement Plenary Agreement 
Implementation: Categories 1, 2, 3, 5 Part I, 6, 7, 8, and 9 of the 
Commerce Control List; Wassenaar Reporting Requirements; Definitions; 
and Statement of Understanding on Source Code

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 harmonize with 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), 6, 7, 8, and 9; and adding new entries to the 
Commerce Control List (CCL), amending EAR Definitions, as well as 
adding new definitions to the EAR, and adding a new Statement of 
Understanding on source code.
    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 2006 Wassenaar Arrangement Plenary Meeting.
    This rule also adds and expands unilateral U.S. export controls and 
national security export controls on certain items to make them 
consistent with the amendments made to implement the Wassenaar 
Arrangement's decisions. In addition, this rule removes the remaining 
references to ``Composite Theoretical Performance (CTP)'' and 
``Millions of Theoretical Operations Per Second (MTOPS)'' in the EAR, 
which is consistent with agreements made by the Wassenaar Arrangement 
with regard to microprocessors.

DATES: Effective Date: This rule is effective November 5, 2007.

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 6: Chris Costanzo 202-482-0718.
Category 7: Mark Jaso 202-482-0987.
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 St. 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.

Expanded and New Export Controls

    This rule imposes new controls and expands NS Column 1 controls. 
This rule imposes a license requirement under section 742.4(a) of the 
EAR for exports and reexports to all destinations, except Canada, of 
certain commodities (and related software and technology) described in 
ECCNs 1E002.g, 3E001, 7A001, 7A002.a and .c, 7A003.d, 7D001, 7D003, 
7E001, 7E002, 7E004.a.7, 9D004.f and .g. 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.
    This rule also imposes new controls and expands NS Column 2 
controls. 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 1C005.a, 1C005.b.1, 
1C005.b.2, 1C005.c, 1D003, 2B002.c, 2B002.d, 3A001.b.9, 3A001.e.4, 
3A001.g, 3B001.f.2, 3B001.i, 3C005, 5A001.g, 6A008.a, 7A008, 8A002.a, 
8A002.a.4 (components) 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.
    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

[[Page 62525]]

items will be diverted to a country in Country Group D:1. The general 
policy for exports and reexports 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.
    This rule imposes new controls and expands antiterrorism (AT) 
controls. This rule imposes a unilateral U.S. license requirement to 
export and reexport commodities (and related software and technology) 
controlled under 1C005.a, 1C005.b.1, 1C005.b.2, 1C005.c, 1D003, 
1E002.g, 2B002.d.2, 2B002.d.3, 3A001.b.9, 3A001.e.4, 3A001.g, 
3B001.f.2, 3B001.i, 3C005, 3E001, 5A001.g, 6A008.a, 7A001, 7A002.a and 
.c, 7A003.d, 7A008, 7D001, 7D003.a and .b, 7E001, 7E002, 7E004.a.7, 
8A002.a, 8A002.a.4 (components), and 9D004.f and .g 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. These unilateral export controls are necessary 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 that 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.

Revisions to the Commerce Control List

    This rule revises a number of entries on the Commerce Control List 
(CCL) to implement the December 2006 agreed revisions to the Wassenaar 
List of Dual Use Goods and Technologies. This rule also revises 
language to provide a complete and more accurate description of 
controls. A description of the specific amendments to the CCL pursuant 
to the December 2006 Wassenaar Agreement is provided below. Newly added 
ECCNS, as described below, are as follows: 1D003, 3C005, and 7A008. The 
affected ECCNS, as described below, are 1A002, 1B001, 1C005, 1C008, 
1C010, 1C998, 1E002, 2B001, 2B002, 3A001, 3A002, 3A991, 3B001, 3B991, 
3C002, 3C992, 3E001, 3E002, 5A001, 5A991, 5E001, 6A002, 6A004, 6A005, 
6A006, 6A008, 6A995, 6D003, 6E201, 7A001, 7A002, 7A003, 7A101, 7B003, 
7D001, 7D003, 7E001, 7E002, 7E004, 8A002, 8C001, 9D004, 9E001, and 
9E002.

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

    ECCN 1A002 (Composite structures or laminates) is amended by:
    a. Clarifying 1A002.a by adding `consisting of' in front of the 
parameter and deleting `made from';
    b. Clarifying 1A002.b by adding `consisting of' to the front and 
replacing `made from' with `any of the following' to the end of the 
subparagraph';
    c. Clarifying the term `aircraft' to read `civil aircraft' in the 
Note to 1A002;
    d. Clarifying the size of fabric made from ``fibrous or filamentary 
materials'' not controlled for repair of civil aircraft structures from 
'1 m\2\' to '100 cm x 100 cm'.
    Rationale: The previous material size limit impaired the ability of 
airlines to repair their airplanes successfully and in a timely manner. 
With each new commercial airplane design, the proportion of structure 
made from carbon materials is increasing.
    ECCN 1A004 (Protective and detection equipment and components not 
specially designed for military use) is amended by revising the Related 
Controls paragraph in the List of Items Controlled section by 
redesignating note 2 as note 3 and adding a new note 2 to read ``See 
ECCN 1D003 for ``software'' specially designed or modified to enable 
equipment to perform the functions of equipment controlled under 
section 1A004.c (Nuclear, biological and chemical (NBC) detection 
systems). See ECCN 1E002.g for control libraries (parametric technical 
databases) specially designed or modified to enable equipment to 
perform the functions of equipment controlled under 1A004.c (Nuclear, 
biological and chemical (NBC) detection systems).''
    ECCN 1B001 (Equipment for the production of fibers) is amended by:
    a. Adding a note to the License Requirement section under the MT 
control that reads ``Note: MT applies to equipment in 1B001.d that 
meets or exceeds the parameters of 1B101.'' to clarify the MT license 
requirement, as this requirement has been particularly confusing to the 
public; and
    b. Clarifying the text of 1B001.f., because attempts have been made 
to export ultrasonic equipment without license due to interpretation 
that the 3-D and ultrasonic tomography parameters make an empty box. 
The control text therefore is clarified to ensure systems with critical 
capability are controlled for export.
    ECCN 1C005 (superconductive composite conductors) is amended by:
    a. Removing the term `multifilamentary' from 1C005.a.;
    b. Replacing the `or' with an `and' in 1C005.a.1.;
    c. Removing part of the parameter `but less than 25 K 
(249.16[deg]C)' from 1C005.b.1.;
    d. Replacing 1C005.b.2 which stated, ``A cross-section area less 
than 0.28 x 10-\4\ mm\2\; and'' to read ``Remaining in the 
``superconductive'' state at a temperature of 4.2 K (-268.96 [deg]C) 
when exposed to a magnetic field oriented in any direction 
perpendicular to the longitudinal axis of conductor and corresponding 
to a magnetic induction of 12 T with critical current density exceeding 
1750 A/mm\2\ on overall cross-section of the conductor.''
    e. Removing 1C005.b.3; and
    f. Adding 1C005.c and a new technical note, to read as follows 
````Superconductive'' ``composite'' conductors consisting of one or 
more ``superconductive'' filaments which remain ``superconductive'' 
above 115 K (-158.16 [deg]C).

    Technical Note: For the purpose of 1C005, filaments may be in 
wire, cylinder, film, tape or ribbon form.; and''

    Rationale: These revisions are made to align controls with current 
technology.
    ECCN 1C008 (Non-fluorinated polymeric substances) is amended by:
    a. Redesignating Note 1 as Note 2 and adding a new Note 1 to 
clarify the term polymeric substances;
    b. Revising the test method of determination of a heat distortion 
temperature in 1C008.b. from `ISO 75-3 (2004)' to `ISO 75-2 (2004), 
method A'; and
    c. Revising the load parameter in 1C008.b from '1.82 N/mm2' to 
'1.80 N/mm2';
    Rationale: ISO75-3 (2004) specifies the method for determining the 
temperature of deflection under a load of high-strength thermosetting 
laminates and compression-molded long-fiber-reinforced plastics in 
which the fiber length is greater than 7.5 mm. The materials controlled 
under 1C008.b are thermoplastic liquid crystal co-polymers, and 
therefore ISO75-3 (2004) is not an appropriate test method for 1C008.b. 
materials. In accordance with

[[Page 62526]]

ISO75-2 (2004), method A, '1.82 N/mm2' is replaced with '1.80 N/mm2'.
    d. Delete 1C008.c, which are polyarylene ether ketones, including 
polyether ketone ketone (PEKK), polyether ketone (PEK), and Polyether 
ketone ether ketone ketone (PEKEKK).
    Rationale: The patent for polyarylene ether ketones has expired and 
China and India are now manufacturing the commodity under different 
trade names. The manufacturing technology and the properties for all 
these products are very similar. Although polyarylene ether ketones is 
no longer controlled under ECCN 1C008 and related technology controlled 
under 1E001, there remains a license requirement under ECCNs1C998 and 
1E998 respectively.
    ECCN 1C010 (fibrous or filamentary materials) is amended by:
    a. Clarifying the term `aircraft' to read `civil aircraft' in the 
Notes to 1C010.b and 1C010.e;
    b. Increasing the size of fabric made from ``fibrous or filamentary 
materials'' not controlled for repair of civil aircraft structures in 
the Notes to 1C010.b and 1C010.e from '50 cm x 90 cm' to '100 cm x 100 
cm'; and
    c. Adding the Celsius equivalent (2 [deg]C) to 2K in the Technical 
Note that describes glass transition temperature.
    Rationale: The previous material size limit impaired the ability of 
airlines to repair their airplanes successfully and in a timely manner. 
With each new commercial airplane design, the proportion of structure 
made from carbon materials is increasing.
    ECCN 1C998 (Non-fluorinated polymeric substances) is amended by:
    a. Redesignating 1C998.a to 1C998.a.1; and
    b. Revising paragraph 1C998.a to add the polyarylene ether ketones 
deleted from 1C008.c.

    Note: For equipment no longer controlled under ECCN 1C008 and 
related technology controlled under 1E001, there remains a license 
requirement under ECCNs1C998 and 1E998 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 1D003 is added to control ``software'' specially designed or 
modified to enable equipment to perform the functions of equipment 
controlled under section 1A004.c (Nuclear, biological and chemical 
(NBC) detection systems).
    ECCN 1E001 is amended by revising the Related Controls paragraph in 
the List of Items Controlled section by redesignating notes 2 and 3 as 
notes 3 and 4, and adding a new note 2 to read ``See ECCN 1E002.g for 
control libraries (parametric technical databases) specially designed 
or modified to enable equipment to perform the functions of equipment 
controlled under 1A004.c (Nuclear, biological and chemical (NBC) 
detection systems).''
    ECCN 1E002 is amended to add a new paragraph 1E002.g to control 
libraries (parametric technical databases) specially designed or 
modified to enable equipment to perform the functions of equipment 
controlled under 1A004.c (Nuclear, biological and chemical (NBC) 
detection systems).
    Rationale: ECCNs 1D003 and 1E002 are revised because some non-
controlled detection systems can be upgraded to become controlled 
nuclear, biological and chemical (NBC) detection systems by uploading 
software or the associated library of NBC related chemical fingerprints 
into the memory of the detector.

Category 2 Materials Processing

    ECCN 2B001 (Machine tools) is amended by revising the Unit 
paragraph in the List of Items Controlled section to remove ``parts and 
accessories'', and adding additional parameters to the contact lens 
machine exception in Note to 2B001.a in order to prevent general 
purpose diamond turning machines from being exported as contact lens 
machines.
    ECCN 2B002 (Numerically controlled machine tools using a 
magnetorheological finishing (MRF) process) is amended by:
    a. Revising the heading to clarify the scope of controls from 
`numerically controlled machine tools' to `numerically controlled 
optical finishing machine tools'; and to revise the way the parameters 
are applied from ``having any of the following'' to `having all of the 
following';
    b. Adding a new definition for `Electrorheological finishing (ERF)' 
to the Related Definitions paragraph in the List of Items Controlled 
section;
    c. Removing the `or' at the end of 2B002.a;
    d. Adding new paragraphs 2B002.c to add a new parameter (Three or 
more axes which can be coordinated simultaneously for `contouring 
control'); and
    e. Adding a new paragraphs 2B002.d.1 through d.3 to list specific 
optical finishing processes (Magnetorheological finishing (`MRF'); 
Electrorheological finishing (`ERF'); and `Energetic particle beam 
finishing').

Category 3 Electronics

    ECCN 3A001 (Electronic components) is amended by:
    a. Adding 3A001.b.9 to the License Exception LVS eligibility 
paragraph for $3,000, and adding 3A001.b.9 and 3A001.g to the License 
Exception GBS eligibility paragraph;
    b. Correcting 3A001.a.5.a.1 by adding the word ``with'' to be 
consistent with the Wassenaar Dual-Use List (A resolution of 8 bit or 
more, but less than 10 bit, with an output rate greater than 500 
million words per second);
    c. Revising the output rate for analog-to-digital converter 
integrated circuits in 3A001.a.5.a.3 from `greater than 50 million 
words per second' to ``greater than 105 million words per second'';
    d. Revising the output rate for analog-to-digital converter 
integrated circuits in 3A001.a.5.a.4 from `greater than 5 million words 
per second' to `greater than 10 million words per second';
    e. Revising the output rate for analog-to-digital converter 
integrated circuits in 3A001.a.5.a.5 from `greater than 1 million words 
per second' to `greater than 2.5 million words per second';
    Rationale: These output rates are updated to keep pace with 
advances in analog-to-digital converter technology and growing 
commercial markets.

    Note: For analog-to-digital converter integrated circuits no 
longer controlled under ECCN 3A001.a.5.a and related technology 
controlled under ECCN 3E001, there remains a license requirement 
under ECCNs 3A991.c and 3E991 respectively, as well as a software 
control under ECCN 3D991 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.

    f. 3A001.b.9 is amended by adding microwave power modules (MPM), 
consisting of, at least, a traveling wave tube, a microwave monolithic 
integrated circuit and an integrated electronic power conditioner 
having specified parameters;
    Rationale: MPMs are added to 3A001.b.9 because they are used as an 
efficient, compact building block in electronic warfare, radar and 
communication systems. The military criticality of the MPM results from 
the operating frequency, power (peak and/or average), instantaneous 
bandwidth, and the speed at which the MPM turns-on and packaging 
attributes. The combination of these capabilities results in a large 
improvement in power density (power per unit volume) over comparable 
solid state power amplifiers, resulting in a wide range of military 
applications. These include synthetic aperture radar, wideband data 
links, satellite communications, towed decoys and electronic warfare. 
Commercial applications of MPMs include satellite communications, 
wireless

[[Page 62527]]

communications, high power RF sources for laboratory use, and rapid 
prototyping of microwave amplifiers for various applications.
    g. 3A001.e.1 is amended by replacing the term ``batteries'' with 
the term ``cells'';
    h. 3A001.e.1.a and 3A001.e.1.b are amended by removing the phrase 
``and batteries'', replacing the term ``rechargeable cells'' with the 
term ``secondary cells'', and changing the energy density parameter to 
``550 Wh/kg at 293K (20[deg] C)'';
    i. The technical note for 3A001.e.1 is replaced with 4 new 
technical notes that describe ``energy density'', ``cell'', ``primary 
cell'', and ``secondary cell'', as well as a note that explains that 
``3A001.e. does not control batteries, including single cell 
batteries;'' and
    j. 3A001.g is added to control solid-state pulsed power switching 
thyristor devices and thyristor modules.
    ECCN 3A002 (General purpose electronic equipment) is amended by:
    a. Revising the eligibility paragraphs for License Exceptions GBS 
and CIV to remove 3A002.d, because all signal generators that were 
eligible for these license exceptions are no longer controlled under 
ECCN 3A002, but are now controlled under ECCN 3A992.a;
    b. Removing a comma between ``Frequency synthesizer'' and 
``electronic assemblies'' in 3A002.b to harmonize with the Wassenaar 
Dual-Use List;
    c. Adding a note after 3A002.b stating ``The control status of 
signal analyzers, signal generators, network analyzers, and microwave 
test receivers as stand-alone instruments is determined by 3A002.c., 
3A002.d., 3A002.e., and 3A002.f., respectively.'';
    d. Revising 3A002.d (Frequency synthesized signal generators) by 
replacing the term ``master frequency'' with ``master reference 
oscillator'';
    e. Revising 3A002.d.3 (``frequency switching time'') by modifying 
the text and adding new subparagraphs 3A002.d.3.a through 3A002.d.3.e 
that specify various frequency switching time parameters;
    f. Redesignating Note 1 (definition of `pulse duration' ) as Note 2 
and adding a new Note 1 following 3A002.d.4 to clarify the term 
`frequency synthesized signal generators'; and
    g. Redesignating Technical Note 1 as Technical Note 2, and adding a 
new Technical Note 1 to explain that arbitrary waveform and function 
generators are normally specified by sample rate.
    ECCN 3A991 (Electronic devices and components not controlled by 
3A001) is amended by:
    a. Revising 3A991.a.1 from ``A composite theoretical performance 
(CTP) of 6,500 million theoretical operations per second (MTOPS) or 
more and an arithmetic logic unit with an access width of 32 bit or 
more'' to read ``A performance speed of 5 GFLOPS or more and an 
arithmetic logic unit with an access width of 32 bit or more'' to 
harmonize with revisions to ECCN 3E002; and
    b. Revising 3A991.j (batteries/cells) to harmonize with revisions 
to 3A001.e.1.
    ECCN 3B001 (Equipment for the manufacturing of semiconductor 
devices or materials) is amended by:
    a. Correcting the phrase ``3B001.a.2 and a.3, or .f'' to read 
``3B001.a.2, a.3, or .f'' in the License Exception GBS eligibility 
paragraph in the License Exception section;
    b. Redesignating 3B001.f.2 as 3B001.f.3;
    c. Adding a new paragraph 3B001.f.2 to control imprint lithography 
equipment capable of producing features of 180 nm or less; and
    d. Adding a new paragraph 3B001.i to control lithograph templates 
designed for integrated circuits controlled by 3A001.
    Rationale: Imprint lithographic technology was added to the 
International Technology Roadmap for Semiconductor's (ITRS') 2003 
edition. Imprint lithographic systems are currently being manufactured 
in the U.S., Austria, Sweden, and Germany, and have demonstrated the 
capability of producing features as small as 10nm. While these systems 
do not yet have the throughput and overlay accuracy necessary for use 
in major silicon integrated circuit production facilities, the 
technology is maturing, and is expected to be widely used at the 45nm 
technology node. They are currently being used in compound 
semiconductor manufacturing, and compound semiconductor devices have 
important military applications.
    ECCN 3B991 (Equipment not controlled by 3B001 for the manufacture 
of electronic components and materials) is amended by adding ECCN 3C005 
to the list of ECCNs referenced in 3B991.b.1.b in order to harmonize 
with the addition of this new ECCN.
    ECCN 3C002 (Resist materials) is amended by revising the heading to 
conform to the Wassenaar Dual-Use List and the wavelength for positive 
resists designed for semiconductor lithography from `below 350 nm' to 
`below 245 nm' in order to match the wavelength threshold in ECCN 
3B001.a (lithography equipment), which was changed in 2004.
    ECCN 3C005 (Silicone carbide wafers) is added to the Commerce 
Control List to control silicon carbide (SiC) wafers having a 
resistivity of more than 10,000 ohm-cm, because it is emerging as the 
material of choice for high temperature devices, such as power 
switches, which are used in both military (e.g., military ships, 
vehicles, radar, communications, electromagnetic warfare and weapons 
systems) and commercial applications (e.g., communication systems, 
electric power, utilities industry, civil radar systems, cell phone 
base stations, and high definition television transmitters).

    Note: ECCN 3C005 is controlled for NS:2 and AT:1 reasons. In 
addition, ECCN 3E001 controls for NS:1 and AT:1 reasons related 
technology for the development or production of silicon carbide 
(SiC) wafers classified as ECCN 3C005, and ECCN 3B991.b.1.b controls 
for AT:1 reasons related equipment specially designed for purifying 
or processing III/V and II/VI semiconductor materials controlled by 
ECCN 3C005.

    ECCN 3C992 (positive resists) is amended by revising the heading to 
adjust the wavelength from `between 370 and 350 nm' to 'between 370 and 
245 nm' to harmonize with the revision to 3C002.
    ECCN 3E001 is amended by:
    a. Revising the NS control text in the License Requirements section 
to add the new ECCN 3C005;
    b. Revising the Related Controls paragraph in the List of Items 
Controlled section to remove outdated note 2 and redesignating note 3 
as note 2, because updated version of this note is already reflected in 
the Items paragraph of the List of Items Controlled section.
    c. Redesignating Note 1 as Note 2 and Note 2 as Note 1 in the Items 
paragraph; and
    d. Revising the citation in the technical note from `Note b' to 
`Note 2' in the Items paragraph.
    ECCN 3E002 is amended by:
    a. Revising the heading to remove references to `composite 
theoretical performance (CTP)' and `million theoretical operations per 
second (MTOPS)';
    b. Revising License Exception CIV eligibility text from ``Composite 
Theoretical Performance (CTP) less than or equal to 40,000 MTOPS 
(regardless of word length or access width)'' to read ``vector 
processor unit with operand length of 64-bit or less, 64-bit floating 
operations not exceeding 32 GFLOPS, or 16-bit or more floating-point 
operations not exceeding 32 GMACS'' to conform to the revisions in 
3A001 regarding microprocessors;

    Note: The new parameter for measuring vector processor units is 
GMACS, which

[[Page 62528]]

equals billions of 16-bit fixed-point multiply-accumulate operations 
per second.

    c. Adding subparagraphs 3E002.a, 3E002.b, and 3E002.c to specify 
new parameters for microprocessor technology controls related to the 
vector processor unit, floating-point vectors, and fixed-point 
multiply-accumulate results, including adding a technical note to 
describe ``vector processing unit''
    Rationale: These changes are made to remove the remaining 
references to ``Composite Theoretical Performance (CTP)'' and 
``Millions of Theoretical Operations Per Second (MTOPS)'' in the EAR, 
which is consistent with agreements made by the Wassenaar Arrangement 
with regard to microprocessors. Information on How to Calculate 
``Composite Theoretical Performance'' (``CTP'') is removed from the end 
of Category 3, because CTP is no longer a parameter used to control any 
entry in the Commerce Control List.

Category 5 Part I Telecommunications

    ECCN 5A001 (Telecommunications systems, equipment, and components) 
is amended by:
    a. Revising the phrase `telecommunication transmission equipment 
and systems' to read `telecommunication systems and equipment' in 
5A001.b, because 5A001.b controls transmission equipment, but also 
receivers, transmitters, and transceivers.
    b. Revising the scope of parameters from `any' to `all' in 
5A001.b.2 for radio equipment, because these features are more commonly 
found in radio equipment today as a result of technological advances;
    c. Removing the parameter in 5A001.b.2.a `incorporating adaptive 
techniques providing more than 15 dB suppression of an interfering 
signal';
    Rationale: These revisions are made to 5A001 because the parameter 
is obsolete due to technological advances in Digital Signal Processing 
(DSP).
    d. Adding 5A001.g to the NS:2 control paragraph in the License 
Requirements section; and
    e. Adding a new paragraph 5A001.g to control specially designed 
Passive Coherent Location systems or equipment.
    Rationale: Revisions are made to 5A001.g because passive location 
systems can be used in air defense networks to detect and track 
aircraft without being detected themselves and have the ability to 
detect aircraft designed to be stealthy. These systems can also be used 
for civil applications, such as analog FR radio, cellular phone base 
stations and digital audio broadcast (DAB).

    Note: Adding 5A001.g (specially designed Passive Coherent 
Location systems or equipment) to ECCN 5A001 consequently adds a 
license requirement for related development and production software 
in ECCN 5D001 and development, production, and use technology in 
ECCN 5E001, for the exports and reexports to all destinations, 
except Canada, under NS Column 1 of the Commerce Country Chart and 
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 5A991 is amended by adding 5A991.b.7.d to maintain anti-
terrorism controls on radio equipment operating in the 1.5 MHz to 87.5 
MHz band and incorporating adaptive techniques providing more than 15 
dB suppression of an interfering signal, which this rule removed from 
5A001.b.2.a.

    Note: Adding 5A991.b.7.d to ECCN 5A991 consequently maintains a 
license requirement for related development, production, and use 
software in ECCN 5D991, for the 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. However, the Wassenaar Arrangement agreed to maintain 
national security controls for the related technology for this 
equipment in ECCN 5E001 by adding a new paragraph 5E001.c.4.c.

    ECCN 5E001 is amended by adding a new paragraph 5E001.c.4.c to 
maintain national security and anti-terrorism controls on the 
technology for the development or production of certain shortwave 
radios employing adaptive interference suppression techniques, which 
this rule is removing from 5A001.b.2.a.

Category 6 Sensors

    ECCN 6A002 (Optical Sensors) is amended by:
    a. Revising the License Requirement section to add an exception 
note under the RS controls to exclude 6A002.a.3.d.a.2 and 6A002.a.3.e 
for lead selenide focal plane arrays, because these devices are not 
suitable for imaging applications, and no longer merit regional 
stability controls;
    b. Revising the Unit paragraph in the List of Items Controlled 
section, to remove the term ``accessories'';
    c. Revising the peak response in wavelength range in 6A002.a.3.d.1 
from `exceeding 1,200 nm but not exceeding 2,500 nm' to `exceeding 
1,200 nm but not exceeding 3,000 nm'; and
    d. Revising the peak response in wavelength range for non-``space-
qualified'' linear (1-dimensional) ``focal plane arrays'' in 
6A002.a.3.e from `exceeding 2,500 nm but not exceeding 30,000 nm' to 
`exceeding 3,000 nm but not exceeding 30,000 nm'.
    Rationale: The revisions to 6A002.a.3 are made to remove national 
security controls on focal plane arrays that are effectively non-usable 
in military applications, and to simplify the control text.
    ECCN 6A004 (Optics) is amended by:
    a. Revising the Unit paragraph in the List of Items Controlled 
section to remove the reference to cable;
    b. Revising the Related Controls paragraph in the List of Items 
Controlled section to add a reference to ECCN 3B001 for optical mirrors 
or aspheric optical elements specially designed for lithography 
equipment; and by enumerating the notes in the Related Controls 
paragraph;
    c. Moving the definition of `aspheric optical element' from the 
technical note to the Related Definitions paragraph in the List of 
Items Controlled section; and
    d. Adding single quotes around the term `aspheric optical elements' 
in 6A004.e to indicate that the definition may be found in the Related 
Definitions paragraph of the List of Items Controlled section of the 
ECCN.
    ECCN 6A005 (Lasers) is amended by:
    a. Revising the NP controls in the License Requirements section to 
conform with the revisions in the ECCN 6A005 items paragraph and the 
revisions to ECCN 6A205;
    b. Revising the License Requirements Notes to conform to the 
revisions related to nuclear controls and revisions in 6A005;
    c. Revising the License Exception GBS and CIV eligibility 
paragraphs to conform to the revisions in the items paragraph and the 
license requirement note that outlines NP controls;
    d. Revising the Note 6 in the Related Controls paragraph in the 
List of Items Controlled section to add ``and ``lasers'' specifically 
designed, modified, or configured for military application are subject 
to the export licensing authority of the U.S. Department of State, 
Directorate of Defense Trade Controls'';
    e. Moving paragraph 1 in the Related Definitions paragraph in the 
List of Items Controlled section to Note 1 at the top of the items 
paragraph in the List of Items Controlled section, and removing 
paragraph 2 in the Related Definitions paragraph;
    f. Adding a definition for `Wall-plug efficiency' in the Related 
Definitions paragraph in the List of Items Controlled section;
    g. Adding Notes 2 through 4 to the top of the items paragraph of 
the List of

[[Page 62529]]

Items Controlled section to clarify controls in ECCN 6A005;
    h. Moving 6A005.a.1 (Excimer lasers) to 6A005.d.4;
    i. Deleting 6A005.a.2 (Metal vapor lasers), as they are now 
controlled under 6A005.b, although they are not specifically cited as 
before;
    j. Moving 6A005.a.3 (Carbon monoxide (CO) lasers) to 6A005.d.2;
    k. Moving 6A005.a.4 (Carbon dioxide (CO2) lasers) to 
6A005.d.3;
    l. Moving 6A005.a.5 (Chemical lasers) to 6A005.d.5;
    m. Deleting 6A005.a.6 (Krypton ion or argon ion lasers), as 
pursuant to Note 5.a, Krypton lasers are no longer controlled, and 
Argon lasers are now controlled under 6A005.a, with the exception of 
Argon lasers below 50W, pursuant to the Note to 6A005.a.2;
    n. Moving 6A005.b (Semiconductor lasers) to 6A005.d.1;
    o. Moving 6A005.c.2 (non-tunable lasers) to 6A005.a and .b, with 
the exception of Neodymium glass lasers, and modifying the parameters;
    p. Moving 6A005.c.2.a (Neodymium glass lasers) to 6A005.d.6; and
    q. Moving 6A005.d (dye and other liquid lasers) to 6A005.c (tunable 
lasers), see Note to 6A005.c.
    Rationale: The changes in ECCN 6A005 are made to move the laser 
controls from technology based categories to performance based 
criteria. The categories are restructured, where possible, to remove 
specific references to types of lasers and characterize the laser on 
the basis of wavelength, power, mode, energy, pulse length, mass, and 
efficiency.
    ECCN 6A006 is amended by adding quotes around the term 
``compensation systems'' in the heading and in 6A006.d, because it has 
become a defined term in Part 772.
    ECCN 6A008 (Radar) is amended by:
    a. Adding a Note to explain that 6A008 does not control: secondary 
surveillance radar (SSR), car radar designed for collision prevention, 
displays or monitors used for air traffic control (ATC), and 
meteorological (weather) radar.
    b. Revising the parameters in 6A008.a to avoid overlapping controls 
between 6A008.a and 6A008.m.1.
    ECCN 6A205 is amended by:
    a. Revising the heading to simplify it and place the referenced 
ECCNs in order;
    b. Removing the reference to ``parts and accessories'' in the unit 
paragraph of the List of Items Controlled section, because these are 
not controlled by this entry;
    c. Adding a reference to 6A005.a.2 for additional controls on argon 
ion lasers and a reference to 6A005.b.6.b for additional neodymium-
doped lasers in the Related Controls paragraph of the List of Items 
Controlled section;
    d. Revising 6A005.b.1 for ``operating at wavelengths for tunable 
pulsed single-mode dye laser oscillators'' from ``Operating at 
wavelengths between 300 nm and 800 nm'' to ``Operating at wavelengths 
between 600 nm and 800 nm'';
    e. Removing 6A205.c (Tunable pulsed dye laser amplifiers and 
oscillators), because these paragraphs are entirely controlled by ECCN 
6A005.c.1.b;
    f. Revising 6A205.f to maintain NP controls on Neodymium-doped 
(other than glass) lasers that are not controlled by ECCN 6A005.
    Rationale: This change is made to split control of Neodymium-doped 
lasers between ECCN 6A005.b.6 and 6A205.f, with no intended overlap.
    ECCN 6A995 is amended by:
    a. Revising 6A995.c, so that it controls ``Ruby `lasers' having an 
output energy exceeding 20 J per pulse'';
    b. Redesignating paragraph 6A995.d (Free electron lasers) as 
paragraph g., and adding three new paragraphs to maintain anti-
terrorism (AT) controls for certain lasers no longer controlled by ECCN 
6A005: 6A995.d (Non-``tunable'' ``pulsed lasers''), 6A995.e (Non-
``tunable'' continuous wave ``(CW) lasers''), and 6A995.f (Non-
``tunable'' ``lasers'').
    ECCN 6D003 is amended by adding quotes around the term 
``compensation systems'' in the in 6D003.f.1, because it has become a 
defined term in Part 772.
    6E201 is amended by revising the heading to harmonize with 
revisions made to ECCNs 6A005 and 6A205, and adding the phrase ``not 
controlled by 6E001 or 6E002''.

Category 7 Navigation and Avionics

    ECCN 7A001 (Accelerometers) is amended by:
    a. Revising the heading from ``Linear accelerometers designed for 
use in inertial navigation or guidance systems and having any of the 
following characteristics (see List of Items Controlled), and specially 
designed components therefor.'' to read ``Accelerometers as follows 
(see List of Items Controlled), and specially designed components 
therefor'' in order to change the scope of control from including end-
use and type to a strictly technical control, as set forth in the List 
of Items Controlled section;
    b. Revising the MT controls in the License Requirements section 
from ``MT applies to entire entry'' to ``MT applies to commodities that 
meet or exceed the parameters of 7A101'' to clarify items controlled 
for MT reasons based on the Missile Technology Control Regime Annex;
    c. Differentiating between linear accelerometers designed to 
operate at high g values and linear accelerometers designed to operate 
at low g levels; and
    d. Moving the controls for angular and rotational accelerometers 
from the gyro controls in 7A002 to the accelerometer controls in 7A001.
    Rationale: With the constant development of accelerometers, there 
are now products on the market which can be used for inertial 
navigation and guidance, but that were not necessarily designed for 
that purpose. Therefore, these changes are being made to 7A001 to 
control these new products.
    ECCN 7A002 (Gyros or angular rate sensors) is amended by:
    a. Revising text in the heading from `and angular or rotational 
accelerometers' to read `or angular rate sensors';
    Rationale: The heading is clarified to delete ``angular or 
rotational accelerometers'' because angular accelerometers do not 
measure angular rate. (These devices are more appropriately addressed 
in ECCN 7A001.) Also, the term angular rate sensor is added. With the 
emergence of new gyro technology, the term ``angular rate sensor'' is 
interchangeable with ``gyro''.
    b. Revising the Missile Technology (MT) reason for control in the 
License Requirements section to read ``MT applies to 7A002 items that 
meet or exceed the parameters of 7A102'' because some items identified 
in 7A002.a and 7A002.b are national security controlled items and not 
MT controlled items;
    c. Adding a License Requirement Note to the License Requirements 
section to add the Missile Technology Control Regime's definition for 
`stability', which should only be used for the purposes of MT controls. 
(The Wassenaar Arrangement definition for `stability' is found in Part 
772);
    d. Revising the drift rate in from `less (better) than 0.1 degree 
per hour when specified to function at acceleration levels below 12 g' 
to read ` less (better) than 0.5 degree per hour when specified to 
function at linear acceleration levels up to and including 100.g' 
combining paragraphs 7A002.a, 7A002.a.1 and 7A002.a.2;
    e. Adding double quotes around the term ``angle random walk'' in 
7A002.b;
    f. Removing the technical note defining ``angle random walk'', as 
the definition was moved to Part 772;
    g. Redesignating paragraph 7A002.c as paragraph 7A002.d; and

[[Page 62530]]

    h. Adding a new paragraph 7A002.c to incorporate three critical 
parameters for controlling gyros.
    Rationale: With new gyro technology, e.g. Fiber Optic Gyros (FOG) 
and MicroElectroMechanical System (MEMS) gyros, the current 7A002.a. 
and b. language does not adequately control gyros required for very 
short-term applications and having high rate range, such as those used 
in tactical missiles and smart munitions. The former 7A002.c addressed 
gyros with a high linear acceleration capability. The new paragraph 
7A002.c includes three critical parameters: drift rate stability, input 
rate range and angle random walk (ARW). To be controlled, the gyro must 
meet the drift rate stability and either the input rate range or ARW 
parameter. The input rate range of 500 degrees per second and the ARW 
parameter of 0.2 degrees per square root hour were selected because 
they are consistent with tactical missile and howitzer requirements. 
The 40 degrees per hour drift rate stability was selected because it 
would control gyros used for guidance in very short mission tactical 
weapons and smart munitions, but would avoid the control of gyros used 
in automobiles. This revision will control the most critical gyros, 
while allowing wide commercial-use of these new gyro technologies.
    ECCN 7A003 (Inertial systems) is amended by:
    a. Adding 7A003.d to control Inertial measurement equipment, 
including Inertial Measurement Units (IMU) and Inertial Reference 
Systems (IRS), which was added to clarify 7A003.c; and
    b. Replacing a reference in Note 2 that stated ``civil authorities 
of a country in Country Group A:1'' with ``civil authorities of a 
Wassenaar Arrangement Participating State, see Supplement No. 1 to Part 
743 for a list of these countries.''
    ECCN 7A008 is added to control underwater sonar navigation systems 
for NS:2 and AT:1 reasons, because underwater navigation systems pose 
significant military and terrorism concerns because of their potential 
use for coastal reconnaissance and infiltration.
    ECCN 7A101 is amended by revising the Heading and the Items 
paragraph in the List of Items Controlled section to add a new 
paragraph 7A101.b for ``continuous output accelerometers of any type, 
specified to function at acceleration levels greater than 100 g, and 
specially designed components therefor'' and to expand the scope of the 
heading to include this new paragraph.
    Rationale: These accelerometers were previously controlled under 
ECCN 7A001, but are no longer controlled under this ECCN because of the 
Wassenaar Arrangement's agreement to add the words ``designed for use 
in inertial navigation or guidance systems.'' This revision was 
necessary in order to maintain the MT controls on these accelerometers 
as specified by 9.A.5 of the Missile Technology Control Regime Annex.
    ECCN 7B003 is amended by revising the Related Controls paragraph in 
the List of Items Controlled section to clarify that 7B003 controls 
include fiber optic gyro coil winding machines.
    ECCN 7D003 is amended by:
    a. Adding software controls for ECCN 7A008 in 7D003.a and .b;
    b. Replacing the term `inertial data' with `heading data' in 
7D003.b; and
    c. Revising 7D003.b.1 by adding `or sonar'.
    Rationale: The revisions to 7D003.a address software that improves 
navigation performance of equipment controlled by ECCN 7A008. The 
revisions to 7D003.b address source code for a hybrid underwater 
navigation system that combines a heading source (inertial or non-
inertial, such as a fluxgate compass) with Doppler sonar to provide 
positioning data to the level specified in ECCN 7A008.
    ECCNs 7D001, 7E001, and 7E002 are amended to revise the License 
Requirement section to include ECCN 7A008 in the NS:1 control and to 
exclude ECCN 7A008 from the MT:1 control.
    Rationale: This revision necessary in order to add NS:1 controls 
for the related technology and software for the new ECCN 7A008, but to 
exclude it from MT:1 controls, as equipment controlled by ECCN 7A008 
does not appear on the MTCR Annex.
    ECCN 7E004 is amended by adding 7E004.a.7 to control development 
and production technology for Data Based Referenced Navigation (DBRN) 
systems designed to navigate underwater using sonar or gravity 
databases that provide a positioning accuracy equal to or less (better) 
than 0.4 nautical miles.
    Rationale: The addition of ECCN 7A008 and 7E004.a.7 addresses two 
new commercial capabilities under the title of Underwater Sonar 
Navigation Systems: (1) underwater sonar navigation systems and (2) 
technology for underwater Data Based Referenced Navigation (DBRN) (e.g. 
sonar imaging). These capabilities pose significant military and 
terrorism concerns because of their potential use for coastal 
reconnaissance and infiltration. These systems are also used for 
commercial surveying applications. The Munitions List ML11 controls 
navigation and guidance systems specially designed for military use, 
but ML11 does not control underwater sonar navigation systems designed 
for commercial use.

Category 8 Marine

    ECCN 8A002 (Systems, equipment and components for submersible 
vehicles) is amended by:
    a. Adding `and components' to the heading;
    b. Revising the unit paragraph to add `systems' and `components in 
$ value';
    c. Adding `and components' to 8A002.a;
    d. Adding a new paragraph 8A002.a.4 to control `Components 
manufactured from material specified in ECCN 8C001.' and adding a 
technical note to explain that this control includes components in any 
stage of manufacture, i.e., not in final form.
    Rationale: The completed foam blocks, which are components 
manufactured from material specified in ECCN 8C001, are ready to use, 
and therefore it is sensible to control these `components,' as well as 
the raw material that is already controlled, thus blocking a current 
loophole in the control text.
    ECCN 8C001 (Syntactic foam designed for underwater use) is amended 
to add a reference to 8A002.a.4 in the Related Control paragraph of the 
List of Items Controlled section.

Category 9 Propulsion Systems, Space Vehicles and Related Equipment

    Category 9 is amended by revising the title of Category 9 to read 
``Aerospace and Propulsion,'' because this Category contains a 
significant amount of aerospace items.
    ECCN 9D004 is amended by:
    a. Revising the License Requirement section to exclude the newly 
added paragraphs 9D004.f and .g;
    b. Adding a new paragraph 9D004.f to control software specially 
designed to design the internal cooling passages of aero gas turbine 
engine blades, vanes, and tip shrouds; and
    c. Adding a new paragraph 9D004.g to control software having all of 
the following characteristics: Being specially designed to predict aero 
thermal, aeromechanical and combustion conditions in gas turbine 
engines; and having theoretical modeling predictions of the aero 
thermal, aeromechanical and combustion conditions, which have been 
validated with actual turbine engine (experimental or production) 
performance data.
    Rationale: ECCN 9D004 is amended because this type of software is 
used in

[[Page 62531]]

highly advanced research domains and is not part of the ``off the 
shelf'' market. Rather, it is developed, and daily improved, by 
aircraft engine manufacturers. The software is used in the setting of 
new engines, and the quality is crucial for improving the performances 
of aircraft engines.
    ECCN 9E001 is amended by revising the heading and the national 
security controls to correct the citation 9A001.c to read 9A001.b.
    ECCN 9E002 is amended by revising the heading to correct the 
citation 9A001.c to read 9A001.b.

Part 742 ``Control Policy--CCL Based Controls''

    This rule amends section 742.19 by revising paragraph (b)(1)(xix) 
from stating ``Microprocessors with a CTP of 550 or above'' to read 
``Microprocessors with a processing speed of 0.5 GFLOPS or above'' In 
addition, this rule amends Supplement No. 2 ``Anti-terrorism Controls: 
Iran, North Korea, Syria and Sudan Contract Sanctity Dates and Related 
Policies'' by revising paragraph (26)(ii) from stating ``With a CTP of 
550 MTOPS or above'' to read ``With a processing speed of 0.5 GFLOPS or 
above.''

Retiring Composite Theoretical Performance/Millions of Theoretical 
Operations Per Second (CTP/MTOPS) Metric

    The CTP/MTOPS metric was used in measuring computer and 
microprocessor performance. The usefulness of the CTP/MTOPS metric in 
defining computer and microprocessor performance has been overtaken by 
advances in technology. The U.S. Government, in a final rule published 
in April 2006 (71 FR 20876), replaced the CTP/MTOPS metric with the 
APP/WT metric for measuring computer performance. The CTP/MTOPS 
reference was retained in certain parts of the EAR for measuring 
microprocessor performance because it was still used by the Wassenaar 
Arrangement (WA) in defining the control level for microprocessor 
technology. In the WA 2006 list review, the WA revised its 
microprocessor technology control and discontinued all uses of the CTP/
MTOPS metric in the WA List of Dual-use Goods and Technologies. The 
U.S. Government is also discontinuing all uses of CTP/MTOPS in the EAR 
with this implementation of the results of the WA 2006 list review.

Deviating From Parallel Control Parameters by Not Using Adjusted Peak 
Performance/Weighted TeraFLOPS (APP/WT) Metric (Used To Measure 
Computer Performance) To Measure Microprocessor Performance

    With the use of the APP/WT metric for measuring computer 
performance, there is the temptation, following tradition, to use the 
APP/WT metric to measure microprocessor performance. However, the 
GFLOPS metric (billions of 64-bit floating-point operations per second) 
is preferable to the APP/WT metric because:
    (a) The GFLOPS value is published by the manufacturer in its 
product literature.
    (b) The additional complexities introduced by the APP/WT metric are 
unnecessary because there is a direct linear relationship between the 
proposed GFLOPS metric and the APP/WT metric (1 GFLOPS = 0.001*0.3 WT = 
0.0003 WT).
    (c) The translation from GFLOPS to WT provides no additional value.
    (d) In the 1990s, the Wassenaar Arrangement (WA) controlled 
microprocessors with a wide range of operand lengths (8-bit, 16-bit, 
32-bit, 64-bit). Today, the WA is only interested in processors with 
32- and 64-bit operands. GFLOPS standardizes the measurement on 64-bit 
floating-point multiply and add. In short, technology has moved 
forward.
    (e) A large part of the CTP formula deals with computer 
architecture and the rules of aggregation that have absolutely no 
meaning for microprocessors. Exporters have expressed concern about the 
need to deal with a complex formula when all they really need is a 
small part of the CTP formula to calculate the speed of a 
microprocessor, i.e., GFLOPS.

Section 743.1 ``Wassenaar Arrangement''

    Section 743.1 is amended by:
     Inserting ``6A001'' before ``a.2.d'' for clarification in 
paragraph (c)(1)(vi);
     Adding ECCN 6A006.a.1 to paragraph (c)(1)(vi);
     Adding clarification notes in parentheticals after: 
6A002.c, 6A003.b.3, and 6A003.b.4 in paragraph (c)(1)(vi);
     Replacing the text in the parentheticals after 6A006.d in 
paragraph (c)(1)(vi) with the reference ``certain items only; see Note 
to this paragraph''; and
     Revising the Notes to paragraph (c)(1)(vi) to add another 
type of focal plane array excluded from reporting under 6A002.a.3, 
namely, microbolometer focal plane arrays having less than 8,000 
elements. Also, adding a new Note 2 to describe which items in 6A006.d 
are subject to the Wassenaar special reporting requirement.
    Rationale: All of the revisions to 743.1(c)(1)(vi) are made to 
conform to the Wassenaar Sensitive List and will also affect Wassenaar 
reporting requirements for ECCNS 6E001 and 6E002.
    Section 744.17 ``Restrictions on certain exports and reexports of 
general purpose microprocessors for `military end-uses' and to 
`military end-users' '' is amended by revising the parameter in the 
first sentence of paragraph (a) that stated ``a composite theoretical 
performance'' (``CTP'') of 6,500 million theoretical operations per 
second (MTOPS)'' to read ``a processing speed of 5 GFLOPS''.

Definitions in Part 772

    Section 772.1 is amended by:
    a. Removing the terms ``Composite theoretical performance (CTP)'' 
and ``CTP'';
    b. Revising the definition of the terms ``Drift rate'' and ``Peak 
power''; and
    c. Adding in alphabetical order the definitions for ``Angle random 
walk'', ``Average Output Power'', ``Compensation Systems'', ``CW 
Laser'', ``Pulsed Laser'', and ``Repeatability''.

Supplement No. 3 to Part 774--Statements of Understanding

    This rule adds a Statement of Understanding (SOU) addressing source 
code. The SOU explains that source code may be controlled in either a 
software or technology entry. The rationale for adding this SOU was to 
allow flexibility to control source code in either a software or a 
technology entry, where the definitions for ``software'' and 
``technology'' didn't seem to allow for such flexibility. This SOU only 
applies to national security controlled items, as no such SOU has been 
agreed to in other multinational regimes. However, this does not 
preclude other regimes or BIS from controlling source code in whatever 
manner is best suited for the situation. For the purposes of applying 
this SOU to source code subject to the EAR, source code should be 
considered ``software,'' unless otherwise stated.
    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 15, 
2007, 72 FR 46137 (August 16, 2007), has continued the Export 
Administration Regulations in

[[Page 62532]]

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 
November 5, 2007, 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 December 5, 2007. Any such items 
not actually exported before midnight, on December 5, 2007, require a 
license in accordance with this regulation.

Rulemaking Requirements

    1. This final rule has been determined to be not significant for 
purposes of Executive Order 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 6622, Washington, DC 
20230.
    3. This rule does not contain policies with Federalism implications 
as that term is defined 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 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 742

    Exports, Terrorism.

15 CFR Part 743

    Administrative practice and procedure, Reporting and recordkeeping 
requirements.

15 CFR Part 744

    Exports, Reporting and recordkeeping requirements, Terrorism.

15 CFR Part 772

    Exports.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

0
Accordingly, parts 742, 743, 744, 772 and 774 of the Export 
Administration Regulations (15 CFR parts 730 799) are amended as 
follows:

PART 742--[AMENDED]

0
1. The authority citation for part 742 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 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 August 3, 2006, 71 FR 44551 (August 7, 2006); 
Notice of October 27, 2006, 71 FR 64109 (October 31, 2006); Notice 
of August 15, 2007, 72 FR 46137 (August 16, 2007).


0
2. Section 742.19 is amended by revising paragraph (b)(1)(xix) to read 
``Microprocessors with a processing speed of 0.5 GFLOPS or above.''
0
3. Supplement No. 2 to Part 742 is amended by revising paragraph 
(c)(26)(ii) introductory text to read as follows:

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

* * * * *
    (c) * * *
    (26) * * *
    (ii) With a processing speed of 0.5 GFLOPS or above.''
* * * * *

PART 743--[AMENDED]

0
4. The authority citation for part 743 continues 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); 
Notice of August 15, 2007, 72 FR 46137 (August 16, 2007).


0
5 . Section 743.1 is amended by revising paragraph (c)(1)(vi), revising 
the Note to this paragraph, as follows:


Sec.  743.1  Wassenaar Arrangement.

* * * * *
    (c) * * *
    (1) * * *
    (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 5kHz to 10 kHz inclusive'' to the existing text in 6A001.a.1.b.1), 
and 6A001.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 
(incorporating 6A002.a.2.a or 6A002.a.3 having characteristics 
described in this paragraph), 6A002.e; 6A003.b.3 (incorporating 
6A002.a.2.a having characteristics described in this paragraph), 
6A003.b.4 (incorporating 6A002.a.3 having characteristics described in 
this paragraph); 6A004.c and d; 6A006.a.1, 6A006.a.2 (having a ``noise 
level'' (sensitivity) lower (better) than 2pT rms per square root 
Hz),6A006.d (certain items only; see Note to this paragraph); 6A008.d, 
.h, and .k; 6D001 (for 6A004.c and .d and 6A008.d, .h, and .k); 6