Wassenaar Arrangement 2015 Plenary Agreements Implementation, Removal of Foreign National Review Requirements, and Information Security Updates, 64655-64692 [2016-21544]
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Vol. 81
Tuesday,
No. 182
September 20, 2016
Part III
Department of Commerce
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Defense Acquisition Regulations System
15 CFR Parts 730, 734, 738, et al.
Wassenaar Arrangement 2015 Plenary Agreements Implementation,
Removal of Foreign National Review Requirements, and Information
Security Updates; Final Rule
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Federal Register / Vol. 81, No. 182 / Tuesday, September 20, 2016 / Rules and Regulations
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 730, 734, 738, 740, 742,
743, 748, 770, 772, and 774
[160217120–6120–01]
RIN 0694–AG85
Wassenaar Arrangement 2015 Plenary
Agreements Implementation, Removal
of Foreign National Review
Requirements, and Information
Security Updates
Bureau of Industry and
Security, Commerce.
ACTION: Final rule.
AGENCY:
The Bureau of Industry and
Security (BIS) maintains, as part of its
Export Administration Regulations
(EAR), the Commerce Control List
(CCL), which identifies certain items
subject to Department of Commerce
jurisdiction. This final rule revises the
CCL, as well as corresponding parts of
the EAR, to implement changes made to
the Wassenaar Arrangement’s List of
Dual-Use Goods and Technologies (WA
List) maintained and agreed to by
governments participating in the
Wassenaar Arrangement on Export
Controls for Conventional Arms and
Dual-Use Goods and Technologies
(Wassenaar Arrangement, or WA) at the
December 2015 WA Plenary Meeting
(the Plenary). The Wassenaar
Arrangement advocates implementation
of effective export controls on strategic
items with the objective of improving
regional and international security and
stability. This rule harmonizes the CCL
with the changes made to the WA List
at the Plenary by revising Export
Control Classification Numbers (ECCNs)
controlled for national security reasons
in each category of the CCL, as well as
making other associated changes to the
EAR.
The changes to the WA List include
raising the Adjusted Peak Performance
(APP) for high performance computers.
The President’s report for High
Performance Computers was sent to
Congress on June 1, 2016, to set forth
the new APP in accordance with the
National Defense Authorization Act
(NDAA) for FY1998.
This rule also makes changes to the
EAR that were not agreed to at the WA
Plenary. APP parameters are amended
in several places in the EAR by this rule,
such as APP parameters in the de
minimis rules, License Exception APP,
and related reporting requirements. BIS
is also updating license requirements
and policies associated with Category
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SUMMARY:
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5—Part 2, including revising Export
Control Classification Numbers 5A992,
5D992 and 5E992. In addition, this rule
removes the Foreign National Review
requirement associated with deemed
exports under License Exceptions APP
and CIV.
DATES: This rule is effective: September
20, 2016.
FOR FURTHER INFORMATION CONTACT: For
general questions contact Sharron Cook,
Office of Exporter Services, Bureau of
Industry and Security, U.S. Department
of Commerce at 202–482–2440 or by
email: Sharron.Cook@bis.doc.gov.
For technical questions contact:
Categories 0, 1 & 2: Michael Rithmire at
202–482–6105
Category 3: Brian Baker at 202–482–
5534
Categories 4 & 5: Information
Technology and Control Division
202–482–0707
Category 6 (optics): Chris Costanzo at
202–482–0718
Category 6 (lasers): Mark Jaso at 202–
482–0987
Category 6 (sensors and cameras): John
Varesi 202–482–1114
Category 8: Michael Tu 202–482–6462
Categories 7 & 9: Daniel Squire 202–
482–3710 or Reynaldo Garcia 202–
482–3462
Category 9x515 (Satellites): Mark Jaso at
202–482–0987 or Reynaldo Garcia at
202–482–3462
SUPPLEMENTARY INFORMATION: The
Supplementary Information is separated
into four parts:
Part I—Wassenaar Arrangement Agreement
Implementation;
Part II—Information Security Update and
Simplification;
Part III—High Performance Computer
Adjusted Peak Performance (APP)
changes; and
Part IV—Removal of the Foreign National
Review (FNR) procedure.
Please note that a particular part of
the EAR may be affected by more than
one of these Parts and the
supplementary information in that Part
of the summary will only pertain to the
revisions related to that Part.
Part I—Wassenaar Arrangement
Agreement Implementation
Background
The Wassenaar Arrangement
(Wassenaar or WA) on Export Controls
for Conventional Arms and Dual-Use
Goods and Technologies is a group of 41
like-minded states committed to
promoting responsibility and
transparency in the global arms trade,
and preventing destabilizing
accumulations of arms. As a
Participating State, the United States
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has committed to controlling for export
all items on the WA control lists. The
lists were first established in 1996 and
have been revised annually thereafter.
Proposals for changes to the WA control
lists that achieve consensus are
approved by Participating States at
annual Plenary meetings. Participating
States are charged with implementing
the agreed list changes as soon as
possible after approval. The United
States’ implementation of WA list
changes ensures U.S. companies have a
level playing field with their
competitors in other WA Participating
States.
Unless otherwise indicated, the
changes to the EAR described below are
made in order to implement changes to
the WA control lists approved at the
December 2015 Plenary meeting.
Revisions to the Commerce Control List
Related to WA Agreements
Revises (58) ECCNs: 0A617, 1A001,
1A002, 1A004, 1A613, 1C001, 1C002,
1C006, 1C008, 1C009, 1C608, 1E001,
1E002, 2B001, 2B006, 3A001, 3A002,
3A101, 3A292, 3B001, 3D001, 3E002,
4A001, 4A003, 4D001, 4E001, 5A001,
5B001, 5D001, 5E001, 5A002, 5B002,
5D002, 5E002, 6A001, 6A002, 6A003,
6A004, 6A005, 6A007, 6A008, 6B004,
6B007, 6C005, 6E003, 7A003, 7A004,
7A008, 7B001, 7B002, 7E004, 8A001,
8A002, 9A001, 9A004, 9A012, 9B001,
and 9E003.
Adds (2) ECCNs: 5A003 and 5A004.
License Exception eligibility
additions: 3A002.h (LVS $5,000, GBS,
CIV), 5A003 (GOV), 5E002 (TMP)
License Exception eligibility removals:
3B001.c (CIV), 4A003.e (GBS, APP,
CIV), 5A004 (formerly 5A002.a.2)
(GOV), 8A002.e.2 (GBS, CIV).
Category 0 Nuclear Materials,
Facilities, and Equipment [and
Miscellaneous Items]
0A617 Miscellaneous ‘‘equipment,’’
materials, and Related Commodities
ECCN 0A617 is amended by adding
double quotes around the term ‘‘laser’’
in paragraph (8) of the Related Controls
paragraph in the List of Items Controlled
section to clarify the entry and to
indicate this is a term defined in Part
772 of the EAR.
Category 1 Special Materials and
Related Equipment, Chemicals,
‘‘Microorganisms,’’ and ‘‘Toxins’’
1A001 ‘‘Parts’’ and ‘‘components’’
Made From fluorinated Compounds
ECCN 1A001 is amended by removing
and reserving paragraph .b and
removing paragraph .c from the Items
paragraph of the List of Items Controlled
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section. Paragraph .b controlled
piezoelectric polymers and copolymers,
made from vinylidene fluoride (CAS 75
38 7) materials and paragraph .c
controlled seals, gaskets, valve seats,
etc. made from fluoroelastomers and
specially designed for ‘‘aircraft,’’
aerospace or missile use. These types of
polymers/copolymers and seals/gaskets
were controlled because it was thought
that their fluorine content gave them
high temperature and chemical
resistance. After much testing, this has
proven not to be the case, and therefore
the need to control them as a strategic
good no longer exists.
1A002 ‘‘Composite’’ Structures or
Laminates
ECCN 1A002 is amended by adding
double quotes around the term
‘‘composite’’ in the introductory text of
Note 1 following paragraph .b.2 in the
Items paragraph of the List of Items
Controlled section, to indicate this is a
term defined in Part 772 of the EAR.
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1A004 Protective and Detection
Equipment and ‘‘components’’
ECCN 1A004 is amended by revising
Items paragraphs .a.1, .b.1, and .c.1 by
removing the phrase ‘‘adapted for use in
war’’ and adding single quotes around
the remaining phrase, ‘biological
agents’, because the former articulation
did not describe the scope of control
accurately. This rule narrows the scope
of control by adding Technical Note 3,
which defines biological agents. Now,
only biological agents and equipment
that are specially designed or modified
to provide protection from or detect
biological agents as defined in the
technical note are controlled, instead of
all biological agents, protection, and
detection equipment that are adapted
for use in war.
1A613 Armored and Protective
‘‘equipment’’ and Related Commodities
ECCN 1A613 is amended by revising
Items paragraph .c by adding ‘‘specially
designed,’’ which narrows the scope,
but also adding to the list of control
‘‘liners, or comfort pads therefor.’’ This
revision stems from the WA agreement
for Wassenaar Arrangement Munitions
List (WAML) item 13.c, which deleted
the vague term ‘‘components,’’ and
moved the items listed in the id est (i.e.)
that included ‘‘helmet shell, liner and
comfort pads’’ into the main body of the
sentence. WA also agreed to add a Nota
Bene, which this rule adds after Item
paragraph .y.1, to alert people to the fact
that other components and accessories
for helmets may be controlled under
other ECCNs on the CCL or on the
USML. The term ‘‘specially designed’’
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was already in the text of ML 13.c and
for consistency is added to 1A613.c.
1C001 Materials ‘‘specially designed’’
for Use as Absorbers of Electromagnetic
Waves, or Intrinsically Conductive
Polymers
ECCN 1C001 is amended by adding
double quotes around the term ‘‘laser’’
in two places within the Note to
1C001.b to indicate this is a term
defined in Part 772 of the EAR.
1C002 Metal Alloys, Metal Alloy
Powder and Alloyed Materials
ECCN 1C002 is amended by revising
the Note at the top of the Items
paragraph by adding the words
‘‘specially formulated’’ and replacing
the word ‘‘substrates’’ with ‘‘purposes.’’
This revision clarifies what is described
in the Note as not being controlled in
ECCN 1C002, which enhances the
effective control of the items that remain
in this ECCN.
1C006 Fluids and Lubricating
Materials
ECCN 1C006 is amended by removing
and reserving Items paragraph .a,
because the hydraulic fluids specified in
1C006.a are either not in use any longer
or are being phased out because most
hydraulic fluids in use today are
commercially available synthetic oil.
1C008 Non-Fluorinated Polymeric
Substances
ECCN 1C008 is amended by revising
Technical Note 1 at the end of the Items
paragraph to add 1C008.f
(Polybiphenylenethersulphone)
materials to the list of materials to
which ‘glass transition temperature (Tg)’
applies in order to clarify the method of
determining ‘Tg’ for materials specified
by 1C008.f.
1C009 Unprocessed Fluorinated
Compounds
ECCN 1C009 is amended by removing
and reserving paragraph .a (copolymers
of vinylidene fluoride. . .), which no
longer represents militarily critical
materials.
1C608 Energetic Materials and Related
Commodities
ECCN 1C608 is amended by replacing
the double quotes with single quotes
around the term ‘controlled materials’ in
the Related Definitions paragraph
because the term is not defined in
Section 772.1 of the EAR or on the WA
List but the definition is included in the
Related Definitions paragraph. The WA
definition for ‘propellant’ is added to
the Related Definitions paragraph, so
that the definition will be applied as
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applicable to items controlled under
1C608. Single quotes are added around
the term ‘controlled materials’ in Items
paragraphs .c through .h, .j, and .k to
indicate the local definition in the
Related Definitions paragraph. Single
quotes are also added around the terms
‘single base,’ ‘double base,’ ‘triple base,’
‘sheetstock,’ and ‘carpet rolls,’ because
these terms are defined in the Technical
Notes following Items paragraph .a.2.
The Note below Items paragraph .a.2 to
Technical Notes is revised, because
definitions of terms belong in Technical
Notes, while Notes are reserved for
clarifying the scope of controls in the
Items paragraph. Single quotes are
added around the term ‘propellant’ in
Items paragraphs .a and .n, as well as in
the Note and Technical Notes below
Items paragraph .a.2. Double quotes are
added around the term ‘‘pyrotechnic’’ in
Items paragraphs .j and .n to indicate a
definition in Part 772 and for
consistency with the WA. Single quotes
are added around the term ‘mixture’ to
indicate the addition of a Technical
Note at the end of the Items paragraph
that defines the term. CAS numbers are
added to Note 1 and 2 for consistency
with the WA List.
1E001 ‘‘Technology’’
ECCN 1E001 is amended by removing
reference to ‘‘1A001.b and 1A001.c’’ in
the Heading and in the first NS
paragraph in the table of the License
Requirements section because this rule
removes and reserves these paragraphs.
1E002 Other ‘‘technology’’
ECCN 1E002 is amended by adding
double quotes around the term
‘‘aircraft’’ in the Note to 1E002.f to
indicate this is a term defined in Part
772 of the EAR.
Annex to Category 1—List of Explosives
The Annex to Category 1 is amended
by replacing the period with a
semicolon in entry 48, because a new
entry 49 is added. Entry 49 is added to
list ‘‘BTNEN (Bis(2,2,2-trinitroethyl)nitramine) (CAS 19836–28–3).’’
Category 2—Materials Processing
2B001 Machine Tools and Any
Combination Thereof
ECCN 2B001 is amended by revising
Items paragraphs .a, .b.1 and .b.2.a. The
parameters for machine tools for turning
and milling are revised to better align
with the Unidirectional Positioning
Repeatability (UPR) parameter that was
implemented by WA in 2015. Because
UPR value is generally proportional to
the travel length of axis, WA agreed to
set different control values depending
on the travel length of machine tools. In
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addition, Note 2 is added to clarify that
2B001.a does not apply to certain bar
machines (Swissturn), because bar
machines (Swissturn) are one of the
typical examples of machine tools that
are classified as controlled items even
when their positioning control
performances are not as precise as the
other types of controlled machine tools.
2B006 Dimensional Inspection or
Measuring Systems, Equipment, and
‘‘electronic assemblies’’
ECCN 2B006 is amended by revising
the NP Column 1 paragraph in the
License Requirements table because the
revision to Items paragraph .b made by
this rule will make the parameters
inconsistent with the Nuclear Suppliers
Group list. This rule revises Items
paragraph b.1.c in the List of Items
Controlled section to adjust the
performance threshold to be consistent
with the current lithography tool
specification 3B001.f.1. Also, this rule
revises the Note following the
introductory Items paragraph b.1 to
point out that the controls for opticalencoders are found in 2B006.b.1.c.
Double quotes are added around the
term ‘‘laser’’ in the Note to Items
paragraph .b.2 to indicate this is a term
defined in Part 772 of the EAR.
Category 3—Electronics
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3A001
Electronic Items
ECCN 3A001 is amended by revising
the Heading to better articulate the
scope of control in this ECCN. This rule
revises Items paragraph .a.5.a.2 by
increasing the output rate parameter to
500 million words per second for 10 bits
or more but less than 12 bits, based on
the advances in the technology since the
last threshold adjustment. For Items
paragraphs .a.5.a.3 through .a.5.a.5, the
resolution breakout is changed from a
resolution of ‘‘12 bit’’ to ‘‘12 bit or more,
but less than 14 bit,’’ ‘‘more than 12 bit
but equal to or less than 14 bit’’ is
changed to ‘‘14 bit or more, but less than
16 bit,’’ and ‘‘resolution of more than 14
bit’’ is changed to ‘‘resolution of 16 bit
or more.’’ The output rates are also
changed for .a.5.a.4 to ‘‘14 bit or more,
but less than 16 bit’’ from 125 to 250
million words per second and for
.a.5.a.5 ‘‘16 bit or more’’ from 20 to 65
million words per second.
The introductory text to 3A001.b is
amended by replacing the word
‘‘components’’ with ‘‘items’’ to better
describe the scope of this paragraph.
The energy density is revised from ‘‘300
Wh/kg’’ to ‘‘350 Wh/kg’’ for Items
paragraph 3A001.e.1.b ‘‘secondary
cells.’’
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Double quotes are added to the term
‘‘accuracy’’ in Items paragraph 3A001.f
to indicate this term is defined in Part
772 of the EAR, and the ‘‘±’’ before ‘‘1.0
second of arc’’ is deleted, because the
‘‘±’’ symbol made the parameter unclear.
3A002 General Purpose ‘‘electronic
assemblies,’’ Modules and Equipment
ECCN 3A002 is amended by revising
the Heading to better reflect the scope
of the entry.
The License Requirements section is
amended by adding Missile Technology
(MT) controls, because the MT control
for 4A003.e ‘‘Equipment performing
analog-to-digital conversions exceeding
the limits in 3A001.a.5,’’ is moved to
3A002.h. The National Security (NS)
and Anti-terrorism (AT) controls that
apply to 4A003.e are already present in
3A002, as NS and AT apply to the entire
entry of 3A002. The eligibility
paragraphs for License Exceptions LVS
($5,000), GBS and CIV are amended by
adding 3A002.h (unless controlled for
MT), in order to maintain the license
exception eligibility this equipment had
under 4A003.e. ECCN 3A101 is added to
the Related Controls paragraph in the
List of Items Controlled section to
reference the overlapping MT control of
3A002.h. Items paragraph a.5
‘‘waveform digitizers and transient
recorders’’ is removed and reserved,
because the items are now controlled
under the newly added Items paragraph
3A002.h. The Nota Bene under a.5 is
revised to point to the new location of
the control.
Items paragraph 3A002.a.6 ‘‘digital
instrumentation data recorders ...’’ is
amended by revising the description of
the scope to read ‘‘digital data
recorders.’’ ‘‘Using magnetic disk
storage techniques’’ is deleted because it
is replaced by disk or solid-state drive
memory as modern digital data
recorders can use either or both memory
storage technologies. The sample data
rate parameter is deleted and
continuous throughput is increased to
avoid capturing predominantly
commercial items. The phrase
‘‘sustained continuous throughput’’ is
added to clearly distinguish from ‘‘peak
data recording rate.’’ Technical Notes
for continuous throughput rate
(previously included under 3A002.a.5)
are added with the deletion of the term
‘‘mass’’ in Technical Note 3. These
parameters more clearly delineate those
products that are of military concern.
Lastly, Items paragraph 3A002.h
‘‘Electronic assemblies, modules or
equipment that perform analog-todigital conversions,’’ along with specific
parameters, is added to the List of Items
Controlled section in order to
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consolidate where this equipment is
controlled and distinguish it from the
3A002.a.6 ‘‘digital instrumentation data
recorder systems’’ controls.
3A101 Electronic Equipment, Devices,
‘‘parts,’’ and ‘‘components,’’ Other Than
Those Controlled by 3A001
ECCN 3A101 is amended by replacing
the reference to 4A003.e with 3A002.h,
as well as updating the description of
equipment in the Related Controls
paragraph in the List of Items Controlled
section.
3A292 Oscilloscopes and Transient
Recorders
ECCN 3A292 is amended by replacing
the reference to 3A002.a.5 with 3A002.h
in the Heading, because of the new
location of these controls.
3B001 Equipment for the
Manufacturing of Semiconductor
Devices or Materials
ECCN 3B001 is amended by revising
the CIV paragraph in the List Based
License Exceptions section to remove
paragraph .c ‘‘anisotropic plasma dry
etching equipment’’ because WA has
agreed to remove and reserve this
paragraph as a result of a foreign
availability determination.
Items paragraph .e.1 ‘‘interfaces for
wafer input and output’’ in the List of
Items Controlled section is revised by
removing the reference to 3B001.c,
which is removed by this rule, and by
adding references to 3B001.a.2 and a.3
to add specificity.
Technical Note 1 is revised by
removing the word ‘‘etch,’’ after Items
paragraph .e.2, because etch equipment
is deleted from 3B001.c.
Items paragraph .f.2 is corrected by
adding a Note because the Note was
inadvertently removed by last year’s
WA implementation rule.
Items paragraph .f.3, ‘‘lithography
equipment . . . specially designed for
mask making,’’ is revised and Items
paragraph .f.4, ‘‘Equipment designed for
device processing using direct writing
methods,’’ is added in the List of Items
Controlled section to align the feature
size metric for all lithography systems.
3D001 Software
ECCN 3D001 is amended by replacing
the reference to 3A002.g with 3A002.h
because 3D001 is supposed to control
software specially designed for the
development or production of
equipment controlled by 3A001.b to
new 3A002.h The same revision is made
to the National Security (NS) control
paragraph in the License Requirements
table of 3D001. The eligibility paragraph
of License Exception CIV is replaced
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with N/A (Not Applicable), because
3B001.c, which was the only paragraph
in the eligibility paragraph, is no longer
controlled.
3E002 ‘‘Technology’’ . . . Other Than
That Controlled in 3E001 for the
‘‘development’’ or ‘‘production’’ of a
‘‘microprocessor microcircuit,’’ ‘‘microcomputer microcircuit’’ and
Microcontroller Microcircuit Core . . .
ECCN 3E002 is amended by revising
the CIV paragraph in the License
Exception section to remove the Foreign
National Review (FNR) Requirement.
This removal is necessary to conform
the entry with the removal of the FNR
procedure from the EAR as part of this
rule.
The Technical Note in Items
paragraph .a that revises ‘vector
processor unit’ by adding the phrase
‘‘and vector registers of at least 32
elements each’’ to separate short-vectors
from traditional supercomputer vectors.
Items paragraph .c is amended by
changing the phrase ‘‘four 16-bit fixedpoint multiply-accumulate results per
cycle’’ to ‘‘eight 16-bit fixed-point
multiply-accumulate results per cycle’’
because updating the control threshold
for Digital Signal Processors (DSPs) is
consistent with advancements in digital
signal processing technology.
Prior to the publication of this rule, in
the Note to paragraph 3E002.c, the
multimedia extension exemption only
applied to digital signal processors even
though it is also used in other processor
types, such as in x86 processors.
Therefore, in this rule, the exemption
note is extended to apply to all entries
under 3E002; specifically, the reference
to 3E002.c is revised to read 3E002. In
addition, this Note is enumerated as
Note 1 and the existing Notes 1 and 2
are redesignated as Notes 2 and 3.
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Category 4—Computers
Note 3 to Category 4, which is a
reminder that computers and related
equipment that perform functions
specified in Category 5—Part 2 should
be reviewed against Category 5—Part 2,
is removed. This reminder appeared in
several places throughout the Commerce
Control List and is now a new note with
the General Technology and Software
Notes in Supplement No. 2 to part 774.
4A001 Electronic Computers and
Related Equipment
ECCN 4A001 is amended by revising
the Related Controls paragraph in the
List of Items Controlled section to
remove the reminder to consider
Category 5—Part 2 if the equipment
performs or incorporates ‘‘information
security’’ functions as primary
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functions. WA decided to streamline the
list by removing the many occurrences
of this note and having it appear only
with the General Technology and
Software Notes, which in the EAR are
located in Supplement No. 2 to part 774.
4A003 ‘‘Digital Computers,’’
‘‘electronic assemblies,’’ and Related
Equipment Therefor
ECCN 4A003 is amended by removing
and reserving 4A003.e ‘‘Equipment
performing analog-to-digital conversions
exceeding the limits in 3A001.a.5’’ and
adding a Nota Bene to point to the new
location for the control in 3A002.h. The
License Requirements section is revised
by removing the Missile Technology
control, which only applied to 4A003.e.
Reference to 4A003.e is removed from
the List Based License Exceptions
section, specifically GBS, APP and CIV,
and from Note 1 to Items paragraph .c.
Reserved paragraphs .d through .f are
now codified as a range of reserved
paragraphs.
The last listed item, ‘‘Equipment
designed for ‘‘signal processing,’’ in
Note 1 (located at the beginning of the
Items paragraph in the List of Items
Controlled section) is removed as a
conforming change tracking the removal
of 4A003.e.
The ‘‘Adjusted Peak Performance’’
(‘‘APP’’) for ‘‘digital computers’’ is
raised from 8.0 to 12.5 Weighted
TeraFLOPS (WT) in Items paragraph .b
in the List of Items Controlled section.
The Congressional notification
requirement set forth in subsections
1211(d) and (e) of the National Defense
Authorization Act (NDAA) for FY 1998
(Pub. L. 105–85, November 18, 1997,
111 Stat. 1932) provides that the
President must submit a report to
Congress 60 days before adjusting the
composite theoretical performance level
above which exports of digital
computers to Tier 3 countries require a
license. The President sent a report to
Congress on June 1, 2016 that
establishes and provides justification for
the 12.5 WT control level using the APP
formula.
4D001 ‘‘Software’’ and 4E001
‘‘technology’’
ECCNs 4D001 and 4E001 are amended
by removing NP from the Reason for
Control paragraph and the sentence
related to NP controls directly below the
License Requirements table in the
License Requirements section, as these
references erroneously suggest that
digital computer technology or software
are controlled by the Nuclear Suppliers
Group (NSG) for nonproliferation
reasons and consequently require a
license from BIS for Nuclear
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Proliferation (NP) reasons. Digital
computer software and technology
controls are not controlled by the NSG.
The TSR paragraph in the List Based
License Exceptions section is amended
by revising the APP from 2.0 to 12.5 WT
because of technological advances and
in line with changes made elsewhere in
this rule.
The Special Conditions for STA
paragraph is amended by revising the
APP from 2.0 to 12.5 WT because of
technological advances and in line with
changes made elsewhere in this rule.
Items paragraph .b.1 in the List of
Items Controlled section is amended by
revising the APP from 1.0 to 6.0 WT and
in line with changes made elsewhere in
this rule.
Category 5—Part 1—
‘‘Telecommunications’’
Category 5—Part 1 is amended by
removing Nota Bene 2 (N.B.2) at the
beginning of the Category and moving
this Note to the General Technology and
Software Notes in Supplement No. 2 to
part 774.
5A001 Telecommunications Systems,
Equipment, ‘‘components’’ and
‘‘accessories’’
ECCN 5A001.d ‘‘electronically
steerable phased array antennas’’ is
amended by dividing the operation
frequency control parameter into four
ranges and adding two new parameters
‘‘effective radiated power (ERP)’’ and
‘‘effective isotropic radiated power
(EIRP).’’ The purpose of the revision is
to focus or narrow the scope of control
and release from control consumer
‘‘WiGig’’ products for indoor use. These
‘‘WiGig’’ products are used as home
entertainment alternatives for HDMI
cables. Electronically steerable phased
array antennas (ESAs) are used in
consumer products operating in the unlicensed ‘‘60 GHz’’ band (57–64 GHz)
and operate over short distances (∼10 m)
in-room. A typical installation would
allow a laptop computer to send multimedia signals across a living room to an
HD–TV.
5B001 Telecommunication Test,
Inspection and Production Equipment,
‘‘components’’ and ‘‘accessories’’
ECCN 5B001 is amended by removing
and reserving Items paragraph .b.2.b
‘‘performing optical amplification using
Praseodymium Doped Fluoride Fiber
Amplifiers (PDFFA)’’ because PDFFA
are not widely used in the
communications industry due to low
efficiency and compatibility problems
with silica optical fiber-based
communications systems. This rule also
revises Item paragraph .b.4 by raising
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5A002 ‘‘Information security’’
Systems, Equipment and ‘‘components’’
the level for ‘‘radio equipment
employing Quadrature-AmplitudeModulation (QAM) techniques’’ from
256 to 1,024 on the basis of
technological advances in QAM
techniques.
5D001
‘‘Software’’
ECCN 5D001 is amended by revising
Items paragraph .d.4 by raising the level
for radio equipment employing
Quadrature-Amplitude-Modulation
(QAM) techniques’’ from 256 to 1,024
because of technological advances in
QAM techniques.
5E001
‘‘Technology’’
ECCN 5E001 is amended by removing
Items paragraph .c.2.b ‘‘performing
optical amplification using
Praseodymium Doped Fluoride Fiber
Amplifiers (PDFFA)’’ because PDFFA
are not widely used in the
communications industry due to low
efficiency and compatibility problems
with silica optical fiber-based
communications systems. The Note to
Items paragraph .c.2.c is amended by
removing the phrase ‘‘specially
designed’’ because the definition of
‘‘specially designed’’ does not apply to
technology and this removal harmonizes
the CCL with the WA List. This rule also
revises Items paragraph .c.4.a by raising
the level for radio equipment employing
Quadrature-Amplitude-Modulation
(QAM) techniques’’ from 256 to 1,024
on the basis of technological advances
in QAM techniques.
sradovich on DSK3GMQ082PROD with RULES2
Category 5—Part 2—‘‘Information
Security’’
Category 5—Part 2 is amended by
removing and reserving Note 1 and
moving the control status Note to the
General Technology and Software Notes
in Supplement No. 2 to part 774. BIS is
making editorial revisions to the phrase
‘‘Category 5, part 2’’ in Notes 2 and 4 by
changing it read ‘‘Category 5—Part 2.’’
In addition, Note 2 is revised by
changing the phrase ‘‘encryption
products’’ to read ‘‘information
security’’ to make the words consistent
with the section heading. The
introductory text to Note 3 and the
Technical Note to paragraph .b.4 of Note
3 are revised to reference two newly
added ECCNs: 5A003 and 5A004.
Paragraph 1.b in the Note to the
Cryptography Note is amended by
adding a sentence to the end to clarify
that a simple price enquiry is not
considered to be a consultation. An
undesignated section title is added
under the Product Group A title to read
‘‘Cryptographic ‘‘information
security.’’ ’’
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ECCN 5A002 is amended by revising
the Heading to remove the word
‘‘therefor.’’ Related Controls paragraph 2
is removed to correspond with the
revision of ECCNs 5A992 and 5D992
and a new paragraph 2 is added to alert
exporters to a related United States
Munitions List (USML) control for
5A002.d and .e, and Note 3 paragraph
is revised to harmonize with changes in
this rule. The Items paragraph of 5A002
is restructured, including by moving
some of the items to newly added
ECCNs. The EI control is moved to the
License Requirements Table and is
revised to replace the referenced
paragraphs ‘‘.a.1, .a.2, .a.5, .a.6 and .a.9’’
with ‘‘entire entry.’’ The Note in the
beginning of the Items paragraph is
moved to the end of Items paragraph .a
and amended to only pertain to Items
paragraph .a.
5A002.a is amended by adding the
word ‘‘cryptographic’’ before the term
‘‘information security’’ to better describe
the scope of Items paragraph .a. The
Technical Note to 5A002.a is amended
by adding the phrase ‘‘In Category 5—
Part 2’’ to clarify the scope of the
Technical Note. Items paragraph .a.2
‘‘designed or modified to perform
‘cryptanalytic functions’’’ is removed
and reserved because this control is now
located in 5A004.a. A Nota Bene is
added to point to the new location of
this control. Reserved Items paragraph
.a.3 is removed.
The 5A002 exclusion Note is
amended by revising ‘‘5A002’’ to read
‘‘5A002.a’’ in the introductory text. The
sentence stating, ‘‘However, these items
are instead controlled under 5A992.’’ is
removed from the introductory text of
the Note. 5A992.a and .b are removed by
this rule; therefore, items meeting the
exclusion Note are now designated
EAR99. The reference to new ECCNs
5A003 and 5A004 is added to paragraph
(a)(1)(a) of the Technical Note. Many of
the paragraphs in this Note are moved.
See below for a guide to the reordering
of the paragraphs. Paragraph (b) (former
paragraph (d)) of the Technical Note is
amended by removing ‘‘The term’’ and
clarified by adding ‘‘in 5A002 Note b.’’
Paragraph (g) (former paragraph (j))
introductory text is amended by
removing all the references to
paragraphs in 5A002. Paragraph (h)
(former paragraph (k)), is revised by
correcting the format of the reference to
Category 5—Part 2. Paragraph (j)(2)(a)
(former paragraph (m)(2)(a)), is amended
by replacing the word ‘‘to’’ with ‘‘in.’’
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The following is a guide to the
movement of the paragraphs within the
exclusion Note:
(b), which was ‘‘reserved,’’ is now
former paragraph (d)
(c), which was ‘‘reserved,’’ is former
paragraph (e)
(d) is former paragraph (f)
(e) is former paragraph (g)
(f) is former paragraph (i)
(g) is former paragraph (j)
(h) which was ‘‘reserved’’ is former
paragraph (k)
(i) is former paragraph (l)
(j) is former paragraph (m)
(k), (l) and (m) are removed.
Items paragraphs of ECCN 5A002.a.4,
.a.5, .a.6, .a.8 and .a.9 are moved to the
following new locations:
.a.4—5A003.b
.a.5—5A002.e
.a.6—5A002.d
.a.8—5A003.a
.a.9—5A002.c
Items paragraph .a.7, ‘‘Noncryptographic information and
communications technology (ICT)
security systems and devices that have
been evaluated and certified by a
national authority to exceed class EAL–
6 (evaluation assurance level) of the
Common Criteria (CC) or equivalent,’’ is
removed because it is an obsolete
certification.
Items paragraph .b is revised by
removing the phrase ‘‘systems,
equipment and components,’’ because
the Header already states what is
included in the scope of the control.
Category 5—Part 2 is amended by
adding an undesignated title ‘‘noncryptographic information security’’
before newly added ECCN 5A003.
5A003 ‘‘Systems,’’ ‘‘equipment,’’ and
‘‘components,’’ for non-cryptographic
‘‘information security,’’
ECCN 5A003 is added to control items
formerly classified as 5A002.a.8 in
5A003.a and formerly classified as
5A002.a.4 in 5A003.b. The same license
requirements and license exceptions
that applied to those paragraphs are
added to 5A003.
Category 5—Part 2 is amended by
adding an undesignated title ‘‘defeating,
weakening or bypassing information
security’’ before the newly added ECCN
5A004.
5A004 ‘‘Systems,’’ ‘‘equipment,’’ and
‘‘components’’ for Defeating, Weakening
or Bypassing ‘‘information security’’
ECCN 5A004 is added to control items
formerly classified as 5A002.a.2 with no
change to the license requirements and
license exceptions that formerly
applied.
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Category 6—Sensors and Lasers
5B002 ‘‘Information Security’’ test,
inspection, and ‘‘production’’
Equipment
6A001 Acoustic Systems, Equipment,
and ‘‘components’’
ECCN 5B002 is amended by adding
references to ECCNs 5A003 and 5A004
in Items paragraphs .a and .b.
5D002
‘‘Software’’
ECCN 5D002 is amended by moving
the EI controls from the License
Requirements Note to the License
Requirement table in the License
Requirements section. The Related
Controls paragraph 1 is removed to
correspond with the removal of
paragraphs in ECCN 5A992 and 5D992,
and paragraph 2 is revised to harmonize
with other changes to encryption in this
rule. The Note relating to publicly
available encryption software is
removed because this rule makes
publicly available encryption source
code not subject to the EAR after the
notification requirement of § 742.15(b)
has been fulfilled, as well as the
corresponding publicly available
encryption object code software. The EI
controls are also revised by adding new
ECCN 5A004. Items paragraphs .a and
.c.1 are amended by adding new ECCNs
5A003 and 5A004.
5E002
‘‘Technology’’
ECCN 5E002 is amended by moving
EI controls into the License
Requirements table in the License
Requirements section. Additionally,
new ECCN 5A004 is added to the EI
controls and to Note 2 in the License
Requirements Notes in the License
Requirements section. Items paragraph
.a in the List of Items Controlled section
is revised by adding new ECCNs 5A003
and 5A004.
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Other EAR Revisions Corresponding to
the Category 5—Part 2 Restructuring
ECCN 5A004 is added to License
Exception GOV in § 740.11(a)(2)(iii) and
(c)(3)(iii) to maintain the license
exception restriction for items that have
moved from ECCN 5A002 to ECCN
5A004. Despite the movement of ECCN
5A002 items to ECCN 5A003, ECCN
5A003 is not added because it contains
items that are no longer controlled for
EI reasons.
The Entity List, Supplement No. 4 to
part 744, is amended by replacing the
reference ‘‘5D002 or 5A002.’’ with
‘‘5A002, 5A004 or 5D002.’’ in the third
column ‘‘License Requirement,’’ in the
entry ‘‘Corporacion Nacional de
Telecommunicaciones (CNT) . . .’’
under Ecuador.
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ECCN 6A001 is amended by replacing
‘‘positioning accuracy’’ with
‘‘determined position error’’ in Items
paragraphs .a.1.d.2 and .a.1.e.2 in the
List of Items Controlled section because
this term better conveys the identified
performance parameter of this
equipment. Double quotes are added
around the term ‘‘accuracy’’ in Items
paragraphs .a.2.d.1, .b.1.b, and .b.2 in
the List of Items Controlled section to
indicate that this is a term defined in
Part 772 of the EAR. This rule makes an
editorial correction by replacing double
quotes that were inadvertently removed
around the term ‘‘components’’ in the
Heading, introductory text of Items
paragraphs a, a.1, a.1.d, a.2 and the Note
to 6A001.a.2 in the List of Items
Controlled section.
6A002 Optical sensors and equipment,
and ‘‘components’’ Therefor
ECCN 6A002 is amended by adding
paragraph .d ‘‘Thermopile arrays having
less than 5,130 elements’’ to exclusion
Note 2 to 6A002.a.3 in the Items
paragraph of the List of Items Controlled
section. BIS is making this change
because applying the definition of
’microbolometer arrays’ in 6A002.a.3.f
to thermopile arrays leads to the control
of such devices; however, thermopile
arrays would never reach the
performance of microbolometer arrays.
6A003 Cameras, Systems, or
Equipment, and ‘‘components’’ Therefor
ECCN 6A003 is amended by removing
paragraph (3) of the Related Controls
paragraph in the List of Items Controlled
section because the referenced
paragraphs, 8A002.d.1 and .e, are
removed by this rule. Related Controls
paragraphs (4) and (5) are redesignated
as (3) and (4).
6A004 Optical Equipment and
‘‘components’’
ECCN 6A004 is amended by adding
an exclusion Note to Items paragraph
.a.3 in the List of Items Controlled
section for mirrors ‘‘specially designed’’
to direct solar radiation for terrestrial
heliostat installations. Items paragraphs
.d.2.a.3 and .d.2.b are revised by adding
the word ‘‘(better)’’ after the word less
for consistency and clarity, so people
will understand that any measurement
that is less than the specified parameter
means the item is performing at better
than the control level.
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6A005 ‘‘Lasers,’’ ‘‘components’’ and
Optical Equipment
The Technical Note that follows Note
2 to 6A005.a.6.b in the Items paragraph
of the List of Items Controlled section is
amended by replacing the reference
‘‘Note 2.a’’ with ‘‘Note 2 a.2’’ to correct
the reference. Items paragraphs .a.6.a.2
and .b.6.b.2 in the List of Items
Controlled section are amended by
raising the ‘‘average output power’’ from
‘‘10’’ to ‘‘30’’ W and ‘‘10’’ to ‘‘50’’ W.
The main parameter of interest for
industrial pulsed lasers is ‘‘average
output power.’’ A higher average output
power has a positive impact on
productivity (due to higher repetition
rates). For that reason, and in light of
the technological progress in the field of
industrial Laser Materials Processing
(LMP) equipment, the average power is
increased while the parameters ‘‘pulse
energy’’ and ‘‘peak power’’ (which have
a higher relevance for applications of
concern) remain unchanged.
The Note to 6A005.c.1 is moved
below Items paragraph 6A005.c.1.b.
An exclusion Note is added to Items
paragraphs 6A005.d.1.d.1.d and
6A005.d.1.d.2.d to exclude epitaxiallyfabricated monolithic devices.
Double quotes are added around the
term ‘‘laser’’ in Items paragraphs .e.3,
.e.3.c.1, .e.3.c.2, .g.1, .g.2, .g.3 and the
Technical Note at the end of the Items
paragraph to indicate that this is a term
defined in Part 772 of the EAR.
Double quotes are added around the
term ‘‘accuracy’’ in Items paragraph f.3
to indicate that this is a term defined in
Part 772 of the EAR.
6A007 Gravity Meters (gravimeters)
and Gravity Gradiometers
ECCN 6A007 is amended by adding
double quotes around the term
‘‘accuracy,’’ in three places (Items
paragraphs .a, .b.1 and .b.2 in the List
of Items Controlled section) to indicate
that this is a term defined in Part 772
of the EAR.
6A008 Radar Systems, Equipment and
Assemblies
ECCN 6A008 is amended by adding
double quotes around the term
‘‘accuracy’’ in Items paragraph .a.2,
adding double quotes around the term
‘‘lasers’’ in Items paragraph. j.3, and
adding double quotes around the term
‘‘aircraft’’ in Note 2 of the Technical
Notes at the end of the Items paragraph
in the List of Items Controlled section.
These quotes are added to indicate that
the terms are defined in Part 772 of the
EAR.
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Optical Equipment
ECCN 6B004 is amended by revising
Items paragraph 6B004.a to replace the
symbol ‘‘±’’ that precedes 0.1% with the
phrase ‘‘equal to or better than’’ to
clarify that entry.
6B007 Equipment To Produce, Align,
and Calibrate Land Based Gravity
Meters With a Static ‘‘accuracy’’ of
Better Than 0.1 mGal.
ECCN 6B007 is amended by adding
double quotes around the term
‘‘accuracy’’ in the Heading to indicate
that this is a term defined in Part 772
of the EAR.
6C005
‘‘Laser’’ Materials
ECCN 6C005 is amended by adding
double quotes around the term ‘‘laser’’
in Items paragraphs b.1 and b.2 in the
List of Items Controlled section to
indicate that this is a term defined in
Part 772 of the EAR.
6E003
Other ‘‘technology’’
ECCN 6E003 is amended by adding
double quotes around the term
‘‘accuracies’’ in Items paragraph .d to
indicate that the singular form of
‘‘accuracy’’ is a term defined in Part 772
of the EAR and revising the Items
paragraph by moving all the topic
headings out from the subparagraphs
and reserving subparagraphs that do not
have parameters at this time.
Category 7—Navigation and Avionics
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7A003 ‘Inertial measurement
equipment or systems’
ECCN 7A003 is amended by removing
the second paragraph in the Technical
Note at the beginning of the Items
paragraph of the List of Items Controlled
section. Double quotes are added
around the term ‘‘accuracies’’ in Items
paragraph .a; and double quotes are
added around the term ‘‘accuracy’’ in
Items paragraphs .b, .c.1, and .c.2 in the
List of Items Controlled section to
indicate that ‘‘accuracy’’ is a term
defined in Part 772 of the EAR. Single
quotes are replaced by double quotes
around the term Circular Error Probable
in the Items paragraph .a.1 and around
the term’s acronym CEP in Items
paragraphs .a.1, .a.2, .a.3, and .b in the
List of Items Controlled section because
this term and its acronym are added to
the definitions in § 772.1 of the EAR as
part of this rule.
7A004 ‘Star trackers’ and
‘‘components’’ Therefor
ECCN 7A004 is amended by adding
double quotes around the term
‘‘accuracy’’ in the Items paragraph .a in
the List of Items Controlled section to
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indicate that this is a term defined in
Part 772 of the EAR.
7A008 Underwater Sonar Navigation
Systems
ECCN 7A008 is amended by adding
double quotes around the term
‘‘accuracy’’ in the Heading to indicate
that this is a term defined in Part 772
of the EAR.
7B001 Test, Calibration, or Alignment
Equipment
ECCN 7B001 is amended by adding
double quotes around the term
‘‘aircraft’’ in paragraph (1) of the Related
Definitions paragraph in the List of
Items Controlled section to indicate that
this is a term defined in Part 772 of the
EAR.
7B002 Equipment ‘‘specially
designed’’ To Characterize Mirrors for
Ring ‘‘laser’’ Gyros
ECCN 7B002 is amended by adding
double quotes around the term
‘‘accuracy’’ in Items paragraphs .a and .b
of the List of Items Controlled section
because it is a defined term.
7E004 Other ‘‘technology’’
ECCN 7E004 is amended by adding
double quotes around the term
‘‘accuracy’’ in Items paragraph .a.7 and
adding double quotes around the term
‘‘aircraft’’ in the Items paragraphs .b.1,
.b.7.b.4, .b.8.a and .b.8.b to indicate that
these terms are defined in Part 772 of
the EAR. The word ‘‘directional’’ is
replaced by ‘‘direction’’ in the Items
paragraph .c.2 of the List of Items
Controlled section for clarity and
consistent with the term ‘‘circulationcontrolled direction control systems,’’ as
defined in Part 772 of the EAR.
Category 8—Marine
8A001 Submersible Vehicles and
Surface Vessels
ECCN 8A001 is amended by revising
the Related Controls paragraph in the
List of Items Controlled section by
removing reference to Category 5—Part
2 because the applicability of Category
5—Part 2 to other categories is stated in
a new Note in the General Technology
and Software Notes in Supplement No.
2 to part 774. Double quotes are added
around the term ‘‘accuracy’’ in Items
paragraph .e.2 of the List of Items
Controlled section to indicate that this
is a term defined in Part 772 of the EAR.
8A002 Marine Systems, Equipment,
‘‘parts’’ and ‘‘components’’
ECCN 8A002 is amended by removing
reference to 8A002.e.2 from the GBS
and CIV eligibility paragraphs in the
List Based License Exception section
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because 8A002.e is removed and
reserved. Items paragraph .d
‘‘underwater vision systems’’ is revised
by removing equipment specified in d.1
but no longer in use and redesignating
d.2 as .d. Items paragraph .e
‘‘photographic still cameras ‘‘specially
designed’’ or modified for underwater
use below 150 m . . .’’ in the List of
Items Controlled section is removed and
reserved because modern digital
photographic equipment and separate
underwater housings have replaced
underwater film format cameras.
Category 9—Aerospace and Propulsion
9A001 Aero Gas Turbine Engines
ECCN 9A001 is amended by adding
double quotes around the term
‘‘aircraft’’ in paragraph b. of Note 1 to
Items 9A001.a and in Items paragraph .b
in the List of Items Controlled section to
indicate that this is a term defined in
Part 772 of the EAR.
9A004 Space Launch Vehicles and
‘‘spacecraft,’’ ‘‘spacecraft buses,’’
‘‘spacecraft payloads,’’ ‘‘spacecraft’’ OnBoard Systems or Equipment, and
Terrestrial Equipment
ECCN 9A004 is amended by replacing
the reference to ‘‘5A002.a.5, 5A002.a.9’’
with ‘‘5A002.c, 5A002.e’’ in Items
paragraph .d in the List of Items
Controlled section to reflect the
revisions this rule makes to ECCN
5A002.
9A012 Non-Military ‘‘Unmanned
Aerial Vehicles,’’ (‘‘UAVs’’), Unmanned
‘‘airships,’’ Related Equipment and
‘‘components’’
ECCN 9A012 is amended by removing
the exclusion Note for model aircraft or
model ‘‘airships’’ at the end of the Items
paragraph in the List of Items Controlled
section because these commodities are
not within the scope of ECCN 9A012.
9B001 Equipment, Tooling or Fixtures,
‘‘specially designed’’ for Manufacturing
Gas Turbine engine blades, vanes or
‘‘tip shrouds’’
ECCN 9B001 is amended by revising
Items paragraph .b in the List of Items
Controlled section to include combined
cores and shells (moulds) because it is
now possible, through the use of
Additive Manufacturing, to produce a
single shell (mould) containing a core in
position.
9E003 Other ‘‘technology’’
ECCN 9E003 is amended by adding
double quotes around the term
‘‘aircraft’’ in the following five places:
Two places in Related Controls
paragraph (2) in the List of Items
Controlled section; in the Note to
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9E003.h in the List of Items Controlled
section; in Items paragraph .j; and in the
Nota Bene that follows 9E003.j in the
List of Items Controlled section. These
double quotes are added to indicate that
this is a term defined in Part 772 of the
EAR.
Part 748—Applications
Supplement No. 7 to part 748
‘‘Validated End User’’ list is amended
by removing the reference to 3B001.c in
eight Chinese entities, because this
paragraph of ECCN 3B001 is removed by
this rule.
Other changes to part 748 are
described in two separate paragraphs
below in relation to encryption updates
and the removal of the foreign national
review requirement.
Section 774.1 Introduction
An explanation about the use of
Chemical Abstracts Service (CAS)
numbers in the Commerce Control List
is added in new paragraph (e). This
explanation comes from Note 2 of the
Wassenaar Arrangement’s Munitions
List. The information is helpful for
exporters when trying to classify
chemicals on the CCL.
Supplement No. 2 to Part 774 ‘‘General
Technology and Software Notes’’
Supplement No. 2 to part 774
‘‘General Technology and Software
Notes’’ is amended by adding paragraph
3 ‘‘General ‘‘Information Security’’
Note’’ (GISN) to alert the public to
consider Category 5—Part 2 when
classifying information security items or
items with information security
functions.
Supplement No. 6 to Part 774
‘‘Sensitive List’’
Supplement No. 6 to part 774
‘‘Sensitive List’’ is amended by revising
paragraphs (2)(i) ‘‘2D001,’’ (2)(ii)
‘‘2E001,’’ (2)(iii) ‘‘2E002,’’ (4)(ii)
‘‘4D001,’’and (4)(iii) ‘‘4E001’’ to match
the revisions made to corresponding
ECCNs by this rule. These changes will
affect Wassenaar reporting requirements
found in § 743.1.
Part 770—Item Interpretations
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Section 770.2 is amended by making
editorial revisions to paragraph (l)(1),
(l)(2) and (m) to align ECCN references
to revisions made by this rule.
Part 772 Terms and Definitions
(Related to WA agreements)
Section 772.1 is amended by adding
more categories to those associated with
the terms ‘‘accuracy’’ and ‘‘airship.’’ The
term ‘‘Circular Error Probable’’ and its
acronym ‘‘CEP’’ are added to the
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definitions in § 772.1 because the term
and its acronym are used more broadly
than in one ECCN or subparagraph. The
definition of ‘‘cryptography’’ is revised
by moving the definition of ‘‘fixed’’ to
the Technical Notes of this term. The
term ‘‘FADEC’’ is revised by adding the
word ‘‘systems,’’ thus changing the term
to ‘‘FADEC systems.’’ Other revisions to
Part 772 that are not related to WA
agreements are described later in this
Supplementary Information.
The term ‘‘frequency switching time’’
is revised to retain the relative value but
tighten the tolerance from ± 0.05% to ±
0.1 part per million to account for
challenges in making measurements
using the wide tolerance of ± 0.05%.
The revision also applies an absolute
value for frequencies below 1 GHz,
because the 0.1 parts per million metric
necessitates the difficult task of
resolving very small frequency
differences at low frequencies.
Category 7 is removed from the list of
categories where ‘‘Full Authority Digital
Engine Control Systems’’ is used.
The category references for the term
‘‘information security’’ are revised by
removing Cat 4, 5P1 and 8, and adding
a reference to the newly added General
‘‘Information Security’’ Note (GISN).
The term ‘‘laser’’ is revised to more
closely link the amplification process
with the observed coherencies in laser
output.
The term ‘‘lighter-than-air vehicles’’ is
added to § 772.1 because of its use in
ECCNs 2B352, 9A120, and 9A610.
The term ‘‘optical amplification’’ is
removed consistent with its removal
from 5A991.b.5.e, 5B001.b.2.b, and
5E001.c.2.b, due to the term’s
association with a method of
communication that is no longer in use.
The terms ‘‘propellants’’ and
‘‘pyrotechnic(s)’’ are added to § 772.1
because they are used frequently in the
EAR (propellants in 1C608.a and .n and
pyrotechnic(s) in ECCN 1C608.j and .n).
The term ‘‘source code’’ is revised by
adding Category 1 and Category 5—Part
2 to the categories where this term is
used.
This rule removes the term ‘‘system
tracks’’ because it is not used in the
EAR.
Part II—Information Security Update
and Simplification
In conjunction with the restructuring
of Category 5—Part 2 of the CCL that
was agreed upon by WA, BIS is
updating and streamlining information
security sections and policies within the
EAR. Below is a summary of these
updates.
Revised ECCNs (4): 5E002 (Related
Controls), 5A992, 5D992 and 5E992.
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Part 730—General Information
Supplement No. 1 to part 730 is
amended by removing the reference to
740.13(e) for paperwork collection
0694–137 ‘‘License exemptions and
exclusions.’’
Part 734—Scope of the EAR
The Note to § 734.3(a)(4) is amended
by removing the reference to
§ 740.17(b)(4)(ii), which is deleted by
this rule, and replacing the reference
‘‘section 740.17(a)’’ with the reference
‘‘§ 740.17(a)(4),’’ which refers to foreign
products developed with or
incorporating U.S.-origin encryption
source code components or toolkits.
Section 734.3, the Note to paragraphs
(b)(2) and (b)(3) is amended by revising
the citation ‘‘§ 740.13(e)’’ to read
‘‘§ 742.15(b).’’ This change is necessary
because this rule moves the provision in
§ 740.13(e) to § 742.15(b) and then
removes and reserves § 740.13(e).
Section 734.4 is amended by revising
paragraph (b), which set forth special
requirements for certain encryption
items, to harmonize with other changes
made to encryption items throughout
this rule.
Section 734.7, paragraph (b), is
amended by revising the citation
‘‘§ 740.13(e)’’ to ‘‘§ 742.15(b).’’ This
change is necessary because this rule
moves the provision in § 740.13(e) to
§ 742.15(b) and removes and reserves
§ 740.13(e).
Section 734.17, paragraph (b)(2) is
amended by revising the last two
sentences. This change is necessary
because this rule moves the provision in
§ 740.13(e) to § 742.15(b) and removes
and reserves § 740.13(e). In addition,
encryption object code ‘‘software’’ that
corresponds to encryption source code
‘‘software’’ meeting the notification
requirement of § 742.15(b) is now
publicly available, whereas before this
rule it was eligible for License
Exception TSU.
Part 740—License Exceptions
Section 740.13(e) is deleted because
this notification requirement is moved
to newly revised § 742.15(b).
The introductory paragraph of
§ 740.17 is amended to update the
ECCNs that are eligible for License
Exception ENC consistent with the
implementation of the WA agreement to
restructure Category 5—Part 2. There is
no substantive change to eligible items.
The introductory paragraphs of both
§§ 742.15(a)(1) and 740.17 are revised to
state that certain items classified in
Category 5—Part 2 of the Commerce
Control List and described in License
Exception ENC that meet the criteria of
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Note 3 to Category 5—Part 2—i.e., are
mass market encryption items—are
classified under ECCNs 5A992.c and
5D992.c and are no longer subject to
‘‘EI’’ or ‘‘NS’’ controls. The mass market
provisions were previously set forth in
§ 742.15(b), but in this rule are
consolidated into § 740.17 to delete
duplicative text. Country Group E:2 is
added to the introductory paragraph in
two places, as well as
§ 740.17(b)(2)(iv)(B), to correct an
oversight in not adding E:2 when Cuba
was added to Country Group E:2.
New § 740.17(a)(1)(ii) is added to
authorize exports, reexports, and
transfers (in-country) among related
parties for internal use when the parent
company is headquartered in a
Supplement No. 3 to part 740 country
(License Exception ENC Favorable
Treatment Countries). No classification
or reporting is required for such exports,
reexports or transfers (in-country).
New § 740.17(a)(3) is added to
authorize reexports of foreign-made
products developed with or
incorporating U.S. encryption source
code, components or toolkits without
classification by or reporting to BIS
provided that the U.S.-origin encryption
items have previously been classified or
reported and authorized by BIS and the
cryptographic function has not changed.
This provision is moved from
§ 740.17(b)(4)(ii) to place all
authorizations under License Exception
ENC that do not require classification or
self-classification in one paragraph.
Section 740.17(b) is amended to
delete the requirement for an encryption
registration. The encryption registration
requirement, added to the Export
Administration Regulations in 2010, is
being deleted to create a more
streamlined and efficient reporting
processes. Accordingly, references to
the encryption registration requirement
are removed throughout the EAR (e.g.,
parts 738 and 748). Exporters who selfclassify encryption products under
§ 740.17(b)(1) will continue to be
required to submit a self-classification
report on an annual basis. The
requirements for the self-classification
report are moved to § 740.17(e)(3) from
§ 742.15(c). In addition, § 740.17(b) is
amended to provide that if an exporter
obtains a Commodity Classification
request (CCATS) classification from BIS
for a product that is eligible for selfclassification, the product does not need
to be included in the annual selfclassification report. BIS will make
CCATS for products described in
§ 740.17(b)(1) available to the ENC
Encryption Request Coordinator through
the SNAP–R system.
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Section 740.17(b)(2) is amended to
update the performance parameters of
‘‘network infrastructure’’ items. In
paragraph (b)(2)(A)(1), the performance
parameter for aggregate encrypted WAN,
MAN, VPN, backhaul or long-haul
throughput (including communications
through wireless network elements such
as gateways, mobile switches, and
controllers) is updated from greater than
90 Mbps to equal to or greater than 250
Mbps. Paragraph (b)(2)(i)(A)(2), which
set forth a performance parameter for
wire (line), cable or fiber optic WAN,
MAN or VPN single channel input data
rate exceeding 154 Mbps is deleted, as
this parameter is redundant in light of
the aggregate encrypted throughput
parameter in paragraph (b)(2)(A)(1). For
media gateways and other unified
communications (UC) infrastructure,
including Voice-over-Internet Protocol
(VoIP) services, the media encryption
encrypted signaling is raised from more
than 1,000 to 2,500 endpoints in
paragraph (b)(2)(i)(A)(4).
Section 740.17(b)(2) is also amended
to authorize exports, reexports, and
transfers (in-country) of ‘‘network
infrastructure’’ items to ‘‘less sensitive
government end users’’ in all countries
except Country Group E:1 and E:2
countries. A definition of ‘‘less sensitive
government end users’’ is added to part
772. BIS has issued many so-called
‘‘worldwide’’ encryption licensing
arrangements (ELAs) with this scope
and a semi-annual reporting
requirement. Because there is no
country scope difference between the
ELAs and the License Exception ENC
authorization to non-‘‘government end
users,’’ BIS is making such exports,
reexports, and transfers (in-country)
eligible for License Exception ENC.
This rule also adds a Note to
paragraph (b)(2)(i)(A) to add a carve out
for certain types of satellite
infrastructure and to define ‘network
infrastructure.’ The satellite carve out
was necessary because paragraph (b)(2),
which precludes mass market treatment,
was catching these consumer goods. The
definition for ‘network infrastructure’ is
needed to clarify the scope of the
license exception.
This rule adds new paragraph
(b)(2)(i)(H) for items in 5A002.d or .e
and equivalent or related software
therefor classified under 5D002. Such
commodities and software were eligible
for (b)(1) and (b)(3), but are now moved
to (b)(2) because BIS determined that
they warrant a higher level of control.
BIS does not anticipate an increase in
license applications because historically
BIS has not received license
applications for such items.
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Section 740.17(b)(4) is deleted
because it is no longer needed. Section
740.17(b)(4)(i) described products with
short range wireless encryption
functions, most of which have been
decontrolled pursuant to the decontrol
notes in ECCN 5A002 on the Commerce
Control List or pursuant to Note 4 to
Category 5—Part 2 of the Commerce
Control List. Section 740.17(b)(4)(ii) is
moved to § 740.17(a)(4) (see explanation
above for paragraph (a)(4)).
Section 740.17(f), ‘‘Grandfathering,’’
is deleted as it is no longer necessary.
Supplement No. 3 to Part 740 is
amended to add Croatia because it is a
member of the European Union. This
revised list harmonizes with the
European Union’s list of countries that
do not require a license for encryption
items.
Part 742—CCL Based Controls
The introductory paragraph of
§ 742.15(a) is amended to update the
ECCNs that are controlled for EI reasons
consistent with the implementation of
the WA agreement to restructure
Category 5—Part 2. There is no
substantive change to eligible items.
Country Group E:2 is added to
§ 742.15(a)(2) to correct an oversight in
not adding it when Cuba was added to
Country Group E:2. Section 742.15(a) is
also amended to state that mass market
encryption products are now released
from Encryption Item (EI) and National
Security (NS) controls pursuant to
§ 740.17, not § 742.15(b), and to clarify
that encryption license arrangements are
available for exports to all ‘‘government
end users’’ in most countries, including
military end users, now that there is a
defined subset of government end users
(i.e., less sensitive government end
users). The mass market provisions are
deleted in § 742.15(b) and added
(moved) to § 740.17(b) in order to
consolidate these provisions in one
place. In addition, the classification
requirements for mass market
encryption products are moved to
§ 740.17(b). New § 742.15(b) sets forth
the notification requirement when
encryption source code is made publicly
available. The notification requirement
is the same as previously set forth in
§ 740.13(e).
Sections 742.15(c) (Self-classification
reporting) and 742.15(f)
(Grandfathering) are deleted. The selfclassification reporting provisions
formerly in § 742.15(c) have been moved
to § 740.17(e)(3) in order to consolidate
all the mass-market provisions into
§ 740.17. The encryption registration
requirement previously set forth in
§§ 740.17(b) and 742.15(b) is deleted.
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The grandfathering provisions are no
longer necessary.
Supplement No. 5 to part 742 is
deleted because the encryption
registration requirement previously set
forth in §§ 740.17(b) and 742.15(b) is
deleted.
Supplement No. 6 to part 742
‘‘Technical Questionnaire . . .’’ is
amended by revising the title of the
supplement to include ‘‘other
‘‘information security’’ items,’’ as well
as revising the titles to paragraphs (a)
and (b). Most of the revisions to this
supplement are to clarify the
information that must be provided in a
classification request for encryption or
‘‘information security’’ items. This rule
removes reference to the encryption
registration in paragraphs (a)(2) and
(d)(1) because this rule removes the
requirement for encryption registration.
Paragraph (b)(3) is revised for clarity.
Paragraph (b)(7) is the former (b)(10).
Paragraphs (b)(2), (b)(3), and (b)(9) are
revised to clarify the information
request. Paragraph (b)(10) is now
question (7) from the deleted
Supplement No. 5 to part 742.
Paragraph (b)(11) has been updated to
correspond more closely with
§ 740.17(b)(2). Paragraph (b)(12) is
redesignated as (b)(13) and a new
paragraph (b)(12) is added, which
addresses information related to
§ 740.17(b)(3). This rule adds paragraph
(b)(14) to address Internet Protocol
Security (IPsec) capabilities in products.
Supplement No. 8 to part 742 is
amended by revising the introductory
paragraph, introductory text to
paragraph (a), and paragraphs (a)(6) and
(c)(1) to remove references to the
deleted encryption registration
requirement and to harmonize citation
references to track amendments in this
rule. The list of products in paragraph
(a)(6) is revised to more accurately
describe the types of products being
reported. Paragraphs (a)(7) through (12)
are added to include fields that remain
necessary now that Supplement No. 5 is
deleted. Paragraph (b)(2) and (b)(3) are
revised to add six additional fields to
identify the company or person
submitting the report, its address, email,
point of contact, telephone number,
non-U.S. components and non-U.S.
manufacturing locations, and bringing
the total number of fields to twelve.
Paragraph (c)(4) is added to note that
only products self-classified by the
exporter should be reported.
Part 748—Application
This rule removes reference to the
encryption registration and procedures,
and aligns citation and ECCN references
with revisions in this rule in § 748.1(a)
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and (d), § 748.3 title, paragraph (a),
paragraph (d) title and paragraph,
§ 748.7(a) and (d), § 748.8 (r),
§ 748.9(c)(1)(viii), Supplement No. 1 to
part 748 Block 5 paragraph, Supplement
No. 2 paragraph (r), and Supplement
No. 7 ‘‘Validated End User’’ list.
Other changes to Part 748 that relate
to the removal of the foreign national
review submission are described further
down in this Supplementary
Information section. One change to
Supp. No. 6 to part 748 is described
above in relation to a WA agreement.
Part 772—Terms and Definitions
In addition to the revisions to Part 772
related to WA agreements, this rule
amends Part 772 in light of information
security updates and simplification. Part
772 is amended to add definitions of
‘‘less sensitive government end users’’
(as applied to encryption items) and
‘‘more sensitive government end users’’
(as applied to encryption items). BIS
had been using these lists of less and
more sensitive government end users for
purposes of post-shipment reporting
and pre-shipment notification
requirements in encryption licensing
arrangements (ELAs); however, they
were not published in the EAR. These
definitions will be used in § 742.15(a)(2)
license review policy for Encryption
License Arrangements (ELAs) and in
§ 740.17(b)(2)(i) for a specific License
Exception ENC authorization.
In § 772.1 of the EAR, this rule revises
the definition of ‘‘publicly available
encryption software’’ to provide the
updated reference of § 742.15(b) for
notification requirements, instead of
§ 740.13(e) of the EAR.
Category 5—Part 2
The Nota Bene to Note 3
(Cryptography Note) is amended to
remove the reference to the encryption
registration requirement and to add
reference to the self-classification report
because the information that was
previously needed for the encryption
registration will be obtained from the
self-classification report.
5D002 ‘‘Information Security’’
‘‘software’’
This rule makes editorial revisions to
the license requirements for this ECCN.
5E002 ‘‘Information Security’’
‘‘technology’’
This rule makes editorial revisions to
the license requirements for this ECCN.
The last sentence of the Related
Controls note is deleted. Technology
related to equipment excluded from
control under ECCN 5A002 is not
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necessarily controlled under ECCN
5E992.
5A992 Equipment Not Controlled by
5A002
Paragraphs 5A992.a and .b are deleted
because information security,
telecommunication, and information
security equipment, whether or not
containing encryption, and components
therefor will now either be controlled in
the higher level Category 5—Part 2
ECCNs or not at all (i.e., EAR99). The
only items still described in ECCN
5A992 are mass market encryption
items in paragraph 5A992.c.
5D992 ‘‘Information security’’
‘‘software’’ Not Controlled by 5D002
Paragraphs 5D992.a and .b are
deleted. The only items still described
in ECCN 5D992 are mass market
encryption items in 5D992.c. See
explanation for 5A992 above. Some
items previously classified as 5D992.a
or .b may now be classified as 4D993.
You may submit a classification request
to BIS for a free official classification or
self-classify as appropriate.
5E992 ‘‘Information Security’’
‘‘technology’’
ECCN 5E992 is amended by removing
and reserving Items paragraph .a, which
is a consequential change because of the
removal of 5A992.a and .b and 5D992.a
and .b.
A separate companion rule also
published today is revising the license
requirements of twelve entities on the
Entity List to ‘‘all items subject to the
EAR’’ in order to narrow the license
requirement differences between EAR99
and 5A992.a and .b.
The entry for ‘‘Shanghai Huahong
Grace Semiconductor Manufacturing
Corporation’’ on the VEU list is
amended by revising the eligible items,
because some of the items from 5A002
are now in new ECCN 5A004. Therefore,
ECCN 5A004 is added to the list of
eligible items for this entry.
Part III—High Performance Computer
Adjusted Peak Performance (APP)
Related Changes
In conjunction with the raising of APP
numbers in Category 4 by WA
agreements, BIS is updating License
Exception APP.
Section 740.7
License Exception APP
In addition to the revisions connected
with the removal of the Foreign
National Review procedures, License
Exception APP is amended by replacing
the list of twenty-two (22) countries in
paragraph (c)(3)(i) that are eligible to
receive technology and software for
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computers of unlimited Adjusted Peak
Performance (APP) under License
Exception APP with the list of thirty-six
(36) countries in Country Group A:5 in
Supplement No. 1 to part 740 because
these countries are considered most
trusted allies with like-minded export
controls. This adds 14 Computer Tier 1
countries (Argentina, Bulgaria, Croatia,
Czech Republic, Estonia, Hungary,
Iceland, S. Korea, Latvia, Lithuania,
Poland, Romania, Slovakia and
Slovenia) to the list of countries eligible
to receive technology and software
controlled by ECCNs 4D001 and 4E001
specially designed or modified for the
‘‘development,’’ ‘‘production,’’ or ‘‘use’’
of computers, including ‘‘electronic
assemblies’’ and specially designed
components therefor classified in ECCN
4A003 under license exception APP.
For the rest of Computer Tier 1
countries the APP threshold for deemed
exports of ‘‘development’’ and
‘‘production’’ computer technology and
source code is raised from an APP of 25
to 40 Weighted TeraFLOPS (WT) in
paragraph (c)(3)(ii) and the ‘‘use’’
technology and source code is raised
from an APP of 120 to 200 WT in
paragraph (c)(3)(iii).
For Computer Tier 3 countries, the
APP threshold for deemed exports of
‘‘development’’ and ‘‘production’’
technology and source code is raised
from an APP of 12 to 16 WT in
paragraph (d)(3)(i). The APP threshold
for deemed exports of ‘‘use’’ technology
and source code is raised from an APP
of 25 to 32 WT in paragraph (d)(3)(ii).
These APP threshold revisions are
based on technological advancements in
computer technology, as well as license
data on the deemed export of computer
technology.
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Section 734.4 De minimis U.S.
content.
Section 734.4 is amended by revising
paragraph (a)(1) ‘‘items for which there
is no de minimis level’’ to link the first
APP value to ECCN 4A003.b for Tier 3
countries and the second APP value to
4A994.b for Cuba, Iran, North Korea,
Sudan, and Syria. In making this
revision, BIS is directly linking these
ineligibility provisions for computers
with the control levels for computers for
these countries.
§ 743.2 High performance computers:
Post shipment verification reporting.
Section 743.2 is amended by
replacing the reference to the Adjusted
Peak Performance of 8.0 with a
reference to ECCN 4A003.b in the
requirement for post shipment
verification reporting for exports and
reexports of high performance
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computers to Computer Tier 3
destinations. By replacing the APP
number with the reference to 4A003.b,
it will always be directly linked with
the APP control parameter of ECCN
4A003.
Part IV—Removal of the Foreign
National Review (FNR) Procedure
The Foreign National Review (FNR)
procedure was implemented in License
Exceptions CIV and APP (then CTP) in
2004 as a less burdensome procedure for
authorizing deemed exports that would
otherwise require licenses. Since the
procedure was implemented, according
to licensing statistics, BIS has processed
a total of approximately 410
applications, of which 230 were
approved, none were denied, and 180
were returned without action due to
ineligibility or because the FNR was not
required for the deemed export at issue.
These statistics indicate that the
procedure is not used widely by
industry, perhaps because it is not well
understood. In addition, the fact that the
review procedure has not resulted in
any denials in over eight years indicates
that government licensing resources
should be redirected to other more
sensitive licensing issues. Removing
this requirement removes an
unnecessary delay for foreign nationals
to receive technology that is eligible for
deemed exports under License
Exceptions CIV and APP. Therefore, BIS
is removing the FNR procedure from the
EAR so that License Exception CIV and
APP may be utilized for eligible deemed
exports.
License Exception CIV—§ 740.5
This rule removes paragraph (d)
under § 740.5, which is the requirement
under License Exception CIV to submit
an FNR request to BIS for deemed
exports and reexports of 3E002
technology to foreign nationals. The
removal of this paragraph conforms to
the removal of the FNR procedure from
the EAR. This change allows exporters
to utilize License Exception CIV for
deemed exports of eligible 3E002
technology to a foreign national having
a home country included in EAR
Country Group D:1 without having to
submit a FNR request to BIS.
Part 748 Applications (Classification,
Advisory, and License) and
Documentation
Section 748.7 ‘‘Registering for
electronic submission of license
applications and related documents’’ is
amended by removing references to the
FNR requirement for License Exceptions
APP and CIV under paragraphs (a) and
(d). The removal of these words conform
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this provision with the removal of the
FNR procedure from the EAR.
Section 748.8 ‘‘Unique Application
and Submission Requirements’’ is
amended by removing paragraphs (s)
‘‘Foreign National Review Request’’ and
(t) ‘‘Foreign National Support Statement
for deemed exports.’’ Corresponding
paragraphs (s) and (t) are removed from
Supplement No. 2 to part 748 as well.
The removal of these sections and
paragraphs conforms with the removal
of the FNR procedure from the EAR.
Guidelines for foreign national license
applications are found on the BIS Web
site at https://www.bis.doc.gov/
index.php/policy-guidance/deemedexports.
Other changes to Part 748 related to
the removal of the encryption
registration requirement and a WA
agreement are described in two separate
paragraphs in a previous section of this
Supplementary Information section.
Export Administration Act
Since August 21, 2001, the Export
Administration Act of 1979, as
amended, has been in lapse. However,
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
4, 2016, 81 FR 52587 (August 8, 2016),
has continued the EAR in effect under
the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.). 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.
Saving Clause
Shipments of items removed from
license exception eligibility or eligibility
for export, reexport or transfer (incountry) without a license as a result of
this regulatory action that were on dock
for loading, on lighter, laden aboard an
exporting carrier, or en route aboard a
carrier to a port of export, on September
20, 2016, pursuant to actual orders for
exports, reexports and transfers (incountry) to a foreign destination, may
proceed to that destination under the
previous license exception eligibility or
without a license so long as they have
been exports, reexports and transfers
(in-country) before November 21, 2016.
Any such items not actually exported,
reexported and transfered (in-country)
before midnight, on November 21, 2016,
require a license in accordance with this
regulation.
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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, distributive 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,’’ under Executive
Order 12866. Accordingly, the rule has
been reviewed by the Office of
Management and Budget.
2. Notwithstanding any other
provision of law, no person is required
to respond to, nor shall any person be
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
Office of Management and Budget
(OMB) Control Number. This rule
involves two collections of information
subject to the PRA. One of the
collections has been approved by OMB
under control number 0694–0088,
‘‘Multi-Purpose Application,’’ and
carries a burden hour estimate of 58
minutes for a manual or electronic
submission. The other collection has
been approved by OMB under control
number 0694–0106, ‘‘Reporting and
Recordkeeping Requirements under the
Wassenaar Arrangement,’’ and carries a
burden hour estimate of 21 minutes for
a manual or electronic submission. The
collection under control number 0694–
0137 ‘‘License Exemptions and
Exclusions’’ is revised because the
notification requirement for publicly
available software is amended by this
rule. The notification requirement for
publicly available source code software
is moved from License Exception TSU
to § 742.15(b) of the EAR. Therefore, the
burden hours will be moved from one
section to another within 0694–0137 as
a consequence of this rule and citations
and requirements will be updated
within the supporting statement for this
collection upon the next renewal
submission. Send comments regarding
these burden estimates or any other
aspect of these collections of
information, including suggestions for
reducing the burden, to OMB Desk
Officer, New Executive Office Building,
Washington, DC 20503; and to Jasmeet
Seehra, OMB Desk Officer, by email at
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Jasmeet_K._Seehra@omb.eop.gov or by
fax to (202) 395–7285; and to the Office
of Administration, Bureau of Industry
and Security, Department of Commerce,
1401 Constitution Ave. NW., Room
6622, Washington, DC 20230.
3. This rule does not contain policies
with Federalism implications as that
term is defined under Executive Order
13132.
4. The provisions of the
Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed
rulemaking, the opportunity for public
participation, and a 30-day delay in
effective date, are inapplicable because
this regulation involves a military and
foreign affairs function of the United
States (5 U.S.C. 553(a)(1)). Immediate
implementation of these amendments
fulfills the United States’ international
obligation to the Wassenaar
Arrangement on Export Controls for
Conventional Arms and Dual-Use Goods
and Technologies. The Wassenaar
Arrangement contributes to
international security and regional
stability by promoting greater
responsibility in transfers of
conventional arms and dual use goods
and technologies, thus preventing
destabilizing accumulations of such
items. The Wassenaar Arrangement
consists of 41 member countries that act
on a consensus basis and the changes
set forth in this rule implement
agreements reached at the December
2015 plenary session of the WA.
Because the United States is a
significant exporter of the items covered
by this rule, implementation of this rule
is necessary for the WA to achieve its
purpose. Any delay in implementation
will create a disruption in the
movement of affected items globally
because of disharmony between export
control measures implemented by WA
members, resulting in tension between
member countries. Export controls work
best when all countries implement the
same export controls in a timely
manner. If this rulemaking were delayed
to allow for notice and comment and a
30-day delay in effectiveness, it would
prevent the United States from fulfilling
its commitment to the WA in a timely
manner and would injure the credibility
of the United States in this and other
multilateral regimes.
Further, no other law requires that a
notice of proposed rulemaking and an
opportunity for public comment be
given for this final rule. Because a
notice of proposed rulemaking and an
opportunity for public comment are not
required to be given for this rule under
the Administrative Procedure Act or by
any other law, the analytical
requirements of the Regulatory
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Flexibility Act (5 U.S.C. 601 et seq.) are
not applicable. Therefore, this
regulation is issued in final form.
Although there is no formal comment
period, public comments on this
regulation are welcome on a continuing
basis. Comments should be submitted to
Sharron Cook, Office of Exporter
Services, Bureau of Industry and
Security, Department of Commerce,
14th and Pennsylvania Ave. NW., Room
2099, Washington, DC 20230.
List of Subjects
15 CFR Part 730
Administrative practice and
procedure, Advisory committees,
Exports, Reporting and recordkeeping
requirements, Strategic and critical
materials
15 CFR Part 734
Administrative practice and
procedure, Exports, Inventions and
patents, Research Science and
technology.
15 CFR Parts 738, 770 and 772
Exports.
15 CFR Parts 740 and 748
Administrative practice and
procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR part 742
Exports, Terrorism.
15 CFR part 774
Exports, Reporting and recordkeeping
requirements.
Accordingly, Parts 730, 734, 738, 740,
742, 748, 770, 772, and 774 of the
Export Administration Regulations (15
CFR parts 730–774) are amended as
follows:
PART 730—[AMENDED]
1. The authority citation for Part 730
continues to read as follows:
■
Authority: 50 U.S.C. 4601 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. 2151 note;
22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 42
U.S.C. 2139a; 43 U.S.C. 1354; 15 U.S.C.
1824a; 50 U.S.C. 4305; 22 U.S.C. 7201 et seq.;
22 U.S.C. 7210; E.O. 11912, 41 FR 15825, 3
CFR, 1976 Comp., p. 114; E.O. 12002, 42 FR
35623, 3 CFR, 1977 Comp., p. 133; E.O.
12058, 43 FR 20947, 3 CFR, 1978 Comp., p.
179; E.O. 12214, 45 FR 29783, 3 CFR, 1980
Comp., p. 256; E.O. 12851, 58 FR 33181, 3
CFR, 1993 Comp., p. 608; E.O. 12854, 58 FR
36587, 3 CFR, 1993 Comp., p. 179; E.O.
12918, 59 FR 28205, 3 CFR, 1994 Comp., p.
899; 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. 12981, 60 FR
62981, 3 CFR, 1995 Comp., p. 419; E.O.
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13020, 61 FR 54079, 3 CFR, 1996 Comp., p.
219; E.O. 13026, 61 FR 58767, 3 CFR, 1996
Comp., p. 228; E.O. 13099, 63 FR 45167, 3
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; E.O. 13338, 69 FR 26751, 3 CFR, 2004
Comp., p 168; E.O. 13637, 78 FR 16129, 3
CFR, 2014 Comp., p. 223; Notice of
September 18, 2015, 80 FR 57281 (September
22, 2015); Notice of November 12, 2015, 80
FR 70667 (November 13, 2015); Notice of
January 20, 2016, 81 FR 3937 (January 22,
2016); Notice of May 3, 2016, 81 FR 27293
(May 5, 2016); Notice of August 4, 2016, 81
FR 52587 (August 8, 2016).
Supplement No. 1 to Part 730
[Amended]
2. Supplement No. 1 to part 730 is
amended by removing the reference to
‘‘740.13(e)’’ under the ‘‘Reference in the
EAR’’ column for the collection number
0694–0137.
■
PART 734—[AMENDED]
3. The authority citation for Part 734
continues to read as follows:
■
Authority: 50 U.S.C. 4601 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, 78 FR 16129, 3
CFR, 2014 Comp., p. 223; Notice of
November 12, 2015, 80 FR 70667 (November
13, 2015); Notice of August 4, 2016, 81 FR
52587 (August 8, 2016).
4. Section 734.3 is amended by
revising the Note to paragraph (a)(4) and
in the Note to paragraphs (b)(2) and
(b)(3) by removing the citation
‘‘§ 740.13(e)’’ and adding ‘‘§ 742.15(b)’’
in its place.
The revision reads as follows:
■
§ 734.3
*
Items subject to the EAR.
*
*
(a) * * *
(4) * * *
*
*
Note to paragraph (a)(4): Certain foreignmanufactured items developed or produced
from U.S.-origin encryption items exported
pursuant to License Exception ENC are
subject to the EAR. See § 740.17(a) of the
EAR.
*
*
*
*
■ 5. Section 734.4 is amended by
revising paragraphs (a)(1) and (b) to read
as follows:
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*
§ 734.4
De minimis U.S. content.
(a) Items for which there is no de
minimis level. (1) There is no de
minimis level for the export from a
foreign country of a foreign-made
computer with an Adjusted Peak
Performance (APP) exceeding that listed
in ECCN 4A003.b and containing U.S.-
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origin controlled semiconductors (other
than memory circuits) classified under
ECCN 3A001 to Computer Tier 3
destinations; or exceeding an APP listed
in ECCN 4A994.b and containing U.S.origin controlled semiconductors (other
than memory circuits) classified under
ECCN 3A001 or high speed interconnect
devices (ECCN 4A994.j) to Cuba, Iran,
North Korea, Sudan, and Syria.
*
*
*
*
*
(b) Special requirements for certain
encryption items. Non-U.S.-made items
that incorporate U.S.-origin items that
are listed in this paragraph are subject
to the EAR unless they meet the de
minimis level and destination
requirements of paragraph (c) or (d) of
this section and the requirements of this
paragraph.
(1) The U.S.-origin commodities or
software, if controlled under ECCN
5A002, ECCN 5B002, equivalent or
related software therefor classified
under ECCN 5D002, and ‘‘cryptanalytic
items’’ classified under ECCN 5A004 or
5D002, must have been:
(i) Publicly available encryption
source code classified under ECCN
5D002 that has met the notification
requirement of § 742.15(b), see
§ 734.3(b)(3) of the EAR. Such source
code does not have to be counted as
controlled U.S.-origin content in a de
minimis calculation;
(ii) Authorized for License Exception
ENC by BIS after classification pursuant
to § 740.17(b)(3) of the EAR;
(iii) Authorized for License Exception
ENC by BIS after classification pursuant
to § 740.17(b)(2) of the EAR, and the
non-U.S.-made product will not be sent
to any destination in Country Groups
E:1 and E:2 in Supplement No. 1 to part
740 of the EAR; or
(iv) Authorized for License Exception
ENC pursuant to § 740.17(b)(1) of the
EAR.
(2) U.S.-origin encryption items
classified under ECCNs 5A992.c,
5D992.c, or 5E992.b.
Note to paragraph (b): See Supplement No.
2 to this part for de minimis calculation
procedures and reporting requirements.
§ 734.7
[Amended]
6. In § 734.7, paragraph (b) is amended
by revising the citation ‘‘§ 740.13(e)’’ to
read ‘‘§ 742.15(b).’’
■ 7. In § 734.17, paragraph (b)(2) is
amended by revising the last two
sentences to read as follows:
■
§ 734.17 Export of encryption source code
and object code software.
*
*
*
*
*
(b) * * *
(2) * * * See § 742.15(b) of the EAR
for notification requirements for export
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or reexports of encryption source code
‘‘software’’ considered to be publicly
available or published consistent with
the provisions of § 734.3(b)(3). Publicly
available encryption source code
‘‘software’’ and corresponding object
code are not subject to the EAR, when
the encryption source code ‘‘software’’
meets the notification requirements in
§ 742.15(b) of the EAR.
*
*
*
*
*
PART 738—[AMENDED]
8. The authority citation for part 738
continues to read as follows:
■
Authority: 50 U.S.C. 4601 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; 42 U.S.C. 2139a; 43
U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. 4305;
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 4, 2016, 81
FR 52587 (August 8, 2016).
9. In § 738.4, revise paragraph
(a)(2)(ii)(B) to read as follows:
■
§ 738.4 Determining whether a license is
required.
(a) * * *
(2) * * *
(ii) * * *
(B) If no, a license is not required
based on the particular Reason for
Control and destination. Provided that
General Prohibitions Four through Ten
do not apply to your proposed
transaction and the License
Requirement section does not refer you
to any other part of the EAR to
determine license requirements. For
example, any applicable encryption
classification requirements described in
§ 740.17(b) of the EAR must be met for
certain mass market encryption items to
affect your shipment using the symbol
‘‘NLR.’’ Proceed to parts 758 and 762 of
the EAR for information on export
clearance procedures and recordkeeping
requirements. Note that although you
may stop after determining a license is
required based on the first Reason for
Control, it is best to work through each
applicable Reason for Control. A full
analysis of every possible licensing
requirement based on each applicable
Reason for Control is required to
determine the most advantageous
License Exception available for your
particular transaction and, if a license is
required, ascertain the scope of review
conducted by BIS on your license
application.
*
*
*
*
*
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PART 740—[AMENDED]
10. The authority citation for part 740
continues to read as follows:
■
Authority: 50 U.S.C. 4601 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 4, 2016, 81
FR 52587 (August 8, 2016).
§ 740.5
[Amended]
11. Section 740.5 is amended by
removing paragraph (d).
■ 12. Section 740.7 is amended by
revising paragraphs (a), (c)(3), and (d)(3)
and removing paragraph (d)(4).
The revisions read as follows:
■
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§ 740.7
Computers (APP).
(a) Scope—(1) Commodities. License
Exception APP authorizes exports,
reexports and transfers (in-country) of
computers, including ‘‘electronic
assemblies’’ and specially designed
components therefor controlled by
ECCN 4A003 exported or reexported
separately or as part of a system for
consumption in Computer Tier
countries as provided by this section.
When evaluating your computer to
determine License Exception APP
eligibility, use the APP parameter to the
exclusion of other technical parameters
in ECCN 4A003.
(2) Technology and software. License
Exception APP authorizes exports of
technology and software controlled by
ECCNs 4D001 and 4E001 specially
designed or modified for the
‘‘development,’’ ‘‘production,’’ or ‘‘use’’
of computers, including ‘‘electronic
assemblies’’ and specially designed
components therefor classified in ECCN
4A003 to Computer Tier countries as
provided by this section.
*
*
*
*
*
(c) * * *
(3) Eligible technology and software.
(i) Technology and software described
in paragraph (a)(2) of this section for
computers of unlimited APP are eligible
for export, reexport, transfer (incountry) under License Exception APP
to countries listed in Country Group
A:5, see Supplement No. 1 to this part;
and
(ii) ‘‘Development’’ and ‘‘production’’
technology and source code described
in paragraph (a)(2) of this section for
computers with a APP less than or equal
to 40 Weighted TeraFLOPS (WT) are
eligible for deemed exports under
License Exception APP to foreign
nationals of Tier 1 destinations, other
than the destinations that are listed in
paragraph (c)(3)(i) of this section,
subject to the restrictions in paragraph
(b) of this section.
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(iii) ‘‘Use’’ technology and source
code described in paragraph (a)(2) of
this section for computers with a APP
less than or equal to 200 WT are eligible
for deemed exports under License
Exception APP to foreign nationals of
Tier 1 destinations, other than the
destinations that are listed in paragraph
(c)(3)(i) of this section, subject to the
restrictions in paragraph (b) of this
section.
(d) * * *
(3) Eligible technology and source
code. (i) ‘‘Development’’ and
‘‘production’’ technology and source
code described in paragraph (a)(2) of
this section for computers with an APP
less than or equal to 16 Weighted
TeraFLOPs (WT) are eligible for deemed
exports under License Exception APP to
foreign nationals of Tier 3 destinations
as described in paragraph (d)(1) of this
section, subject to the restrictions in
paragraph (b) of this section.
(ii) ‘‘Use’’ technology and source code
described in paragraph (a)(2) of this
section for computers with an APP less
than or equal to 32 WT are eligible for
deemed exports under License
Exception APP to foreign nationals of
Tier 3 destinations as described in
paragraph (d)(1) of this section, subject
to the restrictions in paragraph (b) of
this section.
*
*
*
*
*
■ 13. Section 740.11 is amended by
revising paragraphs (a)(2)(iii) and
(c)(3)(iii) to read as follows:
§ 740.11 Governments, international
organizations, international inspections
under the Chemical Weapons Convention,
and the International Space Station (GOV).
*
*
*
*
*
(a) * * *
(2) * * *
(iii) Encryption items controlled for EI
reasons under ECCNs 5A002, 5A004,
5D002, or 5E002 may not be exported,
reexported, or transferred (in-country)
under this paragraph (a). See § 740.17 of
the EAR (License Exception ENC) for
possible alternative license exception
authorization.
*
*
*
*
*
(c) * * *
(3) * * *
(iii) Encryption items controlled for EI
reasons under ECCNs 5A002, 5A004,
5D002, or 5E002 (see § 740.17 of the
EAR for License Exception ENC);
*
*
*
*
*
§ 740.13
[Amended]
14. Section 740.13 is amended by
removing and reserving paragraph (e).
■ 15. Section 740.17 is revised to read
as follows:
■
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§ 740.17 Encryption Commodities,
Software, and Technology (ENC).
License Exception ENC authorizes
export, reexport, and transfer (incountry) of systems, equipment,
commodities, and components therefor
that are classified under ECCNs 5A002,
5B002, equivalent or related software
and technology therefor classified under
5D002 or 5E002, and ‘‘cryptanalytic
items’’ classified under ECCNs 5A004,
5D002 or 5E002. This License Exception
ENC does not authorize export or
reexport to, transfer (in-country) in, or
provision of any service in any country
listed in Country Groups E:1 or E:2 in
Supplement No. 1 to part 740 of the
EAR, or release of source code or
technology to any national of a country
listed in Country Groups E:1 or E:2.
Reexports and transfers (in-country)
under License Exception ENC are
subject to the criteria set forth in
paragraph (c) of this section. Paragraphs
(b) and (d) of this section set forth
information about classifications
required by this section. Items described
in paragraphs (b)(1) and (b)(3)(i), (ii), or
(iv) of this section that meet the criteria
set forth in Note 3 to Category 5—Part
2 of the Commerce Control List (the
‘‘mass market’’ note) are classified
under ECCN 5A992.c or 5D992.c
following self-classification or
classification by BIS and are no longer
subject to ‘‘EI’’ and ‘‘NS’’ controls.
Paragraph (e) sets forth reporting
required by this section. For items
exported under paragraphs (b)(1),
(b)(3)(i), (ii), or (iv) of this section and
therefore excluded from paragraph (e)
reporting requirements, exporters are
reminded of the recordkeeping
requirements in part 762 of the EAR and
that they may be required to make such
records available upon request. All
classification requests, and reports
submitted to BIS pursuant to this
section for encryption items will be
reviewed by the ENC Encryption
Request Coordinator, Ft. Meade, MD.
(a) No classification request or
reporting required. License Exception
ENC authorizes the export, reexport, or
transfer (in-country) to the end users
and for the end uses set forth in
paragraphs (a)(1) through (3) of this
section, without submission of a
classification request, self-classification
report or sales report to BIS.
(1) Certain exports, reexports,
transfers (in-country) to ‘private sector
end users’—(i) Internal ‘‘development’’
or ‘‘production’’ of new products.
License Exception ENC authorizes
certain exports, reexports, and transfers
(in-country) of items described in
paragraph (a) of this section for the
internal ‘‘development’’ or
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‘‘production’’ of new products by
‘private sector end users,’ wherever
located, that are headquartered in a
country listed in Supplement No. 3 of
this part.
(ii) Certain exports, reexports,
transfers (in-country) to related parties,
not involving ‘‘development’’ or
‘‘production’’ of new products. For
internal end uses among ‘private sector
end users’ other than the
‘‘development’’ or ‘‘production’’ of new
products, License Exception ENC
authorizes exports, reexports, and
transfers (in-country) of non-U.S.-origin
items, described in paragraph (a) of this
section, to ‘private sector end users’
wherever located provided that:
(A) That item became subject to the
EAR after it was produced;
(B) All parties to the transaction are
subsidiaries of the same parent
company headquartered in a country
listed in Supplement No. 3 of this part;
and
(C) The characteristics or capabilities
of the existing item are not enhanced,
unless otherwise authorized by license
or license exception.
country) of non-U.S. products
developed with or incorporating U.S.origin encryption source code,
components or toolkits that are subject
to the EAR, provided that the U.S.origin encryption items have previously
been classified or reported and
authorized by BIS and the cryptographic
functionality has not been changed.
Such products include non-U.S.
developed products that are designed to
operate with U.S. products through a
cryptographic interface.
Note to paragraph (a)(3): This exception
from classification and reporting
requirements does not apply to non-U.S.origin products exported from the United
States.
(b) Classification request or selfclassification report. For products
described in paragraph (b)(1) of this
section that are self-classified by the
exporter, a self-classification report in
accordance with paragraph (e)(3) of this
section is required from specified
exporters, reexporters and transferors;
for products described in paragraph
(b)(1) of this section that are classified
by BIS via a CCATS, a self-classification
Note to paragraph (a)(1): A ‘private sector
report is not required. For products
end user’ is either: An individual who is not
described in paragraphs (b)(2) and (3) of
acting on behalf of any foreign government;
this section, a thirty-day (30-day)
or a commercial firm (including its
classification request is required in
subsidiary and parent firms, and other
accordance with paragraph (d) of this
subsidiaries of the same parent) that is not
wholly owned by, otherwise controlled by or section. An exporter, reexporter, or
acting on behalf of, any foreign government.
transferor may rely on the producer’s
self-classification (for products
(2) Exports, reexports, transfers (incountry) to ‘‘U.S. Subsidiaries.’’ License described in (b)(1), only) or CCATS for
an encryption item eligible for export or
Exception ENC authorizes export,
reexport under License Exception ENC
reexport, and transfer (in-country) of
under paragraph (b)(1), (2), or (3) of this
items described in paragraph (a) of this
section. Exporters are still required to
section to any ‘‘U.S. subsidiary,’’
comply with semi-annual sales
wherever located. License Exception
reporting requirements under paragraph
ENC also authorizes export, reexport,
(e)(1) or (2) of this section, even if
transfer (in-country) of such items by a
relying on a CCATS issued to a
U.S. company and its subsidiaries to
producer for specified encryption items
foreign nationals who are employees,
described in paragraphs (b)(2) and
individual contractors or interns of a
(b)(3)(iii) of this section.
U.S. company or its subsidiaries if the
(1) Immediate authorization. This
items are for internal company use,
paragraph (b)(1) authorizes the exports,
including the ‘‘development’’ or
reexports, and transfers (in-country) of
‘‘production’’ of new products, without
the associated commodities selfprior review by the U.S. Government.
classified under ECCNs 5A002.a or
Note to paragraphs (a)(1) and (2): All items
5B002, and equivalent or related
produced or developed with items exported,
software therefor classified under
reexported, or transferred (in-country) under
5D002, except any such commodities,
paragraphs (a)(1) or (2) of this section are
software, or components described in
subject to the EAR. These items may require
(b)(2) or (3) of this section, subject to
the submission of a classification request
before sale, reexport or transfer to non-‘‘U.S.
submission of a self-classification report
subsidiaries,’’ unless otherwise authorized by in accordance with § 740.17(e)(3) of the
license or license exception.
EAR. Items described in this paragraph
(b)(1) that meet the criteria set forth in
(3) Reexports and transfers (incountry) of non-U.S. products developed Note 3 to Category 5—Part 2 of the
Commerce Control List (the ‘‘mass
with or incorporating U.S.-origin
encryption source code, components, or market’’ note) are classified as ECCN
5A992.c or 5D992.c following selftoolkits. License Exception ENC
authorizes the reexport and transfer (in- classification or classification by BIS
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and are removed from ‘‘EI’’ and ‘‘NS’’
controls.
(2) Classification request required.
Thirty (30) days after the submission of
a classification request with BIS in
accordance with paragraph (d) of this
section and subject to the reporting
requirements in paragraph (e) of this
section, this paragraph under License
Exception ENC authorizes certain
exports, reexports, and transfers (incountry) of the items specified in
paragraph (b)(2) and submitted for
classification.
Note to paragraph (b)(2 introductory text):
Immediately after the classification request is
submitted to BIS in accordance with
paragraph (d) of this section and subject to
the reporting requirements in paragraph (e) of
this section, this paragraph also authorizes
exports, reexports, and transfers (in-country)
of:
1. All submitted encryption items
described in this paragraph (b)(2), except
‘‘cryptanalytic items,’’ to any end user
located or headquartered in a country listed
in Supplement No. 3 to this part;
2. Encryption source code as described in
paragraph (b)(2)(i)(B) to non-‘‘government
end users’’ in any country;
3. ‘‘Cryptanalytic items’’ to non‘‘government end users,’’ only, located or
headquartered in a country listed in
Supplement No. 3 to this part; and
4. Items described in paragraphs (b)(2)(iii)
and (b)(2)(iv)(A) of this section, to specified
destinations and end users.
(i) Cryptographic commodities,
software, and components. License
Exception ENC authorizes exports,
reexports, and transfers (in-country) of
the items in paragraph (a)(i)(A) of this
section to ‘‘less sensitive government
end users’’ and non- ‘‘government end
users’’ located or headquartered in a
country not listed in Supplement No. 3
to this part, and the items in paragraphs
(b)(2)(i)(B) through (H) to non
‘‘government end users’’ located or
headquartered in a country not listed in
Supplement No. 3.
(A) ‘Network Infrastructure.’ ‘Network
infrastructure’ commodities and
software, and components therefor,
meeting any of the following with key
lengths exceeding 80-bits for symmetric
algorithms:
(1) WAN, MAN, VPN, backhaul and
long-haul. Aggregate encrypted WAN,
MAN, VPN, backhaul or long-haul
throughput (including communications
through wireless network elements such
as gateways, mobile switches, and
controllers) equal to or greater than 250
Mbps;
(2) [Reserved]
(3) Satellite infrastructure.
Transmission over satellite at data rates
exceeding 10 Mbps;
(4) Media gateways and other unified
communications (UC) infrastructure,
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including Voice-over-Internet Protocol
(VoIP) services. Media (voice/video/
data) encryption or encrypted signaling
to more than 2,500 endpoints, including
centralized key management therefor; or
(5) Terrestrial wireless infrastructure.
Air interface coverage (e.g., through base
stations, access points to mesh
networks, and bridges) exceeding 1,000
meters, where any of the following
applies:
(i) Maximum transmission data rates
exceeding 10 Mbps (at operating ranges
beyond 1,000 meters); or
(ii) Maximum number of concurrent
full-duplex voice channels exceeding
30;
Notes to paragraph (b)(2)(i)(A):
1. The License Exception ENC eligibility
restrictions of paragraphs (b)(2)(i)(A)(3)
(satellite infrastructure) and (b)(2)(i)(A)(5)
(terrestrial wireless infrastructure) do not
apply to satellite terminals or modems
meeting all of the following:
a. The encryption of data over satellite is
exclusively from the user terminal to the
gateway earth station, and limited to the air
interface; and
b. The items meet the requirements of the
Cryptography Note (Note 3) in Category 5—
Part 2 of the Commerce Control List.
2. ‘Network infrastructure’ (as applied to
encryption items). A ‘network infrastructure’
commodity or software is any ‘‘end item,’’
commodity or ‘‘software’’ for providing one
or more of the following types of
communications:’’
(a) Wide Area Network (WAN);
(b) Metropolitan Area Network (MAN);
(c) Virtual Private Network (VPN);
(d) Satellite;
(e) Digital packet telephony/media (voice,
video, data) over Internet protocol;
(f) Cellular; or
(g) Trunked.
Note 1 to paragraph 2: ‘Network
infrastructure’ end items are typically
operated by, or for, one or more of the
following types of end users:
(1) Medium- or large- sized businesses or
enterprises;
(2) Governments;
(3) Telecommunications service providers;
or
(4) Internet service providers.
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Note 2 to paragraph 2: Commodities,
software, and components for the
‘‘cryptographic activation’’ of a ‘network
infrastructure’ item are also considered
‘network infrastructure’ items.
(B) Certain ‘‘encryption source code.’’
‘‘Encryption source code’’ that is not
publicly available as that term is used
in § 742.15(b) of the EAR;
(C) Customized items. Encryption
software, commodities and components
therefor, where any of the following
applies:
(1) Customized for government end
users or end uses. The item has been
designed, modified, adapted, or
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customized for ‘‘government end
user(s);’’ or
(2) Custom or changeable
cryptography. The cryptographic
functionality of the item has been
designed or modified to customer
specification or can be easily changed
by the user;
(D) Quantum cryptography. ECCN
5A002.c or 5D002 ‘‘quantum
cryptography’’ commodities or software;
(E) [Reserved]
(F) Network penetration tools.
Encryption commodities and software
that provide penetration capabilities
that are capable of attacking, denying,
disrupting or otherwise impairing the
use of cyber infrastructure or networks;
(G) Public safety/first responder radio
(private mobile radio (PMR)). Public
safety/first responder radio (e.g.,
implementing Terrestrial Trunked Radio
(TETRA) and/or Association of PublicSafety Communications Officials
International (APCO) Project 25 (P25)
standards);
(H) Specified cryptographic ultrawideband and ‘‘spread spectrum’’ items.
Encryption commodities and
components therefor, classified under
ECCNs 5A002.d or .e, and equivalent or
related software therefor classified
under ECCN 5D002.
(ii) Cryptanalytic commodities and
software. ‘‘Cryptanalytic items’’
classified in ECCN 5A004 or 5D002 to
non- ‘‘government end users’’ located or
headquartered in countries not listed in
Supplement No. 3 to this part.
(iii) ‘‘Open cryptographic interface’’
items. Items that provide an ‘‘open
cryptographic interface,’’ to any end
user located or headquartered in a
country listed in Supplement No. 3 to
this part.
(iv) Specific encryption technology.
Specific encryption technology as
follows:
(A) Technology for ‘‘non-standard
cryptography.’’ Encryption technology
classified under ECCN 5E002 for ‘‘nonstandard cryptography,’’ to any end user
located or headquartered in a country
listed in Supplement No. 3 to this part;
(B) Other technology. Encryption
technology classified under ECCN
5E002 except technology for
‘‘cryptanalytic items,’’ ‘‘non-standard
cryptography’’ or any ‘‘open
cryptographic interface,’’ to any non‘‘government end user’’ located in a
country not listed in Country Group D:1,
E:1, or E:2 of Supplement No. 1 to part
740 of the EAR.
Note to paragraph (b)(2): Commodities,
components, and software classified under
ECCNs 5A002.b or 5D002.d, for the
‘‘cryptographic activation’’ of commodities or
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software specified by this paragraph (b)(2) are
also controlled under this paragraph (b)(2).
(3) Classification request required for
specified commodities, software, and
components. Thirty (30) days after a
classification request is submitted to BIS
in accordance with paragraph (d) of this
section and subject to the reporting
requirements in paragraph (e) of this
section, this paragraph authorizes
exports, reexports, and transfers (incountry) of the items submitted for
classification, as further described in
this paragraph (b)(3), to any end user,
provided the item does not perform the
functions, or otherwise meet the
specifications, of any item described in
paragraph (b)(2) of this section. Items
described in paragraphs (b)(3)(i), (ii), or
(iv) of this section that meet the criteria
set forth in Note 3 to Category 5—Part
2 of the Commerce Control List (the
‘‘mass market’’ note) are classified
under ECCN 5A992.c or 5D992.c
following classification by BIS.
Note to introductory text of paragraph
(b)(3): Immediately after the classification
request is submitted to BIS in accordance
with paragraph (d) of this section and subject
to the reporting requirements in paragraph (e)
of this section, this paragraph also authorizes
exports, reexports, transfers (in-country) of
the items described in this paragraph (b)(3)
to any end user located or headquartered in
a country listed in Supplement No. 3 to this
part.
(i) ‘‘Components,’’ toolsets, and
toolkits. Specified components
classified under ECCN 5A002.a and
equivalent or related software classified
under ECCN 5D002 not described by
paragraph (b)(2) of this section, as
follows:
(A) Chips, chipsets, electronic
assemblies and field programmable
logic devices;
(B) Cryptographic libraries, modules,
development kits and toolkits, including
for operating systems and cryptographic
service providers (CSPs).
(ii) ‘‘Non-standard cryptography’’ (by
items not otherwise described in
paragraph (b)(2) of this section.)
Encryption commodities, software and
components not described by paragraph
(b)(2) of this section, that provide or
perform ‘‘non-standard cryptography’’
as defined in part 772 of the EAR.
(iii) Advanced network vulnerability
analysis and digital forensics.
Encryption commodities and software
not described by paragraph (b)(2) of this
section, that provide or perform
vulnerability analysis, network
forensics, or computer forensics
functions characterized by any of the
following:
(A) Automated network vulnerability
analysis and response. Automated
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network analysis, visualization, or
packet inspection for profiling network
flow, network user or client behavior, or
network structure/topology and
adapting in real-time to the operating
environment; or
(B) Digital forensics, including
network or computer forensics.
Investigation of data leakage, network
breaches, and other malicious intrusion
activities through triage of captured
digital forensic data for law enforcement
purposes or in a similarly rigorous
evidentiary manner.
(iv) ‘‘Cryptographic activation’’
commodities, components, and
software. Commodities, components,
and software classified under ECCNs
5A002.b or 5D002.d where the product
or cryptographic functionality is not
otherwise described in paragraphs (b)(2)
or (b)(3)(i) of this section.
(c) Reexport and transfer (in-country).
Distributors, resellers or other entities
who are not original manufacturers of
encryption commodities and software
are permitted to use License Exception
ENC only in instances where the
reexport or transfer (in-country) meets
the applicable terms and conditions of
this section. Transfers of encryption
items listed in paragraph (b)(2) of this
section to ‘‘government end users,’’ or
for government end uses, within the
same country are prohibited, unless
otherwise authorized by license or
license exception.
(d) Classification request
procedures—(1) Submission
requirements and instructions. To
submit a classification request to BIS,
you must submit an application to BIS
in accordance with the procedures
described in §§ 748.1 and 748.3 of the
EAR and the instructions in paragraph
(r) of Supplement No. 2 to part 748
‘‘Unique Application and Submission
Requirements,’’ along with other
required information as follows:
(ii) Technical information submission
requirements. For all submissions of
encryption classification requests for
items described under paragraph (b)(2)
or (b)(3) of this section, you must submit
the applicable information described in
paragraphs (a) through (d) of
Supplement No. 6 to part 742 of the
EAR (Technical Questionnaire for
Encryption Items). For items eligible for
self-classification that are submitted to
BIS for classification you may be
required to provide BIS this Supplement
No. 6 to part 742 information on an asneeded basis, upon request by BIS.
(iii) Changes in encryption
functionality following a previous
classification. A new product
encryption classification request (under
paragraphs (b)(2) or (b)(3) of this
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section) is required if a change is made
to the cryptographic functionality (e.g.,
algorithms) or other technical
characteristics affecting License
Exception ENC eligibility (e.g.,
encrypted throughput) of the originally
classified product. However, a new
product classification request is not
required when a change involves: the
subsequent bundling, patches, upgrades
or releases of a product; name changes;
or changes to a previously reviewed
encryption product where the change is
limited to updates of encryption
software components where the product
is otherwise unchanged.
(2) Action by BIS.
(i) [Reserved]
(ii) For items requiring classification
by BIS under paragraphs (b)(2) and (3)
of this section. (A) For classifications
that require a thirty (30-day) waiting
period, if BIS has not, within thirty days
(30 days) from registration in SNAP–R
of your complete classification request,
informed you that your item is not
authorized for License Exception ENC,
you may export, reexport, or transfer
(in-country) under the applicable
provisions of License Exception ENC.
(B) Upon completion of its
classification, BIS will issue a
Commodity Classification Automated
Tracking System (CCATS) to you.
(C) Hold Without Action (HWA) for
classification requests. BIS may hold
your classification request without
action if necessary to obtain additional
information or for any other reason
necessary to ensure an accurate
classification. Time on such ‘‘hold
without action’’ status shall not be
counted towards fulfilling the thirty-day
(30-day) processing period specified in
this paragraph.
(iii) BIS may require you to supply
additional relevant technical
information about your encryption
item(s) or information that pertains to
their eligibility for License Exception
ENC at any time, before or after the
expiration of the thirty-day (30-day)
processing period specified in this
paragraph and in paragraphs (b)(2) and
(3) of this section. If you do not supply
such information within 14 days after
receiving a request for it from BIS, BIS
may return your classification request(s)
without action or otherwise suspend or
revoke your eligibility to use License
Exception ENC for that item(s). At your
request, BIS may grant you up to an
additional 14 days to provide the
requested information. Any request for
such an additional number of days must
be made prior to the date by which the
information was otherwise due to be
provided to BIS, and may be approved
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if BIS concludes that additional time is
necessary.
(e) Reporting requirements—(1)
Semiannual reporting requirement.
Semiannual reporting is required for
exports to all destinations other than
Canada, and for reexports from Canada
for items described under paragraphs
(b)(2) and (b)(3)(iii) of this section.
Certain encryption items and
transactions are excluded from this
reporting requirement, see paragraph
(e)(1)(iii) of this section. For information
about what must be included in the
report and submission requirements, see
paragraphs (e)(1)(i) and (ii) of this
section respectively.
(i) Information required. Exporters
must include for each item, the
Commodity Classification Automated
Tracking System (CCATS) number and
the name of the item(s) exported (or
reexported from Canada), and the
following information in their reports:
(A) Distributors or resellers. For items
exported (or reexported from Canada) to
a distributor or other reseller, including
subsidiaries of U.S. firms, the name and
address of the distributor or reseller, the
item and the quantity exported or
reexported and, if collected by the
exporter as part of the distribution
process, the end user’s name and
address;
(B) Direct sales. For items exported (or
reexported from Canada) through direct
sale, the name and address of the
recipient, the item, and the quantity
exported; or
(C) Foreign manufacturers and
products that use encryption items. For
exports (i.e., from the United States) or
direct transfers (e.g., by a ‘‘U.S.
subsidiary’’ located outside the United
States) of encryption components,
source code, general purpose toolkits,
equipment controlled under ECCN
5B002, technology, or items that provide
an ‘‘open cryptographic interface,’’ to a
foreign developer or manufacturer
headquartered in a country not listed in
Supplement No. 3 to this part when
intended for use in foreign products
developed for commercial sale, the
names and addresses of the
manufacturers using these encryption
items and, if known, when the product
is made available for commercial sale, a
non-proprietary technical description of
the foreign products for which these
encryption items are being used (e.g.,
brochures, other documentation,
descriptions or other identifiers of the
final foreign product; the algorithm and
key lengths used; general programming
interfaces to the product, if known; any
standards or protocols that the foreign
product adheres to; and source code, if
available).
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(ii) Submission requirements. For
exports occurring between January 1
and June 30, a report is due no later
than August 1 of that year. For exports
occurring between July 1 and December
31, a report is due no later than
February 1 the following year. These
reports must be provided in electronic
form. Recommended file formats for
electronic submission include
spreadsheets, tabular text or structured
text. Exporters may request other
reporting arrangements with BIS to
better reflect their business models.
Reports may be sent electronically to
BIS at crypt@bis.doc.gov and to the ENC
Encryption Request Coordinator at enc@
nsa.gov, or disks and CDs containing the
reports may be sent to the following
addresses:
(A) Department of Commerce, Bureau
of Industry and Security, Office of
National Security and Technology
Transfer Controls, 14th Street and
Pennsylvania Ave. NW., Room 2705,
Washington, DC 20230, Attn:
Encryption Reports, and
(B) Attn: ENC Encryption Request
Coordinator, 9800 Savage Road, Suite
6940, Ft. Meade, MD 20755–6000.
(iii) Exclusions from reporting
requirement. Reporting is not required
for the following items and transactions:
(A) [Reserved]
(B) Encryption commodities or
software with a symmetric key length
not exceeding 64 bits;
(C) Encryption items exported (or
reexported from Canada) via free and
anonymous download;
(D) Encryption items from or to a U.S.
bank, financial institution or its
subsidiaries, affiliates, customers or
contractors for banking or financial
operations;
(E) [Reserved]
(F) Foreign products developed by
bundling or compiling of source code.
(2) Key length increases. Reporting is
required for commodities and software
that, after having been classified and
authorized for License Exception ENC
in accordance with paragraphs (b)(2) or
(3) of this section, are modified only to
upgrade the key length used for
confidentiality or key exchange
algorithms. Such items may be
exported, reexported or transferred (incountry) under the previously
authorized provision of License
Exception ENC without a classification
resubmission.
(i) Information required. (A) A
certification that no change to the
encryption functionality has been made
other than to upgrade the key length for
confidentiality or key exchange
algorithms.
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(B) The original Commodity
Classification Automated Tracking
System (CCATS) authorization number
issued by BIS and the date of issuance.
(C) The new key length.
(ii) Submission requirements. (A) The
report must be received by BIS and the
ENC Encryption Request Coordinator
before the export, reexport or transfer
(in-country) of the upgraded product;
and
(B) The report must be emailed to
crypt@bis.doc.gov and enc@nsa.gov.
(3) Self-classification reporting for
certain encryption commodities,
software and components. This
paragraph (e)(3) sets forth requirements
for self-classification reporting to BIS
and the ENC Encryption Request
Coordinator (Ft. Meade, MD) of
encryption commodities, software and
components exported or reexported.
This reporting requirement applies to
commodities and software that meet the
criteria of Note 3 to Category 5—Part 2
of the Commerce Control List (‘‘mass
market’’ note) and are classified under
ECCN 5A992.c or 5D992.c following
self-classification, as well as to
commodities and software that remain
classified in ECCNs 5A002, 5B002 or
5D002 following self-classification.
(i) When to report. Your selfclassification report for applicable
encryption commodities, software and
components exported or reexported
during a calendar year (January 1
through December 31) must be received
by BIS and the ENC Encryption Request
Coordinator no later than February 1 the
following year.
(ii) How to report. Encryption selfclassification reports must be sent to BIS
and the ENC Encryption Request
Coordinator via email or regular mail. In
your submission, specify the timeframe
that your report spans and identify
points of contact to whom questions or
other inquiries pertaining to the report
should be directed. Follow these
instructions for your submissions:
(A) Submissions via email. Submit
your encryption self-classification
report electronically to BIS at cryptsupp8@bis.doc.gov and to the ENC
Encryption Request Coordinator at enc@
nsa.gov, as an attachment to an email.
Identify your email with subject ‘‘selfclassification report.’’
(B) Submissions on disks and CDs.
The self-classification report may be
sent to the following addresses, in lieu
of email:
(1) Department of Commerce, Bureau
of Industry and Security, Office of
National Security and Technology
Transfer Controls, 14th Street and
Pennsylvania Ave. NW., Room 2099B,
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64673
Washington, DC 20230, Attn:
Encryption Reports, and
(2) Attn: ENC Encryption Request
Coordinator, 9800 Savage Road, Suite
6940, Ft. Meade, MD 20755–6000.
(iii) Information to report. Your
encryption self-classification report
must include the information described
in paragraph (a) of Supplement No. 8 to
part 742 for each applicable encryption
commodity, software and component
made eligible for export or reexport
under § 740.17(b)(1) of the EAR. Each
product must be included in a report
only one time. However, if no new
products are made eligible for export or
reexport during a calendar year, you
must send an email to the addresses
listed in paragraph (e)(3)(ii)(A) of this
section stating that nothing has changed
since the previous report.
(iv) File format requirements. The
information described in paragraph (a)
of Supplement No. 8 to part 742 must
be provided to BIS and the ENC
Encryption Request Coordinator in
tabular or spreadsheet form, as an
electronic file in comma separated
values format (.csv) adhering to the
specifications set forth in paragraph (b)
of Supplement No. 8 to part 742.
Supplement No. 3 to Part 740
[Amended]
16. Supplement No. 3 to part 740 is
amended by adding ‘‘Croatia’’ in
alphabetical order.
■
PART 742—[AMENDED]
17. The authority citation for part 742
continues to read as follows:
■
Authority: 50 U.S.C. 4601 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, Public Law 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, 68 FR 26459, 3 CFR,
2004 Comp., p. 320; Notice of November 12,
2015, 80 FR 70667 (November 13, 2015);
Notice of August 4, 2016, 81 FR 52587
(August 8, 2016).
§ 742.10
[Amended]
18. Section 742.10 is amended in
paragraph (a)(2) by removing the phrase
‘‘.5A992, 5D992.b and .c’’ and adding in
its place ‘‘5A992.c, 5D992.c’’.
■ 19. Section 742.15 is amended by
revising paragraphs (a) and (b) and
removing paragraphs (c) and (d).
The revisions read as follows:
■
§ 742.15
*
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(a) Licensing requirements and
policy—(1) Licensing requirements. A
license is required to export or reexport
encryption items (‘‘EI’’) classified under
ECCN 5A002, 5A004, 5D002.a, .c.1 or .d
(for equipment and ‘‘software’’ in
ECCNs 5A002 or 5A004, 5D002.c.1); or
5E002 for ‘‘technology’’ for the
‘‘development,’’ ‘‘production,’’ or ‘‘use’’
of commodities or ‘‘software’’ controlled
for EI reasons in ECCNs 5A002, 5A004
or 5D002, and ‘‘technology’’ classified
under 5E002.b to all destinations,
except Canada. Refer to part 740 of the
EAR, for license exceptions that apply
to certain encryption items, and to
§ 772.1 of the EAR for definitions of
encryption items and terms. Most
encryption items may be exported under
the provisions of License Exception
ENC set forth in § 740.17 of the EAR.
Following classification or selfclassification, items that meet the
criteria of Note 3 to Category 5—Part 2
of the Commerce Control List (the ‘‘mass
market’’ note), are classified ECCN
5A992.c or 5D992.c and are no longer
subject to this Section (see § 740.17 of
the EAR). Before submitting a license
application, please review License
Exception ENC to determine whether
this license exception is available for
your item or transaction. For exports,
reexports, or transfers (in-country) of
encryption items that are not eligible for
a license exception, you must submit an
application to obtain authorization
under a license or an Encryption
Licensing Arrangement.
(2) Licensing policy. Applications will
be reviewed on a case-by-case basis by
BIS, in conjunction with other agencies,
to determine whether the export,
reexport, or transfer (in-country) is
consistent with U.S. national security
and foreign policy interests. Encryption
Licensing Arrangements (ELAs) may be
authorized for exports, reexports, or
transfers (in-country) of unlimited
quantities of encryption commodities
and software described in § 740.17
(b)(2)(i)(A) that have been classified by
BIS to ‘‘more sensitive government end
users,’’ in all destinations, except
countries listed in Country Groups E:1
or E:2 of Supplement No. 1 to part 740.
ELAs for ‘‘more sensitive government
end users’’ may be authorized for
encryption commodities and software
described in § 740.17(b)(2)(ii) through
(iv) under certain circumstances. ELAs
are valid for four years and may require
pre-shipment notification. Applicants
seeking authorization for Encryption
Licensing Arrangements must specify
the sales territory on their license
applications.
(b) Publicly available encryption
source code—(1) Scope and eligibility.
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Subject to the notification requirements
of paragraph (b)(2) of this section,
publicly available (see § 734.3(b)(3) of
the EAR) encryption source code
classified under ECCN 5D002 is not
subject to the EAR. Such source code is
publicly available even if it is subject to
an express agreement for the payment of
a licensing fee or royalty for commercial
production or sale of any product
developed using the source code.
(2) Notification requirement. You
must notify BIS and the ENC Encryption
Request Coordinator via email of the
Internet location (e.g., URL or Internet
address) of the publicly available
encryption source code classified under
ECCN 5D002 or provide each of them a
copy of the publicly available
encryption source code. If you update or
modify the source code, you must also
provide additional copies to each of
them each time the cryptographic
functionality of the source code is
updated or modified. In addition, if you
posted the source code on the Internet,
you must notify BIS and the ENC
Encryption Request Coordinator each
time the Internet location is changed,
but you are not required to notify them
of updates or modifications made to the
encryption source code at the
previously notified location. In all
instances, submit the notification or
copy to crypt@bis.doc.gov and to enc@
nsa.gov.
Supplement No. 5 to Part 742 [Removed
and Reserved]
20. Part 742 is amended by removing
and reserving Supplement No. 5.
■ 21. Supplement No. 6 is amended by:
■ a. Revising the heading of the
Supplement;
■ b. Revising paragraphs (a)
introductory text, (a)(2), (b) introductory
text, (b)(2) and (3), (b)(6) and (7), and
(b)(9) through (12);
■ c. Adding paragraph (b)(13) and (14);
and
■ d. Revising paragraph (d)(1).
The revisions and additions read as
follows:
■
Supplement No. 6 to Part 742—
Technical Questionnaire for Encryption
and Other ‘‘Information Security’’
Items
(a) For all items:
*
*
*
*
*
(2) Indicate whether there have been any
prior classifications of the product(s), if they
are applicable to the current submission. For
products with minor changes in encryption
functionality, you must include a cover sheet
with complete reference to the previous
review (Commodity Classification Automated
Tracking System (CCATS) number, Export
Control Classification Number (ECCN),
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authorization paragraph) along with a clear
description of the changes.
*
*
*
*
*
(b) For classification requests and other
submissions, provide the following
information:
*
*
*
*
*
(2) Describe how encryption keys are
generated or managed by your product,
including algorithms and modulus sizes
supported.
(3) Describe whether the products
incorporate or use ‘‘non-standard
cryptography’’ defined as incorporating or
using proprietary, unpublished cryptographic
functionality, including encryption
algorithms or protocols that have not been
adopted or approved by a duly recognized
international standards body. Provide a
textual description and the source code of the
algorithm.
*
*
*
*
*
(6) State all communication protocols (e.g.,
X.25, Telnet, TCP, IEEE 802.11, IEEE 802.16,
SIP . . .) and cryptographic protocols and
methods (e.g., SSL, TLS, SSH, IPSEC, IKE,
SRTP, ECC, MD5, SHA, X.509, PKCS
standards . . .), including application
programming interfaces (APIs), that are
supported and describe how they are used.
(7) State how the product is written to
preclude user modification of the encryption
algorithms, key management and key space.
*
*
*
*
*
(9) Identify the version(s) and type(s) of
compilers, runtime interpreters or code
assemblers used, as applicable.
(10) With respect to your company’s
encryption products, are any of the products
(or its encryption components) manufactured
outside the United States? If yes, provide
manufacturing locations (city and country).
(11) See § 740.17(b)(2) of the EAR. Describe
whether the item meets any of the
§ 740.17(b)(2) criteria. Provide a comparison
of your item against the criteria listed in each
paragraph of § 740.17(b)(2). Give specific data
for each of the parameters listed, as
applicable (e.g., maximum aggregate
encrypted throughput, maximum number of
encrypted endpoints, maximum satellite or
terrestrial wireless transmission rates,
terrestrial wireless operating range,
customized cryptography, network
penetration capability, cryptanalytic
capability and ‘‘non-standard
cryptography’’).
(12) See § 740.17(b)(3) of the EAR. Describe
whether the product meets any of the criteria
described under each of the paragraphs in
§ 740.17(b)(3) (e.g., chip, chipset, electronic
assembly, programmable logic device,
cryptographic library, cryptographic
development kit, ‘‘non-standard
cryptography,’’ digital forensics, and
‘‘cryptographic activation’’).
(13) See § 740.17(b)(2)(iii) of the EAR. For
products which incorporate an ‘‘open
cryptographic interface’’ as defined in part
772 of the EAR, describe the cryptographic
interface.
(14) For products with IPsec capabilities:
(i) Please describe your product’s
implementation of IKE vendor IDs, including
vendor specific and capability IDs; and
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(ii) Please specify which version of IKE you
use (IKEv1 or IKEv2).
*
*
*
*
*
(d) * * *
(1) If applicable, reference the executable
(object code) product that was previously
classified by BIS;
*
*
*
*
*
22. Supplement No. 8 to part 742 is
amended by:
■ a. Revising the introductory text;
■ b. Revising paragraphs (a)
introductory text, (a)(5) introductory
text, and (a)(6);
■ c. Adding paragraphs (a)(7) through
(12);
■ d. Revising paragraphs (b)(2) and (3)
and (c)(1); and
■ e. Adding paragraph (c)(4).
The revisions and additions read as
follows:
■
Supplement No. 8 to Part 742—SelfClassification Report for Encryption
Items
This supplement provides certain
instructions and requirements for selfclassification reporting to BIS and the ENC
Encryption Request Coordinator (Ft. Meade,
MD) of encryption commodities, software
and components exported or reexported
pursuant to § 740.17(b)(1) of the EAR. See
§ 740.17(e)(3) of the EAR for additional
instructions and requirements pertaining to
this supplement, including when to report
and how to report.
(a) Information to report. The following
information is required in the file format as
described in paragraph (b) of this
supplement, for each encryption item subject
to the requirements of this supplement and
§§ 740.17(b)(1) and 740.17(e)(3) of the EAR:
*
*
*
*
*
(5) Encryption authorization type
identifier, selected from one of the following,
which denote eligibility under License
Exception ENC § 740.17(b)(1):
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*
*
*
*
*
(6) Item type descriptor, selected from one
of the following:
(i) Access point;
(ii) Cellular;
(iii) Computer or computing platforms;
(iv) Computer forensics;
(v) Cryptographic accelerator;
(vi) Data backup and recovery;
(vii) Database;
(viii) Disk/drive encryption;
(ix) Distributed computing;
(x) Email communications;
(xi) Fax communications;
(xii) File encryption;
(xiii) Firewall;
(xiv) Gateway;
(xv) Intrusion detection;
(xvi) Identity management;
(xvii) Key exchange;
(xviii) Key management;
(xix) Key storage;
(xx) Link encryption;
(xxi) Local area networking (LAN);
(xxii) Metropolitan area networking
(MAN);
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(xxiii) Mobility and mobile applications
n.e.s.;
(xxiv) Modem;
(xxv) Multimedia n.e.s.;
(xxvi) Network convergence or
infrastructure n.e.s.;
(xxvii) Network forensics;
(xxviii) Network intelligence;
(xxix) Network or systems management
(OAM/OAM&P);
(xxx) Network security monitoring;
(xxxi) Network vulnerability and
penetration testing;
(xxxii) Operating system;
(xxxiii) Optical networking;
(xxxiv) Radio communications;
(xxxv) Router;
(xxxvi) Satellite communications;
(xxxvii) Short range wireless n.e.s.;
(xxxviii) Storage Area Networking (SAN);
(xxxix) 3G/4G/5G/LTE/WiMAX;
(xl) Trusted computing;
(xli) Videoconferencing;
(xlii) Virtual private networking (VPN);
(xliii) Voice communications n.e.s.;
(xliv) Voice over Internet Protocol (VoIP);
(xlv) Wide Area Networking (WAN);
(xlvi) Wireless Local Area Networking
(WLAN);
(xlvii) Wireless Personal Area Networking
(WPAN);
(xlviii) Test equipment n.e.s.; or
(xlix) Other (please specify).
(7) Name of company or individual
submitting the report (50 characters or less).
(8) Telephone number (50 characters or
less).
(9) Email address (50 characters or less).
(10) Mailing address (50 characters or less).
(11) With respect to your company’s
encryption products, do they incorporate
encryption components produced or
furnished by non-U.S. sources or vendors?
Enter ‘YES’, ‘NO’, or if necessary, ‘N/A’ (250
characters or less).
(12) With respect to your company’s
encryption products, are any of them
manufactured in non-U.S. locations?’’ If yes,
list the non-U.S. manufacturing locations by
city and country. If necessary, enter ‘NONE’
or ‘N/A’ (250 characters or less).
(b) * * *
(2) Each line of your encryption selfclassification report (.csv file) must consist of
twelve entries as further described in this
supplement.
(3) The first line of the .csv file must
consist of the following twelve entries (i.e.,
match the following) without alteration or
variation: PRODUCT NAME, MODEL
NUMBER, MANUFACTURER, ECCN,
AUTHORIZATION TYPE, ITEM TYPE,
SUBMITTER NAME, TELEPHONE NUMBER,
E-MAIL ADDRESS, MAILING ADDRESS,
NON-U.S. COMPONENTS, NON-U.S.
MANUFACTURING LOCATIONS.
Note to paragraph (b)(3): These first twelve
entries (i.e., first row) of an encryption selfclassification report in .csv format
correspond to the twelve column headers of
a spreadsheet data file. The responses
provided under column headers 7 through 12
(SUBMITTER NAME through NON-U.S.
MANUFACTURING LOCATIONS) relate to
the company as a whole, and thus should be
entered the same for each product (i.e., only
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64675
one point of contact, one ‘YES’ or ‘NO’
answer to whether any of the reported
products incorporate non-U.S. sourced
encryption components, and one list of nonU.S. manufacturing locations, is required for
the report). However, even though the
information is the same for each product,
please duplicate this information into each
row of the spreadsheet, leaving no entry
blank, so each product has the same
identifying company information.
*
*
*
*
*
(c) Other instructions. (1) The information
provided in accordance with this supplement
and §§ 740.17(b)(1) and 740.17(e)(3) of the
EAR must identify product offerings as they
are typically distinguished in inventory,
catalogs, marketing brochures and other
promotional materials.
*
*
*
*
*
(4) Only products self-classified by the
exporter or reexporter must be reported.
Products submitted for classification by the
Bureau of Industry and Security for which a
CCATS is issued do not need to be reported.
PART 743—[AMENDED]
23. The authority citation for part 743
continues to read as follows:
■
Authority: 50 U.S.C. 4601 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025,
3 CFR, 2001 Comp., p. 783; E.O. 13637, 78
FR 16129, 3 CFR, 2014 Comp., p. 223; 78 FR
16129; Notice of August 4, 2016, 81 FR 52587
(August 8, 2016).
24. Section 743.2 is amended by
revising paragraph (b) to read as follows:
■
§ 743.2 High performance computers: Post
shipment verification reporting.
*
*
*
*
*
(b) Requirement. Exporters must file
post-shipment reports and keep records
in accordance with recordkeeping
requirements in part 762 of the EAR for
high performance computer exports to
destinations in Computer Tier 3, as well
as, exports of commodities used to
enhance computers previously exported
or reexported to Computer Tier 3
destinations, where the ‘‘Adjusted Peak
Performance’’ (‘‘APP’’) is greater than
that listed in ECCN 4A003.b in the
Commerce Control List, Supplement No.
1 to part 774 of the EAR.
*
*
*
*
*
PART 744—[AMENDED]
25. The authority citation for part 744
continues to read as follows:
■
Authority: 50 U.S.C. 4601 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 CFR, 1998 Comp., p.
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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
September 18, 2015, 80 FR 57281 (September
22, 2015); Notice of November 12, 2015, 80
FR 70667 (November 13, 2015); Notice of
January 20, 2016, 81 FR 3937 (January 22,
2016); Notice of August 4, 2016, 81 FR 52587
(August 8, 2016).
Facsimiles or reproductions are not
acceptable.
■ 29. Section 748.3 is amended by
revising the section heading, the last
sentence in paragraph (a), and
paragraph (d) to read as follows:
Supplement No. 4 to Part 744
[Amended]
■ 26. Supplement No. 4 to part 744 is
amended by removing the reference
‘‘5D002 or 5A002.’’ and adding in its
place ‘‘5A002, 5A004 or 5D002.’’ in the
third column ‘‘License Requirement,’’ in
the entry for Ecuador.
(a) * * * The encryption provisions
in the EAR require the submission of a
classification request in accordance
with § 740.17(d) of the EAR in order for
certain items to be eligible for export
and reexport under License Exception
ENC (see § 740.17 of the EAR) or to be
released from ‘‘EI’’ controls (see
§§ 740.17(b)(2) and 740.17(b)(3) of the
EAR).
(d) Classification requests for
encryption items. A classification
request associated with encryption
items transferred from the U.S.
Munitions List consistent with
Executive Order 13026 of November 15,
1996 (3 CFR, 1996 Comp., p. 228) and
pursuant to the Presidential
Memorandum of that date may be
required to determine eligibility under
License Exception ENC or for release
from ‘‘EI’’ controls. Refer to Supplement
No. 6 to part 742 of the EAR for a
complete list of technical information
that is required for encryption
classification requests. Refer to
§ 740.17(e)(3) and Supplement No. 8 to
part 742 of the EAR for information that
is required to be submitted in a selfclassification report. Refer to § 740.17(b)
of the EAR for instructions regarding
mass market encryption commodities
and software, including selfclassifications and classification
requests. Refer to § 740.17 of the EAR
for the provisions of License Exception
ENC, including encryption selfclassifications, classification requests
and sales reporting. All classification
requests, notifications and reports
submitted to BIS pursuant to §§ 740.17
and 742.15(b) of the EAR will be
reviewed by the ENC Encryption
Request Coordinator, Ft. Meade, MD.
*
*
*
*
*
■ 30. Section 748.7 is amended by
revising paragraphs (a) and (d) to read
as follows:
PART 748—[AMENDED]
27. The authority citation for part 748
continues to read as follows:
■
Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.
1701 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
4, 2016, 81 FR 52587 (August 8, 2016).
28. Section 748.1 is amended by
revising paragraphs (a) and (d)
introductory text to read as follows:
■
sradovich on DSK3GMQ082PROD with RULES2
§ 748.1
General provisions.
(a) Scope. In this part, references to
the Export Administration Regulations
or EAR are references to 15 CFR chapter
VII, subchapter C. The provisions of this
part involve requests for classifications
and advisory opinions, export license
applications, reexport license
applications, and certain license
exception notices subject to the EAR.
All terms, conditions, provisions, and
instructions, including the applicant
and consignee certifications, contained
in electronic or paper form(s) are
incorporated as part of the EAR. For the
purposes of this part, the term
‘‘application’’ refers to both electronic
applications and the Form BIS–748P:
Multipurpose Application.
*
*
*
*
*
(d) Electronic filing required. All
export and reexport license applications
(other than Special Iraq Reconstruction
License applications), License
Exception AGR notifications, requests to
authorize use of License Exception STA
for ‘‘600 series’’ end items (which are
currently submitted as export license
applications) and classification requests
and their accompanying documents
must be filed via BIS’s Simplified
Network Application Processing system
(SNAP–R), unless BIS authorizes
submission via the paper forms BIS
748–P (Multipurpose Application
Form), BIS–748P–A (Item Appendix)
and BIS–748P–B, (End-User Appendix).
Only original paper forms may be used.
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§ 748.3 Classification requests and
advisory opinions.
§ 748.7 Registering for electronic
submission of license applications and
related documents.
(a) Scope. This section describes the
procedures for registering to submit
electronic documents to BIS. The
procedures in this section apply to
submission of export and reexport
license applications (other than Special
Iraq Reconstruction Licenses),
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Fmt 4701
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classification requests, and License
Exception AGR notifications.
*
*
*
*
*
(d) Role of individual users. An
individual user may submit to BIS
export and reexport license applications
(other than Special Iraq Reconstruction
Licenses), classification requests, and
License Exception AGR notifications.
*
*
*
*
*
§ 748.8
[Amended]
31. Section 748.8 is amended in
paragraph (r) by removing the phrase
‘‘and encryption registrations’’ and
removing and reserving paragraphs (s)
and (t).
■ 32. Section 748.9 is amended by
revising paragraph (c)(1)(viii) to read as
follows:
■
§ 748.9 Support documents for evaluation
of foreign parties in license applications.
*
*
*
*
*
(c) * * *
(1) * * *
(viii) The license application is
submitted for encryption commodities
controlled under ECCN 5A002, 5A004
or 5B002.
*
*
*
*
*
■ 33. Supplement No. 1 to Part 748 is
amended by revising the Block 5
paragraph to read as follows:
Supplement No. 1 to Part 748—Bis–
748P, Bis–748P–A: Item Appendix, and
Bis–748P–B: End-User Appendix;
Multipurpose Application Instructions
*
*
*
*
*
Block 5: Type of Application. Export. If the
items are located within the United States,
and you wish to export those items, mark the
Box labeled ‘‘Export’’ with an (X). Reexport.
If the items are located outside the United
States, mark the Box labeled ‘‘Reexport’’ with
an (X).
Classification. If you are requesting BIS to
classify your item against the Commerce
Control List (CCL), mark the Box labeled
‘‘Classification Request’’ with an (X). If you
are submitting a License Exception STA
eligibility request pursuant to § 740.20(g),
mark the box labeled ‘‘Export’’ with an (X)
and then proceed to Block 6 of this
supplement for instructions specific to such
requests.
*
*
*
*
*
34. Supplement No. 2 to part 748 is
amended by:
■ a. Revising paragraph (r) introductory
text;
■ b. Removing and reserving paragraph
(r)(1);
■ c. Revising paragraph (r)(2)(ii)(B)(2);
■ d. Removing paragraph (r)(2)(iii); and
■ e. Removing and reserving paragraphs
(s) and (t).
The revisions read as follows:
■
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Supplement No. 2 to Part 748—Unique
Application and Submission
Requirements
*
*
*
*
*
(r) Encryption classification requests.
Failure to follow the instructions in this
paragraph may delay consideration of your
encryption classification request.
*
*
*
*
*
(2) * * *
(ii) * * *
(B) * * *
(2) ‘‘Mass market encryption’’ if you are
submitting an encryption classification
request for certain mass market encryption
items (§ 740.17(b) of the EAR).
*
*
*
*
PART 770—[AMENDED]
38. The authority citation for part 770
continues to read as follows:
■
*
Supplement No. 7 to Part 748
[Amended]
35. Supplement No. 7 to part 748 is
amended by removing the reference to
3B001.c in the third column ‘‘Eligible
items (by ECCN),’’ in the following
entries under China (People’s Republic
of):
■ a. Advanced Micro-Fabrication
Equipment, Inc., China (two places);
■ b. Applied Materials (China), Inc., in
destinations identified by both one
asterisk (*) and two asterisks (**) (two
places)
■ c. Lam Research Service Co., Ltd, in
Destinations Identified by both a single
asterisk (*), (in two places) and by two
asterisks (**), (two places)
■ d. Samsung China Semiconductor Co.
Ltd;
■ e. Semiconductor Manufacturing
International Corporation;
■ f. Shanghai Huahong Grace
Semiconductor Manufacturing
Corporation;
■ g. SK hynix Semiconductor (China)
Ltd; and
■ h. SK hynix Semiconductor (Wuxi)
Ltd.
■ 36. Supplement No. 7 to part 748 is
further amended by removing the
phrase ‘‘ECCN 5A002 that have been
classified by BIS as eligible for License
Exception ENC under paragraph (b)(2)
or (b)(3) of Section 740.17 of the EAR,
or classified by BIS as a mass market
item under paragraph (b)(3) of Section
742.15 of the EAR).’’ and adding in its
place ‘‘ECCN 5A002 that have been
classified by BIS as eligible for License
Exception ENC under paragraph (b)(2)
or (3) of § 740.17 of the EAR).’’ for
‘‘Semiconductor Manufacturing
International Corporation’’ under China
(People’s Republic of).
■ 37. Supplement No. 7 to part 748 is
further amended by removing ‘‘(limited
to production technology for integrated
circuits controlled by ECCNs 5A002 or
5A992 that have been successfully
reviewed under the encryption review
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■
VerDate Sep<11>2014
18:04 Sep 19, 2016
process specified in Sections
740.17(b)(2) or 740.17(b)(3) and 742.15
of the EAR)’’ and adding in its place
‘‘(controlled by ECCNs 5A002, 5A004,
or 5A992 that have been successfully
reviewed under the encryption review
process specified in Sections
740.17(b)(2) or 740.17(b)(3) of the EAR)’’
in the third column ‘‘Eligible items (by
ECCN)’’ for ‘‘Shanghai Huahong Grace
Semiconductor Manufacturing
Corporation’’ under China (People’s
Republic of).
Jkt 238001
Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C.
1701 et seq.; E.O. 13222, 66 FR 44025, 3 CFR,
2001 Comp., p. 783; Notice of August 4,
2016, 81 FR 52587 (August 8, 2016).
39. Section 770.2 is amended by
revising paragraphs (l) and (m) to read
as follows:
■
§ 770.2
*
*
*
*
(l) Interpretation 12: Computers. (1)
Digital computers or computer systems
classified under ECCN 4A003.b or .c,
that qualify for ‘‘No License Required’’
(NLR) must be evaluated on the basis of
Adjusted Peak Performance (APP) alone,
to the exclusion of all other technical
parameters. Digital computers or
computer systems classified under
ECCN 4A003.b or .c that qualify for
License Exception APP must be
evaluated on the basis of APP, to the
exclusion of all other technical
parameters. Assemblies performing
analog-to-digital conversions are
evaluated under Category 3—
Electronics, ECCN 3A002.h.
(2) Related equipment classified
under ECCN 4A003.g may be exported
or reexported under License Exceptions
GBS or CIV. When related equipment is
exported or reexported as part of a
computer system, NLR or License
Exception APP is available for the
computer system and the related
equipment, as appropriate.
*
*
*
*
*
(m) Interpretation 13: Encryption
commodities and software controlled for
EI reasons. Encryption commodities and
software controlled for EI reasons under
ECCNs 5A002, 5A004 and 5D002 may
be pre-loaded on a laptop, handheld
device or other computer or equipment
and exported under the tools of trade
provision of License Exception TMP or
the personal use exemption under
License Exception BAG, subject to the
terms and conditions of such License
Exceptions. Neither License Exception
TMP nor License Exception BAG
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contains a reporting requirement. Like
other ‘‘information security’’
‘‘software,’’ components, ‘‘electronic
assemblies’’ or modules, the control
status of encryption commodities and
software is determined in Category 5—
Part 2 even if they are bundled,
commingled or incorporated in a
computer or other equipment. However,
commodities and software specially
designed for medical end use that
incorporate an item in Category 5—Part
2 are not controlled in Category 5—Part
2. See paragraph (a) of Supplement No.
3 to part 774 (Statements of
Understanding) of the EAR.
PART 772—[AMENDED]
40. The authority citation 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
4, 2016, 81 FR 52587 (August 8, 2016).
41. Section 772.1 is amended by:
a. Revising the terms ‘‘Accuracy’’ and
‘‘Airship;’’
■ b. Revising the terms ‘‘Circular Error
Probable,’’ ‘‘Cryptography,’’ and
‘‘FADEC;’’
■ c. Removing the term ‘‘Fixed;’’
■ d. Revising the terms ‘‘Frequency
switching time’’ and ‘‘Full Authority
Digital Engine Control Systems;’’
■ e. Revising the term ‘‘Government end
users (as applied to encryption items);’’
■ f. In the definition of ‘‘Information
security,’’ removing ‘‘(Cat 4, 5P1, 5P2, 8,
GSN)’’ and adding in its place ‘‘(Cat
5P2, GSIN, GSN)’’;
■ g. Revising the term ‘‘Laser;’’
■ h. Adding in alphabetical order the
terms ‘‘Less sensitive government end
users (applied to encryption items),’’
‘‘Lighter-than-air vehicles,’’ and ‘‘More
sensitive government end users (applied
to encryption items);’’
■ i. Removing the term ‘‘Optical
amplification;’’
■ j. Revising the term ‘‘Publicly
available encryption software;’’
■ k. Adding in alphabetical order the
term ‘‘Pyrotechnic(s);’’
■ l. Revising the term ‘‘Source code;’’
and
■ m. Removing the term ‘‘System
tracks.’’
The revisions and additions read as
follows:
■
Item interpretations.
*
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■
§ 772.1 Definitions of terms as used in the
Export Administration Regulations (EAR).
*
*
*
*
*
Accuracy. (Cat 2, 3, 6, 7 and 8)—
‘‘Accuracy’’ is usually measured in
terms of inaccuracy. It is defined as the
maximum deviation, positive or
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negative, of an indicated value from an
accepted standard or true value.
*
*
*
*
*
Airship. (Cat 2 and 9) A power-driven
airborne vehicle that is kept buoyant by
a body of gas (usually helium, formerly
hydrogen) which is lighter than air.
*
*
*
*
*
Circular Error Probable. (‘‘CEP’’) (Cat
7) In a circular normal distribution, the
radius of the circle containing 50% of
the individual measurements being
made, or the radius of the circle within
which there is a 50% probability of
being located.
*
*
*
*
*
Cryptography. (Cat 5P2)—The
discipline that embodies principles,
means and methods for the
transformation of data in order to hide
its information content, prevent its
undetected modification or prevent its
unauthorized use. ‘‘Cryptography’’ is
limited to the transformation of
information using one or more ‘secret
parameters’ (e.g., crypto variables) and/
or associated key management.
Note: ‘‘Cryptography’’ does not include
‘fixed’ data compression or coding
techniques.
Technical Notes:
1. ‘Secret parameter’: a constant or key kept
from the knowledge of others or shared only
within a group.
2. ‘Fixed’: the coding or compression
algorithm cannot accept externally supplied
parameters (e.g., cryptographic or key
variables) and cannot be modified by the
user.
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*
*
*
*
*
FADEC systems. See ‘‘full authority
digital engine control systems.’’
*
*
*
*
*
Frequency switching time. (Cat 3) The
time (i.e., delay) taken by a signal when
switched from an initial specified
output frequency, to arrive at or within
any of the following:
(1) ±100 Hz of a final specified output
frequency of less than 1 GHz; or
(2) ±0.1 part per million of a final
specified output frequency equal to or
greater than 1 GHz.
*
*
*
*
*
Full Authority Digital Engine Control
Systems. (‘‘FADEC Systems’’) (Cat 9) A
digital electronic control system for a
gas turbine engine that is able to
autonomously control the engine
throughout its whole operating range
from demanded engine start until
demanded engine shut down, in both
normal and fault conditions.
*
*
*
*
*
Government end user’’ (as applied to
encryption items). A government end
user is any foreign central, regional or
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local government department, agency,
or other entity performing governmental
functions; including governmental
research institutions, governmental
corporations or their separate business
units (as defined in part 772 of the EAR)
which are engaged in the manufacture
or distribution of items or services
controlled on the Wassenaar Munitions
List, and international governmental
organizations. This term does not
include: Utilities (including
telecommunications companies and
Internet service providers); banks and
financial institutions; transportation;
broadcast or entertainment; educational
organizations (except public schools
and universities); civil health and
medical organizations (including public
civilian hospitals); retail or wholesale
firms; and manufacturing or industrial
entities not engaged in the manufacture
or distribution of items or services
controlled on the Wassenaar Munitions
List.
*
*
*
*
*
Laser. (Cat 1, 2, 3, 5P1, 6, 7, 8 and 9)—
An item that produces spatially and
temporally coherent light through
amplification by stimulated emission of
radiation. See also: ‘‘Chemical laser;’’
‘‘Super High Power Laser;’’ and
‘‘Transfer laser.’’
Less sensitive government end users
(as applied to encryption items). The
following ‘‘government end users’’ (as
defined in this Section of the EAR) are
considered ‘‘less sensitive’’ for the
purposes of License Exception ENC
(§ 740.17 of the EAR):
(1) Local/state/provincial
‘‘government end users’’ (departments,
agencies and entities), including local/
state/provincial executive, legislative,
judicial, police, fire, rescue and public
safety agencies.
(2) National/federal/royal
‘‘government end users’’ (departments,
agencies and entities) providing the
following civil government functions
and services:
(i) Census and statistics services;
(ii) Civil public works infrastructure
services (construction, maintenance,
repair, regulation and administration) as
follows: Buildings, public
transportation, roads and highways,
trucking;
(iii) Civil service administration and
regulation, including human resources
and personnel/labor management;
(iv) Clean water infrastructure
services (treatment, supply and testing);
(v) Economic (trade/commerce/
investment), business and industrial
development, promotion, regulation and
administration, excluding the following
end users/end uses:
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(A) Agencies, departments, boards
and councils for science and
technology;
(B) Research, development and
national laboratories (other than as
specified in paragraphs (2)(xi)
(measurements and standards services)
and (2)(xii) (meteorology/weather/
atmospheric services) of this definition
(below);
(C) National telecommunications and
information technology agencies,
boards, councils and development
authorities (including national
information center, and Information
Communications Technology (ICT)/
telecommunications infrastructure/
spectrum planning, policy, regulation
and testing);
(vi) Elections, balloting and polling
services;
(vii) Energy regulation and
administration, including oil, gas and
mining sectors;
(viii) Environmental/natural resources
regulation, administration and
protection, including wildlife, fisheries
and national parks;
(ix) Food/agriculture regulation and
administration;
(x) Labor/community/social services
planning, regulation and administration,
including: housing and urban
development, municipality and rural
affairs;
(xi) Measurements and standards
services;
(xii) Meteorology (weather,
atmospheric) services;
(xiii) National archives/museums;
(xiv) Patents;
(xv) Pilgrimage and religious affairs;
(xvi) Postal services;
(xvii) Public and higher education
(excluding government research
institutions and any agency, institution
or affiliate engaged in the manufacture
or distribution of items or services
controlled on the Wassenaar Munitions
List);
(xviii) Public health and medicine/
pharmaceutical regulation and
administration;
(xix) Public libraries;
(xx) Sports/culture (includes film,
commercial broadcasting and the arts)
promotion, regulation and
administration;
(xxi) Travel/tourism promotion,
regulation and administration.
*
*
*
*
*
Lighter-than-air vehicles. (Cat 2 and 9)
Balloons and ‘‘airships’’ that rely on hot
air or on lighter-than-air gases such as
helium or hydrogen for their lift.
*
*
*
*
*
More sensitive government end users
(as applied to encryption items). The
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following national/federal/royal
(departments, agencies and entities)
‘‘government end users’’ (as defined in
this section of the EAR) providing the
following government functions and
services, are considered ‘‘more
sensitive:’’
(1) Agencies, departments, boards and
councils for science and technology
(including research, development and
state/national laboratories, but not
including measurements and standards);
(2) Currency and monetary authorities
(including departments and offices of
the national/federal/royal reserve);
(3) Executive agents of state
(including offices of president/vice
president/prime minister, royal courts,
national security councils, cabinet/
council of ministers/supreme councils/
executive councils, crown princes and
other deputies of the rulers,
departments and offices of political/
constitutional/mainland affairs);
(4) Legislative bodies responsible for
the enactment of laws;
(5) Import/export control, customs
and immigration agencies and entities;
(6) Intelligence agencies and entities;
(7) Judiciary (including supreme
courts and other national/federal/
regional/royal high courts and
tribunals);
(8) Maritime, port, railway and airport
authorities;
(9) Military and armed services
(including national guard, coast guard,
security bureaus and paramilitary);
(10) Ministries, departments and
garrisons of defense (including defense
technology agencies);
(11) Ministries and departments of
finance and taxation (including
national/federal/royal budget and
revenue authorities);
(12) Ministries and departments of
foreign affairs/foreign relations/
consulates/embassies;
(13) Ministries of interior, internal/
home/mainland affairs, and homeland
security;
(14) State/national
telecommunications and information
technology agencies, boards, councils
and development authorities (including
national information/critical
infrastructure data centers, and
Information and Communications
Technology (ICT)/telecommunications
infrastructure/spectrum planning,
policy, regulation and testing);
(15) Police, investigation and other
law enforcement agencies and entities
(including digital crime/cybercrime/
computer forensics, counter narcotics/
counter terrorism/counter proliferation
agencies);
(16) Prisons;
(17) Public safety agencies and
entities (including national/federal/
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64679
royal agencies and departments of civil
defense, emergency management, and
first responders).
*
*
*
*
*
Publicly available encryption
software. See § 742.15(b) of the EAR.
*
*
*
*
*
Pyrotechnic(s). (Cat 1) Mixtures of
solid or liquid fuels and oxidizers
which, when ignited, undergo an
energetic chemical reaction at a
controlled rate intended to produce
specific time delays, or quantities of
heat, noise, smoke, visible light or
infrared radiation. Pyrophorics are a
subclass of pyrotechnics, which contain
no oxidizers but ignite spontaneously
on contact with air.
*
*
*
*
*
Source code (or source language). (Cat
1, 4, 5P2, 6, 7, and 9)—A convenient
expression of one or more processes that
may be turned by a programming system
into equipment executable form (‘‘object
code’’ (or object language)).
*
*
*
*
*
double quotes around the term ‘‘laser’’
in paragraph (8) of the Related Controls
paragraph in the List of Items Controlled
section.
■ 45. In Supplement No. 1 to Part 774
(the Commerce Control List), Category 1,
ECCN 1A001 is amended by removing
and reserving paragraph b and removing
paragraph c from the Items paragraph of
the List of Items Controlled section.
■ 46. In Supplement No. 1 to Part 774
(the Commerce Control List), Category 1,
ECCN 1A002 is amended by adding
double quotes around the term
‘‘composite’’ in the introductory text of
Note 1 following Items paragraph b.2 of
the List of Items Controlled section.
■ 47. In Supplement No. 1 to Part 774
(the Commerce Control List), Category 1,
ECCN 1A004, Items paragraph of the
List of Items controlled is amended by
revising paragraphs a.1, b.1, and c.1 and
the Technical Notes at the end of the
Items paragraph to read as follows:
PART 774—[AMENDED]
1A004 Protective and detection equipment
and ‘‘components,’’ not ‘‘specially
designed’’ for military use, as follows
(see List of Items Controlled).
*
42. The authority citation for part 774
continues to read as follows:
■
Authority: 50 U.S.C. 4601 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; 43 U.S.C. 1354; 15 U.S.C.
1824a; 50 U.S.C. 4305; 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 4, 2016, 81 FR 52587 (August 8,
2016).
43. Section 774.1 is amended by
adding paragraph (e) to read as follows:
■
§ 774.1
*
*
*
*
(e) Chemicals identified by Chemical
Abstracts Service (CAS) number. In
some instances chemicals are listed by
name and CAS number. The list applies
to chemicals of the same structural
formula (including hydrates) regardless
of name or CAS number. CAS numbers
are shown to assist in identifying a
particular chemical or mixture,
irrespective of nomenclature. CAS
numbers cannot be used as unique
identifiers because some forms of the
listed chemical have different CAS
numbers, and mixtures containing a
listed chemical may also have different
CAS numbers.
Supplement No. 1 to Part 774
[Amended]
44. In Supplement No. 1 to Part 774
(the Commerce Control List), Category 0,
ECCN 0A617 is amended by adding
■
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*
*
*
*
List of Items Controlled
*
*
*
*
*
Items:
a. * * *
a.1. ‘Biological agents’;
*
*
*
*
*
b. * * *
b.1. ‘Biological agents’;
*
*
*
*
*
c. * * *
c.1. ‘Biological agents’;
*
Introduction.
*
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*
*
*
*
Technical Notes:
1. 1A004 includes equipment,
‘‘components’’ that have been ‘identified,’
successfully tested to national standards or
otherwise proven effective, for the detection
of or defense against radioactive materials
‘‘adapted for use in war,’’ ‘biological agents,’
chemical warfare agents, ‘simulants’ or ‘‘riot
control agents,’’ even if such equipment or
‘‘components’’ are used in civil industries
such as mining, quarrying, agriculture,
pharmaceuticals, medical, veterinary,
environmental, waste management, or the
food industry.
2. ‘Simulant’: A substance or material that
is used in place of toxic agent (chemical or
biological) in training, research, testing or
evaluation.
3. For the purposes of 1A004, ‘biological
agents’ are pathogens or toxins, selected or
modified (such as altering purity, shelf life,
virulence, dissemination characteristics, or
resistance to UV radiation) to produce
casualties in humans or animals, degrade
equipment or damage crops or the
environment.
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48. In Supplement No. 1 to Part 774
(the Commerce Control List), Category 1,
ECCN 1A613, Items paragraph of the
List of Items controlled is amended by
revising paragraph c and adding a Nota
Bene after paragraph y.1 to read as
follows:
■
1A613 Armored and protective
‘‘equipment’’ and related commodities,
as follows (see List of Items Controlled).
*
*
*
*
*
*
*
*
*
*
*
*
*
Note 2: See USML Category X(a)(5) and
(a)(6) for controls on other military helmets.
*
*
*
*
y. * * *
y.1 * * *
N.B. to paragraph y.1: For other military
helmet ‘‘components’’ or ‘‘accessories,’’ see
the relevant ECCN in the CCL or USML
Entry.
*
*
*
*
*
■ 49. In Supplement No. 1 to Part 774
(the Commerce Control List), Category 1,
ECCN 1C001, the List of Items
Controlled section, the Items paragraph
is amended by adding double quotes
around the term ‘‘laser’’ in paragraphs
(a) and (b) of the Note to 1C001.b.
■ 50. In Supplement No. 1 to Part 774
(the Commerce Control List), Category 1,
ECCN 1C002, the List of Items
Controlled section is amended by
revising the Note at the beginning of the
Items paragraph to read as follows:
1C002 Metal alloys, metal alloy powder
and alloyed materials, as follows (see
List of Items Controlled).
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
*
53. In Supplement No. 1 to Part 774
(the Commerce Control List), Category 1,
ECCN 1C009, List of Items Controlled
section, the Items paragraph is amended
by removing and reserving paragraph a.
■ 54. In Supplement No. 1 to Part 774
(the Commerce Control List), Category 1,
ECCN 1C608 is amended by:
■ a. Revising the Related Definitions
paragraph in the List of Items Controlled
section; and
■ b. Revising the Items paragraph of the
List of Items Controlled section.
The revisions read as follows:
■
1C608 Energetic materials and related
commodities (see List of Items
Controlled).
*
*
Note: 1C002 does not control metal alloys,
metal alloy powder and alloyed materials,
specially formulated for coating purposes.
*
*
*
*
*
51. In Supplement No. 1 to Part 774
(the Commerce Control List), Category 1,
ECCN 1C006, the List of Items
Controlled section, the Items paragraph
is amended by removing and reserving
paragraph .a (including the
subparagraphs through a.2.e and the
Technical Note for 1C006.a.2).
■ 52. In Supplement No. 1 to Part 774
(the Commerce Control List), Category 1,
■
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*
List of Items Controlled
Items:
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*
Technical Notes:
1. The ‘glass transition temperature (Tg)’
for 1C008.a.2 thermoplastic materials,
1C008.a.4 materials and 1C008.f materials is
determined using the method described in
ISO 11357–2 (1999) or national equivalents.
2. The ‘glass transition temperature (Tg)’
for 1C008.a.2 thermosetting materials and
1C008.a.3 materials is determined using the
3-point bend method described in ASTM D
7028–07 or equivalent national standard. The
test is to be performed using a dry test
specimen which has attained a minimum of
90% degree of cure as specified by ASTM E
2160–04 or equivalent national standard, and
was cured using the combination of standardand post-cure processes that yield the highest
Tg.
*
*
List of Items Controlled
*
*
List of Items Controlled
*
c. Military helmets (other than helmets
controlled under 1A613.y.1) providing less
than NIJ Type IV protection and ‘‘specially
designed’’ helmet shells, liners, or comfort
pads therefor.
Note 1: See ECCN 0A979 for controls on
police helmets.
*
*
Items:
Items:
*
1C008 Non-fluorinated polymeric
substances as follows (see List of Items
Controlled).
*
List of Items Controlled
*
ECCN 1C008, the List of Items
Controlled section is amended by
revising the Technical Notes at the end
of the Items paragraph to read as
follows:
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*
*
*
*
Related Definitions: (1) For purposes of this
entry, the term ‘controlled materials’
means controlled energetic materials
enumerated in ECCNs 1C011, 1C111,
1C239, 1C608, or USML Category V. (2) For
the purposes of this entry, the term
‘propellants’ means substances or mixtures
that react chemically to produce large
volumes of hot gases at controlled rates to
perform mechanical work.
Items:
a. ‘Single base,’ ‘double base,’ and ‘triple
base’ ‘propellants’ having nitrocellulose with
nitrogen content greater than 12.6% in the
form of either:
a.1. ‘Sheetstock’ or ‘carpet rolls;’ or
a.2. Grains with diameter greater than 0.10
inches.
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Note: This entry does not control
‘propellant’ grains used in shotgun shells,
small arms cartridges, or rifle cartridges.
Technical Notes:
1. ‘Sheetstock’ is ‘propellant’ that has been
manufactured in the form of a sheet suitable
for further processing.
2. A ‘carpet roll’ is ‘propellant’ that has
been manufactured as a sheet, often cut to a
desired width, and subsequently rolled up
(like a carpet).
3. ‘Single base’ is ‘propellant’ which
consists mostly of nitrocellulose.
4.’Double base’ ‘propellant’ consist mostly
of nitrocellulose and nitroglycerine.
5. ‘Triple base’ consists mostly of
nitrocellulose, nitroglycerine, and
nitroguanidine. Such ‘propellants’ contain
other materials, such as resins or stabilizers,
that could include carbon, salts, burn rate
modifiers, nitrodiphenylamine, wax,
polyethylene glycol (PEG), polyglycol adipate
(PGA).
b. Shock tubes containing greater than
0.064 kg per meter (300 grains per foot), but
not more than 0.1 kg per meter (470 grains
per foot) of ‘controlled materials.’
c. Cartridge power devices containing
greater than 0.70 kg, but not more than 1.0
kg of ‘controlled materials.’
d. Detonators (electric or nonelectric) and
‘‘specially designed’’ assemblies therefor
containing greater than 0.01 kg, but not more
than 0.1 kg of ‘controlled materials.’
e. Igniters not controlled by USML
Categories III or IV that contain greater than
0.01 kg, but not more than 0.1 kg of
‘controlled materials.’
f. Oil well cartridges containing greater
than 0.015 kg, but not more than 0.1 kg of
‘controlled materials.’
g. Commercial cast or pressed boosters
containing greater than 1.0 kg, but not more
than 5.0 kg of ‘controlled materials.’
h. Commercial prefabricated slurries and
emulsions containing greater than 10 kg and
less than or equal to thirty-five percent by
weight of USML ‘controlled materials.’
i. [Reserved]
j. ‘‘Pyrotechnic’’ devices ‘‘specially
designed’’ for commercial purposes (e.g.,
theatrical stages, motion picture special
effects, and fireworks displays), and
containing greater than 3.0 kg, but not more
than 5.0 kg of ‘controlled materials.’
k. Other commercial explosive devices or
charges ‘‘specially designed’’ for commercial
applications, not controlled by 1C608.c
through .g above, containing greater than 1.0
kg, but not more than 5.0 kg of ‘controlled
materials.’
l. Propyleneimine (2 methylaziridine)
(C.A.S. #75–55–8).
m. Any oxidizer or ‘mixture’ thereof that is
a compound composed of fluorine and any
of the following: Other halogens, oxygen, or
nitrogen.
Note 1 to 1C608.m: Nitrogen trifluoride
(NF3)(CAS 7783–54–2) in a gaseous state is
controlled under ECCN 1C992 and not under
ECCN 1C608.m.
Note 2 to 1C608.m: Chlorine trifluoride
(ClF3)(CAS 7790–91–2) is controlled under
ECCN 1C111.a.3.f and not under ECCN
1C608.m.
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Note 3 to 1C608.m: Oxygen difluoride
(OF2) is controlled under USML Category
V.d.10 (see 22 CFR 121.1) and not under
ECCN 1C608.m.
ANNEX to Category 1
Note to 1C608.l and m: If a chemical in
ECCN 1C608.l or .m is incorporated into a
commercial charge or device described in
ECCN 1C608.c through .k or in ECCN 1C992,
the classification of the commercial charge or
device applies to the item.
48. Energetic ionic materials melting
between 343 K (70°C) and 373 K (100°C) and
with detonation velocity exceeding 6,800 m/
s or detonation pressure exceeding 18 GPa
(180 kbar);
49. BTNEN (Bis(2,2,2-trinitroethyl)nitramine) (CAS 19836–28–3).
List of Explosives (See ECCNs 1A004 and
1A008)
Technical Note to 1C608.m: ‘Mixture’
refers to a composition of two or more
substances with at least one substance being
enumerated in 1C011, 1C111, 1C239, 1C608,
USML Category V, or elsewhere on the
USML.
n. Any explosives, ‘propellants,’ oxidizers,
‘‘pyrotechnics,’’ fuels, binders, or additives
that are ‘‘specially designed’’ for military
application and not enumerated or otherwise
described in USML Category V or elsewhere
on the USML.
55. In Supplement No. 1 to Part 774
(the Commerce Control List), Category 1,
ECCN 1E001 is amended by revising the
Heading and the first NS paragraph in
the table of the License Requirements
section to read as follows:
■
1E001 ‘‘Technology’’ according to the
General Technology Note for the
‘‘development’’ or ‘‘production’’ of items
controlled by 1A002, 1A003, 1A004,
1A005, 1A006.b, 1A007, 1A008 1A101,
1B (except 1B608, 1B613 or 1B999), or
1C (except 1C355, 1C608, 1C980 to
1C984, 1C988, 1C990, 1C991, 1C995 to
1C999).
License Requirements
*
*
*
*
*
Country chart
(see Supp. No. 1 to
part 738)
Control(s)
NS applies to ‘‘technology’’ for items
controlled by
1A002, 1A003,
1A005, 1A006.b,
1A007, 1B001 to
1B003, 1B018,
1C001 to 1C011,
or 1C018.
*
*
NS Column 1
*
*
*
*
*
*
*
56. In Supplement No. 1 to Part 774
(the Commerce Control List), Category 1,
ECCN 1E002 is amended by removing
the phrase ‘‘contained in aircraft
manufacturers’ manuals’’ and adding in
its place ‘‘contained in ‘‘aircraft’’
manufacturers’ manuals’’ in the Note to
1E002.f.
■ 57. In Supplement No. 1 to Part 774
(the Commerce Control List), the Annex
to Category 1 is amended by revising
paragraph 48 and adding paragraph 49
to read as follows:
■
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*
*
*
*
*
58. In Supplement No. 1 to Part 774
(the Commerce Control List), Category 2,
ECCN 2B001 is amended by revising
paragraphs a, b.1 and b.2.a in the Items
paragraph of the List of Items Controlled
section, to read as follows:
■
2B001 Machine tools and any combination
thereof, for removing (or cutting) metals,
ceramics or ‘‘composites,’’ which,
according to the manufacturer’s
technical specifications, can be
equipped with electronic devices for
‘‘numerical control;’’ as follows (see List
of Items Controlled).
*
*
*
*
*
*
*
*
*
*
*
*
*
59. In Supplement No. 1 to Part 774
(the Commerce Control List), Category 2,
ECCN 2B006 is amended by:
■ a. Revising the NP Column 1
paragraph in the License Requirements
table;
■ b. Revising the Note following the
introductory Items paragraph b.1;
■ c. Revising Items paragraph b.1.c in
the List of Items Controlled section; and
■ d. Adding double quotes around the
term ‘‘laser’’ in the Note to Items
paragraph b.2 in the List of Items
Controlled section.
The revisions read as follows:
■
2B006 Dimensional inspection or
measuring systems, equipment, and
‘‘electronic assemblies,’’ as follows (see
List of Items Controlled).
License Requirements
List of Items Controlled
*
b.2.a. ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
0.9 mm along one or more linear axis with a
travel length less than 1.0 m;
*
*
Items:
*
*
*
*
*
Note 2: 2B001.a does not apply to bar
machines (Swissturn), limited to machining
only bar feed thru, if maximum bar diameter
is equal to or less than 42 mm and there is
no capability of mounting chucks. Machines
may have drilling and/or milling capabilities
for machining parts with diameters less than
42 mm.
b. * * *
b.1. Three linear axes plus one rotary axis
which can be coordinated simultaneously for
‘‘contouring control’’ having any of the
following:
b.1.a. ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
0.9 mm along one or more linear axis with a
travel length less than 1.0 m; or
b.1.b. ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
1.1 mm along one or more linear axis with a
travel length equal to or greater than 1.0 m;
b.2. * * *
Frm 00027
Fmt 4701
*
*
Sfmt 4700
Country chart
(see Supp. No. 1 to
part 738)
Control(s)
a. Machine tools for turning having two or
more axes which can be coordinated
simultaneously for ‘‘contouring control’’
having any of the following:
a.1. ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
0.9 mm along one or more linear axis with a
travel length less than 1.0 m; or
a.2. ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
1.1 mm along one or more linear axis with a
travel length equal to or greater than 1.0 m;
Note 1: 2B001.a does not control turning
machines ‘‘specially designed’’ for producing
contact lenses, having all of the following:
a. Machine controller limited to using
ophthalmic based ‘‘software’’ for part
programming data input; and
b. No vacuum chucking.
PO 00000
*
*
*
*
*
*
NP applies to those
NP Column 1
items in 2B006.a
and .b that meet or
exceed the technical parameters in
2B206.
*
*
*
*
*
*
*
*
*
*
*
List of Items Controlled
*
*
*
*
*
*
*
*
*
Items:
*
b. * * *
b.1. * * *
Note: Interferometer and optical-encoder
displacement measuring systems containing
a ‘‘laser’’ are only specified by 2B006.b.1.c.
*
*
*
*
*
b.1.c. Measuring systems having all of the
following:
b.1.c.1. Containing a ‘‘laser;’’
b.1.c.2. A ‘‘resolution’’ over their full scale
of 0.200 nm or less (better); and
b.1.c.3. Capable of achieving a
‘‘measurement uncertainty’’ equal to or less
(better) than (1.6 + L/2,000) nm (L is the
measured length in mm) at any point within
a measuring range, when compensated for
the refractive index of air and measured over
a period of 30 seconds at a temperature of
20±0.01°C; or
*
*
*
*
*
b.2. * * *
Note: 2B006.b.2 does not control optical
instruments, such as autocollimators, using
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collimated light (e.g., ‘‘laser’’ light) to detect
angular displacement of a mirror.
*
*
*
*
*
60. In Supplement No. 1 to part 774
(the Commerce Control List), Category 3,
ECCN 3A001 is amended by:
■ a. Revising the Heading;
■ b. Revising Items paragraph a.5.a.2
through a.5.a.5, not including the
Technical Note, in the List of Items
Controlled section;
■ c. Revising Items introductory
paragraph b, not including the
Technical Note, and Items paragraph
e.1.b, in the List of Items Controlled
section; and
■ d. Adding double quotes to the term
‘‘accuracy’’ in Items paragraph f.
The revisions read as follows:
■
3A001 Electronic items as follows (see List
of Items Controlled).
*
*
*
*
*
List of Items Controlled
*
*
*
*
*
Items:
a. * * *
a.5. * * *
*
*
*
*
*
a.5.a.2. A resolution of 10 bit or more, but
less than 12 bit, with an output rate greater
than 500 million words per second;
a.5.a.3. A resolution of 12 bit or more, but
less than 14 bit, with an output rate greater
than 200 million words per second;
a.5.a.4. A resolution of 14 bit or more, but
less than 16 bit, with an output rate greater
than 250 million words per second; or
a.5.a.5. A resolution of 16 bit or more with
an output rate greater than 65 million words
per second;
*
*
*
*
*
b. Microwave or millimeter wave items, as
follows:
*
*
*
*
*
e. * * *
e.1. * * *
e.1.b. ‘Secondary cells’ having an ‘energy
density’ exceeding 350 Wh/kg at 293 K (20
°C);
*
*
*
*
*
61. In Supplement No. 1 to part 774
(the Commerce Control List), Category 3,
ECCN 3A002 is amended by:
■ a. Revising the Heading;
■ b. Revising the License Requirements
and List Based License Exceptions
sections;
■ c. Revising the Related Controls
paragraph in the List of Items Controlled
section;
■ d. Removing and reserving Items
paragraph a.5 of the List of Items
Controlled section;
■ e. Adding a Nota Bene (N.B.) under
the reserved Items paragraphs a.1 to a.5
of the List of Items Controlled section;
■ f. Revising Items paragraph a.6 of the
List of Items Controlled section; and
■ g. Adding Items paragraph h to the
List of Items Controlled section.
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■
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The additions and revisions read as
follows:
3A002 General purpose ‘‘electronic
assemblies,’’ modules and equipment, as
follows (see List of Items Controlled).
License Requirements
Reason for Control: NS, MT, AT
Country chart
(see Supp. No. 1 to
part 738)
Control(s)
NS applies to entire
entry.
MT applies to
3A002.h when the
parameters in
3A101.a.2.b are
met or exceeded.
AT applies to entire
entry.
NS Column 2
MT Column 1
AT Column 1
Reporting Requirements: See § 743.1 of the
EAR for reporting requirements for exports
under License Exceptions, and Validated
End-User authorizations.
List Based License Exceptions (See Part 740
for a description of all license exceptions)
LVS: $3000: 3A002.a, .e, .f, and .g
$5000: 3A002.c to .d, and .h (unless
controlled for MT);
GBS: Yes, for 3A002.h (unless controlled for
MT)
CIV: Yes, for 3A002.h (unless controlled for
MT)
*
*
*
*
*
List of Items Controlled
Related Controls: See Category XV(e)(9) of
the USML for certain ‘‘space-qualified’’
atomic frequency standards ‘‘subject to the
ITAR’’ (see 22 CFR parts 120 through 130).
See also 3A101, 3A292, 3A992 and 9A515.x.
*
*
*
*
*
Items:
a. * * *
a.1. to a.5. [RESERVED]
N.B.: For waveform digitizers and transient
recorders, see 3A002.h.
a.6. Digital data recorders having all of the
following:
a.6.a. A sustained ‘continuous throughput’
of more than 6.4 Gbit/s to disk or solid-state
drive memory; and
a.6.b. A processor that performs analysis of
radio frequency signal data while it is being
recorded;
Technical Notes:
1. For recorders with a parallel bus
architecture, the ‘continuous throughput’ rate
is the highest word rate multiplied by the
number of bits in a word.
2. ‘Continuous throughput’ is the fastest
data rate the instrument can record to disk
or solid-state drive memory without the loss
of any information while sustaining the input
digital data rate or digitizer conversion rate.
*
*
*
*
*
h. ‘‘Electronic assemblies,’’ modules or
equipment, specified to perform all of the
following:
h.1. Analog-to-digital conversions meeting
any of the following:
PO 00000
Frm 00028
Fmt 4701
Sfmt 4700
h.1.a. A resolution of 8 bit or more, but less
than 10 bit, with an input sample rate greater
than 1.3 billion samples per second;
h.1.b. A resolution of 10 bit or more, but
less than 12 bit, with an input sample rate
greater than 1.0 billion samples per second;
h.1.c. A resolution of 12 bit or more, but
less than 14 bit, with an input sample rate
greater than 1.0 billion samples per second;
h.1.d. A resolution of 14 bit or more but
less than 16 bit, with an input sample rate
greater than 400 million samples per second;
or
h.1.e. A resolution of 16 bit or more with
an input sample rate greater than 180 million
samples per second; and
h.2. Any of the following:
h.2.a. Output of digitized data;
h.2.b. Storage of digitized data; or
h.2.c. Processing of digitized data;
N.B.: Digital data recorders, oscilloscopes,
‘‘signal analyzers,’’ signal generators,
network analyzers and microwave test
receivers, are specified by 3A002.a.6,
3A002.a.7, 3A002.c, 3A002.d, 3A002.e and
3A002.f, respectively.
Technical Note: For multiple-channel
‘‘electronic assemblies’’ or modules, control
status is determined by the highest singlechannel specified performance.
Note: 3A002.h includes ADC cards,
waveform digitizers, data acquisition cards,
signal acquisition boards and transient
recorders.
62. In Supplement No. 1 to part 774
(the Commerce Control List), Category 3,
ECCN 3A101 is amended by revising the
Related Controls paragraph in the List of
Items Controlled section to read as
follows:
■
3A101 Electronic equipment, devices,
‘‘parts’’ and ‘‘components,’’ other than
those controlled by 3A001, as follows
(see List of Items Controlled).
*
*
*
*
*
List of Items Controlled
Related Controls: See also ECCN 3A002.h for
controls on analog-to-digital ‘‘electronic
assemblies,’’ modules or equipment.
*
*
*
*
*
63. In Supplement No. 1 to part 774
(the Commerce Control List), Category 3,
ECCN 3A292 is amended by revising the
Heading to read as follows:
■
3A292 Oscilloscopes and transient
recorders other than those controlled by
3A002.h, and ‘‘specially designed’’
‘‘parts’’ and ‘‘components’’ therefor.
*
*
*
*
*
64. In Supplement No. 1 to part 774
(the Commerce Control List), Category 3,
ECCN 3B001 is amended by:
■ a. Revising the CIV paragraph in the
List Based License Exceptions section;
■ b. Removing and reserving Items
paragraph c in the List of Items
Controlled section;
■ c. Revising Items paragraph e.1 in the
List of Items Controlled section;
■
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d. Removing the word ‘‘etch,’’ in
Technical Note 1 after Items paragraph
e.2;
■ e. Adding a Note to Items paragraph
f.2;
■ f. Revising Items paragraph f.3 in the
List of Items Controlled section; and
■ g. Adding Items paragraph f.4 in the
List of Items Controlled section.
The revisions and additions read as
follows:
■
3B001 Equipment for the manufacturing of
semiconductor devices or materials, as
follows (see List of Items Controlled)
and ‘‘specially designed’’ ‘‘components’’
and ‘‘accessories’’ therefor.
*
*
*
*
*
List Based License Exceptions (See Part 740
for a description of all license exceptions)
*
*
*
*
*
CIV: Yes for equipment controlled by
3B001.a.1 and a.2.
*
*
*
*
*
*
*
e. * * *
e.1. Interfaces for wafer input and output,
to which more than two functionally
different ‘semiconductor process tools’
controlled by 3B001.a.1, 3B001.a.2, 3B001.a.3
or 3B001.b are designed to be connected; and
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*
*
*
*
*
f. * * *
f.2. * * *
Note: 3B001.f.2 includes:
—Micro contact printing tools
—Hot embossing tools
—Nano-imprint lithography tools
—Step and flash imprint lithography (S–FIL)
tools
f.3. Equipment ‘‘specially designed’’ for
mask making having all of the following:
f.3.a. A deflected focused electron beam,
ion beam or ‘‘laser’’ beam; and
f.3.b. Having any of the following:
f.3.b.1. A Full-Width Half-Maximum
(FWHM) spot size smaller than 65 nm and an
image placement less than 17 nm (mean + 3
sigma); or
f.3.b.2. [Reserved]
f.3.b.3. A second-layer overlay error of less
than 23 nm (mean + 3 sigma) on the mask;
f.4. Equipment designed for device
processing using direct writing methods,
having all of the following:
f.4.a. A deflected focused electron beam;
and
f.4.b. Having any of the following:
f.4.b.1. A minimum beam size equal to or
smaller than 15 nm; or
f.4.b.2. An overlay error less than 27 nm
(mean + 3 sigma);
*
*
*
*
*
65. In Supplement No. 1 to part 774
(the Commerce Control List), Category 3,
ECCN 3D001 is amended by:
■ a. Revising the Heading;
■ b. Revising the NS paragraph in the
License Requirements table; and
■
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*
*
*
*
Country chart
(see Supp. No. 1 to
part 738)
Control(s)
NS applies to ‘‘software’’ for equipment controlled by
3A001.b to
3A001.h, 3A002,
and 3B.
*
*
*
NS Column 1
*
*
*
*
*
Jkt 238001
*
*
*
*
*
66. In Supplement No. 1 to part 774
(the Commerce Control List), Category 3,
ECCN 3E002 is amended by:
■ a. Revising the CIV paragraph in the
List Based License Exception section;
■ b. Revising the Technical Note after
Items paragraph a in the List of Items
Controlled section; and
■ c. Revising Items paragraph c,
including Notes that follow, to read as
follows:
■
3E002 ‘‘Technology’’ according to the
General Technology Note other than
that controlled in 3E001 for the
‘‘development’’ or ‘‘production’’ of a
‘‘microprocessor microcircuit,’’ ‘‘microcomputer microcircuit’’ and
microcontroller microcircuit core,
having an arithmetic logic unit with an
access width of 32 bits or more and any
of the following features or
characteristics (see List of Items
Controlled).
License Requirements
*
*
*
*
Frm 00029
Fmt 4701
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*
*
*
*
List of Items Controlled
*
*
*
*
*
Items:
a. * * *
Technical Note: A ‘vector processor unit’ is
a processor element with built-in instructions
that perform multiple calculations on
floating-point vectors (one-dimensional
arrays of 32-bit or larger numbers)
simultaneously, having at least one vector
arithmetic logic unit and vector registers of
at least 32 elements each.
*
*
*
*
c. Designed to perform more than eight 16bit fixed-point multiply-accumulate results
per cycle (e.g., digital manipulation of analog
information that has been previously
converted into digital form, also known as
digital ‘‘signal processing’’).
Note 1: 3E002 does not control
‘‘technology’’ for multimedia extensions.
Note 2: 3E002 does not control
‘‘technology’’ for the ‘‘development’’ or
‘‘production’’ of microprocessor cores,
having all of the following:
a. Using ‘‘technology’’ at or above 0.130
mm; and
b. Incorporating multi-layer structures with
five or fewer metal layers.
Note 3: 3E002 includes ‘‘technology’’ for
digital signal processors and digital array
processors.
67. In Supplement No. 1 to part 774
(the Commerce Control List), Category 4
is amended by removing Note 3 at the
beginning of Category 4.
■ 68. In Supplement No. 1 to part 774
(the Commerce Control List), Category 4,
ECCN 4A001 is amended by revising the
Related Controls paragraph in the List of
Items Controlled section to read as
follows:
■
4A001 Electronic computers and related
equipment, having any of the following
(see List of Items Controlled), and
‘‘electronic assemblies’’ and ‘‘specially
designed’’ ‘‘components’’ therefor.
*
*
List Based License Exceptions (See Part 740
for a description of all license exceptions)
CIV: Yes, for deemed exports, as described in
§ 734.13(a)(2) of the EAR, of ‘‘technology’’
for the ‘‘development’’ or ‘‘production’’ of
general purpose microprocessor cores with
a vector processor unit with operand
length of 64-bit or less, 64-bit floating
operations not exceeding 50 GFLOPS, or
16-bit or more floating-point operations not
exceeding 50 GMACS (billions of 16-bit
fixed-point multiply-accumulate
operations per second). License Exception
CIV does not apply to ECCN 3E002
technology also required for the
development or production of items
PO 00000
*
*
List Based License Exceptions (See Part 740
for a description of all license exceptions)
CIV: N/A
*
*
*
*
Items:
*
License Requirements
*
List of Items Controlled
controlled under ECCNs beginning with
3A, 3B, or 3C, or to ECCN 3E002
technology also controlled under ECCN
3E003.
c. Revising the CIV paragraph in the
List Based License Exceptions section,
to read as follows:
■
3D001 ‘‘Software’’ ‘‘specially designed’’ for
the ‘‘development’’ or ‘‘production’’ of
equipment controlled by 3A001.b to
3A002.h or 3B (except 3B991 and
3B992).
64683
*
*
*
*
List of Items Controlled
Related Controls: See also 4A101 and 4A994.
Equipment designed or rated for transient
ionizing radiation is ‘‘subject to the ITAR’’
(see 22 CFR parts 120 through 130).
*
*
*
*
*
69. In Supplement No. 1 to part 774
(the Commerce Control List), Category 4,
ECCN 4A003 is amended by:
■ a. Removing MT from the Reason for
Control paragraph in the License
Requirements section;
■ b. Removing the MT paragraph from
the License Requirements table;
■ c. Revising the AT paragraph in the
License Requirements table;
■
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d. Revising the Note in the License
Requirements section;
■ e. Revising the List Based License
Exceptions sections;
■ f. Removing the last listed item in
Note 1 located at the beginning of the
Items paragraph in the List of Items
Controlled section;
■ g. Revising Items paragraph b in the
List of Items Controlled section;
■ h. Revising Note 1 to 4A003.c;
■ i. Removing Items paragraph e and
revising the citation of the reserved
paragraphs to read ‘‘.d to f. [Reserved]’’;
■ j. Adding a Nota Bene below the
reserved paragraphs d to f.
The revisions and additions read as
follows:
■
4A003 ‘‘Digital computers,’’ ‘‘electronic
assemblies,’’ and related equipment
therefor, as follows (see List of Items
Controlled) and ‘‘specially designed’’
‘‘components’’ therefor.
*
*
*
*
*
*
*
*
AT applies to entire
AT Column 1
entry (refer to
4A994 for controls
on ‘‘digital computers’’ with a APP
> 0.0128 but ≤ 12.5
WT).
*
Note: For all destinations, except those
countries in Country Group E:1 or E:2 of
Supplement No. 1 to part 740 of the EAR, no
license is required (NLR) for computers with
an ‘‘Adjusted Peak Performance’’ (‘‘APP’’) not
exceeding 12.5 Weighted TeraFLOPS (WT)
and for ‘‘electronic assemblies’’ described in
4A003.c that are not capable of exceeding an
‘‘Adjusted Peak Performance’’ (‘‘APP’’)
exceeding 12.5 Weighted TeraFLOPS (WT) in
aggregation, except certain transfers as set
forth in § 746.3 (Iraq).
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*
*
*
*
*
List Based License Exceptions (See Part 740
for a description of all license exceptions)
LVS: $5000; N/A for 4A003.b and .c.
GBS: Yes, for 4A003.g and ‘‘specially
designed’’ ‘‘parts’’ and ‘‘components’’
therefor, exported separately or as part of
a system.
APP: Yes, for computers controlled by
4A003.b, and ‘‘electronic assemblies’’
controlled by 4A003.c, to the exclusion of
other technical parameters. See § 740.7 of
the EAR.
CIV: Yes, for 4A003.g.
List of Items Controlled
*
*
*
*
*
Items:
Note 1: 4A003 includes the following:
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*
*
*
*
b. ‘‘Digital computers’’ having an
‘‘Adjusted Peak Performance’’ (‘‘APP’’)
exceeding 12.5 weighted TeraFLOPS (WT);
c. * * *
Note 1: 4A003.c applies only to ‘‘electronic
assemblies’’ and programmable
interconnections not exceeding the limit in
4A003.b when shipped as unintegrated
‘‘electronic assemblies.’’
*
*
*
*
*
d. to f. [Reserved]
N.B.: For ‘‘electronic assemblies,’’ modules
or equipment, performing analog-to-digital
conversions, see 3A002.h.
*
*
*
*
70. In Supplement No. 1 to part 774
(the Commerce Control List), Category 4,
ECCN 4D001 is amended by:
■ a. Removing NP from the Reason for
Control paragraph in the License
Requirements section;
■ b. Removing the sentence directly
below the License Requirements table;
■ c. Revising the TSR paragraph in the
List Based License Exceptions section;
■ d. Revising the STA paragraph in the
Special Conditions for STA section;
■ e. Revising Items paragraph b.1 in the
List of Items Controlled section.
The revisions are set forth below:
■
Country chart
(see Supp. No. 1 to
part 738)
Control(s)
*
*
License Requirements
*
—‘Vector processors’ (as defined in Note 7 of
the ‘‘Technical Note on ‘‘Adjusted Peak
Performance’’ (‘‘APP’’)’’);
—Array processors;
—Digital signal processors;
—Logic processors;
—Equipment designed for ‘‘image
enhancement.’’
4D001 ‘‘Software’’ as follows (see List of
Items Controlled).
Special Conditions for STA
STA: License Exception STA may not be
used to ship or transmit ‘‘software’’
‘‘specially designed’’ for the
‘‘development’’ or ‘‘production’’ of
equipment specified by ECCN 4A001.a.2 or
for the ‘‘development’’ or ‘‘production’’ of
‘‘digital computers’’ having an ‘Adjusted
Peak Performance’ (‘APP’) exceeding
12.5Weighted TeraFLOPS (WT) to any of
the destinations listed in Country Group
A:6 (See Supplement No.1 to part 740 of
the EAR).
List of Items Controlled
*
*
NS Column 1
CC Column 1
AT Column 1
Reporting Requirements: See § 743.1 of the
EAR for reporting requirements for exports
under License Exceptions, and Validated
End-User authorizations.
List Based License Exceptions (See Part 740
for a description of all license exceptions)
*
*
*
*
*
TSR: Yes, except for ‘‘software’’ for the
‘‘development’’ or ‘‘production’’ of
commodities with an ‘‘Adjusted Peak
Performance’’ (‘‘APP’’) exceeding 12.5 WT.
*
PO 00000
*
*
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*
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*
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*
*
*
*
*
*
*
*
*
*
*
71. In Supplement No. 1 to part 774
(the Commerce Control List), Category 4,
ECCN 4E001, is amended by:
■ a. Removing NP from the Reason for
Control paragraph in the License
Requirements section;
■ b. Removing the sentence directly
below the License Requirements table;
■ c. Revising the TSR paragraph in the
List Based License Exceptions section;
■ d. Revising the STA paragraph in the
Special Conditions for STA section;
■ e. Revising Items paragraph b.1 in the
List of Items Controlled section.
The revisions read as follows:
■
4E001 ‘‘Technology’’ as follows (see List of
Items Controlled).
License Requirements
Reason for Control: NS, MT, CC, AT
Country chart
(see Supp. No. 1 to
part 738)
Control(s)
Country chart
(see Supp. No. 1 to
part 738)
NS applies to entire
entry.
CC applies to ‘‘software’’ for computerized finger-print
equipment controlled by 4A003 for
CC reasons.
AT applies to entire
entry.
*
b. * * *
b.1. ‘‘Digital computers’’ having an
‘‘Adjusted Peak Performance’’ (‘‘APP’’)
exceeding 6.0 Weighted TeraFLOPS (WT);
License Requirements
Reason for Control: NS, CC, AT
Control(s)
*
Items:
NS applies to entire
entry.
MT applies to ‘‘technology’’ for items
controlled by
4A001.a and
4A101 for MT reasons.
CC applies to ‘‘technology’’ for computerized fingerprint
equipment controlled by 4A003 for
CC reasons.
AT applies to entire
entry.
NS Column 1
MT Column 1
CC Column 1
AT Column 1
Reporting Requirements: See § 743.1 of the
EAR for reporting requirements for exports
under License Exceptions, and Validated
End-User authorizations.
List Based License Exceptions (see Part 740
for a description of all license exceptions)
*
*
*
*
*
TSR: Yes, except for ‘‘technology’’ for the
‘‘development’’ or ‘‘production’’ of
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commodities with an ‘‘Adjusted Peak
Performance’’ (‘‘APP’’) exceeding 12.5 WT.
*
*
*
*
*
Special Conditions for STA
STA: License Exception STA may not be
used to ship or transmit ‘‘technology’’
according to the General Technology Note
for the ‘‘development’’ or ‘‘production’’ of
any of the following equipment or
‘‘software’’: a. Equipment specified by
ECCN 4A001.a.2; b. ‘‘Digital computers’’
having an ‘Adjusted Peak Performance’
(‘APP’) exceeding 12.5 Weighted
TeraFLOPS (WT); or c. ‘‘software’’
specified in the License Exception STA
paragraph found in the License Exception
section of ECCN 4D001 to any of the
destinations listed in Country Group A:6
(See Supplement No. 1 to part 740 of the
EAR).
equal to or greater than +24 dBm (26.15 dBm
EIRP);
d.3. Rated for operation above 66 GHz, but
not exceeding 90 GHz, and having an ERP
equal to or greater than +20 dBm (22.15 dBm
EIRP);
d.4. Rated for operation above 90 GHz;
Note: 5A001.d does not control
‘‘electronically steerable phased array
antennas’’ for landing systems with
instruments meeting ICAO standards
covering Microwave Landing Systems (MLS).
*
*
*
*
*
74. In Supplement No. 1 to part 774
(the Commerce Control List), Category
5—Part 1, ECCN 5B001 is amended by
removing and reserving paragraph b.2.b
and revising paragraph b.4 in the Items
paragraph of the List of Items Controlled
section to read as follows:
■
64685
Items:
*
*
*
*
*
c. * * *
c.2. * * *
c.2.c. * * *
Note: 5E001.c.2.c applies to ‘‘technology’’
for the ‘‘development’’ or ‘‘production’’ of
systems using an optical local oscillator in
the receiving side to synchronize with a
carrier ‘‘laser.’’
*
*
*
*
*
c.4. * * *
c.4.a. Quadrature-Amplitude-Modulation
(QAM) techniques above level 1,024; or
Notes:
1. * * *
N.B.: For ‘‘lasers’’ ‘‘specially designed’’ for
telecommunications equipment or systems,
see ECCN 6A005.
75. In Supplement No. 1 to part 774
(the Commerce Control List), Category
5—Part 1, ECCN 5D001 is amended by
revising paragraph d.4 in the Items
paragraph of the List of Items Controlled
section to read as follows:
*
*
*
*
77. In Supplement No. 1 to part 774
(the Commerce Control List), Category
5—Part 2 is amended by:
■ a. Removing and reserving Note 1,
including the Nota bene, at the
beginning of the Category;
■ b. Revising Note 2;
■ c. Revising the introductory text to
Note 3;
■ d. Revising the Technical Note below
paragraph b.4 in Note 3;
■ e. Revising paragraph 1.b in the Note
to the Cryptography Note;
■ f. Revising the Nota Bene to Note 3
(Cryptography Note);
■ g. Revising the introductory text to
Note 4; and
■ h. Adding the heading ‘‘I.
CRYPTOGRAPHIC ‘‘INFORMATION
SECURITY’’ following the heading that
reads ‘‘A. ‘‘END ITEMS,’’
‘‘EQUIPMENT,’’ ‘‘ACCESSORIES,’’
‘‘ATTACHMENTS,’’ ‘‘PARTS,’’
‘‘COMPONENTS,’’ AND ‘‘SYSTEMS’’.
The revisions and additions read as
follows:
5D001 ‘‘Software’’ as follows (see List of
Items Controlled).
CATEGORY 5—TELECOMMUNICATIONS
AND ‘‘INFORMATION SECURITY’’
*
Part 2—‘‘INFORMATION SECURITY’’
*
List of Items Controlled
■
*
List of Items Controlled
*
*
*
*
*
*
*
5B001 Telecommunication test, inspection
and production equipment,
‘‘components’’ and ‘‘accessories,’’ as
follows (see List of Items Controlled).
*
*
Items:
*
b. * * *
b.1. ‘‘Digital computers’’ having an
‘‘Adjusted Peak Performance’’ (‘‘APP’’)
exceeding 6.0 Weighted TeraFLOPS (WT);
*
*
*
*
*
*
■ 72. In Supplement No. 1 to part 774
(the Commerce Control List), Category
5—Part 1 is amended by removing Nota
Bene 2 (N.B.2) from Note 1 at the
beginning of Category 5—Part 1 and
changing ‘‘N.B.1’’ to read ‘‘N.B’’.
Category 5—Telecommunications and
‘‘Information Security’’
Part 1—Telecommunications
*
*
*
*
73. In Supplement No. 1 to part 774
(the Commerce Control List), Category
5—Part 1, ECCN 5A001 is amended by
revising paragraph d in the Items
paragraph of the List of Items Controlled
section to read as follows:
5A001 Telecommunications systems,
equipment, ‘‘components’’ and
‘‘accessories,’’ as follows (see List of
Items Controlled).
*
*
*
*
*
*
*
*
*
*
*
*
*
Items:
sradovich on DSK3GMQ082PROD with RULES2
*
d. ‘‘Electronically steerable phased array
antennas’’ as follows:
d.1. Rated for operation above 31.8 GHz,
but not exceeding 57 GHz, and having an
Effective Radiated Power (ERP) equal to or
greater than +20 dBm (22.15 dBm Effective
Isotropic Radiated Power (EIRP));
d.2. Rated for operation above 57 GHz, but
not exceeding 66 GHz, and having an ERP
VerDate Sep<11>2014
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Jkt 238001
*
*
*
*
*
*
*
*
*
*
*
*
Items:
*
b. * * *
b.4. Radio equipment employing
Quadrature-Amplitude-Modulation (QAM)
techniques above level 1,024.
■
*
*
*
*
*
*
*
*
*
*
*
Items:
*
d. * * *
d.4. Radio equipment employing
Quadrature-Amplitude-Modulation (QAM)
techniques above level 1,024.
76. In Supplement No. 1 to part 774
(the Commerce Control List), Category
5—Part 1, ECCN 5E001 is amended by:
■ a. Removing and reserving Items
paragraph c.2.b of the List of Items
Controlled section;
■ b. Revising the Note to Items
paragraph c.2.c;
■ c. Revising Items paragraph c.4.a of
the List of Items Controlled section to
read as follows:
5E001 ‘‘Technology’’ as follows (see List of
Items Controlled).
*
*
*
*
*
List of Items Controlled
*
PO 00000
*
*
Frm 00031
*
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■
*
*
■
List of Items Controlled
*
*
List of Items Controlled
*
*
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*
*
*
*
Note 2: Category 5—Part 2, ‘‘information
security’’ products, when accompanying
their user for the user’s personal use or as
tools of trade, are eligible for License
Exceptions TMP or BAG, subject to the terms
and conditions of these license exceptions.
Note 3: Cryptography Note: ECCNs 5A002,
5A003, 5A004 and 5D002, do not control
items as follows:
*
*
*
*
*
b. * * *
4. * * *
Technical Note: For the purpose of the
Cryptography Note, ‘executable software’
means ‘‘software’’ in executable form, from
an existing hardware component excluded
from 5A002, 5A003 or 5A004 by the
Cryptography Note.
Note: * * *
Note to the Cryptography Note:
1. * * *
b. The price and information about the
main functionality of the item are available
before purchase without the need to consult
the vendor or supplier. A simple price
inquiry is not considered to be a
consultation.
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Federal Register / Vol. 81, No. 182 / Tuesday, September 20, 2016 / Rules and Regulations
2. * * *
N.B. to Note 3 (Cryptography Note): You
must submit a classification request or selfclassification report to BIS for mass market
encryption commodities and software
eligible for the Cryptography Note employing
a key length greater than 64 bits for the
symmetric algorithm (or, for commodities
and software not implementing any
symmetric algorithms, employing a key
length greater than 768 bits for asymmetric
algorithms or greater than 128 bits for elliptic
curve algorithms) in accordance with the
requirements of § 740.17(b) of the EAR in
order to be released from the ‘‘EI’’ and ‘‘NS’’
controls of ECCN 5A002 or 5D002.
Note 4: Category 5—Part 2 does not apply
to items incorporating or using
‘‘cryptography’’ and meeting all of the
following:
*
*
*
*
*
A. ‘‘END ITEMS,’’ ‘‘EQUIPMENT,’’
‘‘ACCESSORIES,’’ ‘‘ATTACHMENTS,’’
‘‘PARTS,’’ ‘‘COMPONENTS,’’ AND
‘‘SYSTEMS’’
I. Cryptographic ‘‘Information Security’’
78. In Supplement No. 1 to part 774
(the Commerce Control List), Category
5—Part 2, ECCN 5A002 is amended by:
■ a. Revising the Heading;
■ b. Revising the License Requirements
section;
■ c. Revising the Related Controls
paragraph in the List of Items Controlled
section; and
■ d. Revising Items paragraph in the List
of Items Controlled section.
The revisions read as follows:
■
5A002 ‘‘Information security’’ systems,
equipment and ‘‘components,’’ as
follows (see List of Items Controlled).
License Requirements
Reason for Control: NS, AT, EI
Country chart
(see Supp. No. 1 to
part 738)
Control(s)
sradovich on DSK3GMQ082PROD with RULES2
NS applies to entire
entry.
AT applies to entire
entry.
EI applies to entire
entry.
NS Column 1
AT Column 1
Refer to § 742.15 of
the EAR
License Requirements Note: See § 744.17
of the EAR for additional license
requirements for microprocessors having a
processing speed of 5 GFLOPS or more and
an arithmetic logic unit with an access width
of 32 bit or more, including those
incorporating ‘‘information security’’
functionality, and associated ‘‘software’’ and
‘‘technology’’ for the ‘‘production’’ or
‘‘development’’ of such microprocessors.
*
*
*
*
*
List of Items Controlled
Related Controls: (1) ECCN 5A002.a controls
‘‘components’’ providing the means or
functions necessary for ‘‘information
VerDate Sep<11>2014
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Jkt 238001
security.’’ All such ‘‘components’’ are
presumptively ‘‘specially designed’’ and
controlled by 5A002.a. (2) See USML
Categories XI (including XI(b)) and XIII(b)
(including XIII(b)(2)) for controls on
systems, equipment, and components
described in 5A002.d or .e that are subject
to the ITAR. (3) After classification or selfclassification in accordance with
§ 740.17(b) of the EAR, mass market
encryption commodities that meet
eligibility requirements are released from
‘‘EI’’ and ‘‘NS’’ controls. These
commodities are designated 5A992.c.
*
*
*
*
*
Items:
a. Systems, equipment and components,
for cryptographic ‘‘information security,’’ as
follows:
N.B.: For the control of Global Navigation
Satellite Systems (GNSS) receiving
equipment containing or employing
decryption, see ECCN 7A005, and for related
decryption ‘‘software’’ and ‘‘technology’’ see
7D005 and 7E001.
a.1. Designed or modified to use
‘‘cryptography’’ employing digital techniques
performing any cryptographic function other
than authentication, digital signature, or
execution of copy-protected ‘‘software,’’ and
having any of the following:
Technical Notes:
1. Functions for authentication, digital
signature and the execution of copyprotected ‘‘software’’ include their associated
key management function.
2. Authentication includes all aspects of
access control where there is no encryption
of files or text except as directly related to
the protection of passwords, Personal
Identification Numbers (PINs) or similar data
to prevent unauthorized access.
a.1.a. A ‘‘symmetric algorithm’’ employing
a key length in excess of 56-bits; or
Technical Note: In Category 5—Part 2,
parity bits are not included in the key length.
a.1.b. An ‘‘asymmetric algorithm’’ where
the security of the algorithm is based on any
of the following:
a.1.b.1. Factorization of integers in excess
of 512 bits (e.g., RSA);
a.1.b.2. Computation of discrete logarithms
in a multiplicative group of a finite field of
size greater than 512 bits (e.g., Diffie-Hellman
over Z/pZ); or
a.1.b.3. Discrete logarithms in a group
other than mentioned in 5A002.a.1.b.2 in
excess of 112 bits (e.g., Diffie-Hellman over
an elliptic curve);
a.2. [Reserved]
N.B.: See 5A004.a for items formerly
specified in 5A002.a.2.
Note: 5A002.a does not control any of the
following:
(a) Smart cards and smart card ‘readers/
writers’ as follows:
(1) A smart card or an electronically
readable personal document (e.g., token coin,
e-passport) that meets any of the following:
a. The cryptographic capability is restricted
for use in equipment or systems, excluded
from 5A002, 5A003 or 5A004 by Note 4 in
Category 5—Part 2 or entries (b) to (i) of this
Note, and cannot be reprogrammed for any
other use; or
b. Having all of the following:
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Fmt 4701
Sfmt 4700
1. It is specially designed and limited to
allow protection of ‘personal data’ stored
within;
2. Has been, or can only be, personalized
for public or commercial transactions or
individual identification; and
3. Where the cryptographic capability is
not user-accessible;
Technical Note: ‘Personal data’ includes
any data specific to a particular person or
entity, such as the amount of money stored
and data necessary for authentication.
(2). ‘Readers/writers’ specially designed or
modified, and limited, for items specified by
(a)(1) of this Note;
Technical Note: ‘Readers/writers’ include
equipment that communicates with smart
cards or electronically readable documents
through a network.
(b) Cryptographic equipment specially
designed and limited for banking use or
‘money transactions’;
Technical Note: ‘Money transactions’ in
5A002 Note (b) includes the collection and
settlement of fares or credit functions.
(c) Portable or mobile radiotelephones for
civil use (e.g., for use with commercial civil
cellular radio communication systems) that
are not capable of transmitting encrypted
data directly to another radiotelephone or
equipment (other than Radio Access Network
(RAN) equipment), nor of passing encrypted
data through RAN equipment (e.g., Radio
Network Controller (RNC) or Base Station
Controller (BSC));
(d) Cordless telephone equipment not
capable of end-to-end encryption where the
maximum effective range of unboosted
cordless operation (i.e., a single, unrelayed
hop between terminal and home base station)
is less than 400 meters according to the
manufacturer’s specifications;
(e) Portable or mobile radiotelephones and
similar client wireless devices for civil use,
that implement only published or
commercial cryptographic standards (except
for anti-piracy functions, which may be nonpublished) and also meet the provisions of
paragraphs a.2. to a.5. of the Cryptography
Note (Note 3 in Category 5—Part 2), that have
been customized for a specific civil industry
application with features that do not affect
the cryptographic functionality of these
original non-customized devices;
(f) Wireless ‘‘personal area network’’
equipment that implement only published or
commercial cryptographic standards and
where the cryptographic capability is limited
to a nominal operating range not exceeding
30 meters according to the manufacturer’s
specifications, or not exceeding 100 meters
according to the manufacturer’s
specifications for equipment that cannot
interconnect with more than seven devices;
(g) Equipment meeting all of the following:
1. All cryptographic capability specified by
5A002.a meets any of the following:
a. It cannot be used; or
b. It can only be made useable by means
of ‘‘cryptographic activation;’’ and
2. When necessary as determined by the
appropriate authority in the exporter’s
country, details of the equipment are
accessible and will be provided to the
authority upon request, in order to ascertain
compliance with conditions described above;
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Federal Register / Vol. 81, No. 182 / Tuesday, September 20, 2016 / Rules and Regulations
N.B.1: See 5A002.a for equipment that has
undergone ‘‘cryptographic activation.’’
N.B.2: See also 5A002.b, 5D002.d and
5E002.b.
(h) Mobile telecommunications Radio
Access Network (RAN) equipment designed
for civil use, which also meet the provisions
2. to 5. of part a. of the Cryptography Note
(Note 3 in Category 5—Part 2), having an RF
output power limited to 0.1W (20 dBm) or
less, and supporting 16 or fewer concurrent
users;
(i) Routers, switches or relays, where the
‘‘information security’’ functionality is
limited to the tasks of ‘‘Operations,
Administration or Maintenance’’ (‘‘OAM’’)
implementing only published or commercial
cryptographic standards; or
(j) General purpose computing equipment
or servers, where the ‘‘information security’’
functionality meets all of the following:
1. Uses only published or commercial
cryptographic standards; and
2. Is any of the following:
a. Integral to a CPU that meets the
provisions of Note 3 in Category 5—Part 2;
b. Integral to an operating system that is
not specified by 5D002; or
c. Limited to ‘‘OAM’’ of the equipment.
b. Designed or modified to enable, by
means of ‘‘cryptographic activation,’’ an item
to achieve or exceed the controlled
performance levels for functionality specified
by 5A002.a that would not otherwise be
enabled;
c. Designed or modified to use or perform
‘‘quantum cryptography;’’
Technical Note: ‘‘Quantum cryptography’’
is also known as Quantum Key Distribution
(QKD).
d. Designed or modified to use
cryptographic techniques to generate
channelizing codes, scrambling codes or
network identification codes, for systems
using ultra-wideband modulation techniques
and having any of the following:
d.1. A bandwidth exceeding 500 MHz; or
d.2. A ‘‘fractional bandwidth’’ of 20% or
more;
e. Designed or modified to use
cryptographic techniques to generate the
spreading code for ‘‘spread spectrum’’
systems, not controlled in 5A002.d.,
including the hopping code for ‘‘frequency
hopping’’ systems.
■
79. In Supplement No. 1 to part 774
(the Commerce Control List), Category
5—Part 2, ECCN 5A992 is amended by
removing and reserving Items
paragraphs a and b and revising Items
paragraph c in the List of Items
Controlled section.
The revisions read as follows:
II. DEFEATING, WEAKENING, OR
BYPASSING ‘‘INFORMATION SECURITY’’
5A004 ‘‘Systems,’’ ‘‘equipment’’ and
‘‘components’’ for defeating, weakening
or bypassing ‘‘information security,’’ as
follows (see List of Items Controlled).
■
80. In Supplement No. 1 to part 774
(the Commerce Control List), Category
5—Part 2 is amended by:
■ a. Adding after ECCN 5A992 the
heading ‘‘II. NON-CRYPTOGRAPHIC
‘‘INFORMATION SECURITY’’ ’’ and
adding ECCN 5A003; and
■ b. Adding after ECCN 5A003 the
heading ‘‘III. DEFEATING,
WEAKENING, OR BYPASSING
‘‘INFORMATION SECURITY’’ ’’ and
adding ECCN 5A004.
The additions read as follows:
II. NON-CRYPTOGRAPHIC
‘‘INFORMATION SECURITY’’
5A003 ‘‘Systems,’’ ‘‘equipment’’ and
‘‘components,’’ for non-cryptographic
‘‘information security,’’ as follows (see
List of Items Controlled).
License Requirements
Reason for Control: NS, AT
Control(s)
NS applies to entire
entry.
AT applies to entire
entry.
sradovich on DSK3GMQ082PROD with RULES2
*
*
*
*
*
*
*
*
Items: * * *
c. Commodities classified as mass market
encryption commodities in accordance with
§ 740.17(b) of the EAR.
VerDate Sep<11>2014
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Jkt 238001
AT Column 1
List of Items Controlled
Related Controls: N/A
Related Definitions: N/A
Items:
a. Communications cable systems designed
or modified using mechanical, electrical or
electronic means to detect surreptitious
intrusion;
Note: 5A003.a applies only to physical
layer security.
b. ‘‘Specially designed’’ or modified to
reduce the compromising emanations of
information-bearing signals beyond what is
necessary for health, safety or
electromagnetic interference standards.
License Requirements
Reason for Control: NS, AT, EI
Control(s)
*
List of Items Controlled
NS Column 2
List Based License Exceptions (See Part 740
for a description of all license exceptions)
LVS: Yes: $500 for ‘‘components.’’ N/A for
systems and equipment.
GBS: N/A
CIV: N/A
5A992 Equipment not controlled by 5A002
(see List of Items Controlled).
*
Country chart
(see Supp. No. 1 to
part 738)
NS applies to entire
entry.
AT applies to entire
entry.
EI applies to entire
entry.
PO 00000
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(see Supp. No. 1 to
part 738)
NS Column 1
AT Column 1
Refer to § 742.15 of
the EAR
Sfmt 4700
64687
License Requirements Note: See § 744.17
of the EAR for additional license
requirements for microprocessors having a
processing speed of 5 GFLOPS or more and
an arithmetic logic unit with an access width
of 32 bit or more, including those
incorporating ‘‘information security’’
functionality, and associated ‘‘software’’ and
‘‘technology’’ for the ‘‘production’’ or
‘‘development’’ of such microprocessors.
List Based License Exceptions (See Part 740
for a description of all license exceptions)
LVS: Yes: $500 for ‘‘components.’’ N/A for
systems and equipment.
GBS: N/A
CIV: N/A
ENC: Yes for certain EI controlled
commodities, see § 740.17 of the EAR for
eligibility.
List of Items Controlled
Related Controls: ECCN 5A004.a controls
‘‘components’’ providing the means or
functions necessary for ‘‘information
security.’’ All such ‘‘components’’ are
presumptively ‘‘specially designed’’ and
controlled by 5A004.a.
Related Definitions: N/A
Items:
a. Designed or modified to perform
‘cryptanalytic functions.’
Note: 5A004.a includes systems or
equipment, designed or modified to perform
‘cryptanalytic functions’ by means of reverse
engineering.
Technical Note: ‘Cryptanalytic functions’
are functions designed to defeat
cryptographic mechanisms in order to derive
confidential variables or sensitive data,
including clear text, passwords or
cryptographic keys.
b. [Reserved]
81. In Supplement No. 1 to part 774
(the Commerce Control List), Category
5—Part 2, ECCN 5B002 is amended by
revising the Items paragraph in the List
of Items Controlled section to read as
follows:
■
5B002 ‘‘Information Security’’ test,
inspection and ‘‘production’’ equipment,
as follows (see List of Items Controlled).
*
*
*
*
*
List of Items Controlled
*
*
*
*
*
Items:
a. Equipment ‘‘specially designed’’ for the
‘‘development’’ or ‘‘production’’ of
equipment controlled by 5A002, 5A003,
5A004 or 5B002.b;
b. Measuring equipment ‘‘specially
designed’’ to evaluate and validate the
‘‘information security’’ functions of
equipment controlled by 5A002, 5A003 or
5A004, or of ‘‘software’’ controlled by
5D002.a or 5D002.c.
82. In Supplement No. 1 to part 774
(the Commerce Control List), Category
5—Part 2, ECCN 5D002 is amended by:
■ a. Adding, as well as revising, EI
controls to the License Requirement
table in the License Requirements
section;
■
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b. Removing the EI sentence,
including the two Notes, under the
License Requirements Note;
■ c. Revising the Related Controls
paragraph in the List of Items Controlled
Section; and
■ d. Revising Items paragraphs a. and
c.1.
The revisions and additions read as
follows:
■
5D002 ‘‘Software’’ as follows (see List of
Items Controlled)
License Requirements
Reason for Control: * * *
*
*
*
*
*
83. In Supplement No. 1 to part 774
(the Commerce Control List), Category
5—Part 2, ECCN 5D992 is amended by
removing and reserving Items
paragraphs a and b, and revising Items
paragraph c in the Items paragraph of
the List of Items Controlled section to
read as follows:
■
5D992 ‘‘Information Security’’ ‘‘software’’
not controlled by 5D002 as follows (see
List of Items Controlled).
Country chart
(see Supp. No. 1 to
part 738)
Control(s)
c.1. ‘‘Software’’ having the characteristics,
or performing or simulating the functions of
the equipment, controlled by 5A002, 5A003
or 5A004;
*
License Requirements Note: See § 744.17
of the EAR for additional license
requirements for microprocessors having a
processing speed of 5 GFLOPS or more and
an arithmetic logic unit with an access width
of 32 bit or more, including those
incorporating ‘‘information security’’
functionality, and associated ‘‘software’’ and
‘‘technology’’ for the ‘‘production’’ or
‘‘development’’ of such microprocessors.
*
*
*
*
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*
*
*
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*
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c. * * *
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*
*
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84. In Supplement No. 1 to part 774
(the Commerce Control List), Category
5—Part 2, ECCN 5E002 is amended by:
■ a. Adding an EI control row to the
License Requirements table in the
License Requirements section;
■ b. Removing the EI sentence after the
License Requirements table in the
License Requirements section;
■ c. Revising Note 2 in the License
Requirements Notes in the License
Requirements section;
■ d. Revising the Related Controls
paragraph of the List of Items Controlled
section;
■ e. Revising Items paragraph a in the
List of Items Controlled section.
The revisions and additions read as
follows:
■
5E002 ‘‘Technology’’ as follows (see List of
Items Controlled).
License Requirements
Reason for Control: * * *
Control(s)
Items:
a. ‘‘Software’’ ‘‘specially designed’’ or
modified for the ‘‘development,’’
‘‘production’’ or ‘‘use’’ of equipment
controlled by 5A002, 5A003 or 5A004, or of
‘‘software’’ controlled by 5D002.c;
*
*
Items:
a. [Reserved]
b. [Reserved]
c. ‘‘Software’’ classified as mass market
encryption software in accordance with
§ 740.17(b) of the EAR.
*
List of Items Controlled
Related Controls: After classification or selfclassification in accordance with
§ 740.17(b) of the EAR, mass market
encryption software that meet eligibility
requirements are released from ‘‘EI’’ and
‘‘NS’’ controls. This software is designated
as 5D992.c.
*
*
List of Items Controlled
*
*
*
*
*
*
EI applies to ‘‘softSee § 742.15 of the
ware’’ in 5D002.a,
EAR
c.1 and .d, for com- Note: Encryption softmodities or ‘‘software is controlled
ware’’ controlled for
because of its funcEI reasons in
tional capacity, and
ECCNs 5A002,
not because of any
5A004 or 5D002.
informational value
of such software;
such software is not
accorded the same
treatment under the
EAR as other ‘‘software’; and for export licensing purposes, encryption
software is treated
under the EAR in
the same manner
as a commodity included in ECCN
5A002
*
Country chart
(see Supp. No. 1 to
part 738)
*
*
*
*
*
EI applies to ‘‘techRefer to § 742.15 of
nology’’ in 5E002.a
the EAR
for commodities or
‘‘software’’ controlled for EI reasons in ECCNs
5A002, 5A004 or
5D002, and to
‘‘technology’’ in
5E002.b.
License Requirements Notes: * * * (2)
When a person performs or provides
technical assistance that incorporates, or
otherwise draws upon, ‘‘technology’’ that
PO 00000
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was either obtained in the United States or
is of US-origin, then a release of the
‘‘technology’’ takes place. Such technical
assistance, when rendered with the intent to
aid in the ‘‘development’’ or ‘‘production’’ of
encryption commodities or software that
would be controlled for ‘‘EI’’ reasons under
ECCN 5A002, 5A004 or 5D002, may require
authorization under the EAR even if the
underlying encryption algorithm to be
implemented is from the public domain or is
not of U.S.-origin.
*
*
*
*
*
List of Items Controlled
Related Controls: See also 5E992. This entry
does not control ‘‘technology’’ ‘‘required’’
for the ‘‘use’’ of equipment excluded from
control under the Related Controls
paragraph or the Technical Notes in ECCN
5A002 or ‘‘technology’’ related to
equipment excluded from control under
ECCN 5A002.
*
*
*
*
*
Items:
a. ‘‘Technology’’ according to the General
Technology Note for the ‘‘development,’’
‘‘production’’ or ‘‘use’’ of equipment
controlled by 5A002, 5A003, 5A004 or
5B002, or of ‘‘software’’ controlled by
5D002.a or 5D002.c.
*
*
*
*
*
85. In Supplement No. 1 to part 774
(the Commerce Control List), Category
5—Part 2, ECCN 5E992 is amended by
removing and reserving Items paragraph
a.
■ 86. In Supplement No. 1 to part 774
(the Commerce Control List), Category 6,
ECCN 6A001 is amended by:
■ a. Adding double quotes around the
term ‘‘components’’ in the Heading,
introductory text of Items paragraph a,
a.1, a.1.d, a.2 and the Note to 6A001.a.2
in the List of Items Controlled section;
■ b. Revising Items paragraphs a.1.d.2
and a.1.e.2 in the List of Items
Controlled section, as set forth below;
and
■ c. Adding double quotes around the
term ‘‘accuracy’’ in Items paragraphs
a.2.d.1, b.1.b, and b.2 in the List of Items
Controlled section.
The additions and revisions read as
follows:
■
6A001 Acoustic systems, equipment and
‘‘components,’’ as follows (see List of
Items Controlled).
*
*
*
*
*
List of Items Controlled
*
*
*
*
*
Items:
a. * * *
a.1. * * *
a.1.d. * * *
a.1.d.2. Determined position error of less
than 10 m rms (root mean square) when
measured at a range of 1,000 m;
Note: * * *
a.1.e. * * *
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a.1.e.2. Determined position error of less
than 15 m rms (root mean square) when
measured at a range of 530 m; and
*
*
*
*
*
87. In Supplement No. 1 to part 774
(the Commerce Control List), Category 6,
ECCN 6A002 is amended by adding
paragraph d. to Note 2 to 6A002.a.3 in
the Items paragraph of the List of Items
Controlled section, to read as follows:
■
6A002 Optical sensors and equipment, and
‘‘components’’ therefor, as follows (see
List of Items Controlled).
*
*
*
*
*
List of Items Controlled
*
*
*
*
*
*
*
*
*
*
*
*
*
88. In Supplement No. 1 to part 774
(the Commerce Control List), Category 6,
ECCN 6A003 is amended by revising 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).
*
*
*
*
List of Items Controlled
Related Controls: (1) See ECCNs 6E001
(‘‘development’’), 6E002 (‘‘production’’),
and 6E201 (‘‘use’’) for technology for items
controlled under this entry. (2) Also see
ECCN 6A203. (3) See ECCN 0A919 for
foreign-made military commodities that
incorporate cameras described in
6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c. (4)
Section 744.9 imposes license
requirements on cameras described in
6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c if
being exported for incorporation into an
item controlled by ECCN 0A919 or for a
military end user.
*
*
*
*
*
89. In Supplement No. 1 to part 774
(the Commerce Control List), Category 6,
ECCN 6A004 is amended by:
■ a. Adding a Note to Items paragraph
a.3 in the List of Items Controlled
section; and
■ b. Revising Items paragraphs d.2.a.3
and d.2.b, to read as follows:
The addition and revisions read as
follows:
sradovich on DSK3GMQ082PROD with RULES2
■
6A004 Optical equipment and
‘‘components,’’ as follows (see List of
Items Controlled).
*
*
*
*
*
List of Items Controlled
*
*
*
*
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*
*
*
*
*
*
*
90. In Supplement No. 1 to part 774
(the Commerce Control List), Category 6,
ECCN 6A005 is amended by:
■ a. Revising the introductory text to
Note 2 located after Items paragraph
a.6.b.2 and the Technical Note located
after Note 2 in the List of Items
Controlled section;
■ b. Revising Items paragraphs b.6.a.2
and b.6.b.2 in the List of Items
Controlled section;
■ c. Removing the Note to 6A005.c.1 in
the Items paragraph of the List of Items
Controlled section;
■ d. Adding a Note to 6A005.c.1 after
Items paragraph c.1.b in the List of
Items Controlled section;
■ e. Adding a Note to 6A005.d.1.d.1.d in
the Items paragraph d.1.d.1.d of the List
of Items Controlled section;
■ f. Adding a Note to 6A005.d.1.d.2.d
after the Items paragraph d.1.d.2.d of the
List of Items Controlled section;
■ g. Revising Items paragraph e.3
introductory text, e.3.c.1, e.3.c.2, f.3,
and g.1 through g.3 of the List of Items
Controlled section;
■ h. Revising the Technical Note at the
end of the Items paragraph in the List
of Items Controlled section.
The revisions and additions read as
follows:
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
*
*
*
*
*
*
*
*
*
Items:
*
a. * * *
a.6. * * *
a.6.b. * * *
a.6.b.2. * * *
Note 2: 6A005.a.6.b does not apply to
multiple transverse mode, industrial ‘‘lasers’’
having any of the following:
*
*
*
*
*
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defined as the output power of the ‘‘laser’’
divided by the squared Beam Parameter
Product (BPP), i.e., (output power)/BPP2.
*
*
*
*
*
b. * * *
b.6. * * *
b.6.a. * * *
b.6.a.2. ‘‘Average output power’’ exceeding
30 W; or
*
*
*
*
*
b.6.b. * * *
b.6.b.2. ‘‘Average output power’’ exceeding
50 W; or
*
*
*
*
*
c. * * *
c.1. * * *
c.1.b. * * *
Note: 6A005.c.1 does not apply to dye
‘‘lasers’’ or other liquid ‘‘lasers,’’ having a
multimode output and a wavelength of 150
nm or more but not exceeding 600 nm and
all of the following:
1. Output energy less than 1.5 J per pulse
or a ‘‘peak power’’ less than 20 W; and
2. Average or CW output power less than
20 W.
*
*
*
*
*
d. * * *
d.1. * * *
d.1.d. * * *
d.1.d.1. * * *
d.1.d.1.d. * * *
Note: 6A005.d.1.d.1.d does not apply to
epitaxially-fabricated monolithic devices.
*
*
*
*
*
d.1.d.2.d. * * *
Note: 6A005.d.1.d.2.d does not apply to
epitaxially-fabricated monolithic devices.
*
*
*
*
*
e. * * *
e.3. Fiber ‘‘laser’’ ‘‘components’’ as follows:
*
*
*
*
*
e.3.c. * * *
e.3.c.1. Designed for spectral or coherent
beam combination of 5 or more fiber ‘‘lasers;’’
and
e.3.c.2. CW ‘‘Laser’’ Induced Damage
Threshold (LIDT) greater than or equal to 10
kW/cm2;
f. * * *
f.3. Optical equipment and ‘‘components,’’
‘‘specially designed’’ for a phased-array
‘‘SHPL’’ system for coherent beam
combination to an ‘‘accuracy’’ of l/10 at the
designed wavelength, or 0.1 mm, whichever
is the smaller;
*
*
*
*
*
g. * * *
g.1. CW ‘‘laser’’ output power greater than
or equal to 20 mW;
g.2. ‘‘Laser’’ frequency stability equal to or
better (less) than 10 MHz;
g.3. ‘‘Laser’’ wavelengths equal to or
exceeding 1,000 nm but not exceeding 2,000
nm;
*
*
*
*
*
Technical Note: ‘Laser acoustic detection
equipment’ is sometimes referred to as a
‘‘Laser’’ Microphone or Particle Flow
Detection Microphone.
91. In Supplement No. 1 to part 774
(the Commerce Control List), Category 6,
ECCN 6A007 is amended by adding
■
*
Technical Note: For the purpose of
6A005.a.6.b, Note 2 (a)(2), ‘brightness’ is
Items:
VerDate Sep<11>2014
*
d. * * *
d.2. * * *
d.2.a. * * *
d.2.a.3. An angular ‘‘accuracy’’ of 10 mrad
(microradians) or less (better);
d.2.b. Resonator alignment equipment
having bandwidths equal to or more than 100
Hz and an ‘‘accuracy’’ of 10 mrad or less
(better);
■
Note 2: * * *
d. Thermopile arrays having less than
5,130 elements;
*
*
*
*
Items:
a. * * *
a.3. * * *
*
a. * * *
a.3. * * *
Note: 6A004.a.2 and 6A004.a.3 do not
apply to mirrors ‘‘specially designed’’ to
direct solar radiation for terrestrial heliostat
installations.
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double quotes around the term
‘‘accuracy’’ in Items paragraphs .a, b.1
and b.2 in the List of Items Controlled
section.
■ 92. In Supplement No. 1 to part 774
(the Commerce Control List), Category 6,
ECCN 6A008 is amended by:
■ a. Adding double quotes around the
term ‘‘accuracy’’ in Items paragraph a.2
in the List of Items Controlled section;
■ b. Adding double quotes around the
term ‘‘lasers’’ in Items paragraph j.3 in
the List of Items Controlled section;
■ c. Adding double quotes around the
term ‘‘aircraft’’ in Note 2 of the
Technical Notes at the end of the Items
paragraph in the List of Items Controlled
section.
■ 93. In Supplement No. 1 to part 774
(the Commerce Control List), Category 6,
ECCN 6B004 is amended by revising
Items paragraph a in the List of Items
Controlled section to read as follows:
6B004 Optical equipment as follows (see
List of Items Controlled).
*
*
*
*
*
List of Items Controlled
*
*
*
*
*
*
*
*
*
*
94. In Supplement No. 1 to part 774
(the Commerce Control List), Category 6,
ECCN 6B007 is amended by adding
double quotes around the term
‘‘accuracy’’ in the Heading.
■ 95. In Supplement No. 1 to part 774
(the Commerce Control List), Category 6,
ECCN 6C005 is amended by adding
double quotes around the term ‘‘laser’’
in Items paragraphs b.1 and b.2 in the
List of Items Controlled section.
■ 96. In Supplement No. 1 to part 774
(the Commerce Control List), Category 6,
ECCN 6E003 is amended by revising the
Items paragraph in the List of Items
Controlled section to read as follows:
■
6E003 Other ‘‘technology’’ as follows (see
List of Items Controlled).
*
*
*
*
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*
*
*
18:04 Sep 19, 2016
*
*
*
*
List of Items Controlled
Items:
ACOUSTICS
a. [Reserved]
OPTICAL SENSORS
b. [Reserved]
CAMERAS
c. [Reserved]
OPTICS
d. ‘‘Technology’’ as follows:
d.1. Optical surface coating and treatment
‘‘technology,’’ ‘‘required’’ to achieve an
VerDate Sep<11>2014
7A003 ‘Inertial measurement equipment or
systems’, having any of the following
(see List of Items Controlled).
*
List of Items Controlled
*
97. In Supplement No. 1 to part 774
(the Commerce Control List), Category 7,
ECCN 7A003 is amended by:
■ a. Revising the Technical Note at the
beginning of the Items paragraph of the
List of Items Controlled section;
■ b. Adding double quotes around the
term ‘‘accuracies’’ in the introductory
paragraph in the Items paragraph .a, and
the term ‘‘accuracy’’ in the Items
paragraphs b, c.1, and c.2 in the List of
Items Controlled section;
■ c. Removing single quotes and adding
double quotes around the term ‘‘Circular
Error Probable’’ in the Items paragraph
a.1 in the List of Items Controlled
section; and
■ d. Removing single quotes and adding
double quotes around the term ‘‘CEP’’ in
Items paragraphs a.1, a.2, a.3, and .b in
the List of Items Controlled section.
The revision reads as follows:
■
Items:
a. Equipment for measuring absolute
reflectance to an ‘‘accuracy’’ of equal to or
better than 0.1% of the reflectance value;
*
‘optical thickness’ uniformity of 99.5% or
better for optical coatings 500 mm or more
in diameter or major axis length and with a
total loss (absorption and scatter) of less than
5 × 10¥3;
N.B.: See also 2E003.f.
Technical Note: ‘Optical thickness’ is the
mathematical product of the index of
refraction and the physical thickness of the
coating.
d.2. Optical fabrication ‘‘technology’’ using
single point diamond turning techniques to
produce surface finish ‘‘accuracies’’ of better
than 10 nm rms on non-planar surfaces
exceeding 0.5 m2;
LASERS
e. ‘‘Technology’’ ‘‘required’’ for the
‘‘development,’’ ‘‘production’’ or ‘‘use’’ of
‘‘specially designed’’ diagnostic instruments
or targets in test facilities for ‘‘SHPL’’ testing
or testing or evaluation of materials
irradiated by ‘‘SHPL’’ beams;
MAGNETIC AND ELECTRIC FIELD
SENSORS
f. [Reserved]
GRAVIMETERS
g. [Reserved]
RADAR
h. [Reserved]
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*
*
*
*
*
*
*
*
*
Items:
*
*
*
*
*
■ 98. In Supplement No. 1 to part 774
(the Commerce Control List), Category 7,
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8A001 Submersible vehicles and surface
vessels, as follows (see List of Items
Controlled).
*
*
*
*
*
List of Items Controlled
Related Controls: For the control status of
equipment for submersible vehicles, see:
Category 6 for sensors; Categories 7 and 8
for navigation equipment; Category 8A for
underwater equipment.
*
Technical note:
‘Positional aiding references’
independently provide position, and include:
a. Global Navigation Satellite Systems
(GNSS);
b. ‘‘Data-Based Referenced Navigation’’
(‘‘DBRN’’).
*
ECCN 7A004 is amended by adding
double quotes around the term
‘‘accuracy’’ in the Items paragraph a in
the List of Items Controlled section.
■ 99. In Supplement No. 1 to part 774
(the Commerce Control List), Category 7,
ECCN 7A008 is amended by adding
double quotes around the term
‘‘accuracy’’ in the Heading.
■ 100. In Supplement No. 1 to part 774
(the Commerce Control List), Category 7,
ECCN 7B001 is amended by adding
double quotes around the term
‘‘aircraft’’ in paragraph (1) of the Related
Definitions paragraph in the List of
Items Controlled section.
■ 101. In Supplement No. 1 to part 774
(the Commerce Control List), Category 7,
ECCN 7B002 is amended by adding
double quotes around the term
‘‘accuracies’’ in Items paragraphs .a and
.b of the List of Items Controlled section.
■ 102. In Supplement No. 1 to part 774
(the Commerce Control List), Category 7,
ECCN 7E004 is amended by:
■ a. Adding double quotes around the
term ‘‘accuracy’’ in Items paragraph a.7
of the List of Items Controlled section;
■ b. Adding double quotes around the
term ‘‘aircraft’’ in the Items paragraphs
b.1, b.7.b.4, b.8.a and b.8.b of the List of
Items Controlled section; and
■ c. Removing the word ‘‘directional’’
and adding in its place ‘‘direction’’ in
the Items paragraph c.2 of the List of
Items Controlled section.
■ 103. In Supplement No. 1 to part 774
(the Commerce Control List), Category 8,
ECCN 8A001 is amended by:
■ a. Revising the Related Controls
paragraph in the List of Items Controlled
section, as set forth below;
■ b. Adding double quotes around the
term ‘‘accuracies’’ in Items paragraph
e.2 of the List of Items Controlled
section.
The revision reads as follows:
*
*
*
*
104. In Supplement No. 1 to part 774
(the Commerce Control List), Category 8,
ECCN 8A002 is amended by:
■ a. Revising the GBS and CIV
paragraphs in the List Based License
Exception section;
■ b. Revising Items paragraph d of the
List of Items Controlled section;
■ c. Removing and reserving Items
paragraph e in the List of Items
■
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8A002 Marine systems, equipment, ‘‘parts’’
and ‘‘components,’’ as follows (see List
of Items Controlled).
b. Casting tooling, manufactured from
refractory metals or ceramics, as follows:
b.1. Cores;
b.2. Shells (moulds);
b.3. Combined core and shell (mould)
units.
*
*
Controlled section. The revisions read
as follows:
*
*
*
*
List Based License Exceptions (see Part 740
for a description of all license exceptions)
*
*
*
*
*
GBS: Yes for manipulators for civil end uses
(e.g., underwater oil, gas or mining
operations) controlled by 8A002.i.2 and
having 5 degrees of freedom of movement;
and 8A002.r.
CIV: Yes for manipulators for civil end uses
(e.g., underwater oil, gas or mining
operations) controlled by 8A002.i.2 and
having 5 degrees of freedom of movement;
and 8A002.r.
*
*
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*
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List of Items Controlled
*
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*
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Items:
*
d. Underwater vision systems ‘‘specially
designed’’ or modified for remote operation
with an underwater vehicle, employing
techniques to minimize the effects of back
scatter and including range-gated
illuminators or ‘‘laser’’ systems;
*
*
*
*
■ 105. In Supplement No. 1 to part 774
(the Commerce Control List), Category 9,
ECCN 9A001 is amended by:
■ a. Adding double quotes around the
term ‘‘aircraft’’ in paragraph b. of Note
1 to Items 9A001.a in the List of Items
Controlled section; and
■ b. Adding double quotes around the
term ‘‘aircraft’’ in Items paragraph b
introductory text in the List of Items
Controlled section.
■ 106. In Supplement No. 1 to part 774
(the Commerce Control List), Category 9,
ECCN 9A004 is amended by removing
the reference to ‘‘5A002.a.5, 5A002.a.9’’
and adding in its place ‘‘5A002.c,
5A002.e’’ in Items paragraph d in the
List of Items Controlled section.
■ 107. In Supplement No. 1 to part 774
(the Commerce Control List), Category 9,
ECCN 9A012 is amended by removing
the Note at the end of the Items
paragraph in the List of Items Controlled
section.
■ 108. In Supplement No. 1 to part 774
(the Commerce Control List), Category 9,
ECCN 9B001 is amended by revising
Items paragraph b in the List of Items
Controlled section to read as follows:
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*
9B001 Equipment, tooling or fixtures,
‘‘specially designed’’ for manufacturing
gas turbine engine blades, vanes or ‘‘tip
shrouds,’’ as follows (See List of Items
Controlled).
*
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Items:
*
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109. In Supplement No. 1 to part 774
(the Commerce Control List), Category 9,
ECCN 9E003 is amended by:
■ a. Adding double quotes around the
term ‘‘aircraft’’ in two places in Related
Controls paragraph (2) in the List of
Items Controlled section;
■ b. Adding double quotes around the
term ‘‘aircraft’’ in the Note to 9E003.h in
the List of Items Controlled section;
■ c. Adding double quotes around the
term ‘‘aircraft’’ in Items paragraph j and
the Nota Bene that follows in the List of
Items Controlled section.
■
Supplement No. 2 to Part 774
[Amended]
■ 110. Supplement No. 2 to part 774
‘‘General Technology And Software
Notes’’ is amended by adding paragraph
3 to read as follows:
Supplement No. 2 To Part 774—General
Technology and Software Notes
*
*
*
*
*
3. General ‘‘Information Security’’ Note.
‘‘Information security’’ items or functions
should be considered against the provisions
in Category 5–Part 2, even if they are
components, ‘‘software’’ or functions of other
items.
*
*
*
*
*
111. Supplement No. 6 to part 774
‘‘Sensitive List’’ is amended by revising
paragraphs (2)(i) ‘‘2D001,’’ (2)(ii)
‘‘2E001,’’ (2)(iii) ‘‘2E002,’’ (4)(ii)
‘‘4D001,’’ (4)(iii) ‘‘4E001,’’ to read as
follows:
■
Supplement No. 6 to Part 774—
Sensitive List
*
*
*
*
*
(2) Category 2
(i) 2D001—‘‘Software,’’ other than that
controlled by 2D002, specially designed for
the ‘‘development’’ or ‘‘production’’ of
equipment as follows:
(A) Machine tools for turning (ECCN
2B001.a) having two or more axes which can
be coordinated simultaneously for
‘‘contouring control’’ having any of the
following:
(1) ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
0.9 mm along one or more linear axis with a
travel length less than 1.0 m; or
(2) ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
1.1 mm along one or more linear axis with a
travel length equal to or greater than 1.0 m;
(B) Machine tools for milling (ECCN
2B001.b) having any of the following:
(1) Three linear axes plus one rotary axis
which can be coordinated simultaneously for
‘‘contouring control’’ having any of the
following:
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(a) ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
0.9 mm along one or more linear axis with a
travel length less than 1.0 m; or
(b) ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
1.1 mm along one or more linear axis with a
travel length equal to or greater than 1.0 m;
(2) Specified by 2B001.b.2.a, 2B001.b.2.b or
2B001.b.2.c and having a ‘‘unidirectional
positioning repeatability’’ equal to or less
(better) than 1.1 mm along one or more linear
axis; or
(3) A ‘‘unidirectional positioning
repeatability’’ for jig boring machines equal
to or less (better) than 1.1 mm along one or
more linear axis;
(C) Electrical discharge machines (EDM)
controlled under 2B001.d;
(D) Deep-hole-drilling machines controlled
under 2B001.f;
(E) ‘‘Numerically controlled’’ or manual
machine tools controlled under 2B003.
(ii) 2E001—’’Technology’’ according to the
General Technology Note for the
‘‘development’’ of ‘‘software’’ specified by
2D001 described in this Supplement or for
the ‘‘development’’ of equipment as follows:
(A) Machine tools for turning (ECCN
2B001.a) having two or more axes which can
be coordinated simultaneously for
‘‘contouring control’’ having any of the
following:
(1) ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
0.9 mm along one or more linear axis with a
travel length less than 1.0 m; or
(2) ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
1.1 mm along one or more linear axis with a
travel length equal to or greater than 1.0 m
(B) Machine tools for milling (ECCN
2B001.b) having any of the following:
(1) Three linear axes plus one rotary axis
which can be coordinated simultaneously for
‘‘contouring control’’ having any of the
following:
(a) ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
0.9 mm along one or more linear axis with a
travel length less than 1.0 m; or
(b) ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
1.1 mm along one or more linear axis with a
travel length equal to or greater than 1.0 m;
(2) Specified by 2B001.b.2.a, 2B001.b.2.b or
2B001.b.2.c and having a ‘‘unidirectional
positioning repeatability’’ equal to or less
(better) than 1.1 mm along one or more linear
axis; or
(3) A ‘‘unidirectional positioning
repeatability’’ for jig boring machines equal
to or less (better) than 1.1 mm along one or
more linear axis;
(C) Electrical discharge machines (EDM)
controlled under 2B001.d;
(D) Deep-hole-drilling machines controlled
under 2B001.f;
(E) ‘‘Numerically controlled’’ or manual
machine tools controlled under 2B003.
(iii) 2E002—‘‘Technology’’ according to the
General Technology Note for the
‘‘production’’ of equipment as follows:
(A) Machine tools for turning (ECCN
2B001.a) having two or more axes which can
be coordinated simultaneously for
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‘‘contouring control’’ having any of the
following:
(1) ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
0.9 mm along one or more linear axis with a
travel length less than 1.0 m; or
(2) ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
1.1 mm along one or more linear axis with a
travel length equal to or greater than 1.0 m;
(B) Machine tools for milling (ECCN
2B001.b) having any of the following:
(1) Three linear axes plus one rotary axis
which can be coordinated simultaneously for
‘‘contouring control’’ having any of the
following:
(a) ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
0.9 mm along one or more linear axis with a
travel length less than 1.0 m; or
(b) ‘‘Unidirectional positioning
repeatability’’ equal to or less (better) than
1.1 mm along one or more linear axis with a
travel length equal to or greater than 1.0 m;
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(2) Specified by 2B001.b.2.a, 2B001.b.2.b or
2B001.b.2.c and having a ‘‘unidirectional
positioning repeatability’’ equal to or less
(better) than 1.1 mm along one or more linear
axis; or
(3) A ‘‘unidirectional positioning
repeatability’’ for jig boring machines equal
to or less (better) than 1.1 mm along one or
more linear axis;
(C) Electrical discharge machines (EDM)
controlled under 2B001.d;
(D) Deep-hole-drilling machines controlled
under 2B001.f;
(E) ‘‘Numerically controlled’’ or manual
machine tools controlled under 2B003.
‘‘digital computers’’ having an ‘Adjusted
Peak Performance’ (‘APP’) exceeding 12.5
Weighted TeraFLOPS (WT).
(iii) 4E001—‘‘Technology’’ according to the
General Technology Note for the
‘‘development’’ or ‘‘production’’ of any of the
following equipment or ‘‘software’’:
equipment controlled under ECCN
4A001.a.2, ‘‘digital computers’’ having an
‘Adjusted Peak Performance’ (‘APP’)
exceeding 12.5 Weighted TeraFLOPS (WT),
or ‘‘software’’ controlled under the specific
provisions of 4D001 described in this
Supplement.
*
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(4) Category 4
*
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(ii) 4D001—‘‘Software’’ ‘‘specially
designed’’ for the ‘‘development’’ or
‘‘production’’ of equipment controlled under
ECCN 4A001.a.2 or for the ‘‘development’’ or
‘‘production’’ of
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Dated: September 1, 2016.
Kevin J. Wolf,
Assistant Secretary for Export
Administration.
[FR Doc. 2016–21544 Filed 9–19–16; 8:45 am]
BILLING CODE 3510–33–P
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[Federal Register Volume 81, Number 182 (Tuesday, September 20, 2016)]
[Rules and Regulations]
[Pages 64655-64692]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-21544]
[[Page 64655]]
Vol. 81
Tuesday,
No. 182
September 20, 2016
Part III
Department of Commerce
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Defense Acquisition Regulations System
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15 CFR Parts 730, 734, 738, et al.
Wassenaar Arrangement 2015 Plenary Agreements Implementation, Removal
of Foreign National Review Requirements, and Information Security
Updates; Final Rule
Federal Register / Vol. 81 , No. 182 / Tuesday, September 20, 2016 /
Rules and Regulations
[[Page 64656]]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 730, 734, 738, 740, 742, 743, 748, 770, 772, and 774
[160217120-6120-01]
RIN 0694-AG85
Wassenaar Arrangement 2015 Plenary Agreements Implementation,
Removal of Foreign National Review Requirements, and Information
Security Updates
AGENCY: Bureau of Industry and Security, Commerce.
ACTION: Final rule.
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SUMMARY: The Bureau of Industry and Security (BIS) maintains, as part
of its Export Administration Regulations (EAR), the Commerce Control
List (CCL), which identifies certain items subject to Department of
Commerce jurisdiction. This final rule revises the CCL, as well as
corresponding parts of the EAR, to implement changes made to the
Wassenaar Arrangement's List of Dual-Use Goods and Technologies (WA
List) maintained and agreed to by governments participating in the
Wassenaar Arrangement on Export Controls for Conventional Arms and
Dual-Use Goods and Technologies (Wassenaar Arrangement, or WA) at the
December 2015 WA Plenary Meeting (the Plenary). The Wassenaar
Arrangement advocates implementation of effective export controls on
strategic items with the objective of improving regional and
international security and stability. This rule harmonizes the CCL with
the changes made to the WA List at the Plenary by revising Export
Control Classification Numbers (ECCNs) controlled for national security
reasons in each category of the CCL, as well as making other associated
changes to the EAR.
The changes to the WA List include raising the Adjusted Peak
Performance (APP) for high performance computers. The President's
report for High Performance Computers was sent to Congress on June 1,
2016, to set forth the new APP in accordance with the National Defense
Authorization Act (NDAA) for FY1998.
This rule also makes changes to the EAR that were not agreed to at
the WA Plenary. APP parameters are amended in several places in the EAR
by this rule, such as APP parameters in the de minimis rules, License
Exception APP, and related reporting requirements. BIS is also updating
license requirements and policies associated with Category 5--Part 2,
including revising Export Control Classification Numbers 5A992, 5D992
and 5E992. In addition, this rule removes the Foreign National Review
requirement associated with deemed exports under License Exceptions APP
and CIV.
DATES: This rule is effective: September 20, 2016.
FOR FURTHER INFORMATION CONTACT: For general questions contact Sharron
Cook, Office of Exporter Services, Bureau of Industry and Security,
U.S. Department of Commerce at 202-482-2440 or by email:
Sharron.Cook@bis.doc.gov.
For technical questions contact:
Categories 0, 1 & 2: Michael Rithmire at 202-482-6105
Category 3: Brian Baker at 202-482-5534
Categories 4 & 5: Information Technology and Control Division 202-482-
0707
Category 6 (optics): Chris Costanzo at 202-482-0718
Category 6 (lasers): Mark Jaso at 202-482-0987
Category 6 (sensors and cameras): John Varesi 202-482-1114
Category 8: Michael Tu 202-482-6462
Categories 7 & 9: Daniel Squire 202-482-3710 or Reynaldo Garcia 202-
482-3462
Category 9x515 (Satellites): Mark Jaso at 202-482-0987 or Reynaldo
Garcia at 202-482-3462
SUPPLEMENTARY INFORMATION: The Supplementary Information is separated
into four parts:
Part I--Wassenaar Arrangement Agreement Implementation;
Part II--Information Security Update and Simplification;
Part III--High Performance Computer Adjusted Peak Performance (APP)
changes; and
Part IV--Removal of the Foreign National Review (FNR) procedure.
Please note that a particular part of the EAR may be affected by
more than one of these Parts and the supplementary information in that
Part of the summary will only pertain to the revisions related to that
Part.
Part I--Wassenaar Arrangement Agreement Implementation
Background
The Wassenaar Arrangement (Wassenaar or WA) on Export Controls for
Conventional Arms and Dual-Use Goods and Technologies is a group of 41
like-minded states committed to promoting responsibility and
transparency in the global arms trade, and preventing destabilizing
accumulations of arms. As a Participating State, the United States has
committed to controlling for export all items on the WA control lists.
The lists were first established in 1996 and have been revised annually
thereafter. Proposals for changes to the WA control lists that achieve
consensus are approved by Participating States at annual Plenary
meetings. Participating States are charged with implementing the agreed
list changes as soon as possible after approval. The United States'
implementation of WA list changes ensures U.S. companies have a level
playing field with their competitors in other WA Participating States.
Unless otherwise indicated, the changes to the EAR described below
are made in order to implement changes to the WA control lists approved
at the December 2015 Plenary meeting.
Revisions to the Commerce Control List Related to WA Agreements
Revises (58) ECCNs: 0A617, 1A001, 1A002, 1A004, 1A613, 1C001,
1C002, 1C006, 1C008, 1C009, 1C608, 1E001, 1E002, 2B001, 2B006, 3A001,
3A002, 3A101, 3A292, 3B001, 3D001, 3E002, 4A001, 4A003, 4D001, 4E001,
5A001, 5B001, 5D001, 5E001, 5A002, 5B002, 5D002, 5E002, 6A001, 6A002,
6A003, 6A004, 6A005, 6A007, 6A008, 6B004, 6B007, 6C005, 6E003, 7A003,
7A004, 7A008, 7B001, 7B002, 7E004, 8A001, 8A002, 9A001, 9A004, 9A012,
9B001, and 9E003.
Adds (2) ECCNs: 5A003 and 5A004.
License Exception eligibility additions: 3A002.h (LVS $5,000, GBS,
CIV), 5A003 (GOV), 5E002 (TMP)
License Exception eligibility removals: 3B001.c (CIV), 4A003.e
(GBS, APP, CIV), 5A004 (formerly 5A002.a.2) (GOV), 8A002.e.2 (GBS,
CIV).
Category 0 Nuclear Materials, Facilities, and Equipment [and
Miscellaneous Items]
0A617 Miscellaneous ``equipment,'' materials, and Related Commodities
ECCN 0A617 is amended by adding double quotes around the term
``laser'' in paragraph (8) of the Related Controls paragraph in the
List of Items Controlled section to clarify the entry and to indicate
this is a term defined in Part 772 of the EAR.
Category 1 Special Materials and Related Equipment, Chemicals,
``Microorganisms,'' and ``Toxins''
1A001 ``Parts'' and ``components'' Made From fluorinated Compounds
ECCN 1A001 is amended by removing and reserving paragraph .b and
removing paragraph .c from the Items paragraph of the List of Items
Controlled
[[Page 64657]]
section. Paragraph .b controlled piezoelectric polymers and copolymers,
made from vinylidene fluoride (CAS 75 38 7) materials and paragraph .c
controlled seals, gaskets, valve seats, etc. made from fluoroelastomers
and specially designed for ``aircraft,'' aerospace or missile use.
These types of polymers/copolymers and seals/gaskets were controlled
because it was thought that their fluorine content gave them high
temperature and chemical resistance. After much testing, this has
proven not to be the case, and therefore the need to control them as a
strategic good no longer exists.
1A002 ``Composite'' Structures or Laminates
ECCN 1A002 is amended by adding double quotes around the term
``composite'' in the introductory text of Note 1 following paragraph
.b.2 in the Items paragraph of the List of Items Controlled section, to
indicate this is a term defined in Part 772 of the EAR.
1A004 Protective and Detection Equipment and ``components''
ECCN 1A004 is amended by revising Items paragraphs .a.1, .b.1, and
.c.1 by removing the phrase ``adapted for use in war'' and adding
single quotes around the remaining phrase, `biological agents', because
the former articulation did not describe the scope of control
accurately. This rule narrows the scope of control by adding Technical
Note 3, which defines biological agents. Now, only biological agents
and equipment that are specially designed or modified to provide
protection from or detect biological agents as defined in the technical
note are controlled, instead of all biological agents, protection, and
detection equipment that are adapted for use in war.
1A613 Armored and Protective ``equipment'' and Related Commodities
ECCN 1A613 is amended by revising Items paragraph .c by adding
``specially designed,'' which narrows the scope, but also adding to the
list of control ``liners, or comfort pads therefor.'' This revision
stems from the WA agreement for Wassenaar Arrangement Munitions List
(WAML) item 13.c, which deleted the vague term ``components,'' and
moved the items listed in the id est (i.e.) that included ``helmet
shell, liner and comfort pads'' into the main body of the sentence. WA
also agreed to add a Nota Bene, which this rule adds after Item
paragraph .y.1, to alert people to the fact that other components and
accessories for helmets may be controlled under other ECCNs on the CCL
or on the USML. The term ``specially designed'' was already in the text
of ML 13.c and for consistency is added to 1A613.c.
1C001 Materials ``specially designed'' for Use as Absorbers of
Electromagnetic Waves, or Intrinsically Conductive Polymers
ECCN 1C001 is amended by adding double quotes around the term
``laser'' in two places within the Note to 1C001.b to indicate this is
a term defined in Part 772 of the EAR.
1C002 Metal Alloys, Metal Alloy Powder and Alloyed Materials
ECCN 1C002 is amended by revising the Note at the top of the Items
paragraph by adding the words ``specially formulated'' and replacing
the word ``substrates'' with ``purposes.'' This revision clarifies what
is described in the Note as not being controlled in ECCN 1C002, which
enhances the effective control of the items that remain in this ECCN.
1C006 Fluids and Lubricating Materials
ECCN 1C006 is amended by removing and reserving Items paragraph .a,
because the hydraulic fluids specified in 1C006.a are either not in use
any longer or are being phased out because most hydraulic fluids in use
today are commercially available synthetic oil.
1C008 Non-Fluorinated Polymeric Substances
ECCN 1C008 is amended by revising Technical Note 1 at the end of
the Items paragraph to add 1C008.f (Polybiphenylenethersulphone)
materials to the list of materials to which `glass transition
temperature (Tg)' applies in order to clarify the method of determining
`Tg' for materials specified by 1C008.f.
1C009 Unprocessed Fluorinated Compounds
ECCN 1C009 is amended by removing and reserving paragraph .a
(copolymers of vinylidene fluoride. . .), which no longer represents
militarily critical materials.
1C608 Energetic Materials and Related Commodities
ECCN 1C608 is amended by replacing the double quotes with single
quotes around the term `controlled materials' in the Related
Definitions paragraph because the term is not defined in Section 772.1
of the EAR or on the WA List but the definition is included in the
Related Definitions paragraph. The WA definition for `propellant' is
added to the Related Definitions paragraph, so that the definition will
be applied as applicable to items controlled under 1C608. Single quotes
are added around the term `controlled materials' in Items paragraphs .c
through .h, .j, and .k to indicate the local definition in the Related
Definitions paragraph. Single quotes are also added around the terms
`single base,' `double base,' `triple base,' `sheetstock,' and `carpet
rolls,' because these terms are defined in the Technical Notes
following Items paragraph .a.2. The Note below Items paragraph .a.2 to
Technical Notes is revised, because definitions of terms belong in
Technical Notes, while Notes are reserved for clarifying the scope of
controls in the Items paragraph. Single quotes are added around the
term `propellant' in Items paragraphs .a and .n, as well as in the Note
and Technical Notes below Items paragraph .a.2. Double quotes are added
around the term ``pyrotechnic'' in Items paragraphs .j and .n to
indicate a definition in Part 772 and for consistency with the WA.
Single quotes are added around the term `mixture' to indicate the
addition of a Technical Note at the end of the Items paragraph that
defines the term. CAS numbers are added to Note 1 and 2 for consistency
with the WA List.
1E001 ``Technology''
ECCN 1E001 is amended by removing reference to ``1A001.b and
1A001.c'' in the Heading and in the first NS paragraph in the table of
the License Requirements section because this rule removes and reserves
these paragraphs.
1E002 Other ``technology''
ECCN 1E002 is amended by adding double quotes around the term
``aircraft'' in the Note to 1E002.f to indicate this is a term defined
in Part 772 of the EAR.
Annex to Category 1--List of Explosives
The Annex to Category 1 is amended by replacing the period with a
semicolon in entry 48, because a new entry 49 is added. Entry 49 is
added to list ``BTNEN (Bis(2,2,2-trinitroethyl)-nitramine) (CAS 19836-
28-3).''
Category 2--Materials Processing
2B001 Machine Tools and Any Combination Thereof
ECCN 2B001 is amended by revising Items paragraphs .a, .b.1 and
.b.2.a. The parameters for machine tools for turning and milling are
revised to better align with the Unidirectional Positioning
Repeatability (UPR) parameter that was implemented by WA in 2015.
Because UPR value is generally proportional to the travel length of
axis, WA agreed to set different control values depending on the travel
length of machine tools. In
[[Page 64658]]
addition, Note 2 is added to clarify that 2B001.a does not apply to
certain bar machines (Swissturn), because bar machines (Swissturn) are
one of the typical examples of machine tools that are classified as
controlled items even when their positioning control performances are
not as precise as the other types of controlled machine tools.
2B006 Dimensional Inspection or Measuring Systems, Equipment, and
``electronic assemblies''
ECCN 2B006 is amended by revising the NP Column 1 paragraph in the
License Requirements table because the revision to Items paragraph .b
made by this rule will make the parameters inconsistent with the
Nuclear Suppliers Group list. This rule revises Items paragraph b.1.c
in the List of Items Controlled section to adjust the performance
threshold to be consistent with the current lithography tool
specification 3B001.f.1. Also, this rule revises the Note following the
introductory Items paragraph b.1 to point out that the controls for
optical-encoders are found in 2B006.b.1.c. Double quotes are added
around the term ``laser'' in the Note to Items paragraph .b.2 to
indicate this is a term defined in Part 772 of the EAR.
Category 3--Electronics
3A001 Electronic Items
ECCN 3A001 is amended by revising the Heading to better articulate
the scope of control in this ECCN. This rule revises Items paragraph
.a.5.a.2 by increasing the output rate parameter to 500 million words
per second for 10 bits or more but less than 12 bits, based on the
advances in the technology since the last threshold adjustment. For
Items paragraphs .a.5.a.3 through .a.5.a.5, the resolution breakout is
changed from a resolution of ``12 bit'' to ``12 bit or more, but less
than 14 bit,'' ``more than 12 bit but equal to or less than 14 bit'' is
changed to ``14 bit or more, but less than 16 bit,'' and ``resolution
of more than 14 bit'' is changed to ``resolution of 16 bit or more.''
The output rates are also changed for .a.5.a.4 to ``14 bit or more, but
less than 16 bit'' from 125 to 250 million words per second and for
.a.5.a.5 ``16 bit or more'' from 20 to 65 million words per second.
The introductory text to 3A001.b is amended by replacing the word
``components'' with ``items'' to better describe the scope of this
paragraph. The energy density is revised from ``300 Wh/kg'' to ``350
Wh/kg'' for Items paragraph 3A001.e.1.b ``secondary cells.''
Double quotes are added to the term ``accuracy'' in Items paragraph
3A001.f to indicate this term is defined in Part 772 of the EAR, and
the ``'' before ``1.0 second of arc'' is deleted, because
the ``'' symbol made the parameter unclear.
3A002 General Purpose ``electronic assemblies,'' Modules and Equipment
ECCN 3A002 is amended by revising the Heading to better reflect the
scope of the entry.
The License Requirements section is amended by adding Missile
Technology (MT) controls, because the MT control for 4A003.e
``Equipment performing analog-to-digital conversions exceeding the
limits in 3A001.a.5,'' is moved to 3A002.h. The National Security (NS)
and Anti-terrorism (AT) controls that apply to 4A003.e are already
present in 3A002, as NS and AT apply to the entire entry of 3A002. The
eligibility paragraphs for License Exceptions LVS ($5,000), GBS and CIV
are amended by adding 3A002.h (unless controlled for MT), in order to
maintain the license exception eligibility this equipment had under
4A003.e. ECCN 3A101 is added to the Related Controls paragraph in the
List of Items Controlled section to reference the overlapping MT
control of 3A002.h. Items paragraph a.5 ``waveform digitizers and
transient recorders'' is removed and reserved, because the items are
now controlled under the newly added Items paragraph 3A002.h. The Nota
Bene under a.5 is revised to point to the new location of the control.
Items paragraph 3A002.a.6 ``digital instrumentation data recorders
...'' is amended by revising the description of the scope to read
``digital data recorders.'' ``Using magnetic disk storage techniques''
is deleted because it is replaced by disk or solid-state drive memory
as modern digital data recorders can use either or both memory storage
technologies. The sample data rate parameter is deleted and continuous
throughput is increased to avoid capturing predominantly commercial
items. The phrase ``sustained continuous throughput'' is added to
clearly distinguish from ``peak data recording rate.'' Technical Notes
for continuous throughput rate (previously included under 3A002.a.5)
are added with the deletion of the term ``mass'' in Technical Note 3.
These parameters more clearly delineate those products that are of
military concern.
Lastly, Items paragraph 3A002.h ``Electronic assemblies, modules or
equipment that perform analog-to-digital conversions,'' along with
specific parameters, is added to the List of Items Controlled section
in order to consolidate where this equipment is controlled and
distinguish it from the 3A002.a.6 ``digital instrumentation data
recorder systems'' controls.
3A101 Electronic Equipment, Devices, ``parts,'' and ``components,''
Other Than Those Controlled by 3A001
ECCN 3A101 is amended by replacing the reference to 4A003.e with
3A002.h, as well as updating the description of equipment in the
Related Controls paragraph in the List of Items Controlled section.
3A292 Oscilloscopes and Transient Recorders
ECCN 3A292 is amended by replacing the reference to 3A002.a.5 with
3A002.h in the Heading, because of the new location of these controls.
3B001 Equipment for the Manufacturing of Semiconductor Devices or
Materials
ECCN 3B001 is amended by revising the CIV paragraph in the List
Based License Exceptions section to remove paragraph .c ``anisotropic
plasma dry etching equipment'' because WA has agreed to remove and
reserve this paragraph as a result of a foreign availability
determination.
Items paragraph .e.1 ``interfaces for wafer input and output'' in
the List of Items Controlled section is revised by removing the
reference to 3B001.c, which is removed by this rule, and by adding
references to 3B001.a.2 and a.3 to add specificity.
Technical Note 1 is revised by removing the word ``etch,'' after
Items paragraph .e.2, because etch equipment is deleted from 3B001.c.
Items paragraph .f.2 is corrected by adding a Note because the Note
was inadvertently removed by last year's WA implementation rule.
Items paragraph .f.3, ``lithography equipment . . . specially
designed for mask making,'' is revised and Items paragraph .f.4,
``Equipment designed for device processing using direct writing
methods,'' is added in the List of Items Controlled section to align
the feature size metric for all lithography systems.
3D001 Software
ECCN 3D001 is amended by replacing the reference to 3A002.g with
3A002.h because 3D001 is supposed to control software specially
designed for the development or production of equipment controlled by
3A001.b to new 3A002.h The same revision is made to the National
Security (NS) control paragraph in the License Requirements table of
3D001. The eligibility paragraph of License Exception CIV is replaced
[[Page 64659]]
with N/A (Not Applicable), because 3B001.c, which was the only
paragraph in the eligibility paragraph, is no longer controlled.
3E002 ``Technology'' . . . Other Than That Controlled in 3E001 for the
``development'' or ``production'' of a ``microprocessor microcircuit,''
``micro-computer microcircuit'' and Microcontroller Microcircuit Core .
. .
ECCN 3E002 is amended by revising the CIV paragraph in the License
Exception section to remove the Foreign National Review (FNR)
Requirement. This removal is necessary to conform the entry with the
removal of the FNR procedure from the EAR as part of this rule.
The Technical Note in Items paragraph .a that revises `vector
processor unit' by adding the phrase ``and vector registers of at least
32 elements each'' to separate short-vectors from traditional
supercomputer vectors.
Items paragraph .c is amended by changing the phrase ``four 16-bit
fixed-point multiply-accumulate results per cycle'' to ``eight 16-bit
fixed-point multiply-accumulate results per cycle'' because updating
the control threshold for Digital Signal Processors (DSPs) is
consistent with advancements in digital signal processing technology.
Prior to the publication of this rule, in the Note to paragraph
3E002.c, the multimedia extension exemption only applied to digital
signal processors even though it is also used in other processor types,
such as in x86 processors. Therefore, in this rule, the exemption note
is extended to apply to all entries under 3E002; specifically, the
reference to 3E002.c is revised to read 3E002. In addition, this Note
is enumerated as Note 1 and the existing Notes 1 and 2 are redesignated
as Notes 2 and 3.
Category 4--Computers
Note 3 to Category 4, which is a reminder that computers and
related equipment that perform functions specified in Category 5--Part
2 should be reviewed against Category 5--Part 2, is removed. This
reminder appeared in several places throughout the Commerce Control
List and is now a new note with the General Technology and Software
Notes in Supplement No. 2 to part 774.
4A001 Electronic Computers and Related Equipment
ECCN 4A001 is amended by revising the Related Controls paragraph in
the List of Items Controlled section to remove the reminder to consider
Category 5--Part 2 if the equipment performs or incorporates
``information security'' functions as primary functions. WA decided to
streamline the list by removing the many occurrences of this note and
having it appear only with the General Technology and Software Notes,
which in the EAR are located in Supplement No. 2 to part 774.
4A003 ``Digital Computers,'' ``electronic assemblies,'' and Related
Equipment Therefor
ECCN 4A003 is amended by removing and reserving 4A003.e ``Equipment
performing analog-to-digital conversions exceeding the limits in
3A001.a.5'' and adding a Nota Bene to point to the new location for the
control in 3A002.h. The License Requirements section is revised by
removing the Missile Technology control, which only applied to 4A003.e.
Reference to 4A003.e is removed from the List Based License Exceptions
section, specifically GBS, APP and CIV, and from Note 1 to Items
paragraph .c. Reserved paragraphs .d through .f are now codified as a
range of reserved paragraphs.
The last listed item, ``Equipment designed for ``signal
processing,'' in Note 1 (located at the beginning of the Items
paragraph in the List of Items Controlled section) is removed as a
conforming change tracking the removal of 4A003.e.
The ``Adjusted Peak Performance'' (``APP'') for ``digital
computers'' is raised from 8.0 to 12.5 Weighted TeraFLOPS (WT) in Items
paragraph .b in the List of Items Controlled section. The Congressional
notification requirement set forth in subsections 1211(d) and (e) of
the National Defense Authorization Act (NDAA) for FY 1998 (Pub. L. 105-
85, November 18, 1997, 111 Stat. 1932) provides that the President must
submit a report to Congress 60 days before adjusting the composite
theoretical performance level above which exports of digital computers
to Tier 3 countries require a license. The President sent a report to
Congress on June 1, 2016 that establishes and provides justification
for the 12.5 WT control level using the APP formula.
4D001 ``Software'' and 4E001 ``technology''
ECCNs 4D001 and 4E001 are amended by removing NP from the Reason
for Control paragraph and the sentence related to NP controls directly
below the License Requirements table in the License Requirements
section, as these references erroneously suggest that digital computer
technology or software are controlled by the Nuclear Suppliers Group
(NSG) for nonproliferation reasons and consequently require a license
from BIS for Nuclear Proliferation (NP) reasons. Digital computer
software and technology controls are not controlled by the NSG.
The TSR paragraph in the List Based License Exceptions section is
amended by revising the APP from 2.0 to 12.5 WT because of
technological advances and in line with changes made elsewhere in this
rule.
The Special Conditions for STA paragraph is amended by revising the
APP from 2.0 to 12.5 WT because of technological advances and in line
with changes made elsewhere in this rule.
Items paragraph .b.1 in the List of Items Controlled section is
amended by revising the APP from 1.0 to 6.0 WT and in line with changes
made elsewhere in this rule.
Category 5--Part 1--``Telecommunications''
Category 5--Part 1 is amended by removing Nota Bene 2 (N.B.2) at
the beginning of the Category and moving this Note to the General
Technology and Software Notes in Supplement No. 2 to part 774.
5A001 Telecommunications Systems, Equipment, ``components'' and
``accessories''
ECCN 5A001.d ``electronically steerable phased array antennas'' is
amended by dividing the operation frequency control parameter into four
ranges and adding two new parameters ``effective radiated power (ERP)''
and ``effective isotropic radiated power (EIRP).'' The purpose of the
revision is to focus or narrow the scope of control and release from
control consumer ``WiGig'' products for indoor use. These ``WiGig''
products are used as home entertainment alternatives for HDMI cables.
Electronically steerable phased array antennas (ESAs) are used in
consumer products operating in the un-licensed ``60 GHz'' band (57-64
GHz) and operate over short distances (~10 m) in-room. A typical
installation would allow a laptop computer to send multi-media signals
across a living room to an HD-TV.
5B001 Telecommunication Test, Inspection and Production Equipment,
``components'' and ``accessories''
ECCN 5B001 is amended by removing and reserving Items paragraph
.b.2.b ``performing optical amplification using Praseodymium Doped
Fluoride Fiber Amplifiers (PDFFA)'' because PDFFA are not widely used
in the communications industry due to low efficiency and compatibility
problems with silica optical fiber-based communications systems. This
rule also revises Item paragraph .b.4 by raising
[[Page 64660]]
the level for ``radio equipment employing Quadrature-Amplitude-
Modulation (QAM) techniques'' from 256 to 1,024 on the basis of
technological advances in QAM techniques.
5D001 ``Software''
ECCN 5D001 is amended by revising Items paragraph .d.4 by raising
the level for radio equipment employing Quadrature-Amplitude-Modulation
(QAM) techniques'' from 256 to 1,024 because of technological advances
in QAM techniques.
5E001 ``Technology''
ECCN 5E001 is amended by removing Items paragraph .c.2.b
``performing optical amplification using Praseodymium Doped Fluoride
Fiber Amplifiers (PDFFA)'' because PDFFA are not widely used in the
communications industry due to low efficiency and compatibility
problems with silica optical fiber-based communications systems. The
Note to Items paragraph .c.2.c is amended by removing the phrase
``specially designed'' because the definition of ``specially designed''
does not apply to technology and this removal harmonizes the CCL with
the WA List. This rule also revises Items paragraph .c.4.a by raising
the level for radio equipment employing Quadrature-Amplitude-Modulation
(QAM) techniques'' from 256 to 1,024 on the basis of technological
advances in QAM techniques.
Category 5--Part 2--``Information Security''
Category 5--Part 2 is amended by removing and reserving Note 1 and
moving the control status Note to the General Technology and Software
Notes in Supplement No. 2 to part 774. BIS is making editorial
revisions to the phrase ``Category 5, part 2'' in Notes 2 and 4 by
changing it read ``Category 5--Part 2.'' In addition, Note 2 is revised
by changing the phrase ``encryption products'' to read ``information
security'' to make the words consistent with the section heading. The
introductory text to Note 3 and the Technical Note to paragraph .b.4 of
Note 3 are revised to reference two newly added ECCNs: 5A003 and 5A004.
Paragraph 1.b in the Note to the Cryptography Note is amended by adding
a sentence to the end to clarify that a simple price enquiry is not
considered to be a consultation. An undesignated section title is added
under the Product Group A title to read ``Cryptographic ``information
security.'' ''
5A002 ``Information security'' Systems, Equipment and ``components''
ECCN 5A002 is amended by revising the Heading to remove the word
``therefor.'' Related Controls paragraph 2 is removed to correspond
with the revision of ECCNs 5A992 and 5D992 and a new paragraph 2 is
added to alert exporters to a related United States Munitions List
(USML) control for 5A002.d and .e, and Note 3 paragraph is revised to
harmonize with changes in this rule. The Items paragraph of 5A002 is
restructured, including by moving some of the items to newly added
ECCNs. The EI control is moved to the License Requirements Table and is
revised to replace the referenced paragraphs ``.a.1, .a.2, .a.5, .a.6
and .a.9'' with ``entire entry.'' The Note in the beginning of the
Items paragraph is moved to the end of Items paragraph .a and amended
to only pertain to Items paragraph .a.
5A002.a is amended by adding the word ``cryptographic'' before the
term ``information security'' to better describe the scope of Items
paragraph .a. The Technical Note to 5A002.a is amended by adding the
phrase ``In Category 5--Part 2'' to clarify the scope of the Technical
Note. Items paragraph .a.2 ``designed or modified to perform
`cryptanalytic functions''' is removed and reserved because this
control is now located in 5A004.a. A Nota Bene is added to point to the
new location of this control. Reserved Items paragraph .a.3 is removed.
The 5A002 exclusion Note is amended by revising ``5A002'' to read
``5A002.a'' in the introductory text. The sentence stating, ``However,
these items are instead controlled under 5A992.'' is removed from the
introductory text of the Note. 5A992.a and .b are removed by this rule;
therefore, items meeting the exclusion Note are now designated EAR99.
The reference to new ECCNs 5A003 and 5A004 is added to paragraph
(a)(1)(a) of the Technical Note. Many of the paragraphs in this Note
are moved. See below for a guide to the reordering of the paragraphs.
Paragraph (b) (former paragraph (d)) of the Technical Note is amended
by removing ``The term'' and clarified by adding ``in 5A002 Note b.''
Paragraph (g) (former paragraph (j)) introductory text is amended by
removing all the references to paragraphs in 5A002. Paragraph (h)
(former paragraph (k)), is revised by correcting the format of the
reference to Category 5--Part 2. Paragraph (j)(2)(a) (former paragraph
(m)(2)(a)), is amended by replacing the word ``to'' with ``in.''
The following is a guide to the movement of the paragraphs within
the exclusion Note:
(b), which was ``reserved,'' is now former paragraph (d)
(c), which was ``reserved,'' is former paragraph (e)
(d) is former paragraph (f)
(e) is former paragraph (g)
(f) is former paragraph (i)
(g) is former paragraph (j)
(h) which was ``reserved'' is former paragraph (k)
(i) is former paragraph (l)
(j) is former paragraph (m)
(k), (l) and (m) are removed.
Items paragraphs of ECCN 5A002.a.4, .a.5, .a.6, .a.8 and .a.9 are
moved to the following new locations:
.a.4--5A003.b
.a.5--5A002.e
.a.6--5A002.d
.a.8--5A003.a
.a.9--5A002.c
Items paragraph .a.7, ``Non-cryptographic information and
communications technology (ICT) security systems and devices that have
been evaluated and certified by a national authority to exceed class
EAL-6 (evaluation assurance level) of the Common Criteria (CC) or
equivalent,'' is removed because it is an obsolete certification.
Items paragraph .b is revised by removing the phrase ``systems,
equipment and components,'' because the Header already states what is
included in the scope of the control.
Category 5--Part 2 is amended by adding an undesignated title
``non-cryptographic information security'' before newly added ECCN
5A003.
5A003 ``Systems,'' ``equipment,'' and ``components,'' for non-
cryptographic ``information security,''
ECCN 5A003 is added to control items formerly classified as
5A002.a.8 in 5A003.a and formerly classified as 5A002.a.4 in 5A003.b.
The same license requirements and license exceptions that applied to
those paragraphs are added to 5A003.
Category 5--Part 2 is amended by adding an undesignated title
``defeating, weakening or bypassing information security'' before the
newly added ECCN 5A004.
5A004 ``Systems,'' ``equipment,'' and ``components'' for Defeating,
Weakening or Bypassing ``information security''
ECCN 5A004 is added to control items formerly classified as
5A002.a.2 with no change to the license requirements and license
exceptions that formerly applied.
[[Page 64661]]
5B002 ``Information Security'' test, inspection, and ``production''
Equipment
ECCN 5B002 is amended by adding references to ECCNs 5A003 and 5A004
in Items paragraphs .a and .b.
5D002 ``Software''
ECCN 5D002 is amended by moving the EI controls from the License
Requirements Note to the License Requirement table in the License
Requirements section. The Related Controls paragraph 1 is removed to
correspond with the removal of paragraphs in ECCN 5A992 and 5D992, and
paragraph 2 is revised to harmonize with other changes to encryption in
this rule. The Note relating to publicly available encryption software
is removed because this rule makes publicly available encryption source
code not subject to the EAR after the notification requirement of Sec.
742.15(b) has been fulfilled, as well as the corresponding publicly
available encryption object code software. The EI controls are also
revised by adding new ECCN 5A004. Items paragraphs .a and .c.1 are
amended by adding new ECCNs 5A003 and 5A004.
5E002 ``Technology''
ECCN 5E002 is amended by moving EI controls into the License
Requirements table in the License Requirements section. Additionally,
new ECCN 5A004 is added to the EI controls and to Note 2 in the License
Requirements Notes in the License Requirements section. Items paragraph
.a in the List of Items Controlled section is revised by adding new
ECCNs 5A003 and 5A004.
Other EAR Revisions Corresponding to the Category 5--Part 2
Restructuring
ECCN 5A004 is added to License Exception GOV in Sec.
740.11(a)(2)(iii) and (c)(3)(iii) to maintain the license exception
restriction for items that have moved from ECCN 5A002 to ECCN 5A004.
Despite the movement of ECCN 5A002 items to ECCN 5A003, ECCN 5A003 is
not added because it contains items that are no longer controlled for
EI reasons.
The Entity List, Supplement No. 4 to part 744, is amended by
replacing the reference ``5D002 or 5A002.'' with ``5A002, 5A004 or
5D002.'' in the third column ``License Requirement,'' in the entry
``Corporacion Nacional de Telecommunicaciones (CNT) . . .'' under
Ecuador.
Category 6--Sensors and Lasers
6A001 Acoustic Systems, Equipment, and ``components''
ECCN 6A001 is amended by replacing ``positioning accuracy'' with
``determined position error'' in Items paragraphs .a.1.d.2 and .a.1.e.2
in the List of Items Controlled section because this term better
conveys the identified performance parameter of this equipment. Double
quotes are added around the term ``accuracy'' in Items paragraphs
.a.2.d.1, .b.1.b, and .b.2 in the List of Items Controlled section to
indicate that this is a term defined in Part 772 of the EAR. This rule
makes an editorial correction by replacing double quotes that were
inadvertently removed around the term ``components'' in the Heading,
introductory text of Items paragraphs a, a.1, a.1.d, a.2 and the Note
to 6A001.a.2 in the List of Items Controlled section.
6A002 Optical sensors and equipment, and ``components'' Therefor
ECCN 6A002 is amended by adding paragraph .d ``Thermopile arrays
having less than 5,130 elements'' to exclusion Note 2 to 6A002.a.3 in
the Items paragraph of the List of Items Controlled section. BIS is
making this change because applying the definition of 'microbolometer
arrays' in 6A002.a.3.f to thermopile arrays leads to the control of
such devices; however, thermopile arrays would never reach the
performance of microbolometer arrays.
6A003 Cameras, Systems, or Equipment, and ``components'' Therefor
ECCN 6A003 is amended by removing paragraph (3) of the Related
Controls paragraph in the List of Items Controlled section because the
referenced paragraphs, 8A002.d.1 and .e, are removed by this rule.
Related Controls paragraphs (4) and (5) are redesignated as (3) and
(4).
6A004 Optical Equipment and ``components''
ECCN 6A004 is amended by adding an exclusion Note to Items
paragraph .a.3 in the List of Items Controlled section for mirrors
``specially designed'' to direct solar radiation for terrestrial
heliostat installations. Items paragraphs .d.2.a.3 and .d.2.b are
revised by adding the word ``(better)'' after the word less for
consistency and clarity, so people will understand that any measurement
that is less than the specified parameter means the item is performing
at better than the control level.
6A005 ``Lasers,'' ``components'' and Optical Equipment
The Technical Note that follows Note 2 to 6A005.a.6.b in the Items
paragraph of the List of Items Controlled section is amended by
replacing the reference ``Note 2.a'' with ``Note 2 a.2'' to correct the
reference. Items paragraphs .a.6.a.2 and .b.6.b.2 in the List of Items
Controlled section are amended by raising the ``average output power''
from ``10'' to ``30'' W and ``10'' to ``50'' W. The main parameter of
interest for industrial pulsed lasers is ``average output power.'' A
higher average output power has a positive impact on productivity (due
to higher repetition rates). For that reason, and in light of the
technological progress in the field of industrial Laser Materials
Processing (LMP) equipment, the average power is increased while the
parameters ``pulse energy'' and ``peak power'' (which have a higher
relevance for applications of concern) remain unchanged.
The Note to 6A005.c.1 is moved below Items paragraph 6A005.c.1.b.
An exclusion Note is added to Items paragraphs 6A005.d.1.d.1.d and
6A005.d.1.d.2.d to exclude epitaxially-fabricated monolithic devices.
Double quotes are added around the term ``laser'' in Items
paragraphs .e.3, .e.3.c.1, .e.3.c.2, .g.1, .g.2, .g.3 and the Technical
Note at the end of the Items paragraph to indicate that this is a term
defined in Part 772 of the EAR.
Double quotes are added around the term ``accuracy'' in Items
paragraph f.3 to indicate that this is a term defined in Part 772 of
the EAR.
6A007 Gravity Meters (gravimeters) and Gravity Gradiometers
ECCN 6A007 is amended by adding double quotes around the term
``accuracy,'' in three places (Items paragraphs .a, .b.1 and .b.2 in
the List of Items Controlled section) to indicate that this is a term
defined in Part 772 of the EAR.
6A008 Radar Systems, Equipment and Assemblies
ECCN 6A008 is amended by adding double quotes around the term
``accuracy'' in Items paragraph .a.2, adding double quotes around the
term ``lasers'' in Items paragraph. j.3, and adding double quotes
around the term ``aircraft'' in Note 2 of the Technical Notes at the
end of the Items paragraph in the List of Items Controlled section.
These quotes are added to indicate that the terms are defined in Part
772 of the EAR.
[[Page 64662]]
6B004 Optical Equipment
ECCN 6B004 is amended by revising Items paragraph 6B004.a to
replace the symbol ``'' that precedes 0.1% with the phrase
``equal to or better than'' to clarify that entry.
6B007 Equipment To Produce, Align, and Calibrate Land Based Gravity
Meters With a Static ``accuracy'' of Better Than 0.1 mGal.
ECCN 6B007 is amended by adding double quotes around the term
``accuracy'' in the Heading to indicate that this is a term defined in
Part 772 of the EAR.
6C005 ``Laser'' Materials
ECCN 6C005 is amended by adding double quotes around the term
``laser'' in Items paragraphs b.1 and b.2 in the List of Items
Controlled section to indicate that this is a term defined in Part 772
of the EAR.
6E003 Other ``technology''
ECCN 6E003 is amended by adding double quotes around the term
``accuracies'' in Items paragraph .d to indicate that the singular form
of ``accuracy'' is a term defined in Part 772 of the EAR and revising
the Items paragraph by moving all the topic headings out from the
subparagraphs and reserving subparagraphs that do not have parameters
at this time.
Category 7--Navigation and Avionics
7A003 `Inertial measurement equipment or systems'
ECCN 7A003 is amended by removing the second paragraph in the
Technical Note at the beginning of the Items paragraph of the List of
Items Controlled section. Double quotes are added around the term
``accuracies'' in Items paragraph .a; and double quotes are added
around the term ``accuracy'' in Items paragraphs .b, .c.1, and .c.2 in
the List of Items Controlled section to indicate that ``accuracy'' is a
term defined in Part 772 of the EAR. Single quotes are replaced by
double quotes around the term Circular Error Probable in the Items
paragraph .a.1 and around the term's acronym CEP in Items paragraphs
.a.1, .a.2, .a.3, and .b in the List of Items Controlled section
because this term and its acronym are added to the definitions in Sec.
772.1 of the EAR as part of this rule.
7A004 `Star trackers' and ``components'' Therefor
ECCN 7A004 is amended by adding double quotes around the term
``accuracy'' in the Items paragraph .a in the List of Items Controlled
section to indicate that this is a term defined in Part 772 of the EAR.
7A008 Underwater Sonar Navigation Systems
ECCN 7A008 is amended by adding double quotes around the term
``accuracy'' in the Heading to indicate that this is a term defined in
Part 772 of the EAR.
7B001 Test, Calibration, or Alignment Equipment
ECCN 7B001 is amended by adding double quotes around the term
``aircraft'' in paragraph (1) of the Related Definitions paragraph in
the List of Items Controlled section to indicate that this is a term
defined in Part 772 of the EAR.
7B002 Equipment ``specially designed'' To Characterize Mirrors for Ring
``laser'' Gyros
ECCN 7B002 is amended by adding double quotes around the term
``accuracy'' in Items paragraphs .a and .b of the List of Items
Controlled section because it is a defined term.
7E004 Other ``technology''
ECCN 7E004 is amended by adding double quotes around the term
``accuracy'' in Items paragraph .a.7 and adding double quotes around
the term ``aircraft'' in the Items paragraphs .b.1, .b.7.b.4, .b.8.a
and .b.8.b to indicate that these terms are defined in Part 772 of the
EAR. The word ``directional'' is replaced by ``direction'' in the Items
paragraph .c.2 of the List of Items Controlled section for clarity and
consistent with the term ``circulation-controlled direction control
systems,'' as defined in Part 772 of the EAR.
Category 8--Marine
8A001 Submersible Vehicles and Surface Vessels
ECCN 8A001 is amended by revising the Related Controls paragraph in
the List of Items Controlled section by removing reference to Category
5--Part 2 because the applicability of Category 5--Part 2 to other
categories is stated in a new Note in the General Technology and
Software Notes in Supplement No. 2 to part 774. Double quotes are added
around the term ``accuracy'' in Items paragraph .e.2 of the List of
Items Controlled section to indicate that this is a term defined in
Part 772 of the EAR.
8A002 Marine Systems, Equipment, ``parts'' and ``components''
ECCN 8A002 is amended by removing reference to 8A002.e.2 from the
GBS and CIV eligibility paragraphs in the List Based License Exception
section because 8A002.e is removed and reserved. Items paragraph .d
``underwater vision systems'' is revised by removing equipment
specified in d.1 but no longer in use and redesignating d.2 as .d.
Items paragraph .e ``photographic still cameras ``specially designed''
or modified for underwater use below 150 m . . .'' in the List of Items
Controlled section is removed and reserved because modern digital
photographic equipment and separate underwater housings have replaced
underwater film format cameras.
Category 9--Aerospace and Propulsion
9A001 Aero Gas Turbine Engines
ECCN 9A001 is amended by adding double quotes around the term
``aircraft'' in paragraph b. of Note 1 to Items 9A001.a and in Items
paragraph .b in the List of Items Controlled section to indicate that
this is a term defined in Part 772 of the EAR.
9A004 Space Launch Vehicles and ``spacecraft,'' ``spacecraft buses,''
``spacecraft payloads,'' ``spacecraft'' On-Board Systems or Equipment,
and Terrestrial Equipment
ECCN 9A004 is amended by replacing the reference to ``5A002.a.5,
5A002.a.9'' with ``5A002.c, 5A002.e'' in Items paragraph .d in the List
of Items Controlled section to reflect the revisions this rule makes to
ECCN 5A002.
9A012 Non-Military ``Unmanned Aerial Vehicles,'' (``UAVs''), Unmanned
``airships,'' Related Equipment and ``components''
ECCN 9A012 is amended by removing the exclusion Note for model
aircraft or model ``airships'' at the end of the Items paragraph in the
List of Items Controlled section because these commodities are not
within the scope of ECCN 9A012.
9B001 Equipment, Tooling or Fixtures, ``specially designed'' for
Manufacturing Gas Turbine engine blades, vanes or ``tip shrouds''
ECCN 9B001 is amended by revising Items paragraph .b in the List of
Items Controlled section to include combined cores and shells (moulds)
because it is now possible, through the use of Additive Manufacturing,
to produce a single shell (mould) containing a core in position.
9E003 Other ``technology''
ECCN 9E003 is amended by adding double quotes around the term
``aircraft'' in the following five places: Two places in Related
Controls paragraph (2) in the List of Items Controlled section; in the
Note to
[[Page 64663]]
9E003.h in the List of Items Controlled section; in Items paragraph .j;
and in the Nota Bene that follows 9E003.j in the List of Items
Controlled section. These double quotes are added to indicate that this
is a term defined in Part 772 of the EAR.
Part 748--Applications
Supplement No. 7 to part 748 ``Validated End User'' list is amended
by removing the reference to 3B001.c in eight Chinese entities, because
this paragraph of ECCN 3B001 is removed by this rule.
Other changes to part 748 are described in two separate paragraphs
below in relation to encryption updates and the removal of the foreign
national review requirement.
Section 774.1 Introduction
An explanation about the use of Chemical Abstracts Service (CAS)
numbers in the Commerce Control List is added in new paragraph (e).
This explanation comes from Note 2 of the Wassenaar Arrangement's
Munitions List. The information is helpful for exporters when trying to
classify chemicals on the CCL.
Supplement No. 2 to Part 774 ``General Technology and Software Notes''
Supplement No. 2 to part 774 ``General Technology and Software
Notes'' is amended by adding paragraph 3 ``General ``Information
Security'' Note'' (GISN) to alert the public to consider Category 5--
Part 2 when classifying information security items or items with
information security functions.
Supplement No. 6 to Part 774 ``Sensitive List''
Supplement No. 6 to part 774 ``Sensitive List'' is amended by
revising paragraphs (2)(i) ``2D001,'' (2)(ii) ``2E001,'' (2)(iii)
``2E002,'' (4)(ii) ``4D001,''and (4)(iii) ``4E001'' to match the
revisions made to corresponding ECCNs by this rule. These changes will
affect Wassenaar reporting requirements found in Sec. 743.1.
Part 770--Item Interpretations
Section 770.2 is amended by making editorial revisions to paragraph
(l)(1), (l)(2) and (m) to align ECCN references to revisions made by
this rule.
Part 772 Terms and Definitions (Related to WA agreements)
Section 772.1 is amended by adding more categories to those
associated with the terms ``accuracy'' and ``airship.'' The term
``Circular Error Probable'' and its acronym ``CEP'' are added to the
definitions in Sec. 772.1 because the term and its acronym are used
more broadly than in one ECCN or subparagraph. The definition of
``cryptography'' is revised by moving the definition of ``fixed'' to
the Technical Notes of this term. The term ``FADEC'' is revised by
adding the word ``systems,'' thus changing the term to ``FADEC
systems.'' Other revisions to Part 772 that are not related to WA
agreements are described later in this Supplementary Information.
The term ``frequency switching time'' is revised to retain the
relative value but tighten the tolerance from 0.05% to
0.1 part per million to account for challenges in making
measurements using the wide tolerance of 0.05%. The
revision also applies an absolute value for frequencies below 1 GHz,
because the 0.1 parts per million metric necessitates the difficult
task of resolving very small frequency differences at low frequencies.
Category 7 is removed from the list of categories where ``Full
Authority Digital Engine Control Systems'' is used.
The category references for the term ``information security'' are
revised by removing Cat 4, 5P1 and 8, and adding a reference to the
newly added General ``Information Security'' Note (GISN).
The term ``laser'' is revised to more closely link the
amplification process with the observed coherencies in laser output.
The term ``lighter-than-air vehicles'' is added to Sec. 772.1
because of its use in ECCNs 2B352, 9A120, and 9A610.
The term ``optical amplification'' is removed consistent with its
removal from 5A991.b.5.e, 5B001.b.2.b, and 5E001.c.2.b, due to the
term's association with a method of communication that is no longer in
use.
The terms ``propellants'' and ``pyrotechnic(s)'' are added to Sec.
772.1 because they are used frequently in the EAR (propellants in
1C608.a and .n and pyrotechnic(s) in ECCN 1C608.j and .n).
The term ``source code'' is revised by adding Category 1 and
Category 5--Part 2 to the categories where this term is used.
This rule removes the term ``system tracks'' because it is not used
in the EAR.
Part II--Information Security Update and Simplification
In conjunction with the restructuring of Category 5--Part 2 of the
CCL that was agreed upon by WA, BIS is updating and streamlining
information security sections and policies within the EAR. Below is a
summary of these updates.
Revised ECCNs (4): 5E002 (Related Controls), 5A992, 5D992 and
5E992.
Part 730--General Information
Supplement No. 1 to part 730 is amended by removing the reference
to 740.13(e) for paperwork collection 0694-137 ``License exemptions and
exclusions.''
Part 734--Scope of the EAR
The Note to Sec. 734.3(a)(4) is amended by removing the reference
to Sec. 740.17(b)(4)(ii), which is deleted by this rule, and replacing
the reference ``section 740.17(a)'' with the reference ``Sec.
740.17(a)(4),'' which refers to foreign products developed with or
incorporating U.S.-origin encryption source code components or
toolkits.
Section 734.3, the Note to paragraphs (b)(2) and (b)(3) is amended
by revising the citation ``Sec. 740.13(e)'' to read ``Sec.
742.15(b).'' This change is necessary because this rule moves the
provision in Sec. 740.13(e) to Sec. 742.15(b) and then removes and
reserves Sec. 740.13(e).
Section 734.4 is amended by revising paragraph (b), which set forth
special requirements for certain encryption items, to harmonize with
other changes made to encryption items throughout this rule.
Section 734.7, paragraph (b), is amended by revising the citation
``Sec. 740.13(e)'' to ``Sec. 742.15(b).'' This change is necessary
because this rule moves the provision in Sec. 740.13(e) to Sec.
742.15(b) and removes and reserves Sec. 740.13(e).
Section 734.17, paragraph (b)(2) is amended by revising the last
two sentences. This change is necessary because this rule moves the
provision in Sec. 740.13(e) to Sec. 742.15(b) and removes and
reserves Sec. 740.13(e). In addition, encryption object code
``software'' that corresponds to encryption source code ``software''
meeting the notification requirement of Sec. 742.15(b) is now publicly
available, whereas before this rule it was eligible for License
Exception TSU.
Part 740--License Exceptions
Section 740.13(e) is deleted because this notification requirement
is moved to newly revised Sec. 742.15(b).
The introductory paragraph of Sec. 740.17 is amended to update the
ECCNs that are eligible for License Exception ENC consistent with the
implementation of the WA agreement to restructure Category 5--Part 2.
There is no substantive change to eligible items.
The introductory paragraphs of both Sec. Sec. 742.15(a)(1) and
740.17 are revised to state that certain items classified in Category
5--Part 2 of the Commerce Control List and described in License
Exception ENC that meet the criteria of
[[Page 64664]]
Note 3 to Category 5--Part 2--i.e., are mass market encryption items--
are classified under ECCNs 5A992.c and 5D992.c and are no longer
subject to ``EI'' or ``NS'' controls. The mass market provisions were
previously set forth in Sec. 742.15(b), but in this rule are
consolidated into Sec. 740.17 to delete duplicative text. Country
Group E:2 is added to the introductory paragraph in two places, as well
as Sec. 740.17(b)(2)(iv)(B), to correct an oversight in not adding E:2
when Cuba was added to Country Group E:2.
New Sec. 740.17(a)(1)(ii) is added to authorize exports,
reexports, and transfers (in-country) among related parties for
internal use when the parent company is headquartered in a Supplement
No. 3 to part 740 country (License Exception ENC Favorable Treatment
Countries). No classification or reporting is required for such
exports, reexports or transfers (in-country).
New Sec. 740.17(a)(3) is added to authorize reexports of foreign-
made products developed with or incorporating U.S. encryption source
code, components or toolkits without classification by or reporting to
BIS provided that the U.S.-origin encryption items have previously been
classified or reported and authorized by BIS and the cryptographic
function has not changed. This provision is moved from Sec.
740.17(b)(4)(ii) to place all authorizations under License Exception
ENC that do not require classification or self-classification in one
paragraph.
Section 740.17(b) is amended to delete the requirement for an
encryption registration. The encryption registration requirement, added
to the Export Administration Regulations in 2010, is being deleted to
create a more streamlined and efficient reporting processes.
Accordingly, references to the encryption registration requirement are
removed throughout the EAR (e.g., parts 738 and 748). Exporters who
self-classify encryption products under Sec. 740.17(b)(1) will
continue to be required to submit a self-classification report on an
annual basis. The requirements for the self-classification report are
moved to Sec. 740.17(e)(3) from Sec. 742.15(c). In addition, Sec.
740.17(b) is amended to provide that if an exporter obtains a Commodity
Classification request (CCATS) classification from BIS for a product
that is eligible for self-classification, the product does not need to
be included in the annual self-classification report. BIS will make
CCATS for products described in Sec. 740.17(b)(1) available to the ENC
Encryption Request Coordinator through the SNAP-R system.
Section 740.17(b)(2) is amended to update the performance
parameters of ``network infrastructure'' items. In paragraph
(b)(2)(A)(1), the performance parameter for aggregate encrypted WAN,
MAN, VPN, backhaul or long-haul throughput (including communications
through wireless network elements such as gateways, mobile switches,
and controllers) is updated from greater than 90 Mbps to equal to or
greater than 250 Mbps. Paragraph (b)(2)(i)(A)(2), which set forth a
performance parameter for wire (line), cable or fiber optic WAN, MAN or
VPN single channel input data rate exceeding 154 Mbps is deleted, as
this parameter is redundant in light of the aggregate encrypted
throughput parameter in paragraph (b)(2)(A)(1). For media gateways and
other unified communications (UC) infrastructure, including Voice-over-
Internet Protocol (VoIP) services, the media encryption encrypted
signaling is raised from more than 1,000 to 2,500 endpoints in
paragraph (b)(2)(i)(A)(4).
Section 740.17(b)(2) is also amended to authorize exports,
reexports, and transfers (in-country) of ``network infrastructure''
items to ``less sensitive government end users'' in all countries
except Country Group E:1 and E:2 countries. A definition of ``less
sensitive government end users'' is added to part 772. BIS has issued
many so-called ``worldwide'' encryption licensing arrangements (ELAs)
with this scope and a semi-annual reporting requirement. Because there
is no country scope difference between the ELAs and the License
Exception ENC authorization to non-``government end users,'' BIS is
making such exports, reexports, and transfers (in-country) eligible for
License Exception ENC.
This rule also adds a Note to paragraph (b)(2)(i)(A) to add a carve
out for certain types of satellite infrastructure and to define
`network infrastructure.' The satellite carve out was necessary because
paragraph (b)(2), which precludes mass market treatment, was catching
these consumer goods. The definition for `network infrastructure' is
needed to clarify the scope of the license exception.
This rule adds new paragraph (b)(2)(i)(H) for items in 5A002.d or
.e and equivalent or related software therefor classified under 5D002.
Such commodities and software were eligible for (b)(1) and (b)(3), but
are now moved to (b)(2) because BIS determined that they warrant a
higher level of control. BIS does not anticipate an increase in license
applications because historically BIS has not received license
applications for such items.
Section 740.17(b)(4) is deleted because it is no longer needed.
Section 740.17(b)(4)(i) described products with short range wireless
encryption functions, most of which have been decontrolled pursuant to
the decontrol notes in ECCN 5A002 on the Commerce Control List or
pursuant to Note 4 to Category 5--Part 2 of the Commerce Control List.
Section 740.17(b)(4)(ii) is moved to Sec. 740.17(a)(4) (see
explanation above for paragraph (a)(4)).
Section 740.17(f), ``Grandfathering,'' is deleted as it is no
longer necessary.
Supplement No. 3 to Part 740 is amended to add Croatia because it
is a member of the European Union. This revised list harmonizes with
the European Union's list of countries that do not require a license
for encryption items.
Part 742--CCL Based Controls
The introductory paragraph of Sec. 742.15(a) is amended to update
the ECCNs that are controlled for EI reasons consistent with the
implementation of the WA agreement to restructure Category 5--Part 2.
There is no substantive change to eligible items. Country Group E:2 is
added to Sec. 742.15(a)(2) to correct an oversight in not adding it
when Cuba was added to Country Group E:2. Section 742.15(a) is also
amended to state that mass market encryption products are now released
from Encryption Item (EI) and National Security (NS) controls pursuant
to Sec. 740.17, not Sec. 742.15(b), and to clarify that encryption
license arrangements are available for exports to all ``government end
users'' in most countries, including military end users, now that there
is a defined subset of government end users (i.e., less sensitive
government end users). The mass market provisions are deleted in Sec.
742.15(b) and added (moved) to Sec. 740.17(b) in order to consolidate
these provisions in one place. In addition, the classification
requirements for mass market encryption products are moved to Sec.
740.17(b). New Sec. 742.15(b) sets forth the notification requirement
when encryption source code is made publicly available. The
notification requirement is the same as previously set forth in Sec.
740.13(e).
Sections 742.15(c) (Self-classification reporting) and 742.15(f)
(Grandfathering) are deleted. The self-classification reporting
provisions formerly in Sec. 742.15(c) have been moved to Sec.
740.17(e)(3) in order to consolidate all the mass-market provisions
into Sec. 740.17. The encryption registration requirement previously
set forth in Sec. Sec. 740.17(b) and 742.15(b) is deleted.
[[Page 64665]]
The grandfathering provisions are no longer necessary.
Supplement No. 5 to part 742 is deleted because the encryption
registration requirement previously set forth in Sec. Sec. 740.17(b)
and 742.15(b) is deleted.
Supplement No. 6 to part 742 ``Technical Questionnaire . . .'' is
amended by revising the title of the supplement to include ``other
``information security'' items,'' as well as revising the titles to
paragraphs (a) and (b). Most of the revisions to this supplement are to
clarify the information that must be provided in a classification
request for encryption or ``information security'' items. This rule
removes reference to the encryption registration in paragraphs (a)(2)
and (d)(1) because this rule removes the requirement for encryption
registration. Paragraph (b)(3) is revised for clarity. Paragraph (b)(7)
is the former (b)(10). Paragraphs (b)(2), (b)(3), and (b)(9) are
revised to clarify the information request. Paragraph (b)(10) is now
question (7) from the deleted Supplement No. 5 to part 742. Paragraph
(b)(11) has been updated to correspond more closely with Sec.
740.17(b)(2). Paragraph (b)(12) is redesignated as (b)(13) and a new
paragraph (b)(12) is added, which addresses information related to
Sec. 740.17(b)(3). This rule adds paragraph (b)(14) to address
Internet Protocol Security (IPsec) capabilities in products.
Supplement No. 8 to part 742 is amended by revising the
introductory paragraph, introductory text to paragraph (a), and
paragraphs (a)(6) and (c)(1) to remove references to the deleted
encryption registration requirement and to harmonize citation
references to track amendments in this rule. The list of products in
paragraph (a)(6) is revised to more accurately describe the types of
products being reported. Paragraphs (a)(7) through (12) are added to
include fields that remain necessary now that Supplement No. 5 is
deleted. Paragraph (b)(2) and (b)(3) are revised to add six additional
fields to identify the company or person submitting the report, its
address, email, point of contact, telephone number, non-U.S. components
and non-U.S. manufacturing locations, and bringing the total number of
fields to twelve. Paragraph (c)(4) is added to note that only products
self-classified by the exporter should be reported.
Part 748--Application
This rule removes reference to the encryption registration and
procedures, and aligns citation and ECCN references with revisions in
this rule in Sec. 748.1(a) and (d), Sec. 748.3 title, paragraph (a),
paragraph (d) title and paragraph, Sec. 748.7(a) and (d), Sec. 748.8
(r), Sec. 748.9(c)(1)(viii), Supplement No. 1 to part 748 Block 5
paragraph, Supplement No. 2 paragraph (r), and Supplement No. 7
``Validated End User'' list.
Other changes to Part 748 that relate to the removal of the foreign
national review submission are described further down in this
Supplementary Information section. One change to Supp. No. 6 to part
748 is described above in relation to a WA agreement.
Part 772--Terms and Definitions
In addition to the revisions to Part 772 related to WA agreements,
this rule amends Part 772 in light of information security updates and
simplification. Part 772 is amended to add definitions of ``less
sensitive government end users'' (as applied to encryption items) and
``more sensitive government end users'' (as applied to encryption
items). BIS had been using these lists of less and more sensitive
government end users for purposes of post-shipment reporting and pre-
shipment notification requirements in encryption licensing arrangements
(ELAs); however, they were not published in the EAR. These definitions
will be used in Sec. 742.15(a)(2) license review policy for Encryption
License Arrangements (ELAs) and in Sec. 740.17(b)(2)(i) for a specific
License Exception ENC authorization.
In Sec. 772.1 of the EAR, this rule revises the definition of
``publicly available encryption software'' to provide the updated
reference of Sec. 742.15(b) for notification requirements, instead of
Sec. 740.13(e) of the EAR.
Category 5--Part 2
The Nota Bene to Note 3 (Cryptography Note) is amended to remove
the reference to the encryption registration requirement and to add
reference to the self-classification report because the information
that was previously needed for the encryption registration will be
obtained from the self-classification report.
5D002 ``Information Security'' ``software''
This rule makes editorial revisions to the license requirements for
this ECCN.
5E002 ``Information Security'' ``technology''
This rule makes editorial revisions to the license requirements for
this ECCN. The last sentence of the Related Controls note is deleted.
Technology related to equipment excluded from control under ECCN 5A002
is not necessarily controlled under ECCN 5E992.
5A992 Equipment Not Controlled by 5A002
Paragraphs 5A992.a and .b are deleted because information security,
telecommunication, and information security equipment, whether or not
containing encryption, and components therefor will now either be
controlled in the higher level Category 5--Part 2 ECCNs or not at all
(i.e., EAR99). The only items still described in ECCN 5A992 are mass
market encryption items in paragraph 5A992.c.
5D992 ``Information security'' ``software'' Not Controlled by 5D002
Paragraphs 5D992.a and .b are deleted. The only items still
described in ECCN 5D992 are mass market encryption items in 5D992.c.
See explanation for 5A992 above. Some items previously classified as
5D992.a or .b may now be classified as 4D993. You may submit a
classification request to BIS for a free official classification or
self-classify as appropriate.
5E992 ``Information Security'' ``technology''
ECCN 5E992 is amended by removing and reserving Items paragraph .a,
which is a consequential change because of the removal of 5A992.a and
.b and 5D992.a and .b.
A separate companion rule also published today is revising the
license requirements of twelve entities on the Entity List to ``all
items subject to the EAR'' in order to narrow the license requirement
differences between EAR99 and 5A992.a and .b.
The entry for ``Shanghai Huahong Grace Semiconductor Manufacturing
Corporation'' on the VEU list is amended by revising the eligible
items, because some of the items from 5A002 are now in new ECCN 5A004.
Therefore, ECCN 5A004 is added to the list of eligible items for this
entry.
Part III--High Performance Computer Adjusted Peak Performance (APP)
Related Changes
In conjunction with the raising of APP numbers in Category 4 by WA
agreements, BIS is updating License Exception APP.
Section 740.7 License Exception APP
In addition to the revisions connected with the removal of the
Foreign National Review procedures, License Exception APP is amended by
replacing the list of twenty-two (22) countries in paragraph (c)(3)(i)
that are eligible to receive technology and software for
[[Page 64666]]
computers of unlimited Adjusted Peak Performance (APP) under License
Exception APP with the list of thirty-six (36) countries in Country
Group A:5 in Supplement No. 1 to part 740 because these countries are
considered most trusted allies with like-minded export controls. This
adds 14 Computer Tier 1 countries (Argentina, Bulgaria, Croatia, Czech
Republic, Estonia, Hungary, Iceland, S. Korea, Latvia, Lithuania,
Poland, Romania, Slovakia and Slovenia) to the list of countries
eligible to receive technology and software controlled by ECCNs 4D001
and 4E001 specially designed or modified for the ``development,''
``production,'' or ``use'' of computers, including ``electronic
assemblies'' and specially designed components therefor classified in
ECCN 4A003 under license exception APP.
For the rest of Computer Tier 1 countries the APP threshold for
deemed exports of ``development'' and ``production'' computer
technology and source code is raised from an APP of 25 to 40 Weighted
TeraFLOPS (WT) in paragraph (c)(3)(ii) and the ``use'' technology and
source code is raised from an APP of 120 to 200 WT in paragraph
(c)(3)(iii).
For Computer Tier 3 countries, the APP threshold for deemed exports
of ``development'' and ``production'' technology and source code is
raised from an APP of 12 to 16 WT in paragraph (d)(3)(i). The APP
threshold for deemed exports of ``use'' technology and source code is
raised from an APP of 25 to 32 WT in paragraph (d)(3)(ii).
These APP threshold revisions are based on technological
advancements in computer technology, as well as license data on the
deemed export of computer technology.
Section 734.4 De minimis U.S. content.
Section 734.4 is amended by revising paragraph (a)(1) ``items for
which there is no de minimis level'' to link the first APP value to
ECCN 4A003.b for Tier 3 countries and the second APP value to 4A994.b
for Cuba, Iran, North Korea, Sudan, and Syria. In making this revision,
BIS is directly linking these ineligibility provisions for computers
with the control levels for computers for these countries.
Sec. 743.2 High performance computers: Post shipment verification
reporting.
Section 743.2 is amended by replacing the reference to the Adjusted
Peak Performance of 8.0 with a reference to ECCN 4A003.b in the
requirement for post shipment verification reporting for exports and
reexports of high performance computers to Computer Tier 3
destinations. By replacing the APP number with the reference to
4A003.b, it will always be directly linked with the APP control
parameter of ECCN 4A003.
Part IV--Removal of the Foreign National Review (FNR) Procedure
The Foreign National Review (FNR) procedure was implemented in
License Exceptions CIV and APP (then CTP) in 2004 as a less burdensome
procedure for authorizing deemed exports that would otherwise require
licenses. Since the procedure was implemented, according to licensing
statistics, BIS has processed a total of approximately 410
applications, of which 230 were approved, none were denied, and 180
were returned without action due to ineligibility or because the FNR
was not required for the deemed export at issue. These statistics
indicate that the procedure is not used widely by industry, perhaps
because it is not well understood. In addition, the fact that the
review procedure has not resulted in any denials in over eight years
indicates that government licensing resources should be redirected to
other more sensitive licensing issues. Removing this requirement
removes an unnecessary delay for foreign nationals to receive
technology that is eligible for deemed exports under License Exceptions
CIV and APP. Therefore, BIS is removing the FNR procedure from the EAR
so that License Exception CIV and APP may be utilized for eligible
deemed exports.
License Exception CIV--Sec. 740.5
This rule removes paragraph (d) under Sec. 740.5, which is the
requirement under License Exception CIV to submit an FNR request to BIS
for deemed exports and reexports of 3E002 technology to foreign
nationals. The removal of this paragraph conforms to the removal of the
FNR procedure from the EAR. This change allows exporters to utilize
License Exception CIV for deemed exports of eligible 3E002 technology
to a foreign national having a home country included in EAR Country
Group D:1 without having to submit a FNR request to BIS.
Part 748 Applications (Classification, Advisory, and License) and
Documentation
Section 748.7 ``Registering for electronic submission of license
applications and related documents'' is amended by removing references
to the FNR requirement for License Exceptions APP and CIV under
paragraphs (a) and (d). The removal of these words conform this
provision with the removal of the FNR procedure from the EAR.
Section 748.8 ``Unique Application and Submission Requirements'' is
amended by removing paragraphs (s) ``Foreign National Review Request''
and (t) ``Foreign National Support Statement for deemed exports.''
Corresponding paragraphs (s) and (t) are removed from Supplement No. 2
to part 748 as well. The removal of these sections and paragraphs
conforms with the removal of the FNR procedure from the EAR. Guidelines
for foreign national license applications are found on the BIS Web site
at https://www.bis.doc.gov/index.php/policy-guidance/deemed-exports.
Other changes to Part 748 related to the removal of the encryption
registration requirement and a WA agreement are described in two
separate paragraphs in a previous section of this Supplementary
Information section.
Export Administration Act
Since August 21, 2001, the Export Administration Act of 1979, as
amended, has been in lapse. However, 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 4, 2016, 81 FR 52587
(August 8, 2016), has continued the EAR in effect under the
International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.).
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.
Saving Clause
Shipments of items removed from license exception eligibility or
eligibility for export, reexport or transfer (in-country) without a
license as a result of this regulatory action that were on dock for
loading, on lighter, laden aboard an exporting carrier, or en route
aboard a carrier to a port of export, on September 20, 2016, pursuant
to actual orders for exports, reexports and transfers (in-country) to a
foreign destination, may proceed to that destination under the previous
license exception eligibility or without a license so long as they have
been exports, reexports and transfers (in-country) before November 21,
2016. Any such items not actually exported, reexported and transfered
(in-country) before midnight, on November 21, 2016, require a license
in accordance with this regulation.
[[Page 64667]]
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, distributive 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,'' under Executive Order 12866. Accordingly, the rule has been
reviewed by the Office of Management and Budget.
2. Notwithstanding any other provision of law, no person is
required to respond to, nor shall any person be 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 Office of Management and Budget (OMB) Control Number. This rule
involves two collections of information subject to the PRA. One of the
collections has been approved by OMB under control number 0694-0088,
``Multi-Purpose Application,'' and carries a burden hour estimate of 58
minutes for a manual or electronic submission. The other collection has
been approved by OMB under control number 0694-0106, ``Reporting and
Recordkeeping Requirements under the Wassenaar Arrangement,'' and
carries a burden hour estimate of 21 minutes for a manual or electronic
submission. The collection under control number 0694-0137 ``License
Exemptions and Exclusions'' is revised because the notification
requirement for publicly available software is amended by this rule.
The notification requirement for publicly available source code
software is moved from License Exception TSU to Sec. 742.15(b) of the
EAR. Therefore, the burden hours will be moved from one section to
another within 0694-0137 as a consequence of this rule and citations
and requirements will be updated within the supporting statement for
this collection upon the next renewal submission. Send comments
regarding these burden estimates or any other aspect of these
collections of information, including suggestions for reducing the
burden, to OMB Desk Officer, New Executive Office Building, Washington,
DC 20503; and to Jasmeet Seehra, OMB Desk Officer, by email at
Jasmeet_K._Seehra@omb.eop.gov or by fax to (202) 395-7285; and to the
Office of Administration, Bureau of Industry and Security, Department
of Commerce, 1401 Constitution Ave. NW., Room 6622, Washington, DC
20230.
3. This rule does not contain policies with Federalism implications
as that term is defined under Executive Order 13132.
4. The provisions of the Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed rulemaking, the opportunity for
public participation, and a 30-day delay in effective date, are
inapplicable because this regulation involves a military and foreign
affairs function of the United States (5 U.S.C. 553(a)(1)). Immediate
implementation of these amendments fulfills the United States'
international obligation to the Wassenaar Arrangement on Export
Controls for Conventional Arms and Dual-Use Goods and Technologies. The
Wassenaar Arrangement contributes to international security and
regional stability by promoting greater responsibility in transfers of
conventional arms and dual use goods and technologies, thus preventing
destabilizing accumulations of such items. The Wassenaar Arrangement
consists of 41 member countries that act on a consensus basis and the
changes set forth in this rule implement agreements reached at the
December 2015 plenary session of the WA. Because the United States is a
significant exporter of the items covered by this rule, implementation
of this rule is necessary for the WA to achieve its purpose. Any delay
in implementation will create a disruption in the movement of affected
items globally because of disharmony between export control measures
implemented by WA members, resulting in tension between member
countries. Export controls work best when all countries implement the
same export controls in a timely manner. If this rulemaking were
delayed to allow for notice and comment and a 30-day delay in
effectiveness, it would prevent the United States from fulfilling its
commitment to the WA in a timely manner and would injure the
credibility of the United States in this and other multilateral
regimes.
Further, no other law requires that a notice of proposed rulemaking
and an opportunity for public comment be given for this final rule.
Because a notice of proposed rulemaking and an opportunity for public
comment are not required to be given for this rule under the
Administrative Procedure Act or by any other law, the analytical
requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.)
are not applicable. Therefore, this regulation is issued in final form.
Although there is no formal comment period, public comments on this
regulation are welcome on a continuing basis. Comments should be
submitted to Sharron Cook, Office of Exporter Services, Bureau of
Industry and Security, Department of Commerce, 14th and Pennsylvania
Ave. NW., Room 2099, Washington, DC 20230.
List of Subjects
15 CFR Part 730
Administrative practice and procedure, Advisory committees,
Exports, Reporting and recordkeeping requirements, Strategic and
critical materials
15 CFR Part 734
Administrative practice and procedure, Exports, Inventions and
patents, Research Science and technology.
15 CFR Parts 738, 770 and 772
Exports.
15 CFR Parts 740 and 748
Administrative practice and procedure, Exports, Reporting and
recordkeeping requirements.
15 CFR part 742
Exports, Terrorism.
15 CFR part 774
Exports, Reporting and recordkeeping requirements.
Accordingly, Parts 730, 734, 738, 740, 742, 748, 770, 772, and 774
of the Export Administration Regulations (15 CFR parts 730-774) are
amended as follows:
PART 730--[AMENDED]
0
1. The authority citation for Part 730 continues to read as follows:
Authority: 50 U.S.C. 4601 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. 2151 note;
22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; 42 U.S.C. 2139a; 43 U.S.C.
1354; 15 U.S.C. 1824a; 50 U.S.C. 4305; 22 U.S.C. 7201 et seq.; 22
U.S.C. 7210; E.O. 11912, 41 FR 15825, 3 CFR, 1976 Comp., p. 114;
E.O. 12002, 42 FR 35623, 3 CFR, 1977 Comp., p. 133; E.O. 12058, 43
FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12214, 45 FR 29783, 3 CFR,
1980 Comp., p. 256; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p.
608; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 179; E.O. 12918,
59 FR 28205, 3 CFR, 1994 Comp., p. 899; 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. 12981, 60 FR 62981, 3 CFR, 1995 Comp., p. 419; E.O.
[[Page 64668]]
13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026, 61 FR
58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 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; E.O. 13338,
69 FR 26751, 3 CFR, 2004 Comp., p 168; E.O. 13637, 78 FR 16129, 3
CFR, 2014 Comp., p. 223; Notice of September 18, 2015, 80 FR 57281
(September 22, 2015); Notice of November 12, 2015, 80 FR 70667
(November 13, 2015); Notice of January 20, 2016, 81 FR 3937 (January
22, 2016); Notice of May 3, 2016, 81 FR 27293 (May 5, 2016); Notice
of August 4, 2016, 81 FR 52587 (August 8, 2016).
Supplement No. 1 to Part 730 [Amended]
0
2. Supplement No. 1 to part 730 is amended by removing the reference to
``740.13(e)'' under the ``Reference in the EAR'' column for the
collection number 0694-0137.
PART 734--[AMENDED]
0
3. The authority citation for Part 734 continues to read as follows:
Authority: 50 U.S.C. 4601 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, 78 FR 16129, 3 CFR, 2014 Comp., p. 223; Notice of
November 12, 2015, 80 FR 70667 (November 13, 2015); Notice of August
4, 2016, 81 FR 52587 (August 8, 2016).
0
4. Section 734.3 is amended by revising the Note to paragraph (a)(4)
and in the Note to paragraphs (b)(2) and (b)(3) by removing the
citation ``Sec. 740.13(e)'' and adding ``Sec. 742.15(b)'' in its
place.
The revision reads as follows:
Sec. 734.3 Items subject to the EAR.
* * * * *
(a) * * *
(4) * * *
Note to paragraph (a)(4): Certain foreign-manufactured items
developed or produced from U.S.-origin encryption items exported
pursuant to License Exception ENC are subject to the EAR. See Sec.
740.17(a) of the EAR.
* * * * *
0
5. Section 734.4 is amended by revising paragraphs (a)(1) and (b) to
read as follows:
Sec. 734.4 De minimis U.S. content.
(a) Items for which there is no de minimis level. (1) There is no
de minimis level for the export from a foreign country of a foreign-
made computer with an Adjusted Peak Performance (APP) exceeding that
listed in ECCN 4A003.b and containing U.S.-origin controlled
semiconductors (other than memory circuits) classified under ECCN 3A001
to Computer Tier 3 destinations; or exceeding an APP listed in ECCN
4A994.b and containing U.S.-origin controlled semiconductors (other
than memory circuits) classified under ECCN 3A001 or high speed
interconnect devices (ECCN 4A994.j) to Cuba, Iran, North Korea, Sudan,
and Syria.
* * * * *
(b) Special requirements for certain encryption items. Non-U.S.-
made items that incorporate U.S.-origin items that are listed in this
paragraph are subject to the EAR unless they meet the de minimis level
and destination requirements of paragraph (c) or (d) of this section
and the requirements of this paragraph.
(1) The U.S.-origin commodities or software, if controlled under
ECCN 5A002, ECCN 5B002, equivalent or related software therefor
classified under ECCN 5D002, and ``cryptanalytic items'' classified
under ECCN 5A004 or 5D002, must have been:
(i) Publicly available encryption source code classified under ECCN
5D002 that has met the notification requirement of Sec. 742.15(b), see
Sec. 734.3(b)(3) of the EAR. Such source code does not have to be
counted as controlled U.S.-origin content in a de minimis calculation;
(ii) Authorized for License Exception ENC by BIS after
classification pursuant to Sec. 740.17(b)(3) of the EAR;
(iii) Authorized for License Exception ENC by BIS after
classification pursuant to Sec. 740.17(b)(2) of the EAR, and the non-
U.S.-made product will not be sent to any destination in Country Groups
E:1 and E:2 in Supplement No. 1 to part 740 of the EAR; or
(iv) Authorized for License Exception ENC pursuant to Sec.
740.17(b)(1) of the EAR.
(2) U.S.-origin encryption items classified under ECCNs 5A992.c,
5D992.c, or 5E992.b.
Note to paragraph (b): See Supplement No. 2 to this part for de
minimis calculation procedures and reporting requirements.
Sec. 734.7 [Amended]
0
6. In Sec. 734.7, paragraph (b) is amended by revising the citation
``Sec. 740.13(e)'' to read ``Sec. 742.15(b).''
0
7. In Sec. 734.17, paragraph (b)(2) is amended by revising the last
two sentences to read as follows:
Sec. 734.17 Export of encryption source code and object code
software.
* * * * *
(b) * * *
(2) * * * See Sec. 742.15(b) of the EAR for notification
requirements for export or reexports of encryption source code
``software'' considered to be publicly available or published
consistent with the provisions of Sec. 734.3(b)(3). Publicly available
encryption source code ``software'' and corresponding object code are
not subject to the EAR, when the encryption source code ``software''
meets the notification requirements in Sec. 742.15(b) of the EAR.
* * * * *
PART 738--[AMENDED]
0
8. The authority citation for part 738 continues to read as follows:
Authority: 50 U.S.C. 4601 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; 42 U.S.C. 2139a; 43 U.S.C. 1354; 15 U.S.C.
1824a; 50 U.S.C. 4305; 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 4, 2016, 81 FR
52587 (August 8, 2016).
0
9. In Sec. 738.4, revise paragraph (a)(2)(ii)(B) to read as follows:
Sec. 738.4 Determining whether a license is required.
(a) * * *
(2) * * *
(ii) * * *
(B) If no, a license is not required based on the particular Reason
for Control and destination. Provided that General Prohibitions Four
through Ten do not apply to your proposed transaction and the License
Requirement section does not refer you to any other part of the EAR to
determine license requirements. For example, any applicable encryption
classification requirements described in Sec. 740.17(b) of the EAR
must be met for certain mass market encryption items to affect your
shipment using the symbol ``NLR.'' Proceed to parts 758 and 762 of the
EAR for information on export clearance procedures and recordkeeping
requirements. Note that although you may stop after determining a
license is required based on the first Reason for Control, it is best
to work through each applicable Reason for Control. A full analysis of
every possible licensing requirement based on each applicable Reason
for Control is required to determine the most advantageous License
Exception available for your particular transaction and, if a license
is required, ascertain the scope of review conducted by BIS on your
license application.
* * * * *
[[Page 64669]]
PART 740--[AMENDED]
0
10. The authority citation for part 740 continues to read as follows:
Authority: 50 U.S.C. 4601 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 4, 2016, 81 FR 52587 (August 8, 2016).
Sec. 740.5 [Amended]
0
11. Section 740.5 is amended by removing paragraph (d).
0
12. Section 740.7 is amended by revising paragraphs (a), (c)(3), and
(d)(3) and removing paragraph (d)(4).
The revisions read as follows:
Sec. 740.7 Computers (APP).
(a) Scope--(1) Commodities. License Exception APP authorizes
exports, reexports and transfers (in-country) of computers, including
``electronic assemblies'' and specially designed components therefor
controlled by ECCN 4A003 exported or reexported separately or as part
of a system for consumption in Computer Tier countries as provided by
this section. When evaluating your computer to determine License
Exception APP eligibility, use the APP parameter to the exclusion of
other technical parameters in ECCN 4A003.
(2) Technology and software. License Exception APP authorizes
exports of technology and software controlled by ECCNs 4D001 and 4E001
specially designed or modified for the ``development,'' ``production,''
or ``use'' of computers, including ``electronic assemblies'' and
specially designed components therefor classified in ECCN 4A003 to
Computer Tier countries as provided by this section.
* * * * *
(c) * * *
(3) Eligible technology and software. (i) Technology and software
described in paragraph (a)(2) of this section for computers of
unlimited APP are eligible for export, reexport, transfer (in-country)
under License Exception APP to countries listed in Country Group A:5,
see Supplement No. 1 to this part; and
(ii) ``Development'' and ``production'' technology and source code
described in paragraph (a)(2) of this section for computers with a APP
less than or equal to 40 Weighted TeraFLOPS (WT) are eligible for
deemed exports under License Exception APP to foreign nationals of Tier
1 destinations, other than the destinations that are listed in
paragraph (c)(3)(i) of this section, subject to the restrictions in
paragraph (b) of this section.
(iii) ``Use'' technology and source code described in paragraph
(a)(2) of this section for computers with a APP less than or equal to
200 WT are eligible for deemed exports under License Exception APP to
foreign nationals of Tier 1 destinations, other than the destinations
that are listed in paragraph (c)(3)(i) of this section, subject to the
restrictions in paragraph (b) of this section.
(d) * * *
(3) Eligible technology and source code. (i) ``Development'' and
``production'' technology and source code described in paragraph (a)(2)
of this section for computers with an APP less than or equal to 16
Weighted TeraFLOPs (WT) are eligible for deemed exports under License
Exception APP to foreign nationals of Tier 3 destinations as described
in paragraph (d)(1) of this section, subject to the restrictions in
paragraph (b) of this section.
(ii) ``Use'' technology and source code described in paragraph
(a)(2) of this section for computers with an APP less than or equal to
32 WT are eligible for deemed exports under License Exception APP to
foreign nationals of Tier 3 destinations as described in paragraph
(d)(1) of this section, subject to the restrictions in paragraph (b) of
this section.
* * * * *
0
13. Section 740.11 is amended by revising paragraphs (a)(2)(iii) and
(c)(3)(iii) to read as follows:
Sec. 740.11 Governments, international organizations, international
inspections under the Chemical Weapons Convention, and the
International Space Station (GOV).
* * * * *
(a) * * *
(2) * * *
(iii) Encryption items controlled for EI reasons under ECCNs 5A002,
5A004, 5D002, or 5E002 may not be exported, reexported, or transferred
(in-country) under this paragraph (a). See Sec. 740.17 of the EAR
(License Exception ENC) for possible alternative license exception
authorization.
* * * * *
(c) * * *
(3) * * *
(iii) Encryption items controlled for EI reasons under ECCNs 5A002,
5A004, 5D002, or 5E002 (see Sec. 740.17 of the EAR for License
Exception ENC);
* * * * *
Sec. 740.13 [Amended]
0
14. Section 740.13 is amended by removing and reserving paragraph (e).
0
15. Section 740.17 is revised to read as follows:
Sec. 740.17 Encryption Commodities, Software, and Technology (ENC).
License Exception ENC authorizes export, reexport, and transfer
(in-country) of systems, equipment, commodities, and components
therefor that are classified under ECCNs 5A002, 5B002, equivalent or
related software and technology therefor classified under 5D002 or
5E002, and ``cryptanalytic items'' classified under ECCNs 5A004, 5D002
or 5E002. This License Exception ENC does not authorize export or
reexport to, transfer (in-country) in, or provision of any service in
any country listed in Country Groups E:1 or E:2 in Supplement No. 1 to
part 740 of the EAR, or release of source code or technology to any
national of a country listed in Country Groups E:1 or E:2. Reexports
and transfers (in-country) under License Exception ENC are subject to
the criteria set forth in paragraph (c) of this section. Paragraphs (b)
and (d) of this section set forth information about classifications
required by this section. Items described in paragraphs (b)(1) and
(b)(3)(i), (ii), or (iv) of this section that meet the criteria set
forth in Note 3 to Category 5--Part 2 of the Commerce Control List (the
``mass market'' note) are classified under ECCN 5A992.c or 5D992.c
following self-classification or classification by BIS and are no
longer subject to ``EI'' and ``NS'' controls. Paragraph (e) sets forth
reporting required by this section. For items exported under paragraphs
(b)(1), (b)(3)(i), (ii), or (iv) of this section and therefore excluded
from paragraph (e) reporting requirements, exporters are reminded of
the recordkeeping requirements in part 762 of the EAR and that they may
be required to make such records available upon request. All
classification requests, and reports submitted to BIS pursuant to this
section for encryption items will be reviewed by the ENC Encryption
Request Coordinator, Ft. Meade, MD.
(a) No classification request or reporting required. License
Exception ENC authorizes the export, reexport, or transfer (in-country)
to the end users and for the end uses set forth in paragraphs (a)(1)
through (3) of this section, without submission of a classification
request, self-classification report or sales report to BIS.
(1) Certain exports, reexports, transfers (in-country) to `private
sector end users'--(i) Internal ``development'' or ``production'' of
new products. License Exception ENC authorizes certain exports,
reexports, and transfers (in-country) of items described in paragraph
(a) of this section for the internal ``development'' or
[[Page 64670]]
``production'' of new products by `private sector end users,' wherever
located, that are headquartered in a country listed in Supplement No. 3
of this part.
(ii) Certain exports, reexports, transfers (in-country) to related
parties, not involving ``development'' or ``production'' of new
products. For internal end uses among `private sector end users' other
than the ``development'' or ``production'' of new products, License
Exception ENC authorizes exports, reexports, and transfers (in-country)
of non-U.S.-origin items, described in paragraph (a) of this section,
to `private sector end users' wherever located provided that:
(A) That item became subject to the EAR after it was produced;
(B) All parties to the transaction are subsidiaries of the same
parent company headquartered in a country listed in Supplement No. 3 of
this part; and
(C) The characteristics or capabilities of the existing item are
not enhanced, unless otherwise authorized by license or license
exception.
Note to paragraph (a)(1): A `private sector end user' is either:
An individual who is not acting on behalf of any foreign government;
or a commercial firm (including its subsidiary and parent firms, and
other subsidiaries of the same parent) that is not wholly owned by,
otherwise controlled by or acting on behalf of, any foreign
government.
(2) Exports, reexports, transfers (in-country) to ``U.S.
Subsidiaries.'' License Exception ENC authorizes export, reexport, and
transfer (in-country) of items described in paragraph (a) of this
section to any ``U.S. subsidiary,'' wherever located. License Exception
ENC also authorizes export, reexport, transfer (in-country) of such
items by a U.S. company and its subsidiaries to foreign nationals who
are employees, individual contractors or interns of a U.S. company or
its subsidiaries if the items are for internal company use, including
the ``development'' or ``production'' of new products, without prior
review by the U.S. Government.
Note to paragraphs (a)(1) and (2): All items produced or
developed with items exported, reexported, or transferred (in-
country) under paragraphs (a)(1) or (2) of this section are subject
to the EAR. These items may require the submission of a
classification request before sale, reexport or transfer to non-
``U.S. subsidiaries,'' unless otherwise authorized by license or
license exception.
(3) Reexports and transfers (in-country) of non-U.S. products
developed with or incorporating U.S.-origin encryption source code,
components, or toolkits. License Exception ENC authorizes the reexport
and transfer (in-country) of non-U.S. products developed with or
incorporating U.S.-origin encryption source code, components or
toolkits that are subject to the EAR, provided that the U.S.-origin
encryption items have previously been classified or reported and
authorized by BIS and the cryptographic functionality has not been
changed. Such products include non-U.S. developed products that are
designed to operate with U.S. products through a cryptographic
interface.
Note to paragraph (a)(3): This exception from classification and
reporting requirements does not apply to non-U.S.-origin products
exported from the United States.
(b) Classification request or self-classification report. For
products described in paragraph (b)(1) of this section that are self-
classified by the exporter, a self-classification report in accordance
with paragraph (e)(3) of this section is required from specified
exporters, reexporters and transferors; for products described in
paragraph (b)(1) of this section that are classified by BIS via a
CCATS, a self-classification report is not required. For products
described in paragraphs (b)(2) and (3) of this section, a thirty-day
(30-day) classification request is required in accordance with
paragraph (d) of this section. An exporter, reexporter, or transferor
may rely on the producer's self-classification (for products described
in (b)(1), only) or CCATS for an encryption item eligible for export or
reexport under License Exception ENC under paragraph (b)(1), (2), or
(3) of this section. Exporters are still required to comply with semi-
annual sales reporting requirements under paragraph (e)(1) or (2) of
this section, even if relying on a CCATS issued to a producer for
specified encryption items described in paragraphs (b)(2) and
(b)(3)(iii) of this section.
(1) Immediate authorization. This paragraph (b)(1) authorizes the
exports, reexports, and transfers (in-country) of the associated
commodities self-classified under ECCNs 5A002.a or 5B002, and
equivalent or related software therefor classified under 5D002, except
any such commodities, software, or components described in (b)(2) or
(3) of this section, subject to submission of a self-classification
report in accordance with Sec. 740.17(e)(3) of the EAR. Items
described in this paragraph (b)(1) that meet the criteria set forth in
Note 3 to Category 5--Part 2 of the Commerce Control List (the ``mass
market'' note) are classified as ECCN 5A992.c or 5D992.c following
self-classification or classification by BIS and are removed from
``EI'' and ``NS'' controls.
(2) Classification request required. Thirty (30) days after the
submission of a classification request with BIS in accordance with
paragraph (d) of this section and subject to the reporting requirements
in paragraph (e) of this section, this paragraph under License
Exception ENC authorizes certain exports, reexports, and transfers (in-
country) of the items specified in paragraph (b)(2) and submitted for
classification.
Note to paragraph (b)(2 introductory text): Immediately after
the classification request is submitted to BIS in accordance with
paragraph (d) of this section and subject to the reporting
requirements in paragraph (e) of this section, this paragraph also
authorizes exports, reexports, and transfers (in-country) of:
1. All submitted encryption items described in this paragraph
(b)(2), except ``cryptanalytic items,'' to any end user located or
headquartered in a country listed in Supplement No. 3 to this part;
2. Encryption source code as described in paragraph (b)(2)(i)(B)
to non-``government end users'' in any country;
3. ``Cryptanalytic items'' to non-``government end users,''
only, located or headquartered in a country listed in Supplement No.
3 to this part; and
4. Items described in paragraphs (b)(2)(iii) and (b)(2)(iv)(A)
of this section, to specified destinations and end users.
(i) Cryptographic commodities, software, and components. License
Exception ENC authorizes exports, reexports, and transfers (in-country)
of the items in paragraph (a)(i)(A) of this section to ``less sensitive
government end users'' and non- ``government end users'' located or
headquartered in a country not listed in Supplement No. 3 to this part,
and the items in paragraphs (b)(2)(i)(B) through (H) to non
``government end users'' located or headquartered in a country not
listed in Supplement No. 3.
(A) `Network Infrastructure.' `Network infrastructure' commodities
and software, and components therefor, meeting any of the following
with key lengths exceeding 80-bits for symmetric algorithms:
(1) WAN, MAN, VPN, backhaul and long-haul. Aggregate encrypted WAN,
MAN, VPN, backhaul or long-haul throughput (including communications
through wireless network elements such as gateways, mobile switches,
and controllers) equal to or greater than 250 Mbps;
(2) [Reserved]
(3) Satellite infrastructure. Transmission over satellite at data
rates exceeding 10 Mbps;
(4) Media gateways and other unified communications (UC)
infrastructure,
[[Page 64671]]
including Voice-over-Internet Protocol (VoIP) services. Media (voice/
video/data) encryption or encrypted signaling to more than 2,500
endpoints, including centralized key management therefor; or
(5) Terrestrial wireless infrastructure. Air interface coverage
(e.g., through base stations, access points to mesh networks, and
bridges) exceeding 1,000 meters, where any of the following applies:
(i) Maximum transmission data rates exceeding 10 Mbps (at operating
ranges beyond 1,000 meters); or
(ii) Maximum number of concurrent full-duplex voice channels
exceeding 30;
Notes to paragraph (b)(2)(i)(A):
1. The License Exception ENC eligibility restrictions of
paragraphs (b)(2)(i)(A)(3) (satellite infrastructure) and
(b)(2)(i)(A)(5) (terrestrial wireless infrastructure) do not apply
to satellite terminals or modems meeting all of the following:
a. The encryption of data over satellite is exclusively from the
user terminal to the gateway earth station, and limited to the air
interface; and
b. The items meet the requirements of the Cryptography Note
(Note 3) in Category 5--Part 2 of the Commerce Control List.
2. `Network infrastructure' (as applied to encryption items). A
`network infrastructure' commodity or software is any ``end item,''
commodity or ``software'' for providing one or more of the following
types of communications:''
(a) Wide Area Network (WAN);
(b) Metropolitan Area Network (MAN);
(c) Virtual Private Network (VPN);
(d) Satellite;
(e) Digital packet telephony/media (voice, video, data) over
Internet protocol;
(f) Cellular; or
(g) Trunked.
Note 1 to paragraph 2: `Network infrastructure' end items are
typically operated by, or for, one or more of the following types of
end users:
(1) Medium- or large- sized businesses or enterprises;
(2) Governments;
(3) Telecommunications service providers; or
(4) Internet service providers.
Note 2 to paragraph 2: Commodities, software, and components for
the ``cryptographic activation'' of a `network infrastructure' item
are also considered `network infrastructure' items.
(B) Certain ``encryption source code.'' ``Encryption source code''
that is not publicly available as that term is used in Sec. 742.15(b)
of the EAR;
(C) Customized items. Encryption software, commodities and
components therefor, where any of the following applies:
(1) Customized for government end users or end uses. The item has
been designed, modified, adapted, or customized for ``government end
user(s);'' or
(2) Custom or changeable cryptography. The cryptographic
functionality of the item has been designed or modified to customer
specification or can be easily changed by the user;
(D) Quantum cryptography. ECCN 5A002.c or 5D002 ``quantum
cryptography'' commodities or software;
(E) [Reserved]
(F) Network penetration tools. Encryption commodities and software
that provide penetration capabilities that are capable of attacking,
denying, disrupting or otherwise impairing the use of cyber
infrastructure or networks;
(G) Public safety/first responder radio (private mobile radio
(PMR)). Public safety/first responder radio (e.g., implementing
Terrestrial Trunked Radio (TETRA) and/or Association of Public-Safety
Communications Officials International (APCO) Project 25 (P25)
standards);
(H) Specified cryptographic ultra-wideband and ``spread spectrum''
items. Encryption commodities and components therefor, classified under
ECCNs 5A002.d or .e, and equivalent or related software therefor
classified under ECCN 5D002.
(ii) Cryptanalytic commodities and software. ``Cryptanalytic
items'' classified in ECCN 5A004 or 5D002 to non- ``government end
users'' located or headquartered in countries not listed in Supplement
No. 3 to this part.
(iii) ``Open cryptographic interface'' items. Items that provide an
``open cryptographic interface,'' to any end user located or
headquartered in a country listed in Supplement No. 3 to this part.
(iv) Specific encryption technology. Specific encryption technology
as follows:
(A) Technology for ``non-standard cryptography.'' Encryption
technology classified under ECCN 5E002 for ``non-standard
cryptography,'' to any end user located or headquartered in a country
listed in Supplement No. 3 to this part;
(B) Other technology. Encryption technology classified under ECCN
5E002 except technology for ``cryptanalytic items,'' ``non-standard
cryptography'' or any ``open cryptographic interface,'' to any non-
``government end user'' located in a country not listed in Country
Group D:1, E:1, or E:2 of Supplement No. 1 to part 740 of the EAR.
Note to paragraph (b)(2): Commodities, components, and software
classified under ECCNs 5A002.b or 5D002.d, for the ``cryptographic
activation'' of commodities or software specified by this paragraph
(b)(2) are also controlled under this paragraph (b)(2).
(3) Classification request required for specified commodities,
software, and components. Thirty (30) days after a classification
request is submitted to BIS in accordance with paragraph (d) of this
section and subject to the reporting requirements in paragraph (e) of
this section, this paragraph authorizes exports, reexports, and
transfers (in-country) of the items submitted for classification, as
further described in this paragraph (b)(3), to any end user, provided
the item does not perform the functions, or otherwise meet the
specifications, of any item described in paragraph (b)(2) of this
section. Items described in paragraphs (b)(3)(i), (ii), or (iv) of this
section that meet the criteria set forth in Note 3 to Category 5--Part
2 of the Commerce Control List (the ``mass market'' note) are
classified under ECCN 5A992.c or 5D992.c following classification by
BIS.
Note to introductory text of paragraph (b)(3): Immediately after
the classification request is submitted to BIS in accordance with
paragraph (d) of this section and subject to the reporting
requirements in paragraph (e) of this section, this paragraph also
authorizes exports, reexports, transfers (in-country) of the items
described in this paragraph (b)(3) to any end user located or
headquartered in a country listed in Supplement No. 3 to this part.
(i) ``Components,'' toolsets, and toolkits. Specified components
classified under ECCN 5A002.a and equivalent or related software
classified under ECCN 5D002 not described by paragraph (b)(2) of this
section, as follows:
(A) Chips, chipsets, electronic assemblies and field programmable
logic devices;
(B) Cryptographic libraries, modules, development kits and
toolkits, including for operating systems and cryptographic service
providers (CSPs).
(ii) ``Non-standard cryptography'' (by items not otherwise
described in paragraph (b)(2) of this section.) Encryption commodities,
software and components not described by paragraph (b)(2) of this
section, that provide or perform ``non-standard cryptography'' as
defined in part 772 of the EAR.
(iii) Advanced network vulnerability analysis and digital
forensics. Encryption commodities and software not described by
paragraph (b)(2) of this section, that provide or perform vulnerability
analysis, network forensics, or computer forensics functions
characterized by any of the following:
(A) Automated network vulnerability analysis and response.
Automated
[[Page 64672]]
network analysis, visualization, or packet inspection for profiling
network flow, network user or client behavior, or network structure/
topology and adapting in real-time to the operating environment; or
(B) Digital forensics, including network or computer forensics.
Investigation of data leakage, network breaches, and other malicious
intrusion activities through triage of captured digital forensic data
for law enforcement purposes or in a similarly rigorous evidentiary
manner.
(iv) ``Cryptographic activation'' commodities, components, and
software. Commodities, components, and software classified under ECCNs
5A002.b or 5D002.d where the product or cryptographic functionality is
not otherwise described in paragraphs (b)(2) or (b)(3)(i) of this
section.
(c) Reexport and transfer (in-country). Distributors, resellers or
other entities who are not original manufacturers of encryption
commodities and software are permitted to use License Exception ENC
only in instances where the reexport or transfer (in-country) meets the
applicable terms and conditions of this section. Transfers of
encryption items listed in paragraph (b)(2) of this section to
``government end users,'' or for government end uses, within the same
country are prohibited, unless otherwise authorized by license or
license exception.
(d) Classification request procedures--(1) Submission requirements
and instructions. To submit a classification request to BIS, you must
submit an application to BIS in accordance with the procedures
described in Sec. Sec. 748.1 and 748.3 of the EAR and the instructions
in paragraph (r) of Supplement No. 2 to part 748 ``Unique Application
and Submission Requirements,'' along with other required information as
follows:
(ii) Technical information submission requirements. For all
submissions of encryption classification requests for items described
under paragraph (b)(2) or (b)(3) of this section, you must submit the
applicable information described in paragraphs (a) through (d) of
Supplement No. 6 to part 742 of the EAR (Technical Questionnaire for
Encryption Items). For items eligible for self-classification that are
submitted to BIS for classification you may be required to provide BIS
this Supplement No. 6 to part 742 information on an as-needed basis,
upon request by BIS.
(iii) Changes in encryption functionality following a previous
classification. A new product encryption classification request (under
paragraphs (b)(2) or (b)(3) of this section) is required if a change is
made to the cryptographic functionality (e.g., algorithms) or other
technical characteristics affecting License Exception ENC eligibility
(e.g., encrypted throughput) of the originally classified product.
However, a new product classification request is not required when a
change involves: the subsequent bundling, patches, upgrades or releases
of a product; name changes; or changes to a previously reviewed
encryption product where the change is limited to updates of encryption
software components where the product is otherwise unchanged.
(2) Action by BIS.
(i) [Reserved]
(ii) For items requiring classification by BIS under paragraphs
(b)(2) and (3) of this section. (A) For classifications that require a
thirty (30-day) waiting period, if BIS has not, within thirty days (30
days) from registration in SNAP-R of your complete classification
request, informed you that your item is not authorized for License
Exception ENC, you may export, reexport, or transfer (in-country) under
the applicable provisions of License Exception ENC.
(B) Upon completion of its classification, BIS will issue a
Commodity Classification Automated Tracking System (CCATS) to you.
(C) Hold Without Action (HWA) for classification requests. BIS may
hold your classification request without action if necessary to obtain
additional information or for any other reason necessary to ensure an
accurate classification. Time on such ``hold without action'' status
shall not be counted towards fulfilling the thirty-day (30-day)
processing period specified in this paragraph.
(iii) BIS may require you to supply additional relevant technical
information about your encryption item(s) or information that pertains
to their eligibility for License Exception ENC at any time, before or
after the expiration of the thirty-day (30-day) processing period
specified in this paragraph and in paragraphs (b)(2) and (3) of this
section. If you do not supply such information within 14 days after
receiving a request for it from BIS, BIS may return your classification
request(s) without action or otherwise suspend or revoke your
eligibility to use License Exception ENC for that item(s). At your
request, BIS may grant you up to an additional 14 days to provide the
requested information. Any request for such an additional number of
days must be made prior to the date by which the information was
otherwise due to be provided to BIS, and may be approved if BIS
concludes that additional time is necessary.
(e) Reporting requirements--(1) Semiannual reporting requirement.
Semiannual reporting is required for exports to all destinations other
than Canada, and for reexports from Canada for items described under
paragraphs (b)(2) and (b)(3)(iii) of this section. Certain encryption
items and transactions are excluded from this reporting requirement,
see paragraph (e)(1)(iii) of this section. For information about what
must be included in the report and submission requirements, see
paragraphs (e)(1)(i) and (ii) of this section respectively.
(i) Information required. Exporters must include for each item, the
Commodity Classification Automated Tracking System (CCATS) number and
the name of the item(s) exported (or reexported from Canada), and the
following information in their reports:
(A) Distributors or resellers. For items exported (or reexported
from Canada) to a distributor or other reseller, including subsidiaries
of U.S. firms, the name and address of the distributor or reseller, the
item and the quantity exported or reexported and, if collected by the
exporter as part of the distribution process, the end user's name and
address;
(B) Direct sales. For items exported (or reexported from Canada)
through direct sale, the name and address of the recipient, the item,
and the quantity exported; or
(C) Foreign manufacturers and products that use encryption items.
For exports (i.e., from the United States) or direct transfers (e.g.,
by a ``U.S. subsidiary'' located outside the United States) of
encryption components, source code, general purpose toolkits, equipment
controlled under ECCN 5B002, technology, or items that provide an
``open cryptographic interface,'' to a foreign developer or
manufacturer headquartered in a country not listed in Supplement No. 3
to this part when intended for use in foreign products developed for
commercial sale, the names and addresses of the manufacturers using
these encryption items and, if known, when the product is made
available for commercial sale, a non-proprietary technical description
of the foreign products for which these encryption items are being used
(e.g., brochures, other documentation, descriptions or other
identifiers of the final foreign product; the algorithm and key lengths
used; general programming interfaces to the product, if known; any
standards or protocols that the foreign product adheres to; and source
code, if available).
[[Page 64673]]
(ii) Submission requirements. For exports occurring between January
1 and June 30, a report is due no later than August 1 of that year. For
exports occurring between July 1 and December 31, a report is due no
later than February 1 the following year. These reports must be
provided in electronic form. Recommended file formats for electronic
submission include spreadsheets, tabular text or structured text.
Exporters may request other reporting arrangements with BIS to better
reflect their business models. Reports may be sent electronically to
BIS at crypt@bis.doc.gov and to the ENC Encryption Request Coordinator
at enc@nsa.gov, or disks and CDs containing the reports may be sent to
the following addresses:
(A) Department of Commerce, Bureau of Industry and Security, Office
of National Security and Technology Transfer Controls, 14th Street and
Pennsylvania Ave. NW., Room 2705, Washington, DC 20230, Attn:
Encryption Reports, and
(B) Attn: ENC Encryption Request Coordinator, 9800 Savage Road,
Suite 6940, Ft. Meade, MD 20755-6000.
(iii) Exclusions from reporting requirement. Reporting is not
required for the following items and transactions:
(A) [Reserved]
(B) Encryption commodities or software with a symmetric key length
not exceeding 64 bits;
(C) Encryption items exported (or reexported from Canada) via free
and anonymous download;
(D) Encryption items from or to a U.S. bank, financial institution
or its subsidiaries, affiliates, customers or contractors for banking
or financial operations;
(E) [Reserved]
(F) Foreign products developed by bundling or compiling of source
code.
(2) Key length increases. Reporting is required for commodities and
software that, after having been classified and authorized for License
Exception ENC in accordance with paragraphs (b)(2) or (3) of this
section, are modified only to upgrade the key length used for
confidentiality or key exchange algorithms. Such items may be exported,
reexported or transferred (in-country) under the previously authorized
provision of License Exception ENC without a classification
resubmission.
(i) Information required. (A) A certification that no change to the
encryption functionality has been made other than to upgrade the key
length for confidentiality or key exchange algorithms.
(B) The original Commodity Classification Automated Tracking System
(CCATS) authorization number issued by BIS and the date of issuance.
(C) The new key length.
(ii) Submission requirements. (A) The report must be received by
BIS and the ENC Encryption Request Coordinator before the export,
reexport or transfer (in-country) of the upgraded product; and
(B) The report must be emailed to crypt@bis.doc.gov and
enc@nsa.gov.
(3) Self-classification reporting for certain encryption
commodities, software and components. This paragraph (e)(3) sets forth
requirements for self-classification reporting to BIS and the ENC
Encryption Request Coordinator (Ft. Meade, MD) of encryption
commodities, software and components exported or reexported. This
reporting requirement applies to commodities and software that meet the
criteria of Note 3 to Category 5--Part 2 of the Commerce Control List
(``mass market'' note) and are classified under ECCN 5A992.c or 5D992.c
following self-classification, as well as to commodities and software
that remain classified in ECCNs 5A002, 5B002 or 5D002 following self-
classification.
(i) When to report. Your self-classification report for applicable
encryption commodities, software and components exported or reexported
during a calendar year (January 1 through December 31) must be received
by BIS and the ENC Encryption Request Coordinator no later than
February 1 the following year.
(ii) How to report. Encryption self-classification reports must be
sent to BIS and the ENC Encryption Request Coordinator via email or
regular mail. In your submission, specify the timeframe that your
report spans and identify points of contact to whom questions or other
inquiries pertaining to the report should be directed. Follow these
instructions for your submissions:
(A) Submissions via email. Submit your encryption self-
classification report electronically to BIS at crypt-supp8@bis.doc.gov
and to the ENC Encryption Request Coordinator at enc@nsa.gov, as an
attachment to an email. Identify your email with subject ``self-
classification report.''
(B) Submissions on disks and CDs. The self-classification report
may be sent to the following addresses, in lieu of email:
(1) Department of Commerce, Bureau of Industry and Security, Office
of National Security and Technology Transfer Controls, 14th Street and
Pennsylvania Ave. NW., Room 2099B, Washington, DC 20230, Attn:
Encryption Reports, and
(2) Attn: ENC Encryption Request Coordinator, 9800 Savage Road,
Suite 6940, Ft. Meade, MD 20755-6000.
(iii) Information to report. Your encryption self-classification
report must include the information described in paragraph (a) of
Supplement No. 8 to part 742 for each applicable encryption commodity,
software and component made eligible for export or reexport under Sec.
740.17(b)(1) of the EAR. Each product must be included in a report only
one time. However, if no new products are made eligible for export or
reexport during a calendar year, you must send an email to the
addresses listed in paragraph (e)(3)(ii)(A) of this section stating
that nothing has changed since the previous report.
(iv) File format requirements. The information described in
paragraph (a) of Supplement No. 8 to part 742 must be provided to BIS
and the ENC Encryption Request Coordinator in tabular or spreadsheet
form, as an electronic file in comma separated values format (.csv)
adhering to the specifications set forth in paragraph (b) of Supplement
No. 8 to part 742.
Supplement No. 3 to Part 740 [Amended]
0
16. Supplement No. 3 to part 740 is amended by adding ``Croatia'' in
alphabetical order.
PART 742--[AMENDED]
0
17. The authority citation for part 742 continues to read as follows:
Authority: 50 U.S.C. 4601 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, Public Law 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, 68 FR 26459, 3 CFR, 2004 Comp.,
p. 320; Notice of November 12, 2015, 80 FR 70667 (November 13,
2015); Notice of August 4, 2016, 81 FR 52587 (August 8, 2016).
Sec. 742.10 [Amended]
0
18. Section 742.10 is amended in paragraph (a)(2) by removing the
phrase ``.5A992, 5D992.b and .c'' and adding in its place ``5A992.c,
5D992.c''.
0
19. Section 742.15 is amended by revising paragraphs (a) and (b) and
removing paragraphs (c) and (d).
The revisions read as follows:
Sec. 742.15 Encryption Items.
* * * * *
[[Page 64674]]
(a) Licensing requirements and policy--(1) Licensing requirements.
A license is required to export or reexport encryption items (``EI'')
classified under ECCN 5A002, 5A004, 5D002.a, .c.1 or .d (for equipment
and ``software'' in ECCNs 5A002 or 5A004, 5D002.c.1); or 5E002 for
``technology'' for the ``development,'' ``production,'' or ``use'' of
commodities or ``software'' controlled for EI reasons in ECCNs 5A002,
5A004 or 5D002, and ``technology'' classified under 5E002.b to all
destinations, except Canada. Refer to part 740 of the EAR, for license
exceptions that apply to certain encryption items, and to Sec. 772.1
of the EAR for definitions of encryption items and terms. Most
encryption items may be exported under the provisions of License
Exception ENC set forth in Sec. 740.17 of the EAR. Following
classification or self-classification, items that meet the criteria of
Note 3 to Category 5--Part 2 of the Commerce Control List (the ``mass
market'' note), are classified ECCN 5A992.c or 5D992.c and are no
longer subject to this Section (see Sec. 740.17 of the EAR). Before
submitting a license application, please review License Exception ENC
to determine whether this license exception is available for your item
or transaction. For exports, reexports, or transfers (in-country) of
encryption items that are not eligible for a license exception, you
must submit an application to obtain authorization under a license or
an Encryption Licensing Arrangement.
(2) Licensing policy. Applications will be reviewed on a case-by-
case basis by BIS, in conjunction with other agencies, to determine
whether the export, reexport, or transfer (in-country) is consistent
with U.S. national security and foreign policy interests. Encryption
Licensing Arrangements (ELAs) may be authorized for exports, reexports,
or transfers (in-country) of unlimited quantities of encryption
commodities and software described in Sec. 740.17 (b)(2)(i)(A) that
have been classified by BIS to ``more sensitive government end users,''
in all destinations, except countries listed in Country Groups E:1 or
E:2 of Supplement No. 1 to part 740. ELAs for ``more sensitive
government end users'' may be authorized for encryption commodities and
software described in Sec. 740.17(b)(2)(ii) through (iv) under certain
circumstances. ELAs are valid for four years and may require pre-
shipment notification. Applicants seeking authorization for Encryption
Licensing Arrangements must specify the sales territory on their
license applications.
(b) Publicly available encryption source code--(1) Scope and
eligibility. Subject to the notification requirements of paragraph
(b)(2) of this section, publicly available (see Sec. 734.3(b)(3) of
the EAR) encryption source code classified under ECCN 5D002 is not
subject to the EAR. Such source code is publicly available even if it
is subject to an express agreement for the payment of a licensing fee
or royalty for commercial production or sale of any product developed
using the source code.
(2) Notification requirement. You must notify BIS and the ENC
Encryption Request Coordinator via email of the Internet location
(e.g., URL or Internet address) of the publicly available encryption
source code classified under ECCN 5D002 or provide each of them a copy
of the publicly available encryption source code. If you update or
modify the source code, you must also provide additional copies to each
of them each time the cryptographic functionality of the source code is
updated or modified. In addition, if you posted the source code on the
Internet, you must notify BIS and the ENC Encryption Request
Coordinator each time the Internet location is changed, but you are not
required to notify them of updates or modifications made to the
encryption source code at the previously notified location. In all
instances, submit the notification or copy to crypt@bis.doc.gov and to
enc@nsa.gov.
Supplement No. 5 to Part 742 [Removed and Reserved]
0
20. Part 742 is amended by removing and reserving Supplement No. 5.
0
21. Supplement No. 6 is amended by:
0
a. Revising the heading of the Supplement;
0
b. Revising paragraphs (a) introductory text, (a)(2), (b) introductory
text, (b)(2) and (3), (b)(6) and (7), and (b)(9) through (12);
0
c. Adding paragraph (b)(13) and (14); and
0
d. Revising paragraph (d)(1).
The revisions and additions read as follows:
Supplement No. 6 to Part 742--Technical Questionnaire for Encryption
and Other ``Information Security'' Items
(a) For all items:
* * * * *
(2) Indicate whether there have been any prior classifications
of the product(s), if they are applicable to the current submission.
For products with minor changes in encryption functionality, you
must include a cover sheet with complete reference to the previous
review (Commodity Classification Automated Tracking System (CCATS)
number, Export Control Classification Number (ECCN), authorization
paragraph) along with a clear description of the changes.
* * * * *
(b) For classification requests and other submissions, provide
the following information:
* * * * *
(2) Describe how encryption keys are generated or managed by
your product, including algorithms and modulus sizes supported.
(3) Describe whether the products incorporate or use ``non-
standard cryptography'' defined as incorporating or using
proprietary, unpublished cryptographic functionality, including
encryption algorithms or protocols that have not been adopted or
approved by a duly recognized international standards body. Provide
a textual description and the source code of the algorithm.
* * * * *
(6) State all communication protocols (e.g., X.25, Telnet, TCP,
IEEE 802.11, IEEE 802.16, SIP . . .) and cryptographic protocols and
methods (e.g., SSL, TLS, SSH, IPSEC, IKE, SRTP, ECC, MD5, SHA,
X.509, PKCS standards . . .), including application programming
interfaces (APIs), that are supported and describe how they are
used.
(7) State how the product is written to preclude user
modification of the encryption algorithms, key management and key
space.
* * * * *
(9) Identify the version(s) and type(s) of compilers, runtime
interpreters or code assemblers used, as applicable.
(10) With respect to your company's encryption products, are any
of the products (or its encryption components) manufactured outside
the United States? If yes, provide manufacturing locations (city and
country).
(11) See Sec. 740.17(b)(2) of the EAR. Describe whether the
item meets any of the Sec. 740.17(b)(2) criteria. Provide a
comparison of your item against the criteria listed in each
paragraph of Sec. 740.17(b)(2). Give specific data for each of the
parameters listed, as applicable (e.g., maximum aggregate encrypted
throughput, maximum number of encrypted endpoints, maximum satellite
or terrestrial wireless transmission rates, terrestrial wireless
operating range, customized cryptography, network penetration
capability, cryptanalytic capability and ``non-standard
cryptography'').
(12) See Sec. 740.17(b)(3) of the EAR. Describe whether the
product meets any of the criteria described under each of the
paragraphs in Sec. 740.17(b)(3) (e.g., chip, chipset, electronic
assembly, programmable logic device, cryptographic library,
cryptographic development kit, ``non-standard cryptography,''
digital forensics, and ``cryptographic activation'').
(13) See Sec. 740.17(b)(2)(iii) of the EAR. For products which
incorporate an ``open cryptographic interface'' as defined in part
772 of the EAR, describe the cryptographic interface.
(14) For products with IPsec capabilities:
(i) Please describe your product's implementation of IKE vendor
IDs, including vendor specific and capability IDs; and
[[Page 64675]]
(ii) Please specify which version of IKE you use (IKEv1 or
IKEv2).
* * * * *
(d) * * *
(1) If applicable, reference the executable (object code)
product that was previously classified by BIS;
* * * * *
0
22. Supplement No. 8 to part 742 is amended by:
0
a. Revising the introductory text;
0
b. Revising paragraphs (a) introductory text, (a)(5) introductory text,
and (a)(6);
0
c. Adding paragraphs (a)(7) through (12);
0
d. Revising paragraphs (b)(2) and (3) and (c)(1); and
0
e. Adding paragraph (c)(4).
The revisions and additions read as follows:
Supplement No. 8 to Part 742--Self-Classification Report for Encryption
Items
This supplement provides certain instructions and requirements
for self-classification reporting to BIS and the ENC Encryption
Request Coordinator (Ft. Meade, MD) of encryption commodities,
software and components exported or reexported pursuant to Sec.
740.17(b)(1) of the EAR. See Sec. 740.17(e)(3) of the EAR for
additional instructions and requirements pertaining to this
supplement, including when to report and how to report.
(a) Information to report. The following information is required
in the file format as described in paragraph (b) of this supplement,
for each encryption item subject to the requirements of this
supplement and Sec. Sec. 740.17(b)(1) and 740.17(e)(3) of the EAR:
* * * * *
(5) Encryption authorization type identifier, selected from one
of the following, which denote eligibility under License Exception
ENC Sec. 740.17(b)(1):
* * * * *
(6) Item type descriptor, selected from one of the following:
(i) Access point;
(ii) Cellular;
(iii) Computer or computing platforms;
(iv) Computer forensics;
(v) Cryptographic accelerator;
(vi) Data backup and recovery;
(vii) Database;
(viii) Disk/drive encryption;
(ix) Distributed computing;
(x) Email communications;
(xi) Fax communications;
(xii) File encryption;
(xiii) Firewall;
(xiv) Gateway;
(xv) Intrusion detection;
(xvi) Identity management;
(xvii) Key exchange;
(xviii) Key management;
(xix) Key storage;
(xx) Link encryption;
(xxi) Local area networking (LAN);
(xxii) Metropolitan area networking (MAN);
(xxiii) Mobility and mobile applications n.e.s.;
(xxiv) Modem;
(xxv) Multimedia n.e.s.;
(xxvi) Network convergence or infrastructure n.e.s.;
(xxvii) Network forensics;
(xxviii) Network intelligence;
(xxix) Network or systems management (OAM/OAM&P);
(xxx) Network security monitoring;
(xxxi) Network vulnerability and penetration testing;
(xxxii) Operating system;
(xxxiii) Optical networking;
(xxxiv) Radio communications;
(xxxv) Router;
(xxxvi) Satellite communications;
(xxxvii) Short range wireless n.e.s.;
(xxxviii) Storage Area Networking (SAN);
(xxxix) 3G/4G/5G/LTE/WiMAX;
(xl) Trusted computing;
(xli) Videoconferencing;
(xlii) Virtual private networking (VPN);
(xliii) Voice communications n.e.s.;
(xliv) Voice over Internet Protocol (VoIP);
(xlv) Wide Area Networking (WAN);
(xlvi) Wireless Local Area Networking (WLAN);
(xlvii) Wireless Personal Area Networking (WPAN);
(xlviii) Test equipment n.e.s.; or
(xlix) Other (please specify).
(7) Name of company or individual submitting the report (50
characters or less).
(8) Telephone number (50 characters or less).
(9) Email address (50 characters or less).
(10) Mailing address (50 characters or less).
(11) With respect to your company's encryption products, do they
incorporate encryption components produced or furnished by non-U.S.
sources or vendors? Enter `YES', `NO', or if necessary, `N/A' (250
characters or less).
(12) With respect to your company's encryption products, are any
of them manufactured in non-U.S. locations?'' If yes, list the non-
U.S. manufacturing locations by city and country. If necessary,
enter `NONE' or `N/A' (250 characters or less).
(b) * * *
(2) Each line of your encryption self-classification report
(.csv file) must consist of twelve entries as further described in
this supplement.
(3) The first line of the .csv file must consist of the
following twelve entries (i.e., match the following) without
alteration or variation: PRODUCT NAME, MODEL NUMBER, MANUFACTURER,
ECCN, AUTHORIZATION TYPE, ITEM TYPE, SUBMITTER NAME, TELEPHONE
NUMBER, E-MAIL ADDRESS, MAILING ADDRESS, NON-U.S. COMPONENTS, NON-
U.S. MANUFACTURING LOCATIONS.
Note to paragraph (b)(3): These first twelve entries (i.e.,
first row) of an encryption self-classification report in .csv
format correspond to the twelve column headers of a spreadsheet data
file. The responses provided under column headers 7 through 12
(SUBMITTER NAME through NON-U.S. MANUFACTURING LOCATIONS) relate to
the company as a whole, and thus should be entered the same for each
product (i.e., only one point of contact, one `YES' or `NO' answer
to whether any of the reported products incorporate non-U.S. sourced
encryption components, and one list of non-U.S. manufacturing
locations, is required for the report). However, even though the
information is the same for each product, please duplicate this
information into each row of the spreadsheet, leaving no entry
blank, so each product has the same identifying company information.
* * * * *
(c) Other instructions. (1) The information provided in
accordance with this supplement and Sec. Sec. 740.17(b)(1) and
740.17(e)(3) of the EAR must identify product offerings as they are
typically distinguished in inventory, catalogs, marketing brochures
and other promotional materials.
* * * * *
(4) Only products self-classified by the exporter or reexporter
must be reported. Products submitted for classification by the
Bureau of Industry and Security for which a CCATS is issued do not
need to be reported.
PART 743--[AMENDED]
0
23. The authority citation for part 743 continues to read as follows:
Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR
16129, 3 CFR, 2014 Comp., p. 223; 78 FR 16129; Notice of August 4,
2016, 81 FR 52587 (August 8, 2016).
0
24. Section 743.2 is amended by revising paragraph (b) to read as
follows:
Sec. 743.2 High performance computers: Post shipment verification
reporting.
* * * * *
(b) Requirement. Exporters must file post-shipment reports and keep
records in accordance with recordkeeping requirements in part 762 of
the EAR for high performance computer exports to destinations in
Computer Tier 3, as well as, exports of commodities used to enhance
computers previously exported or reexported to Computer Tier 3
destinations, where the ``Adjusted Peak Performance'' (``APP'') is
greater than that listed in ECCN 4A003.b in the Commerce Control List,
Supplement No. 1 to part 774 of the EAR.
* * * * *
PART 744--[AMENDED]
0
25. The authority citation for part 744 continues to read as follows:
Authority: 50 U.S.C. 4601 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 CFR, 1998 Comp., p.
[[Page 64676]]
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 September 18,
2015, 80 FR 57281 (September 22, 2015); Notice of November 12, 2015,
80 FR 70667 (November 13, 2015); Notice of January 20, 2016, 81 FR
3937 (January 22, 2016); Notice of August 4, 2016, 81 FR 52587
(August 8, 2016).
Supplement No. 4 to Part 744 [Amended]
0
26. Supplement No. 4 to part 744 is amended by removing the reference
``5D002 or 5A002.'' and adding in its place ``5A002, 5A004 or 5D002.''
in the third column ``License Requirement,'' in the entry for Ecuador.
PART 748--[AMENDED]
0
27. The authority citation for part 748 continues to read as follows:
Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 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 4, 2016, 81 FR
52587 (August 8, 2016).
0
28. Section 748.1 is amended by revising paragraphs (a) and (d)
introductory text to read as follows:
Sec. 748.1 General provisions.
(a) Scope. In this part, references to the Export Administration
Regulations or EAR are references to 15 CFR chapter VII, subchapter C.
The provisions of this part involve requests for classifications and
advisory opinions, export license applications, reexport license
applications, and certain license exception notices subject to the EAR.
All terms, conditions, provisions, and instructions, including the
applicant and consignee certifications, contained in electronic or
paper form(s) are incorporated as part of the EAR. For the purposes of
this part, the term ``application'' refers to both electronic
applications and the Form BIS-748P: Multipurpose Application.
* * * * *
(d) Electronic filing required. All export and reexport license
applications (other than Special Iraq Reconstruction License
applications), License Exception AGR notifications, requests to
authorize use of License Exception STA for ``600 series'' end items
(which are currently submitted as export license applications) and
classification requests and their accompanying documents must be filed
via BIS's Simplified Network Application Processing system (SNAP-R),
unless BIS authorizes submission via the paper forms BIS 748-P
(Multipurpose Application Form), BIS-748P-A (Item Appendix) and BIS-
748P-B, (End-User Appendix). Only original paper forms may be used.
Facsimiles or reproductions are not acceptable.
0
29. Section 748.3 is amended by revising the section heading, the last
sentence in paragraph (a), and paragraph (d) to read as follows:
Sec. 748.3 Classification requests and advisory opinions.
(a) * * * The encryption provisions in the EAR require the
submission of a classification request in accordance with Sec.
740.17(d) of the EAR in order for certain items to be eligible for
export and reexport under License Exception ENC (see Sec. 740.17 of
the EAR) or to be released from ``EI'' controls (see Sec. Sec.
740.17(b)(2) and 740.17(b)(3) of the EAR).
(d) Classification requests for encryption items. A classification
request associated with encryption items transferred from the U.S.
Munitions List consistent with Executive Order 13026 of November 15,
1996 (3 CFR, 1996 Comp., p. 228) and pursuant to the Presidential
Memorandum of that date may be required to determine eligibility under
License Exception ENC or for release from ``EI'' controls. Refer to
Supplement No. 6 to part 742 of the EAR for a complete list of
technical information that is required for encryption classification
requests. Refer to Sec. 740.17(e)(3) and Supplement No. 8 to part 742
of the EAR for information that is required to be submitted in a self-
classification report. Refer to Sec. 740.17(b) of the EAR for
instructions regarding mass market encryption commodities and software,
including self-classifications and classification requests. Refer to
Sec. 740.17 of the EAR for the provisions of License Exception ENC,
including encryption self-classifications, classification requests and
sales reporting. All classification requests, notifications and reports
submitted to BIS pursuant to Sec. Sec. 740.17 and 742.15(b) of the EAR
will be reviewed by the ENC Encryption Request Coordinator, Ft. Meade,
MD.
* * * * *
0
30. Section 748.7 is amended by revising paragraphs (a) and (d) to read
as follows:
Sec. 748.7 Registering for electronic submission of license
applications and related documents.
(a) Scope. This section describes the procedures for registering to
submit electronic documents to BIS. The procedures in this section
apply to submission of export and reexport license applications (other
than Special Iraq Reconstruction Licenses), classification requests,
and License Exception AGR notifications.
* * * * *
(d) Role of individual users. An individual user may submit to BIS
export and reexport license applications (other than Special Iraq
Reconstruction Licenses), classification requests, and License
Exception AGR notifications.
* * * * *
Sec. 748.8 [Amended]
0
31. Section 748.8 is amended in paragraph (r) by removing the phrase
``and encryption registrations'' and removing and reserving paragraphs
(s) and (t).
0
32. Section 748.9 is amended by revising paragraph (c)(1)(viii) to read
as follows:
Sec. 748.9 Support documents for evaluation of foreign parties in
license applications.
* * * * *
(c) * * *
(1) * * *
(viii) The license application is submitted for encryption
commodities controlled under ECCN 5A002, 5A004 or 5B002.
* * * * *
0
33. Supplement No. 1 to Part 748 is amended by revising the Block 5
paragraph to read as follows:
Supplement No. 1 to Part 748--Bis-748P, Bis-748P-A: Item Appendix, and
Bis-748P-B: End-User Appendix; Multipurpose Application Instructions
* * * * *
Block 5: Type of Application. Export. If the items are located
within the United States, and you wish to export those items, mark
the Box labeled ``Export'' with an (X). Reexport. If the items are
located outside the United States, mark the Box labeled ``Reexport''
with an (X).
Classification. If you are requesting BIS to classify your item
against the Commerce Control List (CCL), mark the Box labeled
``Classification Request'' with an (X). If you are submitting a
License Exception STA eligibility request pursuant to Sec.
740.20(g), mark the box labeled ``Export'' with an (X) and then
proceed to Block 6 of this supplement for instructions specific to
such requests.
* * * * *
0
34. Supplement No. 2 to part 748 is amended by:
0
a. Revising paragraph (r) introductory text;
0
b. Removing and reserving paragraph (r)(1);
0
c. Revising paragraph (r)(2)(ii)(B)(2);
0
d. Removing paragraph (r)(2)(iii); and
0
e. Removing and reserving paragraphs (s) and (t).
The revisions read as follows:
[[Page 64677]]
Supplement No. 2 to Part 748--Unique Application and Submission
Requirements
* * * * *
(r) Encryption classification requests. Failure to follow the
instructions in this paragraph may delay consideration of your
encryption classification request.
* * * * *
(2) * * *
(ii) * * *
(B) * * *
(2) ``Mass market encryption'' if you are submitting an
encryption classification request for certain mass market encryption
items (Sec. 740.17(b) of the EAR).
* * * * *
Supplement No. 7 to Part 748 [Amended]
0
35. Supplement No. 7 to part 748 is amended by removing the reference
to 3B001.c in the third column ``Eligible items (by ECCN),'' in the
following entries under China (People's Republic of):
0
a. Advanced Micro-Fabrication Equipment, Inc., China (two places);
0
b. Applied Materials (China), Inc., in destinations identified by both
one asterisk (*) and two asterisks (**) (two places)
0
c. Lam Research Service Co., Ltd, in Destinations Identified by both a
single asterisk (*), (in two places) and by two asterisks (**), (two
places)
0
d. Samsung China Semiconductor Co. Ltd;
0
e. Semiconductor Manufacturing International Corporation;
0
f. Shanghai Huahong Grace Semiconductor Manufacturing Corporation;
0
g. SK hynix Semiconductor (China) Ltd; and
0
h. SK hynix Semiconductor (Wuxi) Ltd.
0
36. Supplement No. 7 to part 748 is further amended by removing the
phrase ``ECCN 5A002 that have been classified by BIS as eligible for
License Exception ENC under paragraph (b)(2) or (b)(3) of Section
740.17 of the EAR, or classified by BIS as a mass market item under
paragraph (b)(3) of Section 742.15 of the EAR).'' and adding in its
place ``ECCN 5A002 that have been classified by BIS as eligible for
License Exception ENC under paragraph (b)(2) or (3) of Sec. 740.17 of
the EAR).'' for ``Semiconductor Manufacturing International
Corporation'' under China (People's Republic of).
0
37. Supplement No. 7 to part 748 is further amended by removing
``(limited to production technology for integrated circuits controlled
by ECCNs 5A002 or 5A992 that have been successfully reviewed under the
encryption review process specified in Sections 740.17(b)(2) or
740.17(b)(3) and 742.15 of the EAR)'' and adding in its place
``(controlled by ECCNs 5A002, 5A004, or 5A992 that have been
successfully reviewed under the encryption review process specified in
Sections 740.17(b)(2) or 740.17(b)(3) of the EAR)'' in the third column
``Eligible items (by ECCN)'' for ``Shanghai Huahong Grace Semiconductor
Manufacturing Corporation'' under China (People's Republic of).
PART 770--[AMENDED]
0
38. The authority citation for part 770 continues to read as follows:
Authority: 50 U.S.C. 4601 et seq.; 50 U.S.C. 1701 et seq.; E.O.
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 4,
2016, 81 FR 52587 (August 8, 2016).
0
39. Section 770.2 is amended by revising paragraphs (l) and (m) to read
as follows:
Sec. 770.2 Item interpretations.
* * * * *
(l) Interpretation 12: Computers. (1) Digital computers or computer
systems classified under ECCN 4A003.b or .c, that qualify for ``No
License Required'' (NLR) must be evaluated on the basis of Adjusted
Peak Performance (APP) alone, to the exclusion of all other technical
parameters. Digital computers or computer systems classified under ECCN
4A003.b or .c that qualify for License Exception APP must be evaluated
on the basis of APP, to the exclusion of all other technical
parameters. Assemblies performing analog-to-digital conversions are
evaluated under Category 3--Electronics, ECCN 3A002.h.
(2) Related equipment classified under ECCN 4A003.g may be exported
or reexported under License Exceptions GBS or CIV. When related
equipment is exported or reexported as part of a computer system, NLR
or License Exception APP is available for the computer system and the
related equipment, as appropriate.
* * * * *
(m) Interpretation 13: Encryption commodities and software
controlled for EI reasons. Encryption commodities and software
controlled for EI reasons under ECCNs 5A002, 5A004 and 5D002 may be
pre-loaded on a laptop, handheld device or other computer or equipment
and exported under the tools of trade provision of License Exception
TMP or the personal use exemption under License Exception BAG, subject
to the terms and conditions of such License Exceptions. Neither License
Exception TMP nor License Exception BAG contains a reporting
requirement. Like other ``information security'' ``software,''
components, ``electronic assemblies'' or modules, the control status of
encryption commodities and software is determined in Category 5--Part 2
even if they are bundled, commingled or incorporated in a computer or
other equipment. However, commodities and software specially designed
for medical end use that incorporate an item in Category 5--Part 2 are
not controlled in Category 5--Part 2. See paragraph (a) of Supplement
No. 3 to part 774 (Statements of Understanding) of the EAR.
PART 772--[AMENDED]
0
40. The authority citation 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
4, 2016, 81 FR 52587 (August 8, 2016).
0
41. Section 772.1 is amended by:
0
a. Revising the terms ``Accuracy'' and ``Airship;''
0
b. Revising the terms ``Circular Error Probable,'' ``Cryptography,''
and ``FADEC;''
0
c. Removing the term ``Fixed;''
0
d. Revising the terms ``Frequency switching time'' and ``Full Authority
Digital Engine Control Systems;''
0
e. Revising the term ``Government end users (as applied to encryption
items);''
0
f. In the definition of ``Information security,'' removing ``(Cat 4,
5P1, 5P2, 8, GSN)'' and adding in its place ``(Cat 5P2, GSIN, GSN)'';
0
g. Revising the term ``Laser;''
0
h. Adding in alphabetical order the terms ``Less sensitive government
end users (applied to encryption items),'' ``Lighter-than-air
vehicles,'' and ``More sensitive government end users (applied to
encryption items);''
0
i. Removing the term ``Optical amplification;''
0
j. Revising the term ``Publicly available encryption software;''
0
k. Adding in alphabetical order the term ``Pyrotechnic(s);''
0
l. Revising the term ``Source code;'' and
0
m. Removing the term ``System tracks.''
The revisions and additions read as follows:
Sec. 772.1 Definitions of terms as used in the Export Administration
Regulations (EAR).
* * * * *
Accuracy. (Cat 2, 3, 6, 7 and 8)--``Accuracy'' is usually measured
in terms of inaccuracy. It is defined as the maximum deviation,
positive or
[[Page 64678]]
negative, of an indicated value from an accepted standard or true
value.
* * * * *
Airship. (Cat 2 and 9) A power-driven airborne vehicle that is kept
buoyant by a body of gas (usually helium, formerly hydrogen) which is
lighter than air.
* * * * *
Circular Error Probable. (``CEP'') (Cat 7) In a circular normal
distribution, the radius of the circle containing 50% of the individual
measurements being made, or the radius of the circle within which there
is a 50% probability of being located.
* * * * *
Cryptography. (Cat 5P2)--The discipline that embodies principles,
means and methods for the transformation of data in order to hide its
information content, prevent its undetected modification or prevent its
unauthorized use. ``Cryptography'' is limited to the transformation of
information using one or more `secret parameters' (e.g., crypto
variables) and/or associated key management.
Note: ``Cryptography'' does not include `fixed' data compression
or coding techniques.
Technical Notes:
1. `Secret parameter': a constant or key kept from the knowledge
of others or shared only within a group.
2. `Fixed': the coding or compression algorithm cannot accept
externally supplied parameters (e.g., cryptographic or key
variables) and cannot be modified by the user.
* * * * *
FADEC systems. See ``full authority digital engine control
systems.''
* * * * *
Frequency switching time. (Cat 3) The time (i.e., delay) taken by a
signal when switched from an initial specified output frequency, to
arrive at or within any of the following:
(1) 100 Hz of a final specified output frequency of
less than 1 GHz; or
(2) 0.1 part per million of a final specified output
frequency equal to or greater than 1 GHz.
* * * * *
Full Authority Digital Engine Control Systems. (``FADEC Systems'')
(Cat 9) A digital electronic control system for a gas turbine engine
that is able to autonomously control the engine throughout its whole
operating range from demanded engine start until demanded engine shut
down, in both normal and fault conditions.
* * * * *
Government end user'' (as applied to encryption items). A
government end user is any foreign central, regional or local
government department, agency, or other entity performing governmental
functions; including governmental research institutions, governmental
corporations or their separate business units (as defined in part 772
of the EAR) which are engaged in the manufacture or distribution of
items or services controlled on the Wassenaar Munitions List, and
international governmental organizations. This term does not include:
Utilities (including telecommunications companies and Internet service
providers); banks and financial institutions; transportation; broadcast
or entertainment; educational organizations (except public schools and
universities); civil health and medical organizations (including public
civilian hospitals); retail or wholesale firms; and manufacturing or
industrial entities not engaged in the manufacture or distribution of
items or services controlled on the Wassenaar Munitions List.
* * * * *
Laser. (Cat 1, 2, 3, 5P1, 6, 7, 8 and 9)--An item that produces
spatially and temporally coherent light through amplification by
stimulated emission of radiation. See also: ``Chemical laser;'' ``Super
High Power Laser;'' and ``Transfer laser.''
Less sensitive government end users (as applied to encryption
items). The following ``government end users'' (as defined in this
Section of the EAR) are considered ``less sensitive'' for the purposes
of License Exception ENC (Sec. 740.17 of the EAR):
(1) Local/state/provincial ``government end users'' (departments,
agencies and entities), including local/state/provincial executive,
legislative, judicial, police, fire, rescue and public safety agencies.
(2) National/federal/royal ``government end users'' (departments,
agencies and entities) providing the following civil government
functions and services:
(i) Census and statistics services;
(ii) Civil public works infrastructure services (construction,
maintenance, repair, regulation and administration) as follows:
Buildings, public transportation, roads and highways, trucking;
(iii) Civil service administration and regulation, including human
resources and personnel/labor management;
(iv) Clean water infrastructure services (treatment, supply and
testing);
(v) Economic (trade/commerce/investment), business and industrial
development, promotion, regulation and administration, excluding the
following end users/end uses:
(A) Agencies, departments, boards and councils for science and
technology;
(B) Research, development and national laboratories (other than as
specified in paragraphs (2)(xi) (measurements and standards services)
and (2)(xii) (meteorology/weather/atmospheric services) of this
definition (below);
(C) National telecommunications and information technology
agencies, boards, councils and development authorities (including
national information center, and Information Communications Technology
(ICT)/telecommunications infrastructure/spectrum planning, policy,
regulation and testing);
(vi) Elections, balloting and polling services;
(vii) Energy regulation and administration, including oil, gas and
mining sectors;
(viii) Environmental/natural resources regulation, administration
and protection, including wildlife, fisheries and national parks;
(ix) Food/agriculture regulation and administration;
(x) Labor/community/social services planning, regulation and
administration, including: housing and urban development, municipality
and rural affairs;
(xi) Measurements and standards services;
(xii) Meteorology (weather, atmospheric) services;
(xiii) National archives/museums;
(xiv) Patents;
(xv) Pilgrimage and religious affairs;
(xvi) Postal services;
(xvii) Public and higher education (excluding government research
institutions and any agency, institution or affiliate engaged in the
manufacture or distribution of items or services controlled on the
Wassenaar Munitions List);
(xviii) Public health and medicine/pharmaceutical regulation and
administration;
(xix) Public libraries;
(xx) Sports/culture (includes film, commercial broadcasting and the
arts) promotion, regulation and administration;
(xxi) Travel/tourism promotion, regulation and administration.
* * * * *
Lighter-than-air vehicles. (Cat 2 and 9) Balloons and ``airships''
that rely on hot air or on lighter-than-air gases such as helium or
hydrogen for their lift.
* * * * *
More sensitive government end users (as applied to encryption
items). The
[[Page 64679]]
following national/federal/royal (departments, agencies and entities)
``government end users'' (as defined in this section of the EAR)
providing the following government functions and services, are
considered ``more sensitive:''
(1) Agencies, departments, boards and councils for science and
technology (including research, development and state/national
laboratories, but not including measurements and standards);
(2) Currency and monetary authorities (including departments and
offices of the national/federal/royal reserve);
(3) Executive agents of state (including offices of president/vice
president/prime minister, royal courts, national security councils,
cabinet/council of ministers/supreme councils/executive councils, crown
princes and other deputies of the rulers, departments and offices of
political/constitutional/mainland affairs);
(4) Legislative bodies responsible for the enactment of laws;
(5) Import/export control, customs and immigration agencies and
entities;
(6) Intelligence agencies and entities;
(7) Judiciary (including supreme courts and other national/federal/
regional/royal high courts and tribunals);
(8) Maritime, port, railway and airport authorities;
(9) Military and armed services (including national guard, coast
guard, security bureaus and paramilitary);
(10) Ministries, departments and garrisons of defense (including
defense technology agencies);
(11) Ministries and departments of finance and taxation (including
national/federal/royal budget and revenue authorities);
(12) Ministries and departments of foreign affairs/foreign
relations/consulates/embassies;
(13) Ministries of interior, internal/home/mainland affairs, and
homeland security;
(14) State/national telecommunications and information technology
agencies, boards, councils and development authorities (including
national information/critical infrastructure data centers, and
Information and Communications Technology (ICT)/telecommunications
infrastructure/spectrum planning, policy, regulation and testing);
(15) Police, investigation and other law enforcement agencies and
entities (including digital crime/cybercrime/computer forensics,
counter narcotics/counter terrorism/counter proliferation agencies);
(16) Prisons;
(17) Public safety agencies and entities (including national/
federal/royal agencies and departments of civil defense, emergency
management, and first responders).
* * * * *
Publicly available encryption software. See Sec. 742.15(b) of the
EAR.
* * * * *
Pyrotechnic(s). (Cat 1) Mixtures of solid or liquid fuels and
oxidizers which, when ignited, undergo an energetic chemical reaction
at a controlled rate intended to produce specific time delays, or
quantities of heat, noise, smoke, visible light or infrared radiation.
Pyrophorics are a subclass of pyrotechnics, which contain no oxidizers
but ignite spontaneously on contact with air.
* * * * *
Source code (or source language). (Cat 1, 4, 5P2, 6, 7, and 9)--A
convenient expression of one or more processes that may be turned by a
programming system into equipment executable form (``object code'' (or
object language)).
* * * * *
PART 774--[AMENDED]
0
42. The authority citation for part 774 continues to read as follows:
Authority: 50 U.S.C. 4601 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; 43
U.S.C. 1354; 15 U.S.C. 1824a; 50 U.S.C. 4305; 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 4, 2016, 81 FR 52587 (August 8, 2016).
0
43. Section 774.1 is amended by adding paragraph (e) to read as
follows:
Sec. 774.1 Introduction.
* * * * *
(e) Chemicals identified by Chemical Abstracts Service (CAS)
number. In some instances chemicals are listed by name and CAS number.
The list applies to chemicals of the same structural formula (including
hydrates) regardless of name or CAS number. CAS numbers are shown to
assist in identifying a particular chemical or mixture, irrespective of
nomenclature. CAS numbers cannot be used as unique identifiers because
some forms of the listed chemical have different CAS numbers, and
mixtures containing a listed chemical may also have different CAS
numbers.
Supplement No. 1 to Part 774 [Amended]
0
44. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 0, ECCN 0A617 is amended by adding double quotes around the
term ``laser'' in paragraph (8) of the Related Controls paragraph in
the List of Items Controlled section.
0
45. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 1, ECCN 1A001 is amended by removing and reserving paragraph b
and removing paragraph c from the Items paragraph of the List of Items
Controlled section.
0
46. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 1, ECCN 1A002 is amended by adding double quotes around the
term ``composite'' in the introductory text of Note 1 following Items
paragraph b.2 of the List of Items Controlled section.
0
47. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 1, ECCN 1A004, Items paragraph of the List of Items controlled
is amended by revising paragraphs a.1, b.1, and c.1 and the Technical
Notes at the end of the Items paragraph to read as follows:
Supplement No. 1 to Part 774--The Commerce Control List
* * * * *
1A004 Protective and detection equipment and ``components,'' not
``specially designed'' for military use, as follows (see List of
Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
a. * * *
a.1. `Biological agents';
* * * * *
b. * * *
b.1. `Biological agents';
* * * * *
c. * * *
c.1. `Biological agents';
* * * * *
Technical Notes:
1. 1A004 includes equipment, ``components'' that have been
`identified,' successfully tested to national standards or otherwise
proven effective, for the detection of or defense against
radioactive materials ``adapted for use in war,'' `biological
agents,' chemical warfare agents, `simulants' or ``riot control
agents,'' even if such equipment or ``components'' are used in civil
industries such as mining, quarrying, agriculture, pharmaceuticals,
medical, veterinary, environmental, waste management, or the food
industry.
2. `Simulant': A substance or material that is used in place of
toxic agent (chemical or biological) in training, research, testing
or evaluation.
3. For the purposes of 1A004, `biological agents' are pathogens
or toxins, selected or modified (such as altering purity, shelf
life, virulence, dissemination characteristics, or resistance to UV
radiation) to produce casualties in humans or animals, degrade
equipment or damage crops or the environment.
[[Page 64680]]
0
48. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 1, ECCN 1A613, Items paragraph of the List of Items controlled
is amended by revising paragraph c and adding a Nota Bene after
paragraph y.1 to read as follows:
1A613 Armored and protective ``equipment'' and related commodities,
as follows (see List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
* * * * *
c. Military helmets (other than helmets controlled under
1A613.y.1) providing less than NIJ Type IV protection and
``specially designed'' helmet shells, liners, or comfort pads
therefor.
Note 1: See ECCN 0A979 for controls on police helmets.
Note 2: See USML Category X(a)(5) and (a)(6) for controls on
other military helmets.
* * * * *
y. * * *
y.1 * * *
N.B. to paragraph y.1: For other military helmet ``components''
or ``accessories,'' see the relevant ECCN in the CCL or USML Entry.
* * * * *
0
49. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 1, ECCN 1C001, the List of Items Controlled section, the Items
paragraph is amended by adding double quotes around the term ``laser''
in paragraphs (a) and (b) of the Note to 1C001.b.
0
50. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 1, ECCN 1C002, the List of Items Controlled section is amended
by revising the Note at the beginning of the Items paragraph to read as
follows:
1C002 Metal alloys, metal alloy powder and alloyed materials, as
follows (see List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
Note: 1C002 does not control metal alloys, metal alloy powder
and alloyed materials, specially formulated for coating purposes.
* * * * *
0
51. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 1, ECCN 1C006, the List of Items Controlled section, the Items
paragraph is amended by removing and reserving paragraph .a (including
the subparagraphs through a.2.e and the Technical Note for 1C006.a.2).
0
52. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 1, ECCN 1C008, the List of Items Controlled section is amended
by revising the Technical Notes at the end of the Items paragraph to
read as follows:
1C008 Non-fluorinated polymeric substances as follows (see List of
Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
* * * * *
Technical Notes:
1. The `glass transition temperature (Tg)' for 1C008.a.2
thermoplastic materials, 1C008.a.4 materials and 1C008.f materials
is determined using the method described in ISO 11357-2 (1999) or
national equivalents.
2. The `glass transition temperature (Tg)' for 1C008.a.2
thermosetting materials and 1C008.a.3 materials is determined using
the 3-point bend method described in ASTM D 7028-07 or equivalent
national standard. The test is to be performed using a dry test
specimen which has attained a minimum of 90% degree of cure as
specified by ASTM E 2160-04 or equivalent national standard, and was
cured using the combination of standard- and post-cure processes
that yield the highest Tg.
0
53. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 1, ECCN 1C009, List of Items Controlled section, the Items
paragraph is amended by removing and reserving paragraph a.
0
54. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 1, ECCN 1C608 is amended by:
0
a. Revising the Related Definitions paragraph in the List of Items
Controlled section; and
0
b. Revising the Items paragraph of the List of Items Controlled
section.
The revisions read as follows:
1C608 Energetic materials and related commodities (see List of Items
Controlled).
* * * * *
List of Items Controlled
* * * * *
Related Definitions: (1) For purposes of this entry, the term
`controlled materials' means controlled energetic materials
enumerated in ECCNs 1C011, 1C111, 1C239, 1C608, or USML Category V.
(2) For the purposes of this entry, the term `propellants' means
substances or mixtures that react chemically to produce large
volumes of hot gases at controlled rates to perform mechanical work.
Items:
a. `Single base,' `double base,' and `triple base' `propellants'
having nitrocellulose with nitrogen content greater than 12.6% in
the form of either:
a.1. `Sheetstock' or `carpet rolls;' or
a.2. Grains with diameter greater than 0.10 inches.
Note: This entry does not control `propellant' grains used in
shotgun shells, small arms cartridges, or rifle cartridges.
Technical Notes:
1. `Sheetstock' is `propellant' that has been manufactured in
the form of a sheet suitable for further processing.
2. A `carpet roll' is `propellant' that has been manufactured as
a sheet, often cut to a desired width, and subsequently rolled up
(like a carpet).
3. `Single base' is `propellant' which consists mostly of
nitrocellulose.
4.'Double base' `propellant' consist mostly of nitrocellulose
and nitroglycerine.
5. `Triple base' consists mostly of nitrocellulose,
nitroglycerine, and nitroguanidine. Such `propellants' contain other
materials, such as resins or stabilizers, that could include carbon,
salts, burn rate modifiers, nitrodiphenylamine, wax, polyethylene
glycol (PEG), polyglycol adipate (PGA).
b. Shock tubes containing greater than 0.064 kg per meter (300
grains per foot), but not more than 0.1 kg per meter (470 grains per
foot) of `controlled materials.'
c. Cartridge power devices containing greater than 0.70 kg, but
not more than 1.0 kg of `controlled materials.'
d. Detonators (electric or nonelectric) and ``specially
designed'' assemblies therefor containing greater than 0.01 kg, but
not more than 0.1 kg of `controlled materials.'
e. Igniters not controlled by USML Categories III or IV that
contain greater than 0.01 kg, but not more than 0.1 kg of
`controlled materials.'
f. Oil well cartridges containing greater than 0.015 kg, but not
more than 0.1 kg of `controlled materials.'
g. Commercial cast or pressed boosters containing greater than
1.0 kg, but not more than 5.0 kg of `controlled materials.'
h. Commercial prefabricated slurries and emulsions containing
greater than 10 kg and less than or equal to thirty-five percent by
weight of USML `controlled materials.'
i. [Reserved]
j. ``Pyrotechnic'' devices ``specially designed'' for commercial
purposes (e.g., theatrical stages, motion picture special effects,
and fireworks displays), and containing greater than 3.0 kg, but not
more than 5.0 kg of `controlled materials.'
k. Other commercial explosive devices or charges ``specially
designed'' for commercial applications, not controlled by 1C608.c
through .g above, containing greater than 1.0 kg, but not more than
5.0 kg of `controlled materials.'
l. Propyleneimine (2 methylaziridine) (C.A.S. #75-55-8).
m. Any oxidizer or `mixture' thereof that is a compound composed
of fluorine and any of the following: Other halogens, oxygen, or
nitrogen.
Note 1 to 1C608.m: Nitrogen trifluoride (NF3)(CAS 7783-54-2) in
a gaseous state is controlled under ECCN 1C992 and not under ECCN
1C608.m.
Note 2 to 1C608.m: Chlorine trifluoride (ClF3)(CAS 7790-91-2) is
controlled under ECCN 1C111.a.3.f and not under ECCN 1C608.m.
[[Page 64681]]
Note 3 to 1C608.m: Oxygen difluoride (OF2) is controlled under
USML Category V.d.10 (see 22 CFR 121.1) and not under ECCN 1C608.m.
Note to 1C608.l and m: If a chemical in ECCN 1C608.l or .m is
incorporated into a commercial charge or device described in ECCN
1C608.c through .k or in ECCN 1C992, the classification of the
commercial charge or device applies to the item.
Technical Note to 1C608.m: `Mixture' refers to a composition of
two or more substances with at least one substance being enumerated
in 1C011, 1C111, 1C239, 1C608, USML Category V, or elsewhere on the
USML.
n. Any explosives, `propellants,' oxidizers, ``pyrotechnics,''
fuels, binders, or additives that are ``specially designed'' for
military application and not enumerated or otherwise described in
USML Category V or elsewhere on the USML.
0
55. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 1, ECCN 1E001 is amended by revising the Heading and the first
NS paragraph in the table of the License Requirements section to read
as follows:
1E001 ``Technology'' according to the General Technology Note for
the ``development'' or ``production'' of items controlled by 1A002,
1A003, 1A004, 1A005, 1A006.b, 1A007, 1A008 1A101, 1B (except 1B608,
1B613 or 1B999), or 1C (except 1C355, 1C608, 1C980 to 1C984, 1C988,
1C990, 1C991, 1C995 to 1C999).
License Requirements
* * * * *
Country chart (see Supp. No.
Control(s) 1 to part 738)
NS applies to ``technology'' for items NS Column 1
controlled by 1A002, 1A003, 1A005,
1A006.b, 1A007, 1B001 to 1B003, 1B018,
1C001 to 1C011, or 1C018.
* * * * *
* * * * *
0
56. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 1, ECCN 1E002 is amended by removing the phrase ``contained in
aircraft manufacturers' manuals'' and adding in its place ``contained
in ``aircraft'' manufacturers' manuals'' in the Note to 1E002.f.
0
57. In Supplement No. 1 to Part 774 (the Commerce Control List), the
Annex to Category 1 is amended by revising paragraph 48 and adding
paragraph 49 to read as follows:
ANNEX to Category 1
List of Explosives (See ECCNs 1A004 and 1A008)
* * * * *
48. Energetic ionic materials melting between 343 K (70[deg]C)
and 373 K (100[deg]C) and with detonation velocity exceeding 6,800
m/s or detonation pressure exceeding 18 GPa (180 kbar);
49. BTNEN (Bis(2,2,2-trinitroethyl)-nitramine) (CAS 19836-28-3).
0
58. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 2, ECCN 2B001 is amended by revising paragraphs a, b.1 and
b.2.a in the Items paragraph of the List of Items Controlled section,
to read as follows:
2B001 Machine tools and any combination thereof, for removing (or
cutting) metals, ceramics or ``composites,'' which, according to the
manufacturer's technical specifications, can be equipped with
electronic devices for ``numerical control;'' as follows (see List
of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
* * * * *
a. Machine tools for turning having two or more axes which can
be coordinated simultaneously for ``contouring control'' having any
of the following:
a.1. ``Unidirectional positioning repeatability'' equal to or
less (better) than 0.9 [micro]m along one or more linear axis with a
travel length less than 1.0 m; or
a.2. ``Unidirectional positioning repeatability'' equal to or
less (better) than 1.1 [micro]m along one or more linear axis with a
travel length equal to or greater than 1.0 m;
Note 1: 2B001.a does not control turning machines ``specially
designed'' for producing contact lenses, having all of the
following:
a. Machine controller limited to using ophthalmic based
``software'' for part programming data input; and
b. No vacuum chucking.
Note 2: 2B001.a does not apply to bar machines (Swissturn),
limited to machining only bar feed thru, if maximum bar diameter is
equal to or less than 42 mm and there is no capability of mounting
chucks. Machines may have drilling and/or milling capabilities for
machining parts with diameters less than 42 mm.
b. * * *
b.1. Three linear axes plus one rotary axis which can be
coordinated simultaneously for ``contouring control'' having any of
the following:
b.1.a. ``Unidirectional positioning repeatability'' equal to or
less (better) than 0.9 [micro]m along one or more linear axis with a
travel length less than 1.0 m; or
b.1.b. ``Unidirectional positioning repeatability'' equal to or
less (better) than 1.1 [micro]m along one or more linear axis with a
travel length equal to or greater than 1.0 m;
b.2. * * *
b.2.a. ``Unidirectional positioning repeatability'' equal to or
less (better) than 0.9 [micro]m along one or more linear axis with a
travel length less than 1.0 m;
* * * * *
0
59. In Supplement No. 1 to Part 774 (the Commerce Control List),
Category 2, ECCN 2B006 is amended by:
0
a. Revising the NP Column 1 paragraph in the License Requirements
table;
0
b. Revising the Note following the introductory Items paragraph b.1;
0
c. Revising Items paragraph b.1.c in the List of Items Controlled
section; and
0
d. Adding double quotes around the term ``laser'' in the Note to Items
paragraph b.2 in the List of Items Controlled section.
The revisions read as follows:
2B006 Dimensional inspection or measuring systems, equipment, and
``electronic assemblies,'' as follows (see List of Items
Controlled).
License Requirements
* * * * *
Country chart (see Supp. No.
Control(s) 1 to part 738)
* * * * *
NP applies to those items in 2B006.a and NP Column 1
.b that meet or exceed the technical
parameters in 2B206.
* * * * *
* * * * *
List of Items Controlled
* * * * *
Items:
* * * * *
b. * * *
b.1. * * *
Note: Interferometer and optical-encoder displacement measuring
systems containing a ``laser'' are only specified by 2B006.b.1.c.
* * * * *
b.1.c. Measuring systems having all of the following:
b.1.c.1. Containing a ``laser;''
b.1.c.2. A ``resolution'' over their full scale of 0.200 nm or
less (better); and
b.1.c.3. Capable of achieving a ``measurement uncertainty''
equal to or less (better) than (1.6 + L/2,000) nm (L is the measured
length in mm) at any point within a measuring range, when
compensated for the refractive index of air and measured over a
period of 30 seconds at a temperature of 200.01[deg]C;
or
* * * * *
b.2. * * *
Note: 2B006.b.2 does not control optical instruments, such as
autocollimators, using
[[Page 64682]]
collimated light (e.g., ``laser'' light) to detect angular
displacement of a mirror.
* * * * *
0
60. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 3, ECCN 3A001 is amended by:
0
a. Revising the Heading;
0
b. Revising Items paragraph a.5.a.2 through a.5.a.5, not including the
Technical Note, in the List of Items Controlled section;
0
c. Revising Items introductory paragraph b, not including the Technical
Note, and Items paragraph e.1.b, in the List of Items Controlled
section; and
0
d. Adding double quotes to the term ``accuracy'' in Items paragraph f.
The revisions read as follows:
3A001 Electronic items as follows (see List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
a. * * *
a.5. * * *
* * * * *
a.5.a.2. A resolution of 10 bit or more, but less than 12 bit,
with an output rate greater than 500 million words per second;
a.5.a.3. A resolution of 12 bit or more, but less than 14 bit,
with an output rate greater than 200 million words per second;
a.5.a.4. A resolution of 14 bit or more, but less than 16 bit,
with an output rate greater than 250 million words per second; or
a.5.a.5. A resolution of 16 bit or more with an output rate
greater than 65 million words per second;
* * * * *
b. Microwave or millimeter wave items, as follows:
* * * * *
e. * * *
e.1. * * *
e.1.b. `Secondary cells' having an `energy density' exceeding
350 Wh/kg at 293 K (20 [deg]C);
* * * * *
0
61. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 3, ECCN 3A002 is amended by:
0
a. Revising the Heading;
0
b. Revising the License Requirements and List Based License Exceptions
sections;
0
c. Revising the Related Controls paragraph in the List of Items
Controlled section;
0
d. Removing and reserving Items paragraph a.5 of the List of Items
Controlled section;
0
e. Adding a Nota Bene (N.B.) under the reserved Items paragraphs a.1 to
a.5 of the List of Items Controlled section;
0
f. Revising Items paragraph a.6 of the List of Items Controlled
section; and
0
g. Adding Items paragraph h to the List of Items Controlled section.
The additions and revisions read as follows:
3A002 General purpose ``electronic assemblies,'' modules and
equipment, as follows (see List of Items Controlled).
License Requirements
Reason for Control: NS, MT, AT
Country chart (see Supp. No.
Control(s) 1 to part 738)
NS applies to entire entry................ NS Column 2
MT applies to 3A002.h when the parameters MT Column 1
in 3A101.a.2.b are met or exceeded.
AT applies to entire entry................ AT Column 1
Reporting Requirements: See Sec. 743.1 of the EAR for reporting
requirements for exports under License Exceptions, and Validated
End-User authorizations.
List Based License Exceptions (See Part 740 for a description of all
license exceptions)
LVS: $3000: 3A002.a, .e, .f, and .g
$5000: 3A002.c to .d, and .h (unless controlled for MT);
GBS: Yes, for 3A002.h (unless controlled for MT)
CIV: Yes, for 3A002.h (unless controlled for MT)
* * * * *
List of Items Controlled
Related Controls: See Category XV(e)(9) of the USML for certain
``space-qualified'' atomic frequency standards ``subject to the
ITAR'' (see 22 CFR parts 120 through 130). See also 3A101, 3A292,
3A992 and 9A515.x.
* * * * *
Items:
a. * * *
a.1. to a.5. [RESERVED]
N.B.: For waveform digitizers and transient recorders, see
3A002.h.
a.6. Digital data recorders having all of the following:
a.6.a. A sustained `continuous throughput' of more than 6.4
Gbit/s to disk or solid-state drive memory; and
a.6.b. A processor that performs analysis of radio frequency
signal data while it is being recorded;
Technical Notes:
1. For recorders with a parallel bus architecture, the
`continuous throughput' rate is the highest word rate multiplied by
the number of bits in a word.
2. `Continuous throughput' is the fastest data rate the
instrument can record to disk or solid-state drive memory without
the loss of any information while sustaining the input digital data
rate or digitizer conversion rate.
* * * * *
h. ``Electronic assemblies,'' modules or equipment, specified to
perform all of the following:
h.1. Analog-to-digital conversions meeting any of the following:
h.1.a. A resolution of 8 bit or more, but less than 10 bit, with
an input sample rate greater than 1.3 billion samples per second;
h.1.b. A resolution of 10 bit or more, but less than 12 bit,
with an input sample rate greater than 1.0 billion samples per
second;
h.1.c. A resolution of 12 bit or more, but less than 14 bit,
with an input sample rate greater than 1.0 billion samples per
second;
h.1.d. A resolution of 14 bit or more but less than 16 bit, with
an input sample rate greater than 400 million samples per second; or
h.1.e. A resolution of 16 bit or more with an input sample rate
greater than 180 million samples per second; and
h.2. Any of the following:
h.2.a. Output of digitized data;
h.2.b. Storage of digitized data; or
h.2.c. Processing of digitized data;
N.B.: Digital data recorders, oscilloscopes, ``signal
analyzers,'' signal generators, network analyzers and microwave test
receivers, are specified by 3A002.a.6, 3A002.a.7, 3A002.c, 3A002.d,
3A002.e and 3A002.f, respectively.
Technical Note: For multiple-channel ``electronic assemblies''
or modules, control status is determined by the highest single-
channel specified performance.
Note: 3A002.h includes ADC cards, waveform digitizers, data
acquisition cards, signal acquisition boards and transient
recorders.
0
62. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 3, ECCN 3A101 is amended by revising the Related Controls
paragraph in the List of Items Controlled section to read as follows:
3A101 Electronic equipment, devices, ``parts'' and ``components,''
other than those controlled by 3A001, as follows (see List of Items
Controlled).
* * * * *
List of Items Controlled
Related Controls: See also ECCN 3A002.h for controls on analog-to-
digital ``electronic assemblies,'' modules or equipment.
* * * * *
0
63. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 3, ECCN 3A292 is amended by revising the Heading to read as
follows:
3A292 Oscilloscopes and transient recorders other than those
controlled by 3A002.h, and ``specially designed'' ``parts'' and
``components'' therefor.
* * * * *
0
64. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 3, ECCN 3B001 is amended by:
0
a. Revising the CIV paragraph in the List Based License Exceptions
section;
0
b. Removing and reserving Items paragraph c in the List of Items
Controlled section;
0
c. Revising Items paragraph e.1 in the List of Items Controlled
section;
[[Page 64683]]
0
d. Removing the word ``etch,'' in Technical Note 1 after Items
paragraph e.2;
0
e. Adding a Note to Items paragraph f.2;
0
f. Revising Items paragraph f.3 in the List of Items Controlled
section; and
0
g. Adding Items paragraph f.4 in the List of Items Controlled section.
The revisions and additions read as follows:
3B001 Equipment for the manufacturing of semiconductor devices or
materials, as follows (see List of Items Controlled) and ``specially
designed'' ``components'' and ``accessories'' therefor.
* * * * *
List Based License Exceptions (See Part 740 for a description of all
license exceptions)
* * * * *
CIV: Yes for equipment controlled by 3B001.a.1 and a.2.
List of Items Controlled
* * * * *
Items:
* * * * *
e. * * *
e.1. Interfaces for wafer input and output, to which more than
two functionally different `semiconductor process tools' controlled
by 3B001.a.1, 3B001.a.2, 3B001.a.3 or 3B001.b are designed to be
connected; and
* * * * *
f. * * *
f.2. * * *
Note: 3B001.f.2 includes:
--Micro contact printing tools
--Hot embossing tools
--Nano-imprint lithography tools
--Step and flash imprint lithography (S-FIL) tools
f.3. Equipment ``specially designed'' for mask making having all
of the following:
f.3.a. A deflected focused electron beam, ion beam or ``laser''
beam; and
f.3.b. Having any of the following:
f.3.b.1. A Full-Width Half-Maximum (FWHM) spot size smaller than
65 nm and an image placement less than 17 nm (mean + 3 sigma); or
f.3.b.2. [Reserved]
f.3.b.3. A second-layer overlay error of less than 23 nm (mean +
3 sigma) on the mask;
f.4. Equipment designed for device processing using direct
writing methods, having all of the following:
f.4.a. A deflected focused electron beam; and
f.4.b. Having any of the following:
f.4.b.1. A minimum beam size equal to or smaller than 15 nm; or
f.4.b.2. An overlay error less than 27 nm (mean + 3 sigma);
* * * * *
0
65. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 3, ECCN 3D001 is amended by:
0
a. Revising the Heading;
0
b. Revising the NS paragraph in the License Requirements table; and
0
c. Revising the CIV paragraph in the List Based License Exceptions
section, to read as follows:
3D001 ``Software'' ``specially designed'' for the ``development'' or
``production'' of equipment controlled by 3A001.b to 3A002.h or 3B
(except 3B991 and 3B992).
License Requirements
* * * * *
Country chart (see Supp.
Control(s) No. 1 to part 738)
NS applies to ``software'' for equipment NS Column 1
controlled by 3A001.b to 3A001.h, 3A002,
and 3B.
* * * * *
* * * * *
List Based License Exceptions (See Part 740 for a description of all
license exceptions)
CIV: N/A
* * * * *
0
66. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 3, ECCN 3E002 is amended by:
0
a. Revising the CIV paragraph in the List Based License Exception
section;
0
b. Revising the Technical Note after Items paragraph a in the List of
Items Controlled section; and
0
c. Revising Items paragraph c, including Notes that follow, to read as
follows:
3E002 ``Technology'' according to the General Technology Note other
than that controlled in 3E001 for the ``development'' or
``production'' of a ``microprocessor microcircuit,'' ``micro-
computer microcircuit'' and microcontroller microcircuit core,
having an arithmetic logic unit with an access width of 32 bits or
more and any of the following features or characteristics (see List
of Items Controlled).
License Requirements
* * * * *
List Based License Exceptions (See Part 740 for a description of all
license exceptions)
CIV: Yes, for deemed exports, as described in Sec. 734.13(a)(2) of
the EAR, of ``technology'' for the ``development'' or ``production''
of general purpose microprocessor cores with a vector processor unit
with operand length of 64-bit or less, 64-bit floating operations
not exceeding 50 GFLOPS, or 16-bit or more floating-point operations
not exceeding 50 GMACS (billions of 16-bit fixed-point multiply-
accumulate operations per second). License Exception CIV does not
apply to ECCN 3E002 technology also required for the development or
production of items controlled under ECCNs beginning with 3A, 3B, or
3C, or to ECCN 3E002 technology also controlled under ECCN 3E003.
* * * * *
List of Items Controlled
* * * * *
Items:
a. * * *
Technical Note: A `vector processor unit' is a processor element
with built-in instructions that perform multiple calculations on
floating-point vectors (one-dimensional arrays of 32-bit or larger
numbers) simultaneously, having at least one vector arithmetic logic
unit and vector registers of at least 32 elements each.
* * * * *
c. Designed to perform more than eight 16-bit fixed-point
multiply-accumulate results per cycle (e.g., digital manipulation of
analog information that has been previously converted into digital
form, also known as digital ``signal processing'').
Note 1: 3E002 does not control ``technology'' for multimedia
extensions.
Note 2: 3E002 does not control ``technology'' for the
``development'' or ``production'' of microprocessor cores, having
all of the following:
a. Using ``technology'' at or above 0.130 [micro]m; and
b. Incorporating multi-layer structures with five or fewer metal
layers.
Note 3: 3E002 includes ``technology'' for digital signal
processors and digital array processors.
0
67. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 4 is amended by removing Note 3 at the beginning of Category
4.
0
68. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 4, ECCN 4A001 is amended by revising the Related Controls
paragraph in the List of Items Controlled section to read as follows:
4A001 Electronic computers and related equipment, having any of the
following (see List of Items Controlled), and ``electronic
assemblies'' and ``specially designed'' ``components'' therefor.
* * * * *
List of Items Controlled
Related Controls: See also 4A101 and 4A994. Equipment designed or
rated for transient ionizing radiation is ``subject to the ITAR''
(see 22 CFR parts 120 through 130).
* * * * *
0
69. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 4, ECCN 4A003 is amended by:
0
a. Removing MT from the Reason for Control paragraph in the License
Requirements section;
0
b. Removing the MT paragraph from the License Requirements table;
0
c. Revising the AT paragraph in the License Requirements table;
[[Page 64684]]
0
d. Revising the Note in the License Requirements section;
0
e. Revising the List Based License Exceptions sections;
0
f. Removing the last listed item in Note 1 located at the beginning of
the Items paragraph in the List of Items Controlled section;
0
g. Revising Items paragraph b in the List of Items Controlled section;
0
h. Revising Note 1 to 4A003.c;
0
i. Removing Items paragraph e and revising the citation of the reserved
paragraphs to read ``.d to f. [Reserved]'';
0
j. Adding a Nota Bene below the reserved paragraphs d to f.
The revisions and additions read as follows:
4A003 ``Digital computers,'' ``electronic assemblies,'' and related
equipment therefor, as follows (see List of Items Controlled) and
``specially designed'' ``components'' therefor.
License Requirements
* * * * *
Country chart (see Supp. No.
Control(s) 1 to part 738)
* * * * * ............................
AT applies to entire entry (refer to 4A994 AT Column 1
for controls on ``digital computers''
with a APP > 0.0128 but <= 12.5 WT).
Note: For all destinations, except those countries in Country
Group E:1 or E:2 of Supplement No. 1 to part 740 of the EAR, no
license is required (NLR) for computers with an ``Adjusted Peak
Performance'' (``APP'') not exceeding 12.5 Weighted TeraFLOPS (WT)
and for ``electronic assemblies'' described in 4A003.c that are not
capable of exceeding an ``Adjusted Peak Performance'' (``APP'')
exceeding 12.5 Weighted TeraFLOPS (WT) in aggregation, except
certain transfers as set forth in Sec. 746.3 (Iraq).
* * * * *
List Based License Exceptions (See Part 740 for a description of all
license exceptions)
LVS: $5000; N/A for 4A003.b and .c.
GBS: Yes, for 4A003.g and ``specially designed'' ``parts'' and
``components'' therefor, exported separately or as part of a system.
APP: Yes, for computers controlled by 4A003.b, and ``electronic
assemblies'' controlled by 4A003.c, to the exclusion of other
technical parameters. See Sec. 740.7 of the EAR.
CIV: Yes, for 4A003.g.
List of Items Controlled
* * * * *
Items:
Note 1: 4A003 includes the following:
--`Vector processors' (as defined in Note 7 of the ``Technical Note
on ``Adjusted Peak Performance'' (``APP'')'');
--Array processors;
--Digital signal processors;
--Logic processors;
--Equipment designed for ``image enhancement.''
* * * * *
b. ``Digital computers'' having an ``Adjusted Peak Performance''
(``APP'') exceeding 12.5 weighted TeraFLOPS (WT);
c. * * *
Note 1: 4A003.c applies only to ``electronic assemblies'' and
programmable interconnections not exceeding the limit in 4A003.b
when shipped as unintegrated ``electronic assemblies.''
* * * * *
d. to f. [Reserved]
N.B.: For ``electronic assemblies,'' modules or equipment,
performing analog-to-digital conversions, see 3A002.h.
* * * * *
0
70. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 4, ECCN 4D001 is amended by:
0
a. Removing NP from the Reason for Control paragraph in the License
Requirements section;
0
b. Removing the sentence directly below the License Requirements table;
0
c. Revising the TSR paragraph in the List Based License Exceptions
section;
0
d. Revising the STA paragraph in the Special Conditions for STA
section;
0
e. Revising Items paragraph b.1 in the List of Items Controlled
section.
The revisions are set forth below:
4D001 ``Software'' as follows (see List of Items Controlled).
License Requirements
Reason for Control: NS, CC, AT
Country chart (see Supp.
Control(s) No. 1 to part 738)
NS applies to entire entry................ NS Column 1
CC applies to ``software'' for CC Column 1
computerized finger-print equipment
controlled by 4A003 for CC reasons.
AT applies to entire entry................ AT Column 1
Reporting Requirements: See Sec. 743.1 of the EAR for reporting
requirements for exports under License Exceptions, and Validated
End-User authorizations.
List Based License Exceptions (See Part 740 for a description of all
license exceptions)
* * * * *
TSR: Yes, except for ``software'' for the ``development'' or
``production'' of commodities with an ``Adjusted Peak Performance''
(``APP'') exceeding 12.5 WT.
* * * * *
Special Conditions for STA
STA: License Exception STA may not be used to ship or transmit
``software'' ``specially designed'' for the ``development'' or
``production'' of equipment specified by ECCN 4A001.a.2 or for the
``development'' or ``production'' of ``digital computers'' having an
`Adjusted Peak Performance' (`APP') exceeding 12.5Weighted TeraFLOPS
(WT) to any of the destinations listed in Country Group A:6 (See
Supplement No.1 to part 740 of the EAR).
List of Items Controlled
* * * * *
Items:
* * * * *
b. * * *
b.1. ``Digital computers'' having an ``Adjusted Peak
Performance'' (``APP'') exceeding 6.0 Weighted TeraFLOPS (WT);
* * * * *
0
71. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 4, ECCN 4E001, is amended by:
0
a. Removing NP from the Reason for Control paragraph in the License
Requirements section;
0
b. Removing the sentence directly below the License Requirements table;
0
c. Revising the TSR paragraph in the List Based License Exceptions
section;
0
d. Revising the STA paragraph in the Special Conditions for STA
section;
0
e. Revising Items paragraph b.1 in the List of Items Controlled
section.
The revisions read as follows:
4E001 ``Technology'' as follows (see List of Items Controlled).
License Requirements
Reason for Control: NS, MT, CC, AT
Country chart (see Supp.
Control(s) No. 1 to part 738)
NS applies to entire entry................ NS Column 1
MT applies to ``technology'' for items MT Column 1
controlled by 4A001.a and 4A101 for MT
reasons.
CC applies to ``technology'' for CC Column 1
computerized fingerprint equipment
controlled by 4A003 for CC reasons.
AT applies to entire entry................ AT Column 1
Reporting Requirements: See Sec. 743.1 of the EAR for reporting
requirements for exports under License Exceptions, and Validated
End-User authorizations.
List Based License Exceptions (see Part 740 for a description of all
license exceptions)
* * * * *
TSR: Yes, except for ``technology'' for the ``development'' or
``production'' of
[[Page 64685]]
commodities with an ``Adjusted Peak Performance'' (``APP'')
exceeding 12.5 WT.
* * * * *
Special Conditions for STA
STA: License Exception STA may not be used to ship or transmit
``technology'' according to the General Technology Note for the
``development'' or ``production'' of any of the following equipment
or ``software'': a. Equipment specified by ECCN 4A001.a.2; b.
``Digital computers'' having an `Adjusted Peak Performance' (`APP')
exceeding 12.5 Weighted TeraFLOPS (WT); or c. ``software'' specified
in the License Exception STA paragraph found in the License
Exception section of ECCN 4D001 to any of the destinations listed in
Country Group A:6 (See Supplement No. 1 to part 740 of the EAR).
List of Items Controlled
* * * * *
Items:
* * * * *
b. * * *
b.1. ``Digital computers'' having an ``Adjusted Peak
Performance'' (``APP'') exceeding 6.0 Weighted TeraFLOPS (WT);
* * * * *
0
72. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 5--Part 1 is amended by removing Nota Bene 2 (N.B.2) from Note
1 at the beginning of Category 5--Part 1 and changing ``N.B.1'' to read
``N.B''.
Category 5--Telecommunications and ``Information Security''
Part 1--Telecommunications
Notes:
1. * * *
N.B.: For ``lasers'' ``specially designed'' for
telecommunications equipment or systems, see ECCN 6A005.
* * * * *
0
73. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 5--Part 1, ECCN 5A001 is amended by revising paragraph d in
the Items paragraph of the List of Items Controlled section to read as
follows:
5A001 Telecommunications systems, equipment, ``components'' and
``accessories,'' as follows (see List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
* * * * *
d. ``Electronically steerable phased array antennas'' as
follows:
d.1. Rated for operation above 31.8 GHz, but not exceeding 57
GHz, and having an Effective Radiated Power (ERP) equal to or
greater than +20 dBm (22.15 dBm Effective Isotropic Radiated Power
(EIRP));
d.2. Rated for operation above 57 GHz, but not exceeding 66 GHz,
and having an ERP equal to or greater than +24 dBm (26.15 dBm EIRP);
d.3. Rated for operation above 66 GHz, but not exceeding 90 GHz,
and having an ERP equal to or greater than +20 dBm (22.15 dBm EIRP);
d.4. Rated for operation above 90 GHz;
Note: 5A001.d does not control ``electronically steerable
phased array antennas'' for landing systems with instruments meeting
ICAO standards covering Microwave Landing Systems (MLS).
* * * * *
0
74. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 5--Part 1, ECCN 5B001 is amended by removing and reserving
paragraph b.2.b and revising paragraph b.4 in the Items paragraph of
the List of Items Controlled section to read as follows:
5B001 Telecommunication test, inspection and production equipment,
``components'' and ``accessories,'' as follows (see List of Items
Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
* * * * *
b. * * *
b.4. Radio equipment employing Quadrature-Amplitude-Modulation
(QAM) techniques above level 1,024.
0
75. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 5--Part 1, ECCN 5D001 is amended by revising paragraph d.4 in
the Items paragraph of the List of Items Controlled section to read as
follows:
5D001 ``Software'' as follows (see List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
* * * * *
d. * * *
d.4. Radio equipment employing Quadrature-Amplitude-Modulation
(QAM) techniques above level 1,024.
0
76. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 5--Part 1, ECCN 5E001 is amended by:
0
a. Removing and reserving Items paragraph c.2.b of the List of Items
Controlled section;
0
b. Revising the Note to Items paragraph c.2.c;
0
c. Revising Items paragraph c.4.a of the List of Items Controlled
section to read as follows:
5E001 ``Technology'' as follows (see List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
* * * * *
c. * * *
c.2. * * *
c.2.c. * * *
Note: 5E001.c.2.c applies to ``technology'' for the
``development'' or ``production'' of systems using an optical local
oscillator in the receiving side to synchronize with a carrier
``laser.''
* * * * *
c.4. * * *
c.4.a. Quadrature-Amplitude-Modulation (QAM) techniques above
level 1,024; or
* * * * *
0
77. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 5--Part 2 is amended by:
0
a. Removing and reserving Note 1, including the Nota bene, at the
beginning of the Category;
0
b. Revising Note 2;
0
c. Revising the introductory text to Note 3;
0
d. Revising the Technical Note below paragraph b.4 in Note 3;
0
e. Revising paragraph 1.b in the Note to the Cryptography Note;
0
f. Revising the Nota Bene to Note 3 (Cryptography Note);
0
g. Revising the introductory text to Note 4; and
0
h. Adding the heading ``I. CRYPTOGRAPHIC ``INFORMATION SECURITY''
following the heading that reads ``A. ``END ITEMS,'' ``EQUIPMENT,''
``ACCESSORIES,'' ``ATTACHMENTS,'' ``PARTS,'' ``COMPONENTS,'' AND
``SYSTEMS''.
The revisions and additions read as follows:
CATEGORY 5--TELECOMMUNICATIONS AND ``INFORMATION SECURITY''
Part 2--``INFORMATION SECURITY''
* * * * *
Note 2: Category 5--Part 2, ``information security'' products,
when accompanying their user for the user's personal use or as tools
of trade, are eligible for License Exceptions TMP or BAG, subject to
the terms and conditions of these license exceptions.
Note 3: Cryptography Note: ECCNs 5A002, 5A003, 5A004 and 5D002,
do not control items as follows:
* * * * *
b. * * *
4. * * *
Technical Note: For the purpose of the Cryptography Note,
`executable software' means ``software'' in executable form, from an
existing hardware component excluded from 5A002, 5A003 or 5A004 by
the Cryptography Note.
Note: * * *
Note to the Cryptography Note:
1. * * *
b. The price and information about the main functionality of the
item are available before purchase without the need to consult the
vendor or supplier. A simple price inquiry is not considered to be a
consultation.
[[Page 64686]]
2. * * *
N.B. to Note 3 (Cryptography Note): You must submit a
classification request or self-classification report to BIS for mass
market encryption commodities and software eligible for the
Cryptography Note employing a key length greater than 64 bits for
the symmetric algorithm (or, for commodities and software not
implementing any symmetric algorithms, employing a key length
greater than 768 bits for asymmetric algorithms or greater than 128
bits for elliptic curve algorithms) in accordance with the
requirements of Sec. 740.17(b) of the EAR in order to be released
from the ``EI'' and ``NS'' controls of ECCN 5A002 or 5D002.
Note 4: Category 5--Part 2 does not apply to items incorporating
or using ``cryptography'' and meeting all of the following:
* * * * *
A. ``END ITEMS,'' ``EQUIPMENT,'' ``ACCESSORIES,'' ``ATTACHMENTS,''
``PARTS,'' ``COMPONENTS,'' AND ``SYSTEMS''
I. Cryptographic ``Information Security''
0
78. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 5--Part 2, ECCN 5A002 is amended by:
0
a. Revising the Heading;
0
b. Revising the License Requirements section;
0
c. Revising the Related Controls paragraph in the List of Items
Controlled section; and
0
d. Revising Items paragraph in the List of Items Controlled section.
The revisions read as follows:
5A002 ``Information security'' systems, equipment and
``components,'' as follows (see List of Items Controlled).
License Requirements
Reason for Control: NS, AT, EI
Country chart (see Supp.
Control(s) No. 1 to part 738)
NS applies to entire entry................ NS Column 1
AT applies to entire entry................ AT Column 1
EI applies to entire entry................ Refer to Sec. 742.15 of
the EAR
License Requirements Note: See Sec. 744.17 of the EAR for
additional license requirements for microprocessors having a
processing speed of 5 GFLOPS or more and an arithmetic logic unit
with an access width of 32 bit or more, including those
incorporating ``information security'' functionality, and associated
``software'' and ``technology'' for the ``production'' or
``development'' of such microprocessors.
* * * * *
List of Items Controlled
Related Controls: (1) ECCN 5A002.a controls ``components'' providing
the means or functions necessary for ``information security.'' All
such ``components'' are presumptively ``specially designed'' and
controlled by 5A002.a. (2) See USML Categories XI (including XI(b))
and XIII(b) (including XIII(b)(2)) for controls on systems,
equipment, and components described in 5A002.d or .e that are
subject to the ITAR. (3) After classification or self-classification
in accordance with Sec. 740.17(b) of the EAR, mass market
encryption commodities that meet eligibility requirements are
released from ``EI'' and ``NS'' controls. These commodities are
designated 5A992.c.
* * * * *
Items:
a. Systems, equipment and components, for cryptographic
``information security,'' as follows:
N.B.: For the control of Global Navigation Satellite Systems
(GNSS) receiving equipment containing or employing decryption, see
ECCN 7A005, and for related decryption ``software'' and
``technology'' see 7D005 and 7E001.
a.1. Designed or modified to use ``cryptography'' employing
digital techniques performing any cryptographic function other than
authentication, digital signature, or execution of copy-protected
``software,'' and having any of the following:
Technical Notes:
1. Functions for authentication, digital signature and the
execution of copy-protected ``software'' include their associated
key management function.
2. Authentication includes all aspects of access control where
there is no encryption of files or text except as directly related
to the protection of passwords, Personal Identification Numbers
(PINs) or similar data to prevent unauthorized access.
a.1.a. A ``symmetric algorithm'' employing a key length in
excess of 56-bits; or
Technical Note: In Category 5--Part 2, parity bits are not
included in the key length.
a.1.b. An ``asymmetric algorithm'' where the security of the
algorithm is based on any of the following:
a.1.b.1. Factorization of integers in excess of 512 bits (e.g.,
RSA);
a.1.b.2. Computation of discrete logarithms in a multiplicative
group of a finite field of size greater than 512 bits (e.g., Diffie-
Hellman over Z/pZ); or
a.1.b.3. Discrete logarithms in a group other than mentioned in
5A002.a.1.b.2 in excess of 112 bits (e.g., Diffie-Hellman over an
elliptic curve);
a.2. [Reserved]
N.B.: See 5A004.a for items formerly specified in 5A002.a.2.
Note: 5A002.a does not control any of the following:
(a) Smart cards and smart card `readers/writers' as follows:
(1) A smart card or an electronically readable personal document
(e.g., token coin, e-passport) that meets any of the following:
a. The cryptographic capability is restricted for use in
equipment or systems, excluded from 5A002, 5A003 or 5A004 by Note 4
in Category 5--Part 2 or entries (b) to (i) of this Note, and cannot
be reprogrammed for any other use; or
b. Having all of the following:
1. It is specially designed and limited to allow protection of
`personal data' stored within;
2. Has been, or can only be, personalized for public or
commercial transactions or individual identification; and
3. Where the cryptographic capability is not user-accessible;
Technical Note: `Personal data' includes any data specific to a
particular person or entity, such as the amount of money stored and
data necessary for authentication.
(2). `Readers/writers' specially designed or modified, and
limited, for items specified by (a)(1) of this Note;
Technical Note: `Readers/writers' include equipment that
communicates with smart cards or electronically readable documents
through a network.
(b) Cryptographic equipment specially designed and limited for
banking use or `money transactions';
Technical Note: `Money transactions' in 5A002 Note (b) includes
the collection and settlement of fares or credit functions.
(c) Portable or mobile radiotelephones for civil use (e.g., for
use with commercial civil cellular radio communication systems) that
are not capable of transmitting encrypted data directly to another
radiotelephone or equipment (other than Radio Access Network (RAN)
equipment), nor of passing encrypted data through RAN equipment
(e.g., Radio Network Controller (RNC) or Base Station Controller
(BSC));
(d) Cordless telephone equipment not capable of end-to-end
encryption where the maximum effective range of unboosted cordless
operation (i.e., a single, unrelayed hop between terminal and home
base station) is less than 400 meters according to the
manufacturer's specifications;
(e) Portable or mobile radiotelephones and similar client
wireless devices for civil use, that implement only published or
commercial cryptographic standards (except for anti-piracy
functions, which may be non-published) and also meet the provisions
of paragraphs a.2. to a.5. of the Cryptography Note (Note 3 in
Category 5--Part 2), that have been customized for a specific civil
industry application with features that do not affect the
cryptographic functionality of these original non-customized
devices;
(f) Wireless ``personal area network'' equipment that implement
only published or commercial cryptographic standards and where the
cryptographic capability is limited to a nominal operating range not
exceeding 30 meters according to the manufacturer's specifications,
or not exceeding 100 meters according to the manufacturer's
specifications for equipment that cannot interconnect with more than
seven devices;
(g) Equipment meeting all of the following:
1. All cryptographic capability specified by 5A002.a meets any
of the following:
a. It cannot be used; or
b. It can only be made useable by means of ``cryptographic
activation;'' and
2. When necessary as determined by the appropriate authority in
the exporter's country, details of the equipment are accessible and
will be provided to the authority upon request, in order to
ascertain compliance with conditions described above;
[[Page 64687]]
N.B.1: See 5A002.a for equipment that has undergone
``cryptographic activation.''
N.B.2: See also 5A002.b, 5D002.d and 5E002.b.
(h) Mobile telecommunications Radio Access Network (RAN)
equipment designed for civil use, which also meet the provisions 2.
to 5. of part a. of the Cryptography Note (Note 3 in Category 5--
Part 2), having an RF output power limited to 0.1W (20 dBm) or less,
and supporting 16 or fewer concurrent users;
(i) Routers, switches or relays, where the ``information
security'' functionality is limited to the tasks of ``Operations,
Administration or Maintenance'' (``OAM'') implementing only
published or commercial cryptographic standards; or
(j) General purpose computing equipment or servers, where the
``information security'' functionality meets all of the following:
1. Uses only published or commercial cryptographic standards;
and
2. Is any of the following:
a. Integral to a CPU that meets the provisions of Note 3 in
Category 5--Part 2;
b. Integral to an operating system that is not specified by
5D002; or
c. Limited to ``OAM'' of the equipment.
b. Designed or modified to enable, by means of ``cryptographic
activation,'' an item to achieve or exceed the controlled
performance levels for functionality specified by 5A002.a that would
not otherwise be enabled;
c. Designed or modified to use or perform ``quantum
cryptography;''
Technical Note: ``Quantum cryptography'' is also known as
Quantum Key Distribution (QKD).
d. Designed or modified to use cryptographic techniques to
generate channelizing codes, scrambling codes or network
identification codes, for systems using ultra-wideband modulation
techniques and having any of the following:
d.1. A bandwidth exceeding 500 MHz; or
d.2. A ``fractional bandwidth'' of 20% or more;
e. Designed or modified to use cryptographic techniques to
generate the spreading code for ``spread spectrum'' systems, not
controlled in 5A002.d., including the hopping code for ``frequency
hopping'' systems.
0
79. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 5--Part 2, ECCN 5A992 is amended by removing and reserving
Items paragraphs a and b and revising Items paragraph c in the List of
Items Controlled section.
The revisions read as follows:
5A992 Equipment not controlled by 5A002 (see List of Items
Controlled).
* * * * *
List of Items Controlled
* * * * *
Items: * * *
c. Commodities classified as mass market encryption commodities
in accordance with Sec. 740.17(b) of the EAR.
0
80. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 5--Part 2 is amended by:
0
a. Adding after ECCN 5A992 the heading ``II. NON-CRYPTOGRAPHIC
``INFORMATION SECURITY'' '' and adding ECCN 5A003; and
0
b. Adding after ECCN 5A003 the heading ``III. DEFEATING, WEAKENING, OR
BYPASSING ``INFORMATION SECURITY'' '' and adding ECCN 5A004.
The additions read as follows:
II. NON-CRYPTOGRAPHIC ``INFORMATION SECURITY''
5A003 ``Systems,'' ``equipment'' and ``components,'' for non-
cryptographic ``information security,'' as follows (see List of
Items Controlled).
License Requirements
Reason for Control: NS, AT
Country chart (see Supp.
Control(s) No. 1 to part 738)
NS applies to entire entry................ NS Column 2
AT applies to entire entry................ AT Column 1
List Based License Exceptions (See Part 740 for a description of all
license exceptions)
LVS: Yes: $500 for ``components.'' N/A for systems and equipment.
GBS: N/A
CIV: N/A
List of Items Controlled
Related Controls: N/A
Related Definitions: N/A
Items:
a. Communications cable systems designed or modified using
mechanical, electrical or electronic means to detect surreptitious
intrusion;
Note: 5A003.a applies only to physical layer security.
b. ``Specially designed'' or modified to reduce the compromising
emanations of information-bearing signals beyond what is necessary
for health, safety or electromagnetic interference standards.
II. DEFEATING, WEAKENING, OR BYPASSING ``INFORMATION SECURITY''
5A004 ``Systems,'' ``equipment'' and ``components'' for defeating,
weakening or bypassing ``information security,'' as follows (see
List of Items Controlled).
License Requirements
Reason for Control: NS, AT, EI
Country chart (see Supp.
Control(s) No. 1 to part 738)
NS applies to entire entry................ NS Column 1
AT applies to entire entry................ AT Column 1
EI applies to entire entry................ Refer to Sec. 742.15 of
the EAR
License Requirements Note: See Sec. 744.17 of the EAR for
additional license requirements for microprocessors having a
processing speed of 5 GFLOPS or more and an arithmetic logic unit
with an access width of 32 bit or more, including those
incorporating ``information security'' functionality, and associated
``software'' and ``technology'' for the ``production'' or
``development'' of such microprocessors.
List Based License Exceptions (See Part 740 for a description of all
license exceptions)
LVS: Yes: $500 for ``components.'' N/A for systems and equipment.
GBS: N/A
CIV: N/A
ENC: Yes for certain EI controlled commodities, see Sec. 740.17 of
the EAR for eligibility.
List of Items Controlled
Related Controls: ECCN 5A004.a controls ``components'' providing the
means or functions necessary for ``information security.'' All such
``components'' are presumptively ``specially designed'' and
controlled by 5A004.a.
Related Definitions: N/A
Items:
a. Designed or modified to perform `cryptanalytic functions.'
Note: 5A004.a includes systems or equipment, designed or
modified to perform `cryptanalytic functions' by means of reverse
engineering.
Technical Note: `Cryptanalytic functions' are functions designed
to defeat cryptographic mechanisms in order to derive confidential
variables or sensitive data, including clear text, passwords or
cryptographic keys.
b. [Reserved]
0
81. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 5--Part 2, ECCN 5B002 is amended by revising the Items
paragraph in the List of Items Controlled section to read as follows:
5B002 ``Information Security'' test, inspection and ``production''
equipment, as follows (see List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
a. Equipment ``specially designed'' for the ``development'' or
``production'' of equipment controlled by 5A002, 5A003, 5A004 or
5B002.b;
b. Measuring equipment ``specially designed'' to evaluate and
validate the ``information security'' functions of equipment
controlled by 5A002, 5A003 or 5A004, or of ``software'' controlled
by 5D002.a or 5D002.c.
0
82. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 5--Part 2, ECCN 5D002 is amended by:
0
a. Adding, as well as revising, EI controls to the License Requirement
table in the License Requirements section;
[[Page 64688]]
0
b. Removing the EI sentence, including the two Notes, under the License
Requirements Note;
0
c. Revising the Related Controls paragraph in the List of Items
Controlled Section; and
0
d. Revising Items paragraphs a. and c.1.
The revisions and additions read as follows:
5D002 ``Software'' as follows (see List of Items Controlled)
License Requirements
Reason for Control: * * *
Country chart (see Supp.
Control(s) No. 1 to part 738)
* * * * *
EI applies to ``software'' in 5D002.a, c.1 See Sec. 742.15 of the EAR
and .d, for commodities or ``software'' Note: Encryption software is
controlled for EI reasons in ECCNs 5A002, controlled because of its
5A004 or 5D002. functional capacity, and
not because of any
informational value of such
software; such software is
not accorded the same
treatment under the EAR as
other ``software'; and for
export licensing purposes,
encryption software is
treated under the EAR in
the same manner as a
commodity included in ECCN
5A002
License Requirements Note: See Sec. 744.17 of the EAR for
additional license requirements for microprocessors having a
processing speed of 5 GFLOPS or more and an arithmetic logic unit
with an access width of 32 bit or more, including those
incorporating ``information security'' functionality, and associated
``software'' and ``technology'' for the ``production'' or
``development'' of such microprocessors.
* * * * *
List of Items Controlled
Related Controls: After classification or self-classification in
accordance with Sec. 740.17(b) of the EAR, mass market encryption
software that meet eligibility requirements are released from ``EI''
and ``NS'' controls. This software is designated as 5D992.c.
* * * * *
Items:
a. ``Software'' ``specially designed'' or modified for the
``development,'' ``production'' or ``use'' of equipment controlled
by 5A002, 5A003 or 5A004, or of ``software'' controlled by 5D002.c;
* * * * *
c. * * *
c.1. ``Software'' having the characteristics, or performing or
simulating the functions of the equipment, controlled by 5A002,
5A003 or 5A004;
* * * * *
0
83. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 5--Part 2, ECCN 5D992 is amended by removing and reserving
Items paragraphs a and b, and revising Items paragraph c in the Items
paragraph of the List of Items Controlled section to read as follows:
5D992 ``Information Security'' ``software'' not controlled by 5D002
as follows (see List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
a. [Reserved]
b. [Reserved]
c. ``Software'' classified as mass market encryption software in
accordance with Sec. 740.17(b) of the EAR.
0
84. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 5--Part 2, ECCN 5E002 is amended by:
0
a. Adding an EI control row to the License Requirements table in the
License Requirements section;
0
b. Removing the EI sentence after the License Requirements table in the
License Requirements section;
0
c. Revising Note 2 in the License Requirements Notes in the License
Requirements section;
0
d. Revising the Related Controls paragraph of the List of Items
Controlled section;
0
e. Revising Items paragraph a in the List of Items Controlled section.
The revisions and additions read as follows:
5E002 ``Technology'' as follows (see List of Items Controlled).
License Requirements
Reason for Control: * * *
Country chart (see Supp.
Control(s) No. 1 to part 738)
* * * * *
EI applies to ``technology'' in 5E002.a Refer to Sec. 742.15 of
for commodities or ``software'' the EAR
controlled for EI reasons in ECCNs 5A002,
5A004 or 5D002, and to ``technology'' in
5E002.b.
License Requirements Notes: * * * (2) When a person performs or
provides technical assistance that incorporates, or otherwise draws
upon, ``technology'' that was either obtained in the United States
or is of US-origin, then a release of the ``technology'' takes
place. Such technical assistance, when rendered with the intent to
aid in the ``development'' or ``production'' of encryption
commodities or software that would be controlled for ``EI'' reasons
under ECCN 5A002, 5A004 or 5D002, may require authorization under
the EAR even if the underlying encryption algorithm to be
implemented is from the public domain or is not of U.S.-origin.
* * * * *
List of Items Controlled
Related Controls: See also 5E992. This entry does not control
``technology'' ``required'' for the ``use'' of equipment excluded
from control under the Related Controls paragraph or the Technical
Notes in ECCN 5A002 or ``technology'' related to equipment excluded
from control under ECCN 5A002.
* * * * *
Items:
a. ``Technology'' according to the General Technology Note for
the ``development,'' ``production'' or ``use'' of equipment
controlled by 5A002, 5A003, 5A004 or 5B002, or of ``software''
controlled by 5D002.a or 5D002.c.
* * * * *
0
85. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 5--Part 2, ECCN 5E992 is amended by removing and reserving
Items paragraph a.
0
86. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6, ECCN 6A001 is amended by:
0
a. Adding double quotes around the term ``components'' in the Heading,
introductory text of Items paragraph a, a.1, a.1.d, a.2 and the Note to
6A001.a.2 in the List of Items Controlled section;
0
b. Revising Items paragraphs a.1.d.2 and a.1.e.2 in the List of Items
Controlled section, as set forth below; and
0
c. Adding double quotes around the term ``accuracy'' in Items
paragraphs a.2.d.1, b.1.b, and b.2 in the List of Items Controlled
section.
The additions and revisions read as follows:
6A001 Acoustic systems, equipment and ``components,'' as follows
(see List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
a. * * *
a.1. * * *
a.1.d. * * *
a.1.d.2. Determined position error of less than 10 m rms (root
mean square) when measured at a range of 1,000 m;
Note: * * *
a.1.e. * * *
[[Page 64689]]
a.1.e.2. Determined position error of less than 15 m rms (root
mean square) when measured at a range of 530 m; and
* * * * *
0
87. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6, ECCN 6A002 is amended by adding paragraph d. to Note 2 to
6A002.a.3 in the Items paragraph of the List of Items Controlled
section, to read as follows:
6A002 Optical sensors and equipment, and ``components'' therefor, as
follows (see List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
a. * * *
a.3. * * *
* * * * *
Note 2: * * *
d. Thermopile arrays having less than 5,130 elements;
* * * * *
0
88. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6, ECCN 6A003 is amended by revising 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).
* * * * *
List of Items Controlled
Related Controls: (1) See ECCNs 6E001 (``development''), 6E002
(``production''), and 6E201 (``use'') for technology for items
controlled under this entry. (2) Also see ECCN 6A203. (3) See ECCN
0A919 for foreign-made military commodities that incorporate cameras
described in 6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c. (4) Section
744.9 imposes license requirements on cameras described in
6A003.b.3, 6A003.b.4.b, or 6A003.b.4.c if being exported for
incorporation into an item controlled by ECCN 0A919 or for a
military end user.
* * * * *
0
89. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6, ECCN 6A004 is amended by:
0
a. Adding a Note to Items paragraph a.3 in the List of Items Controlled
section; and
0
b. Revising Items paragraphs d.2.a.3 and d.2.b, to read as follows:
The addition and revisions read as follows:
6A004 Optical equipment and ``components,'' as follows (see List of
Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
a. * * *
a.3. * * *
Note: 6A004.a.2 and 6A004.a.3 do not apply to mirrors
``specially designed'' to direct solar radiation for terrestrial
heliostat installations.
* * * * *
d. * * *
d.2. * * *
d.2.a. * * *
d.2.a.3. An angular ``accuracy'' of 10 [mu]rad (microradians) or
less (better);
d.2.b. Resonator alignment equipment having bandwidths equal to
or more than 100 Hz and an ``accuracy'' of 10 [mu]rad or less
(better);
* * * * *
0
90. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6, ECCN 6A005 is amended by:
0
a. Revising the introductory text to Note 2 located after Items
paragraph a.6.b.2 and the Technical Note located after Note 2 in the
List of Items Controlled section;
0
b. Revising Items paragraphs b.6.a.2 and b.6.b.2 in the List of Items
Controlled section;
0
c. Removing the Note to 6A005.c.1 in the Items paragraph of the List of
Items Controlled section;
0
d. Adding a Note to 6A005.c.1 after Items paragraph c.1.b in the List
of Items Controlled section;
0
e. Adding a Note to 6A005.d.1.d.1.d in the Items paragraph d.1.d.1.d of
the List of Items Controlled section;
0
f. Adding a Note to 6A005.d.1.d.2.d after the Items paragraph d.1.d.2.d
of the List of Items Controlled section;
0
g. Revising Items paragraph e.3 introductory text, e.3.c.1, e.3.c.2,
f.3, and g.1 through g.3 of the List of Items Controlled section;
0
h. Revising the Technical Note at the end of the Items paragraph in the
List of Items Controlled section.
The revisions and additions read as follows:
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
* * * * *
Items:
* * * * *
a. * * *
a.6. * * *
a.6.b. * * *
a.6.b.2. * * *
Note 2: 6A005.a.6.b does not apply to multiple transverse mode,
industrial ``lasers'' having any of the following:
* * * * *
Technical Note: For the purpose of 6A005.a.6.b, Note 2 (a)(2),
`brightness' is defined as the output power of the ``laser'' divided
by the squared Beam Parameter Product (BPP), i.e., (output power)/
BPP\2\.
* * * * *
b. * * *
b.6. * * *
b.6.a. * * *
b.6.a.2. ``Average output power'' exceeding 30 W; or
* * * * *
b.6.b. * * *
b.6.b.2. ``Average output power'' exceeding 50 W; or
* * * * *
c. * * *
c.1. * * *
c.1.b. * * *
Note: 6A005.c.1 does not apply to dye ``lasers'' or other liquid
``lasers,'' having a multimode output and a wavelength of 150 nm or
more but not exceeding 600 nm and all of the following:
1. Output energy less than 1.5 J per pulse or a ``peak power''
less than 20 W; and
2. Average or CW output power less than 20 W.
* * * * *
d. * * *
d.1. * * *
d.1.d. * * *
d.1.d.1. * * *
d.1.d.1.d. * * *
Note: 6A005.d.1.d.1.d does not apply to epitaxially-fabricated
monolithic devices.
* * * * *
d.1.d.2.d. * * *
Note: 6A005.d.1.d.2.d does not apply to epitaxially-fabricated
monolithic devices.
* * * * *
e. * * *
e.3. Fiber ``laser'' ``components'' as follows:
* * * * *
e.3.c. * * *
e.3.c.1. Designed for spectral or coherent beam combination of 5
or more fiber ``lasers;'' and
e.3.c.2. CW ``Laser'' Induced Damage Threshold (LIDT) greater
than or equal to 10 kW/cm\2\;
f. * * *
f.3. Optical equipment and ``components,'' ``specially
designed'' for a phased-array ``SHPL'' system for coherent beam
combination to an ``accuracy'' of [lambda]/10 at the designed
wavelength, or 0.1 [mu]m, whichever is the smaller;
* * * * *
g. * * *
g.1. CW ``laser'' output power greater than or equal to 20 mW;
g.2. ``Laser'' frequency stability equal to or better (less)
than 10 MHz;
g.3. ``Laser'' wavelengths equal to or exceeding 1,000 nm but
not exceeding 2,000 nm;
* * * * *
Technical Note: `Laser acoustic detection equipment' is
sometimes referred to as a ``Laser'' Microphone or Particle Flow
Detection Microphone.
0
91. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6, ECCN 6A007 is amended by adding
[[Page 64690]]
double quotes around the term ``accuracy'' in Items paragraphs .a, b.1
and b.2 in the List of Items Controlled section.
0
92. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6, ECCN 6A008 is amended by:
0
a. Adding double quotes around the term ``accuracy'' in Items paragraph
a.2 in the List of Items Controlled section;
0
b. Adding double quotes around the term ``lasers'' in Items paragraph
j.3 in the List of Items Controlled section;
0
c. Adding double quotes around the term ``aircraft'' in Note 2 of the
Technical Notes at the end of the Items paragraph in the List of Items
Controlled section.
0
93. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6, ECCN 6B004 is amended by revising Items paragraph a in the
List of Items Controlled section to read as follows:
6B004 Optical equipment as follows (see List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
a. Equipment for measuring absolute reflectance to an
``accuracy'' of equal to or better than 0.1% of the reflectance
value;
* * * * *
0
94. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6, ECCN 6B007 is amended by adding double quotes around the
term ``accuracy'' in the Heading.
0
95. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6, ECCN 6C005 is amended by adding double quotes around the
term ``laser'' in Items paragraphs b.1 and b.2 in the List of Items
Controlled section.
0
96. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 6, ECCN 6E003 is amended by revising the Items paragraph in
the List of Items Controlled section to read as follows:
6E003 Other ``technology'' as follows (see List of Items
Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
ACOUSTICS
a. [Reserved]
OPTICAL SENSORS
b. [Reserved]
CAMERAS
c. [Reserved]
OPTICS
d. ``Technology'' as follows:
d.1. Optical surface coating and treatment ``technology,''
``required'' to achieve an `optical thickness' uniformity of 99.5%
or better for optical coatings 500 mm or more in diameter or major
axis length and with a total loss (absorption and scatter) of less
than 5 x 10-\3\;
N.B.: See also 2E003.f.
Technical Note: `Optical thickness' is the mathematical product
of the index of refraction and the physical thickness of the
coating.
d.2. Optical fabrication ``technology'' using single point
diamond turning techniques to produce surface finish ``accuracies''
of better than 10 nm rms on non-planar surfaces exceeding 0.5 m2;
LASERS
e. ``Technology'' ``required'' for the ``development,''
``production'' or ``use'' of ``specially designed'' diagnostic
instruments or targets in test facilities for ``SHPL'' testing or
testing or evaluation of materials irradiated by ``SHPL'' beams;
MAGNETIC AND ELECTRIC FIELD SENSORS
f. [Reserved]
GRAVIMETERS
g. [Reserved]
RADAR
h. [Reserved]
0
97. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 7, ECCN 7A003 is amended by:
0
a. Revising the Technical Note at the beginning of the Items paragraph
of the List of Items Controlled section;
0
b. Adding double quotes around the term ``accuracies'' in the
introductory paragraph in the Items paragraph .a, and the term
``accuracy'' in the Items paragraphs b, c.1, and c.2 in the List of
Items Controlled section;
0
c. Removing single quotes and adding double quotes around the term
``Circular Error Probable'' in the Items paragraph a.1 in the List of
Items Controlled section; and
0
d. Removing single quotes and adding double quotes around the term
``CEP'' in Items paragraphs a.1, a.2, a.3, and .b in the List of Items
Controlled section.
The revision reads as follows:
7A003 `Inertial measurement equipment or systems', having any of the
following (see List of Items Controlled).
* * * * *
List of Items Controlled
* * * * *
Items:
* * * * *
Technical note:
`Positional aiding references' independently provide position,
and include:
a. Global Navigation Satellite Systems (GNSS);
b. ``Data-Based Referenced Navigation'' (``DBRN'').
* * * * *
0
98. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 7, ECCN 7A004 is amended by adding double quotes around the
term ``accuracy'' in the Items paragraph a in the List of Items
Controlled section.
0
99. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 7, ECCN 7A008 is amended by adding double quotes around the
term ``accuracy'' in the Heading.
0
100. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 7, ECCN 7B001 is amended by adding double quotes around the
term ``aircraft'' in paragraph (1) of the Related Definitions paragraph
in the List of Items Controlled section.
0
101. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 7, ECCN 7B002 is amended by adding double quotes around the
term ``accuracies'' in Items paragraphs .a and .b of the List of Items
Controlled section.
0
102. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 7, ECCN 7E004 is amended by:
0
a. Adding double quotes around the term ``accuracy'' in Items paragraph
a.7 of the List of Items Controlled section;
0
b. Adding double quotes around the term ``aircraft'' in the Items
paragraphs b.1, b.7.b.4, b.8.a and b.8.b of the List of Items
Controlled section; and
0
c. Removing the word ``directional'' and adding in its place
``direction'' in the Items paragraph c.2 of the List of Items
Controlled section.
0
103. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 8, ECCN 8A001 is amended by:
0
a. Revising the Related Controls paragraph in the List of Items
Controlled section, as set forth below;
0
b. Adding double quotes around the term ``accuracies'' in Items
paragraph e.2 of the List of Items Controlled section.
The revision reads as follows:
8A001 Submersible vehicles and surface vessels, as follows (see List
of Items Controlled).
* * * * *
List of Items Controlled
Related Controls: For the control status of equipment for
submersible vehicles, see: Category 6 for sensors; Categories 7 and
8 for navigation equipment; Category 8A for underwater equipment.
* * * * *
0
104. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 8, ECCN 8A002 is amended by:
0
a. Revising the GBS and CIV paragraphs in the List Based License
Exception section;
0
b. Revising Items paragraph d of the List of Items Controlled section;
0
c. Removing and reserving Items paragraph e in the List of Items
[[Page 64691]]
Controlled section. The revisions read as follows:
8A002 Marine systems, equipment, ``parts'' and ``components,'' as
follows (see List of Items Controlled).
* * * * *
List Based License Exceptions (see Part 740 for a description of all
license exceptions)
* * * * *
GBS: Yes for manipulators for civil end uses (e.g., underwater oil,
gas or mining operations) controlled by 8A002.i.2 and having 5
degrees of freedom of movement; and 8A002.r.
CIV: Yes for manipulators for civil end uses (e.g., underwater oil,
gas or mining operations) controlled by 8A002.i.2 and having 5
degrees of freedom of movement; and 8A002.r.
* * * * *
List of Items Controlled
* * * * *
Items:
* * * * *
d. Underwater vision systems ``specially designed'' or modified
for remote operation with an underwater vehicle, employing
techniques to minimize the effects of back scatter and including
range-gated illuminators or ``laser'' systems;
* * * * *
0
105. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9, ECCN 9A001 is amended by:
0
a. Adding double quotes around the term ``aircraft'' in paragraph b. of
Note 1 to Items 9A001.a in the List of Items Controlled section; and
0
b. Adding double quotes around the term ``aircraft'' in Items paragraph
b introductory text in the List of Items Controlled section.
0
106. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9, ECCN 9A004 is amended by removing the reference to
``5A002.a.5, 5A002.a.9'' and adding in its place ``5A002.c, 5A002.e''
in Items paragraph d in the List of Items Controlled section.
0
107. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9, ECCN 9A012 is amended by removing the Note at the end of
the Items paragraph in the List of Items Controlled section.
0
108. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9, ECCN 9B001 is amended by revising Items paragraph b in the
List of Items Controlled section to read as follows:
9B001 Equipment, tooling or fixtures, ``specially designed'' for
manufacturing gas turbine engine blades, vanes or ``tip shrouds,''
as follows (See List of Items Controlled).
* * * * *
Items:
* * * * *
b. Casting tooling, manufactured from refractory metals or
ceramics, as follows:
b.1. Cores;
b.2. Shells (moulds);
b.3. Combined core and shell (mould) units.
* * * * *
0
109. In Supplement No. 1 to part 774 (the Commerce Control List),
Category 9, ECCN 9E003 is amended by:
0
a. Adding double quotes around the term ``aircraft'' in two places in
Related Controls paragraph (2) in the List of Items Controlled section;
0
b. Adding double quotes around the term ``aircraft'' in the Note to
9E003.h in the List of Items Controlled section;
0
c. Adding double quotes around the term ``aircraft'' in Items paragraph
j and the Nota Bene that follows in the List of Items Controlled
section.
Supplement No. 2 to Part 774 [Amended]
0
110. Supplement No. 2 to part 774 ``General Technology And Software
Notes'' is amended by adding paragraph 3 to read as follows:
Supplement No. 2 To Part 774--General Technology and Software Notes
* * * * *
3. General ``Information Security'' Note. ``Information
security'' items or functions should be considered against the
provisions in Category 5-Part 2, even if they are components,
``software'' or functions of other items.
* * * * *
0
111. Supplement No. 6 to part 774 ``Sensitive List'' is amended by
revising paragraphs (2)(i) ``2D001,'' (2)(ii) ``2E001,'' (2)(iii)
``2E002,'' (4)(ii) ``4D001,'' (4)(iii) ``4E001,'' to read as follows:
Supplement No. 6 to Part 774--Sensitive List
* * * * *
(2) Category 2
(i) 2D001--``Software,'' other than that controlled by 2D002,
specially designed for the ``development'' or ``production'' of
equipment as follows:
(A) Machine tools for turning (ECCN 2B001.a) having two or more
axes which can be coordinated simultaneously for ``contouring
control'' having any of the following:
(1) ``Unidirectional positioning repeatability'' equal to or
less (better) than 0.9 [micro]m along one or more linear axis with a
travel length less than 1.0 m; or
(2) ``Unidirectional positioning repeatability'' equal to or
less (better) than 1.1 [micro]m along one or more linear axis with a
travel length equal to or greater than 1.0 m;
(B) Machine tools for milling (ECCN 2B001.b) having any of the
following:
(1) Three linear axes plus one rotary axis which can be
coordinated simultaneously for ``contouring control'' having any of
the following:
(a) ``Unidirectional positioning repeatability'' equal to or
less (better) than 0.9 [micro]m along one or more linear axis with a
travel length less than 1.0 m; or
(b) ``Unidirectional positioning repeatability'' equal to or
less (better) than 1.1 [micro]m along one or more linear axis with a
travel length equal to or greater than 1.0 m;
(2) Specified by 2B001.b.2.a, 2B001.b.2.b or 2B001.b.2.c and
having a ``unidirectional positioning repeatability'' equal to or
less (better) than 1.1 [micro]m along one or more linear axis; or
(3) A ``unidirectional positioning repeatability'' for jig
boring machines equal to or less (better) than 1.1 [micro]m along
one or more linear axis;
(C) Electrical discharge machines (EDM) controlled under
2B001.d;
(D) Deep-hole-drilling machines controlled under 2B001.f;
(E) ``Numerically controlled'' or manual machine tools
controlled under 2B003.
(ii) 2E001--''Technology'' according to the General Technology
Note for the ``development'' of ``software'' specified by 2D001
described in this Supplement or for the ``development'' of equipment
as follows:
(A) Machine tools for turning (ECCN 2B001.a) having two or more
axes which can be coordinated simultaneously for ``contouring
control'' having any of the following:
(1) ``Unidirectional positioning repeatability'' equal to or
less (better) than 0.9 [micro]m along one or more linear axis with a
travel length less than 1.0 m; or
(2) ``Unidirectional positioning repeatability'' equal to or
less (better) than 1.1 [micro]m along one or more linear axis with a
travel length equal to or greater than 1.0 m
(B) Machine tools for milling (ECCN 2B001.b) having any of the
following:
(1) Three linear axes plus one rotary axis which can be
coordinated simultaneously for ``contouring control'' having any of
the following:
(a) ``Unidirectional positioning repeatability'' equal to or
less (better) than 0.9 [micro]m along one or more linear axis with a
travel length less than 1.0 m; or
(b) ``Unidirectional positioning repeatability'' equal to or
less (better) than 1.1 [micro]m along one or more linear axis with a
travel length equal to or greater than 1.0 m;
(2) Specified by 2B001.b.2.a, 2B001.b.2.b or 2B001.b.2.c and
having a ``unidirectional positioning repeatability'' equal to or
less (better) than 1.1 [micro]m along one or more linear axis; or
(3) A ``unidirectional positioning repeatability'' for jig
boring machines equal to or less (better) than 1.1 [micro]m along
one or more linear axis;
(C) Electrical discharge machines (EDM) controlled under
2B001.d;
(D) Deep-hole-drilling machines controlled under 2B001.f;
(E) ``Numerically controlled'' or manual machine tools
controlled under 2B003.
(iii) 2E002--``Technology'' according to the General Technology
Note for the ``production'' of equipment as follows:
(A) Machine tools for turning (ECCN 2B001.a) having two or more
axes which can be coordinated simultaneously for
[[Page 64692]]
``contouring control'' having any of the following:
(1) ``Unidirectional positioning repeatability'' equal to or
less (better) than 0.9 [micro]m along one or more linear axis with a
travel length less than 1.0 m; or
(2) ``Unidirectional positioning repeatability'' equal to or
less (better) than 1.1 [micro]m along one or more linear axis with a
travel length equal to or greater than 1.0 m;
(B) Machine tools for milling (ECCN 2B001.b) having any of the
following:
(1) Three linear axes plus one rotary axis which can be
coordinated simultaneously for ``contouring control'' having any of
the following:
(a) ``Unidirectional positioning repeatability'' equal to or
less (better) than 0.9 [micro]m along one or more linear axis with a
travel length less than 1.0 m; or
(b) ``Unidirectional positioning repeatability'' equal to or
less (better) than 1.1 [micro]m along one or more linear axis with a
travel length equal to or greater than 1.0 m;
(2) Specified by 2B001.b.2.a, 2B001.b.2.b or 2B001.b.2.c and
having a ``unidirectional positioning repeatability'' equal to or
less (better) than 1.1 [micro]m along one or more linear axis; or
(3) A ``unidirectional positioning repeatability'' for jig
boring machines equal to or less (better) than 1.1 [micro]m along
one or more linear axis;
(C) Electrical discharge machines (EDM) controlled under
2B001.d;
(D) Deep-hole-drilling machines controlled under 2B001.f;
(E) ``Numerically controlled'' or manual machine tools
controlled under 2B003.
* * * * *
(4) Category 4
* * * * *
(ii) 4D001--``Software'' ``specially designed'' for the
``development'' or ``production'' of equipment controlled under ECCN
4A001.a.2 or for the ``development'' or ``production'' of
``digital computers'' having an `Adjusted Peak Performance'
(`APP') exceeding 12.5 Weighted TeraFLOPS (WT).
(iii) 4E001--``Technology'' according to the General Technology
Note for the ``development'' or ``production'' of any of the
following equipment or ``software'': equipment controlled under ECCN
4A001.a.2, ``digital computers'' having an `Adjusted Peak
Performance' (`APP') exceeding 12.5 Weighted TeraFLOPS (WT), or
``software'' controlled under the specific provisions of 4D001
described in this Supplement.
* * * * *
Dated: September 1, 2016.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2016-21544 Filed 9-19-16; 8:45 am]
BILLING CODE 3510-33-P
