International Traffic in Arms Regulations: U.S. Munitions List Categories I, II, and III, 3819-3833 [2020-00574]
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Federal Register / Vol. 85, No. 15 / Thursday, January 23, 2020 / Rules and Regulations
has reviewed this action for factors and
circumstances in which a normally
categorically excluded action may have
a significant environmental impact
requiring further analysis. The FAA has
determined no extraordinary
circumstances exist that warrant
preparation of an environmental
assessment or environmental impact
study.
List of Subjects in 14 CFR Part 71
Authority: 49 U.S.C. 106(g), 40103, 40113,
40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–
1963 Comp., p. 389.
The Amendment
In consideration of the foregoing, the
Federal Aviation Administration
amends 14 CFR part 71 as follows:
§ 71.1
[Amended]
PART 71—DESIGNATION OF CLASS A,
B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND
REPORTING POINTS
2. The incorporation by reference in
14 CFR 71.1 of FAA Order 7400.11D,
Airspace Designations and Reporting
Points, dated August 8, 2019, and
effective September 15, 2019, is
amended as follows:
1. The authority citation for part 71
continues to read as follows:
Paragraph 6011 United States Area
Navigation Routes.
■
■
Airspace, Incorporation by reference,
Navigation (air).
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[FR Doc. 2020–00995 Filed 1–22–20; 8:45 am]
BILLING CODE 4910–13–P
22 CFR Parts 121, 123, 124, 126, and
129
[Public Notice: 10603]
RIN 1400–AE30
International Traffic in Arms
Regulations: U.S. Munitions List
Categories I, II, and III
Department of State.
Final rule.
AGENCY:
The Department of State (the
Department) amends the International
Traffic in Arms Regulations (ITAR) to
revise Categories I—firearms, close
assault weapons and combat shotguns,
II—guns and armament, and III—
ammunition/ordnance of the U.S.
Munitions List (USML) to describe more
precisely the articles that provide a
critical military or intelligence
advantage or, in the case of weapons,
perform an inherently military function
and thus warrant export and temporary
import control on the USML. These
revisions complete the initial review of
the USML that the Department began in
2011. Items not subject to the ITAR or
to the exclusive licensing jurisdiction of
any other set of regulations are subject
to the Export Administration
Regulations.
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SUMMARY:
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This final rule is effective March
9, 2020.
FOR FURTHER INFORMATION CONTACT:
Sarah Heidema, Office of Defense Trade
Controls Policy, Department of State,
telephone (202) 663–2809; email DDTC
PublicComments@state.gov. ATTN:
Regulatory Change, USML Categories I,
II, and III.
The
Directorate of Defense Trade Controls
(DDTC), U.S. Department of State,
administers the International Traffic in
Arms Regulations (ITAR) (22 CFR parts
120 through 130). On May 24, 2018,
DDTC published a proposed rule, 83 FR
24198, for public comment regarding
proposed revisions to Categories I, II,
and III of the ITAR’s U.S. Munitions List
(USML) (22 CFR 121.1). After review of
received comments and with the
revisions to the proposed rule further
described below, DDTC now publishes
this final rule to amend the ITAR.
The articles and related technical data
subject to the jurisdiction of the ITAR,
i.e., ‘‘defense articles,’’ are identified on
the USML. With few exceptions, items
not subject to the export control
jurisdiction of the ITAR are subject to
the jurisdiction of the Export
Administration Regulations (EAR, 15
CFR parts 730 through 774, which
includes the Commerce Control List
(CCL) in Supplement No. 1 to part 774),
administered by the Bureau of Industry
and Security (BIS), U.S. Department of
Commerce. Both the ITAR and the EAR
impose license requirements on exports
and reexports. Items not subject to the
ITAR or to the exclusive licensing
jurisdiction of any other set of
regulations are subject to the EAR. The
Department of Commerce is publishing
SUPPLEMENTARY INFORMATION:
DEPARTMENT OF STATE
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DATES:
Issued in Washington, DC, on January 15,
2020.
Scott M. Rosenbloom,
Acting Manager, Rules and Regulations
Group.
ACTION:
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a companion rule in this edition of the
Federal Register.
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. All references to the USML in
this rule, however, are to the list of
AECA defense articles that are
controlled for purposes of export or
temporary import pursuant to the ITAR,
and not to the list of AECA defense
articles on the United States Munitions
Import List (USMIL) that are controlled
by the Bureau of Alcohol, Tobacco,
Firearms and Explosives (ATF) for
purposes of permanent import under its
regulations at 27 CFR part 447.
References to the USMIL are to the list
of AECA defense articles controlled by
ATF for purposes of permanent import.
Section 38(b)(1)(A)(ii) of the AECA,
requires, with limited exceptions,
registration of persons who engage in
the business of brokering activities with
respect to the manufacture, export,
import, or transfer of any defense article
or defense service designated by the
President as such under section 38(a)(1)
and licensing for such activities.
Through Executive Order 13637, the
President delegated the responsibility
for registration and licensing of
brokering activities to the Department of
State with respect to defense articles or
defense services controlled either for
purposes of export by the Department of
State or for purposes of permanent
import by ATF. Section 129.1 of the
ITAR states this requirement. As such,
all defense articles described in the
USMIL or the USML are subject to the
brokering controls administered by the
U.S. Department of State in part 129 of
the ITAR. The transfer of jurisdiction
from the ITAR’s USML to the EAR’s
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CCL for purposes of export controls
does not affect the list of defense articles
controlled on the USMIL under the
AECA for purposes of permanent import
or brokering controls for any brokering
activity, including facilitation in their
manufacture, export, permanent import,
transfer, reexport, or retransfer. This
rule adds two new paragraphs,
(b)(2)(vii) and (viii), to § 129.2 to update
the enumerated list of actions that are
not brokering. This change is a
conforming change and is needed to
address the transfer from the USML to
the CCL of USMIL defense articles that
remain subject to the brokering controls,
and to ensure that the U.S. government
does not impose a double licensing
requirement on the export, reexport, or
retransfer of such items subject to the
EAR or continue to require registration
with the Department solely based on
activities related to the manufacture of
these items.
The Department of State is engaged in
an effort, described more fully below, to
revise the USML so that its scope is
limited to those defense articles that
provide the United States with a critical
military or intelligence advantage or, in
the case of weapons, have an inherently
military function. The Department has
undertaken these revisions pursuant to
the President’s delegated discretionary
statutory authority in section 38(a)(1) of
the AECA to control the import and
export of defense articles and defense
services in furtherance of world peace
and the security and foreign policy of
the United States and to designate those
items which constitute the USML. The
Department determined that the articles
in USML Categories I, II, and III that are
removed from the USML under this
final rule do not meet this standard,
including many articles that are widely
available in retail outlets in the United
States and abroad (such as many
firearms previously described in
Category I, paragraph (a), including, for
example, a .22 caliber rifle).
The descriptions below describe the
status of the subject categories of the
USML and CCL as of the effective date
of this rule and the companion rule
published by the Department of
Commerce in this Federal Register
issue. Any reference in the preamble to
this final rule to transfer from the USML
to the CCL reflects the combined effects
of removal of the defense article from
the controls of the ITAR by virtue of the
removal of an item (i.e., enumerated
control text) from the USML by this rule
and the corresponding adoption of the
former defense article as an item subject
to the EAR by action of the companion
rule. Comments regarding the overall
rule are addressed immediately below,
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while comments specific to a Category
or amended section of the ITAR are
addressed in the relevant discussion of
revisions to Categories I, II, or III, or in
the discussion under the title of
‘‘Conforming ITAR Changes.’’
Comments of General Applicability
The Department believes that a
restatement of the overall principles
behind the multi-year review of the
USML and the efforts to better
harmonize the ITAR and the EAR and
the larger U.S. government’s export
control system is applicable to many of
the comments received and to the
reasoning behind this rule. Therefore,
before addressing individual comments,
the Department reiterates that it, along
with its interagency partners, is engaged
in a years-long effort to revise the USML
to limit its scope to those items that
provide the United States with a critical
military or intelligence advantage or, in
the case of weapons, perform an
inherently military function. Review of
the USML is statutorily required by
section 38(f) of the AECA, and the
Department conducts this review in
accordance with, and in full recognition
of, the President’s authority, conferred
in section 38(a) of the Act, to control the
import and export of defense articles
and defense services in furtherance of
world peace and the security and
foreign policy of the United States, and
to designate those items that constitute
the USML. In connection with this
effort, the Department has published 26
final, or interim final, rules revising
eighteen of the twenty-one USML
categories, removing less sensitive items
from the USML. While a wide range of
interagency stakeholders review and
clear the Federal Register notices that
revise the USML, the Department works
particularly closely with the
Departments of Defense and Commerce
to solicit their views on the appropriate
composition of the USML. As required
by Executive Order 13637, the
Department obtains the concurrence of
the Secretary of Defense for
designations, including changes in
designations, of items or categories of
items that are defense articles and
defense services enumerated on the
USML. The engagement with the
Department of Commerce is further
intended to ensure that the
jurisdictional posture of a given item is
clear, and that the application of ITAR
or EAR controls to that item can be
discerned and understood by the public.
The Department underscores that this
rule constitutes an important part of a
nine-year program of revisions that has
streamlined the USML. From the
beginning, the Department has
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repeatedly stated its goals for that
program (see e.g., 76 FR 68694 (Nov. 7,
2011), 76 FR 76097 (Dec. 6, 2011), 80 FR
11313 (Mar. 2, 2015), 82 FR 4226 (Jan.
13, 2017)). First, that it is seeking to
better focus its resources on protecting
those articles and technologies that
provide the United States with a critical
military or intelligence advantage. As
applied to this rule, for example,
firearms and firearms technology that
are otherwise readily available do not
provide such an advantage, whereas an
M134 Minigun or the next generation
squad automatic rifle continues to
warrant USML control even if there is
some limited civil availability for either.
Second, to resolve jurisdictional
confusion between the ITAR and EAR
among the regulated community
through revision to ‘‘bright line’’
positive lists. Third, to provide clarity to
the regulated community thereby
making it easier for exporters to comply
with the regulations and enable them to
compete more successfully in the global
marketplace. Finally, to develop a
regulatory system that supports
enhanced interoperability between the
United States and its allies and partners
and thereby better supports our ability
to address shared security challenges.
With respect to revisions of Categories
I–III, the review was focused on
identifying the defense articles that are
now controlled on the USML that are
either (i) inherently military and
otherwise warrant control on the USML
or (ii) if of a type common to nonmilitary firearms applications, possess
parameters or characteristics that
provide a critical military or intelligence
advantage to the United States. If a
defense article satisfies one or both of
those criteria, it remained on the USML.
For example, while the U.S. military
supplies some of its service members
with sidearms for military use, a
sidearm also has many uses outside of
the military, such that its function is not
inherently military and therefore it does
not warrant control on the USML.
Alternatively, squad automatic weapons
do not generally have such non-military
uses and remain controlled on the
USML in this final rule. Any single nonmilitary use, however, does not negate
such a weapon’s inherently military
function. In summary, the Department
analyzes the patterns, both current and
anticipated, of use and availability of
the defense articles and the utility they
provide to the U.S. military or
intelligence community to inform the
ultimate determination as to whether
control is merited on the USML.
The Department recognizes the
sensitivities and foreign policy
implications associated with the sale
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and export of small arms, light weapons,
and associated equipment and
ammunition as expressed in the
President’s National Security Policy
Memorandum Regarding U.S.
Conventional Arms Transfer Policy of
April 19, 2018 (Conventional Arms
Transfer Policy). Those sensitivities and
foreign policy implications will
continue to be addressed through the
licensing and enforcement requirements
of the Department of Commerce. All
export license applications for the items
transitioning to Commerce jurisdiction
are subject to review by the interagency,
specifically the Departments of State,
Defense, and Energy, as appropriate.
The Department will continue to
advance its foreign policy mission by
reviewing all license applications
submitted to the Department of
Commerce for the export of firearms and
related technology.
Multiple commenters took issue with
the proposed transfer from the USML to
the CCL of weapons that the Department
determined, in conjunction with its
interagency partners, are not inherently
for military end-use, citing the fact that
military and law enforcement personnel
regularly use them. As previously noted,
the fact that a military uses a specific
piece of hardware is not a dispositive
factor when determining whether it has
an inherently military function. Given
that the majority of the items referenced
in these comments that will transfer to
the CCL through this rule are widely
available in retail outlets in the United
States and abroad, and widely utilized
by the general public in the United
States, it is reasonable for the
Department to determine that they do
not serve an inherently military
function, absent specific characteristics
that provide military users with
significantly enhanced utility, such as
automatic weapons, sound suppressors,
and high capacity magazines.
Several commenters disputed that the
U.S. market should be the basis for
assessing the commercial availability of
firearms, as this is not the market to
which the proposed rule would be
directed. The Department recognizes
that there are variations in commercial
availability of firearms not only between
nations, but also within the domestic
market itself; however, this variation in
availability does not overcome the
Department’s assessment that the
subject firearms do not provide a critical
military or intelligence advantage such
that they warrant control under the
ITAR. In addition, all exports of
firearms are subject to the laws of the
importing country, and the U.S.
government does not issue licenses for
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exporters to ship firearms to countries
where the end-use is illegal.
Several commenters predicted that
the rule will make it easier for foreign
manufacturers to obtain U.S.-origin
components and proprietary technology,
thereby causing U.S. firearms
manufacturers to lose global market
share. The Department refers the
commenters to the above-stated
objectives of this review effort, which
include making it easier for exporters to
comply with export control regulations
and enabling them to compete more
successfully in the global marketplace.
The Department further notes that this
rule is expected to provide certain key
advantages that will substantially
benefit domestic manufacturers by: (1)
Amending the regulatory burden on the
U.S. commercial firearms and
ammunition industry; (2) clarifying the
regulatory requirements for independent
gunsmiths; and (3) enabling foreign
manufacturers to source from small- and
medium-sized U.S. companies more
easily.
Several commenters predicted that
this rule will diminish the United
States’ ability to set global normative
standards for arms transfers and nonproliferation. The Department strongly
disagrees and remains fully committed
to the goals outlined in the AECA. In
particular, the Department takes
seriously its responsibility to implement
the AECA’s declaration that: ‘‘It shall be
the policy of the United States to exert
leadership in the world community to
bring about arrangements for reducing
the international trade in implements of
war and to lessen the danger of outbreak
of regional conflict and the burdens of
armaments’’ (22 U.S.C. 2751). The
Department will continue to meet this
responsibility, in part, by reviewing
export license applications for items
subject to the EAR that were formerly
controlled by the ITAR, including those
on the Wassenaar Arrangement on
Export Controls for Conventional Arms
and Dual-Use Goods and Technologies
(Wassenaar Arrangement) control lists.
The Department will continue to take
into account the considerations of
Section 3 of the Conventional Arms
Transfer Policy, such as the national
security and foreign policy interests of
the United States, when making arms
transfer decisions, both for firearms that
remain subject to the ITAR and firearms
that are subject to the EAR.
Other commenters suggested that this
rule contravenes international
commitments the United States has
made through mechanisms such as the
Wassenaar Arrangement. The transfer of
the concerned items to the CCL does not
contravene U.S. international
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commitments, as the U.S. government
will continue to apply a high level of
control to these items and require U.S.
government authorization for all exports
of firearms and major components.
Multiple commenters raised concerns
about the role and function of the
Department of Commerce regarding the
items that are transferred from the
USML to the CCL. Some commenters
expressed concerns that the Department
of Commerce has neither the
appropriate resources nor the
appropriate expertise or mission to
process associated applications for
export. Other commenters asserted that
because the Department of Commerce,
unlike the Department of State, does not
charge registration or licensing fees, the
transfer to the CCL constitutes an
unnecessary burden on taxpayers. As
stated previously, the Department is
engaged in an effort to revise the USML
so that its scope is limited to those
defense articles that warrant the U.S.
government’s highest level of export
control because those defense articles
offer a critical military or intelligence
advantage or, in the case of weapons,
have an inherently military function.
The revisions implemented by the
Department are necessary in order to
focus our resources on such defense
articles. This effort in general, and this
rule in particular, were developed in
close consultation with other
departments and agencies, including the
Department of Commerce. While the
Department of Commerce is best suited
to address the specific details of the
implementation of its regulations and its
allocation of appropriated resources, the
Department is confident that the
framework for control of firearms, and
parts and components thereof, across
the EAR and the ITAR is sufficient to
address the concerns of the U.S
government and does not diminish or
damage the national security or foreign
policy interests of the United States.
The Department does not share the
concerns expressed about the
Department of Commerce’s expertise or
mission, and the Department further
notes that the Department of Commerce
has been licensing shotguns and
shotgun ammunition, as well as various
firearms-related articles such as sighting
devices and a range of other similar
articles and technologies, for decades.
Additionally, the Department of
Commerce has investigated and
disrupted numerous diversion rings
related to EAR-controlled items and will
apply its years of export control
enforcement expertise to the items this
rule transfers to its jurisdiction.
Multiple commenters expressed a
general concern that the transfer to the
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CCL increases the risk of overseas
trafficking, proliferation, or diversion.
Multiple commenters also raised
concerns about the Department of
Commerce’s end-use monitoring (EUM)
capabilities and the impact this rule has
on the Department of State’s EUM
programs. This rule does not deregulate
the export of firearms. All firearms and
major components being transferred to
the CCL will continue to require export
authorization from the Department of
Commerce. Further, the Department of
Commerce has both a robust EUM
program and a law enforcement division
sufficiently capable of monitoring
foreign recipients’ compliance with
their obligations regarding the transfer,
use, and protection of items on the CCL.
Additionally, the Federal Bureau of
Investigation and the Department of
Homeland Security will continue to
investigate and enforce criminal
violations of the export control laws as
appropriate. This rule also will not
impact the Department’s ability to
execute the Blue Lantern EUM program
required by section 40A of the AECA, 22
U.S.C. 2785. Finally, this rule will not
affect existing federal or state public
safety laws that address domestic
criminal conduct.
Several commenters expressed
concern that the Department of
Commerce will not have access to the
same databases and background
information that the Department of State
uses to evaluate license applications.
Similarly, some commenters expressed
concern that as a result of this rule some
exporters will no longer be subject to
U.S. government registration
requirements, thereby depriving
regulators of an important source of
information and decreasing
transparency and reporting regarding
firearms exports. The Department
considered these concerns and
determined that the interagency license
review process maintains appropriate
oversight of the articles at issue. The
Department of Commerce’s export
licensing requirements and process are
calibrated both to the sensitivity of the
article and the proposed destination.
Additionally, all requests for export
licenses for firearms remain subject to
interagency review, including by the
Department of State.
Several commenters suggested that
the Department create a registration
exemption or reduce registration fees for
small volume non-exporting firearms
manufacturers. Multiple commenters
similarly suggested modifying ITAR
§ 122.1 to include a minimum size
requirement for registration.
Modification of the requirements of part
122 is outside the scope of this
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rulemaking; however, the Department
highlights that the Department of
Commerce does not have a registration
requirement for manufacturers and
exporters of the items under its
jurisdiction. Therefore, gunsmiths that
do not manufacture, export, or broker
articles that remain subject to the ITAR
after this rule’s effective date will no
longer need to determine if they are
required to register under the ITAR.
They may, however, still be required to
comply with ATF licensing
requirements. Any additional changes to
the ITAR related to the registration
requirement would be addressed in a
separate rulemaking.
On the issue of registration, one
commenter noted that as a result of this
rule some U.S. manufacturers may no
longer have to register with the
Department of State and be subject to
the requirements in ITAR § 122.4(b) for
advance notification of intended sales or
transfers to foreign persons of
ownership or control of the registrant.
The commenter asserted that without
the advance notification requirement
foreign entities could potentially
influence the sales and marketing
activities of U.S. manufacturers in a
manner that would be detrimental to
U.S. national security. The Department
notes in response that its regulatory
authorities are limited to export-related
activities for defense articles and
services, and highlights that other
federal regulatory regimes, such as the
Committee on Foreign Investment in the
United States, have the ability to
address potential foreign ownership or
control issues that may impact national
security.
Multiple commenters expressed
concerns that this rule would reduce
congressional oversight of arms transfers
since the Department of Commerce does
not have to notify Congress of firearms
sales in excess of $1 million as the
Department of State does. The
Department acknowledges those
concerns and notes that those firearms
that the U.S. government deemed
through the interagency review process
to warrant continued control under the
ITAR as defense articles will remain
subject to congressional notification
requirements in conformity with section
36 of the AECA and Executive Order
13637.
A number of commenters suggested
the proposed rule, if made final, may
have a negative impact on human rights
in foreign countries. As stated
previously, the Department of
Commerce will continue its
longstanding end-use monitoring efforts,
including vetting of potential end-users,
to help prevent human rights abuses.
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Similarly, as part of the aforementioned
continuing interagency review of export
licenses for firearms, the Departments of
Defense and State will review export
license applications on a case-by-case
basis for national security and foreign
policy reasons, including the prevention
of human rights abuses.
One commenter expressed concern
that foreign law enforcement personnel
in particular are at risk of having the
transferred CCL items used against
them. These concerns are mitigated by
the fact that, as stated previously: (1)
These articles remain subject to the
Department of Commerce’s EUM
programs that vet potential end-users of
concern, and (2) license applications for
CCL items will be approved only if their
end-use is permitted under the laws of
the importing country.
Multiple commenters expressed
concerns that, as a result of the revision
of the USML to remove items from
Category I, the rule will also remove
from the USML the technical data
directly related to these items, thereby
lifting a purported block on the
domestic dissemination of computeraided design (CAD) files for the threedimensional (3–D) printing or CADenabled production of firearms.
Commenters suggested that use of these
files in the United States could lead to
a potential increase in the number of
unserialized firearms in circulation, or
the manufacture or distribution of a
non-metal firearm otherwise prohibited
under federal law. Some commenters
also expressed concerns that foreign
dissemination of such files could
provide adversaries with a military or
intelligence advantage.
The Department considered the
concerns of the commenting parties.
While the Department concluded that
these concerns do not warrant
modification to the controls on the
USML, the Department of Commerce, as
described below, determined that
certain modifications to its companion
rule are warranted to address similar
concerns expressed by commenters to
its proposed rule.
As an initial matter, the Department
reiterates that the scope of this
rulemaking is limited to the
Department’s delegated authority under
the AECA. Neither the AECA nor ITAR
expressly provide the Department with
authority to regulate the distribution of
technical data in the United States to
U.S. persons. This applies to all
technical data subject to the ITAR,
regardless of whether it is for the
manufacture of ITAR-controlled
firearms or any other defense article.
Furthermore, the Department notes that
the AECA does not provide the
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Department with the authority to (1)
prohibit the domestic manufacture or
possession of firearms, whether
produced from CAD files with a 3–D
printer or otherwise, or (2) regulate the
domestic distribution among U.S.
persons of any defense article, including
firearms. Domestic activities that do not
involve release to foreign persons are
generally left to other federal agencies—
and the states—to regulate. The
manufacture, import, sale, shipment,
delivery, transfer, receipt, or possession
of firearms that are undetectable as
provided in federal law is a federal
crime, punishable by fine and/or up to
five years in prison. 18 U.S.C. 924(f).
Among other statutes, the Undetectable
Firearms Act of 1988 prohibits the
manufacture, possession, sale, import,
shipment, delivery, receipt, or transfer
of undetectable firearms. See 18 U.S.C.
922(p).
When determining whether
nonautomatic and semi-automatic
firearms to .50 caliber (12.7mm)
inclusive should be removed from the
USML, and the technical data directly
related thereto, the Department
evaluated whether the hardware and its
directly related technical data would
confer a critical military or intelligence
advantage or whether they are
inherently military based on their
function. The Department made a
determination that neither the hardware
nor its directly related technical data
met these criteria. In response to the
specific comments related to the
potential uses for CAD files that can be
used to 3–D print firearms, the
Department confirms that it did
consider the potential uses for these
CAD files in its review. The Department
determined, in consultation with the
Department of Defense and other
interagency partners, that these CAD
files do not confer a critical military or
intelligence advantage and are not
inherently military based on their
function. This determination took into
account the effect that a transfer to the
CCL would have on the national
security and foreign policy interests of
the United States, consistent with the
AECA and ITAR, to include the degree
to which it would limit the ability of a
foreign person to obtain CAD files,
publish them on the internet, and
subsequently manufacture CCLcontrolled firearms, including those that
are unserialized or manufactured from a
non-metallic material.
Although the Department determined
that such hardware and its directly
related technical data do not confer a
critical military or intelligence
advantage or perform an inherently
military function for purposes of
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maintaining inclusion on the USML, the
Department agrees with the Department
of Commerce that maintaining controls
over such exports under the EAR
remains in the national security and
foreign policy interests of the United
States. The Department of Commerce
has recognized in its companion rule
that concerns raised over the possibility
of widespread and unchecked
availability of 3–D printing technology
and software, the lack of government
visibility into production and use, and
the potential damage to U.S. counterproliferation efforts warrant making
certain technology and software capable
of producing firearms subject to the EAR
when posted on the internet, as
described in the Department of
Commerce’s companion rule. The
Department agrees that EAR controls on
technology and software for firearms
previously controlled in USML Category
I(a)—and for all other items this rule
removes from the USML—sufficiently
address the U.S. national security and
foreign policy interests relevant to
export controls. In sum, while
Commerce controls over such items and
technology and software are
appropriate, continued inclusion of
them on the USML is not.
This rule is consistent with broader
USML to CCL review efforts. During the
multi-year process of reviewing and
revising the USML, the Department has
exercised its discretion, authorized by
delegation in section 38(a)(1) of the
AECA, to determine which national
security and foreign policy interests
warrant consideration within the
context of export controls. Under its
current standard, the Department
assesses the national security and
foreign policy interests against factors,
such as those discussed above and in
other Federal Register notices, in
assessing whether items merit inclusion
on the USML; this analysis has resulted
in a number of items previously
included in other USML categories
being transferred to the EAR (see, e.g.,
78 FR 22740 (Apr. 16, 2013), 81 FR
70340 (Oct. 12, 2016)). Through this
rule, the Department is now applying
this standard to Categories I, II, and III
of the USML. As previously noted, the
AECA requires periodic review of the
USML, and the Department will
continue to evaluate technological
advancements, including those related
to 3–D printing, to inform future
revisions to the USML.
One commenter predicted that the
rule’s effect of removing licensing
requirements for temporary imports of
the items removed from the USML
would create another channel for
criminal elements to obtain weapons in
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the United States. The Department did
not receive any further information to
support the assertion that the
hypothetical diversion of temporary
imports of firearms from foreign
countries would appreciably bolster
criminal access to such items. The
Department additionally notes that
other departments and agencies possess
enforcement capabilities relevant to
criminal acquisition of firearms within
the United States.
One commenter recommended
coordinating proposed changes with
ATF so that the corresponding changes
are made to the U.S. Munitions Import
List (USMIL) at the same time, which
would prevent businesses from having
to consult both the USML and USMIL
when deciding whether a transaction
involves brokering. The USML and the
USMIL are separate lists of AECA
defense articles with both shared as well
as different AECA objectives, and as
such warrant the retention as separate
lists for AECA defense article and
control purposes.
Effective Date
The Department has determined that
the appropriate effective date for this
final rule is March 9, 2020. The
Department notes that the Department
has previously articulated a policy of
providing a 180-day transition period
between the publication of the final rule
for each revised USML category and the
effective date of the transition to the
CCL for items that will undergo a
change in export jurisdiction. See 78 FR
22,740, 22,747 (Apr. 16, 2013). In
addition, some commenters suggested
that the final rule should have a delayed
effective date or a split effective date for
companies of a particular size. However,
in consultation with interagency
partners, the Department has
determined that, based on the nature of
the items at issue, a 180-day transition
period or a delayed or a split effective
date for certain companies is not
necessary.
Revision of Category I
This final rule renames Category I as
‘‘USML Category I—Firearms and
Related Articles’’ (formerly ‘‘Category
I—Firearms, Close Assault Weapons and
Combat Shotguns’’) and amends the
category to control only defense articles
that are inherently military or that are
not otherwise widely available for
commercial sale. In particular, the
amended category does not include nonautomatic and semi-automatic firearms
to .50 caliber (12.7mm) inclusive,
formerly controlled under paragraph (a),
and all of the parts, components,
accessories, and attachments for those
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articles. Such items are subject to the
new controls in Export Control
Classification Numbers 0A501, 0A502,
0A503, 0A504, 0A505, 0B501, 0B505,
0D501, 0D505, 0E501, 0E502, 0E504,
and 0E505, which also includes the
items moved from Category II described
below. Such controls in Category 0 of
the CCL are being published in the
companion rule by the Department of
Commerce.
Paragraph (a) of amended USML
Category I covers firearms that fire
caseless ammunition. Paragraph (b)
continues to cover fully automatic
firearms, which are firearms that shoot
more than one bullet by a single
function of the trigger, to .50 caliber
(12.7mm) inclusive. Paragraph (c)
covers firearms specially designed to
integrate fire control, automatic
tracking, or automatic firing systems,
and all weapons previously described in
paragraph (c) that remain on the USML
are now covered by paragraphs (a), (b)
or (c) of this category or by Category II.
Specially designed parts and
components for the defense articles that
remain in paragraph (c) are moved to
Category I paragraph (h) of this final
rule. This change from the proposed
rule is necessary to allow for the
designation of the end-item defense
articles in paragraph (c) as Significant
Military Equipment (SME) whereas the
specially designed parts and
components therefor are not. Paragraph
(d) covers fully automatic shotguns.
Paragraph (e) continues to cover
silencers, mufflers, and sound
suppressors. However, for the same
reason as paragraph (c) above, specially
designed parts and components for
those defense articles in paragraph (e)
are moved to paragraph (h) so as not to
be designated SME. Flash suppressors
are removed from paragraph (e) and are
transferred to the CCL. The text of
paragraph (f) is removed and the
subsection is reserved, thereby
removing as a controlled item
‘‘[r]iflescopes manufactured to military
specifications.’’ However, any firearms
sighting device (including riflescopes)
that fits within the controls in USML
Category XII (see e.g., XII(c)(2) regarding
night vison or infrared capabilities)
remains subject to the ITAR under that
category. Other riflescopes are
transferred to the CCL. Paragraph (g)
continues to cover barrels, receivers
(frames), bolts, bolt carriers, slides, or
sears, specially designed for the firearms
that remain in Category I. Paragraph (h)
covers high capacity (greater than 50
rounds) magazines, and parts and
components to convert a semi-automatic
firearm into a fully automatic firearm,
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and accessories or attachments specially
designed to automatically stabilize aim
(other than gun rests) or for automatic
targeting. In a change from the proposed
rule, this final rule paragraph (h)
includes a new paragraph (h)(3) to
control parts and components specially
designed for defense articles in (c) and
(e) as described above. This addition
necessitated the renumbering of
proposed paragraph (h)(3) to (h)(4) in
this final rule. Paragraph (i) covers the
technical data and defense services
directly related to all of the defense
articles in the category as well as
classified technical data directly related
to items controlled in ECCNs 0A501,
0B501, 0D501, and 0E501 and defense
services using the classified technical
data. This is a change from the proposed
rule, in which defense articles in
paragraph (c) were inadvertently
omitted from the technical data
paragraph.
This rule adds a new (x) paragraph to
USML Category I, allowing ITAR
licensing for all commodities, software,
and technology subject to the EAR,
provided those commodities, software,
and technology are to be used in or with
defense articles controlled in USML
Category I and are described in the
purchase documentation submitted with
the license application.
The text of the note to Category I is
removed and replaced with a note
containing a slightly revised
interpretation of the term ‘‘firearm,’’
(formerly included at (j)(1)) and to add
interpretations of the terms ‘‘fully
automatic’’ and ‘‘caseless ammunition.’’
Several commenters requested
clarification regarding the proposed
Note 1 to USML Category I. The
Department determined that the control
text of the category sufficiently
describes the defense articles to be
controlled, and, as a result, the final rule
removes the proposed Note 1 to
Category I in order to avoid possible
confusion.
One commenter recommended
changes to the text of paragraph (b) in
an effort to avoid potential overlap with
other paragraphs in the category. The
Department believes these changes are
unnecessary because the control text
adequately differentiates the controlled
defense articles to allow for selfdetermination. If an exporter or
manufacturer requires a definitive
determination of category, they may
submit a commodity jurisdiction request
to DDTC.
Several commenters expressed
concern about the designation of certain
parts and components in USML
Category I as SME. The Department
recognizes these concerns, and, in
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response, the final rule revises the
proposed rule by moving the specially
designed parts and components for
paragraphs (c) and (e) to (h) where they
are not designated as SME.
Multiple commenters suggested that
the rule should remove firearm sound
suppressors (silencers) from paragraph
(e) and transfer them to the CCL. The
Department recognizes that sound
suppressors (silencers) are sold
commercially in some jurisdictions,
often for use at ranges or for hunting in
certain environments, although their
availability in retail markets varies
significantly within the United States as
well as foreign countries. However,
sound suppressors (silencers) provide
the capability to muffle the sound of
weapons fire, which can degrade the
ability of an adversary to localize the
source of the incoming rounds and
return fire or raise an alarm. The
Department has determined, in
coordination with the interagency, that
silencers continue to warrant control on
the USML.
One commenter requested
clarification regarding paragraph (g) and
the barrels, receivers (frames), bolts, bolt
carriers, slides, or sears that are
common to semi-automatic and
automatic firearms on the civilian
market. The commenter noted that the
lack of clarity arises from the difference
between the control text in USML
Category I(g) and Note 1 to Category I in
the proposed rule. The commenter also
requested clarification about which
specially designed articles are
controlled under this paragraph. The
commenter’s concerns can be resolved
by applying the definition of ‘‘specially
designed’’ in ITAR § 120.41(b)(3), as any
article that is common to a nonautomatic or semiautomatic firearm that
is on the CCL (i.e., not on the USML) is
not specially designed and thus is not
subject to the ITAR (but is subject to the
EAR).
One commenter suggested amending
the Canadian exemptions located in
ITAR § 126.5 to allow exports of
receivers and breech mechanisms under
paragraph (g). The Department is not
revising Supplement No. 1 to ITAR
§ 126 or the provisions of the Canadian
exemptions through this rulemaking.
However, the Department is currently
undertaking a review of Supplement No.
1 to ITAR Part 126 and any changes will
be the subject of a separate rulemaking.
Multiple commenters suggested that
paragraph (h)(1) under this rule should
exclude high-capacity magazines, i.e.,
drums or magazines for firearms with a
capacity of greater than 50 rounds. The
Department recognizes that civilians can
purchase magazines and drums with a
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capacity of greater than 50 rounds;
however, these high-capacity magazines
provide an inherently military function
and warrant continued control on the
USML due to their utility in enabling
effective use of automatic weapons and
combat tactics.
One commenter requested
clarification regarding paragraph (h)(3)
in order to differentiate the terms
‘‘automatic targeting’’ and ‘‘automatic
tracking’’ or ‘‘automatic firing.’’
However, the comment did not identify
any specific confusion. The Department
believes that the control text
appropriately describes the capabilities
that warrant control, so the final rule
does not make any changes to this
provision.
One commenter noted that the
technical data and defense service
control in paragraph (i) did not apply to
USML Category I(c) and suggested that
the Department include paragraph (c) in
the list of paragraphs to which the
technical data and defense service
controls applies. This was an oversight
and final rule paragraph (i) is revised to
exclude the paragraph identifiers in the
proposed rule. Excluding the paragraph
identifiers clarifies that technical data
and defense services for all USML
Category I articles are controlled.
Revision of Category II
This final rule revises USML Category
II, covering guns and armament,
establishing a bright line between the
USML and the CCL for the control of
these articles.
Most significantly, amended
paragraph (j), controlling parts and
components, is revised to enumerate the
items controlled therein. In a change
from the proposed rule explained
below, proposed paragraph (j)(10) is
revised to clarify that the control applies
only to recoil systems specially
designed to mitigate the shock
associated with the firing process of
guns integrated into air platforms. When
reviewing proposed paragraph (j) for
this final rule, the Department noted
that proposed paragraphs (10) and (13)
described related defense articles, as did
proposed paragraphs (j)(9) and (j)(11). In
order to keep related articles in
consecutive paragraphs within the
category, the Department reorganized
the paragraphs such that the control text
of paragraph (10) of the proposed rule
is found at paragraph (14) of the final
rule and the control text of paragraphs
(9) and (11) of the proposed rule are
found at paragraphs (10) and (9) of the
final rule, respectively. In addition, a
new paragraph (12) is added to (j) to
clarify that systems and equipment for
the defense articles in the category for
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programming ammunition are
controlled on the USML. Where
necessary, paragraphs are renumbered
to accommodate movement of proposed
paragraphs (j)(10) and (9) and the
addition of new paragraph (12). The
Note to proposed paragraph (j)(9) is also
revised from the proposed rule to
include reference to mounts for surface
vessels and special naval equipment
controlled in Category VI.
Amended paragraph (a) enumerates
the items controlled in that paragraph.
The item formerly covered in paragraph
(c) (i.e., apparatus and devices for
launching or delivering ordnance) is
removed, and defense articles still
warranting control on the ITAR are
described in new paragraph (a)(4). A
new paragraph (a)(5) is added for
developmental guns and armaments
funded by the Department of Defense
and the specially designed parts and
components of those items. The item
formerly controlled in paragraph (f),
(i.e., engines specifically designed or
modified for the self-propelled guns and
howitzers controlled in paragraph (a)),
is removed from the USML and placed
on the CCL in ECCN 0A606 pursuant to
the companion rule. Tooling and
equipment specifically designed or
modified for the production of items
controlled in USML Category II,
formerly in paragraph (g), is also
removed from the USML and transferred
to the CCL in ECCN 0B602 through the
Commerce rule. Test and evaluation
equipment and test models, formerly in
paragraph (h), is removed from the
USML and transferred to the CCL in
ECCN 0B602 through the Commerce
rule. Certain autoloading systems
formerly controlled in paragraph (i) are
moved to paragraphs (j)(9) and
components therefor to (j)(10)
(paragraph (j)(11) of the proposed rule).
In a change from the proposed rule
explained below, final paragraph (j)(11)
now contains a specific reference to
‘‘ammunition feeder systems.’’
This rule adds a new (x) paragraph to
USML Category II, allowing ITAR
licensing for all commodities, software,
and technology subject to the EAR,
provided those commodities, software,
and technology are to be used in or with
defense articles controlled in USML
Category II and are described in the
purchase documentation submitted with
the application.
One commenter recommended
defining the term ‘‘gun’’ as it is used in
both the category title and in paragraph
(a)(1). The control text in the proposed
rule appropriately described the
capabilities that warrant control, and so
the final rule does not make any
changes in this regard.
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One commenter pointed out that U.S
law classifies firearms as antique if they
were made on or before 1898 and took
issue with the usage of the year 1890 in
Note 1 to paragraph (a). The Gun
Control Act of 1968 does define antique
firearms for domestic purposes, in part,
as any firearm manufactured in or
before 1898. See 18 U.S.C. 921(a)(16)(A).
However, as this rule is regarding the
export of firearms, it uses the year 1890
in order for the United States to remain
consistent with its international export
control commitments under the
Wassenaar Arrangement, which uses
1890 as the cutoff year to identify many
firearms and armaments that are not on
the control list.
One commenter requested
clarification regarding what is
considered to be part of the firing
mechanisms listed in paragraph (j)(4)
and inquired whether the rule controls
electronic firing mechanisms. The
language in the rule appropriately
describes the capabilities that warrant
control and confirms that the control
does include electronic firing
mechanisms.
One commenter requested a note be
added to proposed paragraph (j)(9) (final
paragraph (j)(10)) to clarify what
constitutes an independently powered
ammunition handling system and
platform interface components. The
control text appropriately describes the
capabilities of concern that warrant
control and confirms that an
independently-powered ammunition
handling system need not be external to
the gun or platform for the control to
apply.
One commenter expressed concern
that proposed paragraphs (j)(9) and
(j)(11) (final paragraphs (j)(10) and (j)(9),
respectively) may capture the same
parts and components and
recommended deleting proposed
paragraph (j)(11) if the paragraphs are
redundant. These paragraphs are
distinct, as proposed (j)(9) identifies
certain components for the end-item
ammunition handling system that are
controlled and proposed (j)(11) controls
the end-item independent ammunition
handling system itself. Because these
paragraphs are not redundant, the final
rule retains both of them. The
Department revised proposed paragraph
(j)(11) (final paragraph (j)(9)) to clarify
its scope in response to this comment.
Proposed paragraph (j)(10) (final
paragraph (j)(14)) is revised in this final
rule with language limiting recoil
systems to those specially designed to
mitigate the shock associated with the
firing process of guns integrated into air
platforms. This revision was made in
response to a commenter who
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highlighted that the language in the
proposed rule would have controlled
recoil systems solely due to end-use
platform and not due to the performance
capability.
One commenter suggested that the
Department reconcile proposed
paragraphs (j)(10) and (j)(13) (final
paragraphs (j)(14) and (j)(13),
respectively) to prevent an overlap in
the control text. Proposed (j)(10) and
(j)(13) are adequately differentiated to
allow for self-determination. If an
exporter or manufacturer requires a
definitive determination of category,
they may submit a commodity
jurisdiction request to DDTC.
One commenter submitted a question
about whether specific ammunition
containers that are independent of a
cannon system would be controlled
under the proposed paragraph (j)(12)
(final paragraph (j)(11)). Although
absent a commodity jurisdiction request
the Department cannot make a
definitive determination, it is unlikely
that the ammunition container is
controlled because proposed paragraph
(j)(12) requires that the ammunition
container be specially designed for the
gun or armament, not for the
ammunition. The control text
appropriately describes the capabilities
that warrant control, and so the final
rule does not make any changes to this
provision.
One commenter also recommended
adding clarifying language to proposed
paragraph (j)(12) (final paragraph (j)(11))
regarding whether ‘‘conveyor elements’’
are intended to relate to large caliber
ammunition or medium caliber
ammunition. As the control is not
limited, it applies to all such systems.
To clarify the scope of the control, the
Department adds ‘‘ammunition feeder
systems’’ to the text of final paragraph
(j)(11).
Revision of Category III
This final rule renames Category III as
‘‘USML Category III—Ammunition and
Ordnance’’ (formerly ‘‘Category III—
Ammunition/Ordnance’’) and revises its
content to establish a bright line
between the USML and the CCL for the
control of these articles and to be
consistent with the changes to Category
I.
Most significantly, paragraphs (a) and
(d) are revised to remove broad catchalls and enumerate the articles
controlled therein. For example,
paragraph (a), which controls
ammunition for articles in USML
Categories I and II, is amended to
specifically list the ammunition that it
controls. In a change from the proposed
rule, paragraph (a)(7) regarding
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ammunition for automatic and
superposed (or stacked) guns and
firearms is revised to clarify the control
text. A new paragraph (a)(10) is added
for developmental ammunition funded
by the Department of Defense and the
parts and components specially
designed for such developmental
ammunition. In a change from the
proposed rule, the SME designator is
moved from paragraph (a) in its entirety
to only those paragraphs of III(a)
warranting control as SME and the SME
designation is removed from paragraph
(a)(10), to be consistent with the
controls on developmental defense
articles funded by the Department of
Defense in other categories of the
USML. Ammunition formerly controlled
in paragraph (a) that is not now
specifically enumerated in paragraph (a)
or captured by paragraph (a)(10) is
transferred to the CCL pursuant to the
companion rule. Likewise, revised
paragraph (d), which controls parts and
components, enumerates the items it
controls; those parts and components
previously captured via the catch-all
and not now enumerated are transferred
to the CCL.
Additionally, paragraph (c) is
removed and placed into reserve. The
production equipment and tooling
formerly controlled in that paragraph is
now controlled by the CCL pursuant to
the companion rule.
In a change from the proposed rule,
the references to steel tipped
ammunition, and hardened core or solid
projectiles made of tungsten, steel, or
beryllium copper alloys are moved from
(d)(1) to paragraph (d)(6) for additional
clarity.
This rule adds a new (x) paragraph to
USML Category III, allowing ITAR
licensing for all commodities, software,
and technology subject to the EAR,
provided those commodities, software,
and technology are to be used in or with
defense articles controlled in USML
Category III and are described in the
purchase documentation submitted with
the application.
In addition, in this final rule, DDTC
revised the format of the notes to
Category III from the proposed rule in
order to make them consistent with
concluding notes to other categories
(see, e.g., notes to Category VII). In place
of three notes within one heading of
‘‘Notes to Category III’’ as in the
proposed rule, this final rule identifies
each clearly as Note 1, Note 2, and Note
3.
One commenter highlighted that the
placement of the asterisk beside
paragraph (a) in the proposed rule
created inconsistencies with other
USML category provisions concerning
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developmental defense articles funded
by the Department of Defense (DoD).
The Department agrees, and the final
rule revises the category in order to
clarify that DoD-funded developmental
ammunition is not SME. In particular,
the final rule adds a specific SME
identifier to each relevant subcategory
and removes one from paragraph (a)(10).
One commenter suggested removing
paragraph (a)(2) on the grounds that the
underlying commodity does not
fundamentally change when it is
incorporated into an ammunition link.
The control appropriately identifies the
object that warrants control (linked or
belted ammunition) which are used
primarily for automatic weapons.
Consequently, the final rule makes no
changes to the text of paragraph (a)(2).
One commenter suggested revising
proposed paragraph (a)(4) to remove the
language ‘‘manufactured with smokeless
powder’’ on the grounds that the rule
could be interpreted to mean caseless
ammunition manufactured with
anything besides smokeless powder,
which is controlled on the CCL. The
Department disagrees because the
control text accurately describes the
defense article to be controlled. Caseless
ammunition that is not manufactured
with smokeless powder is not controlled
by the subcategory. The Department
controls ammunition in paragraph (a)(4)
because smokeless powder has higher
energy than other propellants and is
more readily adapted to a sustained fire.
One commenter suggested removing
the articles under paragraphs (a)(5) and
(a)(8) and transferring them to the CCL.
The Department disagrees, as
lightweight and railgun ammunition
offer a significant military advantage
because lightweight ammunition
significantly improves battlefield
activities and railguns are a uniquely
military capability in which the United
States enjoys a critical advantage, in
part due to our projectiles, and therefore
warrant control on the USML.
One commenter recommended
revising paragraph (a)(6) to address the
potential redundancy with (a)(1) and to
clarify whether the ammunition control
parameters in the paragraph are based
on the pyrotechnic material, the tracer
materials, or the specification that it
must be able to be seen by night vision
optical systems. While it is possible that
there may be some overlap between
these controls for specific articles, each
control correctly identifies a capability
that warrants control on the USML. To
clarify the control text, the Department
replaces the word ‘‘and’’ in paragraph
(a)(6) of the proposed rule with ‘‘or’’ in
this final rule to identify that these are
separate articles. If an exporter or
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manufacturer requires a definitive
determination of category, they may
submit a commodity jurisdiction
determination request to DDTC.
One commenter highlighted that
paragraph (a)(7) in the proposed rule
could be interpreted to cover all
ammunition for fully automatic
firearms, which could take ammunition
currently controlled by the Department
of Commerce and change it into SME if
for use in a fully automatic firearm. The
Department notes this concern and has
revised the control to limit the scope of
the control to ammunition that is not
used with semi or non-automatic
firearms (i.e., firearms not on the
USML).
One commenter suggested changing
the description of ‘‘primers’’ in
paragraph (d)(10) to ‘‘cap type primers’’
on the grounds that the provision as
written is overly broad. The Department
disagrees, as the final rule appropriately
reflects the primers that warrant control
on the USML. The final rule does not
make any changes to this provision.
One commenter assessed that certain
production equipment previously
controlled on the USML would not be
captured by the revised USML Category
III or by the corresponding Department
of Commerce rule. The Department of
Commerce’s companion rule to this
final rule expands the relevant ECCNs
0B505.a as a control for all production
equipment specially designed for USML
Category III, and 0B501.e, for all
production equipment specially
designed for USML Category I.
One commenter expressed concern
that paragraph (d)(1) appears to overlap
with the control text in paragraphs (a)(1)
and (6) and (d)(2) and (6). While it is
possible that there may be some overlap
between these controls for specific
articles, each correctly identifies a
capability that warrants control on the
USML. To add additional clarity, the
Department is removing the reference to
steel tipped and core or solid projectiles
made from tungsten, steel, or beryllium
copper alloys, and addressing those
fully in (d)(6). If an exporter or
manufacturer requires a definitive
determination of category, they may
submit a commodity jurisdiction
determination request to DDTC.
One commenter suggested deleting
the word ‘‘tracer’’ from paragraph (d)(2)
on the grounds that that would make the
provision consistent with (d)(1).
Because certain tracer shotgun shells are
non-pyrotechnic and warrant control on
the USML, no change is made in this
final rule.
One commenter suggested deleting
‘‘specially designed parts and
components’’ from paragraph (d)(4) on
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the basis that the language adds
duplicative controls on parts that are
also subject to the controlled parts in
paragraphs (d)(7) and (d)(11). The
Department believes that the paragraphs
are not duplicative and the language
appropriately describes the capabilities
that warrant control, so the final rule
does not make any changes to this
provision.
One commenter recommended adding
language to paragraph (d)(6) in the
proposed rule to clarify whether the
paragraph is intended to capture all
armor piercing rounds. The Department
did not adopt this recommendation, as
the control text adopted in this rule
provides objective criteria that more
effectively identifies the ammunition
types that warrant control on the USML.
Multiple commenters recommend
revising paragraph (d)(7). One
commenter suggested adding ‘‘specially
designed for items controlled in USML
Category II’’ to ensure that articles
common to those used with non-USML
items are not described. The Department
agrees and made this change.
One commenter suggested modifying
the wording in paragraph (d)(11) to
capture all artillery and ammunition
fuses and to delete ‘‘specially designed
parts therefor’’ to align with bomb
fusing wording in Category IV(h)(25).
The control correctly identifies a
capability warranting control on the
USML; fuses and arming and safing
devices for Category III articles cover a
wider range of sensitive devices that
provide the United States with a critical
military advantage, separate and apart
from the control in Category IV(h)(25),
for fuses specific to that category, so the
Department is not implementing any
change to paragraph (d)(11).
One commenter noted that paragraph
(e) controls technical data and defense
services directly related to the defense
articles controlled in paragraphs (a), (b),
and (d) and that technical data and
defense services in these areas would
not be controlled on the USML as they
are already in the public domain.
Information that is in the public domain
(see ITAR § 120.11), is not controlled;
however, defense services remain
controlled, as would any controlled
technical data.
Conforming ITAR Changes
Additionally, this final rule makes
conforming changes to several sections
of the ITAR that referred to the control
of articles formerly in USML Category
I(a). These sections are amended
because they all refer to firearms that are
now controlled on the CCL. The
firearms exemptions formerly at
§ 123.17(a) through (e) are removed and
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3827
the subsections reserved as a
consequence of the removal from the
USML of non-automatic and semiautomatic firearms and their transfer to
the CCL. Section 123.17 is renamed
‘‘Exemption for personal protective
gear’’ (formerly ‘‘Exports of firearms,
ammunition, and personal protective
gear’’) to accurately reflect the articles
permitted for export without a license
by that section. Sections 123.16(b)(2)
and (6) are amended to make
conforming changes to reflect the
removal of the § 123.17 firearms
exemptions, as is the policy guidance on
Zimbabwe found at § 126.1(s). The text
of § 123.18 is removed, as it described
exemptions for firearms that are now
controlled for export by the Department
of Commerce, and the section placed
into reserve. The text of § 123.16(b)(7)
referencing the removed § 123.18
exemption is also removed and the
subsection placed in reserve. In
addition, § 124.14(c)(9) is amended to
remove the example of ‘‘sporting
firearms for commercial resale.’’
Section 129.1(b) of the ITAR is
amended to clarify that the regulations
on brokering activities in part 129 apply
to those defense articles and defense
services designated as such on the
USML and those items described on the
USMIL (27 CFR 447.21). Section 129.4
of the ITAR is also amended to clarify
brokering requirements for items on the
USMIL that are subject to the brokering
requirements of the AECA. The articles
that are transferred to the CCL for export
control purposes, yet are on the USMIL
for permanent import control purposes,
remain subject to the brokering
requirements of part 129 with respect to
all brokering activities, including
facilitation in their manufacture abroad,
permanent import, transfer, reexport, or
retransfer. In a change from the
proposed rule, this final rule revises
slightly the proposed language of
§ 129.2(b)(2)(vii), renumbers it as (viii),
and adds a new paragraph (b)(2)(vii) to
that section, in order to definitively
exclude from the definition of brokering
activities certain domestic activities
related to the manufacture of EAR
controlled items and their export. The
revisions to § 129.4 also clarify that
foreign defense articles that are on the
USMIL require brokering authorizations.
One commenter asserted that this
rule’s revisions to § 123.15 will
unnecessarily expand congressional
notification requirements to parts,
components, and accessories under
Categories I(e) and I(g). The commenter
recommended that § 123.15 be revised
to limit the notification requirements to
‘‘USML Category I paragraphs (a)
through (d).’’ Contrary to the
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commenter’s assertion, this rule does
not extend congressional notification
requirements to parts, components, and
accessories. Department practice is, and
has been, to notify Congress of the
proposed exports of all Category I(e) and
(g) articles that meet the threshold value
requirement of $1,000,000.
One commenter expressed concern
that the proposed rule’s removal and
placement of ITAR § 123.16(b)(7) in
reserve could potentially affect the
exemption at ITAR § 123.18 regarding
firearms for personal use by civilian and
active duty members of the U.S. Armed
Forces. The Department notes in
response that amendatory instruction
number 5 of the proposed rule directed
the removal and reserving of paragraph
(b)(7) of § 123.16. In order to eliminate
any confusion regarding this action, the
final rule includes exemplary text
showing the subsection as reserved.
Several commenters suggested raising
the value of the low value shipment
exemption in ITAR § 123.17(a) from
$100 to $500 because although the rule’s
changes increase the eligible amount,
they then reduce it by shifting the
definition of value from wholesale to
selling price. The Department
appreciates this suggestion, but notes in
response that amendatory instruction 6
of the proposed and final rules directs
the removal of ITAR § 123.17(a).
One commenter noted that the current
language in ITAR § 125.4(b)(6) refers to
‘‘. . . firearms not in excess of caliber
.50 and ammunition for such weapons
. . .’’ and suggested a review to ensure
consistency with language in other areas
of the ITAR. The Department
appreciates the commenter’s suggestion
and directs the commenter’s attention to
the Note to Category I of the final rule,
paragraph (1), which uses a similar
description to the one in ITAR
§ 125.4(b)(6) and which has been
present since the 2003 CFR. The
Department believes the regulated
community clearly understands caliber
demarcation and declines to make
changes at this time. The Department
notes the commenter’s concern for
future consideration.
Multiple commenters expressed
concerns that this rule would remove
license requirements for brokers, or
potentially relinquish enforcement
authority over brokers. The Department
asserts that this rule makes no changes
to the statutory requirements for the
registration and licensing of brokers,
which remain the same under section
38(b)(1)(A)(ii) of the AECA (see 28
U.S.C. 2778) and are implemented
through ITAR part 129, which will
continue to apply to all firearms listed
on the USMIL in addition to those on
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the USML. Regarding enforcement, the
Department retains its civil enforcement
capacity for violations of the ITAR,
including all articles subject to the
brokering regulations, and the
Department of Commerce retains its
civil enforcement authority over items
subject to its jurisdiction. Additionally,
the Department of Justice retains the
ability under separate authorities to
prosecute persons criminally for
violations involving firearms on the CCL
or for brokering violations under the
AECA.
One commenter expressed concern
that this rule will create a double
licensing requirement because the scope
of ‘‘brokering activities’’ requiring
registration, fee payments, and licensing
under ITAR part 129 includes many
types of activities that occur before the
Department of Commerce will issue a
license. The Department does not intend
to impose a double licensing
requirement for individuals undertaking
activities on behalf of another to
facilitate a transaction that will require
licensing by the Department of
Commerce. Therefore, the Department is
revising the proposed § 129.2(b)(2)(vii)
and adding a new (b)(2)(viii) to clarify
that activities to facilitate the domestic
manufacture or export of items subject
to the EAR are not brokering under the
ITAR and do not require authorization
or registration.
One commenter requested
clarification regarding whether
‘‘brokering activities’’ as defined in
§ 129.2(b)(2) apply to activities to
facilitate the manufacture, export,
permanent import, transfer, reexport, or
retransfer of items designated on the
USMIL. The Department directs the
commenter to the preambles of the
proposed rule and this final rule, which
state the regulations in part 129 apply
to both USML and USMIL defense
articles and defense services.
One commenter requested
clarification regarding whether the
proposed rule’s revision to
§ 129.2(b)(2)(vii) would apply not only
to items currently controlled in USML
Categories I, II, and III, or to all items
on the USMIL that are currently subject
to the EAR (i.e., to include 600 series
items previously transferred to the
EAR). The commenter also
recommended specifying whether the
paragraph (b)(2)(vii) exclusion would
apply to activities related to exports,
reexports, or transfers of an items
subject to the EAR that does not require
use of an EAR license or license
exception (i.e., No License Required
(NLR)). The commenter assessed that
the language at (b)(2)(vii) appears to
provide a broad carve-out to the
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brokering activities definition. The
commenter also requested clarification
regarding whether the language was
intended to convey that any ITAR or
EAR approval for the items in question
is sufficient to meet this criteria and that
the approvals do not have to list the
specific consignees or end-users for the
future export, reexport, or transfer. The
Department confirms that new
provisions in § 129.2(b)(2)(vii) and (viii)
apply to all items subject to the EAR,
not just those that transitioned from
USML Categories I, II or III, to the extent
that other items subject to the EAR are
also included on the USMIL. These
provisions also clarify the use of the
NLR designation and revise the scope of
the exclusion from brokering activities
to include those activities that are
controlled by the Department of
Commerce.
Regulatory Analysis and Notices
Administrative Procedure Act
The Department of State is of the
opinion that controlling the import and
export of defense articles and services is
a military or foreign affairs function of
the United States government and that
rules implementing this function are
exempt from sections 553 (rulemaking)
and 554 (adjudications) of the
Administrative Procedure Act (APA).
Although the Department is of the
opinion that this final rule is exempt
from the rulemaking provisions of the
APA, the Department published this
rule as a proposed rule (83 FR 24198)
with a 45-day provision for public
comment and without prejudice to its
determination that controlling the
import and export of defense services is
a foreign affairs function.
Regulatory Flexibility Act
Since the Department is of the
opinion that this final rule is exempt
from the rulemaking provisions of 5
U.S.C. 553, it does not require analysis
under the Regulatory Flexibility Act.
Unfunded Mandates Reform Act of 1995
This amendment does not involve a
mandate that will result in the
expenditure by State, local, and tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
in any year and it will not significantly
or uniquely affect small governments.
Therefore, no actions were deemed
necessary under the provisions of the
Unfunded Mandates Reform Act of
1995.
Small Business Regulatory Enforcement
Fairness Act of 1996
This rulemaking has been found not
to be a major rule within the meaning
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of the Small Business Regulatory
Enforcement Fairness Act of 1996.
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Executive Orders 12372 and 13132
This rulemaking will not have
substantial direct effects on the States,
on the relationship between the national
government and the States, or on the
distribution of power and
responsibilities among the various
levels of government. Therefore, in
accordance with Executive Order 13132,
it is determined that this rulemaking
does not have sufficient federalism
implications to require consultations or
warrant the preparation of a federalism
summary impact statement. The
regulations implementing Executive
Order 12372 regarding
intergovernmental consultation on
Federal programs and activities do not
apply to this rulemaking.
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563
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, distributed impacts, and equity).
The Department believes that the
benefits of this rulemaking largely
outweigh any costs, in that many items
currently controlled on the morerestrictive USML are being moved to the
CCL.
Executive Order 13563 emphasizes
the importance of considering both
benefits and costs, both qualitative and
quantitative, 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).
The Department believes the effect of
this rule will decrease the number of
license applications submitted to the
Department under OMB Control No.
1405–0003 by approximately 10,000
annually, for which the average burden
estimates are one hour per form, which
results in a burden reduction of 10,000
hours per year.
The Department of Commerce
estimates that 4,000 of the 10,000
licenses that were required by the
Department are eligible for license
exceptions or otherwise not require a
separate license under the EAR. The
Department of Commerce estimates that
6,000 transactions require an individual
validated license. The Department of
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Commerce collects the information
necessary to process license
applications under OMB Control No.
0694–0088. The Department of
Commerce estimates that each manual
or electronic response to that
information collection takes
approximately 43.8 minutes. The
Department of Commerce estimates that
the 6,000 licenses constitute a burden of
4,380 hours for this collection.
The Department estimates a reduction
in burden of 10,000 hours due to the
transition of these items to the
Department of Commerce. The
Department of Commerce estimates that
the burden of submitting license
applications for these items to the
Department of Commerce is 4,380
burden hours. Therefore, the net burden
is reduced by 5,620 hours. The
Department estimates that the burden
hour cost for completing a license
application is $44.94 per hour.
Therefore, the estimated net reduction
of 5,620 burden hours per year is
estimated to result in annual burden
hour cost reduction of $252,562.80.
In addition to the reduction in burden
hours, there are direct cost savings to
the State Department that result from
the 10,000 license applications no
longer required under the ITAR for
items transferred to the EAR. Pursuant
to the AECA, ITAR, and associated
delegations of authority, every person
who engages in the business of
brokering activities, manufacturing,
exporting, or temporarily importing any
defense articles or defense services must
register with the Department of State
and pay a registration fee. The
Department of State adopted the current
fee schedule to align the registration
fees with the cost of licensing,
compliance and other related activities.
The Department of Commerce will incur
additional costs to administer these
controls and process license
applications. However, the Department
of Commerce does not charge a
registration fee to exporters under the
EAR and we are unable to estimate the
increase in costs to the Department of
Commerce to process the new license
applications. Therefore, we are unable
to provide an estimate of the net change
in resource costs to the government
from moving these items from the ITAR
to the EAR. It is the case, however, that
the movement of these items from the
ITAR will result in a direct transfer of
$2,500,000 per year from the
government to the exporting public, less
the increased cost to taxpayers, because
they will no longer pay fees to the State
Department and there is no fee charged
by the Department of Commerce to
apply for a license.
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Estimated Cost Savings
The Department of State is of the
opinion that controlling the import and
export of defense articles and services is
a foreign affairs function of the United
States government and that rules
implementing this function are exempt
from Executive Order 13771 (82 FR
9339, February 3, 2017). Although the
Department is of the opinion that this
final rule is exempt from E.O. 13771 and
without prejudice to its determination
that controlling the import and export of
defense services is a foreign affairs
function, this rule is an E.O. 13771
deregulatory action. The Department
has conducted this analysis in close
consultation with the Department of
Commerce.
The total cost savings will be
$1,376,281 in present (2017) dollars. To
allow for cost comparisons under E.O.
13771, the value of these costs savings
in 2016 dollars is $1,353,574. Assuming
a 7% discount rate, the present value of
these cost savings in perpetuity is
$19,336,771. Since the costs savings of
this rule are expected to be permanent
and recurring, the annualized value of
these cost savings is also $1,353,574 in
2016 dollars.
Executive Order 12988
The Department of State reviewed this
rulemaking in light of sections 3(a) and
3(b)(2) of Executive Order 12988 to
eliminate ambiguity, minimize
litigation, establish clear legal
standards, and reduce burden.
Executive Order 13175
The Department of State determined
that this rulemaking will not have tribal
implications, will not impose
substantial direct compliance costs on
Indian tribal governments, and will not
preempt tribal law. Accordingly,
Executive Order 13175 does not apply
to this rulemaking.
Paperwork Reduction Act
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.
The Department of State believes
there will be a reduction in burden for
the following forms: OMB Control No.
1405–0003, Application/License for
Permanent Export of Unclassified
Defense Articles and Related
Unclassified Technical Data; OMB
control number 1405–0092, Application
for Amendment of a DSP–5 License;
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OMB control number 1405–0013,
Application/License for Temporary
Import of Unclassified Defense Articles;
OMB control number 1405–0092,
Application for Amendment to a DSP–
61 License ; OMB control number 1405–
0023, Application/License for
Temporary Export of Unclassified
Defense Articles; OMB control number
1405–0092, Application for Amendment
to a DSP–73 License ; OMB control
number 1405–0022, Application/
License for Permanent/Temporary
Export or Temporary Import of
Classified Defense Articles and Related
Classified Technical Data; OMB control
number 1405–0174, Request for
Advisory Opinion; and OMB control
number 1405–0173, Request To Change
End User, End Use and/or Destination of
Hardware. This form is an application
that, when completed and approved by
Department of State, constitutes the
official record and authorization for the
commercial export of unclassified U.S.
Munitions List articles and technical
data, pursuant to the AECA and ITAR.
For an analysis of the reduction in
burden for OMB Control No. 1405–0003,
see the above Section for E.O. 12866.
The proposed version of this rule
referenced only the first of these forms.
However, subsequent its release, the
Department of State submitted the
remaining eight forms for public notice
via Federal Register Public Notice
10646 on February 12, 2019. As such,
this final rule is being amended to
reflect all nine forms associated with the
changes reflected in this rule.
List of Subjects in 22 CFR Parts 121,
123, 124, 126, and 129
Arms and munitions, Exports.
Accordingly, for the reasons set forth
above, title 22, chapter I, subchapter M,
parts 121, 123, 124, 126, and 129 are
amended as follows:
PART 121—THE UNITED STATES
MUNITIONS LIST
1. The authority citation for part 121
continues to read as follows:
■
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Authority: Secs. 2, 38, and 71, Pub. L. 90–
629, 90 Stat. 744 (22 U.S.C. 2752, 2778,
2797); 22 U.S.C. 2651a; Pub. L. 105–261, 112
Stat. 1920; Section 1261, Pub. L. 112–239;
E.O. 13637, 78 FR 16129.
2. Section 121.1 is amended by
revising U.S. Munitions List Categories
I, II, and III to read as follows:
■
§ 121.1
*
*
The United States Munitions List.
*
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*
15:54 Jan 22, 2020
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Category I—Firearms and Related
Articles
*(a) Firearms using caseless
ammunition.
*(b) Fully automatic firearms to .50
caliber (12.7 mm) inclusive.
*(c) Firearms specially designed to
integrate fire control, automatic
tracking, or automatic firing (e.g.,
Precision Guided Firearms).
Note 1 to paragraph (c): Integration
does not include only attaching to the
firearm or rail.
*(d) Fully automatic shotguns
regardless of gauge.
*(e) Silencers, mufflers, and sound
suppressors.
(f) [Reserved]
(g) Barrels, receivers (frames), bolts,
bolt carriers, slides, or sears specially
designed for the articles in paragraphs
(a), (b), and (d) of this category.
(h) Parts, components, accessories,
and attachments, as follows:
(1) Drum and other magazines for
firearms to .50 caliber (12.7 mm)
inclusive with a capacity greater than 50
rounds, regardless of jurisdiction of the
firearm, and specially designed parts
and components therefor;
(2) Parts and components specially
designed for conversion of a semiautomatic firearm to a fully automatic
firearm;
(3) Parts and components specially
designed for defense articles described
in paragraphs (c) and (e) of this
category; or
(4) Accessories or attachments
specially designed to automatically
stabilize aim (other than gun rests) or for
automatic targeting, and specially
designed parts and components
therefor.
(i) Technical data (see § 120.10 of this
subchapter) and defense services (see
§ 120.9 of this subchapter) directly
related to the defense articles described
in this category and classified technical
data directly related to items controlled
in ECCNs 0A501, 0B501, 0D501, and
0E501 and defense services using the
classified technical data. (See § 125.4 of
this subchapter for exemptions.)
(j)–(w) [Reserved]
(x) Commodities, software, and
technology subject to the EAR (see
§ 120.42 of this subchapter) used in or
with defense articles.
Note to paragraph (x): Use of this
paragraph is limited to license
applications for defense articles where
the purchase documentation includes
commodities, software, or technology
subject to the EAR (see § 123.1(b) of this
subchapter).
Note 1 to Category I: The following
interpretations explain and amplify the
terms used in this category:
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(1) A firearm is a weapon not over .50
caliber (12.7 mm) which is designed to
expel a projectile by the deflagration of
propellant;
(2) A fully automatic firearm or
shotgun is any firearm or shotgun that
shoots, is designed to shoot, or can
readily be restored to shoot,
automatically more than one shot,
without manual reloading, by a single
function of the trigger; and
(3) Caseless ammunition is firearm
ammunition without a cartridge case
that holds the primer, propellant, and
projectile together as a unit.
Category II—Guns and Armament
(a) Guns and armament greater than
.50 caliber (12.7 mm), as follows:
*(1) Guns, howitzers, artillery, and
cannons;
*(2) Mortars;
*(3) Recoilless rifles;
*(4) Grenade launchers; or
(5) Developmental guns and
armament greater than .50 caliber (12.7
mm) funded by the Department of
Defense and specially designed parts
and components therefor.
Note 1 to paragraph (a)(5): This
paragraph does not control guns and
armament greater than .50 caliber (12.7
mm):
(a) in production;
(b) determined to be subject to the
EAR via a commodity jurisdiction
determination (see § 120.4 of this
subchapter); or
(c) identified in the relevant
Department of Defense contract or other
funding authorization as being
developed for both civil and military
applications.
Note 2 to paragraph (a)(5): Note 1 to
pargraph (a)(5) does not apply to
defense articles enumerated on the U.S.
Munitions List, whether in production
or development.
Note 3 to paragraph (a)(5): This
provision is applicable to those
contracts or other funding
authorizations that are dated January 23,
2021, or later.
Note 1 to paragraph (a): This
paragraph does not include: Nonautomatic and non-semi-automatic
rifles, carbines, and pistols between .50
(12.7 mm) and .72 caliber (18.288 mm)
that are controlled on the CCL under
ECCN 0A501; shotguns controlled on
the CCL under ECCN 0A502; black
powder guns and armaments
manufactured between 1890 and 1919
controlled on the CCL under ECCN
0A602; or black powder guns and
armaments manufactured earlier than
1890.
Note 2 to paragraph (a): Guns and
armament when integrated into their
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carrier (e.g., surface vessels, ground
vehicles, or aircraft) are controlled in
the category associated with the carrier.
Self-propelled guns and armament are
controlled in USML Category VII.
Towed guns and armament and standalone guns and armament are controlled
under this category.
(b) Flamethrowers with an effective
range greater than or equal to 20 meters.
(c) [Reserved]
*(d) Kinetic energy weapon systems
specially designed for destruction or
rendering mission-abort of a target.
Note 1 to paragraph (d): Kinetic
energy weapons systems include but are
not limited to launch systems and
subsystems capable of accelerating
masses larger than 0.1g to velocities in
excess of 1.6 km/s, in single or rapid fire
modes, using methods such as:
Electromagnetic, electrothermal,
plasma, light gas, or chemical. This does
not include launch systems and
subsystems used for research and testing
facilities subject to the EAR, which are
controlled on the CCL under ECCN
2B232.
(e) Signature reduction devices
specially designed for the guns and
armament controlled in paragraphs (a),
(b), and (d) of this category (e.g., muzzle
flash suppression devices).
(f)–(i) [Reserved]
(j) Parts, components, accessories, and
attachments, as follows:
(1) Gun barrels, rails, tubes, and
receivers specially designed for the
weapons controlled in paragraphs (a)
and (d) of this category;
(2) Sights specially designed to orient
indirect fire weapons;
(3) Breech blocks for the weapons
controlled in paragraphs (a) and (d) of
this category;
(4) Firing mechanisms for the
weapons controlled in paragraphs (a)
and (d) of this category and specially
designed parts and components
therefor;
(5) Systems for firing superposed or
stacked ammunition and specially
designed parts and components
therefor;
(6) Servo-electronic and hydraulic
elevation adjustment mechanisms;
(7) Muzzle brakes;
(8) Bore evacuators;
(9) Independent ammunition handling
systems for the guns and armament
controlled in paragraphs (a), (b), and (d)
of this category;
(10) Components for independently
powered ammunition handling systems
and platform interface, as follows:
(i) Mounts;
(ii) Carriages;
(iii) Gun pallets;
(iv) Hydro-pneumatic equilibration
cylinders; or
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(v) Hydro-pneumatic systems capable
of scavenging recoil energy to power
howitzer functions;
Note 1 to paragraph (j)(10): For
weapons mounts specially designed for
surface vessels and special naval
equipment, see Category VI. For
weapons mounts specially designed for
ground vehicles, see Category VII.
(11) Ammunition containers/drums,
ammunition chutes, ammunition
conveyor elements, ammunition feeder
systems, and ammunition container/
drum entrance and exit units, specially
designed for the guns and armament
controlled in paragraphs (a), (b), and (d)
of this category;
(12) Systems and equipment for the
guns and armament controlled in
paragraphs (a) and (d) of this category
for use in programming ammunition,
and specially designed parts and
components therefor;
(13) Aircraft/gun interface units to
support gun systems with a designed
rate of fire greater than 100 rounds per
minute and specially designed parts and
components therefor;
(14) Recoil systems specially designed
to mitigate the shock associated with the
firing process of guns integrated into air
platforms and specially designed parts
and components therefor;
(15) Prime power generation, energy
storage, thermal management,
conditioning, switching, and fuelhandling equipment, and the electrical
interfaces between the gun power
supply and other turret electric drive
components specially designed for
kinetic weapons controlled in paragraph
(d) of this category;
(16) Kinetic energy weapon target
acquisition, tracking fire control, and
damage assessment systems and
specially designed parts and
components therefor; or
*(17) Any part, component, accessory,
attachment, equipment, or system that:
(i) Is classified;
(ii) Contains classified software; or
(iii) Is being developed using
classified information.
Note 1 to paragraph (j)(17):
‘‘Classified’’ means classified pursuant
to Executive Order 13526, or
predecessor order, and a security
classification guide developed pursuant
thereto or equivalent, or to the
corresponding classification rules of
another government or
intergovernmental organization.
(k) Technical data (see § 120.10 of this
subchapter) and defense services (see
§ 120.9 of this subchapter) directly
related to the defense articles described
in paragraphs (a), (b), (d), (e), and (j) of
this category and classified technical
data directly related to items controlled
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3831
in ECCNs 0A602, 0B602, 0D602, and
0E602 and defense services using the
classified technical data. (See § 125.4 of
this subchapter for exemptions.)
(l)–(w) [Reserved]
(x) Commodities, software, and
technology subject to the EAR (see
§ 120.42 of this subchapter) used in or
with defense articles.
Note to paragraph (x): Use of this
paragraph is limited to license
applications for defense articles where
the purchase documentation includes
commodities, software, or technology
subject to the EAR (see § 123.1(b) of this
subchapter).
Category III—Ammunition and
Ordnance
(a) Ammunition, as follows:
*(1) Ammunition that incorporates a
projectile controlled in paragraph (d)(1)
or (3) of this category;
*(2) Ammunition preassembled into
links or belts;
*(3) Shotgun ammunition that
incorporates a projectile controlled in
paragraph (d)(2) of this category;
*(4) Caseless ammunition
manufactured with smokeless powder;
Note 1 to paragraph (a)(4): Caseless
ammunition is ammunition without a
cartridge case that holds the primer,
propellant, and projectile together as a
unit.
*(5) Ammunition, except shotgun
ammunition, based on non-metallic
cases, or non-metallic cases that have
only a metallic base, which result in a
total cartridge mass 80% or less than the
mass of a brass- or steel-cased cartridge
that provides comparable ballistic
performance;
*(6) Ammunition employing
pyrotechnic material in the projectile
base or any ammunition employing a
projectile that incorporates tracer
materials of any type having peak
radiance above 710 nm and designed to
be observed primarily with night vision
optical systems;
*(7) Ammunition for fully automatic
firearms that fire superposed or stacked
projectiles or for guns that fire
superposed or stacked projectiles;
*(8) Electromagnetic armament
projectiles or billets for weapons with a
design muzzle energy exceeding 5 MJ;
*(9) Ammunition, not specified
above, for the guns and armaments
controlled in Category II; or
(10) Developmental ammunition
funded by the Department of Defense
and specially designed parts and
components therefor.
Note 1 to paragraph (a)(10): This
paragraph does not control ammunition:
(a) in production;
(b) determined to be subject to the
EAR via a commodity jurisdiction
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determination (see § 120.4 of this
subchapter); or
(c) identified in the relevant
Department of Defense contract or other
funding authorization as being
developed for both civil and military
applications.
Note 2 to paragraph (a)(10): Note 1
does not apply to defense articles
enumerated on the U.S. Munitions List,
whether in production or development.
Note 3 to paragraph (a)(10): This
provision is applicable to those
contracts or other funding
authorizations that are dated January 23,
2021, or later.
(b) Ammunition/ordnance handling
equipment specially designed for the
articles controlled in this category, as
follows:
(1) Belting, linking, and de-linking
equipment; or
(2) Fuze setting devices.
(c) [Reserved]
(d) Parts and components for the
articles in this category, as follows:
(1) Projectiles that use pyrotechnic
tracer materials that incorporate any
material having peak radiance above
710 nm or are incendiary or explosive;
(2) Shotgun projectiles that are
flechettes, incendiary, tracer, or
explosive;
Note 1 to paragraph (d)(2): This
paragraph does not include explosive
projectiles specially designed to
produce noise for scaring birds or other
pests (e.g., bird bombs, whistlers,
crackers).
(3) Projectiles of any caliber produced
from depleted uranium;
(4) Projectiles not specified above,
guided or unguided, for the items
controlled in USML Category II, and
specially designed parts and
components therefor (e.g., fuzes,
rotating bands, cases, liners, fins,
boosters);
(5) Canisters or sub-munitions (e.g.,
bomblets or minelets), and specially
designed parts and components
therefor, for the guns or armament
controlled in USML Category II;
(6) Projectiles that employ tips (e.g.,
M855A1 Enhanced Performance Round
(EPR)) or cores regardless of caliber,
produced from one or a combination of
the following: Tungsten, steel, or
beryllium copper alloy;
(7) Cartridge cases, powder bags, or
combustible cases specially designed for
the items controlled in USML Category
II;
(8) Non-metallic cases, including
cases that have only a metallic base, for
the ammunition controlled in paragraph
(a)(5) of this category;
(9) Cartridge links and belts for fully
automatic firearms and guns controlled
in USML Categories I or II;
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(10) Primers other than Boxer, Berdan,
or shotshell types;
Note 1 to paragraph (d)(10): This
paragraph does not control caps or
primers of any type in use prior to 1890.
(11) Safing, arming, and fuzing
components (to include target detection
and proximity sensing devices) for the
ammunition in this category and
specially designed parts therefor;
(12) Guidance and control
components for the ammunition in this
category and specially designed parts
therefor;
(13) Terminal seeker assemblies for
the ammunition in this category and
specially designed parts and
components therefor;
(14) Illuminating flares or target
practice projectiles for the ammunition
controlled in paragraph (a)(9) of this
category; or
*(15) Any part, component, accessory,
attachment, equipment, or system that:
(i) Is classified;
(ii) Contains classified software; or
(iii) Is being developed using
classified information.
Note 1 to paragraph (d)(15):
‘‘Classified’’ means classified pursuant
to Executive Order 13526, or
predecessor order, and a security
classification guide developed pursuant
thereto or equivalent, or to the
corresponding classification rules of
another government or
intergovernmental organization.
(e) Technical data (see § 120.10 of this
subchapter) and defense services (see
§ 120.9 of this subchapter) directly
related to the defense articles
enumerated in paragraphs (a), (b), and
(d) of this category and classified
technical data directly related to items
controlled in ECCNs 0A505, 0B505,
0D505, and 0E505 and defense services
using the classified technical data. (See
§ 125.4 of this subchapter for
exemptions.)
(f)–(w) [Reserved]
(x) Commodities, software, and
technology subject to the EAR (see
§ 120.42 of this subchapter) used in or
with defense articles.
Note to paragraph (x): Use of this
paragraph is limited to license
applications for defense articles where
the purchase documentation includes
commodities, software, or technology
subject to the EAR (see § 123.1(b) of this
subchapter).
Note 1 to Category III: This category
does not control ammunition crimped
without a projectile (blank star) and
dummy ammunition with a pierced
powder chamber.
Note 2 to Category III: This category
does not control cartridge and shell
casings that, prior to export, have been
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Fmt 4700
Sfmt 4700
rendered useless beyond the possibility
of restoration for use as a cartridge or
shell casing by means of heating, flame
treatment, mangling, crushing, cutting,
or popping.
Note 3 to Category III: Grenades
containing non-lethal or less lethal
projectiles are under the jurisdiction of
the Department of Commerce.
*
*
*
*
*
PART 123—LICENSES FOR THE
EXPORT OF DEFENSE ARTICLES
3. The authority citation for part 123
continues to read as follows:
■
Authority: Secs. 2, 38, and 71, Pub. L. 90–
629, 90 Stat. 744 (22 U.S.C. 2752, 2778,
2797); 22 U.S.C. 2753; 22 U.S.C. 2651a; 22
U.S.C. 2776; Pub. L. 105–261, 112 Stat. 1920;
Sec 1205(a), Pub. L. 107–228; Sec. 520, Pub.
L. 112–55; Section 1261, Pub. L. 112–239;
E.O. 13637, 78 FR 16129.
4. Section 123.15 is amended by
revising paragraph (a)(3) to read as
follows:
■
§ 123.15 Congressional certification
pursuant to Section 36(c) of the Arms
Export Control Act.
(a) * * *
(3) A license for export of defense
articles controlled under Category I
paragraphs (a) through (g) of the United
States Munitions List, § 121.1 of this
subchapter, in an amount of $1,000,000
or more.
*
*
*
*
*
■ 5. Section 123.16 is amended by
revising paragraphs (b)(2) introductory
text and (b)(6) and removing and
reserving paragraph (b)(7) to read as
follows:
§ 123.16 Exemptions of general
applicability.
*
*
*
*
*
(b) * * *
(2) Port Directors of U.S. Customs and
Border Protection shall permit the
export of parts or components without
a license when the total value does not
exceed $500 in a single transaction and:
*
*
*
*
*
(6) For exemptions for personal
protective gear, refer to § 123.17.
(7) [Reserved]
*
*
*
*
*
■ 6. Section 123.17 is amended by
revising the section heading, removing
and reserving paragraphs (a) through (e),
and revising paragraph (j) to read as
follows:
§ 123.17
gear.
Exemption for personal protective
*
*
*
*
*
(j) If the articles temporarily exported
pursuant to paragraphs (f) through (i) of
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this section are not returned to the
United States, a detailed report must be
submitted to the Office of Defense Trade
Controls Compliance in accordance
with the requirements of § 127.12(c)(2)
of this subchapter.
*
*
*
*
*
§ 123.18
[Removed and Reserved]
7. Section 123.18 is removed and
reserved.
■
PART 124—AGREEMENTS, OFFSHORE PROCUREMENT, AND OTHER
DEFENSE SERVICES
8. The authority citation for part 124
continues to read as follows:
§ 126.1 Prohibited exports, imports, and
sales to or from certain countries.
*
*
*
*
*
(s) Zimbabwe. It is the policy of the
United States to deny licenses or other
approvals for exports or imports of
defense articles and defense services
destined for or originating in Zimbabwe,
except that a license or other approval
may be issued, on a case-by-case basis,
for the temporary export of firearms and
ammunition for personal use by
individuals (not for resale or retransfer,
including to the Government of
Zimbabwe).
*
*
*
*
*
■
Authority: Secs. 2, 38, and 71, Pub. L. 90–
629, 90 Stat. 744 (22 U.S.C. 2752, 2778,
2797); 22 U.S.C. 2651a; 22 U.S.C. 2776;
Section 1514, Pub. L. 105–261; Pub. L. 111–
266; Section 1261, Pub. L. 112–239; E.O.
13637, 78 FR 16129.
9. Section 124.14 is amended by
revising paragraph (c)(9) to read as
follows:
■
§ 129.1
PART 126—GENERAL POLICIES AND
PROVISIONS
10. The authority citation for part 126
continues to read as follows:
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■
Authority: Secs. 2, 38, 40, 42 and 71, Pub.
L. 90–629, 90 Stat. 744 (22 U.S.C. 2752, 2778,
2780, 2791 and 2797); 22 U.S.C. 2651a; 22
U.S.C. 287c; E.O. 12918, 59 FR 28205; 3 CFR,
1994 Comp., p. 899; Sec. 1225, Pub. L. 108–
375; Sec. 7089, Pub. L. 111–117; Pub. L. 111–
266; Section 7045, Pub. L. 112–74; Section
7046, Pub. L. 112–74; E.O. 13637, 78 FR
16129.
11. Section 126.1 is amended by
revising paragraph (s) to read as follows:
Jkt 250001
Purpose.
*
*
*
*
*
(c) * * *
(9) Unless the articles covered by the
agreement are in fact intended to be
distributed to private persons or entities
(e.g., cryptographic devices and
software for financial and business
applications), the following clause must
be included in all warehousing and
distribution agreements: ‘‘Sales or other
transfers of the licensed article shall be
limited to governments of the countries
in the distribution territory and to
private entities seeking to procure the
licensed article pursuant to a contract
with a government within the
distribution territory, unless the prior
written approval of the U.S. Department
of State is obtained.’’
*
*
*
*
*
15:54 Jan 22, 2020
Authority: Section 38, Pub. L. 104–164,
110 Stat. 1437, (22 U.S.C. 2778); E.O. 13637,
78 FR 16129.
13. Section 129.1 is amended by
revising paragraph (b) to read as follows:
*
VerDate Sep<11>2014
12. The authority citation for part 129
continues to read as follows:
■
■
§ 124.14 Exports to warehouses or
distribution points outside the United
States.
■
PART 129—REGISTRATION AND
LICENSING OF BROKERS
*
*
*
*
(b) All brokering activities identified
in this subchapter apply equally to
those defense articles and defense
services designated in § 121.1 of this
subchapter and those items designated
in 27 CFR 447.21 (U.S. Munitions
Import List).
■ 14. Section 129.2 is amended by:
■ a. In paragraph (b)(2)(v), removing the
word ‘‘or’’ at the end of the paragraph;
■ b. Removing the ‘‘.’’ at the end of
paragraph (b)(2)(vi) and adding ‘‘;’’ in its
place; and
■ c. Adding paragraphs (b)(2)(vii) and
(viii).
The addition reads as follows:
§ 129.2
Definitions.
*
*
*
*
*
(b) * * *
(2) * * *
(vii) Activities by persons to facilitate
the manufacture in the United States or
export of an item subject to the EAR; or
(viii) Activities by persons to facilitate
the reexport, or transfer of an item
subject to the EAR that has been
approved pursuant to a license, license
exception, or no license required
authorization under the EAR or a
license or other approval under this
subchapter.
*
*
*
*
*
■ 15. Section 129.4 is amended by
revising paragraphs (a)(1) and (a)(2)(i) to
read as follows:
§ 129.4
Requirement for approval.
(a) * * *
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3833
(1) Any foreign defense article or
defense service enumerated in part 121
of this subchapter (see § 120.44 of this
subchapter, and § 129.5 for exemptions)
and those foreign origin items on the
U.S. Munitions Import List (see 27 CFR
447.21); or
(2) * * *
(i) Firearms and other weapons of a
nature described by Category I(a)
through (d), Category II(a) and (d), and
Category III(a) of § 121.1 of this
subchapter or Category I(a) through (c),
Category II(a), and Category III(a) of the
U.S. Munitions Import List (see 27 CFR
447.21);
*
*
*
*
*
■ 16. Section 129.6 is amended by
revising paragraph (b)(3)(i) to read as
follows:
§ 129.6
Procedures for obtaining approval.
*
*
*
*
*
(b) * * *
(3) * * *
(i) The U.S. Munitions List (see
§ 121.1 of this subchapter) or U.S.
Munitions Import List (see 27 CFR
447.21) category and sub-category for
each article;
*
*
*
*
*
Michael R. Pompeo,
Secretary of State.
[FR Doc. 2020–00574 Filed 1–17–20; 11:15 am]
BILLING CODE 4710–25–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9891]
RIN 1545–BM95
Transfers of Certain Property by U.S.
Persons to Partnerships With Related
Foreign Partners
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations and removal of
temporary regulations.
AGENCY:
This document contains final
regulations that provide guidance
applicable to transfers of appreciated
property by U.S. persons to partnerships
with foreign partners related to the
transferor. Specifically, when a U.S.
person transfers appreciated property to
a partnership with a foreign partner
related to the transferor, the regulations
override the general nonrecognition rule
unless the partnership adopts the
remedial allocation method and certain
other requirements are satisfied. The
SUMMARY:
E:\FR\FM\23JAR1.SGM
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Agencies
[Federal Register Volume 85, Number 15 (Thursday, January 23, 2020)]
[Rules and Regulations]
[Pages 3819-3833]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00574]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF STATE
22 CFR Parts 121, 123, 124, 126, and 129
[Public Notice: 10603]
RIN 1400-AE30
International Traffic in Arms Regulations: U.S. Munitions List
Categories I, II, and III
AGENCY: Department of State.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of State (the Department) amends the
International Traffic in Arms Regulations (ITAR) to revise Categories
I--firearms, close assault weapons and combat shotguns, II--guns and
armament, and III--ammunition/ordnance of the U.S. Munitions List
(USML) to describe more precisely the articles that provide a critical
military or intelligence advantage or, in the case of weapons, perform
an inherently military function and thus warrant export and temporary
import control on the USML. These revisions complete the initial review
of the USML that the Department began in 2011. Items not subject to the
ITAR or to the exclusive licensing jurisdiction of any other set of
regulations are subject to the Export Administration Regulations.
DATES: This final rule is effective March 9, 2020.
FOR FURTHER INFORMATION CONTACT: Sarah Heidema, Office of Defense Trade
Controls Policy, Department of State, telephone (202) 663-2809; email
[email protected]. ATTN: Regulatory Change, USML Categories
I, II, and III.
SUPPLEMENTARY INFORMATION: The Directorate of Defense Trade Controls
(DDTC), U.S. Department of State, administers the International Traffic
in Arms Regulations (ITAR) (22 CFR parts 120 through 130). On May 24,
2018, DDTC published a proposed rule, 83 FR 24198, for public comment
regarding proposed revisions to Categories I, II, and III of the ITAR's
U.S. Munitions List (USML) (22 CFR 121.1). After review of received
comments and with the revisions to the proposed rule further described
below, DDTC now publishes this final rule to amend the ITAR.
The articles and related technical data subject to the jurisdiction
of the ITAR, i.e., ``defense articles,'' are identified on the USML.
With few exceptions, items not subject to the export control
jurisdiction of the ITAR are subject to the jurisdiction of the Export
Administration Regulations (EAR, 15 CFR parts 730 through 774, which
includes the Commerce Control List (CCL) in Supplement No. 1 to part
774), administered by the Bureau of Industry and Security (BIS), U.S.
Department of Commerce. Both the ITAR and the EAR impose license
requirements on exports and reexports. Items not subject to the ITAR or
to the exclusive licensing jurisdiction of any other set of regulations
are subject to the EAR. The Department of Commerce is publishing a
companion rule in this edition of the Federal Register.
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. All references to the USML in this rule, however,
are to the list of AECA defense articles that are controlled for
purposes of export or temporary import pursuant to the ITAR, and not to
the list of AECA defense articles on the United States Munitions Import
List (USMIL) that are controlled by the Bureau of Alcohol, Tobacco,
Firearms and Explosives (ATF) for purposes of permanent import under
its regulations at 27 CFR part 447. References to the USMIL are to the
list of AECA defense articles controlled by ATF for purposes of
permanent import.
Section 38(b)(1)(A)(ii) of the AECA, requires, with limited
exceptions, registration of persons who engage in the business of
brokering activities with respect to the manufacture, export, import,
or transfer of any defense article or defense service designated by the
President as such under section 38(a)(1) and licensing for such
activities. Through Executive Order 13637, the President delegated the
responsibility for registration and licensing of brokering activities
to the Department of State with respect to defense articles or defense
services controlled either for purposes of export by the Department of
State or for purposes of permanent import by ATF. Section 129.1 of the
ITAR states this requirement. As such, all defense articles described
in the USMIL or the USML are subject to the brokering controls
administered by the U.S. Department of State in part 129 of the ITAR.
The transfer of jurisdiction from the ITAR's USML to the EAR's
[[Page 3820]]
CCL for purposes of export controls does not affect the list of defense
articles controlled on the USMIL under the AECA for purposes of
permanent import or brokering controls for any brokering activity,
including facilitation in their manufacture, export, permanent import,
transfer, reexport, or retransfer. This rule adds two new paragraphs,
(b)(2)(vii) and (viii), to Sec. 129.2 to update the enumerated list of
actions that are not brokering. This change is a conforming change and
is needed to address the transfer from the USML to the CCL of USMIL
defense articles that remain subject to the brokering controls, and to
ensure that the U.S. government does not impose a double licensing
requirement on the export, reexport, or retransfer of such items
subject to the EAR or continue to require registration with the
Department solely based on activities related to the manufacture of
these items.
The Department of State is engaged in an effort, described more
fully below, to revise the USML so that its scope is limited to those
defense articles that provide the United States with a critical
military or intelligence advantage or, in the case of weapons, have an
inherently military function. The Department has undertaken these
revisions pursuant to the President's delegated discretionary statutory
authority in section 38(a)(1) of the AECA to control the import and
export of defense articles and defense services in furtherance of world
peace and the security and foreign policy of the United States and to
designate those items which constitute the USML. The Department
determined that the articles in USML Categories I, II, and III that are
removed from the USML under this final rule do not meet this standard,
including many articles that are widely available in retail outlets in
the United States and abroad (such as many firearms previously
described in Category I, paragraph (a), including, for example, a .22
caliber rifle).
The descriptions below describe the status of the subject
categories of the USML and CCL as of the effective date of this rule
and the companion rule published by the Department of Commerce in this
Federal Register issue. Any reference in the preamble to this final
rule to transfer from the USML to the CCL reflects the combined effects
of removal of the defense article from the controls of the ITAR by
virtue of the removal of an item (i.e., enumerated control text) from
the USML by this rule and the corresponding adoption of the former
defense article as an item subject to the EAR by action of the
companion rule. Comments regarding the overall rule are addressed
immediately below, while comments specific to a Category or amended
section of the ITAR are addressed in the relevant discussion of
revisions to Categories I, II, or III, or in the discussion under the
title of ``Conforming ITAR Changes.''
Comments of General Applicability
The Department believes that a restatement of the overall
principles behind the multi-year review of the USML and the efforts to
better harmonize the ITAR and the EAR and the larger U.S. government's
export control system is applicable to many of the comments received
and to the reasoning behind this rule. Therefore, before addressing
individual comments, the Department reiterates that it, along with its
interagency partners, is engaged in a years-long effort to revise the
USML to limit its scope to those items that provide the United States
with a critical military or intelligence advantage or, in the case of
weapons, perform an inherently military function. Review of the USML is
statutorily required by section 38(f) of the AECA, and the Department
conducts this review in accordance with, and in full recognition of,
the President's authority, conferred in section 38(a) of the Act, to
control the import and export of defense articles and defense services
in furtherance of world peace and the security and foreign policy of
the United States, and to designate those items that constitute the
USML. In connection with this effort, the Department has published 26
final, or interim final, rules revising eighteen of the twenty-one USML
categories, removing less sensitive items from the USML. While a wide
range of interagency stakeholders review and clear the Federal Register
notices that revise the USML, the Department works particularly closely
with the Departments of Defense and Commerce to solicit their views on
the appropriate composition of the USML. As required by Executive Order
13637, the Department obtains the concurrence of the Secretary of
Defense for designations, including changes in designations, of items
or categories of items that are defense articles and defense services
enumerated on the USML. The engagement with the Department of Commerce
is further intended to ensure that the jurisdictional posture of a
given item is clear, and that the application of ITAR or EAR controls
to that item can be discerned and understood by the public.
The Department underscores that this rule constitutes an important
part of a nine-year program of revisions that has streamlined the USML.
From the beginning, the Department has repeatedly stated its goals for
that program (see e.g., 76 FR 68694 (Nov. 7, 2011), 76 FR 76097 (Dec.
6, 2011), 80 FR 11313 (Mar. 2, 2015), 82 FR 4226 (Jan. 13, 2017)).
First, that it is seeking to better focus its resources on protecting
those articles and technologies that provide the United States with a
critical military or intelligence advantage. As applied to this rule,
for example, firearms and firearms technology that are otherwise
readily available do not provide such an advantage, whereas an M134
Minigun or the next generation squad automatic rifle continues to
warrant USML control even if there is some limited civil availability
for either. Second, to resolve jurisdictional confusion between the
ITAR and EAR among the regulated community through revision to ``bright
line'' positive lists. Third, to provide clarity to the regulated
community thereby making it easier for exporters to comply with the
regulations and enable them to compete more successfully in the global
marketplace. Finally, to develop a regulatory system that supports
enhanced interoperability between the United States and its allies and
partners and thereby better supports our ability to address shared
security challenges.
With respect to revisions of Categories I-III, the review was
focused on identifying the defense articles that are now controlled on
the USML that are either (i) inherently military and otherwise warrant
control on the USML or (ii) if of a type common to non-military
firearms applications, possess parameters or characteristics that
provide a critical military or intelligence advantage to the United
States. If a defense article satisfies one or both of those criteria,
it remained on the USML. For example, while the U.S. military supplies
some of its service members with sidearms for military use, a sidearm
also has many uses outside of the military, such that its function is
not inherently military and therefore it does not warrant control on
the USML. Alternatively, squad automatic weapons do not generally have
such non-military uses and remain controlled on the USML in this final
rule. Any single non-military use, however, does not negate such a
weapon's inherently military function. In summary, the Department
analyzes the patterns, both current and anticipated, of use and
availability of the defense articles and the utility they provide to
the U.S. military or intelligence community to inform the ultimate
determination as to whether control is merited on the USML.
The Department recognizes the sensitivities and foreign policy
implications associated with the sale
[[Page 3821]]
and export of small arms, light weapons, and associated equipment and
ammunition as expressed in the President's National Security Policy
Memorandum Regarding U.S. Conventional Arms Transfer Policy of April
19, 2018 (Conventional Arms Transfer Policy). Those sensitivities and
foreign policy implications will continue to be addressed through the
licensing and enforcement requirements of the Department of Commerce.
All export license applications for the items transitioning to Commerce
jurisdiction are subject to review by the interagency, specifically the
Departments of State, Defense, and Energy, as appropriate. The
Department will continue to advance its foreign policy mission by
reviewing all license applications submitted to the Department of
Commerce for the export of firearms and related technology.
Multiple commenters took issue with the proposed transfer from the
USML to the CCL of weapons that the Department determined, in
conjunction with its interagency partners, are not inherently for
military end-use, citing the fact that military and law enforcement
personnel regularly use them. As previously noted, the fact that a
military uses a specific piece of hardware is not a dispositive factor
when determining whether it has an inherently military function. Given
that the majority of the items referenced in these comments that will
transfer to the CCL through this rule are widely available in retail
outlets in the United States and abroad, and widely utilized by the
general public in the United States, it is reasonable for the
Department to determine that they do not serve an inherently military
function, absent specific characteristics that provide military users
with significantly enhanced utility, such as automatic weapons, sound
suppressors, and high capacity magazines.
Several commenters disputed that the U.S. market should be the
basis for assessing the commercial availability of firearms, as this is
not the market to which the proposed rule would be directed. The
Department recognizes that there are variations in commercial
availability of firearms not only between nations, but also within the
domestic market itself; however, this variation in availability does
not overcome the Department's assessment that the subject firearms do
not provide a critical military or intelligence advantage such that
they warrant control under the ITAR. In addition, all exports of
firearms are subject to the laws of the importing country, and the U.S.
government does not issue licenses for exporters to ship firearms to
countries where the end-use is illegal.
Several commenters predicted that the rule will make it easier for
foreign manufacturers to obtain U.S.-origin components and proprietary
technology, thereby causing U.S. firearms manufacturers to lose global
market share. The Department refers the commenters to the above-stated
objectives of this review effort, which include making it easier for
exporters to comply with export control regulations and enabling them
to compete more successfully in the global marketplace. The Department
further notes that this rule is expected to provide certain key
advantages that will substantially benefit domestic manufacturers by:
(1) Amending the regulatory burden on the U.S. commercial firearms and
ammunition industry; (2) clarifying the regulatory requirements for
independent gunsmiths; and (3) enabling foreign manufacturers to source
from small- and medium-sized U.S. companies more easily.
Several commenters predicted that this rule will diminish the
United States' ability to set global normative standards for arms
transfers and non-proliferation. The Department strongly disagrees and
remains fully committed to the goals outlined in the AECA. In
particular, the Department takes seriously its responsibility to
implement the AECA's declaration that: ``It shall be the policy of the
United States to exert leadership in the world community to bring about
arrangements for reducing the international trade in implements of war
and to lessen the danger of outbreak of regional conflict and the
burdens of armaments'' (22 U.S.C. 2751). The Department will continue
to meet this responsibility, in part, by reviewing export license
applications for items subject to the EAR that were formerly controlled
by the ITAR, including those on the Wassenaar Arrangement on Export
Controls for Conventional Arms and Dual-Use Goods and Technologies
(Wassenaar Arrangement) control lists. The Department will continue to
take into account the considerations of Section 3 of the Conventional
Arms Transfer Policy, such as the national security and foreign policy
interests of the United States, when making arms transfer decisions,
both for firearms that remain subject to the ITAR and firearms that are
subject to the EAR.
Other commenters suggested that this rule contravenes international
commitments the United States has made through mechanisms such as the
Wassenaar Arrangement. The transfer of the concerned items to the CCL
does not contravene U.S. international commitments, as the U.S.
government will continue to apply a high level of control to these
items and require U.S. government authorization for all exports of
firearms and major components.
Multiple commenters raised concerns about the role and function of
the Department of Commerce regarding the items that are transferred
from the USML to the CCL. Some commenters expressed concerns that the
Department of Commerce has neither the appropriate resources nor the
appropriate expertise or mission to process associated applications for
export. Other commenters asserted that because the Department of
Commerce, unlike the Department of State, does not charge registration
or licensing fees, the transfer to the CCL constitutes an unnecessary
burden on taxpayers. As stated previously, the Department is engaged in
an effort to revise the USML so that its scope is limited to those
defense articles that warrant the U.S. government's highest level of
export control because those defense articles offer a critical military
or intelligence advantage or, in the case of weapons, have an
inherently military function. The revisions implemented by the
Department are necessary in order to focus our resources on such
defense articles. This effort in general, and this rule in particular,
were developed in close consultation with other departments and
agencies, including the Department of Commerce. While the Department of
Commerce is best suited to address the specific details of the
implementation of its regulations and its allocation of appropriated
resources, the Department is confident that the framework for control
of firearms, and parts and components thereof, across the EAR and the
ITAR is sufficient to address the concerns of the U.S government and
does not diminish or damage the national security or foreign policy
interests of the United States. The Department does not share the
concerns expressed about the Department of Commerce's expertise or
mission, and the Department further notes that the Department of
Commerce has been licensing shotguns and shotgun ammunition, as well as
various firearms-related articles such as sighting devices and a range
of other similar articles and technologies, for decades. Additionally,
the Department of Commerce has investigated and disrupted numerous
diversion rings related to EAR-controlled items and will apply its
years of export control enforcement expertise to the items this rule
transfers to its jurisdiction.
Multiple commenters expressed a general concern that the transfer
to the
[[Page 3822]]
CCL increases the risk of overseas trafficking, proliferation, or
diversion. Multiple commenters also raised concerns about the
Department of Commerce's end-use monitoring (EUM) capabilities and the
impact this rule has on the Department of State's EUM programs. This
rule does not deregulate the export of firearms. All firearms and major
components being transferred to the CCL will continue to require export
authorization from the Department of Commerce. Further, the Department
of Commerce has both a robust EUM program and a law enforcement
division sufficiently capable of monitoring foreign recipients'
compliance with their obligations regarding the transfer, use, and
protection of items on the CCL. Additionally, the Federal Bureau of
Investigation and the Department of Homeland Security will continue to
investigate and enforce criminal violations of the export control laws
as appropriate. This rule also will not impact the Department's ability
to execute the Blue Lantern EUM program required by section 40A of the
AECA, 22 U.S.C. 2785. Finally, this rule will not affect existing
federal or state public safety laws that address domestic criminal
conduct.
Several commenters expressed concern that the Department of
Commerce will not have access to the same databases and background
information that the Department of State uses to evaluate license
applications. Similarly, some commenters expressed concern that as a
result of this rule some exporters will no longer be subject to U.S.
government registration requirements, thereby depriving regulators of
an important source of information and decreasing transparency and
reporting regarding firearms exports. The Department considered these
concerns and determined that the interagency license review process
maintains appropriate oversight of the articles at issue. The
Department of Commerce's export licensing requirements and process are
calibrated both to the sensitivity of the article and the proposed
destination. Additionally, all requests for export licenses for
firearms remain subject to interagency review, including by the
Department of State.
Several commenters suggested that the Department create a
registration exemption or reduce registration fees for small volume
non-exporting firearms manufacturers. Multiple commenters similarly
suggested modifying ITAR Sec. 122.1 to include a minimum size
requirement for registration. Modification of the requirements of part
122 is outside the scope of this rulemaking; however, the Department
highlights that the Department of Commerce does not have a registration
requirement for manufacturers and exporters of the items under its
jurisdiction. Therefore, gunsmiths that do not manufacture, export, or
broker articles that remain subject to the ITAR after this rule's
effective date will no longer need to determine if they are required to
register under the ITAR. They may, however, still be required to comply
with ATF licensing requirements. Any additional changes to the ITAR
related to the registration requirement would be addressed in a
separate rulemaking.
On the issue of registration, one commenter noted that as a result
of this rule some U.S. manufacturers may no longer have to register
with the Department of State and be subject to the requirements in ITAR
Sec. 122.4(b) for advance notification of intended sales or transfers
to foreign persons of ownership or control of the registrant. The
commenter asserted that without the advance notification requirement
foreign entities could potentially influence the sales and marketing
activities of U.S. manufacturers in a manner that would be detrimental
to U.S. national security. The Department notes in response that its
regulatory authorities are limited to export-related activities for
defense articles and services, and highlights that other federal
regulatory regimes, such as the Committee on Foreign Investment in the
United States, have the ability to address potential foreign ownership
or control issues that may impact national security.
Multiple commenters expressed concerns that this rule would reduce
congressional oversight of arms transfers since the Department of
Commerce does not have to notify Congress of firearms sales in excess
of $1 million as the Department of State does. The Department
acknowledges those concerns and notes that those firearms that the U.S.
government deemed through the interagency review process to warrant
continued control under the ITAR as defense articles will remain
subject to congressional notification requirements in conformity with
section 36 of the AECA and Executive Order 13637.
A number of commenters suggested the proposed rule, if made final,
may have a negative impact on human rights in foreign countries. As
stated previously, the Department of Commerce will continue its
longstanding end-use monitoring efforts, including vetting of potential
end-users, to help prevent human rights abuses. Similarly, as part of
the aforementioned continuing interagency review of export licenses for
firearms, the Departments of Defense and State will review export
license applications on a case-by-case basis for national security and
foreign policy reasons, including the prevention of human rights
abuses.
One commenter expressed concern that foreign law enforcement
personnel in particular are at risk of having the transferred CCL items
used against them. These concerns are mitigated by the fact that, as
stated previously: (1) These articles remain subject to the Department
of Commerce's EUM programs that vet potential end-users of concern, and
(2) license applications for CCL items will be approved only if their
end-use is permitted under the laws of the importing country.
Multiple commenters expressed concerns that, as a result of the
revision of the USML to remove items from Category I, the rule will
also remove from the USML the technical data directly related to these
items, thereby lifting a purported block on the domestic dissemination
of computer-aided design (CAD) files for the three-dimensional (3-D)
printing or CAD-enabled production of firearms. Commenters suggested
that use of these files in the United States could lead to a potential
increase in the number of unserialized firearms in circulation, or the
manufacture or distribution of a non-metal firearm otherwise prohibited
under federal law. Some commenters also expressed concerns that foreign
dissemination of such files could provide adversaries with a military
or intelligence advantage.
The Department considered the concerns of the commenting parties.
While the Department concluded that these concerns do not warrant
modification to the controls on the USML, the Department of Commerce,
as described below, determined that certain modifications to its
companion rule are warranted to address similar concerns expressed by
commenters to its proposed rule.
As an initial matter, the Department reiterates that the scope of
this rulemaking is limited to the Department's delegated authority
under the AECA. Neither the AECA nor ITAR expressly provide the
Department with authority to regulate the distribution of technical
data in the United States to U.S. persons. This applies to all
technical data subject to the ITAR, regardless of whether it is for the
manufacture of ITAR-controlled firearms or any other defense article.
Furthermore, the Department notes that the AECA does not provide the
[[Page 3823]]
Department with the authority to (1) prohibit the domestic manufacture
or possession of firearms, whether produced from CAD files with a 3-D
printer or otherwise, or (2) regulate the domestic distribution among
U.S. persons of any defense article, including firearms. Domestic
activities that do not involve release to foreign persons are generally
left to other federal agencies--and the states--to regulate. The
manufacture, import, sale, shipment, delivery, transfer, receipt, or
possession of firearms that are undetectable as provided in federal law
is a federal crime, punishable by fine and/or up to five years in
prison. 18 U.S.C. 924(f). Among other statutes, the Undetectable
Firearms Act of 1988 prohibits the manufacture, possession, sale,
import, shipment, delivery, receipt, or transfer of undetectable
firearms. See 18 U.S.C. 922(p).
When determining whether nonautomatic and semi-automatic firearms
to .50 caliber (12.7mm) inclusive should be removed from the USML, and
the technical data directly related thereto, the Department evaluated
whether the hardware and its directly related technical data would
confer a critical military or intelligence advantage or whether they
are inherently military based on their function. The Department made a
determination that neither the hardware nor its directly related
technical data met these criteria. In response to the specific comments
related to the potential uses for CAD files that can be used to 3-D
print firearms, the Department confirms that it did consider the
potential uses for these CAD files in its review. The Department
determined, in consultation with the Department of Defense and other
interagency partners, that these CAD files do not confer a critical
military or intelligence advantage and are not inherently military
based on their function. This determination took into account the
effect that a transfer to the CCL would have on the national security
and foreign policy interests of the United States, consistent with the
AECA and ITAR, to include the degree to which it would limit the
ability of a foreign person to obtain CAD files, publish them on the
internet, and subsequently manufacture CCL-controlled firearms,
including those that are unserialized or manufactured from a non-
metallic material.
Although the Department determined that such hardware and its
directly related technical data do not confer a critical military or
intelligence advantage or perform an inherently military function for
purposes of maintaining inclusion on the USML, the Department agrees
with the Department of Commerce that maintaining controls over such
exports under the EAR remains in the national security and foreign
policy interests of the United States. The Department of Commerce has
recognized in its companion rule that concerns raised over the
possibility of widespread and unchecked availability of 3-D printing
technology and software, the lack of government visibility into
production and use, and the potential damage to U.S. counter-
proliferation efforts warrant making certain technology and software
capable of producing firearms subject to the EAR when posted on the
internet, as described in the Department of Commerce's companion rule.
The Department agrees that EAR controls on technology and software for
firearms previously controlled in USML Category I(a)--and for all other
items this rule removes from the USML--sufficiently address the U.S.
national security and foreign policy interests relevant to export
controls. In sum, while Commerce controls over such items and
technology and software are appropriate, continued inclusion of them on
the USML is not.
This rule is consistent with broader USML to CCL review efforts.
During the multi-year process of reviewing and revising the USML, the
Department has exercised its discretion, authorized by delegation in
section 38(a)(1) of the AECA, to determine which national security and
foreign policy interests warrant consideration within the context of
export controls. Under its current standard, the Department assesses
the national security and foreign policy interests against factors,
such as those discussed above and in other Federal Register notices, in
assessing whether items merit inclusion on the USML; this analysis has
resulted in a number of items previously included in other USML
categories being transferred to the EAR (see, e.g., 78 FR 22740 (Apr.
16, 2013), 81 FR 70340 (Oct. 12, 2016)). Through this rule, the
Department is now applying this standard to Categories I, II, and III
of the USML. As previously noted, the AECA requires periodic review of
the USML, and the Department will continue to evaluate technological
advancements, including those related to 3-D printing, to inform future
revisions to the USML.
One commenter predicted that the rule's effect of removing
licensing requirements for temporary imports of the items removed from
the USML would create another channel for criminal elements to obtain
weapons in the United States. The Department did not receive any
further information to support the assertion that the hypothetical
diversion of temporary imports of firearms from foreign countries would
appreciably bolster criminal access to such items. The Department
additionally notes that other departments and agencies possess
enforcement capabilities relevant to criminal acquisition of firearms
within the United States.
One commenter recommended coordinating proposed changes with ATF so
that the corresponding changes are made to the U.S. Munitions Import
List (USMIL) at the same time, which would prevent businesses from
having to consult both the USML and USMIL when deciding whether a
transaction involves brokering. The USML and the USMIL are separate
lists of AECA defense articles with both shared as well as different
AECA objectives, and as such warrant the retention as separate lists
for AECA defense article and control purposes.
Effective Date
The Department has determined that the appropriate effective date
for this final rule is March 9, 2020. The Department notes that the
Department has previously articulated a policy of providing a 180-day
transition period between the publication of the final rule for each
revised USML category and the effective date of the transition to the
CCL for items that will undergo a change in export jurisdiction. See 78
FR 22,740, 22,747 (Apr. 16, 2013). In addition, some commenters
suggested that the final rule should have a delayed effective date or a
split effective date for companies of a particular size. However, in
consultation with interagency partners, the Department has determined
that, based on the nature of the items at issue, a 180-day transition
period or a delayed or a split effective date for certain companies is
not necessary.
Revision of Category I
This final rule renames Category I as ``USML Category I--Firearms
and Related Articles'' (formerly ``Category I--Firearms, Close Assault
Weapons and Combat Shotguns'') and amends the category to control only
defense articles that are inherently military or that are not otherwise
widely available for commercial sale. In particular, the amended
category does not include non-automatic and semi-automatic firearms to
.50 caliber (12.7mm) inclusive, formerly controlled under paragraph
(a), and all of the parts, components, accessories, and attachments for
those
[[Page 3824]]
articles. Such items are subject to the new controls in Export Control
Classification Numbers 0A501, 0A502, 0A503, 0A504, 0A505, 0B501, 0B505,
0D501, 0D505, 0E501, 0E502, 0E504, and 0E505, which also includes the
items moved from Category II described below. Such controls in Category
0 of the CCL are being published in the companion rule by the
Department of Commerce.
Paragraph (a) of amended USML Category I covers firearms that fire
caseless ammunition. Paragraph (b) continues to cover fully automatic
firearms, which are firearms that shoot more than one bullet by a
single function of the trigger, to .50 caliber (12.7mm) inclusive.
Paragraph (c) covers firearms specially designed to integrate fire
control, automatic tracking, or automatic firing systems, and all
weapons previously described in paragraph (c) that remain on the USML
are now covered by paragraphs (a), (b) or (c) of this category or by
Category II. Specially designed parts and components for the defense
articles that remain in paragraph (c) are moved to Category I paragraph
(h) of this final rule. This change from the proposed rule is necessary
to allow for the designation of the end-item defense articles in
paragraph (c) as Significant Military Equipment (SME) whereas the
specially designed parts and components therefor are not. Paragraph (d)
covers fully automatic shotguns. Paragraph (e) continues to cover
silencers, mufflers, and sound suppressors. However, for the same
reason as paragraph (c) above, specially designed parts and components
for those defense articles in paragraph (e) are moved to paragraph (h)
so as not to be designated SME. Flash suppressors are removed from
paragraph (e) and are transferred to the CCL. The text of paragraph (f)
is removed and the subsection is reserved, thereby removing as a
controlled item ``[r]iflescopes manufactured to military
specifications.'' However, any firearms sighting device (including
riflescopes) that fits within the controls in USML Category XII (see
e.g., XII(c)(2) regarding night vison or infrared capabilities) remains
subject to the ITAR under that category. Other riflescopes are
transferred to the CCL. Paragraph (g) continues to cover barrels,
receivers (frames), bolts, bolt carriers, slides, or sears, specially
designed for the firearms that remain in Category I. Paragraph (h)
covers high capacity (greater than 50 rounds) magazines, and parts and
components to convert a semi-automatic firearm into a fully automatic
firearm, and accessories or attachments specially designed to
automatically stabilize aim (other than gun rests) or for automatic
targeting. In a change from the proposed rule, this final rule
paragraph (h) includes a new paragraph (h)(3) to control parts and
components specially designed for defense articles in (c) and (e) as
described above. This addition necessitated the renumbering of proposed
paragraph (h)(3) to (h)(4) in this final rule. Paragraph (i) covers the
technical data and defense services directly related to all of the
defense articles in the category as well as classified technical data
directly related to items controlled in ECCNs 0A501, 0B501, 0D501, and
0E501 and defense services using the classified technical data. This is
a change from the proposed rule, in which defense articles in paragraph
(c) were inadvertently omitted from the technical data paragraph.
This rule adds a new (x) paragraph to USML Category I, allowing
ITAR licensing for all commodities, software, and technology subject to
the EAR, provided those commodities, software, and technology are to be
used in or with defense articles controlled in USML Category I and are
described in the purchase documentation submitted with the license
application.
The text of the note to Category I is removed and replaced with a
note containing a slightly revised interpretation of the term
``firearm,'' (formerly included at (j)(1)) and to add interpretations
of the terms ``fully automatic'' and ``caseless ammunition.''
Several commenters requested clarification regarding the proposed
Note 1 to USML Category I. The Department determined that the control
text of the category sufficiently describes the defense articles to be
controlled, and, as a result, the final rule removes the proposed Note
1 to Category I in order to avoid possible confusion.
One commenter recommended changes to the text of paragraph (b) in
an effort to avoid potential overlap with other paragraphs in the
category. The Department believes these changes are unnecessary because
the control text adequately differentiates the controlled defense
articles to allow for self-determination. If an exporter or
manufacturer requires a definitive determination of category, they may
submit a commodity jurisdiction request to DDTC.
Several commenters expressed concern about the designation of
certain parts and components in USML Category I as SME. The Department
recognizes these concerns, and, in response, the final rule revises the
proposed rule by moving the specially designed parts and components for
paragraphs (c) and (e) to (h) where they are not designated as SME.
Multiple commenters suggested that the rule should remove firearm
sound suppressors (silencers) from paragraph (e) and transfer them to
the CCL. The Department recognizes that sound suppressors (silencers)
are sold commercially in some jurisdictions, often for use at ranges or
for hunting in certain environments, although their availability in
retail markets varies significantly within the United States as well as
foreign countries. However, sound suppressors (silencers) provide the
capability to muffle the sound of weapons fire, which can degrade the
ability of an adversary to localize the source of the incoming rounds
and return fire or raise an alarm. The Department has determined, in
coordination with the interagency, that silencers continue to warrant
control on the USML.
One commenter requested clarification regarding paragraph (g) and
the barrels, receivers (frames), bolts, bolt carriers, slides, or sears
that are common to semi-automatic and automatic firearms on the
civilian market. The commenter noted that the lack of clarity arises
from the difference between the control text in USML Category I(g) and
Note 1 to Category I in the proposed rule. The commenter also requested
clarification about which specially designed articles are controlled
under this paragraph. The commenter's concerns can be resolved by
applying the definition of ``specially designed'' in ITAR Sec.
120.41(b)(3), as any article that is common to a non-automatic or
semiautomatic firearm that is on the CCL (i.e., not on the USML) is not
specially designed and thus is not subject to the ITAR (but is subject
to the EAR).
One commenter suggested amending the Canadian exemptions located in
ITAR Sec. 126.5 to allow exports of receivers and breech mechanisms
under paragraph (g). The Department is not revising Supplement No. 1 to
ITAR Sec. 126 or the provisions of the Canadian exemptions through
this rulemaking. However, the Department is currently undertaking a
review of Supplement No. 1 to ITAR Part 126 and any changes will be the
subject of a separate rulemaking.
Multiple commenters suggested that paragraph (h)(1) under this rule
should exclude high-capacity magazines, i.e., drums or magazines for
firearms with a capacity of greater than 50 rounds. The Department
recognizes that civilians can purchase magazines and drums with a
[[Page 3825]]
capacity of greater than 50 rounds; however, these high-capacity
magazines provide an inherently military function and warrant continued
control on the USML due to their utility in enabling effective use of
automatic weapons and combat tactics.
One commenter requested clarification regarding paragraph (h)(3) in
order to differentiate the terms ``automatic targeting'' and
``automatic tracking'' or ``automatic firing.'' However, the comment
did not identify any specific confusion. The Department believes that
the control text appropriately describes the capabilities that warrant
control, so the final rule does not make any changes to this provision.
One commenter noted that the technical data and defense service
control in paragraph (i) did not apply to USML Category I(c) and
suggested that the Department include paragraph (c) in the list of
paragraphs to which the technical data and defense service controls
applies. This was an oversight and final rule paragraph (i) is revised
to exclude the paragraph identifiers in the proposed rule. Excluding
the paragraph identifiers clarifies that technical data and defense
services for all USML Category I articles are controlled.
Revision of Category II
This final rule revises USML Category II, covering guns and
armament, establishing a bright line between the USML and the CCL for
the control of these articles.
Most significantly, amended paragraph (j), controlling parts and
components, is revised to enumerate the items controlled therein. In a
change from the proposed rule explained below, proposed paragraph
(j)(10) is revised to clarify that the control applies only to recoil
systems specially designed to mitigate the shock associated with the
firing process of guns integrated into air platforms. When reviewing
proposed paragraph (j) for this final rule, the Department noted that
proposed paragraphs (10) and (13) described related defense articles,
as did proposed paragraphs (j)(9) and (j)(11). In order to keep related
articles in consecutive paragraphs within the category, the Department
reorganized the paragraphs such that the control text of paragraph (10)
of the proposed rule is found at paragraph (14) of the final rule and
the control text of paragraphs (9) and (11) of the proposed rule are
found at paragraphs (10) and (9) of the final rule, respectively. In
addition, a new paragraph (12) is added to (j) to clarify that systems
and equipment for the defense articles in the category for programming
ammunition are controlled on the USML. Where necessary, paragraphs are
renumbered to accommodate movement of proposed paragraphs (j)(10) and
(9) and the addition of new paragraph (12). The Note to proposed
paragraph (j)(9) is also revised from the proposed rule to include
reference to mounts for surface vessels and special naval equipment
controlled in Category VI.
Amended paragraph (a) enumerates the items controlled in that
paragraph. The item formerly covered in paragraph (c) (i.e., apparatus
and devices for launching or delivering ordnance) is removed, and
defense articles still warranting control on the ITAR are described in
new paragraph (a)(4). A new paragraph (a)(5) is added for developmental
guns and armaments funded by the Department of Defense and the
specially designed parts and components of those items. The item
formerly controlled in paragraph (f), (i.e., engines specifically
designed or modified for the self-propelled guns and howitzers
controlled in paragraph (a)), is removed from the USML and placed on
the CCL in ECCN 0A606 pursuant to the companion rule. Tooling and
equipment specifically designed or modified for the production of items
controlled in USML Category II, formerly in paragraph (g), is also
removed from the USML and transferred to the CCL in ECCN 0B602 through
the Commerce rule. Test and evaluation equipment and test models,
formerly in paragraph (h), is removed from the USML and transferred to
the CCL in ECCN 0B602 through the Commerce rule. Certain autoloading
systems formerly controlled in paragraph (i) are moved to paragraphs
(j)(9) and components therefor to (j)(10) (paragraph (j)(11) of the
proposed rule). In a change from the proposed rule explained below,
final paragraph (j)(11) now contains a specific reference to
``ammunition feeder systems.''
This rule adds a new (x) paragraph to USML Category II, allowing
ITAR licensing for all commodities, software, and technology subject to
the EAR, provided those commodities, software, and technology are to be
used in or with defense articles controlled in USML Category II and are
described in the purchase documentation submitted with the application.
One commenter recommended defining the term ``gun'' as it is used
in both the category title and in paragraph (a)(1). The control text in
the proposed rule appropriately described the capabilities that warrant
control, and so the final rule does not make any changes in this
regard.
One commenter pointed out that U.S law classifies firearms as
antique if they were made on or before 1898 and took issue with the
usage of the year 1890 in Note 1 to paragraph (a). The Gun Control Act
of 1968 does define antique firearms for domestic purposes, in part, as
any firearm manufactured in or before 1898. See 18 U.S.C.
921(a)(16)(A). However, as this rule is regarding the export of
firearms, it uses the year 1890 in order for the United States to
remain consistent with its international export control commitments
under the Wassenaar Arrangement, which uses 1890 as the cutoff year to
identify many firearms and armaments that are not on the control list.
One commenter requested clarification regarding what is considered
to be part of the firing mechanisms listed in paragraph (j)(4) and
inquired whether the rule controls electronic firing mechanisms. The
language in the rule appropriately describes the capabilities that
warrant control and confirms that the control does include electronic
firing mechanisms.
One commenter requested a note be added to proposed paragraph
(j)(9) (final paragraph (j)(10)) to clarify what constitutes an
independently powered ammunition handling system and platform interface
components. The control text appropriately describes the capabilities
of concern that warrant control and confirms that an independently-
powered ammunition handling system need not be external to the gun or
platform for the control to apply.
One commenter expressed concern that proposed paragraphs (j)(9) and
(j)(11) (final paragraphs (j)(10) and (j)(9), respectively) may capture
the same parts and components and recommended deleting proposed
paragraph (j)(11) if the paragraphs are redundant. These paragraphs are
distinct, as proposed (j)(9) identifies certain components for the end-
item ammunition handling system that are controlled and proposed
(j)(11) controls the end-item independent ammunition handling system
itself. Because these paragraphs are not redundant, the final rule
retains both of them. The Department revised proposed paragraph (j)(11)
(final paragraph (j)(9)) to clarify its scope in response to this
comment.
Proposed paragraph (j)(10) (final paragraph (j)(14)) is revised in
this final rule with language limiting recoil systems to those
specially designed to mitigate the shock associated with the firing
process of guns integrated into air platforms. This revision was made
in response to a commenter who
[[Page 3826]]
highlighted that the language in the proposed rule would have
controlled recoil systems solely due to end-use platform and not due to
the performance capability.
One commenter suggested that the Department reconcile proposed
paragraphs (j)(10) and (j)(13) (final paragraphs (j)(14) and (j)(13),
respectively) to prevent an overlap in the control text. Proposed
(j)(10) and (j)(13) are adequately differentiated to allow for self-
determination. If an exporter or manufacturer requires a definitive
determination of category, they may submit a commodity jurisdiction
request to DDTC.
One commenter submitted a question about whether specific
ammunition containers that are independent of a cannon system would be
controlled under the proposed paragraph (j)(12) (final paragraph
(j)(11)). Although absent a commodity jurisdiction request the
Department cannot make a definitive determination, it is unlikely that
the ammunition container is controlled because proposed paragraph
(j)(12) requires that the ammunition container be specially designed
for the gun or armament, not for the ammunition. The control text
appropriately describes the capabilities that warrant control, and so
the final rule does not make any changes to this provision.
One commenter also recommended adding clarifying language to
proposed paragraph (j)(12) (final paragraph (j)(11)) regarding whether
``conveyor elements'' are intended to relate to large caliber
ammunition or medium caliber ammunition. As the control is not limited,
it applies to all such systems. To clarify the scope of the control,
the Department adds ``ammunition feeder systems'' to the text of final
paragraph (j)(11).
Revision of Category III
This final rule renames Category III as ``USML Category III--
Ammunition and Ordnance'' (formerly ``Category III--Ammunition/
Ordnance'') and revises its content to establish a bright line between
the USML and the CCL for the control of these articles and to be
consistent with the changes to Category I.
Most significantly, paragraphs (a) and (d) are revised to remove
broad catch-alls and enumerate the articles controlled therein. For
example, paragraph (a), which controls ammunition for articles in USML
Categories I and II, is amended to specifically list the ammunition
that it controls. In a change from the proposed rule, paragraph (a)(7)
regarding ammunition for automatic and superposed (or stacked) guns and
firearms is revised to clarify the control text. A new paragraph
(a)(10) is added for developmental ammunition funded by the Department
of Defense and the parts and components specially designed for such
developmental ammunition. In a change from the proposed rule, the SME
designator is moved from paragraph (a) in its entirety to only those
paragraphs of III(a) warranting control as SME and the SME designation
is removed from paragraph (a)(10), to be consistent with the controls
on developmental defense articles funded by the Department of Defense
in other categories of the USML. Ammunition formerly controlled in
paragraph (a) that is not now specifically enumerated in paragraph (a)
or captured by paragraph (a)(10) is transferred to the CCL pursuant to
the companion rule. Likewise, revised paragraph (d), which controls
parts and components, enumerates the items it controls; those parts and
components previously captured via the catch-all and not now enumerated
are transferred to the CCL.
Additionally, paragraph (c) is removed and placed into reserve. The
production equipment and tooling formerly controlled in that paragraph
is now controlled by the CCL pursuant to the companion rule.
In a change from the proposed rule, the references to steel tipped
ammunition, and hardened core or solid projectiles made of tungsten,
steel, or beryllium copper alloys are moved from (d)(1) to paragraph
(d)(6) for additional clarity.
This rule adds a new (x) paragraph to USML Category III, allowing
ITAR licensing for all commodities, software, and technology subject to
the EAR, provided those commodities, software, and technology are to be
used in or with defense articles controlled in USML Category III and
are described in the purchase documentation submitted with the
application.
In addition, in this final rule, DDTC revised the format of the
notes to Category III from the proposed rule in order to make them
consistent with concluding notes to other categories (see, e.g., notes
to Category VII). In place of three notes within one heading of ``Notes
to Category III'' as in the proposed rule, this final rule identifies
each clearly as Note 1, Note 2, and Note 3.
One commenter highlighted that the placement of the asterisk beside
paragraph (a) in the proposed rule created inconsistencies with other
USML category provisions concerning developmental defense articles
funded by the Department of Defense (DoD). The Department agrees, and
the final rule revises the category in order to clarify that DoD-funded
developmental ammunition is not SME. In particular, the final rule adds
a specific SME identifier to each relevant subcategory and removes one
from paragraph (a)(10).
One commenter suggested removing paragraph (a)(2) on the grounds
that the underlying commodity does not fundamentally change when it is
incorporated into an ammunition link. The control appropriately
identifies the object that warrants control (linked or belted
ammunition) which are used primarily for automatic weapons.
Consequently, the final rule makes no changes to the text of paragraph
(a)(2).
One commenter suggested revising proposed paragraph (a)(4) to
remove the language ``manufactured with smokeless powder'' on the
grounds that the rule could be interpreted to mean caseless ammunition
manufactured with anything besides smokeless powder, which is
controlled on the CCL. The Department disagrees because the control
text accurately describes the defense article to be controlled.
Caseless ammunition that is not manufactured with smokeless powder is
not controlled by the subcategory. The Department controls ammunition
in paragraph (a)(4) because smokeless powder has higher energy than
other propellants and is more readily adapted to a sustained fire.
One commenter suggested removing the articles under paragraphs
(a)(5) and (a)(8) and transferring them to the CCL. The Department
disagrees, as lightweight and railgun ammunition offer a significant
military advantage because lightweight ammunition significantly
improves battlefield activities and railguns are a uniquely military
capability in which the United States enjoys a critical advantage, in
part due to our projectiles, and therefore warrant control on the USML.
One commenter recommended revising paragraph (a)(6) to address the
potential redundancy with (a)(1) and to clarify whether the ammunition
control parameters in the paragraph are based on the pyrotechnic
material, the tracer materials, or the specification that it must be
able to be seen by night vision optical systems. While it is possible
that there may be some overlap between these controls for specific
articles, each control correctly identifies a capability that warrants
control on the USML. To clarify the control text, the Department
replaces the word ``and'' in paragraph (a)(6) of the proposed rule with
``or'' in this final rule to identify that these are separate articles.
If an exporter or
[[Page 3827]]
manufacturer requires a definitive determination of category, they may
submit a commodity jurisdiction determination request to DDTC.
One commenter highlighted that paragraph (a)(7) in the proposed
rule could be interpreted to cover all ammunition for fully automatic
firearms, which could take ammunition currently controlled by the
Department of Commerce and change it into SME if for use in a fully
automatic firearm. The Department notes this concern and has revised
the control to limit the scope of the control to ammunition that is not
used with semi or non-automatic firearms (i.e., firearms not on the
USML).
One commenter suggested changing the description of ``primers'' in
paragraph (d)(10) to ``cap type primers'' on the grounds that the
provision as written is overly broad. The Department disagrees, as the
final rule appropriately reflects the primers that warrant control on
the USML. The final rule does not make any changes to this provision.
One commenter assessed that certain production equipment previously
controlled on the USML would not be captured by the revised USML
Category III or by the corresponding Department of Commerce rule. The
Department of Commerce's companion rule to this final rule expands the
relevant ECCNs 0B505.a as a control for all production equipment
specially designed for USML Category III, and 0B501.e, for all
production equipment specially designed for USML Category I.
One commenter expressed concern that paragraph (d)(1) appears to
overlap with the control text in paragraphs (a)(1) and (6) and (d)(2)
and (6). While it is possible that there may be some overlap between
these controls for specific articles, each correctly identifies a
capability that warrants control on the USML. To add additional
clarity, the Department is removing the reference to steel tipped and
core or solid projectiles made from tungsten, steel, or beryllium
copper alloys, and addressing those fully in (d)(6). If an exporter or
manufacturer requires a definitive determination of category, they may
submit a commodity jurisdiction determination request to DDTC.
One commenter suggested deleting the word ``tracer'' from paragraph
(d)(2) on the grounds that that would make the provision consistent
with (d)(1). Because certain tracer shotgun shells are non-pyrotechnic
and warrant control on the USML, no change is made in this final rule.
One commenter suggested deleting ``specially designed parts and
components'' from paragraph (d)(4) on the basis that the language adds
duplicative controls on parts that are also subject to the controlled
parts in paragraphs (d)(7) and (d)(11). The Department believes that
the paragraphs are not duplicative and the language appropriately
describes the capabilities that warrant control, so the final rule does
not make any changes to this provision.
One commenter recommended adding language to paragraph (d)(6) in
the proposed rule to clarify whether the paragraph is intended to
capture all armor piercing rounds. The Department did not adopt this
recommendation, as the control text adopted in this rule provides
objective criteria that more effectively identifies the ammunition
types that warrant control on the USML.
Multiple commenters recommend revising paragraph (d)(7). One
commenter suggested adding ``specially designed for items controlled in
USML Category II'' to ensure that articles common to those used with
non-USML items are not described. The Department agrees and made this
change.
One commenter suggested modifying the wording in paragraph (d)(11)
to capture all artillery and ammunition fuses and to delete ``specially
designed parts therefor'' to align with bomb fusing wording in Category
IV(h)(25). The control correctly identifies a capability warranting
control on the USML; fuses and arming and safing devices for Category
III articles cover a wider range of sensitive devices that provide the
United States with a critical military advantage, separate and apart
from the control in Category IV(h)(25), for fuses specific to that
category, so the Department is not implementing any change to paragraph
(d)(11).
One commenter noted that paragraph (e) controls technical data and
defense services directly related to the defense articles controlled in
paragraphs (a), (b), and (d) and that technical data and defense
services in these areas would not be controlled on the USML as they are
already in the public domain. Information that is in the public domain
(see ITAR Sec. 120.11), is not controlled; however, defense services
remain controlled, as would any controlled technical data.
Conforming ITAR Changes
Additionally, this final rule makes conforming changes to several
sections of the ITAR that referred to the control of articles formerly
in USML Category I(a). These sections are amended because they all
refer to firearms that are now controlled on the CCL. The firearms
exemptions formerly at Sec. 123.17(a) through (e) are removed and the
subsections reserved as a consequence of the removal from the USML of
non-automatic and semi-automatic firearms and their transfer to the
CCL. Section 123.17 is renamed ``Exemption for personal protective
gear'' (formerly ``Exports of firearms, ammunition, and personal
protective gear'') to accurately reflect the articles permitted for
export without a license by that section. Sections 123.16(b)(2) and (6)
are amended to make conforming changes to reflect the removal of the
Sec. 123.17 firearms exemptions, as is the policy guidance on Zimbabwe
found at Sec. 126.1(s). The text of Sec. 123.18 is removed, as it
described exemptions for firearms that are now controlled for export by
the Department of Commerce, and the section placed into reserve. The
text of Sec. 123.16(b)(7) referencing the removed Sec. 123.18
exemption is also removed and the subsection placed in reserve. In
addition, Sec. 124.14(c)(9) is amended to remove the example of
``sporting firearms for commercial resale.''
Section 129.1(b) of the ITAR is amended to clarify that the
regulations on brokering activities in part 129 apply to those defense
articles and defense services designated as such on the USML and those
items described on the USMIL (27 CFR 447.21). Section 129.4 of the ITAR
is also amended to clarify brokering requirements for items on the
USMIL that are subject to the brokering requirements of the AECA. The
articles that are transferred to the CCL for export control purposes,
yet are on the USMIL for permanent import control purposes, remain
subject to the brokering requirements of part 129 with respect to all
brokering activities, including facilitation in their manufacture
abroad, permanent import, transfer, reexport, or retransfer. In a
change from the proposed rule, this final rule revises slightly the
proposed language of Sec. 129.2(b)(2)(vii), renumbers it as (viii),
and adds a new paragraph (b)(2)(vii) to that section, in order to
definitively exclude from the definition of brokering activities
certain domestic activities related to the manufacture of EAR
controlled items and their export. The revisions to Sec. 129.4 also
clarify that foreign defense articles that are on the USMIL require
brokering authorizations.
One commenter asserted that this rule's revisions to Sec. 123.15
will unnecessarily expand congressional notification requirements to
parts, components, and accessories under Categories I(e) and I(g). The
commenter recommended that Sec. 123.15 be revised to limit the
notification requirements to ``USML Category I paragraphs (a) through
(d).'' Contrary to the
[[Page 3828]]
commenter's assertion, this rule does not extend congressional
notification requirements to parts, components, and accessories.
Department practice is, and has been, to notify Congress of the
proposed exports of all Category I(e) and (g) articles that meet the
threshold value requirement of $1,000,000.
One commenter expressed concern that the proposed rule's removal
and placement of ITAR Sec. 123.16(b)(7) in reserve could potentially
affect the exemption at ITAR Sec. 123.18 regarding firearms for
personal use by civilian and active duty members of the U.S. Armed
Forces. The Department notes in response that amendatory instruction
number 5 of the proposed rule directed the removal and reserving of
paragraph (b)(7) of Sec. 123.16. In order to eliminate any confusion
regarding this action, the final rule includes exemplary text showing
the subsection as reserved.
Several commenters suggested raising the value of the low value
shipment exemption in ITAR Sec. 123.17(a) from $100 to $500 because
although the rule's changes increase the eligible amount, they then
reduce it by shifting the definition of value from wholesale to selling
price. The Department appreciates this suggestion, but notes in
response that amendatory instruction 6 of the proposed and final rules
directs the removal of ITAR Sec. 123.17(a).
One commenter noted that the current language in ITAR Sec.
125.4(b)(6) refers to ``. . . firearms not in excess of caliber .50 and
ammunition for such weapons . . .'' and suggested a review to ensure
consistency with language in other areas of the ITAR. The Department
appreciates the commenter's suggestion and directs the commenter's
attention to the Note to Category I of the final rule, paragraph (1),
which uses a similar description to the one in ITAR Sec. 125.4(b)(6)
and which has been present since the 2003 CFR. The Department believes
the regulated community clearly understands caliber demarcation and
declines to make changes at this time. The Department notes the
commenter's concern for future consideration.
Multiple commenters expressed concerns that this rule would remove
license requirements for brokers, or potentially relinquish enforcement
authority over brokers. The Department asserts that this rule makes no
changes to the statutory requirements for the registration and
licensing of brokers, which remain the same under section
38(b)(1)(A)(ii) of the AECA (see 28 U.S.C. 2778) and are implemented
through ITAR part 129, which will continue to apply to all firearms
listed on the USMIL in addition to those on the USML. Regarding
enforcement, the Department retains its civil enforcement capacity for
violations of the ITAR, including all articles subject to the brokering
regulations, and the Department of Commerce retains its civil
enforcement authority over items subject to its jurisdiction.
Additionally, the Department of Justice retains the ability under
separate authorities to prosecute persons criminally for violations
involving firearms on the CCL or for brokering violations under the
AECA.
One commenter expressed concern that this rule will create a double
licensing requirement because the scope of ``brokering activities''
requiring registration, fee payments, and licensing under ITAR part 129
includes many types of activities that occur before the Department of
Commerce will issue a license. The Department does not intend to impose
a double licensing requirement for individuals undertaking activities
on behalf of another to facilitate a transaction that will require
licensing by the Department of Commerce. Therefore, the Department is
revising the proposed Sec. 129.2(b)(2)(vii) and adding a new
(b)(2)(viii) to clarify that activities to facilitate the domestic
manufacture or export of items subject to the EAR are not brokering
under the ITAR and do not require authorization or registration.
One commenter requested clarification regarding whether ``brokering
activities'' as defined in Sec. 129.2(b)(2) apply to activities to
facilitate the manufacture, export, permanent import, transfer,
reexport, or retransfer of items designated on the USMIL. The
Department directs the commenter to the preambles of the proposed rule
and this final rule, which state the regulations in part 129 apply to
both USML and USMIL defense articles and defense services.
One commenter requested clarification regarding whether the
proposed rule's revision to Sec. 129.2(b)(2)(vii) would apply not only
to items currently controlled in USML Categories I, II, and III, or to
all items on the USMIL that are currently subject to the EAR (i.e., to
include 600 series items previously transferred to the EAR). The
commenter also recommended specifying whether the paragraph (b)(2)(vii)
exclusion would apply to activities related to exports, reexports, or
transfers of an items subject to the EAR that does not require use of
an EAR license or license exception (i.e., No License Required (NLR)).
The commenter assessed that the language at (b)(2)(vii) appears to
provide a broad carve-out to the brokering activities definition. The
commenter also requested clarification regarding whether the language
was intended to convey that any ITAR or EAR approval for the items in
question is sufficient to meet this criteria and that the approvals do
not have to list the specific consignees or end-users for the future
export, reexport, or transfer. The Department confirms that new
provisions in Sec. 129.2(b)(2)(vii) and (viii) apply to all items
subject to the EAR, not just those that transitioned from USML
Categories I, II or III, to the extent that other items subject to the
EAR are also included on the USMIL. These provisions also clarify the
use of the NLR designation and revise the scope of the exclusion from
brokering activities to include those activities that are controlled by
the Department of Commerce.
Regulatory Analysis and Notices
Administrative Procedure Act
The Department of State is of the opinion that controlling the
import and export of defense articles and services is a military or
foreign affairs function of the United States government and that rules
implementing this function are exempt from sections 553 (rulemaking)
and 554 (adjudications) of the Administrative Procedure Act (APA).
Although the Department is of the opinion that this final rule is
exempt from the rulemaking provisions of the APA, the Department
published this rule as a proposed rule (83 FR 24198) with a 45-day
provision for public comment and without prejudice to its determination
that controlling the import and export of defense services is a foreign
affairs function.
Regulatory Flexibility Act
Since the Department is of the opinion that this final rule is
exempt from the rulemaking provisions of 5 U.S.C. 553, it does not
require analysis under the Regulatory Flexibility Act.
Unfunded Mandates Reform Act of 1995
This amendment does not involve a mandate that will result in the
expenditure by State, local, and tribal governments, in the aggregate,
or by the private sector, of $100 million or more in any year and it
will not significantly or uniquely affect small governments. Therefore,
no actions were deemed necessary under the provisions of the Unfunded
Mandates Reform Act of 1995.
Small Business Regulatory Enforcement Fairness Act of 1996
This rulemaking has been found not to be a major rule within the
meaning
[[Page 3829]]
of the Small Business Regulatory Enforcement Fairness Act of 1996.
Executive Orders 12372 and 13132
This rulemaking will not have substantial direct effects on the
States, on the relationship between the national government and the
States, or on the distribution of power and responsibilities among the
various levels of government. Therefore, in accordance with Executive
Order 13132, it is determined that this rulemaking does not have
sufficient federalism implications to require consultations or warrant
the preparation of a federalism summary impact statement. The
regulations implementing Executive Order 12372 regarding
intergovernmental consultation on Federal programs and activities do
not apply to this rulemaking.
Executive Orders 12866 and 13563
Executive Orders 12866 and 13563 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, distributed impacts, and equity). The
Department believes that the benefits of this rulemaking largely
outweigh any costs, in that many items currently controlled on the
more-restrictive USML are being moved to the CCL.
Executive Order 13563 emphasizes the importance of considering both
benefits and costs, both qualitative and quantitative, 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).
The Department believes the effect of this rule will decrease the
number of license applications submitted to the Department under OMB
Control No. 1405-0003 by approximately 10,000 annually, for which the
average burden estimates are one hour per form, which results in a
burden reduction of 10,000 hours per year.
The Department of Commerce estimates that 4,000 of the 10,000
licenses that were required by the Department are eligible for license
exceptions or otherwise not require a separate license under the EAR.
The Department of Commerce estimates that 6,000 transactions require an
individual validated license. The Department of Commerce collects the
information necessary to process license applications under OMB Control
No. 0694-0088. The Department of Commerce estimates that each manual or
electronic response to that information collection takes approximately
43.8 minutes. The Department of Commerce estimates that the 6,000
licenses constitute a burden of 4,380 hours for this collection.
The Department estimates a reduction in burden of 10,000 hours due
to the transition of these items to the Department of Commerce. The
Department of Commerce estimates that the burden of submitting license
applications for these items to the Department of Commerce is 4,380
burden hours. Therefore, the net burden is reduced by 5,620 hours. The
Department estimates that the burden hour cost for completing a license
application is $44.94 per hour. Therefore, the estimated net reduction
of 5,620 burden hours per year is estimated to result in annual burden
hour cost reduction of $252,562.80.
In addition to the reduction in burden hours, there are direct cost
savings to the State Department that result from the 10,000 license
applications no longer required under the ITAR for items transferred to
the EAR. Pursuant to the AECA, ITAR, and associated delegations of
authority, every person who engages in the business of brokering
activities, manufacturing, exporting, or temporarily importing any
defense articles or defense services must register with the Department
of State and pay a registration fee. The Department of State adopted
the current fee schedule to align the registration fees with the cost
of licensing, compliance and other related activities. The Department
of Commerce will incur additional costs to administer these controls
and process license applications. However, the Department of Commerce
does not charge a registration fee to exporters under the EAR and we
are unable to estimate the increase in costs to the Department of
Commerce to process the new license applications. Therefore, we are
unable to provide an estimate of the net change in resource costs to
the government from moving these items from the ITAR to the EAR. It is
the case, however, that the movement of these items from the ITAR will
result in a direct transfer of $2,500,000 per year from the government
to the exporting public, less the increased cost to taxpayers, because
they will no longer pay fees to the State Department and there is no
fee charged by the Department of Commerce to apply for a license.
Estimated Cost Savings
The Department of State is of the opinion that controlling the
import and export of defense articles and services is a foreign affairs
function of the United States government and that rules implementing
this function are exempt from Executive Order 13771 (82 FR 9339,
February 3, 2017). Although the Department is of the opinion that this
final rule is exempt from E.O. 13771 and without prejudice to its
determination that controlling the import and export of defense
services is a foreign affairs function, this rule is an E.O. 13771
deregulatory action. The Department has conducted this analysis in
close consultation with the Department of Commerce.
The total cost savings will be $1,376,281 in present (2017)
dollars. To allow for cost comparisons under E.O. 13771, the value of
these costs savings in 2016 dollars is $1,353,574. Assuming a 7%
discount rate, the present value of these cost savings in perpetuity is
$19,336,771. Since the costs savings of this rule are expected to be
permanent and recurring, the annualized value of these cost savings is
also $1,353,574 in 2016 dollars.
Executive Order 12988
The Department of State reviewed this rulemaking in light of
sections 3(a) and 3(b)(2) of Executive Order 12988 to eliminate
ambiguity, minimize litigation, establish clear legal standards, and
reduce burden.
Executive Order 13175
The Department of State determined that this rulemaking will not
have tribal implications, will not impose substantial direct compliance
costs on Indian tribal governments, and will not preempt tribal law.
Accordingly, Executive Order 13175 does not apply to this rulemaking.
Paperwork Reduction Act
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.
The Department of State believes there will be a reduction in
burden for the following forms: OMB Control No. 1405-0003, Application/
License for Permanent Export of Unclassified Defense Articles and
Related Unclassified Technical Data; OMB control number 1405-0092,
Application for Amendment of a DSP-5 License;
[[Page 3830]]
OMB control number 1405-0013, Application/License for Temporary Import
of Unclassified Defense Articles; OMB control number 1405-0092,
Application for Amendment to a DSP-61 License ; OMB control number
1405-0023, Application/License for Temporary Export of Unclassified
Defense Articles; OMB control number 1405-0092, Application for
Amendment to a DSP-73 License ; OMB control number 1405-0022,
Application/License for Permanent/Temporary Export or Temporary Import
of Classified Defense Articles and Related Classified Technical Data;
OMB control number 1405-0174, Request for Advisory Opinion; and OMB
control number 1405-0173, Request To Change End User, End Use and/or
Destination of Hardware. This form is an application that, when
completed and approved by Department of State, constitutes the official
record and authorization for the commercial export of unclassified U.S.
Munitions List articles and technical data, pursuant to the AECA and
ITAR. For an analysis of the reduction in burden for OMB Control No.
1405-0003, see the above Section for E.O. 12866.
The proposed version of this rule referenced only the first of
these forms. However, subsequent its release, the Department of State
submitted the remaining eight forms for public notice via Federal
Register Public Notice 10646 on February 12, 2019. As such, this final
rule is being amended to reflect all nine forms associated with the
changes reflected in this rule.
List of Subjects in 22 CFR Parts 121, 123, 124, 126, and 129
Arms and munitions, Exports.
Accordingly, for the reasons set forth above, title 22, chapter I,
subchapter M, parts 121, 123, 124, 126, and 129 are amended as follows:
PART 121--THE UNITED STATES MUNITIONS LIST
0
1. The authority citation for part 121 continues to read as follows:
Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22
U.S.C. 2752, 2778, 2797); 22 U.S.C. 2651a; Pub. L. 105-261, 112
Stat. 1920; Section 1261, Pub. L. 112-239; E.O. 13637, 78 FR 16129.
0
2. Section 121.1 is amended by revising U.S. Munitions List Categories
I, II, and III to read as follows:
Sec. 121.1 The United States Munitions List.
* * * * *
Category I--Firearms and Related Articles
*(a) Firearms using caseless ammunition.
*(b) Fully automatic firearms to .50 caliber (12.7 mm) inclusive.
*(c) Firearms specially designed to integrate fire control,
automatic tracking, or automatic firing (e.g., Precision Guided
Firearms).
Note 1 to paragraph (c): Integration does not include only
attaching to the firearm or rail.
*(d) Fully automatic shotguns regardless of gauge.
*(e) Silencers, mufflers, and sound suppressors.
(f) [Reserved]
(g) Barrels, receivers (frames), bolts, bolt carriers, slides, or
sears specially designed for the articles in paragraphs (a), (b), and
(d) of this category.
(h) Parts, components, accessories, and attachments, as follows:
(1) Drum and other magazines for firearms to .50 caliber (12.7 mm)
inclusive with a capacity greater than 50 rounds, regardless of
jurisdiction of the firearm, and specially designed parts and
components therefor;
(2) Parts and components specially designed for conversion of a
semi-automatic firearm to a fully automatic firearm;
(3) Parts and components specially designed for defense articles
described in paragraphs (c) and (e) of this category; or
(4) Accessories or attachments specially designed to automatically
stabilize aim (other than gun rests) or for automatic targeting, and
specially designed parts and components therefor.
(i) Technical data (see Sec. 120.10 of this subchapter) and
defense services (see Sec. 120.9 of this subchapter) directly related
to the defense articles described in this category and classified
technical data directly related to items controlled in ECCNs 0A501,
0B501, 0D501, and 0E501 and defense services using the classified
technical data. (See Sec. 125.4 of this subchapter for exemptions.)
(j)-(w) [Reserved]
(x) Commodities, software, and technology subject to the EAR (see
Sec. 120.42 of this subchapter) used in or with defense articles.
Note to paragraph (x): Use of this paragraph is limited to license
applications for defense articles where the purchase documentation
includes commodities, software, or technology subject to the EAR (see
Sec. 123.1(b) of this subchapter).
Note 1 to Category I: The following interpretations explain and
amplify the terms used in this category:
(1) A firearm is a weapon not over .50 caliber (12.7 mm) which is
designed to expel a projectile by the deflagration of propellant;
(2) A fully automatic firearm or shotgun is any firearm or shotgun
that shoots, is designed to shoot, or can readily be restored to shoot,
automatically more than one shot, without manual reloading, by a single
function of the trigger; and
(3) Caseless ammunition is firearm ammunition without a cartridge
case that holds the primer, propellant, and projectile together as a
unit.
Category II--Guns and Armament
(a) Guns and armament greater than .50 caliber (12.7 mm), as
follows:
*(1) Guns, howitzers, artillery, and cannons;
*(2) Mortars;
*(3) Recoilless rifles;
*(4) Grenade launchers; or
(5) Developmental guns and armament greater than .50 caliber (12.7
mm) funded by the Department of Defense and specially designed parts
and components therefor.
Note 1 to paragraph (a)(5): This paragraph does not control guns
and armament greater than .50 caliber (12.7 mm):
(a) in production;
(b) determined to be subject to the EAR via a commodity
jurisdiction determination (see Sec. 120.4 of this subchapter); or
(c) identified in the relevant Department of Defense contract or
other funding authorization as being developed for both civil and
military applications.
Note 2 to paragraph (a)(5): Note 1 to pargraph (a)(5) does not
apply to defense articles enumerated on the U.S. Munitions List,
whether in production or development.
Note 3 to paragraph (a)(5): This provision is applicable to those
contracts or other funding authorizations that are dated January 23,
2021, or later.
Note 1 to paragraph (a): This paragraph does not include: Non-
automatic and non-semi-automatic rifles, carbines, and pistols between
.50 (12.7 mm) and .72 caliber (18.288 mm) that are controlled on the
CCL under ECCN 0A501; shotguns controlled on the CCL under ECCN 0A502;
black powder guns and armaments manufactured between 1890 and 1919
controlled on the CCL under ECCN 0A602; or black powder guns and
armaments manufactured earlier than 1890.
Note 2 to paragraph (a): Guns and armament when integrated into
their
[[Page 3831]]
carrier (e.g., surface vessels, ground vehicles, or aircraft) are
controlled in the category associated with the carrier. Self-propelled
guns and armament are controlled in USML Category VII. Towed guns and
armament and stand-alone guns and armament are controlled under this
category.
(b) Flamethrowers with an effective range greater than or equal to
20 meters.
(c) [Reserved]
*(d) Kinetic energy weapon systems specially designed for
destruction or rendering mission-abort of a target.
Note 1 to paragraph (d): Kinetic energy weapons systems include but
are not limited to launch systems and subsystems capable of
accelerating masses larger than 0.1g to velocities in excess of 1.6 km/
s, in single or rapid fire modes, using methods such as:
Electromagnetic, electrothermal, plasma, light gas, or chemical. This
does not include launch systems and subsystems used for research and
testing facilities subject to the EAR, which are controlled on the CCL
under ECCN 2B232.
(e) Signature reduction devices specially designed for the guns and
armament controlled in paragraphs (a), (b), and (d) of this category
(e.g., muzzle flash suppression devices).
(f)-(i) [Reserved]
(j) Parts, components, accessories, and attachments, as follows:
(1) Gun barrels, rails, tubes, and receivers specially designed for
the weapons controlled in paragraphs (a) and (d) of this category;
(2) Sights specially designed to orient indirect fire weapons;
(3) Breech blocks for the weapons controlled in paragraphs (a) and
(d) of this category;
(4) Firing mechanisms for the weapons controlled in paragraphs (a)
and (d) of this category and specially designed parts and components
therefor;
(5) Systems for firing superposed or stacked ammunition and
specially designed parts and components therefor;
(6) Servo-electronic and hydraulic elevation adjustment mechanisms;
(7) Muzzle brakes;
(8) Bore evacuators;
(9) Independent ammunition handling systems for the guns and
armament controlled in paragraphs (a), (b), and (d) of this category;
(10) Components for independently powered ammunition handling
systems and platform interface, as follows:
(i) Mounts;
(ii) Carriages;
(iii) Gun pallets;
(iv) Hydro-pneumatic equilibration cylinders; or
(v) Hydro-pneumatic systems capable of scavenging recoil energy to
power howitzer functions;
Note 1 to paragraph (j)(10): For weapons mounts specially designed
for surface vessels and special naval equipment, see Category VI. For
weapons mounts specially designed for ground vehicles, see Category
VII.
(11) Ammunition containers/drums, ammunition chutes, ammunition
conveyor elements, ammunition feeder systems, and ammunition container/
drum entrance and exit units, specially designed for the guns and
armament controlled in paragraphs (a), (b), and (d) of this category;
(12) Systems and equipment for the guns and armament controlled in
paragraphs (a) and (d) of this category for use in programming
ammunition, and specially designed parts and components therefor;
(13) Aircraft/gun interface units to support gun systems with a
designed rate of fire greater than 100 rounds per minute and specially
designed parts and components therefor;
(14) Recoil systems specially designed to mitigate the shock
associated with the firing process of guns integrated into air
platforms and specially designed parts and components therefor;
(15) Prime power generation, energy storage, thermal management,
conditioning, switching, and fuel-handling equipment, and the
electrical interfaces between the gun power supply and other turret
electric drive components specially designed for kinetic weapons
controlled in paragraph (d) of this category;
(16) Kinetic energy weapon target acquisition, tracking fire
control, and damage assessment systems and specially designed parts and
components therefor; or
*(17) Any part, component, accessory, attachment, equipment, or
system that:
(i) Is classified;
(ii) Contains classified software; or
(iii) Is being developed using classified information.
Note 1 to paragraph (j)(17): ``Classified'' means classified
pursuant to Executive Order 13526, or predecessor order, and a security
classification guide developed pursuant thereto or equivalent, or to
the corresponding classification rules of another government or
intergovernmental organization.
(k) Technical data (see Sec. 120.10 of this subchapter) and
defense services (see Sec. 120.9 of this subchapter) directly related
to the defense articles described in paragraphs (a), (b), (d), (e), and
(j) of this category and classified technical data directly related to
items controlled in ECCNs 0A602, 0B602, 0D602, and 0E602 and defense
services using the classified technical data. (See Sec. 125.4 of this
subchapter for exemptions.)
(l)-(w) [Reserved]
(x) Commodities, software, and technology subject to the EAR (see
Sec. 120.42 of this subchapter) used in or with defense articles.
Note to paragraph (x): Use of this paragraph is limited to license
applications for defense articles where the purchase documentation
includes commodities, software, or technology subject to the EAR (see
Sec. 123.1(b) of this subchapter).
Category III--Ammunition and Ordnance
(a) Ammunition, as follows:
*(1) Ammunition that incorporates a projectile controlled in
paragraph (d)(1) or (3) of this category;
*(2) Ammunition preassembled into links or belts;
*(3) Shotgun ammunition that incorporates a projectile controlled
in paragraph (d)(2) of this category;
*(4) Caseless ammunition manufactured with smokeless powder;
Note 1 to paragraph (a)(4): Caseless ammunition is ammunition
without a cartridge case that holds the primer, propellant, and
projectile together as a unit.
*(5) Ammunition, except shotgun ammunition, based on non-metallic
cases, or non-metallic cases that have only a metallic base, which
result in a total cartridge mass 80% or less than the mass of a brass-
or steel-cased cartridge that provides comparable ballistic
performance;
*(6) Ammunition employing pyrotechnic material in the projectile
base or any ammunition employing a projectile that incorporates tracer
materials of any type having peak radiance above 710 nm and designed to
be observed primarily with night vision optical systems;
*(7) Ammunition for fully automatic firearms that fire superposed
or stacked projectiles or for guns that fire superposed or stacked
projectiles;
*(8) Electromagnetic armament projectiles or billets for weapons
with a design muzzle energy exceeding 5 MJ;
*(9) Ammunition, not specified above, for the guns and armaments
controlled in Category II; or
(10) Developmental ammunition funded by the Department of Defense
and specially designed parts and components therefor.
Note 1 to paragraph (a)(10): This paragraph does not control
ammunition:
(a) in production;
(b) determined to be subject to the EAR via a commodity
jurisdiction
[[Page 3832]]
determination (see Sec. 120.4 of this subchapter); or
(c) identified in the relevant Department of Defense contract or
other funding authorization as being developed for both civil and
military applications.
Note 2 to paragraph (a)(10): Note 1 does not apply to defense
articles enumerated on the U.S. Munitions List, whether in production
or development.
Note 3 to paragraph (a)(10): This provision is applicable to those
contracts or other funding authorizations that are dated January 23,
2021, or later.
(b) Ammunition/ordnance handling equipment specially designed for
the articles controlled in this category, as follows:
(1) Belting, linking, and de-linking equipment; or
(2) Fuze setting devices.
(c) [Reserved]
(d) Parts and components for the articles in this category, as
follows:
(1) Projectiles that use pyrotechnic tracer materials that
incorporate any material having peak radiance above 710 nm or are
incendiary or explosive;
(2) Shotgun projectiles that are flechettes, incendiary, tracer, or
explosive;
Note 1 to paragraph (d)(2): This paragraph does not include
explosive projectiles specially designed to produce noise for scaring
birds or other pests (e.g., bird bombs, whistlers, crackers).
(3) Projectiles of any caliber produced from depleted uranium;
(4) Projectiles not specified above, guided or unguided, for the
items controlled in USML Category II, and specially designed parts and
components therefor (e.g., fuzes, rotating bands, cases, liners, fins,
boosters);
(5) Canisters or sub-munitions (e.g., bomblets or minelets), and
specially designed parts and components therefor, for the guns or
armament controlled in USML Category II;
(6) Projectiles that employ tips (e.g., M855A1 Enhanced Performance
Round (EPR)) or cores regardless of caliber, produced from one or a
combination of the following: Tungsten, steel, or beryllium copper
alloy;
(7) Cartridge cases, powder bags, or combustible cases specially
designed for the items controlled in USML Category II;
(8) Non-metallic cases, including cases that have only a metallic
base, for the ammunition controlled in paragraph (a)(5) of this
category;
(9) Cartridge links and belts for fully automatic firearms and guns
controlled in USML Categories I or II;
(10) Primers other than Boxer, Berdan, or shotshell types;
Note 1 to paragraph (d)(10): This paragraph does not control caps
or primers of any type in use prior to 1890.
(11) Safing, arming, and fuzing components (to include target
detection and proximity sensing devices) for the ammunition in this
category and specially designed parts therefor;
(12) Guidance and control components for the ammunition in this
category and specially designed parts therefor;
(13) Terminal seeker assemblies for the ammunition in this category
and specially designed parts and components therefor;
(14) Illuminating flares or target practice projectiles for the
ammunition controlled in paragraph (a)(9) of this category; or
*(15) Any part, component, accessory, attachment, equipment, or
system that:
(i) Is classified;
(ii) Contains classified software; or
(iii) Is being developed using classified information.
Note 1 to paragraph (d)(15): ``Classified'' means classified
pursuant to Executive Order 13526, or predecessor order, and a security
classification guide developed pursuant thereto or equivalent, or to
the corresponding classification rules of another government or
intergovernmental organization.
(e) Technical data (see Sec. 120.10 of this subchapter) and
defense services (see Sec. 120.9 of this subchapter) directly related
to the defense articles enumerated in paragraphs (a), (b), and (d) of
this category and classified technical data directly related to items
controlled in ECCNs 0A505, 0B505, 0D505, and 0E505 and defense services
using the classified technical data. (See Sec. 125.4 of this
subchapter for exemptions.)
(f)-(w) [Reserved]
(x) Commodities, software, and technology subject to the EAR (see
Sec. 120.42 of this subchapter) used in or with defense articles.
Note to paragraph (x): Use of this paragraph is limited to license
applications for defense articles where the purchase documentation
includes commodities, software, or technology subject to the EAR (see
Sec. 123.1(b) of this subchapter).
Note 1 to Category III: This category does not control ammunition
crimped without a projectile (blank star) and dummy ammunition with a
pierced powder chamber.
Note 2 to Category III: This category does not control cartridge
and shell casings that, prior to export, have been rendered useless
beyond the possibility of restoration for use as a cartridge or shell
casing by means of heating, flame treatment, mangling, crushing,
cutting, or popping.
Note 3 to Category III: Grenades containing non-lethal or less
lethal projectiles are under the jurisdiction of the Department of
Commerce.
* * * * *
PART 123--LICENSES FOR THE EXPORT OF DEFENSE ARTICLES
0
3. The authority citation for part 123 continues to read as follows:
Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22
U.S.C. 2752, 2778, 2797); 22 U.S.C. 2753; 22 U.S.C. 2651a; 22 U.S.C.
2776; Pub. L. 105-261, 112 Stat. 1920; Sec 1205(a), Pub. L. 107-228;
Sec. 520, Pub. L. 112-55; Section 1261, Pub. L. 112-239; E.O. 13637,
78 FR 16129.
0
4. Section 123.15 is amended by revising paragraph (a)(3) to read as
follows:
Sec. 123.15 Congressional certification pursuant to Section 36(c) of
the Arms Export Control Act.
(a) * * *
(3) A license for export of defense articles controlled under
Category I paragraphs (a) through (g) of the United States Munitions
List, Sec. 121.1 of this subchapter, in an amount of $1,000,000 or
more.
* * * * *
0
5. Section 123.16 is amended by revising paragraphs (b)(2) introductory
text and (b)(6) and removing and reserving paragraph (b)(7) to read as
follows:
Sec. 123.16 Exemptions of general applicability.
* * * * *
(b) * * *
(2) Port Directors of U.S. Customs and Border Protection shall
permit the export of parts or components without a license when the
total value does not exceed $500 in a single transaction and:
* * * * *
(6) For exemptions for personal protective gear, refer to Sec.
123.17.
(7) [Reserved]
* * * * *
0
6. Section 123.17 is amended by revising the section heading, removing
and reserving paragraphs (a) through (e), and revising paragraph (j) to
read as follows:
Sec. 123.17 Exemption for personal protective gear.
* * * * *
(j) If the articles temporarily exported pursuant to paragraphs (f)
through (i) of
[[Page 3833]]
this section are not returned to the United States, a detailed report
must be submitted to the Office of Defense Trade Controls Compliance in
accordance with the requirements of Sec. 127.12(c)(2) of this
subchapter.
* * * * *
Sec. 123.18 [Removed and Reserved]
0
7. Section 123.18 is removed and reserved.
PART 124--AGREEMENTS, OFF-SHORE PROCUREMENT, AND OTHER DEFENSE
SERVICES
0
8. The authority citation for part 124 continues to read as follows:
Authority: Secs. 2, 38, and 71, Pub. L. 90-629, 90 Stat. 744 (22
U.S.C. 2752, 2778, 2797); 22 U.S.C. 2651a; 22 U.S.C. 2776; Section
1514, Pub. L. 105-261; Pub. L. 111-266; Section 1261, Pub. L. 112-
239; E.O. 13637, 78 FR 16129.
0
9. Section 124.14 is amended by revising paragraph (c)(9) to read as
follows:
Sec. 124.14 Exports to warehouses or distribution points outside the
United States.
* * * * *
(c) * * *
(9) Unless the articles covered by the agreement are in fact
intended to be distributed to private persons or entities (e.g.,
cryptographic devices and software for financial and business
applications), the following clause must be included in all warehousing
and distribution agreements: ``Sales or other transfers of the licensed
article shall be limited to governments of the countries in the
distribution territory and to private entities seeking to procure the
licensed article pursuant to a contract with a government within the
distribution territory, unless the prior written approval of the U.S.
Department of State is obtained.''
* * * * *
PART 126--GENERAL POLICIES AND PROVISIONS
0
10. The authority citation for part 126 continues to read as follows:
Authority: Secs. 2, 38, 40, 42 and 71, Pub. L. 90-629, 90 Stat.
744 (22 U.S.C. 2752, 2778, 2780, 2791 and 2797); 22 U.S.C. 2651a; 22
U.S.C. 287c; E.O. 12918, 59 FR 28205; 3 CFR, 1994 Comp., p. 899;
Sec. 1225, Pub. L. 108-375; Sec. 7089, Pub. L. 111-117; Pub. L. 111-
266; Section 7045, Pub. L. 112-74; Section 7046, Pub. L. 112-74;
E.O. 13637, 78 FR 16129.
0
11. Section 126.1 is amended by revising paragraph (s) to read as
follows:
Sec. 126.1 Prohibited exports, imports, and sales to or from certain
countries.
* * * * *
(s) Zimbabwe. It is the policy of the United States to deny
licenses or other approvals for exports or imports of defense articles
and defense services destined for or originating in Zimbabwe, except
that a license or other approval may be issued, on a case-by-case
basis, for the temporary export of firearms and ammunition for personal
use by individuals (not for resale or retransfer, including to the
Government of Zimbabwe).
* * * * *
PART 129--REGISTRATION AND LICENSING OF BROKERS
0
12. The authority citation for part 129 continues to read as follows:
Authority: Section 38, Pub. L. 104-164, 110 Stat. 1437, (22
U.S.C. 2778); E.O. 13637, 78 FR 16129.
0
13. Section 129.1 is amended by revising paragraph (b) to read as
follows:
Sec. 129.1 Purpose.
* * * * *
(b) All brokering activities identified in this subchapter apply
equally to those defense articles and defense services designated in
Sec. 121.1 of this subchapter and those items designated in 27 CFR
447.21 (U.S. Munitions Import List).
0
14. Section 129.2 is amended by:
0
a. In paragraph (b)(2)(v), removing the word ``or'' at the end of the
paragraph;
0
b. Removing the ``.'' at the end of paragraph (b)(2)(vi) and adding
``;'' in its place; and
0
c. Adding paragraphs (b)(2)(vii) and (viii).
The addition reads as follows:
Sec. 129.2 Definitions.
* * * * *
(b) * * *
(2) * * *
(vii) Activities by persons to facilitate the manufacture in the
United States or export of an item subject to the EAR; or
(viii) Activities by persons to facilitate the reexport, or
transfer of an item subject to the EAR that has been approved pursuant
to a license, license exception, or no license required authorization
under the EAR or a license or other approval under this subchapter.
* * * * *
0
15. Section 129.4 is amended by revising paragraphs (a)(1) and
(a)(2)(i) to read as follows:
Sec. 129.4 Requirement for approval.
(a) * * *
(1) Any foreign defense article or defense service enumerated in
part 121 of this subchapter (see Sec. 120.44 of this subchapter, and
Sec. 129.5 for exemptions) and those foreign origin items on the U.S.
Munitions Import List (see 27 CFR 447.21); or
(2) * * *
(i) Firearms and other weapons of a nature described by Category
I(a) through (d), Category II(a) and (d), and Category III(a) of Sec.
121.1 of this subchapter or Category I(a) through (c), Category II(a),
and Category III(a) of the U.S. Munitions Import List (see 27 CFR
447.21);
* * * * *
0
16. Section 129.6 is amended by revising paragraph (b)(3)(i) to read as
follows:
Sec. 129.6 Procedures for obtaining approval.
* * * * *
(b) * * *
(3) * * *
(i) The U.S. Munitions List (see Sec. 121.1 of this subchapter) or
U.S. Munitions Import List (see 27 CFR 447.21) category and sub-
category for each article;
* * * * *
Michael R. Pompeo,
Secretary of State.
[FR Doc. 2020-00574 Filed 1-17-20; 11:15 am]
BILLING CODE 4710-25-P