International Traffic in Arms Regulations (ITAR): U.S. Munitions List Categories IV and XV, 84482-84505 [2024-24091]

Agencies

• DEPARTMENT OF STATE

[Federal Register Volume 89, Number 205 (Wednesday, October 23, 2024)]
[Proposed Rules]
[Pages 84482-84505]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-24091]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF STATE

22 CFR Parts 120, 121, and 126

[Public Notice: 12543]
RIN 1400-AE73


International Traffic in Arms Regulations (ITAR): U.S. Munitions 
List Categories IV and XV

AGENCY: Department of State.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Department of State (the Department) proposes to amend the 
International Traffic in Arms Regulations (ITAR) to revise U.S. 
Munitions List (USML) Categories IV and XV and related sections of the 
ITAR to clarify and standardize the regulatory text, add items that 
warrant designation on the USML, and remove those items that no longer 
warrant designation on the USML. The Department further proposes to add 
three new license exemptions to the ITAR.

DATES: Send comments on or before November 22, 2024.

ADDRESSES: Interested parties may submit comments to the Department by 
any of the following methods:
     Visit the Regulations.gov website at: https://www.regulations.gov and search for the docket number DOS-2024-0035.
     Email: [email protected]. Commenting parties 
must include RIN 1400-AE73 in the subject line of the email message.
    See SUPPLEMENTARY INFORMATION for other information about 
electronic filing.

FOR FURTHER INFORMATION CONTACT: Mr. Robert Rasmussen, Office of 
Defense Trade Controls Policy, Department of State, telephone (202) 
663-2217; email [email protected]; SUBJECT: International 
Traffic in Arms Regulations: USML Categories IV and XV (RIN 1400-AE73).

SUPPLEMENTARY INFORMATION: The Department of State's Directorate of 
Defense Trade Controls (DDTC) regulates the export, reexport, 
retransfer, and temporary import of the defense articles and defense 
services identified on the USML at ITAR Sec.  121.1. Items not subject 
to the ITAR or to the exclusive licensing jurisdiction of any other 
department or agency of the U.S. Government are subject to 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). The EAR is administered and enforced by the Bureau of Industry 
and Security (BIS), U.S. Department of Commerce. This rule does not 
modify the list of defense articles and defense services controlled for 
purposes of permanent import by the Attorney General, as enumerated on 
the U.S. Munitions Import List (USMIL) at 27 CFR 447.21.
    Section 38 of the Arms Export Control Act (AECA) (22 U.S.C. 2778), 
the authority from which the ITAR is derived, requires periodic review 
to determine what articles and services, if any, no longer warrant 
designation on the U.S. Munitions List at 22 CFR 121.1. In maintaining 
the USML, DDTC's Office of Defense Trade Controls Policy (DTCP) 
identifies articles and services for review through a variety of 
methods, including informal public and interagency comment, commodity 
jurisdiction reviews, advisory opinions, and technology monitoring. The 
Department maintains the USML such that it comprises those defense 
articles or defense services that provide a critical military or 
intelligence advantage or, in the case of firearms, have an inherently 
military function. The Department, informed by consultations with its 
interagency partners, determined that the additional defense articles 
this rule proposes to designate on the USML warrant ITAR control and 
those articles it proposes to remove from the USML no longer do. This 
rule also proposes to amend and clarify certain regulatory text that 
describes items on the USML.
    Further, on December 20, 2023, Vice President Kamala Harris 
convened the National Space Council to discuss U.S. leadership in 
space. The Departments of State and Commerce were subsequently tasked 
to ``review relevant export controls and processes to better enable a 
globally competitive U.S. space industrial base while protecting our 
national security and foreign policy interests.'' In addition to 
clarifying existing controls, the Department identifies three primary 
methods to meet that objective. First, it presents several updates to 
the USML's structure, terminology, and concepts. Second, it proposes 
three new license exemptions within the ITAR and the transition of

[[Page 84483]]

guidance from an existing USML note into a fourth new exemption within 
a new section, Sec.  126.8. Third, it proposes revisions to USML 
Categories IV and XV.
    With this rule, the Department proposes to amend specific 
paragraphs within the USML to address controls that were identified as 
potentially requiring addition, removal, revision, or clarification. 
The Department proposes the following general types of changes to the 
ITAR: (1) USML Modernization Efforts, (2) Civil Space-Related License 
Exemptions and Special Licensing Provisions, and (3) USML Category 
Revisions.
    The Department invites feedback from industry and other interested 
parties on these proposals, which are further explained in that order 
below. In accordance with 5 U.S.C. 553(b)(4), a summary of this 
proposed rule may be found at https://www.regulations.gov.

USML Modernization Efforts

    The Department is modernizing the USML, specifically to improve its 
usability, clarity, and consistency in structure and regulatory text. 
This proposed rule contains revisions to that effect in the following 
areas:

Revision and Removal of Notes and Expansion of Sec.  121.0 Definitions

    The Department proposes to relocate content in notes within the 
USML, which has regulatory effect, into the relevant text of the USML 
paragraphs, or into new definitions in Sec.  121.0. The Department also 
proposes to update or remove other notes within the USML for clarity 
and to avoid redundancy.
    To create additional clarity within the text of the USML, the 
Department proposes to add definitions for the following new terms, 
many of which are currently contained in notes: amateur rocket, amateur 
rocket motor, bomb, excluded National Aeronautics and Space 
Administration (NASA) spacecraft, ground sample distance, hosted 
payload, human spaceflight preparations, loitering munition, mine, 
payload, primary payload, range, real-time, secondary payload, 
spacecraft, spacecraft bus, spacecraft housekeeping data and output, 
spacecraft payload, and spectral bandwidth.
    ITAR part 120 maintains defined terms that are relevant to the 
ITAR, while other definitions are located in notes to USML paragraphs. 
Consistent with the Department's overall effort to streamline and 
clarify the content and organization of the ITAR, this rule proposes to 
consolidate defined terms used within the USML in one location at Sec.  
121.0. The Department will further consider, and requests public 
comment on, whether the Department should instead move any of those 
terms to part 120, so they apply across the ITAR instead of just the 
USML.

Removal of Specially Designed as a Criterion in Certain Paragraphs

    The Department further proposes to revise those paragraphs where 
the term specially designed either does not narrow the scope of the 
paragraph or can be replaced with technical criteria that provide more 
specific controls. The Department does so to enhance clarity within the 
regulatory text.

Consistency in Construction

    The Department proposes to start each paragraph of the USML with 
the specific article of interest, followed by any qualifying criteria 
such as characteristics, functions, or performance capability. The 
Department does so to improve both the USML's consistency and its ease 
of navigation.
    The Department also proposes to relocate in-line catch-all entries 
(i.e., those located in the same paragraph as the article they are 
specially designed for) to the end of the paragraph to which they 
apply, unless it applies only to a portion of the control. The 
Department does so to enhance clarity and consistency within the 
regulatory text.

Structure of USML Categories

    The Department proposes to structure certain USML control text to 
more consistently follow the organizational composition described in 
Sec.  120.10(b), Composition of U.S. Munitions List categories. 
Restructuring to group paragraphs according to Sec.  120.40, 
Compositional terms, will improve the USML's ease of use and help 
reduce user error when performing an analysis to determine if an item 
is specially designed per Sec.  120.41. Since paragraphs (a)(2) and 
(b)(1) through (5) only apply to USML paragraphs that use the term 
``specially designed'' to describe items as parts, components, 
accessories, attachments, or software, the Department believes that 
clearly differentiating between the USML paragraphs that do so, and 
those that instead use the term ``specially designed'' to describe 
items using other Sec.  120.40 compositional terms, will assist in the 
analysis. For example, in this rule, the Department proposes to move 
equipment and systems currently described in the parts and components 
paragraph of Category IV(h) to a newly created paragraph (e) of USML 
Category IV. A similar approach is proposed for Category XV.

Clarification of Internal References and Standardization of Regulatory 
Text

    The Department proposes to update internal references within the 
USML for consistency and greater readability. For example, the 
Department proposes to replace references to larger divisions of 
subchapter M of title 22 (such as ``this section'') with more specific 
references such as ``the USML,'' when that is the intent. Similarly, 
the Department proposes to update references to ``this category'' to 
the specific USML Category referenced.
    The Department proposes to standardize its use of terms within the 
USML, including ``described'' and ``controlled.''
    For consistency and ease of use, the Department also proposes to 
utilize metric units and minimize references to U.S. customary units.
    And, finally, the Department proposes other minor changes in 
multiple paragraphs to promote consistency in regulatory text, grammar, 
and syntax without changing scope or substance.

Civil Space-Related License Exemptions and Special Licensing Provisions

    The Department proposes to add to part 126 three new licensing 
exemptions intended to promote U.S. industrial base participation in 
civil space activity commensurate with its national security and 
foreign policy goals. The Department further proposes to codify a 
fourth licensing exemption currently provided as guidance in an 
existing note within the USML. As a reminder, the ITAR contains other 
requirements to be eligible to use an exemption, including requirements 
which may attach to transfers. Those include, but are not limited to, 
Sec.  126.1 regarding proscribed destinations and statements required 
under Sec.  123.9(b). Specific to the current proposed rulemaking, the 
four proposed exemptions are as follows.

Official Space Agency Exemption

    This license exemption, proposed to be in a new Sec.  126.8(a), 
would authorize certain transfers of defense articles and defense 
services when conducted entirely within the scope of an official U.S. 
government agency space program listed in Sec.  126.8(a)(2). While the 
proposed list of articles and services subject to the exemption applies 
to several NASA spacecraft, the Department emphasizes this licensing 
exemption does not similarly apply to the space launch vehicles for 
these spacecraft. The Department assesses the underlying launch vehicle 
technology is independent of the spacecraft that potentially warrant a 
licensing

[[Page 84484]]

exemption, in part due to the implicitly civil, multilateral, or 
scientific mission of these specific spacecraft.

Space Activity Exemption

    This exemption, proposed to be in a new Sec.  126.8(b), consists of 
four provisions. The first would authorize certain transfers of defense 
articles and Sec.  120.32(a)(2) defense services supporting space 
launches. Certain transfers of electrical connectors would be eligible 
for this exemption, as the Department assesses that, while they 
continue to warrant regulation by this subchapter, certain transfers of 
these articles may be conducted under a licensing exemption without 
risk to U.S. national security and foreign policy interests. The 
Department requests public comment on additional space technologies 
having both military and commercial applications that should be 
considered for incorporation into this exemption. Comments on the 
benefit of such an expansion of the exemption to the regulated 
community and any perceived or recommended proliferation risk 
mitigations are also requested.
    The second provision would authorize certain services related to 
the transmission of space launch vehicle telemetry, to improve safety 
of flight and support the growing space launch industry. The Department 
proposes to limit this authorization to space launch vehicles since 
similar data can be used by rockets and missiles to deliver weapons of 
mass destruction.
    The third provision would authorize certain services to support 
collaboration with foreign persons when on-orbit defense articles are 
utilized in support of fundamental research, as defined in Sec.  
120.34(a)(8).
    The fourth provision would authorize certain services associated 
with radiofrequency transmissions using on-orbit defense articles, 
including geolocating certain automated information broadcasts, 
emergency transmissions, and cellular transmissions.

Space Tourism and Research Exemption

    This exemption, proposed to be in a new Sec.  126.8(c), would 
authorize certain transfers of manned spacecraft for space tourism or 
in support of fundamental research, as defined in Sec.  120.34(a)(8).
    The Department notes the proposed research exemptions apply 
specifically to certain basic and applied research, and not to the 
engineering development phase of research and development. Similarly, 
they do not apply to the design and development of a defense article or 
to research either not intended for publication or subject to 
publication restrictions or non-disclosure agreements.

Special Licensing Provision for Defense Articles Incorporated Into 
Spacecraft Subject to the EAR

    This exemption, proposed to be in a new Sec.  126.8(d), would 
authorize certain transfers of defense articles while they are 
incorporated into spacecraft subject to the EAR. This is consistent 
with two current notes (note 2 to paragraph (e) and note 2 to paragraph 
(e)(17)) the Department proposes to remove from Category XV.

Satellite Signature Reduction

    In addition to the proposed exemptions previously described, the 
Department also requests public comment on specific regulatory changes 
or clarifications to facilitate industry efforts to reduce the apparent 
magnitude, as viewed from Earth, of satellite brightness. Commenters 
should be cognizant of the Department's continued need to control 
signature reduction technologies that provide a critical military or 
intelligence advantage, including technologies to reduce spacecraft 
signatures as viewed in, or between, orbits.

USML Category Revisions

USML Category IV

Category Title
    The Department proposes to update the title of Category IV to 
better reflect the items described therein and to avoid the potential 
misinterpretation that the list of items in the title is exhaustive.
Paragraphs (a)(1) and (2)
    The Department proposes minor adjustments to USML Category IV(a)(1) 
and (2) for consistency in construction of the control text.
Man-Portable Air Defense Systems (MANPADS)
    In USML Category IV, paragraph (a)(3) describes MANPADS, paragraph 
(b)(2) describes ``[f]ixed launch sites and mobile launcher mechanisms 
for any system enumerated in paragraphs (a)(3) through (5) . . . (e.g., 
launch tables, TOW missile, MANPADS),'' and paragraph (h)(5) describes 
``MANPADS grip stocks and specially designed parts and components 
therefor.''
    To provide additional clarity and consistency in structure of the 
USML, with no change in the scope of the controls, the Department 
proposes to modify these paragraphs. The Department proposes to modify 
paragraph (a)(3) to enumerate the missiles and rockets used in MANPADS. 
As described elsewhere in this rule, the Department proposes further 
modifications to paragraph (b)(2) to clarify it describes launch 
systems and equipment for MANPADS and certain other defense articles; 
thus, launch tubes for MANPADS missiles would remain described on the 
USML. The Department proposes to continue to describe parts and 
components specially designed for MANPADS grip stocks in paragraph 
(h)(5) but notes MANPADS grip stocks described in that paragraph would 
also be described in proposed paragraph (b)(2) as launch equipment for 
MANPADS. The Department requests public comment on the advantages and 
disadvantages of describing MANPADS grip stocks either only in 
paragraph (b)(2) or only in paragraph (h)(5).
Anti-Tank Missiles
    USML Category IV(a)(4) describes ``[a]nti-tank missiles and 
rockets.'' The Department proposes to distinguish this entry from other 
USML paragraphs that describe other missiles and rockets that may be 
used to neutralize tanks, such as Category III(d)(4) for rocket 
propelled grenades (RPGs). The Department assesses that a commonly 
accepted distinction between the two is that anti-tank systems are 
typically guided, whereas RPGs are not. This demarcation, along with 
established precedent, precludes the need for a substantive revision of 
Category IV(a)(4). Instead, the Department proposes minor modifications 
for consistency in sentence structure and to clarify that it describes 
projectiles used to neutralize armored platforms of any kind, not just 
tanks.
Rockets
    USML Category IV(a)(5) describes rockets, space launch vehicles 
(SLVs), and missiles not described elsewhere in paragraphs (a)(1) 
through (4). This includes rockets on the lower end of the performance 
spectrum that, nonetheless, warrant designation as a defense article. 
USML Category IV(a) excludes certain model rockets via note 3 to 
paragraph (a).
    The Department also proposes to replace note 3 to paragraph (a) 
with a specific definition of ``amateur rockets'' in Sec.  121.0 and to 
reference that definition to exclude amateur rockets from the 
regulatory text of paragraph (a)(5). The proposed definition is 
consistent with the current National Fire Protection Association Code 
definition referenced in note 3 to paragraph (a).

[[Page 84485]]

Bombs
    The Department proposes to clarify the scope of USML Category 
IV(a)(6) through defining ``bomb'' in Sec.  121.0 in a manner that more 
clearly excludes improvised explosive devices (IEDs) and other ground-
based munitions. In doing so, the Department does not intend to narrow 
the scope of the USML and notes bombs dropped from ground-launched 
munitions are still dropped from the air (e.g., bomblets dropped from a 
munition launched from a ground vehicle), while some munitions marketed 
as `bombs' may more appropriately be classified as rockets or missiles.
Mines
    The USML currently enumerates mines in three separate paragraphs in 
USML Category IV. Paragraph (a)(9) describes ``[a]nti-personnel, anti-
vehicle, or anti-armor land mines (e.g., area denial devices).'' 
Paragraph (a)(10) describes ``[a]nti-helicopter mines.'' And paragraph 
(a)(11) describes ``[n]aval mines.'' The Department proposes to 
clarify, via a new parenthetical, that paragraph (a)(9) describes both 
Terrain Shaping Obstacles (TSOs) that are compliant with the Ottawa/
Presidential Landmine Policy and non-compliant area denial devices 
(ADDs).
    The Department also proposes to clarify that paragraph (a)(10) 
describes mines designed to target any type of aircraft, such as 
unmanned aerial vehicles (UAVs)--not just helicopters. The Department 
is unaware of any anti-UAV mines that are not anti-helicopter mines. 
Moreover, the Department assesses that any notional or future anti-
aircraft mines that are not also anti-helicopter mines warrant the same 
level of control as anti-helicopter mines.
    To facilitate additional proposed subordinate paragraphs to 
paragraph (a), the Department proposes to delete the conjunction ``or'' 
at the end paragraph (a)(11). The Department also proposes to move the 
definition of ``mine'' currently found in note 4 to Category IV(a) to 
Sec.  121.0, refine the definition, and delete the original note.
Grenades
    The Department proposes to remove the reference to ``high 
explosive'' in USML Category IV(a)(12) to prevent confusing the 
articles described in this paragraph with law enforcement tools, such 
as stun grenades, that are not subject to the ITAR. Instead, the 
Department proposes the paragraph refer to hand grenades ``designed to 
be lethal or destructive'', with a parenthetical list of examples, as 
more reflective of the types of grenades the Department intends to 
describe in this paragraph.
Loitering Munitions
    The Department proposes to add new paragraph (a)(13) to USML 
Category IV to enumerate loitering munitions, thereby distinguishing 
them from other defense articles with similar functionality, e.g., UAVs 
designed for repeated missions, instead of a single use. In support of 
this new paragraph, the Department proposes to add a regulatory 
definition of ``loitering munition'' in Sec.  121.0.
Kinetic Kill Vehicles
    The Department proposes to move kinetic kill vehicles currently 
described in USML Category IV(h)(3) to a new entry in paragraph (a), 
with no change in the scope of control.
Post-Boost Vehicles
    The Department proposes to move post-boost vehicles currently 
described in USML Category IV(h)(12) to a new entry in paragraph (a), 
with an expanded description for clarity in the regulatory text but no 
change in the scope of control.
Hypersonic Glide Vehicles
    The Department notes most hypersonic vehicles (HVs) are described 
on the USML in either Category IV or VIII. However, the Department 
assesses that the functionality of hypersonic glide vehicles (HGVs) 
requires specific enumeration on the USML. The Department thus proposes 
to add a new paragraph (a)(16) in Category IV for HGVs and specially 
designed parts and components therefor. The Department further proposes 
to designate this paragraph as ``MT'' (see Sec.  120.10(d)).
Re-Entry Vehicles
    The Department proposes to move the control for re-entry vehicles 
within USML Category IV from paragraph (h)(17) to new paragraph (a)(17) 
with minor textual changes. The Department also proposes to incorporate 
the guidance currently in the note to paragraph (h)(17) into the new 
paragraph (a)(17) and to clarify the scope of paragraph (a)(17) to 
better facilitate the order of review. Thus, the Department further 
proposes to delete the note to paragraph (h)(17).
Range and Payload
    The Department proposes to move the definitions of ``range'' and 
``payload,'' currently found in the notes to USML Category IV(a), to 
Sec.  121.0.
Model Rockets
    Certain rockets described in USML Category IV(a)(5) are excluded 
from that paragraph by note 3 to USML Category IV(a). The Department 
proposes to delete note 3, while maintaining the scope of paragraph 
(a), by adding a definition for ``amateur rocket'' in Sec.  121.0 and 
modifying paragraph (a)(5) to exclude amateur rockets.
Launch Platforms
    Paragraphs (b)(1) and (2) of USML Category IV describe ``[f]ixed 
launch sites and mobile launcher mechanisms'' for articles described in 
paragraphs (a)(1) through (5). For clarity, the Department proposes to 
delete the parenthetical example in paragraph (b)(2) since the ``TOW 
missile'' and ``MANPADS'' are described in paragraph (a).
    With advances in technology, such as maritime launch sites, the 
Department also proposes to modify paragraphs (b)(1) and (2) to 
describe ``launch systems and equipment'' to clarify they describe all 
launch system variants. This change also facilitates the Department's 
proposed intent to describe all launch systems for Category IV 
munitions in Category IV, changing the current practice of describing 
them according to the platform into which they are integrated, as 
currently facilitated by notes 1 and 2 to paragraph (b). Additionally, 
consistent with the current launch system controls for Category IV 
munitions, the Department proposes to add a parts and components catch-
all control to paragraphs (b)(1) and (2).
    The Department also proposes to delete the first two notes to 
paragraph (b) in the current regulation. Notes 1 and 2 direct the user 
to Categories VI, VII, and VIII for launcher mechanisms integrated into 
platforms described therein. However, the Department now proposes to 
describe launch systems according to the articles launched, not the 
platforms from which they are launched. This will result in describing 
articles such as the M299 and LAU-61 launchers in Category IV(b), while 
continuing to describe in Category VIII articles such as weapons pylons 
for integrating those launchers with aircraft. The Department assesses 
articles specially designed for the integration of a defense article 
described in USML Category IV with an operational platform should 
remain described in Category VI, VII, or VIII with their respective 
platforms, since they are better described as either articles for 
integrating launch equipment or, in the case of bomb racks, as release

[[Page 84486]]

mechanisms for self-launched munitions. The Department also proposes to 
add a new note 1 to paragraph (b) to ensure practitioners are aware 
that accessories, attachments, and associated equipment for USML 
Category XX(a) articles remain described in USML Category XX following 
the movement of launch systems and equipment to Category IV.
    This proposed change in the Department's approach is intended, in 
part, to address launchers that are repurposed from one platform to 
another, or even to fixed, land-based installations. In such cases, the 
Department assesses it is inappropriate for the export classification 
of an article to change based solely on the platform with which it is 
used. However, maintaining the original platform-specific 
classification for a launcher installed on a different platform also 
causes unnecessary confusion and can delay licensing, compliance, and 
enforcement. Further challenges arise when the control text for 
launchers on different platforms differs either in the relevant USML 
paragraph or its related catch-all entry, or in the significant 
military equipment (SME) status of those paragraphs. This is not a 
theoretical issue, as the Department has identified multiple instances 
where launch equipment has been repurposed from aircraft or ships to 
vehicles or fixed installations (e.g., the M299 launcher and Mark 41 
Vertical Launch System).
    Thus, the Department proposes to modify the relevant paragraphs of 
Categories VI, VII, and VIII so they only describe articles used to 
integrate either the launch systems described in Category IV(b), or 
self-launched munitions described in Category IV(a) that do not require 
a separate launch system (e.g., bombs that attach only via hard 
points), with platforms described in those categories. The Department 
assesses these changes will eliminate the potential conflict with the 
order of review in which the existing notes imply reclassification from 
the SME paragraph of Category IV to a non-SME paragraph in another 
category. The proposed change will also reduce confusion, and potential 
reclassification, when the same equipment is used on multiple 
platforms. The Department is coordinating with the Department of 
Commerce's Bureau of Industry and Security to ensure consistency in its 
related catch-all controls for any articles that move between USML 
categories because of this new approach.
USML Category IV(c)
    The Department notes it will address issues related USML Category 
IV(c) in a separate rulemaking. However, the Department still welcomes 
comments related to this paragraph.

    Note 1 to Paragraph (c) The Department proposes to modify note 1 
to USML Category IV(c) to clarify that, while paragraph (c) 
describes tanks specially designed for launch-site storage or 
handling of certain propellants, it does not describe tanks designed 
for commercial transportation and storage.


    Note 2 to Paragraph (c) Note 2 to USML Category IV(c) points to 
USML Category XI for controls on ``Aircraft Missile Protection 
Systems (AMPS).'' The Department proposes to delete note 2, 
assessing the pointer is no longer necessary for contemporary users 
and not specific enough for novice users. These systems are known by 
multiple names, and the term AMPS is not used in USML Category XI. 
However, the Department believes that current practitioners have 
already determined the export classification of their specific 
aircraft survivability equipment. Separately, a novice's search for 
``AMPS'' or ``Aircraft Missile Protection Systems'' would not 
identify an entry in USML Category XI--even if the specific system 
is described, for example, in USML Category XI(a)(4)(iii). The 
Department considered revising the note to provide a more explicit 
cross-reference but proposes to delete it instead, as similar cross-
references are not provided for most other technologies described on 
the USML and the Department is not aware of significant confusion in 
the regulated community as to the location of these specific 
controls that would warrant treating them differently from other 
technology controls.

Propulsion Systems
    The text of USML Category IV(d) uses the term ``power plants'' to 
refer to the items described in its subordinate paragraphs. The 
Department proposes to replace that term with ``propulsion systems.'' 
However, the Department further proposes to exclude from Category IV(d) 
those propulsion systems described in USML Categories XV or XIX, to 
clarify those items are not described in the subordinate paragraphs of 
(d), while deleting note 2 to paragraph (d), as it is made redundant by 
these changes.
Rocket Stages, Motors, and Engines
    The Department proposes minor changes to USML Category IV(d)(1) for 
consistency in construction and uniformity. The Department also 
proposes simplifying the regulatory text of paragraphs (d)(2) and (3) 
to reflect its intent to describe all motors and engines that satisfy 
the performance criteria, regardless of the propellant.
Air-Breathing Engines and Pressure Gain Combustion-Based Propulsion 
Systems
    The Department proposes minor changes to paragraphs (d)(5) through 
(7) of USML Category IV for consistency. The Department also proposes 
to designate paragraphs (d)(5) and (6) as ``MT'' based on an assessment 
that the described articles are also described in the Missile 
Technology Control Regime Equipment, Software, and Technology Annex 
(MTCR Annex).
Note 1 to USML Category IV(d)
    Note 1 to USML Category IV(d) provides a carve-out for motors that 
contain five pounds or less of propellant. The Department proposes to 
move that regulatory text into the definition of amateur rocket motors 
in Sec.  121.0 and delete the note.
Addition of USML Category IV(e)
    The Department proposes to move the following systems and equipment 
in USML Category IV from current paragraph (h) to a new paragraph (e): 
flight control and guidance systems (currently described in paragraphs 
(h)(1) and (28)), kinetic kill vehicles (currently described in 
paragraph (h)(3)), thrust vector control systems (currently described 
in paragraph (h)(4)), thermal protection systems (currently described 
in paragraph (h)(8)), self-destruct systems (currently described in 
paragraph (h)(10)), separation systems (currently described in 
paragraph (h)(11)), post-boost vehicles (currently described in 
paragraph (h)(12)), hypersonic glide vehicles, and unmanned atmospheric 
re-entry vehicles (both of which are currently described in paragraph 
(h)(17)), attitude control systems (currently described in paragraph 
(h)(28)), and seeker systems (currently described in paragraph (h)(2)).
    These changes are part of the Department's USML modernization 
efforts and align with the USML structure outlined in Sec.  120.10, by 
describing end-items, systems, and equipment in paragraphs that precede 
paragraphs dedicated to parts, components, accessories, and 
attachments.
Flight Control Systems, Guidance Systems, and Attitude Control 
Equipment
    Flight control systems are described in paragraphs (h)(1) and (28) 
of USML Category IV. Those two paragraphs also describe guidance 
systems and attitude control equipment, respectively. Along with moving 
these systems to new paragraph (e), the Department also

[[Page 84487]]

proposes to consolidate them in three subordinate paragraphs of new 
paragraph (e)(1), with each subordinate paragraph describing one of the 
three types of systems or equipment (flight control systems, guidance 
systems, and attitude control equipment).
    Within the paragraph for guidance systems, the Department proposes 
to delete the parenthetical reference to ``guidance sets'' and the 
related note to paragraph (h)(1) as redundant, assessing that 
``guidance sets'' described in paragraph (h)(1) already meet the Sec.  
120.40 definition of a ``system'' and are thus already described by the 
term ``guidance systems.'' The Department also believes any 
manufacturers who historically used the ``guidance set'' term of art 
understand the export classification of their items, further reducing 
the utility of the reference.
Thrust Vector Control Systems
    The Department proposes to simplify the regulatory text of current 
USML Category IV(h)(4) and move it to paragraph (e)(2). Specifically, 
the Department proposes to eliminate the reference to ``missile or 
rocket'' at the beginning of the paragraph, noting the text of proposed 
paragraph (e) renders it unnecessary. The Department further proposes 
to clarify this paragraph does not describe spacecraft thrust vector 
control systems described in USML Category XV.
Thermal Protection Systems (e.g., Heat Shields and Heat Sinks)
    USML Category IV(h)(8) describes heat shields for re-entry vehicles 
or warheads. The Department proposes to revise this paragraph and move 
it to paragraph (e)(3) to clarify the thermal protection systems 
described in this paragraph are not limited to traditional heat shields 
and to better distinguish this entry from a related paragraph in USML 
Category XV that describes spacecraft heat shields. The Department 
further proposes to designate new paragraph (e)(3) as ``MT'' based on 
an assessment that all such thermal protection systems designed for 
atmospheric re-entry are usable in MTCR Category I systems, and thus 
are described in the MTCR Annex. The Department also proposes to add a 
catch-all control to this paragraph. The Department also proposes to 
collocate this catch-all control with the thermal protection systems 
controls to improve the regulation's clarity and ease of use.
    Regarding the similar paragraph describing spacecraft heat shields 
in Category XV, the Department requests public comment on any perceived 
benefits and drawbacks to consolidating these two heat shield 
paragraphs under Category XIII.
Self-Destruct Systems
    USML Category IV(h)(10) describes self-destruct systems. The 
Department proposes to make minor modifications to this paragraph for 
consistency and clarity, with no change in the scope of control, and 
move it to paragraph (e)(4) of USML Category IV.
Separation Systems
    USML Category IV(h)(11) describes separation systems. The 
Department proposes to revise this paragraph for consistency and 
clarity, with no change in the scope of control, and move it to 
paragraph (e)(5) of USML Category IV. This paragraph currently 
describes all separation systems, including those used to separate 
satellites from space launch vehicles. The Department considered 
removing certain separation mechanisms from the USML but declines to do 
so after assessing the technology differences between those for civil 
purposes and military purposes do not provide sufficient 
differentiation.
SAFF Components
    USML Category IV(h)(9) describes safing, arming, fuzing, and firing 
(SAFF) components for missiles and rockets. The Department proposes to 
move it to the newly created paragraph (e)(6) and clarify it describes 
all SAFF systems for rockets, missiles, loitering munitions, and bombs, 
as well as their specially designed parts and components.
    In support of that change, the Department proposes to replace the 
limiting compound adjective ``missile and rocket'' with a criterion for 
articles described in paragraph (a)(1), (2), (3), (4), or (5) or (g) of 
USML Category IV. This will avoid an expansion of scope from the 
current USML by avoiding control of, for instance, SAFF systems for 
mines that are nominally subject to the EAR. By adding a reference to 
paragraph (g), the Department intends to incorporate SAFF systems for 
non-nuclear warheads currently described in USML Category IV(h)(18). 
This proposed change will consolidate all SAFF systems and components 
described on the USML into a single paragraph focused on the underlying 
technology instead of its end-use.
Seeker Systems
    USML Category IV(h)(2) describes seeker systems. The Department 
proposes to revise this paragraph for consistency and clarity, with no 
change in the scope of control, and move it to paragraph (e)(7) of USML 
Category IV. Additionally, the Department requests public comment on 
whether there are any areas of potential overlap between this and other 
USML entries and if so, whether entries describing these systems could 
potentially be consolidated.
Test Equipment
    The Department proposes to add USML Category IV(f) to describe test 
equipment for certain rockets, missiles, SLVs, and missile seekers. The 
Department assesses this technology provides a critical military 
advantage because testing protocols are increasingly being utilized in 
complex missile designs. The Department notes that testing software and 
protocols directly related to rockets, missiles, SLVs, or missile 
seekers are currently described in USML Category IV(i).
Non-Nuclear Warheads
    The Department proposes to simplify the regulatory text of USML 
Category IV(g). Additionally, the Department proposes to add chemical 
and biological warheads to the non-exhaustive parenthetical list of 
examples to further clarify the scope.
USML Category IV(h)
    The Department proposes to modify USML Category IV(h) to economize 
the text of its subordinate paragraphs. Currently, some subordinate 
paragraphs of (h) require an article be used in an end item described 
elsewhere in Category IV. The Department proposes to clearly stipulate 
in paragraph (h) that the articles in its subordinate paragraphs are 
for end-items described elsewhere in Category IV, thereby eliminating 
the need to repeat that requirement in each of its subordinate 
paragraphs. Consistent with its intent to move systems from paragraph 
(h) to paragraph (e), the Department also proposes to delete the 
reference to systems and subsystems in paragraph (h).
USML Category IV(h)(1) Through (4)
    Paragraphs (h)(1) through (4) of USML Category IV describe flight 
control systems, guidance systems, seeker systems, kinetic kill 
vehicles, and thrust vector control systems. As noted elsewhere in this 
rule, the Department proposes to move those articles to another 
paragraph. Consistent with this change, the Department proposes to 
reserve paragraphs (h)(1) through (4) to maintain the current numbering 
in the remaining paragraphs.
Grip Stocks for MANPADS
    The Department proposes to modify the wording of USML Category 
IV(h)(5),

[[Page 84488]]

so the article of interest is listed first rather than the end item for 
which it is used.
Nozzles, Nozzle Throats, Nose Tips, Nose Fairings, and Aerospikes
    The Department proposes to eliminate the reference to rockets and 
missiles in paragraphs (h)(6) and (7) of USML Category IV, based on 
proposed changes to paragraph (h) that more broadly reference articles 
described in USML Category IV.
USML Category IV(h)(8) Through (12)
    Paragraphs (h)(8) through (12) of USML Category IV describe heat 
shields, SAFF components, self-destruct systems, separation mechanisms, 
and post-boost vehicles. As the Department proposes to move these 
paragraphs to other locations within USML Category IV, it further 
proposes to reserve paragraphs (h)(8) through (12) to maintain the 
numbering of the paragraphs that follow.
Engine or Motor Mounts
    The Department proposes minor modifications to USML Category 
IV(h)(13) for clarity and consistency, with no intended change in the 
scope of control.
Combustion Chambers
    USML Category IV(h)(14) describes combustion chambers ``specially 
designed'' for articles enumerated in paragraphs (a) and (d) of USML 
Category IV. However, the Department is unaware of a scenario wherein 
combustion chambers used with articles described in paragraph (a) or 
(d) would be released by the ``specially designed'' analysis provided 
at Sec.  120.41(b). As such, the Department proposes to simplify the 
control paragraph by removing ``specially designed'' as a criterion for 
control. Additionally, the Department proposes to eliminate the 
limiting criterion ``for articles enumerated in paragraphs (a) and 
(d).'' The Department assesses this criterion is redundant, as it is 
unaware of combustion chamber use in articles described in the 
remaining Category IV paragraphs. This assessment, along with the 
regulatory text the Department proposes for paragraph (h), means the 
removal of this criterion does not change the scope of the control.
Injectors
    Similar to combustion chambers, the Department is unaware of 
injectors used in articles described in USML Category IV that would be 
released by the ``specially designed'' analysis provided at Sec.  
120.41(b), and the proposed regulatory text for paragraph (h) ensures 
the injectors described in paragraph (h)(15) are ``for articles 
described in USML Category IV.'' As such, the Department proposes to 
remove the ``specially designed'' criterion from paragraph (h)(15), 
with no change to the scope of the control.
Igniters
    The Department proposes to revise USML Category IV(h)(16) for 
clarity and consistency, and with a minor change in scope. The current 
USML describes solid rocket motor and liquid engine igniters. However, 
the Department assesses igniters used in amateur rocket motors do not 
provide a critical military or intelligence advantage. The Department 
believes that simplifying the paragraph to just ``igniters,'' with the 
proposed changes to paragraph (h) to describe parts, components, 
accessories, and attachments for articles described in Category IV 
appropriately scopes the control by removing igniters for amateur 
rocket motors.
Parts and Components for Non-Nuclear Warheads and USML Category IV(e) 
Systems
    The Department proposes to expand the scope of the USML Category 
IV(h)(18) catch-all control to include two types of parts and 
components specially designed for systems described in paragraph (e): 
non-electronic radiation hardened parts and components and parts and 
components specially designed for underwater launch. The Department's 
assessment is that such articles provide a critical military advantage 
when used in USML Category IV systems.
Penetration Aids
    The Department proposes to designate USML Category IV(h)(19) as SME 
per Sec.  120.36, since the articles it describes are vital to the 
successful deployment of warheads described in USML Category IV(g) 
which are, themselves, SME.
Motor Cases
    Consistent with changes it proposes to USML Category IV(h), the 
Department proposes to eliminate the reference to ``rocket'' in USML 
Category IV(h)(20) based on the assessment that, in this context, the 
use of ``rocket'' is intended to describe the motor, not the platform 
in which the motor is used and that rocket motors can be used in more 
than just rockets. Since the technology remains the same, regardless of 
the platform, the Department intends for the control to remain 
independent of its end use.
Liners and Insulation
    The Department proposes to modify the wording of USML Category 
IV(h)(21) for clarity and consistency, with no change in the scope of 
the control.
Radomes, Sensor Windows, Antenna Windows, and Embedded Antennae
    The Department proposes minor modifications to USML Category 
IV(h)(22) for consistency in regulatory text construction and to update 
cross-references in the regulatory text. The Department further 
proposes to expand the scope of paragraph (h)(22) by adding ``embedded 
antennae'' to the list of items described therein, as embedded antennae 
are not antenna windows yet provide similar capability through 
alternative means.
Payload Fairings
    The Department proposes minor modifications to USML Category 
IV(h)(23), to ensure it effectively describes all payload fairings for 
articles described in USML Category IV, not just those for rockets and 
missiles.
Launch Canisters
    The Department proposes to modify USML Category IV(h)(24) to remove 
the reference to ``rocket or missile'' in describing launch canisters. 
The Department assesses the existing reference is redundant based on 
the proposed changes to paragraph (h).
Fuzes
    The Department proposes to limit the scope of USML Category 
IV(h)(25) to those fuzes not already described in paragraph (e)(6) as 
``specially designed'' parts and components of SAFF systems. The 
Department requests public comment on whether the retention of USML 
Category IV(h)(25) is necessary and if so, examples of items that could 
be described in this entry but are not already described in paragraph 
(e)(6).
Propellant Tanks and Altimeters
    The Department proposes to modify USML Category IV(h)(26) and (27) 
to eliminate the reference to ``rocket or missile'' based on proposed 
changes to paragraph (h).
Umbilical and Interstage Electrical Connectors
    In USML Category IV(h)(29), the Department proposes to remove the 
reference to ``rockets or missiles,'' consistent with similar proposed 
changes in other paragraphs, and to create three subordinate 
paragraphs, moving the umbilical and interstage connectors described 
therein to the new paragraph (h)(29)(i). The Department

[[Page 84489]]

proposes to incorporate the guidance currently provided in the note to 
paragraph (h)(29) to the regulatory text in the new paragraph 
(h)(29)(ii) and delete the note. The Department further proposes to add 
electrical connectors specially designed for hostile nuclear radiation 
environments to the new paragraph (h)(29)(iii), assessing that these 
connectors, used in ballistic missile systems, provide a critical 
military advantage.
    The Department also proposes to add a licensing exemption to Sec.  
126.8 for certain activities involving connectors installed between 
articles described in paragraph (a)(1) or (2) and certain payloads.
Turbo Pumps
    The Department proposes to add a new paragraph (h)(31) to USML 
Category IV describing turbo pumps specially designed for the 
propulsion systems described in USML Category IV(d).
Technical Data and Defense Services
    The Department proposes minor modifications to USML Category IV(i) 
for consistency in construction of the control text.
Note to Category IV
    The Department proposes to eliminate the note to USML Category IV, 
as it does not provide a substantive explanation of the control text. 
This note describes one specific circumstance wherein a system would be 
described in Category I of the MTCR Annex, which is not a distinction 
made elsewhere on the USML. For assistance identifying articles that 
are on the MTCR Annex, users should reference the ``MT'' designations 
provided as described in Sec.  120.10(d).
Consideration of Prior Public Comments on USML Category IV
    The Department previously published an advanced notice of proposed 
rulemaking (RIN 1400-AE73) on March 8, 2019, to request public comment 
(see 84 FR 8486). Twenty-five parties filed comments recommending 
changes, which were reviewed and considered by the Department, in 
consultation with other U.S. Government departments and agencies. A 
summary of the comments related to USML Category IV follows:
    Four commenting parties recommended the Department add a note to 
USML Category IV, similar to note 3 to paragraph (f) of Category XV, to 
decontrol housekeeping and telemetry data associated with space launch 
vehicles. The Department declines to do so, as such data may be used in 
the furtherance of programs to deliver weapons of mass destruction. 
However, the Department does propose to exempt certain telemetry from 
licensing requirements in specific circumstances, as reflected in its 
proposed exemptions in part 126.
    Three commenting parties recommended thermal batteries be removed 
from the USML in favor of existing descriptions on the CCL. Thermal 
batteries were originally developed as, and are still predominantly 
used as, single-use power sources with long shelf-lives and high 
reliability for munitions applications. As such, they continue to 
provide a critical military advantage and the Department declines to 
remove them from the USML. Nonetheless, the Department requests public 
comment on civil uses of thermal batteries in space applications to 
allow consideration for their inclusion in a licensing exemption 
supporting civil space efforts.
    One commenting party recommended the USML be revised to account for 
unmanned aerial vehicles (UAVs) used as loitering munitions. The 
Department proposes both a Sec.  121.0 definition and an enumerated 
paragraph (a)(13) in USML Category IV for loitering munitions, as 
explained in this rule.
    Seven commenting parties recommended various changes to USML 
Category IV(b). Specifically, the commenting parties recommended the 
exclusion of aircraft modified to launch SLVs, the exclusion of parts 
and components not otherwise enumerated, consistency with how launch 
platforms are described in other USML categories, addressing the 
absence of launchers for articles described in paragraphs (a)(6) 
through (12) of USML Category IV, decontrolling articles described 
therein once integrated into an end-item subject to the EAR (similar to 
note 2 to paragraph (e) of USML Category XV), and revising Category VI 
to better describe the Mark 41 Vertical Launch System (MK 41 VLS) as 
SME. The Department proposes revising the regulatory text of USML 
Category IV(b), clarifying its scope, and deleting its corresponding 
notes, as previously described in this rule.
    Two commenting parties recommended changes to paragraph (c) of USML 
Category IV. One suggested defining the terms ``apparatus'' and 
``devices.'' The Department plans to address this issue in a separate 
rulemaking. Both parties recommended changes to note 1 to paragraph (c) 
to avoid controlling tanks used to store propellants not subject to the 
ITAR. Though the Department declines to propose this change at this 
time, it clarifies that certain storage tanks are not defense articles. 
Specifically, only those storage tanks with properties peculiarly 
responsible for the handling, control, activation, monitoring, 
detection, protection, discharge, or detonation of a commodity 
described in USML Category IV(a) or (b) are described. For example, 
this would not include general-purpose tanks designed to store 
flammable liquids that are subsequently used, unmodified, in launch 
site applications. However, it would include a similar tank with 
additional properties to protect against damage from launch blasts or 
debris from launch failures.
    One commenting party recommended distinguishing between launch 
platforms described in Category IV and prominent subassemblies sold 
independently that do not, individually, satisfy the control criteria 
of paragraph (b) or (c). The Department declines this recommendation 
and notes the example provided was such a prominent subassembly of the 
overall launch platform that it likely satisfies the definition of a 
defense article as provided in Sec.  120.31. Specifically, it has ``. . 
. reached a stage in manufacturing where . . . [it is] clearly 
identifiable by mechanical properties, material composition, geometry, 
or function as [a] defense [article].''
    Four commenting parties recommended changes to paragraph (h)(11) to 
more clearly delineate between separation systems for spacecraft and 
those for articles described in Category IV. The Department has not 
identified a clear delineation and assesses that implementing a carve-
out to the USML based solely on end-use would harm U.S. national 
security and foreign policy interests. Instead, the Department requests 
public comment on potentially exempting certain separation systems from 
licensing requirements in certain situations, as reflected in the 
proposed changes to part 126 for connectors.
    One commenting party recommended a change to paragraph (h)(14) to 
remove combustion chambers of reaction control system thrusters and 
auxiliary systems. The Department declines this recommendation. 
Reaction control systems are a vital subassembly of articles described 
in USML Category IV. Moreover, the Department is unaware of combustion 
chambers used in an SLV, rocket, or missile that would otherwise be 
released by the ``specially designed'' analysis provided at Sec.  
120.41(b). The only rockets not currently subject to the ITAR are those 
which satisfy the definitions of model or high power rockets, which do 
not use such combustion chambers.

[[Page 84490]]

    Two commenting parties recommended paragraphs (h)(15) and (16) be 
revised to clarify they describe injector assemblies and igniter 
systems, respectively, with the additional suggestion that the scope of 
the paragraphs be expanded to include ``catch-all'' controls as defined 
in the note to paragraph (b) of Sec.  120.41 (to describe parts and 
components therefor). The Department concurs regarding the inclusion of 
assemblies to clarify scope. However, the Department disagrees with 
including ``catch-all'' controls on the USML for these paragraphs.
    One commenting party recommended mine launchers be added to 
paragraph (h)(24) to close a gap in jurisdictional control. The 
Department proposes to modify paragraph (b) to do so.
    One commenting party recommended paragraph (h)(28) be revised to 
clarify it does not control thrusters or actuators in attitude control 
systems since similar thruster designs are used in articles subject to 
the EAR. The Department declines to do so, since such scenarios are 
already addressed by the inclusion of ``specially designed'' within the 
control text.

USML Category VI, VII, VIII, and XX Conforming Changes

    The Department proposes to modify USML Category VI(f)(6) and (7) to 
avoid overlap in controls between those paragraphs and the proposed 
revision and intent of Category IV(b). As such, the Department proposes 
to clarify these paragraphs only describe certain integration 
equipment, aircraft launch and recovery equipment, and certain 
shipborne defensive systems, not articles described in Category IV(b). 
The Department further proposes to split paragraph (f)(6) into three 
subordinate paragraphs for ease of parsing and adjust the ``MT'' 
designations for consistency with the MTCR Annex.
    Similarly, the Department proposes to modify USML Category 
VII(g)(2) to avoid overlap in controls between that paragraph and the 
proposed revision and intent of Category IV(b), and therefore proposes 
to clarify paragraph (g)(2) only describes articles not already 
described in Category IV(b).
    The Department proposes to add USML Category VII(g)(15) and modify 
USML Category VIII(h)(6) to ensure items designed for integrating 
certain defense articles are described in the same USML category as the 
platform they are being integrated into and to avoid ambiguity about 
whether they are controlled in USML Category IV(b).
    Subsequent to these changes, these paragraphs will only describe 
articles that assist in the integration between a vehicle and either a 
launching system or a self-launching munition.

USML Category XI

Monolithic Microwave Integrated Circuits (MMICs)
    The Department proposes to modify USML Category XI(c)(4) to control 
the MMICs removed from Category XV. The proposed change will not change 
the scope of controls on MMICs, but will create clarity in controls on 
the items by consolidating regulatory text on MMICs under the more 
appropriate designation of military electronics.
Electronic Assemblies
    The Department proposes to expand the scope of items described in 
paragraph (c)(15) of USML Category XI by adding electronic parts and 
components capable of operation at temperatures in excess of 125 [deg]C 
and specially designed for spacecraft described in USML Category XV. 
The Department assesses that such items provide a critical military 
advantage commensurate with the electronics currently described in that 
paragraph. The Department proposes further revisions to paragraph 
(c)(15) for clarity and consistency of the regulatory text and ease of 
use, with no additional change in scope of the items described therein.

USML Category XII

Read-Out Integrated Circuits (ROICs)
    The Department requests comment on the potential merits of removing 
of USML Category XII(e)(14), with no change in the scope of control. 
Integrated circuits described therein are already described in USML 
Category XI(c)(1) and the Department asks whether the regulated 
community sees a benefit to retaining USML Category XII(e)(14) as a 
separate entry.

USML Category XIII

    USML Category XIII(j) describes certain materials not elsewhere 
specified on the USML. The Department proposes to revise paragraph (j) 
for consistency in the regulatory text, with no change in scope, and to 
add two subordinate paragraphs to paragraph (j) to describe materials 
specially designed for underwater launch of missiles or hostile nuclear 
radiation environments. As missile designs advance, the Department 
assesses these specific types of materials provide a critical military 
or intelligence advantage.

USML Category XV

Spacecraft
    The Department proposes to revise USML Category XV(a) in several 
ways. First, the Department proposes to use two Sec.  121.0 
definitions, ``spacecraft'' and ``excluded NASA spacecraft,'' to 
clarify the scope and to simplify its subordinate paragraphs. By 
excluding specific NASA spacecraft via the proposed definition, the 
Department both facilitates the deletion of notes 2 and 3 to paragraph 
(a) (which exclude these NASA spacecraft) with no change in the scope 
of control and establishes a straightforward mechanism to enable the 
exclusion of certain NASA spacecraft in the future. The Department 
further considered excluding commercial low Earth orbit (CLEO) habitats 
and assesses doing so is unnecessary, as the proposed regulatory text 
does not nominally describe such spacecraft. The Department welcomes 
public comment identifying reasons CLEO habitats may be inadvertently 
described in proposed paragraph (a), as it intends only to describe 
spacecraft that provide a critical military or intelligence advantage 
as set forth in Sec.  120.3(b).
    Additionally, the Department proposes to delete the qualifying 
phrase ``. . . whether designated developmental, experimental, 
research, or scientific, or having a commercial, civil, or military end 
use . . .'' from paragraph (a). Spacecraft described in the subordinate 
paragraphs of paragraph (a) are defense articles, regardless of 
intended end-use. The Department assesses this intent is sufficiently 
clear without inclusion of this phrase. The Department further assesses 
the current note 1 to paragraph (a) is already addressed through the 
``order of review'' guidance at Sec.  120.11 and proposes to delete it 
as unnecessary.
    The Department considered proposing definitions for space probe, 
space vehicle, space capsule, and space habitat, but declines to do so 
at this time, and requests comment from members of the public who 
believe there is a need to define one or more of these terms.
Detection or Mitigation of a Nuclear Detonation
    The Department proposes to modify USML Category XV(a)(1) for 
consistency in construction of the control text.
Detect and Track Objects
    In USML Category XV(a)(2), the Department proposes to delete the 
reference to ``imaging, infrared, radar, or laser systems,'' as the 
function, not the

[[Page 84491]]

method, provides the critical military or intelligence advantage. The 
Department also proposes to replace the reference to ``ground, 
airborne, missile or space'' with criteria that describe the technology 
critical to detecting and tracking ballistic and cruise missiles, 
launch vehicles, and related payloads (missiles, post-boost vehicles, 
kill vehicles, re-entry vehicles, and penetration aids). The Department 
assesses that autonomously detecting and tracking ground vehicles and 
aircraft via satellite no longer provides a critical military or 
intelligence advantage, and that the proposed criterion would exclude 
the tracking of all ground objects and most airborne objects, thus 
reducing the scope of the control. With this change, the Department 
intends to describe the missile defense capability without describing 
space situational awareness, orbital debris mitigation, or cooperative 
docking capabilities.
Spacecraft for Signals Intelligence
    USML Category XV(a)(3) describes satellites that conduct certain 
intelligence collection. To clarify the intent of the control and 
consistency in construction of the text, the Department proposes to 
modify this paragraph by adding a ``specially designed'' criterion to 
the control text and removing from the text the term ``conduct,'' with 
no change in the scope of the control.
Constellations
    The Department proposes to modify USML Category XV(a)(4) for 
simplicity and consistency in construction of the control text.
Space-Based Weapons
    In USML Category XV, the Department proposes to modify paragraph 
(a)(5), which describes spacecraft that are anti-satellite or anti-
spacecraft, and paragraph (a)(6), which describes spacecraft with 
space-to-ground weapon systems, for consistency in construction, 
simplicity, and uniformity. The Department proposes using the terms 
`space-to-space weapons' and `space-to-ground weapons' to differentiate 
between the two entries, and to remove the parenthetical example lists 
as unnecessary.
Spacecraft With Remote Sensing Capabilities
    The Department proposes several revisions to USML Category 
XV(a)(7). To facilitate purely scientific telescopes, the Department 
considered limiting paragraph (a)(7) to Earth-pointing spacecraft. It 
declines to do so, as the technology for Earth-pointing and non-Earth 
pointing spacecraft that satisfy the technical criteria in paragraphs 
(a)(7)(i) through (iv) overlaps to a large degree. Instead, the 
Department welcomes comments on specific activities that might 
reasonably warrant an exemption from certain licensing requirements 
without harming U.S. national security or foreign policy interests.
    Within the control text, the Department proposes to update the 
threshold for some remote sensing capabilities to better reflect the 
current state of technology. In paragraph (a)(7)(i), the Department 
proposes to eliminate the spectral band threshold and replace the 
aperture size threshold with a threshold on light collecting area, in 
recognition that not all light collecting sensors are circular or 
readily described in terms of a physical aperture size. The Department 
also proposes to reduce the ground sample distance (GSD) requirement in 
paragraph (a)(7)(ii) from 30 meters to 20 meters. Consistent with the 
proposed definition of ``ground sample distance'' in Sec.  121.0, the 
GSD requirements apply only to a sensor as calibrated.
    The proposed addition of a definition for GSD and satellite 
spectral bandwidth in Sec.  121.0 facilitates the Department's proposed 
removal of notes 1 and 2 to paragraph (a)(7). The Department further 
proposes to move the guidance from note 3 to paragraph (a)(7) into the 
control text and delete the note.
    Additionally, the Department proposes to clarify that when a 
spacecraft incorporates multiple sensors that perform the same 
function, those sensors should be assessed in the aggregate when 
adjudicating the applicability of this paragraph.
Radar Remote Sensing
    The Department proposes to modify USML Category XV(a)(8) to narrow 
its scope by increasing the bandwidth criterion to 500 MHz and to make 
minor changes for consistency in construction and clarity. To assist 
its review of this control, the Department further requests comments 
substantiating current industry standards for radar remote sensing 
bandwidths, related foreign availability of such technology, and any 
radar remote sensing activities the Department should consider for an 
additional licensing exemption, similar to the list of radiofrequency 
sensing activities proposed for Sec.  126.8(b)(2)(iv).
Position, Navigation, and Timing
    The Department proposes to modify USML Category XV(a)(9) both for 
consistency in construction and to clarify the scope is limited to 
spacecraft that generate a position, navigation, and timing (PNT) 
signal, not those that augment, amplify, re-broadcast, relay the signal 
or provide a differential correction. Subsequent to that change, the 
Department proposes to delete the note.
Autonomous Collision Avoidance
    USML Category XV(a)(10) describes spacecraft that autonomously 
perform collision avoidance. In an increasingly congested orbital 
environment, the Department assesses many spacecraft will have to 
perform this task, and that doing so no longer provides a critical 
military or intelligence advantage. Based on that assessment, 
spacecraft no longer warrant inclusion on the USML solely due to their 
ability to autonomously avoid collisions. Thus, the Department proposes 
to delete USML Category XV(a)(10) and place it in reserve to avoid 
renumbering subsequent paragraphs.
Suborbital Craft
    The Department proposes to modify USML Category XV(a)(11) for 
consistency in construction of the control text.
Inspection or Surveillance
    The Department proposes to modify USML Category XV(a)(12) to 
eliminate the reference to servicing other spacecraft and to narrow the 
scope of the control to only describe surveillance spacecraft. 
Specifically, the Department proposes two distinct sets of surveillance 
criteria. The first criterion describes spacecraft specially designed 
to take images of another spacecraft within a defined angular 
resolution that doesn't change with distance between the detector and 
the object. The second set of criteria describe spacecraft specially 
designed to monitor, follow, and record other spacecraft. With this 
change, the Department intends to describe the surveillance capability 
without describing space situational awareness, orbital debris 
mitigation, or cooperative docking capabilities.
Note to Paragraph (a)(12)
    With the elimination of servicing from paragraph (a)(12), the 
guidance provided in the note to paragraph (a)(12) is no longer 
relevant. It is nominally relevant to newly created paragraph (a)(14) 
for spacecraft that non-cooperatively dock with other spacecraft. 
However, in new paragraph (a)(14) the Department proposes to remove the 
criterion for the type of docking system used and, instead, focus on 
the technology required to achieve uncooperative docking or grappling. 
As

[[Page 84492]]

a result of these proposed changes, the Department proposes to delete 
the note to paragraph (a)(12), as it is no longer relevant.
Classified Spacecraft
    The Department proposes to modify USML Category XV(a)(13) for 
consistency in construction and simplicity of the control text.
Additions
    The Department proposes to add paragraphs (a)(14) through (16). 
These paragraphs designate, respectively, spacecraft capable of non-
cooperative grappling or docking, in-orbit construction of other 
defense articles, and deploying multiple spacecraft into different 
orbits.
    The technology required to facilitate non-cooperative docking is 
likely to be used in an adversarial manner. A spacecraft capable of in-
orbit construction of other defense articles represents a critical 
logistical advantage. And spacecraft that can rapidly deploy multiple 
spacecraft into multiple different orbits provide a critical military 
or intelligence advantage when compared to commercial systems that may 
be able to achieve the same result over a much longer timeframe.
Articles Jettisoned From Another Spacecraft
    The Department proposes to move USML Category XV(e)(20) to 
paragraph (a)(17) and then modify the control text for clarity and 
consistency in construction of the control text. The Department 
proposes to simplify it by moving the required characteristics to three 
subordinate paragraphs for guidance, navigation, and control (GNC) 
systems, attitude control systems, and propulsion systems, 
respectively.
Ground Control Systems
    The Department proposes to modify the text in USML Category XV(b) 
for simplicity by eliminating references to ``telemetry, tracking, and 
control'' since the Department assesses those functions effectively 
encompass the entirety of a ground station's purpose and are, 
therefore, redundant.
    The Department assesses the current note to paragraph (b) is 
unnecessary and proposes to delete it. Paragraph (b) only describes 
systems and simulators, includes a specially designed criterion, and 
does not include a catch-all control. The Department assesses the 
proposed text of paragraph (b), the order of review at Sec.  120.11, 
and the specially designed definition at Sec.  120.41 would render the 
note superfluous.
Movement of Systems
    The Department proposes to move the following systems within USML 
Category XV to paragraph (c): cryocoolers and cold finger systems, 
active vibration suppression systems, and attitude determination and 
control systems. These changes align with the Department's intended 
USML structure, as described in Sec.  120.10, with end-item, system, 
and equipment controls generally listed prior to paragraphs dedicated 
to parts, components, accessories, and attachments.
Active Cooling Systems
    The Department proposes to relocate USML Category XV(e)(4) to 
paragraph (c)(1), along with several modifications to the control text. 
The Department proposes to replace the requirement that the cooling 
system be space-qualified with a ``specially designed'' criterion. The 
Department assesses that, for certain technologies, space qualification 
is no longer the best discriminator, since all spacecraft and 
equipment, parts, and components are essentially space-qualified by 
default and designed, manufactured, or tested for operation in space. 
Elimination of this term would also minimize assertions that articles 
otherwise described by the USML are subject to the EAR based solely on 
the intentional avoidance of qualification.
    Additionally, the Department proposes to explicitly state that the 
paragraph describes only active cooling systems. This will be 
accomplished by moving the qualifier ``active'' from the parenthetical 
reference to the beginning of the paragraph. The Department assesses 
this does not change the scope of the controls since the two types of 
articles listed in the parenthetical reference are both active systems.
Vibration Suppression Systems
    The Department proposes to relocate USML Category XV(e)(5) to 
paragraph (c)(2), along with several modifications, including replacing 
the requirement that the articles described therein be space-qualified 
with a ``specially designed'' criterion based on the same rationale 
used for active cooling systems. The Department also proposes to move 
the examples provided in the text of paragraph (e)(5) to a 
parenthetical list in paragraph (c)(2) for clarity.
Attitude Determination and Control Systems
    The Department proposes to relocate USML Category XV(e)(10) to 
paragraph (c)(3), along with minor modifications for consistency in 
construction and enhanced clarity of the control text. The Department 
proposes to move the reference to ``specially designed parts and 
components'' to the end of the paragraph's text, as the accuracy 
requirements in the control text apply to the attitude control systems 
overall, and not to the parts and components of those systems. 
Additionally, the Department proposes to clarify the existing threshold 
of ``better than'' means ``less than'' in the context of the control 
and to move that qualifying regulatory text to each of the subordinate 
paragraphs, alongside the values for the control criteria. Consistent 
with the Department's intent to regulate technologies in space 
consistent with how it regulates them on Earth, the Department proposes 
to add ``or equivalent'' to each orbital accuracy criterion to account 
for systems designed to provide the same performance while orbiting 
celestial bodies other than the Earth.
Thermal Protection Systems (e.g., Heat Shields and Heat Sinks)
    USML Category XV(e)(19) describes heat shields and heat sinks for 
spacecraft. The Department proposes to move this text to new paragraph 
(c)(4) and revise it to clarify the scope extends beyond traditional 
heat shields to more complex thermal protection systems and to better 
distinguish it from a related paragraph in USML Category IV. Further, 
the Department proposes to designate the entire entry ``MT,'' based on 
an assessment that all such articles designed for atmospheric re-entry 
can be deployed on MTCR Category I systems.
    Regarding the similar paragraph describing spacecraft heat shields 
in Category IV, the Department requests public comment on any perceived 
benefits and drawbacks to consolidating these two heat shield 
paragraphs under Category XIII.
Spacecraft Propulsion
    The Department proposes to relocate the spacecraft propulsion 
system paragraphs in USML Category XV from paragraphs (e)(11) and (12) 
to new paragraph (d), consistent with its intent to limit the scope of 
paragraph (e) to parts, components, accessories, and attachments. Doing 
so would make USML Category XV consistent with USML Category IV in 
providing a dedicated paragraph (d) for propulsion systems.
    The Department proposes to relocate the nuclear and electric 
propulsion and power assemblies described in paragraph (e)(11)(i) 
through (iii) to paragraphs (d)(1) through (3) and modify the control 
text for simplicity and consistency with the current state of

[[Page 84493]]

technology by replacing the reference to ``space-based systems'' with 
the more specific ``propulsion systems'' and ``power systems.'' Similar 
systems designed for applications other than spacecraft are excluded by 
the proposed text of paragraph (d).
    The Department proposes to move ion propulsion systems described in 
paragraph (e)(11)(iv) to paragraph (d)(4), adjust upward the thrust and 
specific impulse criteria, and adjust upward the input power criterion, 
thereby removing from the USML certain systems the Department assesses 
no longer provide a critical military or intelligence advantage.
    The Department proposes to move the non-nuclear propulsion 
assemblies described in paragraph (e)(12) to paragraph (d)(5) and to 
modify the control text for consistency in construction and clarity of 
the control text by replacing the term ``thrusters'' and the 
accompanying examples with to the term ``non-nuclear propulsion 
systems,'' with no change to the scope of the control.
Spacecraft Parts, Components, Accessories, and Attachments
    The Department proposes two minor revisions to the text of USML 
Category XV(e). First, the Department proposes to remove the reference 
to equipment and systems, reflecting the proposed movement of those 
articles to a paragraph dedicated to systems and equipment. Second, the 
Department proposes to clarify the scope of paragraph (e) by limiting 
the parts, components, accessories, and attachments described therein 
to those that are for spacecraft.
Antennas
    The Department proposes to narrow the scope of USML Category 
XV(e)(1) by adding a minimum operational frequency, thereby removing 
from the USML certain antennas the Department assesses no longer 
provide a critical military or intelligence advantage. Additionally, 
the Department proposes minor modifications to paragraphs (e)(1)(i) 
through (iv) for clarity and consistency within the control text.
Optics
    The Department proposes multiple modifications to USML Category 
XV(e)(2). First, the Department proposes to remove ``space-qualified'' 
because the Department assesses the underlying technology provides a 
critical military or intelligence advantage regardless of the 
environment in which the optics are used. Second, the Department 
proposes to modify the subordinate paragraphs to better describe optics 
that are not circular in nature by replacing the requirement for 
aperture dimension in paragraph (e)(2)(i) with an individual light 
collecting area threshold. Third, the Department proposes to replace 
paragraph (e)(2)(ii) with regulatory text that describes passive optics 
to complement the active optics described in paragraph (e)(2)(i). 
Additionally, the Department proposes to add paragraph (e)(2)(iii) to 
describe X-ray optics with performance capability criteria for 
effective collecting area and angular resolution.
Focal Plane Arrays
    USML Category XV(e)(3) describes certain space-qualified focal 
plane arrays. The Department proposes to remove the parts control for 
readout integrated circuits, as integrated circuits specially designed 
for defense articles are already described in USML Category XI(c). The 
Department also proposes to replace the ``space-qualified'' criterion 
with a specially designed criterion, for the same reasons it proposes 
adjusting similar criteria for other space-qualified articles described 
in Category XV.
Optical Bench Assemblies
    The Department proposes minor modifications to USML Category 
XV(e)(6) for consistency in construction of the control text, with no 
intended change in the scope of control.
Directed Energy Systems
    The Department proposes to remove and reserve USML Category 
XV(e)(7). Kinetic energy weapon systems and directed energy weapon 
systems are already described in Categories II and XVIII, respectively, 
and each includes a catch-all control. Moreover, the order of review at 
Sec.  120.11 provides that those control paragraphs each supersede 
Category XV(e)(7) due to their SME designations. This proposed revision 
is also consistent with the Department's intent to regulate space 
systems the same way it regulates ground-based systems.
Control Moment Gyroscopes
    The Department proposes to remove certain gyroscopes, which no 
longer provide a critical military or intelligence advantage, from USML 
Category XV(e)(13) by adding additional performance criteria on the 
minimum angular momentum and torque provided by the gyroscopes.
Monolithic Microwave Integrated Circuits (MMICs)
    As described elsewhere in this rule, the Department proposes to 
remove and reserve USML Category XV(e)(14) and to modify Category 
XI(c)(4) so all MMICs are described therein, with no change to the 
scope of controls on MMICs.
Oscillators for Radar
    The Department proposes to modify USML Category XV(e)(15) by 
clarifying the scope and replacing the ``space qualified'' criterion 
with a ``specially designed'' criterion for the same reasons the 
Department proposes adjusting similar criteria for other space-
qualified articles described in Category XV. The Department further 
proposes to clarify that paragraph (e)(15) describes oscillators 
specially designed for either spacecraft described in paragraph (a) or 
payloads described in paragraph (h)(17), with no change in the scope of 
the control.
Star Trackers
    The Department proposes to modify USML Category XV(e)(16) by 
removing the ``space qualified'' requirement. The Department assesses 
that the performance requirements currently specified provide a 
critical military or intelligence advantage regardless of the 
environment in which they are used.
Primary, Secondary, or Hosted Payloads
    The Department proposes to modify USML Category XV(e)(17) for 
simplicity and consistency of construction of the control text by 
replacing the current term ``primary, secondary, or hosted payload,'' 
which describes any payload in the complete set of all payloads, with 
the term ``payload.''
Notes to USML Category XV(e)(17)
    In USML Category XV, note 1 to paragraph (e)(17) defines different 
types of payloads. The Department proposes to relocate these to Sec.  
121.0, thereby facilitating the deletion of the note, and to revise the 
definitions for clarity and consistency in construction of the control 
text. The first portion of note 2 to paragraph (e)(17) covers the 
integration of hosted payloads described in paragraph (e)(17) into 
spacecraft subject to the EAR by noting the export jurisdiction of the 
spacecraft does not change based on the hosted payload's incorporation, 
while the second portion of the note excludes certain payloads for the 
James Webb Space Telescope. The Department proposes to move the first 
portion of the note to the proposed exemption at Sec.  126.8(d). The 
Department proposes to exclude the James Webb Space Telescope from the 
USML via the definition for ``excluded NASA spacecraft'' and the text 
of USML Category XV(a). Thus, the Department proposes to delete note 2 
as well.

[[Page 84494]]

Payloads Developed with Department of Defense Funding
    The Department proposes to modify USML Category XV(e)(18) for 
consistency in construction of the control text. Additionally, the 
Department proposes to expand the control by removing the ``secondary 
or hosted'' qualifier so all payloads funded by the Department of 
Defense (DoD), and specially designed parts and components therefor, 
are described therein.

     Note to USML Category XV(e)(19): The Department proposes to 
remove the note to USML Category XV(e)(19) because the proposed 
Sec.  121.0 definitions replace the note.

Addition of USML Category XV(e)(22)
    The Department proposes to add a new paragraph at USML Category 
XV(e)(22) for technologies that facilitate the signature reduction of 
in-orbit spacecraft observations. The proposed regulatory text reflects 
the Department's intent to exclude technology used only to minimize 
light pollution, as seen from the ground.

     Notes USML Category XV(e): The Department proposes to eliminate 
note 1 to USML Category XV(e), as the jurisdiction of articles not 
described in paragraph (e) is already addressed in the order of 
review at Sec.  120.11. Note 2 to paragraph (e) delegates the 
licensing of articles described in paragraph (e) when integrated 
into a spacecraft subject to the EAR. The Department proposes a 
licensing exemption in Sec.  126.8 to codify this exemption and to 
facilitate the deletion of note 2. The Department also proposes to 
delete notes 3 and 4 to paragraph (e), as the proposed revisions to 
USML Category XV remove all but one reference to space-qualified and 
the Department assesses notes 3 and 4 are no longer required to 
identify space-qualified atomic clocks.

Technical Data and Defense Services
    The Department proposes to modify USML Category XV(f) by 
incorporating guidance currently provided in notes 1 through 3 to 
paragraph (f), which is not already included in the definition of 
technical data at Sec.  120.33 or the proposed definition of 
``spacecraft housekeeping data and output at Sec.  121.0.'' The 
Department also proposes to delete the explanatory information 
regarding defense services found in the control text, as it assesses 
such information does not provide substantial guidance beyond the order 
of review provided at Sec.  120.11 and the USML text, and similar 
redundancy is not provided in other USML Categories.
    The Department is also considering, and requests public comment on, 
whether to retain the broad exclusion for future sensor outputs in its 
proposed definition of ``spacecraft housekeeping data and output'' at 
Sec.  121.0. The Department assesses that such information may no 
longer need to be transmitted in unencrypted form due to advances in 
encryption technology size, weight, power consumption, performance 
capability, and cost and launch costs. Additionally, the Department 
updated Sec.  120.54(a)(5) in a prior rulemaking to exclude the 
sending, taking, or storing of technical data from the definition of 
``export,'' when secured using end-to-end encryption in certain 
circumstances. In considering whether and how to narrow that exclusion, 
the Department is also considering reasonable safe harbor provisions 
for systems that previously entered development, to minimize 
disruptions to existing projects.
Consideration of Prior Public Comments on USML Category XV
    As discussed earlier in this proposed rule, twenty-five parties 
filed comments requesting changes in response to 84 FR 8486 (RIN 1400-
AE73), which were reviewed and considered by the Department, in 
consultation with other U.S. Government departments and agencies. A 
summary of the comments related to USML Category XV follows:
    Seven commenting parties recommended USML Category XV be revised to 
clarify it does not describe either the Lunar Gateway or unmanned 
probes used in conjunction with the Lunar Gateway. As described in this 
rule, the Department proposes a licensing exemption in Sec.  126.8 to 
support Lunar Gateway.
    One commenting party recommended USML Category XV be revised to 
clarify it does not describe celestial landers. The Department's 
proposed spacecraft definition in Sec.  121.0 provides related 
exclusions commensurate with the Department's intent to regulate 
articles based on technology employed, not intended location of use.
    Two commenting parties recommended the itemization of NASA programs 
and their respective jurisdictions and classifications. The Department 
declines to do so, as NASA and the entities supporting NASA programs 
are responsible for their respective export compliance analyses. The 
Department further notes that programs, in and of themselves, are not 
subject to export controls; rather, the technologies involved in the 
programs are subject to export controls.
    One commenting party recommended narrowing USML Category XV(a)(2) 
controls on spacecraft that detect certain moving objects by removing 
the term ``space objects.'' The Department declines to do so and 
proposes updates to clarify and reduce the scope of this control 
consistent with U.S. national security and foreign policy equities. 
Another commenting party recommended an exception for NASA programs 
that utilize technology described in USML Category XV(a)(2). Following 
coordination with NASA, the Department proposes a list of ``excluded 
NASA spacecraft'' in Sec.  121.0 and a licensing exemption for certain 
NASA spacecraft at Sec.  126.8(a). The Department intends these tools 
to evolve as NASA programs evolve.
    One commenting party recommended the term ``constellation'' be 
deleted from USML Category XV(a)(4) to account for commercial 
communication satellites that might otherwise be described therein. The 
Department proposes modifications to clarify the scope of the control.
    Seven commenting parties recommended changes to USML Category 
XV(a)(7), including using different measurement thresholds and 
excluding non-Earth-pointing optical telescopes. The Department 
proposes a change to the ground sample distance requirement for 
paragraph (a)(7)(ii) but assesses the technology described in paragraph 
(a)(7) is fundamentally the same regardless of a spacecraft's 
orientation. As the jurisdiction of technical data and services 
generally follow the jurisdiction of the defense article they are 
directly related to, the Department thus declines to exclude non-Earth-
pointing telescopes. The Department proposes to facilitate certain 
space-related fundamental research using defense articles through 
licensing exemptions in Sec.  126.8(b) and (c), and requests public 
comment on additional ways to consider facilitating activities related 
to space-based scientific telescopes while accounting for U.S. national 
security and foreign policy equities.
    One commenting party recommended excluding space vehicles that 
incorporate USML Category XV(a)(8) technology and can land on celestial 
bodies. The Department declines to do so, consistent with its intent to 
regulate technology in space in the same manner as it regulates it on 
Earth.
    One commenting party recommended an exception for commercial 
satellites otherwise described in USML Category XV(a)(10), asserting 
that collision-avoidance technology will likely be required for all 
spacecraft once large communication constellations are in orbit. The 
Department agrees, and in response proposes to delete paragraph (a)(10) 
in its entirety.

[[Page 84495]]

    Three commenting parties recommended adding a note to USML Category 
XV(a)(11) to clarify propulsion systems for such spacecraft are 
described elsewhere in Category XV. The Department assesses this is 
unnecessary as the paragraph currently provides specific reference to 
propulsion systems described in Categories IV and XV.
    One commenting party recommended the exclusion of crewed suborbital 
vehicles used for space tourism from USML Category XV(a)(11). The 
Department notes that doing so would also exclude the technical data 
and services directly related to the vehicles, and instead proposes a 
licensing exemption in Sec.  126.8(c). This approach maintains the 
technology on the USML that provides a critical military or 
intelligence advantage, while exempting the licensing requirements for 
certain activities directly related to those technologies.
    Seven commenting parties made recommendations regarding the 
inspection, surveillance, and servicing spacecraft described in USML 
Category XV(a)(12), including deletion of the control, defining the 
term ``service,'' excluding commercial spacecraft, and expanding the 
docking systems excluded by the related note. The Department proposes 
to revise the ``inspection and surveillance'' control in paragraph 
(a)(12), remove the ``servicing'' control, move the ``docking'' control 
into a new USML Category XV(a)(14). The Department further proposes to 
clarify the intended scope of paragraph (a)(14) by removing references 
to specific docking standards and focusing on the technology of 
interest, namely the ability to grapple or dock with another spacecraft 
using certain means.
    One commenting party requested the Department resolve a perceived 
inconsistency between the notes to paragraphs (a) and (e)(17) of USML 
Category XV to make clear a spacecraft that incorporates a classified 
payload remains subject to the EAR unless the overall spacecraft is 
classified for national security purposes. Category XV(a)(13) describes 
spacecraft that ``. . . contain classified . . . hardware.'' Note 1 to 
paragraph (a) stipulates EAR spacecraft remain subject to the EAR ``. . 
. even if defense articles described on the USML are incorporated 
therein, except when such incorporation results in a spacecraft 
described in this paragraph.'' Thus, this text provides that 
incorporation of a classified payload would render any spacecraft a 
defense article. However, note 2 to paragraph (e)(17) provides that a 
hosted payload performing a function described in paragraph (a) does 
not alter the jurisdiction of the satellite it is incorporated into.
    The Department understands the perceived discrepancy but notes that 
hosted payloads that are classified do not ``perform a function'' 
described in paragraph (a). Thus, the Department assesses there is no 
conflict between the two paragraphs. As the intent of note 2 to 
paragraph (e)(17) is to facilitate hosted DoD payloads on spacecraft 
otherwise subject to the EAR, the Department proposes to modify 
paragraph (a)(13) to exclude spacecraft described solely because of the 
inclusion of a hosted payload that is classified by DoD for national 
security reasons.
    Three commenting parties recommended two specific changes to USML 
Category XV(b): the exclusion of superficial access to training 
simulators and that the text ``space vehicles or other vehicles'' be 
added to the note to paragraph (b). The Department declines to add the 
term ``superficial,'' as it could create ambiguity and proposes to 
delete the note to paragraph (b), as the guidance it contains is 
already addressed through the ``specially designed'' guidance at Sec.  
120.41 and the ``order of review'' guidance at Sec.  120.11.
    One commenting party requested clarification of the controls on 
optical and radar systems within the context of their use in either 
Earth-based or space-based platforms. In response, the Department 
proposes to move USML Category XV systems and equipment to paragraph 
(c) and adjust the text of paragraphs (c) and (e) to require articles 
to be for spacecraft. The Department further notes that certain radar 
and optical system controls are also located in USML Categories XI and 
XII, respectively.
    Three commenting parties recommended either removing USML Category 
XV(e)(1) or updating the technical thresholds to remove antennas used 
for commercial applications. The Department proposes changes to the 
performance parameters listed in paragraph (e)(1) and notes the 
antennas described on the USML are critical elements for spacecraft 
described in Category XV and provide a critical military or 
intelligence advantage. However, the Department requests public comment 
on any civil applications it should consider for inclusion in its 
proposed exemption at Sec.  126.8(b).
    One commenting party recommended revising USML Category XV(e)(2) to 
both avoid controlling optics based solely on aperture size and to 
exclude non-Earth observing instruments. The Department assesses 
aperture size remains an important criterion and proposes changes to 
paragraph (e)(2) to remove references to specific geometries, as some 
apertures are not circular. Additionally, the Department proposes to 
modify paragraph (a)(7), as detailed in the preamble of this rule under 
the heading ``Spacecraft with Remote Sensing Capabilities.'' Since 
paragraph (e)(2) describes articles specially designed for satellites 
described in paragraph (a), the proposed changes to paragraph (a)(7) 
are directly applicable.
    For USML Category XV(e)(5), one commenting party recommended 
providing control parameters for active vibration suppression systems, 
distinguishing between vibration suppression and image stabilization, 
and clarifying that commercial systems that subsequently become space-
qualified are not subject to the ITAR. The Department declines to 
narrow this paragraph, or to draw a distinction between vibration 
suppression and image stabilization. Also, note 3 to paragraph (e) 
notes that commercial systems that are subsequently space-qualified are 
subject to the ITAR. Separately, the Department proposes to eliminate 
the criterion that active vibration suppression systems be space-
qualified for reasons discussed elsewhere in this rule.
    Six commenting parties recommended electric propulsion, as 
described in USML Category XV(e)(11), be either removed from the USML 
or revised to include a higher thrust threshold. The Department 
proposes to adjust upward the thrust and specific impulse criteria 
(from 300 to 400 milli-Newtons, and from 1,500 to 1,900 seconds, 
respectively), and to remove the input power criterion, thereby 
removing from the USML certain systems the Department assesses no 
longer provide a critical military or intelligence advantage.
    Four commenting parties recommended removal of bi-propellant and 
monopropellant thrusters in USML Category XV(e)(12) or, at a minimum, a 
distinction between thrusters used for spacecraft and thrusters used 
for rockets. The Department declines to remove thrusters from the USML, 
as they continue to provide a critical military or intelligence 
advantage and proposes updates to the text of Categories IV and XV to 
clearly delineate between those propulsion systems for use with rockets 
and those for spacecraft.
    Four commenting parties recommended removing star trackers

[[Page 84496]]

from USML Category XV(e)(16) or, at a minimum, updating the control 
with performance parameters based on technology advancements. The 
Department declines to remove star trackers from the USML as they 
continue to provide a critical military or intelligence advantage and 
welcomes public comments substantiating a recommended change in 
performance parameters.
    One commenting party recommended removing detachable equipment 
described in USML Category XV(e)(20), asserting such technologies are 
an important element of human space exploration. The Department 
acknowledges the significance of this technology to both human space 
exploration and to sectors not related to human spaceflight. The 
Department proposes to address this concern via the combination of 
definitions, revisions, exclusions, and licensing exemptions proposed 
in this rule.
    Two commenting parties recommended adding a note to USML Category 
XV(f) to exclude from ``defense services'' the launch of a foreign 
payload for scientific or commercial research on a space launch 
vehicle, spaceplane, or spacecraft. The Department notes the national 
origin of an article is immaterial to the definition of defense 
services and that the launch provider is not best positioned to 
determine the scientific, commercial, or military nature of a foreign 
payload. However, the Department proposes two exemptions supporting 
fundamental research at Sec.  126.8(b) and (c).
    Four commenting parties recommended excluding from USML Category 
XV(f) information regarding general foreign spaceport requirements 
related to hangar size and building requirements, apron and runway 
width and length, ground support equipment, vehicle processing and 
fueling, nitrous oxide storage and loading, chemical handling and 
storage, and other basic facility-related information. The Department 
assesses the scope of the request is too broad for a discrete exclusion 
from the USML. Instead, each of these articles is best assessed through 
the order of review at Sec.  120.11 and the technical data definition 
at Sec.  120.33.
    Two commenting parties recommended excluding foreign space flight 
participant activities related to scientific or commercial research or 
foreign payload management or observation from USML Category XV(f). The 
Department assesses the underlying concern is adequately addressed 
through the order of review at Sec.  120.11 and the proposed exclusions 
for human spaceflight preparations in this rule.
    Two commenting parties recommended the exclusion of certain mission 
analyses from USML Category XV(f), such as load analyses and three-body 
trajectory planning tools. The Department assesses the order of review 
at Sec.  120.11 in combination with the regulatory text of the USML, 
addresses this comment.
    One commenting party recommended USML Category XV(f) be amended to 
remove Defense Technology Security Administration monitoring conditions 
for a foreign party's integration of an EAR-controlled satellite to a 
launch vehicle using a standard deployer or separation mechanism, where 
no U.S. person is present during the integration. The Department notes 
no such monitoring conditions exist on the USML. The referenced 
monitoring conditions, required under Public Law 105-261, are outside 
the scope of this rulemaking.
    One commenting party recommended the expansion of note 1 to USML 
Category XV(f) to exclude technical data directly related to articles 
integrated into a satellite or spacecraft instead of just satellites. 
The Department proposes to delete note 1 to paragraph (f) as described 
in this rule.
    Two commenting parties recommended excluding from the ITAR both the 
payloads brought into the cabin of a crewed space vehicle and the 
monitoring and managing of those payloads. The Department assesses the 
order of review at Sec.  120.41 adequately addresses most of the 
scenarios associated with this comment. Furthermore, the Department 
proposes to define ``spacecraft'' in Sec.  121.0 which, in its current 
proposed form, excludes ``any article designed to operate exclusively 
inside a spacecraft.'' Moreover, unless the crewed spacecraft is 
described in paragraph (a), it also would not be a defense article 
described in Category XV. As a result, the Department assesses a 
payload transported in the cabin of a crewed space vehicle would not 
likely be described on the USML as a discrete spacecraft or as a 
payload associated with the spacecraft. However, if the payload in the 
cabin were otherwise described on the USML, it would remain a defense 
article.
    One commenting party recommended expanding note 3 to paragraph (f) 
of USML Category XV to clarify satellite imagery is neither subject to 
the ITAR or EAR when the data is collected from a NOAA-licensed Earth 
imaging satellite. The Department declines to do so and assesses the 
order of review at Sec.  120.11 and technical data definition at Sec.  
120.33, in combination with the regulatory text of the USML, address 
this comment.
    Six commenting parties recommended detailed definitions for space 
launch vehicles, rockets, and missiles, as well as a distinction 
between space vehicles and space launch vehicles. The Department has 
proposed a detailed definition of spacecraft. However, the Department 
declines to define rockets, space launch vehicles, and missiles within 
the ITAR, and notes that common dictionary definitions of these terms 
exist.
    Four commenting parties recommended a note be added to Categories 
IV and XV to clarify crewed space vehicles are not subject to MT 
control. The Department declines to do so. Any crewed spacecraft on the 
USML would likely be described in paragraph (a) of USML Category XV; 
however, none of the subordinate paragraphs of (a) are designated as MT 
or proposed for designation as MT by this rule. As such, the Department 
assesses adding an exclusionary note is unnecessary.
    One commenting party recommended excluding crewed or crew-tended 
systems from USML Category XV. While certain crewed platforms are 
excluded within the regulation and the proposals in this rule, the 
Department assesses the presence of crew members, by itself, is not a 
useful criterion for determining whether a spacecraft warrants 
designation as a defense article as provided at Sec.  120.3.
    One commenting party recommended excluding defense articles and 
defense services described by USML Category XV but fabricated only for 
fundamental research purposes. The Department notes an exclusion for 
fundamental research is currently provided in Sec.  120.34(a)(8). 
However, that exclusion from the technical data definition is limited 
to certain basic and applied research conducted at specific 
institutions in the United States. Extending those provisions to the 
design and development of a defense article would be incompatible with 
both the current exclusion and the definition of defense service at 
Sec.  120.32. However, the Department proposes to exempt certain 
suborbital and on-orbit research in Sec.  126.8, and requests public 
comment on the perceived risks and benefits of doing so.
    One commenting party recommended an exemption allowing DDTC 
registered persons to ship defense articles from the United States to 
international waters. The Department notes this is an export under the 
ITAR, and a broad exemption of this nature would present a 
proliferation risk. The Department asks for public comment on any 
specific,

[[Page 84497]]

narrowly-tailored scenarios for the Department to consider creating an 
exemption for, that would provide significant benefit to the U.S. space 
industry.
    One commenting party recommended an exemption for the transfer of 
technical data and defense services that occur outside the atmosphere. 
The Department declines to do so, as a broad exemption of this nature 
would present a proliferation risk.
    Two commenting parties recommended some or all technology and 
information related to commercial satellite servicing be removed from 
the USML. The Department declines to do so and assesses the order of 
review at Sec.  120.11 and technical data definition at Sec.  120.33, 
in combination with the regulatory text of the USML, address this 
comment.
    One commenting party asserted industry did not see a cost benefit 
to prior export control reforms and future rulemaking efforts should 
minimize overlapping authorizations for a given program. The Department 
welcomes specific recommendations to address this perception, and notes 
multiple agencies have jurisdiction over separate aspects of space 
programs, given their mandates and delegated authorities.
    Two commenting parties recommended changes to the MTCR and MT 
designations within the USML. Specifically, they recommended updating 
the MTCR annex, removing ``specially designed'' and other non-technical 
modifiers from MT descriptions and adding specific references to the 
MTCR annex. The Department declines to do so and notes the USML is not 
determinative in identifying whether a specific article is subject to 
the MTCR, and that a version of the MTCR Annex was previously removed 
from the ITAR. MT designation on the USML support the U.S. 
implementation of its commitments under the MTCR.
    Two commenting parties recommended the definition of ``export'' at 
Sec.  120.50 be revised to exclude encrypted data. The Department 
previously addressed this issue through Sec.  120.54(a)(5), which 
excludes the sending, taking, or storing of technical data from the 
definition of ``export'' at Sec.  120.50 when secured using end-to-end 
encryption in certain circumstances. ``End-to-end encryption'' is 
defined at Sec.  120.54(b)(1), and further information on this topic 
can be found throughout Sec.  120.54, which should be consulted to 
prevent unauthorized exports of technical data.

Part 126 Licensing Exemptions

    The Department proposes to exempt certain articles that continue to 
warrant description on the USML from ITAR licensing requirements in 
certain circumstances. The Department outlines these exemptions in the 
proposed additions to part 126. The proposed changes, while intended to 
be self-explanatory, were discussed in detail at the beginning of this 
rule. The Department requests comment on whether the provisions are 
clear or whether they might benefit from further explanation. The 
practical effect of these proposed changes will be their continued 
regulation as defense articles, along with directly related technical 
data and defense services, while allowing for increased coordination 
and collaboration without a license for certain pre-approved 
activities.

Updating of Licenses and Agreements

    As part of the Department's USML modernization efforts, the USML 
classification for some defense articles is changing, which will 
eventually require exporters to update their records to reflect the new 
classification. Consistent with prior revisions of USML categories, 
additional guidance that address specific licensing scenarios will be 
provided on DDTC's website.

Request for Comments

Comments Requested

    Consistent with its ongoing USML review process, the Department is 
requesting public comments on the revisions described in this 
rulemaking. In particular, the Department is requesting comment on ways 
to streamline the descriptions and criteria on the USML for these 
items, so that it may continue to protect U.S. national security and 
foreign policy interests while benefitting U.S. industry and 
international partners. Describing items more precisely could lower 
administrative burdens and regulatory compliance costs and present an 
opportunity for increased exports, thus bolstering the U.S. commercial 
sector and industrial base.
    The Department encourages the public to provide comments directly 
related to this proposed rule and responsive to the questions 
presented. To facilitate timely review and assessment, comments should 
be provided in a concise sentence or paragraph, followed by supporting 
explanatory paragraphs and examples, with each distinct comment treated 
separately (as opposed to multiple comments in one paragraph or 
section). In addition to questions presented elsewhere in the preamble, 
the Department requests comments focused on the following questions:
    1. Are there articles, services, or technical data closely related 
to these revisions that warrant ITAR control, but are currently either 
not described on the USML, or not described with sufficient clarity? If 
so, please provide examples and a concise explanation.
    2. Is the technology required to refuel a space launch vehicle in 
orbit distinguishable from the technology required to refuel a 
spacecraft? If so, what characteristics, functions, or performance 
criteria may differentiate the two technologies?
    3. Are there specific articles, services, or technical data 
described on the USML following these revisions that are also described 
by another existing paragraph on the USML? If so, please identify the 
relevant paragraph(s), and provide a concise explanation.
    4. Are there specific articles, services, or technical data 
described on the USML following these revisions that are, or have 
previously been, in normal commercial use, that were previously 
transitioned to another agency's jurisdiction, or that were previously 
determined not to be subject to the ITAR via a Commodity Jurisdiction 
determination? If so, please include supporting documentation.
    5. Are there specific articles, services, or technical data 
described on the USML following these revisions for which civil use is 
proposed, intended, or anticipated in the next five years? Please 
include supporting documentation and a point of contact familiar with 
the details.
    6. Are there specific functions, performance levels, or 
characteristics related to these revisions that could better:
    a. Distinguish between the articles that do, and do not, warrant 
ITAR control; or
    b. Delineate the criteria for control, in lieu of using the defined 
term `specially designed?'
    7. Are these revisions unclear in any way, or can they be more 
concisely stated? For example, please identify any:
    a. Terms that you find ambiguous in definition or context; or
    b. Constructions or regulatory text that varies from existing USML 
paragraphs.
    8. Are there other technical issues directly related to these 
paragraphs which you believe the Department should address in future 
rulemaking?
    9. What technical parameters should the Department consider for 
differentiating between star trackers for

[[Page 84498]]

civil use and star trackers that provide a critical military or 
intelligence advantage?
    10. Is there a critical technological difference between thermal 
protection systems designed for entry of Earth's atmosphere as opposed 
to entry of another planet's atmosphere?
    11. What benefits, drawbacks, and other considerations should the 
Department take into account in considering whether and how to 
consolidate the two thermal protection system paragraphs in Categories 
IV and XV into one paragraph in USML Category XIII?
    12. Are there civil spacecraft that would be described by the newly 
proposed Category XV(a)(16)? If so, are there technical criteria that 
may differentiate them from spacecraft the Department intends to 
describe, that rapidly deploy multiple spacecraft into multiple 
different orbits?
    13. Are there any specific examples in which including ``air-
dropped'' in the proposed ``bomb'' definition appears to release a 
military munition from the USML?
    14. How could the proposed definition of range for USML Category IV 
be adjusted to apply more broadly across the USML while remaining scope 
neutral for Category IV?
    15. What other means should the Department consider to 
differentiates surveillance spacecraft from space situational 
awareness, cooperative docking, and orbital debris mitigation 
spacecraft?
    16. Is there potential overlap between the proposed seeker systems 
control in Category IV and other USML control paragraphs, such as USML 
Category IV(e)(1)(ii) or XII(a)(6), (c)(3) or (4), or (d).
    17. Are additional performance requirements (e.g., delta-v or 
propellant volume) needed in the regulatory text for Category XV(a)(16) 
to avoid controlling commercial satellites that don't provide a 
critical military or intelligence advantage?

Comment Submission Instructions

    Include the Regulatory Information Number (RIN) (1400-AE73) or 
agency name and docket number for all submissions related to this 
proposed rule. Submission of comments to www.regulations.gov is 
preferred. Commenters are cautioned not to include proprietary, export-
controlled, or other sensitive information that they are not 
comfortable making public in their comments. If such information would 
provide useful insight to the comment, (1) assemble that information in 
a separate document with proprietary markings; (2) include 
``Proprietary supplement on file with: [provide POC]'' as the first 
line in the body of the email submission; (3) submit the public portion 
of the comment via email; and (4) call DDTC at (202) 663-1282 to 
coordinate submission of the proprietary supplement.

Regulatory Analysis and Notices

Administrative Procedure Act

    This rulemaking is exempt from the rulemaking requirements of 
section 553 of the Administrative Procedure Act (APA) pursuant to 
section 553(a)(1) as a military or foreign affairs function of the 
United States. Nevertheless, and without prejudice to this 
determination, the Department has elected to seek public comment on 
this proposed rule.

Regulatory Flexibility Act

    Since this proposed rule is exempt from the notice-and-comment 
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 rulemaking 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.

Executive Orders 12372 and 13132

    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, 13563, and 14094

    Executive Orders 12866, as amended by Executive Orders 13563 and 
14094, 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). Executive Order 13563 emphasizes the importance 
of quantifying both costs and benefits, of reducing costs, of 
harmonizing rules, and of promoting flexibility. The Department 
specifically welcomes public comment on the impact, including costs and 
benefits, of this proposed rule. After review by the Office of 
Management and Budget (OMB), this proposed rule has been deemed a 
significant regulatory action.

Executive Order 12988

    The Department of State has 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 has 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, the requirements of Executive Order 13175 do 
not apply to this rulemaking.

Paperwork Reduction Act

    This rulemaking does not impose or revise any information 
collections subject to 44 U.S.C. chapter 35.

List of Subjects in 22 CFR Parts 120, 121, and 126

    Arms and munitions, Classified information, Exports.

    Accordingly, for the reasons set forth above and under the 
authority of 22 U.S.C. 2778, the Department of State proposes to amend 
title 22, chapter I, subchapter M, parts 120, 121, and 126 as follows:

PART 120--PURPOSE AND DEFINITIONS

0
1. The authority citation for part 120 continues to read as follows:

    Authority:  22 U.S.C. 2651a, 2752, 2753, 2776, 2778, 2779, 
2779a, 2785, 2794, 2797; E.O. 13637, 78 FR 16129, 3 CFR, 2013 Comp., 
p. 223.

0
2. Amend Sec.  120.33 by revising paragraph (b) to read as follows:


Sec.  120.33  Technical data.

* * * * *
    (b) The definition in paragraph (a) of this section does not 
include information concerning general scientific, mathematical, or 
engineering principles commonly taught in schools, colleges, and 
universities, or information in the public domain as defined in Sec.  
120.34 or spacecraft housekeeping data and output as defined in Sec.  
121.1 of this subchapter. It also does not include basic marketing 
information on function or purpose or

[[Page 84499]]

general system descriptions of defense articles.

PART 121--THE UNITED STATES MUNITIONS LIST

0
3. The authority citation for part 121 continues to read as follows:

    Authority:  22 U.S.C. 2752, 2778, 2797; 22 U.S.C. 2651a; Sec. 
1514, Pub. L. 105-261, 112 Stat. 2175; E.O. 13637, 78 FR 16129, 3 
CFR, 2013 Comp., p. 223.

0
4. Revise Sec.  121.0 to read as follows:


Sec.  121.0  United States Munitions List descriptions and definitions.

    For a description of the U.S. Munitions List (USML) and its 
designations, including the use of asterisks and the parenthetical 
``(MT)'', see Sec.  120.10 of this subchapter. As used in this part:
    Amateur rocket means an unmanned rocket that:
    (1) Is made of paper, wood, fiberglass, or plastic, and does not 
contain any substantial metal parts;
    (2) Does not carry a payload designed to be flammable, explosive, 
or harmful to humans or property;
    (3) Is propelled by one or more motors having a combined total 
impulse of 40,960 Newton-seconds or less;
    (4) Has a capacity for no more than five (5) pounds of propellant;
    (5) Has no active controls; and
    (6) Cannot reach an altitude greater than 150 km above Earth's 
surface.
    Amateur rocket motor means a rocket motor or engine containing no 
more than 5 pounds of propellant, that is certified for U.S. consumer 
use as described in National Fire Protection Association Code 1125.
    Bomb means an air-dropped munition, guided or unguided, without 
propulsion.
    CCL. See Commerce Control List in 15 CFR part 772.
    Commerce Control List. See 15 CFR part 772.
    Department of Defense means U.S. Department of Defense.
    DoD. See Department of Defense.
    EAR. See Export Administration Regulations at 15 CFR parts 730 
through 774.
    ECCN. See Export Control Classification Number in 15 CFR part 772.
    Excluded NASA spacecraft means:
    (1) The International Space Station (ISS); and specially designed 
(as defined in the EAR) parts and components therefor; and
    (2) The James Webb Space Telescope (JWST).
    Export Administration Regulations means 15 CFR parts 730 through 
774.
    Export Control Classification Number. See 15 CFR part 772.
    Ground sample distance means a calibrated measurement of spatial 
resolution for ground imagery taken from the periapsis of an orbit and 
recorded as the ground distance between the center points of adjacent 
pixels.
    GSD. See Ground sample distance.
    Hosted payload means equipment that uses excess spacecraft 
capacity, to accommodate an independent mission of opportunity but that 
neither operates as an independent spacecraft nor dictates the 
operation or jurisdiction of the host spacecraft.
    Human spaceflight preparations means activities and information 
directly related to, or required for:
    (1) Spacecraft access, ingress, and egress, including the operation 
of all spacecraft doors, hatches, and airlocks;
    (2) Physiological training (e.g., human-rated centrifuge training 
or parabolic flights, pressure suit or spacesuit training/operation);
    (3) Medical evaluation or assessment of the spaceflight passenger 
or participant;
    (4) Training for and operation by the passenger or participant of 
health and safety related hardware (e.g., seating, environmental 
control and life support, hygiene facilities, food preparation, 
exercise equipment, fire suppression, communications equipment, safety-
related clothing or headgear) or emergency procedures;
    (5) Viewing of the interior and exterior of the spacecraft or 
terrestrial mock-ups;
    (6) Observing spacecraft operations (e.g., pre-flight checks, 
landing, in-flight status);
    (7) Training to connect to or operate equipment used for purposes 
other than operating the spacecraft; or
    (8) Donning, wearing, or utilizing the passenger's or participant's 
flight suit, pressure suit, or spacesuit, and personal equipment.
    Loitering munition means any non-stationary platform specially 
designed for integration with non-releasable munitions and capable of 
delayed target engagement.
    Mine means stationary or floating munitions triggered by proximity, 
pressure, contact, timer, or remote control.
    Payload (in the context of USML Category IV in Sec.  121.1) means 
mass delivered to a pre-determined position and not used to maintain a 
vehicle's flight.
    Primary payload means equipment designed to accomplish the prime 
mission function of a spacecraft and may operate independently from a 
secondary payload.
    Range means:
    (1) In the context of USML Category IV in Sec.  121.1, the distance 
achievable by a vehicle as measured by the projection of its trajectory 
over the surface of the Earth, assuming a full complement of fuel, the 
International Civil Aviation Organization (ICAO) standard atmosphere, 
no wind, and no operational constraints.
    (2) In other USML contexts, is either defined locally or is not 
explicitly defined in this subchapter.
    Real-time means the time required for a system to process, analyze, 
and respond to input is at least as fast as the rate at which it can 
receive input.
    Secondary payload means equipment integrated into a spacecraft that 
may operate separately from the primary payload.
    Spacecraft means vehicles, satellites, probes, and craft designed 
to operate at least 100 km above the mean sea level of Earth, 
excluding:
    (1) Any article designed to operate exclusively inside a 
spacecraft;
    (2) Any article designed to operate exclusively in the immediate 
proximity of a spacecraft for a limited time (e.g., during extra 
vehicular activities (EVAs));
    (3) Any article designed to operate exclusively under or on the 
surface of a celestial body, or within the atmosphere of a celestial 
body;
    (4) Any article launched suborbitally or atmospherically from the 
surface or atmosphere of a celestial body other than Earth; and
    (5) Defense articles described in USML Category IV in Sec.  121.1.
    Spacecraft bus means the support infrastructure and interface for 
the spacecraft.
    Spacecraft housekeeping data and output means information about the 
health, operational status, or measurements or function of, or raw 
sensor output from, a spacecraft, a spacecraft payload, or its 
associated subsystems or components. Examples of such information 
include:
    (1) System, hardware, component configuration, and operation status 
information pertaining to temperatures, pressures, power, currents, 
voltages, and battery charges;
    (2) Spacecraft or payload orientation or position information, such 
as state vector or ephemeris information;
    (3) Payload raw mission or science output, such as images, spectra, 
particle measurements, or field measurements;
    (4) Command responses;
    (5) Timing information; and
    (6) Link budget data.

[[Page 84500]]

    Spacecraft payload means equipment attached to the spacecraft bus 
that performs a particular mission in space (e.g., communications, 
observation, science).
    Spectral bandwidth means the smallest difference in wavelength 
(i.e., [Delta][lambda]) that can be distinguished at full width and 
half maximum (FWHM) of wavelength [lambda].
0
5. Amend Sec.  121.1 as follows:
0
a. Revise Category IV.
0
b. In Category VI, revise paragraphs (f)(6) and (7).
0
c. In Category VII:
0
i. Revise paragraphs (g)(2) and (13) and (g)(14)(iii); and
0
ii. Add paragraph (g)(15).
0
d. In Category VIII, revise paragraph (h)(6).
0
e. In Category XI, revise paragraphs (c)(4) and (15).
0
f. In Category XIII, revise paragraph (j).
0
g. Revise Category XV.
0
h. In Category XX, revise paragraph (c).
    The revisions and addition read as follows:


Sec.  121.1   The United States Munitions List.

* * * * *
Category IV--Launch Vehicles, Rocket Systems, and Other Weapons (e.g., 
Bombs, Torpedoes, and Mines)
    * (a) Rockets, space launch vehicles (SLVs), missiles, bombs, 
torpedoes, depth charges, mines, and grenades, as follows:
    (1) Rockets, SLVs, and missiles, capable of delivering a payload of 
at least 500 kg to a range of at least 300 km (MT);
    (2) Rockets, SLVs, and missiles, capable of delivering a payload of 
less than 500 kg to a range of at least 300 km (MT);
    (3) Missiles and rockets for man-portable air defense systems 
(MANPADS);
    (4) Missiles and rockets for anti-armor systems;
    (5) Rockets, SLVs, and missiles, not otherwise described in 
paragraphs (a)(1) through (4) of USML Category IV, excluding amateur 
rockets;
    (6) Bombs;
    (7) Torpedoes;
    (8) Depth charges;
    (9) Land mines (e.g., terrain shaping obstacles (TSOs) and area 
denial devices (ADDs));
    (10) Anti-aircraft mines;
    (11) Naval mines;
    (12) Hand grenades that are designed to be lethal or destructive 
(e.g., fragmentation, concussive, incendiary, chemical, or biological);
    (13) Loitering munitions not otherwise described in paragraphs 
(a)(1) through (5) of USML Category IV;
    (14) Kinetic kill vehicles; and specially designed parts and 
components therefor;
    (15) Post-boost vehicles (PBV), including ballistic missile 
equipment sections (MT);
    (16) Hypersonic glide vehicles; and specially designed parts and 
components therefor (MT); and
    (17) Unmanned atmospheric re-entry vehicles not otherwise described 
in USML Category IV or XV; and specially designed parts and components 
therefor (MT);
    * (b) Launch systems and equipment, as follows:
    (1) Systems and equipment for launching articles described in 
paragraph (a)(1) or (2) of USML Category IV (MT) and specially designed 
parts and components therefor; and
    (2) Systems and equipment for launching articles described within 
paragraphs (a)(3) through (14) or (a)(16) and (17) of USML Category IV 
and specially designed parts and components therefor.

    Note 1 to paragraph (b):  For accessories, attachments, and 
associated equipment, including production, testing, and inspection 
equipment and tooling, related to articles described in this 
paragraph (b) that are specially designed for articles described in 
paragraph (a) of USML Category XX, see paragraph (c) of USML 
Category XX.

    (c) Apparatus and devices specially designed for the handling, 
control, activation, monitoring, detection, protection, discharge, or 
detonation of the articles enumerated in paragraphs (a) and (b) of USML 
Category IV (MT for those systems enumerated in paragraphs (a)(1) and 
(2) and (b)(1) of USML Category IV).

    Note 1 to paragraph (c):  This paragraph (c) includes 
specialized handling equipment (transporters, cranes, and lifts) 
specially designed to handle articles enumerated in paragraphs (a) 
and (b) of USML Category IV for preparation and launch from fixed 
and mobile sites. The equipment in this paragraph also includes 
specially designed robots, robot controllers, and robot end-
effectors, and liquid propellant tanks specially designed for the 
on-launch site storage or handling of the propellants controlled in 
USML Category V, CCL ECCNs 1C011, 1C111, and 1C608, or other liquid 
propellants used in the systems enumerated in paragraph (a)(1), (2), 
or (5) of USML Category IV. This paragraph (c) does not describe 
liquid propellant tanks designed solely for commercial 
transportation and storage.

    * (d) Propulsion systems not otherwise described in USML Category 
XV or XIX, as follows:
    (1) Individual rocket stages for the articles enumerated in 
paragraph (a)(1), (2), or (5) of USML Category IV except as described 
in paragraph (d)(2) or (3) of USML Category IV (MT if usable in 
articles described in paragraph (a)(1) or (2) of USML Category IV);
    (2) Rocket motors and engines having a total impulse capacity equal 
to or greater than 1.1 x 10\6\ N[middot]s (MT);
    (3) Rocket motors and engines having a total impulse capacity equal 
to or greater than 8.41 x 10\5\ N[middot]s, but less than 1.1 x 10\6\ 
N[middot]s (MT);
    (4) Combined cycle, pulsejet, ramjet, or scramjet engines (MT);
    (5) Air-breathing engines that operate above Mach 4 not described 
in paragraph (d)(4) of USML Category IV (MT);
    (6) Propulsion systems based on pressure gain combustion or 
detonation and not otherwise described in paragraph (d)(4) or (5) of 
USML Category IV (MT); and
    (7) Rocket, SLV, and missile motors and engines not otherwise 
described in paragraphs (d)(1) through (6) of USML Category IV, except 
for amateur rocket motors.
    (e) Systems and equipment for articles described in paragraph (a) 
of USML Category IV, as follows:
    (1) Control and guidance systems and equipment as follows:
    (i) Flight control systems (e.g., fly-by-wire, fly-by-light, 
pneumatic, hydraulic, electromechanical, mechanical, or electro-
optical) specially designed for articles described in paragraph (a) of 
USML Category IV (MT if usable in articles described in paragraph 
(a)(1) or (2) of USML Category IV);
    (ii) Guidance systems specially designed for articles described in 
paragraph (a) of USML Category IV (MT if usable in articles described 
in paragraph (a)(1) or (2) of USML Category IV); and
    (iii) Attitude control equipment specially designed for articles 
described in paragraph (a)(1) of USML Category IV (MT);
    (2) Thrust vector control systems not otherwise described in 
paragraph (d) of USML Category XV (MT if usable in articles described 
in paragraph (a)(1) of USML Category IV);
    (3) Thermal protection systems (e.g., heat shields) usable for 
warheads or in articles described within paragraphs (a)(14) through 
(17) of USML Category IV (MT); and specially designed parts and 
components therefor (MT);
    (4) Self-destruct systems specially designed for articles described 
in paragraph (a) of USML Category IV (MT if usable in articles 
described in paragraph (a)(1) or (2) of USML Category IV);
    (5) Separation systems, staging mechanisms, and interstages; and

[[Page 84501]]

specially designed parts and components therefor (MT if usable in 
articles described in paragraph (a)(1) of USML Category IV);
    (6) Safing, arming, fuzing, and firing (SAFF) systems and equipment 
(to include target detection and proximity sensing devices) for 
articles described in paragraph (a)(1), (2), (3), (4), or (5) or (g) of 
USML Category IV; and specially designed parts and components therefor 
(MT if usable in articles described in paragraph (a)(1) of USML 
Category IV); and
    (7) Seeker systems specially designed for articles described in 
paragraph (a) of USML Category IV (MT for articles described in 
paragraph (a)(1) or (2) of USML Category IV).
    (f) Test equipment specially designed for articles described in 
paragraph (a)(1) or (2) or (e)(7) of USML Category IV.
    * (g) Non-nuclear warheads (e.g., explosive, kinetic, 
electromagnetic pulse, thermobaric, shaped charge, fuel air explosive, 
chemical, or biological).
    (h) Parts, components, accessories, and attachments for articles 
described in USML Category IV, as follows:
    (1)-(4) [Reserved]
    (5) Grip stocks for MANPADS; and specially designed parts and 
components therefor;
    (6) Nozzles or nozzle throats; and specially designed parts and 
components therefor (MT if usable in articles described in paragraph 
(a)(1) or (2) of USML Category IV);
    (7) Nose tips, nose fairings, or aerospikes; and specially designed 
parts, and components therefor (MT if usable in articles described in 
paragraph (a)(1) or (2) of USML Category IV);
    (8)-(12) [Reserved]
    (13) Engine or motor mounts specially designed for articles 
described in paragraph (a) or (b) of USML Category IV (MT if usable 
with articles described in paragraph (a)(1) or (2) or (b)(1) of USML 
Category IV);
    (14) Combustion chambers; and specially designed parts and 
components therefor (MT if usable in articles described in paragraph 
(a)(1) or (2) or (b)(1) of USML Category IV, or for any articles 
described in paragraphs (d)(1) through (5) of USML Category IV);
    (15) Injector assemblies (MT if usable in articles described in 
paragraph (a)(1) of USML Category IV);
    (16) Igniters;
    (17) [Reserved]
    (18) Parts and components not elsewhere specified, as follows:
    (i) Parts and components specially designed both for articles 
described in paragraph (e) of USML Category IV and for underwater 
launch;
    (ii) Non-electronic parts and components, specially designed both 
for systems described in paragraph (e) of USML Category IV and for 
hostile nuclear radiation environments; and
    (iii) Parts and components specially designed for articles 
described in paragraph (g) of USML Category IV;
    * (19) Penetration aids (e.g., physical or electronic 
countermeasure suites, atmospheric re-entry vehicle replicas or decoys, 
or submunitions); and specially designed parts and components therefor;
    (20) Motor cases; and specially designed parts and components 
therefor (e.g., flanges, flange seals, end domes) (MT if usable in 
articles described in paragraph (a)(1) or (2) of USML Category IV or if 
specially designed parts and components for use in hybrid rocket motors 
described in paragraph (d)(2) or (3) of USML Category IV);
    (21) Liners and insulation for solid rocket motors (MT if liners 
for use in articles described in paragraph (a)(1) of USML Category IV, 
if liners specially designed for use in articles described in paragraph 
(a)(2) of USML Category IV; or if insulation for use in articles 
described in paragraph (a)(1) or (2) of USML Category IV);
    (22) Radomes, sensor windows, antenna windows, and embedded 
antennae, specially designed for articles described in paragraph (a) of 
USML Category IV (MT if for radomes used in systems described in 
paragraph (a)(1) of USML Category IV or if for any radomes, sensor 
windows, or antenna windows manufactured as composite structures or 
laminates specially designed for use in articles described in paragraph 
(a)(1), (2), (16), or (17), (d)(1), or (e)(3) or (6) of USML Category 
IV);
    (23) Payload fairings;
    (24) Launch canisters (MT if usable with articles described in 
paragraph (a)(1) or (2) of USML Category IV);
    (25) Fuzes specially designed for articles enumerated in paragraph 
(a) of USML Category IV and not otherwise described in paragraph (e)(6) 
of USML Category IV;
    (26) Liquid or gel propellant tanks (MT if usable in systems 
described in paragraph (a)(1) of USML Category IV);
    (27) Altimeters specially designed for articles described in 
paragraph (a)(1) of USML Category IV (MT);
    (28) [Reserved]
    (29) Electrical connectors specially designed for articles 
described in paragraph (a)(1) or (2) of USML Category IV, as follows 
(MT):
    (i) Umbilical and interstage electrical connectors;
    (ii) Electrical connectors between articles described in paragraph 
(a)(1) or (2) of USML Category IV and their payloads; and
    (iii) Electrical connectors specially designed for hostile nuclear 
radiation environments;
    (30) Any part, component, accessory, attachment, equipment, or 
system that (MT for those articles designated as such):
    (i) Is classified;
    (ii) Contains classified software directly related to defense 
articles in this subchapter or 600 series items subject to the EAR; or
    (iii) Is being developed using classified information; and
    (31) Turbo pumps specially designed for articles described in 
paragraph (d) of USML Category IV.
    (i) Technical data (see Sec.  120.33 of this subchapter) and 
defense services (see Sec.  120.32 of this subchapter) directly related 
to the defense articles described in paragraphs (a) through (h) of USML 
Category IV and classified technical data directly related to items 
controlled in ECCN 0A604, 0B604, 0D604, 9A604, 9B604, or 9D604 and 
defense services using the classified technical data. Defense services 
include the furnishing of assistance (including training) to a foreign 
person in the integration of a satellite or spacecraft to a launch 
vehicle, including both planning and onsite support, regardless of the 
jurisdiction, ownership, or origin of the satellite or spacecraft, or 
whether technical data is used. It also includes the furnishing of 
assistance (including training) to a foreign person in the launch 
failure analysis of a launch vehicle, regardless of the jurisdiction, 
ownership, or origin of the launch vehicle, or whether technical data 
is used. (See Sec.  125.4 of this subchapter for license exemptions 
specifically related to this paragraph (i), and Sec.  124.15 of this 
subchapter for special export controls for spacecraft and spacecraft 
launches.) (MT if directly related to articles designated as such.)
    (j)-(w) [Reserved]
    (x) Commodities, software, and technical data subject to the EAR 
used in or with defense articles.

    Note 1 to paragraph (x):  Use of this paragraph (x) is limited 
to license applications for defense articles where the purchase 
documentation includes commodities, software, or technical data 
subject to the EAR (see Sec.  123.1(b) of this subchapter).

* * * * *
Category VI--Surface Vessels of War and Special Naval Equipment
* * * * *
    (f) * * *
    (6) Parts, components, accessories, attachments, and equipment 
specially designed for:

[[Page 84502]]

    (i) The integration of articles described in USML Category II, IV, 
or XVIII (MT if specially designed for rockets, space launch vehicles, 
or missiles capable of achieving a range greater than or equal to 300 
km);
    (ii) Catapults for launching aircraft (MT for catapults designed or 
modified for unmanned aerial vehicle systems capable of a range greater 
than or equal to 300 km); or
    (iii) Arresting gear for recovering aircraft (MT for arresting gear 
designed or modified for unmanned aerial vehicle systems capable of a 
range greater than or equal to 300 km);
    (7) Shipborne active protection systems (i.e., defensive systems 
that actively detect and track incoming threats and launch a ballistic, 
explosive, energy, or electromagnetic countermeasure(s) to neutralize 
the threat prior to contact with a vessel); and specially designed 
parts and components therefor, not otherwise described on the USML;
* * * * *
Category VII--Ground Vehicles
* * * * *
    (g) * * *
    (2) Active protection systems (i.e., defensive systems that 
actively detect and track incoming threats and launch a ballistic, 
explosive, energy, or electromagnetic countermeasure(s) to neutralize 
the threat prior to contact with a vehicle); and specially designed 
parts and components therefor, not otherwise described on the USML;
* * * * *
    (13) Test or calibration equipment for the mission systems of the 
vehicles in USML Category VII, except those enumerated elsewhere on the 
USML;
    * (14) * * *
    (iii) Is being developed using classified information; or
    (15) Parts, components, accessories, attachments, and equipment 
specially designed for the integration of articles described in USML 
Category IV with vehicles (MT if specially designed for rockets, space 
launch vehicles, unmanned aerial vehicle systems, or missiles capable 
of achieving a range greater than or equal to 300 km).
* * * * *
Category VIII--Aircraft and Related Articles
* * * * *
    (h) * * *
    (6) Parts, components, accessories, attachments, and equipment 
specially designed for the integration of articles described in USML 
Category IV with aircraft (e.g., bomb racks, weapon pylons, pylon-to-
launcher adapters, external stores support systems for ordnance or 
weapons); and specially designed parts and components therefor (MT if 
usable in an aircraft or missile that has a range equal to or greater 
than 300 km);
* * * * *
Category XI--Military Electronics
* * * * *
    (c) * * *
    (4) Transmit/receive modules, transmit/receive monolithic microwave 
integrated circuits (MMICs), transmit modules, and transmit MMICs 
meeting any of the following:
    (i) Articles having all of the following:
    (A) A peak saturated power output (in watts), Psat, 
greater than 505.62 divided by the maximum operating frequency (in GHz) 
squared [Psat > 505.62 W * GHz\2\/fGHz\2\] for any channel;
    (B) A fractional bandwidth of 5% or greater for any channel;
    (C) Any planar side with length d (in cm) equal to or less than 15 
divided by the lowest operating frequency in GHz [d <= 15cm * GHz/
fGHz]; and
    (D) At least one electronically variable phase shifter per channel; 
or
    (ii) MMICs that combine transmit and receive (T/R) functions on a 
single die, specially designed for spacecraft, having either of the 
following:
    (A) A power amplifier with maximum saturated peak output power (in 
watts), Psat, greater than 200 divided by the maximum 
operating frequency (in GHz) squared [Psat > 200 W * GHz\2\/
fGHz\2\]; or
    (B) A common path (e.g., phase shifter-digital attenuator) circuit 
with greater than 3 bits phase shifting at operating frequencies 10 GHz 
or below, or greater than 4 bits phase shifting at operating 
frequencies above 10 GHz;

    Note 1 to paragraph (c)(4):  A MMIC: (a) Is formed by means of 
diffusion processes, implantation processes, or deposition processes 
in or on a single semiconducting piece of material; (b) can be 
considered as indivisibly associated; (c) performs the function(s) 
of a circuit; and (d) operates at microwave frequencies (i.e., 300 
MHz to 300 GHz).


    Note 2 to paragraph (c)(4):  A transmit/receive module is a 
multifunction electronic assembly that provides bi-directional 
amplitude and phase control for transmission and reception of 
signals.


    Note 3 to paragraph (c)(4):  A transmit module is an electronic 
assembly that provides amplitude and phase control for transmission 
of signals.


    Note 4 to paragraph (c)(4):  A transmit/receive MMIC is a 
multifunction MMIC that provides bi-directional amplitude and phase 
control for transmission and reception of signals.


    Note 5 to paragraph (c)(4):  A transmit MMIC is a MMIC that 
provides amplitude and phase control for transmission of signals.


    Note 6 to paragraph (c)(4):  USML Category XI(c)(4) applies to 
transmit/receive modules and to transmit modules, with or without a 
heat sink. The value of length d in USML Category XI(c)(4)(iii) does 
not include any portion of the transmit/receive module or transmit 
module that functions as a heat sink.


    Note 7 to paragraph (c)(4):  Transmit/receive modules, transmit 
modules, transmit/receive MMICs, and transmit MMICs may or may not 
have N integrated radiating antenna elements, where N is the number 
of transmit or transmit/receive channels.


    Note 8 to paragraph (c)(4):  Fractional bandwidth is the 
bandwidth over which output power remains constant within 3 dB 
(without the adjustment of other operating parameters), divided by 
the center frequency, and multiplied by 100. Fractional bandwidth is 
expressed as a percentage.

* * * * *
    (15) Electronic parts and components, capable of operation at 
temperatures in excess of 125 [deg]C and specially designed for any of 
the following: spacecraft described in USML Category XV; UAVs or drones 
described by USML Category VIII; or rocket, space launch vehicles 
(SLV), or missiles described in USML Category IV capable of achieving a 
range greater than or equal to 300 km (MT) (see note 2 to paragraph 
(a)(3)(xxix) of USML Category XI);
* * * * *
Category XIII--Materials and Miscellaneous Articles
* * * * *
    (j) Equipment, materials, coatings, and treatments not elsewhere 
specified on the USML, as follows:
    (1) Specially treated or formulated dyes, coatings, and fabrics 
used in the design, manufacture, or production of personnel protective 
clothing, equipment, or face paints designed to protect against or 
reduce detection by radar, infrared, or other sensors at wavelengths 
greater than 900 nanometers (see USML Category X(a)(2));
    * (2) Equipment, materials, coatings, and treatments that are 
specially designed to modify the electro-optical, radiofrequency, 
infrared, electric, laser, magnetic, electromagnetic, acoustic, 
electro-static, or wake signatures of defense articles or 600 series 
items subject to the EAR through control of absorption, reflection, or 
emission to reduce detectability or observability (MT for applications 
usable for rockets, SLVs, missiles, drones, or UAVs capable of 
achieving a range greater than or equal to 300 km, and their 
subsystems.

[[Page 84503]]

See note to paragraph (d) of USML Category XIII);
    (3) Materials specially designed for the underwater launch of 
articles described in paragraph (a)(1) or (2) of USML Category IV; and
    (4) Materials specially designed both for articles described in 
paragraph (a)(1) or (2) of USML Category IV and hostile radiation 
environments.
* * * * *
Category XV--Spacecraft and Related Articles
    (a) Spacecraft, other than excluded NASA spacecraft or spacecraft 
that meet this paragraph (a) entirely through a hosted payload, as 
follows:
    * (1) Spacecraft specially designed to detect, or mitigate the 
effects of (e.g., scintillation), nuclear detonations;
    * (2) Spacecraft specially designed to detect and track launch 
vehicles, missiles, kill vehicles, post-boost vehicles, re-entry 
vehicles or penetration aids;
    * (3) Spacecraft specially designed for signals intelligence 
(SIGINT) or measurement and signatures intelligence (MASINT);
    * (4) Spacecraft specially designed to operate with other 
spacecraft to function collectively as an article described elsewhere 
in paragraph (a) of USML Category XV;
    * (5) Spacecraft equipped with space-to-space weapons (e.g., 
kinetic, RF, laser, or directed energy);
    * (6) Spacecraft equipped with space-to-ground weapons;
    * (7) Spacecraft equipped with remote sensing instruments that 
utilize any of the following, assessed in the aggregate if more than 
one instrument is used for the same objective (significant military 
equipment (SME) only if Earth-pointing):
    (i) Any number of spectral bands in the visible and near infrared 
(VNIR) through infrared spectrum (i.e., wavelengths greater than 400 nm 
but less than or equal to 30,000 nm) and either a minimum cumulative 
light collecting surface area of 3,850 cm\2\ or any individual light 
collecting optic with a minimum surface area of 2,150 cm\2\;
    (ii) Forty (40) or more spectral bands in the VNIR through short-
wavelength infrared (SWIR) spectrum (i.e., wavelengths greater than 400 
nm but less than or equal to 2,500 nm) and a Ground Sample Distance 
(GSD) less than 20 m;
    (iii) Forty (40) or more spectral bands in the mid-wavelength 
infrared (MWIR) (i.e., wavelengths greater than 2,500 nm but less than 
or equal to 5,500 nm), a GSD less than 200 m and either a narrow 
spectral bandwidth less than or equal to 20 nm or a wide spectral 
bandwidth greater than 20 nm; or
    (iv) Forty (40) or more spectral bands in the long-wavelength 
infrared (LWIR) (i.e., wavelengths greater than 5,500 nm but less than 
or equal to 30,000 nm), a calibrated GSD less than 500 m, and either a 
narrow spectral bandwidth less than or equal to 50 nm or a wide 
spectral bandwidth greater than 50 nm;
    * (8) Spacecraft equipped with radar remote sensing (e.g., active 
electronically scanned array (AESA), synthetic aperture radar (SAR), 
inverse synthetic aperture radar (ISAR), and ultra-wideband SAR), 
excluding those having both a bandwidth less than or equal to 500 MHz 
and a center frequency greater than or equal to 1 GHz but less than or 
equal to 10 GHz;
    (9) Spacecraft that generate positioning, navigation, and timing 
(PNT) signals, excluding those that provide only a differential 
correction broadcast;
    (10) [Reserved]
    (11) Spacecraft limited to suborbital trajectories, specially 
designed for atmospheric re-entry, and equipped with propulsion systems 
described within either paragraph (e) of USML Category XV or paragraphs 
(d)(1) through (6) of USML Category IV;
    (12) Spacecraft specially designed either to image other spacecraft 
with an angular resolution better than (less than or equal to) 4 mrad 
or to monitor, follow, and collect signals from other spacecraft;
    * (13) Spacecraft that are classified, contain classified articles 
other than a hosted payload classified by DoD, or are either 
manufactured or developed with the use of classified information (e.g., 
requirements, specifications, functions, or operational 
characteristics);
    * (14) Spacecraft specially designed to grapple or dock with 
another spacecraft through means other than receiving mechanisms on the 
target spacecraft intended to facilitate grappling or docking;
    * (15) Spacecraft specially designed to construct, while in orbit, 
spacecraft described in paragraph (a) of USML Category XV;
    (16) Spacecraft specially designed to deploy multiple spacecraft 
larger than 3,400 cm\3\ within 72 hours into orbits separated from each 
other by at least 25 km; and
    (17) Articles that can be separated from a spacecraft and 
incorporate all of the following:
    (i) A guidance, navigation, and control (GNC) system;
    (ii) An attitude control system; and
    (iii) A system described in paragraph (d) of USML Category XV or 
within paragraphs (d)(1) through (4) of USML Category IV.

    Note 1 to paragraph (a):  When a spacecraft not otherwise 
described in this paragraph (a) incorporates is a hosted payload 
described in paragraph (e)(17) of USML Category XV, while the hosted 
payload remains subject to this subchapter, the spacecraft remains 
subject to the EAR. Spacecraft that incorporate other payloads 
described in paragraph (e)(17) are described in this paragraph (a).

    (b) Ground control systems and telemetry, tracking, and control 
(TT&C) simulators, specially designed for spacecraft described in 
paragraph (a) of USML Category XV.
    (c) Spacecraft systems and equipment, as follows:
    (1) Active cryocoolers and cold finger systems specially designed 
for spacecraft, and associated control electronics specially designed 
therefor;
    (2) Active vibration suppression systems (e.g., isolation and 
dampening systems) specially designed for spacecraft, and associated 
control electronics specially designed therefor;
    (3) Attitude determination and control systems that provide a 
spacecraft's location on a planetary coordinate system, without using 
ground location points, with an accuracy described within paragraphs 
(c)(3)(i) through (iv) of USML Category XV; and specially designed 
parts and components therefor:
    (i) Less than or equal to 5 meters (CE90) from low Earth orbit 
(LEO) or equivalent;
    (ii) Less than or equal to 30 meters (CE90) from medium Earth orbit 
(MEO) or equivalent;
    (iii) Less than or equal to 150 meters (CE90) from geosynchronous 
orbit (GEO) or equivalent; or
    (iv) Less than or equal to 225 meters (CE90) from high Earth orbit 
(HEO) or equivalent; and
    (4) Thermal protection systems (e.g., heat shields) specially 
designed for atmospheric re-entry, not otherwise described in paragraph 
(e)(3) of USML Category IV; and specially designed parts and components 
therefor (MT).
    (d) Propulsion systems and power systems for spacecraft, as 
follows; and specially designed parts and components therefor:
    (1) Nuclear reactors and associated power conversion systems (e.g., 
liquid metal or gas-cooled fast reactors);
    (2) Radioisotope-based power systems (e.g., radioisotope 
thermoelectric generators);
    (3) Nuclear thermal propulsion systems (e.g., solid core, liquid 
core, gas core fission);

[[Page 84504]]

    (4) Electric (e.g., Plasma or Ion) propulsion systems that operate 
at an input power of at least 20 kW or provide both a thrust greater 
than 400 milli-Newtons and a specific impulse greater than 1,900 sec; 
and
    (5) Non-nuclear propulsion systems that use a bi-propellant or 
mono-propellants and produce vacuum thrust greater than 667.23 N (MT if 
total impulse is equal to or greater than 8.41 x 10[supcaret]5 N s).
    (e) Spacecraft parts, components, accessories, and attachments, as 
follows:
    (1) Antennas specially designed for spacecraft, with an operating 
frequency of at least 40 GHz, and any of the following characteristics:
    (i) A projected circular aperture diameter greater than 25 meters;
    (ii) Active electronic scanning;
    (iii) Adaptive beam forming; or
    (iv) Specially designed for interferometric radar;
    (2) Optics (e.g., lens, mirror, or membrane) meeting any of the 
following:
    (i) Active (e.g., adaptive, deformable) with an individual light 
collecting area of 1,020 cm\2\ or greater;
    (ii) Passive with an individual light collecting area of 2,150 
cm\2\ or greater; or
    (iii) X-ray, not otherwise described in paragraph (e)(2)(i) or (ii) 
of USML Category XV, with a total effective collecting area greater 
than or equal to 3,000 cm\2\ and an angular resolution less than or 
equal to 30 milliarcseconds;
    (3) Focal plane arrays (FPA) specially designed for spacecraft and 
having a peak response wavelength greater than 900 nm;
    (4)-(5) [Reserved]
    (6) Optical bench assemblies specially designed for articles 
described in paragraph (a) of USML Category XV;
    (7)-(8) [Reserved]
    (9) Space-qualified cesium, rubidium, hydrogen maser, or quantum 
(e.g., based upon Al, Hg, Yb, Sr, or Be Ions) atomic clocks; and 
specially designed parts and components therefor;
    (10)-(12) [Reserved]
    (13) Control moment gyroscopes (CMG) that provide an angular 
momentum of at least 2.0 Newton meter seconds (N m sec), provide a 
torque of at least 6.0 Newton meters (N m), and are specially designed 
for spacecraft;
    (14) [Reserved]
    (15) Oscillators specially designed for articles described in 
paragraph (a) or (h)(17) of USML Category XV and with phase noise less 
than -120 dBc/Hz + (20 log10(RF) (in GHz)) measured at 2 
KHz* RF (in GHz) from carrier;
    (16) Star trackers and star sensors with angular accuracy less than 
or equal to 1 arcsec (1-Sigma) per star coordinate, and a tracking rate 
equal to or greater than 3.0 deg/sec; and specially designed parts and 
components therefor (MT);
    * (17) Payloads that perform any of the functions described within 
paragraphs (a)(1) through (17) of USML Category XV;
    * (18) Payloads, developed with Department of Defense-funding; and 
specially designed parts and components therefor;
    (19)-(20) [Reserved]
    (21) Any part, component, accessory, attachment, equipment, or 
system that:
    (i) Is classified;
    (ii) Contains classified software; or
    (iii) Is being developed using classified information; and
    (22) Any part, component, accessory, or attachment that is designed 
to modify a spacecraft's optical, radiofrequency, or infrared signature 
as observed from orbit.
    (f) Technical data, excluding spacecraft housekeeping data and 
output and human spaceflight preparations (see Sec.  120.33 of this 
subchapter and Sec.  121.0), and defense services, excluding human 
spaceflight preparations (see Sec.  120.32 of this subchapter and Sec.  
121.0), directly related to the defense articles described in 
paragraphs (a) through (e) of USML Category XV and classified technical 
data directly related to items controlled in ECCN 9A515, 9B515, or 
9D515 and defense services using the classified technical data. (MT if 
related to articles designated as such.)
    (g)-(w) [Reserved]
    (x) Commodities, software, and technology subject to the EAR used 
in or with defense articles.

    Note 1 to paragraph (x): Use of this paragraph (x) is limited to 
license applications for defense articles where the purchase 
documentation also includes commodities, software, or technology 
subject to the EAR (see Sec.  123.21(b) of this subchapter).

* * * * *
Category XX--Submersible Vessels and Related Articles
* * * * *
    (c) Parts, components, accessories, attachments, and associated 
equipment, including production, testing, and inspection equipment and 
tooling, specially designed for any of the articles in paragraphs (a) 
and (b) of USML Category XX (MT if specially designed for rockets, 
space launch vehicles, unmanned aerial vehicle systems, or missiles 
capable of achieving a range greater than or equal to 300 km).
* * * * *

PART 126--GENERAL POLICIES AND PROVISIONS

0
6. The authority citation for part 126 continues to read as follows:

    Authority: 22 U.S.C. 287c, 2651a, 2752, 2753, 2776, 2778, 2779, 
2779a, 2780, 2791, 2797, 10423; sec. 1225, Pub. L. 108-375, 118 
Stat. 2091; sec. 7045, Pub. L. 112-74, 125 Stat. 1232; sec. 1250A, 
Pub. L 116-92, 133 Stat. 1665; sec. 205, Pub. L. 116-94, 133 Stat. 
3052; and E.O. 13637, 78 FR 16129, 3 CFR, 2013 Comp., p. 223.
0
7. Add Sec.  126.8 to read as follows:


Sec.  126.8  Civil space promotion: exemptions, policies, and 
requirements.

    (a) Exemption for certain official space agency programs. No 
license or other approval is required for the export, reexport, 
retransfer, or temporary import of defense articles, or the furnishing 
of defense services, when such activity is entirely within the scope of 
an official space agency program as identified in paragraph (a)(2) of 
this section, subject to the restrictions in paragraph (a)(1) of this 
section.
    (1) Restrictions. The exemption set forth in this paragraph (a) 
does not apply:
    (i) For purposes of establishing offshore procurement arrangements 
or producing defense articles offshore (see Sec.  124.13 of this 
subchapter);
    (ii) To any of the following:
    (A) Activities whose value exceeds the amounts described in Sec.  
123.15 of this subchapter;
    (B) Activities that involve the manufacturing abroad of significant 
military equipment as described in Sec.  124.11 of this subchapter; or
    (C) For commercial communications satellites for launch from the 
Russian Federation, Ukraine, or Kazakhstan (see Sec.  123.15 of this 
subchapter); or
    (iii) Defense articles or defense services that are classified (see 
Sec.  120.38 of this subchapter).
    (2) Official space agency programs. Spacecraft within the scope of 
the following programs are eligible for the exemption in this paragraph 
(a):
    (i) NASA's Lunar Gateway;
    (ii) NASA's Mars Sample Return;
    (iii) Nancy Grace Roman Telescope; and
    (iv) The Orion spacecraft.
    (b) Exemption for certain space activities. No license or other 
approval is required for the activities identified in paragraph (b)(2) 
of this section, subject to the restrictions in paragraph (b)(1) of 
this section.
    (1) Restrictions. The exemption set forth in this paragraph (b) is 
subject to all of the following restrictions:
    (i) The end-use for paragraph (b)(2)(i) of this section must be to 
connect a

[[Page 84505]]

spacecraft, subject to the EAR to its launch vehicle; and
    (ii) For the spacecraft referenced in paragraph (b)(1)(i) of this 
section, the scheduled launch date must be within six months of when 
the activities are conducted.
    (2) Exempted activities. The following activities are eligible for 
the exemption in this paragraph (b):
    (i) The export, reexport, retransfer, or temporary import of the 
following defense articles:
    (A) Electrical connectors described in paragraph (h)(29) of USML 
Category IV in part 121 of this subchapter, other than those used in 
ballistic missiles; and directly related interface control documents;
    (B) [Reserved]
    (ii) Encrypting, decrypting, relaying, or retransmitting, to or 
from a ground station, unmodified telemetry for the health, systems 
status, position, and velocity of space launch vehicles described in 
USML Category IV in part 121 of this subchapter;
    (iii) The furnishing of assistance to a foreign person in the 
operation or use of an on-orbit defense article in support of 
fundamental research as defined at Sec.  120.34(a)(8) of this 
subchapter; and
    (iv) The furnishing of assistance to a foreign person in the 
operation or use of an on-orbit defense article to geolocate the 
following radiofrequency transmissions:
    (A) Emergency locator transmission (ELT) frequencies 121.5, 243.0, 
and 406 MHz;
    (B) Automatic identification system (AIS) frequencies 161.975 and 
162.025 MHz;
    (C) Commercial VHF maritime mobile frequencies 156 through 174 MHz; 
and
    (D) Commercial non-satellite cellular telephone communications 
specified by the global system for mobile communications (GSM), 
universal mobile telecommunications system (UMTS), long-term evolution 
(LTE), or the following International Mobile Telecommunications (IMT) 
standards: IMT-2000 (3G), IMT-Advanced (4G), or IMT-2020 (5G).
    (c) Exemption for space tourism and research. No license or other 
approval is required for the export, reexport, or temporary import of 
manned spacecraft, subject to all of the following restrictions:
    (1) The spacecraft must be limited to suborbital trajectories;
    (2) The purpose of the activity must be limited to either space 
tourism or supporting fundamental research as defined at Sec.  
120.34(a)(8) of this subchapter;
    (3) The activity must not transfer registration, control, or 
ownership of the spacecraft to a foreign person; and
    (4) The spacecraft's destinations, including planned diverts and 
contingencies, must be approved by the Federal Aviation Administration 
or its foreign equivalent, and must not include any proscribed 
destinations under Sec.  126.1 of this subchapter.
    (d) Licensing of defense articles incorporated or integrated into 
EAR spacecraft. Articles described in paragraph (c), (d), or (e) of 
USML Category XV in part 121 of this subchapter may be licensed for 
export, reexport, or retransfer by the Department of Commerce's Bureau 
of Industry and Security while they are incorporated in, and included 
as an integral part of, a spacecraft subject to the EAR. Articles do 
not become eligible for this licensing provision until incorporated 
into the spacecraft subject to the EAR. Exports, reexports, 
retransfers, or temporary imports of defense articles prior to 
incorporation, and directly related technical data and defense 
services, are not eligible for this licensing provision. Replacement 
articles, and articles subsequently unincorporated from the spacecraft, 
are not eligible for this licensing provision.

Bonnie D. Jenkins,
Under Secretary, Arms Control and International Security, Department of 
State.
[FR Doc. 2024-24091 Filed 10-17-24; 4:15 pm]
BILLING CODE 4710-25-P