Revisions to the Export Administration Regulations (EAR): Control of Military Training Equipment and Related Items the President Determines No Longer Warrant Control Under the United States Munitions List (USML), 35310-35317 [2012-14444]
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Federal Register / Vol. 77, No. 114 / Wednesday, June 13, 2012 / Proposed Rules
N., long. 77°10′19″ W.; to lat. 38°03′12″
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of beginning.
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TRACON.
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N., long. 77°18′59″ W.; then to the point
of beginning.
Designated altitudes. 7,500 feet MSL
to 9,000 feet MSL.
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Controlling agency. FAA, Potomac
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[FR Doc. 2012–14404 Filed 6–12–12; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 742 and 774
[Docket No. 120202094–2065–01]
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RIN 0694–AF54
Revisions to the Export Administration
Regulations (EAR): Control of Military
Training Equipment and Related Items
the President Determines No Longer
Warrant Control Under the United
States Munitions List (USML)
Bureau of Industry and
Security, Department of Commerce.
ACTION: Proposed rule.
AGENCY:
This proposed rule describes
how articles the President determines
SUMMARY:
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no longer warrant control under
Category IX (Military Training
Equipment and Training) of the United
States Munitions List (USML) would be
controlled under the Commerce Control
List (CCL) in new Export Control
Classification Numbers (ECCNs) 0A614,
0B614, 0D614, and 0E614.
This rule is one in a planned series of
proposed rules describing how various
types of articles the President
determines, as part of the
Administration’s Export Control Reform
Initiative, no longer warrant USML
control, would be controlled on the CCL
and by the EAR. This proposed rule is
being published in conjunction with a
proposed rule from the Department of
State, Directorate of Defense Trade
Controls, which would amend the list of
articles enumerated in USML Category
IX. The revisions in this rule are part of
Commerce’s retrospective plan under
EO 13563 completed in August 2011.
Commerce’s full plan can be accessed
at: https://open.commerce.gov/news/
2011/08/23/commerce-planretrospective-analysis-existing-rules.
DATES: Comments must be received by
July 30, 2012.
ADDRESSES: You may submit comments
by any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. The identification
number for this rulemaking is BIS–
2012–0023.
• By email directly to
publiccomments@bis.doc.gov. Include
RIN 0694–AF54 in the subject line.
• By mail or delivery to Regulatory
Policy Division, Bureau of Industry and
Security, U.S. Department of Commerce,
Room 2099B, 14th Street and
Pennsylvania Avenue NW., Washington,
DC 20230. Refer to RIN 0694–AF54.
FOR FURTHER INFORMATION CONTACT:
Daniel Squire, Office of National
Security and Technology Transfer
Controls, Sensors and Aviation
Division, tel. 202 482 3710, email
daniel.squire@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
On July 15, 2011, as part of the
Administration’s ongoing Export
Control Reform Initiative, BIS published
a proposed rule (76 FR 41958) (herein
‘‘the July 15 proposed rule’’) that set
forth a framework for how articles the
President determines, in accordance
with section 38(f) of the Arms Export
Control Act (AECA) (22 U.S.C. 2778(f)),
would no longer warrant control on the
United States Munitions List (USML)
and would be controlled on the
Commerce Control List (CCL) in
Supplement No. 1 to Part 774 of the
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Export Administration Regulations
(EAR). On November 7, 2011, BIS
published a rule (76 FR 68675)
proposing several changes to the
framework initially proposed in the July
15 rule.
Following the structure of the July 15
and November 7 proposed rules, this
proposed rule describes BIS’s proposal
for controlling under the EAR and its
CCL military training equipment and
related articles now controlled by the
ITAR’s USML under Category IX but
that would no longer be so controlled if
the State Department’s proposed
revision to the Category were to become
final. The changes described in this
proposed rule and the State
Department’s proposed companion rule
to Category IX of the USML are based
on a review of Category IX by the
Defense Department, which worked
with the Departments of State and
Commerce in preparing the proposed
amendments. The review was focused
on identifying the types of articles that
are now enumerated in USML Category
IX that are either (i) inherently military
and otherwise warrant control on the
USML or (ii) common to non-military
training equipment applications,
possess parameters or characteristics
that provide a critical military or
intelligence advantage to the United
States, and almost exclusively available
from the United States. If an article
satisfied one or both of those criteria,
the article remained on the USML. If an
article did not satisfy either standard
but was nonetheless a type of article
that is, as a result of differences in form
and fit, ‘‘specially designed’’ for military
applications, it was identified in the
new ECCNs proposed in this notice. The
licensing requirements and other EARspecific controls for such items
described in this notice would enhance
national security by permitting the U.S.
Government to focus its resources on
controlling, monitoring, investigating,
analyzing, and, if need be, prohibiting
exports and reexports of more
significant items to destinations, end
uses, and end users of greater concern
than our NATO allies and other multiregime partners.
Pursuant to section 38(f) of the AECA,
the President shall review the USML ‘‘to
determine what items, if any, no longer
warrant export controls under’’ the
AECA. The President must report the
results of the review to Congress and
wait 30 days before removing any such
items from the USML. The report must
‘‘describe the nature of any controls to
be imposed on that item under any
other provision of law.’’ 22 U.S.C.
2778(f)(1).
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Federal Register / Vol. 77, No. 114 / Wednesday, June 13, 2012 / Proposed Rules
In the July 15 proposed rule, BIS
proposed creating a series of new
ECCNs to control items that would be
removed from the USML, or that are
items from the Munitions List of the
Wassenaar Arrangement on Export
Controls for Conventional Arms and
Dual Use Goods and Technologies List
(Wassenaar Arrangement Munitions List
or WAML) that are already controlled
elsewhere on the CCL. The proposed
rule referred to this series as the ‘‘600
series’’ because the third character in
each of the new ECCNs would be a ‘‘6.’’
The first two characters of the 600 series
ECCNs serve the same function as any
other ECCN as described in § 738.2 of
the EAR. The first character is a digit in
the range 0 through 9 that identifies the
Category on the CCL in which the ECCN
is located. The second character is a
letter in the range A through E that
identifies the product group within a
CCL Category. In the 600 series, the
third character is the number 6. With
few exceptions, the final two characters
identify the WAML category that covers
items that are the same or similar to
items in a particular 600 series ECCN.
This proposed rule would create four
such ECCNs: 0A614, 0B614, 0D614, and
0E614. ECCN 0A614 would control
military training equipment and specific
‘‘parts,’’ ‘‘components,’’ and
‘‘accessories and attachments’’ therefor.
ECCN 0B614 would control test,
inspection, and production
‘‘equipment,’’ including related ‘‘parts,’’
‘‘components,’’ and ‘‘accessories and
attachments,’’ for the ‘‘production’’ or
‘‘development’’ of commodities
controlled by ECCN 0A614 or articles
controlled by USML Category IX. ECCN
0D614 would control ‘‘software’’ for the
‘‘development,’’ ‘‘production,’’
operation or maintenance of items
controlled by ECCNs 0A614 or 0B614.
ECCN 0E614 would control
‘‘technology’’ for the ‘‘development,’’
‘‘production,’’ operation, installation,
maintenance, repair or overhaul of
commodities controlled by ECCNs
0A614 or 0B614 or ‘‘software’’
controlled by ECCN 0D614.
The revisions in this rule are part of
Commerce’s retrospective plan under
EO 13563 completed in August 2011.
Commerce’s full plan can be accessed
at: https://open.commerce.gov/news/
2011/08/23/commerce-planretrospective-analysis-existing-rules.
BIS will publish additional Federal
Register notices containing proposed
amendments to the CCL that will
describe proposed controls for
additional categories of articles the
President determines no longer warrant
control under the USML. The State
Department will publish concurrently
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proposed amendments to the USML that
correspond to the BIS notices. BIS will
also publish proposed rules to further
align the CCL with the WAML and the
Missile Technology Control Regime
Equipment, Software and Technology
Annex.
Detailed Description of Changes
Proposed by This Rule
New ECCN 0A614: Military Training
‘‘Equipment’’
Proposed ECCN 0A614 would impose
national security (NS Column 1),
regional stability (RS Column 1), and
anti-terrorism controls on military
training ‘‘equipment’’ not controlled by
the USML and on most ‘‘parts,’’
‘‘components,’’ and ‘‘accessories and
attachments’’ ‘‘specially designed’’ for
such military training ‘‘equipment.’’
ECCN 0A614 also would apply the same
controls to ‘‘parts,’’ ‘‘components,’’ and
‘‘accessories and attachments’’ for
military training ‘‘equipment’’
controlled by Category IX of the USML
unless such ‘‘parts,’’ ‘‘components,’’ or
‘‘accessories and attachments’’ are
specifically controlled by the USML or
another ECCN on the Commerce Control
List. Notes to proposed ECCN 0A614
would identify how specific
commodities would be classified under
ECCN 0A614, including simulators for
non-combat military aircraft, certain
radar training units, and training
‘‘equipment’’ for ground military
operations. ECCN 0A614.y would
impose only anti-terrorism controls on
specific ‘‘parts,’’ ‘‘components,’’ and
‘‘accessories and attachments’’ that are
‘‘specially designed’’ for a commodity
controlled by ECCN 0A614 and not
specified elsewhere in the CCL.
New ECCN 0B614: Test, Inspection, and
Production ‘‘Equipment’’ for Military
Training ‘‘Equipment’’ and ‘‘Specially
Designed’’ ‘‘Parts,’’ ‘‘Components,’’ and
‘‘Accessories and Attachments’’
Therefor
Proposed ECCN 0B614 would impose
national security (NS Column 1),
regional stability (RS Column 1), and
anti-terrorism controls on test,
inspection and production equipment,
and on ‘‘parts,’’ ‘‘components,’’ and
‘‘accessories and attachments’’ therefor,
that are ‘‘specially designed’’ for the
‘‘production’’ of commodities controlled
by ECCN 0A614 or USML Category IX.
ECCN 0B614.y would impose only antiterrorism controls on specific ‘‘parts,’’
‘‘components,’’ and ‘‘accessories and
attachments’’ that are ‘‘specially
designed’’ for a commodity controlled
by ECCN 0B614 and not specified
elsewhere in the CCL.
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New ECCN 0D614: ‘‘Software’’ Related
to Military Training ‘‘Equipment’’
Proposed ECCN 0D614 would impose
national security, (NS Column 1),
regional stability (RS Column 1), and
anti-terrorism (AT Column 1) controls
on ‘‘software’’ ‘‘specially designed’’ for
the ‘‘development,’’ ‘‘production,’’
operation or maintenance of
commodities controlled by ECCNs
0A614 or 0B614 (except the .y
paragraphs of these ECCNs). ECCN
0D614.y would impose only antiterrorism controls on specific
‘‘software’’ that is ‘‘specially designed’’
for the ‘‘production,’’ ‘‘development,’’
operation or maintenance of
commodities controlled by ECCNs
0A614.y or 0B614.y.
New ECCN 0E614: ‘‘Technology’’
(Related to ECCNs 0A014, 0B014, and
0D014)
Proposed ECCN 0E614 would impose
national security (NS Column 1),
regional stability (RS Column 1), and
anti-terrorism (AT Column 1) controls
on ‘‘technology’’ ‘‘required’’ for the
‘‘development,’’ ‘‘production,’’
operation, installation, maintenance,
repair, or overhaul of commodities
controlled by 0A614 or 0B614, or
software controlled by 0D614 (except
the .y paragraphs of these ECCNs).
ECCN 0E614.y would impose only antiterrorism controls on specific
‘‘technology’’ that is ‘‘required’’ for the
‘‘production,’’ ‘‘development,’’
operation, installation, maintenance,
repair or overhaul of commodities
controlled by ECCNs 0A614.y or
0B614.y or software controlled by ECCN
0D614.y.
Inclusion of ‘‘.y.99’’ Paragraphs in 600
Series ECCNs
Proposed new ECCNs 0A614, 0B614,
0D614 and 0E614 also would contain a
paragraph ‘‘.y.99’’ that would control
any item that meets all of the following
criteria: (i) The item is not listed on the
CCL; (ii) the item was previously
determined to be subject to the EAR in
an applicable commodity jurisdiction
determination issued by the U.S.
Department of State; and (iii) the item
would otherwise be controlled under
one of these 0x614 ECCNs because, for
example, the item was ‘‘specially
designed’’ for a military use.
Revisions to § 742.6 of the EAR
To implement the regional stability
controls that apply to the four new ‘‘600
series’’ ECCNs noted above, this
proposed rule would revise § 742.6(a)(1)
of the EAR to apply the RS Column 1
licensing policy to items classified
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Federal Register / Vol. 77, No. 114 / Wednesday, June 13, 2012 / Proposed Rules
under ECCNs 0A614, 0B614, 0D614 and
0E614 (except the .y paragraphs).
Proposed New ECCNs and License
Exception STA
The July 15 proposed rule, as
modified by the November 7 proposed
rule, would preclude use of License
Exception STA for end-items in 600
series ECCNs unless eligibility for such
use was applied for and approved by
BIS. This proposed rule would exempt
end items classified under ECCN 0A614
(military training ‘‘equipment’’) and
classified under ECCN 0B614 (test,
inspection and production ‘‘equipment’’
for military training ‘‘equipment’’) from
that requirement. BIS notes this
proposed policy by including in the
STA paragraphs of these two ECCNs a
statement that reads: ‘‘Paragraph (c)(1)
of License Exception STA
(§ 740.20(c)(1)) may be used for items in
0A614 without the need for a
determination described in § 740.20(g).’’
This provision would prevail over the
elements of the July 15 proposed rule,
as modified by the November 7
proposed rule, that indicated that ‘‘600
series’’ ‘‘end items’’ may not be
exported, reexported or transferred
pursuant to License Exception STA
unless those end items have been
identified by BIS in writing or
published as an eligible item for License
Exception STA in response to a License
Exception STA eligibility request in
accordance with § 740.20(g) of the EAR.
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Request for Comments
All comments must be in writing and
submitted via one or more of the
methods listed under the ADDRESSES
caption to this notice. All comments
(including any personal identifiable
information) will be available for public
inspection and copying. Those wishing
to comment anonymously may do so by
submitting their comment via
regulations.gov and leaving the fields
for identifying information blank.
Relationship to the July 15 Proposed
Rule and the November 7 Proposed Rule
As referenced above, the purpose of
the July 15 proposed rule was to set up
the framework to support the transfer of
items from the USML to the CCL. To
facilitate that goal, the July 15 proposed
rule contained definitions and concepts
that were meant to be applied across
categories. However, as BIS undertakes
rulemakings to move specific categories
of items from the USML to the CCL,
there may be unforeseen issues or
complications that may require BIS to
reexamine those definitions and
concepts. The comment period for the
July 15 proposed rule closed on
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September 13, 2011. In the November 7
proposed rule, BIS proposed several
changes to those definitions and
concepts. The comment period for the
November 7 proposed rule closed on
December 22, 2011.
To the extent that this rule’s proposals
affect any provision in either of those
proposed rules or any provision in
either of those proposed rules affect this
proposed rule, BIS will consider
comments on those provisions so long
as they are within the context of the
changes proposed in this rule.
BIS believes that the following aspects
of the July 15 proposed rule and the
November 7 proposed rule are among
those that could affect this proposed
rule:
• De minimis provisions in § 734.4;
• Restrictions on use of license
exceptions in §§ 740.2, 740.10, 740.11,
and 740.20;
• Change to national security
licensing policy in § 742.4;
• Licensing policy in § 742.4(b)(1)(ii);
• Addition of 600 series items to
Supplement No. 2 to Part 744—List of
Items Subject to the Military End-Use
Requirement of § 744.21;
• Addition of U.S. arms embargo
policy regarding 600 series items set
forth in § 742.4(b)(1)(ii) (national
security) of the July 15 proposed rule to
§ 742.6(b)(1) (regional stability) of the
November 7 proposed rule; and
• Definitions of terms in § 772.1.
Effects of This Proposed Rule
De minimis
The July 15 proposed rule would
impose certain unique de minimis
requirements on items controlled under
the new 600 series ECCNs. Section
734.3 of the EAR provides, inter alia,
that under certain conditions, items
made outside the United States that
incorporate items subject to the EAR are
not subject to the EAR if they do not
exceed a de minimis percentage of
controlled U.S.-origin content.
Depending on the destination, the de
minimis percentage can be either 10
percent or 25 percent. The military
training ‘‘equipment’’ and the test,
inspection and production ‘‘equipment’’
for military training ‘‘equipment’’ that
would be subject to the EAR as a result
of this proposed rule would become
eligible for de minimis treatment.
Use of License Exceptions
Military training ‘‘equipment’’ and
test, inspection, and production
‘‘equipment’’ therefor currently on the
USML that would be classified under
ECCNs 0A614 and 0B614 would become
eligible for several license exceptions,
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including STA, which would be
available for exports to certain
government agencies of NATO and
other multi-regime close allies. The
exchange of information and statements
required under STA is substantially less
burdensome than are the license
application requirements currently
required under the ITAR, as discussed
in more detail in the ‘‘Regulatory
Requirements’’ section of this proposed
rule. None of the military training
‘‘equipment’’ or test, inspection and
production ‘‘equipment’’ therefor that
would be controlled by ECCNs 0A614 or
0B614 would be subject to the provision
in the July 15 proposed rule that
proposes to preclude the use of License
Exception STA for ‘‘600 series’’ end
items unless approval for such use is
sought from and granted by BIS. The
items covered by this rule also would be
eligible for the following license
exceptions: LVS (limited value
shipments), up to $1500; TMP
(temporary exports); and RPL (servicing
and parts replacement).
Alignment With the Wassenaar
Arrangement Munitions List
The Administration has stated since
the beginning of the Export Control
Reform Initiative that the reforms will
be consistent with U.S. obligations to
the multilateral export control regimes.
Accordingly, the Administration will, in
this and subsequent proposed rules,
exercise its national discretion to
implement, clarify, and, to the extent
feasible, align its controls with those of
the regimes. This proposed rule would
align controls on the items that it adds
to the CCL by placing them in new 600
series ECCNs ending in ‘‘14’’ to parallel
Category ML14 on the Wassenaar
Arrangement Munitions List
(‘‘ ‘Specialised equipment for military
training’ or for simulating military
scenarios, simulators specially designed
for training in the use of any firearm or
weapon specified by ML.1 or ML.2, and
specially designed components and
accessories therefor’’). Items in
proposed ECCN 0A614 are covered by
WAML Category ML 14.
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 12, 2011, 76 FR 50661
(August 16, 2011), has continued the
Export Administration Regulations in
effect under the International
Emergency Economic Powers Act. BIS
continues to carry out the provisions of
the Export Administration Act, as
appropriate and to the extent permitted
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Federal Register / Vol. 77, No. 114 / Wednesday, June 13, 2012 / Proposed Rules
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by law, pursuant to Executive Order
13222.
Rulemaking Requirements
1. Executive Orders 13563 and 12866
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distribute impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This rule has been
designated a ‘‘significant regulatory
action,’’ although not economically
significant, under section 3(f) of
Executive Order 12866. Accordingly,
the rule has been reviewed by the Office
of Management and Budget (OMB).
2. Notwithstanding any other
provision of law, no person is required
to respond to, nor is 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
OMB control number. This proposed
rule would affect two approved
collections: Simplified Network
Application Processing System (control
number 0694–0088), which includes,
among other things, license
applications, and License Exceptions
and Exclusions (0694–0137).
As stated in the proposed rule
published at 76 FR 41958 (July 15,
2011), BIS believes that the combined
effect of all rules to be published adding
items to the EAR that would be removed
from the ITAR as part of the
administration’s Export Control Reform
Initiative would increase the number of
license applications to be submitted by
approximately 16,000 annually,
resulting in an increase in burden hours
of 5,067 (16,000 transactions at 17
minutes each) under control number
0694–0088.
Military training ‘‘equipment,’’ related
test, inspection, and production
‘‘equipment,’’ ‘‘parts,’’ ‘‘components,’’
‘‘accessories and attachments,’’
‘‘software’’ and ‘‘technology’’ formerly
on the USML would become eligible for
License Exception STA under this rule.
As stated in the July 15 proposed rule,
BIS believes that the increased use of
License Exception STA resulting from
combined effect of all rules to be
published adding items to the EAR that
would be removed from the ITAR as
part of the administration’s Export
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Control Reform Initiative would
increase the burden associated with
control number 0694–0137 by about
23,858 hours (20,450 transactions @ 1
hour and 10 minutes each).
BIS expects that this increase in
burden would be more than offset by a
reduction in burden hours associated
with approved collections related to the
ITAR. The largest impact of the
proposed rule would likely apply to
exporters of replacement parts for
military training ‘‘equipment’’ that has
been approved under the ITAR for
export to allies and regime partners.
Because, with few exceptions, the ITAR
allows exemptions from license
requirements only for exports to
Canada, most exports of such parts,
even when destined to NATO and other
close allies, require specific State
Department authorization. Under the
EAR, as proposed in this notice, such
parts as well as non-combat military
trainers, certain radar trainers and
training ‘‘equipment’’ for ground
military operations along with related
test, inspection, and production
‘‘equipment’’ would become eligible for
export to NATO and other multi-regime
allies under License Exception STA.
Use of License Exception STA imposes
a paperwork and compliance burden
because, for example, exporters must
furnish information about the item
being exported to the consignee and
obtain from the consignee an
acknowledgement and commitment to
comply with the EAR. However, the
Administration understands that
complying with the burdens of STA is
likely less burdensome than applying
for licenses. For example, under License
Exception STA, a single consignee
statement can apply to an unlimited
number of products, need not have an
expiration date, and need not be
submitted to the government in advance
for approval. Suppliers with regular
customers can tailor a single statement
and assurance to match their business
relationship rather than applying
repeatedly for licenses with every
purchase order to supply reliable
customers in countries that are close
allies or members of export control
regimes or both.
Even in situations in which a license
would be required under the EAR, the
burden is likely to be reduced compared
to the license requirement of the ITAR.
In particular, license applications for
exports of technology controlled by
ECCN 0E614 are likely to be less
complex and burdensome than the
authorizations required to export ITARcontrolled technology, i.e.,
Manufacturing License Agreements and
Technical Assistance Agreements.
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3. This rule does not contain policies
with Federalism implications as that
term is defined under E.O. 13132.
4. The Regulatory Flexibility Act
(RFA), as amended by the Small
Business Regulatory Enforcement
Fairness Act of 1996 (SBREFA), 5 U.S.C.
601 et seq., generally requires an agency
to prepare an initial regulatory
flexibility analysis (IRFA) of any rule
subject to the notice and comment
rulemaking requirements under the
Administrative Procedure Act (5 U.S.C.
553) or any other statute. However,
under section 605(b) of the RFA,
however, if the head of an agency
certifies that a rule will not have a
significant impact on a substantial
number of small entities, the RFA does
not require the agency to prepare a
regulatory flexibility analysis. Pursuant
to section 605(b), the Chief Counsel for
Regulation, Department of Commerce,
submitted a memorandum to the Chief
Counsel for Advocacy, Small Business
Administration, certifying that this
proposed rule, if promulgated, will not
have a significant impact on a
substantial number of small entities.
Number of Small Entities
The Bureau of Industry and Security
(BIS) does not collect data on the size
of entities that apply for and are issued
export licenses. Although BIS is unable
to estimate the exact number of small
entities that would be affected by this
rule, it acknowledges that this rule
would affect some unknown number.
Economic Impact
This proposed rule is part of the
Administration’s Export Control Reform
Initiative. Under that initiative, the
United States Munitions List (22 CFR
part 121) (USML) would be revised to be
a ‘‘positive’’ list, i.e., a list that does not
use generic, catch-all controls on any
part, component, accessory, attachment,
or end item that was in any way
specifically modified for a defense
article, regardless of the article’s
military or intelligence significance or
non-military applications. At the same
time, articles that are determined to no
longer warrant control on the USML
would become controlled on the
Commerce Control List (CCL). Such
items, along with certain military items
that currently are on the CCL, will be
identified in specific Export Control
Classification Numbers (ECCNs) known
as the ‘‘600 series’’ ECCNs. In addition,
some items currently on the Commerce
Control List would move from existing
ECCNs to the new 600 series ECCNs. In
practice, the greatest impact of this rule
on small entities would likely be
reduced administrative costs and
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reduced delay for exports of items that
are now on the USML but would
become subject to the EAR. This rule
addresses Category IX articles, which
are: military training ‘‘equipment,’’
‘‘parts,’’ ‘‘components,’’ and
‘‘accessories and attachments’’ therefor;
test, inspection, and production
‘‘equipment’’ for military training
‘‘equipment’’ and ‘‘parts,’’
‘‘components’’ and ‘‘accessories and
attachments’’ therefor; and related
‘‘software’’ and ‘‘technology.’’ Training
‘‘equipment’’ related to certain
inherently military functions would
remain on the USML. However, parts,
components, and ‘‘accessories and
attachments’’ for that ‘‘equipment’’
would be included on the CCL unless
expressly controlled on the USML. Such
parts and components are more likely to
be produced by small businesses than
are complete items of training
equipment, and would in many cases
become subject to the EAR. Moreover,
officials of the Department of State have
informed BIS that license applications
for such parts and components are a
high percentage of the license
applications for USML articles reviewed
by that department.
Changing the jurisdictional status of
Category IX items would reduce the
burden on small entities (and other
entities as well) through:
—Elimination of some license
requirements,
—Greater availability of license
exceptions,
—Simpler license application
procedures, and
—Reduced (or eliminated) registration
fees.
In addition, parts and components
controlled under the ITAR remain under
ITAR control when incorporated into
foreign-made items, regardless of the
significance or insignificance of the
item, discouraging foreign buyers from
incorporating such U.S. content. The
availability of de minimis treatment
under the EAR may reduce the incentive
for foreign manufacturers to avoid
purchasing U.S.-origin parts and
components.
Many exports and reexports of the
Category IX articles that would be
placed on the CCL, as proposed in this
rule, particularly parts and components,
would become eligible for license
exceptions that apply to shipments to
U.S. Government agencies, shipments
valued at less than $1,500, parts and
components being exported for use as
replacement parts, temporary exports,
and License Exception Strategic Trade
Authorization (STA), reducing the
number of licenses that exporters of
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these items would need. License
exceptions under the EAR would allow
suppliers to send routine replacement
parts and low level parts to NATO and
other close allies and export control
regime partners for use by those
governments and for use by contractors
building equipment for those
governments or for the U.S. Government
without having to obtain export
licenses. Under License Exception STA,
the exporter would need to furnish
information about the item being
exported to the consignee and obtain a
statement from the consignee that,
among other things, would commit the
consignee to comply with the EAR and
other applicable U.S. laws. Because
such statements and obligations can
apply to an unlimited number of
transactions and have no expiration
date, they would impose a net reduction
in burden on transactions that the
government routinely approves through
the license application process that the
License Exception STA statements
would replace.
Even for exports and reexports in
which a license would be required, the
process would be simpler and less
costly under the EAR. When a USML
Category IX article is moved to the CCL,
the number of destinations for which a
license is required would remain
unchanged. However, the burden on the
license applicant would decrease
because the licensing procedure for CCL
items is simpler and more flexible than
the license procedure for USML articles.
Under the USML licensing procedure,
an applicant must include a purchase
order or contract with its application.
There is no such requirement under the
CCL licensing procedure. This
difference gives the CCL applicant at
least two advantages. First, the
applicant has a way of determining
whether the U.S. government will
authorize the transaction before it enters
into potentially lengthy, complex and
expensive sales presentations or
contract negotiations. Under the USML
procedure, the applicant will need to
caveat all sales presentations with a
reference to the need for government
approval and is more likely to have to
engage in substantial effort and expense
only to find that the government will
reject the application. Second, a CCL
license applicant need not limit its
application to the quantity or value of
one purchase order or contract. It may
apply for a license to cover all of its
expected exports or reexports to a
particular consignee over the life of a
license (normally two years, but may be
longer if circumstances warrant a longer
period), reducing the total number of
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licenses for which the applicant must
apply.
In addition, many applicants
exporting or reexporting items that this
rule would transfer from the USML to
the CCL would realize cost savings
through the elimination of some or all
registration fees currently assessed
under the ITAR’s licensing procedure.
Currently, ITAR applicants must pay to
use the ITAR licensing procedure even
if they never actually are authorized to
export. Registration fees for
manufacturers and exporters of articles
on the USML start at $2,500 per year,
increase to $2,750 for organizations
applying for one to ten licenses per year
and further increases to $2,750 plus
$250 per license application (subject to
a maximum of three percent of total
application value) for those who need to
apply for more than ten licenses per
year. There are no registration or
application processing fees for
applications to export items listed on
the CCL. Once the Category IX items
that are the subject to this rulemaking
are removed from the USML and added
to the CCL, entities currently applying
for licenses from the Department of
State would find their registration fees
reduced if the number of ITAR licenses
those entities need declines. If an
entity’s entire product line is moved to
the CCL, then its ITAR registration and
registration fee requirement would be
eliminated.
De minimis treatment under the EAR
would become available for all items
that this rule proposes to transfer from
the USML to the CCL. Items subject to
the ITAR remain subject to the ITAR
when they are incorporated abroad into
a foreign-made product regardless of the
percentage of U.S. content in that
foreign made product. Foreign-made
products that incorporate items that this
rule would move to the CCL would be
subject to the EAR only if their total
controlled U.S.-origin content exceeded
10 percent. Because including small
amounts of U.S.-origin content would
not subject foreign-made products to the
EAR, foreign manufacturers would have
less incentive to avoid such U.S.-origin
parts and components, a development
that potentially would mean greater
sales for U.S. suppliers, including small
entities.
BIS is still considering comments
made in response to the July 15 rule
pertaining to these proposed new de
minimis levels and, as noted above, will
consider de minimis-related comments
to this proposed rule provided they are
in the context of this proposed rule.
However, BIS believes that increased
burden imposed by those actions will be
offset substantially by the reduction in
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burden attributable to the moving of
items from the USML to CCL and the
compliance benefits associated with the
consolidation of all WAML items
subject to the EAR in one series of
ECCNs.
Conclusion
BIS is unable to determine the precise
number of small entities that would be
affected by this rule. Based on the facts
and conclusions set forth above, BIS
believes that any burdens imposed by
this rule would be offset by a reduction
in the number of items that would
require a license, increased
opportunities for use of license
exceptions for exports to certain
countries, simpler export license
applications, reduced or eliminated
registration fees and application of a de
minimis threshold for foreign-made
items incorporating U.S.-origin parts
and components, which would reduce
the incentive for foreign buyers to
design out or avoid U.S.-origin content.
For these reasons, the Chief Counsel for
Regulation of the Department of
Commerce certified to the Chief Counsel
for Advocacy of the Small Business
Administration that this rule, if adopted
in final form, would not have a
significant economic impact on a
substantial number of small entities.
Accordingly, no IRFA is required, and
none has been prepared.
List of Subjects
15 CFR Part 742
Exports, Terrorism.
15 CFR Part 774
Exports, Reporting and recordkeeping
requirements.
For the reasons stated in the
preamble, parts 742 and 774 of the
Export Administration Regulations (15
CFR parts 730–774) are proposed to be
amended as follows:
PART 742—[AMENDED]
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1. The authority citation for 15 CFR
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; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; 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 12, 2011, 76 FR
50661 (August 16, 2011); Notice of November
9, 2011, 76 FR 70319 (November 10, 2011).
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2. Section 742.6 is amended by
revising paragraph (a)(1) to read as
follows:
§ 742.6
Regional stability.
(a) License requirements. The
following controls are maintained in
support of U.S. foreign policy to
maintain regional stability:
(1) RS Column 1 License
Requirements in General. As indicated
in the CCL and in RS column 1 of the
Commerce Country Chart (see
Supplement No. 1 to part 738 of the
EAR), a license is required to all
destinations, except Canada, for items
described on the CCL under ECCNs
0A606 (except 0A606.b and .y); 0A614
(except 0A614.y); 0A617 (except
0A617.y); 0B606 (except 0B606.y);
0B614 (except 0B614.y); 0B617 (except
0B617.y); 0C606 (except 0C606.y);
0C617; 0D606 (except 0D606.y); 0D614
(except 0D614.y); 0D617 (except
0D617.y); 0E606 (except 0E606.y);
0E614 (except 0E614.y); 0E617 (except
0E617.y); 1A607 (except 1A607.y);
1B607; (except 1B607.y); 1B608 (except
1B608.y); 1C607; 1C608; 1D607 (except
1D607.y); 1D608(except 1D608.y);
1E607 (except 1E607.y); 1E608 (except
1E608.y); 3A982; 3D982; 3E982;
6A002.a.1, a.2, a.3, .c, or .e; 6A003.b.3,
and b.4.a; 6A008.j.1; 6A998.b; 6D001
(only ‘‘software’’ for the ‘‘development’’
or ‘‘production’’ of items in 6A002.a.1,
a.2, a.3, .c; 6A003.b.3 and .b.4; or
6A008.j.1); 6D002 (only ‘‘software’’ for
the ‘‘use’’ of items in 6A002.a.1, a.2, a.3,
.c; 6A003.b.3 and .b.4; or 6A008.j.1);
6D003.c, 6D991 (only ‘‘software’’ for the
‘‘development,’’ ‘‘production,’’ or ‘‘use’’
of equipment controlled by 6A002.e or
6A998.b); 6E001 (only technology’’ for
‘‘development’’ of items in 6A002.a.1,
a.2, a.3 (except 6A002.a.3.d.2.a and
6A002.a.3.e for lead selenide focal plane
arrays), and .c or .e, 6A003.b.3 and b.4,
or 6A008.j.1); 6E002 (only ‘‘technology’’
for ‘‘production’’ of items in 6A002.a.1,
a.2, a.3, .c, or .e, 6A003.b.3 or b.4, or
6A008.j.1); 6E991 (only ‘‘technology’’
for the ‘‘development,’’ ‘‘production,’’ or
‘‘use’’ of equipment controlled by
6A998.b); 6D994; 7A994 (only QRS11–
00100–100/101 and QRS11–0050–443/
569 Micromachined Angular Rate
Sensors); 7D001 (only ‘‘software’’ for
‘‘development’’ or ‘‘production’’ of
items in 7A001, 7A002, or 7A003);
7E001 (only ‘‘technology’’ for the
‘‘development’’ of inertial navigation
systems, inertial equipment, and
specially designed components therefor
for civil aircraft); 7E002 (only
‘‘technology’’ for the ‘‘production’’ of
inertial navigation systems, inertial
equipment, and specially designed
components therefor for civil aircraft);
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7E101 (only ‘‘technology’’ for the ‘‘use’’
of inertial navigation systems, inertial
equipment, and specially designed
components for civil aircraft); 8A609
(except 8A609.y); 8A620 (except
8A620.y); 8B609 (except 8B609.y);
8B620 (except 8B620.y); 8C609 (except
8C609.y); 8D609 (except software for the
‘‘development,’’ ‘‘production,’’
operation, or maintenance of
commodities controlled by 8A609.y,
8B609.y, or 8C609.y); 8D620 (except
software for the ‘‘development,’’
‘‘production,’’ operation, or
maintenance of commodities controlled
by 8A620.y or 8B620.y); 8E609 (except
‘‘technology’’ for the ‘‘development,’’
‘‘production,’’ operation, installation,
maintenance, repair, or overhaul of
commodities controlled by 8A609.y,
8B609.y, or 8C609.y); 8E620 (except
‘‘technology’’ for the ‘‘development,’’
‘‘production,’’ operation, installation,
maintenance, repair, overhaul, or
refurbishment of commodities
controlled by 8A620.y or 8B620.y);
9A610 (except 9A610.y); 9A619 (except
9A619.y); 9B610 (except 9B610.y);
9B619 (except 9B619.y); 9C610 (except
9C610.y); 9C619 (except 9C619.y);
9D610 (except software for the
‘‘development,’’ ‘‘production,’’
operation, installation, maintenance,
repair, or overhaul of commodities
controlled by 9A610.y, 9B610.y, or
9C610.y); 9D619 (except software for the
‘‘development,’’ ‘‘production,’’
operation, or maintenance of
commodities controlled by 9A619.y,
9B619.y, or 9C619.y); 9E610 (except
‘‘technology’’ for the ‘‘development,’’
‘‘production,’’ operation, installation,
maintenance, repair, or overhaul of
commodities controlled by ECCN
9A610.y, 9B610.y, or 9C610.y); and
9E619 (except ‘‘technology’’ for the
‘‘development,’’ ‘‘production’’
operation, installation, maintenance,
repair, or overhaul of commodities
controlled by ECCN 9A619.y, 9B619.y,
or 9C619.y).
*
*
*
*
*
PART 774—[AMENDED]
3. The authority citation for 15 CFR
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); 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; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; 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 12, 2011, 76
FR 50661 (August 16, 2011).
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4. In Supplement No. 1 to Part 774,
the Commerce Control List, add,
between the entries for Export Control
Classification Numbers 0A018 and
0A918, a new entry for Export Control
Classification Number 0A614 to read as
follows:
Supplement No. 1 to Part 774—The
Commerce Control List
*
*
*
*
*
0A614 Military Training ‘‘Equipment,’’ as
follows (see List of items controlled):
License Requirements
Reason for Control: NS, RS, AT
Control(s)
Country chart
NS applies to entire
entry except
0A614.y.
NS Column 1
RS applies to entire
entry except
0A614.y.
RS Column 1
AT applies to entire
entry.
AT Column 1
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License Exceptions
LVS: $1500
GBS: N/A
CIV: N/A
STA: Paragraph (c)(1) of License Exception
STA (§ 740.20(c)(1)) may be used for items
in 0A614 without the need for a
determination described in § 740.20(g).
Paragraph (c)(2) of License Exception STA
(§ 740.20(c)(2)) of the EAR may not be used
for any item in 0A614.
List of Items Controlled
Unit: ‘‘End items’’ in number; ‘‘parts,’’
‘‘components,’’ and ‘‘accessories and
attachments’’ in $ value
Related Controls: (1) Defense articles that are
enumerated in USML Category IX and
‘‘technical data’’ (including ‘‘software’’)
directly related thereto are subject to the
ITAR. (2) See ECCN 0A919 for foreignmade ‘‘military commodities’’ that
incorporate more than 10% U.S.-origin
‘‘600 series’’ items. (3) ‘‘Parts,’’
‘‘components,’’ and ‘‘accessories and
attachments’’ that are common to a
simulator controlled by ECCN 0A614.a and
to a simulated system or an end item that
is controlled on the USML or elsewhere on
the CCL are controlled under the same
USML Category or ECCN as the ‘‘parts,’’
‘‘components,’’ and ‘‘accessories and
attachments’’ of the simulated system or
end item.
Related Definitions: N/A
Items:
a. ‘‘Equipment’’ ‘‘specially designed’’ for
military training that is not enumerated in
USML Category IX.
Note: This entry includes operational flight
trainers, radar target trainers, flight
simulators for aircraft classified under ECCN
9A610.a, human-rated centrifuges, radar
trainers for radars classified under ECCN
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3A611, instrument flight trainers for military
aircraft, navigation trainers for military items,
target equipment, armament trainers, military
pilotless aircraft trainers, mobile training
units and training ‘‘equipment’’ for ground
military operations.
Note: This entry does not apply to
‘‘equipment’’ ‘‘specially designed’’ for
training in the use of hunting or sporting
weapons.
b. through w. [Reserved]
x. ‘‘Parts,’’ ‘‘components,’’ and ‘‘accessories
and attachments’’ that are ‘‘specially
designed’’ for a commodity controlled by this
entry or an article enumerated in USML
Category IX, and not specified elsewhere in
the CCL or the USML.
Note: Forgings, castings, and other
unfinished products, such as extrusions and
machined bodies, that have reached a stage
in manufacturing where they are clearly
identifiable by material composition,
geometry, or function as commodities
controlled by ECCN 0A614.x are controlled
by ECCN 0A614.x.
y. Specific ‘‘parts,’’ ‘‘components,’’
‘‘accessories and attachments’’ ‘‘specially
designed’’ for a commodity subject to control
in this ECCN and not elsewhere specified in
the CCL, as follows:
y.1 to y.98 [Reserved]
y.99. Commodities not identified on the
CCL that (i) have been determined, in an
applicable commodity jurisdiction
determination issued by the U.S. Department
of State, to be subject to the EAR and (ii)
would otherwise be controlled elsewhere in
ECCN 0A614.
5. In Supplement No. 1 to Part 774,
the Commerce Control List, add,
between the entries for Export Control
Classification Numbers 0B006 and
0B968, a new entry for Export Control
Classification Number 0B614 to read as
follows:
0B614 Test, inspection, and production
‘‘equipment’’ for military training
‘‘equipment’’ and ‘‘specially designed’’
‘‘parts,’’ ‘‘components,’’ and
‘‘accessories and attachments’’ therefor,
as follows (see list of items controlled).
License Requirements
Reason for Control: NS, RS, AT
Control(s)
Country chart
in 0B614 without the need for a
determination described in § 740.20(g).
Paragraph (c)(2) of License Exception STA
(§ 740.20(c)(2)) of the EAR may not be used
for any item in 0B614.
List of Items Controlled
Unit: N/A
Related Controls:
Related Definitions: N/A
Items:
a. Test, inspection, and other production
‘‘equipment’’ ‘‘specially designed’’ for the
‘‘production’’ of commodities controlled by
ECCN 0A614 or articles enumerated in USML
Category IX.
b. through .w [Reserved]
x. ‘‘Parts,’’ ‘‘components,’’ and ‘‘accessories
and attachments’’ that are ‘‘specially
designed’’ for a commodity controlled by
ECCN 0B614.
Note 1: Forgings, castings, and other
unfinished products, such as extrusions and
machined bodies, that have reached a stage
in manufacturing where they are clearly
identifiable by material composition,
geometry, or function as commodities
controlled by ECCN 0B614.x are controlled
by ECCN 0B614.x.
y. Specific ‘‘parts,’’ ‘‘components,’’ and
‘‘accessories and attachments’’ ‘‘specially
designed’’ for a commodity subject to control
in this ECCN and not elsewhere specified in
the CCL, as follows:
y.1 to y.98 [Reserved]
y.99. Commodities not identified
elsewhere on the CCL that (i) have been
determined, in an applicable commodity
jurisdiction determination issued by the U.S.
Department of State, to be subject to the EAR
and (ii) would otherwise be controlled
elsewhere in this entry.
6. In Supplement No. 1 to Part 774,
the Commerce Control List, add,
between the entries for Export Control
Classification Number 0C201 and before
the header that reads ‘‘D. Software’’ a
new entry for Export Control
Classification Number 0D614 to read as
follows:
0D614 ‘‘Software’’ related to military
training ‘‘equipment,’’ as follows (See
list of items controlled).
License Requirements
Reason for Control: NS, RS, AT
NS applies to entire
entry except
0B614.y.
NS Column 1
RS Column 1
NS applies to entire
entry except
0D614.y.
NS Column 1
RS applies to entire
entry except
0B614.y.
AT Column 1
RS applies to entire
entry except
0D614.y.
RS Column 1
AT applies to entire
entry.
AT applies to entire
entry.
AT Column 1
Control(s)
License Exceptions
LVS: $1500
GBS: N/A
CIV: N/A
STA: Paragraph (c)(1) of License Exception
STA (§ 740.20(c)(1)) may be used for items
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CIV: N/A
TSR: N/A
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STA: Paragraph (c)(2) of License Exception
STA (§ 740.20(c)(2))of the EAR may not be
used for any ‘‘software’’ in 0D614.
List of Items Controlled
Unit: $ value
Related Controls: ‘‘Software’’ directly related
to articles enumerated in USML Category
IX is subject to the control of USML
paragraph IX(e). See ECCN 0A919 for
foreign made ‘‘military commodities’’ that
incorporate more than 10% U.S.-origin
‘‘600 series’’ items.
Related Definitions: N/A
Items:
a. ‘‘Software’’ (other than ‘‘software’’
controlled in paragraph .y of this entry)
‘‘specially designed’’ for the ‘‘development,’’
‘‘production,’’ operation or maintenance of
commodities controlled by ECCNs 0A614
(except 0A614.y) or 0B614 (except 0B614.y).
b. to x. [RESERVED]
y. Specific ‘‘software’’ ‘‘specially designed’’
for the ‘‘production,’’ ‘‘development,’’ or
operation or maintenance of commodities
controlled by ECCNs 0A614 or 0B614, as
follows:
y.1. Specific ‘‘software’’ ‘‘specially
designed’’ for the ‘‘production,’’
‘‘development,’’ operation or maintenance of
commodities controlled by ECCNs 0A614.y
or 0B614.y.
y.2 through y.98 [RESERVED]
y.99. ‘‘Software’’ that would otherwise be
controlled elsewhere in this entry but that (i)
has been determined to be subject to the EAR
in a commodity jurisdiction determination
issued by the U.S. Department of State and
(ii) is not otherwise identified elsewhere on
the CCL.
7. In Supplement No. 1 to Part 774,
the Commerce Control List, add,
between the entries for Export Control
Classification Numbers 0E018 and
0E918, a new entry for Export Control
Classification Number 0E614 to read as
follows:
Related Controls: ‘‘Technical data’’ directly
related to articles enumerated in USML
Category IX is subject to the control of
USML paragraph IX(e).
Related Definitions: N/A
Items:
a. ‘‘Technology’’ (other than ‘‘technology’’
controlled by paragraph .y of this entry)
‘‘required’’ for the ‘‘development,’’
‘‘production,’’ operation, installation,
maintenance, repair overhaul, or refurbishing
of commodities or ‘‘software’’ controlled by
ECCNs 0A614 (except 0A614.y), 0B614
(except 0B614.y), or 0D614 (except 0D614.y).
b. through x. [RESERVED]
y. Specific ‘‘technology’’ ‘‘required’’ for the
‘‘production,’’ ‘‘development,’’ operation,
installation, maintenance, repair, or overhaul
of commodities controlled by ECCNs
0A614.y or 0B614.y, or ‘‘software’’ controlled
by ECCN 0D614.y, as follows:
y.1. Specific ‘‘technology’’ ‘‘required’’ for
the ‘‘production,’’ ‘‘development,’’ operation,
installation, maintenance, repair or overhaul
of commodities controlled by ECCNs
0A614.y or 0B614.y or ‘‘software’’ controlled
by ECCN 0D614.y.
y.2. through y.98 [RESERVED]
y.99. ‘‘Technology’’ that would otherwise
be controlled elsewhere in this entry but that
(i) has been determined to be subject to the
EAR in a commodity jurisdiction
determination issued by the U.S. Department
of State and (ii) is not otherwise identified
elsewhere on the CCL.
Dated: June 6, 2012.
Kevin J. Wolf,
Assistant Secretary of Commerce for Export
Administration.
[FR Doc. 2012–14444 Filed 6–12–12; 8:45 am]
BILLING CODE 3510–33–P
provide for the safe use of folic acid in
corn masa flour.
FOR FURTHER INFORMATION CONTACT:
Judith Kidwell, Center for Food Safety
and Applied Nutrition (HFS–265), Food
and Drug Administration, 5100 Paint
Branch Pkwy., College Park, MD 20740–
3835, 240–402–1071.
SUPPLEMENTARY INFORMATION: Under the
Federal Food, Drug, and Cosmetic Act
(sec. 409(b)(5) (21 U.S.C. 348(b)(5))),
notice is given that a food additive
petition (FAP 2A4796) has been jointly
filed by Gruma Corporation, Spina
Bifida Association, March of Dimes
Foundation, American Academy of
Pediatrics, Royal DSM N.V., and
National Council of La Raza, c/o Alston
& Bird, LLP, 950 F Street NW.,
Washington, DC 20004–1404. The
petition proposes to amend the food
additive regulations in § 172.345 Folic
acid (folacin) (21 CFR 172.345) to
provide for the safe use of folic acid in
corn masa flour.
The Agency has determined under 21
CFR 25.32(k) that this action is of a type
that does not individually or
cumulatively have a significant effect on
the human environment. Therefore,
neither an environmental assessment
nor an environmental impact statement
is required.
Dated: June 7, 2012.
Dennis M. Keefe,
Acting Director, Office of Food Additive
Safety, Center for Food Safety and Applied
Nutrition.
[FR Doc. 2012–14263 Filed 6–12–12; 8:45 am]
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
BILLING CODE 4160–01–P
0E614 ‘‘Technology,’’ as follows (See list of
items controlled).
Food and Drug Administration
DEPARTMENT OF STATE
License Requirements
Reason for Control: NS, RS, AT
21 CFR Part 172
22 CFR Part 121
Control(s)
Country chart
RS applies to entire
entry except
0E614.y.
Gruma Corporation, Spina Bifida
Association, March of Dimes
Foundation, American Academy of
Pediatrics, Royal DSM N.V., and
National Council of La Raza; Filing of
Food Additive Petition
NS Column 1
RS Column 1
AT applies to entire
entry.
AGENCY:
AT Column 1
List of Items Controlled
Unit: $ value
13:47 Jun 12, 2012
Jkt 226001
Food and Drug Administration,
ACTION:
Notice of petition.
The Food and Drug
Administration (FDA) is announcing
that Gruma Corporation, Spina Bifida
Association, March of Dimes
Foundation, American Academy of
Pediatrics, Royal DSM N.V., and
National Council of La Raza have jointly
filed a petition proposing that the food
additive regulations be amended to
SUMMARY:
PO 00000
[Public Notice 7920]
Amendment to the International Traffic
in Arms Regulations: Revision of U.S.
Munitions List Category IX
Department of State.
Proposed rule.
AGENCY:
ACTION:
As part of the President’s
Export Control Reform effort, the
Department of State proposes to amend
the International Traffic in Arms
Regulations (ITAR) to revise Category IX
(military training equipment) of the U.S.
Munitions List (USML) to describe more
precisely the materials warranting
control on the USML. The revisions to
this rule are part of the Department of
State’s retrospective plan under E.O.
13563 completed on August 17, 2011.
SUMMARY:
HHS.
License Exceptions
CIV: N/A
TSR: N/A
STA: Paragraph (c)(2) of License Exception
STA (§ 740.20(c)(2)) of the EAR may not be
used for any technology in 0E614.
VerDate Mar<15>2010
RIN 1400–AD15
[Docket No. FDA–2012–F–0480]
NS applies to entire
entry except
0E614.y.
erowe on DSK2VPTVN1PROD with PROPOSALS-1
35317
Frm 00019
Fmt 4702
Sfmt 4702
E:\FR\FM\13JNP1.SGM
13JNP1
]]>Agencies
[Federal Register Volume 77, Number 114 (Wednesday, June 13, 2012)]
[Proposed Rules]
[Pages 35310-35317]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-14444]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 742 and 774
[Docket No. 120202094-2065-01]
RIN 0694-AF54
Revisions to the Export Administration Regulations (EAR): Control
of Military Training Equipment and Related Items the President
Determines No Longer Warrant Control Under the United States Munitions
List (USML)
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule describes how articles the President
determines no longer warrant control under Category IX (Military
Training Equipment and Training) of the United States Munitions List
(USML) would be controlled under the Commerce Control List (CCL) in new
Export Control Classification Numbers (ECCNs) 0A614, 0B614, 0D614, and
0E614.
This rule is one in a planned series of proposed rules describing
how various types of articles the President determines, as part of the
Administration's Export Control Reform Initiative, no longer warrant
USML control, would be controlled on the CCL and by the EAR. This
proposed rule is being published in conjunction with a proposed rule
from the Department of State, Directorate of Defense Trade Controls,
which would amend the list of articles enumerated in USML Category IX.
The revisions in this rule are part of Commerce's retrospective plan
under EO 13563 completed in August 2011. Commerce's full plan can be
accessed at: https://open.commerce.gov/news/2011/08/23/commerce-plan-retrospective-analysis-existing-rules.
DATES: Comments must be received by July 30, 2012.
ADDRESSES: You may submit comments by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
The identification number for this rulemaking is BIS-2012-0023.
By email directly to publiccomments@bis.doc.gov. Include
RIN 0694-AF54 in the subject line.
By mail or delivery to Regulatory Policy Division, Bureau
of Industry and Security, U.S. Department of Commerce, Room 2099B, 14th
Street and Pennsylvania Avenue NW., Washington, DC 20230. Refer to RIN
0694-AF54.
FOR FURTHER INFORMATION CONTACT: Daniel Squire, Office of National
Security and Technology Transfer Controls, Sensors and Aviation
Division, tel. 202 482 3710, email daniel.squire@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
On July 15, 2011, as part of the Administration's ongoing Export
Control Reform Initiative, BIS published a proposed rule (76 FR 41958)
(herein ``the July 15 proposed rule'') that set forth a framework for
how articles the President determines, in accordance with section 38(f)
of the Arms Export Control Act (AECA) (22 U.S.C. 2778(f)), would no
longer warrant control on the United States Munitions List (USML) and
would be controlled on the Commerce Control List (CCL) in Supplement
No. 1 to Part 774 of the Export Administration Regulations (EAR). On
November 7, 2011, BIS published a rule (76 FR 68675) proposing several
changes to the framework initially proposed in the July 15 rule.
Following the structure of the July 15 and November 7 proposed
rules, this proposed rule describes BIS's proposal for controlling
under the EAR and its CCL military training equipment and related
articles now controlled by the ITAR's USML under Category IX but that
would no longer be so controlled if the State Department's proposed
revision to the Category were to become final. The changes described in
this proposed rule and the State Department's proposed companion rule
to Category IX of the USML are based on a review of Category IX by the
Defense Department, which worked with the Departments of State and
Commerce in preparing the proposed amendments. The review was focused
on identifying the types of articles that are now enumerated in USML
Category IX that are either (i) inherently military and otherwise
warrant control on the USML or (ii) common to non-military training
equipment applications, possess parameters or characteristics that
provide a critical military or intelligence advantage to the United
States, and almost exclusively available from the United States. If an
article satisfied one or both of those criteria, the article remained
on the USML. If an article did not satisfy either standard but was
nonetheless a type of article that is, as a result of differences in
form and fit, ``specially designed'' for military applications, it was
identified in the new ECCNs proposed in this notice. The licensing
requirements and other EAR-specific controls for such items described
in this notice would enhance national security by permitting the U.S.
Government to focus its resources on controlling, monitoring,
investigating, analyzing, and, if need be, prohibiting exports and
reexports of more significant items to destinations, end uses, and end
users of greater concern than our NATO allies and other multi-regime
partners.
Pursuant to section 38(f) of the AECA, the President shall review
the USML ``to determine what items, if any, no longer warrant export
controls under'' the AECA. The President must report the results of the
review to Congress and wait 30 days before removing any such items from
the USML. The report must ``describe the nature of any controls to be
imposed on that item under any other provision of law.'' 22 U.S.C.
2778(f)(1).
[[Page 35311]]
In the July 15 proposed rule, BIS proposed creating a series of new
ECCNs to control items that would be removed from the USML, or that are
items from the Munitions List of the Wassenaar Arrangement on Export
Controls for Conventional Arms and Dual Use Goods and Technologies List
(Wassenaar Arrangement Munitions List or WAML) that are already
controlled elsewhere on the CCL. The proposed rule referred to this
series as the ``600 series'' because the third character in each of the
new ECCNs would be a ``6.'' The first two characters of the 600 series
ECCNs serve the same function as any other ECCN as described in Sec.
738.2 of the EAR. The first character is a digit in the range 0 through
9 that identifies the Category on the CCL in which the ECCN is located.
The second character is a letter in the range A through E that
identifies the product group within a CCL Category. In the 600 series,
the third character is the number 6. With few exceptions, the final two
characters identify the WAML category that covers items that are the
same or similar to items in a particular 600 series ECCN.
This proposed rule would create four such ECCNs: 0A614, 0B614,
0D614, and 0E614. ECCN 0A614 would control military training equipment
and specific ``parts,'' ``components,'' and ``accessories and
attachments'' therefor. ECCN 0B614 would control test, inspection, and
production ``equipment,'' including related ``parts,'' ``components,''
and ``accessories and attachments,'' for the ``production'' or
``development'' of commodities controlled by ECCN 0A614 or articles
controlled by USML Category IX. ECCN 0D614 would control ``software''
for the ``development,'' ``production,'' operation or maintenance of
items controlled by ECCNs 0A614 or 0B614. ECCN 0E614 would control
``technology'' for the ``development,'' ``production,'' operation,
installation, maintenance, repair or overhaul of commodities controlled
by ECCNs 0A614 or 0B614 or ``software'' controlled by ECCN 0D614.
The revisions in this rule are part of Commerce's retrospective
plan under EO 13563 completed in August 2011. Commerce's full plan can
be accessed at: https://open.commerce.gov/news/2011/08/23/commerce-plan-retrospective-analysis-existing-rules.
BIS will publish additional Federal Register notices containing
proposed amendments to the CCL that will describe proposed controls for
additional categories of articles the President determines no longer
warrant control under the USML. The State Department will publish
concurrently proposed amendments to the USML that correspond to the BIS
notices. BIS will also publish proposed rules to further align the CCL
with the WAML and the Missile Technology Control Regime Equipment,
Software and Technology Annex.
Detailed Description of Changes Proposed by This Rule
New ECCN 0A614: Military Training ``Equipment''
Proposed ECCN 0A614 would impose national security (NS Column 1),
regional stability (RS Column 1), and anti-terrorism controls on
military training ``equipment'' not controlled by the USML and on most
``parts,'' ``components,'' and ``accessories and attachments''
``specially designed'' for such military training ``equipment.'' ECCN
0A614 also would apply the same controls to ``parts,'' ``components,''
and ``accessories and attachments'' for military training ``equipment''
controlled by Category IX of the USML unless such ``parts,''
``components,'' or ``accessories and attachments'' are specifically
controlled by the USML or another ECCN on the Commerce Control List.
Notes to proposed ECCN 0A614 would identify how specific commodities
would be classified under ECCN 0A614, including simulators for non-
combat military aircraft, certain radar training units, and training
``equipment'' for ground military operations. ECCN 0A614.y would impose
only anti-terrorism controls on specific ``parts,'' ``components,'' and
``accessories and attachments'' that are ``specially designed'' for a
commodity controlled by ECCN 0A614 and not specified elsewhere in the
CCL.
New ECCN 0B614: Test, Inspection, and Production ``Equipment'' for
Military Training ``Equipment'' and ``Specially Designed'' ``Parts,''
``Components,'' and ``Accessories and Attachments'' Therefor
Proposed ECCN 0B614 would impose national security (NS Column 1),
regional stability (RS Column 1), and anti-terrorism controls on test,
inspection and production equipment, and on ``parts,'' ``components,''
and ``accessories and attachments'' therefor, that are ``specially
designed'' for the ``production'' of commodities controlled by ECCN
0A614 or USML Category IX. ECCN 0B614.y would impose only anti-
terrorism controls on specific ``parts,'' ``components,'' and
``accessories and attachments'' that are ``specially designed'' for a
commodity controlled by ECCN 0B614 and not specified elsewhere in the
CCL.
New ECCN 0D614: ``Software'' Related to Military Training ``Equipment''
Proposed ECCN 0D614 would impose national security, (NS Column 1),
regional stability (RS Column 1), and anti-terrorism (AT Column 1)
controls on ``software'' ``specially designed'' for the
``development,'' ``production,'' operation or maintenance of
commodities controlled by ECCNs 0A614 or 0B614 (except the .y
paragraphs of these ECCNs). ECCN 0D614.y would impose only anti-
terrorism controls on specific ``software'' that is ``specially
designed'' for the ``production,'' ``development,'' operation or
maintenance of commodities controlled by ECCNs 0A614.y or 0B614.y.
New ECCN 0E614: ``Technology'' (Related to ECCNs 0A014, 0B014, and
0D014)
Proposed ECCN 0E614 would impose national security (NS Column 1),
regional stability (RS Column 1), and anti-terrorism (AT Column 1)
controls on ``technology'' ``required'' for the ``development,''
``production,'' operation, installation, maintenance, repair, or
overhaul of commodities controlled by 0A614 or 0B614, or software
controlled by 0D614 (except the .y paragraphs of these ECCNs). ECCN
0E614.y would impose only anti-terrorism controls on specific
``technology'' that is ``required'' for the ``production,''
``development,'' operation, installation, maintenance, repair or
overhaul of commodities controlled by ECCNs 0A614.y or 0B614.y or
software controlled by ECCN 0D614.y.
Inclusion of ``.y.99'' Paragraphs in 600 Series ECCNs
Proposed new ECCNs 0A614, 0B614, 0D614 and 0E614 also would contain
a paragraph ``.y.99'' that would control any item that meets all of the
following criteria: (i) The item is not listed on the CCL; (ii) the
item was previously determined to be subject to the EAR in an
applicable commodity jurisdiction determination issued by the U.S.
Department of State; and (iii) the item would otherwise be controlled
under one of these 0x614 ECCNs because, for example, the item was
``specially designed'' for a military use.
Revisions to Sec. 742.6 of the EAR
To implement the regional stability controls that apply to the four
new ``600 series'' ECCNs noted above, this proposed rule would revise
Sec. 742.6(a)(1) of the EAR to apply the RS Column 1 licensing policy
to items classified
[[Page 35312]]
under ECCNs 0A614, 0B614, 0D614 and 0E614 (except the .y paragraphs).
Proposed New ECCNs and License Exception STA
The July 15 proposed rule, as modified by the November 7 proposed
rule, would preclude use of License Exception STA for end-items in 600
series ECCNs unless eligibility for such use was applied for and
approved by BIS. This proposed rule would exempt end items classified
under ECCN 0A614 (military training ``equipment'') and classified under
ECCN 0B614 (test, inspection and production ``equipment'' for military
training ``equipment'') from that requirement. BIS notes this proposed
policy by including in the STA paragraphs of these two ECCNs a
statement that reads: ``Paragraph (c)(1) of License Exception STA
(Sec. 740.20(c)(1)) may be used for items in 0A614 without the need
for a determination described in Sec. 740.20(g).'' This provision
would prevail over the elements of the July 15 proposed rule, as
modified by the November 7 proposed rule, that indicated that ``600
series'' ``end items'' may not be exported, reexported or transferred
pursuant to License Exception STA unless those end items have been
identified by BIS in writing or published as an eligible item for
License Exception STA in response to a License Exception STA
eligibility request in accordance with Sec. 740.20(g) of the EAR.
Request for Comments
All comments must be in writing and submitted via one or more of
the methods listed under the ADDRESSES caption to this notice. All
comments (including any personal identifiable information) will be
available for public inspection and copying. Those wishing to comment
anonymously may do so by submitting their comment via regulations.gov
and leaving the fields for identifying information blank.
Relationship to the July 15 Proposed Rule and the November 7 Proposed
Rule
As referenced above, the purpose of the July 15 proposed rule was
to set up the framework to support the transfer of items from the USML
to the CCL. To facilitate that goal, the July 15 proposed rule
contained definitions and concepts that were meant to be applied across
categories. However, as BIS undertakes rulemakings to move specific
categories of items from the USML to the CCL, there may be unforeseen
issues or complications that may require BIS to reexamine those
definitions and concepts. The comment period for the July 15 proposed
rule closed on September 13, 2011. In the November 7 proposed rule, BIS
proposed several changes to those definitions and concepts. The comment
period for the November 7 proposed rule closed on December 22, 2011.
To the extent that this rule's proposals affect any provision in
either of those proposed rules or any provision in either of those
proposed rules affect this proposed rule, BIS will consider comments on
those provisions so long as they are within the context of the changes
proposed in this rule.
BIS believes that the following aspects of the July 15 proposed
rule and the November 7 proposed rule are among those that could affect
this proposed rule:
De minimis provisions in Sec. 734.4;
Restrictions on use of license exceptions in Sec. Sec.
740.2, 740.10, 740.11, and 740.20;
Change to national security licensing policy in Sec.
742.4;
Licensing policy in Sec. 742.4(b)(1)(ii);
Addition of 600 series items to Supplement No. 2 to Part
744--List of Items Subject to the Military End-Use Requirement of Sec.
744.21;
Addition of U.S. arms embargo policy regarding 600 series
items set forth in Sec. 742.4(b)(1)(ii) (national security) of the
July 15 proposed rule to Sec. 742.6(b)(1) (regional stability) of the
November 7 proposed rule; and
Definitions of terms in Sec. 772.1.
Effects of This Proposed Rule
De minimis
The July 15 proposed rule would impose certain unique de minimis
requirements on items controlled under the new 600 series ECCNs.
Section 734.3 of the EAR provides, inter alia, that under certain
conditions, items made outside the United States that incorporate items
subject to the EAR are not subject to the EAR if they do not exceed a
de minimis percentage of controlled U.S.-origin content. Depending on
the destination, the de minimis percentage can be either 10 percent or
25 percent. The military training ``equipment'' and the test,
inspection and production ``equipment'' for military training
``equipment'' that would be subject to the EAR as a result of this
proposed rule would become eligible for de minimis treatment.
Use of License Exceptions
Military training ``equipment'' and test, inspection, and
production ``equipment'' therefor currently on the USML that would be
classified under ECCNs 0A614 and 0B614 would become eligible for
several license exceptions, including STA, which would be available for
exports to certain government agencies of NATO and other multi-regime
close allies. The exchange of information and statements required under
STA is substantially less burdensome than are the license application
requirements currently required under the ITAR, as discussed in more
detail in the ``Regulatory Requirements'' section of this proposed
rule. None of the military training ``equipment'' or test, inspection
and production ``equipment'' therefor that would be controlled by ECCNs
0A614 or 0B614 would be subject to the provision in the July 15
proposed rule that proposes to preclude the use of License Exception
STA for ``600 series'' end items unless approval for such use is sought
from and granted by BIS. The items covered by this rule also would be
eligible for the following license exceptions: LVS (limited value
shipments), up to $1500; TMP (temporary exports); and RPL (servicing
and parts replacement).
Alignment With the Wassenaar Arrangement Munitions List
The Administration has stated since the beginning of the Export
Control Reform Initiative that the reforms will be consistent with U.S.
obligations to the multilateral export control regimes. Accordingly,
the Administration will, in this and subsequent proposed rules,
exercise its national discretion to implement, clarify, and, to the
extent feasible, align its controls with those of the regimes. This
proposed rule would align controls on the items that it adds to the CCL
by placing them in new 600 series ECCNs ending in ``14'' to parallel
Category ML14 on the Wassenaar Arrangement Munitions List (``
`Specialised equipment for military training' or for simulating
military scenarios, simulators specially designed for training in the
use of any firearm or weapon specified by ML.1 or ML.2, and specially
designed components and accessories therefor''). Items in proposed ECCN
0A614 are covered by WAML Category ML 14.
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 12,
2011, 76 FR 50661 (August 16, 2011), has continued the Export
Administration Regulations in effect under the International Emergency
Economic Powers Act. BIS continues to carry out the provisions of the
Export Administration Act, as appropriate and to the extent permitted
[[Page 35313]]
by law, pursuant to Executive Order 13222.
Rulemaking Requirements
1. Executive Orders 13563 and 12866 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distribute impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. This rule has been designated a ``significant regulatory
action,'' although not economically significant, under section 3(f) of
Executive Order 12866. Accordingly, the rule has been reviewed by the
Office of Management and Budget (OMB).
2. Notwithstanding any other provision of law, no person is
required to respond to, nor is 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 OMB
control number. This proposed rule would affect two approved
collections: Simplified Network Application Processing System (control
number 0694-0088), which includes, among other things, license
applications, and License Exceptions and Exclusions (0694-0137).
As stated in the proposed rule published at 76 FR 41958 (July 15,
2011), BIS believes that the combined effect of all rules to be
published adding items to the EAR that would be removed from the ITAR
as part of the administration's Export Control Reform Initiative would
increase the number of license applications to be submitted by
approximately 16,000 annually, resulting in an increase in burden hours
of 5,067 (16,000 transactions at 17 minutes each) under control number
0694-0088.
Military training ``equipment,'' related test, inspection, and
production ``equipment,'' ``parts,'' ``components,'' ``accessories and
attachments,'' ``software'' and ``technology'' formerly on the USML
would become eligible for License Exception STA under this rule. As
stated in the July 15 proposed rule, BIS believes that the increased
use of License Exception STA resulting from combined effect of all
rules to be published adding items to the EAR that would be removed
from the ITAR as part of the administration's Export Control Reform
Initiative would increase the burden associated with control number
0694-0137 by about 23,858 hours (20,450 transactions @ 1 hour and 10
minutes each).
BIS expects that this increase in burden would be more than offset
by a reduction in burden hours associated with approved collections
related to the ITAR. The largest impact of the proposed rule would
likely apply to exporters of replacement parts for military training
``equipment'' that has been approved under the ITAR for export to
allies and regime partners. Because, with few exceptions, the ITAR
allows exemptions from license requirements only for exports to Canada,
most exports of such parts, even when destined to NATO and other close
allies, require specific State Department authorization. Under the EAR,
as proposed in this notice, such parts as well as non-combat military
trainers, certain radar trainers and training ``equipment'' for ground
military operations along with related test, inspection, and production
``equipment'' would become eligible for export to NATO and other multi-
regime allies under License Exception STA. Use of License Exception STA
imposes a paperwork and compliance burden because, for example,
exporters must furnish information about the item being exported to the
consignee and obtain from the consignee an acknowledgement and
commitment to comply with the EAR. However, the Administration
understands that complying with the burdens of STA is likely less
burdensome than applying for licenses. For example, under License
Exception STA, a single consignee statement can apply to an unlimited
number of products, need not have an expiration date, and need not be
submitted to the government in advance for approval. Suppliers with
regular customers can tailor a single statement and assurance to match
their business relationship rather than applying repeatedly for
licenses with every purchase order to supply reliable customers in
countries that are close allies or members of export control regimes or
both.
Even in situations in which a license would be required under the
EAR, the burden is likely to be reduced compared to the license
requirement of the ITAR. In particular, license applications for
exports of technology controlled by ECCN 0E614 are likely to be less
complex and burdensome than the authorizations required to export ITAR-
controlled technology, i.e., Manufacturing License Agreements and
Technical Assistance Agreements.
3. This rule does not contain policies with Federalism implications
as that term is defined under E.O. 13132.
4. The Regulatory Flexibility Act (RFA), as amended by the Small
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C.
601 et seq., generally requires an agency to prepare an initial
regulatory flexibility analysis (IRFA) of any rule subject to the
notice and comment rulemaking requirements under the Administrative
Procedure Act (5 U.S.C. 553) or any other statute. However, under
section 605(b) of the RFA, however, if the head of an agency certifies
that a rule will not have a significant impact on a substantial number
of small entities, the RFA does not require the agency to prepare a
regulatory flexibility analysis. Pursuant to section 605(b), the Chief
Counsel for Regulation, Department of Commerce, submitted a memorandum
to the Chief Counsel for Advocacy, Small Business Administration,
certifying that this proposed rule, if promulgated, will not have a
significant impact on a substantial number of small entities.
Number of Small Entities
The Bureau of Industry and Security (BIS) does not collect data on
the size of entities that apply for and are issued export licenses.
Although BIS is unable to estimate the exact number of small entities
that would be affected by this rule, it acknowledges that this rule
would affect some unknown number.
Economic Impact
This proposed rule is part of the Administration's Export Control
Reform Initiative. Under that initiative, the United States Munitions
List (22 CFR part 121) (USML) would be revised to be a ``positive''
list, i.e., a list that does not use generic, catch-all controls on any
part, component, accessory, attachment, or end item that was in any way
specifically modified for a defense article, regardless of the
article's military or intelligence significance or non-military
applications. At the same time, articles that are determined to no
longer warrant control on the USML would become controlled on the
Commerce Control List (CCL). Such items, along with certain military
items that currently are on the CCL, will be identified in specific
Export Control Classification Numbers (ECCNs) known as the ``600
series'' ECCNs. In addition, some items currently on the Commerce
Control List would move from existing ECCNs to the new 600 series
ECCNs. In practice, the greatest impact of this rule on small entities
would likely be reduced administrative costs and
[[Page 35314]]
reduced delay for exports of items that are now on the USML but would
become subject to the EAR. This rule addresses Category IX articles,
which are: military training ``equipment,'' ``parts,'' ``components,''
and ``accessories and attachments'' therefor; test, inspection, and
production ``equipment'' for military training ``equipment'' and
``parts,'' ``components'' and ``accessories and attachments'' therefor;
and related ``software'' and ``technology.'' Training ``equipment''
related to certain inherently military functions would remain on the
USML. However, parts, components, and ``accessories and attachments''
for that ``equipment'' would be included on the CCL unless expressly
controlled on the USML. Such parts and components are more likely to be
produced by small businesses than are complete items of training
equipment, and would in many cases become subject to the EAR. Moreover,
officials of the Department of State have informed BIS that license
applications for such parts and components are a high percentage of the
license applications for USML articles reviewed by that department.
Changing the jurisdictional status of Category IX items would
reduce the burden on small entities (and other entities as well)
through:
--Elimination of some license requirements,
--Greater availability of license exceptions,
--Simpler license application procedures, and
--Reduced (or eliminated) registration fees.
In addition, parts and components controlled under the ITAR remain
under ITAR control when incorporated into foreign-made items,
regardless of the significance or insignificance of the item,
discouraging foreign buyers from incorporating such U.S. content. The
availability of de minimis treatment under the EAR may reduce the
incentive for foreign manufacturers to avoid purchasing U.S.-origin
parts and components.
Many exports and reexports of the Category IX articles that would
be placed on the CCL, as proposed in this rule, particularly parts and
components, would become eligible for license exceptions that apply to
shipments to U.S. Government agencies, shipments valued at less than
$1,500, parts and components being exported for use as replacement
parts, temporary exports, and License Exception Strategic Trade
Authorization (STA), reducing the number of licenses that exporters of
these items would need. License exceptions under the EAR would allow
suppliers to send routine replacement parts and low level parts to NATO
and other close allies and export control regime partners for use by
those governments and for use by contractors building equipment for
those governments or for the U.S. Government without having to obtain
export licenses. Under License Exception STA, the exporter would need
to furnish information about the item being exported to the consignee
and obtain a statement from the consignee that, among other things,
would commit the consignee to comply with the EAR and other applicable
U.S. laws. Because such statements and obligations can apply to an
unlimited number of transactions and have no expiration date, they
would impose a net reduction in burden on transactions that the
government routinely approves through the license application process
that the License Exception STA statements would replace.
Even for exports and reexports in which a license would be
required, the process would be simpler and less costly under the EAR.
When a USML Category IX article is moved to the CCL, the number of
destinations for which a license is required would remain unchanged.
However, the burden on the license applicant would decrease because the
licensing procedure for CCL items is simpler and more flexible than the
license procedure for USML articles.
Under the USML licensing procedure, an applicant must include a
purchase order or contract with its application. There is no such
requirement under the CCL licensing procedure. This difference gives
the CCL applicant at least two advantages. First, the applicant has a
way of determining whether the U.S. government will authorize the
transaction before it enters into potentially lengthy, complex and
expensive sales presentations or contract negotiations. Under the USML
procedure, the applicant will need to caveat all sales presentations
with a reference to the need for government approval and is more likely
to have to engage in substantial effort and expense only to find that
the government will reject the application. Second, a CCL license
applicant need not limit its application to the quantity or value of
one purchase order or contract. It may apply for a license to cover all
of its expected exports or reexports to a particular consignee over the
life of a license (normally two years, but may be longer if
circumstances warrant a longer period), reducing the total number of
licenses for which the applicant must apply.
In addition, many applicants exporting or reexporting items that
this rule would transfer from the USML to the CCL would realize cost
savings through the elimination of some or all registration fees
currently assessed under the ITAR's licensing procedure. Currently,
ITAR applicants must pay to use the ITAR licensing procedure even if
they never actually are authorized to export. Registration fees for
manufacturers and exporters of articles on the USML start at $2,500 per
year, increase to $2,750 for organizations applying for one to ten
licenses per year and further increases to $2,750 plus $250 per license
application (subject to a maximum of three percent of total application
value) for those who need to apply for more than ten licenses per year.
There are no registration or application processing fees for
applications to export items listed on the CCL. Once the Category IX
items that are the subject to this rulemaking are removed from the USML
and added to the CCL, entities currently applying for licenses from the
Department of State would find their registration fees reduced if the
number of ITAR licenses those entities need declines. If an entity's
entire product line is moved to the CCL, then its ITAR registration and
registration fee requirement would be eliminated.
De minimis treatment under the EAR would become available for all
items that this rule proposes to transfer from the USML to the CCL.
Items subject to the ITAR remain subject to the ITAR when they are
incorporated abroad into a foreign-made product regardless of the
percentage of U.S. content in that foreign made product. Foreign-made
products that incorporate items that this rule would move to the CCL
would be subject to the EAR only if their total controlled U.S.-origin
content exceeded 10 percent. Because including small amounts of U.S.-
origin content would not subject foreign-made products to the EAR,
foreign manufacturers would have less incentive to avoid such U.S.-
origin parts and components, a development that potentially would mean
greater sales for U.S. suppliers, including small entities.
BIS is still considering comments made in response to the July 15
rule pertaining to these proposed new de minimis levels and, as noted
above, will consider de minimis-related comments to this proposed rule
provided they are in the context of this proposed rule. However, BIS
believes that increased burden imposed by those actions will be offset
substantially by the reduction in
[[Page 35315]]
burden attributable to the moving of items from the USML to CCL and the
compliance benefits associated with the consolidation of all WAML items
subject to the EAR in one series of ECCNs.
Conclusion
BIS is unable to determine the precise number of small entities
that would be affected by this rule. Based on the facts and conclusions
set forth above, BIS believes that any burdens imposed by this rule
would be offset by a reduction in the number of items that would
require a license, increased opportunities for use of license
exceptions for exports to certain countries, simpler export license
applications, reduced or eliminated registration fees and application
of a de minimis threshold for foreign-made items incorporating U.S.-
origin parts and components, which would reduce the incentive for
foreign buyers to design out or avoid U.S.-origin content. For these
reasons, the Chief Counsel for Regulation of the Department of Commerce
certified to the Chief Counsel for Advocacy of the Small Business
Administration that this rule, if adopted in final form, would not have
a significant economic impact on a substantial number of small
entities. Accordingly, no IRFA is required, and none has been prepared.
List of Subjects
15 CFR Part 742
Exports, Terrorism.
15 CFR Part 774
Exports, Reporting and recordkeeping requirements.
For the reasons stated in the preamble, parts 742 and 774 of the
Export Administration Regulations (15 CFR parts 730-774) are proposed
to be amended as follows:
PART 742--[AMENDED]
1. The authority citation for 15 CFR 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; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; 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 12, 2011, 76 FR 50661 (August 16, 2011); Notice of
November 9, 2011, 76 FR 70319 (November 10, 2011).
2. Section 742.6 is amended by revising paragraph (a)(1) to read as
follows:
Sec. 742.6 Regional stability.
(a) License requirements. The following controls are maintained in
support of U.S. foreign policy to maintain regional stability:
(1) RS Column 1 License Requirements in General. As indicated in
the CCL and in RS column 1 of the Commerce Country Chart (see
Supplement No. 1 to part 738 of the EAR), a license is required to all
destinations, except Canada, for items described on the CCL under ECCNs
0A606 (except 0A606.b and .y); 0A614 (except 0A614.y); 0A617 (except
0A617.y); 0B606 (except 0B606.y); 0B614 (except 0B614.y); 0B617 (except
0B617.y); 0C606 (except 0C606.y); 0C617; 0D606 (except 0D606.y); 0D614
(except 0D614.y); 0D617 (except 0D617.y); 0E606 (except 0E606.y); 0E614
(except 0E614.y); 0E617 (except 0E617.y); 1A607 (except 1A607.y);
1B607; (except 1B607.y); 1B608 (except 1B608.y); 1C607; 1C608; 1D607
(except 1D607.y); 1D608(except 1D608.y); 1E607 (except 1E607.y); 1E608
(except 1E608.y); 3A982; 3D982; 3E982; 6A002.a.1, a.2, a.3, .c, or .e;
6A003.b.3, and b.4.a; 6A008.j.1; 6A998.b; 6D001 (only ``software'' for
the ``development'' or ``production'' of items in 6A002.a.1, a.2, a.3,
.c; 6A003.b.3 and .b.4; or 6A008.j.1); 6D002 (only ``software'' for the
``use'' of items in 6A002.a.1, a.2, a.3, .c; 6A003.b.3 and .b.4; or
6A008.j.1); 6D003.c, 6D991 (only ``software'' for the ``development,''
``production,'' or ``use'' of equipment controlled by 6A002.e or
6A998.b); 6E001 (only technology'' for ``development'' of items in
6A002.a.1, a.2, a.3 (except 6A002.a.3.d.2.a and 6A002.a.3.e for lead
selenide focal plane arrays), and .c or .e, 6A003.b.3 and b.4, or
6A008.j.1); 6E002 (only ``technology'' for ``production'' of items in
6A002.a.1, a.2, a.3, .c, or .e, 6A003.b.3 or b.4, or 6A008.j.1); 6E991
(only ``technology'' for the ``development,'' ``production,'' or
``use'' of equipment controlled by 6A998.b); 6D994; 7A994 (only QRS11-
00100-100/101 and QRS11-0050-443/569 Micromachined Angular Rate
Sensors); 7D001 (only ``software'' for ``development'' or
``production'' of items in 7A001, 7A002, or 7A003); 7E001 (only
``technology'' for the ``development'' of inertial navigation systems,
inertial equipment, and specially designed components therefor for
civil aircraft); 7E002 (only ``technology'' for the ``production'' of
inertial navigation systems, inertial equipment, and specially designed
components therefor for civil aircraft); 7E101 (only ``technology'' for
the ``use'' of inertial navigation systems, inertial equipment, and
specially designed components for civil aircraft); 8A609 (except
8A609.y); 8A620 (except 8A620.y); 8B609 (except 8B609.y); 8B620 (except
8B620.y); 8C609 (except 8C609.y); 8D609 (except software for the
``development,'' ``production,'' operation, or maintenance of
commodities controlled by 8A609.y, 8B609.y, or 8C609.y); 8D620 (except
software for the ``development,'' ``production,'' operation, or
maintenance of commodities controlled by 8A620.y or 8B620.y); 8E609
(except ``technology'' for the ``development,'' ``production,''
operation, installation, maintenance, repair, or overhaul of
commodities controlled by 8A609.y, 8B609.y, or 8C609.y); 8E620 (except
``technology'' for the ``development,'' ``production,'' operation,
installation, maintenance, repair, overhaul, or refurbishment of
commodities controlled by 8A620.y or 8B620.y); 9A610 (except 9A610.y);
9A619 (except 9A619.y); 9B610 (except 9B610.y); 9B619 (except 9B619.y);
9C610 (except 9C610.y); 9C619 (except 9C619.y); 9D610 (except software
for the ``development,'' ``production,'' operation, installation,
maintenance, repair, or overhaul of commodities controlled by 9A610.y,
9B610.y, or 9C610.y); 9D619 (except software for the ``development,''
``production,'' operation, or maintenance of commodities controlled by
9A619.y, 9B619.y, or 9C619.y); 9E610 (except ``technology'' for the
``development,'' ``production,'' operation, installation, maintenance,
repair, or overhaul of commodities controlled by ECCN 9A610.y, 9B610.y,
or 9C610.y); and 9E619 (except ``technology'' for the ``development,''
``production'' operation, installation, maintenance, repair, or
overhaul of commodities controlled by ECCN 9A619.y, 9B619.y, or
9C619.y).
* * * * *
PART 774--[AMENDED]
3. The authority citation for 15 CFR 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); 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; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22
U.S.C. 7201 et seq.; 22 U.S.C. 7210; 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 12, 2011, 76 FR 50661 (August 16, 2011).
[[Page 35316]]
4. In Supplement No. 1 to Part 774, the Commerce Control List, add,
between the entries for Export Control Classification Numbers 0A018 and
0A918, a new entry for Export Control Classification Number 0A614 to
read as follows:
Supplement No. 1 to Part 774--The Commerce Control List
* * * * *
0A614 Military Training ``Equipment,'' as follows (see List of items
controlled):
License Requirements
Reason for Control: NS, RS, AT
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry except 0A614.y. NS Column 1
------------------------------------------------------------------------
RS applies to entire entry except 0A614.y. RS Column 1
------------------------------------------------------------------------
AT applies to entire entry................ AT Column 1
------------------------------------------------------------------------
License Exceptions
LVS: $1500
GBS: N/A
CIV: N/A
STA: Paragraph (c)(1) of License Exception STA (Sec. 740.20(c)(1))
may be used for items in 0A614 without the need for a determination
described in Sec. 740.20(g). Paragraph (c)(2) of License Exception
STA (Sec. 740.20(c)(2)) of the EAR may not be used for any item in
0A614.
List of Items Controlled
Unit: ``End items'' in number; ``parts,'' ``components,'' and
``accessories and attachments'' in $ value
Related Controls: (1) Defense articles that are enumerated in USML
Category IX and ``technical data'' (including ``software'') directly
related thereto are subject to the ITAR. (2) See ECCN 0A919 for
foreign-made ``military commodities'' that incorporate more than 10%
U.S.-origin ``600 series'' items. (3) ``Parts,'' ``components,'' and
``accessories and attachments'' that are common to a simulator
controlled by ECCN 0A614.a and to a simulated system or an end item
that is controlled on the USML or elsewhere on the CCL are
controlled under the same USML Category or ECCN as the ``parts,''
``components,'' and ``accessories and attachments'' of the simulated
system or end item.
Related Definitions: N/A
Items:
a. ``Equipment'' ``specially designed'' for military training
that is not enumerated in USML Category IX.
Note: This entry includes operational flight trainers, radar
target trainers, flight simulators for aircraft classified under
ECCN 9A610.a, human-rated centrifuges, radar trainers for radars
classified under ECCN 3A611, instrument flight trainers for military
aircraft, navigation trainers for military items, target equipment,
armament trainers, military pilotless aircraft trainers, mobile
training units and training ``equipment'' for ground military
operations.
Note: This entry does not apply to ``equipment'' ``specially
designed'' for training in the use of hunting or sporting weapons.
b. through w. [Reserved]
x. ``Parts,'' ``components,'' and ``accessories and
attachments'' that are ``specially designed'' for a commodity
controlled by this entry or an article enumerated in USML Category
IX, and not specified elsewhere in the CCL or the USML.
Note: Forgings, castings, and other unfinished products, such
as extrusions and machined bodies, that have reached a stage in
manufacturing where they are clearly identifiable by material
composition, geometry, or function as commodities controlled by ECCN
0A614.x are controlled by ECCN 0A614.x.
y. Specific ``parts,'' ``components,'' ``accessories and
attachments'' ``specially designed'' for a commodity subject to
control in this ECCN and not elsewhere specified in the CCL, as
follows:
y.1 to y.98 [Reserved]
y.99. Commodities not identified on the CCL that (i) have been
determined, in an applicable commodity jurisdiction determination
issued by the U.S. Department of State, to be subject to the EAR and
(ii) would otherwise be controlled elsewhere in ECCN 0A614.
5. In Supplement No. 1 to Part 774, the Commerce Control List, add,
between the entries for Export Control Classification Numbers 0B006 and
0B968, a new entry for Export Control Classification Number 0B614 to
read as follows:
0B614 Test, inspection, and production ``equipment'' for military
training ``equipment'' and ``specially designed'' ``parts,''
``components,'' and ``accessories and attachments'' therefor, as
follows (see list of items controlled).
License Requirements
Reason for Control: NS, RS, AT
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry except 0B614.y. NS Column 1
------------------------------------------------------------------------
RS applies to entire entry except 0B614.y. RS Column 1
------------------------------------------------------------------------
AT applies to entire entry................ AT Column 1
------------------------------------------------------------------------
License Exceptions
LVS: $1500
GBS: N/A
CIV: N/A
STA: Paragraph (c)(1) of License Exception STA (Sec. 740.20(c)(1))
may be used for items in 0B614 without the need for a determination
described in Sec. 740.20(g). Paragraph (c)(2) of License Exception
STA (Sec. 740.20(c)(2)) of the EAR may not be used for any item in
0B614.
List of Items Controlled
Unit: N/A
Related Controls:
Related Definitions: N/A
Items:
a. Test, inspection, and other production ``equipment''
``specially designed'' for the ``production'' of commodities
controlled by ECCN 0A614 or articles enumerated in USML Category IX.
b. through .w [Reserved]
x. ``Parts,'' ``components,'' and ``accessories and
attachments'' that are ``specially designed'' for a commodity
controlled by ECCN 0B614.
Note 1: Forgings, castings, and other unfinished products, such
as extrusions and machined bodies, that have reached a stage in
manufacturing where they are clearly identifiable by material
composition, geometry, or function as commodities controlled by ECCN
0B614.x are controlled by ECCN 0B614.x.
y. Specific ``parts,'' ``components,'' and ``accessories and
attachments'' ``specially designed'' for a commodity subject to
control in this ECCN and not elsewhere specified in the CCL, as
follows:
y.1 to y.98 [Reserved]
y.99. Commodities not identified elsewhere on the CCL that (i)
have been determined, in an applicable commodity jurisdiction
determination issued by the U.S. Department of State, to be subject
to the EAR and (ii) would otherwise be controlled elsewhere in this
entry.
6. In Supplement No. 1 to Part 774, the Commerce Control List, add,
between the entries for Export Control Classification Number 0C201 and
before the header that reads ``D. Software'' a new entry for Export
Control Classification Number 0D614 to read as follows:
0D614 ``Software'' related to military training ``equipment,'' as
follows (See list of items controlled).
License Requirements
Reason for Control: NS, RS, AT
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry except 0D614.y. NS Column 1
------------------------------------------------------------------------
RS applies to entire entry except 0D614.y. RS Column 1
------------------------------------------------------------------------
AT applies to entire entry................ AT Column 1
------------------------------------------------------------------------
License Exceptions
CIV: N/A
TSR: N/A
[[Page 35317]]
STA: Paragraph (c)(2) of License Exception STA (Sec.
740.20(c)(2))of the EAR may not be used for any ``software'' in
0D614.
List of Items Controlled
Unit: $ value
Related Controls: ``Software'' directly related to articles
enumerated in USML Category IX is subject to the control of USML
paragraph IX(e). See ECCN 0A919 for foreign made ``military
commodities'' that incorporate more than 10% U.S.-origin ``600
series'' items.
Related Definitions: N/A
Items:
a. ``Software'' (other than ``software'' controlled in paragraph
.y of this entry) ``specially designed'' for the ``development,''
``production,'' operation or maintenance of commodities controlled
by ECCNs 0A614 (except 0A614.y) or 0B614 (except 0B614.y).
b. to x. [RESERVED]
y. Specific ``software'' ``specially designed'' for the
``production,'' ``development,'' or operation or maintenance of
commodities controlled by ECCNs 0A614 or 0B614, as follows:
y.1. Specific ``software'' ``specially designed'' for the
``production,'' ``development,'' operation or maintenance of
commodities controlled by ECCNs 0A614.y or 0B614.y.
y.2 through y.98 [RESERVED]
y.99. ``Software'' that would otherwise be controlled elsewhere
in this entry but that (i) has been determined to be subject to the
EAR in a commodity jurisdiction determination issued by the U.S.
Department of State and (ii) is not otherwise identified elsewhere
on the CCL.
7. In Supplement No. 1 to Part 774, the Commerce Control List, add,
between the entries for Export Control Classification Numbers 0E018 and
0E918, a new entry for Export Control Classification Number 0E614 to
read as follows:
0E614 ``Technology,'' as follows (See list of items controlled).
License Requirements
Reason for Control: NS, RS, AT
------------------------------------------------------------------------
Control(s) Country chart
------------------------------------------------------------------------
NS applies to entire entry except 0E614.y. NS Column 1
------------------------------------------------------------------------
RS applies to entire entry except 0E614.y. RS Column 1
------------------------------------------------------------------------
AT applies to entire entry................ AT Column 1
------------------------------------------------------------------------
License Exceptions
CIV: N/A
TSR: N/A
STA: Paragraph (c)(2) of License Exception STA (Sec. 740.20(c)(2))
of the EAR may not be used for any technology in 0E614.
List of Items Controlled
Unit: $ value
Related Controls: ``Technical data'' directly related to articles
enumerated in USML Category IX is subject to the control of USML
paragraph IX(e).
Related Definitions: N/A
Items:
a. ``Technology'' (other than ``technology'' controlled by
paragraph .y of this entry) ``required'' for the ``development,''
``production,'' operation, installation, maintenance, repair
overhaul, or refurbishing of commodities or ``software'' controlled
by ECCNs 0A614 (except 0A614.y), 0B614 (except 0B614.y), or 0D614
(except 0D614.y).
b. through x. [RESERVED]
y. Specific ``technology'' ``required'' for the ``production,''
``development,'' operation, installation, maintenance, repair, or
overhaul of commodities controlled by ECCNs 0A614.y or 0B614.y, or
``software'' controlled by ECCN 0D614.y, as follows:
y.1. Specific ``technology'' ``required'' for the
``production,'' ``development,'' operation, installation,
maintenance, repair or overhaul of commodities controlled by ECCNs
0A614.y or 0B614.y or ``software'' controlled by ECCN 0D614.y.
y.2. through y.98 [RESERVED]
y.99. ``Technology'' that would otherwise be controlled
elsewhere in this entry but that (i) has been determined to be
subject to the EAR in a commodity jurisdiction determination issued
by the U.S. Department of State and (ii) is not otherwise identified
elsewhere on the CCL.
Dated: June 6, 2012.
Kevin J. Wolf,
Assistant Secretary of Commerce for Export Administration.
[FR Doc. 2012-14444 Filed 6-12-12; 8:45 am]
BILLING CODE 3510-33-P
