Commerce Control List: Addition of Items Determined to No Longer Warrant Control Under United States Munitions List Category XIV (Toxicological Agents) or Category XVIII (Directed Energy Weapons), 34562-34572 [2015-14474]
Download as PDF
<![CDATA[
34562
Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Proposed Rules
List of Subjects in 14 CFR Part 39
Air transportation, Aircraft, Aviation
safety, Incorporation by reference,
Safety.
The Proposed Amendment
Accordingly, under the authority
delegated to me by the Administrator,
the FAA proposes to amend 14 CFR part
39 as follows:
PART 39—AIRWORTHINESS
DIRECTIVES
1. The authority citation for part 39
continues to read as follows:
■
Authority: 49 U.S.C. 106(g), 40113, 44701.
§ 39.13
[Amended]
2. The FAA amends § 39.13 by adding
the following new airworthiness
directive (AD):
■
General Electric Company: Docket No. FAA–
2015–1658; Directorate Identifier 2015–
NE–18–AD.
01803; phone: 781–238–7120; fax: 781–238–
7199; email: chris.mcguire@faa.gov.
(2) GE GEnx–1B SB No. 79–0022, Revision
1, dated May 13, 2015 can be obtained from
GE using the contact information in
paragraph (g)(3) of this proposed AD.
(3) For service information identified in
this proposed AD, contact General Electric
Company, GE Aviation, Room 285, 1
Neumann Way, Cincinnati, OH 45215;
phone: 513–552–3272; email: geae.aoc@
ge.com.
(4) You may view this service information
at the FAA, Engine & Propeller Directorate,
12 New England Executive Park, Burlington,
MA. For information on the availability of
this material at the FAA, call 781–238–7125.
Issued in Burlington, Massachusetts, on
June 4, 2015.
Robert J. Ganley,
Acting Directorate Manager, Engine &
Propeller Directorate, Aircraft Certification
Service.
[FR Doc. 2015–14695 Filed 6–16–15; 8:45 am]
BILLING CODE 4910–13–P
(a) Comments Due Date
We must receive comments by August 17,
2015.
DEPARTMENT OF COMMERCE
(b) Affected ADs
None.
15 CFR Part 774
(c) Applicability
This AD applies to all General Electric
Company (GE) GEnx–1B model turbofan
engines with oil filler cap, part number
(P/N) 2349M62G01, installed, that does not
contain any of the following markings after
the P/N on the oil filler cap: ‘‘P/M BALL PP’’,
or ‘‘RW’’, or ‘‘79–0022’’.
(d) Unsafe Condition
This AD was prompted by reports of
GEnx–1B engine oil loss. We are issuing this
AD to prevent loss of engine oil, which could
lead to failure of one or more engines, loss
of thrust control, and damage to the airplane.
srobinson on DSK5SPTVN1PROD with PROPOSALS
(e) Compliance
Comply with this AD within the
compliance times specified, unless already
done.
(1) Within 360 cycles in service after the
effective date of this AD, remove the ball
valve, P/N 2349M68P01, from affected oil
filler cap and replace with a part eligible for
installation.
(2) Reserved.
(f) Alternative Methods of Compliance
(AMOCs)
The Manager, Engine Certification Office,
FAA, may approve AMOCs to this AD. Use
the procedures found in 14 CFR 39.19 to
make your request. You may email your
request to: ANE-AD-AMOC@faa.gov.
(g) Related Information
(1) For more information about this AD,
contact Christopher McGuire, Aerospace
Engineer, Engine Certification Office, FAA,
Engine & Propeller Directorate, 12 New
England Executive Park, Burlington, MA
VerDate Sep<11>2014
16:32 Jun 16, 2015
Jkt 235001
Bureau of Industry and Security
[Docket No. 120105019–5328–01]
RIN 0694–AF52
Commerce Control List: Addition of
Items Determined to No Longer
Warrant Control Under United States
Munitions List Category XIV
(Toxicological Agents) or Category
XVIII (Directed Energy Weapons)
Bureau of Industry and
Security, Department of Commerce.
ACTION: Proposed rule.
AGENCY:
This proposed rule describes
how articles the President determines
no longer warrant control under
Category XIV (Toxicological Agents,
Including Chemical Agents, Biological
Agents, and Associated Equipment) or
Category XVIII (Directed Energy
Weapons) of the United States
Munitions List (USML) would be
controlled under the Commerce Control
List (CCL). The affected Category XIV
articles consist primarily of
dissemination, detection and protection
‘‘equipment’’ and related articles and
would be controlled under new Export
Control Classification Numbers (ECCNs)
1A607, 1B607, 1C607, 1D607, and
1E607, as proposed by this rule. The
affected Category XVIII articles consist
primarily of tooling, production
‘‘equipment,’’ test and evaluation
‘‘equipment,’’ test models and related
articles and would be controlled under
SUMMARY:
PO 00000
Frm 00023
Fmt 4702
Sfmt 4702
new ECCNs 6B619, 6D619 and 6E619, as
proposed by this rule.
This rule is one in a series of
proposed rules describing how various
types of articles that the President
determines no longer warrant control on
the USML, as part of the
Administration’s Export Control Reform
Initiative, would be controlled on the
CCL in accordance with the
requirements of the Export
Administration Regulations (EAR).
This proposed rule is being published
by the Bureau of Industry and Security
(BIS) in conjunction with a proposed
rule from the Department of State,
Directorate of Defense Trade Controls,
which would amend the list of articles
controlled by USML Categories XIV and
XVIII. The citations in this BIS proposed
rule to USML Categories XIV and XVIII
reflect the proposed amendments
contained in the Department of State’s
rule. The revisions proposed by BIS in
this rule are part of Commerce’s
retrospective regulatory review plan
under Executive Order 13563 completed
in August 2011.
DATES: Comments must be received by
August 17, 2015.
ADDRESSES: You may submit comments
by any of the following methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. The identification
number for this rulemaking is BIS–
2015–0023.
• By email directly to
publiccomments@bis.doc.gov. Include
RIN 0694–AF52 in the subject line.
• By mail or delivery to Regulatory
Policy Division, Bureau of Industry and
Security, U.S. Department of Commerce,
Room 2099B, 14th Street and
Pennsylvania Avenue NW., Washington,
DC 20230. Refer to RIN 0694–AF52.
FOR FURTHER INFORMATION CONTACT: For
questions regarding dissemination,
detection and protection ‘‘equipment’’
and related articles that would be
controlled under new ECCNs 1A607,
1B607, 1C607, 1D607, and 1E607,
contact Richard P. Duncan, Ph.D.,
Director, Chemical and Biological
Controls Division, Office of
Nonproliferation and Treaty
Compliance, Bureau of Industry and
Security, telephone: (202) 482–3343,
email: Richard.Duncan@bis.doc.gov.
For questions regarding tooling,
production ‘‘equipment,’’ test and
evaluation ‘‘equipment’’ and test models
that would be controlled under new
ECCNs 6B619, 6D619 and 6E619,
contact Mark Jaso, Sensors and Aviation
Division, Office of National Security &
Technology Transfer Controls, Bureau of
Industry and Security, telephone: (202)
E:\FR\FM\17JNP1.SGM
17JNP1
Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Proposed Rules
482–0987, email: Mark.Jaso@
bis.doc.gov.
SUPPLEMENTARY INFORMATION:
srobinson on DSK5SPTVN1PROD with PROPOSALS
Background
This proposed rule is published by
the Bureau of Industry and Security
(BIS) as part of the Administration’s
Export Control Reform (ECR) Initiative,
the object of which is to protect and
enhance U.S. national security interests.
The implementation of the ECR
includes amendment of the
International Traffic in Arms
Regulations (ITAR) and its U.S.
Munitions List (USML), so that they
control only those items that provide
the United States with a critical military
or intelligence advantage or otherwise
warrant such controls, and amendment
of the Export Administration
Regulations (EAR) to control military
items that do not warrant USML
controls. This series of amendments to
the ITAR and the EAR will reform the
U.S. export control system to enhance
our national security by: (i) improving
the 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 national security, foreign policy,
or proliferation concerns than those
involving our NATO allies and other
multi-regime partners.
Following the structure set forth in
the final rule titled ‘‘Revisions to the
Export Administration Regulations:
Initial Implementation of Export Control
Reform’’ (78 FR 22660, April 16, 2013)
(hereinafter the ‘‘April 16 (initial
implementation) rule’’), this proposed
rule describes BIS’s proposal for
controlling under the EAR’s CCL certain
dissemination, detection and protection
‘‘equipment’’ and related articles
currently controlled under USML
Category XIV in the ITAR and certain
tooling, production ‘‘equipment,’’ test
and evaluation ‘‘equipment,’’ test
models and related articles currently
controlled under USML Category XVIII
of the ITAR.
In the April 16 (initial
implementation) rule, BIS created a
series of new ECCNs to control items
that would be removed from the USML
and similar items from the Wassenaar
Arrangement on Export Controls for
Conventional Arms and Dual Use Goods
and Technologies Munitions List
(Wassenaar Arrangement Munitions List
or WAML) that were already controlled
VerDate Sep<11>2014
16:32 Jun 16, 2015
Jkt 235001
elsewhere on the CCL. That final rule
referred to this series of new ECCNs as
the ‘‘600 series,’’ because the third
character in each of these new ECCNs is
the number ‘‘6.’’ The first two characters
of the ‘‘600 series’’ ECCNs serve the
same function as any other ECCN as
described in § 738.2 of the EAR. The
first character is a number, within the
range of 0 through 9, that identifies the
Category on the CCL in which the ECCN
is located. The second character is a
letter, within the range of A through E,
that identifies the product group in a
CCL Category. As indicated above, the
third character in the ‘‘600 series’’
ECCNs is the number ‘‘6,’’ which
distinguishes the items controlled under
this series of ECCNs from items
identified under other ECCNs on the
CCL. With few exceptions, the final two
characters identify the WAML category
that covers items that are the same or
similar to items in a particular ‘‘600
series’’ ECCN.
Pursuant to section 38(f) of the Arms
Export Control Act (AECA), the
President is obligated 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
Congress and wait 30 days before
removing any such items from the
USML. The report must ‘‘describe the
nature of any controls to be imposed on
that item under any other provision of
law.’’ 22 U.S. C. 2778(f)(1).
The changes proposed in this rule and
the State Department’s companion rule
to Categories XIV and XVIII of the
USML are based on a review of these
USML Categories by the Defense
Department, which worked with the
Departments of State and Commerce in
preparing the proposed amendments.
The review focused on identifying the
types of articles that are now controlled
by USML Category XIV or Category
XVIII that are either: (i) inherently
military and otherwise warrant control
on the USML; or (ii) of a type common
to civil applications, possessing
parameters or characteristics that
provide a critical military or intelligence
advantage to the United States, and are
almost exclusively available from the
United States. If an article was found to
satisfy either or both of these 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 proposed by this rule.
All references to the USML in this
rule are to the list of defense articles
that are controlled for purposes of
PO 00000
Frm 00024
Fmt 4702
Sfmt 4702
34563
export, temporary import, or brokering
pursuant to the ITAR, and not to the list
of defense articles on the United States
Munitions Import List (USMIL) that are
controlled by the Bureau of Alcohol,
Tobacco, Firearms and Explosives (ATF)
for purposes of permanent import under
its regulations at 27 CFR part 447.
Pursuant to section 38(a)(1) of the
AECA, all defense articles controlled for
export or import, or that are subject to
brokering controls, are part of the
‘‘USML’’ under the AECA. For the sake
of clarity, references to the USMIL are
to the list of defense articles controlled
by ATF for purposes of permanent
import. All defense articles described in
the USMIL or the USML are subject to
the brokering controls administered by
the U.S. Department of State in part 129
of the ITAR. The transfer of defense
articles from the ITAR’s USML to the
EAR’s CCL, for purposes of export
controls, does not affect the list of
defense articles that are controlled on
the USMIL under the AECA for
purposes of permanent import or
brokering controls.
On January 18, 2011, the President
issued Executive Order 13563, affirming
general principles of regulation and
directing government agencies to
conduct retrospective reviews of
existing regulations. The revisions
proposed in this rule are part of
Commerce’s retrospective regulatory
review plan under Executive Order
13563. Commerce’s full plan, completed
in August 2011, can be accessed at:
https://open.commerce.gov/news/2011/
08/23/commerce-plan-retrospectiveanalysis-existing-rules.
Changes Proposed by This Rule to
Controls on Certain Dissemination,
Detection and Protection ‘‘Equipment’’
and Related Items Currently Controlled
Under USML Category XIV
This proposed rule would create five
new ‘‘600 series’’ ECCNs in CCL
Category 1 (ECCNs 1A607, 1B607,
1C607, 1D607, and 1E607) that would
clarify the EAR controls that apply to
certain dissemination, detection and
protection ‘‘equipment’’ and related
items the President determines no
longer warrant control under USML
Category XIV. Terms such as ‘‘part,’’
‘‘component’’ ‘‘accessories,’’
‘‘attachments,’’ and ‘‘specially
designed’’ are applied in the same
manner in this rule as those terms are
defined in Section 772.1 of the EAR. In
addition, to assist exporters in
determining the control status of their
items, a ‘‘Specially Designed’’ Decision
Tool and a CCL Order of Review
Decision Tool are available on the BIS
E:\FR\FM\17JNP1.SGM
17JNP1
srobinson on DSK5SPTVN1PROD with PROPOSALS
34564
Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Proposed Rules
Web site at: https://www.bis.doc.gov/
index.php/decision-tree-tools.
New ECCN 1A607: Military
dissemination ‘‘equipment’’ for riot
control agents, military detection and
protection ‘‘equipment’’ for
toxicological agents (including
chemical, biological, and riot control
agents), and related commodities.
In proposed ECCN 1A607, paragraphs
.a through .d, paragraph .i, and
paragraphs .l through .w would be
reserved. Paragraph .e of ECCN 1A607
would control ‘‘equipment’’ ‘‘specially
designed’’ for military use and for the
dissemination of any of the riot control
agents controlled in ECCN 1C607.a.
Paragraph .f of ECCN 1A607 would
control protection ‘‘equipment’’
‘‘specially designed’’ for military use
and for defense against either materials
controlled by USML Category XIV(a) or
(b) or any of the riot control agents in
new ECCN 1C607.a. Paragraph .g of
ECCN 1A607 would control
decontamination ‘‘equipment’’ not
controlled by USML Category XIV(f)
that is ‘‘specially designed’’ for military
use and for the decontamination of
objects contaminated with materials
controlled by USML Category XIV(a) or
(b). Paragraph .h would control
‘‘equipment’’ not controlled by USML
Category XIV(f) that is ‘‘specially
designed’’ for military use and for the
detection or identification of either
materials specified by USML Category
XIV(a) or (b) or riot control agents
controlled by proposed new ECCN
1C607.a. Paragraph .j would control
‘‘equipment’’ ‘‘specially designed’’ to: (i)
Interface with a detector, shelter,
vehicle, vessel, or aircraft controlled by
the USML or a ‘‘600 series’’ ECCN; and
(ii) collect and process samples of
articles controlled in USML Category
XIV(a) or (b). Paragraph .k would
control medical countermeasures that
are ‘‘specially designed’’ for military use
(including pre- and post- treatments,
antidotes, and medical diagnostics) and
‘‘specially designed’’ to counter
chemical agents controlled by USML
Category XIV(a). Paragraph .x would
control ‘‘parts,’’ ‘‘components,’’
‘‘accessories,’’ and ‘‘attachments’’ that
are ‘‘specially designed’’ for a
commodity controlled under ECCN
1A607.e, .f, .g, .or .j or a defense article
controlled in USML Category XIV(f) and
that are not enumerated or otherwise
described elsewhere in the USML.
New ECCN 1B607: Military test,
inspection, and production
‘‘equipment’’ and related commodities
‘‘specially designed’’ for the
‘‘development,’’ ‘‘production,’’ repair,
overhaul, or refurbishing of
commodities identified in ECCN 1A607
VerDate Sep<11>2014
16:32 Jun 16, 2015
Jkt 235001
or 1C607, or defense articles
enumerated or otherwise described in
USML Category XIV.
In proposed ECCN 1B607, paragraph
.a would control ‘‘equipment,’’ not
including incinerators, that is ‘‘specially
designed’’ for the destruction of
chemical agents controlled by USML
Category XIV(a). Paragraph .b of ECCN
1B607 would control test facilities and
‘‘equipment’’ that are ‘‘specially
designed’’ for military certification,
qualification, or testing of commodities
controlled by new ECCN 1A607.e, .f, .g,
or .j or by USML Category XIV(f), except
for XIV(f)(1). Paragraph .c would control
tooling and ‘‘equipment’’ ‘‘specially
designed’’ for the ‘‘development,’’
‘‘production,’’ repair, overhaul, or
refurbishing of commodities controlled
under new ECCN 1A607.e, .f, .g, or .j or
USML Category XIV(f). Paragraphs .d
through .w would be reserved.
Paragraph .x would control ‘‘parts,’’
‘‘components,’’ ‘‘accessories,’’ and
‘‘attachments,’’ not enumerated or
otherwise described elsewhere in the
USML, that are ‘‘specially designed’’ for
a commodity controlled by ECCN
1B607.b or .c or for a defense article
controlled by USML Category XIV(f).
New ECCN 1C607: Tear gases, riot
control agents and materials for the
detection and decontamination of
chemical warfare agents.
Proposed ECCN 1C607.a would
control specified tear gases and riot
control agents. Paragraph .b of ECCN
1C607 would control ‘‘biopolymers’’ not
controlled by USML Category XIV(g)
that are ‘‘specially designed’’ or
processed for the detection or
identification of chemical warfare (CW)
agents specified by USML Category
XIV(a) and the cultures of specific cells
used to produce them. Paragraph .c
would control specified ‘‘biocatalysts’’
and biological systems that are not
controlled by USML Category XIV(g)
and are ‘‘specially designed’’ for the
decontamination or degradation of CW
agents specified by USML Category
XIV(a). Paragraph .d would control
chemical mixtures not controlled by
USML Category XIV(f) that are
‘‘specially designed’’ for military use for
the decontamination of objects
contaminated with materials specified
by USML Category XIV(a) or (b).
New ECCN 1D607: ‘‘Software’’
‘‘specially designed’’ for the
‘‘development,’’ ‘‘production,’’
operation, or maintenance of items
controlled by 1A607, 1B607 or 1C607.
Proposed ECCN 1D607.a would
control ‘‘software’’ ‘‘specially designed’’
for the ‘‘development,’’ ‘‘production,’’
operation, or maintenance of items
controlled by ECCN 1A607, 1B607 or
PO 00000
Frm 00025
Fmt 4702
Sfmt 4702
1C607. Paragraph .b of ECCN 1D607
would be reserved.
New ECCN 1E607: ‘‘Technology’’
‘‘required’’ for the ‘‘development,’’
‘‘production,’’ operation, installation,
maintenance, repair, overhaul, or
refurbishing of items controlled by
ECCN 1A607, 1B607, 1C607, or 1D607.
Proposed ECCN 1E607.a would
control ‘‘technology’’ ‘‘required’’ for the
‘‘development,’’ ‘‘production,’’
operation, installation, maintenance,
repair, overhaul, or refurbishing of items
controlled by ECCN 1A607, 1B607,
1C607, or 1D607. Paragraph .b of ECCN
1E607 would be reserved.
Changes Proposed by This Rule to
Controls on Certain Tooling, Production
‘‘Equipment,’’ Test and Evaluation
‘‘Equipment’’ and Test Models
Currently Controlled Under USML
Category XVIII
This rule proposes to create three new
‘‘600 series’’ ECCNs in CCL Category 6
(ECCNs 6B619, 6D619 and 6E619) that
would clarify the EAR controls that
apply to certain tooling, production
‘‘equipment,’’ test and evaluation
‘‘equipment,’’ test models and related
articles for Directed Energy Weapons
(DEWs) that the President determines no
longer warrant control under USML
Category XVIII. Terms such as ‘‘part,’’
‘‘component’’ ‘‘accessories,’’
‘‘attachments,’’ and ‘‘specially
designed’’ are applied in the same
manner in this rule as those terms are
defined in Section 772.1 of the EAR. In
addition, to assist exporters in
determining the control status of their
items, a ‘‘Specially Designed’’ Decision
Tool and a CCL Order of Review
Decision Tool are available on the BIS
Web site at: https://www.bis.doc.gov/
index.php/decision-tree-tools.
New ECCN 6B619: Test, inspection
and production ‘‘equipment,’’ and
related commodities, ‘‘specially
designed’’ for the ‘‘development,’’
‘‘production,’’ repair, overhaul, or
refurbishing of commodities
enumerated or otherwise described in
USML Category XVIII.
Proposed ECCN 6B619.a would
control tooling, templates, jigs,
mandrels, molds, dies, fixtures,
alignment mechanisms, and test
‘‘equipment’’ not enumerated or
otherwise described in USML Category
XVIII and not elsewhere specified on
the USML that are ‘‘specially designed’’
for the ‘‘development,’’ ‘‘production,’’
repair, overhaul, or refurbishing of
commodities controlled by USML
Category XVIII. The commodities that
would be controlled under proposed
ECCN 6B619.a are used to produce
directed energy weapons (including
E:\FR\FM\17JNP1.SGM
17JNP1
srobinson on DSK5SPTVN1PROD with PROPOSALS
Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Proposed Rules
non-lethal directed energy weapons,
such as active denial systems) and are
similar to commodities that are in
operation in a number of other
countries, some of which are not allies
of the United States or members of
multinational export control regimes.
Research and development is currently
underway to determine the possible
uses of such commodities (e.g., to
protect the Earth from asteroids, or for
perimeter security and crowd control).
Possession of such commodities does
not confer a significant military
advantage on the United States and,
therefore, the inclusion of such
commodities on the CCL would be
appropriate.
Paragraphs .b through .w of ECCN
6B619 would be reserved. Paragraph .x
would control ‘‘parts,’’ ‘‘components,’’
‘‘accessories,’’ and ‘‘attachments’’
‘‘specially designed’’ for a commodity
subject to control under paragraph .a of
this ECCN and not enumerated or
otherwise described in USML Category
XVIII and not elsewhere specified on
the USML.
New ECCN 6D619: ‘‘Software’’
‘‘specially designed’’ for the
‘‘development,’’ ‘‘production,’’
operation or maintenance of
commodities controlled by 6B619.
Proposed ECCN 6D619 would control
‘‘software’’ ‘‘specially designed’’ for the
‘‘development,’’ ‘‘production,’’
operation or maintenance of
commodities controlled by ECCN
6B619. Inclusion of this ‘‘software’’ on
the CCL would be appropriate, because
it would be limited to ‘‘software’’
‘‘specially designed’’ for ECCN 6B619
commodities and would not include any
‘‘software’’ for items specifically
enumerated or otherwise described on
the USML.
New ECCN 6E619: ‘‘Technology’’
‘‘required’’ for the ‘‘development,’’
‘‘production,’’ operation, installation,
maintenance, repair, overhaul or
refurbishing of commodities controlled
by 6B619 or ‘‘software’’ controlled by
6D619.
Proposed ECCN 6E619 would control
‘‘technology’’ ‘‘required’’ for the
‘‘development,’’ ‘‘production,’’
operation, installation, maintenance,
repair, overhaul or refurbishing of
commodities controlled by ECCN
6B619, or ‘‘software’’ controlled by
6D619. Inclusion of this ‘‘technology’’
on the CCL would be appropriate,
because it would be limited to
‘‘technology’’ ‘‘required’’ for ECCN
6B619 commodities and would not
include any ‘‘technology’’ for items
specifically enumerated or otherwise
described on the USML.
VerDate Sep<11>2014
16:32 Jun 16, 2015
Jkt 235001
Applicable Controls for the New ‘‘600
Series’’ ECCNs Proposed by This Rule.
Pursuant to the framework established
in the April 16 (initial implementation)
rule, detection and protection
‘‘equipment’’ and related commodities
classified under ECCN 1A607; related
test, inspection and production
‘‘equipment’’ classified under ECCN
1B607; tear gases, riot control agents
and related commodities classified
under ECCN 1C607 (except for items
listed in ECCN 1C607.a.10, .a.11, .a.12,
or a.14, all of which are specifically
excluded from WAML Category 7 by
Note 1 thereto); related ‘‘software’’
classified under ECCN 1D607 (except
‘‘software’’ for items listed in ECCN
1C607.a.10, .a.11, .a.12, or a.14); and
related ‘‘technology’’ classified under
ECCN 1E607 (except ‘‘technology’’ for
items listed in ECCN 1C607.a.10, .a.11,
.a.12, or a.14 and 1D607 ‘‘software’’
therefor) would be subject to the
licensing policies that apply to items
controlled for national security (NS)
reasons, as described in § 742.4(b)(1)—
specifically, NS Column 1 controls. The
same level of NS controls and licensing
policies also would apply to the items
that would be controlled under the three
new ECCNs (i.e., test, inspection, and
production ‘‘equipment’’ classified
under ECCN 6B619; related ‘‘software’’
classified under ECCN 6D619; and
related ‘‘technology’’ classified under
ECCN 6E619) that this rule proposes to
add to Category 6 of the CCL. In
addition, all of the items that would be
controlled under the new ECCNs
proposed by this rule would be subject
to the regional stability (RS) licensing
policies set forth in § 742.6(a)(1), i.e., RS
Column 1, as well as antiterrorism (AT
Column 1) and United Nations (UN)
controls.
Also, in accordance with
§§ 742.4(b)(1) and 742.6(b)(1) of the
EAR, exports and reexports of ‘‘600
series’’ items controlled for NS or RS
reasons will be reviewed consistent
with United States arms embargo
policies in § 126.1 of the ITAR, if
destined to a country listed in Country
Group D:5 of Supplement No. 1 to part
740 of the EAR. All items controlled for
NS or RS reasons, as set forth in this
proposed rule, would be subject to this
licensing policy.
Effects of This Proposed Rule
BIS believes that the principal effect
of this rule, when considered in the
context of similar proposed rules being
published as part of the ECR, will be to
provide greater flexibility for exports
and reexports to NATO member
countries and other multiple-regime-
PO 00000
Frm 00026
Fmt 4702
Sfmt 4702
34565
member countries of items the President
determines no longer warrant control on
the USML. This greater flexibility would
be in the form of: application of the
EAR’s de minimis threshold principle
for items constituting less than a de
minimis amount of controlled U.S.origin content in foreign made items;
availability of license exceptions,
particularly License Exceptions
‘‘Servicing and Replacement of Parts
and Equipment’’ (RPL) and ‘‘Strategic
Trade Authorization’’ (STA);
elimination of the requirements for
manufacturing license agreements and
technical assistance agreements in
connection with exports of technology;
and a reduction in, or elimination of,
exporter and manufacturer registration
requirements and associated registration
fees. Some of these specific effects are
discussed in more detail below.
De minimis
The April 16 (initial implementation)
rule imposed certain unique de minimis
requirements on items controlled under
the new ‘‘600 series’’ ECCNs. Section
734.3 of the EAR provides, inter alia,
that, under certain conditions, items
made outside the United States that
incorporate items subject to the EAR are
not subject to the EAR if they do not
exceed a ‘‘de minimis’’ percentage of
controlled U.S. origin content. Under
Section 734.4 of the EAR, as amended
by the April 16 (initial implementation)
rule, there is no eligibility for de
minimis treatment for a foreign-made
item that incorporates U.S.-origin ‘‘600
series’’ items when the foreign-made
item is destined for a country that is
subject to a U.S. arms embargo, i.e., a
country listed in Country Group D:5 of
Supplement No. 1 to part 740 of the
EAR. Items controlled under the new
‘‘600 series’’ ECCNs proposed in this
rule would be eligible for de minimis
treatment under the EAR, provided that
the foreign-made items into which they
are incorporated are not destined for a
country listed in Country Group D:5. In
contrast, the AECA does not permit the
ITAR to have a de minimis treatment for
USML-listed items, regardless of the
significance or insignificance of the
U.S.-origin content or the percentage of
U.S.-origin content in the foreign-made
item (i.e., USML-listed items remain
subject to the ITAR when they are
incorporated abroad into a foreign-made
item, regardless of either of these
factors).
Use of License Exceptions
The April 16 (initial implementation)
rule imposed certain restrictions on the
use of license exceptions for items
controlled under ‘‘600 series’’ ECCNs on
E:\FR\FM\17JNP1.SGM
17JNP1
srobinson on DSK5SPTVN1PROD with PROPOSALS
34566
Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Proposed Rules
the CCL. The general restrictions that
apply to the use of license exceptions
for such items are described in
§ 740.2(a)(13) of the EAR. The EAR
provisions that describe the
requirements specific to individual
license exceptions contain additional
restrictions on the use of license
exceptions for such items.
For example, this rule proposes
limited License Exception STA
availability for the new ‘‘600 series’’
ECCNs contained herein. None of the
items that would be controlled under
these proposed ECCNs would be eligible
for the STA ‘‘controls of lesser
sensitivity’’ described in § 740.20(c)(2)
of the EAR. Instead, STA eligibility for
all such items would be limited to the
destinations listed in § 740.20(c)(1) of
the EAR (i.e., Country Group A:5
destinations indicated in Supplement
No. 1 to part 740 of the EAR). In
addition, such items must be for: (1)
ultimate end-use by a person of a type
specified in § 740.20(b)(3)(ii) of the EAR
(i.e., the armed forces, police,
paramilitary, law enforcement, customs,
correctional, fire, or a search and rescue
agency of a government of one of the
countries listed in Country Group A:5 or
the United States Government); or (2)
the ‘‘development,’’ ‘‘production,’’
operation installation, maintenance,
repair, overhaul, or refurbishing of an
item, in one of the countries listed in
Country Group A:5 or the United States,
that will ultimately be used by any such
government agencies, the United States
Government, or by a person in the
United States. The use of License
Exception STA also may be authorized,
under certain circumstances described
in § 740.20(b)(3)(ii)(C), where the U.S.
Government has otherwise authorized
the ultimate end-use under a license.
None of the items that would be
controlled under the new ‘‘600 series’’
ECCNs proposed by this rule would be
treated as ‘‘end items’’ for purposes of
License Exception STA and, therefore,
such items would not be subject to the
License Exception STA eligibility
request requirements in § 740.20(g) of
the EAR.
Items controlled under proposed new
ECCN 1B607 or 6B619 also would be
eligible for License Exception LVS
(limited value shipments) up to a value
of $1,500, TMP (temporary exports), and
RPL (servicing and replacement parts).
License Exceptions TMP and RPL also
would be available for items controlled
under new ECCN 1A607.
BIS believes that the restrictions that
would apply to the use of license
exceptions for the items in the proposed
new ‘‘600 series’’ ECCNs would
represent an overall reduction from the
VerDate Sep<11>2014
16:32 Jun 16, 2015
Jkt 235001
level of restrictions that currently apply
to such items on the USML. This would
be particularly true with respect to
exports of such items to NATO members
and multiple-regime member countries.
Alignment With the Wassenaar
Arrangement Munitions List
Since the beginning of ECR, the
Administration has stated that the
reforms will be consistent with the
United States’ obligations to the
multilateral export control regimes.
Accordingly, the Administration will, in
this proposed rule, exercise its national
discretion to implement, clarify, and, to
the extent feasible, align its controls
with those of the regimes. In this rule,
proposed ECCNs 1A607 and 1C607
would implement, to the extent
possible, the controls in WAML
Category 7; proposed ECCNs 1B607 and
6B619 would implement, to the extent
possible, the controls in WAML
Category 18 for production
‘‘equipment;’’ proposed ECCNs 1D607
and 6D619 would implement, to the
extent possible, the controls in WAML
Category 21 for ‘‘software;’’ and
proposed ECCNs 1E607 and 6E619
would implement, to the extent
possible, the controls in WAML
Category 22 for ‘‘technology.’’
Request for Comments
BIS seeks comments on this proposed
rule. BIS will consider all comments
received on or before August 17, 2015.
All comments (including any personally
identifying information or information
for which a claim of confidentially is
asserted either in those comments or
their transmittal emails) will be made
available for public inspection and
copying. Parties who wish to comment
anonymously may do so by submitting
their comments via Regulations.gov,
leaving the fields that would identify
the commenter blank and including no
identifying information in the comment
itself.
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
7, 2014, 79 FR 46959 (August 11, 2014),
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.
PO 00000
Frm 00027
Fmt 4702
Sfmt 4702
Rulemaking Requirements
1. Executive Orders 13563 and 12866
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distribute impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This rule has been
designated a ‘‘significant regulatory
action,’’ although not economically
significant, under section 3(f) of
Executive Order 12866. Accordingly,
the rule has been reviewed by the Office
of Management and Budget (OMB).
2. Notwithstanding any other
provision of law, no person is required
to respond to, nor is subject to a penalty
for failure to comply with, a collection
of information, subject to the
requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.) (PRA), unless that collection of
information displays a currently valid
OMB control number. This proposed
rule would affect the following
approved collections: Simplified
Network Application Processing System
(control number 0694–0088), which
includes, among other things, license
applications; License Exceptions and
Exclusions (0694–0137); recordkeeping
(0694–0096); export clearance (0694–
0122); and the Automated Export
System (0607–0152).
As stated in the proposed rule
published on July 15, 2011 (76 FR
41958) (the ‘‘July 15 proposed rule’’),
BIS initially estimated that the
combined effect of all rules to be
published, adding items to the EAR that
would be removed from the ITAR as
part of the Administration’s Export
Control Reform Initiative, would
increase the number of license
applications to be submitted to BIS by
approximately 16,000 annually,
resulting in an increase in burden hours
of 5,067 (16,000 transactions at 17
minutes each) under control number
0694–0088. As the review of the USML
has progressed, the interagency group
has gained more specific information
about the number of items that would
come under BIS jurisdiction and
whether those items would be eligible
for export under license exception. As
of June 21, 2012, BIS revised its estimate
to reflect an increase in license
applications of 30,000 annually,
resulting in an increase in burden hours
of 8,500 (30,000 transactions at 17
E:\FR\FM\17JNP1.SGM
17JNP1
srobinson on DSK5SPTVN1PROD with PROPOSALS
Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Proposed Rules
minutes each) under control number
0694–0088. BIS continues to believe
that its revised estimate is accurate.
Notwithstanding this increase in license
applications under the EAR, the net
burden that U.S. export controls impose
on U.S. exporters is expected to go
down, as described below, as a result of
the transfer of less sensitive military
items to the jurisdiction of the
Department of Commerce, under the
EAR, and the application of the license
exceptions and other provisions in the
EAR that are described in this proposed
rule.
As proposed by this rule, certain
dissemination, detection and protection
‘‘equipment’’ and related articles
currently controlled under USML
Category XIV in the ITAR and certain
tooling, production ‘‘equipment,’’ test
and evaluation ‘‘equipment,’’ test
models and related articles currently
controlled under USML Category XVIII
of the ITAR would become subject to
the licensing jurisdiction of the
Department of Commerce under the
EAR and its CCL, and also would be
eligible for certain license exceptions,
including License Exception STA. For
example, items controlled under
proposed ECCN 1A607, 1B607, 1C607,
1D607, 1E607, 6B619, 6D619, or 6E619
would become eligible under certain
provisions of License Exception STA
and would not need a determination of
eligibility as described in § 740.20(g) of
the EAR. 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 at 1
hour and 10 minutes each).
BIS expects that this increase in
burden hours under the EAR would be
more than offset by a reduction in the
burden hours associated with currently
approved collections related to the
ITAR. With few exceptions, most
exports of the dissemination, detection
and protection ‘‘equipment’’ and related
articles and the tooling, production
‘‘equipment,’’ test and evaluation
‘‘equipment,’’ test models and related
articles that this rule proposes to add to
the CCL currently require State
Department authorization, even when
destined to NATO member states and
other close allies. In addition, the
exports of ‘‘technology’’ necessary to
produce such items in the inventories of
the United States and its NATO and
other close allies currently require State
Department authorization. Under the
VerDate Sep<11>2014
16:32 Jun 16, 2015
Jkt 235001
EAR, as proposed by this rule, such
‘‘technology’’ would become eligible for
export to NATO member states and
other close allies under License
Exception STA, unless otherwise
specifically excluded.
The anticipated reduction in burden
hours would particularly impact
exporters of ‘‘parts’’ and ‘‘components’’
that would no longer be subject to the
ITAR, because, with few exceptions, the
ITAR currently exempt from license
requirements only exports to Canada.
Most exports of such ‘‘parts’’ and
‘‘components,’’ even when destined to
NATO and other close allies, currently
require State Department authorization.
Under the EAR, as proposed by this
rule, a small number of low-level
‘‘parts’’ and ‘‘components’’ would not
require a license to most destinations,
while most other ‘‘parts’’ and
‘‘components’’ identified under the
proposed new ‘‘600 series’’ ECCNs
would be eligible for export to NATO
and other close 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
that is being exported to the consignee
and obtain from the consignee an
acknowledgement and commitment to
comply with the requirements of the
EAR. However, the Administration
believes that complying with the
requirements of STA is likely to be 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 allied and, in some cases, U.S.
forces with routine replacement parts
and components.
Even in situations in which a license
would be required under the EAR, the
burden likely will be reduced,
compared to the current license
requirement under the ITAR. In
particular, license applications for
exports of ‘‘technology’’ controlled by
ECCN 1E607 or 6E619 are likely to be
less complex and burdensome than the
authorizations required to export ITARcontrolled ‘‘technology,’’ i.e.,
Manufacturing License Agreements and
Technical Assistance Agreements.
3. This rule does not contain policies
with Federalism implications as that
term is defined under E.O. 13132.
PO 00000
Frm 00028
Fmt 4702
Sfmt 4702
34567
4. The Regulatory Flexibility Act
(RFA), as amended by the Small
Business Regulatory Enforcement
Fairness Act of 1996 (SBREFA), 5 U.S.C.
601 et seq., generally requires an agency
to prepare an initial regulatory
flexibility analysis (IRFA) for 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
certifies that a rule will not have a
significant impact on a substantial
number of small entities, the RFA does
not require the agency to prepare a
regulatory flexibility analysis.
Accordingly, pursuant to section 605(b),
the Chief Counsel for Regulation,
Department of Commerce, has certified
to the Chief Counsel for Advocacy,
Small Business Administration, that this
proposed rule, if promulgated, will not
have a significant impact on a
substantial number of small entities.
The rationale for this certification is as
follows.
Number of Small Entities
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.
Economic Impact
The amendments set forth in this rule
are proposed as part of the
Administration’s ECR initiative, which
seeks to revise the USML to be a
positive control list—one that does not
use generic, catch-all control text to
describe items subject to the ITAR—and
to move some items that the President
has determined no longer warrant
control under the ITAR to control under
the EAR and its CCL. Such items, along
with certain military items currently
identified on the CCL (most of which
are identified on the WAML), will be
controlled under new ‘‘600 series’’
ECCNs on the CCL. In addition, certain
other items currently on the CCL will
move from existing ECCNs to the new
‘‘600 series’’ ECCNs.
This rule addresses certain
dissemination, detection and protection
‘‘equipment’’ and related articles
currently enumerated or otherwise
described in USML Category XIV
(Toxicological Agents, Including
E:\FR\FM\17JNP1.SGM
17JNP1
srobinson on DSK5SPTVN1PROD with PROPOSALS
34568
Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Proposed Rules
Chemical Agents, Biological Agents, and
Associated Equipment) and certain
tooling, production ‘‘equipment,’’ test
and evaluation ‘‘equipment,’’ test
models and related articles currently
enumerated or otherwise described in
USML Category XVIII (Directed Energy
Weapons). Most toxicological agents
(i.e., chemical and biological agents)
and associated equipment and all
Directed Energy Weapons (DEWs)
systems ‘‘specially designed’’ or
modified for military applications,
‘‘equipment’’ ‘‘specially designed’’ or
modified to detect, identify or defend
against such systems, and ‘‘specially
designed’’ ‘‘parts,’’ ‘‘components,’’
‘‘accessories’’ and ‘‘attachments’’ for
such systems or ‘‘equipment’’ would
remain on the USML. However, many
other ‘‘parts’’ and ‘‘components’’ would
become subject to the EAR (as items
described in ECCN 1A607.x, 1B607.x, or
6B619.x), unless specifically
enumerated or otherwise described on
the USML. Many of these ‘‘parts’’ and
‘‘components’’ are more likely, than the
USML articles described above, to be
produced by small businesses. In
addition, officials of the Department of
State have informed BIS that license
applications for such ‘‘parts’’ and
‘‘components’’ represent a high
percentage of the license applications
for USML articles reviewed by that
department. Changing the jurisdictional
status of certain Category XIV and
Category XVIII items would reduce the
burden on small entities (and other
entities as well) through: (i) elimination
of some license requirements; (ii) greater
availability of license exceptions; (iii)
simpler license application procedures;
and (iv) reduced or eliminated
registration fees.
Moreover, ‘‘parts’’ and ‘‘components’’
that are controlled under the ITAR
remain under ITAR control when
incorporated into foreign-made items,
regardless of the significance or
insignificance of the item. This
discourages foreign buyers from
incorporating such U.S. content. The
availability of de minimis treatment
under the EAR, for those items that
would no longer be controlled under the
ITAR, may reduce the disincentive for
foreign manufacturers to purchase U.S.origin ‘‘parts’’ and ‘‘components,’’ a
development that potentially would
mean greater sales for U.S. suppliers,
including small entities.
Many exports and reexports of the
Category XIV or Category XVIII articles
that would be added to the CCL by this
rule (particularly, the ‘‘parts’’ and
‘‘components’’ that would be controlled
under new ECCN 1A607.x, 1B607.x, or
6B619.x) would become eligible for
VerDate Sep<11>2014
16:32 Jun 16, 2015
Jkt 235001
license exceptions that apply to exports
to U.S. Government agencies, exports of
‘‘parts’’ and ‘‘components’’ for use as
replacement parts, temporary exports
and limited value exports (for ECCN
1B607 and 6B619 items, only), as well
as License Exception STA, thereby
reducing the number of licenses that
exporters of these items would need.
License exceptions under the EAR
would allow suppliers to send routine
replacement parts and low level parts to
NATO and other close allies and export
control regime partners for use by those
governments and for use by contractors
building equipment for those
governments or for the U.S. Government
without having to obtain export
licenses. Under License Exception STA,
the exporter would need to furnish
information about the item being
exported to the consignee and obtain a
statement from the consignee that,
among other things, would commit the
consignee to comply with the EAR and
other applicable U.S. laws. Because
such statements and obligations can
apply to an unlimited number of
transactions and have no expiration
date, they would create a net reduction
in burden on transactions that the
government routinely approves through
the license application process that the
License Exception STA statements
would replace.
Even for exports and reexports for
which a license would be required, the
process for obtaining a license would be
simpler and less costly under the EAR.
When a USML Category XIV or Category
XVIII article is moved to the CCL, the
number of destinations for which a
license is required would remain
unchanged. However, the burden on the
license applicant would decrease
because the licensing procedure for CCL
items is simpler and more flexible than
the licensing procedure for USML
articles.
Under the USML licensing procedure,
an applicant must include a purchase
order or contract with its application.
There is no such requirement under the
CCL licensing procedure. This
difference gives the CCL applicant at
least two advantages. First, the
applicant has a way to determine
whether the U.S. Government will
authorize the transaction before it enters
into potentially lengthy, complex and
expensive sales presentations or
contract negotiations. Under the USML
procedure, the applicant must caveat all
sales presentations with a reference to
the need for government approval, and
is more likely to engage in substantial
effort and expense only to find that the
government will reject the application.
Second, a CCL license applicant need
PO 00000
Frm 00029
Fmt 4702
Sfmt 4702
not limit its application to the quantity
or value of one purchase order or
contract. It may apply for a license to
cover all of its expected exports or
reexports to a specified consignee over
the life of a license (normally four years,
but may be longer if circumstances
warrant a longer period), thus reducing
the total number of licenses for which
the applicant must apply.
In addition, many applicants
exporting or reexporting items that this
rule proposes to transfer from the USML
to the CCL would realize cost savings
through the elimination of some or all
registration fees currently assessed
under the USML’s licensing procedure.
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 increase 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. Conversely, there are no
registration or application processing
fees for applications to export items
listed on the CCL. Once the Category
XIV or Category XVIII items that are the
subject to this rulemaking are removed
from the USML and added to the CCL,
entities currently applying for licenses
from the Department of State would find
their registration fees reduced if the
number of USML licenses those entities
need declines. If an entity’s entire
product line is moved to the CCL, its
ITAR registration and registration fee
requirement would be eliminated.
Conclusion
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 on 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. As noted above, any
new burdens proposed by this rule
would be offset by a reduction in the
number of items that would require a
license, increased opportunities for use
of license exceptions for exports to
certain countries, simpler export license
applications, reduced or eliminated
registration fees and application of a de
minimis threshold for foreign-made
items incorporating U.S.-origin parts
E:\FR\FM\17JNP1.SGM
17JNP1
Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Proposed Rules
and components, all of which would
reduce the incentive for foreign buyers
to design out or avoid U.S.-origin
content. Accordingly, the Chief Counsel
for Regulation, Department of
Commerce, has certified to the Chief
Counsel for Advocacy, Small Business
Administration, that this rule, if
implemented, would 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 15 CFR Part 774
Exports, Reporting and recordkeeping
requirements.
For the reasons stated in the
preamble, part 774 of the Export
Administration Regulations (15 CFR
parts 730–774) is proposed to be
amended as follows:
PART 774—[AMENDED]
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 7, 2014, 79
FR 46959 (August 11, 2014).
2. In Supplement No. 1 to part 774
(the Commerce Control List), Category
1—Special Materials and Related
Equipment, Chemicals,
‘‘Microorganisms,’’ and ‘‘Toxins,’’ add a
new ECCN 1A607 between ECCNs
1A290 and 1A613 to read as follows:
■
Supplement No. 1 to Part 774—the
Commerce Control List
*
*
*
*
*
1A607 Military dissemination ‘‘equipment’’
for riot control agents, military detection
and protection ‘‘equipment’’ for
toxicological agents (including chemical,
biological, and riot control agents), and
related commodities (see List of Items
Controlled).
srobinson on DSK5SPTVN1PROD with PROPOSALS
License Requirements
Reason for Control: NS, RS, AT, UN
Control(s)
NS applies to entire
entry.
RS applies to entire
entry.
AT applies to entire
entry.
VerDate Sep<11>2014
Country chart
(see Supp. No. 1 to
Part 738)
NS Column 1.
RS Column 1.
AT Column 1.
16:32 Jun 16, 2015
Jkt 235001
Control(s)
UN applies to entire
entry.
Country chart
(see Supp. No. 1 to
Part 738)
See § 746.1(b) for UN
controls.
List Based License Exceptions (See Part
740 for a Description of All License
Exceptions)
LVS: N/A
GBS: N/A
CIV: N/A
Special Conditions for STA
STA: Paragraph (c)(2) of License
Exception STA (§ 740.20(c)(2) of the
EAR) may not be used for any item in
1A607.
List of Items Controlled
Related Controls: (1) Vaccines identified
in ECCN 1C991 are not controlled by
this ECCN. (2) See 22 CFR 121.1
(USML), Category XIV(h), for vaccines
that are subject to the ITAR. (3)
Protection and detection ‘‘equipment’’
and related items identified in ECCN
1A004, 1A995, or 2B351 are not
controlled by this ECCN. (4) See 22
CFR 121.1 (USML), Category XIV(f),
for dissemination, detection and
protection ‘‘equipment’’ that is subject
to the ITAR. (5) See ECCN 0A919 for
foreign-made ‘‘military commodities’’
that incorporate more than a de
minimis amount of US-origin ‘‘600
series’’ controlled content.
Related Definitions: N/A
Items:
a. through d. [Reserved]
e. ‘‘Equipment’’ ‘‘specially designed’’
for military use and for the
dissemination of any of the riot control
agents controlled in ECCN 1C607.a.
f. Protection ‘‘equipment’’ (including
air conditioning units and protective
clothing):
f.1. Not controlled by USML Category
XIV(f); and
f.2. ‘‘Specially designed’’ for military
use and for defense against:
f.2.1. Materials specified by USML
Category XIV (a) or (b); or
f.2.2. Riot control agents controlled in
1C607.a.
g. Decontamination ‘‘equipment’’:
g.1. Not controlled by USML Category
XIV(f); and
g.2. ‘‘Specially designed’’ for military
use and for decontamination of objects
contaminated with materials controlled
by USML Category XIV(a) or (b).
h. ‘‘Equipment’’:
h.1. Not controlled by USML Category
XIV(f); and
h.2. ‘‘Specially designed’’ for military
use and for the detection or
identification of:
PO 00000
Frm 00030
Fmt 4702
Sfmt 4702
34569
h.2.1. Materials specified by USML
Category XIV(a) or (b); or
h.2.2. Riot control agents controlled
by ECCN 1C607.a.
i. [Reserved]
j. ‘‘Equipment’’ ‘‘specially designed’’
to:
j.1. Interface with a detector, shelter,
vehicle, vessel, or aircraft controlled by
the USML or a ‘‘600 series’’ ECCN; and
j.2. Collect and process samples of
articles controlled in USML Category
XIV(a) or (b).
k. Medical countermeasures that are
‘‘specially designed’’ for military use
(including pre- and post-treatments,
antidotes, and medical diagnostics) and
‘‘specially designed’’ to counter
chemical agents controlled by the USML
Category XIV(a).
Note: Examples of ‘‘equipment’’ controlled
by this entry are barrier and non-barrier
creams and filled autoinjectors (e.g.,
combopens where one injector contains 2–
PAM and the other atropine) if ‘‘specially
designed’’ to counter such agents.
l. through w. [Reserved]
x. ‘‘Parts,’’ ‘‘components,’’
‘‘accessories,’’ and ‘‘attachments’’ that
are ‘‘specially designed’’ for a
commodity controlled by ECCN
1A607.e, .f, .g, or .j or for a defense
article controlled by USML Category
XIV(f) and that are not enumerated or
otherwise described elsewhere in the
USML.
3. In Supplement No. 1 to part 774 (the
Commerce Control List), Category 1—Special
Materials and Related Equipment, Chemicals,
‘‘Microorganisms,’’ and ‘‘Toxins,’’ add a new
ECCN 1B607 between ECCNs 1B234 and
1B608 to read as follows:
1B607 Military test, inspection, and
production ‘‘equipment’’ and related
commodities ‘‘specially designed’’ for
the ‘‘development,’’ ‘‘production,’’
repair, overhaul, or refurbishing of
commodities identified in ECCN 1A607
or 1C607, or defense articles
enumerated or otherwise described in
USML Category XIV (see List of Items
Controlled).
License Requirements
Reason for Control: NS, RS, AT, UN
Control(s)
NS applies to entire
entry.
RS applies to entire
entry.
AT applies to entire
entry.
UN applies to entire
entry.
E:\FR\FM\17JNP1.SGM
17JNP1
Country chart
(see Supp. No. 1 to
Part 738)
NS Column 1.
RS Column 1.
AT Column 1.
See § 746.1(b) for UN
controls.
34570
Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Proposed Rules
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 (§ 740.20(c)(2) of the
EAR) may not be used for any item in
1B607.
List of Items Controlled
Related Controls: (1) See ECCN 2B350
for controls on certain incinerators.
(2) See ECCN 0A919 for foreign-made
‘‘military commodities’’ that
incorporate more than a de minimis
amount of US-origin ‘‘600 series’’
controlled content.
Related Definitions: N/A
Items:
a. ‘‘Equipment’’ ‘‘specially designed’’
for the destruction of the chemical
agents controlled by USML Category
XIV(a).
srobinson on DSK5SPTVN1PROD with PROPOSALS
Note to 1B607.a: ECCN 1B607.a includes
controls over facilities ‘‘specially designed’’
for destruction operations. This paragraph .a
does not control incinerators and ‘‘specially
designed’’ handling facilities or ‘‘specially
designed’’ waste supply systems therefor.
b. Test facilities and ‘‘equipment’’
‘‘specially designed’’ for military
certification, qualification, or testing of
commodities controlled by ECCN
1A607.e, .f, .g, or .j or by USML
Category XIV(f), except for XIV(f)(1).
c. Tooling and ‘‘equipment’’
‘‘specially designed’’ for the
‘‘development,’’ ‘‘production,’’ repair,
overhaul, or refurbishing of
commodities controlled by ECCN
1A607.e, .f .g, or .j or USML Category
XIV(f).
d. through w. [RESERVED]
x. ‘‘Parts,’’ ‘‘components,’’
‘‘accessories,’’ and ‘‘attachments’’ that
are ‘‘specially designed’’ for a
commodity controlled by ECCN 1B607.b
or .c, or for a defense article controlled
by USML Category XIV(f), and that are
not enumerated or otherwise described
elsewhere in the USML.
■ 4. In Supplement No. 1 to part 774
(the Commerce Control List), Category
1—Special Materials and Related
Equipment, Chemicals,
‘‘Microorganisms,’’ and ‘‘Toxins,’’ add a
new ECCN 1C607 between ECCNs
1C395 and 1C608 to read as follows:
1C607 Tear Gases, Riot Control Agents and
materials for the detection and
decontamination of chemical warfare
agents (see List of Items Controlled).
License Requirements
Reason for Control: NS, RS, AT, UN
VerDate Sep<11>2014
16:32 Jun 16, 2015
Jkt 235001
Control(s)
NS applies to entire
entry, except
1C607.a.10, .a.11,
.a.12, and .a.14.
RS applies to entire
entry.
AT applies to entire
entry.
UN applies to entire
entry.
Country chart
(see Supp. No. 1 to
Part 738)
NS Column 1.
RS Column 1.
AT Column 1.
See § 746.1(b) for UN
controls.
List Based License Exceptions (See Part 740
for a Description of All License Exceptions)
LVS: N/A
GBS: N/A
CIV: N/A
Special Conditions for STA
STA: Paragraph (c)(2) of License Exception
STA (§ 740.20(c)(2) of the EAR) may not be
used for any item in 1C607.
List of Items Controlled
Related Controls: (1) See ECCN 1A984 for
controls on other riot control agents. (2)
See 22 CFR 121.1 (USML), Category XIV(b),
for modified biological agents and
biologically derived substances that are
subject to the ITAR. (3) See 22 CFR 121.1
(USML), Category XIV(g), for ITAR controls
on antibodies, recombinant protective
antigens, polynucleotides, biopolymers or
biocatalysts (including the expression
vectors, viruses, plasmids, or cultures of
specific cells used to produce them) that
are ‘‘specially designed’’ for use with
articles controlled under USML Category
XIV(f). (4) See ECCN 0A919 for foreignmade ‘‘military commodities’’ that
incorporate more than a de minimis
amount of US-origin ‘‘600 series’’
controlled content.
Related Definitions: N/A
Items:
a. Tear gases and riot control agents
including:
a.1. CA (Bromobenzyl cyanide) (CAS 5798–
79–8);
a.2. CS (o–Chlorobenzylidenemalononitrile
or o–Chlorobenzalmalononitrile) (CAS 2698–
41–1);
a.3. CN (Phenylacyl chloride or w–
Chloroacetophenone) (CAS 532–27–4);
a.4. CR (Dibenz–(b,f)–1,4–oxazephine)
(CAS 257–07–8);
a.5. Adamsite (Diphenylamine chloroarsine
or DM) (CAS 578–94–9);
a.6. N-Nonanoylmorpholine, (MPA) (CAS
5299–64–9);
a.7. Dibromodimethyl ether (CAS 4497–
29–4);
a.8. Dichlorodimethyl ether (ClCi) (CAS
542–88–1);
a.9. Ethyldibromoarsine (CAS 683–43–2);
a.10. Bromo acetone (CAS 598–31–2);
a.11. Bromo methylethylketone (CAS 816–
40–0);
a.12. Iodo acetone (CAS 3019–04–3);
a.13. Phenylcarbylamine chloride (CAS
622–44–6);
a.14. Ethyl iodoacetate (CAS 623–48–3);
Note to 1C607.a: ECCN 1C607.a. does not
control formulations containing 1% or less
PO 00000
Frm 00031
Fmt 4702
Sfmt 4702
CN or CS or individually packaged tear gases
or riot control agents for personal selfdefense purposes that are controlled by
ECCN 1A984, or to active constituent
chemicals, and combinations thereof,
identified and packaged for food production
or medical purposes.
b. ‘‘Biopolymers,’’ not controlled by USML
Category XIV(g) ‘‘specially designed’’ or
processed for the detection or identification
of chemical warfare agents specified by
USML Category XIV(a), and the cultures of
specific cells used to produce them.
c. ‘‘Biocatalysts,’’ and biological systems
therefor, not controlled by USML Category
XIV(g) ‘‘specially designed’’ for the
decontamination or degradation of chemical
warfare agents controlled in USML Category
XIV (a), as follows:
c.1. ‘‘Biocatalysts’’ ‘‘specially designed’’ for
the decontamination or degradation of
chemical warfare agents controlled in USML
Category XIV(a) resulting from directed
laboratory selection or genetic manipulation
of biological systems;
c.2. Biological systems containing the
genetic information specific to the
production of ‘‘biocatalysts’’ specified by
1C607.c.1, as follows:
c.2.a. ‘‘Expression vectors;’’
c.2.b. Viruses; or
c.2.c. Cultures of cells.
Note to 1C607.b and .c: The cultures of
cells and biological systems are exclusive
and these sub-items do not apply to cells or
biological systems for civil purposes, such as
agricultural, pharmaceutical, medical,
veterinary, environmental, waste
management, or in the food industry.
d. Chemical mixtures not controlled by
USML Category XIV(f) ‘‘specially designed’’
for military use for the decontamination of
objects contaminated with materials
specified by USML Category XIV(a) or (b).
5. In Supplement No. 1 to part 774
(the Commerce Control List), Category
1—Special Materials and Related
Equipment, Chemicals,
‘‘Microorganisms,’’ and ‘‘Toxins,’’ add a
new ECCN 1D607 between ECCNs
1D390 and 1D608 to read as follows:
■
1D607 ‘‘Software’’ ‘‘specially designed’’ for
the ‘‘development,’’ ‘‘production,’’
operation, or maintenance of items
controlled by 1A607, 1B607 or 1C607
(see List of Items Controlled).
License Requirements
Reason for Control: NS, RS, AT, UN
Control(s)
NS applies to entire
entry, except ‘‘software’’ for
1C607.a.10, .a.11,
.a.12, and .a.14.
RS applies to entire
entry.
AT applies to entire
entry.
UN applies to entire
entry.
E:\FR\FM\17JNP1.SGM
17JNP1
Country chart
(see Supp. No. 1 to
Part 738)
NS Column 1.
RS Column 1.
AT Column 1.
See § 746.1(b) for UN
controls.
Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Proposed Rules
List Based License Exceptions (See Part 740
for a Description of All License Exceptions)
CIV: N/A
TSR: N/A
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 (§ 740.20(c)(2) of the EAR) may not be
used for any item in 1D607.
Special Conditions for STA
STA: Paragraph (c)(2) of License Exception
STA (§ 740.20(c)(2) of the EAR) may not be
used for any item in 1E607.
List of Items Controlled
Related Controls: (1) ‘‘Software’’ directly
related to articles enumerated or otherwise
described in USML Category XIV is subject
to the ITAR (see 22 CFR 121.1, Category
XIV(m)). ‘‘Software’’ controlled by USML
Category XIV(m) includes ‘‘software’’
directly related to any equipment
containing reagents, algorithms,
coefficients, software, libraries, spectral
databases, or alarm set point levels
developed under U.S. Department of
Defense contract or funding for the
detection, identification, warning or
monitoring of items controlled in
paragraphs (a) or (b) of USML Category
XIV, or for chemical or biological agents
specified by U.S. Department of Defense
funding or contract. (2) See ECCN 0A919
for foreign-made ‘‘military commodities’’
that incorporate more than a de minimis
amount of US-origin ‘‘600 series’’
controlled content.
Related Definitions: N/A
Items:
a. ‘‘Software’’ ‘‘specially designed’’ for the
‘‘development,’’ ‘‘production,’’ operation, or
maintenance of commodities controlled by
ECCN 1A607, 1B607, or 1C607.
b. [RESERVED]
List of Items Controlled
Related Controls: Technical data directly
related to defense articles enumerated or
otherwise described in USML Category XIV
are subject to the ITAR (see 22 CFR 121.1,
Category XIV(m)). Technical data
controlled by USML Category XIV(m)
include technical data directly related to
any equipment containing reagents,
algorithms, coefficients, software, libraries,
spectral databases, or alarm set point levels
developed under U.S. Department of
Defense contract or funding for the
detection, identification, warning or
monitoring of items controlled in
paragraphs (a) or (b) of USML Category
XIV, or for chemical or biological agents
specified by U.S. Department of Defense
funding or contract.
Related Definitions: N/A
Items:
a. ‘‘Technology’’ ‘‘required’’ for the
‘‘development,’’ ‘‘production,’’ operation,
installation, maintenance, repair, overhaul,
or refurbishing of items controlled by ECCN
1A607, 1B607, 1C607 or 1D607.
Note to 1E607.a: ECCN 1E607.a includes
‘‘technology’’ ‘‘required’’ exclusively for the
incorporation of ‘‘biocatalysts’’ controlled by
ECCN 1C607.c.1 into military carrier
substances or military material.
b. [RESERVED]
6. In Supplement No. 1 to part 774
(the Commerce Control List), Category
1—Special Materials and Related
Equipment, Chemicals,
‘‘Microorganisms,’’ and ‘‘Toxins,’’ add a
new ECCN 1E607 between ECCNs
1E355 and 1E608 to read as follows:
■
1E607 ‘‘Technology’’ ‘‘required’’ for the
‘‘development,’’ ‘‘production,’’
operation, installation, maintenance,
repair, overhaul, or refurbishing of
items controlled by ECCN 1A607, 1B607,
1C607, or 1D607 (see List of Items
Controlled).
License Requirements
Reason for Control: NS, RS, AT, UN
srobinson on DSK5SPTVN1PROD with PROPOSALS
Control(s)
NS applies to entire
entry, except
‘‘technology’’ for
1C607.a.10, .a.11,
.a.12, and .a.14
and for 1D607
‘‘software’’ therefor.
RS applies to entire
entry.
AT applies to entire
entry.
UN applies to entire
entry.
VerDate Sep<11>2014
7. In Supplement No. 1 to Part 774
(the Commerce Control List), Category
6—Sensors and Lasers,’’ add a new
ECCN 6B619 between ECCNs 6B108 and
6B995 to read as follows:
■
6B619 Test, inspection, and production
‘‘equipment’’ and related commodities
‘‘specially designed’’ for the
‘‘development,’’ ‘‘production,’’ repair,
overhaul, or refurbishing of
commodities enumerated or otherwise
described in USML Category XVIII (see
List of Items Controlled)
License Requirements
Reason for Control: NS, RS, AT, UN
Country chart
(see Supp. No. 1 to
Part 738)
Control(s)
NS Column 1.
NS applies to entire
entry.
RS applies to entire
entry.
AT applies to entire
entry.
UN applies to entire
entry.
RS Column 1.
AT Column 1.
See § 746.1(b) for UN
controls.
16:32 Jun 16, 2015
Jkt 235001
Country chart
(see Supp. No. 1 to
Part 738)
NS Column 1.
RS Column 1.
AT Column 1.
See § 746.1(b) for UN
controls.
License Exceptions
LVS: $1,500
GBS: N/A
PO 00000
Frm 00032
Fmt 4702
Sfmt 4702
34571
CIV: N/A
Special Conditions for STA
STA: Paragraph (c)(2) of License Exception
STA (§ 740.20(c)(2) of the EAR) may not be
used for any item in 6B619.
List of Items Controlled
Related Controls: ‘‘Parts, ‘‘components,’’
‘‘accessories,’’ ‘‘attachments,’’ and
associated systems or ‘‘equipment’’
‘‘specially designed’’ for defense articles
enumerated or otherwise described in
paragraphs (a) or (b) of USML Category
XVIII are subject to the ITAR (see 22 CFR
121.1, Category XVIII(e)).
Related Definitions: N/A
Items:
a. Tooling, templates, jigs, mandrels,
molds, dies, fixtures, alignment mechanisms,
and test ‘‘equipment’’ not enumerated or
otherwise described in USML Category XVIII
and not elsewhere specified on the USML
that are ‘‘specially designed’’ for the
‘‘development,’’ ‘‘production,’’ repair,
overhaul, or refurbishing of commodities
controlled by USML Category XVIII.
b. through w. [Reserved]
x. ‘‘Parts,’’ ‘‘components,’’ ‘‘accessories,’’
and ‘‘attachments’’ ‘‘specially designed’’ for a
commodity subject to control under
paragraph .a of this ECCN and not
enumerated or otherwise described in USML
Category XVIII and not elsewhere specified
on the USML.
8. In Supplement No. 1 to Part 774
(the Commerce Control List), Category
6—Sensors and Lasers,’’ add a new
ECCN 6D619 between ECCNs 6D201
and 6D991 to read as follows:
■
6D619 ‘‘Software’’ ‘‘specially designed’’ for
the ‘‘development,’’ ‘‘production,’’
operation or maintenance of
commodities controlled by 6B619.
License Requirements
Reason for Control: NS, RS, AT, UN
Control(s)
NS applies to entire
entry.
RS applies to entire
entry.
AT applies to entire
entry.
UN applies to entire
entry.
Country chart
(see Supp. No. 1 to
Part 738)
NS Column 1.
RS Column 1.
AT Column 1.
See § 746.1(b) for UN
controls.
License Exceptions
CIV: N/A
TSR: N/A
Special Conditions for STA
STA: Paragraph (c)(2) of License Exception
STA (§ 740.20(c)(2) of the EAR) may not be
used for any item in 6D619.
List of Items Controlled
Related Controls: ‘‘Software’’ directly related
to articles enumerated or otherwise
described in USML Category XVIII is
subject to the ITAR (See 22 CFR 121.1,
Category XVIII(f)).
E:\FR\FM\17JNP1.SGM
17JNP1
34572
Federal Register / Vol. 80, No. 116 / Wednesday, June 17, 2015 / Proposed Rules
Related Definitions: N/A
Items:
The list of items controlled is contained in
the ECCN heading.
9. In Supplement No. 1 to Part 774
(the Commerce Control List), Category
6—Sensors and Lasers,’’ add a new
ECCN 6E619 between ECCNs 6E202 and
6E990 to read as follows:
■
6E619 ‘‘Technology’’ ‘‘required’’ for the
‘‘development,’’ ‘‘production,’’
operation, installation, maintenance,
repair, overhaul or refurbishing of
commodities controlled by 6B619 or
‘‘software’’ controlled by 6D619.
License Requirements
Reason for Control: NS, RS, AT, UN
Control(s)
NS applies to entire
entry.
RS applies to entire
entry.
AT applies to entire
entry.
UN applies to entire
entry.
Country chart
(see Supp. No. 1 to
Part 738)
NS Column 1.
RS Column 1.
AT Column 1.
See § 746.1(b) for UN
controls.
License Exceptions
CIV: N/A
TSR: N/A
Special Conditions for STA
STA: Paragraph (c)(2) of License Exception
STA (§ 740.20(c)(2) of the EAR) may not be
used for any item in 6E619.
List of Items Controlled
Related Controls: Technical data directly
related to articles enumerated or otherwise
described in USML Category XVIII are
subject to the ITAR (See 22 CFR 121.1,
Category XVIII(f)).
Related Definitions: N/A
Items:
The list of items controlled is contained in
the ECCN heading.
Dated: June 9, 2015.
Kevin J. Wolf,
Assistant Secretary for Export
Administration.
[FR Doc. 2015–14474 Filed 6–16–15; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF STATE
22 CFR Part 121
srobinson on DSK5SPTVN1PROD with PROPOSALS
RIN 1400–AD03
[Public Notice: 9166]
Amendment to the International Traffic
in Arms Regulations: Revision of U.S.
Munitions List Categories XIV and XVIII
Department of State.
Proposed rule.
AGENCY:
ACTION:
VerDate Sep<11>2014
16:32 Jun 16, 2015
Jkt 235001
As part of the President’s
Export Control Reform effort, the
Department of State proposes to amend
the International Traffic in Arms
Regulations (ITAR) to revise Categories
XIV (toxicological agents, including
chemical agents, biological agents, and
associated equipment) and XVIII
(directed energy weapons) of the U.S.
Munitions List (USML) to describe more
precisely the articles warranting control
on the USML. The revisions contained
in this rule are part of the Department
of State’s retrospective plan under E.O.
13563 completed on August 17, 2011.
The Department of State’s full plan can
be accessed at https://www.state.gov/
documents/organization/181028.pdf.
DATES: The Department of State will
accept comments on this proposed rule
until August 17, 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, ‘‘ITAR Amendment—
Categories XIV and XVIII.’’
• Internet: At www.regulations.gov,
search for this proposed rule by using
this rule’s RIN (1400–AD03).
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 wish 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—USML
Categories XIV and XVIII.
SUPPLEMENTARY INFORMATION: The
Directorate of Defense Trade Controls
(DDTC), U.S. Department of State,
administers the International Traffic in
SUMMARY:
PO 00000
Frm 00033
Fmt 4702
Sfmt 4702
Arms Regulations (ITAR) (22 CFR parts
120–130). The items subject to the
jurisdiction of the ITAR, i.e., ‘‘defense
articles,’’ are identified on the ITAR’s
U.S. Munitions List (USML) (22 CFR
121.1). With few exceptions, items not
subject to the export control jurisdiction
of the ITAR are subject to the
jurisdiction of the Export
Administration Regulations (‘‘EAR,’’ 15
CFR parts 730–774, which includes the
Commerce Control List (CCL) in
Supplement No. 1 to Part 774),
administered by the Bureau of Industry
and Security (BIS), U.S. Department of
Commerce. Both the ITAR and the EAR
impose license requirements on exports
and reexports. Items not subject to the
ITAR or to the exclusive licensing
jurisdiction of any other set of
regulations are subject to the EAR.
Revision of Category XIV
This proposed rule revises USML
Category XIV, covering toxicological
agents, including chemical agents,
biological agents, and associated
equipment. The revisions are proposed
in order to advance the national security
objectives of greater interoperability
with U.S. allies, enhancing the defense
industrial base, and permitting the U.S.
government to focus its resources on
transactions of greater concern.
Additionally, the revisions are intended
to more accurately describe the articles
within the subject categories, in order to
establish a ‘‘bright line’’ between the
USML and the CCL for the control of
these articles.
This proposed rule implements
changes consistent with the
requirements of Executive Order 13546
on Optimizing the Security of Biological
Select Agents and Toxins in the United
States, which includes direction to
address variations in, and limited
coordination of, individual executive
departments’ and agencies’ oversight
that add to the cost and complexity of
compliance. It also directs a risk-based
tiering of the biological select agent list.
As a result, the proposed control
language in paragraph (b) adopts the
‘‘Tier 1’’ pathogens and toxins
established in the Department of Health
and Human Services and the United
States Department of Agriculture select
agent regulations (42 CFR part 73 and 9
CFR 121) for those pathogens and toxins
that meet specific capabilities listed in
paragraph (b). The Tier 1 pathogens and
toxins that do not meet these
capabilities remain controlled in Export
Control Classification Number (ECCN)
1C351 or 1C352 on the CCL.
Additionally, this rule, in concert
with the analogous proposed rule
published by the Department of
E:\FR\FM\17JNP1.SGM
17JNP1
]]>Agencies
[Federal Register Volume 80, Number 116 (Wednesday, June 17, 2015)]
[Proposed Rules]
[Pages 34562-34572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-14474]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Part 774
[Docket No. 120105019-5328-01]
RIN 0694-AF52
Commerce Control List: Addition of Items Determined to No Longer
Warrant Control Under United States Munitions List Category XIV
(Toxicological Agents) or Category XVIII (Directed Energy Weapons)
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule describes how articles the President
determines no longer warrant control under Category XIV (Toxicological
Agents, Including Chemical Agents, Biological Agents, and Associated
Equipment) or Category XVIII (Directed Energy Weapons) of the United
States Munitions List (USML) would be controlled under the Commerce
Control List (CCL). The affected Category XIV articles consist
primarily of dissemination, detection and protection ``equipment'' and
related articles and would be controlled under new Export Control
Classification Numbers (ECCNs) 1A607, 1B607, 1C607, 1D607, and 1E607,
as proposed by this rule. The affected Category XVIII articles consist
primarily of tooling, production ``equipment,'' test and evaluation
``equipment,'' test models and related articles and would be controlled
under new ECCNs 6B619, 6D619 and 6E619, as proposed by this rule.
This rule is one in a series of proposed rules describing how
various types of articles that the President determines no longer
warrant control on the USML, as part of the Administration's Export
Control Reform Initiative, would be controlled on the CCL in accordance
with the requirements of the Export Administration Regulations (EAR).
This proposed rule is being published by the Bureau of Industry and
Security (BIS) in conjunction with a proposed rule from the Department
of State, Directorate of Defense Trade Controls, which would amend the
list of articles controlled by USML Categories XIV and XVIII. The
citations in this BIS proposed rule to USML Categories XIV and XVIII
reflect the proposed amendments contained in the Department of State's
rule. The revisions proposed by BIS in this rule are part of Commerce's
retrospective regulatory review plan under Executive Order 13563
completed in August 2011.
DATES: Comments must be received by August 17, 2015.
ADDRESSES: You may submit comments by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
The identification number for this rulemaking is BIS-2015-0023.
By email directly to publiccomments@bis.doc.gov. Include
RIN 0694-AF52 in the subject line.
By mail or delivery to Regulatory Policy Division, Bureau
of Industry and Security, U.S. Department of Commerce, Room 2099B, 14th
Street and Pennsylvania Avenue NW., Washington, DC 20230. Refer to RIN
0694-AF52.
FOR FURTHER INFORMATION CONTACT: For questions regarding dissemination,
detection and protection ``equipment'' and related articles that would
be controlled under new ECCNs 1A607, 1B607, 1C607, 1D607, and 1E607,
contact Richard P. Duncan, Ph.D., Director, Chemical and Biological
Controls Division, Office of Nonproliferation and Treaty Compliance,
Bureau of Industry and Security, telephone: (202) 482-3343, email:
Richard.Duncan@bis.doc.gov.
For questions regarding tooling, production ``equipment,'' test and
evaluation ``equipment'' and test models that would be controlled under
new ECCNs 6B619, 6D619 and 6E619, contact Mark Jaso, Sensors and
Aviation Division, Office of National Security & Technology Transfer
Controls, Bureau of Industry and Security, telephone: (202)
[[Page 34563]]
482-0987, email: Mark.Jaso@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
This proposed rule is published by the Bureau of Industry and
Security (BIS) as part of the Administration's Export Control Reform
(ECR) Initiative, the object of which is to protect and enhance U.S.
national security interests. The implementation of the ECR includes
amendment of the International Traffic in Arms Regulations (ITAR) and
its U.S. Munitions List (USML), so that they control only those items
that provide the United States with a critical military or intelligence
advantage or otherwise warrant such controls, and amendment of the
Export Administration Regulations (EAR) to control military items that
do not warrant USML controls. This series of amendments to the ITAR and
the EAR will reform the U.S. export control system to enhance our
national security by: (i) improving the 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 national security, foreign
policy, or proliferation concerns than those involving our NATO allies
and other multi-regime partners.
Following the structure set forth in the final rule titled
``Revisions to the Export Administration Regulations: Initial
Implementation of Export Control Reform'' (78 FR 22660, April 16, 2013)
(hereinafter the ``April 16 (initial implementation) rule''), this
proposed rule describes BIS's proposal for controlling under the EAR's
CCL certain dissemination, detection and protection ``equipment'' and
related articles currently controlled under USML Category XIV in the
ITAR and certain tooling, production ``equipment,'' test and evaluation
``equipment,'' test models and related articles currently controlled
under USML Category XVIII of the ITAR.
In the April 16 (initial implementation) rule, BIS created a series
of new ECCNs to control items that would be removed from the USML and
similar items from the Wassenaar Arrangement on Export Controls for
Conventional Arms and Dual Use Goods and Technologies Munitions List
(Wassenaar Arrangement Munitions List or WAML) that were already
controlled elsewhere on the CCL. That final rule referred to this
series of new ECCNs as the ``600 series,'' because the third character
in each of these new ECCNs is the number ``6.'' The first two
characters of the ``600 series'' ECCNs serve the same function as any
other ECCN as described in Sec. 738.2 of the EAR. The first character
is a number, within the range of 0 through 9, that identifies the
Category on the CCL in which the ECCN is located. The second character
is a letter, within the range of A through E, that identifies the
product group in a CCL Category. As indicated above, the third
character in the ``600 series'' ECCNs is the number ``6,'' which
distinguishes the items controlled under this series of ECCNs from
items identified under other ECCNs on the CCL. With few exceptions, the
final two characters identify the WAML category that covers items that
are the same or similar to items in a particular ``600 series'' ECCN.
Pursuant to section 38(f) of the Arms Export Control Act (AECA),
the President is obligated 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 Congress and wait 30
days before removing any such items from the USML. The report must
``describe the nature of any controls to be imposed on that item under
any other provision of law.'' 22 U.S. C. 2778(f)(1).
The changes proposed in this rule and the State Department's
companion rule to Categories XIV and XVIII of the USML are based on a
review of these USML Categories by the Defense Department, which worked
with the Departments of State and Commerce in preparing the proposed
amendments. The review focused on identifying the types of articles
that are now controlled by USML Category XIV or Category XVIII that are
either: (i) inherently military and otherwise warrant control on the
USML; or (ii) of a type common to civil applications, possessing
parameters or characteristics that provide a critical military or
intelligence advantage to the United States, and are almost exclusively
available from the United States. If an article was found to satisfy
either or both of these 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 proposed by this rule.
All references to the USML in this rule are to the list of defense
articles that are controlled for purposes of export, temporary import,
or brokering pursuant to the ITAR, and not to the list of defense
articles on the United States Munitions Import List (USMIL) that are
controlled by the Bureau of Alcohol, Tobacco, Firearms and Explosives
(ATF) for purposes of permanent import under its regulations at 27 CFR
part 447. Pursuant to section 38(a)(1) of the AECA, all defense
articles controlled for export or import, or that are subject to
brokering controls, are part of the ``USML'' under the AECA. For the
sake of clarity, references to the USMIL are to the list of defense
articles controlled by ATF for purposes of permanent import. All
defense articles described in the USMIL or the USML are subject to the
brokering controls administered by the U.S. Department of State in part
129 of the ITAR. The transfer of defense articles from the ITAR's USML
to the EAR's CCL, for purposes of export controls, does not affect the
list of defense articles that are controlled on the USMIL under the
AECA for purposes of permanent import or brokering controls.
On January 18, 2011, the President issued Executive Order 13563,
affirming general principles of regulation and directing government
agencies to conduct retrospective reviews of existing regulations. The
revisions proposed in this rule are part of Commerce's retrospective
regulatory review plan under Executive Order 13563. Commerce's full
plan, completed in August 2011, can be accessed at: https://open.commerce.gov/news/2011/08/23/commerce-plan-retrospective-analysis-existing-rules.
Changes Proposed by This Rule to Controls on Certain Dissemination,
Detection and Protection ``Equipment'' and Related Items Currently
Controlled Under USML Category XIV
This proposed rule would create five new ``600 series'' ECCNs in
CCL Category 1 (ECCNs 1A607, 1B607, 1C607, 1D607, and 1E607) that would
clarify the EAR controls that apply to certain dissemination, detection
and protection ``equipment'' and related items the President determines
no longer warrant control under USML Category XIV. Terms such as
``part,'' ``component'' ``accessories,'' ``attachments,'' and
``specially designed'' are applied in the same manner in this rule as
those terms are defined in Section 772.1 of the EAR. In addition, to
assist exporters in determining the control status of their items, a
``Specially Designed'' Decision Tool and a CCL Order of Review Decision
Tool are available on the BIS
[[Page 34564]]
Web site at: https://www.bis.doc.gov/index.php/decision-tree-tools.
New ECCN 1A607: Military dissemination ``equipment'' for riot
control agents, military detection and protection ``equipment'' for
toxicological agents (including chemical, biological, and riot control
agents), and related commodities.
In proposed ECCN 1A607, paragraphs .a through .d, paragraph .i, and
paragraphs .l through .w would be reserved. Paragraph .e of ECCN 1A607
would control ``equipment'' ``specially designed'' for military use and
for the dissemination of any of the riot control agents controlled in
ECCN 1C607.a. Paragraph .f of ECCN 1A607 would control protection
``equipment'' ``specially designed'' for military use and for defense
against either materials controlled by USML Category XIV(a) or (b) or
any of the riot control agents in new ECCN 1C607.a. Paragraph .g of
ECCN 1A607 would control decontamination ``equipment'' not controlled
by USML Category XIV(f) that is ``specially designed'' for military use
and for the decontamination of objects contaminated with materials
controlled by USML Category XIV(a) or (b). Paragraph .h would control
``equipment'' not controlled by USML Category XIV(f) that is
``specially designed'' for military use and for the detection or
identification of either materials specified by USML Category XIV(a) or
(b) or riot control agents controlled by proposed new ECCN 1C607.a.
Paragraph .j would control ``equipment'' ``specially designed'' to: (i)
Interface with a detector, shelter, vehicle, vessel, or aircraft
controlled by the USML or a ``600 series'' ECCN; and (ii) collect and
process samples of articles controlled in USML Category XIV(a) or (b).
Paragraph .k would control medical countermeasures that are ``specially
designed'' for military use (including pre- and post- treatments,
antidotes, and medical diagnostics) and ``specially designed'' to
counter chemical agents controlled by USML Category XIV(a). Paragraph
.x would control ``parts,'' ``components,'' ``accessories,'' and
``attachments'' that are ``specially designed'' for a commodity
controlled under ECCN 1A607.e, .f, .g, .or .j or a defense article
controlled in USML Category XIV(f) and that are not enumerated or
otherwise described elsewhere in the USML.
New ECCN 1B607: Military test, inspection, and production
``equipment'' and related commodities ``specially designed'' for the
``development,'' ``production,'' repair, overhaul, or refurbishing of
commodities identified in ECCN 1A607 or 1C607, or defense articles
enumerated or otherwise described in USML Category XIV.
In proposed ECCN 1B607, paragraph .a would control ``equipment,''
not including incinerators, that is ``specially designed'' for the
destruction of chemical agents controlled by USML Category XIV(a).
Paragraph .b of ECCN 1B607 would control test facilities and
``equipment'' that are ``specially designed'' for military
certification, qualification, or testing of commodities controlled by
new ECCN 1A607.e, .f, .g, or .j or by USML Category XIV(f), except for
XIV(f)(1). Paragraph .c would control tooling and ``equipment''
``specially designed'' for the ``development,'' ``production,'' repair,
overhaul, or refurbishing of commodities controlled under new ECCN
1A607.e, .f, .g, or .j or USML Category XIV(f). Paragraphs .d through
.w would be reserved. Paragraph .x would control ``parts,''
``components,'' ``accessories,'' and ``attachments,'' not enumerated or
otherwise described elsewhere in the USML, that are ``specially
designed'' for a commodity controlled by ECCN 1B607.b or .c or for a
defense article controlled by USML Category XIV(f).
New ECCN 1C607: Tear gases, riot control agents and materials for
the detection and decontamination of chemical warfare agents.
Proposed ECCN 1C607.a would control specified tear gases and riot
control agents. Paragraph .b of ECCN 1C607 would control
``biopolymers'' not controlled by USML Category XIV(g) that are
``specially designed'' or processed for the detection or identification
of chemical warfare (CW) agents specified by USML Category XIV(a) and
the cultures of specific cells used to produce them. Paragraph .c would
control specified ``biocatalysts'' and biological systems that are not
controlled by USML Category XIV(g) and are ``specially designed'' for
the decontamination or degradation of CW agents specified by USML
Category XIV(a). Paragraph .d would control chemical mixtures not
controlled by USML Category XIV(f) that are ``specially designed'' for
military use for the decontamination of objects contaminated with
materials specified by USML Category XIV(a) or (b).
New ECCN 1D607: ``Software'' ``specially designed'' for the
``development,'' ``production,'' operation, or maintenance of items
controlled by 1A607, 1B607 or 1C607.
Proposed ECCN 1D607.a would control ``software'' ``specially
designed'' for the ``development,'' ``production,'' operation, or
maintenance of items controlled by ECCN 1A607, 1B607 or 1C607.
Paragraph .b of ECCN 1D607 would be reserved.
New ECCN 1E607: ``Technology'' ``required'' for the
``development,'' ``production,'' operation, installation, maintenance,
repair, overhaul, or refurbishing of items controlled by ECCN 1A607,
1B607, 1C607, or 1D607.
Proposed ECCN 1E607.a would control ``technology'' ``required'' for
the ``development,'' ``production,'' operation, installation,
maintenance, repair, overhaul, or refurbishing of items controlled by
ECCN 1A607, 1B607, 1C607, or 1D607. Paragraph .b of ECCN 1E607 would be
reserved.
Changes Proposed by This Rule to Controls on Certain Tooling,
Production ``Equipment,'' Test and Evaluation ``Equipment'' and Test
Models Currently Controlled Under USML Category XVIII
This rule proposes to create three new ``600 series'' ECCNs in CCL
Category 6 (ECCNs 6B619, 6D619 and 6E619) that would clarify the EAR
controls that apply to certain tooling, production ``equipment,'' test
and evaluation ``equipment,'' test models and related articles for
Directed Energy Weapons (DEWs) that the President determines no longer
warrant control under USML Category XVIII. Terms such as ``part,''
``component'' ``accessories,'' ``attachments,'' and ``specially
designed'' are applied in the same manner in this rule as those terms
are defined in Section 772.1 of the EAR. In addition, to assist
exporters in determining the control status of their items, a
``Specially Designed'' Decision Tool and a CCL Order of Review Decision
Tool are available on the BIS Web site at: https://www.bis.doc.gov/index.php/decision-tree-tools.
New ECCN 6B619: Test, inspection and production ``equipment,'' and
related commodities, ``specially designed'' for the ``development,''
``production,'' repair, overhaul, or refurbishing of commodities
enumerated or otherwise described in USML Category XVIII.
Proposed ECCN 6B619.a would control tooling, templates, jigs,
mandrels, molds, dies, fixtures, alignment mechanisms, and test
``equipment'' not enumerated or otherwise described in USML Category
XVIII and not elsewhere specified on the USML that are ``specially
designed'' for the ``development,'' ``production,'' repair, overhaul,
or refurbishing of commodities controlled by USML Category XVIII. The
commodities that would be controlled under proposed ECCN 6B619.a are
used to produce directed energy weapons (including
[[Page 34565]]
non-lethal directed energy weapons, such as active denial systems) and
are similar to commodities that are in operation in a number of other
countries, some of which are not allies of the United States or members
of multinational export control regimes. Research and development is
currently underway to determine the possible uses of such commodities
(e.g., to protect the Earth from asteroids, or for perimeter security
and crowd control). Possession of such commodities does not confer a
significant military advantage on the United States and, therefore, the
inclusion of such commodities on the CCL would be appropriate.
Paragraphs .b through .w of ECCN 6B619 would be reserved. Paragraph
.x would control ``parts,'' ``components,'' ``accessories,'' and
``attachments'' ``specially designed'' for a commodity subject to
control under paragraph .a of this ECCN and not enumerated or otherwise
described in USML Category XVIII and not elsewhere specified on the
USML.
New ECCN 6D619: ``Software'' ``specially designed'' for the
``development,'' ``production,'' operation or maintenance of
commodities controlled by 6B619.
Proposed ECCN 6D619 would control ``software'' ``specially
designed'' for the ``development,'' ``production,'' operation or
maintenance of commodities controlled by ECCN 6B619. Inclusion of this
``software'' on the CCL would be appropriate, because it would be
limited to ``software'' ``specially designed'' for ECCN 6B619
commodities and would not include any ``software'' for items
specifically enumerated or otherwise described on the USML.
New ECCN 6E619: ``Technology'' ``required'' for the
``development,'' ``production,'' operation, installation, maintenance,
repair, overhaul or refurbishing of commodities controlled by 6B619 or
``software'' controlled by 6D619.
Proposed ECCN 6E619 would control ``technology'' ``required'' for
the ``development,'' ``production,'' operation, installation,
maintenance, repair, overhaul or refurbishing of commodities controlled
by ECCN 6B619, or ``software'' controlled by 6D619. Inclusion of this
``technology'' on the CCL would be appropriate, because it would be
limited to ``technology'' ``required'' for ECCN 6B619 commodities and
would not include any ``technology'' for items specifically enumerated
or otherwise described on the USML.
Applicable Controls for the New ``600 Series'' ECCNs Proposed by This
Rule.
Pursuant to the framework established in the April 16 (initial
implementation) rule, detection and protection ``equipment'' and
related commodities classified under ECCN 1A607; related test,
inspection and production ``equipment'' classified under ECCN 1B607;
tear gases, riot control agents and related commodities classified
under ECCN 1C607 (except for items listed in ECCN 1C607.a.10, .a.11,
.a.12, or a.14, all of which are specifically excluded from WAML
Category 7 by Note 1 thereto); related ``software'' classified under
ECCN 1D607 (except ``software'' for items listed in ECCN 1C607.a.10,
.a.11, .a.12, or a.14); and related ``technology'' classified under
ECCN 1E607 (except ``technology'' for items listed in ECCN 1C607.a.10,
.a.11, .a.12, or a.14 and 1D607 ``software'' therefor) would be subject
to the licensing policies that apply to items controlled for national
security (NS) reasons, as described in Sec. 742.4(b)(1)--specifically,
NS Column 1 controls. The same level of NS controls and licensing
policies also would apply to the items that would be controlled under
the three new ECCNs (i.e., test, inspection, and production
``equipment'' classified under ECCN 6B619; related ``software''
classified under ECCN 6D619; and related ``technology'' classified
under ECCN 6E619) that this rule proposes to add to Category 6 of the
CCL. In addition, all of the items that would be controlled under the
new ECCNs proposed by this rule would be subject to the regional
stability (RS) licensing policies set forth in Sec. 742.6(a)(1), i.e.,
RS Column 1, as well as antiterrorism (AT Column 1) and United Nations
(UN) controls.
Also, in accordance with Sec. Sec. 742.4(b)(1) and 742.6(b)(1) of
the EAR, exports and reexports of ``600 series'' items controlled for
NS or RS reasons will be reviewed consistent with United States arms
embargo policies in Sec. 126.1 of the ITAR, if destined to a country
listed in Country Group D:5 of Supplement No. 1 to part 740 of the EAR.
All items controlled for NS or RS reasons, as set forth in this
proposed rule, would be subject to this licensing policy.
Effects of This Proposed Rule
BIS believes that the principal effect of this rule, when
considered in the context of similar proposed rules being published as
part of the ECR, will be to provide greater flexibility for exports and
reexports to NATO member countries and other multiple-regime-member
countries of items the President determines no longer warrant control
on the USML. This greater flexibility would be in the form of:
application of the EAR's de minimis threshold principle for items
constituting less than a de minimis amount of controlled U.S.-origin
content in foreign made items; availability of license exceptions,
particularly License Exceptions ``Servicing and Replacement of Parts
and Equipment'' (RPL) and ``Strategic Trade Authorization'' (STA);
elimination of the requirements for manufacturing license agreements
and technical assistance agreements in connection with exports of
technology; and a reduction in, or elimination of, exporter and
manufacturer registration requirements and associated registration
fees. Some of these specific effects are discussed in more detail
below.
De minimis
The April 16 (initial implementation) rule imposed certain unique
de minimis requirements on items controlled under the new ``600
series'' ECCNs. Section 734.3 of the EAR provides, inter alia, that,
under certain conditions, items made outside the United States that
incorporate items subject to the EAR are not subject to the EAR if they
do not exceed a ``de minimis'' percentage of controlled U.S. origin
content. Under Section 734.4 of the EAR, as amended by the April 16
(initial implementation) rule, there is no eligibility for de minimis
treatment for a foreign-made item that incorporates U.S.-origin ``600
series'' items when the foreign-made item is destined for a country
that is subject to a U.S. arms embargo, i.e., a country listed in
Country Group D:5 of Supplement No. 1 to part 740 of the EAR. Items
controlled under the new ``600 series'' ECCNs proposed in this rule
would be eligible for de minimis treatment under the EAR, provided that
the foreign-made items into which they are incorporated are not
destined for a country listed in Country Group D:5. In contrast, the
AECA does not permit the ITAR to have a de minimis treatment for USML-
listed items, regardless of the significance or insignificance of the
U.S.-origin content or the percentage of U.S.-origin content in the
foreign-made item (i.e., USML-listed items remain subject to the ITAR
when they are incorporated abroad into a foreign-made item, regardless
of either of these factors).
Use of License Exceptions
The April 16 (initial implementation) rule imposed certain
restrictions on the use of license exceptions for items controlled
under ``600 series'' ECCNs on
[[Page 34566]]
the CCL. The general restrictions that apply to the use of license
exceptions for such items are described in Sec. 740.2(a)(13) of the
EAR. The EAR provisions that describe the requirements specific to
individual license exceptions contain additional restrictions on the
use of license exceptions for such items.
For example, this rule proposes limited License Exception STA
availability for the new ``600 series'' ECCNs contained herein. None of
the items that would be controlled under these proposed ECCNs would be
eligible for the STA ``controls of lesser sensitivity'' described in
Sec. 740.20(c)(2) of the EAR. Instead, STA eligibility for all such
items would be limited to the destinations listed in Sec. 740.20(c)(1)
of the EAR (i.e., Country Group A:5 destinations indicated in
Supplement No. 1 to part 740 of the EAR). In addition, such items must
be for: (1) ultimate end-use by a person of a type specified in Sec.
740.20(b)(3)(ii) of the EAR (i.e., the armed forces, police,
paramilitary, law enforcement, customs, correctional, fire, or a search
and rescue agency of a government of one of the countries listed in
Country Group A:5 or the United States Government); or (2) the
``development,'' ``production,'' operation installation, maintenance,
repair, overhaul, or refurbishing of an item, in one of the countries
listed in Country Group A:5 or the United States, that will ultimately
be used by any such government agencies, the United States Government,
or by a person in the United States. The use of License Exception STA
also may be authorized, under certain circumstances described in Sec.
740.20(b)(3)(ii)(C), where the U.S. Government has otherwise authorized
the ultimate end-use under a license.
None of the items that would be controlled under the new ``600
series'' ECCNs proposed by this rule would be treated as ``end items''
for purposes of License Exception STA and, therefore, such items would
not be subject to the License Exception STA eligibility request
requirements in Sec. 740.20(g) of the EAR.
Items controlled under proposed new ECCN 1B607 or 6B619 also would
be eligible for License Exception LVS (limited value shipments) up to a
value of $1,500, TMP (temporary exports), and RPL (servicing and
replacement parts). License Exceptions TMP and RPL also would be
available for items controlled under new ECCN 1A607.
BIS believes that the restrictions that would apply to the use of
license exceptions for the items in the proposed new ``600 series''
ECCNs would represent an overall reduction from the level of
restrictions that currently apply to such items on the USML. This would
be particularly true with respect to exports of such items to NATO
members and multiple-regime member countries.
Alignment With the Wassenaar Arrangement Munitions List
Since the beginning of ECR, the Administration has stated that the
reforms will be consistent with the United States' obligations to the
multilateral export control regimes. Accordingly, the Administration
will, in this proposed rule, exercise its national discretion to
implement, clarify, and, to the extent feasible, align its controls
with those of the regimes. In this rule, proposed ECCNs 1A607 and 1C607
would implement, to the extent possible, the controls in WAML Category
7; proposed ECCNs 1B607 and 6B619 would implement, to the extent
possible, the controls in WAML Category 18 for production
``equipment;'' proposed ECCNs 1D607 and 6D619 would implement, to the
extent possible, the controls in WAML Category 21 for ``software;'' and
proposed ECCNs 1E607 and 6E619 would implement, to the extent possible,
the controls in WAML Category 22 for ``technology.''
Request for Comments
BIS seeks comments on this proposed rule. BIS will consider all
comments received on or before August 17, 2015. All comments (including
any personally identifying information or information for which a claim
of confidentially is asserted either in those comments or their
transmittal emails) will be made available for public inspection and
copying. Parties who wish to comment anonymously may do so by
submitting their comments via Regulations.gov, leaving the fields that
would identify the commenter blank and including no identifying
information in the comment itself.
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 7, 2014, 79 FR 46959 (August 11, 2014), 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 proposed rule would affect the following approved
collections: Simplified Network Application Processing System (control
number 0694-0088), which includes, among other things, license
applications; License Exceptions and Exclusions (0694-0137);
recordkeeping (0694-0096); export clearance (0694-0122); and the
Automated Export System (0607-0152).
As stated in the proposed rule published on July 15, 2011 (76 FR
41958) (the ``July 15 proposed rule''), BIS initially estimated that
the combined effect of all rules to be published, adding items to the
EAR that would be removed from the ITAR as part of the Administration's
Export Control Reform Initiative, would increase the number of license
applications to be submitted to BIS by approximately 16,000 annually,
resulting in an increase in burden hours of 5,067 (16,000 transactions
at 17 minutes each) under control number 0694-0088. As the review of
the USML has progressed, the interagency group has gained more specific
information about the number of items that would come under BIS
jurisdiction and whether those items would be eligible for export under
license exception. As of June 21, 2012, BIS revised its estimate to
reflect an increase in license applications of 30,000 annually,
resulting in an increase in burden hours of 8,500 (30,000 transactions
at 17
[[Page 34567]]
minutes each) under control number 0694-0088. BIS continues to believe
that its revised estimate is accurate. Notwithstanding this increase in
license applications under the EAR, the net burden that U.S. export
controls impose on U.S. exporters is expected to go down, as described
below, as a result of the transfer of less sensitive military items to
the jurisdiction of the Department of Commerce, under the EAR, and the
application of the license exceptions and other provisions in the EAR
that are described in this proposed rule.
As proposed by this rule, certain dissemination, detection and
protection ``equipment'' and related articles currently controlled
under USML Category XIV in the ITAR and certain tooling, production
``equipment,'' test and evaluation ``equipment,'' test models and
related articles currently controlled under USML Category XVIII of the
ITAR would become subject to the licensing jurisdiction of the
Department of Commerce under the EAR and its CCL, and also would be
eligible for certain license exceptions, including License Exception
STA. For example, items controlled under proposed ECCN 1A607, 1B607,
1C607, 1D607, 1E607, 6B619, 6D619, or 6E619 would become eligible under
certain provisions of License Exception STA and would not need a
determination of eligibility as described in Sec. 740.20(g) of the
EAR. 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 at 1 hour and 10 minutes each).
BIS expects that this increase in burden hours under the EAR would
be more than offset by a reduction in the burden hours associated with
currently approved collections related to the ITAR. With few
exceptions, most exports of the dissemination, detection and protection
``equipment'' and related articles and the tooling, production
``equipment,'' test and evaluation ``equipment,'' test models and
related articles that this rule proposes to add to the CCL currently
require State Department authorization, even when destined to NATO
member states and other close allies. In addition, the exports of
``technology'' necessary to produce such items in the inventories of
the United States and its NATO and other close allies currently require
State Department authorization. Under the EAR, as proposed by this
rule, such ``technology'' would become eligible for export to NATO
member states and other close allies under License Exception STA,
unless otherwise specifically excluded.
The anticipated reduction in burden hours would particularly impact
exporters of ``parts'' and ``components'' that would no longer be
subject to the ITAR, because, with few exceptions, the ITAR currently
exempt from license requirements only exports to Canada. Most exports
of such ``parts'' and ``components,'' even when destined to NATO and
other close allies, currently require State Department authorization.
Under the EAR, as proposed by this rule, a small number of low-level
``parts'' and ``components'' would not require a license to most
destinations, while most other ``parts'' and ``components'' identified
under the proposed new ``600 series'' ECCNs would be eligible for
export to NATO and other close 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 that is being exported to the consignee and obtain from the
consignee an acknowledgement and commitment to comply with the
requirements of the EAR. However, the Administration believes that
complying with the requirements of STA is likely to be 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 allied and, in some cases, U.S.
forces with routine replacement parts and components.
Even in situations in which a license would be required under the
EAR, the burden likely will be reduced, compared to the current license
requirement under the ITAR. In particular, license applications for
exports of ``technology'' controlled by ECCN 1E607 or 6E619 are likely
to be less complex and burdensome than the authorizations required to
export ITAR-controlled ``technology,'' i.e., Manufacturing License
Agreements and Technical Assistance Agreements.
3. This rule does not contain policies with Federalism implications
as that term is defined under E.O. 13132.
4. The Regulatory Flexibility Act (RFA), as amended by the Small
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C.
601 et seq., generally requires an agency to prepare an initial
regulatory flexibility analysis (IRFA) for 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 certifies that a rule will not
have a significant impact on a substantial number of small entities,
the RFA does not require the agency to prepare a regulatory flexibility
analysis. Accordingly, pursuant to section 605(b), the Chief Counsel
for Regulation, Department of Commerce, has certified to the Chief
Counsel for Advocacy, Small Business Administration, that this proposed
rule, if promulgated, will not have a significant impact on a
substantial number of small entities. The rationale for this
certification is as follows.
Number of Small Entities
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.
Economic Impact
The amendments set forth in this rule are proposed as part of the
Administration's ECR initiative, which seeks to revise the USML to be a
positive control list--one that does not use generic, catch-all control
text to describe items subject to the ITAR--and to move some items that
the President has determined no longer warrant control under the ITAR
to control under the EAR and its CCL. Such items, along with certain
military items currently identified on the CCL (most of which are
identified on the WAML), will be controlled under new ``600 series''
ECCNs on the CCL. In addition, certain other items currently on the CCL
will move from existing ECCNs to the new ``600 series'' ECCNs.
This rule addresses certain dissemination, detection and protection
``equipment'' and related articles currently enumerated or otherwise
described in USML Category XIV (Toxicological Agents, Including
[[Page 34568]]
Chemical Agents, Biological Agents, and Associated Equipment) and
certain tooling, production ``equipment,'' test and evaluation
``equipment,'' test models and related articles currently enumerated or
otherwise described in USML Category XVIII (Directed Energy Weapons).
Most toxicological agents (i.e., chemical and biological agents) and
associated equipment and all Directed Energy Weapons (DEWs) systems
``specially designed'' or modified for military applications,
``equipment'' ``specially designed'' or modified to detect, identify or
defend against such systems, and ``specially designed'' ``parts,''
``components,'' ``accessories'' and ``attachments'' for such systems or
``equipment'' would remain on the USML. However, many other ``parts''
and ``components'' would become subject to the EAR (as items described
in ECCN 1A607.x, 1B607.x, or 6B619.x), unless specifically enumerated
or otherwise described on the USML. Many of these ``parts'' and
``components'' are more likely, than the USML articles described above,
to be produced by small businesses. In addition, officials of the
Department of State have informed BIS that license applications for
such ``parts'' and ``components'' represent a high percentage of the
license applications for USML articles reviewed by that department.
Changing the jurisdictional status of certain Category XIV and Category
XVIII items would reduce the burden on small entities (and other
entities as well) through: (i) elimination of some license
requirements; (ii) greater availability of license exceptions; (iii)
simpler license application procedures; and (iv) reduced or eliminated
registration fees.
Moreover, ``parts'' and ``components'' that are controlled under
the ITAR remain under ITAR control when incorporated into foreign-made
items, regardless of the significance or insignificance of the item.
This discourages foreign buyers from incorporating such U.S. content.
The availability of de minimis treatment under the EAR, for those items
that would no longer be controlled under the ITAR, may reduce the
disincentive for foreign manufacturers to purchase U.S.-origin
``parts'' and ``components,'' a development that potentially would mean
greater sales for U.S. suppliers, including small entities.
Many exports and reexports of the Category XIV or Category XVIII
articles that would be added to the CCL by this rule (particularly, the
``parts'' and ``components'' that would be controlled under new ECCN
1A607.x, 1B607.x, or 6B619.x) would become eligible for license
exceptions that apply to exports to U.S. Government agencies, exports
of ``parts'' and ``components'' for use as replacement parts, temporary
exports and limited value exports (for ECCN 1B607 and 6B619 items,
only), as well as License Exception STA, thereby reducing the number of
licenses that exporters of these items would need. License exceptions
under the EAR would allow suppliers to send routine replacement parts
and low level parts to NATO and other close allies and export control
regime partners for use by those governments and for use by contractors
building equipment for those governments or for the U.S. Government
without having to obtain export licenses. Under License Exception STA,
the exporter would need to furnish information about the item being
exported to the consignee and obtain a statement from the consignee
that, among other things, would commit the consignee to comply with the
EAR and other applicable U.S. laws. Because such statements and
obligations can apply to an unlimited number of transactions and have
no expiration date, they would create a net reduction in burden on
transactions that the government routinely approves through the license
application process that the License Exception STA statements would
replace.
Even for exports and reexports for which a license would be
required, the process for obtaining a license would be simpler and less
costly under the EAR. When a USML Category XIV or Category XVIII
article is moved to the CCL, the number of destinations for which a
license is required would remain unchanged. However, the burden on the
license applicant would decrease because the licensing procedure for
CCL items is simpler and more flexible than the licensing procedure for
USML articles.
Under the USML licensing procedure, an applicant must include a
purchase order or contract with its application. There is no such
requirement under the CCL licensing procedure. This difference gives
the CCL applicant at least two advantages. First, the applicant has a
way to determine whether the U.S. Government will authorize the
transaction before it enters into potentially lengthy, complex and
expensive sales presentations or contract negotiations. Under the USML
procedure, the applicant must caveat all sales presentations with a
reference to the need for government approval, and is more likely to
engage in substantial effort and expense only to find that the
government will reject the application. Second, a CCL license applicant
need not limit its application to the quantity or value of one purchase
order or contract. It may apply for a license to cover all of its
expected exports or reexports to a specified consignee over the life of
a license (normally four years, but may be longer if circumstances
warrant a longer period), thus reducing the total number of licenses
for which the applicant must apply.
In addition, many applicants exporting or reexporting items that
this rule proposes to transfer from the USML to the CCL would realize
cost savings through the elimination of some or all registration fees
currently assessed under the USML's licensing procedure. 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 increase 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.
Conversely, there are no registration or application processing fees
for applications to export items listed on the CCL. Once the Category
XIV or Category XVIII items that are the subject to this rulemaking are
removed from the USML and added to the CCL, entities currently applying
for licenses from the Department of State would find their registration
fees reduced if the number of USML licenses those entities need
declines. If an entity's entire product line is moved to the CCL, its
ITAR registration and registration fee requirement would be eliminated.
Conclusion
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 on 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. As noted above, any new burdens proposed by
this rule would be offset by a reduction in the number of items that
would require a license, increased opportunities for use of license
exceptions for exports to certain countries, simpler export license
applications, reduced or eliminated registration fees and application
of a de minimis threshold for foreign-made items incorporating U.S.-
origin parts
[[Page 34569]]
and components, all of which would reduce the incentive for foreign
buyers to design out or avoid U.S.-origin content. Accordingly, the
Chief Counsel for Regulation, Department of Commerce, has certified to
the Chief Counsel for Advocacy, Small Business Administration, that
this rule, if implemented, would 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 15 CFR Part 774
Exports, Reporting and recordkeeping requirements.
For the reasons stated in the preamble, part 774 of the Export
Administration Regulations (15 CFR parts 730-774) is proposed to be
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 7, 2014, 79 FR 46959 (August 11, 2014).
0
2. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms,'' and ``Toxins,'' add a new ECCN 1A607 between ECCNs
1A290 and 1A613 to read as follows:
Supplement No. 1 to Part 774--the Commerce Control List
* * * * *
1A607 Military dissemination ``equipment'' for riot control agents,
military detection and protection ``equipment'' for toxicological
agents (including chemical, biological, and riot control agents),
and related commodities (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: N/A
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 1A607.
List of Items Controlled
Related Controls: (1) Vaccines identified in ECCN 1C991 are not
controlled by this ECCN. (2) See 22 CFR 121.1 (USML), Category XIV(h),
for vaccines that are subject to the ITAR. (3) Protection and detection
``equipment'' and related items identified in ECCN 1A004, 1A995, or
2B351 are not controlled by this ECCN. (4) See 22 CFR 121.1 (USML),
Category XIV(f), for dissemination, detection and protection
``equipment'' that is subject to the ITAR. (5) See ECCN 0A919 for
foreign-made ``military commodities'' that incorporate more than a de
minimis amount of US-origin ``600 series'' controlled content.
Related Definitions: N/A
Items:
a. through d. [Reserved]
e. ``Equipment'' ``specially designed'' for military use and for
the dissemination of any of the riot control agents controlled in ECCN
1C607.a.
f. Protection ``equipment'' (including air conditioning units and
protective clothing):
f.1. Not controlled by USML Category XIV(f); and
f.2. ``Specially designed'' for military use and for defense
against:
f.2.1. Materials specified by USML Category XIV (a) or (b); or
f.2.2. Riot control agents controlled in 1C607.a.
g. Decontamination ``equipment'':
g.1. Not controlled by USML Category XIV(f); and
g.2. ``Specially designed'' for military use and for
decontamination of objects contaminated with materials controlled by
USML Category XIV(a) or (b).
h. ``Equipment'':
h.1. Not controlled by USML Category XIV(f); and
h.2. ``Specially designed'' for military use and for the detection
or identification of:
h.2.1. Materials specified by USML Category XIV(a) or (b); or
h.2.2. Riot control agents controlled by ECCN 1C607.a.
i. [Reserved]
j. ``Equipment'' ``specially designed'' to:
j.1. Interface with a detector, shelter, vehicle, vessel, or
aircraft controlled by the USML or a ``600 series'' ECCN; and
j.2. Collect and process samples of articles controlled in USML
Category XIV(a) or (b).
k. Medical countermeasures that are ``specially designed'' for
military use (including pre- and post-treatments, antidotes, and
medical diagnostics) and ``specially designed'' to counter chemical
agents controlled by the USML Category XIV(a).
Note: Examples of ``equipment'' controlled by this entry are
barrier and non-barrier creams and filled autoinjectors (e.g.,
combopens where one injector contains 2-PAM and the other atropine)
if ``specially designed'' to counter such agents.
l. through w. [Reserved]
x. ``Parts,'' ``components,'' ``accessories,'' and ``attachments''
that are ``specially designed'' for a commodity controlled by ECCN
1A607.e, .f, .g, or .j or for a defense article controlled by USML
Category XIV(f) and that are not enumerated or otherwise described
elsewhere in the USML.
3. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms,'' and ``Toxins,'' add a new ECCN 1B607 between
ECCNs 1B234 and 1B608 to read as follows:
1B607 Military test, inspection, and production ``equipment'' and
related commodities ``specially designed'' for the ``development,''
``production,'' repair, overhaul, or refurbishing of commodities
identified in ECCN 1A607 or 1C607, or defense articles enumerated or
otherwise described in USML Category XIV (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.
[[Page 34570]]
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 1B607.
List of Items Controlled
Related Controls: (1) See ECCN 2B350 for controls on certain
incinerators. (2) See ECCN 0A919 for foreign-made ``military
commodities'' that incorporate more than a de minimis amount of US-
origin ``600 series'' controlled content.
Related Definitions: N/A
Items:
a. ``Equipment'' ``specially designed'' for the destruction of the
chemical agents controlled by USML Category XIV(a).
Note to 1B607.a: ECCN 1B607.a includes controls over facilities
``specially designed'' for destruction operations. This paragraph .a
does not control incinerators and ``specially designed'' handling
facilities or ``specially designed'' waste supply systems therefor.
b. Test facilities and ``equipment'' ``specially designed'' for
military certification, qualification, or testing of commodities
controlled by ECCN 1A607.e, .f, .g, or .j or by USML Category XIV(f),
except for XIV(f)(1).
c. Tooling and ``equipment'' ``specially designed'' for the
``development,'' ``production,'' repair, overhaul, or refurbishing of
commodities controlled by ECCN 1A607.e, .f .g, or .j or USML Category
XIV(f).
d. through w. [RESERVED]
x. ``Parts,'' ``components,'' ``accessories,'' and ``attachments''
that are ``specially designed'' for a commodity controlled by ECCN
1B607.b or .c, or for a defense article controlled by USML Category
XIV(f), and that are not enumerated or otherwise described elsewhere in
the USML.
0
4. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms,'' and ``Toxins,'' add a new ECCN 1C607 between ECCNs
1C395 and 1C608 to read as follows:
1C607 Tear Gases, Riot Control Agents and materials for the
detection and decontamination of chemical warfare agents (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 NS Column 1.
1C607.a.10, .a.11, .a.12, and .a.14.
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: N/A
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 1C607.
List of Items Controlled
Related Controls: (1) See ECCN 1A984 for controls on other riot
control agents. (2) See 22 CFR 121.1 (USML), Category XIV(b), for
modified biological agents and biologically derived substances that
are subject to the ITAR. (3) See 22 CFR 121.1 (USML), Category
XIV(g), for ITAR controls on antibodies, recombinant protective
antigens, polynucleotides, biopolymers or biocatalysts (including
the expression vectors, viruses, plasmids, or cultures of specific
cells used to produce them) that are ``specially designed'' for use
with articles controlled under USML Category XIV(f). (4) See ECCN
0A919 for foreign-made ``military commodities'' that incorporate
more than a de minimis amount of US-origin ``600 series'' controlled
content.
Related Definitions: N/A
Items:
a. Tear gases and riot control agents including:
a.1. CA (Bromobenzyl cyanide) (CAS 5798-79-8);
a.2. CS (o-Chlorobenzylidenemalononitrile or o-
Chlorobenzalmalononitrile) (CAS 2698-41-1);
a.3. CN (Phenylacyl chloride or w-Chloroacetophenone) (CAS 532-
27-4);
a.4. CR (Dibenz-(b,f)-1,4-oxazephine) (CAS 257-07-8);
a.5. Adamsite (Diphenylamine chloroarsine or DM) (CAS 578-94-9);
a.6. N-Nonanoylmorpholine, (MPA) (CAS 5299-64-9);
a.7. Dibromodimethyl ether (CAS 4497-29-4);
a.8. Dichlorodimethyl ether (ClCi) (CAS 542-88-1);
a.9. Ethyldibromoarsine (CAS 683-43-2);
a.10. Bromo acetone (CAS 598-31-2);
a.11. Bromo methylethylketone (CAS 816-40-0);
a.12. Iodo acetone (CAS 3019-04-3);
a.13. Phenylcarbylamine chloride (CAS 622-44-6);
a.14. Ethyl iodoacetate (CAS 623-48-3);
Note to 1C607.a:
ECCN 1C607.a. does not control formulations containing 1% or
less CN or CS or individually packaged tear gases or riot control
agents for personal self-defense purposes that are controlled by
ECCN 1A984, or to active constituent chemicals, and combinations
thereof, identified and packaged for food production or medical
purposes.
b. ``Biopolymers,'' not controlled by USML Category XIV(g)
``specially designed'' or processed for the detection or
identification of chemical warfare agents specified by USML Category
XIV(a), and the cultures of specific cells used to produce them.
c. ``Biocatalysts,'' and biological systems therefor, not
controlled by USML Category XIV(g) ``specially designed'' for the
decontamination or degradation of chemical warfare agents controlled
in USML Category XIV (a), as follows:
c.1. ``Biocatalysts'' ``specially designed'' for the
decontamination or degradation of chemical warfare agents controlled
in USML Category XIV(a) resulting from directed laboratory selection
or genetic manipulation of biological systems;
c.2. Biological systems containing the genetic information
specific to the production of ``biocatalysts'' specified by
1C607.c.1, as follows:
c.2.a. ``Expression vectors;''
c.2.b. Viruses; or
c.2.c. Cultures of cells.
Note to 1C607.b and .c: The cultures of cells and biological
systems are exclusive and these sub-items do not apply to cells or
biological systems for civil purposes, such as agricultural,
pharmaceutical, medical, veterinary, environmental, waste
management, or in the food industry.
d. Chemical mixtures not controlled by USML Category XIV(f)
``specially designed'' for military use for the decontamination of
objects contaminated with materials specified by USML Category
XIV(a) or (b).
0
5. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms,'' and ``Toxins,'' add a new ECCN 1D607 between ECCNs
1D390 and 1D608 to read as follows:
1D607 ``Software'' ``specially designed'' for the ``development,''
``production,'' operation, or maintenance of items controlled by
1A607, 1B607 or 1C607 (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 NS Column 1.
``software'' for 1C607.a.10, .a.11,
.a.12, and .a.14.
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.
[[Page 34571]]
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 item in 1D607.
List of Items Controlled
Related Controls: (1) ``Software'' directly related to articles
enumerated or otherwise described in USML Category XIV is subject to
the ITAR (see 22 CFR 121.1, Category XIV(m)). ``Software''
controlled by USML Category XIV(m) includes ``software'' directly
related to any equipment containing reagents, algorithms,
coefficients, software, libraries, spectral databases, or alarm set
point levels developed under U.S. Department of Defense contract or
funding for the detection, identification, warning or monitoring of
items controlled in paragraphs (a) or (b) of USML Category XIV, or
for chemical or biological agents specified by U.S. Department of
Defense funding or contract. (2) See ECCN 0A919 for foreign-made
``military commodities'' that incorporate more than a de minimis
amount of US-origin ``600 series'' controlled content.
Related Definitions: N/A
Items:
a. ``Software'' ``specially designed'' for the ``development,''
``production,'' operation, or maintenance of commodities controlled
by ECCN 1A607, 1B607, or 1C607.
b. [RESERVED]
0
6. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 1--Special Materials and Related Equipment, Chemicals,
``Microorganisms,'' and ``Toxins,'' add a new ECCN 1E607 between ECCNs
1E355 and 1E608 to read as follows:
1E607 ``Technology'' ``required'' for the ``development,''
``production,'' operation, installation, maintenance, repair,
overhaul, or refurbishing of items controlled by ECCN 1A607, 1B607,
1C607, or 1D607 (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 NS Column 1.
``technology'' for 1C607.a.10, .a.11,
.a.12, and .a.14 and for 1D607
``software'' therefor.
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 item in 1E607.
List of Items Controlled
Related Controls: Technical data directly related to defense
articles enumerated or otherwise described in USML Category XIV are
subject to the ITAR (see 22 CFR 121.1, Category XIV(m)). Technical
data controlled by USML Category XIV(m) include technical data
directly related to any equipment containing reagents, algorithms,
coefficients, software, libraries, spectral databases, or alarm set
point levels developed under U.S. Department of Defense contract or
funding for the detection, identification, warning or monitoring of
items controlled in paragraphs (a) or (b) of USML Category XIV, or
for chemical or biological agents specified by U.S. Department of
Defense funding or contract.
Related Definitions: N/A
Items:
a. ``Technology'' ``required'' for the ``development,''
``production,'' operation, installation, maintenance, repair,
overhaul, or refurbishing of items controlled by ECCN 1A607, 1B607,
1C607 or 1D607.
Note to 1E607.a: ECCN 1E607.a includes ``technology''
``required'' exclusively for the incorporation of ``biocatalysts''
controlled by ECCN 1C607.c.1 into military carrier substances or
military material.
b. [RESERVED]
0
7. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 6--Sensors and Lasers,'' add a new ECCN 6B619 between ECCNs
6B108 and 6B995 to read as follows:
6B619 Test, inspection, and production ``equipment'' and related
commodities ``specially designed'' for the ``development,''
``production,'' repair, overhaul, or refurbishing of commodities
enumerated or otherwise described in USML Category XVIII (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.
License Exceptions
LVS: $1,500
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 6B619.
List of Items Controlled
Related Controls: ``Parts, ``components,'' ``accessories,''
``attachments,'' and associated systems or ``equipment'' ``specially
designed'' for defense articles enumerated or otherwise described in
paragraphs (a) or (b) of USML Category XVIII are subject to the ITAR
(see 22 CFR 121.1, Category XVIII(e)).
Related Definitions: N/A
Items:
a. Tooling, templates, jigs, mandrels, molds, dies, fixtures,
alignment mechanisms, and test ``equipment'' not enumerated or
otherwise described in USML Category XVIII and not elsewhere
specified on the USML that are ``specially designed'' for the
``development,'' ``production,'' repair, overhaul, or refurbishing
of commodities controlled by USML Category XVIII.
b. through w. [Reserved]
x. ``Parts,'' ``components,'' ``accessories,'' and
``attachments'' ``specially designed'' for a commodity subject to
control under paragraph .a of this ECCN and not enumerated or
otherwise described in USML Category XVIII and not elsewhere
specified on the USML.
0
8. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 6--Sensors and Lasers,'' add a new ECCN 6D619 between ECCNs
6D201 and 6D991 to read as follows:
6D619 ``Software'' ``specially designed'' for the ``development,''
``production,'' operation or maintenance of commodities controlled
by 6B619.
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.
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 item in 6D619.
List of Items Controlled
Related Controls: ``Software'' directly related to articles
enumerated or otherwise described in USML Category XVIII is subject
to the ITAR (See 22 CFR 121.1, Category XVIII(f)).
[[Page 34572]]
Related Definitions: N/A
Items:
The list of items controlled is contained in the ECCN heading.
0
9. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 6--Sensors and Lasers,'' add a new ECCN 6E619 between ECCNs
6E202 and 6E990 to read as follows:
6E619 ``Technology'' ``required'' for the ``development,''
``production,'' operation, installation, maintenance, repair,
overhaul or refurbishing of commodities controlled by 6B619 or
``software'' controlled by 6D619.
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.
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 item in 6E619.
List of Items Controlled
Related Controls: Technical data directly related to articles
enumerated or otherwise described in USML Category XVIII are subject
to the ITAR (See 22 CFR 121.1, Category XVIII(f)).
Related Definitions: N/A
Items:
The list of items controlled is contained in the ECCN heading.
Dated: June 9, 2015.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2015-14474 Filed 6-16-15; 8:45 am]
BILLING CODE 3510-33-P
