Clarifications and Revisions to Military Aircraft, Gas Turbine Engines and Related Items License Requirements, 83114-83126 [2016-27777]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security

[Federal Register Volume 81, Number 224 (Monday, November 21, 2016)]
[Rules and Regulations]
[Pages 83114-83126]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27777]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 770 and 774

[Docket No. 151030999-6552-02]
RIN 0694-AG76


Clarifications and Revisions to Military Aircraft, Gas Turbine 
Engines and Related Items License Requirements

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Final rule.

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SUMMARY: This rule modifies the Commerce Control List (CCL) entries for 
two types of items: Military aircraft and related items, and military 
gas turbine engines and related items. The rule adds clarifying text to 
the descriptions of the types of military aircraft controlled on the 
CCL. The lists of items that are subject only to the anti-terrorism 
reason for control are clarified and expanded. This rule, which is 
being published simultaneously with a rule by the Department of State, 
is based on a review of Categories VIII and XIX of the United States 
Munitions List (USML). This rule and the related Department of State 
rule are part of a plan to review rules published as part of the Export 
Control Reform Initiative (ECRI). This rule also furthers the 
retrospective regulatory review directed by the President in Executive 
Order 13563.

[[Page 83115]]


DATES: This rule is effective December 31, 2016.

FOR FURTHER INFORMATION CONTACT: Thomas DeFee or Jeffrey Leitz in the 
Office of Strategic Industries and Economic Security, Munitions Control 
Division by telephone at (202) 482-4506 or by email at 
Thomas.DeFee@bis.doc.gov or Jeffrey.Leitz@bis.doc.gov.

SUPPLEMENTARY INFORMATION: 

Background

    The Bureau of Industry and Security (BIS), Department of Commerce 
maintains the Export Administration Regulations (EAR), including the 
Commerce Control List (CCL). The Export Control Reform Initiative 
(ECRI), a fundamental reform of the U.S. export control system 
announced by the President in 2010, has resulted in the transfer to the 
CCL of military and other items the President determined did not 
warrant control on the USML, including certain military aircraft, 
military gas turbine engines, and related items. The USML is part of 
the International Traffic in Arms Regulations (ITAR) maintained by the 
Department of State. A core element of the ECRI is regularly 
streamlining USML categories and adding items that the President 
determines do not warrant USML control to the CCL. On December 10, 
2010, the Department of State provided notice to the public of its 
intent, pursuant to the ECRI, to revise the USML to create a more 
``positive list'' that describes controlled items using, to the extent 
possible, objective criteria rather than broad, open-ended, subjective, 
or design intent-based criteria (see 75 FR 76935). As a practical 
matter, this meant revising USML categories so that, with some 
exceptions, the descriptions of defense articles that continued to 
warrant control under the USML did not use catch-all phrases, such as 
``specially designed'' or ``specifically designed or modified,'' to 
control unspecified items. With limited exceptions, the defense 
articles that warranted control under the USML were those that provided 
the United States with a critical military or intelligence advantage. 
All other items were to become subject to the jurisdiction of the EAR 
and controlled as warranted for various national security, foreign 
policy, and other reasons. Since that time, the Departments of State 
and Commerce have jointly published final rules setting forth revisions 
for fifteen USML categories, each of which has been reorganized into a 
uniform and more ``positive list'' structure, and corresponding 
revisions to the CCL.
    All references to the USML in this rule are to the list of defense 
articles controlled for the purpose of export or temporary import 
pursuant to the ITAR, and not to the defense articles on the USML that 
are controlled by the Bureau of Alcohol, Tobacco, Firearms and 
Explosives (ATF) for the purpose of permanent import under its 
regulations. See 27 CFR part 447. Pursuant to section 38(a)(1) of the 
Arms Export Control Act (AECA), all defense articles controlled for 
export or import are part of the USML under the AECA. The list of 
defense articles controlled by ATF for the purpose of permanent import 
is the U.S. Munitions Import List (USMIL). The transfer of defense 
articles from the ITAR's USML to the EAR's CCL does not affect the list 
of defense articles controlled on the USMIL.
    As part of the ECRI, certain military aircraft and gas turbine 
engines along with related parts, components, accessories and 
attachments, materials, software, and technology were added to the CCL 
on October 15, 2013 (see 78 FR 22660, April 16, 2013). At the same 
time, the USML was amended by revising Category VIII (Aircraft and 
Related Articles) and by creating Category XIX (Gas Turbine Engines and 
Associated Equipment) to describe, for the most part, the defense 
articles in those categories that remained on the USML in positive, 
objective terms (see 78 FR 22740, April 16, 2013).
    The advantage of revising the USML into a more positive list is 
that its controls can be tailored to satisfy the national security and 
foreign policy objectives of the ITAR by maintaining control over those 
defense articles that provide a critical military or intelligence 
advantage, or otherwise warrant control under the ITAR, without 
inadvertently controlling items in normal commercial use or less 
sensitive military items. This approach, however, requires that both 
the USML and the CCL be regularly revised and updated to account for 
technological developments, practical application issues identified by 
exporters and reexporters, and changes in the military and commercial 
applications of items affected by the USML and the 600 series Export 
Control Classification Numbers (ECCNs).
    In 2015, the Departments of Defense, State and Commerce reviewed 
the implementation of these changes to assess the effectiveness and 
utility of the 2013 amendments. That review included soliciting public 
comments by the Department of Commerce (see 80 FR 11315, March 2, 2015) 
and the Department of State (see 80 FR 11314, March 2, 2015).
    After an interagency review of those public comments by the 
Departments of Defense, State, and Commerce, the Departments of 
Commerce and State published proposed rules to revise treatment of 
aircraft and gas turbine engines along with related parts, components, 
accessories and attachments, materials, software, and technology on the 
USML and the CCL (see 81 FR 6791 and 81 FR 6797, February 9, 2016, for 
Commerce and State's rules respectively). BIS's proposed rule is 
referred to in this document as the ``February 9 rule.'' BIS is 
publishing this final rule, after an interagency review of the public 
comments on its proposed rule, simultaneously with a final rule being 
published by the Department of State.
    This rule also furthers the retrospective regulatory review 
directed by the President in Executive Order 13563.

Public Comments on the Proposed Rule

    Comment: One commenter asked BIS to insert text into licenses that 
the party who will conduct a re-export or transfer is required to 
inform subsequent parties in the transaction of license terms and 
conditions. The commenter characterized this as a similar flow-down 
approach to informing parties that has been incorporated into 
Directorate of Defense Trade Controls (DDTC) authorizations.
    This commenter also recommended that BIS consider clarifying or 
eliminating the requirement to obtain a letter of assurance in support 
of technology license applications as set forth in Supplement No. 2 to 
part 748, paragraph (o)(3)(i). The commenter stated that the 
requirement in that paragraph to submit the letter to BIS ``upon 
request'' combined with the requirement that, if the letter cannot be 
obtained, to state the reason the letter cannot be obtained in the 
license application creates ambiguity concerning the requirement.
    Response: Although these are constructive proposals, they are 
outside the scope of the proposed rule. Therefore, BIS is making no 
changes to the proposed rule in response to these comments, but will 
consider them as part of other proposed rules to be issued later.
    Comment: Four commenters addressed the proposal to replace with a 
single interpretation in Sec.  770.2 a note that appears in several 
ECCNs. The note describes when an unfinished product is controlled in 
an ECCN. One commenter expressed approval of the idea because it 
centralizes the definition. Another commenter

[[Page 83116]]

recommended retaining the note in individual ECCNs because doing so 
would, in the commenter's view, aid classification. A third commenter 
expressed approval of the idea of one interpretation and asked whether 
the interpretation's applicability would be limited to 600 series items 
and asked for clarification of the meaning of the term ``clearly 
identifiable'' in the text. The fourth commenter recommended that the 
applicability of the interpretation be extended to cover all unfinished 
commodities by removing the reference to the 600 series and that the 
definition of ``material'' in the EAR be revised to reference the 
interpretation.
    Response: Although repeating the interpretation in each ECCN to 
which it applies might be a convenience for some users, doing so would 
lengthen the EAR and would increase the likelihood of inadvertent 
omissions or differences in text in the various renditions of the 
interpretation that would result. The text of this interpretation was 
adopted from the definition of defense article in Sec.  120.6 of the 
ITAR, which applies throughout the USML. BIS is unaware of any 
difficulties that have arisen because the definition is not repeated 
throughout the USML. BIS believes that stating the interpretation and 
its scope once is the best way to promote a concise EAR and prevent 
inadvertent errors or omissions.
    The interpretation was originally adopted as a series of notes in 
600 series, Product Group A ECCNs so that commodities that were being 
transferred from the USML to the CCL would be subject to the same 
standard with respect to coverage of unfinished goods when on the CCL 
as they had been when on the USML. Because these commodities were 
previously on the USML, parties to transactions that are subject to the 
ITAR and the U.S. Government have substantial experience in dealing 
with the interpretation in connection with the commodities that are now 
in the 600 series. However, no such experience exists with respect to 
commodities that are not in the 600 series. To avoid possible 
unintended consequences, extending the interpretation to items outside 
the 600 series should not be undertaken without a comprehensive review 
to determine exactly which ECCNs would be affected and how they would 
be affected. Additionally, such a change would be outside the scope of 
what was in the proposed rule.
    Although the interpretation does not define the term ``clearly 
identifiable,'' its text does provide some guidance. That term applies 
to unfinished products that ``have reached a stage in manufacturing 
where they are clearly identifiable by mechanical properties, material 
composition, geometry, or function as commodities controlled by any 
Product Group A . . . `600 series' ECCN.'' When, based on consideration 
of its mechanical properties, material composition, geometry, or 
function, an unfinished product can be recognized readily as a 
commodity that is controlled in a 600 series, Product Group A ECCN, it 
is clearly identifiable as that commodity. This term has been used to 
describe the affected commodities for years when they were controlled 
on the USML, and BIS is not aware of any confusion on this point.
    Finally, the interpretation is intended to identify when an 
unfinished product is to be treated for export control purposes as it 
would be treated if finished. It is not intended to apply to raw 
materials that have not been subjected to any manufacturing processes. 
To determine whether a raw material not identified on the USML would be 
controlled on the CCL as such (i.e., before it has been transformed as 
described above), one would need to review the C group ECCNs in the 
CCL.
    Therefore, BIS is making no changes to the rule in response to this 
recommendation.
    Comment: One commenter stated that under the EAR definition, the `` 
`range' for . . . [unmanned aerial vehicle (UAV)] systems will be 
determined independently of any external factors such as operational 
restrictions, limitations imposed by telemetry, data links or other 
external constraints.'' The commenter suggested this condition be 
modified or removed to accommodate the increasing commercialization of 
UAVs. The commenter noted that: ``Many potential customers have 
expressed the desire to purchase UAVs that are capable of remaining on 
station for extended periods of time, which requires a certain amount 
of fuel. . . . an aircraft that can fly in circles for hours over an 
oil pipeline or fishing territory could easily trip the MTCR range 
thresholds if not for operational restrictions and limitations imposed 
by telemetry and data links.''
    Response: The definition of range to which the commenter refers is 
adopted from the Missile Technology Control Regime (MTCR) and used in 
the EAR with respect to items on the MTCR Annex. In accordance with the 
United States' commitment to the MTCR, BIS would not change that 
definition unless the MTCR agrees to change the definition on the 
Annex. Accordingly, BIS is making no changes to the rule in response to 
this comment.
    Comment: One commenter recommended that BIS add the phrase ``with 
no fuel reserve'' to technical note .d in the definition of ``range'' 
in the EAR to match the definition in note 2 to USML Category VIII(a) 
in the Department of State proposed rule.
    Response: The definition of range in note 2 to USML Category 
VIII(a) of the Department of State proposed rule, although adopted from 
the MTCR definition of range, applies to things that are not on the 
MTCR annex, including certain manned aircraft for which range is one of 
the criteria that determines whether the aircraft is controlled under 
USML Category VIII(a). The notion of calculating the range of an 
aircraft that carries people without including an allowance for fuel 
reserves to deal with unexpected circumstances or emergencies is 
sufficiently unusual that the State proposed rule explicitly stated 
that fuel reserves should not be included when calculating range. By 
contrast, on the CCL, the term range, when describing how far something 
can fly, is used only in setting a criterion for the application of the 
missile technology reason for control and applies only to items 
controlled on the MTCR Annex, most of which, including unmanned 
vehicles, do not carry people. Thus, the exact text of the MTCR 
definition is appropriate. Therefore, BIS is making no changes to the 
rule in response to this comment.
    Comment: One commenter proposed revising the definition of military 
aircraft in 9A610 Note 1 to apply to aircraft that are specially 
designed for operation by military end-users and to exclude: Aircraft 
that are not enumerated in USML Category VIII(a); civil aircraft 
(commenter's proposed definition in next comment); and aircraft for 
which the person obtaining airworthiness certification has 
``knowledge'' that the aircraft will be a ``civil aircraft'' after 
planned designation in published airworthiness certification lists has 
been obtained. The note would define military end-users as meaning 
national armed services (army, navy, marine, air force, or coast 
guard), as well as national guard and national police, government 
intelligence or reconnaissance organizations, international military 
organizations, or irregular military forces or units. The commenter 
cited uniformity throughout the EAR, commonality of the definition for 
the CCL with the definition of military end user in part 744, 
consistency with the ITAR definition of defense services, and clarity 
with respect to non-military aircraft as the reason for proposing this 
change.

[[Page 83117]]

    Response: BIS believes that the definition proposed by this 
commenter would not be an improvement over the text of the proposed 
rule. The commenter's proposed standard ``specially designed for 
operation by military end users'' would shift the focus from the 
capabilities of the aircraft to the nature of the intended end users. 
If adopted, this change would affect ECCNs that are outside the scope 
of the rule and should not be undertaken without seeking public comment 
on those changes. Accordingly, BIS is making no changes in response to 
this comment.
    Comment: One commenter recommended adding a note to the definition 
of ``civil aircraft'' in EAR part 772 clarifying the meaning of the 
phrase ``legitimate civil, private or business use'' to explain which 
government uses fall within the term ``legitimate civil use.'' The 
commenter suggested that activities such as wildlife and environmental 
aerial survey, forest fire suppression, and public hospital medevac 
would reasonably be considered ``legitimate civil use'' of aircraft 
even if flown by governments. The commenter asserted that, ``given the 
definitions for `military end user' in EAR [sections] 744.9, 744.17, 
744.21 and `armed forces' on the DDTC DSP-83, industry would reasonably 
conclude that a national police helicopter is a `military aircraft' for 
military uses but that an unarmed city police helicopter with a WA type 
certificate is a `civil aircraft' put to a `legitimate civil use.' ''
    Response: The suggestion would be a substantive change affecting 
multiple ECCNs outside the scope of the proposed rule. BIS is not 
adopting it in this final rule.
    Comment: One commenter stated that commodities and software 
``specially designed'' for current or planned ``civil aircraft'' should 
not be enumerated or described in ECCNs 9x610 or 9x619, even if DDTC 
controls the ``civil aircraft'' as a ``defense article'' because of a 
single incorporated defense article. For both the EAR and the ITAR, the 
full complement of ``specially designed'' items used in or with an 
aircraft should depend on more than incorporation of a single USML, 600 
series, or xA018 commodity into the aircraft. It should also depend on 
whether the aircraft will be used for a purpose the government deems 
military, and if not, whether the items are classified in relation to 
the USML, 600 series, or xA018 commodity.
    Response: The commenter's concern is unwarranted because parts, 
components, accessories, attachments, and software subject to the EAR 
that are, inter alia, designed for or common to 9A991 civil aircraft or 
engines in production cannot, pursuant to the release provisions of the 
EAR's definition of ``specially designed,'' become controlled under a 
600 series ECCN merely because they are also used in an otherwise civil 
9A991 aircraft or engine that has been converted to ITAR control by 
virtue of the provisions in USML Categories VIII(a) or XIX(a).
    If a commodity or software is enumerated on the USML or in a 600 
series ECCN, it is based on a decision that the commodity or software 
warrants control as a military item. BIS is making no change to the 
rule in response to this comment.
    Comment: One commenter, referring to L-100 aircraft built prior to 
2013, stated that ``It is not appropriate to enumerate under ECCN 
9A610, which controls military aircraft and related commodities, a 
``civil aircraft'' that has been operated by commercial aircraft 
operators since the 1960s, has been operated by more than one U.S. 
commercial airline and has been out of production for nearly a quarter 
of a century. It would be appropriate to enumerate in 9A610 L-100 
aircraft that have been modified for military end users and no longer 
meet the definition of ``civil aircraft.'' The commenter stated that 
BIS has the flexibility to control possible exports, reexports and 
transfers to undesired recipients in parts 744 and 746.
    Response: BIS included L-100 aircraft in ECCN 9A610 to resolve a 
long history of complex jurisdictional and classification issues. 
Controlling existing L-100s in ECCN 9A610, but applying the same 
reasons for control as ECCN 9A991 is consistent with the reasons for 
control that applied to those aircraft historically under ECCN 9A991. 
Therefore, BIS is making no changes in the rule in response to this 
comment.
    Comment: One commenter expressed agreement with and appreciation 
for the clarification of the status of L-100 aircraft and the 501-D22 
engine. The commenter noted that the issue has been an ongoing 
discussion for years. This clarification will help to drive 
consistency.
    Response: BIS agrees.
    Comment: One commenter recommended that DDTC and BIS clarify that 
all non-ship based UAV launching, recovery and landing systems fall 
under ECCN 9A610.u (or another CCL category) or clarify when to use 
ECCN 9A610.u and when to use USML Category VIII(h)(5).
    Response: To clarify where non-ship based launching, recovery, and 
landing systems are controlled, this final rule adds the word 
``runway'' to ECCN 9A610.e to make clear that ECCN 9A610.e controls 
runway-based arresting and systems for all aircraft (whether manned or 
unmanned) that are controlled by either USML Category VIII(a) or ECCN 
9A610.a. Shipboard engagement and arresting systems will continue to be 
controlled under USML Category VIII(d). Mobile land-based arresting and 
engagement systems on runways for manned and unmanned aircraft 
controlled under USML Category VIII(a) or ECCN 9A610.a will be 
controlled by ECCN 9A610.e. ECCN 9A610.u will control all other non-
ship based devices for handling, control, activation, and non-ship-
based launching of UAVs or drones controlled by either USML paragraph 
VIII(a) or ECCN 9A610.a, and capable of a range equal to or greater 
than 300 km.
    This final rule revises ECCN 9A115, which, prior to publication of 
this rule, referred readers only to the ITAR. The revised text alerts 
readers that both the ITAR USML Category VIII(d) and ECCN 9A610.e and 
.u need to be consulted when making jurisdictional and classification 
determinations regarding such items.
    Comment: One commenter noted that the proposed rule incorporated 
text from a technical note that provides guidance on the meaning of the 
term ``ground equipment'' into the regulatory text of 9A610.f. The 
commenter noted that the word ``includes,'' which was in the technical 
note was omitted from proposed paragraph .f. This omission, the 
commenter noted, effectively narrowed the scope of the control from all 
ground equipment to only ground equipment for pressure refueling or to 
facilitate operation in confined areas. The commenter stated that, if 
such was the intent, the word ``other'' should be removed from the 
phrase ``Pressure refueling equipment and other ground equipment 
designed to facilitate operations in confined areas.''
    Response: BIS agrees with the commenter's interpretation. This 
final rule revises the text of paragraph .f to make clear that it 
applies only to pressure refueling equipment and equipment that 
facilitates operations in confined areas that are specially designed 
for military aircraft, i.e., aircraft controlled in USML Category 
VIII(a) or ECCN 9A610.a.
    Comment: One commenter noted that the proposed rule would make 
application of the national security and regional stability reasons for 
control for parts covered by ECCN 9A610.x dependent on the end use. The 
commenter stated that this would cause significant difficulties for 
compliance automation. The commenter noted that

[[Page 83118]]

end use controls normally follow separate logic from CCL controls. 
Another commenter recommended that parts for L-100 aircraft should be 
controlled in 9A991.d. to eliminate confusion when all reasons of 
control are the same. The commenter stated that the proposed change 
leaves confusion on when a 9A610.x part requires NS and RS control.
    Response: The first commenter's perception that, in most instances, 
the EAR treats end-use based license requirements separately from CCL-
based license requirements is correct. Only in a few instances is end 
use a factor to be considered in determining CCL-based license 
requirements. This rule creates an additional such instance with 
respect to aircraft parts that are common to C-130 aircraft and L-100 
aircraft that were manufactured prior to 2013. If such parts are being 
exported or reexported to be installed in a C-130, the national 
security (NS 1) and regional stability (RS 1) reasons for control apply 
in addition to the anti-terrorism and United Nations embargo reasons 
for control. If the parts are being exported or reexported to be 
installed in an L-100 built prior to 2013, only the antiterrorism and 
United Nations embargo reasons for control apply. The proposed rule 
created this structure to maintain the level of control that C-130 
parts had before moving from the USML to the CCL and to retain the 
level of control that applied to L-100s and their parts when controlled 
under ECCN 9A991. BIS acknowledges that the structure is somewhat 
awkward but believes that it is less awkward than classifying these 
parts under two entirely different ECCNs (9A610 and 9A991) depending on 
which aircraft will use them. Given the small number of L-100s still in 
use (in its comment on the proposed rule, the manufacturer stated that 
it produced more than 100 L-100s from 1965 to 1992 and that more than 
50 were still in operation), BIS believes that any problems with 
classification are likely to be small and are likely to diminish as 
existing L-100s are retired from service. Accordingly, BIS is making no 
change to the rule in response to these comments.
    Comment: One commenter recommended that the phrase ``not elsewhere 
specified on the USML, in 9A610.y, or 3A611.y,'' which appeared in the 
text of ECCN 9A610.x in the proposed rule be changed to read ``not 
elsewhere specified on the USML or in another 600 series entry.'' The 
commenter stated that this change would bring 9A610.x into line with 
Supplement No. 4 to part 774--Commerce Control List Order of Review.
    Response: BIS believes that ECCN 9A610.x is consistent with 
Supplement No. 4 to Part 774--Commerce Control List Order of Review 
without the change suggested by this commenter. The order of review 
provides for checking the USML before checking the CCL, checking 600 
series ECCNs and ECCNs ending with the numerals ``515'' before checking 
other ECCNs, and within an ECCN, checking paragraphs that specifically 
enumerate the items they cover before checking paragraphs that describe 
the items they cover by a general description. The reference to 9A610.y 
in 9A610.x serves as a reminder to check the .y paragraph (which 
specifically enumerates the items that it covers) before concluding 
that an item is controlled under 9A610.x. This reminder is useful 
because the paragraphs that precede paragraph .x all specifically 
enumerate the items that they cover whereas 9A610.x covers specially 
designed parts, but not specifically enumerated parts, for military 
aircraft. Readers who review the paragraphs in alphabetical order might 
erroneously conclude when they reach paragraph .x that no additional 
paragraphs that specifically enumerate the items that they control 
follow. The reference to ECCN 3A611.y serves a similar function because 
parts, components, accessories, and attachments enumerated in that 
paragraph might be specially designed for any 600 series ECCN. Although 
it is true that ECCN 9A610.x does not control parts, components, 
accessories, or attachments for items in other ECCNs, this fact is true 
for ECCNs generally. BIS does not believe that an additional reference 
is needed to make this point and is making no change to the rule in 
response to this comment.
    Comment: One commenter stated that the effect on product 
classification of coating an aircraft part with a material controlled 
in USML Category XIII(j)(2) needed to be clarified. The commenter 
expressed a belief that DDTC has taken the position that the part is 
classified under USML Category XIII(j)(2) if any property of the 
material can be discerned after its application to the part is 
complete. The commenter stated that this interpretation can convert 
otherwise ECCN 9A610.x parts into ITAR-controlled and, in some 
instances, significant military equipment. Such an interpretation would 
create significant compliance and classification difficulties because, 
for example, the same part could have two different jurisdictional 
statuses. The commenter recommended that DDTC publish an interpretation 
confirming that XIII(j)(2) controls materials, not parts or components, 
and that BIS revise 9A610 to reinforce this point.
    Response: The issues raised by this comment potentially apply not 
only to ECCN 9A610, but also to ECCNs that are outside the scope of 
this rule. In October 2015, the Department of State and BIS published 
notices of inquiry seeking comments on, inter alia, items controlled in 
USML Category XIII and related ECCNs (see 80 FR 61137 and 80 FR 61138). 
This commenter made a similar comment in response to the Department of 
State notice. Both agencies are now planning proposed rules dealing 
with USML Category XIII and related ECCNs as part of the ECRI's planned 
regular review of USML categories and their regular controls on the 
CCL. BIS believes that proposed rule will be a more appropriate vehicle 
for comprehensively addressing the issue raised by this commenter. 
Therefore, BIS is making no changes to this rule in response to this 
comment.
    Comment: One commenter stated that moving items such as ``specially 
designed'' switches between various 600 series .y lists over time 
creates considerable labor for industry without any corresponding 
change in licensing policy. The commenter recommended that if an item 
is enumerated in 9A610.y or 9A619.y and has an equivalent enumeration 
in 3A611.y, then either ECCN could be allowed. This would allow 
appropriate policy treatment of the item without creating an undue 
burden on industry.
    Response: ECCN 3A611 is the military electronics ECCN. Its .y 
paragraph applies the specific parts listed therein if ```specially 
designed' for a commodity subject to control in a `600 series' ECCN or 
a defense article and not elsewhere specified in any `600 series' ECCN 
or the USML . . . '' (emphasis added). Because all .y paragraphs in the 
600 series are subject to the same level of control, the commenter's 
proposal would simplify classification without compromising any of the 
reasons for imposing likening requirements on 600 series .y items. 
Accordingly this rule revises paragraph .y in ECCN 3A611 to allow, but 
not require, commodities enumerated in that paragraph or in other .y 
paragraphs to be classified either under 3A611.y or the other .y 
paragraph by revising the italicized phrase noted above to read ``not 
elsewhere specified in any paragraph other than the .y paragraph of a 
`600 series' ECCN''.
    To avoid an inconsistent treatment of the similarly structured .x 
to the .y paragraphs, the same change is being made to 3A611.x. This 
will not only be logically consistent with the changes

[[Page 83119]]

made to .y, it will also simplify classification of unspecified parts 
and components specially designed for one 600 series item that are 
likely later to be used on other 600 series items. Because the 
licensing and control policies for all .x items are the same, the 
changes will not compromise any of the reasons for imposing licensing 
requirements on 600 series .x items. In addition, the changes will not 
require any party to alter the existing classification of any item. 
Accordingly, this final rule makes a similar revision to ECCN 3A611.x. 
To highlight and clarify this conforming change, a Note 3 is added to 
3A611.x stating that ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' subject to the EAR and within the scope of any 600 
series .x entry that are of a type that are or would potentially be for 
use in or with multiple platforms (e.g., military electronics, military 
vehicles, and military aircraft) may be classified under 3A611.x for 
the sake of convenience.
    Comment: One commenter recommended that parts identified in 9A610.y 
or 9A619.y but unique to USML Categories XIX(f)(1) listed engines and 
VIII(h)(1) listed aircraft should be excluded from the ITAR and covered 
by the .y paragraph because they are not critical to national security.
    Response: This commenter expressed the same idea in its comments on 
the Department of State proposed rule. Readers may check the Department 
of State final rule for its explanation of its decision not to remove 
these parts from the USML. Because these parts remain on the USML, they 
may not be included in a 600 series ECCN.
    Comment: One commenter recommended that the final subparagraph 
numbers be dropped from the .y paragraphs of ECCN 9A610 and 9A619. The 
commenter stated that doing so would eliminate unnecessary 
reclassification efforts and allow flexibility to accommodate future 
changes. The commenter stated that it has to reclassify thousands of 
parts when a .y subparagraph number changes even though the license 
requirements remain the same.
    Response: BIS believes that including the final subparagraph 
designator in the .y paragraphs is essential to maintaining the 
structure of the CCL and is making no change in response to this 
comment.
    Comment: Several commenters questioned whether the word ``fluid'' 
refers to liquids only or to liquids and gases when used in ECCNs 
9A610.y.8, .y.10 and .y.32 and in 9A619.y.3, .y.4, and .y.8. Others 
said the term should encompass both liquids. Commenters pointed out 
that in physics and engineering, ``fluid'' refers to substances with no 
fixed shape that generally take the shape of their container and that 
yield readily to external pressure. That definition encompasses liquids 
and gases.
    Response: BIS agrees that for purposes of the .y paragraphs on the 
CCL, including in ECCNs 9A610 and 9A619, the term ``fluid'' should 
encompass both liquids and gases. This final rule adds a related 
definition to both ECCNs so stating. The entries do not control fluids 
because the scope of the controls is limited to ``parts,'' 
``components,'' ``accessories,'' ``attachments,'' and other 
commodities, which, by definition, are not fluids. The definition of 
``fluids'' is nonetheless necessary to know when determining the 
classification status of the commodities identified in .y and any other 
entry involving controlled commodities that contain fluids.
    Comment: One commenter recommended removing the word ``fluid'' from 
proposed ECCNs 9A610.y.8, which applies to fluid filters and filter 
assemblies and 9A619.y.4, which applies to fluid hoses, straight and 
unbent lines, fittings, couplings, clamps and brackets, so that they do 
not limit ``.y'' controls to ``fluid'' filters and assemblies because 
``pneumatic'' filters and assemblies are of same or lesser technology 
and should enjoy ``AT'' only controls as well.
    Response: BIS believes that its confirmation that the definition of 
``fluid'' includes both liquids and gases addresses the concern 
expressed in this comment. Therefore, this final retains the adjective 
``fluid.''
    Comment: One commenter recommended adding a new paragraph 
3A611.y.36 for ``clamps and brackets (including block clamps also 
called line blocks, tube supports, or fairlead blocks) for wire 
harnesses, conduit, fluid or pneumatic hoses, lines, tubes, or pipes.'' 
The commenter noted that the same ``specially designed'' clamps and 
brackets could be used for wire harnesses, conduit, pipes, pneumatic 
lines or tubes as well as on both aircraft and engine. The commenter 
stated that because these commodities are basic, commonly used in 
multiple 600 series and other items, they do not warrant national 
security controls and should thus be in 3A611.y if specially designed 
not for a defense article or 600 series item. The commenter suggested 
that, as an alternative, these commodities would be appropriate for 
inclusion in the (b)(2) release within the ``specially designed'' 
definition.
    Response: ECCN 3A611.y is unique among 600 series .y paragraphs in 
that it applies to commodities subject to the EAR named therein if the 
commodity is specially designed for an ITAR controlled defense article 
or any 600 series item, not just those in ECCN 3A611. As noted above, 
this final rule expands the scope of ECCN 3A611.y so that parties may 
classify a commodity under 3A611.y if it is described in both 3A611.y 
and the .y paragraph of some other ECCN. Thus adopting the commenter's 
proposal to add clamps and brackets (including block clamps also called 
line blocks, tube supports, or fairlead blocks) for wire harnesses, 
conduit, fluid or pneumatic hoses, lines, tubes, or pipes to ECCN 
3A611.y would have the effect of making all such items in any 600 
series ECCN controlled under 3A611.y unless enumerated in some other 
600 series ECCN or on the USML. BIS is not adopting this proposal 
because doing so would remove license requirements for commodities that 
are unrelated to military aircraft and military gas turbine engines 
and, thus, outside the scope of this rule. In addition, the commenter 
is, in effect, asserting that all ``clamps and brackets'' used for any 
purpose on any 600 series commodity and on many ITAR defense articles 
have the same level of sensitivity. Without specific evidence that such 
is the case, BIS is not yet willing to make such a sweeping broadening 
of ECCN 3A611.y
    Comment: One commenter recommended adding a new paragraph 
9A610.y.33 and revising 9A619.y.5 to cover ``Clamps for hoses, lines, 
tubes and wires.'' The commenter stated that this change would make 
clear that all clamps are controlled at the .y level whereas the 
placement in 9A610.y.10 in the proposed rule implied that only clamps 
for fluid lines were controlled at that the .y level. The commenter 
stated that this change would align aircraft clamps in ECCN 9A610.y.33 
with engine clamps in ECCN 9A619.y.5.
    Response: BIS is making no changes to ECCN 9A610.y in response to 
this comment. However, for reasons described below, this final rule 
revises 9A619.y.5 to apply to gas turbine engine clamps of all types. 
Such a change is not warranted for aircraft clamps controlled in ECCN 
9A610 because some such clamps carry significant loads and should be 
subject the reasons for control that apply to ECCN 9A610.x. Clamps for 
engines generally do not carry such loads. Therefore, this rule limits 
the applicability of ECCN 9A610.y.10 to clamps for commodities in that 
entry or defense articles in USML Category VIII. This final rule also 
limits the applicability of ECCN 9A619.y to clamps for commodities in 
that entry

[[Page 83120]]

and defense articles in USML Category XIX.
    Comment: One commenter noted that the proposed rule would move 
certain clamps from 9A619.y.5 to 9A619.y.3, a move that would require 
re-classification of a large number of clamps for no technical 
advantage. The proposed rule also would have added check valves to ECCN 
9A619.y.5. The commenter stated that because ``check valves'' are new 
to ECCN 9A619.y, it would be better to move them to a new entry (ECCN 
9A619.y.9) rather than displace clamps from 9A619.y.5.
    Response: BIS agrees with the commenter. As proposed, the rule 
would have caused unnecessary reclassifications. Therefore, this final 
rule places clamps of all types in 9A619.y.5 and check valves for fluid 
systems in 9A619.y.9.
    Comment: One commenter recommended replacing proposed ECCN 
9A619.y.2 (Oil lines and tubes) and ECCN 9A619.y.3 (Fluid hoses, 
straight and unbent lines, fittings, couplings clamps and brackets) 
with one paragraph for ``fluid lines, tubes, and hoses, and related 
fittings of all types'' and another paragraph for clamps and brackets. 
The commenter's reason noted that the proposed rule assigned higher 
control to certain items such as bent lines when related to fluids 
other than oil, while allowing .y benefits to all lines (straight or 
bent) when related to oil (see proposed 9A619.y.3 vs 9A619.y.2). The 
commenter also noted that the proposed rule would remove a particular 
set of clamp types, namely V-band, cushion, broomstick, hinged and loop 
clamps, that currently are in ECCN 9A619.y.5 and would add unspecified 
clamps to 9A619.y.3, creating a new ambiguity. The commenter asserted 
that it is not clear whether the clamps from the previous 9A619.y.5 
that are not for fluid lines now are covered by 9A619.x, or whether all 
clamps are now to be covered by 9A619.y.3.
    Response: As noted above, this final rule includes a paragraph 
designated .y.5 for clamps of all types in ECCN 9A619. The absence of 
any modifiers in that paragraph signifies that the paragraph applies to 
clamps of all types that are specially designed for commodities in 
ECCNs 9A619 or USML Category XIX and not elsewhere specified on the 
USML or CCL. This final rule also removes the adjectives ``straight'' 
and ``unbent'' from the proposed text of ECCN 9A619.y.3. This proposed 
rule does not remove those adjectives from ECCN 9A610.y.10 because some 
of the aircraft fluid lines must withstand high internal pressure 
levels when configured in the shape that will be used in the aircraft. 
Fluid lines used in engines generally do not need to withstand very 
high pressures.
    Comment: Several commenters recommended removing ``shims'' from 
proposed ECCN 9A619.y.6 and explicitly mentioning shims in paragraph 
(b)(2) of the definition of ``specially designed,'' found in Sec.  
772.1 of the EAR. Paragraph (b)(2) identifies several items that are 
excluded from the definition and, thus, from any ECCN paragraph that 
includes the term ``specially designed'' as a control parameter. The 
commenters noted that ``spacers'' are currently in paragraph (b)(2). 
One commenter asserted that shims are a type of spacer. Another 
commenter noted that shims are used to align parts, make them fit, or 
reduce wear. The commenter said that these functions are also performed 
by washers, spacers, and bushings, which are already identified in 
paragraph (b)(2) of the specially designed definition. Because of this 
equivalency of function, including shims in 9A619.y.6 causes confusion. 
One commenter recommended that if shims are retained in a .y paragraph 
they should be clearly differentiated from spacers. One commenter 
asserted that shims are by definition spacers and meet the release 
criteria in the definition of specially designed, but recommended that 
the release be made specific, by adding shims to paragraph (b)(2).
    Response: Although many shims are simple spacing devices, some 
shims that are used in military gas turbine engines have particular 
characteristics that warrant control albeit at the .y level. Therefore, 
BIS is not making any changes to the rule in response to this comment.
    Comment: One commenter recommended that identification plates, 
fluid hoses, straight and unbent lines, fittings, couplings, clamps 
brackets and cockpit or cabin mirrors should be released from the 
specially designed definition because they do not contain any military 
functionality or performance.
    Response: Releasing a part from the specially designed definition 
would, in many cases, remove that part from all coverage on the CCL 
regardless of the end item into which that part is incorporated. In the 
case of 600 series items, doing so would remove all U.S. government 
visibility into the export or reexport of the released parts in 
connection with military related items, not just the items that are the 
subject of this rule. Such an action would be beyond the scope of the 
proposed rule. Accordingly, BIS is making no changes in response to 
this comment.
    Comment: One commenter proposed replacing the phrase ``Fluid hoses, 
straight and unbent lines, fittings, couplings, clamps and brackets'' 
with ``Fluid lines, tubes, and hoses, and fittings, couplings and 
mounting brackets thereof'' in ECCN 9A610.y.10.
    The same commenter also proposed removing the text of proposed 
9A619.y.2 and revising the text of 9A619.y.3 to read the same as 
commenter's proposed text for ECCN 9A610.y.10, i.e., ``Fluid lines, 
tubes, and hoses, and fittings, couplings and mounting brackets 
thereof.''
    The commenter noted that the proposed revision would clarify that 
hoses and lines are for fluid and that any couplings, fitting or 
brackets are specific to those lines or hoses. The commenter stated 
that the current ``. y'' entries for engine and aircraft lines are 
inconsistent. Parts common to the airframe and engine should be treated 
at the same level of control. The current and proposed text of 
9A619.y.2 ``Oil lines and hoses'' could be removed as unnecessary.
    Response: BIS agrees with the commenter that adding a qualifier to 
ECCNs 9A610.y.10 and 9A619.y.3 would clarify the meaning of those 
paragraphs and this final rule adds the word ``therefor'' at the end of 
those paragraphs. This final rule does not make any other change to the 
proposed rule text of ECCN 9A610.y.10. This final rule does, however, 
make two changes ECCN 9A619.y.3, from what was proposed in the February 
9 rule: It removes the terms ``straight and unbent'' and ``clamps.'' 
The term ``straight and unbent'' is removed because gas turbine engine 
fluid lines are typically low to moderate pressure lines that do not 
warrant control under 9A610.x or 9A619.x. whereas fluid lines used 
elsewhere in aircraft may be required to contain very high pressures 
after being bent or formed into their final shape and do warrant 
control under ECCN 9A610.x Accordingly, this final rule limits the 
applicability of ECCN 9A610.y to lines for commodities in that entry or 
defense articles in USML Category VIII. This final rule also limits the 
applicability of ECCN 9A619.y to lines for commodities in that entry 
and defense articles in 9A619.y and USML Category XIX.
    Comment: One commenter suggested deleting the phrase ``cockpit or 
cabin'' from the description of ``aircraft mirrors'' in ECCN 9A610.y.10 
because the technology for mirrors does not change.
    Response: BIS is making no changes to the rule in response to this 
comment. BIS construes cockpit and cabin as used

[[Page 83121]]

in ECCN 9A610.y.10 to encompass all areas of the aircraft to which the 
crew has access while in flight. BIS believes that further 
clarification is not needed.
    Comment: One commenter recommended removing and reserving 
9A610.y.23 (filtered and unfiltered panel knobs) and .y.31 
(identification plates) along with 9A619.y.7 (identification plates) 
because they are duplicates to entries in 3A611.y.
    Response: ECCN 3A611.y.33 controls identification plates and 
nameplates, .y.21 controls filtered and unfiltered mechanical switches, 
and .y.34 controls knobs. As noted above, this final rule revises ECCN 
3A611.y to allow commodities that are controlled in 3A611.y and in 
another ECCN .y paragraph to be classified under 3A611.y. Removing and 
reserving the ECCN 9A610 and 9A619 paragraphs suggested by this 
commenter would have the effect of making this optional procedure 
mandatory--likely compelling some parties to reclassify existing parts. 
In addition, removing ECCN 9A610.y.23--filtered and unfiltered panel 
knobs, indicators, switches, buttons, and dials and, in effect 
replacing it with ECCN 3A611.y.21--filtered and unfiltered mechanical 
switches and .y.34--knobs would change the scope of items covered. 
Therefore, this final rule does not remove and reserve any paragraph of 
ECCNs 9A610 or 9A619. However, BIS agrees that the scope of ECCN 
3A611.y.33 (identification plates and nameplates) should be identical 
with ECCNs 9A610.y.31 and 9A619.y.7, which were proposed in the 
February 9 rule as identification plates. Therefore, this final rule 
adds nameplates to ECCNs 9A610.y.31 and 9A619.y.7.
    Comment: One commenter stated that identification plates do not 
merit control in the 600 series unless they convey ``technology'' or 
``technical data'' and recommended that ECCNs 9A610.y.31 and 9A619.y.7 
be revised to control only identification plates that convey 
``technology'' or ``technical data.''
    Response: Increasingly identification plates for defense articles 
are required to contain codes linking the plate with on-line technical 
data. Therefore, this final rule does not make any changes in response 
to this comment.
    Comment: One commenter stated that marine gas turbine engines are 
not covered by CCL Category 9. The commenter recommended that marine 
gas turbine engines be added to ECCN 9A991.c by removing the word 
``Aero'' or creating a new ECCN in Category 9. The commenter noted that 
USML Category XIX applies to all gas turbine engines and CCL Category 9 
does not.
    Response: Some marine gas turbine engines were controlled in ECCN 
9A002 at the time the proposed rule was published and continue to be 
controlled in that ECCN. Marine gas turbine engines not controlled in 
ECCN 9A002 are EAR99. Therefore, BIS did not follow the commenter's 
suggestion to list marine gas turbine engines in ECCN 9A991. However, 
BIS agrees that more fully specifying where and how marine gas turbine 
engines are controlled under the EAR is desirable. To that end, this 
rule adds a related control note to ECCN 8A992 informing readers that 
marine gas turbine engines are not controlled in paragraph .g of ECCN 
8A992. Rather, such engines may be controlled in ECCNs 9A002 or 9A619.a 
or may be designated EAR99. Paragraph .g of ECCN 8A992 controls certain 
inboard and outboard marine engines other than gas turbine engines.
    Comment: One commenter stated that the word ``equipment'' should be 
removed from the related controls paragraphs in ECCNs 9B610 and 9B619 
to be consistent with the removal of that word from USML Categories 
VIII(h) and XIX(f) in the State Department's proposed rule.
    Response: BIS agrees and this final rule makes those changes.
    Comment: One commenter suggested that the reference in ECCN 9B610 
to Category VIII(h) paragraphs (2)-(26) should to be revised to read 
paragraphs (2)-(30) and that the reference in ECCN 9B619 to Category 
XIX(f) paragraphs (2)-(7) should to be revised to read paragraphs (2)-
(17) to be consistent with the addition of paragraphs (h)(27) through 
(h)(30) and (f)(8) though (f)(12) in the DDTC proposed rule.
    Response: BIS agrees. However, the paragraph numbering in 
Categories VIII(h) and XIX(f) have changed from what was in the 
proposed rule. In this final rule, the related control note in 9B610 
refers to USML Category VIII(h) paragraphs (2)-(28) and the related 
control note in 9B619 refers to Category XIX(f) paragraphs (2)-(11) to 
be consistent with the Department of State final rule.
    Comment: ECCN 9C610 controls materials specially designed for 
commodities controlled in ECCN 9A610. The proposed rule would have 
added materials specially designed for commodities controlled in USML 
Category VIII. ECCN 9C619 controls materials specially designed for 
commodities controlled in ECCN 9A619. The proposed rule would have 
added materials specially designed for commodities controlled in USML 
Category XIX.
    One commenter stated that the proposed change could cause materials 
developed decades ago and that are in widespread commercial use to be 
controlled as military items because companies may not be able to 
definitively prove that these materials were not developed to have 
properties peculiarly responsible for achieving or exceeding the 
performance levels, characteristics, or functions in the relevant ECCN 
or USML paragraph. The commenter cited Alloy 454, DS 1000 and yttrium 
oxide stabilized zirconium oxide as examples of such materials. This 
commenter made a similar comment regarding USML Category XIX in the 
Department of State proposed rule. The commenter asserted that 
paragraphs (f)(13) through (15) in that category would place on the 
USML materials that are currently controlled in ECCN 9A619 or even 
materials that are EAR99.
    Response: BIS does not believe the changes proposed in this comment 
are necessary because ECCNs 9C610 and 9C619 already contain notes 
stating: ``Materials enumerated elsewhere in the CCL . . . are 
controlled pursuant to controls of the applicable ECCN.'' In addition, 
this final rule includes a new paragraph .b of ECCN 9C619 to reference 
the materials proposed by the Department of State in USML Category 
XIX(f)(13) through (15). This final rule also adds a new note 3 to ECCN 
9C619, which provides that materials that are used in engines that are 
or have been in production and are not enumerated or otherwise 
described on the USML or ECCN 9A619 are not subject to ECCN 9C619. To 
avoid confusion, this final rule makes clear that existing note 2 to 
ECCN 9C619, which states that materials used in engines controlled in 
USML Category XIX and ECCN 9A619 are controlled in ECCN 9C619, applies 
only to materials described in paragraph .a of that entry.
    This rule also adds technology for the ``development,'' 
``production,'' operation, installation, maintenance, repair, overhaul, 
or refurbishing of materials controlled in ECCN 9C619.b to ECCN 
9E619.b, which imposes the national security (NS Column 1), regional 
stability (RS Column 1), antiterrorism (AT Column 1) and United Nations 
embargo reasons for control on the technology and limits use of License 
Exception STA to ``build to print'' technology.
    Comment: One commenter questioned the criteria in Category 
VIII(a)(14) of the Department of State proposed rule, which applies to 
certain cargo and

[[Page 83122]]

transport aircraft. The commenter noted that L-100 aircraft 
manufactured prior to 2013 were expressly excluded from Category 
VIII(a)(14) and expressly included in ECCN 9A610.b even though the L-
100 is just as capable as the LM-100J in carrying payloads over 35,000 
lbs. to ranges over 2,000 nautical miles with the same roll-on/roll-off 
and landing/takeoff capability. The commenter suggested that similar 
treatment would be appropriate for the planned but not yet produced LM-
100J. The commenter stated that the LM-100J is a modern version of the 
L-100. The commenter questioned whether the criteria of a roll-on/roll-
off ramp, range, payload and ability to land on short or unimproved 
airfields are appropriate for distinguishing military from civil cargo 
aircraft and pointed out that the L-100 is capable of meeting those 
criteria, but would be controlled on the CCL under the proposed rules. 
The commenter cited several potential civil end uses including: ``heavy 
equipment and fuel delivery; firefighting and search & rescue.'' The 
commenter also noted that certain military related items do not appear 
on the LM-100J but do appear on the military C-130J from which it is 
derived. Those items relate to radar, communications, protection from 
ground fire, and paratroop operations.
    Response: The criteria of a roll-on/roll-off ramp, range, payload 
and ability to land on short or unimproved airfields are valuable 
military capabilities that enable supplying troops operating in areas 
that lack modern infrastructure. As noted above, the classification of 
L-100s manufactured prior to 2013 under ECCN 9A610.b was a measure 
adopted to promote consistency with prior classifications of a small 
number of airplanes, all of which are more than 20 years old. The LM-
100J is a new design, derived from the C-130J that incorporates many 
modern features common to both aircraft.
    To resolve the LM-100J classification issues while still 
maintaining an appropriate level of control over the export of such 
aircraft, this final rule revises the Note 1 in ECCN 9A610 to expressly 
include the LM-100J in paragraph .a, thereby treating it as a 600 
series military aircraft. The Department of State final rule explicitly 
excludes the LM-100J from Category VIII(a)(14). This classification 
will retain the license requirement for all destinations except Canada 
and, like all other aircraft controlled under ECCN 9A610.a, License 
Exception STA will not be available for the LM-100J aircraft unless 
such use is approved pursuant to the procedures set forth in Sec.  
740.20(g) of the EAR.
    Comment: The proposed rule would have removed related control note 
number 2 from ECCN 9E619. That note reads: ``Technology described in 
ECCN 9E003 is controlled by that ECCN.'' BIS made this proposal because 
of concerns that including that non-600 series ECCN might mislead 
readers into thinking that the order of review might not apply in this 
instance. One commenter expressed approval of this change stating that 
it ``will simplify the Order of Review analysis.'' Further, the 
commenter believed that the change will have no significant impact on 
licensing requirements because the technologies of concern in ECCN 
9E003 are mirrored in ECCN 9E619.c, which has similar licensing 
requirements.
    Response: BIS agrees and the final rule adopts the removal of that 
text.
    Comment: In the Department of State proposed rule, USML category 
VIII(h)(7) read: ``Damage or failure-adaptive flight control systems, 
that do not consist solely of redundant internal circuitry, specially 
designed for aircraft controlled in [Category VIII of the USML] . . . 
and specially designed parts and components therefor.'' One commenter 
on that rule stated that the phrase ``specially designed parts and 
components therefor'' would effectively re-control on the USML parts 
that had previously been moved to ECCN 9A610.x.
    Response: The Department of State agreed and its final rule removes 
the phrase ``specially designed parts and components therefor'' from 
Category VIII(h)(7). As a result, BIS retains control of such parts and 
components controlled in ECCN 9A610.x. The technology for the 
development or production of such parts and components is retained 
under ECCN 9E610. However, this rule revises ECCN 9E610 because of the 
sensitivity of the technology for the development or production of 
those parts and components. This final rule makes 9E610 technology 
(other than ``build-to-print'' technology) required for either the 
``development'' or ``production'' of ``specially designed'' parts or 
components controlled in 9A610.x for damage or failure-adaptive flight 
control systems controlled in USML Category VIII(h)(7) ineligible for 
License Exception STA. Currently the technology required for the 
``development'' and ``production'' of ``specially designed'' parts or 
components controlled in 9A610.x or failure-adaptive flight control 
systems controlled in Category VIII(h)(7) of the USML is controlled in 
ECCN 9E610.a. Upon its effective date, this rule will specifically 
enumerate that technology in ECCN 9E610.b, limiting its STA eligibility 
to ``build to print'' technology.
    Comment: Two commenters proposed that a transition plan be 
published. One commenter noted that implementing the proposed changes 
would require resources and effort and noted that a transition period 
would not only permit US applicants to submit the appropriate ITAR 
export authorizations, but also allow foreign companies to request 
authorizations from the US applicants. The other commenter recommended 
one year to implement regulatory changes. It stated that one year will 
be needed because of the volume of items that will have to be 
reclassified. This commenter also recommended a three-year period 
during which EAR licenses, license exceptions and NLR may be used for 
items moving from the EAR to the ITAR.
    Response: The Department of State will be publishing a transition 
plan.

Technical and Conforming Changes

    This rule also updates the text of ECCN 9A610.w to reflect 
amendments made to that paragraph since the February 9 rule was 
published by adding references to ``pneumatic'' and ``fly-by-light'' 
flight control systems (see 81 FR 19026, April 4, 2016). These 
additions were made to align the descriptions in ECCN 9A610.w with the 
description of such systems in the current Equipment, Software And 
Technology Annex of the MTCR.

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. BIS continues to carry out 
the provisions of the Export Administration Act, as appropriate and to 
the extent permitted by law, pursuant to Executive Order 13222 as 
amended by Executive Order 13637.

Rulemaking Requirements

    1. Executive Orders 13563 and 12866 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distribute impacts, and equity).

[[Page 83123]]

Executive Order 13563 emphasizes the importance of quantifying both 
costs and benefits, of reducing costs, of harmonizing rules, and of 
promoting flexibility. This rule has been designated a ``significant 
regulatory action,'' although not economically significant, under 
section 3(f) of Executive Order 12866. Accordingly, the rule has been 
reviewed by the Office of Management and Budget (OMB).
    2. Notwithstanding any other provision of law, no person is 
required to respond to, nor is subject to a penalty for failure to 
comply with, a collection of information, subject to the requirements 
of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), 
unless that collection of information displays a currently valid OMB 
control number. This final rule would affect one approved collection: 
Simplified Network Application Processing + System (control number 
0694-0088), which includes, among other things, license applications. 
This collection carries an annual burden hour estimate of 31,833 hours. 
BIS believes that this final rule will not materially affect the total 
number of burden hours. This rule makes certain aircraft and parts, 
components, accessories and attachments that currently are subject to 
the ITAR subject to the EAR. To the extent that this change results in 
an increase in the number of export license applications submitted to 
BIS, there is likely to be a corresponding reduction in the number of 
license applications submitted to the Department of State, Directorate 
of Defense Trade Controls. This rule also creates a license requirement 
to only eight destinations for some aircraft and engine parts and 
components that currently require a license to all destinations other 
than Canada. To the extent that this affects the annual burden hours 
associated this collection, the effect is likely to be a reduction in 
burden hours. Send comments regarding this burden estimate or any other 
aspect of this collections of information, including suggestions for 
reducing the burden, to Jasmeet K. Seehra, Office of Management and 
Budget, by email at jseehra@omb.eop.gov or by fax to (202) 395-7285 and 
to William Arvin, BIS, at william.arvin@bis.doc.gov.
    3. This rule does not contain policies with Federalism implications 
as that term is defined under E.O. 13132.
    4. The Regulatory Flexibility Act (RFA), as amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 
601 et seq., generally requires an agency to prepare a regulatory 
flexibility analysis of any rule subject to the notice and comment 
rulemaking requirements under the Administrative Procedure Act (5 
U.S.C. 553) or any other statute. Under section 605(b) of the RFA, 
however, if the head of an agency certifies that a rule will not have a 
significant impact on a substantial number of small entities, the 
statute does not require the agency to prepare a regulatory flexibility 
analysis. Pursuant to section 605(b), the Chief Counsel for Regulation, 
Department of Commerce, certified to the Chief Counsel for Advocacy, 
Small Business Administration at the proposed rule stage that this rule 
would not have a significant impact on a substantial number of small 
entities. The rationale for that certification is at 81 FR 6793 
(February 9, 2016) and is not repeated here. BIS received no comments 
on the certification. Consequently, BIS has not prepared a final 
regulatory flexibility analysis.

List of Subjects

15 CFR Part 770

    Exports.

15 CFR Part 774

    Exports, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, parts 770 and 774 of the 
Export Administration Regulations (15 CFR parts 730-774) are amended as 
follows:

PART 770-[AMENDED]

0
1. The authority citation for 15 CFR 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
2. Section 770.2 is amended by adding paragraph (n) to read as follows:


Sec.  770.2  Item interpretations.

* * * * *
    (n) Interpretation 14: Unfinished ``600 series'' commodities. 
Forgings, castings, and other unfinished products, such as extrusions 
and machined bodies, that have reached a stage in manufacturing where 
they are clearly identifiable by mechanical properties, material 
composition, geometry, or function as commodities controlled by any 
Product Group A (``End Items,'' ``Equipment,'' ``Accessories,'' 
``Attachments,'' ``Parts,'' ``Components'' and ``Systems'') ``600 
series'' ECCN are controlled in that ``600 series'' ECCN.

PART 774--[AMENDED]

0
3. The authority citation for 15 CFR 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; 42 U.S.C. 2139a; 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).

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

ECCN 0A604--[Amended]

0
4. In in Supplement No. 1 to part 774, ECCN 0A604, remove Note 1 to 
0A604.x and redesignate Note 2 to 0A604.x as Note to 0A604.x.

ECCN 0A614--[Amended]

0
5. In ECCN 0A614, remove Note 3 to 0A614.

0
6. In ECCN 3A611, in the ``List of Items Controlled'' section, 
``Items'' paragraph, revise paragraph .x and revise paragraph .y, 
introductory text, to read as follows:

3A611 Military electronics, as follows (see List of Items 
Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    x. ``Parts,'' ``components,'' ``accessories,'' and 
``attachments'' that are ``specially designed'' for a commodity 
controlled by this entry or for an article controlled by USML 
Category XI, and not enumerated or described in any USML category or 
in any paragraph other than the .x paragraph of another 600 series 
ECCN or in paragraph .y of this entry.

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


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


    Note 3 to ECCN 3A611.x:
    ``Parts,'' ``components,'' ``accessories,'' and ``attachments'' 
subject to the EAR and within the scope of any 600 series .x entry 
that are of a type that are or would potentially be for use in or 
with multiple platforms (e.g.,

[[Page 83124]]

military electronics, military vehicles, and military aircraft) may 
be classified under 3A611.x.

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

0
7. In ECCN 8A992, revised the related controls paragraph to read as 
follows:

8A992 Vessels, marine systems or equipment, not controlled by 8A001 
or 8A002, and ``specially designed'' ``parts'' and ``components'' 
therefor, and marine boilers and ``parts,'' ``components,'' 
``accessories,'' and ``attachments'' therefor (see List of Items 
Controlled).
* * * * *

List of Items Controlled

Related Controls: 1. See also 8A002. 2. Marine gas turbine engines 
are not controlled in paragraph .g of this entry. See ECCN 9A619 for 
possible controls on marine gas turbine engines specially designed 
for a military use. See ECCN 9A002 for possible controls on marine 
gas turbine engines not specially designed for a military use. 
Marine gas turbine engines subject to the EAR that are not 
controlled in ECCNs 9A002 or 9A619 are designated EAR99.
* * * * *

0
8. Revise ECCN 9A115 to read as follows:

9A115 Apparatus, devices and vehicles, designed or modified for the 
transport, handling, control, activation and launching of rockets, 
missiles, and unmanned aerial vehicles capable of achieving a 
``range'' equal to or greater than 300 km. (Some of these items are 
controlled in ECCN 9A610; others are ``subject to the ITAR.'' See 22 
CFR parts 120 through 130.)

ECCN 9A604--[Amended]

0
9. In ECCN 9A604, remove Note 1 to 9A604.x and redesignate Note 2 to 
9A604.x as Note to 9A604.x.

0
10. In ECCN 9A610, revise the ``Control(s)'' table in the ``License 
Requirements'' section and the ``List of Items Controlled'' section to 
read as follows:

9A610 Military aircraft and related commodities, other than those 
enumerated in 9A991.a (see List of Items Controlled).

License Requirements

* * * * *

 
                                              Country Chart  (See Supp.
                Control(s)                       No. 1 to  part 738)
 
NS applies to entire entry except:          NS Column 1
 9A610.b; parts and components controlled
 in 9A610.x if being exported or
 reexported for use in an aircraft
 controlled in 9A610.b; and 9A610.y.
RS applies to entire entry except:          RS Column 1
 9A610.b; parts and components controlled
 in 9A610.x if being exported or
 reexported for use in an aircraft
 controlled in 9A610.b; and 9A610.y.
MT applies to 9A610.t, .u, .v, and .w.....  MT Column 1
AT applies to entire entry................  AT Column 1.
UN applies to entire entry except 9A610.y.  See Sec.   746.1(b) for UN
                                             controls.
 

* * * * *

List of Items Controlled

Related Controls: (1) Military aircraft and related articles that 
are enumerated in USML Category VIII, and technical data (including 
software) directly related thereto, are subject to the ITAR. (2) See 
ECCN 0A919 for controls on foreign-made ``military commodities'' 
that incorporate more than a de minimis amount of U.S.-origin ``600 
series'' controlled content. (3) See USML Category XIX and ECCN 
9A619 for controls on military aircraft gas turbine engines and 
related items.
Related Definitions: In paragraph .y of this entry, the term `fluid' 
includes liquids and gases.
Items: a. `Military Aircraft' ``specially designed'' for a military 
use that are not enumerated in USML paragraph VIII(a).

    Note 1: For purposes of paragraph .a the term `military 
aircraft' means the LM-100J aircraft and any aircraft ``specially 
designed'' for a military use that are not enumerated in USML 
paragraph VIII(a). The term includes: Trainer aircraft; cargo 
aircraft; utility fixed wing aircraft; military helicopters; 
observation aircraft; military non-expansive balloons and other 
lighter than air aircraft; and unarmed military aircraft, regardless 
of origin or designation. Aircraft with modifications made to 
incorporate safety of flight features or other FAA or NTSB 
modifications such as transponders and air data recorders are 
``unmodified'' for the purposes of this paragraph .a.


    Note 2: 9A610.a does not control `military aircraft' that:
    a. Were first manufactured before 1946;
    b. Do not incorporate defense articles enumerated or otherwise 
described on the U.S. Munitions List, unless the items are required 
to meet safety or airworthiness standards of a Wassenaar Arrangement 
Participating State; and
    c. Do not incorporate weapons enumerated or otherwise described 
on the U.S. Munitions List, unless inoperable and incapable of being 
returned to operation.

    b. L-100 aircraft manufactured prior to 2013.
    c.-d. [Reserved]
    e. Mobile aircraft arresting and engagement runway systems for 
aircraft controlled by either USML Category VIII(a) or ECCN 9A610.a
    f. Pressure refueling equipment and equipment that facilitates 
operations in confined areas, ``specially designed'' for aircraft 
controlled by either USML paragraph VIII(a) or ECCN 9A610.a.
    g. Aircrew life support equipment, aircrew safety equipment and 
other devices for emergency escape from aircraft controlled by 
either USML paragraph VIII(a) or ECCN 9A610.a.
    h. Parachutes, paragliders, complete parachute canopies, 
harnesses, platforms, electronic release mechanisms, ``specially 
designed'' for use with aircraft controlled by either USML paragraph 
VIII(a) or ECCN 9A610.a, and ``equipment'' ``specially designed'' 
for military high altitude parachutists, such as suits, special 
helmets, breathing systems, and navigation equipment.
    i. Controlled opening equipment or automatic piloting systems, 
designed for parachuted loads.
    j. Ground effect machines (GEMS), including surface effect 
machines and air cushion vehicles, ``specially designed'' for use by 
a military.
    k. through s. [Reserved]
    t. Composite structures, laminates, and manufactures thereof 
``specially designed'' for unmanned aerial vehicles controlled under 
USML Category VIII(a) with a range equal to or greater than 300 km.

    Note to paragraph .t: Composite structures, laminates, and 
manufactures thereof ``specially designed'' for unmanned aerial 
vehicles controlled under USML Category VIII(a) with a maximum range 
less than 300 km are controlled in paragraph .x of this entry.

    u. Apparatus and devices ``specially designed'' for the 
handling, control, activation and non-ship-based launching of UAVs 
or drones controlled by either USML paragraph VIII(a) or ECCN 
9A610.a, and capable of a range equal to or greater than 300 km.

    Note to paragraph .u: Apparatus and devices ``specially 
designed'' for the handling, control, activation and non-ship-based 
launching of UAVs or drones controlled by either USML paragraph 
VIII(a) or ECCN 9A610.a with a maximum range less than 300 km are 
controlled in paragraph .x of this entry.

    v. Radar altimeters designed or modified for use in UAVs or 
drones controlled by either USML paragraph VIII(a) or ECCN 9A610.a., 
and capable of delivering at least 500 kilograms payload to a range 
of at least 300 km.

    Note to paragraph .v: Radar altimeters designed or modified for 
use in UAVs or drones controlled by either USML paragraph VIII(a) or 
ECCN 9A610.a. that are not capable of delivering at least 500 
kilograms payload to a range of at least 300 km are controlled in 
paragraph .x of this entry.


[[Page 83125]]


    w. Pneumatic hydraulic, mechanical, electro-optical, or 
electromechanical flight control systems (including fly-by-wire and 
fly-by-light systems) and attitude control equipment designed or 
modified for UAVs or drones controlled by either USML paragraph 
VIII(a) or ECCN 9A610.a., and capable of delivering at least 500 
kilograms payload to a range of at least 300 km.

    Note to paragraph .w. Pneumatic, hydraulic, mechanical, electro-
optical, or electromechanical flight control systems (including fly-
by-wire and fly-by-light systems) and attitude control equipment 
designed or modified for UAVs or drones controlled by either USML 
paragraph VIII(a) or ECCN 9A610.a., not capable of delivering at 
least 500 kilograms payload to a range of at least 300 km are 
controlled in paragraph .x of this entry.

    x. ``Parts,'' ``components,'' ``accessories,'' and 
``attachments'' that are ``specially designed'' for a commodity 
enumerated or otherwise described in ECCN 9A610 (except for 9A610.y) 
or a defense article enumerated or otherwise described in USML 
Category VIII and not elsewhere specified on the USML or in 9A610.y, 
9A619.y, or 3A611.y.
    y. Specific ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' ``specially designed'' for a commodity subject to 
control in this entry, ECCN 9A619, or for a defense article in USML 
Categories VIII or XIX and not elsewhere specified in the USML or 
the CCL, and other aircraft commodities ``specially designed'' for a 
military use, as follows, and ``parts,'' ``components,'' 
``accessories,'' and ``attachments'' ``specially designed'' 
therefor:
    y.1. Aircraft tires;
    y.2. Analog gauges and indicators;
    y.3. Audio selector panels;
    y.4. Check valves for hydraulic and pneumatic systems;
    y.5. Crew rest equipment;
    y.6. Ejection seat mounted survival aids;
    y.7. Energy dissipating pads for cargo (for pads made from paper 
or cardboard);
    y.8. Fluid filters and filter assemblies;
    y.9. Galleys;
    y.10. Fluid hoses, straight and unbent lines (for a commodity 
subject to control in this entry or defense article in USML Category 
VIII), and fittings, couplings, clamps (for a commodity subject to 
control in this entry or defense article in USML Category VIII) and 
brackets therefor;
    y.11. Lavatories;
    y.12. Life rafts;
    y.13. Magnetic compass, magnetic azimuth detector;
    y.14. Medical litter provisions;
    y.15. Cockpit or cabin mirrors;
    y.16. Passenger seats including palletized seats;
    y.17. Potable water storage systems;
    y.18. Public address (PA) systems;
    y.19. Steel brake wear pads (does not include sintered mix or 
carbon/carbon materials);
    y.20. Underwater locator beacons;
    y.21. Urine collection bags/pads/cups/pumps;
    y.22. Windshield washer and wiper systems;
    y.23. Filtered and unfiltered panel knobs, indicators, switches, 
buttons, and dials;
    y.24. Lead-acid and Nickel-Cadmium batteries;
    y.25. Propellers, propeller systems, and propeller blades used 
with reciprocating engines;
    y.26. Fire extinguishers;
    y.27. Flame and smoke/CO2 detectors;
    y.28. Map cases;
    y.29. `Military Aircraft' that were first manufactured from 1946 
to 1955 that do not incorporate defense articles enumerated or 
otherwise described on the U.S. Munitions List, unless the items are 
required to meet safety or airworthiness standards of a Wassenaar 
Arrangement Participating State; and do not incorporate weapons 
enumerated or otherwise described on the U.S. Munitions List, unless 
inoperable and incapable of being returned to operation;
    y.30. ``Parts,'' ``components,'' ``accessories,'' and 
``attachments,'' other than electronic items or navigation 
equipment, for use in or with a commodity controlled by ECCN 
9A610.h;
    y.31. Identification plates and nameplates; and
    y.32. Fluid manifolds.


0
11. In ECCN 9A619, the List of Items Controlled section is amended by:
0
a. Revising the ``Related Controls'' paragraph;
0
b. Revising the ``Related Definitions'' paragraph;
0
c. Removing the note that immediately follows paragraph .e in the 
``Items'' paragraph;
0
d. Revising paragraph .x in the ``Items'' paragraph; and
0
e. Revising paragraph .y in the ``Items'' paragraph.
    The revisions read as follows:

9A619 Military gas turbine engines and related commodities (see List 
of Items Controlled).
* * * * *

List of Items Controlled

Related Controls: (1) Military gas turbine engines and related 
articles that are enumerated or otherwise described in USML Category 
XIX, and technical data (including software) directly related 
thereto, are subject to the jurisdiction of the International 
Traffic in Arms Regulations (ITAR). (2) Gas turbine engines 
designated 501-D22 are controlled in ECCN 9A991.d regardless of the 
aircraft type into which they will be installed. (3) See ECCN 0A919 
for foreign-made ``military commodities'' that incorporate more than 
a de minimis amount of U.S.-origin ``600 series'' controlled 
content. (4) ``Parts,'' ``components,'' ``accessories,'' and 
``attachments'' specified in USML Category XIX(f) are subject to the 
controls of that paragraph. (5) ``Parts,'' ``components,'' 
``accessories,'' and ``attachments'' specified in ECCN 9A619.y are 
subject to the controls of that paragraph.
Related Definitions: In paragraph .y of this entry, the term `fluid' 
includes liquids and gases.
* * * * *
Items:
* * * * *
    x. Parts,'' ``components,'' ``accessories,'' and ``attachments'' 
that are ``specially designed'' for a commodity controlled by this 
ECCN 9A619 (other than ECCN 9A619.c) or for a defense article 
enumerated in USML Category XIX and not specified elsewhere on the 
USML or in ECCN 3A611.y, 9A610.y or 9A619.y.

    Note to paragraph .x: ``Parts,'' ``components,'' 
``accessories,'' and ``attachments'' specified in USML subcategory 
XIX(f) are subject to the controls of that paragraph. ``Parts,'' 
``components,'' ``accessories,'' and ``attachments'' specified in 
ECCN 3A611.y, 9A610.y or 9A619.y are subject to the controls of that 
paragraph.

    y. Specific ``parts,'' ``components,'' ``accessories,'' and 
``attachments'' ``specially designed'' for a commodity subject to 
control in this entry, ECCN 9A610, or for a defense article in USML 
Category VIII or Category XIX and not elsewhere specified on the 
USML or in the CCL, and other commodities, as follows, and 
``parts,'' ``components,'' ``accessories,'' and ``attachments'' 
``specially designed'' therefor:
    y.1. Oil tank and reservoirs;
    y.2. Oil lines and tubes;
    y.3. Fluid hoses, and lines (for a commodity subject to control 
in this entry or a defense article in USML Category XIX), fittings, 
couplings, and brackets therefor;
    y.4. Fluid filters and filter assemblies;
    y.5. Clamps (for a commodity subject to control in this entry or 
a defense article in USML Category XIX);
    y.6. Shims;
    y.7. Identification plates and nameplates;
    y.8. Fluid manifolds; and
    y.9. Check valves for fluid systems.

ECCN 9A620--[Amended]

0
12. In ECCN 9A620, remove the note to 9A620.b that immediately follows 
paragraph .x.

0
13. In ECCN 9B610, revise the ``Related Controls'' paragraph in the 
List of Items Controlled section to read as follows:

9B610 Test, inspection, and production ``equipment'' and related 
commodities ``specially designed'' for the ``development'' or 
``production'' of commodities enumerated or otherwise described in 
ECCN 9A610 or USML Category VIII (see List of Items Controlled).
* * * * *

List of Items Controlled

Related Controls: USML Category VIII(h)(1) controls ``parts,'' 
``components,'' ``accessories,'' and ``attachments'' ``specially 
designed'' for the aircraft enumerated or otherwise described in 
Category VIII(h)(1), but does not control the commodities enumerated 
or otherwise described in ECCN 9B610. USML Category VIII(h)(2)-(28) 
controls other aircraft ``parts,'' ``components,'' ``accessories,'' 
``attachments,'' and ``systems.''
* * * * *

[[Page 83126]]


0
14. In ECCN 9B619, revise the ``Related Controls'' paragraph in the 
List of Items Controlled section to read as follows:

9B619 Test, inspection, and production ``equipment'' and related 
commodities ``specially designed'' for the ``development'' or 
``production'' of commodities enumerated or otherwise described in 
ECCN 9A619 or USML Category XIX (see List of Items Controlled).
* * * * *

List of Items Controlled

Related Controls: USML Category XIX(f)(1) controls ``parts,'' 
``components,'' ``accessories,'' and ``attachments'' ``specially 
designed'' for the engines described in Category XIX(f)(1), but does 
not control the commodities enumerated or otherwise described in 
ECCN 9B619. USML Category XIX(f)(2)-(11) controls other engine 
``parts,'' ``components,'' ``accessories,'' ``attachments,'' and 
``systems.''
* * * * *

0
15. In ECCN 9C610, revise the heading, and the ``Items'' paragraph of 
the ``List of Items Controlled'' section to read as follows:

9C610 Materials ``specially designed'' for commodities controlled by 
USML Category VIII or ECCN 9A610 and not elsewhere specified in the 
CCL or the USML (see List of Items Controlled).
* * * * *

List of Items Controlled

    * * *
Items: a. Materials not elsewhere specified in the USML or the CCL 
and ``specially designed'' for commodities enumerated or otherwise 
described in USML Category VIII or ECCN 9A610 (except 9A610.y).

    Note 1: Materials enumerated elsewhere in the CCL, such as in a 
CCL Category 1 ECCN, are controlled pursuant to controls of the 
applicable ECCN.


     Note 2: Materials ``specially designed'' for both aircraft 
enumerated in USML Category VIII and aircraft enumerated in ECCN 
9A610 are subject to the controls of this ECCN

    b. [Reserved]

0
16. In ECCN 9C619, revise the heading, and the ``Items'' paragraph of 
the ``List of Items Controlled'' section to read as follows:

9C619 Materials ``specially designed'' for commodities controlled by 
USML Category XIX or ECCN 9A619 and not elsewhere specified in the 
CCL or on the USML (see List of Items Controlled).
* * * * *

List of Items Controlled

    * * *
Items:
    a. Materials not controlled by paragraph .b of this entry and 
not elsewhere specified in the CCL or on the USML, and ``specially 
designed'' for commodities enumerated or otherwise described in USML 
Category XIX or ECCN 9A619 (except 9A619.y).
    b. Materials ``specially designed'' for use in certain gas 
turbine engines, as follows:
    b.1. Powders ``specially designed'' for thermal or environmental 
barrier coating of defense articles enumerated or described in USML 
Category XIX paragraphs (f)(1)-(f)(4) for engines listed in (f)(1);
    b.2. Superalloys (i.e., nickel, cobalt or iron based), used in 
directionally solidified or single crystal casting, ``specially 
designed'' for defense articles enumerated or described in USML 
Category XIX paragraphs (f)(1)-(f)(4) for engines listed in 
paragraph (f)(1); or
    b.3. Imide matrix, metal matrix, or ceramic matrix composite 
material (i.e., reinforcing fiber combined with a matrix) 
``specially designed'' for defense articles enumerated or described 
in USML Category XIX paragraphs (f)(1)-(f)(4) for engines listed in 
paragraph (f)(1).

     Note 1: Materials enumerated elsewhere in the CCL, such as in a 
CCL Category 1 ECCN, are controlled pursuant to the controls of the 
applicable ECCN.


     Note 2: Materials described in paragraph .a of this entry that 
are ``specially designed'' for both an engine enumerated in USML 
Category XIX and an engine enumerated in ECCN 9A619 are subject to 
the controls of this ECCN 9C619


    Note 3: Materials described in this entry that are or have been 
used in gas turbine engines in production (i.e., not in development) 
that are not enumerated or otherwise described on the USML or ECCN 
9A619 are not controlled by this entry.


0
17. In ECCN 9E610, in the ``List of Items Controlled'' section, the 
``Items'' paragraph is amended by:
0
a. Removing the word ``or'' from the end of paragraph .b.13;
0
b. Removing the period from the end of paragraph .b.14 and adding in 
its place a semicolon followed by the word ``or''; and
0
c. Adding paragraph .b.15.
    The addition reads as follows.

9E610 Technology ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of military aircraft and related 
commodities controlled by 9A610, equipment controlled by 9B610, 
materials controlled by 9C610, or software controlled by 9D610 (see 
List of Items Controlled).
* * * * *

List of Items Controlled

* * * * *
Items:
* * * * *
    b. * * *
    b.15. Technology ``required'' for the ``development'' or 
``production'' of ``parts'' or ``components'' controlled in 9A610.x 
and ``specially designed'' for damage or failure-adaptive flight 
control systems controlled in Category VIII(h)(7) of the USML.
* * * * *

0
18. In ECCN 9E619, the ``List of Items Controlled'' section is amended 
by revising the ``Related Controls'' paragraph, and in the ``Items'' 
paragraph:
0
a. Revising the Note that immediately follows paragraph .a;
0
b. Removing the word ``or'' from the end of paragraph .b.8;
0
c. Removing the period from the end of paragraph .b.9 and adding in its 
place a semicolon followed by the word ``or''; and
0
d. Adding paragraph b.10.
    The revision and addition read as follows:

9E619 ``Technology'' ``required'' for the ``development,'' 
``production,'' operation, installation, maintenance, repair, 
overhaul, or refurbishing of military gas turbine engines and 
related commodities controlled by 9A619, equipment controlled by 
9B619, materials controlled by 9C619, or software controlled by 
9D619 (see List of Items Controlled).
* * * * *

List of Items Controlled

    Related Controls: Technical data directly related to articles 
enumerated or otherwise described in USML Category XIX are subject 
to the control of USML Category XIX(g).
* * * * *
Items:
    * * *

    Note: ``Build-to-print technology'' ``required'' for the 
``production'' of items described in paragraphs b.1 through b.10 of 
this entry is classified under 9E619.a.

    b. * * *
    b.10. Materials controlled by ECCN 9C619.b.

    Dated: November 8, 2016.
Kevin J. Wolf,
Assistant Secretary for Export Administration.
[FR Doc. 2016-27777 Filed 11-18-16; 8:45 am]
 BILLING CODE 3510-33-P