Revisions to the Export Administration Regulations (EAR): Control of Fire Control, Laser, Imaging, and Guidance and Control Equipment the President Determines No Longer Warrant Control Under the United States Munitions List (USML), 8421-8438 [2016-03182]
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8421
Proposed Rules
Federal Register
Vol. 81, No. 33
Friday, February 19, 2016
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 734, 738, 740, 742, 743,
744, 772, and 774
[Docket No. 140221170–5728–02]
RIN 0694–AF75
Revisions to the Export Administration
Regulations (EAR): Control of Fire
Control, Laser, Imaging, and Guidance
and Control Equipment the President
Determines No Longer Warrant Control
Under the United States Munitions List
(USML)
Bureau of Industry and
Security, Department of Commerce.
ACTION: Proposed rule.
AGENCY:
This proposed rule describes
how articles the President determines
no longer warrant control under
Category XII (Fire Control, Laser,
Imaging, and Guidance and Control
Equipment) of the United States
Munitions List (USML) of the
International Traffic in Arms
Regulations (ITAR) would be controlled
under the Commerce Control List (CCL)
of the Export Administration
Regulations (EAR) by amending Export
Control Classification Number (ECCN)
7A611 and creating new ‘‘600 series’’
ECCNs 7B611, 7D611, and 7E611. In
addition, for certain dual-use infrared
detection items, this proposed rule
would expand controls for certain
software and technology, eliminate the
use of some license exceptions, revise
licensing policy, and expand license
requirements for certain transactions
involving military end users or foreign
military commodities. This proposed
rule would also harmonize provisions
within the EAR by revising controls
related to certain quartz rate sensors and
uncooled thermal imaging cameras.
DATES: Comments must be received by
April 4, 2016.
ADDRESSES: You may submit comments
by any of the following methods:
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SUMMARY:
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• Federal eRulemaking Portal: https://
www.regulations.gov. Search for this
rule using its regulations.gov docket
number: BIS–2015–0016
• By email directly to
publiccomments@bis.doc.gov. Include
RIN 0694–AF75 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–AF75.
FOR FURTHER INFORMATION CONTACT: For
questions regarding the ECCNs included
in this rule, contact Dennis Krepp,
Office of National Security and
Technology Transfer Controls, Bureau of
Industry and Security, Telephone: 202–
482–1309, Email: Dennis.Krepp@
bis.doc.gov. For general questions
regarding the proposed regulatory
changes, contact Steven Emme, Office of
the Assistant Secretary for Export
Administration, Telephone: 202–482–
5491, Email: Steven.Emme@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
This proposed rule is part of the
Administration’s Export Control Reform
Initiative (Initiative), the objective of
which is to protect and enhance U.S.
national security interests. The Initiative
began in August 2009 when President
Obama directed the Administration to
conduct a broad-based review of the
U.S. export control system to identify
additional ways to enhance national
security. The Department of State’s
International Traffic in Arms
Regulations (ITAR) and its U.S.
Munitions List (USML) are being
amended to control only the items that
provide the United States with a critical
military or intelligence advantage or
otherwise warrant such controls, and
the Export Administration Regulations
(EAR) are being amended to control
military items that do not warrant
USML controls. These changes will
enhance national security by (i)
improving interoperability of U.S.
military forces with allied countries, (ii)
strengthening the U.S. industrial base
by, among other things, reducing
incentives for foreign manufacturers to
design out and avoid U.S.-origin content
and services, and (iii) allowing export
control officials to focus government
resources on transactions that pose
greater concern.
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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).
Following the structure set forth in
the final rule entitled ‘‘Revisions to the
Export Administration Regulations:
Initial Implementation of Export Control
Reform’’ (78 FR 22660, April 16, 2013)
(‘‘April 16 (initial implementation)
rule’’), BIS published a proposed rule
entitled ‘‘Revisions to the Export
Administration Regulations (EAR):
Control of Fire Control, Range Finder,
Optical, and Guidance and Control
Equipment the President Determines No
Longer Warrant Control Under the
United States Munitions List (USML)’’
(80 FR 25798, May 5, 2015) (‘‘May 5
proposed rule’’). That proposed rule was
published in conjunction with a
proposed rule published by the
Department of State’s Directorate of
Defense Trade Controls (DDTC) to
propose controls for the ITAR’s USML
Category XII.
The proposed changes described in
this proposed rule and the
corresponding changes in the State
Department’s proposed amendment to
USML Category XII are based, in part,
on a review of public comments
submitted in response to the May 5
proposed rule. The review of the
comments on USML Category XII by the
Departments of Commerce, Defense,
Homeland Security, and State
(hereinafter, ‘‘the agencies’’ or the
‘‘interagency review’’) focused on
identifying those types of articles that
provide the United States with a critical
military or intelligence capability and
that are not currently in normal
commercial use. It is the intent of the
above agencies that the proposed USML
Category XII and corresponding 600
series ECCNs not control items in
normal commercial use. Such items
should be controlled under existing
dual-use controls on the CCL, consistent
with the Wassenaar Arrangement List of
Dual-Use Goods and Technologies.
However, if the proposed entries in
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USML Category XII or corresponding
600 series ECCNs include items in
normal commercial use, then the public
is encouraged to submit comments
identifying such entries and examples of
commercial items captured by those
entries.
To address concerns regarding the
sensitivity of certain dual-use items
related to infrared detection capability,
this proposed rule would add
restrictions to the export or reexport of
several sensors and cameras, and related
software and technology, that provide
important night vision capability for
military use but are also widely used in
civil products and applications. These
proposed restrictions include amending
the availability of certain license
exceptions, including TSR, APR, and
STA; expanding the license requirement
in § 744.9 and scope of ECCN 0A919;
adding new ECCN 0E987 for the
development or production of
commodities controlled by 0A987 that
incorporate a focal plane array or image
intensifier tube; expanding software
controls related to items in ECCNs
6A002 and 6A003 by revising ECCNs
6D002, 6D003, and 6D991; and
expanding the scope of read-out
integrated circuits controlled under
ECCN 6A990 and related software and
technology in ECCNs 6D991 and 6E990.
This proposed rule would also revise
controls pertaining to cameras classified
under ECCN 6A993.a as a result of
meeting the criteria to Note 3.a to ECCN
6A003.b.4.b (i.e., having a maximum
frame rate equal to or less than 9 Hz).
The interagency review found that these
9 Hz cameras have been incorporated
into foreign military commodities. As a
result, this proposed rule would amend
§ 744.9 to include such 9 Hz cameras
and subject them to the license
requirements described in that section.
Additionally, this proposed rule would
create new ECCN 0E987 to control
technology required for the
development or production of ECCN
0A987 commodities that incorporate a
focal plane array or image intensifier
tube.
As a result of the interagency review,
BIS believes that a limited number of
military items, primarily less-sensitive
parts and components, should move
from USML Category XII to the 600
series entries proposed in this rule. This
proposed rule would create (or revise in
the case of 7A611) the following ‘‘600
series’’ ECCNs: 7A611, military fire
control, laser, imaging, and guidance
and control commodities; 7B611, test,
inspection, and production
commodities ‘‘specially designed’’ for
military fire control, laser, imaging, and
guidance and control commodities;
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7D611, software ‘‘specially designed’’
for the ‘‘development,’’ ‘‘production,’’
operation, or maintenance of
commodities controlled by 7A611 or
7B611; and 7E611, technology
‘‘required’’ for the ‘‘development,’’
‘‘production,’’ operation, installation,
maintenance, repair, overhaul or
refurbishing of commodities controlled
by 7A611 or 7B611, or software
controlled by 7D611.
In this proposed rule, all references to
the USML are to the list of defense
articles that are controlled for the
purpose of export or temporary import
pursuant to the ITAR, and not to the
defense articles on the USML that are
controlled by the Bureau of Alcohol,
Tobacco, Firearms and Explosives (ATF)
for the purpose of permanent import
under its regulations (see 27 CFR part
447). Pursuant to § 38(a)(1) of the AECA,
all defense articles controlled for export
or import are part of the USML under
the AECA. For the sake of clarity, the
list of defense articles controlled by
ATF for the purpose of permanent
import is the United States Munitions
Import List (USMIL). The transfer of
defense articles from the ITAR’s USML
to the EAR’s CCL for the purpose of
export controls does not affect the list of
defense articles controlled on the
USMIL under the AECA for the purpose
of permanent import.
BIS intends this proposed rule to be
evaluated on its own merits, and the
public need not review the May 5
proposed rule to understand this action.
Once the public comments on this rule
are reviewed and responded to, BIS
intends to publish a final rule.
Public Comments in Response to the
May 5 Proposed Rule
BIS received 60 public comments in
response to the May 5 proposed rule.
Many of the comments focused on
aspects of both the BIS proposed rule
and the DDTC proposed rule. Generally,
many commenters found that when the
May 5 proposed rules used an
unambiguous, bright line to delineate
jurisdiction, the line was drawn in the
wrong place. For many entries on the
proposed USML Category XII,
commenters found that no military
specification or parameters were used to
identify items warranting ITAR control.
In addition, many commenters asserted
that the proposed USML Category XII
would capture items currently subject to
the EAR, including some items that are
currently EAR99. For other entries,
commenters said the proposed rules
added difficulty in determining
jurisdiction. For instance, commenters
indicated that new terms introduced to
the ITAR in the proposal, such as ‘‘core’’
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and ‘‘permanently encapsulated sensor
assembly,’’ added new layers of
complexity and confusion to the current
controls. In addition, many commenters
expressed concerns regarding new
proposed controls in the EAR for certain
infrared detection items and for the
inclusion of certain items in the
proposed 600 series entries.
Because of these concerns, one of the
most common themes throughout the
comments was that the May 5 proposed
rules would lead to or further a
competitive disadvantage for U.S.
companies and research institutions.
Commenters stated that many of the
items proposed for control under either
the proposed USML Category XII or 600
series entries were in normal
commercial use and available from nonU.S. sources. To address these concerns,
some commenters proposed additional
parameters for various entries or
recommended the use of ‘‘specially
designed’’ in place of attempts to
identify positive control parameters.
Changes From the May 5 Proposed Rule
To address concerns raised in the
public comments and to further
harmonize and simplify the EAR, this
proposed rule makes a number of
changes from the May 5 proposed rule.
First, this rule does not propose to
amend part 742 to create a new
worldwide Regional Stability (RS)
control for dual-use items but would
maintain a new worldwide RS control
for certain military technology in ECCN
7E611.a. All other items described in
this proposed rule that are or would be
subject to RS controls would generally
be subject to an RS Column 1 control,
which imposes a license requirement for
all destinations except Canada. For
items the agencies believe warrant strict
control, this proposed rule amends the
availability of license exceptions or
licensing policy, as described further
below.
This proposed rule also does not
include controls proposed in the May 5
proposed rule for certain maintenance,
repair, or overhaul software or
technology related to certain dual-use
infrared detection commodities. Such
controls, which were proposed in new
ECCNs 6D994 and 6E994, would exceed
those of the Wassenaar Arrangement,
and based on public comments, would
likely have resulted in extensive license
requirements for purely commercial
activities, such as civil automotive
repair.
Due to the elimination of the term
‘‘permanent encapsulated sensor
assembly’’ as a parameter for
determining jurisdiction for focal plane
arrays in DDTC’s proposed rule, this
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proposed rule also does not include the
definition for that term in part 772, as
proposed in the May 5 proposed rule.
This rule also removes references to that
term that were proposed to be included
in ECCN 6A002.
With respect to the structure of the
600 series, this proposed rule would
create only one set of 600 series ECCNs
corresponding to USML Category XII
rather than two sets. The May 5
proposed rule included a 6x615 series
for military fire control, range finder,
and optical items and a 7x611 series for
military guidance and control items. In
order to simplify controls, this proposed
rule would only establish one set of 600
series ECCNs, the 7x611 series, which
would correspond to all items proposed
for control under USML Category XII.
Additional changes made from the
May 5 proposed rule are discussed more
fully below.
Proposed Revisions To Further
Harmonize and Simplify the EAR
This rule proposes new revisions to
the EAR that were not included in the
May 5 proposed rule. In order to make
the EAR more consistent and easier to
apply, this proposed rule would revise
various parts of the EAR related to
certain QRS–11 sensors and to license
requirements related to uncooled
thermal imaging cameras.
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Proposed Removal of Controls Specific
to QRS–11 Sensors
In 2007, DDTC and BIS published
final rules (72 FR 31452 (June 7, 2007);
72 FR 62768 (Nov. 7, 2007)) that moved
the licensing jurisdiction for certain
QRS–11 quartz rate sensors from the
ITAR to the EAR when such sensors
were integrated into and included as an
integral part of a Commercial Standby
Instrument System (or aircraft
incorporating such system) or exported
solely for integration into such a system.
The BIS final rule added certain QRS–
11 sensors to ECCN 7A994 and included
an RS Column 1 control. In addition, the
BIS final rule amended § 734.4 to add
certain QRS–11 sensors to the list of
items for which there is no de minimis
level for foreign-made items
incorporating such content.
While predating Export Control
Reform (ECR), the movement of certain
QRS–11 sensors from the ITAR to the
EAR reflects many of the rationales for
ECR. The sensors, while originally
designed for military application, began
to be used in civil aircraft prior to the
2007 final rules. Thus, due to
application of the see-through rule,
State Department authorization would
have been required for numerous
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exports and reexports involving civil
aircraft.
With the advent of ECR, BIS believes
that special controls are no longer
warranted for certain QRS–11 sensors.
Consequently, this proposed rule would
remove the RS Column 1 control from
ECCN 7A994, along with references to
certain QRS–11 sensors in the License
Requirements Notes and Related
Controls. To the extent that such sensors
are not described on the USML (and the
agencies do not believe that any of the
sensors are described on the revised
USML), one would follow the Order of
Review in Supplement No. 4 to part 774
to determine whether the sensors may
be captured under a 600 series ECCN or
under a dual-use ECCN.
This proposed rule would also
remove and reserve § 734.4(a)(3), which
currently provides that there is no de
minimis level for certain foreign-made
items incorporating certain QRS–11
sensors subject to the EAR. Depending
on the classification of the applicable
QRS–11 sensor, one would follow the
applicable de minimis requirements for
600 series items or for non-600 series
items. In addition, this proposed rule
would remove the restriction on the
availability of license exceptions for
certain QRS–11 sensors under
§ 740.2(a)(9), and this proposed rule
would remove references to QRS–11
sensors classified under ECCN 7A994 in
ECCNs 7E994 (Related Controls) and
9A991 (License Requirement Notes and
Related Controls). Finally, this proposed
rule would also amend Note 1 in the
definition of ‘‘specially designed’’ to
remove the reference to ECCN 7A994.
With the proposed removal of the RS
Column 1 control, 7A994 would only be
subject to the Anti-Terrorism reason for
control and would not need to be
included in Note 1.
Proposed Amendments to License
Requirements and License Exception
Eligibility for Certain Uncooled Thermal
Imaging Cameras Controlled in ECCN
6A003
On May 22, 2009, BIS published a
final rule (74 FR 23941) (‘‘May 2009
final rule’’) that revised license
requirements and license exception
eligibility for certain uncooled thermal
imaging cameras in ECCN 6A003. That
rule revised ECCN 6A003 and § 742.6 to
make the RS Column 1 reason for
control inapplicable for certain
transactions for a group of countries
(now Country Group A:1) if certain
uncooled thermal imaging cameras are
fully packaged for use as consumer
ready civil products or if such cameras
with not more than 111,000 elements
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are to be embedded in civil products by
authorized companies.
While BIS believes that this structure
has been useful to address foreign
availability concerns regarding
uncooled thermal imaging cameras, the
different authorization structure
established by the May 2009 final rule
added complexity to the regulations.
Further, BIS believes that with the
implementation of License Exception
STA, the authorizations described in
§ 742.6(a)(2)(iii) and (v) are no longer
necessary for exports or reexports of
certain uncooled thermal imaging
cameras in 6A003. Thus, this proposed
rule would remove §§ 742.6(a)(2) and
(a)(4)(ii). Also, this proposed rule would
remove the current distinction in ECCN
6A003 for RS Column 1 and Column 2
controls and subject all items in 6A003
to the RS Column 1 reason for control.
BIS acknowledges that this proposal
would require a license for certain
transactions that currently would not
require one, but BIS believes that the
use of STA will alleviate concerns
regarding this change. BIS welcomes
comments on this proposal.
Due to the proposed changes to
§ 742.6 and ECCN 6A003, this proposed
rule would also amend corresponding
footnotes (current footnotes 2 and 4)
used in the Commerce Country Chart
(Supplement No. 1 to part 738). In
addition, this proposed rule would
amend License Exception APR to
remove references in § 740.16(b) to the
text proposed for removal in § 742.6.
This proposed rule would also amend
§ 742.4 to remove similar references to
text in § 742.6 proposed for deletion.
Finally, this proposed rule would
remove and reserve § 743.3, which
describes the current reporting
requirement created by the May 2009
final rule.
Proposed Revisions To Increase
Controls for Infrared Detection Items
Subject to the EAR
The May 5 proposed rule included a
number of proposed revisions to the
EAR to address concerns regarding the
sensitivity of certain items providing
infrared detection capability. This
proposed rule includes many of the
same proposals, but with some
differences noted below. This proposed
rule would revise certain controls and
policies for infrared detection items and
foreign-made military commodities
incorporating infrared detection items
by amending §§ 734.4, 740.2, 740.16,
740.20, 742.6, and 744.9 of the EAR.
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Revisions to Section 734.4 for 0A919
Foreign Military Commodities
Section 734.4(a)(5) of the EAR
currently provides that there is no de
minimis level for foreign military
commodities, as described in ECCN
0A919, that incorporate certain infrared
detection items. Since this proposed
rule would expand the scope of items
controlled under ECCN 0A919, as
described further below, § 734.4(a)(5)
would also be revised to reflect changes
to that ECCN. However, this proposed
rule would amend the de minimis
treatment for 0A919 items incorporating
infrared detection content to make them
consistent with 0A919 items
incorporating 600 series or 9x515
content. Thus, under this proposed rule,
there would be no de minimis level for
foreign-made military commodities
described in ECCN 0A919, which
incorporate commodities classified
under ECCNs 6A002, 6A003, 6A990, or
6A993.a (that meet the criteria of Note
3.a to ECCN 6A003.b.4.b), if the 0A919
commodities are destined for a country
in Country Group D:5. When destined
for a country outside of Country Group
D:5, such 0A919 commodities would be
subject to the 25% de minimis
threshold.
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Addition to Section 740.2
Section 740.2 sets forth restrictions on
all license exceptions, and the May 5
proposed rule included a restriction in
§ 740.2(a)(7) for certain 6E002
production technology for certain
infrared detection components in
6A002.a.2 or a.3 as well as for 6E990
technology.
The interagency review re-examined
those technologies that warranted
additional restrictions under § 740.2. As
a result of that review, this proposed
rule would increase the scope of
technology subject to the restriction by
including certain development
technology in ECCN 6E001. However,
this proposed rule would also narrow
the type of technology subject to the
restriction to focus on technology
related to the most sensitive dual-use
focal plane arrays and image intensifier
tubes in 6A002 to ensure that the
restriction is not overly broad in
covering technology related to all dualuse components. Thus, under this
proposed rule, § 740.2(a)(7) would apply
to 6E001 or 6E002 technology required
for the development or production of
the following focal plane arrays: photon
detector, microbolometer detector,
pyroelectric, or multispectral detector
infrared focal plane arrays (IRFPAs),
described in ECCN 6A002, having a
peak response within the wavelength
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range exceeding 900 nm but not
exceeding 30,000 nm, excluding lead
sulfide or lead selenide IRFPAs having
a peak response within the wavelength
range exceeding 1,000 nm but not
exceeding 5,000 nm and not exceeding
16 detector elements. Moreover,
§ 740.2(a)(7) would apply to 6E001 or
6E002 technology required for the
development or production of third
generation image intensifier tubes or
image intensifier tubes greater than
third generation (e.g., EBAPS). Such
6E001 and 6E002 technology would,
however, remain eligible for
§ 740.11(b)(2) of License Exception
GOV.
Restrictions on the Use of License
Exception APR
License Exception APR currently
authorizes specified reexports of items
subject to the EAR by certain countries
to specified destinations without
individual licenses from BIS. The May
5 proposed rule would increase the
number of items ineligible for paragraph
(a) of APR by including all items in
ECCNs 6A002, 6A003, and 6A990 in the
restrictions found in paragraph (a)(2).
This proposed rule maintains that
proposed change. Similarly, this
proposed rule would also add all items
in those ECCNs to the scope of items
subject to the restriction in paragraph
(b)(2) on the use of paragraph (b) of
APR. Also, this proposed rule would
further revise paragraph (b) of APR, as
previously described, with respect to
certain uncooled thermal imaging
cameras. With the proposed removal of
paragraph (b)(3), this proposed rule also
revises paragraph (b) by consolidating
the list of items ineligible to be
reexported under paragraph (b)(1) in
one location in paragraph (b)(2).
Restrictions on the Use of License
Exception STA
The EAR currently restricts the use of
License Exception STA for specific
commodities controlled by ECCNs
6A002, as well as related technology
controlled by 6E001 or 6E002, for export
or reexport to countries listed in
§ 740.20(c)(2). The May 5 proposed rule
would amend § 740.20(b)(2) to remove
License Exception STA availability for
additional items related to infrared
detection, and this proposed rule largely
adopts that proposal. This rule
maintains those proposed changes and
would make License Exception STA
unavailable for the following items:
Newly-proposed technology controlled
under ECCN 0E987; all commodities
controlled under ECCN 6A002 or
6A990; software controlled under ECCN
6D002 for the ‘‘use’’ of commodities
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controlled under ECCN 6A002.b;
software controlled under ECCN
6D003.c; software controlled under
ECCN 6D991 for the ‘‘development,’’
‘‘production,’’ or ‘‘use’’ of commodities
controlled under ECCNs 6A002, 6A003,
or 6A990; technology controlled under
ECCN 6E001 for the ‘‘development’’ of
commodities controlled under ECCNs
6A002 or 6A003; technology controlled
under ECCN 6E002 for the ‘‘production’’
of commodities controlled under ECCNs
6A002 or 6A003; and technology
controlled under ECCN 6E990.
Revisions to Licensing Policy
As previously mentioned, this
proposed rule does not include the
worldwide RS control that was
proposed in the May 5 proposed rule.
Thus, this proposed rule also does not
include the corresponding licensing
policy that was proposed in the May 5
proposed rule for § 742.6(b)(1).
However, this proposed rule would
revise current § 742.6(b)(1) to include
new licensing policy for 6E001 or 6E002
technology for the development or
production of focal plane arrays or
image intensifier tubes described in
6A002, or for 6E990 technology. Such
technology would be subject to a
presumption of denial for license
applications for exports or reexports to
countries in Country Group D:5. BIS is
proposing this change due to the
sensitivity of such technology.
Revisions to End-Use/End-User Controls
Section 744.9 currently requires a
license for the export or reexport to any
destination other than Canada for
cameras controlled by ECCNs
6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c
when the exporter knows or is informed
that the item is intended to be used by
a ‘‘military end-user’’ or to be
incorporated into a ‘‘military
commodity’’ controlled by ECCN
0A919, in addition to other applicable
license requirements in the EAR.
This proposed rule, like the May 5
proposed rule, would revise § 744.9 to
require a license for exports, reexports,
or transfers (in-country) of commodities
controlled by ECCN 0A987
(incorporating items in ECCNs 6A002
and 6A003, or certain cameras in
6A993.a), ECCN 6A002, ECCN 6A003,
ECCN 6A990, ECCN 6A993.a
commodities meeting the criteria of
Note 3.a to ECCN 6A003.b.4.b, ECCN
8A002.d.1.c, and ECCN 8A002.d.2,
when the exporter, reexporter, or
transferor knows or is informed that the
item is intended to be used by a
‘‘military end-user’’ or to be
incorporated into a ‘‘military
commodity’’ controlled by ECCN
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0A919. Commodities controlled by
ECCN 6A993.a as a result of meeting the
criteria of Note 3.a to ECCN 6A003.b.4.b
are cameras with a maximum frame rate
equal to or less than 9 Hz. Although
these 9 Hz cameras are subject only to
Anti-Terrorism controls, the agencies
determined that 9 Hz cameras are used
in foreign-made military commodities
and thus merited inclusion in § 744.9.
Based on public comments to the May
5 proposed rule, this proposed rule does
not include the license requirement for
such items if at the time of the export,
reexport, or transfer, the person is
unable to determine whether the item
will be or is intended to be used by a
military end user or incorporated into a
0A919 military commodity. Increasing
the scope of § 744.9 to include both the
unable to determine standard and the
license requirement for 9 Hz cameras
(which are often low-cost consumer
goods sold through distributors or
storefronts) would have triggered
extensive license requirements due to
the inability to determine whether the
items would be purchased by military
end users. To address concerns with
that standard, while still making 9 Hz
cameras subject to § 744.9 license
requirements, this proposed rule omits
the unable to determine standard and
would maintain the existing knowledge
standard in § 744.9.
Revisions to ECCN 0A919
ECCN 0A919 currently controls
‘‘military commodities’’ produced and
located outside the United States that
are not subject to the ITAR, and
incorporate one or more cameras
controlled under ECCNs 6A003.b.3,
6A003.b.4.b, or 6A003.b.4.c. In addition,
ECCN 0A919 controls such ‘‘military
commodities’’ if they incorporate more
than a de minimis amount of U.S.-origin
600 series content or are the direct
products of U.S.-origin 600 series
technology or software.
To control the reexport of such
military commodities that incorporate a
wider group of items on the CCL, this
proposed rule would revise ECCN
0A919 to control military commodities
produced outside the United States that
are not subject to the ITAR, and have
any of the following characteristics: (i)
Incorporate one or more commodities
classified under ECCNs 6A002, 6A003,
or 6A990; (ii) incorporate one or more
commodities controlled under ECCN
6A993.a as a result of meeting the
criteria specified in Note 3.a to ECCN
6A003.b.4.b (i.e., having a maximum
frame rate equal to or less than 9 Hz);
(iii) incorporate more than a de minimis
amount of U.S.-origin ‘‘600 series’’
controlled content; or (iv) are direct
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products of U.S.-origin ‘‘600 series’’
technology or software. This proposed
change to ECCN 0A919 mirrors the
proposal in the May 5 proposed rule.
Establishment of ECCN 0E987
As with the May 5 proposed rule, this
proposed rule would create a new ECCN
for technology required for the
‘‘development’’ or ‘‘production’’ of
commodities controlled by ECCN
0A987, if such commodities incorporate
a focal plane array or image intensifier
tube. ECCN 0E987 would be subject to
RS Column 1 and Anti-Terrorism
Column 1 controls. In addition, items
controlled by 0E987 would not be
eligible for License Exception STA.
Revisions to ECCN 6A002
ECCN 6A002 currently controls
specified optical sensors or equipment
and components therefor. The
Department of State’s proposed rule for
Category XII, which is being published
concurrently with this rule, proposes
the use of ‘‘specially designed’’ for
certain focal plane arrays, image
intensifier tubes, and other related items
that would be subject to the ITAR.
Because of that change, this proposed
rule does not include references in
6A002 to ‘‘permanent encapsulated
sensor assembly’’ or use luminous
sensitivity to describe those image
intensifier tubes subject to the EAR and
controlled under 6A002.
As noted above, this proposed rule
does not include the worldwide RS
control that was proposed in the May 5
proposed rule. This proposed rule
maintains the existing reasons for
control and would revise the Related
Controls paragraph to include references
to controls in USML Category XII, as
well as proposed controls in ECCN
0A919 and § 744.9.
Revisions to ECCN 6A003
ECCN 6A003 currently controls
specified cameras, systems or
equipment and components therefor. As
with the May 5 proposed rule, this
proposed rule would add a reference to
USML Category XII(c) in the Related
Controls paragraph of ECCN 6A003.
Also, this rule revises the Related
Controls references to ECCN 0A919 and
§ 744.9 to reflect the expansion of the
applicability of those provisions to all of
ECCN 6A003.
Due to proposed changes described
previously regarding license
requirements for certain uncooled
thermal imaging cameras in ECCN
6A003, this proposed rule would also
revise the applicability of the regional
stability control to the ECCN by
eliminating the RS Column 2 control
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and applying the RS Column 1 control
to the entire ECCN. This proposed
change would result in requiring a
license for certain items in 6A003 that
currently may not require a license
when exported or reexported to certain
destinations. While License Exception
STA would be available for many of
these transactions, BIS encourages
organizations that may be affected by
this change to submit public comments,
including any quantitative data, on the
impact of this proposal.
Revisions to ECCN 6A990
Under the Department of State’s
proposed rule to revise USML Category
XII, certain read-out integrated circuits
(ROICs) would be controlled under
XII(e). ROICs that are ‘‘specially
designed’’ for focal plane arrays
controlled under ECCN 6A002.a.3
would be classified under ECCN 6A990
and subject to the RS Column 1 reason
for control. Unlike the May 5 proposed
rule, this proposed rule would also add
a note to clarify that ROICs ‘‘specially
designed’’ for civil automotive
applications would not be controlled
under ECCN 6A990. BIS is proposing
this note in order to address
technological and market developments,
and this note parallels a similar carve
out in ECCN 6A003.
ROICs classified under 6A990 would
not be eligible for License Exception
STA and would be subject to the
limitations on the use of License
Exception APR in § 740.16(a)(2) and
(b)(2). This rule also proposes to insert
references to Category XII(e), ECCN
0A919, and § 744.9 under the Related
Controls paragraph. Also, this rule
would allow for the use of License
Exception LVS for this ECCN with a
$500 value limit. This change would
ensure that controls on ROICs subject to
the EAR are not more restrictive than
controls for ROICs proposed to be
controlled in USML Category XII(e),
which would be eligible for the
exemption in § 123.16(b)(2) of the ITAR.
Revisions to ECCN 6A993
As previously mentioned, § 744.9 is
proposed to be revised to require a
license for 9 Hz cameras if exported to
a ‘‘military end user’’ or if incorporated
into a ‘‘military commodity.’’ To remind
readers of the applicability of § 744.9
and ECCN 0A919 to 9 Hz cameras, this
proposed rule would provide a
reference to those provisions under the
Related Controls paragraph of 6A993.
Revisions to ECCNs 6D002, 6D003, and
6D991
The Wassenaar Arrangement’s Lists of
Dual-Use Goods and Technologies
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impose limited controls on software
related to commodities controlled under
ECCNs 6A002 and 6A003. As a result,
the CCL currently has the following
multilateral and unilateral software
controls related to such items: ECCN
6D002 (software ‘‘specially designed’’
for the ‘‘use’’ of commodities controlled
under ECCN 6A002.b), ECCN 6D003.c
(software designed or modified for
cameras incorporating ‘‘focal plane
arrays’’ specified by ECCN 6A002.a.3.f
and designed or modified to remove a
frame rate restriction and allow the
camera to exceed the frame rate
specified in ECCN 6A003.b.4 Note 3.a),
and ECCN 6D991 (software specially
designed for the ‘‘use’’ of commodities
controlled under ECCN 6A002.a.1.d).
To address concerns regarding the
lack of comprehensive software controls
related to commodities controlled under
ECCNs 6A002 and 6A003, this proposed
rule would consolidate existing,
unilateral software controls and would
expand them to revise ECCN 6D991 to
also control software, not elsewhere
specified, that is ‘‘specially designed’’
for the ‘‘development,’’ ‘‘production,’’ or
‘‘use’’ of commodities controlled by
ECCNs 6A002 or 6A003. Under this
proposed rule, such software would be
subject to the RS Column 1 reason for
control. Also, this proposed rule would
remove eligibility to use License
Exception TSR for the software
described above in ECCNs 6D002 and
6D003.c.
To prevent confusion over multiple
ECCNs potentially controlling the same
software, this proposed rule would add
language to the Related Controls
paragraphs of ECCN 6D991 to confirm
that software currently controlled under
ECCNs 6D002 and 6D003.c would
remain controlled under those
provisions. To reflect this
understanding, this proposed rule
would also revise the Related Controls
paragraphs of ECCNs 6D002 and 6D003
to provide references to ECCNs 6D991.
Revisions to ECCNs 6E001 and 6E002
ECCNs 6E001 and 6E002 currently
control ‘‘development’’ and
‘‘production’’ technology, respectively,
related to multiple ECCNs in Category 6,
including items related to infrared
detection in ECCNs 6A002 and 6A003.
This proposed rule would remove
eligibility for License Exception TSR for
all 6E001 or 6E002 technology related to
commodities controlled under 6A002 or
6A003, and this proposed rule would
add guidance to the Related Controls
paragraphs in ECCNs 6E001 and 6E002
to provide clarity on technology
controls related to commodities subject
to the ITAR.
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Proposed Establishment of ‘‘600 Series’’
for Military Fire Control, Laser,
Imaging, and Guidance and Control
Items Under ECCNs 7A611, 7B611,
7D611, and 7E611
This proposed rule would establish a
‘‘600 series’’ by revising ECCN 7A611
and adding new ECCNs 7B611, 7D611,
and 7E611 for military fire control,
laser, imaging, and guidance and control
commodities, software, and technology.
Categories 6 and 7 of the CCL currently
control certain laser, imaging, and
guidance and control items. In order to
ease understanding and use of this ‘‘600
series,’’ BIS is proposing to consolidate
such controls under Category 7 rather
than both Categories 6 and 7. However,
should readers look for such 600 series
items in Category 6, this proposed rule
would amend ECCN 6A611 to refer
readers to Category 7 to locate the
appropriate controls. ECCN 6A611 was
added to the CCL by a previously
published final rule entitled Revisions
to the Export Administration
Regulations (EAR): Control of Military
Electronic Equipment and Other Items
the President Determines No Longer
Warrant Control Under the United
States Munitions List (USML), 79 FR
37551 (July 1, 2014). Also, to assist
readers in locating controls for
navigation and avionics items ‘‘specially
designed’’ for a military application,
this proposed rule would move the
current heading of ECCN 7A611 into the
Related Controls paragraph of proposed
ECCN 7A611.
Under this proposed ‘‘600 series,’’
ECCN 7A611 would control military fire
control, laser, imaging, and guidance
and control equipment that would be
removed from USML Category XII and
that are not covered by an existing
ECCN subject to controls for reasons
other than Anti-Terrorism (AT) reasons.
Due to the increased use of ‘‘specially
designed’’ in the proposed USML
Category XII and to ensure that no
current defense articles are
inadvertently decontrolled, ECCN
7A611 would use ‘‘specially designed’’
as the primary control parameter in
paragraphs .a through .e, which would
control certain guidance, navigation, or
control systems; inertial measurement
units; accelerometers; gyros or angular
rate sensors; or gravity meters
(gravimeters). Paragraph .x would
control ‘‘parts,’’ ‘‘components,’’
‘‘accessories,’’ and ‘‘attachments’’ that
are ‘‘specially designed’’ for a
commodity controlled by ECCN 7A611
(except 7A611.y) or a defense article in
USML Category XII and not controlled
elsewhere on the USML or in 7A611.y
or 3A611.y. All items controlled under
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7A611 (excluding 7A611.y) would be
controlled for NS, RS, AT, and UN
reasons. Paragraph .y would control
specific ‘‘parts,’’ ‘‘components,’’
‘‘accessories,’’ and ‘‘attachments’’
‘‘specially designed’’ for a commodity
subject to control in ECCN 7A611, or a
defense article in USML Category XII
and not elsewhere specified on the
USML or in the CCL, and ‘‘parts,’’
‘‘components,’’ ‘‘accessories,’’ and
‘‘attachments’’ ‘‘specially designed’’
therefor. No items would be listed in
7A611.y under this proposed rule, but
should any items be added, they would
be subject to AT controls only.
This proposed rule does not include
any of the items enumerated under
ECCN 6A615 in the May 5 proposed
rule in ECCN 7A611. Due to the
increased use of ‘‘specially designed’’ in
USML Category XII in the State
Department’s corresponding proposed
rule, BIS believes that many of the items
previously proposed for control under
ECCN 6A615 would be controlled under
USML Category XII. In addition, after
reviewing public comments, BIS
believes that many of the items
proposed for control under ECCN
6A615.c in the May 5 proposed rule
would be adequately captured as dualuse items under ECCN 6C004.
New ECCN 7B611 would impose
controls on test, inspection, and
production equipment and related
commodities ‘‘specially designed’’ for
military fire control, laser, imaging, and
guidance and control equipment.
Paragraph .a would control such
equipment ‘‘specially designed’’ for the
‘‘development,’’ ‘‘production,’’ repair,
overhaul, or refurbishing of items
controlled in ECCN 7A611 (except
7A611.y) or commodities in USML
Category XII that are not enumerated in
USML Category XII or controlled by a
‘‘600 series’’ ECCN. Paragraph .b would
control environmental test facilities
‘‘specially designed’’ for certification,
qualification, or testing of commodities
controlled in ECCN 7A611 (except
7A611.y) or commodities in USML
Category XII that are not enumerated in
USML Category XII or a ‘‘600 series’’
ECCN. Paragraph .c would control field
test equipment ‘‘specially designed’’ to
evaluate or calibrate the operation of
systems described in USML Category
XII(a), (b), or (c). Paragraphs .d through
.w are reserved. Paragraph .x would
control parts, components, accessories,
and attachments that are ‘‘specially
designed’’ for such test, inspection and
production equipment that are not
enumerated on the USML or controlled
by another ‘‘600 series’’ ECCN. Items in
ECCN 7B611 would be controlled for
NS, RS, AT, and UN reasons.
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New ECCN 7D611 would control
‘‘software’’ ‘‘specially designed’’ for the
‘‘development,’’ ‘‘production,’’
operation, or maintenance of
commodities controlled by 7A611 or
7B611. Such software would be
controlled for NS, RS, AT, and UN
reasons. Any software added to 7D611.y
would be controlled for AT reasons
only.
New ECCN 7E611 would control
‘‘technology’’ ‘‘required’’ for the
‘‘development,’’ ‘‘production,’’
operation, installation, maintenance,
repair, overhaul, or refurbishing of items
controlled by 7A611, 7B611, or 7D611.
Such technology would be controlled
for NS, RS, AT, and UN reasons. Any
technology added to 7E611.y would be
controlled for AT reasons only. As
described in proposed § 742.6(a)(8), the
RS control would impose a license
requirement for exports and reexports of
technology in 7E611.a to all
destinations, including Canada (all
other technology in 7E611, other than
7E611.y, would be subject to an RS
Column 1 control). BIS believes that this
worldwide RS control would only affect
technical data currently controlled in
USML Category XII(f) that is not eligible
for the Canadian exemption under
Supplement No. 1 to part 126 of the
ITAR. As described in § 742.6(b)(1),
7E611.a technology would be subject to
the same licensing policy as other 600
series items. In addition, License
Exception STA would not be available
for 7E611.a technology but would be
available for technology in 7E611.b or .c
for exports or reexports to Country
Group A:5.
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
Proposed Revisions to Other Existing
ECCNs
The May 5 proposed rule included
revisions to many existing dual-use
ECCNs to provide cross references to
controls for similar items subject to the
ITAR under the proposed revisions to
USML Category XII. This proposed rule
includes revisions to the same ECCNs
but updates many of the cross references
to account for changes since the State
Department’s May 5 proposal.
Revisions to ECCN 0A987
ECCN 0A987 currently controls
specified optical sighting devices, and
this proposed rule would revise ECCN
0A987.f to specify that the entry
controls laser aiming devices or laser
illuminators ‘‘specially designed’’ for
use on firearms, and having an
operational wavelength exceeding 400
nm but not exceeding 710 nm. A
proposed note to ECCN 0A987.f would
further specify that the entry does not
control laser boresighting devices that
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must be placed in the bore or chamber
to provide a reference for aligning the
firearms sights. This proposed rule
would also provide jurisdictional
guidance in the Related Controls
paragraph to more clearly delineate
jurisdiction between USML Category XII
and ECCN 0A987.
Revisions to ECCN 2A984
ECCN 2A984 currently controls
concealed object detection equipment
that operates in the frequency range
from 30 GHz to 3000 GHz and has a
spatial resolution of 0.5 milliradians up
to and including 1 milliradian at a
standoff distance of 100 meters. Under
the Department of State’s proposed
revisions to USML Category XII, certain
terahertz imaging systems would be
enumerated under USML Category
XII(c). Consequently, this proposed rule
would add a reference to Category XII(c)
in the Related Controls paragraph of
ECCN 2A984.
Revisions to ECCN 6A004
ECCN 6A004 currently controls
optical equipment and components,
including gimbals meeting a number of
parameters, including slew, bandwidth,
angular pointing error, diameter, and
angular acceleration. The Department of
State proposes to control certain gimbals
under Category XII(e). To aid in
properly determining jurisdiction and
classification of gimbals, this proposed
rule would amend the Related Controls
paragraph of ECCN 6A004 to reference
gimbals controlled under USML
Category XII(e).
Revisions to ECCN 6A005
ECCN 6A005 currently controls
specified lasers, components and optical
equipment. The Department of State’s
corresponding proposed rule would
control certain laser systems and lasers
under USML Category XII(b) and (e),
respectively. To aid in properly
determining jurisdiction and
classification, this proposed rule would
revise the Related Controls paragraph of
ECCN 6A005 to refer readers back to
USML Category XII(b) and (e) for laser
systems or lasers subject to the ITAR.
Additionally, this proposed rule would
add a reference in the Related Controls
paragraph to USML Category XVIII for
certain laser-based directed energy
weapon items.
Revisions to ECCNs 6A007 and 6A107
ECCNs 6A007 and 6A107 currently
control certain gravity meters
(gravimeters) and gravity gradiometers.
Under the State Department’s proposed
rule, certain gravity meters and gravity
gradiometers subject to the ITAR would
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be controlled under USML Category
XII(d). Consequently, this proposed rule
would add references to the Related
Controls paragraphs of ECCNs 6A007
and 6A107 to refer readers to that
paragraph in Category XII. This
proposed rule also adds a reference to
ECCN 7A611 in the Related Controls
paragraphs of those ECCNs.
Revisions to ECCN 6A008
ECCN 6A008 currently controls radar
systems, equipment, and assemblies,
including certain laser detection and
ranging (LADAR) and light detection
and ranging (LIDAR) equipment under
ECCN 6A008.j. The Department of
State’s proposed rule would control
certain LIDAR, LADAR, and range-gated
systems in USML Category XII(b).
Consequently, this proposed rule would
amend the Related Controls paragraph
of ECCN 6A008 to add references to
those provisions of Category XII.
Revisions to ECCNs 7A001 and 7A101
ECCNs 7A001 and 7A101 control
certain accelerometers. The Department
of State’s proposed rule would control
certain accelerometers subject to the
ITAR under USML Category XII(e).
Therefore, this proposed rule would
amend the Related Controls paragraphs
of ECCNs 7A001 and 7A101 to add
references to USML Category XII(d).
This proposed rule also adds references
to ECCN 7A611 in the Related Controls
paragraphs of those ECCNs.
Revisions to ECCNs 7A002 and 7A102
ECCNs 7A002 and 7A102 control
certain gyros or angular rate sensors.
Under the State Department’s proposed
rule, certain gyros or angular rate
sensors would be subject to the ITAR
under USML Category XII(e). This
proposed rule would amend the Related
Controls paragraphs of ECCNs 7A002
and 7A102 to add references to USML
Category XII(e). This proposed rule also
adds references to ECCN 7A611. For the
Related Controls paragraph in ECCN
7A102, this proposed rule would also
add references to ECCNs 7A002 and
7A994.
Revisions to ECCN 7A003
ECCN 7A003 controls inertial
measurement equipment or systems.
Under the State Department’s proposed
rule, certain guidance or navigation
systems would be subject to the ITAR
under USML Category XII(d). This
proposed rule would amend the Related
Controls paragraph of ECCN 7A003 to
add a reference to that USML entry.
Also, this proposed rule would add a
reference to ECCN 7A611.
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Revisions to ECCN 7A005
ECCN 7A005 currently controls
specified Global Navigation Satellite
Systems (GNSS) receiving equipment.
This proposed rule would amend the
Related Controls section of ECCN 7A005
to use ‘‘GNSS’’ in place of ‘‘GPS’’ and
to provide a reference to GNSS receiving
equipment subject to the ITAR under
USML Category XII.
Revisions to ECCN 8A002
To reflect the expansion of the scope
of § 744.9 to apply to 8A002.d.1.c and
.d.2 items, this proposed rule would add
an additional sentence regarding § 744.9
to the Related Controls paragraph of
8A002.
Effects of This Proposed Rule
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
the April 16 (initial implementation)
rule, there is no de minimis eligibility
for ‘‘600 series’’ items destined for
countries subject to a U.S. arms
embargo, but there is a 25% de minimis
percentage for ‘‘600 series’’ items
destined for all countries not subject to
U.S. arms embargoes. The fire control,
laser, imaging, and guidance and control
items that would be subject to the EAR
as a result of this proposed rule would
become eligible for de minimis
treatment, so long as they are not
destined for a country subject to a U.S.
arms embargo.
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
Use of License Exceptions
Unless subject to the restrictions on
the use of STA in § 740.20(b)(2), many
of the fire control, laser, imaging, and
guidance and control items described in
this proposed rule would become
eligible for several license exceptions,
including STA, which would be
available for exports to certain
government agencies of NATO and
other multi-regime allies. The exchange
of information and statements required
under STA is substantially less
burdensome than the license
application requirements currently
required under the ITAR. Some items
covered by this rule also would be
eligible for the following license
exceptions: LVS (limited value
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shipments), up to $1500, and RPL
(servicing and parts replacement).
to Executive Order 13222, as amended
by Executive Order 13637.
Alignment With the Wassenaar
Arrangement Munitions List (WAML)
Rulemaking Requirements
1. Executive Orders 13563 and 12866
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distribute impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, of reducing costs, of
harmonizing rules, and of promoting
flexibility. This rule has been
designated a ‘‘significant regulatory
action,’’ although not economically
significant, under section 3(f) of
Executive Order 12866. Accordingly,
the rule has been reviewed by the Office
of Management and Budget (OMB).
2. Notwithstanding any other
provision of law, no person is required
to respond to, nor is subject to a penalty
for failure to comply with, a collection
of information, subject to the
requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.) (PRA), unless that collection of
information displays a currently valid
OMB control number. This proposed
rule would affect two approved
collections: Simplified Network
Application Processing + System
(control number 0694–0088), which
includes, among other things, license
applications, and License Exceptions
and Exclusions (0694–0137).
As stated in the proposed rule
published on July 15, 2011 (76 FR
41958) (‘‘July 15 proposed rule’’), BIS
initially believed that the combined
effect of all rules to be published adding
items to the EAR that will be removed
from the ITAR as part of the
administration’s Export Control Reform
Initiative would increase the number of
license applications to be submitted by
approximately 16,000 annually. As the
review of the USML has progressed, the
interagency group has gained more
specific information about the number
of items that will come under BIS
jurisdiction and whether those items
would be eligible for export under
license exceptions. As of June 21, 2012,
BIS revised that estimate to an increase
in license applications of 30,000
annually, resulting in an increase in
burden hours of 8,500 (30,000
transactions at 17 minutes each) under
control number 0694–0088. BIS
continues to believe that its revised
estimate is accurate.
Some items formerly on the USML
would become eligible for License
The Administration has stated since
the beginning of the Export Control
Reform Initiative that the reforms will
be consistent with U.S. obligations to
the multilateral export control regimes.
Accordingly, the Administration will, in
this proposed rule, exercise its national
discretion to implement, clarify, and, to
the extent feasible, align its controls
with those of the regimes. USML
Category XII encompasses multiple
WAML categories, including ML 5 (e.g.,
fire control and range-finding systems),
ML 11 (e.g., ‘‘guidance and navigation
equipment’’), and ML 15 (e.g., imaging
equipment). For simplicity, this
proposed rule uses one of these
categories—ML 11 (‘‘electronic
equipment specially designed for
military use,’’ including ‘‘guidance and
navigation equipment’’)—to add items
moving from USML Category XII to the
new 600 series ECCNs ending in ‘‘11.’’
Request for Comments
BIS seeks comments on this proposed
rule. BIS will consider all comments
received on or before April 4, 2016. All
comments must be in writing and
submitted via one or more of the
methods listed under the ADDRESSES
caption to this notice. All comments
(including any personal identifiable
information or information for which a
claim of confidentially is asserted either
in those comments or their transmittal
emails) will be available for public
inspection and copying. Parties who
wish to comment anonymously may do
so by submitting their comments via
www.regulations.gov, leaving the fields
for information that would identify the
commenter blank, and including no
identifying information in the comment
itself.
Export Administration Act
Although the Export Administration
Act expired on August 20, 2001, the
President, through Executive Order
13222 of August 17, 2001, 3 CFR, 2001
Comp., p. 783 (2002), as amended by
Executive Order 13637 of March 8,
2013, 78 FR 16129 (March 13, 2013) and
as extended by the Notice of August 7,
2015, 80 FR 48233 (August 11, 2015),
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
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Exception STA under this rule. As
stated in the July 15 proposed rule, BIS
believes that the increased use of
License Exception STA resulting from
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 would be more than offset by a
reduction in burden hours associated
with approved collections related to the
ITAR. This proposed rule addresses
controls on fire control, laser, imaging,
and guidance and control items. With
few exceptions, most exports of such
items, even when destined to NATO
member states and other close allies,
require State Department authorization.
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 require
State Department authorizations. Under
the EAR, as proposed, such technology
that would be subject to the EAR would
become eligible for export to NATO
member states and other close allies
under License Exception STA unless
otherwise specifically excluded. Use of
License Exception STA imposes a
paperwork and compliance burden
because, for example, exporters must
furnish information about the item
being exported to the consignee and
obtain from the consignee an
acknowledgement and commitment to
comply with the EAR. However, the
Administration believes that complying
with the requirements of STA is likely
less burdensome than applying for
licenses. For example, under License
Exception STA, a single consignee
statement can apply to an unlimited
number of products, need not have an
expiration date, and need not be
submitted to the government in advance
for approval. Suppliers with regular
customers can tailor a single statement
and assurance to match their business
relationship rather than applying
repeatedly for licenses with every
purchase order to supply reliable
customers in countries that are close
allies or members of export control
regimes or both.
Control number 0694–0137 also
includes thermal imaging camera
reporting under § 743.3. This proposed
rule would remove the reporting
requirement in § 743.3. Thus, BIS
estimates this elimination would reduce
the total annual burden hours in control
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Jkt 238001
number 0694–0137 by 60 hours
annually (60 reports at 1 hour each).
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 a regulatory flexibility
analysis of any rule subject to the notice
and comment rulemaking requirements
under the Administrative Procedure Act
(5 U.S.C. 553) or any other statute,
unless the agency certifies that the rule
will not have a significant economic
impact on a substantial number of small
entities. Under section 605(b) of the
RFA, however, if the head of an agency
(or his or her designee) certifies that a
rule will not have a significant impact
on a substantial number of small
entities, the statute does not require the
agency to prepare a regulatory flexibility
analysis. Pursuant to section 605(b), the
Chief Counsel for Regulation,
Department of Commerce, submitted a
memorandum to the Chief Counsel for
Advocacy, Small Business
Administration, certifying that the May
5 proposed rule would not have a
significant impact on a substantial
number of small entities. The rationale
for that certification was set forth in the
preamble to that proposed rule.
Although BIS received no comments on
that rationale, and has accordingly made
no changes to the proposed rule based
on the RFA certification, BIS has
determined that, in the interest of
openness and transparency, it will
briefly restate the rationale behind the
certification here.
This proposed rule is part of the
Administration’s Export Control Reform
Initiative, which seeks to revise the
USML to a positive list—one that does
not use generic, catch-all controls for
items listed—and to move some items
that the President has determined no
longer merit control under the ITAR to
control under the CCL.
Although BIS does not collect data on
the size of entities that apply for and are
issued export licenses, and is therefore
unable to estimate the exact number of
small entities—as defined by the Small
Business Administration’s regulations
implementing the RFA—BIS
acknowledges that some small entities
may be affected by this proposed rule.
The main effects on small entities
resulting from this rule will be in
application times, costs, and delays in
receiving licenses to export goods
subject to the CCL. However, while
small entities may experience some
costs and time delays for exports due to
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8429
the license requirements of the CCL,
these costs and delays will likely be
significantly less than they were for
items previously subject to the USML.
BIS believes that in fact this rule will
result in significantly reduced
administrative costs and delays for
exports of items that will, upon this
rule’s implementation, be subject to the
EAR rather than the ITAR. Currently,
USML applicants must pay to use the
USML licensing procedure even if they
never actually are authorized to export.
Registration fees for manufacturers and
exporters of articles on the USML start
at $2,250 per year, increase to $2,750 for
organizations applying for one to ten
licenses per year and further increases
to $2,750 plus $250 per license
application (subject to a maximum of
three percent of total application value)
for those who need to apply for more
than ten licenses per year. By contrast,
BIS is statutorily prohibited from
imposing licensing fees. In addition,
exporters and reexporters of goods that
would become subject to the EAR under
this rule would need fewer licenses
because their transactions would
become eligible for license exceptions
that were not available under the ITAR.
Additionally, the ITAR controls parts
and components even when they are
incorporated—in any amount—into a
foreign-made product. That limitation
on the use of U.S.-made goods subject
to the ITAR discouraged foreign
manufacturers from importing U.S.
goods. However, the EAR has a de
minimis exception for U.S.manufactured goods that are
incorporated into foreign-made
products. This exception may benefit
small entities by encouraging foreign
producers to use more U.S.-made items
in their goods.
Even where an exporter or reexporter
would need to obtain a license under
the EAR, that process is both cheaper
and the process is more flexible than
obtaining a license under the ITAR. For
example, unlike the ITAR, the EAR does
not require license applicants to provide
BIS with a purchase order with the
application, meaning that small (or any)
entities can enter into negotiations or
contracts for the sale of goods without
having to caveat any sale presentations
with a reference to the need to obtain a
license under the ITAR before shipment
can occur. Second, the EAR allows
license applicants to obtain licenses to
cover all expected exports or reexports
to a particular consignee over the life of
a license, rather than having to obtain a
new license for every transaction.
In short, BIS expects that the changes
to the EAR proposed in this rule will
have a positive effect on all affected
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entities, including small entities. While
BIS acknowledges that this rule may
have some cost impacts to small (and
other) entities, those costs are more than
offset by the benefits to the entities from
the licensing procedures under the EAR,
which are much less costly and less
time consuming than the procedures
under the ITAR. Accordingly, the Chief
Counsel for Regulation for the
Department of Commerce has certified
that this rule, if implemented, will not
have a significant economic impact on
a substantial number of small entities.
Accordingly, an initial regulatory
flexibility analysis is not required, and
none has been prepared.
List of Subjects
15 CFR Part 734
Administrative practice and
procedure, Exports, Inventions and
patents, Research science and
technology.
(a) * * *
(5) There is no de minimis level for
foreign-made ‘‘military commodities’’
incorporating one or more of the
commodities described in ECCN
0A919.a.1 when destined for a country
listed in Country Group D:5 of
Supplement No. 1 to part 740 of the
EAR.
*
*
*
*
*
3. The authority citation for 15 CFR
part 738 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, 2015, 80
FR 48233 (August 11, 2015).
15 CFR Part 740
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 742
Exports, Terrorism.
15 CFR Part 743
4. In Supplement No. 1 to part 738,
The Commerce Country Chart, is
amended by:
■ a. Removing references to footnote
number 2 in the rows for Albania,
Cyprus, Malta, and South Africa;
■ b. Removing references to footnote
number 4 in the rows for Austria;
Cyprus; Finland; Ireland; Korea, South;
Malta; South Africa; Sweden; and
Switzerland; and
■ c. Removing and reserving footnotes 2
and 4 to the table.
■
Administrative practice and
procedure, Reporting and recordkeeping
requirements.
15 CFR Part 744
Exports, Reporting and recordkeeping
requirements, Terrorism.
15 CFR Part 772
Exports.
15 CFR Part 774
Exports, Reporting and recordkeeping
requirements.
For the reasons stated in the
preamble, the Export Administration
Regulations (15 CFR parts 730–774) are
proposed to be amended as follows:
PART 734—[AMENDED]
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§ 734.4 De minimis U.S. content.
■
Exports.
1. The authority citation for 15 CFR
part 734 continues to read as follows:
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099,
3 CFR, 1994 Comp., p. 950; E.O. 13020, 61
FR 54079, 3 CFR, 1996 Comp., p. 219; E.O.
13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
Comp., p. 783; E.O. 13637 of March 8, 2013,
78 FR 16129 (March 13, 2013); Notice of
August 7, 2015, 80 FR 48233 (August 11,
16:51 Feb 18, 2016
2. Section 734.4 is amended by:
a. Removing and reserving paragraph
(a)(3);
■ b. Removing the Note to paragraph
(a)(3); and
■ c. Revising paragraph (a)(5) to read as
follows:
■
■
PART 738—[AMENDED]
15 CFR Part 738
VerDate Sep<11>2014
2015); Notice of November 12, 2015, 80 FR
70667 (November 13, 2015).
Jkt 238001
PART 740—[AMENDED]
5. The authority citation for 15 CFR
part 740 continues to read as follows:
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.;
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, 2015, 80
FR 48233 (August 11, 2015).
6. Section 740.2 is amended by:
a. Removing and reserving paragraph
(a)(9), and
■ b. Revising paragraph (a)(7) to read as
follows:
■
■
§ 740.2 Restrictions on all License
Exceptions.
(a) * * *
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(7) With the exception of License
Exception GOV (§ 740.11(b)(2)), license
exceptions are not available for the
following 6E001 or 6E002 technology:
(i) Technology required for the
‘‘development’’ or ‘‘production’’ of
photon detector, microbolometer
detector, pyroelectric, or multispectral
detector infrared focal plane arrays
(IRFPAs), described in ECCN 6A002,
having a peak response within the
wavelength range exceeding 900 nm but
not exceeding 30,000 nm, excluding
lead sulfide or lead selenide IRFPAs
having a peak response within the
wavelength range exceeding 1,000 nm
but not exceeding 5,000 nm and not
exceeding 16 detector elements; or
(ii) Technology required for the
‘‘development’’ or ‘‘production’’ of third
generation or greater (e.g., EBAPS)
image intensifier tubes described in
ECCN 6A002.
*
*
*
*
*
■ 7. Section 740.16 is amended by:
■ a. Revising paragraphs (a)(2), (b)(1),
and (b)(2), and
■ b. Removing and reserving (b)(3), to
read as follows:
§ 740.16
(APR).
Additional permissive reexports
(a) * * *
(2) The commodities being reexported
are not controlled for NP, CB, MT, SI or
CC reasons and are not military
commodities described in ECCN 0A919;
commodities described in 3A001.b.2 or
b.3 (except those that are being
reexported for use in civil
telecommunications applications); or
commodities described in ECCNs
6A002, 6A003, or 6A990; and
*
*
*
*
*
(b) * * *
(1) Eligible commodities may be
reexported to and among destinations in
Country Group A:1 and Hong Kong for
use or consumption within a destination
in Country Group A:1 (see Supplement
No. 1 to part 740) or Hong Kong, or for
reexport from such country in
accordance with other provisions of the
EAR.
(2) Commodities not eligible for
reexport under paragraph (b)(1) are:
(i) Commodities controlled for nuclear
nonproliferation or missile technology
reasons;
(ii) Commodities in 3A001.b.2 or b.3
(except those that are being reexported
for use in civil telecommunications
applications);
(iii) ‘‘Military commodities’’
described in ECCN 0A919; or
(iv) Commodities described in ECCNs
6A002, 6A003, or 6A990, or
commodities described in ECCN 0A987
incorporating an image intensifier tube.
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(3) [RESERVED]
*
*
*
*
■ 8. Section 740.20 is amended by
revising paragraphs (b)(2)(ii) and
(b)(2)(x), to read as follows:
*
§ 740.20 License Exception Strategic
Trade Authorization (STA).
*
*
*
*
*
(b) * * *
(2) * * *
(ii) License Exception STA may not be
used for any item controlled under
ECCNs 0A981, 0A982, 0A983, 0A985,
0E982, or 0E987.
*
*
*
*
*
(x) License Exception STA may not be
used for items controlled by ECCNs
6A002; 6A990; 6D002 (software
specially designed for the ‘‘use’’ of
commodities controlled under 6A002.b);
6D003.c; 6D991 (software ‘‘specially
designed’’ for the ‘‘development,’’
‘‘production,’’ or ‘‘use’’ of commodities
controlled under 6A002, 6A003, or
6A990); 6E001 (‘‘technology’’ for the
‘‘development’’ of commodities
controlled under ECCNs 6A002 or
6A003); 6E002 ‘‘technology’’ (for the
‘‘production’’ of commodities controlled
under ECCNs 6A002 or 6A003); or
6E990.
*
*
*
*
*
PART 742—[AMENDED]
9. The authority citation for 15 CFR
part 742 continues to read as follows:
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.;
42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; Sec. 1503, Pub. L. 108–11, 117
Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR,
1978 Comp., p. 179; E.O. 12851, 58 FR 33181,
3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O.
13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
Comp., p. 783; Presidential Determination
2003–23 of May 7, 2003, 68 FR 26459, May
16, 2003; Notice of August 7, 2015, 80 FR
48233 (August 11, 2015); Notice of November
12, 2015, 80 FR 70667 (November 13, 2015).
10. Section 742.4 is amended by
revising paragraph (a) to read as follows:
■
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§ 742.4
National security.
(a) License requirements. It is the
policy of the United States to restrict the
export and reexport of items that would
make a significant contribution to the
military potential of any other country
or combination of countries that would
prove detrimental to the national
security of the United States.
Accordingly, a license is required for
exports and reexports to all
destinations, except Canada, for all
items in ECCNs on the CCL that include
NS Column 1 in the Country Chart
VerDate Sep<11>2014
16:51 Feb 18, 2016
Jkt 238001
column of the ‘‘License Requirements’’
section. A license is required to all
destinations except those in Country
Group A:1 (see Supplement No. 1 to
part 740), for all items in ECCNs on the
CCL that include NS column 2 in the
Commerce Country Chart column of the
‘‘License Requirements’’ section. The
purpose of the controls is to ensure that
these items do not make a contribution
to the military potential of countries in
Country Group D:1 (see Supplement No.
1 to part 740 of the EAR) that would
prove detrimental to the national
security of the United States. License
Exception GBS is available for the
export and reexport of certain national
security controlled items to Country
Group B (see § 740.4 and Supplement
No. 1 to part 740 of the EAR).
*
*
*
*
*
■ 11. Section 742.6 is amended by:
■ a. Removing and reserving paragraphs
(a)(2) and (a)(4)(ii);
■ b. Revising the last sentence of
paragraph (a)(1);
■ c. Adding paragraph (a)(8); and
■ d. Revising paragraph (b)(1), to read as
follows:
§ 742.6
Regional stability.
(a) * * *
(1) * * * Transactions described in
paragraph (a)(3) of this section are
subject to the RS Column 1 license
requirements set forth in that paragraph
rather than the license requirements set
forth in this paragraph (a)(1).
*
*
*
*
*
(8) Special worldwide RS license
requirement for ECCN 7E611.a. A
license is required to export or reexport
items described in ECCN 7E611.a to all
destinations, including Canada.
*
*
*
*
*
(b) * * *
(1) Licensing policy for RS Column 1
items and ECCN 7E611.a.
(i) 9x515 and ‘‘600 series’’ ECCNs.
Applications for exports and reexports
of 9x515 and ‘‘600 series’’ items will be
reviewed on a case-by-case basis to
determine whether the transaction is
contrary to the national security or
foreign policy interests of the United
States, including the foreign policy
interest of promoting the observance of
human rights throughout the world.
Other applications for exports and
reexports described in paragraph (a)(1),
(6), (7), or (8) of this section will be
reviewed on a case-by-case basis to
determine whether the export or
reexport could contribute directly or
indirectly to any country’s military
capabilities in a manner that would alter
or destabilize a region’s military balance
contrary to the foreign policy interests
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of the United States. Applications for
reexports of items described in
paragraph (a)(3) of this section will be
reviewed applying the policies for
similar commodities that are subject to
the ITAR. Applications for export or
reexport of items classified under any
9x515 or ‘‘600 series’’ ECCN requiring a
license in accordance with paragraph
(a)(1) or (8) of this section will also be
reviewed consistent with United States
arms embargo policies in § 126.1 of the
ITAR if destined to a country set forth
in Country Group D:5 in Supplement
No. 1 to part 740 of the EAR.
Applications for export or reexport of
‘‘parts,’’ ‘‘components,’’ ‘‘accessories,’’
‘‘attachments,’’ ‘‘software,’’ or
‘‘technology’’ ‘‘specially designed’’ or
otherwise required for the F–14 aircraft
will generally be denied. When destined
to the People’s Republic of China or a
country listed in Country Group E:1 in
Supplement No. 1 to Part 740 of the
EAR, items classified under any 9x515
ECCN will be subject to a policy of
denial.
(ii) Certain infrared detection
technology. Applications for exports
and reexports to a country listed in
Country Group D:5 (in Supplement No.
1 to part 740 of the EAR) of technology
controlled under 6E001 for the
development of focal plane arrays or
image intensifier tubes described in
6A002, technology controlled under
6E002 for the production of focal plane
arrays or image intensifier tubes
described in 6A002, or technology
controlled under 6E990 will be
reviewed with a presumption of denial.
*
*
*
*
*
PART 743—[AMENDED]
12. The authority citation for 15 CFR
part 743 continues to read as follows:
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025,
3 CFR, 2001 Comp., p. 783; E.O. 13637 of
March 8, 2013, 78 FR 16129 (March 13,
2013); 78 FR 16129; Notice of August 7, 2015,
80 FR 48233 (August 11, 2015).
13. Part 743 is amended by removing
and reserving § 743.3.
■
PART 744—[AMENDED]
14. The authority citation for 15 CFR
part 744 continues to read as follows:
■
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.;
42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR,
1978 Comp., p. 179; E.O. 12851, 58 FR 33181,
3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O.
12947, 60 FR 5079, 3 CFR, 1995 Comp., p.
356; E.O. 13026, 61 FR 58767, 3 CFR, 1996
Comp., p. 228; E.O. 13099, 63 FR 45167, 3
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CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR
44025, 3 CFR, 2001 Comp., p. 783; E.O.
13224, 66 FR 49079, 3 CFR, 2001 Comp., p.
786; Notice of January 21, 2015, 80 FR 3461
(January 22, 2015); Notice of August 7, 2015,
80 FR 48233 (August 11, 2015); Notice of
September 18, 2015, 80 FR 57281 (September
22, 2015); Notice of November 12, 2015, 80
FR 70667 (November 13, 2015).
only by, or at the direction of, the
Deputy Assistant Secretary for Export
Administration. When such notice is
provided orally, it will be followed by
a written notice within two working
days signed by the Deputy Assistant
Secretary for Export Administration.
*
*
*
*
*
15. Section 744.9 is amended by
revising the heading and paragraphs (a)
and (b) to read as follows:
■
■
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§ 744.9 Restrictions on certain exports and
reexports of certain cameras, systems, or
equipment.
(a) General prohibitions. In addition
to the applicable license requirements
for national security, regional stability,
anti-terrorism and United Nations
embargo reasons in §§ 742.4, 742.6,
742.8, 746.1(b), and 746.3 of the EAR, a
license is required to export, reexport,
or transfer (in-country) to any
destination other than Canada
commodities described in ECCNs 0A987
(incorporating commodities controlled
by ECCNs 6A002 or 6A003, or
commodities controlled by 6A993.a that
meet the criterion of Note 3.a to
6A003.b.4), 6A002, 6A003, 6A990, or
6A993.a (having a maximum frame rate
equal to or less than 9 Hz and thus
meeting the criteria of Note 3.a to
6A003.b.4), 8A002.d.1.c, or 8A002.d.2 if
at the time of export, reexport, or
transfer, the exporter, reexporter, or
transferor knows or is informed that the
item will be or is intended to be:
(1) Used by a ‘‘military end-user,’’ as
defined in paragraph (d) of this section;
or
(2) Incorporated into a ‘‘military
commodity’’ controlled by ECCN
0A919.
(b) Additional prohibition on
exporters, reexporters, or transferors
informed by BIS. BIS may inform an
exporter, reexporter, or transferor, either
individually by specific notice or
through amendment to the EAR, that a
license is required for the export,
reexport, or transfer of commodities
described in ECCNs 0A987
(incorporating commodities controlled
by ECCNs 6A002 or 6A003, or
commodities controlled by 6A993.a that
meet the criterion of Note 3.a to
6A003.b.4), 6A002, 6A003, 6A990, or
6A993.a (having a maximum frame rate
equal to or less than 9 Hz and thus
meeting the criteria of Note 3.a to
6A003.b.4), 8A002.d.1.c, or 8A002.d.2
to specified end users, because BIS has
determined that there is an
unacceptable risk of diversion to the
users or unauthorized incorporation
into the ‘‘military commodities’’
described in paragraph (a) of this
section. Specific notice is to be given
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PART 772—[AMENDED]
16. The authority citations paragraph
for part 772 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025,
3 CFR, 2001 Comp., p. 783; Notice of August
7, 2015, 80 FR 48233 (August 11, 2015).
17. Section 772.1 is amended by
revising the last sentence in Note 1 to
the definition of ‘‘specially designed,’’
to read as follows:
■
§ 772.1 Definitions of terms as used in the
Export Administration Regulations (EAR).
*
*
*
*
*
Specially designed.
*
*
*
*
*
Note 1: * * * For purposes of
‘‘specially designed,’’ ECCNs 0B986,
0B999, 0D999, 1B999, 1C992, 1C995,
1C997, 1C999, 6A998 (except for .b),
and 9A991 are treated as ECCNs
controlled exclusively for AT reasons.
*
*
*
*
*
PART 774—[AMENDED]
18. The authority citations paragraph
for 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, 2015, 80
FR 48233 (August 11, 2015).
Supplement No. 1 to Part 774
[Amended]
■ 19. In Supplement No. 1 to part 774,
Category 0, ECCN 0A919 is amended by
revising the Items paragraph of the List
of Items Controlled section to read as
follows:
Supplement No. 1 to Part 774—The
Commerce Control List
*
*
*
*
*
*
*
*
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*
Frm 00012
*
Fmt 4702
0A987 Optical sighting devices for firearms
(including shotguns controlled by
0A984); and ‘‘components’’ as follows
(See List of Items Controlled).
*
*
*
*
*
List of Items Controlled
Related Controls: (1) Sighting devices
operating outside the visible spectrum, as
enumerated in USML Category XII, or laser
aiming or laser illumination equipment not
specified in 0A987.f are subject to the
ITAR. (2) Section 744.9 imposes a license
requirement on certain commodities
described in 0A987 if being exported,
reexported, or transferred (in-country) for
use by a military end-user or for
incorporation into an item controlled by
ECCN 0A919.
*
*
*
*
*
*
*
*
*
Items:
*
f. Laser aiming devices or laser
illuminators specially designed for use on
firearms, and having an operational
wavelength exceeding 400 nm but not
exceeding 710 nm.
Note: 0A987.f does not control laser
boresighting devices that must be placed in
the bore or chamber to provide a reference for
aligning the firearms sights.
*
*
*
*
*
21. In Supplement No. 1 to part 774,
Category 0, add ECCN 0E987 between
ECCN 0E984 and EAR99, to read as
follows:
■
*
*
License Requirements
Reason for Control: RS, AT.
List of Items Controlled
*
20. In Supplement No. 1 to part 774,
Category 0, ECCN 0A987 is amended by:
■ a. Revising the Related Controls
paragraph in the List of Items Controlled
section;
■ b. Revising paragraph f. in the Items
paragraph in the List of Items Controlled
section; and
■ c. Adding a note to 0A987.f, to read
as follows:
■
0E987 ‘‘Technology’’ ‘‘required’’ for the
‘‘development,’’ or ‘‘production’’ of
commodities controlled by 0A987 that
incorporate a focal plane array or image
intensifier tube.
0A919 ‘‘Military commodities’’ located and
produced outside the United States as
follows (see List of Items Controlled).
*
Items:
a. ‘‘Military commodities’’ produced and
located outside the United States that are not
subject to the International Traffic in Arms
Regulations (22 CFR parts 120–130) and
having any of the following characteristics:
a.1. Incorporate one or more commodities
classified under ECCNs 6A002, 6A003,
6A990, or 6A993.a (having a maximum frame
rate equal to or less than 9 Hz and thus
meeting the criterion of Note 3.a to
6A003.b.4);
a.2. Incorporate more than a de minimis
amount of U.S.-origin ‘‘600 series’’ controlled
content (see § 734.4 of the EAR); or
a.3. Are direct products of U.S.-origin ‘‘600
series’’ technology or software (see
§ 736.2(b)(3) of the EAR).
b. [Reserved]
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Country chart (see
Supp. No. 1 to Part
738)
Control(s)
RS applies to entire
entry.
AT applies to entire
entry.
RS Column 1
AT Column 1
List Based License Exceptions (See Part 740
for a description of all license
exceptions)
CIV: N/A
TSR: N/A
List of Items Controlled
Related Controls: N/A
Related Definitions: N/A
Items:
The list of items controlled is contained in
the ECCN heading.
22. In Supplement No. 1 to part 774,
Category 2, ECCN 2A984 is amended by
adding Note 4 to the end of the Related
Controls paragraph in the List of Items
Controlled section, to read as follows:
■
2A984 Concealed object detection
equipment operating in the frequency
range from 30 GHz to 3000 GHz and
having a spatial resolution of 0.5
milliradian up to and including 1
milliradian at a standoff distance of 100
meters; and ‘‘parts’’ and ‘‘components,’’
n.e.s.
*
*
*
*
*
6A002 Optical sensors and equipment and
‘‘components’’ therefor, as follows (see
List of Items Controlled).
*
*
*
*
List of Items Controlled
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*
*
*
*
License Requirements
Related Controls: (1) See ECCN 6D001 for
‘‘software’’ for items controlled under this
entry. (2) See ECCNs 6E001
(‘‘development’’), 6E002 (‘‘production’’),
and 6E201 (‘‘use’’) for technology for items
controlled under this entry. (3) Also see
ECCNs 6A205 and 6A995. (4) See ECCN
3B001 for excimer ‘‘lasers’’ ‘‘specially
designed’’ for lithography equipment. (5)
‘‘Lasers’’ ‘‘specially designed’’ or prepared
for use in isotope separation are subject to
the export licensing authority of the
Nuclear Regulatory Commission (see 10
CFR part 110). (6) See USML Category
XII(b) and (e) for laser systems or lasers
subject to the ITAR. (7) See USML Category
XVIII for certain laser-based directed
energy weapon systems, equipment, and
components subject to the ITAR.
*
*
*
*
NS applies to entire
entry.
NP applies to cameras controlled by
6A003.a.2, a.3 or
a.4 and to plug-ins
in 6A003.a.6 for
cameras controlled
by 6A003.a.3 or
a.4.
RS applies to entire
entry.
AT applies to entire
entry.
UN applies to items
controlled in
6A003.b.3 and b.4.
*
*
*
Country chart (see
Supp. No. 1 to Part
738)
Control(s)
*
*
*
*
*
■ 23. In Supplement No. 1 to part 774,
Category 6, ECCN 6A002 is amended by:
■ a. Removing the ‘‘Special Conditions
for STA’’ section; and
■ b. Revising the Related Controls
paragraph in the List of Items Controlled
section.
*
Related Controls: (1) For focal plane arrays,
image intensifier tubes, and related parts
and components subject to the ITAR, see
USML Category XII(e). (2) See also ECCNs
6A102, 6A202, and 6A992. (3) See ECCN
0A919 for foreign-made military
commodities that incorporate commodities
described in 6A002. (4) Section 744.9
imposes a license requirement on
commodities described in ECCN 6A002 if
being exported, reexported, or transferred
(in-country) for use by a military end-user
or for incorporation into an item controlled
by ECCN 0A919.
*
*
*
*
24. In Supplement No. 1 to part 774,
Category 6, ECCN 6A003 is amended by:
*
NS Column 2
NP Column 1
RS Column 1
AT Column 1
See § 746.1(b) for UN
controls
*
*
*
*
*
Related Controls: * * * (4) See ECCN
0A919 for foreign made military commodities
that incorporate cameras described in 6A003.
(5) Section 744.9 imposes a license
requirement on cameras described in 6A003
if being exported, reexported, or transferred
(in-country) for use by a military end-user or
for incorporation into a commodity
controlled by ECCN 0A919. (6) See USML
Category XII(c) for cameras subject to the
ITAR.
*
*
*
*
*
25. In Supplement No. 1 to part 774,
Category 6, ECCN 6A004 is amended by
revising the Related Controls paragraph
in the List of Items Controlled section to
read as follows:
■
6A004 Optical equipment and
‘‘components,’’ as follows (see List of
Items Controlled).
*
*
*
*
*
*
*
*
*
*
■
16:51 Feb 18, 2016
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*
*
*
*
26. In Supplement No. 1 to part 774,
Category 6, ECCN 6A005 is amended by
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*
*
*
*
*
*
*
*
*
*
*
*
*
27. In Supplement No. 1 to part 774,
Category 6, ECCN 6A007 is amended by
revising the Related Controls paragraph
in the List of Items Controlled section,
to read as follows:
■
6A007 Gravity meters (gravimeters) and
gravity gradiometers, as follows (see List
of Items Controlled).
*
*
*
*
*
List of Items Controlled
Related Controls: (1) See USML Category
XII(d) for certain gravity meters (gravimeters)
and gravity gradiometers subject to the ITAR.
(2) See also ECCNs 6A107, 6A997, and
7A611.
*
*
*
*
*
28. In Supplement No. 1 to part 774,
Category 6, ECCN 6A008 is amended by
revising the Related Controls paragraph
in the List of Items Controlled section to
read as follows:
■
6A008 Radar systems, equipment and
assemblies, having any of the following
(see List of Items Controlled), and
‘‘specially designed’’ ‘‘components’’
therefor.
*
*
*
*
List of Items Controlled
*
Related Controls: (1) For optical mirrors or
‘aspheric optical elements’ ‘‘specially
designed’’ for lithography ‘‘equipment,’’
see ECCN 3B001. (2) See USML Category
XII(e) for gimbals ‘‘subject to the ITAR.’’ (3)
See also 6A994.
■
*
List of Items Controlled
*
List of Items Controlled
*
VerDate Sep<11>2014
6A005 ‘‘Lasers,’’ ‘‘components’’ and optical
equipment, as follows (see List of Items
Controlled), excluding items that are
subject to the export licensing authority
of the Nuclear Regulatory Commission
(see 10 CFR part 110).
*
List of Items Controlled
*
revising the Related Controls paragraph
in the List of Items Controlled section.
6A003 Cameras, systems or equipment,
and ‘‘components’’ therefor, as follows
(see List of Items Controlled).
*
List of Items Controlled
Related Controls: * * * (4) See USML
Category XII(c) for terahertz imaging
systems ‘‘subject to the ITAR.’’
*
a. Revising the Control(s) table in the
License Requirements section;
■ b. Revising notes 4 and 5 in the
Related Controls paragraph in the List of
Items Controlled section; and
■ c. Adding note 6 to the Related
Controls paragraph in the List of Items
Controlled section, to read as follows:
■
*
*
*
*
*
Related Controls: This entry does not control:
Secondary surveillance radar (SSR); Car
radar designed for collision prevention;
Displays or monitors used for Air Traffic
Control (ATC) having no more than 12
resolvable elements per mm;
Meteorological (weather) radar. See also
ECCNs 6A108 and 6A998. ECCN 6A998
controls, inter alia, the Light Detection and
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Ranging (LIDAR) equipment excluded by
the note to paragraph j of this ECCN
(6A008). See USML Category XII(b) for
certain LIDAR, Laser Detection and
Ranging (LADAR), or range-gated systems
subject to the ITAR.
*
*
*
*
*
29. In Supplement No. 1 to part 774,
Category 6, ECCN 6A107 is amended by
revising the Related Controls paragraph
in the List of Items Controlled section to
read as follows:
■
6A107 Gravity meters (gravimeters) or
gravity gradiometers, other than those
controlled by 6A007, designed or
modified for airborne or marine use, as
follows, (see List of Items Controlled)
and ‘‘specially designed’’ ‘‘parts’’ and
‘‘components’’ therefor.
*
*
*
*
*
List of Items Controlled
*
*
*
*
*
Related Controls: See USML Category XII(d)
for certain gravity meters (gravimeters) or
gravity gradiometers subject to the ITAR.
See also ECCN 7A611.
incorporate commodities described in
6A990. (3) Section 744.9 imposes a license
requirement on commodities described in
6A990 if being exported, reexported, or
transferred (in-country) for use by a
military end-user or for incorporation into
a commodity controlled by ECCN 0A919.
Related Definitions: N/A
Items:
a. Read-out integrated circuits ‘‘specially
designed’’ for ‘‘focal plane arrays’’ controlled
by 6A002.a.3;
Note: 6A990.a does not control read-out
integrated circuits ‘‘specially designed’’ for
civil automotive applications.
b. [RESERVED]
*
*
*
*
*
32. In Supplement No. 1 to part 774,
Category 6, ECCN 6A993 is amended by
revising the Related Controls paragraph
in the List of Items Controlled section,
to read as follows:
■
*
*
Control(s)
RS applies to entire
entry.
AT applies to entire
entry.
Country chart (see
Supp. No. 1 to Part
738)
*
*
*
*
*
*
*
33. In Supplement No. 1 to part 774,
Category 6, ECCN 6D002 is amended by:
■ a. Revising the TSR paragraph in the
List Based License Exceptions section;
and
■ b. Revising the Related Controls
paragraph in the List of Items Controlled
section, to read as follows:
RS Column 1
6D002 ‘‘Software’’ ‘‘specially designed’’ for
the ‘‘use’’ of equipment controlled by
6A002.b, 6A008 or 6B008.
AT Column 1
*
List Based License Exceptions (See Part 740
for a description of all license
exceptions)
LVS: $500
GBS: N/A
CIV: N/A
List of Items Controlled
Related Controls: (1) See USML Category
XII(e) for read-out integrated circuits
‘‘subject to the ITAR.’’ (2) See ECCN 0A919
for foreign made military commodities that
VerDate Sep<11>2014
*
Related Controls: (1) See ECCN 0A919 for
foreign made military commodities that
incorporate cameras described in 6A993.a
that meet the criteria specified in Note 3.a
to 6A003.b.4.b (i.e., having a maximum
frame rate equal to or less than 9 Hz). (2)
Section 744.9 imposes license
requirements on cameras described in
6A993.a as a result of meeting the criteria
specified in Note 3.a to 6A003.b.4.b (i.e.,
having a maximum frame rate equal to or
less than 9 Hz) if being exported,
reexported, or transferred (in-country) for
use by a military end-user or for
incorporation into a commodity controlled
by ECCN 0A919.
■
License Requirements
Reason for Control: RS, AT
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*
*
6A990 Read-out integrated circuits, as
follows (see List of Items Controlled).
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*
*
*
*
*
*
34. In Supplement No. 1 to part 774,
Category 6, ECCN 6D003 is amended by:
■ a. Revising the TSR paragraph in the
List Based License Exceptions section;
and
■ b. Revising the Related Controls
paragraph in the List of Items Controlled
section, to read as follows:
■
6D003 Other ‘‘software’’ as follows (see List
of Items Controlled).
*
*
*
*
*
*
*
*
31. In Supplement No. 1 to part 774,
Category 6, ECCN 6A990 is revised to
read as follows:
*
*
List of Items Controlled
■
*
List Based License Exceptions (See Part 740
for a description of all license
exceptions)
■
6A611 Acoustic systems and equipment,
radar, and ‘‘parts,’’ ‘‘components,’’
‘‘accessories,’’ and ‘‘attachments’’
‘‘specially designed’’ therefor, ‘‘specially
designed’’ for a military application that
are not enumerated in any USML
category or other ECCN are controlled
by ECCN 3A611. Military fire control,
laser, imaging, and guidance and
control equipment that are not
enumerated in any USML category or
ECCN are controlled by ECCN 7A611.
*
Related Controls: (1) ‘‘Software’’ ‘‘specially
designed’’ for the ‘‘use’’ of ‘‘spacequalified’’ LIDAR ‘‘equipment’’ ‘‘specially
designed’’ for surveying or for
meteorological observation, released from
control under the note in 6A008.j, is
controlled in 6D991. (2) See also 6D102,
6D991, and 6D992.
6A993 Cameras, not controlled by 6A003
or 6A203, as follows (see List of Items
Controlled).
*
*
*
*
*
30. In Supplement No. 1 to part 774,
Category 6, ECCN 6A611 is revised to
read as follows:
List of Items Controlled
*
*
*
*
*
List Based License Exceptions (See Part 740
for a description of all license
exceptions)
*
*
*
*
*
TSR: Yes, except N/A for the following: (1)
Items controlled for MT reasons; (2)
‘‘Software’’ ‘‘specially designed’’ for the
‘‘use’’ of ‘‘space qualified’’ ‘‘laser’’ radar or
Light Detection and Ranging (LIDAR)
equipment defined in 6A008.j.1; or (3)
‘‘Software’’ ‘‘specially designed’’ for the
‘‘use’’ of commodities controlled by
6A002.b.
PO 00000
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Sfmt 4702
*
*
*
*
TSR: Yes, except for 6D003.c and exports or
reexports to destinations outside of those
countries listed in Country Group A:5 (See
Supplement No. 1 to part 740 of the EAR)
of ‘‘software’’ for items controlled by
6D003.a.
*
*
*
*
*
List of Items Controlled
*
*
*
*
*
Related Controls: See also 6D103, 6D991, and
6D993.
*
*
*
*
*
35. In Supplement No. 1 to part 774,
Category 6, ECCN 6D991 is revised to
read as follows:
■
6D991 ‘‘Software,’’ n.e.s., ‘‘specially
designed’’ for the ‘‘development’’,
‘‘production’’, or ‘‘use’’ of commodities
controlled by 6A002, 6A003, 6A990,
6A991, 6A996, 6A997, or 6A998.
License Requirements
Reason for Control: RS, AT
Control(s)
RS applies to ‘‘software’’ for
commodities controlled by
6A002, 6A003, 6A990, or
6A998.b.
RS applies to ‘‘software’’ for
commodities controlled by
6A998.c.
AT applies to entire entry, except ‘‘software’’ for commodities controlled by 6A991.
AT applies to ‘‘software’’ for
commodities controlled by
6A991.
Country
chart (see
Supp. No.
1 to Part
738)
RS Column 1
RS Column 2
AT Column
1
AT Column
2
List Based License Exceptions (See Part 740
for a description of all license
exceptions)
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described in USML Category XV are
subject to the ITAR under USML Category
XV(f). (2) Technical data directly related to
laser systems, infrared imaging systems,
and all other items described in USML
Category XII are subject to the ITAR under
USML Category XII(f). (3) See also 6E101,
6E201, and 6E991.
CIV: N/A
TSR: N/A
List of Items Controlled
Related Controls: (1) See ECCN 6D002 for
‘‘software’’ ‘‘specially designed’’ for the
‘‘use’’ of commodities controlled under
ECCN 6A002.b. (2) See ECCN 6D003.c for
‘‘software’’ ‘‘specially designed’’ for
cameras incorporating ‘‘focal plane arrays’’
specified by 6A002.a.3.f and ‘‘specially
designed’’ to remove a frame rate
restriction and allow the camera to exceed
the frame rate specified in 6A003.b.4 Note
3.a.
Related Definitions: N/A
Items:
The list of items controlled is contained in
the ECCN heading.
36. In Supplement No. 1 to part 774,
Category 6, ECCN 6E001 is amended by:
■ a. Revising the TSR paragraph in the
List Based License Exceptions section;
and
■ b. Revising the Related Controls
paragraph in the List of Items Controlled
section, to read as follows:
■
6E001 ‘‘Technology’’ according to the
General Technology Note for the
‘‘development’’ of equipment, materials
or ‘‘software’’ controlled by 6A (except
6A990, 6A991, 6A992, 6A994, 6A995,
6A996, 6A997, 6A998, or 6A999.c), 6B
(except 6B995), 6C (except 6C992 or
6C994), or 6D (except 6D991, 6D992, or
6D993).
*
*
*
*
*
List Based License Exceptions (See Part 740
for a description of all license
exceptions)
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*
*
*
*
*
TSR: Yes, except for the following: (1) Items
controlled for MT reasons; (2)
‘‘Technology’’ for commodities controlled
by 6A002, 6A003, 6A004.e or 6A008.j.1; (3)
‘‘Technology’’ for ‘‘software’’ ‘‘specially
designed’’ for ‘‘space qualified’’ ‘‘laser’’
radar or Light Detection and Ranging
(LIDAR) equipment defined in 6A008.j.1
and controlled by 6D001 or 6D002; or (4)
Exports or reexports to destinations outside
of those countries listed in Country Group
A:5 (See Supplement No. 1 to part 740 of
the EAR) of ‘‘technology’’ for the
‘‘development’’ of the following:
6A001.a.1.b, 6A001.a.1.e, 6A001.a.2.a.1,
6A001.a.2.a.2, 6A001.a.2.a.3,
6A001.a.2.a.5, 6A001.a.2.a.6, 6A001.a.2.b,
6A001.a.2.d, 6A001.a.2.e., 6A004.c,
6A004.d,, 6A006.a.2, 6A006.c.1, 6A006.d,
6A006.e, 6A008.d, 6A008.h, 6A008.k,
6B008, 6D003.a; (b) Equipment controlled
by 6A001.a.2.c or 6A001.a.2.f when
‘‘specially designed’’ for real time
applications; or (c) ‘‘Software’’ controlled
by 6D001 and ‘‘specially designed’’ for the
‘‘development’’ or ‘‘production’’ of
equipment controlled by 6B008, or
6D003.a.
*
*
*
*
*
List of Items Controlled
Related Controls: (1) Technical data directly
related to satellites and all other items
VerDate Sep<11>2014
16:51 Feb 18, 2016
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*
*
*
*
*
37. In Supplement No. 1 to part 774,
Category 6, ECCN 6E002 is amended by:
■ a. Revising the TSR paragraph in the
List Based License Exceptions section;
and
■ b. Revising the Related Controls
paragraph in the List of Items Controlled
section, to read as follows:
6E002 ‘‘Technology’’ according to the
General Technology Note for the
‘‘production’’ of equipment or materials
controlled by 6A (except 6A990, 6A991,
6A992, 6A994, 6A995, 6A996, 6A997,
6A998 or 6A999.c), 6B (except 6B995) or
6C (except 6C992 or 6C994).
*
*
*
*
List Based License Exceptions (See Part 740
for a description of all license
exceptions)
*
*
*
*
*
TSR: Yes, except for the following:
(1) Items controlled for MT reasons;
(2) ‘‘Technology’’ for commodities
controlled by 6A002, 6A003, 6A004.e,
6A008.j.1; or
(3) Exports or reexports to destinations
outside of those countries listed in Country
Group A:5 (See Supplement No. 1 to part 740
of the EAR) of ‘‘technology’’ for the
‘‘production’’ of the following: (a) Items
controlled by 6A001.a.1.b, 6A001.a.1.e,
6A001.a.2.a.1, 6A001.a.2.a.2, 6A001.a.2.a.3,
6A001.a.2.a.5, 6A001.a.2.a.6, 6A001.a.2.b,
6A004.c, 6A004.d, 6A006.a.2, 6A006.c.1,
6A006.d, 6A006.e, 6A008.d, 6A008.h,
6A008.k, 6B008; and (b) Items controlled by
6A001.a.2.c and 6A001.a.2.f when ‘‘specially
designed’’ for real time applications.
*
*
*
*
*
*
*
*
*
*
38. In Supplement No. 1 to part 774,
Category 6, ECCN 6E990 is amended by
revising the Related Controls paragraph
in the List of Items Controlled section to
read as follows:
■
6E990 ‘‘Technology’’ ‘‘required’’ for the
‘‘development’’ or ‘‘production’’ of
commodities controlled by ECCN 6A990.
PO 00000
*
Frm 00015
*
Fmt 4702
7A001 Accelerometers as follows (see List
of Items Controlled) and ‘‘specially
designed’’ ‘‘components’’ therefor.
*
*
*
*
*
List of Items Controlled
*
*
*
*
*
Related Controls: (1) See USML Category
XII(e) for accelerometers subject to the
ITAR. (2) See also ECCNs 7A101, 7A611,
and 7A994. For angular or rotational
accelerometers, see ECCN7A001.b. MT
controls do not apply to accelerometers
that are ‘‘specially designed’’ and
developed as Measurement While Drilling
(MWD) sensors for use in downhole well
service applications.
*
*
*
*
*
40. In Supplement No. 1 to part 774,
Category 7, ECCN 7A002 is amended by
revising the Related Controls paragraph
in the List of Items Controlled section,
to read as follows:
■
7A002 Gyros or angular rate sensors,
having any of the following (see List of
Items Controlled) and ‘‘specially
designed’’ ‘‘components’’ therefor.
*
*
*
*
*
List of Items Controlled
Related Controls: (1) See USML Category
XII(e) for gyros or angular rate sensors
subject to the ITAR. (2) See also ECCNs
7A102, 7A611, and 7A994. For angular or
rotational accelerometers, see ECCN
7A001.b.
*
*
*
*
41. In Supplement No. 1 to part 774,
Category 7, ECCN 7A003 is amended by
revising the Related Controls paragraph
in the List of Items Controlled section,
to read as follows:
■
Related Controls: (1) Technical data directly
related to satellites and all other items
described in USML Category XV are
subject to the ITAR under USML Category
XV(f). (2) Technical data directly related to
laser systems, infrared imaging systems,
and all other items described in USML
Category XII are subject to the ITAR under
USML Category XII(f). (3) See also 6E992.
*
*
*
*
*
39. In Supplement No. 1 to part 774,
Category 7, ECCN 7A001 is amended by
revising the Related Controls paragraph
in the List of Items Controlled section,
to read as follows:
*
List of Items Controlled
*
*
■
■
*
List of Items Controlled
Related Controls: Technical data directly
related to read-out integrated circuits
described in USML Category XII(e) are
subject to the ITAR under USML Category
XII(f).
*
Sfmt 4702
7A003 ‘Inertial measurement equipment or
systems,’ having any of the following
(see List of Items Controlled).
*
*
*
*
*
List of Items Controlled
Related Controls: See also ECCNs 7A103,
7A611, and 7A994. See USML Category
XII(d) for guidance or navigation systems
subject to the ITAR.
*
*
*
*
*
42. In Supplement No. 1 to part 774,
Category 7, amend ECCN 7A005 by
revising the Related Controls paragraph
in the List of Items Controlled section,
to read as follows:
■
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7A005 Global Navigation Satellite Systems
(GNSS) receiving equipment having any
of the following (see List of Items
Controlled) and ‘‘specially designed’’
‘‘components’’ therefor.
*
*
*
*
*
List of Items Controlled
Related Controls: (1) See also ECCNs 7A105
and 7A994. Typically commercially
available GNSS receivers do not employ
decryption or adaptive antennas and are
classified as 7A994. (2) See USML Category
XII(d) for GNSS receiving equipment
subject to the ITAR.
*
*
*
*
*
43. In Supplement No. 1 to part 774,
Category 7, ECCN 7A101 is amended by
revising the Related Controls paragraph
in the List of Items Controlled section,
to read as follows:
■
7A101 Accelerometers, other than those
controlled by 7A001 (see List of Items
Controlled), and ‘‘specially designed’’
‘‘parts’’ and ‘‘components’’ therefor.
*
*
*
*
*
List of Items Controlled
Related Controls: (1) See USML Category
XII(e) for accelerometers subject to the
ITAR. (2) See also ECCNs 7A001 and
7A611. (3) This entry does not control
accelerometers that are ‘‘specially
designed’’ and developed as MWD
(Measurement While Drilling) sensors for
use in downhole well service operations.
*
*
*
*
*
44. In Supplement No. 1 to part 774,
Category 7, ECCN 7A102 is amended by
revising the Related Controls paragraph
in the List of Items Controlled section,
to read as follows:
■
7A102 Gyros, other than those controlled
by 7A002 (see List of Items Controlled),
and ‘‘specially designed’’ ‘‘parts’’ and
‘‘components’’ therefor.
*
*
*
*
*
List of Items Controlled
Related Controls: (1) See USML Category
XII(e) for gyros or angular rate sensors
subject to the ITAR. (2) See also ECCNs
7A002, 7A611, and 7A994.
*
*
*
*
*
45. In Supplement No. 1 to part 774,
Category 7, ECCN 7A611 is revised to
read as follows:
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
■
7A611 Military fire control, laser, imaging,
and guidance and control equipment, as
follows (see List of Items Controlled).
License Requirements
Reason for Control: NS, RS, AT, UN
Control(s)
NS applies to entire
entry except
7A611.y.
VerDate Sep<11>2014
Country chart (see
Supp. No. 1 to Part
738)
NS Column 1
16:51 Feb 18, 2016
Jkt 238001
Control(s)
RS applies to entire
entry except
7A611.y.
AT applies to entire
entry.
UN applies to entire
entry except
7A611.y.
Country chart (see
Supp. No. 1 to Part
738)
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: $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 7A611.
List of Items Controlled
Related Controls: (1) Military fire control,
laser, imaging, and guidance and control
equipment that are enumerated in USML
Category XII, and technical data (including
software) directly related thereto, are
subject to the ITAR. (2) Navigation and
avionics equipment and systems, and
‘‘parts,’’ ‘‘components,’’ ‘‘accessories,’’ and
‘‘attachments’’ ‘‘specially designed’’
therefor, ‘‘specially designed’’ for a
military application that are not
enumerated in any USML category or
another ‘‘600 series’’ ECCN are controlled
by ECCN 3A611. (3) See Related Controls
in ECCNs 0A987, 2A984, 6A002, 6A003,
6A004, 6A005, 6A007, 6A008, 7A001,
7A002, 7A003, 7A005, 7A101, and 7A102.
(4) See ECCN 3A611 and USML Category
XI for controls on countermeasure
equipment. (5) See ECCN 0A919 for
foreign-made ‘‘military commodities’’ that
incorporate more than a de minimis
amount of U.S. origin ‘‘600 series’’
controlled content.
Related Definitions: N/A
Items:
a. Guidance, navigation, or control
systems, not elsewhere specified on the
USML, that are ‘‘specially designed’’ for a
defense article on the USML or for a 600
series item.
b. Inertial measurement units (IMUs), not
elsewhere specified on the USML, that are
‘‘specially designed’’ for a 600 series item.
c. Accelerometers, not elsewhere specified
on the USML, that are ‘‘specially designed’’
for a defense article on the USML or for a 600
series item.
d. Gyros or angular rate sensors, not
elsewhere specified on the USML, that are
‘‘specially designed’’ for a defense article on
the USML or for a 600 series item.
e. Gravity meters (gravimeters), not
elsewhere specified on the USML, that are
‘‘specially designed’’ for a defense article on
the USML or for a 600 series item.
f. to w. [RESERVED]
x. ‘‘Parts,’’ ‘‘components,’’ ‘‘accessories,’’
and ‘‘attachments’’ that are ‘‘specially
designed’’ for a commodity enumerated or
otherwise described in ECCN 7A611 (except
PO 00000
Frm 00016
Fmt 4702
Sfmt 4702
7A611.y) or a defense article enumerated or
otherwise described in Category XII and not
elsewhere specified on the USML, in
7A611.y, or 3A611.y.
y. Specific ‘‘parts,’’ ‘‘components,’’
‘‘accessories,’’ and ‘‘attachments’’ ‘‘specially
designed’’ for a commodity subject to control
in this ECCN or a defense article in Category
XII and not elsewhere specified on the USML
or in the CCL, as follows, and ‘‘parts,’’
‘‘components,’’ ‘‘accessories,’’ and
‘‘attachments’’ ‘‘specially designed’’ therefor:
y.1 [RESERVED]
46. In Supplement No. 1 to part 774,
Category 7, ECCN 7A994 is revised to
read as follows:
■
7A994 Other navigation direction finding
equipment, airborne communication
equipment, all aircraft inertial
navigation systems not controlled under
7A003 or 7A103, and other avionic
equipment, including ‘‘parts’’ and
‘‘components,’’ n.e.s.
License Requirements
Reason for Control: AT
Control(s)
AT applies to entire
entry.
Country chart (see
Supp. No. 1 to Part
738)
AT Column 1
License Requirement Notes:
(1) Typically commercially available GPS
do not employ decryption or adaptive
antenna and are classified as 7A994.
List Based License Exceptions
(See Part 740 for a description of all license
exceptions)
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Related Controls: See 7A005 and 7A105.
Related Definitions: N/A
Items: The list of items controlled is
contained in the ECCN heading.
*
*
*
*
*
47. In Supplement No. 1 to part 774,
Category 7, add a new ECCN 7B611
between ECCNs 7B103 and 7B994, to
read as follows:
■
7B611 Test, inspection, and production
commodities ‘‘specially designed’’ for
military fire control, laser, imaging, and
guidance and control equipment, as
follows (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.
E:\FR\FM\19FEP1.SGM
19FEP1
Country chart (see
Supp. No. 1 to Part
738)
NS Column 1
RS Column 1
AT Column 1
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Federal Register / Vol. 81, No. 33 / Friday, February 19, 2016 / Proposed Rules
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: $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 7B611.
List of Items Controlled
Related Controls: N/A
Related Definitions: N/A
Items:
a. Test, inspection, and production end
items and equipment ‘‘specially designed’’
for the ‘‘development,’’ ‘‘production,’’ repair,
overhaul, or refurbishing of commodities
controlled in ECCN 7A611 (except 7A611.y)
or commodities in USML Category XII that
are not enumerated in USML Category XII or
‘‘600 series’’ ECCN.
b. Environmental test facilities ‘‘specially
designed’’ for the certification, qualification,
or testing of commodities controlled in ECCN
7A611 (except 7A611.y) or guidance and
control equipment in USML Category XII that
are not enumerated in USML Category XII or
‘‘600 series’’ ECCN.
c. Field test equipment ‘‘specially
designed’’ to evaluate or calibrate the
operation of systems described in USML
Category XII(a), (b), or (c).
d. to w. [RESERVED]
x. ‘‘Parts,’’ ‘‘components,’’ ‘‘accessories,’’
and ‘‘attachments’’ that are ‘‘specially
designed’’ for a commodity listed in this
entry and that are not enumerated on the
USML or controlled by another ‘‘600 series’’
ECCN.
48. In Supplement No. 1 to part 774,
Category 7, add a new ECCN 7D611
between ECCNs 7D103 and 7D994, to
read as follows:
■
7D611 ‘‘Software’’ ‘‘specially designed’’ for
commodities controlled by 7A611 or
equipment controlled by 7B611, as
follows (see List of Items Controlled).
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 software in 7D611.
List of Items Controlled
Related Controls: ‘‘Software’’ directly related
to articles enumerated in USML Category
XII is subject of USML paragraph XII(f).
Related Definitions:
Items:
a. ‘‘Software’’ ‘‘specially designed’’ for the
‘‘development,’’ ‘‘production,’’ operation, or
maintenance of commodities controlled by
ECCNs 7A611 (except 7A611.y) or 7B611.
b. to x. [RESERVED]
y. Specific ‘‘software’’ ‘‘specially designed’’
for the ‘‘development,’’ ‘‘production,’’
operation, or maintenance of commodities
described in 7A611.y.
49. In Supplement No. 1 to part 774,
Category 7, add a new ECCN 7E611
between ECCNs 7E104 and 7E994, to
read as follows:
■
7E611 ‘‘Technology’’ ‘‘required’’ for the
‘‘development,’’ ‘‘production,’’
operation, installation, maintenance,
repair, overhaul or refurbishing of
commodities controlled by 7A611,
commodities controlled by 7B611, or
software controlled by 7D611, as follows
(see List of Items Controlled).
License Requirements
Reason for Control: NS, RS, AT, UN
Control(s)
NS applies to entire
entry except
7E611.y.
RS applies to ‘‘development’’ or ‘‘production’’ ‘‘technology’’ in 7E611.a.
License Requirements
Reason for Control: NS, RS, AT, UN
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
Control(s)
NS applies to entire
entry except
7D611.y.
RS applies to entire
entry except
7D611.y.
AT applies to entire
entry.
UN applies to entire
entry except
7D611.y.
VerDate Sep<11>2014
Country chart (see
Supp. No. 1 to Part
738)
NS Column 1
RS Column 1
RS applies to entire
entry except
7E611.y.
AT applies to entire
entry.
UN applies to entire
entry except
7E611.y.
Country chart (see
Supp. No. 1 to Part
738)
NS Column 1
A license is required
to export and reexport these items to
all countries, including Canada. A column specific to this
control does not appear on the Commerce Country
Chart. (See
§ 742.6(a)(8)).
RS Column 1
See § 746.1(b) for UN
controls
See § 746.1(b) for UN
controls
(See Part 740 for a description of all license
exceptions)
CIV: N/A
TSR: N/A
PO 00000
Frm 00017
Fmt 4702
50. In Supplement No. 1 to part 774,
Category 7, ECCN 7E994 is amended by
revising the Related Controls paragraph
in the List of Items Controlled section,
to read as follows:
■
7E994 ‘‘Technology,’’ n.e.s., for the
‘‘development,’’ ‘‘production’’, or ‘‘use’’
of navigation, airborne communication,
and other avionics equipment.
*
*
*
*
*
*
Sfmt 4702
*
*
*
*
Related Controls: N/A
*
*
*
*
*
51. In Supplement No. 1 to part 774,
Category 8, ECCN 8A002 is amended by
revising the Related Controls paragraph
in the List of Items Controlled section,
to read as follows:
■
8A002 Marine systems, equipment, ‘‘parts’’
and ‘‘components,’’ as follows (see List
of Items Controlled).
*
AT Column 1
List Based License Exceptions
Jkt 238001
List of Items Controlled
Related Controls: Technical data directly
related to articles enumerated in USML
Category XII are subject to the control of
USML Category XII(f).
Related Definitions: N/A
Items:
a. ‘‘Technology’’ ‘‘required’’ for the
‘‘development’’ or ‘‘production’’ of
commodities controlled by ECCNs 7A611.a–
.e.
b. ‘‘Technology’’ ‘‘required’’ for the
‘‘development’’ or ‘‘production’’ of
commodities or ‘‘software’’ controlled by
ECCNs 7A611 (except 7A611.a–.e or .y),
7B611, or 7D611.
c. ‘‘Technology’’ ‘‘required’’ for the
operation, installation, maintenance, repair,
overhaul, or refurbishing of commodities or
‘‘software’’ controlled by ECCNs 7A611
(except 7A611.y), 7B611, or 7D611 (except
7D611.y).
d. through x. [RESERVED]
y. Specific ‘‘technology’’ ‘‘required’’ for the
‘‘production,’’ ‘‘development,’’ operation,
installation, maintenance, repair, or overhaul
of commodities or software controlled by
ECCNs 7A611.y or 7D611.y.
List of Items Controlled
AT Column 1
16:51 Feb 18, 2016
Special Conditions for STA
STA: (1) Paragraph (c)(1) of License
Exception STA (§ 740.20(c)(1) of the EAR)
may not be used for ‘‘development’’ or
‘‘production’’ ‘‘technology’’ in 7E611.a. (2)
Paragraph (c)(2) of License Exception STA
(§ 740.20(c)(2) of the EAR) may not be used
for any technology in 7E611.
*
*
*
*
List of Items Controlled
*
*
*
*
*
Related Controls: (1) See also 8A992 and for
underwater communications systems, see
Category 5, Part I—Telecommunications.
(2) See also 8A992 for self-contained
underwater breathing apparatus that is not
controlled by 8A002 or released for control
by the 8A002.q Note. (3) For electronic
imaging systems ‘‘specially designed’’ or
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modified for underwater use incorporating
image intensifier tubes specified by
6A002.a.2.a or 6A002.a.2.b, see 6A003.b.3.
(4) For electronic imaging systems
‘‘specially designed’’ or modified for
underwater use incorporating ‘‘focal plane
arrays’’ specified by 6A002.a.3.g, see
6A003.b.4.c. (5) Section 744.9 imposes a
license requirement on commodities
described in 8A002.d.1.c or .d.2 if being
exported, reexported, or transferred (incountry) for use by a military end-user or
for incorporation into an item controlled
by ECCN 0A919.
*
*
*
*
*
52. In Supplement No. 1 to part 774,
Category 9, ECCN 9A991 is amended by:
■ a. Removing the License Requirement
Notes paragraph in the License
Requirements section, and
■ b. Revising the Related Controls
paragraph in the List of Items Controlled
section to read as follows:
■
9A991 ‘‘Aircraft’’, n.e.s., and gas turbine
engines not controlled by 9A001 or
9A101 and ‘‘parts’’ and ‘‘components,’’
n.e.s. (see List of Items Controlled).
*
*
*
*
*
List of Items Controlled
*
*
*
*
*
Related Controls: N/A
*
*
*
*
*
Dated: February 11, 2016.
Kevin J. Wolf,
Assistant Secretary of Commerce for Export
Administration.
[FR Doc. 2016–03182 Filed 2–18–16; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF STATE
22 CFR Part 121
[Public Notice: 9445]
RIN 1400–AD32
Amendment to the International Traffic
in Arms Regulations: Revision of U.S.
Munitions List Category XII
Department of State.
Proposed rule.
AGENCY:
ACTION:
As part of the President’s
Export Control Reform effort, the
Department of State proposes to amend
the International Traffic in Arms
Regulations (ITAR) to revise Category
XII (fire control, laser, imaging, and
guidance and control equipment) of the
U.S. Munitions List (USML) to describe
more precisely the articles warranting
control on the USML. The Department
also proposes to amend USML
Categories VIII, XIII, and XV to reflect
that items now described in those
Categories will be in the revised
Category XII.
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
SUMMARY:
VerDate Sep<11>2014
16:51 Feb 18, 2016
Jkt 238001
The Department of State will
accept comments on this proposed rule
until April 4, 2016.
ADDRESSES: Interested parties may
submit comments within 45 days of the
date of publication by one of the
following methods:
• Email: DDTCPublicComments@
state.gov with the subject line, ‘‘ITAR
Amendment—Category XII Second
Proposed.’’
• Internet: At www.regulations.gov,
search for this notice by using this rule’s
RIN (1400–AD32).
Comments received after that date
will be considered if feasible, but
consideration cannot be assured. Those
submitting comments should not
include any personally identifying
information they do not desire to be
made public or any information for
which a claim of confidentiality is
asserted. All comments and 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: Regulatory Change, USML
Category XII.
SUPPLEMENTARY INFORMATION: The
Directorate of Defense Trade Controls
(DDTC), U.S. Department of State,
administers the International Traffic in
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
DATES:
PO 00000
Frm 00018
Fmt 4702
Sfmt 4702
jurisdiction of any other set of
regulations are subject to the EAR.
The revisions contained in this rule
are part of the Department of State’s
retrospective plan under E.O. 13563.
All references to the USML in this
rule are to the list of defense articles
that are controlled for the purpose of
export or temporary import pursuant to
the ITAR, and not to the defense articles
on the USML that are controlled by the
Bureau of Alcohol, Tobacco, Firearms
and Explosives (ATF) for the purpose of
permanent import under its regulations
(see 27 CFR part 447). Pursuant to
§ 38(a)(1) of the Arms Export Control
Act (AECA), all defense articles
controlled for export or import are part
of the USML under the AECA. For the
sake of clarity, the list of defense articles
controlled by ATF for the purpose of
permanent import is the United States
Munitions Import List (USMIL). The
transfer of defense articles from the
ITAR’s USML to the EAR’s CCL for the
purpose of export control does not affect
the list of defense articles controlled on
the USMIL under the AECA for the
purpose of permanent import.
Revision of Category XII
The revision of USML Category XII
was first published as a proposed rule
(RIN 1400–AD32) on May 5, 2015, for
public comment (see 80 FR 25821) (first
proposed rule). The comment period
ended July 6, 2015. One hundred twenty
parties submitted public comments,
which were reviewed and considered by
the Department and other agencies.
The majority of the public comments
stated that the proposed controls in
USML Category XII included items that
are in commercial and civil
applications, identifying items that
would largely be controlled under
paragraphs (b), (c), (d), and (e), and
requested that the Department limit the
USML controls for most paragraphs to
items specially designed for the
military. The comments varied in level
of detail and specific paragraphs
addressed, if any, but the general tenor
of the public comments was consistent.
These comments led the Department to
reevaluate USML Category XII in its
entirety and to draft this second
proposed rule to allow for public
feedback on new proposed changes.
Given the thorough redrafting of USML
Category XII, the Department does not
address each public comment in detail.
This second proposed rule revises
USML Category XII, covering fire
control, range finder, optical and
guidance and control equipment, to
advance the national security objectives
of the President’s Export Control Reform
initiative and to more accurately
E:\FR\FM\19FEP1.SGM
19FEP1
Agencies
[Federal Register Volume 81, Number 33 (Friday, February 19, 2016)]
[Proposed Rules]
[Pages 8421-8438]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03182]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 81, No. 33 / Friday, February 19, 2016 /
Proposed Rules
[[Page 8421]]
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 734, 738, 740, 742, 743, 744, 772, and 774
[Docket No. 140221170-5728-02]
RIN 0694-AF75
Revisions to the Export Administration Regulations (EAR): Control
of Fire Control, Laser, Imaging, and Guidance and Control Equipment the
President Determines No Longer Warrant Control Under the United States
Munitions List (USML)
AGENCY: Bureau of Industry and Security, Department of Commerce.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule describes how articles the President
determines no longer warrant control under Category XII (Fire Control,
Laser, Imaging, and Guidance and Control Equipment) of the United
States Munitions List (USML) of the International Traffic in Arms
Regulations (ITAR) would be controlled under the Commerce Control List
(CCL) of the Export Administration Regulations (EAR) by amending Export
Control Classification Number (ECCN) 7A611 and creating new ``600
series'' ECCNs 7B611, 7D611, and 7E611. In addition, for certain dual-
use infrared detection items, this proposed rule would expand controls
for certain software and technology, eliminate the use of some license
exceptions, revise licensing policy, and expand license requirements
for certain transactions involving military end users or foreign
military commodities. This proposed rule would also harmonize
provisions within the EAR by revising controls related to certain
quartz rate sensors and uncooled thermal imaging cameras.
DATES: Comments must be received by April 4, 2016.
ADDRESSES: You may submit comments by any of the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Search for this rule using its regulations.gov docket number: BIS-2015-
0016
By email directly to publiccomments@bis.doc.gov. Include
RIN 0694-AF75 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-AF75.
FOR FURTHER INFORMATION CONTACT: For questions regarding the ECCNs
included in this rule, contact Dennis Krepp, Office of National
Security and Technology Transfer Controls, Bureau of Industry and
Security, Telephone: 202-482-1309, Email: Dennis.Krepp@bis.doc.gov. For
general questions regarding the proposed regulatory changes, contact
Steven Emme, Office of the Assistant Secretary for Export
Administration, Telephone: 202-482-5491, Email:
Steven.Emme@bis.doc.gov.
SUPPLEMENTARY INFORMATION:
Background
This proposed rule is part of the Administration's Export Control
Reform Initiative (Initiative), the objective of which is to protect
and enhance U.S. national security interests. The Initiative began in
August 2009 when President Obama directed the Administration to conduct
a broad-based review of the U.S. export control system to identify
additional ways to enhance national security. The Department of State's
International Traffic in Arms Regulations (ITAR) and its U.S. Munitions
List (USML) are being amended to control only the items that provide
the United States with a critical military or intelligence advantage or
otherwise warrant such controls, and the Export Administration
Regulations (EAR) are being amended to control military items that do
not warrant USML controls. These changes will enhance national security
by (i) improving interoperability of U.S. military forces with allied
countries, (ii) strengthening the U.S. industrial base by, among other
things, reducing incentives for foreign manufacturers to design out and
avoid U.S.-origin content and services, and (iii) allowing export
control officials to focus government resources on transactions that
pose greater concern.
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).
Following the structure set forth in the final rule entitled
``Revisions to the Export Administration Regulations: Initial
Implementation of Export Control Reform'' (78 FR 22660, April 16, 2013)
(``April 16 (initial implementation) rule''), BIS published a proposed
rule entitled ``Revisions to the Export Administration Regulations
(EAR): Control of Fire Control, Range Finder, Optical, and Guidance and
Control Equipment the President Determines No Longer Warrant Control
Under the United States Munitions List (USML)'' (80 FR 25798, May 5,
2015) (``May 5 proposed rule''). That proposed rule was published in
conjunction with a proposed rule published by the Department of State's
Directorate of Defense Trade Controls (DDTC) to propose controls for
the ITAR's USML Category XII.
The proposed changes described in this proposed rule and the
corresponding changes in the State Department's proposed amendment to
USML Category XII are based, in part, on a review of public comments
submitted in response to the May 5 proposed rule. The review of the
comments on USML Category XII by the Departments of Commerce, Defense,
Homeland Security, and State (hereinafter, ``the agencies'' or the
``interagency review'') focused on identifying those types of articles
that provide the United States with a critical military or intelligence
capability and that are not currently in normal commercial use. It is
the intent of the above agencies that the proposed USML Category XII
and corresponding 600 series ECCNs not control items in normal
commercial use. Such items should be controlled under existing dual-use
controls on the CCL, consistent with the Wassenaar Arrangement List of
Dual-Use Goods and Technologies. However, if the proposed entries in
[[Page 8422]]
USML Category XII or corresponding 600 series ECCNs include items in
normal commercial use, then the public is encouraged to submit comments
identifying such entries and examples of commercial items captured by
those entries.
To address concerns regarding the sensitivity of certain dual-use
items related to infrared detection capability, this proposed rule
would add restrictions to the export or reexport of several sensors and
cameras, and related software and technology, that provide important
night vision capability for military use but are also widely used in
civil products and applications. These proposed restrictions include
amending the availability of certain license exceptions, including TSR,
APR, and STA; expanding the license requirement in Sec. 744.9 and
scope of ECCN 0A919; adding new ECCN 0E987 for the development or
production of commodities controlled by 0A987 that incorporate a focal
plane array or image intensifier tube; expanding software controls
related to items in ECCNs 6A002 and 6A003 by revising ECCNs 6D002,
6D003, and 6D991; and expanding the scope of read-out integrated
circuits controlled under ECCN 6A990 and related software and
technology in ECCNs 6D991 and 6E990.
This proposed rule would also revise controls pertaining to cameras
classified under ECCN 6A993.a as a result of meeting the criteria to
Note 3.a to ECCN 6A003.b.4.b (i.e., having a maximum frame rate equal
to or less than 9 Hz). The interagency review found that these 9 Hz
cameras have been incorporated into foreign military commodities. As a
result, this proposed rule would amend Sec. 744.9 to include such 9 Hz
cameras and subject them to the license requirements described in that
section. Additionally, this proposed rule would create new ECCN 0E987
to control technology required for the development or production of
ECCN 0A987 commodities that incorporate a focal plane array or image
intensifier tube.
As a result of the interagency review, BIS believes that a limited
number of military items, primarily less-sensitive parts and
components, should move from USML Category XII to the 600 series
entries proposed in this rule. This proposed rule would create (or
revise in the case of 7A611) the following ``600 series'' ECCNs: 7A611,
military fire control, laser, imaging, and guidance and control
commodities; 7B611, test, inspection, and production commodities
``specially designed'' for military fire control, laser, imaging, and
guidance and control commodities; 7D611, software ``specially
designed'' for the ``development,'' ``production,'' operation, or
maintenance of commodities controlled by 7A611 or 7B611; and 7E611,
technology ``required'' for the ``development,'' ``production,''
operation, installation, maintenance, repair, overhaul or refurbishing
of commodities controlled by 7A611 or 7B611, or software controlled by
7D611.
In this proposed rule, all references to the USML are to the list
of defense articles that are controlled for the purpose of export or
temporary import pursuant to the ITAR, and not to the defense articles
on the USML that are controlled by the Bureau of Alcohol, Tobacco,
Firearms and Explosives (ATF) for the purpose of permanent import under
its regulations (see 27 CFR part 447). Pursuant to Sec. 38(a)(1) of
the AECA, all defense articles controlled for export or import are part
of the USML under the AECA. For the sake of clarity, the list of
defense articles controlled by ATF for the purpose of permanent import
is the United States Munitions Import List (USMIL). The transfer of
defense articles from the ITAR's USML to the EAR's CCL for the purpose
of export controls does not affect the list of defense articles
controlled on the USMIL under the AECA for the purpose of permanent
import.
BIS intends this proposed rule to be evaluated on its own merits,
and the public need not review the May 5 proposed rule to understand
this action. Once the public comments on this rule are reviewed and
responded to, BIS intends to publish a final rule.
Public Comments in Response to the May 5 Proposed Rule
BIS received 60 public comments in response to the May 5 proposed
rule. Many of the comments focused on aspects of both the BIS proposed
rule and the DDTC proposed rule. Generally, many commenters found that
when the May 5 proposed rules used an unambiguous, bright line to
delineate jurisdiction, the line was drawn in the wrong place. For many
entries on the proposed USML Category XII, commenters found that no
military specification or parameters were used to identify items
warranting ITAR control. In addition, many commenters asserted that the
proposed USML Category XII would capture items currently subject to the
EAR, including some items that are currently EAR99. For other entries,
commenters said the proposed rules added difficulty in determining
jurisdiction. For instance, commenters indicated that new terms
introduced to the ITAR in the proposal, such as ``core'' and
``permanently encapsulated sensor assembly,'' added new layers of
complexity and confusion to the current controls. In addition, many
commenters expressed concerns regarding new proposed controls in the
EAR for certain infrared detection items and for the inclusion of
certain items in the proposed 600 series entries.
Because of these concerns, one of the most common themes throughout
the comments was that the May 5 proposed rules would lead to or further
a competitive disadvantage for U.S. companies and research
institutions. Commenters stated that many of the items proposed for
control under either the proposed USML Category XII or 600 series
entries were in normal commercial use and available from non-U.S.
sources. To address these concerns, some commenters proposed additional
parameters for various entries or recommended the use of ``specially
designed'' in place of attempts to identify positive control
parameters.
Changes From the May 5 Proposed Rule
To address concerns raised in the public comments and to further
harmonize and simplify the EAR, this proposed rule makes a number of
changes from the May 5 proposed rule. First, this rule does not propose
to amend part 742 to create a new worldwide Regional Stability (RS)
control for dual-use items but would maintain a new worldwide RS
control for certain military technology in ECCN 7E611.a. All other
items described in this proposed rule that are or would be subject to
RS controls would generally be subject to an RS Column 1 control, which
imposes a license requirement for all destinations except Canada. For
items the agencies believe warrant strict control, this proposed rule
amends the availability of license exceptions or licensing policy, as
described further below.
This proposed rule also does not include controls proposed in the
May 5 proposed rule for certain maintenance, repair, or overhaul
software or technology related to certain dual-use infrared detection
commodities. Such controls, which were proposed in new ECCNs 6D994 and
6E994, would exceed those of the Wassenaar Arrangement, and based on
public comments, would likely have resulted in extensive license
requirements for purely commercial activities, such as civil automotive
repair.
Due to the elimination of the term ``permanent encapsulated sensor
assembly'' as a parameter for determining jurisdiction for focal plane
arrays in DDTC's proposed rule, this
[[Page 8423]]
proposed rule also does not include the definition for that term in
part 772, as proposed in the May 5 proposed rule. This rule also
removes references to that term that were proposed to be included in
ECCN 6A002.
With respect to the structure of the 600 series, this proposed rule
would create only one set of 600 series ECCNs corresponding to USML
Category XII rather than two sets. The May 5 proposed rule included a
6x615 series for military fire control, range finder, and optical items
and a 7x611 series for military guidance and control items. In order to
simplify controls, this proposed rule would only establish one set of
600 series ECCNs, the 7x611 series, which would correspond to all items
proposed for control under USML Category XII.
Additional changes made from the May 5 proposed rule are discussed
more fully below.
Proposed Revisions To Further Harmonize and Simplify the EAR
This rule proposes new revisions to the EAR that were not included
in the May 5 proposed rule. In order to make the EAR more consistent
and easier to apply, this proposed rule would revise various parts of
the EAR related to certain QRS-11 sensors and to license requirements
related to uncooled thermal imaging cameras.
Proposed Removal of Controls Specific to QRS-11 Sensors
In 2007, DDTC and BIS published final rules (72 FR 31452 (June 7,
2007); 72 FR 62768 (Nov. 7, 2007)) that moved the licensing
jurisdiction for certain QRS-11 quartz rate sensors from the ITAR to
the EAR when such sensors were integrated into and included as an
integral part of a Commercial Standby Instrument System (or aircraft
incorporating such system) or exported solely for integration into such
a system. The BIS final rule added certain QRS-11 sensors to ECCN 7A994
and included an RS Column 1 control. In addition, the BIS final rule
amended Sec. 734.4 to add certain QRS-11 sensors to the list of items
for which there is no de minimis level for foreign-made items
incorporating such content.
While predating Export Control Reform (ECR), the movement of
certain QRS-11 sensors from the ITAR to the EAR reflects many of the
rationales for ECR. The sensors, while originally designed for military
application, began to be used in civil aircraft prior to the 2007 final
rules. Thus, due to application of the see-through rule, State
Department authorization would have been required for numerous exports
and reexports involving civil aircraft.
With the advent of ECR, BIS believes that special controls are no
longer warranted for certain QRS-11 sensors. Consequently, this
proposed rule would remove the RS Column 1 control from ECCN 7A994,
along with references to certain QRS-11 sensors in the License
Requirements Notes and Related Controls. To the extent that such
sensors are not described on the USML (and the agencies do not believe
that any of the sensors are described on the revised USML), one would
follow the Order of Review in Supplement No. 4 to part 774 to determine
whether the sensors may be captured under a 600 series ECCN or under a
dual-use ECCN.
This proposed rule would also remove and reserve Sec. 734.4(a)(3),
which currently provides that there is no de minimis level for certain
foreign-made items incorporating certain QRS-11 sensors subject to the
EAR. Depending on the classification of the applicable QRS-11 sensor,
one would follow the applicable de minimis requirements for 600 series
items or for non-600 series items. In addition, this proposed rule
would remove the restriction on the availability of license exceptions
for certain QRS-11 sensors under Sec. 740.2(a)(9), and this proposed
rule would remove references to QRS-11 sensors classified under ECCN
7A994 in ECCNs 7E994 (Related Controls) and 9A991 (License Requirement
Notes and Related Controls). Finally, this proposed rule would also
amend Note 1 in the definition of ``specially designed'' to remove the
reference to ECCN 7A994. With the proposed removal of the RS Column 1
control, 7A994 would only be subject to the Anti-Terrorism reason for
control and would not need to be included in Note 1.
Proposed Amendments to License Requirements and License Exception
Eligibility for Certain Uncooled Thermal Imaging Cameras Controlled in
ECCN 6A003
On May 22, 2009, BIS published a final rule (74 FR 23941) (``May
2009 final rule'') that revised license requirements and license
exception eligibility for certain uncooled thermal imaging cameras in
ECCN 6A003. That rule revised ECCN 6A003 and Sec. 742.6 to make the RS
Column 1 reason for control inapplicable for certain transactions for a
group of countries (now Country Group A:1) if certain uncooled thermal
imaging cameras are fully packaged for use as consumer ready civil
products or if such cameras with not more than 111,000 elements are to
be embedded in civil products by authorized companies.
While BIS believes that this structure has been useful to address
foreign availability concerns regarding uncooled thermal imaging
cameras, the different authorization structure established by the May
2009 final rule added complexity to the regulations. Further, BIS
believes that with the implementation of License Exception STA, the
authorizations described in Sec. 742.6(a)(2)(iii) and (v) are no
longer necessary for exports or reexports of certain uncooled thermal
imaging cameras in 6A003. Thus, this proposed rule would remove
Sec. Sec. 742.6(a)(2) and (a)(4)(ii). Also, this proposed rule would
remove the current distinction in ECCN 6A003 for RS Column 1 and Column
2 controls and subject all items in 6A003 to the RS Column 1 reason for
control. BIS acknowledges that this proposal would require a license
for certain transactions that currently would not require one, but BIS
believes that the use of STA will alleviate concerns regarding this
change. BIS welcomes comments on this proposal.
Due to the proposed changes to Sec. 742.6 and ECCN 6A003, this
proposed rule would also amend corresponding footnotes (current
footnotes 2 and 4) used in the Commerce Country Chart (Supplement No. 1
to part 738). In addition, this proposed rule would amend License
Exception APR to remove references in Sec. 740.16(b) to the text
proposed for removal in Sec. 742.6. This proposed rule would also
amend Sec. 742.4 to remove similar references to text in Sec. 742.6
proposed for deletion. Finally, this proposed rule would remove and
reserve Sec. 743.3, which describes the current reporting requirement
created by the May 2009 final rule.
Proposed Revisions To Increase Controls for Infrared Detection Items
Subject to the EAR
The May 5 proposed rule included a number of proposed revisions to
the EAR to address concerns regarding the sensitivity of certain items
providing infrared detection capability. This proposed rule includes
many of the same proposals, but with some differences noted below. This
proposed rule would revise certain controls and policies for infrared
detection items and foreign-made military commodities incorporating
infrared detection items by amending Sec. Sec. 734.4, 740.2, 740.16,
740.20, 742.6, and 744.9 of the EAR.
[[Page 8424]]
Revisions to Section 734.4 for 0A919 Foreign Military Commodities
Section 734.4(a)(5) of the EAR currently provides that there is no
de minimis level for foreign military commodities, as described in ECCN
0A919, that incorporate certain infrared detection items. Since this
proposed rule would expand the scope of items controlled under ECCN
0A919, as described further below, Sec. 734.4(a)(5) would also be
revised to reflect changes to that ECCN. However, this proposed rule
would amend the de minimis treatment for 0A919 items incorporating
infrared detection content to make them consistent with 0A919 items
incorporating 600 series or 9x515 content. Thus, under this proposed
rule, there would be no de minimis level for foreign-made military
commodities described in ECCN 0A919, which incorporate commodities
classified under ECCNs 6A002, 6A003, 6A990, or 6A993.a (that meet the
criteria of Note 3.a to ECCN 6A003.b.4.b), if the 0A919 commodities are
destined for a country in Country Group D:5. When destined for a
country outside of Country Group D:5, such 0A919 commodities would be
subject to the 25% de minimis threshold.
Addition to Section 740.2
Section 740.2 sets forth restrictions on all license exceptions,
and the May 5 proposed rule included a restriction in Sec. 740.2(a)(7)
for certain 6E002 production technology for certain infrared detection
components in 6A002.a.2 or a.3 as well as for 6E990 technology.
The interagency review re-examined those technologies that
warranted additional restrictions under Sec. 740.2. As a result of
that review, this proposed rule would increase the scope of technology
subject to the restriction by including certain development technology
in ECCN 6E001. However, this proposed rule would also narrow the type
of technology subject to the restriction to focus on technology related
to the most sensitive dual-use focal plane arrays and image intensifier
tubes in 6A002 to ensure that the restriction is not overly broad in
covering technology related to all dual-use components. Thus, under
this proposed rule, Sec. 740.2(a)(7) would apply to 6E001 or 6E002
technology required for the development or production of the following
focal plane arrays: photon detector, microbolometer detector,
pyroelectric, or multispectral detector infrared focal plane arrays
(IRFPAs), described in ECCN 6A002, having a peak response within the
wavelength range exceeding 900 nm but not exceeding 30,000 nm,
excluding lead sulfide or lead selenide IRFPAs having a peak response
within the wavelength range exceeding 1,000 nm but not exceeding 5,000
nm and not exceeding 16 detector elements. Moreover, Sec. 740.2(a)(7)
would apply to 6E001 or 6E002 technology required for the development
or production of third generation image intensifier tubes or image
intensifier tubes greater than third generation (e.g., EBAPS). Such
6E001 and 6E002 technology would, however, remain eligible for Sec.
740.11(b)(2) of License Exception GOV.
Restrictions on the Use of License Exception APR
License Exception APR currently authorizes specified reexports of
items subject to the EAR by certain countries to specified destinations
without individual licenses from BIS. The May 5 proposed rule would
increase the number of items ineligible for paragraph (a) of APR by
including all items in ECCNs 6A002, 6A003, and 6A990 in the
restrictions found in paragraph (a)(2). This proposed rule maintains
that proposed change. Similarly, this proposed rule would also add all
items in those ECCNs to the scope of items subject to the restriction
in paragraph (b)(2) on the use of paragraph (b) of APR. Also, this
proposed rule would further revise paragraph (b) of APR, as previously
described, with respect to certain uncooled thermal imaging cameras.
With the proposed removal of paragraph (b)(3), this proposed rule also
revises paragraph (b) by consolidating the list of items ineligible to
be reexported under paragraph (b)(1) in one location in paragraph
(b)(2).
Restrictions on the Use of License Exception STA
The EAR currently restricts the use of License Exception STA for
specific commodities controlled by ECCNs 6A002, as well as related
technology controlled by 6E001 or 6E002, for export or reexport to
countries listed in Sec. 740.20(c)(2). The May 5 proposed rule would
amend Sec. 740.20(b)(2) to remove License Exception STA availability
for additional items related to infrared detection, and this proposed
rule largely adopts that proposal. This rule maintains those proposed
changes and would make License Exception STA unavailable for the
following items: Newly-proposed technology controlled under ECCN 0E987;
all commodities controlled under ECCN 6A002 or 6A990; software
controlled under ECCN 6D002 for the ``use'' of commodities controlled
under ECCN 6A002.b; software controlled under ECCN 6D003.c; software
controlled under ECCN 6D991 for the ``development,'' ``production,'' or
``use'' of commodities controlled under ECCNs 6A002, 6A003, or 6A990;
technology controlled under ECCN 6E001 for the ``development'' of
commodities controlled under ECCNs 6A002 or 6A003; technology
controlled under ECCN 6E002 for the ``production'' of commodities
controlled under ECCNs 6A002 or 6A003; and technology controlled under
ECCN 6E990.
Revisions to Licensing Policy
As previously mentioned, this proposed rule does not include the
worldwide RS control that was proposed in the May 5 proposed rule.
Thus, this proposed rule also does not include the corresponding
licensing policy that was proposed in the May 5 proposed rule for Sec.
742.6(b)(1). However, this proposed rule would revise current Sec.
742.6(b)(1) to include new licensing policy for 6E001 or 6E002
technology for the development or production of focal plane arrays or
image intensifier tubes described in 6A002, or for 6E990 technology.
Such technology would be subject to a presumption of denial for license
applications for exports or reexports to countries in Country Group
D:5. BIS is proposing this change due to the sensitivity of such
technology.
Revisions to End-Use/End-User Controls
Section 744.9 currently requires a license for the export or
reexport to any destination other than Canada for cameras controlled by
ECCNs 6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c when the exporter knows or
is informed that the item is intended to be used by a ``military end-
user'' or to be incorporated into a ``military commodity'' controlled
by ECCN 0A919, in addition to other applicable license requirements in
the EAR.
This proposed rule, like the May 5 proposed rule, would revise
Sec. 744.9 to require a license for exports, reexports, or transfers
(in-country) of commodities controlled by ECCN 0A987 (incorporating
items in ECCNs 6A002 and 6A003, or certain cameras in 6A993.a), ECCN
6A002, ECCN 6A003, ECCN 6A990, ECCN 6A993.a commodities meeting the
criteria of Note 3.a to ECCN 6A003.b.4.b, ECCN 8A002.d.1.c, and ECCN
8A002.d.2, when the exporter, reexporter, or transferor knows or is
informed that the item is intended to be used by a ``military end-
user'' or to be incorporated into a ``military commodity'' controlled
by ECCN
[[Page 8425]]
0A919. Commodities controlled by ECCN 6A993.a as a result of meeting
the criteria of Note 3.a to ECCN 6A003.b.4.b are cameras with a maximum
frame rate equal to or less than 9 Hz. Although these 9 Hz cameras are
subject only to Anti-Terrorism controls, the agencies determined that 9
Hz cameras are used in foreign-made military commodities and thus
merited inclusion in Sec. 744.9.
Based on public comments to the May 5 proposed rule, this proposed
rule does not include the license requirement for such items if at the
time of the export, reexport, or transfer, the person is unable to
determine whether the item will be or is intended to be used by a
military end user or incorporated into a 0A919 military commodity.
Increasing the scope of Sec. 744.9 to include both the unable to
determine standard and the license requirement for 9 Hz cameras (which
are often low-cost consumer goods sold through distributors or
storefronts) would have triggered extensive license requirements due to
the inability to determine whether the items would be purchased by
military end users. To address concerns with that standard, while still
making 9 Hz cameras subject to Sec. 744.9 license requirements, this
proposed rule omits the unable to determine standard and would maintain
the existing knowledge standard in Sec. 744.9.
Revisions to ECCN 0A919
ECCN 0A919 currently controls ``military commodities'' produced and
located outside the United States that are not subject to the ITAR, and
incorporate one or more cameras controlled under ECCNs 6A003.b.3,
6A003.b.4.b, or 6A003.b.4.c. In addition, ECCN 0A919 controls such
``military commodities'' if they incorporate more than a de minimis
amount of U.S.-origin 600 series content or are the direct products of
U.S.-origin 600 series technology or software.
To control the reexport of such military commodities that
incorporate a wider group of items on the CCL, this proposed rule would
revise ECCN 0A919 to control military commodities produced outside the
United States that are not subject to the ITAR, and have any of the
following characteristics: (i) Incorporate one or more commodities
classified under ECCNs 6A002, 6A003, or 6A990; (ii) incorporate one or
more commodities controlled under ECCN 6A993.a as a result of meeting
the criteria specified in Note 3.a to ECCN 6A003.b.4.b (i.e., having a
maximum frame rate equal to or less than 9 Hz); (iii) incorporate more
than a de minimis amount of U.S.-origin ``600 series'' controlled
content; or (iv) are direct products of U.S.-origin ``600 series''
technology or software. This proposed change to ECCN 0A919 mirrors the
proposal in the May 5 proposed rule.
Establishment of ECCN 0E987
As with the May 5 proposed rule, this proposed rule would create a
new ECCN for technology required for the ``development'' or
``production'' of commodities controlled by ECCN 0A987, if such
commodities incorporate a focal plane array or image intensifier tube.
ECCN 0E987 would be subject to RS Column 1 and Anti-Terrorism Column 1
controls. In addition, items controlled by 0E987 would not be eligible
for License Exception STA.
Revisions to ECCN 6A002
ECCN 6A002 currently controls specified optical sensors or
equipment and components therefor. The Department of State's proposed
rule for Category XII, which is being published concurrently with this
rule, proposes the use of ``specially designed'' for certain focal
plane arrays, image intensifier tubes, and other related items that
would be subject to the ITAR. Because of that change, this proposed
rule does not include references in 6A002 to ``permanent encapsulated
sensor assembly'' or use luminous sensitivity to describe those image
intensifier tubes subject to the EAR and controlled under 6A002.
As noted above, this proposed rule does not include the worldwide
RS control that was proposed in the May 5 proposed rule. This proposed
rule maintains the existing reasons for control and would revise the
Related Controls paragraph to include references to controls in USML
Category XII, as well as proposed controls in ECCN 0A919 and Sec.
744.9.
Revisions to ECCN 6A003
ECCN 6A003 currently controls specified cameras, systems or
equipment and components therefor. As with the May 5 proposed rule,
this proposed rule would add a reference to USML Category XII(c) in the
Related Controls paragraph of ECCN 6A003. Also, this rule revises the
Related Controls references to ECCN 0A919 and Sec. 744.9 to reflect
the expansion of the applicability of those provisions to all of ECCN
6A003.
Due to proposed changes described previously regarding license
requirements for certain uncooled thermal imaging cameras in ECCN
6A003, this proposed rule would also revise the applicability of the
regional stability control to the ECCN by eliminating the RS Column 2
control and applying the RS Column 1 control to the entire ECCN. This
proposed change would result in requiring a license for certain items
in 6A003 that currently may not require a license when exported or
reexported to certain destinations. While License Exception STA would
be available for many of these transactions, BIS encourages
organizations that may be affected by this change to submit public
comments, including any quantitative data, on the impact of this
proposal.
Revisions to ECCN 6A990
Under the Department of State's proposed rule to revise USML
Category XII, certain read-out integrated circuits (ROICs) would be
controlled under XII(e). ROICs that are ``specially designed'' for
focal plane arrays controlled under ECCN 6A002.a.3 would be classified
under ECCN 6A990 and subject to the RS Column 1 reason for control.
Unlike the May 5 proposed rule, this proposed rule would also add a
note to clarify that ROICs ``specially designed'' for civil automotive
applications would not be controlled under ECCN 6A990. BIS is proposing
this note in order to address technological and market developments,
and this note parallels a similar carve out in ECCN 6A003.
ROICs classified under 6A990 would not be eligible for License
Exception STA and would be subject to the limitations on the use of
License Exception APR in Sec. 740.16(a)(2) and (b)(2). This rule also
proposes to insert references to Category XII(e), ECCN 0A919, and Sec.
744.9 under the Related Controls paragraph. Also, this rule would allow
for the use of License Exception LVS for this ECCN with a $500 value
limit. This change would ensure that controls on ROICs subject to the
EAR are not more restrictive than controls for ROICs proposed to be
controlled in USML Category XII(e), which would be eligible for the
exemption in Sec. 123.16(b)(2) of the ITAR.
Revisions to ECCN 6A993
As previously mentioned, Sec. 744.9 is proposed to be revised to
require a license for 9 Hz cameras if exported to a ``military end
user'' or if incorporated into a ``military commodity.'' To remind
readers of the applicability of Sec. 744.9 and ECCN 0A919 to 9 Hz
cameras, this proposed rule would provide a reference to those
provisions under the Related Controls paragraph of 6A993.
Revisions to ECCNs 6D002, 6D003, and 6D991
The Wassenaar Arrangement's Lists of Dual-Use Goods and
Technologies
[[Page 8426]]
impose limited controls on software related to commodities controlled
under ECCNs 6A002 and 6A003. As a result, the CCL currently has the
following multilateral and unilateral software controls related to such
items: ECCN 6D002 (software ``specially designed'' for the ``use'' of
commodities controlled under ECCN 6A002.b), ECCN 6D003.c (software
designed or modified for cameras incorporating ``focal plane arrays''
specified by ECCN 6A002.a.3.f and designed or modified to remove a
frame rate restriction and allow the camera to exceed the frame rate
specified in ECCN 6A003.b.4 Note 3.a), and ECCN 6D991 (software
specially designed for the ``use'' of commodities controlled under ECCN
6A002.a.1.d).
To address concerns regarding the lack of comprehensive software
controls related to commodities controlled under ECCNs 6A002 and 6A003,
this proposed rule would consolidate existing, unilateral software
controls and would expand them to revise ECCN 6D991 to also control
software, not elsewhere specified, that is ``specially designed'' for
the ``development,'' ``production,'' or ``use'' of commodities
controlled by ECCNs 6A002 or 6A003. Under this proposed rule, such
software would be subject to the RS Column 1 reason for control. Also,
this proposed rule would remove eligibility to use License Exception
TSR for the software described above in ECCNs 6D002 and 6D003.c.
To prevent confusion over multiple ECCNs potentially controlling
the same software, this proposed rule would add language to the Related
Controls paragraphs of ECCN 6D991 to confirm that software currently
controlled under ECCNs 6D002 and 6D003.c would remain controlled under
those provisions. To reflect this understanding, this proposed rule
would also revise the Related Controls paragraphs of ECCNs 6D002 and
6D003 to provide references to ECCNs 6D991.
Revisions to ECCNs 6E001 and 6E002
ECCNs 6E001 and 6E002 currently control ``development'' and
``production'' technology, respectively, related to multiple ECCNs in
Category 6, including items related to infrared detection in ECCNs
6A002 and 6A003. This proposed rule would remove eligibility for
License Exception TSR for all 6E001 or 6E002 technology related to
commodities controlled under 6A002 or 6A003, and this proposed rule
would add guidance to the Related Controls paragraphs in ECCNs 6E001
and 6E002 to provide clarity on technology controls related to
commodities subject to the ITAR.
Proposed Establishment of ``600 Series'' for Military Fire Control,
Laser, Imaging, and Guidance and Control Items Under ECCNs 7A611,
7B611, 7D611, and 7E611
This proposed rule would establish a ``600 series'' by revising
ECCN 7A611 and adding new ECCNs 7B611, 7D611, and 7E611 for military
fire control, laser, imaging, and guidance and control commodities,
software, and technology. Categories 6 and 7 of the CCL currently
control certain laser, imaging, and guidance and control items. In
order to ease understanding and use of this ``600 series,'' BIS is
proposing to consolidate such controls under Category 7 rather than
both Categories 6 and 7. However, should readers look for such 600
series items in Category 6, this proposed rule would amend ECCN 6A611
to refer readers to Category 7 to locate the appropriate controls. ECCN
6A611 was added to the CCL by a previously published final rule
entitled Revisions to the Export Administration Regulations (EAR):
Control of Military Electronic Equipment and Other Items the President
Determines No Longer Warrant Control Under the United States Munitions
List (USML), 79 FR 37551 (July 1, 2014). Also, to assist readers in
locating controls for navigation and avionics items ``specially
designed'' for a military application, this proposed rule would move
the current heading of ECCN 7A611 into the Related Controls paragraph
of proposed ECCN 7A611.
Under this proposed ``600 series,'' ECCN 7A611 would control
military fire control, laser, imaging, and guidance and control
equipment that would be removed from USML Category XII and that are not
covered by an existing ECCN subject to controls for reasons other than
Anti-Terrorism (AT) reasons. Due to the increased use of ``specially
designed'' in the proposed USML Category XII and to ensure that no
current defense articles are inadvertently decontrolled, ECCN 7A611
would use ``specially designed'' as the primary control parameter in
paragraphs .a through .e, which would control certain guidance,
navigation, or control systems; inertial measurement units;
accelerometers; gyros or angular rate sensors; or gravity meters
(gravimeters). Paragraph .x would control ``parts,'' ``components,''
``accessories,'' and ``attachments'' that are ``specially designed''
for a commodity controlled by ECCN 7A611 (except 7A611.y) or a defense
article in USML Category XII and not controlled elsewhere on the USML
or in 7A611.y or 3A611.y. All items controlled under 7A611 (excluding
7A611.y) would be controlled for NS, RS, AT, and UN reasons. Paragraph
.y would control specific ``parts,'' ``components,'' ``accessories,''
and ``attachments'' ``specially designed'' for a commodity subject to
control in ECCN 7A611, or a defense article in USML Category XII and
not elsewhere specified on the USML or in the CCL, and ``parts,''
``components,'' ``accessories,'' and ``attachments'' ``specially
designed'' therefor. No items would be listed in 7A611.y under this
proposed rule, but should any items be added, they would be subject to
AT controls only.
This proposed rule does not include any of the items enumerated
under ECCN 6A615 in the May 5 proposed rule in ECCN 7A611. Due to the
increased use of ``specially designed'' in USML Category XII in the
State Department's corresponding proposed rule, BIS believes that many
of the items previously proposed for control under ECCN 6A615 would be
controlled under USML Category XII. In addition, after reviewing public
comments, BIS believes that many of the items proposed for control
under ECCN 6A615.c in the May 5 proposed rule would be adequately
captured as dual-use items under ECCN 6C004.
New ECCN 7B611 would impose controls on test, inspection, and
production equipment and related commodities ``specially designed'' for
military fire control, laser, imaging, and guidance and control
equipment. Paragraph .a would control such equipment ``specially
designed'' for the ``development,'' ``production,'' repair, overhaul,
or refurbishing of items controlled in ECCN 7A611 (except 7A611.y) or
commodities in USML Category XII that are not enumerated in USML
Category XII or controlled by a ``600 series'' ECCN. Paragraph .b would
control environmental test facilities ``specially designed'' for
certification, qualification, or testing of commodities controlled in
ECCN 7A611 (except 7A611.y) or commodities in USML Category XII that
are not enumerated in USML Category XII or a ``600 series'' ECCN.
Paragraph .c would control field test equipment ``specially designed''
to evaluate or calibrate the operation of systems described in USML
Category XII(a), (b), or (c). Paragraphs .d through .w are reserved.
Paragraph .x would control parts, components, accessories, and
attachments that are ``specially designed'' for such test, inspection
and production equipment that are not enumerated on the USML or
controlled by another ``600 series'' ECCN. Items in ECCN 7B611 would be
controlled for NS, RS, AT, and UN reasons.
[[Page 8427]]
New ECCN 7D611 would control ``software'' ``specially designed''
for the ``development,'' ``production,'' operation, or maintenance of
commodities controlled by 7A611 or 7B611. Such software would be
controlled for NS, RS, AT, and UN reasons. Any software added to
7D611.y would be controlled for AT reasons only.
New ECCN 7E611 would control ``technology'' ``required'' for the
``development,'' ``production,'' operation, installation, maintenance,
repair, overhaul, or refurbishing of items controlled by 7A611, 7B611,
or 7D611. Such technology would be controlled for NS, RS, AT, and UN
reasons. Any technology added to 7E611.y would be controlled for AT
reasons only. As described in proposed Sec. 742.6(a)(8), the RS
control would impose a license requirement for exports and reexports of
technology in 7E611.a to all destinations, including Canada (all other
technology in 7E611, other than 7E611.y, would be subject to an RS
Column 1 control). BIS believes that this worldwide RS control would
only affect technical data currently controlled in USML Category XII(f)
that is not eligible for the Canadian exemption under Supplement No. 1
to part 126 of the ITAR. As described in Sec. 742.6(b)(1), 7E611.a
technology would be subject to the same licensing policy as other 600
series items. In addition, License Exception STA would not be available
for 7E611.a technology but would be available for technology in 7E611.b
or .c for exports or reexports to Country Group A:5.
Proposed Revisions to Other Existing ECCNs
The May 5 proposed rule included revisions to many existing dual-
use ECCNs to provide cross references to controls for similar items
subject to the ITAR under the proposed revisions to USML Category XII.
This proposed rule includes revisions to the same ECCNs but updates
many of the cross references to account for changes since the State
Department's May 5 proposal.
Revisions to ECCN 0A987
ECCN 0A987 currently controls specified optical sighting devices,
and this proposed rule would revise ECCN 0A987.f to specify that the
entry controls laser aiming devices or laser illuminators ``specially
designed'' for use on firearms, and having an operational wavelength
exceeding 400 nm but not exceeding 710 nm. A proposed note to ECCN
0A987.f would further specify that the entry does not control laser
boresighting devices that must be placed in the bore or chamber to
provide a reference for aligning the firearms sights. This proposed
rule would also provide jurisdictional guidance in the Related Controls
paragraph to more clearly delineate jurisdiction between USML Category
XII and ECCN 0A987.
Revisions to ECCN 2A984
ECCN 2A984 currently controls concealed object detection equipment
that operates in the frequency range from 30 GHz to 3000 GHz and has a
spatial resolution of 0.5 milliradians up to and including 1
milliradian at a standoff distance of 100 meters. Under the Department
of State's proposed revisions to USML Category XII, certain terahertz
imaging systems would be enumerated under USML Category XII(c).
Consequently, this proposed rule would add a reference to Category
XII(c) in the Related Controls paragraph of ECCN 2A984.
Revisions to ECCN 6A004
ECCN 6A004 currently controls optical equipment and components,
including gimbals meeting a number of parameters, including slew,
bandwidth, angular pointing error, diameter, and angular acceleration.
The Department of State proposes to control certain gimbals under
Category XII(e). To aid in properly determining jurisdiction and
classification of gimbals, this proposed rule would amend the Related
Controls paragraph of ECCN 6A004 to reference gimbals controlled under
USML Category XII(e).
Revisions to ECCN 6A005
ECCN 6A005 currently controls specified lasers, components and
optical equipment. The Department of State's corresponding proposed
rule would control certain laser systems and lasers under USML Category
XII(b) and (e), respectively. To aid in properly determining
jurisdiction and classification, this proposed rule would revise the
Related Controls paragraph of ECCN 6A005 to refer readers back to USML
Category XII(b) and (e) for laser systems or lasers subject to the
ITAR. Additionally, this proposed rule would add a reference in the
Related Controls paragraph to USML Category XVIII for certain laser-
based directed energy weapon items.
Revisions to ECCNs 6A007 and 6A107
ECCNs 6A007 and 6A107 currently control certain gravity meters
(gravimeters) and gravity gradiometers. Under the State Department's
proposed rule, certain gravity meters and gravity gradiometers subject
to the ITAR would be controlled under USML Category XII(d).
Consequently, this proposed rule would add references to the Related
Controls paragraphs of ECCNs 6A007 and 6A107 to refer readers to that
paragraph in Category XII. This proposed rule also adds a reference to
ECCN 7A611 in the Related Controls paragraphs of those ECCNs.
Revisions to ECCN 6A008
ECCN 6A008 currently controls radar systems, equipment, and
assemblies, including certain laser detection and ranging (LADAR) and
light detection and ranging (LIDAR) equipment under ECCN 6A008.j. The
Department of State's proposed rule would control certain LIDAR, LADAR,
and range-gated systems in USML Category XII(b). Consequently, this
proposed rule would amend the Related Controls paragraph of ECCN 6A008
to add references to those provisions of Category XII.
Revisions to ECCNs 7A001 and 7A101
ECCNs 7A001 and 7A101 control certain accelerometers. The
Department of State's proposed rule would control certain
accelerometers subject to the ITAR under USML Category XII(e).
Therefore, this proposed rule would amend the Related Controls
paragraphs of ECCNs 7A001 and 7A101 to add references to USML Category
XII(d). This proposed rule also adds references to ECCN 7A611 in the
Related Controls paragraphs of those ECCNs.
Revisions to ECCNs 7A002 and 7A102
ECCNs 7A002 and 7A102 control certain gyros or angular rate
sensors. Under the State Department's proposed rule, certain gyros or
angular rate sensors would be subject to the ITAR under USML Category
XII(e). This proposed rule would amend the Related Controls paragraphs
of ECCNs 7A002 and 7A102 to add references to USML Category XII(e).
This proposed rule also adds references to ECCN 7A611. For the Related
Controls paragraph in ECCN 7A102, this proposed rule would also add
references to ECCNs 7A002 and 7A994.
Revisions to ECCN 7A003
ECCN 7A003 controls inertial measurement equipment or systems.
Under the State Department's proposed rule, certain guidance or
navigation systems would be subject to the ITAR under USML Category
XII(d). This proposed rule would amend the Related Controls paragraph
of ECCN 7A003 to add a reference to that USML entry. Also, this
proposed rule would add a reference to ECCN 7A611.
[[Page 8428]]
Revisions to ECCN 7A005
ECCN 7A005 currently controls specified Global Navigation Satellite
Systems (GNSS) receiving equipment. This proposed rule would amend the
Related Controls section of ECCN 7A005 to use ``GNSS'' in place of
``GPS'' and to provide a reference to GNSS receiving equipment subject
to the ITAR under USML Category XII.
Revisions to ECCN 8A002
To reflect the expansion of the scope of Sec. 744.9 to apply to
8A002.d.1.c and .d.2 items, this proposed rule would add an additional
sentence regarding Sec. 744.9 to the Related Controls paragraph of
8A002.
Effects of This Proposed Rule
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 the April 16 (initial implementation) rule, there is no
de minimis eligibility for ``600 series'' items destined for countries
subject to a U.S. arms embargo, but there is a 25% de minimis
percentage for ``600 series'' items destined for all countries not
subject to U.S. arms embargoes. The fire control, laser, imaging, and
guidance and control items that would be subject to the EAR as a result
of this proposed rule would become eligible for de minimis treatment,
so long as they are not destined for a country subject to a U.S. arms
embargo.
Use of License Exceptions
Unless subject to the restrictions on the use of STA in Sec.
740.20(b)(2), many of the fire control, laser, imaging, and guidance
and control items described in this proposed rule would become eligible
for several license exceptions, including STA, which would be available
for exports to certain government agencies of NATO and other multi-
regime allies. The exchange of information and statements required
under STA is substantially less burdensome than the license application
requirements currently required under the ITAR. Some items covered by
this rule also would be eligible for the following license exceptions:
LVS (limited value shipments), up to $1500, and RPL (servicing and
parts replacement).
Alignment With the Wassenaar Arrangement Munitions List (WAML)
The Administration has stated since the beginning of the Export
Control Reform Initiative that the reforms will be consistent with U.S.
obligations to the multilateral export control regimes. Accordingly,
the Administration will, in this proposed rule, exercise its national
discretion to implement, clarify, and, to the extent feasible, align
its controls with those of the regimes. USML Category XII encompasses
multiple WAML categories, including ML 5 (e.g., fire control and range-
finding systems), ML 11 (e.g., ``guidance and navigation equipment''),
and ML 15 (e.g., imaging equipment). For simplicity, this proposed rule
uses one of these categories--ML 11 (``electronic equipment specially
designed for military use,'' including ``guidance and navigation
equipment'')--to add items moving from USML Category XII to the new 600
series ECCNs ending in ``11.''
Request for Comments
BIS seeks comments on this proposed rule. BIS will consider all
comments received on or before April 4, 2016. All comments must be in
writing and submitted via one or more of the methods listed under the
ADDRESSES caption to this notice. All comments (including any personal
identifiable information or information for which a claim of
confidentially is asserted either in those comments or their
transmittal emails) will be available for public inspection and
copying. Parties who wish to comment anonymously may do so by
submitting their comments via www.regulations.gov, leaving the fields
for information that would identify the commenter blank, and including
no identifying information in the comment itself.
Export Administration Act
Although the Export Administration Act expired on August 20, 2001,
the President, through Executive Order 13222 of August 17, 2001, 3 CFR,
2001 Comp., p. 783 (2002), as amended by Executive Order 13637 of March
8, 2013, 78 FR 16129 (March 13, 2013) and as extended by the Notice of
August 7, 2015, 80 FR 48233 (August 11, 2015), 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 two approved
collections: Simplified Network Application Processing + System
(control number 0694-0088), which includes, among other things, license
applications, and License Exceptions and Exclusions (0694-0137).
As stated in the proposed rule published on July 15, 2011 (76 FR
41958) (``July 15 proposed rule''), BIS initially believed that the
combined effect of all rules to be published adding items to the EAR
that will be removed from the ITAR as part of the administration's
Export Control Reform Initiative would increase the number of license
applications to be submitted by approximately 16,000 annually. As the
review of the USML has progressed, the interagency group has gained
more specific information about the number of items that will come
under BIS jurisdiction and whether those items would be eligible for
export under license exceptions. As of June 21, 2012, BIS revised that
estimate to an increase in license applications of 30,000 annually,
resulting in an increase in burden hours of 8,500 (30,000 transactions
at 17 minutes each) under control number 0694-0088. BIS continues to
believe that its revised estimate is accurate.
Some items formerly on the USML would become eligible for License
[[Page 8429]]
Exception STA under this rule. As stated in the July 15 proposed rule,
BIS believes that the increased use of License Exception STA resulting
from 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 would be more than offset
by a reduction in burden hours associated with approved collections
related to the ITAR. This proposed rule addresses controls on fire
control, laser, imaging, and guidance and control items. With few
exceptions, most exports of such items, even when destined to NATO
member states and other close allies, require State Department
authorization. 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 require State Department authorizations. Under
the EAR, as proposed, such technology that would be subject to the EAR
would become eligible for export to NATO member states and other close
allies under License Exception STA unless otherwise specifically
excluded. Use of License Exception STA imposes a paperwork and
compliance burden because, for example, exporters must furnish
information about the item being exported to the consignee and obtain
from the consignee an acknowledgement and commitment to comply with the
EAR. However, the Administration believes that complying with the
requirements of STA is likely less burdensome than applying for
licenses. For example, under License Exception STA, a single consignee
statement can apply to an unlimited number of products, need not have
an expiration date, and need not be submitted to the government in
advance for approval. Suppliers with regular customers can tailor a
single statement and assurance to match their business relationship
rather than applying repeatedly for licenses with every purchase order
to supply reliable customers in countries that are close allies or
members of export control regimes or both.
Control number 0694-0137 also includes thermal imaging camera
reporting under Sec. 743.3. This proposed rule would remove the
reporting requirement in Sec. 743.3. Thus, BIS estimates this
elimination would reduce the total annual burden hours in control
number 0694-0137 by 60 hours annually (60 reports at 1 hour each).
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 a regulatory
flexibility analysis of any rule subject to the notice and comment
rulemaking requirements under the Administrative Procedure Act (5
U.S.C. 553) or any other statute, unless the agency certifies that the
rule will not have a significant economic impact on a substantial
number of small entities. Under section 605(b) of the RFA, however, if
the head of an agency (or his or her designee) certifies that a rule
will not have a significant impact on a substantial number of small
entities, the statute does not require the agency to prepare a
regulatory flexibility analysis. Pursuant to section 605(b), the Chief
Counsel for Regulation, Department of Commerce, submitted a memorandum
to the Chief Counsel for Advocacy, Small Business Administration,
certifying that the May 5 proposed rule would not have a significant
impact on a substantial number of small entities. The rationale for
that certification was set forth in the preamble to that proposed rule.
Although BIS received no comments on that rationale, and has
accordingly made no changes to the proposed rule based on the RFA
certification, BIS has determined that, in the interest of openness and
transparency, it will briefly restate the rationale behind the
certification here.
This proposed rule is part of the Administration's Export Control
Reform Initiative, which seeks to revise the USML to a positive list--
one that does not use generic, catch-all controls for items listed--and
to move some items that the President has determined no longer merit
control under the ITAR to control under the CCL.
Although BIS does not collect data on the size of entities that
apply for and are issued export licenses, and is therefore unable to
estimate the exact number of small entities--as defined by the Small
Business Administration's regulations implementing the RFA--BIS
acknowledges that some small entities may be affected by this proposed
rule.
The main effects on small entities resulting from this rule will be
in application times, costs, and delays in receiving licenses to export
goods subject to the CCL. However, while small entities may experience
some costs and time delays for exports due to the license requirements
of the CCL, these costs and delays will likely be significantly less
than they were for items previously subject to the USML. BIS believes
that in fact this rule will result in significantly reduced
administrative costs and delays for exports of items that will, upon
this rule's implementation, be subject to the EAR rather than the ITAR.
Currently, USML applicants must pay to use the USML licensing procedure
even if they never actually are authorized to export. Registration fees
for manufacturers and exporters of articles on the USML start at $2,250
per year, increase to $2,750 for organizations applying for one to ten
licenses per year and further increases to $2,750 plus $250 per license
application (subject to a maximum of three percent of total application
value) for those who need to apply for more than ten licenses per year.
By contrast, BIS is statutorily prohibited from imposing licensing
fees. In addition, exporters and reexporters of goods that would become
subject to the EAR under this rule would need fewer licenses because
their transactions would become eligible for license exceptions that
were not available under the ITAR. Additionally, the ITAR controls
parts and components even when they are incorporated--in any amount--
into a foreign-made product. That limitation on the use of U.S.-made
goods subject to the ITAR discouraged foreign manufacturers from
importing U.S. goods. However, the EAR has a de minimis exception for
U.S.-manufactured goods that are incorporated into foreign-made
products. This exception may benefit small entities by encouraging
foreign producers to use more U.S.-made items in their goods.
Even where an exporter or reexporter would need to obtain a license
under the EAR, that process is both cheaper and the process is more
flexible than obtaining a license under the ITAR. For example, unlike
the ITAR, the EAR does not require license applicants to provide BIS
with a purchase order with the application, meaning that small (or any)
entities can enter into negotiations or contracts for the sale of goods
without having to caveat any sale presentations with a reference to the
need to obtain a license under the ITAR before shipment can occur.
Second, the EAR allows license applicants to obtain licenses to cover
all expected exports or reexports to a particular consignee over the
life of a license, rather than having to obtain a new license for every
transaction.
In short, BIS expects that the changes to the EAR proposed in this
rule will have a positive effect on all affected
[[Page 8430]]
entities, including small entities. While BIS acknowledges that this
rule may have some cost impacts to small (and other) entities, those
costs are more than offset by the benefits to the entities from the
licensing procedures under the EAR, which are much less costly and less
time consuming than the procedures under the ITAR. Accordingly, the
Chief Counsel for Regulation for the Department of Commerce has
certified that this rule, if implemented, will not have a significant
economic impact on a substantial number of small entities. Accordingly,
an initial regulatory flexibility analysis is not required, and none
has been prepared.
List of Subjects
15 CFR Part 734
Administrative practice and procedure, Exports, Inventions and
patents, Research science and technology.
15 CFR Part 738
Exports.
15 CFR Part 740
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR Part 742
Exports, Terrorism.
15 CFR Part 743
Administrative practice and procedure, Reporting and recordkeeping
requirements.
15 CFR Part 744
Exports, Reporting and recordkeeping requirements, Terrorism.
15 CFR Part 772
Exports.
15 CFR Part 774
Exports, Reporting and recordkeeping requirements.
For the reasons stated in the preamble, the Export Administration
Regulations (15 CFR parts 730-774) are proposed to be amended as
follows:
PART 734--[AMENDED]
0
1. The authority citation for 15 CFR part 734 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13020, 61
FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 61 FR 58767, 3 CFR,
1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p.
783; E.O. 13637 of March 8, 2013, 78 FR 16129 (March 13, 2013);
Notice of August 7, 2015, 80 FR 48233 (August 11, 2015); Notice of
November 12, 2015, 80 FR 70667 (November 13, 2015).
0
2. Section 734.4 is amended by:
0
a. Removing and reserving paragraph (a)(3);
0
b. Removing the Note to paragraph (a)(3); and
0
c. Revising paragraph (a)(5) to read as follows:
Sec. 734.4 De minimis U.S. content.
(a) * * *
(5) There is no de minimis level for foreign-made ``military
commodities'' incorporating one or more of the commodities described in
ECCN 0A919.a.1 when destined for a country listed in Country Group D:5
of Supplement No. 1 to part 740 of the EAR.
* * * * *
PART 738--[AMENDED]
0
3. The authority citation for 15 CFR part 738 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, 2015, 80 FR 48233 (August 11, 2015).
0
4. In Supplement No. 1 to part 738, The Commerce Country Chart, is
amended by:
0
a. Removing references to footnote number 2 in the rows for Albania,
Cyprus, Malta, and South Africa;
0
b. Removing references to footnote number 4 in the rows for Austria;
Cyprus; Finland; Ireland; Korea, South; Malta; South Africa; Sweden;
and Switzerland; and
0
c. Removing and reserving footnotes 2 and 4 to the table.
PART 740--[AMENDED]
0
5. The authority citation for 15 CFR part 740 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 7201 et seq.; 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, 2015, 80 FR 48233 (August 11, 2015).
0
6. Section 740.2 is amended by:
0
a. Removing and reserving paragraph (a)(9), and
0
b. Revising paragraph (a)(7) to read as follows:
Sec. 740.2 Restrictions on all License Exceptions.
(a) * * *
(7) With the exception of License Exception GOV (Sec.
740.11(b)(2)), license exceptions are not available for the following
6E001 or 6E002 technology:
(i) Technology required for the ``development'' or ``production''
of photon detector, microbolometer detector, pyroelectric, or
multispectral detector infrared focal plane arrays (IRFPAs), described
in ECCN 6A002, having a peak response within the wavelength range
exceeding 900 nm but not exceeding 30,000 nm, excluding lead sulfide or
lead selenide IRFPAs having a peak response within the wavelength range
exceeding 1,000 nm but not exceeding 5,000 nm and not exceeding 16
detector elements; or
(ii) Technology required for the ``development'' or ``production''
of third generation or greater (e.g., EBAPS) image intensifier tubes
described in ECCN 6A002.
* * * * *
0
7. Section 740.16 is amended by:
0
a. Revising paragraphs (a)(2), (b)(1), and (b)(2), and
0
b. Removing and reserving (b)(3), to read as follows:
Sec. 740.16 Additional permissive reexports (APR).
(a) * * *
(2) The commodities being reexported are not controlled for NP, CB,
MT, SI or CC reasons and are not military commodities described in ECCN
0A919; commodities described in 3A001.b.2 or b.3 (except those that are
being reexported for use in civil telecommunications applications); or
commodities described in ECCNs 6A002, 6A003, or 6A990; and
* * * * *
(b) * * *
(1) Eligible commodities may be reexported to and among
destinations in Country Group A:1 and Hong Kong for use or consumption
within a destination in Country Group A:1 (see Supplement No. 1 to part
740) or Hong Kong, or for reexport from such country in accordance with
other provisions of the EAR.
(2) Commodities not eligible for reexport under paragraph (b)(1)
are:
(i) Commodities controlled for nuclear nonproliferation or missile
technology reasons;
(ii) Commodities in 3A001.b.2 or b.3 (except those that are being
reexported for use in civil telecommunications applications);
(iii) ``Military commodities'' described in ECCN 0A919; or
(iv) Commodities described in ECCNs 6A002, 6A003, or 6A990, or
commodities described in ECCN 0A987 incorporating an image intensifier
tube.
[[Page 8431]]
(3) [RESERVED]
* * * * *
0
8. Section 740.20 is amended by revising paragraphs (b)(2)(ii) and
(b)(2)(x), to read as follows:
Sec. 740.20 License Exception Strategic Trade Authorization (STA).
* * * * *
(b) * * *
(2) * * *
(ii) License Exception STA may not be used for any item controlled
under ECCNs 0A981, 0A982, 0A983, 0A985, 0E982, or 0E987.
* * * * *
(x) License Exception STA may not be used for items controlled by
ECCNs 6A002; 6A990; 6D002 (software specially designed for the ``use''
of commodities controlled under 6A002.b); 6D003.c; 6D991 (software
``specially designed'' for the ``development,'' ``production,'' or
``use'' of commodities controlled under 6A002, 6A003, or 6A990); 6E001
(``technology'' for the ``development'' of commodities controlled under
ECCNs 6A002 or 6A003); 6E002 ``technology'' (for the ``production'' of
commodities controlled under ECCNs 6A002 or 6A003); or 6E990.
* * * * *
PART 742--[AMENDED]
0
9. The authority citation for 15 CFR part 742 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; Sec. 1503, Pub. L. 108-11, 117 Stat. 559; E.O. 12058,
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3
CFR, 1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp.,
p. 950; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Presidential
Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003;
Notice of August 7, 2015, 80 FR 48233 (August 11, 2015); Notice of
November 12, 2015, 80 FR 70667 (November 13, 2015).
0
10. Section 742.4 is amended by revising paragraph (a) to read as
follows:
Sec. 742.4 National security.
(a) License requirements. It is the policy of the United States to
restrict the export and reexport of items that would make a significant
contribution to the military potential of any other country or
combination of countries that would prove detrimental to the national
security of the United States. Accordingly, a license is required for
exports and reexports to all destinations, except Canada, for all items
in ECCNs on the CCL that include NS Column 1 in the Country Chart
column of the ``License Requirements'' section. A license is required
to all destinations except those in Country Group A:1 (see Supplement
No. 1 to part 740), for all items in ECCNs on the CCL that include NS
column 2 in the Commerce Country Chart column of the ``License
Requirements'' section. The purpose of the controls is to ensure that
these items do not make a contribution to the military potential of
countries in Country Group D:1 (see Supplement No. 1 to part 740 of the
EAR) that would prove detrimental to the national security of the
United States. License Exception GBS is available for the export and
reexport of certain national security controlled items to Country Group
B (see Sec. 740.4 and Supplement No. 1 to part 740 of the EAR).
* * * * *
0
11. Section 742.6 is amended by:
0
a. Removing and reserving paragraphs (a)(2) and (a)(4)(ii);
0
b. Revising the last sentence of paragraph (a)(1);
0
c. Adding paragraph (a)(8); and
0
d. Revising paragraph (b)(1), to read as follows:
Sec. 742.6 Regional stability.
(a) * * *
(1) * * * Transactions described in paragraph (a)(3) of this
section are subject to the RS Column 1 license requirements set forth
in that paragraph rather than the license requirements set forth in
this paragraph (a)(1).
* * * * *
(8) Special worldwide RS license requirement for ECCN 7E611.a. A
license is required to export or reexport items described in ECCN
7E611.a to all destinations, including Canada.
* * * * *
(b) * * *
(1) Licensing policy for RS Column 1 items and ECCN 7E611.a.
(i) 9x515 and ``600 series'' ECCNs. Applications for exports and
reexports of 9x515 and ``600 series'' items will be reviewed on a case-
by-case basis to determine whether the transaction is contrary to the
national security or foreign policy interests of the United States,
including the foreign policy interest of promoting the observance of
human rights throughout the world. Other applications for exports and
reexports described in paragraph (a)(1), (6), (7), or (8) of this
section will be reviewed on a case-by-case basis to determine whether
the export or reexport could contribute directly or indirectly to any
country's military capabilities in a manner that would alter or
destabilize a region's military balance contrary to the foreign policy
interests of the United States. Applications for reexports of items
described in paragraph (a)(3) of this section will be reviewed applying
the policies for similar commodities that are subject to the ITAR.
Applications for export or reexport of items classified under any 9x515
or ``600 series'' ECCN requiring a license in accordance with paragraph
(a)(1) or (8) of this section will also be reviewed consistent with
United States arms embargo policies in Sec. 126.1 of the ITAR if
destined to a country set forth in Country Group D:5 in Supplement No.
1 to part 740 of the EAR. Applications for export or reexport of
``parts,'' ``components,'' ``accessories,'' ``attachments,''
``software,'' or ``technology'' ``specially designed'' or otherwise
required for the F-14 aircraft will generally be denied. When destined
to the People's Republic of China or a country listed in Country Group
E:1 in Supplement No. 1 to Part 740 of the EAR, items classified under
any 9x515 ECCN will be subject to a policy of denial.
(ii) Certain infrared detection technology. Applications for
exports and reexports to a country listed in Country Group D:5 (in
Supplement No. 1 to part 740 of the EAR) of technology controlled under
6E001 for the development of focal plane arrays or image intensifier
tubes described in 6A002, technology controlled under 6E002 for the
production of focal plane arrays or image intensifier tubes described
in 6A002, or technology controlled under 6E990 will be reviewed with a
presumption of denial.
* * * * *
PART 743--[AMENDED]
0
12. The authority citation for 15 CFR part 743 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13637 of
March 8, 2013, 78 FR 16129 (March 13, 2013); 78 FR 16129; Notice of
August 7, 2015, 80 FR 48233 (August 11, 2015).
0
13. Part 743 is amended by removing and reserving Sec. 743.3.
PART 744--[AMENDED]
0
14. The authority citation for 15 CFR part 744 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179;
E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR,
1995 Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p.
228; E.O. 13099, 63 FR 45167, 3
[[Page 8432]]
CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp.,
p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice
of January 21, 2015, 80 FR 3461 (January 22, 2015); Notice of August
7, 2015, 80 FR 48233 (August 11, 2015); Notice of September 18,
2015, 80 FR 57281 (September 22, 2015); Notice of November 12, 2015,
80 FR 70667 (November 13, 2015).
0
15. Section 744.9 is amended by revising the heading and paragraphs (a)
and (b) to read as follows:
Sec. 744.9 Restrictions on certain exports and reexports of certain
cameras, systems, or equipment.
(a) General prohibitions. In addition to the applicable license
requirements for national security, regional stability, anti-terrorism
and United Nations embargo reasons in Sec. Sec. 742.4, 742.6, 742.8,
746.1(b), and 746.3 of the EAR, a license is required to export,
reexport, or transfer (in-country) to any destination other than Canada
commodities described in ECCNs 0A987 (incorporating commodities
controlled by ECCNs 6A002 or 6A003, or commodities controlled by
6A993.a that meet the criterion of Note 3.a to 6A003.b.4), 6A002,
6A003, 6A990, or 6A993.a (having a maximum frame rate equal to or less
than 9 Hz and thus meeting the criteria of Note 3.a to 6A003.b.4),
8A002.d.1.c, or 8A002.d.2 if at the time of export, reexport, or
transfer, the exporter, reexporter, or transferor knows or is informed
that the item will be or is intended to be:
(1) Used by a ``military end-user,'' as defined in paragraph (d) of
this section; or
(2) Incorporated into a ``military commodity'' controlled by ECCN
0A919.
(b) Additional prohibition on exporters, reexporters, or
transferors informed by BIS. BIS may inform an exporter, reexporter, or
transferor, either individually by specific notice or through amendment
to the EAR, that a license is required for the export, reexport, or
transfer of commodities described in ECCNs 0A987 (incorporating
commodities controlled by ECCNs 6A002 or 6A003, or commodities
controlled by 6A993.a that meet the criterion of Note 3.a to
6A003.b.4), 6A002, 6A003, 6A990, or 6A993.a (having a maximum frame
rate equal to or less than 9 Hz and thus meeting the criteria of Note
3.a to 6A003.b.4), 8A002.d.1.c, or 8A002.d.2 to specified end users,
because BIS has determined that there is an unacceptable risk of
diversion to the users or unauthorized incorporation into the
``military commodities'' described in paragraph (a) of this section.
Specific notice is to be given only by, or at the direction of, the
Deputy Assistant Secretary for Export Administration. When such notice
is provided orally, it will be followed by a written notice within two
working days signed by the Deputy Assistant Secretary for Export
Administration.
* * * * *
PART 772--[AMENDED]
0
16. The authority citations paragraph for part 772 continues to read as
follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;
E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August
7, 2015, 80 FR 48233 (August 11, 2015).
0
17. Section 772.1 is amended by revising the last sentence in Note 1 to
the definition of ``specially designed,'' to read as follows:
Sec. 772.1 Definitions of terms as used in the Export Administration
Regulations (EAR).
* * * * *
Specially designed.
* * * * *
Note 1: * * * For purposes of ``specially designed,'' ECCNs 0B986,
0B999, 0D999, 1B999, 1C992, 1C995, 1C997, 1C999, 6A998 (except for .b),
and 9A991 are treated as ECCNs controlled exclusively for AT reasons.
* * * * *
PART 774--[AMENDED]
0
18. The authority citations paragraph for 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, 2015, 80 FR 48233 (August 11, 2015).
Supplement No. 1 to Part 774 [Amended]
0
19. In Supplement No. 1 to part 774, Category 0, ECCN 0A919 is amended
by revising the Items paragraph of the List of Items Controlled section
to read as follows:
Supplement No. 1 to Part 774--The Commerce Control List
* * * * *
0A919 ``Military commodities'' located and produced outside the
United States as follows (see List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
a. ``Military commodities'' produced and located outside the
United States that are not subject to the International Traffic in
Arms Regulations (22 CFR parts 120-130) and having any of the
following characteristics:
a.1. Incorporate one or more commodities classified under ECCNs
6A002, 6A003, 6A990, or 6A993.a (having a maximum frame rate equal
to or less than 9 Hz and thus meeting the criterion of Note 3.a to
6A003.b.4);
a.2. Incorporate more than a de minimis amount of U.S.-origin
``600 series'' controlled content (see Sec. 734.4 of the EAR); or
a.3. Are direct products of U.S.-origin ``600 series''
technology or software (see Sec. 736.2(b)(3) of the EAR).
b. [Reserved]
0
20. In Supplement No. 1 to part 774, Category 0, ECCN 0A987 is amended
by:
0
a. Revising the Related Controls paragraph in the List of Items
Controlled section;
0
b. Revising paragraph f. in the Items paragraph in the List of Items
Controlled section; and
0
c. Adding a note to 0A987.f, to read as follows:
0A987 Optical sighting devices for firearms (including shotguns
controlled by 0A984); and ``components'' as follows (See List of
Items Controlled).
* * * * *
List of Items Controlled
Related Controls: (1) Sighting devices operating outside the visible
spectrum, as enumerated in USML Category XII, or laser aiming or
laser illumination equipment not specified in 0A987.f are subject to
the ITAR. (2) Section 744.9 imposes a license requirement on certain
commodities described in 0A987 if being exported, reexported, or
transferred (in-country) for use by a military end-user or for
incorporation into an item controlled by ECCN 0A919.
* * * * *
Items:
* * * * *
f. Laser aiming devices or laser illuminators specially designed
for use on firearms, and having an operational wavelength exceeding
400 nm but not exceeding 710 nm.
Note: 0A987.f does not control laser boresighting devices that
must be placed in the bore or chamber to provide a reference for
aligning the firearms sights.
* * * * *
0
21. In Supplement No. 1 to part 774, Category 0, add ECCN 0E987 between
ECCN 0E984 and EAR99, to read as follows:
0E987 ``Technology'' ``required'' for the ``development,'' or
``production'' of commodities controlled by 0A987 that incorporate a
focal plane array or image intensifier tube.
License Requirements
Reason for Control: RS, AT.
[[Page 8433]]
Country chart (see Supp. No.
Control(s) 1 to Part 738)
RS applies to entire entry................ RS Column 1
AT applies to entire entry................ AT Column 1
List Based License Exceptions (See Part 740 for a description of all
license exceptions)
CIV: N/A
TSR: N/A
List of Items Controlled
Related Controls: N/A
Related Definitions: N/A
Items:
The list of items controlled is contained in the ECCN heading.
0
22. In Supplement No. 1 to part 774, Category 2, ECCN 2A984 is amended
by adding Note 4 to the end of the Related Controls paragraph in the
List of Items Controlled section, to read as follows:
2A984 Concealed object detection equipment operating in the
frequency range from 30 GHz to 3000 GHz and having a spatial
resolution of 0.5 milliradian up to and including 1 milliradian at a
standoff distance of 100 meters; and ``parts'' and ``components,''
n.e.s.
* * * * *
List of Items Controlled
Related Controls: * * * (4) See USML Category XII(c) for terahertz
imaging systems ``subject to the ITAR.''
* * * * *
0
23. In Supplement No. 1 to part 774, Category 6, ECCN 6A002 is amended
by:
0
a. Removing the ``Special Conditions for STA'' section; and
0
b. Revising the Related Controls paragraph in the List of Items
Controlled section.
6A002 Optical sensors and equipment and ``components'' therefor, as
follows (see List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Related Controls: (1) For focal plane arrays, image intensifier
tubes, and related parts and components subject to the ITAR, see
USML Category XII(e). (2) See also ECCNs 6A102, 6A202, and 6A992.
(3) See ECCN 0A919 for foreign-made military commodities that
incorporate commodities described in 6A002. (4) Section 744.9
imposes a license requirement on commodities described in ECCN 6A002
if being exported, reexported, or transferred (in-country) for use
by a military end-user or for incorporation into an item controlled
by ECCN 0A919.
* * * * *
0
24. In Supplement No. 1 to part 774, Category 6, ECCN 6A003 is amended
by:
0
a. Revising the Control(s) table in the License Requirements section;
0
b. Revising notes 4 and 5 in the Related Controls paragraph in the List
of Items Controlled section; and
0
c. Adding note 6 to the Related Controls paragraph in the List of Items
Controlled section, to read as follows:
6A003 Cameras, systems or equipment, and ``components'' therefor, as
follows (see List of Items Controlled).
License Requirements
* * * * *
Country chart (see Supp. No.
Control(s) 1 to Part 738)
NS applies to entire entry................ NS Column 2
NP applies to cameras controlled by NP Column 1
6A003.a.2, a.3 or a.4 and to plug-ins in
6A003.a.6 for cameras controlled by
6A003.a.3 or a.4.
RS applies to entire entry................ RS Column 1
AT applies to entire entry................ AT Column 1
UN applies to items controlled in See Sec. 746.1(b) for UN
6A003.b.3 and b.4. controls
* * * * *
List of Items Controlled
* * * * *
Related Controls: * * * (4) See ECCN 0A919 for foreign made
military commodities that incorporate cameras described in 6A003.
(5) Section 744.9 imposes a license requirement on cameras described
in 6A003 if being exported, reexported, or transferred (in-country)
for use by a military end-user or for incorporation into a commodity
controlled by ECCN 0A919. (6) See USML Category XII(c) for cameras
subject to the ITAR.
* * * * *
0
25. In Supplement No. 1 to part 774, Category 6, ECCN 6A004 is amended
by revising the Related Controls paragraph in the List of Items
Controlled section to read as follows:
6A004 Optical equipment and ``components,'' as follows (see List of
Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Related Controls: (1) For optical mirrors or `aspheric optical
elements' ``specially designed'' for lithography ``equipment,'' see
ECCN 3B001. (2) See USML Category XII(e) for gimbals ``subject to
the ITAR.'' (3) See also 6A994.
* * * * *
0
26. In Supplement No. 1 to part 774, Category 6, ECCN 6A005 is amended
by revising the Related Controls paragraph in the List of Items
Controlled section.
6A005 ``Lasers,'' ``components'' and optical equipment, as follows
(see List of Items Controlled), excluding items that are subject to
the export licensing authority of the Nuclear Regulatory Commission
(see 10 CFR part 110).
* * * * *
List of Items Controlled
* * * * *
Related Controls: (1) See ECCN 6D001 for ``software'' for items
controlled under this entry. (2) See ECCNs 6E001 (``development''),
6E002 (``production''), and 6E201 (``use'') for technology for items
controlled under this entry. (3) Also see ECCNs 6A205 and 6A995. (4)
See ECCN 3B001 for excimer ``lasers'' ``specially designed'' for
lithography equipment. (5) ``Lasers'' ``specially designed'' or
prepared for use in isotope separation are subject to the export
licensing authority of the Nuclear Regulatory Commission (see 10 CFR
part 110). (6) See USML Category XII(b) and (e) for laser systems or
lasers subject to the ITAR. (7) See USML Category XVIII for certain
laser-based directed energy weapon systems, equipment, and
components subject to the ITAR.
* * * * *
0
27. In Supplement No. 1 to part 774, Category 6, ECCN 6A007 is amended
by revising the Related Controls paragraph in the List of Items
Controlled section, to read as follows:
6A007 Gravity meters (gravimeters) and gravity gradiometers, as
follows (see List of Items Controlled).
* * * * *
List of Items Controlled
Related Controls: (1) See USML Category XII(d) for certain
gravity meters (gravimeters) and gravity gradiometers subject to the
ITAR. (2) See also ECCNs 6A107, 6A997, and 7A611.
* * * * *
0
28. In Supplement No. 1 to part 774, Category 6, ECCN 6A008 is amended
by revising the Related Controls paragraph in the List of Items
Controlled section to read as follows:
6A008 Radar systems, equipment and assemblies, having any of the
following (see List of Items Controlled), and ``specially designed''
``components'' therefor.
* * * * *
List of Items Controlled
* * * * *
Related Controls: This entry does not control: Secondary
surveillance radar (SSR); Car radar designed for collision
prevention; Displays or monitors used for Air Traffic Control (ATC)
having no more than 12 resolvable elements per mm; Meteorological
(weather) radar. See also ECCNs 6A108 and 6A998. ECCN 6A998
controls, inter alia, the Light Detection and
[[Page 8434]]
Ranging (LIDAR) equipment excluded by the note to paragraph j of
this ECCN (6A008). See USML Category XII(b) for certain LIDAR, Laser
Detection and Ranging (LADAR), or range-gated systems subject to the
ITAR.
* * * * *
0
29. In Supplement No. 1 to part 774, Category 6, ECCN 6A107 is amended
by revising the Related Controls paragraph in the List of Items
Controlled section to read as follows:
6A107 Gravity meters (gravimeters) or gravity gradiometers, other
than those controlled by 6A007, designed or modified for airborne or
marine use, as follows, (see List of Items Controlled) and
``specially designed'' ``parts'' and ``components'' therefor.
* * * * *
List of Items Controlled
* * * * *
Related Controls: See USML Category XII(d) for certain gravity
meters (gravimeters) or gravity gradiometers subject to the ITAR.
See also ECCN 7A611.
* * * * *
0
30. In Supplement No. 1 to part 774, Category 6, ECCN 6A611 is revised
to read as follows:
6A611 Acoustic systems and equipment, radar, and ``parts,''
``components,'' ``accessories,'' and ``attachments'' ``specially
designed'' therefor, ``specially designed'' for a military
application that are not enumerated in any USML category or other
ECCN are controlled by ECCN 3A611. Military fire control, laser,
imaging, and guidance and control equipment that are not enumerated
in any USML category or ECCN are controlled by ECCN 7A611.
0
31. In Supplement No. 1 to part 774, Category 6, ECCN 6A990 is revised
to read as follows:
6A990 Read-out integrated circuits, as follows (see List of Items
Controlled).
License Requirements
Reason for Control: RS, AT
Country chart (see Supp. No.
Control(s) 1 to Part 738)
RS applies to entire entry................ RS Column 1
AT applies to entire entry................ AT Column 1
List Based License Exceptions (See Part 740 for a description of all
license exceptions)
LVS: $500
GBS: N/A
CIV: N/A
List of Items Controlled
Related Controls: (1) See USML Category XII(e) for read-out
integrated circuits ``subject to the ITAR.'' (2) See ECCN 0A919 for
foreign made military commodities that incorporate commodities
described in 6A990. (3) Section 744.9 imposes a license requirement
on commodities described in 6A990 if being exported, reexported, or
transferred (in-country) for use by a military end-user or for
incorporation into a commodity controlled by ECCN 0A919.
Related Definitions: N/A
Items:
a. Read-out integrated circuits ``specially designed'' for
``focal plane arrays'' controlled by 6A002.a.3;
Note: 6A990.a does not control read-out integrated circuits
``specially designed'' for civil automotive applications.
b. [RESERVED]
* * * * *
0
32. In Supplement No. 1 to part 774, Category 6, ECCN 6A993 is amended
by revising the Related Controls paragraph in the List of Items
Controlled section, to read as follows:
6A993 Cameras, not controlled by 6A003 or 6A203, as follows (see
List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Related Controls: (1) See ECCN 0A919 for foreign made military
commodities that incorporate cameras described in 6A993.a that meet
the criteria specified in Note 3.a to 6A003.b.4.b (i.e., having a
maximum frame rate equal to or less than 9 Hz). (2) Section 744.9
imposes license requirements on cameras described in 6A993.a as a
result of meeting the criteria specified in Note 3.a to 6A003.b.4.b
(i.e., having a maximum frame rate equal to or less than 9 Hz) if
being exported, reexported, or transferred (in-country) for use by a
military end-user or for incorporation into a commodity controlled
by ECCN 0A919.
* * * * *
0
33. In Supplement No. 1 to part 774, Category 6, ECCN 6D002 is amended
by:
0
a. Revising the TSR paragraph in the List Based License Exceptions
section; and
0
b. Revising the Related Controls paragraph in the List of Items
Controlled section, to read as follows:
6D002 ``Software'' ``specially designed'' for the ``use'' of
equipment controlled by 6A002.b, 6A008 or 6B008.
* * * * *
List Based License Exceptions (See Part 740 for a description of all
license exceptions)
* * * * *
TSR: Yes, except N/A for the following: (1) Items controlled for MT
reasons; (2) ``Software'' ``specially designed'' for the ``use'' of
``space qualified'' ``laser'' radar or Light Detection and Ranging
(LIDAR) equipment defined in 6A008.j.1; or (3) ``Software''
``specially designed'' for the ``use'' of commodities controlled by
6A002.b.
List of Items Controlled
* * * * *
Related Controls: (1) ``Software'' ``specially designed'' for the
``use'' of ``space-qualified'' LIDAR ``equipment'' ``specially
designed'' for surveying or for meteorological observation, released
from control under the note in 6A008.j, is controlled in 6D991. (2)
See also 6D102, 6D991, and 6D992.
* * * * *
0
34. In Supplement No. 1 to part 774, Category 6, ECCN 6D003 is amended
by:
0
a. Revising the TSR paragraph in the List Based License Exceptions
section; and
0
b. Revising the Related Controls paragraph in the List of Items
Controlled section, to read as follows:
6D003 Other ``software'' as follows (see List of Items Controlled).
* * * * *
List Based License Exceptions (See Part 740 for a description of all
license exceptions)
* * * * *
TSR: Yes, except for 6D003.c and exports or reexports to
destinations outside of those countries listed in Country Group A:5
(See Supplement No. 1 to part 740 of the EAR) of ``software'' for
items controlled by 6D003.a.
* * * * *
List of Items Controlled
* * * * *
Related Controls: See also 6D103, 6D991, and 6D993.
* * * * *
0
35. In Supplement No. 1 to part 774, Category 6, ECCN 6D991 is revised
to read as follows:
6D991 ``Software,'' n.e.s., ``specially designed'' for the
``development'', ``production'', or ``use'' of commodities
controlled by 6A002, 6A003, 6A990, 6A991, 6A996, 6A997, or 6A998.
License Requirements
Reason for Control: RS, AT
Country chart (see Supp. No.
Control(s) 1 to Part 738)
RS applies to ``software'' for commodities RS Column 1
controlled by 6A002, 6A003, 6A990, or
6A998.b.
RS applies to ``software'' for commodities RS Column 2
controlled by 6A998.c.
AT applies to entire entry, except AT Column 1
``software'' for commodities controlled
by 6A991.
AT applies to ``software'' for commodities AT Column 2
controlled by 6A991.
List Based License Exceptions (See Part 740 for a description of all
license exceptions)
[[Page 8435]]
CIV: N/A
TSR: N/A
List of Items Controlled
Related Controls: (1) See ECCN 6D002 for ``software'' ``specially
designed'' for the ``use'' of commodities controlled under ECCN
6A002.b. (2) See ECCN 6D003.c for ``software'' ``specially
designed'' for cameras incorporating ``focal plane arrays''
specified by 6A002.a.3.f and ``specially designed'' to remove a
frame rate restriction and allow the camera to exceed the frame rate
specified in 6A003.b.4 Note 3.a.
Related Definitions: N/A
Items:
The list of items controlled is contained in the ECCN heading.
0
36. In Supplement No. 1 to part 774, Category 6, ECCN 6E001 is amended
by:
0
a. Revising the TSR paragraph in the List Based License Exceptions
section; and
0
b. Revising the Related Controls paragraph in the List of Items
Controlled section, to read as follows:
6E001 ``Technology'' according to the General Technology Note for
the ``development'' of equipment, materials or ``software''
controlled by 6A (except 6A990, 6A991, 6A992, 6A994, 6A995, 6A996,
6A997, 6A998, or 6A999.c), 6B (except 6B995), 6C (except 6C992 or
6C994), or 6D (except 6D991, 6D992, or 6D993).
* * * * *
List Based License Exceptions (See Part 740 for a description of all
license exceptions)
* * * * *
TSR: Yes, except for the following: (1) Items controlled for MT
reasons; (2) ``Technology'' for commodities controlled by 6A002,
6A003, 6A004.e or 6A008.j.1; (3) ``Technology'' for ``software''
``specially designed'' for ``space qualified'' ``laser'' radar or
Light Detection and Ranging (LIDAR) equipment defined in 6A008.j.1
and controlled by 6D001 or 6D002; or (4) Exports or reexports to
destinations outside of those countries listed in Country Group A:5
(See Supplement No. 1 to part 740 of the EAR) of ``technology'' for
the ``development'' of the following: 6A001.a.1.b, 6A001.a.1.e,
6A001.a.2.a.1, 6A001.a.2.a.2, 6A001.a.2.a.3, 6A001.a.2.a.5,
6A001.a.2.a.6, 6A001.a.2.b, 6A001.a.2.d, 6A001.a.2.e., 6A004.c,
6A004.d,, 6A006.a.2, 6A006.c.1, 6A006.d, 6A006.e, 6A008.d, 6A008.h,
6A008.k, 6B008, 6D003.a; (b) Equipment controlled by 6A001.a.2.c or
6A001.a.2.f when ``specially designed'' for real time applications;
or (c) ``Software'' controlled by 6D001 and ``specially designed''
for the ``development'' or ``production'' of equipment controlled by
6B008, or 6D003.a.
* * * * *
List of Items Controlled
Related Controls: (1) Technical data directly related to satellites
and all other items described in USML Category XV are subject to the
ITAR under USML Category XV(f). (2) Technical data directly related
to laser systems, infrared imaging systems, and all other items
described in USML Category XII are subject to the ITAR under USML
Category XII(f). (3) See also 6E101, 6E201, and 6E991.
* * * * *
0
37. In Supplement No. 1 to part 774, Category 6, ECCN 6E002 is amended
by:
0
a. Revising the TSR paragraph in the List Based License Exceptions
section; and
0
b. Revising the Related Controls paragraph in the List of Items
Controlled section, to read as follows:
6E002 ``Technology'' according to the General Technology Note for
the ``production'' of equipment or materials controlled by 6A
(except 6A990, 6A991, 6A992, 6A994, 6A995, 6A996, 6A997, 6A998 or
6A999.c), 6B (except 6B995) or 6C (except 6C992 or 6C994).
* * * * *
List Based License Exceptions (See Part 740 for a description of all
license exceptions)
* * * * *
TSR: Yes, except for the following:
(1) Items controlled for MT reasons;
(2) ``Technology'' for commodities controlled by 6A002, 6A003,
6A004.e, 6A008.j.1; or
(3) Exports or reexports to destinations outside of those
countries listed in Country Group A:5 (See Supplement No. 1 to part
740 of the EAR) of ``technology'' for the ``production'' of the
following: (a) Items controlled by 6A001.a.1.b, 6A001.a.1.e,
6A001.a.2.a.1, 6A001.a.2.a.2, 6A001.a.2.a.3, 6A001.a.2.a.5,
6A001.a.2.a.6, 6A001.a.2.b, 6A004.c, 6A004.d, 6A006.a.2, 6A006.c.1,
6A006.d, 6A006.e, 6A008.d, 6A008.h, 6A008.k, 6B008; and (b) Items
controlled by 6A001.a.2.c and 6A001.a.2.f when ``specially
designed'' for real time applications.
* * * * *
List of Items Controlled
Related Controls: (1) Technical data directly related to satellites
and all other items described in USML Category XV are subject to the
ITAR under USML Category XV(f). (2) Technical data directly related
to laser systems, infrared imaging systems, and all other items
described in USML Category XII are subject to the ITAR under USML
Category XII(f). (3) See also 6E992.
* * * * *
0
38. In Supplement No. 1 to part 774, Category 6, ECCN 6E990 is amended
by revising the Related Controls paragraph in the List of Items
Controlled section to read as follows:
6E990 ``Technology'' ``required'' for the ``development'' or
``production'' of commodities controlled by ECCN 6A990.
* * * * *
List of Items Controlled
Related Controls: Technical data directly related to read-out
integrated circuits described in USML Category XII(e) are subject to
the ITAR under USML Category XII(f).
* * * * *
0
39. In Supplement No. 1 to part 774, Category 7, ECCN 7A001 is amended
by revising the Related Controls paragraph in the List of Items
Controlled section, to read as follows:
7A001 Accelerometers as follows (see List of Items Controlled) and
``specially designed'' ``components'' therefor.
* * * * *
List of Items Controlled
* * * * *
Related Controls: (1) See USML Category XII(e) for accelerometers
subject to the ITAR. (2) See also ECCNs 7A101, 7A611, and 7A994. For
angular or rotational accelerometers, see ECCN7A001.b. MT controls
do not apply to accelerometers that are ``specially designed'' and
developed as Measurement While Drilling (MWD) sensors for use in
downhole well service applications.
* * * * *
0
40. In Supplement No. 1 to part 774, Category 7, ECCN 7A002 is amended
by revising the Related Controls paragraph in the List of Items
Controlled section, to read as follows:
7A002 Gyros or angular rate sensors, having any of the following
(see List of Items Controlled) and ``specially designed''
``components'' therefor.
* * * * *
List of Items Controlled
Related Controls: (1) See USML Category XII(e) for gyros or angular
rate sensors subject to the ITAR. (2) See also ECCNs 7A102, 7A611,
and 7A994. For angular or rotational accelerometers, see ECCN
7A001.b.
* * * * *
0
41. In Supplement No. 1 to part 774, Category 7, ECCN 7A003 is amended
by revising the Related Controls paragraph in the List of Items
Controlled section, to read as follows:
7A003 `Inertial measurement equipment or systems,' having any of the
following (see List of Items Controlled).
* * * * *
List of Items Controlled
Related Controls: See also ECCNs 7A103, 7A611, and 7A994. See USML
Category XII(d) for guidance or navigation systems subject to the
ITAR.
* * * * *
0
42. In Supplement No. 1 to part 774, Category 7, amend ECCN 7A005 by
revising the Related Controls paragraph in the List of Items Controlled
section, to read as follows:
[[Page 8436]]
7A005 Global Navigation Satellite Systems (GNSS) receiving equipment
having any of the following (see List of Items Controlled) and
``specially designed'' ``components'' therefor.
* * * * *
List of Items Controlled
Related Controls: (1) See also ECCNs 7A105 and 7A994. Typically
commercially available GNSS receivers do not employ decryption or
adaptive antennas and are classified as 7A994. (2) See USML Category
XII(d) for GNSS receiving equipment subject to the ITAR.
* * * * *
0
43. In Supplement No. 1 to part 774, Category 7, ECCN 7A101 is amended
by revising the Related Controls paragraph in the List of Items
Controlled section, to read as follows:
7A101 Accelerometers, other than those controlled by 7A001 (see List
of Items Controlled), and ``specially designed'' ``parts'' and
``components'' therefor.
* * * * *
List of Items Controlled
Related Controls: (1) See USML Category XII(e) for accelerometers
subject to the ITAR. (2) See also ECCNs 7A001 and 7A611. (3) This
entry does not control accelerometers that are ``specially
designed'' and developed as MWD (Measurement While Drilling) sensors
for use in downhole well service operations.
* * * * *
0
44. In Supplement No. 1 to part 774, Category 7, ECCN 7A102 is amended
by revising the Related Controls paragraph in the List of Items
Controlled section, to read as follows:
7A102 Gyros, other than those controlled by 7A002 (see List of Items
Controlled), and ``specially designed'' ``parts'' and ``components''
therefor.
* * * * *
List of Items Controlled
Related Controls: (1) See USML Category XII(e) for gyros or angular
rate sensors subject to the ITAR. (2) See also ECCNs 7A002, 7A611,
and 7A994.
* * * * *
0
45. In Supplement No. 1 to part 774, Category 7, ECCN 7A611 is revised
to read as follows:
7A611 Military fire control, laser, imaging, and guidance and
control equipment, as follows (see List of Items Controlled).
License Requirements
Reason for Control: NS, RS, AT, UN
Country chart (see Supp. No.
Control(s) 1 to Part 738)
NS applies to entire entry except 7A611.y. NS Column 1
RS applies to entire entry except 7A611.y. RS Column 1
AT applies to entire entry................ AT Column 1
UN applies to entire entry except 7A611.y. See Sec. 746.1(b) for UN
controls
List Based License Exceptions
(See Part 740 for a description of all license exceptions)
LVS: $1500
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 7A611.
List of Items Controlled
Related Controls: (1) Military fire control, laser, imaging, and
guidance and control equipment that are enumerated in USML Category
XII, and technical data (including software) directly related
thereto, are subject to the ITAR. (2) Navigation and avionics
equipment and systems, and ``parts,'' ``components,''
``accessories,'' and ``attachments'' ``specially designed''
therefor, ``specially designed'' for a military application that are
not enumerated in any USML category or another ``600 series'' ECCN
are controlled by ECCN 3A611. (3) See Related Controls in ECCNs
0A987, 2A984, 6A002, 6A003, 6A004, 6A005, 6A007, 6A008, 7A001,
7A002, 7A003, 7A005, 7A101, and 7A102. (4) See ECCN 3A611 and USML
Category XI for controls on countermeasure equipment. (5) See ECCN
0A919 for foreign-made ``military commodities'' that incorporate
more than a de minimis amount of U.S. origin ``600 series''
controlled content.
Related Definitions: N/A
Items:
a. Guidance, navigation, or control systems, not elsewhere
specified on the USML, that are ``specially designed'' for a defense
article on the USML or for a 600 series item.
b. Inertial measurement units (IMUs), not elsewhere specified on
the USML, that are ``specially designed'' for a 600 series item.
c. Accelerometers, not elsewhere specified on the USML, that are
``specially designed'' for a defense article on the USML or for a
600 series item.
d. Gyros or angular rate sensors, not elsewhere specified on the
USML, that are ``specially designed'' for a defense article on the
USML or for a 600 series item.
e. Gravity meters (gravimeters), not elsewhere specified on the
USML, that are ``specially designed'' for a defense article on the
USML or for a 600 series item.
f. to w. [RESERVED]
x. ``Parts,'' ``components,'' ``accessories,'' and
``attachments'' that are ``specially designed'' for a commodity
enumerated or otherwise described in ECCN 7A611 (except 7A611.y) or
a defense article enumerated or otherwise described in Category XII
and not elsewhere specified on the USML, in 7A611.y, or 3A611.y.
y. Specific ``parts,'' ``components,'' ``accessories,'' and
``attachments'' ``specially designed'' for a commodity subject to
control in this ECCN or a defense article in Category XII and not
elsewhere specified on the USML or in the CCL, as follows, and
``parts,'' ``components,'' ``accessories,'' and ``attachments''
``specially designed'' therefor:
y.1 [RESERVED]
0
46. In Supplement No. 1 to part 774, Category 7, ECCN 7A994 is revised
to read as follows:
7A994 Other navigation direction finding equipment, airborne
communication equipment, all aircraft inertial navigation systems
not controlled under 7A003 or 7A103, and other avionic equipment,
including ``parts'' and ``components,'' n.e.s.
License Requirements
Reason for Control: AT
Country chart (see Supp. No.
Control(s) 1 to Part 738)
AT applies to entire entry................ AT Column 1
License Requirement Notes:
(1) Typically commercially available GPS do not employ
decryption or adaptive antenna and are classified as 7A994.
List Based License Exceptions
(See Part 740 for a description of all license exceptions)
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Related Controls: See 7A005 and 7A105.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN
heading.
* * * * *
0
47. In Supplement No. 1 to part 774, Category 7, add a new ECCN 7B611
between ECCNs 7B103 and 7B994, to read as follows:
7B611 Test, inspection, and production commodities ``specially
designed'' for military fire control, laser, imaging, and guidance
and control equipment, as follows (see List of Items Controlled).
License Requirements
Reason for Control: NS, RS, AT, UN
Country chart (see Supp. No.
Control(s) 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
[[Page 8437]]
UN applies to entire entry................ See Sec. 746.1(b) for UN
controls
List Based License Exceptions
(See Part 740 for a description of all license exceptions)
LVS: $1500
GBS: N/A
CIV: N/A
Special Conditions for STA
STA: Paragraph (c)(2) of License Exception STA (Sec. 740.20(c)(2)
of the EAR) may not be used for any item in 7B611.
List of Items Controlled
Related Controls: N/A
Related Definitions: N/A
Items:
a. Test, inspection, and production end items and equipment
``specially designed'' for the ``development,'' ``production,''
repair, overhaul, or refurbishing of commodities controlled in ECCN
7A611 (except 7A611.y) or commodities in USML Category XII that are
not enumerated in USML Category XII or ``600 series'' ECCN.
b. Environmental test facilities ``specially designed'' for the
certification, qualification, or testing of commodities controlled
in ECCN 7A611 (except 7A611.y) or guidance and control equipment in
USML Category XII that are not enumerated in USML Category XII or
``600 series'' ECCN.
c. Field test equipment ``specially designed'' to evaluate or
calibrate the operation of systems described in USML Category
XII(a), (b), or (c).
d. to w. [RESERVED]
x. ``Parts,'' ``components,'' ``accessories,'' and
``attachments'' that are ``specially designed'' for a commodity
listed in this entry and that are not enumerated on the USML or
controlled by another ``600 series'' ECCN.
0
48. In Supplement No. 1 to part 774, Category 7, add a new ECCN 7D611
between ECCNs 7D103 and 7D994, to read as follows:
7D611 ``Software'' ``specially designed'' for commodities controlled
by 7A611 or equipment controlled by 7B611, as follows (see List of
Items Controlled).
License Requirements
Reason for Control: NS, RS, AT, UN
Country chart (see Supp. No.
Control(s) 1 to Part 738)
NS applies to entire entry except 7D611.y. NS Column 1
RS applies to entire entry except 7D611.y. RS Column 1
AT applies to entire entry................ AT Column 1
UN applies to entire entry except 7D611.y. See Sec. 746.1(b) for UN
controls
List Based License Exceptions
(See Part 740 for a description of all license exceptions)
CIV: N/A
TSR: N/A
Special Conditions for STA
STA: Paragraph (c)(2) of License Exception STA (Sec. 740.20(c)(2)
of the EAR) may not be used for any software in 7D611.
List of Items Controlled
Related Controls: ``Software'' directly related to articles
enumerated in USML Category XII is subject of USML paragraph XII(f).
Related Definitions:
Items:
a. ``Software'' ``specially designed'' for the ``development,''
``production,'' operation, or maintenance of commodities controlled
by ECCNs 7A611 (except 7A611.y) or 7B611.
b. to x. [RESERVED]
y. Specific ``software'' ``specially designed'' for the
``development,'' ``production,'' operation, or maintenance of
commodities described in 7A611.y.
0
49. In Supplement No. 1 to part 774, Category 7, add a new ECCN 7E611
between ECCNs 7E104 and 7E994, to read as follows:
7E611 ``Technology'' ``required'' for the ``development,''
``production,'' operation, installation, maintenance, repair,
overhaul or refurbishing of commodities controlled by 7A611,
commodities controlled by 7B611, or software controlled by 7D611, as
follows (see List of Items Controlled).
License Requirements
Reason for Control: NS, RS, AT, UN
Country chart (see Supp. No.
Control(s) 1 to Part 738)
NS applies to entire entry except 7E611.y. NS Column 1
RS applies to ``development'' or A license is required to
``production'' ``technology'' in 7E611.a. export and reexport these
items to all countries,
including Canada. A column
specific to this control
does not appear on the
Commerce Country Chart.
(See Sec. 742.6(a)(8)).
RS applies to entire entry except 7E611.y. RS Column 1
AT applies to entire entry................ AT Column 1
UN applies to entire entry except 7E611.y. See Sec. 746.1(b) for UN
controls
List Based License Exceptions
(See Part 740 for a description of all license exceptions)
CIV: N/A
TSR: N/A
Special Conditions for STA
STA: (1) Paragraph (c)(1) of License Exception STA (Sec.
740.20(c)(1) of the EAR) may not be used for ``development'' or
``production'' ``technology'' in 7E611.a. (2) Paragraph (c)(2) of
License Exception STA (Sec. 740.20(c)(2) of the EAR) may not be
used for any technology in 7E611.
List of Items Controlled
Related Controls: Technical data directly related to articles
enumerated in USML Category XII are subject to the control of USML
Category XII(f).
Related Definitions: N/A
Items:
a. ``Technology'' ``required'' for the ``development'' or
``production'' of commodities controlled by ECCNs 7A611.a- .e.
b. ``Technology'' ``required'' for the ``development'' or
``production'' of commodities or ``software'' controlled by ECCNs
7A611 (except 7A611.a-.e or .y), 7B611, or 7D611.
c. ``Technology'' ``required'' for the operation, installation,
maintenance, repair, overhaul, or refurbishing of commodities or
``software'' controlled by ECCNs 7A611 (except 7A611.y), 7B611, or
7D611 (except 7D611.y).
d. through x. [RESERVED]
y. Specific ``technology'' ``required'' for the ``production,''
``development,'' operation, installation, maintenance, repair, or
overhaul of commodities or software controlled by ECCNs 7A611.y or
7D611.y.
0
50. In Supplement No. 1 to part 774, Category 7, ECCN 7E994 is amended
by revising the Related Controls paragraph in the List of Items
Controlled section, to read as follows:
7E994 ``Technology,'' n.e.s., for the ``development,''
``production'', or ``use'' of navigation, airborne communication,
and other avionics equipment.
* * * * *
List of Items Controlled
* * * * *
Related Controls: N/A
* * * * *
0
51. In Supplement No. 1 to part 774, Category 8, ECCN 8A002 is amended
by revising the Related Controls paragraph in the List of Items
Controlled section, to read as follows:
8A002 Marine systems, equipment, ``parts'' and ``components,'' as
follows (see List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Related Controls: (1) See also 8A992 and for underwater
communications systems, see Category 5, Part I--Telecommunications.
(2) See also 8A992 for self-contained underwater breathing apparatus
that is not controlled by 8A002 or released for control by the
8A002.q Note. (3) For electronic imaging systems ``specially
designed'' or
[[Page 8438]]
modified for underwater use incorporating image intensifier tubes
specified by 6A002.a.2.a or 6A002.a.2.b, see 6A003.b.3. (4) For
electronic imaging systems ``specially designed'' or modified for
underwater use incorporating ``focal plane arrays'' specified by
6A002.a.3.g, see 6A003.b.4.c. (5) Section 744.9 imposes a license
requirement on commodities described in 8A002.d.1.c or .d.2 if being
exported, reexported, or transferred (in-country) for use by a
military end-user or for incorporation into an item controlled by
ECCN 0A919.
* * * * *
0
52. In Supplement No. 1 to part 774, Category 9, ECCN 9A991 is amended
by:
0
a. Removing the License Requirement Notes paragraph in the License
Requirements section, and
0
b. Revising the Related Controls paragraph in the List of Items
Controlled section to read as follows:
9A991 ``Aircraft'', n.e.s., and gas turbine engines not controlled
by 9A001 or 9A101 and ``parts'' and ``components,'' n.e.s. (see List
of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Related Controls: N/A
* * * * *
Dated: February 11, 2016.
Kevin J. Wolf,
Assistant Secretary of Commerce for Export Administration.
[FR Doc. 2016-03182 Filed 2-18-16; 8:45 am]
BILLING CODE 3510-33-P