Amendment to the International Traffic in Arms Regulations: Exports and Temporary Imports Made to or on Behalf of a Department or Agency of the U.S. Government; Procedures for Obtaining State Department Authorization To Export Items Subject to the Export Administration Regulations; Revision to the Destination Control Statement; and Other Changes, 29565-29569 [2015-12295]

Download as PDF Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Proposed Rules PART 11—ANNUAL CHARGES UNDER PART I OF THE FEDERAL POWER ACT 1. The authority citation for Part 11 continues to read as follows: ■ Authority: 16 U.S.C. 792–828c; 42 U.S.C. 7101–7352. 2. Revise § 11.1(c)(5) to read as follows: ■ § 11.1 Costs of administration. * * * * * (c) * * * (5) For unconstructed projects, the assessments start two years after the effective date of the license or exemption. For constructed projects, the assessments start on the effective date of the license or exemption, except for any new capacity authorized therein. The assessments for new authorized capacity start two years after the effective date of the license, exemption, or amendment, authorizing such new capacity. In the event that assessment commences during a fiscal year, the charges will be prorated based on the date of commencement. * * * * * [FR Doc. 2015–12432 Filed 5–21–15; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF STATE 22 CFR Parts 120, 123, 124, 125, and 126 RIN 1400–AC88 [Public Notice 9139] Amendment to the International Traffic in Arms Regulations: Exports and Temporary Imports Made to or on Behalf of a Department or Agency of the U.S. Government; Procedures for Obtaining State Department Authorization To Export Items Subject to the Export Administration Regulations; Revision to the Destination Control Statement; and Other Changes Department of State. Proposed rule. AGENCY: ACTION: As part of the President’s Export Control Reform (ECR) effort, the Department of State is proposing to amend the International Traffic in Arms Regulations (ITAR) to: clarify regulations pertaining to the export of items subject to the Export Administration Regulations (EAR); revise the licensing exemption for exports made to or on behalf of an agency of the U.S. government; revise the destination control statement in ITAR § 123.9 to harmonize the language asabaliauskas on DSK5VPTVN1PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 17:08 May 21, 2015 Jkt 235001 with the EAR; and make several minor edits for clarity. The proposed revisions contained in this rule are part of the Department of State’s retrospective plan under E.O. 13563. DATES: The Department of State will accept comments on this proposed rule until July 6, 2015. ADDRESSES: Interested parties may submit comments by one of the following methods: • Email: DDTCPublicComments@ state.gov with the subject line, ‘‘ITAR Amendment—To or on behalf of’’; • Internet: At www.regulations.gov, search for this proposed rule by using this proposed rule’s RIN (1400–AC88). Comments received after that date will be considered if feasible, but consideration cannot be assured. Those submitting comments should not include any personally identifying information they do not desire to be made public or information for which a claim of confidentiality is asserted because those comments and/or transmittal emails will be made available for public inspection and copying after the close of the comment period via the Directorate of Defense Trade Controls Web site at www.pmddtc.state.gov. Parties who wish to comment anonymously may do so by submitting their comments via www.regulations.gov, leaving the fields that would identify the commenter blank and including no identifying information in the comment itself. Comments submitted via www.regulations.gov are immediately available for public inspection. FOR FURTHER INFORMATION CONTACT: Mr. C. Edward Peartree, Director, Office of Defense Trade Controls Policy, Department of State, telephone (202) 663–2792; email DDTCPublicComments@state.gov. ATTN: ITAR Amendment—To or on behalf of. The Department of State’s full retrospective plan can be accessed at http://www.state.gov/documents/ organization/181028.pdf. SUPPLEMENTARY INFORMATION: The Department proposes to make the following revisions in this rule: Items subject to the EAR: This proposed rule adds clarifying language to various provisions of the ITAR pertaining to the export of items subject to the EAR pursuant to a Department of State authorization, when such exports are made in conjunction with items subject to the ITAR. These revisions include guidance on the use of licensing exemptions for export of such items, as well as clarification that items subject to the EAR are not considered defense articles, even when exported under a PO 00000 Frm 00015 Fmt 4702 Sfmt 4702 29565 license or other approval (to include exemptions, see § 120.20) issued by the Department of State. Items exported to or on behalf of an agency of the U.S. government: This proposed rule revises the licensing exemption language in ITAR § 126.4 to clarify when exports may be made to or on behalf of an agency of the U.S. government without a license. Additionally, the scope of this exemption is expanded in that it will allow for permanent exports, rather than only temporary exports. The Department seeks comments from the public on whether the proposed revision adequately eliminates ambiguity as to when the exemption may be applied, and whether it creates any unintended compliance burden. Revision to the Destination Control Statement: This proposed rule revises the destination control statement in ITAR § 123.9 to harmonize its language with the EAR. This change is being made to facilitate the President’s Export Control Reform initiative, which has transferred thousands of formerly ITARcontrolled defense article parts and components, along with other items, to the Commerce Control List in the EAR under the jurisdiction of the Department of Commerce. This change in jurisdiction for many parts and components, along with other items, for military systems has increased the incidence of exporters shipping articles subject to both the ITAR and the EAR in the same shipment. Both regulations have a mandatory destination control statement that must be on the export control documents for shipments that include items subject to both sets of regulations. This has caused confusion to exporters as to which statement to include on mixed shipments, or whether to include both. Harmonizing these statements will ease the regulatory burden on exporters. Procedures for Obtaining State Department Authorization to Export Items Subject to the EAR: This proposed rule revises the ITAR in a number of places to clarify how parties may obtain authorization from the Department to export or retransfer items subject to the EAR. Section 120.5 is revised to clarify that items subject to the EAR may be authorized pursuant to an exemption with certain conditions. A new paragraph (d) is added to ITAR § 123.9 to clarify the requirements for retransferring items subject to the EAR pursuant to a letter of General Correspondence. Section 124.16 is revised to clarify that the special retransfer authorization of this section may be used for items subject to the EAR with certain conditions. E:\FR\FM\22MYP1.SGM 22MYP1 29566 Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Proposed Rules Other changes in this rule: The Department proposes to make a number of minor edits to the ITAR that will address erroneous or outdated reporting requirements. This rule would remove the requirement to provide seven paper copies for various export license requests in §§ 124.7, 124.12, 124.14, 125.2, 125.7 and 126.9, which has not been necessary for many years due to the use of electronic license submissions, change the identification of the agency responsible for permanent import authorizations in § 123.4 from the Department of the Treasury to Department of Justice, and impose the Code of Federal Regulations paragraph structure on § 124.8. Additionally, the Department proposes removing the pilot filing requirement found in § 123.13, given that it does not take into account the practices of modern airport operations and is no longer necessary. Regulatory Analysis and Notices Administrative Procedure Act The Department of State is of the opinion that controlling the import and export of defense articles and services is a foreign affairs function of the United States government and that rules implementing this function are exempt from §§ 553 (rulemaking) and 554 (adjudications) of the Administrative Procedure Act (APA). Although the Department is of the opinion that this rule is exempt from the rulemaking provisions of the APA, the Department is publishing this rule with a 45-day provision for public comment and without prejudice to its determination that controlling the import and export of defense services is a foreign affairs function. Regulatory Flexibility Act Since the Department of State is of the opinion that this proposed rule is exempt from the provisions of 5 U.S.C. 553, there is no requirement for an analysis under the Regulatory Flexibility Act. asabaliauskas on DSK5VPTVN1PROD with PROPOSALS Unfunded Mandates Reform Act of 1995 This proposed rulemaking does not involve a mandate that will result in the expenditure by State, local, and tribal governments, in the aggregate, or by the private sector, of $100 million or more in any year and it will not significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995. VerDate Sep<11>2014 17:08 May 21, 2015 Jkt 235001 Small Business Regulatory Enforcement Fairness Act of 1996 The Department does not believe this rulemaking is a major rule as defined in 5 U.S.C. 804. Executive Orders 12372 and 13132 This proposed rulemaking will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, in accordance with Executive Order 13132, it is determined that this proposed rulemaking does not have sufficient federalism implications to require consultations or warrant the preparation of a federalism summary impact statement. The regulations implementing Executive Order 12372 regarding intergovernmental consultation on Federal programs and activities do not apply to this proposed rulemaking. Executive Orders 12866 and 13563 Executive Orders 12866 and 13563 direct agencies to assess 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, distributed impacts, and equity). These executive orders stress the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. These rules have been designated ‘‘significant regulatory actions,’’ although not economically significant, under Executive Order 12866. Accordingly, this proposed rule has been reviewed by the Office of Management and Budget (OMB). Executive Order 12988 The Department of State has reviewed this proposed rulemaking in light of Executive Order 12988 to eliminate ambiguity, minimize litigation, establish clear legal standards, and reduce burden. Executive Order 13175 The Department of State has determined that this proposed rulemaking will not have tribal implications, will not impose substantial direct compliance costs on Indian tribal governments, and will not preempt tribal law. Accordingly, the provisions of Executive Order 13175 do not apply to this proposed rulemaking. PO 00000 Frm 00016 Fmt 4702 Sfmt 4702 Paperwork Reduction Act This rule does not impose any new reporting or recordkeeping requirements subject to the Paperwork Reduction Act, 44 U.S.C. Chapter 35. This rule removes provisions that previously required the applicant to provide seven additional copies for various export license requests. The Department believes that there will be little or no practical burden reduction since the use of electronic methods of filing has made the requirement for ‘‘seven copies’’ obsolete. The following information collections are affected by this rulemaking: 1. Application/License for Permanent Export of Unclassified Defense Articles and Related Unclassified Technical Data, OMB Control No. 1405–0003; 2. Application/License for Temporary Import of Unclassified Defense Articles, OMB Control No. 1405–0013; 3. Application/License for the Permanent/Temporary Export or Temporary Import of Classified Defense Articles and Classified Technical Data, OMB Control No. 1405–0022; 4. Application/License for Temporary Export of Unclassified Defense Articles, OMB Control No. 1405–0023; 5. Application for Amendment to License for Export or Import of Classified or Unclassified Defense Articles and Related Technical Data OMB Control No. 1405–0092; 6. Request for Approval of Manufacturing License Agreements, Technical Assistance Agreements, and Other Agreements, OMB Control No. 1405–0093; 7. Request to Change End User, End Use and/or Destination of Hardware, OMB Control No. 1405–00173; and 8. Request for Advisory Opinion, OMB Control No. 1405–0174. The Department is requesting public comment on its estimate that there will be little or no change in the burdens associated with these information collections as a result of this rulemaking. Date: Comments will be accepted until July 21, 2015. Addresses: Interested parties may submit comments within 60 days of the date of publication by one of the following methods: • Email: DDTCPublicComments@ state.gov, with the subject line ‘‘AC88 PRA Burden Reduction’’; • Internet: At www.regulations.gov; please search for this proposed rule by using this proposed rule’s RIN (1400– AC88) and indicate that you are commenting on the paperwork burden change in any (or all) of the eight information collections identified above. E:\FR\FM\22MYP1.SGM 22MYP1 Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Proposed Rules List of Subjects PART 123—LICENSES FOR THE EXPORT AND TEMPORARY IMPORT OF DEFENSE ARTICLES 22 CFR Parts 120 and 125 Arms and munitions, Classified information, Exports. 3. The authority citation for part 123 continues to read as follows: ■ 22 CFR Part 123 Arms and munitions, Exports, Reporting and recordkeeping requirements. Authority: Secs. 2, 38, and 71, Pub. L. 90– 629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2753; 22 U.S.C. 2651a; 22 U.S.C. 2776; Pub. L. 105–261, 112 Stat. 1920; Sec. 1205(a), Pub. L. 107–228; Section 1261, Pub. L. 112–239; E.O. 13637, 78 FR 16129. 22 CFR Part 124 Arms and munitions, Exports, Technical assistance. 22 CFR Part 126 Arms and munitions, Exports. Accordingly, for the reasons set forth above, Title 22, Chapter I, Subchapter M, parts 120, 123, 124, 125, and 126 are proposed to be amended as follows: PART 120—PURPOSE AND DEFINITIONS 1. The authority citation for part 120 continues to read as follows: ■ Authority: Secs. 2, 38, and 71, Pub. L. 90– 629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2794; 22 U.S.C. 2651a; Pub. L. 105–261, 112 Stat. 1920; Pub. L. 111–266; Section 1261, Pub. L. 112–239; E.O. 13637, 78 FR 16129. 2. Section 120.5 is amended by revising the section heading and paragraph (b) to read as follows: ■ § 120.5 Relation to regulations of other agencies; export of items subject to the EAR. asabaliauskas on DSK5VPTVN1PROD with PROPOSALS * * * * * (b) A license or other approval (see § 120.20) from the Department of State granted in accordance with this subchapter may also authorize the export of items subject to the EAR (see § 120.42). Items subject to the EAR may be exported pursuant to an exemption (see parts 124, 125, and 126 of this subchapter), provided the items subject to the EAR are for use in or with defense articles authorized under a license or other approval. Separate approval from the Department of Commerce is not required for these items when approved for export under a Department of State license or other approval. Those items subject to the EAR exported pursuant to a Department of State license or other approval would remain under the jurisdiction of the Department of Commerce for any subsequent transactions. The inclusion of items subject to the EAR on a Department of State license or other approval does not change the licensing jurisdiction of the items. (See § 123.1(b) of this subchapter for guidance on identifying items subject to the EAR in a license application to the Department of State.) VerDate Sep<11>2014 17:08 May 21, 2015 Jkt 235001 4. Section 123.4 is amended by revising paragraph (a)(4) to read as follows: ■ § 123.4 Temporary import license exemptions. (a) * * * (4) Has been rejected for permanent import by the Department of Justice and is being returned to the country from which it was shipped; or * * * * * ■ 5. Section 123.9 is amended by revising paragraphs (b)(1) and (2), and adding paragraph (d) to read as follows: § 123.9 Country of ultimate destination and approval of reexports or retransfers. * * * * * (b) * * * (1) The exporter must incorporate the following information as an integral part of the bill of lading, air waybill, or other shipping document, and the purchase documentation or invoice whenever defense articles are to be exported, retransferred, or reexported pursuant to a license or other approval under this subchapter: (i) The country of ultimate destination; (ii) The end-user; (iii) The license or other approval number or exemption citation; and (iv) The following statement: ‘‘These items are controlled and authorized by the U.S. government for export only to the country of ultimate destination for use by the end-user herein identified. They may not be resold, transferred, or otherwise be disposed of, to any other country or to any person other than the authorized end-user or consignee(s), either in their original form or after being incorporated into other items, without first obtaining approval from the U.S. government or as otherwise authorized by U.S. law and regulations.’’ (2) When exporting items subject to the EAR (see §§ 120.42 and 123.1(b) of this subchapter) pursuant to a Department of State license or other approval, the U.S. exporter must also provide the end-user and consignees with the appropriate EAR classification information for each item exported PO 00000 Frm 00017 Fmt 4702 Sfmt 4702 29567 pursuant to a U.S. Munitions List ‘‘(x)’’ paragraph. This includes the Export Control Classification Number (ECCN) or EAR99 designation. * * * * * (d) The Directorate of Defense Trade Controls may authorize reexport or retransfer of an item subject to the EAR provided that: (1) The item was initially exported, reexported or transferred pursuant to a Department of State license or other approval; (2) The item is for end-use in or with a defense article; and, (3) All requirements of paragraph (c) of this section are satisfied for the item subject to the EAR, as well as for the associated defense article. * * * * * ■ 6. Revise § 123.13 to read as follows: § 123.13 Domestic aircraft shipments via a foreign country. A license is not required for the shipment by air of a defense article from one location in the United States to another location in the United States via a foreign country. PART 124—AGREEMENTS, OFF SHORE PROCUREMENT, AND OTHER DEFENSE SERVICES 7. The authority citation for part 124 continues to read as follows: ■ Authority: Sec. 2, 38, and 71, Pub. L. 90– 629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2651a; 22 U.S.C. 2776; Pub. L. 105–261; Section 1261, Pub. L. 112–239; E.O. 13637, 78 FR 16129. 8. Section 124.7 is amended by designating the introductory text as paragraph (a), adding and reserving paragraph (b), and revising paragraph (a)(1) to read as follows: ■ § 124.7 Information required in all manufacturing license agreements and technical assistance agreements. (a) * * * (1) The agreement must describe the defense article to be manufactured and all defense articles to be exported, including any test and support equipment or advanced materials. They should be described by military nomenclature, contract number, National Stock Number, nameplate data, or other specific information. Only defense articles listed in the agreement will be eligible for export under the exemption in § 123.16(b)(1) of this subchapter. * * * (b) [Reserved] ■ 9. Section 124.8 is amended by designating the introductory text as paragraph (a) and adding and reserving paragraph (b), as follows: E:\FR\FM\22MYP1.SGM 22MYP1 29568 Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Proposed Rules § 124.8 Clauses required both in manufacturing license agreements and technical assistance agreements. territories of the countries listed in paragraph (a)(2) of this section or the United States. (b) Permanent retransfer of hardware is not authorized pursuant to paragraph (a) of this section. * * * * * (b) [Reserved] * * * * * ■ 10. Section 124.12 is amended by revising the introductory text of paragraph (a) to read as follows: PART 125—LICENSES FOR THE EXPORT OF TECHNICAL DATA AND CLASSIFIED DEFENSE ARTICLES § 124.12 Required information in letters of transmittal. (a) An application for the approval of a manufacturing license or technical assistance agreement with a foreign person must be accompanied by an explanatory letter. The explanatory letter shall contain: * * * * * ■ 11. Section 124.14 is amended by revising the introductory text of paragraph (e) to read as follows: § 124.14 Exports to warehouses or distribution points outside the United States. * * * * * (e) Transmittal letters. Requests for approval of warehousing and distribution agreements with foreign persons must be made by letter. The letter shall contain: * * * * * ■ 12. Section 124.16 is revised to read as follows: asabaliauskas on DSK5VPTVN1PROD with PROPOSALS (a) The provisions of § 124.8(a)(5) notwithstanding, the Department may approve access to unclassified defense articles and items subject to the EAR (see § 120.42 of this subchapter) exported in furtherance of or produced as a result of a TAA/MLA, retransfer of technical data and defense services, and retransfer of technology subject to the EAR and authorized under a TAA/MLA, to individuals who are dual national or third-country national employees of the foreign signatory or its approved sublicensees, provided that: (1) The transfer is to dual nationals or third-country nationals who are bona fide regular employees, directly employed by the foreign signatory or approved sub-licensees; (2) The individuals are exclusively of countries that are members of NATO, the European Union, Australia, Japan, New Zealand, and Switzerland; (3) Their employer is a signatory to the agreement or has executed a NonDisclosure Agreement; and (4) The retransfer takes place completely within the physical 17:08 May 21, 2015 Jkt 235001 Authority: Secs. 2 and 38, Pub. L. 90–629, 90 Stat. 744 (22 U.S.C. 2752, 2778); 22 U.S.C. 2651a; E.O. 13637, 78 FR 16129. 14. Section 125.2 is amended by revising paragraph (a) to read as follows: ■ § 125.2 data. Exports of unclassified technical (a) License. A license (DSP–5) is required for the export of unclassified technical data unless the export is exempt from the licensing requirements of this subchapter. In the case of a plant visit, details of the proposed discussions must be transmitted to the Directorate of Defense Trade Controls for an appraisal of the technical data. * * * * * ■ 15. Section 125.7 is amended by revising paragraph (b) to read as follows: § 125.7 Procedures for the export of classified technical data and other classified defense articles. § 124.16 Special retransfer authorizations for unclassified defense articles and defense services to member states of NATO and the European Union, Australia, Japan, New Zealand, and Switzerland. VerDate Sep<11>2014 13. The authority citation for part 126 continues to read as follows: ■ * * * * * (b) An application for the export of classified technical data or other classified defense articles must be accompanied by a completed Form DSP–83 (see § 123.10 of this subchapter). All classified materials accompanying an application must be transmitted to the Directorate of Defense Trade Controls in accordance with the procedures contained in the Department of Defense National Industrial Security Program Operating Manual (unless such requirements are inconsistent with guidance provided by the Directorate of Defense Trade Controls, in which case the latter guidance must be followed). PART 126—GENERAL POLICIES AND PROVISIONS 16. The authority citation for part 126 continues to read as follows: ■ Authority: Secs. 2, 38, 40, 42, and 71, Pub. L. 90–629, 90 Stat. 744 (22 U.S.C. 2752, 2778, 2780, 2791, and 2797); 22 U.S.C. 2651a; 22 U.S.C. 287c; E.O. 12918, 59 FR 28205; 3 CFR, 1994 Comp., p. 899; Sec. 1225, Pub. L. 108– 375; Sec. 7089, Pub. L. 111–117; Pub. L. 111– 266; Section 7045, Pub. L. 112–74; Section 7046, Pub. L. 112–74; E.O. 13637, 78 FR 16129. 17. Section 126.4 is revised to read as follows: ■ PO 00000 Frm 00018 Fmt 4702 Sfmt 4702 § 126.4 Exports and temporary imports made to or on behalf of a department or agency of the U.S. government. (a) A license is not required for the export or temporary import of a defense article or the performance of a defense service, when made: (1) To a department or agency of the U.S. government for official use. Defense articles exported or temporarily imported under this provision may only be provided to a regular employee or contractor support personnel of the U.S. government; Note 1 to paragraph (a): Contractor support personnel means those U.S. persons who provide administrative, managerial, scientific or technical support under contract with a U.S. government department or agency within a U.S. government owned or operated facility or under the direct supervision of a regular U.S. government employee (e.g., Federally Funded Research and Development Center or Systems Engineering and Technical Assistance contractors). For purposes of this section, private security contractors are not considered contractor support personnel, and ‘‘direct supervision’’ refers to the control over the manner and means in which contractor support personnel conduct their day-to-day work activities as well as control over the contractor’s access to defense articles authorized under this paragraph. Note 2 to paragraph (a): Any retransfer, reexport, disposal, or change in end-user of a defense article exported pursuant to this section must be performed in accordance with § 123.9 of this subchapter. (2)(i) By, or on behalf of, a department or agency of the U.S. government for carrying out any foreign assistance, cooperative project, or sales program authorized by law and subject to control by the President by other means, provided: (A) Items subject to the EAR and controlled for missile technology (MT) reasons (see § 742.5 of the EAR (15 CFR 742.5) are not authorized for export under this subsection; and (B) The United States government performs or directs all aspects of the transaction (export, carriage, and delivery abroad) or the export is covered by a U.S. government Bill of Lading. (ii) This section does not authorize a U.S. government agency to act as a transmittal agent on behalf of a private individual or firm, either as a convenience or in satisfaction of security requirements. Note to paragraph (a)(2): Approval of a foreign assistance, cooperative project, or sales program authorizing a U.S. government department and agency to permanently export a defense article described on the Missile Technology Control Regime Annex should be reviewed by the Missile Technology Export Committee, unless E:\FR\FM\22MYP1.SGM 22MYP1 Federal Register / Vol. 80, No. 99 / Friday, May 22, 2015 / Proposed Rules authorized by statutory authority providing export authority notwithstanding the Arms Export Control Act. COURT SERVICES AND OFFENDER SUPERVISION AGENCY FOR THE DISTRICT OF COLUMBIA (b) This section does not authorize any department or agency of the U.S. government to make any export that is otherwise prohibited by virtue of other administrative provisions or by any statute. (c) An Electronic Export Information (EEI) filing, required under § 123.22 of this subchapter, and a written statement by the exporter certifying that these requirements have been met must be presented at the time of export to the appropriate Port Directors of U.S. Customs and Border Protection or Department of Defense transmittal authority. For any export made pursuant to paragraph (a)(1) of this section, the shipment documents (bill of lading, airway bill, or other transportation documents) must include the following statement: ‘‘For official use by [insert U.S. government department or agency]. Property will not enter the trade of the country to which it is shipped. No export license required per CFR Title 22, section 126.4. U.S. government point of contact: [insert name and telephone number]’’. ■ 18. Section 126.9 is amended by revising paragraph (a) to read as follows: 28 CFR Part 810 asabaliauskas on DSK5VPTVN1PROD with PROPOSALS § 126.9 Advisory opinions and related authorizations. (a) Advisory opinion. A person may request information from the Directorate of Defense Trade Controls on whether it would likely grant a license or other approval for a particular defense article or defense service to a particular country. Such information from the Directorate of Defense Trade Controls is issued on a case-by-case basis and applies only to the particular matters presented to the Directorate of Defense Trade Controls. These opinions are not binding on the Department of State and may not be used in future matters before the Department. A request for an advisory opinion must be made in writing and must outline in detail the equipment, its usage, the security classification (if any) of the articles or related technical data, and the country or countries involved. * * * * * Rose E. Gottemoeller, Under Secretary, Arms Control and International Security, Department of State. [FR Doc. 2015–12295 Filed 5–21–15; 8:45 am] BILLING CODE 4710–25–P VerDate Sep<11>2014 17:08 May 21, 2015 Jkt 235001 RIN 3225–AA00 Community Supervision: Administrative Sanctions and GPS Monitoring as a Supervision Tool Court Services and Offender Supervision Agency for the District of Columbia. ACTION: Proposed rule. AGENCY: In this document, the Court Services and Offender Supervision Agency for the District of Columbia (CSOSA) is proposing to amend its current rule regarding the conditions of release requirements for offenders under CSOSA supervision. In addition, CSOSA will expand the language of the regulation to detail and provide notice of when CSOSA Community Supervision Officers will use electronic monitoring as a tool to assist in supervision. DATES: Comments must be submitted July 21, 2015. ADDRESSES: Address all comments concerning this proposed rule to the Office of General Counsel, CSOSA, 13th Floor, 633 Indiana Avenue NW., Washington, DC 20004. FOR FURTHER INFORMATION CONTACT: Stephanie Carrigg, Assistant General Counsel, at (202) 220–5352 or by email at stephanie.carrigg@csosa.gov. Questions about this publication are welcome, but inquiries concerning individual cases cannot be answered over the telephone. SUPPLEMENTARY INFORMATION: The Court Services and Offender Supervision Agency for the District of Columbia (CSOSA) is proposing to amend its regulations concerning the conditions of release requirements for offenders under CSOSA supervision. Specifically, these regulations pertain to the conditions of release that are imposed on an offender when under CSOSA supervision; specifically, the requirement to maintain a certain frequency of face-toface contact with one’s community supervision officer, and the conditions of release that are articulated in the accountability contract that the offender signs with CSOSA. These regulations also detail the consequences that an offender may face for violating the conditions of his or her supervision. With this amendment, CSOSA will revise the language to reflect that the regulations apply to probationers as well as parolees, and to offenders who SUMMARY: PO 00000 Frm 00019 Fmt 4702 Sfmt 4702 29569 are under supervised release. In addition, CSOSA will expand the language of the regulation to detail and provide notice of when CSOSA Community Supervision Officers will use electronic monitoring as a tool to assist in supervision. Currently, the regulations only reference electronic monitoring as an administrative sanction for an offender who has violated the general or specific conditions of release or who has engaged in criminal activity. The amended language will specify the circumstances under which electronic monitoring is used as a supervision tool, including but not limited to: instances when CSOSA’s Community Supervision Services (CSS) Division issues directives to place offenders who fit a certain criminal behavioral pattern on electronic monitoring; and instances when CSS makes an individualized determination to place an offender on electronic monitoring based on an offender’s noncompliance with the conditions of his supervised release or for other extenuating circumstances. Matters of Regulatory Procedure Administrative Procedure Act CSOSA is publishing the proposed rule for notice and comment as required by 5 U.S.C. 553(b)(3)(B). Executive Order 12866 CSOSA has determined that the proposed rule is not a significant rule within the meaning of Executive Order 12866. Executive Order 13132 The proposed rule will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Under Executive Order 13132, this rule does not have sufficient federalism implications requiring a Federalism Assessment. Regulatory Flexibility Act The proposed rule will not have a significant economic impact upon a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 605(b). Unfunded Mandates Reform Act of 1995 The proposed rule will not cause State, local, or tribal governments, or the private sector, to spend $100,000,000 or more in any one year, and it will not significantly or uniquely affect small governments. No action under the Unfunded Mandates Reform Act of 1995 is necessary. E:\FR\FM\22MYP1.SGM 22MYP1

Agencies

[Federal Register Volume 80, Number 99 (Friday, May 22, 2015)]
[Proposed Rules]
[Pages 29565-29569]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12295]


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DEPARTMENT OF STATE

22 CFR Parts 120, 123, 124, 125, and 126

RIN 1400-AC88
[Public Notice 9139]


Amendment to the International Traffic in Arms Regulations: 
Exports and Temporary Imports Made to or on Behalf of a Department or 
Agency of the U.S. Government; Procedures for Obtaining State 
Department Authorization To Export Items Subject to the Export 
Administration Regulations; Revision to the Destination Control 
Statement; and Other Changes

AGENCY: Department of State.

ACTION: Proposed rule.

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SUMMARY: As part of the President's Export Control Reform (ECR) effort, 
the Department of State is proposing to amend the International Traffic 
in Arms Regulations (ITAR) to: clarify regulations pertaining to the 
export of items subject to the Export Administration Regulations (EAR); 
revise the licensing exemption for exports made to or on behalf of an 
agency of the U.S. government; revise the destination control statement 
in ITAR Sec.  123.9 to harmonize the language with the EAR; and make 
several minor edits for clarity. The proposed revisions contained in 
this rule are part of the Department of State's retrospective plan 
under E.O. 13563.

DATES: The Department of State will accept comments on this proposed 
rule until July 6, 2015.

ADDRESSES: Interested parties may submit comments by one of the 
following methods:
     Email: DDTCPublicComments@state.gov with the subject line, 
``ITAR Amendment--To or on behalf of'';
     Internet: At www.regulations.gov, search for this proposed 
rule by using this proposed rule's RIN (1400-AC88).
    Comments received after that date will be considered if feasible, 
but consideration cannot be assured. Those submitting comments should 
not include any personally identifying information they do not desire 
to be made public or information for which a claim of confidentiality 
is asserted because those comments and/or transmittal emails will be 
made available for public inspection and copying after the close of the 
comment period via the Directorate of Defense Trade Controls Web site 
at www.pmddtc.state.gov. Parties who wish to comment anonymously may do 
so by submitting their comments via www.regulations.gov, leaving the 
fields that would identify the commenter blank and including no 
identifying information in the comment itself. Comments submitted via 
www.regulations.gov are immediately available for public inspection.

FOR FURTHER INFORMATION CONTACT: Mr. C. Edward Peartree, Director, 
Office of Defense Trade Controls Policy, Department of State, telephone 
(202) 663-2792; email DDTCPublicComments@state.gov. ATTN: ITAR 
Amendment--To or on behalf of. The Department of State's full 
retrospective plan can be accessed at http://www.state.gov/documents/organization/181028.pdf.

SUPPLEMENTARY INFORMATION: The Department proposes to make the 
following revisions in this rule:
    Items subject to the EAR: This proposed rule adds clarifying 
language to various provisions of the ITAR pertaining to the export of 
items subject to the EAR pursuant to a Department of State 
authorization, when such exports are made in conjunction with items 
subject to the ITAR. These revisions include guidance on the use of 
licensing exemptions for export of such items, as well as clarification 
that items subject to the EAR are not considered defense articles, even 
when exported under a license or other approval (to include exemptions, 
see Sec.  120.20) issued by the Department of State.
    Items exported to or on behalf of an agency of the U.S. government: 
This proposed rule revises the licensing exemption language in ITAR 
Sec.  126.4 to clarify when exports may be made to or on behalf of an 
agency of the U.S. government without a license. Additionally, the 
scope of this exemption is expanded in that it will allow for permanent 
exports, rather than only temporary exports. The Department seeks 
comments from the public on whether the proposed revision adequately 
eliminates ambiguity as to when the exemption may be applied, and 
whether it creates any unintended compliance burden.
    Revision to the Destination Control Statement: This proposed rule 
revises the destination control statement in ITAR Sec.  123.9 to 
harmonize its language with the EAR. This change is being made to 
facilitate the President's Export Control Reform initiative, which has 
transferred thousands of formerly ITAR-controlled defense article parts 
and components, along with other items, to the Commerce Control List in 
the EAR under the jurisdiction of the Department of Commerce.
    This change in jurisdiction for many parts and components, along 
with other items, for military systems has increased the incidence of 
exporters shipping articles subject to both the ITAR and the EAR in the 
same shipment. Both regulations have a mandatory destination control 
statement that must be on the export control documents for shipments 
that include items subject to both sets of regulations. This has caused 
confusion to exporters as to which statement to include on mixed 
shipments, or whether to include both. Harmonizing these statements 
will ease the regulatory burden on exporters.
    Procedures for Obtaining State Department Authorization to Export 
Items Subject to the EAR: This proposed rule revises the ITAR in a 
number of places to clarify how parties may obtain authorization from 
the Department to export or retransfer items subject to the EAR. 
Section 120.5 is revised to clarify that items subject to the EAR may 
be authorized pursuant to an exemption with certain conditions. A new 
paragraph (d) is added to ITAR Sec.  123.9 to clarify the requirements 
for retransferring items subject to the EAR pursuant to a letter of 
General Correspondence. Section 124.16 is revised to clarify that the 
special retransfer authorization of this section may be used for items 
subject to the EAR with certain conditions.

[[Page 29566]]

    Other changes in this rule: The Department proposes to make a 
number of minor edits to the ITAR that will address erroneous or 
outdated reporting requirements. This rule would remove the requirement 
to provide seven paper copies for various export license requests in 
Sec. Sec.  124.7, 124.12, 124.14, 125.2, 125.7 and 126.9, which has not 
been necessary for many years due to the use of electronic license 
submissions, change the identification of the agency responsible for 
permanent import authorizations in Sec.  123.4 from the Department of 
the Treasury to Department of Justice, and impose the Code of Federal 
Regulations paragraph structure on Sec.  124.8. Additionally, the 
Department proposes removing the pilot filing requirement found in 
Sec.  123.13, given that it does not take into account the practices of 
modern airport operations and is no longer necessary.

Regulatory Analysis and Notices

Administrative Procedure Act

    The Department of State is of the opinion that controlling the 
import and export of defense articles and services is a foreign affairs 
function of the United States government and that rules implementing 
this function are exempt from Sec. Sec.  553 (rulemaking) and 554 
(adjudications) of the Administrative Procedure Act (APA). Although the 
Department is of the opinion that this rule is exempt from the 
rulemaking provisions of the APA, the Department is publishing this 
rule with a 45-day provision for public comment and without prejudice 
to its determination that controlling the import and export of defense 
services is a foreign affairs function.

Regulatory Flexibility Act

    Since the Department of State is of the opinion that this proposed 
rule is exempt from the provisions of 5 U.S.C. 553, there is no 
requirement for an analysis under the Regulatory Flexibility Act.

Unfunded Mandates Reform Act of 1995

    This proposed rulemaking does not involve a mandate that will 
result in the expenditure by State, local, and tribal governments, in 
the aggregate, or by the private sector, of $100 million or more in any 
year and it will not significantly or uniquely affect small 
governments. Therefore, no actions were deemed necessary under the 
provisions of the Unfunded Mandates Reform Act of 1995.

Small Business Regulatory Enforcement Fairness Act of 1996

    The Department does not believe this rulemaking is a major rule as 
defined in 5 U.S.C. 804.

Executive Orders 12372 and 13132

    This proposed rulemaking will not have substantial direct effects 
on the States, on the relationship between the national government and 
the States, or on the distribution of power and responsibilities among 
the various levels of government. Therefore, in accordance with 
Executive Order 13132, it is determined that this proposed rulemaking 
does not have sufficient federalism implications to require 
consultations or warrant the preparation of a federalism summary impact 
statement. The regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on Federal programs and activities do 
not apply to this proposed rulemaking.

Executive Orders 12866 and 13563

    Executive Orders 12866 and 13563 direct agencies to assess 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, distributed impacts, and equity). These executive orders 
stress the importance of quantifying both costs and benefits, of 
reducing costs, of harmonizing rules, and of promoting flexibility. 
These rules have been designated ``significant regulatory actions,'' 
although not economically significant, under Executive Order 12866. 
Accordingly, this proposed rule has been reviewed by the Office of 
Management and Budget (OMB).

Executive Order 12988

    The Department of State has reviewed this proposed rulemaking in 
light of Executive Order 12988 to eliminate ambiguity, minimize 
litigation, establish clear legal standards, and reduce burden.

Executive Order 13175

    The Department of State has determined that this proposed 
rulemaking will not have tribal implications, will not impose 
substantial direct compliance costs on Indian tribal governments, and 
will not preempt tribal law. Accordingly, the provisions of Executive 
Order 13175 do not apply to this proposed rulemaking.

Paperwork Reduction Act

    This rule does not impose any new reporting or recordkeeping 
requirements subject to the Paperwork Reduction Act, 44 U.S.C. Chapter 
35. This rule removes provisions that previously required the applicant 
to provide seven additional copies for various export license requests. 
The Department believes that there will be little or no practical 
burden reduction since the use of electronic methods of filing has made 
the requirement for ``seven copies'' obsolete.
    The following information collections are affected by this 
rulemaking:
    1. Application/License for Permanent Export of Unclassified Defense 
Articles and Related Unclassified Technical Data, OMB Control No. 1405-
0003;
    2. Application/License for Temporary Import of Unclassified Defense 
Articles, OMB Control No. 1405-0013;
    3. Application/License for the Permanent/Temporary Export or 
Temporary Import of Classified Defense Articles and Classified 
Technical Data, OMB Control No. 1405-0022;
    4. Application/License for Temporary Export of Unclassified Defense 
Articles, OMB Control No. 1405-0023;
    5. Application for Amendment to License for Export or Import of 
Classified or Unclassified Defense Articles and Related Technical Data 
OMB Control No. 1405-0092;
    6. Request for Approval of Manufacturing License Agreements, 
Technical Assistance Agreements, and Other Agreements, OMB Control No. 
1405-0093;
    7. Request to Change End User, End Use and/or Destination of 
Hardware, OMB Control No. 1405-00173; and
    8. Request for Advisory Opinion, OMB Control No. 1405-0174.
    The Department is requesting public comment on its estimate that 
there will be little or no change in the burdens associated with these 
information collections as a result of this rulemaking.
    Date: Comments will be accepted until July 21, 2015.
    Addresses: Interested parties may submit comments within 60 days of 
the date of publication by one of the following methods:
     Email: DDTCPublicComments@state.gov, with the subject line 
``AC88 PRA Burden Reduction'';
     Internet: At www.regulations.gov; please search for this 
proposed rule by using this proposed rule's RIN (1400-AC88) and 
indicate that you are commenting on the paperwork burden change in any 
(or all) of the eight information collections identified above.

[[Page 29567]]

List of Subjects

22 CFR Parts 120 and 125

    Arms and munitions, Classified information, Exports.

22 CFR Part 123

    Arms and munitions, Exports, Reporting and recordkeeping 
requirements.

22 CFR Part 124

    Arms and munitions, Exports, Technical assistance.

22 CFR Part 126

    Arms and munitions, Exports.

    Accordingly, for the reasons set forth above, Title 22, Chapter I, 
Subchapter M, parts 120, 123, 124, 125, and 126 are proposed to be 
amended as follows:

PART 120--PURPOSE AND DEFINITIONS

0
1. The authority citation for part 120 continues to read as follows:

    Authority:  Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 
(22 U.S.C. 2752, 2778, 2797); 22 U.S.C. 2794; 22 U.S.C. 2651a; Pub. 
L. 105-261, 112 Stat. 1920; Pub. L. 111-266; Section 1261, Pub. L. 
112-239; E.O. 13637, 78 FR 16129.

0
2. Section 120.5 is amended by revising the section heading and 
paragraph (b) to read as follows:


Sec.  120.5  Relation to regulations of other agencies; export of items 
subject to the EAR.

* * * * *
    (b) A license or other approval (see Sec.  120.20) from the 
Department of State granted in accordance with this subchapter may also 
authorize the export of items subject to the EAR (see Sec.  120.42). 
Items subject to the EAR may be exported pursuant to an exemption (see 
parts 124, 125, and 126 of this subchapter), provided the items subject 
to the EAR are for use in or with defense articles authorized under a 
license or other approval. Separate approval from the Department of 
Commerce is not required for these items when approved for export under 
a Department of State license or other approval. Those items subject to 
the EAR exported pursuant to a Department of State license or other 
approval would remain under the jurisdiction of the Department of 
Commerce for any subsequent transactions. The inclusion of items 
subject to the EAR on a Department of State license or other approval 
does not change the licensing jurisdiction of the items. (See Sec.  
123.1(b) of this subchapter for guidance on identifying items subject 
to the EAR in a license application to the Department of State.)

PART 123--LICENSES FOR THE EXPORT AND TEMPORARY IMPORT OF DEFENSE 
ARTICLES

0
3. The authority citation for part 123 continues to read as follows:

    Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778, 2797); 22 U.S.C. 2753; 22 U.S.C. 2651a; 22 U.S.C. 
2776; Pub. L. 105-261, 112 Stat. 1920; Sec. 1205(a), Pub. L. 107-
228; Section 1261, Pub. L. 112-239; E.O. 13637, 78 FR 16129.

0
4. Section 123.4 is amended by revising paragraph (a)(4) to read as 
follows:


Sec.  123.4  Temporary import license exemptions.

    (a) * * *
    (4) Has been rejected for permanent import by the Department of 
Justice and is being returned to the country from which it was shipped; 
or
* * * * *
0
5. Section 123.9 is amended by revising paragraphs (b)(1) and (2), and 
adding paragraph (d) to read as follows:


Sec.  123.9  Country of ultimate destination and approval of reexports 
or retransfers.

* * * * *
    (b) * * *
    (1) The exporter must incorporate the following information as an 
integral part of the bill of lading, air waybill, or other shipping 
document, and the purchase documentation or invoice whenever defense 
articles are to be exported, retransferred, or reexported pursuant to a 
license or other approval under this subchapter:
    (i) The country of ultimate destination;
    (ii) The end-user;
    (iii) The license or other approval number or exemption citation; 
and
    (iv) The following statement: ``These items are controlled and 
authorized by the U.S. government for export only to the country of 
ultimate destination for use by the end-user herein identified. They 
may not be resold, transferred, or otherwise be disposed of, to any 
other country or to any person other than the authorized end-user or 
consignee(s), either in their original form or after being incorporated 
into other items, without first obtaining approval from the U.S. 
government or as otherwise authorized by U.S. law and regulations.''
    (2) When exporting items subject to the EAR (see Sec. Sec.  120.42 
and 123.1(b) of this subchapter) pursuant to a Department of State 
license or other approval, the U.S. exporter must also provide the end-
user and consignees with the appropriate EAR classification information 
for each item exported pursuant to a U.S. Munitions List ``(x)'' 
paragraph. This includes the Export Control Classification Number 
(ECCN) or EAR99 designation.
* * * * *
    (d) The Directorate of Defense Trade Controls may authorize 
reexport or retransfer of an item subject to the EAR provided that:
    (1) The item was initially exported, reexported or transferred 
pursuant to a Department of State license or other approval;
    (2) The item is for end-use in or with a defense article; and,
    (3) All requirements of paragraph (c) of this section are satisfied 
for the item subject to the EAR, as well as for the associated defense 
article.
* * * * *
0
6. Revise Sec.  123.13 to read as follows:


Sec.  123.13  Domestic aircraft shipments via a foreign country.

    A license is not required for the shipment by air of a defense 
article from one location in the United States to another location in 
the United States via a foreign country.

PART 124--AGREEMENTS, OFF SHORE PROCUREMENT, AND OTHER DEFENSE 
SERVICES

0
7. The authority citation for part 124 continues to read as follows:

    Authority:  Sec. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778, 2797); 22 U.S.C. 2651a; 22 U.S.C. 2776; Pub. L. 
105-261; Section 1261, Pub. L. 112-239; E.O. 13637, 78 FR 16129.

0
8. Section 124.7 is amended by designating the introductory text as 
paragraph (a), adding and reserving paragraph (b), and revising 
paragraph (a)(1) to read as follows:


Sec.  124.7  Information required in all manufacturing license 
agreements and technical assistance agreements.

    (a) * * *
    (1) The agreement must describe the defense article to be 
manufactured and all defense articles to be exported, including any 
test and support equipment or advanced materials. They should be 
described by military nomenclature, contract number, National Stock 
Number, nameplate data, or other specific information. Only defense 
articles listed in the agreement will be eligible for export under the 
exemption in Sec.  123.16(b)(1) of this subchapter. * * *
    (b) [Reserved]
0
9. Section 124.8 is amended by designating the introductory text as 
paragraph (a) and adding and reserving paragraph (b), as follows:

[[Page 29568]]

Sec.  124.8  Clauses required both in manufacturing license agreements 
and technical assistance agreements.

* * * * *
    (b) [Reserved]
* * * * *
0
10. Section 124.12 is amended by revising the introductory text of 
paragraph (a) to read as follows:


Sec.  124.12  Required information in letters of transmittal.

    (a) An application for the approval of a manufacturing license or 
technical assistance agreement with a foreign person must be 
accompanied by an explanatory letter. The explanatory letter shall 
contain:
* * * * *
0
11. Section 124.14 is amended by revising the introductory text of 
paragraph (e) to read as follows:


Sec.  124.14  Exports to warehouses or distribution points outside the 
United States.

* * * * *
    (e) Transmittal letters. Requests for approval of warehousing and 
distribution agreements with foreign persons must be made by letter. 
The letter shall contain:
* * * * *
0
12. Section 124.16 is revised to read as follows:


Sec.  124.16  Special retransfer authorizations for unclassified 
defense articles and defense services to member states of NATO and the 
European Union, Australia, Japan, New Zealand, and Switzerland.

    (a) The provisions of Sec.  124.8(a)(5) notwithstanding, the 
Department may approve access to unclassified defense articles and 
items subject to the EAR (see Sec.  120.42 of this subchapter) exported 
in furtherance of or produced as a result of a TAA/MLA, retransfer of 
technical data and defense services, and retransfer of technology 
subject to the EAR and authorized under a TAA/MLA, to individuals who 
are dual national or third-country national employees of the foreign 
signatory or its approved sub-licensees, provided that:
    (1) The transfer is to dual nationals or third-country nationals 
who are bona fide regular employees, directly employed by the foreign 
signatory or approved sub-licensees;
    (2) The individuals are exclusively of countries that are members 
of NATO, the European Union, Australia, Japan, New Zealand, and 
Switzerland;
    (3) Their employer is a signatory to the agreement or has executed 
a Non-Disclosure Agreement; and
    (4) The retransfer takes place completely within the physical 
territories of the countries listed in paragraph (a)(2) of this section 
or the United States.
    (b) Permanent retransfer of hardware is not authorized pursuant to 
paragraph (a) of this section.

PART 125--LICENSES FOR THE EXPORT OF TECHNICAL DATA AND CLASSIFIED 
DEFENSE ARTICLES

0
13. The authority citation for part 126 continues to read as follows:

    Authority:  Secs. 2 and 38, Pub. L. 90-629, 90 Stat. 744 (22 
U.S.C. 2752, 2778); 22 U.S.C. 2651a; E.O. 13637, 78 FR 16129.

0
14. Section 125.2 is amended by revising paragraph (a) to read as 
follows:


Sec.  125.2  Exports of unclassified technical data.

    (a) License. A license (DSP-5) is required for the export of 
unclassified technical data unless the export is exempt from the 
licensing requirements of this subchapter. In the case of a plant 
visit, details of the proposed discussions must be transmitted to the 
Directorate of Defense Trade Controls for an appraisal of the technical 
data.
* * * * *
0
15. Section 125.7 is amended by revising paragraph (b) to read as 
follows:


Sec.  125.7  Procedures for the export of classified technical data and 
other classified defense articles.

* * * * *
    (b) An application for the export of classified technical data or 
other classified defense articles must be accompanied by a completed 
Form DSP-83 (see Sec.  123.10 of this subchapter). All classified 
materials accompanying an application must be transmitted to the 
Directorate of Defense Trade Controls in accordance with the procedures 
contained in the Department of Defense National Industrial Security 
Program Operating Manual (unless such requirements are inconsistent 
with guidance provided by the Directorate of Defense Trade Controls, in 
which case the latter guidance must be followed).

PART 126--GENERAL POLICIES AND PROVISIONS

0
16. The authority citation for part 126 continues to read as follows:

    Authority: Secs. 2, 38, 40, 42, and 71, Pub. L. 90-629, 90 Stat. 
744 (22 U.S.C. 2752, 2778, 2780, 2791, and 2797); 22 U.S.C. 2651a; 
22 U.S.C. 287c; E.O. 12918, 59 FR 28205; 3 CFR, 1994 Comp., p. 899; 
Sec. 1225, Pub. L. 108-375; Sec. 7089, Pub. L. 111-117; Pub. L. 111-
266; Section 7045, Pub. L. 112-74; Section 7046, Pub. L. 112-74; 
E.O. 13637, 78 FR 16129.

0
17. Section 126.4 is revised to read as follows:


Sec.  126.4  Exports and temporary imports made to or on behalf of a 
department or agency of the U.S. government.

    (a) A license is not required for the export or temporary import of 
a defense article or the performance of a defense service, when made:
    (1) To a department or agency of the U.S. government for official 
use. Defense articles exported or temporarily imported under this 
provision may only be provided to a regular employee or contractor 
support personnel of the U.S. government;

    Note 1 to paragraph (a):  Contractor support personnel means 
those U.S. persons who provide administrative, managerial, 
scientific or technical support under contract with a U.S. 
government department or agency within a U.S. government owned or 
operated facility or under the direct supervision of a regular U.S. 
government employee (e.g., Federally Funded Research and Development 
Center or Systems Engineering and Technical Assistance contractors). 
For purposes of this section, private security contractors are not 
considered contractor support personnel, and ``direct supervision'' 
refers to the control over the manner and means in which contractor 
support personnel conduct their day-to-day work activities as well 
as control over the contractor's access to defense articles 
authorized under this paragraph.


    Note 2 to paragraph (a):  Any retransfer, reexport, disposal, or 
change in end-user of a defense article exported pursuant to this 
section must be performed in accordance with Sec.  123.9 of this 
subchapter.

    (2)(i) By, or on behalf of, a department or agency of the U.S. 
government for carrying out any foreign assistance, cooperative 
project, or sales program authorized by law and subject to control by 
the President by other means, provided:
    (A) Items subject to the EAR and controlled for missile technology 
(MT) reasons (see Sec.  742.5 of the EAR (15 CFR 742.5) are not 
authorized for export under this subsection; and
    (B) The United States government performs or directs all aspects of 
the transaction (export, carriage, and delivery abroad) or the export 
is covered by a U.S. government Bill of Lading.
    (ii) This section does not authorize a U.S. government agency to 
act as a transmittal agent on behalf of a private individual or firm, 
either as a convenience or in satisfaction of security requirements.

    Note to paragraph (a)(2):  Approval of a foreign assistance, 
cooperative project, or sales program authorizing a U.S. government 
department and agency to permanently export a defense article 
described on the Missile Technology Control Regime Annex should be 
reviewed by the Missile Technology Export Committee, unless

[[Page 29569]]

authorized by statutory authority providing export authority 
notwithstanding the Arms Export Control Act.

    (b) This section does not authorize any department or agency of the 
U.S. government to make any export that is otherwise prohibited by 
virtue of other administrative provisions or by any statute.
    (c) An Electronic Export Information (EEI) filing, required under 
Sec.  123.22 of this subchapter, and a written statement by the 
exporter certifying that these requirements have been met must be 
presented at the time of export to the appropriate Port Directors of 
U.S. Customs and Border Protection or Department of Defense transmittal 
authority. For any export made pursuant to paragraph (a)(1) of this 
section, the shipment documents (bill of lading, airway bill, or other 
transportation documents) must include the following statement:
    ``For official use by [insert U.S. government department or 
agency]. Property will not enter the trade of the country to which it 
is shipped. No export license required per CFR Title 22, section 126.4. 
U.S. government point of contact: [insert name and telephone number]''.
0
18. Section 126.9 is amended by revising paragraph (a) to read as 
follows:


Sec.  126.9  Advisory opinions and related authorizations.

    (a) Advisory opinion. A person may request information from the 
Directorate of Defense Trade Controls on whether it would likely grant 
a license or other approval for a particular defense article or defense 
service to a particular country. Such information from the Directorate 
of Defense Trade Controls is issued on a case-by-case basis and applies 
only to the particular matters presented to the Directorate of Defense 
Trade Controls. These opinions are not binding on the Department of 
State and may not be used in future matters before the Department. A 
request for an advisory opinion must be made in writing and must 
outline in detail the equipment, its usage, the security classification 
(if any) of the articles or related technical data, and the country or 
countries involved.
* * * * *

 Rose E. Gottemoeller,
 Under Secretary, Arms Control and International Security, Department 
of State.
[FR Doc. 2015-12295 Filed 5-21-15; 8:45 am]
 BILLING CODE 4710-25-P