Revisions to the Export Administration Regulations (EAR): Control of Military Electronic Equipment and Other Items the President Determines No Longer Warrant Control Under the United States Munitions List (USML), 37551-37575 [2014-14683]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security

[Federal Register Volume 79, Number 126 (Tuesday, July 1, 2014)]
[Rules and Regulations]
[Pages 37551-37575]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-14683]



Federal Register / Vol. 79, No. 126 / Tuesday, July 1, 2014 / Rules 
and Regulations

[[Page 37551]]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Part 774

[Docket No. 120330233-4307-03]
RIN 0694-AF64


Revisions to the Export Administration Regulations (EAR): Control 
of Military Electronic Equipment and Other 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: Final rule.

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SUMMARY: This final rule adds to the Commerce Control List military 
electronics, technology and software for certain wing folding systems, 
certain superconducting and cryogenic equipment, and related items the 
President determines no longer warrant control under the United States 
Munitions List (USML). This also amends ECCNs 7A006 and 7A106 to apply 
the ``missile technology'' reason for control only to items in those 
ECCNs on the Missile Technology Control Regime (MTCR) Annex. This rule 
is being published simultaneously with a Department of State rule that 
amends the list of articles controlled by USML Category XI to control 
only those articles the President has determined warrant control in 
that category of the USML. Both rules are part of the President's 
Export Control Reform Initiative. The revisions in this rule also are 
part of the Department of Commerce's retrospective plan under EO 13563 
completed in August 2011.

DATES: Effective dates--This rule is effective December 30, 2014, 
except for the addition of software and technology for certain wing 
folding systems to ECCNs 0D521 and 0E521 via Supplement No. 5 to part 
774 of the EAR (amendatory instruction number 24), which is effective 
July 1, 2014.

ADDRESSES: The Department of Commerce's full retrospective regulatory 
review plan can be accessed at: https://open.commerce.gov/news/2011/08/23/commerce-plan-retrospective-analysis-existing-rules.

FOR FURTHER INFORMATION CONTACT: Brian Baker, Director, Electronics and 
Materials Division, Office of National Security and Technology Transfer 
Controls, (202) 482-5534, brian.baker@bis.doc.gov.

SUPPLEMENTARY INFORMATION: 

Background

The Export Control Reform Initiative

    This final rule is part of the Administration's Export Control 
Reform Initiative, the objective of which is to protect and enhance 
U.S. national security interests. The Initiative began in August 2009 
when President Obama directed the Administration to conduct a broad-
based review of the U.S. export control system to identify additional 
ways to enhance national security. In April 2010, then-Secretary of 
Defense Robert M. Gates, describing the initial results of that effort, 
explained that fundamental reform of the U.S. export control system is 
necessary to enhance national security. Once the Department of State's 
International Traffic in Arms Regulations (ITAR) and its U.S. Munitions 
List (USML) are amended so that they control only the items that 
provide the United States with a critical military or intelligence 
advantage or otherwise warrant such controls, and the Export 
Administration Regulations (EAR) are amended to control military items 
that do not warrant USML controls, the U.S. export control system will 
enhance national security by (i) improving interoperability of U.S. 
military forces with allied countries, (ii) strengthening the U.S. 
industrial base by, among other things, reducing incentives for foreign 
manufacturers to design out and avoid U.S.-origin content and services, 
and (iii) allowing export control officials to focus government 
resources on transactions that pose greater concern.
    The changes described in this rule and the State Department's rule 
amending USML Category XI are based on a review of that category by the 
Defense Department, which worked with the Departments of State and 
Commerce in preparing the amendments. The review was focused on 
identifying the types of articles that are now controlled by the USML 
that either (i) are inherently military and otherwise warrant control 
on the USML, or (ii) if of a type common to civil applications, possess 
parameters or characteristics that provide a critical military or 
intelligence advantage to the United States and that are almost 
exclusively available from the United States. If an article was found 
to satisfy either or both of those criteria, the article remains on the 
USML. If an article was found not to satisfy either criterion, but is 
nonetheless a type of article that is ``specially designed'' for 
military applications, then, generally, it is identified in one of the 
new ``600 series'' ECCNs created by this rule.
    Section 38(f) of the Arms Export Control Act (AECA) obligates the 
President to 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 the 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. Sec.  2778(f)(1). The 
Department of State has delivered the required report to the Congress.

The Proposed Rules

    This final rule is the successor to two proposed rules, both 
entitled Revisions to the Export Administration Regulations (EAR): 
Control of Military Electronic Equipment and Related Items the 
President Determines No Longer Warrant Control Under the United States 
Munitions List (USML). The first proposed rule (herein the November 28 
(military electronics) rule) published in the Federal Register on 
November 28, 2012 (77 FR 70945). The second proposed rule (herein the 
July 25 (military electronics) rule) was based on a review of the 
public comments to the first proposed rule and published on July 25, 
2013 (78 FR 45026). Simultaneously, the Department of State published 
two proposed rules on November 28, 2012 (77 FR 70945) (herein the State 
November 28 (military electronics) rule) and on July 25, 2013 (78 FR 
45018) (herein the State July 25 (military electronics) rule). This 
final rule is based on an evaluation of those comments by the 
Departments of Defense, State and Commerce with additional input from 
other Departments on various portions of the rules.
    In addition, this rule adds provisions controlling development 
software and technology for certain wing folding systems to the EAR. 
These provisions are related to prior proposed rules of the Departments 
of State and Commerce: ``Amendments to the International Traffic in 
Arms Regulations: Revisions of U.S. Munitions List Category VIII,'' 
November 7, 2011 (76 FR 68694) (herein the State November 7 (aircraft) 
rule) and ``Revisions to the Export Administration Regulations (EAR): 
Control of Aircraft and Related Items the President Determines No 
Longer Warrant Control Under the United States Munitions List (USML),'' 
November 7, 2011 (76 FR 68675) (herein the November 7 (aircraft) rule). 
Upon review of the current state of development of such software and 
technology, the Department of Commerce, with the concurrence of the

[[Page 37552]]

Departments of Defense and State, concluded that they should be 
controlled for export under the EAR rather than the ITAR. This is 
because these items do not provide a critical military or intelligence 
advantage to the United States or otherwise warrant ITAR controls but 
they should be controlled because they provide at least a significant 
military or intelligence advantage to the United States or foreign 
policy reasons.

Overview of This Rule

    This rule adds to the EAR's CCL certain military electronic 
equipment and related articles now controlled by the ITAR's USML 
Category XI and certain cryogenic and superconductive equipment that 
are now controlled by ``catch all'' provisions of the ITAR's USML 
Categories VI, VII, VIII, and XV. This rule also corrects two ECCNs in 
CCL Category 7 to apply the ``missile technology'' reason for control 
only to items that are on the Missile Technology Control Regime (MTCR) 
Annex. Finally, this rule controls under ECCNs 0D521 and 0E521 software 
and technology for the ``development'' of certain wing folding systems 
for aircraft powered by gas turbine engines while the United States 
seeks to have such software and technology added to the Dual-Use List 
of the Wassenaar Arrangement on Export Controls for Conventional Arms 
and Dual-Use Goods and Technologies (Wassenaar Arrangement).
    This rule also adopts the changes to the structure of the ECCNs and 
the elimination of the ``Units'' paragraphs from the ECCNs as set forth 
in the rule entitled ``Revisions to the Export Administration 
Regulations (EAR) To Make the Commerce Control List (CCL) Clearer'' 
published in the Federal Register on October 4, 2013 (78 FR 61874).

Alignment With the Wassenaar Arrangement Munitions List

    The Administration has stated since the beginning of the Export 
Control Reform Initiative that the reforms are consistent with the 
obligations of the United States to the multilateral export control 
regimes. Accordingly, the Administration, in this and subsequent rules, 
exercises its national discretion to implement, clarify, and, to the 
extent feasible, align its control text with those of the regimes. This 
rule maintains the alignment that exists between the USML, in which 
military electronics are controlled under Category XI, and the 
Wassenaar Arrangement Munitions List (herein WAML), in which military 
electronic equipment is controlled under WAML category ML11, and by 
ECCN 3A611 by this rule. Similarly, 3B611 aligns with WAML category 
ML18, which, inter alia, controls ``specially designed or modified 
`production' equipment for the `production' of products specified by 
the Munitions List, and ``specially designed'' components therefor.''
    This rule aligns cryogenic and superconducting equipment currently 
controlled in Categories VI, VII, VIII, and XV of the USML with WAML 
category ML20 by controlling them under ECCN 9A620. As with other ``600 
series'' ECCNs, this rule follows the existing CCL numbering pattern 
for test, inspection and production equipment (3B611 and 9B620), 
software (3D611 and 9D620) and technology (3E611 and 9E620), rather 
than strictly following the Wassenaar Arrangement Munitions List 
pattern of placing production equipment, software and technology for 
munitions list items in WAML categories ML18, ML21 and ML22, 
respectively. BIS believes that including the ECCNs for test, 
inspection and production equipment, software, and technology in the 
same category as the items to which they relate results in an easier to 
understand CCL than would separate categories.

Public Comments on the July 25 (Military Electronics) Rule and BIS 
Responses

Comments Concerning Manner of Listing Items Controlled Only for 
Antiterrorism and China Military End-Use Reasons

    Previous rules creating new ``600 series'' ECCNs have included 
paragraphs in some of those ECCNs, designated as .y paragraphs, which 
list items that require a license only if going to countries that have 
been designated as State Sponsors of Terrorism or to the People's 
Republic of China. In the preamble to the July 25 (military 
electronics) rule, BIS announced that it was considering four options 
to address items of limited military significance for which a license 
is required only if destined for a terrorist supporting destination or 
the People's Republic of China. Those options are: (1) Creating 
separate ECCN-specific .y paragraphs; (2) creating a single list of 
``600 series'' items subject only to antiterrorism and China military 
end-use license requirements; (3) establishing a classification request 
procedure whereby a ``600 series'' item could be designated as subject 
to only antiterrorism and China military end-use license requirements, 
but eliminating the .y listings from the regulations; or (4) removing 
all .y lists completely. BIS invited comments on these four options.

Comment 1

    Comments were divided between options 1 and 2--the options that 
result in more complex, detailed, and tailored ECCNs. No commenter 
supported options 3 or 4--the options that would have resulted in 
significantly shorter and simpler ECCNs. One commenter stated of the 
four listed options, it favored number 2, but also proposed combining 
options 1 and 2 to form a fifth option. Under that fifth option, BIS 
would compile a single .y list composed of basic hardware that is 
common to many ECCNs and also would list .y items that are specific to 
particular ECCNs in .y paragraphs within those ECCNs.

Response 1

    BIS has decided to accept the commenters' requests for a more 
complex, tailored regulatory structure by creating a type of a single 
.y list so that less significant controls are imposed on the less 
significant items listed. In addition, BIS believes that most of the 
items that would be appropriate for .y treatment are electronic in 
nature. Therefore, rather than create a new ECCN to cover such items, 
this final rule revises the .y paragraph in ECCN 3A611 to include 
parts, components, accessories and attachments that are eligible for .y 
treatment regardless of the ECCN of the ``600 series'' item that they 
are used in or with. Thus, BIS has revised the heading of paragraph .y 
to apply to ``Specific ``parts,'' ``components,'' ``accessories'' and 
``attachments'' ``specially designed'' for a commodity subject to 
control in a ``600 series'' ECCN and not elsewhere specified in any 
``600 series'' ECCN . . . .'' This revision combines the benefits of 
options 1 and 2. BIS did not adopt option 3 because it would create a 
time consuming process and, although it would tailor .y classification 
decisions closely to the characteristics of individual items, it would 
not provide public notice of its results. BIS did not adopt option 4 
because doing so would impose license requirements that apply to more 
destinations and licensing policies that are more restrictive than are 
warranted for the items that have been selected for .y treatment.

Comments Proposing Additional Items .y Paragraphs

Comment 2

    Commenters suggested over 100 items that they believed should be 
included in .y paragraphs (or excluded from the

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definition of ``specially designed''). The commenters favored, in 
descending order of preference: exclusion from the definition of 
``specially designed,'' then inclusion on a universal .y list, and 
finally inclusion in ECCN 3A611.y. One commenter included in its list 
some items that were already in ECCN 3A611.y or were already excluded 
from the definition of specially designed.

Response 2

    Technical experts from the Department of Defense reviewed the items 
suggested by the commenters. On the basis of that review, this final 
rule includes 37 commodities in ECCN 3A611.y, but also gives that 
paragraph the status of a universal .y list--i.e., the 3A611.y 
commodities are those ``specially designed'' for any ``600 series'' 
item or defense article on the USML, not just those ``specially 
designed'' for 3A611 items or USML Category XI defense articles. Export 
license requirements allow the United States Government to see the 
pattern of usage of military equipment. The knowledge of usage patterns 
of even parts and components that are relatively unsophisticated or 
that do not directly contribute to the military functions of a ``600 
series'' commodity can provide valuable insights into military 
capabilities and activities of other nations. Therefore, the .y 
classification must be limited to those parts, components, accessories 
and attachments for which knowledge of usage patterns are unlikely to 
provide such insights. Based on the technical experts' review, this 
final rule removes 11 paragraphs that were included in the July 25 
(military electronics) rule because the commodities they listed were 
redundant or problematic from a nomenclature standpoint. Those 11 
commodities are: (1) Electric couplings; (2) cathode ray tubes; (3) 
rotron fans; (4) electric fuses other than those ``specially designed'' 
for explosive detonation; (5) grid vacuum tubes; (6) audio headphones, 
earphones, handsets, and headsets; (7) intercom systems; (8) 
loudspeakers; (9) electric switches other than RF, pressure, diplexer, 
duplexer, circulator or isolator switches; (10) vacuum tubes other than 
TWTs, klystron tubes, or tubes ``specially designed'' for articles 
enumerated in USML Category XII; and (11) waveguides. This final rule 
adds 22 paragraphs for a total of 35.

Comment 3

    In commenting on the items to be included in the .y paragraphs, one 
commenter suggested that certain items should be excluded from the 
specially designed definition based on paragraph (b)(2) of that 
definition. Those items are not expressly mentioned in paragraph (b)(2) 
but the commenter implied that they are included within the scope of 
the items that are expressly mentioned. Spacers, fasteners and grommets 
are expressly mentioned in paragraph (b)(2). This commenter listed 
circuit board and enclosure hardware and standoffs as examples of 
spacers. It listed ``rods, thumbscrews, standoffs, and turnbuckles, 
etc.'' as examples of fasteners. It listed grommet strips as grommets.

Response 3

    The July 25 (military electronics) rule did not propose changes to 
nor did it request comments on paragraph (b)(2) of ``specially 
designed.'' As with all provisions of the EAR, BIS is reviewing ways to 
make them current and directly relevant to the objectives of the EAR. 
Thus, BIS will consider at another time whether paragraph (b)(2) 
warrants revision. BIS reminds the commenter that Sec.  748.3(e) 
invites the submissions of classification requests for consideration by 
the Departments of Defense, State, and Commerce regarding whether, 
under paragraph (b)(1) of ``specially designed,'' extraordinarily 
insignificant items not listed in paragraph (b)(2) warrant treatment as 
``specially designed'' items.

Comments Concerning Whether To Move Certain ``600 Series'' Electronic 
Items From CCL Category 3 to CCL Categories Containing Similar Non-
``600 Series'' Items

    The July 25 (military electronics) rule included radars, acoustic 
systems, computers, telecommunications equipment, and navigation and 
avionics equipment ``specially designed'' for a military use in a 
single CCL category (Category 3--Electronics). Doing so is consistent 
with the USML, which also covers such commodities in a single category 
(Category XI--Military Electronics). However, the CCL divides those 
same types of items not ``specially designed'' for a military use into 
four categories. Computers are in Category 4--Computers. 
Telecommunication equipment is in Category 5, Part 1--
Telecommunications. Radars and acoustic systems are in Category 6--
Sensors and Lasers. Navigation and avionics equipment are in Category 
7--Navigation and Avionics. The July 25 (military electronics) rule 
proposed to place in Categories 4, 5, 6 and 7 ECCNs that contain no 
substantive text but merely advised readers that proposed ECCN 3A611 in 
Category 3 controlled radars, acoustic systems, computers and 
telecommunications equipment ``specially designed'' for a military use. 
The rule invited comment on which approach to take, 1) the July 25 
(military electronics) rule approach of placing the items in a single 
category with cross references or 2) placing each type of item in the 
category that includes similar items that already are on the CCL.

Comment 4

    Comments were divided on this topic. Two reasons were provided in 
support of placing these ``600 series'' items in the categories that 
control similar items currently on the CCL. First, having similar items 
(e.g., military radar and civil radar) in different categories is 
likely to lead to confusion and misclassification or even incorrect 
ECCNs on licenses. Second, moving military computers, 
telecommunications devices and radars to separate categories that are 
aligned with the current CCL is likely to be necessary as the 
government moves towards its stated goal of a single control list for 
both military and commercial items.
    Four reasons were provided in support of placing these ``600 
series'' items in a single CCL category. (1) Such placement would 
better align such items with the order of review (Supplement No. 4 to 
Part 774 of the EAR). (2) The Department of State Export Control Reform 
rules tend to classify components according to the end item for which 
they are designed. (3) The items in CCL Category 3 in the proposed rule 
often are installed into other items. (4) The existing CCL approach, 
which follows the pattern of the Wassenaar Arrangement Dual Use List 
(although the lack of a definition for ``avionics'' sometimes causes 
uncertainty as to whether a component in CCL Category 7 or Category 9).
    One commenter also noted that BIS does not appear to have 
contemplated creating specialized electronics ECCNs related to end 
items (e.g., 0Y611 for vehicle electronics or 8Y611 for surface vessel 
and submersible electronics).

Response 4

    On balance, BIS has concluded that the approach proposed in the 
July 25 (military electronics) rule is the better of the two. The 
alternative would have resulted in the creation of 20 new ECCNs with no 
change in the scope of controls. Accordingly, this final rule makes no 
changes to the July 25 (military electronics) rule on this point. As 
noted above, commenters made valid points for both approaches. However, 
BIS has concluded that attempting to spread the contents of proposed 
ECCN

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3A611 over five CCL categories (one each for radar, acoustic sensors, 
telecommunications equipment, computers and electronic parts and 
component that are common to multiple categories) would unnecessarily 
complicate and lengthen the EAR.
    As noticed by one commenter, BIS did not propose creating new ECCNs 
in categories 0 and 8 for electronic items that are specially designed 
for ground vehicles, surface vessels and submersibles. BIS believes 
that such ECCNs are not necessary because as noted in the related 
controls paragraph of ECCN 3A611 in the July 25 (military electronics) 
rule and in this final rule ``Electronic items `specially designed' for 
military application that are not controlled in any USML category but 
are within the scope of another `600 series' ECCN are controlled by 
that `600 series' ECCN.'' This sentence would resolve any ambiguity 
concerning whether a particular device is to be treated as a specially 
designed part of a land vehicle, surface vessel or submersible vessel 
or as a military electronic item controlled under 3A611.
    Three of the four types of items about which BIS sought comments on 
possible movement from CCL Category 3 to CCL categories containing 
similar non-``600 series'' are computers, telecommunication, and radar. 
Each of these three was expressly mentioned in ECCN 3A611 in the July 
25 (military electronics) rule and each is expressly mentioned in a 
category other than Category 3 on the CCL. The fourth, avionics, was 
added to the proposal in response to a comment on the November 28 
(military electronics) rule. Land vehicles, surface vessels and 
submersible vessels are not expressly mentioned in ECCN 3A611 and were 
not suggested by any commenters. Therefore, less likelihood of 
confusion existed in the case of these items than in the case of the 
items about which BIS sought comments on this topic.

Comments Concerning Defining Elements Used in ``600 Series'' Software 
and Technology ECCNs

Comment 5

    Two commenters objected to the use of the word ``or'' in software 
and technology ``600 series'' ECCNs, which apply, respectively, to 
software for the ``development,'' ``production,'' operation or 
maintenance of specified items and to technology for the 
``development,'' ``production,'' operation, installation, maintenance, 
repair, overhaul or refurbishing of specified items. The commenters 
noted that BIS interprets the elements of ``use'' software and 
technology elsewhere in the EAR as operation, installation, 
maintenance, repair, overhaul and refurbishing.'' The commenters stated 
that use of the disjunctive in the ``600 series'' ECCNs would force 
academic institutions to screen foreign students and visitors before 
even showing them how to operate ``600 series'' or other ECCN 
equipment. The commenters expressed the opinion that such screening 
would require expensive, complex security programs with no clear 
national security benefit.
    One commenter noted that in response to similar comments in other 
rules creating ``600 series'' ECCNs, BIS stated that``[n]early all the 
software and technology in existing and proposed ``600 series'' ECCNs 
comes from USML categories. One goal of the U.S. government in the 
Export Control Reform Initiative is not to decontrol completely and 
inadvertently items the President determines no longer warrant control 
on the USML.'' The commenter noted that ``BIS believes the `or' 
formulation achieves this objective.'' The commenter found this reason 
``unpersuasive'' because ``[i]t essentially states that even though the 
items are being transferred to the CCL they still will be subject to 
USML type controls. In our opinion, this contradicts the objectives of 
the Export Control Reform Initiative to create `bright lines' between 
the two control lists. We worry that by creating inconsistencies within 
the EAR this will lead to confusion and misunderstanding. Moreover, 
this outcome appears inconsistent with the goal of the Export Control 
Reform Initiative to reduce unnecessary and burdensome controls and to 
allow the government and regulated community to focus resources on 
transactions that pose the greatest concern.''

Response 5

    BIS continues to believe in identifying in the new software and 
technology controls the types of software and technology that warrant 
control. The controls are not increasing or decreasing the scope of 
what is controlled under the ITAR's definition of ``technical data.'' 
(See 22 CFR Sec.  120.10). Thus, BIS is not increasing the regulatory 
compliance burden with respect to such technology. To the contrary, it 
is reducing the regulatory compliance burden with respect to such 
software and technology to the extent their release would be within the 
scope of one of the license exceptions (such as License Exception STA) 
that is available in the EAR but not in the ITAR.
    The commenters' proposal would result in a significant decontrol of 
technology that is now ITAR controlled, which is not the objective of 
the reform effort or this final rule. BIS recognizes that it is 
treating software and technology for ``600 series'' items more strictly 
than software and technology for similar dual-use items. However, this 
stricter treatment is warranted because of the military nature of the 
``600 series'' items to which the software and technology relate.
    BIS also recognizes that its decision requires academic 
institutions to be aware of the nationalities of students and 
researchers for whom they provide instruction on how to operate these 
items that are ``specially designed'' for military applications and, in 
some instances, obtain authorization before providing such instruction 
even if the recipient of the instruction uses the item for a civil or 
commercial purpose. Again, BIS believes that this requirement is 
justified by the military nature of the items enumerated in the ``600 
series'' ECCNs. Moreover, these requirements are no stricter or more 
burdensome than the requirements currently imposed for these items by 
the ITAR.

Recommendations for Removal of Certain EAR Provisions as Erroneous or 
Obsolete

Comment 6

    One commenter recommended removing text describing certain helix 
tubes, microwave solid state amplifiers and traveling wave tube 
amplifiers from the related control notes ECCNs 3A001, 3D001, and 3E001 
that direct the reader to regulations of the Department of State, 
Directorate of Defense Trade Controls (DDTC). This same commenter 
recommended removing similar references to technology for certain 
electron vacuum tubes from the related control notes of ECCN 3E003. The 
commenter recommended these changes because under proposed rules 
published by the Department of State these items would not be 
``positively controlled under Category XI or XV of the USML.''

Response 6

    BIS agrees with the commenter's assessment and concludes that 
changes made to USML Category XV by the rule entitled ``Amendments to 
the International Traffic in Arms Regulations: Revision of U.S. 
Munitions List Category XV (79 FR 27180, May 13, 2014) and by the 
revisions to USML Category XI being published simultaneously with this 
rule make obsolete all of the references in the ``Related Controls'' 
paragraphs of ECCNs 3A001 and 3D001, all of the references

[[Page 37555]]

in the ``Related Controls'' paragraph of ECCN 3E001 except those to 
ECCN 3E101 and 3E201 and all of the references in the ``Related 
Controls'' paragraph of 3E003 except that to 3E001. Accordingly, this 
final rule revises ``Related Controls'' paragraphs in ECCNs 3A001, 
3D001, 3E001 and 3E003 to remove the obsolete references. This rule 
also adds general references to USML Categories XI and XV and ECCNs 
9A515 and 3A611 to the related controls paragraph of ECCN 3A001.

Comments Concerning ECCN 3A611, in General

Comment 7

    One commenter recommended adding the phrase ``not enumerated in 
either a USML category or another ECCN'' to the heading of ECCN 3A611 
and removing similar text from paragraph .a of that ECCN. The commenter 
said that the statement applies to the entire ECCN not just paragraph 
.a.

Response 7

    BIS is making no changes to the rule in response to this comment. 
As noted in Supplement No. 4 to Part 774 of the EAR--the Commerce 
Control List Order of Review, the USML takes precedence over the CCL. 
That precedence applies to all ECCNs, and BIS believes that it is not 
necessary to reiterate this concept in the heading of the ``600 
series'' ECCNs.

Comment 8

    One commenter recommended that in the ``Reasons for Control,'' the 
phrase ``NS applies to entire entry except 3A611.y'' be revised to read 
``NS applies to entire entry except 3x611.y or other portions of 3x611 
not controlled by Wassenaar Munitions List or Wassenaar Dual-Use List'' 
to comply with Section 5(c)(6) of the Export Administration Act, which 
prescribes certain limits on unilateral national security export 
controls, and that such unilateral controls should be identified on the 
CCL. This commenter also recommended that the missile technology (MT) 
reason for control be added to ECCN 3A611 with the phrase ``MT applies 
to portion of 3x611 controlled by MTCR--MT Column 1'' because items 
covered on the Missile Technology Control Regime (MTCR) Annex (the 
basis for imposing the MT reason for control in the EAR) should be 
identified. The commenter indicated that his reasoning for this 
proposal was that it might not be possible to identify all items in 
3A611 that are covered on the MTCR Annex at this time because 
continuing transfers ``make this a moving target,'' suggesting that 
once the Export Control Reform Initiative was complete a comprehensive 
review would be in order.

Response 8

    BIS is making no changes to the rule in response to this comment. 
BIS believes that all of the items covered by ECCN 3A611 (including 
those listed in 3A611.y) and all of the items covered by ECCNs 3B611, 
3D611 and 3E611 are within the scope of the Wassenaar Arrangement 
Munitions List. BIS also believes that none of the items in ECCN 3A611 
as published in this final rule are listed on the MTCR Annex.

Comment 9

    One commenter recommended removing related controls (1), (2), (4) 
and (5), which identify items that are subject to the ITAR, from the 
``Related Controls'' paragraph of ECCN 3A611 because the ``ITAR, rather 
than the EAR, should define what is controlled on the ITAR.'' The 
commenter stated specifically that part (1) is redundant, especially if 
the commenter's recommendation to put ``not enumerated in . . . a USML 
category'' in the heading of 3A611 is accepted. The commenter 
recommended that if ``Part (2)'' is retained, it should be revised to 
change ``defense articles'' to ``a characteristic in the text of a U.S. 
Munitions List description of a defense article.'' Without that change, 
the commenter asserted the specific application could concern a trivial 
functionality having no connection to the reason for the control of the 
defense article. Parts (4) and (5), if retained, should similarly be 
revised to change ``is `specially designed' for defense articles'' to 
``furthers a characteristic in the text of a U.S. Munitions List 
description of a defense article.''

Response 9

    BIS is making no changes to the rule based on this comment. One 
purpose of related control notes is to alert readers to regulations 
published by other government agencies that control items related to 
those controlled on the CCL (see 15 CFR 738.2(d)(2)(iii)(B)). The four 
paragraphs that the commenter recommended be removed provide such 
alerts with respect to commodities controlled by the ITAR that are 
related to items controlled in ECCN 3A611. The EAR cannot define what 
is controlled on the ITAR, and BIS does not intend that they do so. 
That which is subject to the jurisdiction of the ITAR is that which is 
described in the ITAR's U.S. Munitions List. See 22 CFR 120.6 and 
121.1. However, BIS believes that such cross references help readers 
who need to understand the relationship between the ITAR and the EAR--
two separate bodies of rules that regulate exports and reexports--and 
encourage readers to read the relevant USML categories when determining 
the jurisdictional and classification status of items.

Comment 10

    One commenter recommended either deleting ECCN 3A611.a (and 3A611.x 
Note 1, 4A611, 5A611, 6A611, 7A611) or changing the phrase `` 
`specially designed' for military use'' to either ``having a 
predominant military use'' or ``having a critical military or 
intelligence advantage.'' This commenter stated that as defined in the 
EAR, the term ``specially designed'' does not make sense when applied 
to end items. Paragraph (a)(1) of the ``specially designed'' definition 
applies to end items. Under that paragraph, an item is ``specially 
designed'' if it is peculiarly responsible for achieving or exceeding 
controlled performance levels, characteristics, or functions. The 
commenter stated that ``military use'' is not a performance level or a 
characteristic. The function of ``military use'' is achieved by any 
military use. Therefore, under this definition, there is no difference 
between ``specially designed for military use'' and just ``military 
use.'' The commenter stated that removal of 3A611.a would be consistent 
with the goals of the Export Control Reform Initiative to avoid 
controls based simply on military use. Additionally, the commenter 
asserted that ```Military use' with no further modification is far 
broader than existing [Sec.  ] 120.3(a) [of the ITAR].''

Response 10

    This final rule replaces the term ``military use'' in ECCN 3A611 
with the phrase ``military application'' to clarify that mere use by a 
military organization does not bring something within the ambit of ECCN 
3A611. One of the goals of the current phase of export control reform 
is to control on the CCL items the President determines no longer 
warrant control on the USML without inadvertently decontrolling items 
currently on the USML. To do so, some standards must be expressed in 
broad terms. BIS believes that the phrase ```specially designed' for a 
military application'' provides adequate specificity and clarity to 
distinguish items that are developed in ways that enable them to 
perform a military role or function from items that, although used by 
the military, are indistinguishable from items that are widely used in 
civil activities. Thus, contrary to the assertion of the commenter, 
paragraph (a)(1) of the

[[Page 37556]]

definition is relevant to such controls because ``military 
application'' is the referenced ``characteristic.'' If someone does 
something to an item during its development to achieve the 
characteristic of being for a military application, then the item would 
be within the scope of paragraph (a)(1). The term ``characteristic'' 
was never limited to technical control thresholds, such as heat, speed, 
size, power, or strength.

Comment 11

    One commenter recommended changing the phrase ``nor controlled in 
another ``600 series'' ECCN'' to ``nor controlled in another ECCN'' in 
ECCNs 3A611.a, 3A611.a Note 1, 3A611.x Note 1, 3B611.a, 3B611.x, and 
7A611. This same commenter recommended inserting ``or another ECCN'' 
following the phrase ``not enumerated in any USML category'' in ECCNs 
4A611 and 5A611. The commenter asserted that many existing ECCNs, after 
years of intense negotiations, have technical descriptions designed to 
be more precise than ``military use'' or ``specially designed.'' The 
commenter argued that this ``progress toward these major objectives of 
the ECR would be undone in these areas unless this recommendation is 
accepted.''

Response 11

    The changes proposed by the commenter are inconsistent with the 
order of review in Supplement No. 4 to Part 774 of the EAR. That order 
specifies that ``600 series'' ECCNs take precedence over non-600 series 
ECCNs. Therefore, this final rule does not adopt the changes proposed 
in this comment. This means that if an item were ``specially designed'' 
for a military application or a military item not described on the 
USML, then it would be within the scope of a 600 series ECCN, even if 
the same type of item were described in an ECCN elsewhere on the CCL. 
This is not a change from the long-standing rule under the ITAR that if 
a part or component were specifically designed or modified for a 
defense article, then the part or component would be ITAR controlled, 
even if the CCL described the same item or type of item.

Comments Concerning ECCN 3A611.a--Electronic ``Equipment,'' ``End 
Items'' and ``Systems'' ``Specially Designed'' for Military End Use 
That Are Not Enumerated in Any USML Category or Controlled by Another 
``600 Series'' ECCN

Comment 12

    One commenter stated that electronically steerable airborne weather 
radar should not be controlled by USML Category XI because its use is 
for civil aviation. The State July 25 (military electronics) rule would 
have included all ``[r]adar incorporating pulsed operation with 
electronics steering of transmit beam in elevation and azimuth'' in 
USML Category XI. This commenter proposed eight characteristics that it 
believed should exclude such radars from the USML. The commenter 
believes that if electronically steerable radar that it manufactures 
were not controlled in Category XI of the USML, it would be subject to 
the EAR and controlled in ECCN 6A998.a. The commenter pointed out the 
necessity of rapidly shipping replacement radar units or parts to 
replace or repair broken radar units in aircraft that may be on the 
ground in any of a large number of countries. The commenter noted that 
if a radar unit were classified in a ``600 series'' ECCN, the ability 
to use License Exception STA would be sharply curtailed. The commenter 
stated that a radar designed for a civil aircraft application should be 
eligible for License Exceptions STA and RPL.

Response 12

    BIS is making no changes to the rule based on this comment.
    A similar comment on the State July 25 (military electronics) rule 
was submitted to that department. After considering that comment, the 
Department of State has added a note to Category XI(a)(3)(xii) 
excluding radars, not otherwise controlled in the ITAR, operating with 
a peak transmit power less than or equal to 250 watts, and employing a 
design determined to be subject to the EAR via a commodity jurisdiction 
determination. Please see the Department of State's companion to this 
rule for its full response to the comment.
    If an airborne radar unit has been determined to be subject to the 
EAR pursuant to such a commodity jurisdiction, it would be subject to 
the EAR. If the radar were given a CCL classification as part of that 
commodity jurisdiction process, the ECCN so given would govern. If the 
classification were not given as part of the commodity jurisdiction 
process, the order of review in Supplement No. 4 to Part 774 of the EAR 
would govern its treatment under the EAR. Following the order of 
review, one would proceed to the ``600 series.'' If the radar were a 
``specially designed'' part for an aircraft controlled under ECCN 
9A610--Military aircraft and related items, paragraph .x of that ECCN 
would control the radar. If it were not so ``specially designed,'' one 
would check 3A611.a (electronics ``specially designed'' for a military 
application) and 3A611.x ``specially designed'' for a commodity 
controlled in USML Category XI. If the radar were not so specially 
designed, one would look outside the ``600 series'' to CCL Category 6. 
BIS notes that most radars used in civil aircraft are controlled by 
ECCN 6A998.a.

Comment 13

    One commenter recommended that proposed ECCN 3A611.a be revised to 
clarify that it does not control routine telecommunications or computer 
networks used by a military end-user for administrative functions, 
where such networks utilize only equipment and software that are not 
enumerated in a USML Category or controlled by a ``600 series'' ECCN 
and where such networks that do not contain, and are not designed or 
configured to contain, types of security as described in USML Category 
XIII(b).
    This commenter noted that military organizations use communications 
networks for command and control purposes and for routine 
administrative matters or, in some instances, to facilitate 
communications home by troops stationed abroad. The commenter stated 
that even though operated by the military, communication networks for 
administrative purposes typically have no higher level of security than 
similar networks used by a business or even a residential end-user--
whereas command and control networks typically use special encryption 
devices controlled under USML Category XIII(b) to maintain a higher 
level of security. This commenter suggested that, based on the 
definition of ``system'' in the EAR, and the phrase ``specially 
designed for military use,'' as it appears in ECCN 3A611.a and in the 
note immediately following that paragraph, could be read to include 
administrative communications networks that do not contain, and were 
not designed or configured, to contain USML Category XIII(b) levels of 
security that would be considered ``specially designed'' for military 
use. The commenter recommended adding a note stating:


[[Page 37557]]


    ECCN 3A611.a does not include a routine telecommunications or 
computer network that utilizes only equipment and software that are 
not enumerated in a USML Category or controlled by a ``600 series'' 
ECCN where the network does not contain, and is not designed or 
configured to contain, types of security as described in USML 
Category XIII(b).

Response 13

    BIS does not intend that ECCN 3A611.a apply to communication 
networks that, although owned, leased, or operated by military 
organizations, have no security or technical features other than those 
found in ordinary commercial communications networks. However, BIS 
believes that the information security assurance systems described in 
USML Category XIII(b) are not the only features that distinguish a 
network that performs military functions from one that performs only 
routine administrative or civilian communications functions. To draw 
the proper distinction, this final rule replaces the term ``specially 
designed for military use'' in ECCN 3A611 with the phrase ``specially 
designed for military application.'' BIS believes that the latter 
phrase addresses the commenter's concerns by emphasizing that ECCN 
3A611.a does not apply to electronic ``equipment,'' ``end items'' and 
``systems'' merely because the military uses them. Rather, the 
commodity must be ``specially designed'' to perform a military function 
or activity. This change is consistent with the long-standing policy in 
the ITAR that the mere use of an item should not determine its 
jurisdictional or control status. See 22 CFR 120.3.

Comment 14

    One commenter recommended changing ``a'' to ``another'' in the 
phrase ``not enumerated in any USML category or controlled by a `600 
series' ECCN'' that appears in the note immediately following ECCN 
3A611.a.

Response 14

    BIS agrees that the recommended change more precisely states the 
scope of ECCN 3A611.a; therefore, this final rule adopts that change.

Comments Applicable to ECCN 3A611.c or .d.

Comment 15

    One commenter stated that the definition of output power is 
inconsistent among ECCNs that control microwave transistors. ECCN 3A001 
uses ``average output power;'' 3A982 uses both ``average output power'' 
and ``pulsed output power;'' and 3A611 uses ``saturated power.'' The 
commenter asserted that this variation will create confusion and 
inconsistent results.

Response 15

    After the comment period for the July 25 (military electronics) 
rule closed, changes to the Wassenaar Arrangement's Dual Use List, 
Category 3 were adopted at its December 2013 plenary meeting. Those 
changes included new criteria for paragraphs 3.A.1.b.2 (MMIC power 
amplifiers) and 3.A.1.b.3 (discrete microwave transistors). The changes 
eliminated the need for ECCN 3A982 by expanding the operating frequency 
ranges in paragraphs 3.A.1.b.2 and 3.A.1.b.3 to include the operating 
frequency ranges currently found in the ECCN 3A982. This change made 
the MMIC power amplifiers and discrete microwave transistors currently 
controlled under ECCN 3A982 eligible for inclusion in ECCN 3A001, which 
is based on Wassenaar Arrangement Dual Use List paragraph 3.A.1. The 
Wassenaar Arrangement Dual Use List changes also revised the criteria 
for inclusion of MMIC power amplifiers and discrete microwave 
transistors in 3.A.1.b.2 and 3.A.1.b.3. Those changes, which will 
eliminate inconsistencies in the definitions of output power, will be 
incorporated into ECCN 3A001.b.2 and .b.3 by the rule implementing the 
Wassenaar Arrangement 2013 plenary meeting decisions, which BIS expects 
will be published and become effective before this final rule becomes 
effective. This final rule will then build on the changes made by the 
Wassenaar 2013 plenary meeting rule by creating ECCN 3A611 and moving 
some MMIC power amplifiers and discrete microwave transistors from 
3A001.b.2 and .b.3 to 3A611.c and .d based on the values for power 
added efficiency, fractional bandwidth, or peak saturated power output 
(or some combination thereof).

Comment 16

    One commenter noted that the frequency range from 2.7 GHz-2.9 GHz 
is internationally recognized as a standard band for civilian air 
traffic control (ATC) systems. Regulating devices in this band has the 
effect of limiting U.S. participation in the global civil ATC market, 
and providing an unfair advantage to our worldwide competitors, as well 
as an incentive for our foreign competitors to invest in developing 
their own amplifier technology. This particular frequency band is 
predominantly used for civil ATC rather than military applications. In 
addition, the international ATC band is under consideration to be 
expanded upwards to 3.2 GHz, due to conflicts with civil communications 
in the lower end of the band.

Response 16

    BIS' implementation of the decisions of the Wassenaar Arrangement 
December 2013 plenary meeting, noted in Response 15, will, when 
published in the EAR revise ECCN 3A001.b.2 (MMIC power amplifiers) and 
b.3 (discrete microwave transistors) to encompass the frequency range 
noted in this comment. The additional technical parameters of power 
added efficiency, fractional bandwidth and peak saturated power output 
determine whether MMIC power amplifiers are controlled in ECCN 3A611.c. 
The additional technical parameters of power added efficiency and peak 
saturated power output determine whether discrete microwave transistors 
are controlled in ECCN 3A611.d. The EAR control over these devices are 
based on the multinational Wassenaar Arrangement, under which other 
member states should implement similar export controls, reducing any 
disadvantage faced by U.S. companies.

Comment 17

    Several commenters stated that the parameters in ECCN 3A611.c and 
.d would cover MMIC power amplifiers and discrete microwave transistors 
that have civil applications now, or that are likely to have important 
civil applications in the near future. The civil applications mentioned 
were Wi Fi, Wi Max, point-to-point radios for cellular backhaul, 
Commercial Ka-band used in commercial satellite based wireless internet 
ground stations and V-Band radios used in small commercial cellular 
networks. The specific points raised by these are as follows.
    The differences between devices that would be controlled by ECCN 
3A611.c or .d and those that are controlled by ECCN 3A001.b.2 or .b.3 
in many instances are only a matter of efficiency. Because increasing 
efficiency is driving development in both civil and military 
applications, higher efficiency is not a good criterion for 
distinguishing military from civil applications. Increasing efficiency, 
saturated power and bandwidth are common objectives in both military 
and civil applications. In commercial cellular base stations, high 
power efficient devices enable achieving necessary power levels without 
combining multiple lower power devices, thereby simplifying 
manufacturing, lowering costs and producing more efficient transmitter 
design. Increasing bandwidth is needed to handle greater data volume in 
commercial networks, and OEMs are requiring vendors of semiconductor

[[Page 37558]]

power devices to supply it for increased system capability and 
inventory management reasons. The performance levels in proposed ECCN 
3A611.c and .d do not lead to a valid conclusion that a device is 
inherently military or that it is unlikely to be used in a commercial 
application.
    The frequency range from 3.1-3.5 GHz is not restricted to military 
use. The International Telecommunication Union (ITU) designates this 
band for radio location, and the band is also in active use 
internationally as an additional civilian air traffic control (ATC) 
band. Today's transistors for air traffic control can exhibit 
efficiencies, which commonly exceed 60%. The commenter cited one 
example of a transistor that it stated achieved such efficiency 
exceeding 60%.
    One commenter stated that proposed ECCN 3A611.c.9, .c.10 and .c.11 
overlap with ECCN 3A001.b.2.e, .b.2.f and .b.2.g as set forth in the 
Wassenaar Arrangement implementation rule published in June 2013. The 
commenter noted that the three 3A611 paragraphs differ from the 
corresponding 3A001 paragraphs in that the former specify values for 
peak saturated output power whereas the latter specify values for 
average output power instead and only the former specify a value for 
power added efficiency. In addition, proposed 3A611.c.9 specifies a 
value of fractional bandwidth whereas 3A001.b.2.e does not. This 
commenter stated that, although its current products do not meet the 
threshold values for inclusion in 3A611, only a small amount of 
advancement would be needed for its products to do so. The commenter 
recommended the following changes to ECCN 3A611 to provide a reasonable 
allowance for improvements of commercial amplifiers. In paragraph .c.9, 
increase the peak saturated output power from 1 W to 3 W and the power 
added efficiency from 15% to 35%. In paragraph .c.10, increase the peak 
saturated output power form 31.62 mW to 100 mW and the power added 
efficiency from 25% to 35%. In paragraph .c.11, increase the peak 
saturated output power from 10 mW to 100 mW and the power added 
efficiency from 10% to 20%.
    One commenter reiterated its comment made in response to the 
November 28 (military electronics) rule that most gallium nitride 
(``GaN'') MMICs and discrete transistors currently available on the 
commercial market (and classified as ECCN 3A982 or 3A001 or designated 
EAR99) perform at levels that exceed even the revised proposed power 
added efficiency thresholds for ECCN 3A611. Accordingly, that metric, 
as currently proposed, still does not sufficiently focus the proposed 
regulation on high performance parts. Rather, most GaN MMICs and 
discrete transistors that presently are used in commercial 
telecommunications, backhaul, point-to-point and satellite applications 
would still meet the proposed thresholds under ECCN 3A611.
    The commenter reiterated its request for BIS to consider the power 
added efficiency thresholds set forth in its earlier comment, which it 
stated reflect the realities of the commercial market.
    One commenter recommended adding the phrase ``specially designed 
for military use'' to paragraphs .c and .d. The commenter stated that 
without this change, the paragraphs would cover MMICs and transistors 
that currently are classified in ECCNs 3A001 and 3A982 or those that 
currently designated EAR99. The order of review in Supplement No. 4 to 
Part 774 would cause ECCN 3A611 to prevail over the others. The 
commenter states that it is aware of a large number of circuits and 
transistors that have been classified under ECCN 3A001 that would be 
classified under 3A611.c or .d causing a large number of commercial 
products that have already been exported on the global market to be 
controlled by ECCN 3A611.

Response 18

    Experts in this area from the Departments of Defense, State, and 
Commerce reviewed the parameters proposed in ECCN 3A611.c (MMIC power 
amplifiers) and .d (discrete microwave transistors). The conclusion of 
that review was that, in most instances, the civil market for these 
devices at the parameters set forth in the proposed rule is minimal to 
non-existent. However, the reviewers concluded existing civil 
applications justify raising the power added efficiency in four 
instances. Accordingly, in this final rule, for the operating frequency 
range exceeding 2.7 GHz up to and including 2.9 GHz, the power added 
efficiency threshold has been raised to 55% for MMIC power amplifiers 
and to 60% for discrete microwave transistors from a proposed threshold 
of 50% for both. In the operating frequency range exceeding 2.9 GHz up 
to and including 3.2 GHz, the power added efficiency threshold has been 
raised to 55% for MMIC power amplifiers and to 60% for discrete 
microwave transistors from proposed thresholds of 45% for MMIC power 
amplifiers and 50% for discrete microwave transistors. Although more 
efficient and powerful MMIC power amplifiers and discrete microwave 
transistors may have widespread use in civil communications in the 
future, this rule is based on conditions as they exist at the time the 
rule is being written. Like any other aspect of the EAR, ECCN 3A611 
paragraphs .c and .d may be modified in the future if changes in civil 
and military applications and concerns warrant a change.
    As noted in Response 15, BIS intends to publish a rule implementing 
the decisions of the Wassenaar Arrangement December 2013 plenary 
meeting. That rule will revise ECCN 3A001.b.2 (MMIC power amplifiers) 
and b.3 (discrete microwave transistors) to encompass the frequency 
ranges used in ECCN 3A611.c and .d. The additional technical parameters 
of power added efficiency, fractional bandwidth and peak saturated 
power output will determine whether MMIC power amplifiers are 
controlled in ECCN 3A611.c. The additional technical parameters of 
power added efficiency and peak saturated power output determine 
whether discrete microwave transistors are controlled in ECCN 3A611.d. 
That rule also will remove ECCN 3A982. Thus, none of the MMIC power 
amplifiers or discrete microwave transistors that this final rule 
controls under ECCN 3A611 will be EAR99 at the time this final rule 
becomes effective, and therefore, no changes are being made to this 
rule. The EAR control over these devices is based on the multinational 
Wassenaar Arrangement, under which other member states should implement 
similar export controls, reducing any disadvantage faced by U.S.-based 
producers of these products.

Comment 19

    One commenter stated that the broadband proposed language for each 
frequency range, in the definition of the broadband behavior, regulates 
devices that operate far below that range and whose center frequency is 
below the performance limits of 3A001 and 3A982 (<2.7 GHz). For 
example, a MMIC with a 60% bandwidth which operates to 2.7 GHz would 
have a center frequency of ~2 GHz and a lower operating frequency of 
1.45 GHz.

Response 19

    The commenter's observation is correct. However, the ability of a 
MMIC power amplifier or discrete transistor to operate within a 
frequency band specified in, and meet the other control parameters of, 
a particular ECCN items paragraph give it the capabilities that warrant 
export license requirements, even if it can also operate outside that

[[Page 37559]]

frequency band or at lower performance parameters.

Comment 20

    One commenter stated that cycle times for commercial technology 
innovation can be shorter than that for military technology innovation. 
The development of state-of-the-art power amplifier devices for civil 
communications systems is driven by the ever increasing quantity of 
information transmitted over wireless networks. Higher quality network 
data links coupled with longer distances between cellular backhaul 
radios is yet an additional driver for increasing power requirements. 
Operation across broader frequency ranges coupled with OEMs' demand to 
stock fewer parts generates an industry demand for broadband power 
amplifiers.

Response 20

    BIS recognizes that performance of civil communications networks 
increases over time and that the increased performance requires more 
capable components. However, the technical personnel from the 
Departments of Defense, State, and Commerce attempted to set the 
parameters for the MMIC power amplifiers and discrete microwave 
transistors controlled by ECCN 3A611 to cover those with important 
military applications and few or no current civil applications. BIS is 
willing regularly to accept and consider information from interested 
persons about developments that would result in such items being used 
in non-military, commercial applications.

Comment 21

    One commenter recommended deleting ECCN 3A611.c and .d, stating 
that there is no publicly available evidence that either MMIC power 
amplifiers or discrete microwave transistors are now subject to DDTC 
licensing authority. The commenter recapitulated text currently in USML 
Category XI(a) and (b) and the ``Related Controls'' paragraph of ECCN 
3A001 in support of this contention. The commenter noted the 
description of both MMIC power amplifiers and discrete microwave 
transistors in ECCN 3A001 and noted that the preamble to the July 25 
(military electronics) rule referred to a United States proposal to 
modify language related to such amplifiers and transistors in the 
Wassenaar Arrangement Dual Use List. The commenter noted that ECCN 
3A001 license requirements applicable to MMIC power amplifiers and 
discrete microwave transistors apply to fewer destinations than would 
the requirements in proposed ECCN 3A611.c and .d. The commenter also 
noted a broader range of license exceptions available under ECCN 3A001 
than under 3A611, especially for MMIC power amplifiers. The commenter 
asserted that, to include these two items in 3A611, BIS would first 
need to transfer licensing jurisdiction to the Directorate of Defense 
Trade Controls.

Response 21

    BIS is making no changes to the rule in response to this comment. 
The parameters for MMIC power amplifiers and discrete microwave 
transistors included in 3A611 will differ from those in ECCN 3A001.b.2 
and .b.3 (as to be revised by the yet-to-be published final rule 
implementing the decisions of the Wassenaar Arrangement December 2013 
plenary meeting) based on their power added efficiency, peak saturated 
power output, fractional bandwidth or some combination of those 
parameters. BIS believes that the values selected in this final rule 
are adequate for readers to readily distinguish the MMIC power 
amplifiers and discrete transistors in ECCN 3A611.c and .d from those 
in ECCN 3A001.b.2 and .b.3. BIS is unaware of any commodity 
jurisdiction determinations issued by the State Department that the 
MMICs described in the new ``600 series'' controls were not previously 
subject to the jurisdiction of the ITAR.

Comment 22

    One commenter noted that ECCN 3A982 controls packaged transistors 
and packaged MMICs but does not control unpackaged devices or bare die. 
Therefore, unpackaged devices and bare die that meet the frequency and 
power parameters of ECCN 3A982 but not that of ECCN 3A001.b.2 or .b.3 
are designated EAR99. Thus, as proposed, 3A611 would impose controls on 
devices that are currently designated EAR99.

Response 22

    BIS notes that this comment was made prior to the Wassenaar 
Arrangement December 2013 plenary meeting that, inter alia, revised the 
Wassenaar Arrangement Dual Use List Category 3.A.1 to include coverage 
of MMIC power amplifiers and discrete microwave transistors with 
operating frequencies exceeding 2.7 GHz. When published, the rule 
implementing that change on the CCL will provide the same frequency 
thresholds for ECCN 3A001.b.2 and .b.3. It will also remove ECCN 3A982 
from the CCL because the devices listed therein will then be within the 
scope of ECCN 3A001.b.2 and .b.3. Neither the Wassenaar Arrangement 
Dual Use List Category 3.A.1.b.2 and .3 nor ECCN 3A001.b.2 and .b.3 are 
currently limited to packaged devices. ECCN 3A611.c and .d are based on 
the parameters of Wassenaar Arrangement Dual Use List Category 
3.A.1.b.2 and .3 that BIS intends to add to ECCN 3A001.b.2 and .b.3 
with additional parameters of power added efficiency, peak saturated 
power output and fractional bandwidth to differentiate the devices in 
ECCN 3A001.b.2 and .b.3 from those in ECCN 3A611.c and .d. Thus, 
although some of the devices covered in ECCN 3A611 may have been 
designated EAR99 at the time the comment was made, by the time this 
final rule is effective, they will be on the CCL in conformance with 
the United States' Wassenaar Arrangement commitment. Therefore BIS is 
making no changes to the rule in response to this comment.

Comments Concerning ECCN 3A611.e--Certain High Frequency Surface Wave 
Radar

Comment 23

    One commenter stated that the seemingly technical descriptions in 
proposed USML Category XI(a)(3)(i) and proposed ECCN 3A611.e cover 
virtually all airborne and maritime radar. A primary purpose of ship-
borne radar is traffic control. The commenter cited his experience as a 
U.S. Navy-trained radar officer from 1943 to 1946 in which he ``learned 
that the fundamental purpose of both military and civil radar is as 
described in [proposed USML Category] XI(a)(3)(i) and [proposed ECCN] 
3A611.e.''
    The commenter also stated that the Note to 3A611.e would 
unintentionally decontrol much of what 3A611.e would control. 
``Specially designed'' in that Note does not effectively narrow the 
scope of its decontrol. The words ``achieve or exceed'' in (a)(1) of 
the definition of ``specially designed'' logically narrow only 
controls, not decontrols. The lack of any such Note to XI(a)(3)(i) 
would not only transfer much of 6A008 and 6A108 to the USML but also 
would transfer from EAR99 to the USML much of what is excluded from 
6A008 in technical decontrol Notes.

Response 23

    BIS does not agree with the commenter that the technical 
description in 3A611.e would cover virtually all airborne or maritime 
radar. Paragraph .e--``High frequency (HF) surface wave radar that 
maintains the positional state of maritime surface or

[[Page 37560]]

low altitude airborne objects of interest in a received radar signal 
through time''--describes specific radar capabilities that have 
distinct military applications and that are not found in most civil 
radars. HF radar manufactured for only maritime traffic control would 
be designed with performance limitations that would limit the military 
utility.
    BIS also does not agree that the note, which makes clear that 
paragraph .a does not apply to radars that are ``specially designed'' 
for marine traffic control, would exclude all radars that would 
otherwise be covered by paragraph .e. The text of paragraph .e 
describes capabilities that would not likely be needed in a maritime 
traffic control system. BIS also disagrees with the commenter's opinion 
that ``specially designed'' cannot apply to a decontrol. In this 
instance, the note excludes radars that as a result of ``development'' 
have properties that are peculiarly responsible for achieving a 
maritime traffic control system performance, a very different thing 
than the kinds of radars controlled by 3A611.e. BIS does not agree with 
the commenter's assertion that a note to proposed USML Category 
XI(a)(3)(i) is needed to prevent transfer of some radars from the CCL 
to the USML.

Comments Concerning ECCN 3A611.f--Application Specific Integrated 
Circuits And Programmable Logic Devices Programmed for ``600 series'' 
Items

Comment 24

    One commenter recommended changing the phrase ``600 series'' in 
ECCN 3A611.f, .g, and .h to read ``a characteristic in the text of a 
description of a ``600 series'' ECCN'' and deleting the phrase 
``specially designed'' from ECCN 3A611.g and .h.

Response 24

    BIS is not making the changes suggested by the commenter. ECCN 
3A611 paragraphs .f, .g and .h control, respectively, application 
specific integrated circuits and programmable logic devices programmed 
for ``600 series'' items, printed circuit boards and populated circuit 
cards with layouts ``specially designed'' for ``600 series'' items, and 
multichip modules with a pattern that is ``specially designed'' for 
``600 series'' items. Changing the phrase ``600 series'' to ``a 
characteristic in the text of a description of a ``600 series ECCN'' 
would add to the text length and complexity, but neither accuracy nor 
clarity. The phrase ``specially designed'' is needed in paragraphs .g 
and .h so that those paragraphs do not inadvertently apply to printed 
circuit boards and populated circuit cards with layouts and to 
multichip modules with patterns that are common to ``600 series'' items 
and items in other ECCNs or to EAR99 items.

Comments Concerning ECCN 3A611.g--Multichip Modules for Which the 
Pattern or Layout is ``Specially Designed'' for ``600 Series'' Items

Comment 25

    One commenter noted that the July 25 (military electronics) rule 
proposed to regulate printed circuit boards and populated circuit card 
assemblies ``specially designed'' for ``600 series'' items under ECCN 
3A611.g, and multichip modules similarly under ECCN 3A611.h.
    The commenter stated that when these items are used in items 
controlled by a ``.y'' paragraph, they are inherently non-significant 
and should either be released by paragraph (b)(3)(ii) of the 
``specially designed'' definition, or themselves controlled by the 
``.y'' paragraph. A similar approach may be suitable for application-
specific integrated circuits and programmable logic devices proposed 
for ECCN 3A611.f.

Response 25

    To the extent that the layout or pattern of a device listed in ECCN 
3A611.f, .g or .h is ``specially designed'' for an item listed in the 
.y paragraph of a ``600 series'' ECCN, BIS agrees with the commenter 
that the device should be controlled to the same extent as the device 
of which it is a ``specially designed'' part or component. Accordingly, 
this final rule addresses the commenter's concerns by adding text to 
paragraphs .f, .g and .h referring reader to paragraph .y of ECCN 3A611 
for such devices and adds text controlling such devices to ECCN 
3A611.y.

Comments Concerning ECCN 3A611.y

Comment 26

    One commenter stated that its connectors that currently are 
classified under USML Category XI(c) would transfer to 3A611.y.3. The 
commenter noted that the problem with the 3A611.y text is that it 
states that it is ``for a commodity subject to control in this entry 
and not elsewhere specified in any ``600 series'' ECCN.'' Thus, an 
electrical connector that is ``specially designed'' for military 
aircraft equipment currently under USML Category VIII, would be 
classified under ECCN 9A610.x.

Response 26

    In this final rule, ECCN 3A611.y applies to parts, components, 
accessories and attachments that are ``specially designed'' for a 
commodity subject to control in a ``600 series'' ECCN and not elsewhere 
specified in any ``600 series'' ECCN, and includes in its list of 
commodities electrical connectors. Thus, if the connectors in fact are 
moved from the USML to the CCL and are not ``specified in another ``600 
series'' ECCN,'' they are controlled by ECCN 3A611.y.

Comment 27

    One commenter stated that under the current wording, [of 3A611.y 
and .x] 3A611.y items would be restricted exclusively to items 
``specially designed for a commodity subject to control in this entry 
and not elsewhere specified in any ``600 series'' ECCN.'' This means, 
by way of example, the commenter asserted that a ``speaker'' (y.19) 
``specially designed'' for a USML item would necessarily be classified 
as a 3A611.x item, despite the positive enumeration of ``speakers'' 
within 3A611.y and the clear intent that .y items are intended to 
constitute a positive list of ``specially designed'' items which 
warrant no more than AT-only controls, whether ``specially designed'' 
for ECCN 3X600 series items or USML items.
    The commenter recommends fixing this by revising paragraphs .x and 
.y to exclude items elsewhere specified on the USML or CCL and by 
revising paragraph .y to apply to specific ``parts,'' ``components,'' 
``accessories'' and ``attachments'' ``specially designed'' for a 
commodity subject to control in this entry or for an article controlled 
by USML Category XI.

Response 27

    BIS believes that no ambiguity exists between the scope of 
paragraphs .x and .y. The commenter's proposed solution would undermine 
the order of review set forth in Supplement No. 4 to part 774 of the 
EAR. However, BIS makes changes to this final rule to address the 
concern of the commenter. In this final rule, BIS makes paragraph .y 
applicable to commodities listed therein if they are ``specially 
designed'' for a commodity in any ``600 series'' ECCN or USML defense 
article and adds text to paragraph .x that explicitly excludes 
commodities in paragraph .y from the control of .x.

[[Page 37561]]

Comment Concerning ECCN 3B611

Comment 28

    One commenter expressed support for the proposal in the State and 
Commerce July 25 (military electronics) rules to transfer to the CCL 
under ECCN 3B611 all ``Test, Inspection and Production Equipment for 
Military Electronics'' that is not explicitly enumerated in the revised 
USML Category XI. The commenter expressed a belief that this proposal 
recognizes an important technical difference and implements an equally 
important policy differentiation between test equipment and operational 
military equipment.

Response 28

    BIS acknowledges the comment.

Comments Concerning ECCN 3D611

Comment 29

    One commenter recommended changing ``specially designed'' to 
``required'' in the heading and in paragraphs .a, .b, .y of ECCN 3D611 
for consistency with EAR definition of ``required.'' This commenter 
also recommended changing ``commodities'' to ``items'' 3D611.a and 
adding ``or 3D611'' to comply with WAML category 21.a. Finally, this 
commenter recommended adding new 3D611.c ``software'' not enumerated in 
the USML or otherwise enumerated in the CCL performing the military 
functions of equipment enumerated in USML Category XI or 3A611 to 
comply with WAML category 21.c.

Response 29

    BIS is making no changes to the rule in response to this comment. 
Although the definition of ``required'' in the EAR can apply to 
software, nothing in that definition requires that the word be used in 
all ECCNs that control software. The definition is very similar to 
paragraph (a)(1) of the definition of specially designed. In this 
instance the term ``specially designed'' tailors the ECCN text more 
closely to BIS's objective of not including dual-use software in a 
``600 series'' ECCN.
    BIS does not agree with this commenter's interpretation of WAML 
category ML21. BIS believes that the phrase ``specified by the 
Munitions List'' in category ML21 refers to categories on the WAML that 
cover equipment, materials or related software, not to WAML category 
ML21 itself, which applies to software generally. WAML category ML11 
applies to military electronic equipment not specified elsewhere on the 
WAML, which, in this rule, is covered by ECCN 3A611. ECCN 3D611 applies 
to software for that equipment, thereby implementing the scope of WAML 
category ML21 as it applies to software for military electronics. 
Because ECCN 3A611 controls commodities as that term is defined in the 
EAR, describing the software controlled by ECCN 3D611 as being for 
commodities controlled by ECCN 3A611 is appropriate.

Comment Concerning ECCN 3E611

Comment 30

    One commenter noted that discrete items on a network that are 
classified as 4x994, 5x001, 5x002, 5x991 and EAR99 sometimes require 
maintenance, repair or replacement. Proposed 3E611 would control 
``operation, installation, maintenance, and repair of `commodities' 
controlled by ECCN 3A611.'' In the case of a system classified as ECCN 
3A611, the proposed ECCN is ambiguous as to whether, for example, the 
maintenance and repair of an end-item such as a switch classified as 
ECCN 5A002 would be controlled by ECCN 3E611.
    The commenter recommended eliminating the ambiguity by adding a 
note to ECCN 3E611 to read as follows: ``ECCN 3E611.a does not control 
the operation, installation, maintenance, or repair of non-`600 series' 
items that are or are intended to be included in `systems' controlled 
by ECCN 3A611.a.''

Response 30

    ECCN 3E611.a controls ``technology'' (other than that described in 
3E611.b or 3E611.y) ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, overhaul, 
or refurbishing of commodities or software controlled by ECCN 3A611, 
3B611 or 3D611. It does not control other technology that is not so 
``required,'' even if that other technology is being used to service a 
network that contains devices or software controlled by ECCN 3A611, 
3B611 or 3D611, nor does it control such other technology that is used 
to service the commodities or software controlled by 3A611, 3B611 or 
3D611. However, ECCN 3E611 does control technology that is so 
``required,'' even if that technology is being used to service 
something else. Given the military nature of ``600 series'' technology, 
BIS believes that this level of control must be maintained. 
Accordingly, BIS is making no changes to the final rule in response to 
this comment.

Comment 31

    One commenter recommended changing the phrase found in 3E611.a 
``other than that described in 3E611.b or 3E611.y'' to read ``not 
controlled by 3E611.b or 3E611.y.'' This same commenter also 
recommended deleting 3E611.b because, he asserted, with the above 
change in 3E611.a, 3E611.b would be covered by 3E611.a.

Response 31

    This final rule adopts the commenter's recommendation in part. The 
proposed rule text ``other than that described in 3E611.b or 3E611.y'' 
is revised to read ``other than that controlled by 3E611.b or 
3E611.y.'' The revised text for 3E611.a more closely follows the text 
generally used in ECCNs and, being a familiar phrasing, is less likely 
to be misunderstood. However, BIS does not agree that the change brings 
ECCN 3E611.b within the scope of 3E611.a. Paragraph .b controls 
technology for four specific commodities. Without the specific listing 
in paragraph .b and a related exclusion in paragraph .a, that 
technology would be controlled under the broader general language of 
paragraph .a. The purpose of paragraph .b in ECCN 3E611 is to delineate 
technology types for which License Exception STA may be used only for 
``build-to-print'' technology, a limitation that does not apply to 
paragraph .a. Placing these items in a separate paragraph allows for 
simpler language in paragraph .a and, BIS believes, will make the scope 
of the STA limitation more readily discernible to readers.

Comment 32

    One commenter recommended that BIS add a new 3E611.c: 
``Technology'' ``required'' for the design of, the assembly of 
components into, and the operation, maintenance, and repair of complete 
production installations for items specified by the U.S. Munitions List 
or ``600 series'' ECCNs. The commenter's proposed paragraph .c would 
apply even if the components of such production installations are not 
specified. The commenter stated that this proposal is necessary to 
comply with WAML category 22.b.1.

Response 32

    The product group ``E'' ``600 series'' ECCNs provide controls 
consistent with the United States commitment as a Wassenaar Arrangement 
member state for the commodities and software that are in the related 
``600 series'' ECCNs (e.g., 3E611 controls technology for commodities 
and software in other ECCNs that end in 611). An additional control on 
all such technology is not needed and could cause confusion about where 
on the CCL a particular technology is controlled. Therefore this

[[Page 37562]]

final rule does not adopt the changes recommended in this comment.

Comments Concerning Definitions

Comment 33

    One commenter recommended adding definitions for ``form,'' ``fit'' 
and ``function'' to Sec.  772.1 of the EAR.

Response 33

    These three terms are defined for purposes of the definition of the 
term ``specially designed'' within the text of that definition in Sec.  
772.1 of the EAR. That definition became effective on October 15, 2013, 
after the comment period on the July 25 (military electronics) rule 
closed on September 9, 2013. Therefore, BIS makes no changes to the EAR 
in response to this comment.

Comment 34

    One commenter stated that the ``Digital Computer'' definition 
currently applies to Categories 4 and 5 and that BIS now needs to add 
Category 3 to that definition.

Response 34

    ECCN 3A611.a, which is being created by this rule, includes, inter 
alia, the phrase ``. . . computer equipment, end items, or systems 
``specially designed'' for military use. . . .'' However, the term 
``digital computer'' is not used in 3A611, nor does it appear in the 
text of this final rule or elsewhere in CCL Category 3. Therefore, this 
final rule does not add a reference to Category 3 to the definition of 
digital computer in Sec.  772.1 of the EAR.

Comment 35

    One commenter recommended harmonizing the definition of ``export'' 
in the ITAR and EAR. This commenter expressed the opinion that the EAR 
is less restrictive than the ITAR with respect to sending equipment 
into international waters temporarily because it defines ``export'' 
differently than does the ITAR.

Response 35

    The change suggested in this comment is outside the scope of the 
July 25 (military electronics) rule and is, therefore, not adopted in 
this final rule. Nevertheless, harmonizing definitions in the ITAR and 
the EAR remains one of the Administration's goals in the Export Control 
Reform Initiative. BIS and the other government bodies involved in that 
initiative continue to review the possibility of harmonizing this 
definition.

Comment 36

    One commenter asked that BIS clarify whether paragraph (b)(3)(ii) 
of the ``specially designed'' definition releases .y items. Paragraph 
(b)(3)(iii) releases items used in or with an item that is either not 
enumerated on the CCL or USML or in an ECCN controlled only for AT 
reasons. The commenter stated that the .y paragraphs are controlled for 
AT and China military end use (744.21) and the de minimis restriction 
for foreign articles containing items that are in ``600 series'' ECCNs.

Response 36

    To be excluded from the definition of ``specially designed'' under 
paragraph, (b)(3)(ii), the item either must be controlled in an ECCN in 
which the only reason for control is antiterrorism or must be 
controlled in an ECCN that Note 1 to the definition of ``specially 
designed'' identifies as an ECCN that is treated as such for the 
purposes of the definition. The .y paragraphs do not meet either of 
those standards and, thus, are not excluded from the definition of 
``specially designed.''

Comment 37

    One commenter requested that BIS clarify use of the phrase ``for 
use in or with a commodity or defense article enumerated or otherwise 
described on the CCL or the USML'' in paragraph (a)(2) of the 
``specially designed'' definition. The commenter stated that BIS and 
DDTC personnel have described this phrase as meaning ``one level up'' 
in a hierarchical design structure. For example, a part might be 
incorporated into a component, which is further incorporated into an 
end item. The commenter indicated that in determining whether the part 
was within the scope of specially designed, one would need to look only 
at the component into which the part would be incorporated, not the end 
item into which the component would be incorporated. The commenter 
suggested that this practice would not be appropriate for sensitive 
military items because (in this example) the part might be peculiarly 
responsible for achieving the performance levels of the end item. 
Moreover, the commenter stated that unscrupulous manufacturers could 
insert artificial non-enumerated levels into a hierarchal design for 
the purpose of decontrolling a sensitive item.

Response 37

    After some review, BIS concludes that no change to this final rule 
is needed in response to this comment. A part that is ``peculiarly 
responsible for achieving or exceeding the performance levels, 
characteristics or functions in the . . . ECCN or the U.S. Munitions 
List (USML) paragraph'' that controls the end item would, according to 
paragraph (a)(1) of the definition, be ``specially designed'' for that 
end item unless released by paragraph (b). Paragraphs (b)(1) and 
(b)(2), if applicable, would release the part regardless of the level 
of the component into which it was installed. Paragraph (b)(3) releases 
parts because they are in fact used in or with an item that is in 
production and is either EAR99 or in an ECCN controlled only for 
antiterrorism reasons. Release of parts that are in fact so used is 
appropriate regardless of whether the item in production is an end item 
or an intermediate part or component because of the actual use in a 
civil product or the actual intent at the design stage not to design 
the item for a military application. Paragraphs (b)(4), (b)(5) and 
(b)(6) release items based on documented design intent. Release of a 
part from the definition is appropriate if the actual documented design 
intent applicable to that part meets the criteria set forth in one of 
those paragraphs regardless of the nature of the end item that the part 
is used in or with. Merely creating an artificial non-enumerated [on 
the CCL] level in design documents in an attempt to decontrol a part or 
component would not satisfy the criteria for release from the 
definition of ``specially designed'' because such documents would not 
reflect actual use or actual design intent. Moreover, such an attempt 
would likely be an attempt to evade a requirement of the EAR and 
possibly a violation of other laws as well.

Comment 38

    One commenter recommended that both the ITAR and the EAR adopt the 
JEDEC [Joint Electron Device Engineering Council] definition of the 
term ``application specific integrated circuit (ASIC),'' i.e., ``an 
integrated circuit developed and produced for a specific application or 
function and for a single customer.'' The commenter stated that 
``[d]oing so will utilize existing industry terminology and, 
accordingly, will provide exporters with a clear basis upon which to 
classify an integrated circuit.''

Response 38

    Although BIS believes that a definition would add clarity, it is 
concerned that the definition that the commenter recommends could 
result in the unwarranted removal of ASICs from ECCN 3A611 that are 
specific to a ``600 series'' commodity merely because a second customer 
purchases the circuit.

[[Page 37563]]

Because of these concerns, BIS is not adopting the commenter's 
definition for the term ``application specific integrated circuit 
(ASIC).'' However, to enhance clarity, this final rule includes text in 
ECCN 3A611 describing application specific integrated circuits as 
``integrated circuits developed and produced for a specific application 
or function regardless of the number of customers.''

Comments Concerning Commodity Jurisdiction Decisions

Comment 39

    Three commenters addressed the effect of the Department of State 
commodity jurisdiction determinations (CJs) that designated an item as 
subject to the EAR prior to the effective date of this rule. One 
commenter recommended that the definition of ``specially designed'' be 
revised to state either that CJs take precedence over the new rules or 
that a CJ request needs to be resubmitted if it does not explicitly 
address parameters in the new rules. One commenter stated that the text 
of paragraph (b)(1) of the ``specially designed'' definition differs 
from the text of General Order No. 5. The commenter pointed out that 
some CJs did not provide an ECCN, but simply stated that an item was 
not subject to the USML. This commenter asserted that an item with such 
a CJ and not listed in an ``018'' ECCN would not be in the ``600 
series'' by General Order No. 5, but would not be released by paragraph 
(b)(1) in the ``specially designed'' definition. A third commenter 
recommended adding a note to General Order No. 5 to read ``Note 1: 
`Enumerated' refers to any item (i) on either the USML or CCL not 
controlled in a `catch-all' paragraph and (ii) when on the CCL, 
controlled by an ECCN for more than Anti-Terrorism (AT) reasons only.'' 
This commenter stated that ``with the implementation of 3A611.x, a 
series 600 ``specially designed'' catch-all paragraph, commodities 
previously self-determined to be EAR99 may be controlled under 3A611.x 
as a result of the product's original design intent.'' The commenter 
stated that it had received ``a class commodity jurisdiction that 
determined a product is subject to the EAR when the commodity fails to 
meet or exceed the minimum performance levels for control under the 
ITAR.'' The commenter then classified the commodities as EAR99 
``because the commodities are not positively controlled in the CCL.''

Response 39

    BIS believes that no change to the wording of either General Order 
No. 5 or the ``specially designed'' definition is needed to address the 
concerns of these commenters. Paragraph (c) of General Order No. 5 
reads:

    Prior commodity jurisdiction determinations. If the U.S. State 
Department has previously determined that an item is not subject to 
the jurisdiction of the ITAR and the item was not listed in a then 
existing ``018'' series ECCN, then the item is per se not within the 
scope of a ``600 series'' ECCN. If the item was not listed elsewhere 
on the CCL at the time of such determination (i.e., the item was 
designated EAR99), the item shall remain designated as EAR99 unless 
specifically enumerated by BIS or DDTC in an amendment to the CCL or 
to the USML, respectively. (Emphasis added.)

    The question of whether the item was listed in a ``018'' series 
ECCN that existed at the time of the determination or whether it was 
listed on the CCL at all at the time of the determination is a question 
of fact. It is not a question of whether CJs take precedence over 
recent amendments to the EAR. Paragraph (c) applies to determinations 
by the State Department ``that an item is not subject to the 
jurisdiction of the ITAR.'' It does not require that the State 
Department determine that the item is EAR99 for the paragraph to be 
applicable. The phrase ``such determination'' in the second sentence 
refers to the State Department's determination that the item was not 
subject to the ITAR. Items subject to such determinations that were not 
in a ``018'' series at the time of that State Department determination 
do not become ``600 series'' items as a result of this rule. Items 
subject to such determinations that became EAR99 because they were not 
on the CCL at all at the time of the State Department determination do 
not lose their EAR99 status unless subsequently ``specifically 
enumerated'' in an amendment to the CCL or USML. The .x paragraphs of 
the ECCNs in this rule are ``catch all'' paragraphs that do not 
specifically enumerate the items that they control. There is no need to 
resubmit CJ requests to determine whether the criteria in paragraph (c) 
of General Order No. 5 are met.

Comment Concerning License Exceptions

Comment 40

    One commenter expressed concern about what it termed ``the proposed 
prohibition on the use of the STA Exception for this Category [ECCN 
3A611].'' The commenter suggested a modification to the STA paragraph 
in 3A611 that it said would allow for control by DOC of the 
applicability of the exception. Under the commenter's suggested 
language, the STA paragraph in ECCN 3A611 would read as follows: 
``Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) of the 
EAR) may not be used for any item in 3A611, unless determined by BIS to 
be eligible for License Exception STA in accordance with Sec.  
740.20(g) (License Exception STA eligibility requests for ``600 
series'' end items).''

Response 40

    BIS believes that the commenter is misreading the STA paragraph in 
ECCN 3A611. That paragraph precludes use of paragraph (c)(2) of License 
Exception STA; it does not preclude the use of paragraph (c)(1). 
Paragraph (c)(1) authorizes the use of License Exception STA to the 36 
destinations in Country Group A:5. Paragraph (c)(2) authorizes limited 
use of License Exception STA to send certain items to the eight 
destinations listed in Country Group A:6 if the only reason for control 
that applies to the transaction is national security. No ``600 series'' 
items are eligible to be exported to destinations in Country Group A:6 
under License Exception STA, a policy that has been followed 
consistently in all rules creating ``600 series'' ECCNs. Accordingly, 
BIS is making no changes to the rule in response to this comment.

Comment Concerning Recordkeeping

Comment 41

    One commenter stated that BIS takes the view that EAR recordkeeping 
requirements apply to all transactions described in Sec.  762.1 of the 
EAR, including those transactions that are completed without a license, 
under a License Exception, or pursuant to an individual license issued 
by BIS. The commenter stated that recording intangible technology 
transfers that do not require a license may have made sense when fewer 
methods of making such transfers existed. However, the commenter 
asserts that the same recordkeeping requirement for intangible 
transfers of NLR technology now applies to email, individual phones, 
VOIP and teleconferences. Large companies with multinational operations 
can generate thousands of records annually. The benefit of not 
requiring a license is largely negated by this recordkeeping 
requirement, with no obvious corresponding benefit to national 
security. This also seems to contradict the goals of Export Control 
Reform--previously licensed technology will become NLR, but records of

[[Page 37564]]

unlicensed, intangible transfers still need to be kept.
    The commenter suggested that BIS review the value of industry 
maintaining records of transfers of technologies for which no license 
is required. BIS might be guided by its approach to EAR Sec.  732.5(b), 
which states that exports from the United States of items on the CCL 
that are designated EAR99 generally do not require a Destination 
Control Statement, even though such items are ``subject to the EAR.'' 
Similar flexibility in interpreting what is subject to the EAR could be 
usefully applied to NLR recordkeeping.

Response 41

    BIS is not making any changes to the EAR recordkeeping requirements 
in response to this comment because such changes would be outside the 
scope of the changes proposed in the July 25 (military electronics) 
rule. However, BIS is planning to undertake a comprehensive review of 
its recordkeeping requirements, including seeking public comment on 
those requirements in the near future.

Comment Concerning Conflict Between the EAR and the ITAR

Comment 42

    One commenter recommended that BIS ``revise [ECCN] 2A984 parameters 
to de-conflict with the parameters included in the [USML] Category 
XI(a)(10). As written [in the July 25 Department of State Military 
Electronics Rule], Category XI(a)(10) identifies electronic sensor 
systems or equipment for detection of concealed weapons having a 
standoff detection range of greater than 45 meters this conflicts with 
[current ECCN] 2A984 entry for concealed object detection equipment 
which includes a standoff distance of 100 meters.'' (Emphasis in 
original).

Response 42

    This comment was also made in connection with the State July 25 
(military electronics) rule. The Department of State's final rule 
includes language in Category XI(a)(10) that excludes sensor systems 
that meet the technical parameters set forth in ECCN 2A984, effectively 
eliminating any overlap in coverage. Therefore, this final rule makes 
no change to ECCN 2A984 in response to this comment.

Comments Not Related to the Proposed Rule

Comment 43

    One commenter recommended changes to 37 ECCNs and several changes 
to the USML to address instances where the commenter believed the 
regulations are inconsistent with the Missile Technology Control Regime 
or where the commenter believed that ITAR and the EAR are inconsistent 
or overlap.

Response 43

    BIS is taking no action on this comment because it is not relevant 
to the July 25 (military electronics) rule.

Comment 44

    Two commenters recommended that certain items be removed from the 
USML.

Response 44

    BIS is taking no action on these comments because the USML is 
administered by the Department of State.

Detailed Description of Changes Made by This Rule

Revision to Note 1 to ECCN 0A614

    This rule adds the phrase ``radar trainers for radars classified 
under ECCN 3A611'' to Note 1 to (ECCN) 0A614, which is an illustrative 
list of items controlled by that entry. BIS proposed including that 
phrase in its initial proposal to create ECCN 0A614 (see 77 FR 35310, 
35316, June 13, 2012). When the final rule creating ECCN 0A614 was 
published, ECCN 3A611, although proposed, did not yet exist so BIS 
omitted that phrase from ECCN 0A614 and stated its intent to add the 
phrase to ECCN 0A614 once ECCN 3A611 was created (see 79 FR 264, 267, 
January 2, 2014). Because this final rule creates ECCN 3A611, it also 
adds the phrase to ECCN 0A614.

Removal of Obsolete Cross References From the ``Related Controls'' 
Paragraphs of ECCNs 3A001, 3D001, 3E001 and 3E003

    This rule removes from the ``Related Controls'' paragraphs of ECCNs 
3A001, 3D001, 3E001 and 3E003 references to certain specific provisions 
of the USML because the Department of State rule that is being 
published concurrently with this rule makes those references obsolete. 
This rule also adds to ECCN 3A001 a general reference to USML 
Categories XI and XV and ECCNs 9A515 and 3A611.

Revisions to ECCN 3A101

    Currently, ECCN 3A101 refers readers to the ITAR for analog-to-
digital converters described in paragraph .a. These converters are 
being moved to the CCL and continue to be controlled for MT reasons 
because they are identified on the MTCR Annex. Placing such items in 
this ECCN, rather than the new ECCN 3A611, makes it easier to identify, 
classify, and control such items. Consequently, this rule revises ECCN 
3A101.a to control analog-to-digital converters usable in ``missiles'' 
and having any of the characteristics described in 3A101.a.1 or a.2. 
This rule also makes a conforming revision to the ``Related Controls'' 
paragraph of that ECCN.

New 3Y611 Series of ECCNs

    This rule adds new ECCNs 3A611, 3B611, 3D611, and 3E611 to control 
military electronics and related test, inspection, and production 
equipment and software and technology currently controlled by USML 
Category XI that the President determined no longer warrant control on 
the USML. These new ECCNs also control computers, telecommunications 
equipment, radar and avionics ``specially designed'' for military use, 
and parts, components, accessories, and attachments ``specially 
designed'' therefor, and related software and technology to the extent 
that they are not enumerated on the proposed revisions to Category XI. 
This structure aligns with the current USML Category XI and ML11, which 
include within the scope of ``electronics'' such items as computers, 
telecommunications equipment, and radar. BIS believes that it is easier 
to include such items within the scope of the proposed new ``600 
series'' that corresponds to USML Category XI, rather than creating new 
``600 series'' ECCNs in CCL Categories 4 (computers), 5 
(telecommunications), 6 (radar) and 7 (avionics). BIS, however, 
includes cross references in CCL Categories 4, 5, 6 and 7 to alert 
readers that ECCN 3A611 may control such items.
    The ECCN 3Y611 series, except for ECCN 3Y611.y, is controlled for 
national security (NS Column 1 or NS1), regional stability (RS Column 1 
or RS1), antiterrorism (AT Column 1 or AT1), and United Nations embargo 
(UN) reasons. ECCNs 3Y611.y will only be controlled for AT1 reasons 
(with this final rule, ECCN 3B611 does not have a .y paragraph). Each 
ECCN in this 3Y611 series is described more specifically below.

New ECCN 3A611

    ECCN 3A611 paragraph .a controls electronic ``equipment,'' ``end 
items,'' and ``systems'' ``specially designed'' for military 
application that are not enumerated in either a USML category or 
another ``600 series'' ECCN.
    Paragraph .b is being reserved. The corresponding USML Category is 
XI(b),

[[Page 37565]]

which, in the Department of State rule being published concurrently 
with this rule, continues to be a catch-all control for ``Electronic 
systems or equipment, not elsewhere enumerated in . . . [the ITAR], 
specially designed for intelligence purposes that collects, surveys, 
monitors, or exploits the electromagnetic spectrum (regardless of 
transmission medium), or for counteracting such activities.''
    Paragraphs .c and .d control MMIC power amplifiers and discrete 
microwave transistors, respectively.
    Paragraph .c controls MMIC power amplifiers in 13 frequency ranges 
and paragraph .d controls discrete microwave transistors in 12 distinct 
frequency ranges. Each range has additional control parameters of peak 
saturated power output, power added efficiency or fractional bandwidth 
or some combination of the three. These three parameters also 
distinguish ECCN 3A611.c and .d from ECCN 3A001.b.2 and .b.3, which 
also control MMIC power amplifiers and discrete microwave transistors.
    A note states that paragraph .d includes bare dice, dice mounted on 
carriers or dice mounted in packages. The note also recognizes discrete 
transistors may also be referred to as power amplifiers but that doing 
so does not change the classification, whether under ECCN 3A001.b.3 or 
3A611.d.
    Paragraph .e controls high frequency (HF) surface wave radar that 
maintains the positional state of maritime surface or low altitude 
airborne objects of interest in a received radar signal through time.
    Paragraphs .f, .g, and .h apply respectively to: (1) Application 
specific integrated circuits (ASICs) and programmable logic devices 
(PLD) programmed for ``600 series'' items other than .y items; (2) 
printed circuit boards and populated circuit card assemblies whose 
layout is ``specially designed'' for ``600 series'' items other than .y 
items; and (3) multichip modules for which the pattern or layout is 
``specially designed'' for ``600 series'' items other than .y items. In 
the Note to paragraph .f, ASIC is defined as ``an integrated circuit 
developed and produced for a specific application or function 
regardless of number of customers for which the integrated circuit is 
developed or produced.'' ASICs, printed circuit boards and populated 
circuit card assemblies and multichip modules for .y items are 
controlled in paragraph .y.
    Paragraphs .i through .w are reserved.
    Paragraph .x controls ``parts,'' ``components,'' ``accessories'' 
and ``attachments'' that are ``specially designed'' for a commodity 
controlled by ECCN 3A611 or for an article controlled by USML Category 
XI, and not enumerated or described in a USML category.
    A related control note in ECCN 3A611 clarifies that electronic 
parts, components, accessories, and attachments that are ``specially 
designed'' for military applications that are not enumerated in any 
USML Category, but are within the scope of a ``600 series'' ECCN, are 
controlled by that ``600 series'' ECCN. For example, electronic 
components not enumerated on the USML that are ``specially designed'' 
for a military aircraft controlled by USML Category VIII or ECCN 9A610 
are controlled by ECCN 9A610.x by this final rule. Similarly, 
electronic components not enumerated on the USML that are ``specially 
designed'' for a military vehicle controlled by USML Category VII or 
ECCN 0A606 are controlled by ECCN 0A606.x. The purpose of this note and 
the limitations in ECCN 3A611.x is to prevent any overlap of controls 
over electronics ``specially designed'' for particular types of items 
described in other ``600 series'' ECCNs (which is not be controlled by 
3A611.x), on one hand, and other electronic parts, components, 
accessories, and attachments ``specially designed'' for military 
electronics that are not enumerated on the USML (which is controlled by 
ECCN 3A611.x), on the other.
    Additional related control notes address: Electronic items that are 
enumerated in USML categories, application specific integrated 
circuits, unprogrammed programmable logic devices, printed circuit 
boards and populated circuit cards, and multichip modules. Finally, a 
related control note informs readers that certain radiation-hardened 
microelectronic circuits are controlled by ECCN 9A515.d.
    Notes to ECCN 3A611.x specify that it controls: (1) Parts, 
components, accessories, and attachments ``specially designed'' for a 
radar, telecommunications, acoustic system or equipment or computer 
``specially designed'' for military application that are neither 
controlled in any USML category nor controlled in another ``600 
series'' ECCN; and (2) parts and components ``specially designed'' for 
underwater sensors or projectors controlled by proposed USML Category 
XI(c)(12) containing single-crystal lead magnesium niobate lead 
titanate (PMN-PT) based piezoelectrics.
    This rule includes an additional note to ECCN 3A611.x stating that 
``Forgings, castings, and other unfinished products, such as extrusions 
and machined bodies, that have reached a stage in manufacture where 
they are clearly identifiable by mechanical properties, material 
composition, geometry, or function as commodities controlled by ECCN 
3A611.x are controlled by ECCN 3A611.x.'' This note, which did not 
appear in the November 28 (military electronics) rule or the July 25 
(military electronics) rule, clarifies BIS' intent to define the parts, 
components, accessories and attachments controlled by paragraph .x in 
an manner that makes the controls under paragraph .x consistent with 
the controls currently imposed on such parts, components, accessories 
and attachments by the ITAR (22 C.F.R. Sec.  121.10).
    ECCN 3A611 also contains a paragraph .y with 35 subparagraphs that 
control specified parts, components, accessories and attachments for 
commodities in any ``600 series'' ECCNs. Antiterrorism (AT Column 1) is 
the only reason for control that applies to paragraph .y. However, as 
with other ``600 series'' .y ECCN paragraphs, Sec.  744.21 of the EAR 
imposes a license requirement for the People's Republic of China.

New ECCN 3B611

    ECCN 3B611 imposes, under paragraph .a, controls on test, 
inspection, and production end items and equipment ``specially 
designed'' for the ``development,'' ``production,'' repair, overhaul, 
or refurbishing of items controlled in ECCN 3A611 or USML Category XI 
that are not enumerated in USML Category XI or controlled by another 
``600 series'' ECCN and, under paragraph .x, for ``parts,'' 
``components,'' ``accessories'' and ``attachments'' that are 
``specially designed'' for such test, inspection and production end 
items and equipment that are not enumerated on the USML or controlled 
by another ``600 series'' ECCN. Paragraphs .b through .w are reserved.

New ECCN 3D611

    ECCN 3D611 paragraph .a imposes controls on software ``specially 
designed'' for the ``development,'' ``production,'' operation, or 
maintenance of commodities controlled by 3A611 or 3B611 other than 
software for 3A611.y. Paragraph .b imposes controls on software 
``specially designed'' for the ``development,'' ``production,'' 
operation or maintenance of technology in ECCN 3E611.b; i.e., software 
(other than build-to-print software) for technology for helix traveling 
wave tubes (TWTs), transmit/receive or transmit modules, MMICs, and 
discrete microwave transistors

[[Page 37566]]

controlled under ECCN 3A611 is not eligible for License Exception STA. 
Paragraphs .c through .x is reserved. Paragraph .y controls specific 
``software'' ``specially designed'' for the ``production,'' 
``development,'' operation or maintenance of commodities enumerated in 
ECCNs 3A611.y.

New ECCN 3E611

    ECCN 3E611 imposes controls on ``technology'' ``required'' for the 
``development,'' ``production,'' operation, installation, maintenance, 
repair, overhaul, or refurbishing of commodities or software controlled 
by ECCN 3A611, 3B611 or 3D611. Technology other than ``build-to-print'' 
technology for helix traveling wave tubes (TWTs), transmit/receive or 
transmit modules, MMICs, and discrete microwave transistors controlled 
under ECCN 3A611 is not eligible for License Exception STA.

Revisions to ECCN 4A003

    As noted above, the analog-to-digital converters described in ECCN 
3A101.a are now subject to the EAR and controlled under that ECCN. 
Adding the text in 3A101.a.2.b for electrical input type analog-to-
digital converter printed circuit boards or modules requires this rule 
to amend ECCN 4A003 to add an MT control for items classified under 
ECCN 4A003.e when meeting or exceeding the parameters described in ECCN 
3A101.a.2.b. This amendment is necessary because the MT items in new 
paragraph 3A101.a.2.b are a subset of the items in paragraph 4A003.e. 
As a technical correction, this rule removes from the ``Reasons for 
Control'' section of ECCN 4A003 the phrase ``NP applies, unless a 
license exception is available. See Sec.  742.3(b) of the EAR for 
information on applicable licensing review policies.'' That text does 
not articulate any license requirement, and no nuclear nonproliferation 
license requirement for digital computers is set forth elsewhere in the 
EAR. BIS's regular practice is to impose a license requirement for 
nuclear nonproliferation reasons on items that are controlled by the 
Nuclear Suppliers Group. Digital computers are not so controlled.

Revisions to ECCN 5A001

    This rule revises the ``Related Controls'' paragraph in ECCN 5A001 
to provide more detailed references to telecommunications equipment 
subject to the ITAR under USML Categories XI and XV, while adding a 
reference to 5A980 and maintaining references to ECCNs 5A101, and 
5A991.

New Cross Reference ECCNs

    This final rule creates four new cross reference ECCNs to alert 
readers that computers, telecommunications equipment, radar and 
avionics--and parts, components, accessories and attachments 
``specially designed'' therefor--are controlled by ECCN 3A611 if they 
are ``specially designed'' for military application. These cross 
references are intended to reduce the likelihood of confusion that 
might otherwise arise because computers, telecommunications equipment, 
radar and avionics generally are in CCL Categories 4, 5 (Part 1), 6 and 
7, respectively. The new cross reference ECCNs and the Categories in 
which they appear are: 4A611, Category 4; 5A611, Category 5, Part 1; 
6A611, Category 6; 7A611, Category 7. The avionics cross reference ECCN 
was not in the November 28 (military electronics) rule.

Corrections to ECCNs 7A006 and 7D101

    This rule corrects the reasons for control paragraph of ECCN 7A006 
to state that the MT reason for control applies to those items covered 
by ECCN 7A006 that also meet or exceed the parameters of ECCN 7A106. 
ECCN 7A006 now applies the missile technology reason for control to a 
range of airborne altimeters that extends beyond the range of 
altimeters that are on the MTCR Annex. BIS's practice is to apply the 
MT reason for control only to items on that Annex. This change conforms 
ECCN 7A006 to that practice. Similarly, this rule adds the phrase ``for 
missile technology (MT) reasons'' to the heading of ECCN 7D101. 
Currently, ECCN 7D101 applies the MT reason for control to software for 
a range of commodity ECCNs. Not all of those commodities are controlled 
for MT reasons. The new text limits the scope of MT controls in ECCN 
7A106 to commodities on the MTCR Annex, and that of ECCN 7D101 to 
software for commodities on the MTCR Annex.

New 9Y620 Series of ECCNs

    This rule creates ECCNs 9A620, 9B620, 9D620, and 9E620 to apply 
NS1, RS1, AT1 and UN reasons for control to cryogenic and 
superconducting equipment described in category ML20 of the WAML, and 
to test, inspection and production equipment, software and technology 
therefor. Category ML20 covers cryogenic and superconducting equipment 
that is ``specially designed'' to be installed in a vehicle for 
military ground, marine, airborne, or space applications. BIS believes 
that such equipment is used in experimental or developmental vehicle 
propulsion systems that employ superconducting components and cryogenic 
equipment to cool those components. BIS has not identified evidence of 
trade in such items. To the extent that exports do exist, the items 
currently are subject to the license requirements of the USML category 
that controls the vehicle into which the equipment will be installed, 
i.e., Category VI, surface vessels; Category VII, ground vehicles; 
Category VIII, aircraft; and Category XV, spacecraft. This rule places 
this cryogenic and superconducting equipment, its related test, 
inspection and production equipment, and its related software and 
technology into a single set of ``600 series'' ECCNs ending with the 
digits ``20'' to correspond to the relevant WAML category. This 
approach furthers the administration's Export Control Reform Initiative 
goal of aligning U.S. controls with multilateral controls wherever 
feasible. Each ECCN in this series is described more specifically 
below.

New ECCN 9A620

    ECCN 9A620.a controls equipment ``specially designed'' to be 
installed in a vehicle for military ground, marine, airborne, or space 
applications, capable of operating while in motion and of producing or 
maintaining temperatures below 103 K (-170 [deg]C). Paragraph .b 
controls ``superconductive'' electrical equipment (rotating machinery 
and transformers) ``specially designed'' to be installed in a vehicle 
for military ground, marine, airborne, or space applications, and 
capable of operating while in motion. Paragraphs .c through .w are 
reserved. Paragraph .x controls parts, components, accessories and 
attachments ``specially designed'' for a commodity controlled by ECCN 
9A620.
    This rule adds a note to ECCN 9A620.x stating that ``Forgings, 
castings, and other unfinished products, such as extrusions and 
machined bodies, that have reached a stage in manufacture where they 
are clearly identifiable by mechanical properties, material 
composition, geometry, or function as commodities controlled by ECCN 
9A620.x are controlled by ECCN 9A620.x.'' This note, which did not 
appear in the November 28 (military electronics) rule or the July 25 
(military electronics) rule, clarifies BIS' intent to define the parts, 
components, accessories and attachments controlled by paragraph .x in 
an manner that makes the controls under paragraph .x consistent with 
the controls currently imposed on such parts components, accessories 
and attachments by the ITAR (22 CFR Sec.  121.10).

[[Page 37567]]

New ECCN 9B620

    ECCN 9B620 controls test, inspection, and production end items and 
equipment ``specially designed'' for the ``development,'' 
``production,'' repair, overhaul or refurbishing of items controlled in 
ECCN 9A620.

New ECCN 9D620

    ECCN 9D620 controls software ``specially designed'' for the 
``development,'' ``production,'' operation, or maintenance of 
commodities controlled by ECCNs 9A620 or 9B620.

New ECCN 9E620

    ECCN 9E620 controls ``technology'' ``required'' for the 
``development,'' ``production,'' operation, installation, maintenance, 
repair, overhaul, or refurbishing of commodities or software controlled 
by ECCNs 9A620, 9B620 or 9D620.

New Controls on Software and Technology for Certain Wing Folding 
Systems

    The Department of State rule being published simultaneously with 
this final rule revises USML Category VIII, paragraph (h)(4) by adding 
criteria to ensure that certain wing folding systems for commercial 
aircraft, and the related software and technology, are not controlled 
as defense articles on the USML. As a result, the Department of 
Commerce implements in this final rule provisions to control software 
and technology for the development of certain wing folding systems for 
aircraft with gas turbine engines.
    A wing folding system for military aircraft, other than one 
described in the revised USML Category VIII(h)(4), is controlled in the 
catch-all paragraph .x and related software and technology controls in 
the 600 Series ECCNs 9A610, 9D610 and 9E610. A wing folding system for 
commercial and other civilian aircraft is controlled under ECCN 9A991, 
which controls, for antiterrorism reasons, aircraft and parts and 
components that are not elsewhere specified on the CCL. Production and 
use software and technology for such systems can be adequately 
controlled under the related ECCNs 9D991 and 9E991, respectively. 
However, software and technology controlled by these two ECCNs require 
a license to only five destinations. License requirements for a greater 
number of destinations are needed for development software and 
technology for wing folding systems to be used on large commercial 
aircraft because the software and technology required to develop a 
robust civil system would confer insights that would be useful to the 
development of a military wing folding system. Ability to develop or 
acquire aircraft with robust wing folding systems greatly increases the 
number and types of military aircraft that can be deployed from an 
aircraft carrier because of the limited space available for storage and 
maintenance activities on such vessels as compared to a land based 
airport.
    No multilateral export controls on this development software and 
technology currently exist. Moreover, this software and technology does 
not meet the parameters of any current ECCN that would provide a 
license requirement for the appropriate number of destinations, 
creating a risk that the civil development software and technology will 
be exported without the U.S. Government prior review that such 
transactions merit.
    Based on the foregoing, the Department of Commerce, with the 
concurrence of the Departments of Defense and State, has determined 
that software and technology for the development of wing folding 
systems for aircraft with gas turbine engines should be controlled on 
the CCL for export due to the growth in civil application for wing 
folding systems. The software and technology for the development of 
these systems still provide at least a significant military or 
intelligence advantage to the United States such that control at the 
AT-only level in ECCNs 9D991 and 9E991 would not sufficiently limit the 
proliferation of this technology contrary to U.S. national security and 
foreign policy interest. Therefore, this final rule adds such software 
and technology to Supplement No. 5 to part 774, thereby controlling 
them under ECCNs 0D521 and 0E521, respectively. In accordance with 
Sec.  742.6(a)(7)(iii) of the EAR, this software and technology will 
remain so-classified for one year from the date they are listed in 
Supplement No. 5 to part 774 of the EAR unless the software or 
technology is re-classified under a different ECCN, the 0Y521 
classification is extended, or the software or technology is designated 
as EAR99. The U.S. Government intends to submit a proposal to control 
this software and technology on the Wassenaar Arrangement Dual-Use 
List. An ECCN 0Y521 classification may be extended for two one-year 
periods to provide time for the U.S. Government and multilateral 
regime(s) to reach agreement on controls for the item, and provided 
that the U.S. Government has submitted a proposal to obtain 
multilateral controls over the item. Further extension beyond three 
years may occur only if the Under Secretary for Industry and Security 
makes a determination that such an extension is in the national 
security or foreign policy interests of the United States. An extension 
or re-extension, including a determination by the Under Secretary for 
Industry and Security, will be published in the Federal Register.

Export Administration Act

    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 amended by Executive Order 13637 of March 
8, 2013, 78 FR 16129 (March 13, 2013) and as extended by the Notice of 
August 8, 2013, 78 FR 49107 (August 12, 2013), 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 
by law, pursuant to Executive Order 13222 as amended by Executive Order 
13637.

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 final rule affects 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 on July 15, 2011 (76 FR

[[Page 37568]]

41958), BIS initially believed that the combined effect of all rules to 
be published adding items to the EAR that will be removed from the ITAR 
as part of the administration's Export Control Reform Initiative will 
increase the number of license applications to be submitted by 
approximately 16,000 annually. As the review of the USML has 
progressed, the interagency group has gained more specific information 
about the number of items that will come under BIS jurisdiction and 
whether those items would be eligible for export under license 
exception. As of June 21, 2012, BIS revised that estimate to an 
increase in license applications of 30,000 annually, resulting in an 
increase in burden hours of 8,500 (30,000 transactions at 17 minutes 
each) under control number 0694-0088. BIS continues to believe that its 
revised estimate is accurate.
    Military electronic equipment, certain cryogenic and 
superconducting equipment, related test, inspection and production 
equipment, ``parts,'' ``components,'' ``accessories'' and 
``attachments,'' ``software'' and ``technology'' formerly on the USML 
become eligible for License Exception STA under this rule. BIS believes 
that the increased use of License Exception STA resulting from 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 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 will 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 electronic 
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 here, such parts 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 3E611 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. BIS finds good cause under 5 U.S.C. 553(b)(B) to waive prior 
notice, the opportunity for public comment for the provisions of this 
final rule imposing controls on software and technology for the 
development and production of wing folding systems for civil aircraft 
with gas turbine engines to ECCN 0D521 and 0E521 via Supplement No. 5 
to part 774 of the EAR. BIS, with the concurrence of the U.S. 
Departments of Defense and State, is implementing this rule because the 
software and technology for those wing folding systems provide a 
significant military or intelligence advantage to the United States and 
that expedited control on the CCL is needed to prevent diversion of 
such software and technology to governments or parties that could use 
the knowledge conveyed by such software and technology to acquire 
insights that would be useful in developing military aircraft wing 
folding systems and that likely would use such insights to the 
detriment of United States national security and foreign policy 
interests.
    Immediate implementation will allow BIS to prevent exports of these 
items to users and for uses that pose a national security threat to the 
United States or its allies. If BIS delayed this rule to allow for 
prior notice and opportunity for public comment, the resulting delay in 
implementation would afford an opportunity for the export of these 
items to users and uses that pose such a national security threat, 
thereby undermining the purpose of the rule. In addition, if parties 
receive notice of the U.S. Government's intention to control these 
items under 0Y521 once a final rule was published, they would have an 
incentive to either accelerate orders of these items or attempt to have 
the items exported prior to the imposition of the control.
    Further, BIS finds good cause to waive the 30-day delay in 
effectiveness under 5 U.S.C. 553(d)(3). Immediate implementation will 
allow BIS to prevent exports of these items to users and for uses that 
pose a national security threat to the United States or its allies. If 
BIS delayed this rule to allow for a 30-day delay in effectiveness, the 
resulting delay in implementation would afford an opportunity for the 
export of these items to users and uses that pose such a national 
security threat, thereby undermining the purpose of the rule.
    Although notice and opportunity for comment are not required, BIS 
welcomes comments on the addition of wing folding technology or any 
other aspects of this rule at any time.
    Because prior notice and an opportunity for public comment are not 
required to be given by 5 U.S.C. 553, or by any other law, the 
analytical requirements of the Regulatory Flexibility Act, 5 U.S.C. 601 
et seq., are not applicable for the provisions imposing controls on 
software and technology for the development and production of wing 
folding systems for aircraft with gas turbine engines.
    5. 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 a regulatory 
flexibility analysis 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, unless the agency certifies that the 
rule will not have a significant economic impact on a substantial 
number of small entities. Under section 605(b) of the RFA, however, if 
the head of an agency (or his or her designee) certifies that a rule 
will not have a significant impact on a substantial number of small 
entities, the statute 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

[[Page 37569]]

Advocacy, Small Business Administration, certifying that the November 
28 (military electronics) rule would not have a significant impact on a 
substantial number of small entities. The rationale for that 
certification was set forth in the preamble to that proposed rule (77 
FR 70945, 70950-70951, November 28, 2012). Although BIS received no 
comments on that rationale, and has accordingly made no changes to the 
proposed rule based on the RFA certification, BIS, in the interest of 
openness and transparency, briefly restates the rationale behind the 
certification in this final rule.
    This rule is part of the Administration's Export Control Reform 
Initiative, which seeks to revise the USML to a positive list--one that 
does not use generic, catch-all controls for items listed--and to move 
some items that the President has determined no longer merit control 
under the ITAR and should be controlled under the CCL.
    Although BIS does not collect data on the size of entities that 
apply for and are issued export licenses, and is therefore unable to 
estimate the exact number of small entities--as defined by the Small 
Business Administration's regulations implementing the RFA--BIS 
acknowledges that some small entities may be affected by this proposed 
rule.
    The main effects on small entities resulting from this rule will be 
in application times, costs, and delays in receiving licenses to export 
goods subject to the CCL. However, while small entities may experience 
some costs and time delays for exports due to the license requirements 
of the CCL, these costs and delays will likely be significantly less 
than they were for items previously subject to the USML. BIS believes 
that in fact this rule will result in significantly reduced 
administrative costs and delays for exports of items that will, upon 
this rule's implementation, be subject to the EAR rather than the ITAR. 
Currently, USML applicants must pay to use the USML licensing procedure 
even if they never actually are authorized to export. Registration fees 
for manufacturers and exporters of articles on the USML start at $2,250 
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. 
By contrast, BIS is statutorily prohibited from imposing licensing 
fees. In addition, exporters and reexporters of goods that would become 
subject to the EAR under this rule would need fewer licenses because 
their transactions would become eligible for license exceptions that 
were not available under the ITAR. Additionally, the ITAR controlled 
parts and components even when they were incorporated--in any amount--
into a foreign-made product. That limitation on the use of U.S.-made 
goods subject to the ITAR discouraged foreign manufacturers from 
importing U.S. goods. However, the EAR has a de minimis exception for 
U.S.-manufactured goods that are incorporated into foreign-made 
products. This exception may benefit small entities by encouraging 
foreign producers to use more U.S.-made items in their goods.
    Even where an exporter or reexporter would need to obtain a license 
under the EAR, that process is both cheaper and the process is more 
flexible than obtaining a license under the ITAR. For example, unlike 
the ITAR, the EAR does not require license applicants to provide BIS 
with a purchase order with the application, meaning that small (or any) 
entities can enter into negotiations or contracts for the sale of goods 
without having to caveat any sale presentations with a reference to the 
need to obtain a license under the ITAR before shipment can occur. 
Second, the EAR allows license applicants to obtain licenses to cover 
all expected exports or reexports to a particular consignee over the 
life of a license, rather than having to obtain a new license for every 
transaction.
    In short, BIS expects that the changes to the EAR proposed in this 
rule will have a positive effect on all affected entities, including 
small entities. While BIS acknowledges that this rule may have some 
cost impacts to small (and other) entities, those costs are more than 
offset by the benefits to the entities from the licensing procedures 
under the EAR, which are much less costly and less time consuming than 
the procedures under the ITAR. Accordingly, the Chief Counsel for 
Regulation for the Department of Commerce has certified that this rule, 
if implemented, will not have a significant economic impact on a 
substantial number of small entities. Accordingly, an initial 
regulatory flexibility analysis is not required, and none has been 
prepared.

List of Subjects in Part 774

    Exports, Reporting and recordkeeping requirements.

    Accordingly, part 774 of the Export Administration Regulations (15 
CFR Parts 730-774) is amended as follows:

PART 774--[AMENDED]

0
1. 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 8, 2013, 78 FR 49107 (August 12, 2013).


0
2. In Supplement No. 1 to part 774, amend Export Control Classification 
Number 0A614 by revising ``Note 1 to 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).
* * * * *

    Note 1 to 0A614:  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.

* * * * *

0
3. In Supplement No. 1 to part 774, revise the ``Related Controls'' 
paragraph in the ``List of Items Controlled'' of ECCN 3A001 to read as 
follows:

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

* * * * *
3A001 Electronic components and ``specially designed'' 
``components'' therefor, as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

Related Controls: See USML Categories XI and XV and ECCNs 9A515 and 
3A611.
* * * * *

0
4. In Supplement No. 1 to part 774, Category 3, amend Export Control 
Classification Number (ECCN) 3A101 by:
0
a. Revising the Related Controls paragraph in the List of Items 
Controlled section; and
0
b. Revising paragraph a. in the Items paragraph in the List of Items 
Controlled section.
    The revisions read as follows:

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

* * * * *

[[Page 37570]]

3A101 Electronic equipment, devices and components, other than those 
controlled by 3A001, as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Related Controls: See also ECCN 4A003.e for controls on analog-to-
digital converters, printed circuit boards, or modules for 
computers.
* * * * *
Items:

    a. Analog-to-digital converters usable in ``missiles,'' and 
having any of the following characteristics:
    a.1. ``Specially designed'' to meet military specifications for 
ruggedized equipment;
    a.2. ``Specially designed'' for military use and being any of 
the following types:
    a.2.a. Analog-to-digital converter microcircuits which are 
radiation-hardened or have all of the following characteristics:
    a.2.a.1. Having a quantization corresponding to 8 bits or more 
when coded in the binary system;
    a.2.a.2. Rated for operation in the temperature range from -54 
[deg]C to above +125 [deg]C; and
    a.2.a.3. Hermetically sealed; or
    a.2.b. Electrical input type analog-to-digital converter printed 
circuit boards or modules, having all of the following 
characteristics:
    a.2.b.1. Having a quantization corresponding to 8 bits or more 
when coded in the binary system;
    a.2.b.2. Rated for operation in the temperature range from below 
-45 [deg]C to above +55 [deg]C; and
    a.2.b.3. Incorporating microcircuits identified in 3A101.a.2 .a;
* * * * *


0
5. In Supplement No. 1 to Part 774, between the entries for ECCNs 3A292 
and 3A980, add an entry for ECCN 3A611 to read as follows:

3A611 Military electronics, as follows (see List of Items 
Controlled).
Reason for Control: NS, RS, AT, UN.


 
                                            Country chart (see Supp. No.
                Control(s)                         1 to part 738)
 
NS applies to entire entry except 3A611.y.  NS Column 1
RS applies to entire entry except 3A611.y.  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 3A611.y.  See Sec.   746.1(b) for UN
                                             controls
 

List Based License Exceptions (See Part 740 for a Description of All 
License Exceptions)

LVS: $1500 for 3A611.a, .d through .h and .x; N/A for ECCN 3A611.c.
GBS: N/A
CIV: N/A

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 3A611.

List of Items Controlled

Related Controls: (1) Electronic items that are enumerated in USML 
Category XI or other USML categories, and technical data (including 
software) directly related thereto, are subject to the ITAR. (2) 
Application specific integrated circuits (ASICs) and programmable 
logic devices (PLD) that are programmed for defense articles that 
are subject to the ITAR are controlled in USML Category XI(c)(1). 
(3) See ECCN 3A001.a.7 for controls on unprogrammed programmable 
logic devices (PLD). (4) Printed circuit boards and populated 
circuit cards with a layout that is ``specially designed'' for 
defense articles are controlled in USML Category XI(c)(2). (5) 
Multichip modules for which the pattern or layout is ``specially 
designed'' for defense articles are controlled in USML Category 
XI(c)(3). (6) Electronic items ``specially designed'' for military 
application that are not controlled in any USML category but are 
within the scope of another ``600 series'' ECCN are controlled by 
that ``600 series'' ECCN. For example, electronic components not 
enumerated on the USML or a ``600 series'' other than 3A611 that are 
``specially designed'' for a military aircraft controlled by USML 
Category VIII or ECCN 9A610 are controlled by the catch-all control 
in ECCN 9A610.x. Electronic components not enumerated on the USML or 
another ``600 series'' entry that are ``specially designed'' for a 
military vehicle controlled by USML Category VII or ECCN 0A606 are 
controlled by ECCN 0A606.x. Electronic components not enumerated on 
the USML that are ``specially designed'' for a missile controlled by 
USML Category IV are controlled by ECCN 0A604. (7) Certain 
radiation-hardened microelectronic circuits are controlled by ECCN 
9A515.d or 9A515.e, when ``specially designed'' for defense 
articles, ``600 series'' items, or items controlled by 9A515.
Related Definitions: N/A.
Items:

    a. Electronic ``equipment,'' ``end items,'' and ``systems'' 
``specially designed'' for a military application that are not 
enumerated or otherwise described in either a USML category or 
another ``600 series'' ECCN.

    Note to 3A611.a: ECCN 3A611.a includes any radar, 
telecommunications, acoustic or computer equipment, end items, or 
systems ``specially designed'' for military application that are not 
enumerated or otherwise described in any USML category or controlled 
by another ``600 series'' ECCN.

    b. [Reserved]
    c. Microwave ``monolithic integrated circuits'' (MMIC) power 
amplifiers having any of the following:
    c.1. Rated for operation at frequencies exceeding 2.7 GHz up to 
and including 2.9 GHz and having any of the following:
    c.1.a. A ``fractional bandwidth'' greater than 15%, with a peak 
saturated power output greater than 75 W (48.75 dBm) and a power 
added efficiency of 55% or greater anywhere within the operating 
frequency range; or
    c.1.b. A ``fractional bandwidth'' greater than 60%, with a peak 
saturated power output greater than 150 W (51.8 dBm) anywhere within 
the operating frequency range;
    c.2. Rated for operation at frequencies exceeding 2.9 GHz up to 
and including 3.2 GHz and having any of the following:
    c.2.a. A ``fractional bandwidth'' greater than 15%, with a peak 
saturated power output greater than 55 W (47.4 dBm) and a power 
added efficiency of 55% or greater anywhere within the operating 
frequency range; or
    c.2.b. A ``fractional bandwidth'' greater than 55%, with a peak 
saturated power output greater than 110 W (50.4 dBm) anywhere within 
the operating frequency range;
    c.3. Rated for operation at frequencies exceeding 3.2 GHz up to 
and including 3.7 GHz and having any of the following:
    c.3.a. A ``fractional bandwidth'' greater than 15%, with a peak 
saturated power output greater than 40 W (46 dBm) and a power added 
efficiency of 45% or greater anywhere within the operating frequency 
range; or
    c.3.b. A ``fractional bandwidth'' greater than 50%, with a peak 
saturated power output greater than 80 W (49 dBm) anywhere within 
the operating frequency range;
    c.4. Rated for operation at frequencies exceeding 3.7 GHz up to 
and including 6.8 GHz and having any of the following:
    c.4.a. A ``fractional bandwidth'' greater than 15%, with a peak 
saturated power output greater than 20 W (43 dBm) and a power added 
efficiency of 40% or greater anywhere within the operating frequency 
range; or
    c.4.b. A ``fractional bandwidth'' greater than 45%, with a peak 
saturated power output greater than 40 W (46 dBm) anywhere within 
the operating frequency range;
    c.5. Rated for operation at frequencies exceeding 6.8 GHz up to 
and including 8.5 GHz and having any of the following:
    c.5.a. A ``fractional bandwidth'' greater than 10%, with a peak 
saturated power output greater than 10 W (40.0 dBm) and a power 
added efficiency of 40% or greater anywhere within the operating 
frequency range; or
    c.5.b. A ``fractional bandwidth'' greater than 40%, with a peak 
saturated power output greater than 20 W (43 dBm) anywhere within 
the operating frequency range;
    c.6. Rated for operation at frequencies exceeding 8.5 GHz up to 
and including 16 GHz and having any of the following:
    c.6.a. A ``fractional bandwidth'' greater than 10%, with a peak 
saturated power output greater than 5 W (37 dBm) and a power added 
efficiency of 35% or greater anywhere within the operating frequency 
range; or
    c.6.b. A ``fractional bandwidth'' greater than 40%, with a peak 
saturated power output greater than 10 W (40 dBm) anywhere within 
the operating frequency range;
    c.7. Rated for operation at frequencies exceeding 16 GHz up to 
and including 31.8

[[Page 37571]]

GHz with a ``fractional bandwidth'' greater than 10%, and having a 
peak saturated power output greater than 3 W (34.77 dBm) and a power 
added efficiency of 20% or greater anywhere within the operating 
frequency range;
    c.8. Rated for operation at frequencies exceeding 31.8 GHz up to 
and including 37 GHz, and having a peak saturated power output 
greater than 2 W (33 dBm) anywhere within the operating frequency 
range;
    c.9. Rated for operation at frequencies exceeding 37 GHz up to 
and including 43.5 GHz with a ``fractional bandwidth'' greater than 
10%, and having a peak saturated power output greater than 1 W (30 
dBm) and a power added efficiency of 15% or greater anywhere within 
the operating frequency range;
    c.10. Rated for operation at frequencies exceeding 43.5 GHz up 
to and including 75 GHz with a ``fractional bandwidth'' greater than 
10%, and having a peak saturated power output greater than 31.62 mW 
(15 dBm) and a power added efficiency of 10% or greater anywhere 
within the operating frequency range;
    c.11. Rated for operation at frequencies exceeding 75 GHz up to 
and including 90 GHz with a ``fractional bandwidth'' greater than 
5%, and having a peak saturated power output greater than 10 mW (10 
dBm) and a power added efficiency of 10% or greater anywhere within 
the operating frequency range;
    c.12. Rated for operation at frequencies exceeding 90 GHz up to 
and including 110 GHz and having a peak saturated power output 
greater than 1.0 mW (0 dBm) anywhere within the operating frequency 
range; or
    c.13. Rated for operation at frequencies exceeding 110 GHz and 
having a peak saturated power output greater than 100 nW (-40 dBm) 
anywhere within the operating frequency range.

    Note 1 to 3A611.c: The control status of an item that has rated 
operating frequency including frequencies listed in more than one 
frequency range, as defined by 3A611.c.1 through 3A611.c.13, is 
determined by the lowest saturated power output threshold.


    Note 2 to 3A611.c: Peak saturated power output may also be 
referred to as output power, saturated power output, maximum power 
output, peak power output, or peak envelope power output.

    d. Discrete microwave transistors having any of the following:
    d.1. Rated for operation at frequencies exceeding 2.7 GHz up to 
and including 2.9 GHz and having a peak saturated power output 
greater than 400 W (56 dBm) and a power added efficiency of 60% or 
greater anywhere within the operating frequency range;
    d.2. Rated for operation at frequencies exceeding 2.9 GHz up to 
and including 3.2 GHz and having a peak saturated power output 
greater than 205 W (53.12 dBm) and a power added efficiency of 60% 
or greater anywhere within the operating frequency range;
    d.3. Rated for operation at frequencies exceeding 3.2 GHz up to 
and including 3.7 GHz and having a peak saturated power output 
greater than 115 W (50.61 dBm) and a power added efficiency of 45% 
or greater anywhere within the operating frequency range;
    d.4. Rated for operation at frequencies exceeding 3.7 GHz up to 
and including 6.8 GHz and having a peak saturated power output 
greater than 60 W (47.78 dBm) and a power added efficiency of 45% or 
greater anywhere within the operating frequency range;
    d.5. Rated for operation at frequencies exceeding 6.8 GHz up to 
and including 8.5 GHz and having a peak saturated power output 
greater than 50 W (47 dBm) and a power added efficiency of 50% or 
greater anywhere within the operating frequency range;
    d.6. Rated for operation at frequencies exceeding 8.5 GHz and up 
to and including 12 GHz and having a peak saturated power output 
greater than 20 W (43 dBm) and a power added efficiency of 35% or 
greater anywhere within the operating frequency range;
    d.7. Rated for operation at frequencies exceeding 12 GHz up to 
and including 16 GHz and having a peak saturated power output 
greater than 40 W (46 dBm) and a power added efficiency of 35% or 
greater anywhere within the operating frequency range;
    d.8. Rated for operation at frequencies exceeding 16 GHz up to 
and including 31.8 GHz and having a peak saturated power output 
greater than 20 W (43 dBm) and a power added efficiency of 30% or 
greater anywhere within the operating frequency range;
    d.9. Rated for operation at frequencies exceeding 31.8 GHz up to 
and including 37 GHz and having a peak saturated power output 
greater than 2 W (33 dBm) anywhere within the operating frequency 
range;
    d.10. Rated for operation at frequencies exceeding 37 GHz up to 
and including 43.5 GHz and having a peak saturated power output 
greater than 1 W (30 dBm) and a power added efficiency of 20% or 
greater anywhere within the operating frequency range; or
    d.11. Rated for operation at frequencies exceeding 43.5 GHz to 
and including 75 GHz and having a peak saturated power output 
greater than 0.5 W (27 dBm) and a power added efficiency of 15% or 
greater anywhere within the operating frequency range;
    d.12. Rated for operation at frequencies exceeding 75 GHz and 
having a peak saturated power output greater than 0.1 W (20 dBm) 
anywhere within the operating frequency range.

    Note 1 to 3A611.d: The control status of an item that has rated 
operating frequency including frequencies listed in more than one 
frequency range, as defined by 3A611.d.1 through 3A611.d.12, is 
determined by the lowest saturated output power threshold.


    Note 2 to 3A611.d: Peak saturated power output may also be 
referred to as output power, saturated power output, maximum power 
output, peak power output, or peak envelope power output.


    Note 3 to 3A611.d: 3A611.d includes bare dice, dice mounted on 
carriers, or dice mounted in packages. Some discrete transistors may 
also be referred to as power amplifiers, but the status of these 
products is determined by 3A001.b.3. and 3A611.d.

    e. High frequency (HF) surface wave radar that maintains the 
positional state of maritime surface or low altitude airborne 
objects of interest in a received radar signal through time.

    Note to 3A611.e: ECCN 3A611.e does not apply to systems, 
equipment, and assemblies ``specially designed'' for marine traffic 
control.

    f. Application specific integrated circuits (ASICs) and 
programmable logic devices (PLD) that are not controlled by 
paragraph .y of this entry and that are programmed for ``600 
series'' items.

    Note to paragraph .f: In this paragraph, the term `application 
specific integrated circuit' means an integrated circuit developed 
and produced for a specific application or function regardless of 
number of customers for which the integrated circuit is developed or 
produced.

    g. Printed circuit boards and populated circuit card assemblies 
that are not controlled by paragraph .y of this entry and for which 
the layout is ``specially designed'' for ``600 series'' items.
    h. Multichip modules that are not controlled by paragraph .y of 
this entry and for which the pattern or layout is ``specially 
designed'' for ``600 series'' items.
    i. through w. [Reserved]
    x. ``Parts,'' ``components,'' ``accessories'' and 
``attachments'' that are ``specially designed'' for a commodity 
controlled by this entry or for an article controlled by USML 
Category XI, and not enumerated or described in any USML category or 
another 600 series ECCN or in paragraph .y of this entry.

    Note 1 to ECCN 3A611.x: ECCN 3A611.x includes ``parts,'' 
``components'', ``accessories'', and ``attachments'' ``specially 
designed'' for a radar, telecommunications, acoustic system or 
equipment or computer ``specially designed'' for military 
application that are neither controlled in any USML category nor 
controlled in another ``600 series'' ECCN.


    Note 2 to ECCN 3A611.x: ECCN 3A611.x controls ``parts'' and 
``components'' ``specially designed'' for underwater sensors or 
projectors controlled by USML Category XI(c)(12) containing single-
crystal lead magnesium niobate lead titanate (PMN-PT) based 
piezoelectrics.


    Note 3 to ECCN 3A611.x: Forgings, castings, and other unfinished 
products, such as extrusions and machined bodies, that have reached 
a stage in manufacture where they are clearly identifiable by 
mechanical properties, material composition, geometry, or function 
as commodities controlled by ECCN 3A611.x are controlled by ECCN 
3A611.x.

    y. Specific ``parts,'' ``components,'' ``accessories'' and 
``attachments'' ``specially designed'' for a commodity subject to 
control in a ``600 series'' ECCN or a defense article and not 
elsewhere specified in any ``600 series'' ECCN or the USML as 
follows, and

[[Page 37572]]

``parts,'' ``components,'' ``accessories,'' and ``attachments'' 
``specially designed'' therefor:
    y.1. Electrical connectors;
    y.2. Electric fans;
    y.3. Heat sinks;
    y.4. Joy sticks;
    y.5. Mica paper capacitors;
    y.6. Microphones;
    y.7. Potentiometers;
    y.8. Rheostats;
    y.9. Electric connector backshells;
    y.10. Solenoids;
    y.11. Speakers;
    y.12. Trackballs;
    y.13. Electric transformers;
    y.14. Application specific integrated circuits (ASICs) and 
programmable logic devices (PLD) that are programmed for commodities 
controlled in the .y paragraph of any ``600 series'' ECCN;
    y.15. Printed circuit boards and populated circuit card 
assemblies for which the layout is ``specially designed'' for an 
item controlled by the .y paragraph of any ``600 series'' ECCN;
    y.16. Multichip modules for which the pattern or layout is 
``specially designed'' for an item in the .y paragraph of a ``600 
series'' ECCN;
    y.17. Circuit breakers;
    y.18. Ground fault circuit interrupters;
    y.19. Electrical contacts;
    y.20. Electrical guide pins;
    y.21. Filtered and unfiltered mechanical switches;
    y.22. Thumbwheels;
    y.23. Fixed resistors;
    y.24. Electrical jumpers;
    y.25. Grounding straps;
    y.26. Indicator dials;
    y.27. Contactors;
    y.28. Touchpads;
    y.29. Mechanical caps;
    y.30. Mechanical plugs;
    y.31. Finger barriers;
    y.32. Flip-guards;
    y.33. Identification plates and nameplates;
    y.34. Knobs;
    y.35. Hydraulic, pneumatic, fuel and lubrication gauges.

0
6. In Supplement No. 1 to Part 774, between the entries for ECCNs 3B002 
and 3B991, add an entry for ECCN 3B611 to read as follows:

3B611 Test, inspection, and production commodities for military 
electronics, as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN.

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls
 

List Based License Exceptions (see Part 740 for a description of all 
license exceptions)

LVS: $1500.
GBS: N/A.
CIV: N/A.

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 3B611.

List of Items Controlled

Related Controls: N/A.
Related Definitions: N/A.
Items:

    a. Test, inspection, and production end items and equipment 
``specially designed'' for the ``development,'' ``production,'' 
repair, overhaul or refurbishing of items controlled in ECCN 3A611 
(except 3A611.y) or USML Category XI that are not enumerated in USML 
Category XI or controlled by another ``600 series'' ECCN.
    b. through w. [Reserved]
    x. ``Parts,'' ``components,'' ``accessories'' and 
``attachments'' that are ``specially designed'' for a commodity 
listed in this entry and that are not enumerated on the USML or 
controlled by another ``600 series'' ECCN.

0
7. In Supplement No. 1 to part 774, revise the ``Related Controls'' 
paragraph in the ``List of Items Controlled'' of ECCN 3D001 to read as 
follows:

3D001 ``Software'' ``specially designed'' for the ``development'' or 
``production'' of equipment controlled by 3A001.b to 3A002.g or 3B 
(except 3B991 and 3B992).
* * * * *

List of Items Controlled

Related Controls: N/A.
* * * * *

0
8. In Supplement No. 1 to Part 774, between the entries for ECCNs 3D101 
and 3D980, add an entry for ECCN 3D611 to read as follows:

3D611 ``Software'' ``specially designed'' for military electronics, 
as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN.

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to entire entry except 3D611.y.  NS Column 1
RS applies to entire entry except 3D611.y.  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 3D611.y.  See Sec.   746.1(b) for UN
                                             controls
 

List Based License Exceptions (see Part 740 for a description of all 
license exceptions)

CIV: N/A.
TSR: N/A.

Special Conditions for STA

STA: 1. Paragraph (c)(2) of License Exception STA (Sec.  
740.20(c)(2) of the EAR) may not be used for any ``software'' in 
3D611. 2. Except for ``build-to-print'' software, License Exception 
STA is not eligible for software enumerated in ECCN 3D611.b.

List of Items Controlled

Related Controls: ``Software'' directly related to articles 
enumerated in USML Category XI is controlled in USML Category XI(d).
Related Definitions: N/A.
Items:

    a. ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of commodities controlled 
by ECCN 3A611 (other than 3A611.y) and 3B611.
    b. ``Software'' ``specially designed'' for the ``development,'' 
``production,'' operation or maintenance of technology in ECCN 
3E611.b.
    c. through x. [Reserved]
    y. ``Software'' ``specially designed'' for the ``production,'' 
``development,'' operation or maintenance of commodities enumerated 
in ECCNs 3A611.y.


0
9. In Supplement No. 1 to part 774, revise the ``Related Controls'' 
paragraph in the ``List of Items Controlled'' of ECCN 3E001 to read as 
follows:

3E001 ``Technology'' according to the General Technology Note for 
the ``development'' or ``production'' of equipment or materials 
controlled by 3A (except 3A292, 3A980, 3A981, 3A991 3A992, or 
3A999), 3B (except 3B991 or 3B992) or 3C (except 3C992).
* * * * *

List of Items Controlled

Related Controls: See also 3E101 and 3E201.
* * * * *

0
10. In Supplement No. 1 to part 774, revise the ``Related Controls'' 
paragraph in the ``List of Items Controlled'' of ECCN 3E003 to read as 
follows:

3E003 Other ``technology'' for the ``development'' or ``production'' 
of the following (see List of Items Controlled).

List of Items Controlled

Related Controls: See 3E001 for silicon-on-insulation (SOI) 
technology for the ``development'' or ``production'' related to 
radiation hardening of integrated circuits.


0
11. In Supplement No. 1 to Part 774, between the entries for ECCNs 
3E292 and 3E980, add an entry for ECCN 3E611 to read as follows:

3E611 ``Technology'' ``required'' for military electronics, as 
follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN.

[[Page 37573]]



 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to entire entry except 3E611.y.  NS Column 1
RS applies to entire entry except 3E611.y.  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry except 3E611.y.  See Sec.   746.1(b) for UN
                                             controls
 

List Based License Exceptions (see Part 740 for a description of all 
license exceptions)

CIV: N/A.
TSR: N/A.

Special Conditions for STA

STA: 1. Paragraph (c)(2) of License Exception STA (Sec.  
740.20(c)(2) of the EAR) may not be used for any ``technology'' in 
3E611. 2. Except for ``build-to-print technology,'' License 
Exception STA is not eligible for ``technology'' enumerated in ECCN 
3E611.b.

List of Items Controlled

Related Controls: Technical data directly related to articles 
enumerated in USML Category XI is controlled in USML Category XI(d).
Related Definitions: N/A.
Items:

    a. ``Technology'' (other than that controlled by 3E611.b or 
3E611.y) ``required'' for the ``development,'' ``production,'' 
operation, installation, maintenance, repair, overhaul, or 
refurbishing of commodities or software controlled by ECCN 3A611, 
3B611 or 3D611.
    b. ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of the following if controlled by ECCN 
3A611, including 3A611.x:
    b.1. Helix traveling wave tubes (TWTs);
    b.2. Transmit/receive or transmit modules;
    b.3. Microwave monolithic integrated circuits (MMIC); or
    b.4. Discrete microwave transistors.
    c. through x. [Reserved]
    y. ``Technology'' ``required'' for the ``production,'' 
``development,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of commodities or software enumerated in 
ECCNs 3A611.y or 3D611.y.


0
12. In Supplement No. 1 to Part 774, amend ECCN 4A003 by revising the 
License Requirements section to read as follows:

4A003 ``Digital computers'', ``electronic assemblies'', and related 
equipment therefor, as follows (see List of Items Controlled) and 
``specially designed'' components therefor.

License Requirements

Reason for Control: NS, MT, CC, AT.

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to 4A003.b and .c..............  NS Column 1
NS applies to 4A003.e and .g..............  NS Column 2
MT applies to 4A003.e when the parameters   MT Column 1
 in 3A101.a.2.b are met or exceeded.
CC applies to ``digital computers'' for     CC Column 1
 computerized finger-print equipment.
AT applies to entire entry (refer to 4A994  AT Column 1
 for controls on ``digital computers''
 with a APP >0.0128 but <=3.0 WT).
 


    Note 1: For all destinations, except those countries in Country 
Group E:1 of Supplement No. 1 to part 740 of the EAR, no license is 
required (NLR) for computers with an ``Adjusted Peak Performance'' 
(``APP'') not exceeding 3.0 Weighted TeraFLOPS (WT) and for 
``electronic assemblies'' described in 4A003.c that are not capable 
of exceeding an ``Adjusted Peak Performance'' (``APP'') exceeding 
3.0 Weighted TeraFLOPS (WT) in aggregation, except certain transfers 
as set forth in Sec.  746.3 (Iraq).


    Note 2: Special Post Shipment Verification reporting and 
recordkeeping requirements for exports of computers to destinations 
in Computer Tier 3 may be found in Sec.  743.2 of the EAR.

* * * * *

0
13. In Supplement No. 1 to Part 774, between the entries for ECCNs 
4A102 and 4A980, add an entry for ECCN 4A611 as follows:

4A611 Computers, and ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' ``specially designed'' therefor, ``specially 
designed'' for a military application that are not enumerated in any 
USML category are controlled by ECCN 3A611.


0
14. In Supplement No. 1 to Part 774, amend ECCN 5A001 by revising the 
Related Controls paragraph of the List of Items Controlled section, to 
read as follows:

5A001 Telecommunications systems, equipment, ``components'' and 
``accessories,'' as follows (see List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Related Controls: 1. See USML Category XV for controls on 
telecommunications equipment, including the types of equipment 
described in ECCN 5A001.a.1, and any other equipment used in 
satellites that is subject to the ITAR. See USML Category XI for 
controls on direction finding equipment including types of equipment 
in ECCN 5A001.e and any other military or intelligence electronic 
equipment subject to the ITAR. 2. See USML Category XI(a)(4)(iii) 
for controls on electronic attack and jamming equipment defined in 
5A001.f and .h that are subject to the ITAR. 3. See also ECCNs 
5A101, 5A980, and 5A991.
* * * * *

0
15. In Supplement No. 1 to Part 774, between the entries for ECCNs 
5A101 and 5A980, add an entry for ECCN 5A611 as follows:

5A611 Telecommunications equipment, and ``parts,'' ``components,'' 
``accessories,'' and ``attachments'' ``specially designed'' 
therefor, ``specially designed'' for a military application that are 
not enumerated in any USML category are controlled by ECCN 3A611.


0
16. In Supplement No. 1 to Part 774, between the entries for ECCNs 
6A226 and 6A991, add an entry for ECCN 6A611 as follows:

6A611 Acoustic systems and equipment, radar, and ``parts,'' 
``components,'' ``accessories,'' and ``attachments'' ``specially 
designed'' therefor, ``specially designed'' for a military 
application that are not enumerated in any USML category or other 
ECCN are controlled by ECCN 3A611.


0
17. In Supplement No. 1 to Part 774, ECCN 7A006, revise the Reasons for 
Control paragraph of the License Requirements section to read as 
follows:

7A006 Airborne altimeters operating at frequencies other than 4.2 to 
4.4 GHz inclusive and having any of the following (see List of Items 
Controlled).

License Requirements

Reason for Control: NS, MT, AT.

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to entire entry................  NS Column 1
MT applies to commodities in this entry     MT Column 1
 that meet or exceed the parameters of
 7A106.
AT applies to entire entry................  AT Column 1
 

* * * * *


0
18. In Supplement No. 1 to Part 774, between the entries for ECCNs 
7A117 and 7A994, add an entry for ECCN 7A611 as follows:

7A611 Navigation and avionics equipment and, systems and ``parts,'' 
``components,'' ``accessories,'' and ``attachments'' ``specially 
designed'' therefor, ``specially designed'' for a military

[[Page 37574]]

application that are not enumerated in any USML category or another 
``600 series'' ECCN are controlled by ECCN 3A611.


0
19. In Supplement No. 1 to Part 774, ECCN 7D101, revise the heading to 
read as follows:

7D101 ``Software'' ``specially designed'' or modified for the 
``use'' of equipment controlled for missile technology (MT) reasons 
by 7A001 to 7A006, 7A101 to 7A107, 7A115, 7A116, 7A117, 7B001, 
7B002, 7B003, 7B101, 7B102, or 7B103.
* * * * *


0
20. In Supplement No. 1 to Part 774, between the entries for ECCNs 
9A619 and 9A980, add an entry for ECCN 9A620 to read as follows:

9A620 Cryogenic and ``superconductive'' equipment, as follows (see 
list of items controlled).
Reason for Control: NS, RS, AT, UN.

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls
 

List Based License Exceptions (see Part 740 for a description of all 
license exceptions)

LVS: $1500.
GBS: N/A.
CIV: N/A.

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 9A620.

List of Items Controlled

Related Controls: Electronic items that are enumerated in USML 
Category XI or other USML categories, and technical data (including 
software) directly related thereto, are subject to the ITAR.
Related Definitions: N/A.
Items:

    a. Equipment ``specially designed'' to be installed in a vehicle 
for military ground, marine, airborne, or space applications, and 
capable of operating while in motion and of producing or maintaining 
temperatures below 103 K (-170[deg]C).

    Note to 9A620.a:  ECCN 9A620.a includes mobile systems 
incorporating or employing ``accessories'' or ``components'' 
manufactured from non-metallic or non-electrical conductive 
materials such as plastics or epoxy-impregnated materials.

    b. ``Superconductive'' electrical equipment (rotating machinery 
and transformers) ``specially designed'' to be installed in a 
vehicle for military ground, marine, airborne, or space 
applications, and capable of operating while in motion.

    Note to 9A620.b: ECCN 9A620.b. does not control direct-current 
hybrid homopolar generators that have single-pole normal metal 
armatures which rotate in a magnetic field produced by 
superconducting windings, provided those windings are the only 
superconducting components in the generator.


    c. through w. [Reserved].
    x. ``Parts,'' ``components,'' ``accessories'' and 
``attachments'' that are ``specially designed'' for a commodity 
controlled by ECCN 9A620.

    Note to 9A620.b: Forgings, castings, and other unfinished 
products, such as extrusions and machined bodies, that have reached 
a stage in manufacture where they are clearly identifiable by 
mechanical properties, material composition, geometry, or function 
as commodities controlled by ECCN 9A620.x are controlled by ECCN 
9A620.x.


0
21. In Supplement No. 1 to Part 774, between the entries for ECCNs 
9B619 and 9B990, add an entry for ECCN 9B620 to read as follows:

9B620 Test, inspection, and production commodities for cryogenic and 
``superconductive'' equipment (see List of Items controlled).

License Requirements

Reason for Control: NS, RS, AT, UN.

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls
 

List Based License Exceptions (see Part 740 for a description of all 
license exceptions)

LVS: $1500.
GBS: N/A.
CIV: N/A.

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any item in 9B620.

List of Items Controlled

Related Controls: N/A.
Related Definitions: N/A.
Items:

    a. Test, inspection, and production end items and equipment 
``specially designed'' for the ``development,'' ``production,'' 
repair, overhaul or refurbishing of items controlled in ECCN 9A620.
    b. [Reserved]


0
22. In Supplement No. 1 to Part 774, between the entries for ECCNs 
9D619 and 9D990, add an entry for ECCN 9D620 to read as follows:

9D620 ``Software'' ``specially designed'' for cryogenic and 
``superconductive'' equipment, as follows (see List of Items 
Controlled).

License Requirements

Reasons for Control: NS, RS, AT, UN.

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls
 

List Based License Exceptions (see Part 740 for a description of all 
license exceptions)

CIV: N/A.
TSR: N/A.

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any ``software'' in 9D620.

List of Items Controlled

Related Controls: ``Software'' directly related to articles 
enumerated on USML are subject to the control of that USML category.
Related Definitions: N/A.
Items: Software ``specially designed'' for the ``development,'' 
``production,'' operation, or maintenance of commodities controlled 
by ECCNs 9A620 or 9B620.


0
23. In Supplement No. 1 to Part 774, between the entries for ECCNs 
9E619 and 9E990, add an entry for ECCN 9E620 to read as follows:

9E620 Technology ``required'' for cryogenic and ``superconductive'' 
equipment, as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, RS, AT, UN.

 
                                              Country chart  (see Supp.
                Control(s)                       No. 1 to part 738)
 
NS applies to entire entry................  NS Column 1
RS applies to entire entry................  RS Column 1
AT applies to entire entry................  AT Column 1
UN applies to entire entry................  See Sec.   746.1(b) for UN
                                             controls
 

List Based License Exceptions (see Part 740 for a description of all 
license exceptions)

CIV: N/A.
TSR: N/A.

Special Conditions for STA

STA: Paragraph (c)(2) of License Exception STA (Sec.  740.20(c)(2) 
of the EAR) may not be used for any technology in 9E620.

List of Items Controlled

Related Controls: Technical data directly related to articles 
enumerated on USML are

[[Page 37575]]

subject to the control of that USML category.
Related Definitions: N/A.
Items: ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of commodities or software controlled by 
ECCN 9A620, 9B620 or 9D620.


0
24. Supplement No. 5 to Part 774 is revised by adding to the table, in 
numerical order, item No. 3 under the heading ``0D521. Software'' and 
item No. 2 to under the heading ``0E521. Technology'' to read as 
follows:

SUPPLEMENT NO. 5 TO PART 774--ITEMS CLASSIFIED UNDER ECCNS 0A521, 
0B521, 0C521, 0D521 AND 0E521

* * * * *

----------------------------------------------------------------------------------------------------------------
 
----------------------------------------------------------------------------------------------------------------
Item descriptor......................  Date of initial or       Date when the item will  Item-specific license
Note: The description must match by     subsequent BIS           be designated EAR99      exception eligibility.
 model number or a broader descriptor   classification.          unless reclassified in
 that does not necessarily need to be  (ID = initial date; SD    another ECCN or the
 company specific.                      = subsequent date).      0Y521 classification
                                                                 is reissued.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                                 0D521. Software
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
No. 3................................  7/1/2014...............  7/1/2015...............  License Exception GOV
``Software'' ``specially designed''                                                       under Sec.
 or modified for the ``development''                                                      740.11(b)(2)(ii) only.
 of ``technology'' controlled by
 0E521 No. 2.
----------------------------------------------------------------------------------------------------------------
                                                0E521. Technology
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
No. 2................................  7/1/2014...............  7/1/2015...............  License Exception GOV
``Technology'' ``required'' for the                                                       under Sec.
 ``development'' of aircraft wing                                                         740.11(b)(2)(ii) only.
 folding systems, designed for
 aircraft powered by gas turbine
 engines.
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------


    Dated: June 19, 2014.
Kevin J. Wolf,
Assistant Secretary of Commerce for Export Administration.
[FR Doc. 2014-14683 Filed 6-30-14; 8:45 am]
BILLING CODE 3510-33-P