[Title 15 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 1997 Edition]
[From the U.S. Government Printing Office]


          15



          Commerce and Foreign Trade



[[Page i]]

          PARTS 300 TO 799

          Revised as of January 1, 1997
          CONTAINING
          A CODIFICATION OF DOCUMENTS
          OF GENERAL APPLICABILITY
          AND FUTURE EFFECT

          AS OF JANUARY 1, 1997
          With Ancillaries
          Published by
          the Office of the Federal Register
          National Archives and Records
          Administration

          as a Special Edition of
          the Federal Register



[[Page ii]]

                                      




                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 1997



               For sale by U.S. Government Printing Office
 Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328



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                            Table of Contents



                                                                    Page
Explanation...................................................       v

Title 15:
  Subtitle B--Regulations Relating to Commerce and Foreign Trade (Continued):


      Chapter III--International Trade Administration, 
        Department of Commerce................................
      Chapter IV--Foreign-Trade Zones Board, Department of 
        Commerce..............................................
      Chapter VII--Bureau of Export Administration, Department 
        of Commerce...........................................
  Finding Aids:
    Table of CFR Titles and Chapters..........................
    Alphabetical List of Agencies Appearing in the CFR........
    Redesignation Table.......................................
    List of CFR Sections Affected.............................

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

  Cite this Code:  CFR                                                         
                                                                                                                
  To cite the regulations in this volume use title, part                       
  and section number. Thus, 15 CFR 301.1 refers to title                      
  15, part 301, section 1.                                                    
                                  ----------------------------------------------------------                    
                                                                                                                


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                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1
    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

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HOW TO USE THE CODE OF FEDERAL REGULATIONS

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    To determine whether a Code volume has been amended since its 
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Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

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Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
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instances where the effective date is beyond the cut-off date for the 
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states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

OBSOLETE PROVISIONS

    Provisions that become obsolete before the revision date stated on 
the cover of each volume are not carried. Code users may find the text 
of provisions in effect on a given date in the past by using the 
appropriate numerical list of sections affected. For the period before 
January 1, 1986, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, or 1973-1985, published in seven separate volumes. For 
the period beginning January 1, 1986, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Statutory 
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in the Federal Register (Table II). A list of CFR titles, chapters, and 
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that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-523-5227 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, Washington, DC 20408.
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                              Richard L. Claypoole,
                                    Director,
                          Office of the Federal Register.

January 1, 1997.



[[Page vii]]



                               THIS TITLE

    Title 15--Commerce and Foreign Trade is composed of three volumes. 
The parts in these volumes are arranged in the following order: parts 0-
299, 300-799, and part 800-End. The first volume containing parts 0-299 
is comprised of Subtitle A--Office of the Secretary of Commerce, chapter 
I--Bureau of the Census, Department of Commerce, and chapter II--
National Institute of Standards and Technology, Department of Commerce. 
The second volume containing parts 300-799 is comprised of chapter III--
International Trade Administration, Department of Commerce, chapter IV--
Foreign-Trade Zones Board, and chapter VII--Bureau of Export 
Administration, Department of Commerce. The third volume containing part 
800-End is comprised of chapter VIII--Bureau of Economic Analysis, 
Department of Commerce, chapter IX--National Oceanic and Atmospheric 
Administration, Department of Commerce, chapter XI--Technology 
Administration, Department of Commerce, chapter XIII--East-West Foreign 
Trade Board, chapter XIV--Minority Business Development Agency, chapter 
XX--Office of the United States Trade Representative, and chapter 
XXIII--National Telecommunications and Information Administration, 
Department of Commerce. The contents of these volumes represent all 
current regulations codified under this title of the CFR as of January 
1, 1997.

    A redesignation table appears in the Finding Aids section of the 
volume containing Parts 300-799

    For this volume, Kenneth R. Payne was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Frances D. McDonald, assisted by Alomha S. Morris.

[[Page viii]]



 
[[Page 1]]



                TITLE 15--COMMERCE AND FOREIGN TRADE




                   (This book contains parts 300-799)

  --------------------------------------------------------------------
                                                                    Part
SUBTITLE B--Regulations Relating to Commerce and Foreign Trade 
  (Continued):

Chapter iii--International Trade Administration, Department 
  of Commerce...............................................         301
Chapter iv--Foreign-Trade Zones Board, Department of 
  Commerce..................................................         400
Chapter vii--Bureau of Export Administration, Department of 
  Commerce..................................................         700

[[Page 3]]



Subtitle B--Regulations Relating to Commerce and Foreign Trade (Continued)

[[Page 5]]



CHAPTER III--INTERNATIONAL TRADE ADMINISTRATION, DEPARTMENT OF COMMERCE




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

  Editorial Note: Nomenclature changes to Chapter III appear at 51 FR 
34586, Sept. 30, 1986.

                 SUBCHAPTER A--MISCELLANEOUS REGULATIONS
Part                                                                Page
301             Instruments and apparatus for educational 
                    and scientific institutions.............
302       [Reserved]
303             Watches and watch movements.................
310             Official U.S. Government recognition of and 
                    participation in international 
                    expositions held in the United States...
315             Determination of bona fide motor-vehicle 
                    manufacturer............................
325             Export trade certificates of review.........

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                 SUBCHAPTER A--MISCELLANEOUS REGULATIONS





PART 301--INSTRUMENTS AND APPARATUS FOR EDUCATIONAL AND SCIENTIFIC INSTITUTIONS--Table of Contents




Sec.
301.1  General provisions.
301.2  Definitions.
301.3  Application for duty-free entry of scientific instruments.
301.4  Processing of applications by the Department of the Treasury 
          (U.S. Customs Service).
301.5  Processing of applications by the Department of Commerce.
301.6  Appeals.
301.7  Final disposition of an application.
301.8  Instructions for entering instruments through U.S. Customs under 
          tariff item 851.60.
301.9  Uses and disposition of instruments entered under item 851.60, 
          TSUS.
301.10  Importation of repair components under item 851.65 for article 
          previously entered under item 851.60.

    Authority: Sec. 6(c), Pub. L. 89-651, 80 Stat. 897 (19 U.S.C. 1202).

    Source: 47 FR 32517, July 28, 1982, unless otherwise noted.



Sec. 301.1  General provisions.

    (a) Purpose. This part sets forth the regulations of the Department 
of Commerce and the Department of the Treasury applicable to the duty-
free importation of scientific instruments and apparatus by public or 
private nonprofit institutions.
    (b) Background. (1) The Agreement on the importation of Educational, 
Scientific and Cultural Materials (Florence Agreement; ``the 
Agreement'') is a multinational treaty, contracted to by approximately 
89 countries, which seeks to further the cause of peace through the 
freer exchange of ideas and knowledge across national boundaries, 
primarily by eliminating tariffs on certain educational, scientific and 
cultural materials.
    (2) Annex D of the Agreement provides that scientific instruments 
and apparatus intended exclusively for educational purposes or pure 
scientific research use by qualified nonprofit institutions shall enjoy 
duty-free entry if instruments or apparatus of equivalent scientific 
value are not being manufactured in the country of importation.
    (3) Pub. L. 89-651, the Educational, Scientific, and Cultural 
Materials Importation Act of 1966 (19 U.S.C. 1202; ``the Act''), 
implements the Agreement in the United States. Section 6(c) of the Act 
gives effect to Annex D of the Agreement. This section added tariff item 
851.60 to the Tariff Schedules of the United States (TSUS) to provide 
for the duty-free importation of instruments and apparatus ``entered for 
the use of any nonprofit institution, whether public or private, 
established for educational or scientific purposes * * * if no 
instrument or apparatus of equivalent scientific value for the purposes 
for which the instrument or apparatus is intended to be used is being 
manufactured in the United States.'' Headnote 1 to Schedule 8, part 4, 
TSUS, was amended by Pub. L. 89-651 and provides for the use, 
disposition and transfer of articles and their repair components 
accorded duty-free entry under tariff items 851.60 and 851.65, 
respectively, and Headnote 6, added by Pub. L. 89-651, sets forth the 
duty-free procedures and responsibilities.
    (c) Summary of statutory procedures and requirements. (1) Headnote 1 
provides, among other things, that articles covered by tariff items 
851.60 (scientific instruments and apparatus) and 851.65 (repair 
components therefor) must be exclusively for the use of the institutions 
involved and not for distribution, sale or other commercial use within 
five years after being entered. These articles may be transferred by a 
qualified nonprofit institution to another such institution without duty 
liability being incurred. However, if such article is transferred other 
than as provided by the preceding sentence, or is used for commercial 
purposes within five years after having been entered, duty shall be 
assessed in accordance with the procedures established in Headnote 1.
    (2) Pursuant to Headnote 6 an institution desiring to enter an 
instrument or apparatus under tariff item 851.60 TSUS must file an 
application with the

[[Page 8]]

Secretary of the Treasury (U.S. Customs Service) in accordance with 
these regulations. If the application is made in accordance with the 
regulations, notice of the application is published in the Federal 
Register to provide an opportunity for interested persons and government 
agencies to present views. The application is reviewed by the Secretary 
of Commerce (Director, Statutory Import Programs Staff) whose decision 
as to whether or not duty-free entry may be accorded the instrument is 
published in the Federal Register. An appeal of the final decision may 
be filed with the United States Court of Customs and Patent Appeals, on 
questions of law only, within 20 days after publication of the decision 
in the Federal Register.
    (3) Repair components for instruments or apparatus admitted duty-
free under tariff item 851.60 require no application and may be entered 
duty-free in accordance with the procedures prescribed in Sec. 301.10.
    (d) Authority and delegations. The Act authorizes the Secretaries of 
Commerce and the Treasury to prescribe joint regulations to carry out 
their functions under Headnote 6, TSUS. The Secretary of the Treasury 
has delegated authority to the Assistant Secretary for Enforcement and 
Operations, who has retained rulemaking authority and further delegated 
administration of the regulations to the Commissioner of the U.S. 
Customs Service. The authority of the Secretary of Commerce has been 
delegated to the Deputy Assistant Secretary for Import Administration 
who has retained rulemaking authority and further delegated 
administration of the regulations to the Director of the Statutory 
Import Programs Staff.

[47 FR 32517, July 28, 1982; 47 FR 34368, Aug. 9, 1982]



Sec. 301.2  Definitions.

    For the purposes of these regulations and the forms used to 
implement them:
    (a) Director means the Director of the Statutory Import Programs 
Staff, International Trade Administration, U.S. Department of Commerce.
    (b) Customs means the U.S. Customs Service and the ``The 
Commissioner'' means Commissioner of the U.S. Customs Service, or the 
official(s) designated to act on the Commissioner's behalf.
    (c) Customs Port or the Port means the port where a particular claim 
has been or will be made for duty-free entry of a scientific instrument 
or apparatus under tariff item 851.60.
    (d) Entry means entry of an instrument into the Customs territory of 
the United States for consumption or withdrawal of an instrument from a 
Customs bonded warehouse for consumption.
    (e) United States includes only the several States, the District of 
Columbia and the Commonwealth of Puerto Rico.
    (f) Instrument means only instruments and apparatus classifiable 
under the tariff items specified in headnote 6(a) of part 4 of Schedule 
8. A combination of basic instrument or apparatus and accompanying 
accessories shall be treated as a single instrument provided that, under 
normal commercial practice, such combination is considered to be a 
single instrument and provided further that the applicant has ordered 
or, upon favorable action on its application, firmly intends to order 
the combination as a unit. Unless the context indicates otherwise, 
instrument or apparatus shall mean a foreign ``instrument or apparatus'' 
for which duty-free entry is sought under tariff item 851.60. Spare 
parts typically ordered and delivered with an instrument are also 
considered part of an instrument for purposes of these regulations. The 
term ``instruments'' shall not include:
    (1) Materials or supplies used in the operation of instruments and 
apparatus such as paper, cards, tapes, ink, recording materials, 
expendable laboratory materials, apparatus that loses identity or is 
consumed by usage or other materials or supplies.
    (2) Ordinary equipment for use in building construction or 
maintenance; or equipment for use in supporting activities of the 
institution, such as its administrative offices, machine shops, 
libraries, centralized computer facilities, eating facilities, or 
religious facilities; or support equipment such as copying machines, 
glass working apparatus and film processors.

[[Page 9]]

    (3) General purpose equipment such as air conditioners, electric 
typewriters, electric drills, refrigerators.
    (4) General-purpose computers. Accessories to computers which are 
not eligible for duty-free treatment are also ineligible. Scientific 
instruments containing embedded computers which are to be used in a 
dedicated process or in instrument control, as opposed to general data 
processing or computation, are, however, eligible for duty-free 
consideration.
    (5) Instruments initially imported solely for testing or review 
purposes which were entered under bond under tariff item 864.30, subject 
to the provisions of Headnote 1(a) of subpart C, part 5, schedule 8 TSUS 
and must be exported or destroyed within the time period specified in 
that headnote.
    (g) Domestic instrument means an instrument which is manufactured in 
the United States. A domestic instrument need not be made exclusively of 
domestic components or accessories.
    (h) Accessory has the meaning which it has under normal commercial 
usage. An accessory, whether part of an instrument or an attachment to 
an instrument, adds to the capability of an instrument. An accessory for 
which duty-free entry is sought under item 851.60 shall be the subject 
of a separate application when it is not an accompanying accessory.
    (i) Accompanying accessory means an accessory for an instrument that 
is listed as an item in the same purchase order and that is necessary 
for accomplishment of the purposes for which the instrument is intended 
to be used.
    (j) Ancillary equipment means an instrument which may be 
functionally related to the foreign instrument but is not operationally 
linked to it. Examples of ancillary equipment are vacuum evaporators or 
ultramicrotomes, which can be used to prepare specimens for electron 
microscopy. Further, equipment which is compatible with the foreign 
instrument, but is also clearly compatible with similar domestic 
instruments, such as automatic sampling equipment sold for use with a 
variety of mass spectrometers, will be treated as ancillary equipment. A 
separate application will be required for ancillary equipment even if 
ordered with the basic instrument.
    (k) Components of an instrument means parts or assemblies of parts 
which are substantially less than the instrument to which they relate. A 
component enables an instrument to function at a specified minimum 
level, while an accessory adds to the capability of an instrument. 
Applications shall not be accepted for components of instruments that 
did not enter duty-free under tariff item 851.60 or for components of 
instruments being manufactured or assembled by a commercial firm or 
entity in the U.S. In determining whether an item is a component 
ineligible for duty-free consideration or an accessory eligible for such 
consideration, Customs shall take into account such factors as the 
item's complexity, novelty, degree of integration and pertinency to the 
research purposes to be performed by the instrument as a whole.
    (l) Produced for stock means an instrument which is manufactured, on 
sale and available from a stock.
    (m) Produced on order means an instrument which a manufacturer lists 
in current catalog literature and is able and willing to produce and 
have available without unreasonable delay to the applicant.
    (n) Custom-made means an instrument which a manufacturer is willing 
and able to make to purchaser's specifications. Instruments resulting 
from a development effort are treated as custom-made for the purposes of 
these regulations. Also, a special-order variant of a produced on order 
instrument, with significant modifications specified by the applicant, 
may be treated as custom-made.
    (o) Same general category means the category in which an instrument 
is customarily classified in trade directories and product-source lists, 
e.g., scanning electron microscope, mass spectrometer, light microscope, 
x-ray spectrometer.
    (p) Comparable domestic instrument means a domestic instrument 
capable or potentially capable of fulfilling the applicant's technical 
requirements or intended uses, whether or not in the same general 
category as the foreign instrument.

[[Page 10]]

    (q) Specifications means the particulars of the structural, 
operational and performance characteristics or capabilities of a 
scientific instrument.
    (r) Guaranteed specifications are those specifications which are an 
explicit part of the contractual agreement between the buyer and the 
seller (or which would become part of the agreement if the buyer 
accepted the seller's offer), and refer only to the minimum and 
routinely achievable performance levels of the instrument under 
specified conditions. If a capability is listed or quoted as a range 
(e.g., ``5 to 10 angstroms'') or as a minimum that may be exceeded 
(e.g., ``5 angstroms or better''), only the inferior capability may be 
considered the guaranteed specification. Evidence that specifications 
are ``guaranteed'' will normally consist of their being printed in a 
brochure or other descriptive literature of the manufacturer; being 
listed in a purchase agreement upon which the purchase is conditioned; 
or appearing in a manufacturer's formal response to a request for quote. 
If, however, no opportunity to submit a bid was afforded the domestic 
manufacturer or if, for any other reason, comparable guaranteed 
specifications of the foreign and domestic instruments do not appear on 
the record, other evidence relating to a manufacturer's ability to 
provide an instrument with comparable specifications may, at the 
discretion of the Director, be considered in the comparison of the 
foreign and domestic instruments' capabilities.
    (s) Pertinent specifications are those specifications necessary for 
the accomplishment of the specific scientific research and/or science-
related educational purposes described by the applicant. Specifications 
of features (even if guaranteed) which afford greater convenience, 
satisfy personal preferences, accommodate institutional commitments or 
limitations, or assure lower costs of acquisition, installation, 
operation, servicing or maintenance are not pertinent. For example, a 
design feature, such as a small number of knobs or controls on an 
instrument primarily designed for research purposes, would be a 
convenience. The ability to fit an instrument into a small room, when 
the required operations could be performed in a larger room, would be 
either a cost consideration or a matter of convenience and not a 
pertinent specification. In addition, mere difference in design (which 
would, for example, broaden the educational experience of students but 
not provide superior scientific capability) would not be pertinent. 
Also, unless the applicant demonstrates it is necessary for the 
accomplishment of its specific scientific purposes, the terms does not 
extend to such characteristics as size, weight, appearance, durability, 
reliability, complexity or (simplicity), ease of operation, ease of 
maintenance, productivity, versatility, ``state of the art'' design, 
specific design, or other such characteristics.

[47 FR 32517, July 28, 1982; 47 FR 34368, Aug. 9, 1982]



Sec. 301.3  Application for duty-free entry of scientific instruments.

    (a) Who may apply. An applicant for duty-free entry of an instrument 
under tariff item 851.60 must be a public or private nonprofit 
institution which is established for educational or scientific purposes 
and which has placed a bona fide order or has a firm intention to place 
a bona fide order for a foreign instrument within 60 days following a 
favorable decision on the institution's application.
    (b) Application forms. Applications must be made on form ITA-338P 
which may be obtained from the Statutory Import Programs Staff, 
International Trade Administration, U.S. Department of Commerce, 
Washington, DC 20230, or from the various District Offices of the U.S. 
Department of Commerce. (Approved by the Office of Management and Budget 
under control number 0625-0037.)
    (c) Where to apply. Applications must be filed with the U.S. Customs 
Service, Department of the Treasury, at the address specified on page 1 
of the form.
    (d) Five copies of the form, including relevant supporting 
documents, must be submitted. One copy of the form shall be signed in 
the original by the person in the applicant institution under whose 
direction and control the foreign instrument will be used and who is 
familiar with the intended uses

[[Page 11]]

of the instrument. The remaining four copies of the form may be copies 
of the original. Attachments should be fully identified and referenced 
to the question(s) on the form to which they relate.
    (e) A single application (in the requisite number of copies) may be 
submitted for any quantity of the same type or model of foreign 
instrument provided that the entire quantity is intended to be used for 
the same purposes and provided that all units are included on a single 
purchase order. A separate application shall be submitted for each 
different type or model or variation in the type or model of instrument 
for which duty-free entry is sought even if covered by a single purchase 
order. Orders calling for multiple deliveries of the same type or model 
of instrument over a substantial period of time may, at the discretion 
of the Director, require multiple applications.
    (f) Failure to answer completely all questions on the form in 
accordance with the instructions on the form or to supply the requisite 
number of copies of the form and supporting documents may result in 
delays in processing of the application while the deficiencies are 
remedied, return of the application without processing, or denial of the 
application without prejudice to resubmission. Any questions on these 
regulations or the application form should be addressed to the Director.

[47 FR 32517, July 28, 1982, as amended at 50 FR 11501, Mar. 22, 1985]



Sec. 301.4  Processing of applications by the Department of the Treasury (U.S. Customs Service).

    (a) Review and determination. The Commissioner shall date each 
application when received by Customs. If the application appears to be 
complete, the Commissioner shall determine:
    (1) Whether the institution is a nonprofit private or public 
institution established for research and educational purposes and 
therefore authorized to import instruments into the U.S. under tariff 
item 851.60. In making this determination the Commissioner will 
generally review the application to determine if the applicant has 
attached a copy of the letter from the Internal Revenue Service (IRS) 
granting the institution nonprofit status (exemption from Federal income 
tax) under section 501(c)(3) of the IRS Code or will determine if the 
institution is listed in a current edition of ``Cumulative List of 
Exempt Organizations'';
    (2) Whether the instrument falls within the classes of instruments 
eligible for duty-free entry consideration under tariff item 851.60 (For 
eligible classes see Headnote 6(a), part 4, Schedule 8, TSUS); and
    (3) Whether the instrument which is the subject of the application 
is intended for the exclusive use of the applicant institution and is 
not intended to be used for commercial purposes. For the purposes of 
this section, commercial uses would include, but not necessarily be 
limited to: Distribution or sale of the instrument by the applicant 
institution; any use by, or for the primary benefit of, a commercial 
entity; or use of the instrument for demonstration purposes in return 
for a fee or other valuable consideration. In making the above 
determination, the Commissioner may consider, among other things, 
whether the results of any research to be performed with the instrument 
will be fully and timely made available to the public. For the purposes 
of this section, use of an instrument for the treatment of patients is 
considered noncommercial.

If any of the Commissioner's determinations is in the negative, the 
application shall be found to be outside the scope of the Act and shall 
be returned to the applicant with a statement of the reason(s) for such 
findings.

    (b) Forwarding of applications to the Department of Commerce. If the 
Commissioner finds the application to be within the scope of the Act and 
these regulations, the Commissioner shall (1) assign a number to the 
application and (2) forward one copy to the Secretary of the Department 
of Health and Human Services (HHS), and two copies, including the one 
that has been signed in the original, to the Director. The Commissioner 
shall retain one copy and return the remaining copy to the applicant 
stamped ``Accepted for Transmittal to the Department of Commerce.'' The 
applicant shall file the stamped copy of the form with the Port when 
formal entry of the article is made. If entry has already occurred

[[Page 12]]

under a claim of tariff item 851.60, the applicant (directly or through 
his/her agent) shall at the earliest possible date supply the stamped 
copy to the Port. Further instructions for entering instruments are 
contained in Sec. 301.8 of the regulations.

[47 FR 32517, July 28, 1982; 47 FR 34368, Aug. 9, 1982, as amended at 50 
FR 11501, Mar. 22, 1985]



Sec. 301.5  Processing of applications by the Department of Commerce.

    (a) Public notice and opportunity to present views. (1) Within 10 
days of receipt of an application from the Commissioner, the Director 
shall make a copy available for public inspection during ordinary 
business hours of the Department of Commerce. Unless the Director 
determines that an application has deficiencies which preclude 
consideration on its merits (e.g., insufficient description of intended 
purposes to rule on the scientific equivalency of the foreign instrument 
and potential domestic equivalents), he shall publish in the Federal 
Register a notice of the receipt of the application to afford all 
interested persons a reasonable opportunity to present their views with 
respect to the question ``whether an instrument or apparatus of 
equivalent scientific value for the purpose for which the article is 
intended to be used is being manufactured in the United States.'' The 
notice will include the application number, the name and address of the 
applicant, a description of the instrument(s) for which duty-free entry 
is requested, the name of the foreign manufacturer and a brief summary 
of the applicant's intended purposes extracted from the applicant's 
answer to question 7 of the application. In addition, the notice shall 
specify the date the application was accepted by the Commissioner for 
transmittal to the Department of Commerce.
    (2) If the Director determines that an application is incomplete or 
is otherwise deficient, he may request the applicant to supplement the 
application, as appropriate, prior to publishing the notice of 
application in the Federal Register. Supplemental information/material 
requested under this provision shall be supplied to the Director in two 
copies within 20 days of the date of the request and shall be subject to 
the certification contained in Question 11 of the form. Failure to 
provide the requested information on time shall result in a denial of 
the application without prejudice to resubmission.
    (3) Requirement for presentation of views (comments) by interested 
persons. Any interested person or government agency may make written 
comments to the Director with respect to the question whether an 
instrument of equivalent scientific value, for the purposes for which 
the foreign instrument is intended to be used, is being manufactured in 
the United States. Except for comments specified in paragraph (a)(4) of 
this section, comments should be in the form of supplementary answers to 
the applicable questions on the application form. Comments must be 
postmarked no later than 20 days from the date on which the notice of 
application is published in the Federal Register. In order to be 
considered, comments and related attachments must be submitted to the 
Director in duplicate; shall state the name, affiliation and address of 
the person submitting the comment; and shall specify the application to 
which the comment applies. In order to preserve the right to appeal the 
Director's decision on a particular application pursuant to Sec. 301.6 
of these regulations, a domestic manufacturer or other interested person 
must make timely comments on the application. Separate comments should 
be supplied on each application in which a person has an interest. 
However, brochures, pamphlets, printed specifications and the like, 
included with previous comments, if properly identified, may be 
incorporated by reference in subsequent comments. If the Director knows 
of the availability of a domestic instrument which may be comparable to 
the foreign instrument, he may: (i) Require the applicant to compare the 
domestic instrument with the foreign instrument; or (ii) compare the two 
instruments whether or not comments are received from a domestic 
manufacturer on the specific application.
    (4) Comments by domestic manufacturers. Comments of domestic 
manufacturers opposing the granting of an application should:

[[Page 13]]

    (i) Specify the domestic instrument considered to be scientifically 
equivalent to the foreign article for the applicant's specific intended 
purposes and include documentation of the domestic instrument's 
guaranteed specifications and date of availability.
    (ii) Show that the specifications claimed by the applicant in 
response to question 8 to be pertinent to the intended purpose can be 
equaled or exceeded by those of the listed domestic instrument(s) 
whether or not it has the same design as the foreign instrument; that 
the applicant's alleged pertinent specifications should not be 
considered pertinent within the meaning of Sec. 301.2(s) of the 
regulations for the intended purposes of the instrument described in 
response to question 7 of the application; or that the intended purposes 
for which the instrument is to be used do not qualify the instrument for 
duty-free consideration under the Act.
    (iii) Where the comments regarding paragraphs (a)(4)(i) and 
(a)(4)(ii) of this section relate to a particular accessory or optional 
device offered by a domestic manufacturer, cite the type, model or other 
catalog designation of the accessory device and include the 
specification therefor in the comments.
    (iv) Where the justification for duty-free entry is based on 
excessive delivery time, show whether:
    (A) The domestic instrument is as a general rule either produced for 
stock, produced on order, or custom-made and;
    (B) An instrument or apparatus of equivalent scientific value to the 
article, for the purposes described in response to question 7, could 
have been produced and delivered to the applicant within a reasonable 
time following the receipt of the order.
    (v) Indicate whether the applicant afforded the domestic 
manufacturer an opportunity to furnish an instrument or apparatus of 
equivalent scientific value to the article for the purposes described in 
response to question 7 and, if such be the case, whether the applicant 
submitted a formal invitation to bid that included the technical 
requirements of the applicant.
    (5) Untimely comments. Comments must be made on a timely basis to 
ensure their consideration by the Director and the technical 
consultants, and to preserve the commenting person's right to appeal the 
Director's decision on an application. The Director, in his discretion, 
may entertain comments filed untimely to the extent that they contain 
factual information, as opposed to arguments, explanations or 
recommendations.
    (6) Provision of general comments. A domestic manufacturer who does 
not wish to oppose duty-free entry of a particular application, but who 
desires to apprise the Director of the availability and capabilities of 
its instrument(s), may at any time supply documentation to the Director 
without reference to a particular application. Such documentation shall 
be routinely taken into account by the Director when applications 
involving comparable foreign instruments are received. The provision of 
general comments does not preserve the commentor's right to appeal the 
Director's decision on a particular application.
    (7) Provision of application to domestic manufacturers. To 
facilitate timely comments, the Director may furnish copies of certain 
applications to domestic manufacturers who intend to comment on 
applications, provided:
    (i) The manufacturer requests the service in writing;
    (ii) The manufacturer provides copies of current company literature 
regarding the domestic instrument and its guaranteed capabilities; and
    (iii) The manufacturer identifies the specific models or types of 
comparable foreign instrument(s) that it proposes to comment on. The 
Director may furnish for comment copies of the appropriate applications 
to the domestic manufacturer until the firm requests that the service be 
discontinued, provided the firm utilizes the service to supply written 
comments on applications. If the recipient of the service fails to avail 
itself of the opportunity to comment on appropriate applications for a 
period of one year, the Director may at his discretion discontinue the 
service. For reasons of cost and administrative burden, the service may 
be discontinued at the discretion of the Director. In such case the 
Director shall notify all recipients

[[Page 14]]

of the service in writing of such discontinuance.
    (b) Additions to the record. The Director may solicit from the 
applicant or from foreign or domestic manufacturers, and agents thereof, 
or any other person or Government agency considered by the Director to 
have competence on any issue pertaining to an application, any 
additional information the Director deems necessary to the rendering of 
a decision. The Director may attach such conditions and time limitations 
deemed appropriate upon the provision of such information and may draw 
appropriate inferences from a person's failure to provide the requested 
information.
    (c) Advice from technical consultants. (1) The Director shall 
consider any written advice from the Secretary of HHS, or his delegate, 
on the question whether a domestic instrument of equivalent scientific 
value to the foreign instrument, for the purposes for which the 
instrument is intended to be used, is being manufactured in the United 
States.
    (2) After the comment period has ended (Sec. 301.5(a)(3)), the 
complete application and any comments received and related information 
are forwarded to the appropriate technical consultants for their written 
advice.
    (3) The technical consultants are requested to provide their written 
recommendation within 30 days of the date of transmittal. The technical 
consultants relied upon for advice may include, but are not limited to, 
the National Institutes of Health (delegated the function by the 
Secretary of HHS), the National Bureau of Standards and the National 
Oceanographic and Atmospheric Administration.
    (d) Criteria for the determinations of the Department of Commerce--
(1) Scientific equivalency. (i) The determination of scientific 
equivalency shall be based on a comparison of the pertinent 
specifications of the foreign instrument with similar pertinent 
specifications of comparable domestic instruments (see Sec. 301.2(s) for 
the definition of pertinent specification). Ordinarily, the Director 
will consider only those performance characteristics which are 
``guaranteed specifications'' within the meaning of Sec. 301.2(r) of 
this part. In no event, however, shall the Director consider performance 
capabilities superior to the manufacturer's guaranteed specifications or 
their equivalent. In making the comparison the Director may consider a 
reasonable combination of domestic instruments that combines two or more 
functions into an integrated unit if the combination of domestic 
instruments is capable of accomplishing the purposes for which the 
foreign instrument is intended to be used. If the Director finds that a 
domestic instrument possesses all of the pertinent specifications of the 
foreign instrument, he shall find that there is being manufactured in 
the United States an instrument of equivalent scientific value for such 
purposes as the foreign instrument is intended to be used. If the 
Director finds that the foreign instrument possesses one or more 
pertinent specifications not possessed by the comparable domestic 
instrument(s), the Director shall find that there is not being 
manufactured in the United States an instrument of equivalent scientific 
value to the foreign instrument for such purposes as the foreign 
instrument is intended to be used.
    (ii) Programs that may be undertaken at some unspecified future date 
shall not be considered in the Director's comparison. In making the 
comparison, the Director shall consider only the instrument and 
accompanying accessories described in the application and determined 
eligible by the U.S. Customs Service. The Director shall not consider 
the planned purchase of additional accessories or the planned conversion 
of the article at some unspecified future time for such programs.
    (iii) In order for the Director to make a determination with respect 
to the ``scientific equivalency'' of the foreign and domestic 
instruments, the applicant's intended purposes must include either 
scientific research or science-related educational programs. Instruments 
used exclusively for nonscientific purposes have no scientific value, 
thereby precluding the requisite finding by the Director with respect to 
``whether an instrument or apparatus of equivalent scientific value to 
such article, for the purposes for which the article is intended to be 
used, is being

[[Page 15]]

manufactured in the United States.'' In such cases the Director shall 
deny the application for the reason that the instrument has no 
scientific value for the purposes for which it is intended to be used. 
Examples of nonscientific purposes would be the use of an instrument in 
routine diagnosis or patient care and therapy (as opposed to clinical 
research); in teaching a nonscientific trade (e.g., printing, 
shoemaking, metalworking or other types of vocational training); in 
teaching nonscientific courses (e.g., music, home economics, journalism, 
drama); in presenting a variety of subjects or merely for presenting 
coursework, whether or not science related (e.g., video tape editors, 
tape recorders, projectors); and in conveying cultural information to 
the public (e.g., a planetarium in the Smithsonian Institution).
    (2) Manufactured in the United States. An instrument shall be 
considered as being manufactured in the United States if it is 
customarily ``produced for stock,'' ``produced on order'' or ``custom-
made'' within the United States. In determining whether a U.S. 
manufacturer is able and willing to produce an instrument, and have it 
available without unreasonable delay, the normal commercial practices 
applicable to the production and delivery of instruments of the same 
general category shall be taken into account, as well as other factors 
which in the Director's judgment are reasonable to take into account 
under the circumstances of a particular case. For example, in 
determining whether a domestic manufacturer is able to produce a custom-
made instrument, the Director may take into account the production 
experience of the domestic manufacturer including (i) the types, 
complexity and capabilities of instruments the manufacturer has 
produced, (ii) the extent of the technological gap between the 
instrument to which the application relates and the manufacturer's 
customary products, (iii) the manufacturer's technical skills, (iv) the 
degree of saturation of the manufacturer's production capability, and 
(v) the time required by the domestic manufacturer to produce the 
instrument to the purchaser's specification. Whether or not the domestic 
manufacturer has field tested or demonstrated the instrument will not, 
in itself, enter into the decision regarding the manufacturer's ability 
to manufacture an instrument. Similarly, in determining whether a 
domestic manufacturer is willing to produce an instrument, the Director 
may take into account the nature of the bid process, the manufacturer's 
policy toward manufacture of the product(s) in question, the minimum 
size of the manufacturer's production runs, whether the manufacturer has 
bid similar instruments in the past, etc. Also, if a domestic 
manufacturer was formally requested to bid an instrument, without 
reference to cost limitations and within a leadtime considered 
reasonable for the category of instrument involved, and the domestic 
manufacturer failed formally to respond to the request, for the purposes 
of this section the domestic manufacturer would not be considered 
willing to have supplied the instrument.
    (3) Burden of proof. The burden of proof shall be on the applicant 
to demonstrate that no instrument of equivalent scientific value for the 
purposes for which the foreign instrument is to be used is being 
manufactured in the United States. Evidence of applicant favoritism 
towards the foreign manufacturer (advantages not extended to domestic 
firms, such as additional lead time, know-how, methods, data on 
pertinent specifications or intended uses, results of research or 
development, tools, jigs, fixtures, parts, materials or test equipment) 
may be, at the Director's discretion, grounds for rejecting the 
application.
    (4) Excessive delivery time. Duty-free entry of the instrument shall 
be considered justified without regard to whether there is being 
manufactured in the United States an instrument of equivalent scientific 
value for the intended purposes if excessive delivery time for the 
domestic instrument would seriously impair the accomplishment of the 
applicant's intended purposes. For purposes of this section, (i) except 
when objective and convincing evidence is presented that, at the time of 
order, the actual delivery time

[[Page 16]]

would significantly exceed quoted delivery time, no claim of excessive 
delivery time may be made unless the applicant has afforded the domestic 
manufacturer an opportunity to quote and the delivery time for the 
domestic instrument exceeds that for the foreign instrument; and (ii) 
failure by the domestic manufacturer to quote a specific delivery time 
shall be considered a non-responsive bid (see Sec. 301.5(d)(2)). In 
determining whether the difference in delivery times cited by the 
applicant justifies duty-free entry on the basis of excessive delivery 
time, the Director shall take into account (A) the normal commercial 
practice applicable to the production of the general category of 
instrument involved; (B) the efforts made by the applicant to secure 
delivery of the instruments (both foreign and domestic) in the shortest 
possible time; and (C) such other factors as the Director finds relevant 
under the circumstances of a particular case.
    (e) Denial without prejudice to resubmission (DWOP). The Director 
may, at any stage in the processing of an application by the Department 
of Commerce, DWOP an application if the application contains any 
deficiency which, in the Director's judgment, prevents a determination 
on its merits. The Director shall state the deficiences of the 
application in a letter to the applicant in making the provisional 
denial.
    (1) The applicant has 60 days from the date of the DWOP to correct 
the cited deficiencies in the application unless a request for an 
extension of time for submission of the supplemental information has 
been received by the Director prior to the expiration of the 60-day 
period and is approved.
    (2) The written request (letter or telegram) for an extension should 
indicate the reasons for the request and the amount of additional time 
needed. If granted, extensions of time will generally be limited to 30 
days.
    (3) Resubmissions must reference the application number of the 
earlier application. The resubmission shall be made by letter and filed 
in quadruplicate with the Director. The record of a resubmitted 
application shall include the original submission on file with the 
Department. Any new material or information contained in a resubmission, 
which should address the specific deficiencies cited in the DWOP letter, 
should be clearly labeled and referenced to the applicable question(s) 
on the application form. The resubmission should be signed and dated by 
the individual in the applicant institution who signed the original 
application or, in his/her absence, the individual in the applicant 
institution under whose direction and control the foreign instrument 
will be used and who is familiar with the intended uses of the 
instrument. The resubmission must be for the instrument covered by the 
original application unless the DWOP letter specifies to the contrary. 
The resubmission shall be subject to the certification contained in 
question 11 on the original application.
    (4) If the applicant fails to resubmit within the applicable time 
period, the prior DWOP shall, irrespective of the merits of the case, 
result in a denial of the application.
    (5) The Director shall use the postmark date of the fully completed 
resubmission in determining whether the resubmission was made within the 
allowable time period. Certified or registered mail, or some other means 
which can unequivocally establish the date of mailing, is recommended.
    (6) The applicant may, at any time prior to the end of the 
resubmission period, notify the Director in writing that it does not 
intend to resubmit the application. Upon such notification, the 
application will be deemed to have been withdrawn. (See Sec. 301.5(g).)
    (7) Information provided in a resubmission that, in the judgment of 
the Director, contradicts or conflicts with information provided in a 
prior submission, or is not a reasonable extension of the information 
contained in the prior submission, shall not be considered in making the 
decision on an application that has been resubmitted. Accordingly, an 
applicant may elect to reinforce an orginal submission by elaborating in 
the resubmission on the description of the purposes contained in a prior 
submission and may supply additional examples, documentation and/or 
other clarifying detail, but the applicant shall not introduce new 
purposes

[[Page 17]]

or other material changes in the nature of the original application. The 
resubmission should address the specific deficiencies cited in the DWOP. 
The Director may draw appropriate inferences from the failure of an 
applicant to attempt to provide the information requested in the DWOP.
    (8) In the event an applicant fails to address the noted 
deficiencies in the response to the DWOP, the Director may deny the 
application.
    (9) Upon receipt of a responsive resubmission the Director shall 
publish a notice in the Federal Register citing the number of the 
earlier application, the name and address of the applicant institution, 
the instrument(s) involved, and any other information the Director deems 
relevant. The notice will also include the Federal Register citation for 
the original notice of application. Procedures applicable to comments on 
the processing of original applications shall thereafter apply.
    (f) Decisions on applications. The Director shall prepare a written 
decision granting or denying each application. However, when he deems 
appropriate, the Director may issue a consolidated decision on two or 
more applications. The Director shall promptly forward a copy of the 
decision to each applicant institution and to the Federal Register for 
publication.
    (g) Withdrawal of applications. The Director shall discontinue 
processing an application withdrawn by the applicant and shall publish 
notice of such withdrawal in the Federal Register. If at any time while 
its application is pending before the Director, either during the 
intital application or resubmission stage, an applicant cancels an order 
for the instrument to which the application relates or ceases to have a 
firm intention to order such instrument or apparatus, the institution 
shall promptly notify the Director. Such notification shall constitute a 
withdrawal. Withdrawals shall be considered as having been finally 
denied for purposes of Sec. 301.7(c) below.
    (h) Nothing in this subsection shall be construed as limiting the 
Director's discretion at any stage of processing to insert into the 
record and consider in making his decision any information in the public 
domain which he deems relevant.

[47 FR 32517, July 28, 1982; 47 FR 34368, Aug. 9, 1982, as amended at 50 
FR 11501, Mar. 22, 1985]



Sec. 301.6  Appeals.

    (a) An appeal from any decision made pursuant to Sec. 301.5(f) may 
be taken, in accordance with headnote 6(e) to part 4 of Schedule 8, only 
to the U.S. Court of Customs and Patent Appeals and only on questions of 
law, within 20 days after publication of the decision in the Federal 
Register. If at any time while its application is under consideration by 
the Court of Customs and Patent Appeals on an appeal from a finding by 
the Director an institution cancels an order for the instrument to which 
the application relates or ceases to have a firm intention to order such 
instrument, the institution shall promptly notify the court.
    (b) An appeal may be taken by: (1) The institution which makes the 
application;
    (2) A person who, in the proceeding which led to the decision, 
timely represented to the Secretary of Commerce in writing that he/she 
manufactures in the United States an instrument of equivalent scientific 
value for the purposes for which the instrument to which the application 
relates is intended to be used;
    (3) The importer of the instrument, if the instrument to which the 
application relates has been entered at the time the appeal is taken; or
    (4) An agent of any of the foregoing.
    (c) Questions regarding appeal procedures should be addressed 
directly to the U.S. Court of Customs and Patent Appeals, Clerks' 
Office, Washington, DC 20439.



Sec. 301.7  Final disposition of an application.

    (a) Disposition of an application shall be final when 20 days have 
elapsed after publication of the Director's final decision in the 
Federal Register (see Sec. 301.6(a)) and no appeal has been taken 
pursuant to Sec. 301.6 of these regulations, of if such appeal has been 
taken, when final judgment is made and entered by the Court.

[[Page 18]]

    (b) The Director shall notify the Customs Port when disposition of 
an application becomes final. If the Director has not been advised of 
the port of entry of the instrument, or if entry has not been made when 
the decision on the application becomes final, the Director shall notify 
the Commissioner of final disposition of the application.
    (c) An instrument, the duty-free entry of which has been finally 
denied, may not be the subject of a new application from the same 
institution.



Sec. 301.8  Instructions for entering instruments through U.S. Customs under tariff item 851.60.

    Failure to follow the procedures in this section may disqualify an 
instrument for duty-free entry notwithstanding an approval of an 
application on its merits by the Department of Commerce.
    (a) Entry procedures. (1) An applicant desiring duty-free entry of 
an instrument may make a claim at the time of entry of the instrument 
into the Customs territory of the United States that the instrument is 
entitled to duty-free classification under tariff item 851.60.
    (2) If no such claim is made the instrument shall be immediately 
classified without regard to tariff item 851.60, duty will be assessed, 
and the entry liquidated in the ordinary course.
    (3) If a claim is made for duty-free entry under tariff item 851.60, 
the entry shall be accepted without requiring a deposit of estimated 
duties provided that a copy of the form, stamped by Customs as accepted 
for transmittal to the Department of Commerce in accordance with 
Sec. 301.4(b), is filed simultaneously with the entry.
    (4) If a claim for duty-free entry under tariff item 851.60 is made 
but is not accompanied by a copy of the properly stamped form, a deposit 
of the estimated duty is required. Liquidation of the entry shall be 
suspended for a period of 180 days from the date of entry. On or before 
the end of this suspension period the applicant must file with the 
Customs Port a properly stamped copy of the form. In the event that the 
Customs Port does not receive a copy of the properly stamped form within 
180 days the instrument shall be classified and liquidated in the 
ordinary course, without regard to tariff item 851.60.
    (5) Entry of an instrument after the Director's approval of an 
application. Whenever an institution defers entry until after it 
receives a favorable final determination on the application for duty-
free entry of the instrument, the importer shall file with the entry of 
the instrument (i) the stamped copy of the form, (ii) the institution's 
copy of the favorable final determination and (iii) proof that a bona 
fide order for the merchandise was placed on or before the 60th day 
after the favorable decision became final pursuant to Sec. 301.7 of 
these regulations. Liquidation in such case shall be made under tariff 
item 851.60.
    (b) Normal Customs entry requirements. In addition to the above 
entry requirements mentioned in paragraph (a) of this section, the 
normal Customs entry requirements must be met. In most of the cases, the 
value of the merchandise will be such that the formal Customs entry 
requirements, which generally include the filing of a Customs entry 
bond, must be complied with. (For further information, see 19 CFR 142.3 
and 142.4 (TD-221).)
    (c) Late filing. Notwithstanding the preceding provisions of 
Sec. 301.8 any document, form, or statement required by regulations in 
this section to be filed in connection with the entry may be filed at 
any time before liquidation of the entry becomes final, provided that 
failure to file at the time of entry or within the period for which a 
bond was filed for its production was not due to willful negligence or 
fraudulent intent. Liquidation of any entry becomes conclusive upon all 
persons if the liquidation is not protested in writing in accordance 
with 19 CFR part 174, or the necessary document substantiating duty-free 
entry is not produced in accordance with 19 CFR 10.112, within 90 days 
after notice of liquidation. Upon notice of such final and conclusive 
liquidation, the Department of Commerce will cease the processing of any 
pending application for duty-free entry of the subject article. In all 
other respects, the provisions of this section do not apply to 
Department of Commerce

[[Page 19]]

responsibilities and procedures for processing applications pursuant to 
other sections of these regulations.
    (d) Payment of duties. The applicant will be billed for payment of 
duties when Customs determines that such payment is due.



Sec. 301.9  Uses and disposition of instruments entered under item 851.60, TSUS.

    (a) An instrument granted duty-free entry may be transferred from 
the applicant institution to another eligible institution provided the 
latter institution agrees not to use the instrument for commercial 
purposes within 5 years of the date of entry of the instrument. In such 
cases title to the instrument must be transferred directly between the 
institutions involved. An institution transferring a foreign instrument 
entered under item 851.60 within 5 years of its entry shall so inform 
the Customs Port in writing and shall include the following information:
    (1) The name and address of the transferring institution.
    (2) The name and address of the transferee.
    (3) The date of transfer.
    (4) A detailed description of the instrument.
    (5) The serial number of the instrument and any accompanying 
accessories.
    (6) The entry number, date of entry, and port of entry of the 
instrument.
    (b) Whenever the circumstances warrant, and occasionally in any 
event, the fact of continued use for 5 years for noncommercial purposes 
by the applicant institution shall be verified by Customs.
    (c) If an instrument is transferred in a manner other than specified 
above or is used for commercial purposes within 5 years of entry, the 
institution for which such instrument was entered shall promptly notify 
the Customs officials at the Port and shall be liable for the payment of 
duty in an amount determined on the basis of its condition as imported 
and the rate applicable to it.



Sec. 301.10  Importation of repair components under item 851.65 for article previously entered under item 851.60.

    (a) An institution which owns an instrument entered under tariff 
item 851.60 and desires to enter repair components for such instrument 
under tariff item 851.65 may do so without regard to the application 
procedures applicable to entries under item 851.60 provided the 
institution certifies to the customs official at the port of entry upon 
entry of such components that they are needed repair components for an 
instrument owned by that institution and previously entered and 
classified under tariff item 851.60.
    (b) Instruments entered under item 851.60 and subsequently returned 
to the foreign manufacturer for repair, replacement or modification are 
not covered by tariff item 851.65, although they may, in certain 
circumstances, be considered non-dutiable under other Customs provisions 
(e.g., drawback within the specified period pursuant to 19 U.S.C. 
1313(c)). Such instruments, if classified as dutiable by Customs, may 
nevertheless be made the subject of a new application under tariff item 
851.60.

[47 FR 32517, July 28, 1982; 47 FR 34368, Aug. 9, 1982]



PART 302 [RESERVED]






PART 303--WATCHES AND WATCH MOVEMENTS--Table of Contents




Sec.
303.1  Purpose.
303.2  Definitions and forms.
303.3  Determination of the total annual duty-exemption.
303.4  Determination of territorial distribution.
303.5  Application for annual allocations of duty-exemptions.
303.6  Allocation and reallocation of exemptions among producers.
303.7  Issuance of licenses and shipment permits.
303.8  Maintenance of duty-exemption entitlements.
303.9  Restrictions on the transfer of duty-exemptions.
303.10-303.11  [Reserved]

[[Page 20]]

303.12  Issuance and use of production incentive certificates.
303.13  Appeals.
303.14  Allocation factors and miscellaneous provisions.

    Authority: Pub. L. 94-241, 90 Stat. 263 (48 U.S.C. 1681, note); Pub. 
L. 97-446, 96 Stat. 2331 (19 U.S.C. 1202, note); Pub. L. 103-465, 108 
Stat. 4991.

    Source: 49 FR 17740, Apr. 25, 1984, unless otherwise noted.



Sec. 303.1  Purpose.

    (a) This part implements the responsibilities of the Secretaries of 
Commerce and the Interior (``the Secretaries'') under Pub. L. 97-446, 
enacted on 12 January 1983, which substantially amended Pub. L. 89-805, 
enacted 10 November 1966, amended by Pub. L. 94-88, enacted 8 August 
1975, and amended by Pub. L. 94-241, enacted 24 March 1976, and amended 
by Pub. L. 103-465, enacted 8 December 1994. The law provides for 
exemption from duty of territorial watches and watch movements without 
regard to the value of the foreign materials they contain, if they 
conform with the provisions of U.S. Legal Note 5 to Chapter 91 of the 
Harmonized Tariff Schedule of the United States (``91/5''). 91/5 denies 
this benefit to articles containing any material which is the product of 
any country with respect to which Column 2 rates of duty apply; 
authorizes the Secretaries to establish the total quantity of such 
articles, provided that the quantity so established does not exceed 
10,000,000 units or one-ninth of apparent domestic consumption, 
whichever is greater, and provided also that the quantity is not 
decreased by more than ten percent nor increased by more than twenty 
percent (or to more than 7,000,000 units, whichever is greater) of the 
quantity established in the previous year.
    (b) The law directs the International Trade Commission to determine 
apparent domestic consumption for the preceding calendar year in the 
first year U.S. insular imports of watches and watch movements exceed 
9,000,000 units. 91/5 authorizes the Secretaries to establish 
territorial shares of the overall duty-exemption within specified 
limits; and provides for the annual allocation of the duty-exemption 
among insular watch producers equitably and on the basis of allocation 
criteria, including minimum assembly requirements, that will reasonably 
maximize the net amount of direct economic benefits to the insular 
possessions.
    (c) The amended law also provides for the issuance to producers of 
certificates entitling the holder (or any transferee) to obtain duty 
refunds on watches and watch movements and parts (except discrete 
watchcases) imported into the customs territory of the United States. 
The amounts of these certificates may not exceed specified percentages 
of the producers' verified creditable wages in the insular possessions 
(90% of wages paid for the production of the first 300,000 units and 
declining percentages, established by the Secretaries, of wages paid for 
incremental production up to 750,000 units by each producer) nor an 
aggregate annual amount for all certificates exceeding $5,000,000 
adjusted for growth by the ratio of the previous year's gross national 
product to the gross national product in 1982. Refund requests are 
governed by regulations issued by the Department of the Treasury. The 
Secretaries are authorized to issue regulations necessary to carry out 
their duties under Headnote 6 and may cancel or restrict the license or 
certificate of any insular manufacturer found violating the regulations.

[49 FR 17740, Apr. 25, 1984, as amended at 50 FR 43568, Oct. 28, 1985; 
53 FR 52994, Dec. 30, 1988; 61 FR 55884, Oct. 30, 1996]



Sec. 303.2  Definitions and forms.

    (a) Definitions. Unless the context indicates otherwise:
    (1) Act means Pub. L. 97-446, enacted January 12, 1983 (19 U.S.C. 
1202), 96 Stat. 2329, as amended by Pub. L. 103-465, enacted on December 
8, 1994, 108 Stat. 4991.
    (2) Secretaries means the Secretary of Commerce and the Secretary of 
Interior or their delegates, acting jointly.
    (3) Director means the Director of the Statutory Import Programs 
Staff, International Trade Administration, U.S. Department of Commerce.
    (4) Sale or tranfer of a business means the sale or transfer of 
control, whether temporary or permanent, over a firm to which a duty-
exemption has been allocated, to any other firm, corporation,

[[Page 21]]

partnership, person or other legal entity by any means whatsoever, 
including, but not limited to, merger and transfer of stock, assets or 
voting trusts.
    (5) New firm means an entity which is completely separate from and 
unassociated with (by way of ownership or control) any duty-exempt 
recipient in any territory. A new entrant is a new firm which has 
received an allocation.
    (6) Producer means a duty-exemption holder which has maintained its 
eligibility for further allocations by complying with these regulations.
    (7) Established industry means all producers, including new 
entrants, that have maintained their eligibility for further 
allocations.
    (8) Territories, territorial, and insular possessions refer to the 
insular possessions of the United States (i.e., the U.S. Virgin Islands, 
Guam, and American Samoa) and the Northern Mariana Islands.
    (9) Duty-exemption refers to the authorization of duty-free entry of 
a specified number of watches and watch movements into the Customs 
Territory of the United States.
    (10) Total annual duty-exemption refers to the entire quantity of 
watches or watch components which may enter duty-free into the customs 
territory of the United States from the territories under 91/5 in a 
calendar year, as determined by the Secretaries or by the International 
Trade Commission in accordance with the Act.
    (11) Territorial distribution refers to the apportionment by the 
Secretaries of the total annual duty-exemption among the separate 
territories; territorial share means the portion consigned to each 
territory by this apportionment.
    (12) Allocation refers to the distribution of all parts of a 
territorial share, or a portion thereof, among the several producers in 
a territory.
    (13) Creditable wages means all wages--up to the amount per person 
shown in Sec. 303.14(a)(1)(i)--paid to permanent residents of the 
territories employed in a firm's 91/5 watch and watch movement assembly 
operations, plus any wages paid for the repair of non-91/5 watches up to 
an amount equal to 50 percent of the firm's total creditable wages. 
Excluded, however, are wages paid for special services rendered to the 
firm by accountants, lawyers, or other professional personnel and for 
the repair of non-91/5 watches and movements to the extent that such 
wages exceed the foregoing ratio. Wages paid to persons engaged in both 
creditable and non-creditable assembly and repair activities may be 
credited proportionately provided the firm maintains production and 
payroll records adequate for the Departments' verification of the 
creditable portion.
    (14) Non-91/5 watches and watch movements include, but are not 
limited to, watches and movements which are liquidated as dutiable by 
the U.S. Customs Service; contain any material which is the product of 
any country with respect to which Column 2 rates of duty apply; are 
ineligible for duty-free treatment pursuant to law or regulation; or are 
units the assembly of which the Department has determined not to involve 
substantial and meaningful work in the territory (as elsewhere defined 
in these regulations).
    (15) Discrete movements and components means screws, parts, 
components and subassemblies not assembled together with another part, 
component or subassembly at the time of importation into the territory. 
(A mainplate containing set jewels or shock devices, together with other 
parts, would be considered a single discrete component, as would a 
barrel bridge subassembly.)
    (b) Forms--(1) ITA-334P ``Application for License to Enter Watches 
and Watch Movements into the Customs Territory of the United States.'' 
This form must be completed annually by all producers desiring to 
receive an annual allocation. It is also used, with appropriate special 
instructions for its completion, by new firms applying for duty-
exemptions.
    (2) ITA-333 ``License to Enter Watches and Watch Movements into the 
Customs Territory of the United States.'' This form is issued by the 
Director to producers who have received an allocation and constitutes 
authorization for issuing specific shipment permits by the territorial 
governments. It is also used to record the balance of a producer's

[[Page 22]]

remaining duty-exemptions after each shipment permit is issued.
    (3) ITA-340 ``Permit to Enter Watches and Watch Movements into the 
Customs Territory of the United States.'' This form may be obtained, by 
producers holding a valid license, from the territorial government or 
may be produced by the licensee in an approved computerized format or 
any other medium or format approved by the Departments of Commerce and 
the Interior. The completed form authorizes duty-free entry of a 
specified amount of watches or watch movements at a specified U.S. 
Customs port.
    (4) ITA-360P ``Certificate of Entitlement to Secure the Refund of 
Duties on Watches and Watch Movements.'' This document authorizes an 
insular producer to request the refund of duties on imports of watches, 
watch movements and parts therefor, with certain exceptions, up to a 
specified value. Certificates may be used to obtain duty refunds only 
when presented with a properly executed Form ITA-361P.
    (5) ITA-361P ``Request for Refund of Duties on Watches and Watch 
Movements.'' This form must be completed to obtain the refund of duties 
authorized by the Director through Form ITA-360P. After authentication 
by the Department of Commerce, it may be used for the refund of duties 
on items which were entered into the customs territory of the United 
States during a specified time period. Copies of the appropriate Customs 
entries must be provided with this form to establish a basis for issuing 
the claimed amounts. The forms may also be used to transfer all or part 
of the producer's entitlement to another party. (See Sec. 303.12.)

(The information collection requirements in paragraph (b)(1) were 
approved by the Office of Management and Budget under control number 
0625-0040. The information collection requirements in paragraphs (b)(4) 
through (6) were approved under control number 0625-0134)

[49 FR 17740, Apr. 25, 1984, as amended at 50 FR 43568, Oct. 28, 1985; 
53 FR 52994, Dec. 30, 1988; 56 FR 9621, Mar. 7, 1991; 61 FR 55884, Oct. 
30, 1996]



Sec. 303.3  Determination of the total annual duty-exemption.

    (a) Procedure for determination. If, after considering the 
productive capacity of the territorial watch industry and the economic 
interests of the territories, the Secretaries determine that the amount 
of the total annual duty-exemption, or the territorial shares of the 
total amount, should be changed, they shall publish in the Federal 
Register a proposed limit on the quantity of watch units which may enter 
duty-free into the customs territory of the United States and proposed 
territorial shares thereof and, after considering comments, establish 
the limit and shares by Federal Register notice. If the Secretaries take 
no action under this section, they shall make the allocations in 
accordance with the limit and shares last established by this procedure.
    (b) Standards for determination. (1) Notwithstanding paragraph 
(b)(2) of this section, the limit established for any year may be 
7,000,000 units if the limit established for the preceding year was a 
smaller amount.
    (2) Subject to paragraph (c) of this section, the total annual duty-
exemption shall not be decreased by more than 10% of the quantity 
established for the preceding calendar year, or increased, if the 
resultant total is larger than 7,000,000, by more than 20% of the 
quantity established for the calendar year immediately preceding.
    (3) The Secretaries shall determine the limit after considering the 
interests of the territories; the domestic or international trade policy 
objectives of the United States; the need to maintain the competitive 
nature of the territorial industry; the total contribution of the 
industry to the economic well-being of the territories; and the 
territorial industry's utilization of the total duty-exemption 
established in the preceding year.
    (c) Determinations based on consumption. (1) The Secretaries shall 
notify the International Trade Commission whenever they have reason to 
believe duty-free watch imports from the territories will exceed 
9,000,000 units, or

[[Page 23]]

whenever they make a preliminary determination that the total annual 
duty-exemption should exceed 10,000,000 units.
    (2) In addition to the limitations in paragraph (b) of this section, 
the Secretaries shall not establish a limit exceeding one-ninth of 
apparent domestic consumption if such consumption, as determined by 
International Trade Commission, exceeds 90 million units.

[49 FR 17740, Apr. 25, 1984, as amended at 50 FR 7170, Feb. 21, 1985; 50 
FR 43568, Oct. 28, 1985; 53 FR 52994, Dec. 30, 1988]



Sec. 303.4  Determination of territorial distribution.

    (a) Procedure for determination. The Secretaries shall determine the 
territorial shares concurrently with their determination of the total 
annual duty exemption, and in the same manner (see Sec. 303.3, above).
    (b) Standards for determination--(1) Limitations. A territorial 
share may not be reduced by more than 500,000 units in any calendar 
year. No territorial share shall be less than 500,000 units.
    (2) Criteria for setting precise quantities. The Secretaries shall 
determine the precise quantities after considering, inter alia, the 
territorial capacity to produce and ship watch units. The Secretaries 
shall further bear in mind the aggregate benefits to the territories, 
such as creditable wages paid, creditable wages per unit exported, and 
corporate income tax payments.
    (3) Limitations on reduction of share. The Secretaries shall not 
reduce a territory's share if its producers use 85% or more of the 
quantity distributed to that territory in the immediately preceding 
year, except in the case of a major increase or decrease in the number 
of producers in a territory or if they believe that a territorial 
industry will decrease production by more than 15% from the total of the 
preceding year.
    (4) Standby redistribution authority. The Secretaries may 
redistribute territorial shares if such action is warranted by 
circumstances unforeseen at the time of the initial distributions, such 
as that a territory will use less than 80% of its total by the end of a 
calendar year, or if a redistribution is necessary to maintain the 
competitive nature of the territorial industries.

[49 FR 17740, Apr. 25, 1984, as amended at 50 FR 7170, Feb. 21, 1985]



Sec. 303.5  Application for annual allocations of duty-exemptions.

    (a) Application forms (ITA-334P) shall be furnished to producers by 
January 1, and must be completed and returned to the Director no later 
than January 31, of each calendar year.
    (b) All data supplied are subject to verification by the Secretaries 
and no allocation shall be made to producer until the Secretaries are 
satisfied that the data are accurate. To verify the data, 
representatives of the Secretaries shall have access to relevant company 
records including:
    (1) Work sheets used to answer all questions on the application 
form;
    (2) Original records from which such data are derived;
    (3) Records pertaining to ownership and control of the company and 
to the satisfaction of eligibility requirements of duty-free treatment 
of its product by the U.S. Customs Service;
    (4) Records pertaining to corporate income taxes, gross receipts 
taxes and excise taxes paid by each producer in the territories on the 
basis of which a portion of each producer's annual allocation is or may 
be predicated;
    (5) Customs, bank, payroll, and production records;
    (6) Records on purchases of components and sales of movements, 
including proof of payment; and
    (7) Any other records in the possession of the parent or affiliated 
companies outside the territory pertaining to any aspect of the 
producer's 91/5 watch assembly operation.
    (c) Data verification shall be performed in the territories, unless 
other arrangements satisfactory to the Departments are made in advance, 
by the Secretaries' representatives by the end of February of each 
calendar year. In the event a company cannot substantiate the data in 
its application before allocations must be calculated, the Secretaries 
shall determine which data will be used.
    (d) Records subject to the requirements of paragraph (b), above, 
shall be

[[Page 24]]

retained for a period of two years following their creation.

[49 FR 17740, Apr. 25, 1984, as amended at 50 FR 43568, Oct. 28, 1985; 
53 FR 52994, Dec. 30, 1988]



Sec. 303.6  Allocation and reallocation of exemptions among producers.

    (a) Interim allocations. As soon as practicable after January 1 of 
each year the Secretaries shall make an interim allocation to each 
producer equaling 70% of the number of watch units it has entered duty-
free into the customs territory of the United States during the first 
eight months of the preceding calendar year, or any lesser amount 
requested in writing by the producer. The Secretaries may also issue a 
lesser amount if, in their judgment, the producer might otherwise 
receive an interim allocation in an amount greater than the producer's 
probable annual allocation. In calculating the interim allocations, the 
Director shall count only duty-free watches and watch movements verified 
by the U.S. Customs Service as having been entered on or before August 
31 of the preceding year. Interim allocations shall not be published.
    (b) Annual allocations. (1) By March 1 of each year the Secretaries 
shall make annual allocations to the producers in accordance with the 
allocation formula based on data supplied in their annual application 
(Form ITA-334P) and verified by the Secretaries.
    (2) The excess of a producer's duty-exemption earned under the 
allocation criteria over the amount formally requested by the producer 
shall be considered to have been relinquished voluntarily (see paragraph 
(f) below). A producer's request may be modified by written 
communication received by the Secretaries by February 28, or, at the 
discretion of the Secretaries, before the annual allocations are made. 
An allocation notice shall be published in the Federal Register.
    (c) Supplemental allocations. At the request of a producer, the 
Secretaries may supplement a producer's interim allocation if the 
Secretaries determine the producer's interim allocation will be used 
before the Secretaries can issue the annual allocation. Allocations to 
supplement a producer's annual allocation shall be made under the 
reallocation provisions prescribed below.
    (d) Allocations to new entrants. In making interim and annual 
allocations to producers selected the preceding year as new entrants, 
the Secretaries shall take into account that such producers will not 
have had a full year's operation as a basis for computation of its duty-
exemption. The Secretaries may make an interim or annual allocation to a 
new entrant even if the firm did not operate during the preceding 
calendar year.
    (e) Special allocations. A producer may request a special allocation 
if unusual circumstances kept it from making duty-free shipments at a 
level comparable with its past record. In considering such requests, the 
Secretaries shall take into account the firm's proposed assembly 
operations; its record in contributing to the territorial economy; and 
its intentions and capacity to make meaningful contributions to the 
territory. They shall also first determine that the amount of the 
special allocation requested will not significantly affect the amounts 
allocated to other producers pursuant to Sec. 303.6(b)(1).
    (f) Reallocations. Duty-exemptions may become available for 
reallocation as a result of cancellation or reduction for cause, 
voluntary relinquishment or nonplacement of duty-exemption set aside for 
new entrants. At the request of a producer, the Secretaries may 
reallocate such duty-exemptions among the remaining producers who can 
use additional quantities in a manner judged best for the economy of the 
territories. The Secretaries shall consider such factors as the wage and 
income tax contributions of the respective producers during the 
preceding year and the nature of the producer's present assembly 
operations. In addition, the Secretaries may consider other factors 
which, in their judgment, are relevant to determining that applications 
from new firms, in lieu of reallocations, should be considered for part 
or all of unused portions of the total duty exemptions. Such factors may 
include:
    (1) The ability of the established industry to use the duty-
exemption;

[[Page 25]]

    (2) Whether the duty-exemption is sufficient to support new entrant 
operations;
    (3) The impact upon the established industry if new entrants are 
selected, particularly with respect to the effect on local employment, 
tax contributions to the territorial government, and the ability of the 
established industry to maintain satisfactory production levels; and
    (4) Whether additional new entrants offer the best prospect for 
adding economic benefits to the territory.
    (g) Section 303.14 of this part contains the criteria and formulae 
used by the Secretaries in calculating each watch producer's annual 
watch duty-exemption allocation, and other special rules or provisions 
the Secretaries may periodically adopt to carry out their 
responsibilities in a timely manner while taking into account changing 
circumstances. References to duty-exemptions, unless otherwise 
indicated, are to the amount available for reallocation in the current 
calendar year. Specifications of or references to data or bases used in 
the calculation of current year allocations (e.g., economic 
contributions and shipments) are, unless indicated otherwise, those 
which were generated in the previous year.
    (h) The Secretaries may propose changes to Sec. 303.14 at any time 
they consider it necessary to fulfill their responsibilities. Normally, 
such changes will be proposed towards the end of each calendar year. 
Interested parties shall be given an opportunity to submit written 
comments on proposed changes.

[49 FR 17740, Apr. 25, 1984, as amended at 50 FR 43568, Oct. 28, 1985; 
61 FR 55885, Oct. 30, 1996]



Sec. 303.7  Issuance of licenses and shipment permits.

    (a) Issuance of Licenses (ITA-333). (1) Concurrently with annual 
allocations under Sec. 303.5 the Director shall issue a non-transferable 
license (Form ITA-333) to each producer. The Director shall also issue a 
replacement license if a producer's allocation is reduced pursuant to 
Sec. 303.6.
    (2) Annual duty-exemption licenses shall be for only that portion of 
a producer's annual duty-exemption not previously licensed.
    (3) If a producer's duty-exemption has been reduced, the Director 
shall not issue a replacement license for the reduced amount until the 
producer's previous license has been received for cancellation by the 
Director.
    (4) A producer's license shall be used in their entirety, except 
when they expire or are cancelled, in order of their date of issuance, 
i.e., an interim license must be completely used before shipment permits 
can be issued against an interim supplemental license.
    (5) Outstanding licenses issued by the Director automatically expire 
at midnight, December 31, of each calendar year. No unused allocation of 
duty-exemption may be carried over into the subsequent calendar year.
    (6) The Director shall ensure that all licenses issued are 
conspicuously marked to show the type of license issued, the identity of 
the producer, and the year for which the license is valid. All licenses 
shall bear the signature of the Director.
    (7) Each producer is responsible for the security of its licenses. 
The loss of a license shall be reported immediately to the Director. 
Defacing, tampering with, and unauthorized use of a license are 
forbidden.
    (b) Shipment Permit Requirements (ITA-340). (1) Producers may obtain 
shipment permits from the territorial government officials designated by 
the Governor. Permits may also be produced in any computerized or other 
format or medium approved by the Departments. The permit is for use 
against a producer's valid duty-exemption license and a permit must be 
completed for every duty-free shipment.
    (2) Each permit must specify the license and permit number, the 
number of watches and watch movements included in the shipment, the 
unused balance remaining on the producer's license, pertinent shipping 
information and must have the certification statement signed by an 
official of the licensee's company. A copy of the completed permit must 
be sent electronically or taken to the designated territorial government 
officials, no later than the day of shipment, for confirmation that the 
producer's duty-exemption license has

[[Page 26]]

not been exceeded and that the permit is properly completed.
    (3) The permit (form ITA-340) shall be filed with Customs along with 
the other required entry documents to receive duty-free treatment unless 
the importer or its representative clears the documentation through 
Customs' automated broker interface. Entries made electronically do not 
require the submission of a permit to Customs, but the shipment data 
must be maintained as part of a producer's recordkeeping 
responsibilities for the period prescribed by Customs' recordkeeping 
regulations. U.S. Customs Service Import Specialists may request the 
documentation they deem appropriate to substantiate claims for duty-free 
treatment, allowing a reasonable amount of time for the importer to 
produce the permit.

[49 FR 17740, Apr. 25, 1984, as amended at 50 FR 43568, Oct. 28, 1985; 
61 FR 55885, Oct. 30, 1996]



Sec. 303.8  Maintenance of duty-exemption entitlements.

    (a) The Secretaries may order a producer to show cause within 30 
days of receipt of the order why the duty-exemption to which the firm 
would otherwise be entitled should not be cancelled, in whole or in 
part, if:
    (1) At any time after June 30 of the calendar year:
    (i) A producer's assembly and shipment record provides a reasonable 
basis to conclude that the producer will use less than 80 percent of its 
total allocation by the end of the calendar year, and
    (ii) The producer refuses a request from the Departments to 
relinquish that portion of its allocation which they conclude will not 
be used; or
    (2) A producer fails to satisfy or fulfill any term, condition or 
representation, whether undertaken by itself or prescribed by the 
Departments, upon which receipt of allocation has been predicated or 
upon which the Departments have relied in connection with the sale or 
transfer of a business together with its allocation; or
    (3) A producer, in the judgment of the Secretaries, has failed to 
make a meaningful contribution to the territory for a period of two or 
more consecutive calendar years, when compared with the performance of 
the duty-free watch assembly industry in the territory as a whole. This 
comparison shall include the producer's quantitative use of its 
allocations, amount of direct labor employed in the assembly of watches 
and watch movements, and the net amount of corporate income taxes paid 
to the government of the territory. If the producer fails to satisfy the 
Secretaries as to why such action should not be taken, the firm's 
allocation shall be reduced or cancelled, whichever is appropriate under 
the show-cause order. The eligibility of a firm whose allocation has 
been cancelled to receive further allocations may also be terminated.
    (b) The Secretaries may also issue a show-cause order to reduce or 
cancel a producer's allocation or production incentive certificate (see 
Sec. 303.12, below), as appropriate, or to declare the producer 
ineligible to receive an allocation or certificate if it violates any 
regulation in this part, uses a form, license, permit, or certificate in 
an unauthorized manner, or fails to provide information or data required 
by these regulations or requested by the Secretaries or their delegates 
in the performance of their responsibilities.
    (c) If a firm's allocation is reduced or cancelled, or if a firm 
voluntarily relinquishes a part of its allocation, the Secretaries may:
    (1) Reallocate the allocation involved among the remaining producers 
in a manner best suited to contribute to the economy of the territory;
    (2) Reallocate the allocation or part thereof to a new entrant 
applicant; or
    (3) Do neither of the above if deemed in the best interest of the 
territories and the established industry.

[49 FR 17740, Apr. 25, 1984, as amended at 61 FR 55885, Oct. 31, 1996]



Sec. 303.9  Restrictions on the transfer of duty-exemptions.

    (a) The sale or transfer of a duty-exemption from one firm to 
another shall not be permitted.
    (b) The sale or transfer of a business together with its duty-
exemption shall

[[Page 27]]

be permitted with prior written notification to the Departments. Such 
notification shall be accompanied by certifications and representations, 
as appropriate, that:
    (1) If the transferee is a subsidiary of or in any way affiliated 
with any other company engaged in the production of watch movements 
components being offered for sale to any territorial producer, the 
related company or companies will continue to offer such watch and watch 
movement components on equal terms and conditions to all willing buyers 
and shall not engage in any practice, in regard to the sale of 
components, that competitively disadvantages the non-affiliated 
territorial producers vis-a-vis the territorial subsidiary;
    (2) The sale or transfer price for the business together with its 
duty-exemption does not include the capitalization of the duty-exemption 
per se;
    (3) The transferee is neither directly or indirectly affiliated with 
any other territorial duty-exemption holder in any territory;
    (4) The transferee will not modify the watch assembly operations of 
the duty-exemption firm in a manner that will significantly diminish its 
economic contributions to the territory.
    (c) At the request of the Departments, the transferee shall permit 
representatives of the Departments to inspect whatever records are 
necessary to establish to their satisfaction that the certifications and 
representations contained in paragraph (b) of this section have been or 
are being met.
    (d) Any transferee who is either unwilling or unable to make the 
certifications and representations specified in paragraph (b) of this 
section shall secure the Departments' approval in advance of the sale or 
transfer of the business together with its duty-exemption. The request 
for approval shall specify which of the certifications specified in 
paragraph (b) of this section the firm is unable or unwilling to make, 
and give reasons why such fact should not constitute a basis for the 
Departments' disapproval of the sale or transfer.

[49 FR 17740, Apr. 25, 1984, as amended at 50 FR 43568, Oct. 28, 1985]
Secs. 303.10-303.11 [Reserved]



Sec. 303.12  Issuance and use of production incentive certificates.

    (a) Issuance of certificates. (1) Certificates of Entitlement, Form 
ITA-360, shall be issued before March 1 of the current year.
    (2) Certificates shall not be issued to more than one company in the 
territories owned or controlled by the same corporate entity.
    (b) Securities and handling of certificates. (1) Certificate holders 
are responsible for the security of the certificates. The certificates 
shall be kept at the territorial address of the insular producer or at 
another location having the advance approval of the Departments.
    (2) All refund requests made pursuant to the certificates shall be 
entered on the reverse side of the certificate.
    (3) Certificates shall be returned by registered, certified or 
express carrier mail to the Departments when:
    (i) A refund is requested which exhausts the entitlement on the face 
of the certificate,
    (ii) The certificate expires, or
    (iii) The Departments request their return with good cause.
    (4) Certificate entitlements may be transferred according to the 
procedures described in (c) of this section.
    (c) The use and transfer of certificate entitlements. (1) Insular 
producers issued a certificate may request a refund by executing a Form 
ITA-361P (see Sec. 303.2(b)(5) and the instructions on the form). After 
authentication by the Department of Commerce, the Form ITA-361P may be 
used to obtain duty refunds on watch movements, watches, and parts 
therefor. Duties on watchcases not containing a movement and on articles 
containing any material which is the product of a country with respect 
to which Column 2 rates of duty apply may not be refunded. Articles for 
which duty refunds are claimed must have entered the customs territory 
of the United States during the two-year period prior to the issue date 
of the certificate or during the one-year period the certificate remains 
valid. Copies of the appropriate Customs entries must be provided with 
the refund request in order to establish a

[[Page 28]]

basis for issuing the claimed amounts. Certification regarding drawback 
claims and liquidated refunds relating to the presented entries is 
required from the claimant on the form.
    (2) Regulations issued by the U.S. Customs Service, U.S. Department 
of the Treasury, govern the refund of duties under Pub. L. 97-446, as 
amended by Public Law 103-465. If the Departments receive information 
from the Customs Service that a producer has made unauthorized use of 
any official form, they shall cancel the affected certificate.
    (3) The insular producer may transfer a portion of all of its 
certificate entitlement to another party by entering in block C of Form 
ITA-361P the name and address of the party.
    (4) After a Form ITA-361P transferring a certificate entitlement to 
a party other than the certificate holder has been authenticated by the 
Department of Commerce, the form may be exchanged for any consideration 
satisfactory to the two parties. In all cases, authenticated forms shall 
be transmitted to the certificate holder or its authorized custodian for 
disposition (see paragraph (b) above).
    (5) All disputes concerning the use of an authenticated Form ITA-
361P shall be referred to the Departments for resolution. Any party 
named on an authenticated Form ITA-361P shall be considered an 
``interested party'' within the meaning of Sec. 303.13 of this part.

[49 FR 17740, Apr. 25, 1984, as amended at 50 FR 43568, Oct. 28, 1985; 
56 FR 9621, Mar. 7, 1991; 61 FR 55885, Oct. 30, 1996]



Sec. 303.13  Appeals.

    (a) Any official decision or action relating to the allocation of 
duty-exemptions or to the issuance or use of production incentive 
certificates may be appealed to the Secretaries by any interested party. 
Such appeals must be received within 30 days of the date on which the 
decision was made or the action taken in accordance with the procedures 
set forth in paragraph (b) of this section. Interested parties may 
petition for the issuance of a rule, or amendment or repeal of a rule 
issued by the Secretaries. Interested parties may also petition for 
relief from the application of any rule on the basis of hardship or 
extraordinary circumstances resulting in the inability of the petitioner 
to comply with the rule.
    (b) Petitions shall bear the name and post office address of the 
petitioner and the name and address of the principal attorney or 
authorized representative (if any) for the party concerned. They shall 
be addressed to the Secretaries and filed in one original and two copies 
with the U.S. Department of Commerce, Import Administration, 
International Trade Administration, Washington, D.C. 20230, Attention: 
Statutory Import Programs Staff. Petitions shall contain the following:
    (1) A reference to the decision, action or rule which is the subject 
of the petition;
    (2) A short statement of the interest of the petitioner;
    (3) A statement of the facts as seen by the petitioner;
    (4) The petitioner's argument as to the points of law, policy of 
fact. In cases where policy error is contended, the alleged error 
together with the policy the submitting party advocates as the correct 
one should be described in full;
    (5) A conclusion specifying the action that the petitioner believes 
the Secretaries should take.
    (c) The Secretaries may at their discretion schedule a hearing and 
invite the participation of other interested parties.
    (d) The Secretaries shall communicate their decision which shall be 
final, to the petitioner by registered mail.
    (e) If the outcome of any petition materially affects the amount of 
the petitioner's allocation and if the Secretaries' consideration of the 
petition continues during the calculation of the annual allocations, the 
Secretaries shall set aside a portion of the affected territorial share 
in an amount which, in their judgment, protects the petitioner's 
interest and shall allocate the remainder among the other producers.

[49 FR 17740, Apr. 25, 1984, as amended at 56 FR 9622, Mar. 7, 1991]

[[Page 29]]



Sec. 303.14  Allocation factors and miscellaneous provisions.

    (a) The allocation formula. (1) Except as provided in (a)(2) of this 
section, the territorial shares (excluding any amount set aside for 
possible new entrants) shall be allocated among the several producers in 
each territory in accordance with the following formula:
    (i) Fifty percent of the territorial share shall be allocated on the 
basis of the net dollar amount of economic contributions to the 
territory consisting of the dollar amount of creditable wages, up to a 
maximum of $35,000 per person, paid by each producer to territorial 
residents, plus the dollar amount of income taxes (excluding penalty and 
interest payments and deducting any income tax refunds and subsidies 
paid by the territorial government), and
    (ii) Fifty percent of the territorial share shall be allocated on 
the basis of the number of units of watches and watch movements 
assembled in the territory and entered by each producer duty-free into 
the customs territory of the United States.
    (2) If there is only one producer in a territory, the entire 
territorial share, excluding any amount set aside for possible new 
entrants, may be allocated without recourse to any distributive formula.
    (b) Minimum assembly requirements and prohibition of preferential 
supply relationship. (1) No insular watch movement or watch may be 
entered free of duty into the customs territory of the United States 
unless the producer used 30 or more discrete parts and components to 
assemble a mechanical watch movement and 33 or more discrete parts and 
components to assemble a mechanical watch.
    (2) Quartz analog watch movements must be assembled from parts 
knocked down to the maximum degree possible for the technical 
capabilities of the insular industry as a whole. The greatest degree of 
disassembly specified, for each manufacturer's brand and model, by any 
producer in any territory purchasing such brands and models shall 
constitute the disassembly required as a minimum for the industry as a 
whole.
    (3) Watch movements and watches assembled from components with a 
value of more than $35 for watch movements and $200 for watches shall 
not be eligible for duty-exemption upon entry into the U.S. Customs 
territory. Value means the value of the merchandise plus all charges and 
costs incurred up to the last point of shipment (i.e., prior to entry of 
the parts and components into the territory).
    (4) No producer shall accept from any watch parts and components 
supplier advantages and preferences which might result in a more 
favorable competitive position for itself vis-a-vis other territorial 
producers relying on the same supplier. Disputes under this paragraph 
may be resolved under the appeals procedures contained in 
Sec. 303.13(b).
    (c) Calculation of the value of production incentive certificates. 
(1) The value of each producer's certificate shall equal the producer's 
average creditable wages per unit shipped (including non-91/5 units as 
provided for in Sec. 303.2(a)(13)) multiplied by the sum of:
    (i) The number of units shipped up to 300,000 units times a factor 
of 90%; plus
    (ii) Incremental units shipped up to 450,000 units times a factor of 
85%; plus
    (iii) Incremental units shipped up to 600,000 times a factor of 80%; 
plus
    (iv) Incremental shipments up to 750,000 units times a factor of 
75%.
    (2) The Departments may make adjustments for these data in the 
manner set forth in Sec. 303.5(c).
    (d) New entrant invitations. (1) Applications from new firms are 
invited for the territorial shares of American Samoa and the Northern 
Mariana Islands.
    (2) Applications from new firms are invited for the unused portion 
of the Virgin Islands and Guam territorial shares.
    (e) Territorial shares. The shares of the total duty exemption are 
3,100,000 for the Virgin Islands, 500,000 for Guam, 500,000 for American 
Samoa, and 500,000 for the Northern Mariana Islands.

[49 FR 17740, Apr. 25, 1984, as amended at 50 FR 43568, Oct. 28, 1985; 
53 FR 17825, May 19, 1988; 53 FR 52679, Dec. 29, 1988; 53 FR 52994, Dec. 
30, 1988; 56 FR 9622, Mar. 7, 1991; 58 FR 21348, Apr. 21, 1993; 59 FR 
8847, 8848, Feb. 24, 1994; 61 FR 55885, Oct. 31, 1996]

[[Page 30]]



PART 310--OFFICIAL U.S. GOVERNMENT RECOGNITION OF AND PARTICIPATION IN INTERNATIONAL EXPOSITIONS HELD IN THE UNITED STATES--Table of Contents




Sec.
310.1  Background and purpose.
310.2  Definitions.
310.3  Applications for Federal recognition.
310.4  Action on application.
310.5  Report of the Secretary on Federal recognition.
310.6  Recognition by the President.
310.7  Statement for Federal participation.
310.8  Proposed plan for Federal participation.
310.9  Report of the Secretary on Federal participation.

    Authority: Pub. L. 91-269, 84 Stat. 271 (22 U.S.C. 2801 et seq.).

    Source: 40 FR 34107, Aug. 14, 1975, unless otherwise noted. 
Redesignated at 46 FR 57457, Nov. 24, 1981.

    Editorial Note: Nomenclature changes to part 310 appear at 46 FR 
57457, Nov. 24, 1981.



Sec. 310.1  Background and purpose.

    The regulations in this part are issued under the authority of Pub. 
L. 91-269 (84 Stat. 271, 22 U.S.C. 2801 et seq.) which establishes an 
orderly procedure for Federal Government recognition of, and 
participation in, international expositions to be held in the United 
States. The Act provides, inter alia, that Federal recognition of an 
exposition is to be granted upon a finding by the President that such 
recognition will be in the national interest. In making this finding, 
the President is directed to consider, among other factors, a report 
from the Secretary of Commerce as to the purposes and reasons for an 
exposition and the extent of financial and other support to be provided 
by the State and local officials and business and community leaders 
where the exposition is to be held, and a report by the Secretary of 
State to determine whether the exposition is qualified for registration 
under Bureau of International Expositions (BIE) rules. The BIE is an 
international organization established by the Paris Convention of 1928 
(T.I.A.S. 6548 as amended by T.I.A.S. 6549) to regulate the conduct and 
scheduling of international expositions in which foreign nations are 
officially invited to participate. The BIE divides international 
expositions into different categories and types and requires each member 
nation to observe specified minimum time intervals in scheduling each of 
these categories and types of expositions.1 Under BIE rules, 
member nations may not ordinarily participate in an international 
exposition unless such exposition has been approved by the BIE. The 
United States became a member of the BIE on April 30, 1968, upon 
ratification of the Paris Convention by the U.S. Senate (114 Cong. Rec. 
11012).
---------------------------------------------------------------------------

    1 The BIE defines a General Exposition of the First 
Category as an exposition dealing with progress achieved in a particular 
field applying to several branches of human activity at which the 
invited countries are obligated to construct national pavilions. A 
General Exposition of the Secondary Category is a similar exposition at 
which invited countries are not authorized to construct national 
pavilions, but occupy space provided by the exposition sponsors. Special 
Category Expositions are those dealing only with one particular 
technique, raw material, or basic need.
    The BIE frequency rules require that an interval of 15 years must 
elapse between General Expositions of the First Category held in one 
country. General Expositions of the Second Category require an interval 
of 10 years. An interval of 5 years must ordinarily elapse between 
Special Category Expositions of the same kind in one country or three 
months between Special Category Expositions of different kinds. These 
frequency intervals are computed from the date of the opening of the 
exposition.
    More detailed BIE classification criteria and regulations are 
contained in the Paris Convention of 1928, as amended in 1948 and 1966. 
Applicants not having a copy of the text of this convention may obtain 
one by writing the Director. (The Convention may soon be amended by a 
Protocol which has been approved by the BIE and ratified by the United 
States. This amendment would increase authorized frequencies or 
intervals for BIE approved expositions.)

Federal participation in a recognized international exposition requires 
a specific authorization by the Congress, upon a finding by the 
President that such participation would be in the national interest. The 
Act provides for the transmission to Congress of a participation 
proposal by the President. This proposal transmits to the Congress 
information regarding the exposition, including a statement that it

[[Page 31]]

has been registered by the BIE and a plan for Federal participation 
prepared by the Secretary of Commerce in cooperation with other 
interested Federal departments and agencies.



Sec. 310.2  Definitions.

    For the purpose of this part, except where the context requires 
otherwise:
    (a) Act means Pub. L. 91-269.
    (b) Secretary means the Secretary of Commerce.
    (c) Commissioner General means the person appointed to act as the 
senior Federal official for the exposition as required by BIE rules and 
regulations.
    (d) Director means the Director of the International Expositions 
Staff, Office of the Deputy Assistant Secretary for Export Development, 
International Trade Administration, Department of Commerce.
    (e) Applicant means a State, County, municipality, a political 
subdivision of the foregoing, private non-profit or not-for-profit 
organizations, or individuals filing an application with the Director 
seeking Federal recognition of an international exposition to be held in 
the United States.
    (f) State means one of the several States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, the Virgin 
Islands, Guam, American Samoa, and the Trust Territory of the Pacific 
Islands.
    (g) Exposition means an international exposition proposed to be held 
in the United States for which an application has been filed with the 
Director seeking Federal recognition under the Act; which proposes to 
invite more than one foreign country to participate; and, which would 
exceed three weeks in duration. Any event under three weeks in duration 
is not considered an international exposition under BIE rules.

[40 FR 34107, Aug. 14, 1975. Redesignated and amended at 46 FR 57457, 
Nov. 24, 1981]



Sec. 310.3  Applications for Federal recognition.

    (a) Applications for Federal recognition of an exposition shall be 
filed with, and all official communications in connection therewith 
addressed to, the International Expositions Staff, International Trade 
Administration, Department of Commerce, Washington, DC 20230.
    (b) Every application, exhibit, or enclosure, except where 
specifically waived by the Director, shall be in quadruplicate, duly 
authenticated and referenced.
    (c) Every application shall be in letter form and shall contain the 
date, address, and official designation of the applicant and shall be 
signed by an authorized officer or individual.
    (d) Every application, except where specifically waived by the 
Director, shall be accompanied by the following exhibits:

    1. Exhibit No. 1. A study setting forth in detail the purpose for 
the exposition, including any historical, geographic, or other 
significant event of the host city, State, or region related to the 
exposition.
    2. Exhibit No. 2. An exposition plan setting forth in detail (i) the 
theme of the exposition and the ``storyline'' around which the entire 
exposition is to be developed; (ii) whatever preliminary architectural 
and design plans are available on the physical layout of the site plus 
existing and projected structures; (iii) the type of participation 
proposed in the exposition (e.g., foreign and domestic exhibits); (iv) 
cultural, sports, and special events planned; (v) the proposed BIE 
category of the event and evidence of its conformity to the regulations 
of the BIE (a copy of these regulations can be obtained from the 
Director upon request); (vi) the proposed steps that will be taken to 
protect foreign exhibitors under the BIE model rules and regulations and 
(vii) in writing commit its organization to the completion of the 
exposition.
    3. Exhibit No. 3. Documentary evidence of State, regional and local 
support (e.g., letters to the applicant from business and civic 
leadership of the region, pledging assistance and/or financing; State 
and/or municipal resolutions, acts, or appropriations; referendums on 
bond issues, and others).
    4. Exhibit No. 4. An organization chart of the exposition management 
structure (actual or proposed) of the applicant, including description 
of the functions, duties and responsibilities of each official position 
along with bibliographic material, including any professional experience 
in the fields of architecture, industrial design, engineering, labor 
relations, concession management, interpretative theme planning, exhibit 
development, etc., on principal officers, if available. (The principal 
officials should also be prepared to submit subsequent individual 
statements under oath of their respective financial holdings and other 
interests.)

[[Page 32]]

    5. Exhibit No. 5. A statement setting forth in detail (i) the 
availability of visitor services in existence or projected to 
accommodate tourists at the exposition (e.g., number of hotel and motel 
units, number and type of restaurants, health facilities, etc.); (ii) 
evidence of adequate transportation facilities and accessibility of the 
host city to large groups of national and international visitors (e.g., 
number and schedule of airlines, bus lines, railroads, and truck lines 
serving the host city); and (iii) plans to promote the exposition as a 
major national and international tourist destination.
    6. Exhibit No. 6. A statement setting forth in detail the 
applicant's plans for acquiring title to, or the right to occupy and use 
real property, other than that owned by the applicant or by the United 
States, essential for implementing the project or projects covered by 
the application. If the applicant, at the time of filing the 
application, has acquired title to the real property, he should submit a 
certified copy of the deed(s). If the applicant, at the time of filing 
the application, has by easement, lease, franchise, or otherwise 
acquired the right to occupy and use real property owned by others, he 
should submit a certified copy of the appropriate legal instrument(s) 
evidencing this right.
    7. Exhibit No. 7. A statement of the latest prevailing hourly wage 
rates for construction workers in the host city (e.g., carpenters, 
cement masons, sheet metal workers, etc.).
    8. Exhibit No. 8. Information on attitudes of labor leaders as to 
``no strike'' agreements during the development and operation of the 
exposition. Actual ``no strike'' pledges are desirable.
    9. Exhibit No. 9. A detailed study conducted and certified by a 
nationally recognized firm(s) in the field of economics, accounting, 
management, etc., setting forth (i) proposed capital investment cost; 
cash flow projections; and sources of financing available to meet these 
costs, including but not limited to funds from State and municipal 
financing, general obligation and/or general revenue bond issues, and 
other public or private sources of front-end capital; (ii) assurances 
that the ``guaranteed financing'' is or will be available in accordance 
with Section 2(a)(1)(b) of Pub. L. 91-269; (iii) the projected expenses 
for managing the exposition; (iv) projected operational revenues broken 
down to include admissions, space rental, concessions, service fees and 
miscellaneous income; and (v) cost-benefit projections. These should be 
accompanied by a statement of the firm that the needed cash flow, 
sources of funding, and revenue projections are realistic and 
attainable.
    10. Exhibit No. 10. A description of the exposition implementation 
time schedule and the management control system to be utilized to 
implement the time schedule (e.g., PERT, CPM, etc.).
    11. Exhibit No. 11. A statement setting forth in detail the public 
relations, publicity and other promotional plans of the applicant. For 
example, the statement could include: (i) an outline of the public 
relations/publicity program broken down by percentage allocations among 
the various media; (ii) a public relations/publicity program budget with 
the various calendar target dates for completion of phases prior to the 
opening, the opening and post-opening of the exposition; and (iii) 
protocol plans for U.S. and foreign dignitaries, as well as for special 
ceremonies and events and how these plans are to be financed.
    12. Exhibit No. 12. A study setting forth in detail the benefits to 
be derived from the exposition and residual use plans. For example, the 
study might include: (i) extent of immediate economic benefits for the 
city/region/nation in proportion to total investment in the exposition; 
(ii) extent of long range economic benefits for the city/region/nation 
in proportion to total investment in the exposition; and (iii) extent of 
intangible (social, psychological, ``good will'') benefits accruing to 
the city/region/nation including the solution or amelioration of any 
national/local problems.
    13. Exhibit No. 13. A statement committing the applicant to develop 
and complete an environmental impact statement which complies with 
section 102(2)(c) of the National Environmental Policy Act of 1969 (83 
Stat. 852; 42 U.S.C. 4331). Sample copies of environmental impact 
statements may be obtained from the Director. Prior to the Director's 
submitting a report to the Secretary containing his findings on the 
application for Federal recognition pursuant to Sec. 310.4, the 
applicant must have completed the required Environmental Impact 
Statement (EIS), in a form acceptable to the Department of Commerce.
    14. Exhibit No. 14. A detailed set of general and special rules and 
regulations governing the exposition and participation in it, which, if 
Federal recognition is obtained, can be used by the Federal Government 
in seeking BIE registration.
    15. Exhibit No. 15. A statement from the applicant agreeing to 
accept a U.S. Commissioner General, appointed by the President. He will 
be recognized as the senior Federal official and titular head of the 
exposition, final arbiter in disputes with exhibitors, and the official 
contact with foreign governments. The applicant should also agree to 
furnish the Commissioner General and his staff with suitable facilities 
in the host community during the development and operation of the 
exposition.

[40 FR 34107, Aug. 14, 1975. Redesignated and amended at 46 FR 57457, 
Nov. 24, 1981]

[[Page 33]]



Sec. 310.4  Action on application.

    (a) Upon receipt of an application, the Director will analyze the 
application and all accompanying exhibits to insure compliance with the 
provisions of Sec. 310.3 and report his findings with respect thereto to 
the Secretary.
    (b) If more than one applicant applies for Federal recognition for 
expositions to be held within three years or less of each other, the 
applications will be reviewed concurrently by the Director. The 
following standards will be considered in determining which if any of 
the competing applicants will be recommended for Federal recognition:
    (1) The order of receipt of the applications by the Director, 
complete with all exhibits required by Sec. 310.3.
    (2) The financial plans of the applications. Primary consideration 
will be given to those applications which do not require Federal 
financing for exposition development. This does not extend to funding 
for a Federal pavilion, if one is desired.
    (3) The relative merit of the applications in terms of their 
qualifications as tourism destination sites, both with respect to 
existing facilities and those facilities planned for the proposed 
exposition. If necessary, to assist in making this determination, the 
Director will appoint a panel of travel industry experts representing 
tour developers, the transportation, entertainment and hotel/motel 
industries for the purpose of studying the competing applications and 
reporting to the Director its views as to which proposed site best meets 
the above criteria. If such a panel is deemed necessary, the provisions 
of the Federal Advisory Committee Act (86 Stat. 770, 5 U.S.C. App. I) 
will be applicable.
    (c) In analyzing the applications, the Director may hold public 
hearings with the objective of clarifying issues that might be raised by 
the application. If desired, the Director may utilize the services of an 
examiner.
    (d) If the Director, in his discretion, decides to hold a public 
hearing, notice of such hearing shall be published in the Federal 
Register, and a copy of the notice shall be furnished to local 
newspapers. The notice shall state the subject to be considered and when 
and where the hearing will be held, specifically designating the date, 
hour, and place.
    (e) The following general procedure shall govern the conduct of 
public hearings: (1) Stenographic minutes of the proceedings shall be 
made; (2) the names and addresses of all parties present or represented 
at the hearing shall be recorded; and (3) the Director or Examiner shall 
read aloud for the record and for the benefit of the public such parts 
of the Act and of these regulations as bear on the application. He shall 
also read aloud for the record and for the benefit of the public such 
other important papers, or extracts therefrom, as may be necessary for a 
full understanding of the issues which require clarification. The 
Director or Examiner shall impress upon the parties in attendance at the 
public hearing, and shall specifically state at the commencement of the 
hearing, that the hearing is not adversary in nature and that the sole 
objective thereof is to clarify issues that might have been raised by 
the application.
    (f) Statements of interested parties may be presented orally at the 
hearing, or submitted in writing for the record.
    (g) Within six months after receipt of a fully completed application 
and/or the adjournment of the public hearing, the Director shall submit 
his report containing his findings on the application to the Secretary.



Sec. 310.5  Report of the Secretary on Federal recognition.

    If the Director's report recommends Federal recognition, the 
Secretary, within a reasonable time, shall submit a report to the 
President.
    (a) The Secretary's report shall include: (1) An evaluation of the 
purposes and reasons for the exposition; and (2) a determination as to 
whether guaranteed financial and other support has been secured by the 
exposition from affected State and local governments and from business 
and civic leaders of the region and others in amounts sufficient to 
assure the successful development and progress of the exposition.
    (b) Based on information from, and coordination with the Department 
of Commerce the Secretary of State shall also file a report with the 
President

[[Page 34]]

that the exposition qualifies for recognition by the BIE.



Sec. 310.6  Recognition by the President.

    If the President concurs in the favorable reports from the 
Secretaries of State and Commerce, he may grant Federal recognition to 
the exposition by indicating his concurrence to the two Secretaries and 
authorizing them to seek BIE registration.



Sec. 310.7  Statement for Federal participation.

    If Federal participation in the exposition, as well as Federal 
recognition thereof is desired, the applicant shall in a statement to 
the Director outline the nature of the Federal participation envisioned, 
including whether construction of a Federal pavilion is contemplated. 
(It should be noted, however, that before Federal participation can be 
authorized by the Congress under the Act, the exposition must have (i) 
met the criteria for Federal recognition and be so recognized, and (ii) 
been registered by the BIE. Although applicants need not submit such a 
statement until these prerequisites are satisfied, they are encouraged 
to do so.) Where the desired Federal participation includes a request 
for construction of a Federal pavilion, the statement shall be 
accompanied by the following exhibits:

    1. Exhibit No. 1. A survey drawing of the proposed Federal pavilion 
site, showing its areas and boundaries, its grade elevations, and 
surface and subsoil conditions.
    2. Exhibit No. 2. Evidence of resolutions, statutes, opinions, etc., 
as to the applicant's ability to convey by deed the real property 
comprising the proposed Federal pavilion site in fee-simple and free of 
liens and encumbrances to the Federal Government. The only consideration 
on the part of the Government for the conveyance of the property shall 
be the Government's commitment to participate in the exposition.
    3. Exhibit No. 3. A certified copy of the building code which would 
be applicable should a pavilion be constructed.
    4. Exhibit No. 4. An engineering drawing showing the accessibility 
of the proposed pavilion site to utilities (e.g., sewerage, water, gas, 
electricity, etc.).
    5. Exhibit No. 5. A statement setting forth the security and 
maintenance and arrangements which the applicant would undertake (and an 
estimate of their cost) while a pavilion is under construction.
    6. Exhibit No. 6. A study pursuant to Executive Order 11296 of 
August 10, 1966, entitled ``Evaluation of flood hazard in locating 
Federally owned or financed buildings, roads and other facilities and in 
disposing of Federal land and properties.''



Sec. 310.8  Proposed plan for Federal participation.

    (a) Upon receipt of the statement, and the exhibits referred to in 
Sec. 310.7, the Director shall prepare a proposed plan in cooperation 
with other interested departments and agencies of the Federal Government 
for Federal participation in the exposition.
    (b) In preparing the proposed plan for Federal participation in the 
exposition, the Director shall conduct a feasibility study of Federal 
participation including cost estimates by utilizing the services within 
the Federal Government, professional consultants and private sources as 
required and in accordance with applicable laws and regulations.
    (c) The Director, in the proposed plan for Federal participation in 
the exposition, shall determine whether or not a Federal pavilion should 
be constructed and, if so, whether or not the Government would have need 
for a permanent structure in the area of the exposition or whether a 
temporary structure would be more appropriate.
    (d) The Director shall seek the advice of the Administrator of the 
General Services Administration to the extent necessary in carrying out 
the proposed plan for Federal participation in the exposition.
    (e) Upon completion of the proposed plan for Federal participation 
in the exposition, the Director shall submit the plan to the Secretary.



Sec. 310.9  Report of the Secretary on Federal participation.

    Upon receipt of the Director's proposed plan for Federal 
participation, the Secretary, within a reasonable time, shall submit a 
report to the President including: (a) Evidence that the exposition has 
met the criteria for Federal recognition and has been so recognized; (b) 
a statement that the exposition has been registered by the BIE; and (c) 
a proposed plan for the

[[Page 35]]

Federal participation referred to in Sec. 310.8.



PART 315--DETERMINATION OF BONA FIDE MOTOR-VEHICLE MANUFACTURER--Table of Contents




Sec.
315.1  Scope and purpose.
315.2  Definitions.
315.3  Application.
315.4  Determination by the Under Secretary.
315.5  Maintenance and publication of a list of bona fide motor-vehicle 
          manufacturers.

    Authority: Headnote 2, subpart B, part 6, schedule 6, Tariff 
Schedules of the United States (19 U.S.C. 1202); sec. 501(2) of Title V, 
Automotive Products Trade Act of 1965 (19 U.S.C. 2031).

    Source: 45 FR 42214, June 23, 1980. Redesignated at 53 FR 52115, 
Dec. 27, 1988, unless otherwise noted.



Sec. 315.1  Scope and purpose.

    The purpose of this part is to set forth regulations implementing 
headnote 2 to subpart B, part 6, schedule 6 of the Tariff Schedules of 
the United States as proclaimed by Proclamation No. 3682 of October 21, 
1965 (3 CFR 140-65 Comp.). issued pursuant to the Automotive Products 
Trade Act of 1965 (19 U.S.C. 2031), by establishing a procedure under 
which a person may apply to be determined a bona fide motor-vehicle 
manufacturer. Under headnote 2 to subpart B, part 6, schedule 6 of the 
Tariff Schedules of the United States, whenever the Secretary of 
Commerce has determined a person to be a bona fide motor-vehicle 
manufacturer, such person is eligible to obtain duty-free importation of 
certain Canadian articles and to issue certain orders, contracts, or 
letters of intent under or pursuant to which other persons, not 
themselves bona fide motor-vehicle manufacturers, may obtain duty-free 
treatment for such Canadian articles. The responsibilities of Secretary 
of Commerce relating to the development, maintenance and publication of 
a list of bona fide motor-vehicle manufacturers and the authority to 
promulgate rules and regulations pertaining thereto have been delegated 
to Under Secretary for International Trade, Department of Commerce 
pursuant to Department of Commerce Organization Order 40-1, Amendment 9 
of January 22, 1984 (49 FR 4538).

[45 FR 42214, June 23, 1980. Redesignated and amended at 53 FR 52115, 
Dec. 27, 1988]



Sec. 315.2  Definitions.

    For the purpose of the regulations in this part and the forms issued 
to implement it:
    (a) Act means the Automotive Products Trade Act of 1965 (79 Stat. 
1016, 19 U.S.C. 2001 through 2033).
    (b) Under Secretary means Under Secretary for International Trade of 
the Department of Commerce, or such official as may be designated by the 
Under Secretary to act in his or her behalf.
    (c) Motor vehicle means a motor vehicle of a kind described in item 
692.05 or 692.10 of subpart B, part 6, schedule 6, of the Tariff 
Schedules of the United States (excluding an electric trolley bus and a 
three-wheeled vehicle) or an automotive truck tractor.
    (d) Bona fide motor-vehicle manufacturer means a person who upon 
application to the Under Secretary is determined by the Under Secretary 
to have produced no fewer than 15 complete motor vehicles in the United 
States during the 12-month period preceding the date certified in the 
application, and to have had as of such date installed capacity in the 
United States to produce 10 or more complete motor vehicles per 40-hour 
week. A person shall only be regarded as having had the capacity to 
produce a complete motor vehicle if his operation included the assembly 
of two or more major components (e.g., the attachment of a body to a 
chassis) to create a new motor vehicle ready for use.
    (e) Person includes any individual, corporation, partnership, 
association, company, or any kind of organization.
    (f) United States includes only the States, the District of Columbia 
and Puerto Rico.

[45 FR 42214, June 23, 1980. Redesignated and amended at 53 FR 52115, 
Dec. 27, 1988]



Sec. 315.3  Application.

    Any person in the United States desiring to be determined a bona 
fide motor vehicle manufacturer shall apply to the Under Secretary by 
filing

[[Page 36]]

two copies of Form BIE-3 in accordance with the instructions set forth 
on the form and this part. Application forms may be obtained from the 
Under Secretary, District offices of the U.S. Department of Commerce, or 
from U.S. Collectors of Customs, and should be mailed or delivered to 
the:

U.S. Department of Commerce, International Trade Administration, Office 
of Automotive Industry Affairs--APTA, 14th and Constitution Avenue, NW., 
Room 4036, Washington, DC 20230.

[45 FR 42214, June 23, 1980. Redesignated and amended at 53 FR 52115, 
Dec. 27, 1988]



Sec. 315.4  Determination by the Under Secretary.

    (a) As soon as practicable after receipt of the application, the 
Under Secretary shall determine whether an applicant has produced no 
fewer than 15 complete motor vehicles in the United States during the 
12-month period preceding the date certified in the application and as 
of such date, had installed capacity in the United States to produce 10 
or more complete motor vehicles per 40 hour week. The Under Secretary 
may request such additional data from an applicant as he may deem 
appropriate to establish whether the applicant has satisfied the 
requirements of this part.
    (b) A determination by the Under Secretary under this part shall be 
effective for a 12-month period to begin on the date as of which the 
Under Secretary determines that the applicant qualified under this part. 
Within 60 days prior to the termination of such period, a bona fide 
motor vehicle manufacturer may apply for another determination under 
this part.
    (c) The Under Secretary will promptly notify each applicant in 
writing of the final action taken on his application.

[45 FR 42214, June 23, 1980. Redesignated and amended at 53 FR 52115, 
Dec. 27, 1988]



Sec. 315.5  Maintenance and publication of a list of bona fide motor-vehicle manufacturers.

    The Under Secretary shall maintain and publish from time to time in 
the Federal Register, a list of the names and addresses of bona fide 
motor vehicle manufacturers, and the effective dates from each 
determination.

[45 FR 42214, June 23, 1980. Redesignated and amended at 53 FR 52115, 
Dec. 27, 1988]



PART 325--EXPORT TRADE CERTIFICATES OF REVIEW--Table of Contents




Sec.
325.1  Scope.
325.2  Definitions.
325.3  Applying for a certificate of review.
325.4  Calculating time periods.
325.5  Issuing the certificate.
325.6  Publishing notices in the Federal Register.
325.7  Amending the certificate.
325.8  Expediting the certification process.
325.9  Reconsidering an application that has been denied.
325.10  Modifying or revoking a certificate.
325.11  Judicial review.
325.12  Returning the applicant's documents.
325.13  Nonadmissibility in evidence.
325.14  Submitting reports.
325.15  Relinquishing a certificate.
325.16  Protecting confidentiality of information.
325.17  Waiver.

    Authority: Title III of the Export Trading Company Act, Pub. L. 97-
290 (96 Stat. 1240-1245, 15 U.S.C. 4011-4021).

    Source: 50 FR 1806, Jan. 11, 1985, unless otherwise noted.



Sec. 325.1  Scope.

    This part contains regulations for issuing export trade certificates 
of review under title III of the Export Trading Company Act, Pub. L. 97-
290. A holder of a certificate of review and the members named in the 
certificate will have specific protections from private treble damage 
actions and government criminal and civil suits under U.S. Federal and 
State antitrust laws for the export conduct specified in the certificate 
and carried out during its effective period in compliance with its terms 
and conditions.



Sec. 325.2  Definitions.

    As used in this part:
    (a) Act means title III of Pub. L. 97-290, Export Trade Certificates 
of Review.
    (b) Antitrust laws means the antitrust laws, as the term is defined 
in the first section of the Clayton Act (15 U.S.C.

[[Page 37]]

12), section 5 of the Federal Trade Commission Act (15 U.S.C. 45) (to 
the extent that section 5 prohibits unfair methods of competition), and 
any State antitrust or unfair competition law.
    (c) Applicant means the person or persons who submit an application 
for a certificate.
    (d) Application means an application for a certificate to be issued 
under the Act.
    (e) Attorney General means the Attorney General of the United States 
or his designee.
    (f) Certificate means a certificate of review issued pursuant to the 
Act.
    (g) Control means either (1) holding 50 percent or more of the 
outstanding voting securities of an issuer; or (2) having the 
contractual power presently to designate a majority of the directors of 
a corporation, or in the case of an unincorporated entity, a majority of 
the individuals who exercise similar functions.
    (h) Controlling entity means an entity which directly or indirectly 
controls a member or applicant, and is not controlled by any other 
entity.
    (i) Export conduct means specified export trade activities and 
methods of operation carried out in specified export trade and export 
markets.
    (j) Export trade means trade or commerce in goods, wares, 
merchandise, or services that are exported, or are in the course of 
being exported, from the United States or any territory of the United 
States to any foreign nation.
    (k) Export trade activities means activities or agreements in the 
course of export trade.
    (l) Member means an entity (U.S. or foreign) or a person which is 
seeking protection under the certificate with the applicant. A member 
may be a partner in a partnership or a joint venture; a shareholder of a 
corporation; or a participant in an association, cooperative, or other 
form of profit or nonprofit organization or relationship, by contract or 
other arrangement.
    (m) Method of operation means any method by which an applicant or 
member conducts or proposes to conduct export trade.
    (n) Person means an individual who is a resident of the United 
States; a partnership that is created under and exists pursuant to the 
laws of any State or of the United States; a State or local government 
entity; a corporation, whether it is organized as a profit or nonprofit 
corporation, that is created under and exists pursuant to the laws of 
any State or of the United States; or any association or combination, by 
contract or other arrangement, between or among such persons.
    (o) Secretary means the Secretary of Commerce or his designee.
    (p) Services means intangible economic output, including, but not 
limited to--
    (1) business, repair, and amusement services,
    (2) management, legal, engineering, architectural, and other 
professional services, and
    (3) financial, insurance, transportation, informational and any 
other data-based services, and communication services.
    (q) United States means the fifty States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, the Virgin 
Islands, American Samoa, Guam, the Commonwealth of the Northern Mariana 
Islands, and the Trust Territory of the Pacific Islands.



Sec. 325.3  Applying for a certificate of review.

    (a) Place of filing. The applicant shall submit an original and two 
copies of a completed application form (ITA 4093-P, OMB control number 
0625-0125) by personal delivery during normal business hours or by first 
class mail to the Office of Export Trading Company Affairs, Room 5618, 
International Trade Administration, Department of Commerce, Washington, 
DC 20230. Although not required, the applicant should consider using 
registered mail or some other delivery method that provides evidence of 
receipt.
    (b) Contents of application. Any person may submit an application 
for certification. The application shall contain, where applicable, the 
information listed below. Some information, in particular the 
identification of goods or services that the applicant exports or 
proposes to export, is requested in a

[[Page 38]]

certain form (Standard Industrial Classification [SIC] numbers) if 
reasonably available. Where information does not exist in this form, the 
applicant may satisfy the request for information by providing it in 
some other convenient form. If the applicant is unable to provide any of 
the information requested or if the applicant believes that any of the 
information requested would be both burdensome to obtain and unnecessary 
for a determination on the application, the applicant should state that 
the information is not being provided or is being provided in lesser 
detail, and explain why.
    (1) Name and principal address of the applicant and of its 
controlling entity, if any. Include the name, title, address, telephone 
number, and relationship to the applicant of each individual to whom the 
Secretary should address correspondence.
    (2) The name and principal address of each member, and of each 
member's controlling entity, if any.
    (3) A copy of any legal instrument under which the applicant is 
organized or will operate. Include copies, as applicable, of its 
corporate charter, bylaws, partnership, joint venture, membership or 
other agreements or contracts under which the applicant is organized.
    (4) A copy of the applicant's most recent annual report, if any, and 
that of its controlling entity, if any. To the extent the information is 
not included in the annual report, or other documents submitted in 
connection with the application, a description of the applicant's 
domestic (including import) and export operations, including the nature 
of its business, the types of products or services in which it deals, 
and the places where it does business. This description may be 
supplemented by a chart or table.
    (5) A copy of each member's most recent annual report, if any, and 
that of its controlling entity, if any. To the extent the information is 
not included in the annual report, or other documents submitted in 
connection with the application, a description of each member's domestic 
(including import) and export operations, including the nature of its 
business, the types of products or services in which it deals, and the 
places where it does business. This description may be supplemented by a 
chart or table.
    (6) The names, titles, and responsibilities of the applicant's 
directors, officers, partners and managing officials, and their business 
affiliations with other members or other businesses that produce or sell 
any of the types of goods or services described in paragraph (b)(7) of 
this section.
    (7)(i) A description of the goods or services which the applicant 
exports or proposes to export under the certificate of review. This 
description should reflect the industry's customary definitions of the 
products and services.
    (ii) If it is reasonably available, an identification of the goods 
or services according to the Standard Industrial Classification (SIC) 
number. Goods should normally be identified according to the 7-digit 
level. Services should normally be identified at the most detailed SIC 
level available.
    (iii) The foreign geographic areas to which the applicant and each 
member export or intend to export their goods and services.
    (8) For each class of the goods, wares, merchandise or services 
described in paragraph (b)(7) of this section:
    (i) The principal geographic area or areas in the United States in 
which the applicant and each member sell their goods and services.
    (ii) For their previous two fiscal years, the dollar value of the 
applicant's and each member's (A) total domestic sales, if any; and (B) 
total export sales, if any. Include the value of the sales of any 
controlling entities and all entities under their control.
    (9) For each class of the goods, wares, merchandise or services 
described in paragraph (b)(7) of this section, the best information or 
estimate accessible to the applicant of the total value of sales in the 
United States by all companies for the last two years. Identify the 
source of the information or the basis of the estimate.
    (10) A description of the specific export conduct which the 
applicant seeks to have certified. Only the specific export conduct 
described in the application will be eligible for certification. For 
each item, the applicant should state the antitrust concern, if any,

[[Page 39]]

raised by that export conduct. (Examples of export conduct which 
applicants may seek to have certified include the manner in which goods 
and services will be obtained or provided; the manner in which prices or 
quantities will be set; exclusive agreements with U.S. suppliers or 
export intermediaries; territorial, quantity, or price agreements with 
U.S. suppliers or export intermediaries; and restrictions on membership 
or membership withdrawal. These examples are given only to illustrate 
the type of export conduct which might be of concern. The specific 
activities which the applicant may wish to have certified will depend on 
its particular circumstances or business plans.).
    (11) If the export trade, export trade activities, or methods of 
operation for which certification is sought will involve any agreement 
or any exchange of information among suppliers of the same or similar 
products or services with respect to domestic prices, production, sales, 
or other competitively sensitive business information, specify the 
nature of the agreement or exchange of information. Such information 
exchanges are not necessarily impermissible and may be eligible for 
certification. Whether or not certification is sought for such 
exchanges, this information is necessary to evaluate whether the conduct 
for which certification is sought meets the standards of the Act.
    (12) A statement of whether the applicant intends or reasonably 
expects that any exported goods or services covered by the proposed 
certificate will re-enter the United States, either in their original or 
modified form. If so, identify the goods or services and the manner in 
which they may re-enter the U.S.
    (13) The names and addresses of the suppliers of the goods and 
services to be exported (and the goods and services to be supplied by 
each) unless the goods and services to be exported are to be supplied by 
the applicant and/or its members.
    (14) A proposed non-confidential summary of the export conduct for 
which certification is sought. This summary may be used as the basis for 
publication in the Federal Register.
    (15) Any other information that the applicant believes will be 
necessary or helpful to a determination of whether to issue a 
certificate under the standards of the Act.
    (16) (Optional) A draft proposed certificate.
    (c) The applicant must sign the application and certify that (1) 
each member has authorized the applicant to submit the application, and 
(2) to the best of its belief the information in the application is 
true, correct, and fully responsive.
    (d) Conformity with regulations. No application shall be deemed 
submitted unless it complies with these regulations. Applicants are 
encouraged to seek guidance and assistance from the Department of 
Commerce in preparing and documenting their applications.
    (e) Review and acceptance. The Secretary will stamp the application 
on the day that it is received in the Office of Export Trading Company 
Affairs. From that date, the Secretary will have five working days to 
decide whether the application is complete and can be deemed submitted 
under the Act. On the date on which the application is deemed submitted, 
the Secretary will stamp it with that date and notify the applicant that 
the application has been accepted for review. If the application is not 
accepted for review, the Secretary shall advise the applicant that it 
may file the application again after correcting the deficiencies that 
the Secretary has specified. If the Secretary does not take action on 
the application within the five-day period, the application shall be 
deemed submitted as of the sixth day.
    (f) Withdrawal of application. The applicant may withdraw an 
application by written request at any time before the Secretary has 
determined whether to issue a certificate. An applicant who withdraws an 
application may submit a new application at any time.
    (g) Supplemental information. After an application has been deemed 
submitted, if the Secretary or the Attorney General finds that 
additional information is necessary to make a determination on the 
application, the Secretary will ask the applicant in writing to supply 
the supplemental information. The running of the time period for a

[[Page 40]]

determination on the application will be suspended from the date on 
which the request is sent until the supplemental information is received 
and is considered complete. The Secretary shall promptly decide whether 
the supplemental information is complete, and shall notify the applicant 
of his decision. If the information is being sought by the Attorney 
General, the supplemental information may be deemed complete only if the 
Attorney General concurs. If the applicant does not agree to provide the 
additional information, or supplies information which the Secretary or 
the Attorney General considers incomplete, the Secretary and the 
Attorney General will decide whether the information in their possession 
is sufficient to make a determination on the application. If either the 
Secretary or the Attorney General considers the information in their 
possession insufficient, the Secretary may make an additional request or 
shall deny the application. If they consider the information in their 
possession sufficient to make a determination on the application, the 
Secretary shall notify the applicant that the time period for a 
determination has resumed running.

(Information collection requirements in paragraph (a) approved by the 
Office of Management and Budget under control number 0625-0125)



Sec. 325.4  Calculating time periods.

    (a) When these regulations require action to be taken within a fixed 
time period, and the last day of the time period falls on a non-working 
day, the time period shall be extended to the next working day.
    (b) The day after an application is deemed submitted shall be deemed 
the first of the days within which the Secretary must make a 
determination on the application.



Sec. 325.5  Issuing the certificate.

    (a) Time period. The Secretary shall determine whether to issue a 
certificate within ninety days after the application is deemed submitted 
(excluding any suspension pursuant to Sec. 325.3(f) of the time period 
for making a determination). If the Secretary or the Attorney General 
considers it necessary, and the applicant agrees, the Secretary may take 
up to an additional thirty days to determine whether to issue a 
certificate.
    (b) Determination. The Secretary shall issue a certificate to the 
applicant if he determines, and the Attorney General concurs, that the 
proposed export trade, export trade activities and methods of operation 
will--
    (1) Result in neither a substantial lessening of competition or 
restraint of trade within the United States nor a substantial restraint 
of the export trade of any competitor of the applicant;
    (2) Not unreasonably enhance, stabilize, or depress prices within 
the United States of the class of the goods, wares, merchandise or 
services exported by the applicant;
    (3) Not constitute unfair methods of competition against competitors 
who are engaged in the export of goods, wares, merchandise or services 
of the class exported by the applicant; and
    (4) Not include any act that may reasonably be expected to result in 
the sale for consumption or resale within the United States of the 
goods, wares, merchandise, or services exported by the applicant.
    (c) Concurrence of the Attorney General. (1) Not later than seven 
days after an application is deemed submitted, the Secretary shall 
deliver to the Attorney General a copy of the application, any 
information submitted in connection with the application, and any other 
relevant information in his possession. The Secretary and the Attorney 
General shall make available to each other copies of other relevant 
information that was obtained in connection with the application, unless 
otherwise prohibited by law.
    (2) Not later than thirty days before the day a determination on the 
application is due, the Secretary shall deliver a proposed certificate 
to the Attorney General for discussion and comment. If the Attorney 
General does not agree that the proposed certificate may be issued, he 
shall, not later than ten days before the day a determination on the 
application is due, so advise the Secretary and state the reasons for 
the disagreement. The Secretary with the concurrence of the Attorney 
General,

[[Page 41]]

may modify or revise the proposed certificate to resolve the objections 
and problems raised by the Attorney General, or deny the application.
    (3) If the Attorney General receives the proposed certification by 
the date specified in the preceding paragraph and does not respond 
within the time period specified in that paragraph, he shall be deemed 
to concur in the proposed certificate.
    (d) Content of certificate. The certificate shall specify the export 
conduct and all persons or entities which are protected from liability 
under the antitrust laws. The Secretary may certify the proposed export 
conduct contained in the application, in whole or in part, with such 
changes, modifications, terms, or conditions as are appropriate. If the 
Secretary intends to issue a certificate different from a draft 
certificate submitted by the applicant, the Secretary shall first 
consult with the applicant.
    (e) Certificate obtained by fraud. A certificate shall be void ab 
initio with respect to any export conduct for which a certificate was 
obtained by fraud.
    (f) Minimum thirty-day period. The Secretary may not issue a 
certificate until thirty days after the summary of the application is 
published in the Federal Register.



Sec. 325.6  Publishing notices in the Federal Register.

    (a) Within ten days after an application is deemed submitted, the 
Secretary shall deliver to the Federal Register a notice summarizing the 
application. The notice shall identify the applicant and each member and 
shall include a summary of the export conduct for which certification is 
sought. If the Secretary does not intend to publish the summary proposed 
by the applicant, he shall notify the applicant. Within twenty days 
after the date the notice is published in the Federal Register, 
interested parties may submit written comments to the Secretary on the 
application. The Secretary shall provide a copy of such comments to the 
Attorney General.
    (b) If a certificate is issued, the Secretary shall publish a 
summary of the certification in the Federal Register. If an application 
is denied, the Secretary shall publish a notice of denial. Certificates 
will be available for inspection and copying in the International Trade 
Administration Freedom of Information Records Inspection Facility.
    (c) If the Secretary initiates proceedings to revoke or modify a 
certificate, he shall publish a notice of his final determination in the 
Federal Register.
    (d) If the applicant requests reconsideration of a determination to 
deny an application, in whole or in part, the Secretary shall publish 
notice of his final determination in the Federal Register.



Sec. 325.7  Amending the certificate.

    An application for an amendment to a certificate shall be treated in 
the same manner as an original application. The application for an 
amendment shall set forth the proposed amendment(s) and the reasons for 
them. It shall contain any information specified in Sec. 325.3(b) that 
is relevant to the determination on the application for an amendment. 
The effective date of an amendment will be the date on which the 
application for the amendment was deemed submitted.



Sec. 325.8  Expediting the certification process.

    (a) Request for expedited action. (1) An applicant may be granted 
expedited action on its application in the discretion of the Secretary 
and the Attorney General. The Secretary and the Attorney General will 
consider such requests in light of an applicant's showing that it has a 
special need for a prompt decision. A request for expedited action 
should include an explanation of why expedited action is needed, 
including a statement of all relevant facts and circumstances, such as 
bidding deadlines or other circumstances beyond the control of the 
applicant, that require the applicant to act in less than ninety days 
and that have a significant impact on the applicant's export trade.
    (2) The Secretary shall advise the applicant within ten days after 
the application is deemed submitted whether it will receive expedited 
action. The Secretary may grant the request in whole or in part and 
process the remainder of the application through the normal

[[Page 42]]

procedures. Expedited action may be granted only if the Attorney General 
concurs.
    (b) Time period. The Secretary shall determine whether to issue a 
certificate to the applicant within forty-five days after the Secretary 
granted the request for expedited action, or within a longer period if 
agreed to by the applicant (excluding any suspension pursuant to 
Sec. 325.3(f) of the time period for making a determination). The 
Secretary may not issue a certificate until thirty days after the 
summary of the application is published in the Federal Register.
    (c) Concurrence of the Attorney General. (1) Not later than ten 
working days before the date on which a determination on the application 
is due, the Secretary shall deliver a proposed certificate to the 
Attorney General for discussion and comment. If the Attorney General 
does not agree that the proposed certificate may be issued, he shall, 
not later than five working days before the date on which a 
determination on the application is due, so advise the Secretary and 
state the reasons for the disagreement. The Secretary, with the 
concurrence of the Attorney General, may revise the proposed certificate 
to resolve the objections and problems raised by the Attorney General, 
or deny the application.
    (2) If the Attorney General receives the proposed certificate by the 
date specified in the preceding paragraph and does not respond within 
the time period specified in that paragraph, he shall be deemed to 
concur in the proposed certificate.

(Information collection requirements in paragraph (a)(1) approved by the 
Office of Management and Budget under control number 0625-0125)



Sec. 325.9  Reconsidering an application that has been denied.

    (a) If the Secretary determines to deny an application in whole or 
in part, he shall notify the applicant in writing of his decision and 
the reasons for his determination.
    (b) Within thirty days after receiving a notice of denial, the 
applicant may request the Secretary to reconsider his determination.
    (1) The request for reconsideration shall include a written 
statement setting forth the reasons why the applicant believes the 
decision should be reconsidered, and any additional information that the 
applicant considers relevant.
    (2) Upon the request of the applicant, the Secretary and the 
Attorney General will meet informally with the applicant and/or his 
representative to discuss the applicant's reasons why the determination 
on the application should be changed.
    (c) The Secretary shall consult with the Attorney General with 
regard to reconsidering an application. The Secretary may modify his 
original determination only if the Attorney General concurs.
    (d) The Secretary shall notify the applicant in writing of his final 
determination after reconsideration and of his reasons for the 
determination within thirty days after the request for reconsideration 
has been received.



Sec. 325.10  Modifying or revoking a certificate.

    (a) Action subject to modification or revocation. The Secretary 
shall revoke a certificate, in whole or in part, or modify it, as the 
Secretary or the Attorney General considers necessary, if:
    (1) The export conduct of a person or entity protected by the 
certificate no longer complies with the requirements set forth in 
Sec. 325.4(b);
    (2) A person or entity protected by the certificate fails to comply 
with a request for information under paragraph (b) of this section; or
    (3) The certificate holder fails to file a complete annual report.
    (b) Request for information. If the Secretary or the Attorney 
General has reason to believe that the export trade, export trade 
activities, or methods of operation of a person or entity protected by a 
certificate no longer comply with the requirements set forth in 
Sec. 325.4(b), the Secretary shall request any information that he or 
the Attorney General considers to be necessary to resolve the matter.
    (c) Proceedings for the revocation or modification of a 
certificate--(1) Notification letter. If, after reviewing the relevant 
information in their possession,

[[Page 43]]

it appears to the Secretary or the Attorney General that a certificate 
should be revoked or modified for any of the reasons set forth in 
paragraph (a) above, the Secretary shall so notify the certificate 
holder in writing. The notification shall be sent by registered or 
certified mail to the address specified in the certificate. The 
notification shall include a detailed statement of the facts, conduct, 
or circumstances which may warrant the revocation or modification of the 
certificate.
    (2) Answer. The certificate holder shall respond to the notification 
letter within thirty days after receiving it, unless the Secretary, in 
his discretion, grants a thirty day extension for good cause shown. The 
certificate holder shall respond specifically to the statement included 
with the notification letter and state in detail why the facts, conduct 
or circumstances described in the notification letter are not true, or 
if they are true, why they do not warrant the revoking or modifying of 
the certificate. If the certificate holder does not respond within the 
specified period, it will be considered an admission of the statements 
contained in the notification letter.
    (3) Resolution of factual disputes. Where material facts are in 
dispute, the Secretary and the Attorney General shall, upon request, 
meet informally with the certificate holder. The Secretary or the 
Attorney General may require the certificate holder to provide any 
documents or information that are necessary to support its contentions. 
After reviewing the statements of the certificate holder and the 
documents or information that the certificate holder has submitted, and 
upon considering other relevant documents or information in his 
possession, the Secretary shall make proposed findings of the factual 
matters in dispute. The Attorney General is not bound by the proposed 
findings.
    (4) Final determination. The Secretary and the Attorney General 
shall review the notification letter and the certificate holder's answer 
to it, the proposed factual findings made under paragraph (c)(3) of this 
section, and any other relevant documents or information in their 
possession. If, after review, the Secretary or the Attorney General 
determines that the export conduct of a person or entity protected by 
the certificate no longer complies with the standards set forth in 
Sec. 325.4(b), the Secretary shall revoke or modify the certificate as 
appropriate. If the Secretary or the Attorney General determines that 
the certificate holder has failed to comply with the request for 
information under paragraph (b) of this section, or has failed to file a 
complete annual report, and that the failure to comply or file should 
result in revocation of modification, the Secretary shall revoke or 
modify the certificate as appropriate. The determination will be final 
and will be issued to the certificate holder in writing. The notice to 
the certificate holder shall include a statement of the circumstances 
underlying and the reasons in support of the determination. If the 
Secretary determines to revoke or modify the certificate, the decision 
shall specify the effective date of the revocation or modification; this 
date must be at least thirty days but not more than ninety days after 
the Secretary notifies the certificate holder of his determination. The 
Secretary shall publish notice in the Federal Register of a revocation 
or modification or a decision not to revoke or modify.
    (d) Investigative information. In proceedings under this section, 
the Attorney General shall make available to the Secretary any 
information that has been obtained in response to Civil Investigative 
Demands issued under section 304(b)(3) of the Act. Unless prohibited by 
law, the Attorney General and the Secretary shall also make available to 
each other any other information which each is relying upon under these 
proceedings.



Sec. 325.11  Judicial review.

    (a) Review of certain determinations. (1) Any person aggrieved by a 
final determination of the Secretary under Sec. 325.5, Sec. 325.7, 
Sec. 325.9, or Sec. 325.10 of these regulations may, within thirty days 
of the determination, bring an action in an appropriate district court 
of the United States to set aside the determination on the ground that 
it is erroneous. If a certificate is denied, the applicant may bring 
suit within thirty days after the notice of denial is published in the

[[Page 44]]

Federal Register, or, if the applicant seeks reconsideration, within 
thirty days after the Secretary publishes in the Federal Register notice 
of his determination after reconsideration.
    (b) For purposes of judicial review, determinations of the Secretary 
are final when notice is published in the Federal Register.
    (c) Record for judicial review. For purposes of judicial review, the 
record shall include all information presented to or obtained by the 
Secretary which had a bearing on the determination, the determination 
itself, the supporting statement setting forth the reasons for the 
determination, and the Attorney General's response to the Secretary 
indicating concurrence or nonconcurrence.
    (d) Limitation of judicial review. Except as provided in paragraph 
(a) of this section, no agency action taken under the Act shall be 
subject to judicial review.



Sec. 325.12  Returning the applicant's documents.

    (a) Upon the denial or withdrawal of an application for a 
certificate in its entirety, the applicant may request the return of all 
copies of the documents submitted by the applicant in connection with 
the application to the Department of Commerce or the Department of 
Justice. The applicant shall submit this request in writing to both the 
Secretary and the Attorney General.
    (b) The Secretary and the Attorney General shall return the 
documents to the applicant within thirty days after they receive the 
applicant's request.



Sec. 325.13  Nonadmissibility in evidence.

    If the Secretary denies, in whole or in part, an application for a 
certificate or for an amendment to a certificate, or revokes or amends a 
certificate, neither the negative determination nor the statement of 
reasons therefor shall be admissible in evidence in any administrative 
or judicial proceeding in support of any claim under the antitrust laws.



Sec. 325.14  Submitting reports.

    (a) Not later than each anniversary of a certificate's effective 
date, the Secretary shall notify the certificate holder of the 
information to be included in the annual report. This report shall 
contain any changes relevant to the matters specified in the 
certificate, an update of the information contained in the application 
brought current to the anniversary date, and any other information the 
Secretary considers appropriate, after consultation with the Attorney 
General.
    (b) Not later than forty-five days after each anniversary of a 
certificate's effective date, a certificate holder shall submit its 
annual report to the Secretary. The Secretary shall deliver a copy of 
the annual report to the Attorney General.
    (c) Failure to submit a complete annual report may be the basis for 
modification or revocation of a certificate.



Sec. 325.15  Relinquishing a certificate.

    A certificate holder may relinquish a certificate at any time 
through written notice to the Secretary. The certificate will cease to 
be effective on the day the Secretary receives the notice.



Sec. 325.16  Protecting confidentiality of information.

    (a) Any information that is submitted by any person under the Act is 
exempt from disclosure under the Freedom of Information Act (5 U.S.C. 
552).
    (b)(1) Except as authorized under paragraph (b)(3) of this section, 
no officer or employee of the United States shall disclose commercial or 
financial information submitted under this Act if the information is 
privileged or confidential, and if disclosing the information would 
cause harm to the person who submitted it.
    (2) A person submitting information shall designate the documents or 
information which it considers privileged or confidential and the 
disclosure of which would cause harm to the person submitting it. The 
Secretary shall endeavor to notify these persons of any requests or 
demands before disclosing any of this information.
    (3) An officer or employee of the United States may disclose 
information covered under paragraph (b)(1) of this section only under 
the following circumstances--

[[Page 45]]

    (i) Upon a request made by either House of Congress or a Committee 
of the Congress,
    (ii) In a judicial or administrative proceeding subject to issuance 
of an appropriate protective order,
    (iii) With the written consent of the person who submitted the 
information,
    (iv) When the Secretary considers disclosure of the information to 
be necessary for determining whether or not to issue, amend, or revoke a 
certificate, if--
    (A) The Secretary determines that a non-confidential summary of the 
information is inadequate; and
    (B) The person who submitted the information is informed of the 
intent to disclose the information, and has an opportunity to advise the 
Secretary of the potential harm which disclosure may cause,
    (v) In accordance with any requirement imposed by a statute of the 
United States.
    (c) In any judicial or administrative proceeding in which disclosure 
is sought from the Secretary or the Attorney General of any confidential 
or privileged documents or information submitted under this Act, the 
Secretary or Attorney General shall attempt to notify the party who 
submitted the information of the request or demand for disclosure. In 
appropriate circumstances the Secretary or Attorney General may seek or 
support an appropriate protective order on behalf of the party who 
submitted the documents or information.



Sec. 325.17  Waiver.

    The Secretary may waive any of the provisions of this part in 
writing for good cause shown, if the Attorney General concurs and if 
permitted by law.

[[Page 47]]



      CHAPTER IV--FOREIGN-TRADE ZONES BOARD, DEPARTMENT OF COMMERCE




  --------------------------------------------------------------------
Part                                                                Page
400             Regulations of the Foreign-Trade Zones Board

[[Page 48]]



PART 400--REGULATIONS OF THE FOREIGN-TRADE ZONES BOARD--Table of Contents




                    Subpart A--Scope and Definitions

Sec.
400.1  Scope.
400.2  Definitions.

                  Subpart B--Foreign-Trade Zones Board

400.11  Authority of the Board.
400.12  Responsibilities and authority of the Executive Secretary.
400.13  Board headquarters.

       Subpart C--Establishment and Modification of Zone Projects

400.21  Number and location of zones and subzones.
400.22  Eligible applicants.
400.23  Criteria for grants of authority for zones and subzones.
400.24  Application for zone.
400.25  Application for subzone.
400.26  Application for expansion or other modification to zone project.
400.27  Procedure for processing application.
400.28  Conditions, prohibitions and restrictions applicable to grants 
          of authority.
400.29  Application fees.

        Subpart D--Manufacturing and Processing Activity--Reviews

400.31  Manufacturing and processing activity; criteria.
400.32  Procedure for review of request for approval of manufacturing or 
          processing.
400.33  Restrictions on manufacturing and processing activity.

       Subpart E--Zone Operations and Administrative Requirements

400.41  Zone operations; general.
400.42  Requirements for commencement of operations in a zone project.
400.43  Restriction and prohibition of certain zone operations.
400.44  Zone-restricted merchandise.
400.45  Retail trade.
400.46  Accounts, records and reports.
400.47  Appeals to the Board from decisions of the Assistant Secretary 
          for Import Administration and the Executive Secretary.

           Subpart F--Notice, Hearings, Record and Information

400.51  Notice and hearings.
400.52  Official record; public access.
400.53  Information.

    Authority: Foreign-Trade Zones Act of June 18, 1934, as amended 
(Pub. L. 397, 73rd Congress, 48 Stat. 998-1003 (19 U.S.C. 81a-81u)).

    Source: 56 FR 50798, Oct. 8, 1991, unless otherwise noted.



                    Subpart A--Scope and Definitions



Sec. 400.1  Scope.

    (a) This part sets forth the regulations, including the rules of 
practice and procedure, of the Foreign-Trade Zones Board with regard to 
foreign-trade zones in the United States pursuant to the Foreign-Trade 
Zones Act of 1934, as amended (19 U.S.C. 81a-81u). It includes the 
substantive and procedural rules for the authorization of zones and the 
regulation of zone activity. The purpose of zones as stated in the Act 
is to ``expedite and encourage foreign commerce, and other purposes.'' 
The regulations provide the legal framework for accomplishing this 
purpose in the context of evolving U.S. economic and trade policy, and 
economic factors relating to international competition.
    (b) Part 146 of the regulations of the United States Customs Service 
(19 CFR part 146) governs zone operations, including the admission of 
merchandise into zones, zone activity involving such merchandise, and 
the transfer of merchandise from zones.
    (c) To the extent ``activated'' under Customs procedures in 19 CFR 
part 146, and only for the purposes specified in the Act (19 U.S.C. 
81c), zones are treated for purposes of the tariff laws and Customs 
entry procedures as being outside the Customs territory of the United 
States. Under zone procedures, foreign and domestic merchandise may be 
admitted into zones for operations such as storage, exhibition, 
assembly, manufacture and processing, without being subject to formal 
Customs entry procedures and payment of duties, unless and until the 
foreign merchandise enters Customs territory for domestic consumption. 
At that time, the importer ordinarily has a choice of paying duties 
either at the rate applicable to the foreign material in its condition 
as admitted into a zone, or if used in manufacturing or processing, to 
the emerging product. Quota restrictions do not

[[Page 49]]

normally apply to foreign goods in zones. The Board can deny or limit 
the use of zone procedures in specific cases on public interest grounds. 
Merchandise moved into zones for export (zone-restricted status) may be 
considered exported for purposes such as federal excise tax rebates and 
Customs drawback. Foreign merchandise (tangible personal property) 
admitted to a zone and domestic merchandise held in a zone for 
exportation are exempt from certain state and local ad valorem taxes (19 
U.S.C. 81o(e)). Articles admitted into zones for purposes not specified 
in the Act shall be subject to the tariff laws and regular entry 
procedures, including the payment of applicable duties, taxes, and fees.

[56 FR 50798, Oct. 8, 1991; 56 FR 56544, Nov. 5, 1991]



Sec. 400.2  Definitions.

    (a) Act means the Foreign-Trade Zones Act of 1934, as amended (19 
U.S.C. 81a-81u).
    (b) Board means the Foreign-Trade Zones Board, which consists of the 
Secretary of the Department of Commerce (chairman), the Secretary of the 
Treasury, and the Secretary of the Army, or their designated alternates.
    (c) Customs Service means the United States Customs Service of the 
Department of the Treasury.
    (d) District Director is the director of Customs for the Customs 
district in which a zone or proposed zone is located.
    (e) District Engineer is the engineer of the Department of the Army 
in whose district a zone or proposed zone is located.
    (f) Executive Secretary is the Executive Secretary of the Foreign-
Trade Zones Board.
    (g) Foreign-trade zone is a restricted-access site, in or adjacent 
to a Customs port of entry, operated pursuant to public utility 
principles under the sponsorship of a corporation granted authority by 
the Board and under supervision of the Customs Service.
    (h) Grant of authority is a document issued by the Board which 
authorizes a zone grantee to establish, operate and maintain a zone 
project or a subzone, subject to limitations and conditions specified in 
this part and in 19 CFR part 146. The authority to establish a zone 
includes the authority to operate and the responsibility to maintain it.
    (i) Manufacturing, as used in this part, means activity involving 
the substantial transformation of a foreign article resulting in a new 
and different article having a different name, character, and use.
    (j) Port of entry means a port of entry in the United States, as 
defined by part 101 of the regulations of the Customs Service (19 CFR 
part 101), or a user fee airport authorized under 19 U.S.C. 58b and 
listed in part 122 of the regulations of the Customs Service (19 CFR 
part 122).
    (k) Private corporation means any corporation, other than a public 
corporation, which is organized for the purpose of establishing a zone 
project and which is chartered for this purpose under a law of the state 
in which the zone is located.
    (l) Processing, when referring to zone activity, means any activity 
involving a change in condition of merchandise, other than 
manufacturing, which results in a change in the Customs classification 
of an article or in its eligibility for entry for consumption.
    (m) Public corporation means a state, a political subdivision 
(including a municipality) or public agency thereof, or a corporate 
municipal instrumentality of one or more states.
    (n) Regional Commissioner is the Regional Commissioner of Customs 
for the Customs region in which the zone is located.
    (o) State includes any state of the United States, the District of 
Columbia, and Puerto Rico.
    (p) Subzone means a special-purpose zone established as an adjunct 
to a zone project for a limited purpose.
    (q) Zone means a foreign-trade zone established under the provisions 
of the Act and these regulations. Where used in this part, the term also 
includes subzones, unless the context indicates otherwise.
    (r) Zone grantee is the corporate recipient of a grant of authority 
for a zone project. Where used in this part, the term grantee means zone 
grantee unless otherwise indicated.
    (s) Zone operator is a corporation, partnership, or person that 
operates a

[[Page 50]]

zone or subzone under the terms of an agreement with the zone grantee or 
an intermediary entity, with the concurrence of the District Director.
    (t) Zone project means the zone plan, including all of the zone and 
subzone sites that the Board authorizes a single grantee to establish.
    (u) Zone site means the physical location of a zone or subzone.
    (v) Zone user is a party using a zone under agreement with the zone 
grantee or operator.



                  Subpart B--Foreign-Trade Zones Board



Sec. 400.11  Authority of the Board.

    (a) In general. In accordance with the Act and procedures of this 
part, the Board has authority to:
    (1) Prescribe rules and regulations concerning zones;
    (2) Issue grants of authority for zones and subzones, and approve 
modifications to the original zone project;
    (3) Approve manufacturing and processing activity in zones and 
subzones as described in subpart D of this part;
    (4) Make determinations on matters requiring Board decisions under 
this part;
    (5) Decide appeals in regard to certain decisions of the Commerce 
Department's Assistant Secretary for Import Administration or the 
Executive Secretary;
    (6) Inspect the premises, operations and accounts of zone grantees 
and operators;
    (7) Require zone grantees to report on zone operations;
    (8) Report annually to the Congress on zone operations;
    (9) Restrict or prohibit zone operations;
    (10) Impose fines for violations of the Act and this part;
    (11) Revoke grants of authority for cause; and
    (12) Determine, as appropriate, whether zone activity is or would be 
in the public interest or detrimental to the public interest.
    (b) Authority of the Chairman of the Board. The Chairman of the 
Board (Secretary of the Department of Commerce) has the authority to:
    (1) Appoint the Executive Secretary of the Board;
    (2) Call meetings of the Board, with reasonable notice given to each 
member; and
    (3) Submit to the Congress the Board's annual report as prepared by 
the Executive Secretary.
    (c) Alternates. Each member of the Board will designate an alternate 
with authority to act in an official capacity for that member.
    (d) Determinations of the Board. (1) The determinations of the Board 
will be based on the majority vote of the members (or alternate members) 
of the Board, provided that a quorum, composed of the Secretaries of the 
Departments of Commerce and Treasury (or their alternates), is voting.
    (2) All votes will be recorded.
    (3) The Board will issue its determination in proceedings under the 
regulations in the form of a Board order.



Sec. 400.12  Responsibilities and authority of the Executive Secretary.

    The Executive Secretary has the following responsibilities and 
authority:
    (a) Represent the Board in administrative, regulatory, operational, 
and public affairs matters;
    (b) Serve as director of the Commerce Department's Foreign-Trade 
Zones staff;
    (c) Execute and implement orders of the Board;
    (d) Arrange meetings and direct circulation of action documents for 
the Board;
    (e) Arrange with other sections of the Department of Commerce, Board 
agencies and other governmental agencies for studies and comments on 
zone issues and proposals;
    (f) Maintain custody of the seal, records, files and correspondence 
of the Board, with disposition subject to the regulations of the 
Department of Commerce;
    (g) Issue notices on zone matters for publication in the Federal 
Register;
    (h) Determine subzone sponsorship questions as provided in 
Sec. 400.22(d);
    (i) Determine whether additional information is needed for 
evaluation of applications and other requests for decisions under this 
part, as provided for

[[Page 51]]

in various sections of this part, including Secs. 400.24, 400.25, and 
400.26;
    (j) Issue guidelines on information required for subzone 
applications under Sec. 400.25(a)(6);
    (k) Determine whether proposed modifications involve major changes 
under Sec. 400.26(a)(2);
    (l) Determine whether applications meet prefiling requirements under 
Sec. 400.27(b);
    (m) Direct processing of applications, including designation of 
examiners and scheduling of hearings under Secs. 400.27 and 400.32;
    (n) Authorize minor modifications to zone projects under 
Sec. 400.27(f);
    (o) Review changes in sourcing under Sec. 400.28(a)(3);
    (p) Direct monitoring of zone activity under Sec. 400.31(d);
    (q) Direct reviews and make recommendations on requests for 
manufacturing/processing approvals under Sec. 400.32(b);
    (r) Determine questions of scope under Sec. 400.32(c);
    (s) Accept rate schedules and determine their sufficiency under 
Sec. 400.42(b)(3);
    (t) Review and decide zone rate complaints cases under 
Sec. 400.42(b)(5);
    (u) Make recommendations in cases involving questions as to whether 
zone activity should be prohibited or restricted for public interest 
reasons, including reviews under Sec. 400.43;
    (v) Authorize under certain circumstances the return of ``zone-
restricted merchandise'' for entry into Customs territory under 
Sec. 400.44;
    (w) Authorize certain duty-paid retail trade under Sec. 400.45;
    (x) Determine the format for the annual reports of zone grantees to 
the Board and direct preparation of an annual report to Congress from 
the Board under Sec. 400.46(d); and
    (y) Designate an acting Executive Secretary.



Sec. 400.13  Board headquarters.

    The headquarters of the Board is located within the U.S. Department 
of Commerce (Herbert C. Hoover Building), Pennsylvania Avenue and 14th 
Street, NW., Washington, DC 20230, as part of the office of the Foreign-
Trade Zones staff.



       Subpart C--Establishment and Modification of Zone Projects



Sec. 400.21  Number and location of zones and subzones.

    (a) Number of zone projects--port of entry entitlement. (1) Provided 
that the other requirements of this subpart are met:
    (i) Each port of entry is entitled to at least one zone project;
    (ii) If a port of entry is located in more than one state, each of 
the states in which the port of entry is located is entitled to a zone 
project; and
    (iii) If a port of entry is defined to include more than one city 
separated by a navigable waterway, each of the cities is entitled to a 
zone project.
    (2) Zone projects in addition to those approved under the 
entitlement provision of paragraph (a)(1) of this section may be 
authorized by the Board if it determines that existing project(s) will 
not adequately serve the public interest (convenience of commerce).
    (b) Location of zones and subzones--port of entry adjacency 
requirements. (1) The Act provides that the Board may approve ``zones in 
or adjacent to ports of entry'' (19 U.S.C. 81b).
    (2) The ``adjacency'' requirement is satisfied if:
    (i) A general-purpose zone is located within 60 statute miles or 90 
minutes' driving time from the outer limits of a port of entry;
    (ii) A subzone meets the following requirements relating to Customs 
supervision:
    (A) Proper Customs oversight can be accomplished with physical and 
electronic means; and
    (B) All electronically produced records are maintained in a format 
compatible with the requirements of the U.S. Customs Service for the 
duration of the record period; and
    (C) The grantee/operator agrees to present merchandise for 
examination at a Customs site selected by Customs when requested, and 
further agrees to present all necessary documents directly to the 
Customs oversight office.



Sec. 400.22  Eligible applicants.

    (a) In general. Subject to the other provisions of this section, 
public or private corporations may apply for a

[[Page 52]]

grant of authority to establish a zone project. The board will give 
preference to public corporations.
    (b) Public and non-profit corporations. The eligibility of public 
and non-profit corporations to apply for a grant of authority shall be 
supported by a enabling legislation of the legislature of the state in 
which the zone is to be located, indicating that the corporation, 
individually or as part of a class, is authorized to so apply.
    (c) Private for-profit corporations. The eligibility of private for-
profit corporations to apply for a grant of authority shall be supported 
by a special act of the state legislature naming the applicant 
corporation and by evidence indicating that the corporation is chartered 
for the purpose of establishing a zone.
    (d) Applicants for subzones--(1) Eligibility. The following entities 
are eligible to apply for a grant of authority to establish a subzone:
    (i) The zone grantee of the closest zone project in the same state;
    (ii) The zone grantee of another zone in the same state, which is a 
public corporation, if the Board, or the Executive Secretary, finds that 
such sponsorship better serves the public interest; or
    (iii) A state agency specifically authorized to submit such an 
application by an act of the state legislature.
    (2) Complaints. If an application is submitted under paragraph 
(d)(1) (ii) or (iii) of this section, the Executive Secretary will:
    (i) Notify, in writing, the grantee specified in paragraph (d)(1)(i) 
of this section, who may, within 30 days, object to such sponsorship, in 
writing, with supporting information as to why the public interest would 
be better served by its acting as sponsor;
    (ii) Review such objections prior to filing the application to 
determine whether the proposed sponsorship is in the public interest, 
taking into account:
    (A) The complaining zone's structure and operation;
    (B) The views of State and local public agencies; and
    (C) The views of the proposed subzone operator;
    (iii) Notify the applicant and complainants in writing of the 
Executive Secretary's determination;
    (iv) If the Executive Secretary determines that the proposed 
sponsorship is in the public interest, file the application (see 
Sec. 400.47 regarding appeals to decisions of the Executive Secretary).



Sec. 400.23  Criteria for grants of authority for zones and subzones.

    (a) Zones. The Board will consider the following factors in 
determining whether to issue a grant of authority for a zone project:
    (1) The need for zone services in the port of entry area, taking 
into account existing as well as projected international trade related 
activities and employment impact;
    (2) The adequacy of the operational and financial plans and the 
suitability of the proposed sites and facilities, with justification for 
duplicative sites;
    (3) The extent of state and local government support, as indicated 
by the compatibility of the zone project with the community's master 
plan or stated goals for economic development and the views of State and 
local public officials involved in economic development. Such officials 
shall avoid commitments that anticipate outcome of Board decisions;
    (4) The views of persons and firms likely to be affected by proposed 
zone activity; and
    (5) If the proposal involves manufacturing or processing activity, 
the criteria in Sec. 400.31.
    (b) Subzones. In reviewing proposals for subzones the Board will 
also consider:
    (1) Whether the operation could be located in or otherwise 
accommodated by the multi-purpose facilities of the zone project serving 
the area;
    (2) The specific zone benefits sought and the significant public 
benefit(s) involved supported by evidence to meet the requirement in 
Sec. 400.31(c); and
    (3) Whether the proposed activity is in the public interest, taking 
into account the criteria in Sec. 400.31.



Sec. 400.24  Application for zone.

    (a) In general. An application for a grant of authority to establish 
a zone project shall consist of a transmittal

[[Page 53]]

letter, an executive summary and five exhibits.
    (b) Letter of transmittal. The transmittal letter shall be currently 
dated and signed by an authorized officer of the corporation and bear 
the corporate seal.
    (c) Executive summary. The executive summary shall describe:
    (1) The corporation's legal authority to apply;
    (2) The type of authority requested from the Board;
    (3) The proposed zone site and facilities and the larger project of 
which the zone is a part;
    (4) The project background, including surveys and studies;
    (5) The relationship of the project to the community's and state's 
overall economic development plans and objectives;
    (6) The plans for operating and financing the project; and
    (7) Any additional pertinent information needed for a complete 
summary description of the proposal.
    (d) Exhibits. (1) Exhibit One (Legal Authority for the Application) 
shall consist of:
    (i) A certified copy of the state enabling legislation described in 
Sec. 400.22;
    (ii) A copy of pertinent sections of the applicant's charter or 
organization papers; and
    (iii) A certified copy of the resolution of the governing body of 
the corporation authorizing the official signing the application.
    (2) Exhibit Two (Site Description) shall consist of:
    (i) A detailed description of the zone site, including size, 
location, address, and a legal description of the area proposed for 
approval; a table with site designations shall be included when more 
than one site is involved;
    (ii) A summary description of the larger project of which the zone 
is a part, including type, size, location and address;
    (iii) A statement as to whether the zone is within or adjacent to a 
customs port of entry;
    (iv) A description of zone facilities and services, including 
dimensions and types of existing and proposed structures;
    (v) A description of existing or proposed site qualifications 
including: land-use zoning, relationship to flood-plain, infrastructure, 
utilities, security, and access to transportation services;
    (vi) A description of current activities carried on in or contiguous 
to the project;
    (vii) If part of a port facility, a summary of port and 
transportation services and facilities; if not, a summary description of 
transportation systems indicating connections from local and regional 
points of arrival to the zone; and
    (viii) A statement as to the possibilities and plans for zone 
expansion.
    (3) Exhibit Three (Operation and Financing) shall consist of:
    (i) A statement as to site ownership (if not owned by the applicant 
or proposed operator, evidence as to their legal right to use the site);
    (ii) A discussion of the operational plan (if the zone or a portion 
thereof is to be operated by other than the grantee, a summary of the 
selection process used or to be used, the type of operation agreement 
and, if available, the name and qualifications of the proposed 
operator);
    (iii) A brief explanation of the plans for providing facilities, 
physical security, and for satisfying the requirements for Customs 
automated systems;
    (iv) A summary of the plans for financing capital and operating 
costs, including a statement as to the source and use of funds; and
    (v) The estimated time schedule for construction and activation.
    (4) Exhibit Four (Economic Justification) shall include:
    (i) A statement of the community's overall economic goals and 
strategies in relation to those of the region and state;
    (ii) A reference to the plan or plans on which the goals are based 
and how they relate to the zone project;
    (iii) An economic profile of the community including identification 
and discussion of dominant sectors in terms of percentage of employment 
or income, area resources and problems, economic imbalances, 
unemployment rates, area foreign trade statistics, and

[[Page 54]]

area port facilities and transportation networks;
    (iv) A statement as to the role and objective of the zone project, 
and a justification for each of the proposed sites;
    (v) A discussion of the anticipated economic impact, direct and 
indirect, of the zone project, including references to public costs and 
benefits, employment, U.S. international trade, and environmental 
impact;
    (vi) A statement as to the need for zone services in the community, 
with information on surveys of business, and specific expressions of 
interest from proposed zone users, with letters of intent from those 
firms that are considered prime prospects; and
    (vii) A description of proposed manufacturing and processing 
operations, if applicable, with information covering the factors 
described in Sec. 400.31(b), including the nature and scope of the 
operation and production process, materials and components used, items 
to be foreign sourced with relevant tariff information, zone benefits 
anticipated and how they will affect the firm's plans, and the economic 
impact of the operation on the community and on related domestic 
industries.
    (5) Exhibit Five (Maps) shall consist of:
    (i) The following maps and drawings:
    (A) State and county maps showing the general location of the zone 
in terms of the area's transportation network;
    (B) A U.S. Geodetic Survey map or the equivalent showing in red the 
location of the proposed zone; and
    (C) A detailed blueprint of the zone or subzone area showing zone 
boundaries in red, with dimensions and metes and bounds, or other legal 
description, and showing existing and proposed structures.
    (ii) Proposals involving existing zones shall include a drawing 
showing existing zone sites and the proposed changes.
    (e) Additional information. The Board or the Executive Secretary may 
require additional information needed to adequately evaluate a proposal.
    (f) Amendment of application. The Board or the Executive Secretary 
may allow amendment of the application.
    (g) Drafts. Applicants may submit a draft application to the 
Executive Secretary for review.
    (h) Format and number of copies. Unless the Executive Secretary 
alters the requirements of this paragraph, submit an original and 12 
copies of the application on 8\1/2\'' x 11'' (216 x 279 mm) paper. 
Exhibit Five of the original application shall contain full-sized maps, 
and copies shall contain letter-sized reductions.
    (i) Where to file. Address and mail the application to the Secretary 
of Commerce, Attention: Executive Secretary, Foreign-Trade Zones Board, 
U.S. Department of Commerce, Pennsylvania Avenue and 14th Street, NW., 
Washington, DC 20230.

(Approved by the Office of Management and Budget under control number 
0625-0139)



Sec. 400.25  Application for subzone.

    (a) In general. An application to establish a subzone as part of a 
proposed or existing zone shall be submitted in accordance with the 
format in Sec. 400.24, except that the focus of the information provided 
in Exhibit Four shall be on the specific activity involved and its net 
economic effect. The information submitted in Exhibit Four shall 
include:
    (1) A summary as to the reasons for the subzone and an explanation 
of its anticipated economic effects;
    (2) Identity of the subzone user and its corporate affiliation;
    (3) Description of the proposed activity, including:
    (i) Products;
    (ii) Materials and Components;
    (iii) Sourcing plans (domestic/foreign);
    (iv) Tariff rates and other import requirements or restrictions;
    (v) Information to assist the Board in making a determination under 
Secs. 400.31(b)(1)(iii) and 400.31(b)(2);
    (vi) Benefits to subzone user;
    (vii) Information required in Sec. 400.24(d)(4)(vii);
    (viii) Information as to whether alternative procedures have been 
considered as a means of obtaining the benefits sought;
    (ix) Information on the industry involved and extent of 
international competition; and

[[Page 55]]

    (x) Economic impact of the operation on the area;
    (4) Reason operation cannot be conducted within a general-purpose 
zone;
    (5) Statement as to environmental impact; and
    (6) Any additional information requested by the Board or the 
Executive Secretary in order to conduct the review. The Executive 
Secretary may issue guidelines as to the kind of detailed information 
needed for various types of subzone cases.
    (b) Burden of proof. An applicant for a subzone must demonstrate to 
the Board that the proposed operation meets the criteria in 
Sec. 400.23(b).

(Approved by the Office of Management and Budget under control number 
0625-0139)



Sec. 400.26  Application for expansion or other modification to zone project.

    (a) In general. (1) A grantee may apply to the Board for authority 
to expand or otherwise modify its zone project.
    (2) The Executive Secretary, in consultation with the District 
Director, will determine whether the proposed modification involves a 
major change in the zone plan and is thus subject to paragraph (b) of 
this section, or is minor and subject to paragraph (c) of this section. 
In making this determination the Executive Secretary will consider the 
extent to which the proposed modification would:
    (i) Substantially modify the plan originally approved by the Board; 
or
    (ii) Expand the physical dimensions of the approved zone area as 
related to the scope of operations envisioned in the original plan.
    (b) Major modification to zone project. An application for a major 
modification to an approved zone project shall be submitted in 
accordance with the format in Sec. 400.24, except that:
    (1) Reference may be made to current information in an application 
from the same applicant on file with the Board; and
    (2) The content of Exhibit Four shall relate specifically to the 
proposed change.
    (c) Minor modification to zone project. Other applications or 
requests under this subpart, including those for minor revisions of zone 
boundaries, grant of authority transfers, or time extensions, shall be 
submitted in letter form with information and documentation necessary 
for analysis, as determined by the Executive Secretary, who shall 
determine whether the proposed change is a minor one subject to this 
paragraph (c) instead of paragraph (b) of this section (see, 
Sec. 400.27(f)).
    (d) Applications for other revisions to grants of authority. 
Applications or requests for revisions to grants of authority, such as 
restriction modifications, shall be submitted in letter form with 
information and documentation necessary for analysis, as determined by 
the Executive Secretary. If the change involves removal or significant 
modification of a restriction included by the Board in a grant of 
authority, the review procedures of Sec. 400.32 shall apply. If not, the 
procedure set forth in Sec. 400.27(f) shall apply.

(Approved by the Office of Management and Budget under control number 
0625-0139)



Sec. 400.27  Procedure for processing application.

    (a) In general. This section outlines the procedure followed in 
processing applications submitted under Secs. 400.24-400.26. In 
addition, it sets forth the time schedules which will normally be 
applied in processing applications. The schedules will provide guidance 
to applicants with respect to the time frames for each of the procedural 
steps involved in the Board's review. Under these schedules, 
applications involving manufacturing or processing activity would be 
processed within 1 year, and those not involving such activity, within 
10 months. While the schedules set forth a standard time frame, the 
Board may determine that it requires additional time based on special 
circumstances, such as when the public comment period must be reopened 
pursuant to paragraphs (d)(2)(v)(B) and (d)(3)(vi)(B) of this section.
    (b) Prefiling review. Applications subject to Sec. 400.29 shall be 
accompanied with a check in accordance with that section, and will be 
dated upon receipt at the headquarters of the Board. The Executive 
Secretary will determine whether the application satisfies the 
requirements of Secs. 400.22-400.24, 400.25,

[[Page 56]]

400.26, 400.32, and other applicable provisions of this part.
    (1) If the application is deficient, the Executive Secretary will 
notify the applicant within 20 days of receipt of the application, 
specifying the deficiencies. The applicant shall correct the 
deficiencies and submit the correct application within 30 days of 
notification. Otherwise, the application (original) will be returned.
    (2) If the application is sufficient, the Executive Secretary will 
within 45 days of receipt of the application:
    (i) Formally file the application, thereby initiating the proceeding 
or review;
    (ii) Assign a case docket number in cases requiring a Board order; 
and
    (iii) Notify the applicant.
    (c) Procedure--Executive Secretary responsibilities. After 
initiating a proceeding based on an application under Secs. 400.24-
400.25, or 400.26(b), the Executive Secretary will:
    (1) Designate an examiner to conduct a review and prepare a report 
with recommendations for the Board;
    (2) Publish in the Federal Register a notice of the formal filing of 
the application and initiation of the review which includes the name of 
the applicant, a description of the zone project, information as to any 
hearing scheduled at the outset, and an invitation for public comment, 
including a time period during which the public may submit evidence, 
factual information, and written arguments. Normally, the comment period 
will close 60 days after the date the notice appears, except that, if a 
hearing is held (see, Sec. 400.51), the period will not close prior to 
15 days after the date of the hearing. The closing date for general 
comment will ordinarily be followed by an additional 15-day period for 
rebuttal comments;
    (3) Send copies of the filing and initiation notice and the 
application to:
    (i) The Commissioner of Customs and the Regional Commissioner, or a 
designee; and
    (ii) The Resident Member, Board of Engineers for Rivers and Harbors, 
Department of the Army, and the District Engineer;
    (4) Arrange for hearings, as appropriate;
    (5) Transmit the reports and recommendations of the examiner and of 
the officials identified in paragraph (c)(3) of this section to the 
Board for appropriate action; and
    (6) Notify the applicant in writing and publish notice in the 
Federal Register of the Board's determination.
    (d) Case reviews--procedure and time schedule--(1) Customs and army 
engineer review. The Regional Commissioner (Customs), or a designee, and 
the District Engineer (Army), in accordance with the regulations and 
directives of their respective agencies, will submit their technical 
reports to the Executive Secretary within 45 days of the conclusion of 
the public comment period described in paragraph (c)(2) of this section.
    (2) Examiners reviews--non-manufacturing/processing. Examiners 
assigned to cases not involving manufacturing or processing activity 
shall conduct a review taking into account the factors enumerated in 
Sec. 400.23 and other appropriate sections of this part, which shall 
include:
    (i) Conducting or participating in necessary hearings scheduled by 
the Executive Secretary;
    (ii) Reviewing case records, including public comments;
    (iii) Requesting information and evidence from parties of record;
    (iv) Developing information and evidence necessary for evaluation 
and analysis of the application in accordance with the criteria of the 
Act and this part;
    (v) Preparing a report with recommendations to the Board and 
submitting it to the Executive Secretary within 120 days of the close of 
the period for public comment (see, paragraph (c)(2) of this section).
    (A) If the report is unfavorable to the applicant, it shall be 
considered a preliminary report and the applicant shall be notified 
within 5 days (in writing or by phone) and given 30 days from the date 
of notification in which to respond to the report and submit additional 
evidence.
    (B) If the response contains new evidence on which there has not 
been an opportunity for public comment, the Executive Secretary will 
publish notice

[[Page 57]]

in the Federal Register after completion of the review of the response. 
The new material will be made available for public inspection and the 
Federal Register notice will invite further public comment for 30 days, 
with an additional 15-day period for rebuttal comments.
    (C) The Customs and District Engineer (Army) advisers shall be 
notified when necessary for their further comments, which shall be 
submitted within 45 days after their notification.
    (D) The examiners report in a situation under paragraph (d)(2)(v)(A) 
of this section shall be completed and submitted to the Executive 
Secretary within 30 days after receipt of additional evidence or notice 
from the applicant that there will be none; except that, if paragraph 
(d)(2)(v)(B) of this section applies, the report will be submitted 
within 30 days of the close of the period for public comment.
    (3) Examiners reviews--cases involving manufacturing or processing 
activity. Examiners shall conduct a review taking into account the 
factors enumerated in Sec. 400.23, Sec. 400.31, and other appropriate 
sections of this part, which shall include:
    (i) Conducting or participating in hearings scheduled by the 
Executive Secretary;
    (ii) Reviewing case records, including public comments;
    (iii) Requesting information and evidence from parties of record;
    (iv) Developing information and evidence necessary for analysis of 
the threshold factors and the economic factors enumerated in 
Sec. 400.31;
    (v) Conducting an analysis to include:
    (A) An evaluation of policy considerations pursuant to 
Secs. 400.31(b)(1)(i) and 400.31(b)(1)(ii);
    (B) An evaluation of the economic factors enumerated in 
Secs. 400.31(b)(1)(iii) and 400.31(b)(2), which shall include an 
evaluation of the economic impact on domestic industry, considering both 
producers of like products and producers of components/materials used in 
the manufacture/processing or assembly of the products. The evaluation 
will take into account such factors as market conditions, price 
sensitivity, degree and nature of foreign competition, effect on exports 
and imports, and the net effect on U.S. employment;
    (vi) Conducting appropriate industry surveys when necessary; and
    (vii) Preparing a report with recommendations to the Board and 
submitting it to the Executive Secretary within 150 days of the close of 
the period for public comment:
    (A) If the report is unfavorable to the applicant, it shall be 
considered a preliminary report and the applicant shall be notified (in 
writing or by phone) and given 45 days from the date of notification in 
which to respond to the report and submit additional evidence pertinent 
to the factors considered in the report.
    (B) If the response contains new evidence on which there has not 
been an opportunity for public comment, the Executive Secretary will 
publish notice in the Federal Register after completion of the review of 
the response. The new material will be made available for public 
inspection and the Federal Register notice will invite further public 
comment for 30 days, with an additional 15-day period for rebuttal 
comments.
    (e) Procedure--Completion of review--(1) The Executive Secretary 
will circulate the examiners report with recommendations to Board 
members for their review and votes (by resolution).
    (2) The Treasury and Army Board members will return their votes to 
the Executive Secretary within 30 days, unless a formal meeting is 
requested (see, Sec. 400.11(d)).
    (3) The Commerce Department will complete the decision process 
within 15 days of receiving the votes of both other Board members, and 
the Executive Secretary will publish the Board decision.
    (f) Procedure--Application for minor modification of zone project. 
(1) The Executive Secretary, with the concurrence of the District 
Director, will make a determination in cases under Sec. 400.26(c) 
involving minor changes to zone projects that do not require a Board 
order, such as boundary modifications, including certain relocations, 
and will notify the applicant in writing of the decision within 30 days

[[Page 58]]

of the determination that the application or request can be processed 
under Sec. 400.26(c).
    (2) The District Director shall provide the decision as to 
concurrence within 20 days after being notified of the request or 
application.



Sec. 400.28  Conditions, prohibitions and restrictions applicable to grants of authority.

    (a) In general. Grants of authority issued by the Board for the 
establishment of zones or subzones, including those already issued, are 
subject to the Act and this part and the following general conditions or 
limitations:
    (1) Approvals from the grantee and the District Director, pursuant 
to 19 CFR part 146, are required prior to the activation of any portion 
of an approved zone project; and
    (2) Approval of the Board or the Commerce Department's Assistant 
Secretary for Import Administration pursuant to subpart D of this part 
is required prior to the commencement of manufacturing beyond the scope 
of that approved as part of the application or pursuant to reviews under 
this part (e.g., new end products, significant expansions of plant 
production capacity), and of similar changes in processing activity 
which involves foreign articles subject to quantitative import controls 
(quotas) or results in articles subject to a lower (actual or effective) 
duty rate (inverted tariff) than any of their foreign components.
    (3) Sourcing changes--(i) Notification requirement. The grantee or 
operator of a zone or subzone shall notify the Executive Secretary when 
there is a change in sourcing for authorized manufacturing or processing 
activity which involves the use of new foreign articles subject to 
quotas or inverted tariffs, unless--
    (A) Entries for consumption are not to be made at the lower duty 
rate; or
    (B) The product in which the foreign articles are to be incorporated 
is being produced for exportation.
    (ii) Notification procedure. Notification shall be given prior to 
the commencement of the activity, when possible, otherwise at the time 
the new foreign articles arrive in the zone or are withdrawn from 
inventory for use in production. Requests may be made to the Executive 
Secretary for authority to submit notification of sourcing changes on a 
quarterly federal fiscal year basis covering changes in the previous 
quarter.
    (iii) Reviews. (A) Upon notification of a sourcing change under 
paragraph (a)(3)(i) of this section, within 30 days, the Executive 
Secretary will conduct a preliminary review of the changes in relation 
to the approved activity to determine whether they could have 
significant adverse effects, taking into account the factors enumerated 
in Sec. 400.31(b), and will submit a report and recommendation to the 
Commerce Department's Assistant Secretary for Import Administration, who 
shall determine whether review is necessary. The procedures of 
Sec. 400.32(b) shall be used in these situations when appropriate.
    (B) The Board or the Commerce Department's Assistant Secretary for 
Import Administration may, based on public interest grounds, prohibit or 
restrict the use of zone procedures in regard to the change in sourcing, 
including requiring that items be placed in privileged foreign status 
(19 CFR 146.41) upon admission to a zone or subzone.
    (C) The Executive Secretary shall direct reviews necessary to ensure 
that activity involved in these situations continues to be in the public 
interest.
    (4) Prior to activation of a zone, the zone grantee or operator 
shall obtain all necessary permits from federal, state and local 
authorities, and except as otherwise specified in the Act or this part, 
shall comply with the requirements of those authorities.
    (5) A grant of authority for a zone or a subzone shall lapse unless 
the zone project (in case of subzones, the subzone facility) is 
activated, pursuant to 19 CFR part 146, and in operation not later than 
five years from:
    (i) A Board order (authorizing the zone or subzone) issued after 
November 7, 1991; or
    (ii) November 7, 1991.
    (6) A grant of authority approved under this subpart includes 
authority for the grantee to permit the erection of buildings necessary 
to carry out the approved zone project subject to concurrence of the 
District Director.

[[Page 59]]

    (7) Zone grantees, operators, and users shall permit federal 
government officials acting in an official capacity to have access to 
the zone project and records during normal business hours and under 
other reasonable circumstances.
    (8) A grant of authority may not be sold, conveyed, transferred, set 
over, or assigned (FTZ Act, section 17; 19 U.S.C. 81q). Private 
ownership of zone land and facilities is permitted provided the zone 
grantee retains the control necessary to implement the approved zone 
project. Should title to land or facilities be transferred after a grant 
of authority is issued, the zone grantee must retain, by agreement with 
the new owner, a level of control which allows the grantee to carry out 
its responsibilities as grantee. The sale of a zone site or facility for 
more than its fair market value without zone status could, depending on 
the circumstances, be subject to section 17 of the Act.
    (9) A grant of authority will not be construed to make the zone 
grantee automatically liable for violations by operators, users, or 
other parties.
    (b) Additional conditions, prohibitions and restrictions. Other 
requirements, conditions or restrictions under Federal, State or local 
law may apply to the zone or subzone authorized by the grant of 
authority.
    (c) Revocation of grants of authority.
    (1) In general. As provided in this section, the Board can revoke in 
whole or in part a grant of authority for a zone or subzone whenever it 
determines that the zone grantee or, in the case of subzones, the 
subzone operator, has violated, repeatedly and willfully, the provisions 
of the Act.
    (2) Procedure. When the Board has reason to believe that the 
conditions for revocation, as described in paragraph (a) of this 
section, are met, the Board will:
    (i) Notify the zone or subzone grantee in writing stating the nature 
of the alleged violations, and provide the grantee an opportunity to 
request a hearing on the proposed revocation;
    (ii) Conduct a hearing, if requested or otherwise if appropriate;
    (iii) Make a determination on the record of the proceeding not 
earlier than 4 months after providing notice to the zone grantee under 
paragraph (b)(1) of this section; and
    (iv) If the Board's determination is affirmative, publish notice of 
revocation of the grant of authority in the Federal Register.
    (3) As provided in section 18 of the Act (19 U.S.C. 81r(c)), the 
zone or subzone grantee may appeal an order of the Board revoking the 
grant of authority.

[56 FR 50798, Oct. 8, 1991; 56 FR 65833, Dec. 19, 1991]



Sec. 400.29  Application fees.

    (a) In general. This section sets forth a uniform system of charges 
in the form of fees to recover some costs incurred by the Foreign-Trade 
Zones staff of the Department of Commerce in processing the applications 
listed in paragraph (b) of this section. The legal authority for the 
fees is 31 U.S.C. 9701, which provides for the collection of user fees 
by agencies of the Federal Government.
    (b) Uniform system of user fee charges. The following graduated fee 
schedule establishes fees for certain types of applications and requests 
for authority based on their average processing time. Applications 
combining requests for more than one type of approval are subject to the 
fee for each category.

(1) Additional general-purpose zones (Sec.  400.24; Sec.                
 400.21(a)(2)).................................................   $3,200
(2) Special-purpose subzones (Sec.  400.25):                            
  (i) Non-manufacturing/processing or less than three products.    4,000
  (ii) Manufacturing/processing--three or more products........    6,500
(3) Expansions (Sec.  400.26(b))...............................    1,600
                                                                        

    (c) Applications submitted to the Board shall include a check drawn 
on a national or state bank or trust company of the United States or 
Puerto Rico in the amount called for in paragraph (b) of this section. 
Uncertified checks must be acceptable for deposit by a Federal Reserve 
bank or branch.
    (d) Applicants shall make their checks payable to the U.S. 
Department of Commerce ITA. The checks will be deposited by ITA into the 
Treasury receipts account. If applications are found deficient under 
Sec. 400.27(b)(1), or withdrawn by applicants prior to formal filing, 
refunds will be made.

[[Page 60]]



        Subpart D--Manufacturing and Processing Activity--Reviews



Sec. 400.31  Manufacturing and processing activity; criteria.

    (a) In general. Pursuant to section 15(c) of the Act (19 U.S.C. 
81o(c)), the Board has authority to restrict or prohibit zone activity 
``that in its judgment is detrimental to the public interest.'' When 
evaluating zone and subzone manufacturing and processing activity, 
either as proposed in an application, in a request for manufacturing/
processing approval, or as part of a review of an ongoing operation, the 
Board shall determine whether the activity is in the public interest by 
reviewing it in relation to the evaluation criteria contained in 
paragraph (b) of this section. With regard to processing activity, this 
section shall apply only when the activity involves foreign articles 
subject to quantitative import controls (quotas) or results in articles 
subject to a lower duty rate (inverted tariff) than any of their foreign 
components. Such a review involves consideration of whether the activity 
is consistent with trade policy and programs, and whether its net 
economic effect is positive.
    (b) Evaluation criteria--(1) Threshold factors. It is the policy of 
the Board to authorize zone activity only when it is consistent with 
public policy and, in regard to activity involving foreign merchandise 
subject to quotas or inverted tariffs, when zone procedures are not the 
sole determining cause of imports. Thus, without undertaking a review of 
the economic factors enumerated in Sec. 400.31(b)(2), the Board shall 
deny or restrict authority for proposed or ongoing activity if it 
determines that:
    (i) The activity is inconsistent with U.S. trade and tariff law, or 
policy which has been formally adopted by the Executive branch;
    (ii) Board approval of the activity under review would seriously 
prejudice U.S. tariff and trade negotiations or other initiatives; or
    (iii) The activity involves items subject to quantitative import 
controls or inverted tariffs, and the use of zone procedures would be 
the direct and sole cause of imports that, but for such procedures, 
would not likely otherwise have occurred, taking into account imports 
both as individual items and as components of imported products.
    (2) Economic factors. After its review of threshold factors, if 
there is a basis for further consideration, the Board shall consider the 
following factors in determiing the net economic effect of the activity 
or proposed activity:
    (i) Overall employment impact;
    (ii) Exports and reexports;
    (iii) Retention or creation of manufacturing or processing activity;
    (iv) Extent of value-added activity;
    (v) Overall effect on import levels of relevant products, including 
import displacement;
    (vi) Extent and nature of foreign competition in relevant products;
    (vii) Impact on related domestic industry, taking into account 
market conditions; and
    (viii) Other relevant information relating to public interest and 
net economic impact considerations, including technology transfers and 
investment effects.
    (c) Methodology and evidence--(1)(i) The first phase 
(Sec. 400.31(b)) involves consideration of threshold factors. If an 
examiner or reviewer makes a negative finding on any of the factors in 
paragraph (b)(1) of this section in the course of a review, the 
applicant shall be informed pursuant to Sec. 400.27(d)(3)(vii)(A). When 
threshold factors are the basis for a negative recommendation in a 
review of ongoing activity, the zone grantee and directly affected party 
shall be notified and given an opportunity to submit evidence pursuant 
to Sec. 400.27(d)(3)(vii)(A). If the Board determines in the negative 
any of the factors in paragraph (b)(1) of this section, it shall deny or 
restrict authority for the proposed or ongoing activity.
    (ii) The process for paragraph (b)(2) of this section involves 
consideration of the enumerated economic factors, taking into account 
their relative weight and significance under the circumstances. Previous 
evaluations in similar cases are considered. The net effect is arrived 
at by balancing the positive and negative factors and arriving at a net 
economic effect.

[[Page 61]]

    (2) Contributory effect. In assessing the significance of the 
economic effect of the zone activity as part of the consideration of 
economic factors, and in consideration of whether there is a significant 
public benefit, the Board may consider the contributory effect zone 
savings have as an incremental part of cost effectiveness programs 
adopted by companies to improve their international competitiveness.
    (3) Burden of proof. Applicants for subzones shall have the burden 
of submitting evidence establishing that the activity does or would 
result in a significant public benefit, taking into account the factors 
in paragraph (b) of this section. Applicants for approval of 
manufacturing or processing in general-purpose zones shall submit 
evidence regarding the positive economic effects that would result from 
activity within the zone and may submit evidence and comments as to 
policy considerations. Both types of applicants are expected to submit 
information in response to evidence of adverse economic effects during 
the public comment period. Parties should submit evidence that is 
probative and substantial in addressing the matter in issue.
    (d) Monitoring and post-approval reviews--(1) Ongoing zone activity 
may be reviewed at anytime to determine whether it is in compliance with 
the Act and regulations, as well as the authority granted by the Board. 
Reviews may also be conducted to determine whether there are changed 
circumstances that raise questions as to whether the activity is 
detrimental to the public interest, taking into account the factors 
enumerated in Sec. 400.31. The Board may prescribe special monitoring 
requirements in its decisions when appropriate.
    (2) Reviews may be initiated by the Board, the Commerce Department's 
Assistant Secretary for Import Administration, or the Executive 
Secretary; or, they may be undertaken in response to requests from 
parties directly affected by the activity in question and showing good 
cause.
    (3) Upon review, if the Board finds that zone activity is no longer 
in the public interest, taking into account the provisions of 
Sec. 400.31, it may restrict the activity in question. The 
appropriateness of a delayed effective date will be considered in such 
cases.

[56 FR 50798, Oct. 8, 1991; 56 FR 56544, Nov. 5, 1991]



Sec. 400.32  Procedure for review of request for approval of manufacturing or processing.

    (a) Request as part of application for grant of authority. A request 
for approval of proposed manufacturing or processing activity may be 
submitted as part of an application under Secs. 400.24-400.26(a). The 
Board will review the request taking into account the criteria in 
Sec. 400.31(b).
    (b) Request for manufacturing/processing in approved zone or 
subzone. Prior to the commencement of manufacturing in a zone or subzone 
involving activity beyond the scope of that which has been previously 
authorized at the facility (i.e., new end products, significant 
expansions of plant production capacity), and of similar changes in 
processing activity that involves foreign articles subject to quotas or 
inverted tariffs, zone grantees or operators shall request the 
determination referred to in Sec. 400.31(a) by submitting a request in 
writing to the Executive Secretary (Sec. 400.28(a)(2)). Such requests 
shall include the information required by Secs. 400.24(d)(4)(vii) and 
400.25.
    (1) The Commerce Department's Assistant Secretary for Import 
Administration may make determinations in these cases based upon a 
review by the FTZ staff and the recommendation of the Executive 
Secretary, when:
    (i) The proposed activity is the same, in terms of products 
involved, to activity recently approved by the Board and similar in 
circumstances; or
    (ii) The activity is for export only; or
    (iii) The zone benefits sought do not involve the election of non-
privileged foreign status (19 CFR 146.42) on items involving inverted 
tariffs; or
    (iv) The District Director determines that the activity could 
otherwise be conducted under Customs bonded procedures.
    (2) When the informal procedure in paragraph (b)(1) of this section 
is not appropriate--
    (i) The Executive Secretary will:

[[Page 62]]

    (A) Assign a case docket number and give notice in the Federal 
Register inviting public comment;
    (B) Arrange a public hearing, if appropriate;
    (C) Appoint an examiner, if appropriate, to conduct a review and 
prepare a report with recommendations for the Board; and
    (D) Prepare and transmit a report with recommendations, or transmit 
the examiners report, to the Board for appropriate action; and
    (ii) The Board will make a determination on the requests, and the 
Executive Secretary will notify the grantee in writing of the Board's 
determination, and will publish notice of the determination in the 
Federal Register.
    (c) Scope determinations. Determinations shall be made by the 
Executive Secretary as to whether changes in activity are within the 
scope of related activity already approved for the facility involved 
under this part. When warranted, the procedures of paragraph (b)(2) of 
this section will be followed.



Sec. 400.33  Restrictions on manufacturing and processing activity.

    (a) In general. In approving manufacturing or processing activity 
for a zone or subzone the Board may adopt restrictions to protect the 
public interest, health, or safety. The Commerce Department's Assistant 
Secretary for Import Administration may similarly adopt restrictions in 
exercising authority under Sec. 400.32(b)(1).
    (b) Restrictions on items subject to antidumping and countervailing 
duty actions--(1) Board policy. Zone procedures shall not be used to 
circumvent antidumping (AD) and countervailing duty (CVD) actions under 
19 CFR parts 353 and 355.
    (2) Admission of items subject to AD/CVD actions. Items subject to 
AD/CVD orders or items which would be otherwise subject to suspension of 
liquidation under AD/CVD procedures, if they entered U.S. Customs 
territory, shall be placed in privileged foreign status (19 CFR 146.41) 
upon admission to a zone or subzone. Upon entry for consumption, such 
items shall be subject to duties under AD/CVD orders or to suspension of 
liquidation, as appropriate, under 19 CFR parts 353 and 355.



       Subpart E--Zone Operations and Administrative Requirements



Sec. 400.41  Zone operations; general.

    Zones shall be operated by or under the contractual oversight of 
zone grantees, subject to the requirements of the Act and this part, as 
well as those of other federal, state and local agencies having 
jurisdiction over the site and operation. Zone grantees shall ensure 
that the reasonable zone needs of the business community are served by 
their zone projects. The District Director represents the Board with 
regard to the zone projects in the district and is responsible for 
enforcement, including physical security and access requirements, as 
provided in 19 CFR part 146.



Sec. 400.42  Requirements for commencement of operations in a zone project.

    (a) In general. The following actions are required before operations 
in a zone may commence:
    (1) Approval by the District Director of an application for 
activation is required as provided in 19 CFR part 146; and
    (2) The Executive Secretary will review proposed manufacturing or 
processing, pursuant to Sec. 400.32, and a zone schedule as provided in 
this section.
    (b) Zone schedule. (1) The zone grantee shall submit to the 
Executive Secretary and to the District Director a zone schedule which 
sets forth:
    (i) Internal rules and regulations for the zone; and
    (ii) A statement of the rates and charges (fees) applicable to zone 
users.
    (2) A zone schedule shall consist of typed, loose-leaf, numbered, 
letter-sized pages, enclosed in covers, and shall contain:
    (i) A title page, with information to include:
    (A) The name of the zone grantee and operator(s);
    (B) Schedule identification;
    (C) Site description;
    (D) Date of original schedule; and
    (E) Name of the preparer;
    (ii) A table of contents;
    (iii) Administrative information;
    (iv) A statement of zone operating policy, rules and regulations, 
including

[[Page 63]]

uniform procedures regarding the construction of buildings and 
facilities; and
    (v) A section listing rates and charges for zones and subzones with 
information sufficient for the Board or the Executive Secretary to 
determine whether the rates and charges are reasonable based on other 
like operations in the port of entry area, and whether there is uniform 
treatment under like circumstances among zone users.
    (3) The Executive Secretary will review the schedule to determine 
whether it contains sufficient information for users concerning the 
operation of the facility and a statement of rates and charges as 
provided in paragraph (b)(2) of this section. If the Executive Secretary 
determines that the schedule satisfies these requirements, the Executive 
Secretary will notify the zone grantee, unless there is a basis for 
review under paragraph (b)(5) of this section. A copy of the schedule 
shall be available for public inspection at the offices of the zone 
grantee and operator. The zone grantee shall send a copy to the District 
Director, who may submit comments to the Executive Secretary.
    (4) Amendments to the schedule shall be prepared and submitted in 
the manner described in paragraphs (b)(1) through (b)(3) of this 
section, and listed in the concluding section of the schedule, with 
dates.
    (5) A zone user or prospective user showing good cause may object to 
the zone or subzone fee on the basis that it is not reasonable, fair and 
uniform, by submitting to the Executive Secretary a complaint in writing 
with supporting information. The Executive Secretary will review the 
complaint and issue a report and decision, which will be final unless 
appealed to the Board within 30 days. The Board or the Executive 
Secretary may otherwise initiate a review for cause. The factors 
considered in reviewing reasonableness and fairness, will include:
    (i) The going-rates and charges for like operations in the area and 
the extra costs of operating a zone, including return on investment; and
    (ii) In the case of subzones, the value of actual services rendered 
by the zone grantee or operator, and reasonable out-of-pocket expenses.



Sec. 400.43  Restriction and prohibition of certain zone operations.

    (a) In general. After review, the Board may restrict or prohibit any 
admission of merchandise into a zone project or operation in a zone 
project when it determines that such activity is detrimental to the 
public interest, health or safety.
    (b) Initiation of review. The Board may conduct a proceeding, or the 
Executive Secretary a review, to consider a restriction or prohibition 
under paragraph (a) of this section either self-initiated, or in 
response to a complaint made to the Board by a party directly affected 
by the activity in question and showing good cause.



Sec. 400.44  Zone-restricted merchandise.

    (a) In general. Merchandise which has been given export status by 
Customs officials (``zone-restricted merchandise''--19 CFR 146.44) may 
be returned to the Customs Territory of the United States only when the 
Board determines that the return would be in the public interest. Such 
returns are subject to the Customs laws and the payment of applicable 
duties and excise taxes (19 U.S.C. 81c, 4th proviso).
    (b) Criteria. In making the determination described in paragraph (a) 
of this section, the Board will consider:
    (1) The intent of the parties;
    (2) Why the goods cannot be exported;
    (3) The public benefit involved in allowing their return; and
    (4) The recommendation of the District Director.
    (c) Procedure. (1) A request for authority to return ``zone-
restricted'' merchandise into Customs territory shall be made to the 
Executive Secretary in letter form by the zone grantee or operator of 
the zone in which the merchandise is located, with supporting 
information and documentation.
    (2) The Executive Secretary will investigate the request and prepare 
a report for the Board.
    (3) The Executive Secretary may act for the Board under this section 
in cases involving merchandise valued at 500,000 dollars or less, 
provided requests

[[Page 64]]

are accompanied with a letter of concurrence from the District Director.



Sec. 400.45  Retail trade.

    (a) In general. Retail trade is prohibited in zones, except that 
sales or other commercial activity involving domestic, duty-paid, and 
duty-free goods may be conducted within an activated zone project under 
permits issued by the zone grantee and approved by the Board, with the 
further exception that no permits shall be necessary for sales involving 
domestic, duty-paid or duty-free food and non-alcoholic beverage 
products sold within the zone or subzone for consumption on premises by 
persons working therein. The District Director will determine whether an 
activity is retail trade, subject to review by the Board when the zone 
grantee requests such a review with a good cause.
    (b) Procedure. Requests for Board approval under this section shall 
be submitted in letter form, with supporting documentation, to the 
District Director, who is authorized to act for the Board in these 
cases, subject to the concurrence of the Executive Secretary.
    (c) Criteria. In evaluating requests under this section, the 
District Director and the Executive Secretary will consider:
    (1) Whether any public benefits would result from approval; and
    (2) The economic effect such activity would have on the retail trade 
outside the zone in the port of entry area.

[56 FR 50798, Oct. 8, 1991; 57 FR 2319, Jan. 21, 1992]



Sec. 400.46  Accounts, records and reports.

    (a) Zone accounts. Zone accounts shall be maintained in accordance 
with generally accepted accounting principles, and in compliance with 
the requirements of Federal, State or local agencies having jurisdiction 
over the site or operation.
    (b) Records and forms. Zone records and forms shall be prepared and 
maintained in accordance with the requirements of the Customs Service 
and the Board, and the zone grantee shall retain copies of applications 
it submits to the Board.
    (c) Maps and drawings. Zone grantees or operators, and District 
Directors, shall keep current layout drawings of approved sites as 
described in Sec. 400.24(d)(5), showing activated portions, and a file 
showing required approvals. The zone grantee shall furnish necessary 
maps to the District Director.
    (d) Annual reports. (1) Zone grantees shall submit annual reports to 
the Board at the time and in the format prescribed by the Executive 
Secretary, for use by the Executive Secretary in the preparation of the 
Board's annual report to the Congress.
    (2) The Board shall submit an annual report to the Congress.

(Approved by the Office of Management and Budget under control number 
(0625-0109)



Sec. 400.47  Appeals to the Board from decisions of the Assistant Secretary for Import Administration and the Executive Secretary.

    (a) In general. Decisions of the Assistant Secretary for Import 
Administration and the Executive Secretary made pursuant to 
Secs. 400.22(d)(2)(ii), 400.32(b)(1), 400.44(c)(3), and 400.45(b)(2) may 
be appealed to the Board by adversely affected parties showing good 
cause.
    (b) Procedures. Parties appealing a decision under paragraph (a) of 
this section shall submit a request for review to the Board in writing, 
stating the basis for the request, and attaching a copy of the decision 
in question, as well as supporting information and documentation. After 
a review, the Board will notify the complaining party of its decision in 
writing.



           Subpart F--Notice, Hearings, Record and Information



Sec. 400.51  Notice and hearings.

    (a) In general. The Executive Secretary will publish notice in the 
Federal Register inviting public comment on applications docketed for 
Board action (see, Sec. 400.27(c)), and with regard to other reviews or 
matters considered under this part when public comment is necessary. 
Applicants shall give appropriate notice of their proposals in local 
newspapers. The Board, the

[[Page 65]]

Secretary, the Commerce Department's Assistant Secretary for Import 
Administration, or the Executive Secretary, as appropriate, may schedule 
and/or hold hearings during any proceedings or reviews conducted under 
this part whenever necessary or appropriate.
    (b) Requests for hearings--(1) A directly affected party showing 
good cause may request a hearing during a proceeding or review.
    (2) The request must be made within 30 days of the beginning of the 
period for public comment (see, Sec. 400.27) and must be accompanied by 
information establishing the need for the hearing and the basis for the 
requesting party's interest in the matter.
    (3) A determination as to the need for the hearing will be made by 
the Commerce Department's Assistant Secretary for Import Administration 
within 15 days after the receipt of such a request.
    (c) Procedure for public hearings. The Board will publish notice in 
the Federal Register of the date, time and location of a hearing. All 
participants shall have the opportunity to make a presentation. 
Applicants and their witnesses shall ordinarily appear first. The 
presiding officer may adopt time limits for individual presentations.



Sec. 400.52  Official record; public access.

    (a) Content. The Executive Secretary will maintain at the location 
stated in Sec. 400.53(d) an official record of each proceeding within 
the Board's jurisdiction. The Executive Secretary will include in the 
official record all factual information, written argument, and other 
material developed by, presented to, or obtained by the Board in 
connection with the proceeding. The official record will contain 
material that is public, business proprietary, privileged, and 
classified. While there is no requirement that a verbatim record shall 
be kept of public hearings, the proceedings of such hearings shall 
ordinarily be recorded and transcribed when significant opposition is 
involved.
    (b) Opening and closing of official record. The official record 
opens on the date the Executive Secretary files an application or 
receives a request that satisfies the applicable requirements of this 
part and closes on the date of the final determination in the proceeding 
or review, as applicable.
    (c) Protection of the official record. Unless otherwise ordered in a 
particular case by the Executive Secretary, the official record will not 
be removed from the Department of Commerce. A certified copy of the 
record will be made available to any court before which any aspect of a 
proceeding is under review, with appropriate safeguards to prevent 
disclosure of proprietary or privileged information.



Sec. 400.53  Information.

    (a) Request for information. The Board may request submission of any 
information, including business proprietary information, and written 
argument necessary or appropriate to the proceeding.
    (b) Public information. Except as provided in paragraph (c) of this 
section, the Board will consider all information submitted in a 
proceeding to be public information. If the person submitting the 
information does not agree to its public disclosure, the Board will 
return the information and not consider it in the proceeding.
    (c) Business proprietary information. Persons submitting business 
proprietary information and requesting protection from public disclosure 
shall mark the cover page ``business proprietary,'' as well as the top 
of each page on which such information appears.
    (d) Disclosure of information. Disclosure of public information will 
be governed by 15 CFR part 4. Public information in the official record 
will be available for inspection and copying at the Office of the 
Executive Secretary, Foreign-Trade Zones Board, U.S. Department of 
Commerce Building, Pennsylvania Avenue and 14th Street, NW., Washington, 
DC 20230.

[[Page 67]]



CHAPTER VII--BUREAU OF EXPORT ADMINISTRATION, DEPARTMENT OF COMMERCE




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

       SUBCHAPTER A--NATIONAL SECURITY INDUSTRIAL BASE REGULATIONS
Part                                                                Page
700             Defense priorities and allocations system...          69
701             Reporting of offsets agreements in sales of 
                    weapon systems or defense-related items 
                    to foreign countries or foreign firms...         118
702-704   [Reserved]
705             Effect of imported articles on the national 
                    security................................         121
706-709   [Reserved]
                         SUBCHAPTER B [RESERVED]
710-729   [Reserved]
             SUBCHAPTER C--EXPORT ADMINISTRATION REGULATIONS
730             General information.........................
732             Steps for using the EAR.....................
734             Scope of the export administration 
                    regulations.............................
736             General prohibitions........................
738             Commerce Control List overview and the 
                    country chart...........................
740             License exceptions..........................
742             Control policy--CCL based controls..........
744             Control policy: end-user and end-use based..
746             Embargoes and other special controls........
748             Applications (classification, advisory, and 
                    license) and documentation..............
750             Application processing, issuance or and 
                    denial..................................
752             Special comprehensive license...............
754             Short supply controls.......................
756             Appeals.....................................
758             Export clearance requirements...............
760             Restrictive trade practices or boycotts.....

[[Page 68]]

762             Recordkeeping...............................
764             Enforcement and protective measures.........
766             Administrative enforcement proceedings......
768             Foreign availability determination 
                    procedures and criteria.................
770             Interpretations.............................
772             Definitions of terms........................
774             The Commerce Control List...................
775-799   [Reserved]

[[Page 69]]



       SUBCHAPTER A--NATIONAL SECURITY INDUSTRIAL BASE REGULATIONS





PART 700--DEFENSE PRIORITIES AND ALLOCATIONS SYSTEM--Table of Contents




                           Subpart A--Purpose

Sec.
700.1  Purpose of this regulation.

                           Subpart B--Overview

700.2  Introduction.
700.3  Priority ratings and rated orders.
700.4  Controlled materials.
700.5  Special priorities assistance.
700.6  Official actions.
700.7  Compliance.

                         Subpart C--Definitions

700.8  Definitions.

                    Subpart D--Industrial Priorities

700.10  Delegation of authority.
700.11  Priority ratings.
700.12  Elements of a rated order.
700.13  Acceptance and rejection of rated orders.
700.14  Preferential scheduling.
700.15  Extension of priority ratings.
700.16  Changes or cancellations of priority ratings and rated orders.
700.17  Use of rated orders.
700.18  Limitations on placing rated orders.

          Subpart E--Industrial Priorities for Energy Programs

700.20  Use of priority ratings.
700.21  Application for priority rating authority.

                   Subpart F--The Controlled Materials

700.30  Management of the controlled materials.
700.31  Specific rules for controlled materials suppliers and users.

                        Subpart G--Critical Items

700.40  General provisions.
700.41  Metalworking machines.

                Subpart H--Special Priorities Assistance

700.50  General provisions.
700.51  Requests for priority rating authority.
700.52  Examples of assistance.
700.53  Criteria for assistance.
700.54  Instances where assistance will not be provided.
700.55  Assistance programs with Canada and other nations.

                       Subpart I--Official Actions

700.60  General provisions.
700.61  Rating Authorizations.
700.62  Directives.
700.63  Letters of Understanding.

                          Subpart J--Compliance

700.70  General provisions.
700.71  Audits and investigations.
700.72  Compulsory process.
700.73  Notification of failure to comply.
700.74  Violations, penalties, and remedies.
700.75  Compliance conflicts.

             Subpart K--Adjustments, Exceptions, and Appeals

700.80  Adjustments or exceptions.
700.81  Appeals.

                   Subpart L--Miscellaneous Provisions

700.90  Protection against claims.
700.91  Records and reports.
700.92  Applicability of this regulation and official actions.
700.93  Communications.

Schedule I to Part 700--Authorized Programs and Delegate Agencies
Schedule II to Part 700--Controlled Materials
Schedule III to Part 700--Technical Definitions of Controlled Materials 
          Products
Schedule IV to Part 700--Copper Controlled Materials Producers' Set-
          aside Base and Percentages
Schedule V to Part 700--Nickel Alloys Controlled Materials Producers' 
          Set-aside Base and Percentages
Appendix I to Part 700--Delegations of Authority
Appendix II to Part 700--Interagency Memorandum of Understanding
Appendix III to Part 700--Form ITA-999; Request for Special Priorities 
          Assistance
Appendix IV to Part 700--Memorandum of Understanding on Priorities and 
          Allocations Support Between the U.S. Department of Commerce 
          and the Canadian Department of Supply and Services

    Authority: Secs. 101-103, 701-707, 709, and 713, Defense Production 
Act of 1950 (Pub. L. 81-774, 64 Stat. 798,) as amended (50 U.S.C.

[[Page 70]]

app. 2071-2073, 2151-2157, 2159, and 2163); E.O. 10480, 3 CFR 1949-53 
Comp. p. 962, as amended; E.O. 12148, 3 CFR 1979 Comp. p. 412, as 
amended; Defense Mobilization Order (DMO) 3, 44 CFR part 322; DMO-12, 44 
CFR part 329; DMO-13, 44 CFR part 330, 50 U.S.C. 486, 10 U.S.C. 4501 and 
9501, 50 U.S.C. 82, and Executive Order 12742 of January 8, 1991, 56 FR 
1079.


    Source: 49 FR 30414, July 30, 1984, unless otherwise noted. 
Redesignated at 54 FR 601, Jan. 9, 1989.



                           Subpart A--Purpose



Sec. 700.1  Purpose of this regulation.

    (a) Title I of the Defense Production Act of 1950, as amended (50 
U.S.C. App. 2061, et seq.) (Defense Production Act), authorizes the 
President: to require the priority performance of contracts and orders 
necessary or appropriate to promote the national defense over other 
contracts or orders; to allocate materials and facilities as necessary 
or appropriate to promote the national defense; and to require the 
allocation of, or the priority performance under contracts or orders 
relating to, supplies of materials and equipment in order to assure 
domestic energy supplies for national defense needs.
    (b) This regulation consolidates, simplifies, and revises the 
Defense Materials System and the Defense Priorities System regulations, 
directions, and orders. The Defense Priorities and Allocations System 
(DPAS) helps to keep current national defense programs on schedule and 
provides an operating system that can be rapidly expanded in a national 
emergency.
    (c) To aid in understanding and using the DPAS, an overview of its 
major provisions is incorporated into this regulation as subpart B--
Overview. The full text of the DPAS is found in subparts D through L.



                           Subpart B--Overview



Sec. 700.2  Introduction.

    (a) The Federal Emergency Management Agency authorizes certain 
national defense programs for priorities and allocations support. For 
example, military aircraft production, ammunition, and certain programs 
which maximize domestic energy supplies are ``authorized programs.'' A 
complete list of currently authorized programs is provided at Schedule 
I.
    (b) To ensure the preferential treatment of certain contracts and 
orders for authorized programs, the Department of Commerce administers 
the DPAS.
    (c) Commerce has delegated authority to place priority ratings on 
contracts or orders necessary or appropriate to promote the national 
defense to the government agencies that issue such contracts or orders. 
Schedule I includes a list of agencies delegated this authority. Copies 
of the Delegations of Authority are provided at Appendix I. They set 
forth the authorities delegated and those retained by Commerce.



Sec. 700.3  Priority ratings and rated orders.

    (a) Rated orders are identified by a priority rating consisting of 
the rating--either DX or DO--and a program identification symbol. Rated 
orders take preference over all unrated orders as necessary to meet 
required delivery dates. Among rated orders, DX rated orders take 
preference over DO rated orders. Program identification symbols indicate 
which authorized program is involved with the rated order. For example, 
A1 identifies defense aircraft programs and A7 signifies defense 
electronic programs. The program identification symbols, in themselves, 
do not connote any priority.
    (b) Persons receiving rated orders must give them preferential 
treatment as required by this regulation. This means a person must 
accept and fill a rated order for items that the person normally 
supplies. The existence of previously accepted unrated or lower rated 
orders is not sufficient reason for rejecting a rated order. Persons are 
required to reschedule unrated orders if they conflict with performance 
against a rated order. Similarly, persons must reschedule DO rated 
orders if they conflict with performance against a DX rated order.
    (c) All rated orders must be scheduled to the extent possible to 
ensure delivery by the required delivery date.
    (d) Persons who receive rated orders must in turn place rated orders 
with their suppliers for the items they need

[[Page 71]]

to fill the orders. This provision ensures that suppliers will give 
priority treatment to rated orders from contractor to subcontractor to 
suppliers throughout the procurement chain.
    (e) Persons may place a priority rating on orders only when they are 
in receipt of a rated order, have been explicitly authorized to do so by 
the Department of Commerce or a Delegate Agency, or are otherwise 
permitted to do so by this regulation.



Sec. 700.4  Controlled materials.

    (a) Federal central management of certain key materials, designated 
``controlled materials'', has been essential in the past to effective 
industrial mobilizations. Accordingly, special rules are maintained in 
peacetime to provide an operating mechanism that can be rapidly expanded 
during a national emergency to meet increased defense and other 
essential needs. Currently, the controlled materials are steel, copper, 
aluminum, and nickel alloys.
    (b) Under the controlled materials program, the Department of 
Commerce requires suppliers of controlled materials to accept rated 
orders up to a specified quantity of material during a given period of 
time. This quantity is called a ``set-aside''. This provision ensures 
that the material will be available when rated orders are placed. In 
addition, the system ensures that controlled materials producers are 
treated equitably, for after the set-aside quantity levels have been 
reached, controlled materials producers may generally reject additional 
rated orders. These orders would then be filled by other controlled 
materials producers who had not exhausted their set-aside requirement.
    (c) In time of national emergency, the level and scope of the 
controlled materials program may be greatly expanded to ensure the 
necessary allocation of materials and in order to direct general 
industrial activity toward supporting the requirements of the emergency.
    (d) Certain other items, in addition to the controlled materials, 
have critical importance to national defense programs. From time-to-
time, special rules, similar to those for controlled materials, may be 
needed to manage those materials.
    (e) If items become scarce and critical and the requirements of the 
national defense cannot be met without creating a significant 
dislocation in the civilian market place so as to create appreciable 
hardship, special rules may be established under section 101(b) of the 
Defense Production Act to control the general distribution of such items 
in the civilian market.



Sec. 700.5  Special priorities assistance.

    (a) The DPAS is designed to be largely self-executing. However, from 
time-to-time production or delivery problems will arise. In this event, 
special priorities assistance is available from Commerce and from the 
Delegate Agencies.
    (b) Special priorities assistance is available for any reason 
consistent with this regulation. Generally, special priorities 
assistance is provided to expedite deliveries, resolve delivery 
conflicts, place rated orders, locate suppliers, or to verify 
information supplied by customers and vendors. Special priorities 
assistance may also be used to request rating authority for items not 
automatically ratable.



Sec. 700.6  Official actions.

    When necessary, Commerce takes specific official actions to 
implement or enforce the provisions of this regulation and to provide 
special priorities assistance. Such actions may include the issuance of: 
Rating Authorizations, Directives, Letters of Understanding, Set-asides, 
and compliance documents (Administrative Subpoenas, Demands for 
Information, and Inspection Authorizations).



Sec. 700.7  Compliance.

    (a) Compliance with the provisions of this regulation and official 
actions is required by the Defense Production Act. Violators are subject 
to criminal penalties.
    (b) Any person who places or receives a rated order should be 
thoroughly familiar with, and must comply with, the provisions of this 
regulation.

[[Page 72]]



                         Subpart C--Definitions



Sec. 700.8  Definitions.

    The following definitions pertain to all sections of the regulation:
    Authorized program. A program approved by the Federal Emergency 
Management Agency for priorities and allocations support under the 
Defense Production Act.
    Construction. The erection, addition, extension, or alteration of 
any building, structure, or project, using materials or products which 
are to be an integral and permanent part of the building, structure, or 
project. Construction does not include maintenance and repair.
    Controlled materials. The various shapes and forms of steel, copper, 
aluminum, and nickel alloys, whether new, remelted, rerolled or redrawn, 
as specified in Schedule II, and as defined in Schedule III.
    Controlled materials suppliers. All persons, including producers, 
distributors, brokers, importers and exporters engaged in the sale or 
resale of controlled materials.
    Delegate Agency. A government agency authorized by delegation from 
the Department of Commerce to place priority ratings on contracts or 
orders needed to support authorized programs.
    Defense Production Act. the Defense Production Act of 1950, as 
amended (50 U.S.C. App. 2061, et seq.).
    Distributors of controlled materials. Those persons (including 
warehouse operators or jobbers, but not retailers) engaged in stocking 
controlled materials at locations regularly maintained for their sale or 
resale in the form or shape as received, or after performing such 
operations as cutting to length or shape, slitting, shearing, or sorting 
and grading.
    Further conversion. The further processing of controlled materials 
by a processor of such materials.
    Item. Any raw, in process, or manufactured material, article, 
commodity, supply, equipment, component, accessory, part, assembly, or 
product of any kind, technical information, process, or service.
    Lead time. The period of time specified in this regulation for the 
receipt of orders for controlled materials by a supplier in advance of 
the first day of the month in which shipment is required.
    Maintenance and repair and operating supplies (MRO):
    (a) Maintenance is the upkeep necessary to continue any plant, 
facility, or equipment in working condition.
    (b) Repair is the restoration of any plant, facility, or equipment 
to working condition when it has been rendered unsafe or unfit for 
service by wear and tear, damage, or failure of parts.
    (c) Operating supplies are any items carried as operating supplies 
according to a person's established accounting practice. Operating 
supplies may include hand tools and expendable tools, jigs, dies, 
fixtures used on production equipment, lubricants, cleaners, chemicals 
and other expendable items.
    (d) MRO does not include items produced or obtained for sale to 
other persons or for installation upon or attachment to the property of 
another person, or items required for the production of such items; 
items needed for the replacement of any plant, facility, or equipment; 
or items for the improvement of any plant, facility, or equipment by 
replacing items which are still in working condition with items of a new 
or different kind, quality, or design.
    Minimum mill quantity. The minimum quantity of a controlled material 
that may be obtained from a producer for shipment at any one time to any 
one destination.
    Official action. An action taken by Commerce under the authority of 
the Defense Production Act and this regulation. Such actions include the 
issuance of Set-asides, Rating Authorizations, Directives, Letters of 
Understanding, Demands for Information, Inspection Authorizations, and 
Administrative Subpoenas.
    Person. Any individual, corporation, partnership, association, or 
any other organized group of persons, and includes any agency of the 
United States Government or any other government.
    Production equipment. Any item of capital equipment used in 
producing materials or furnishing services that has a unit acquisition 
cost of $2,500 or

[[Page 73]]

more, an anticipated service life in excess of one year, and the 
potential for maintaining its integrity as a capital item.
    Rated order. A prime contract, a subcontract, or a purchase order in 
support of an authorized program issued in accordance with the 
provisions of this regulation.
    Set-aside. The amount of an item for which a supplier must reserve 
order book space in anticipation of the receipt of rated orders.

[49 FR 30414, July 30, 1984; 49 FR 50172, Dec. 27, 1984. Redesignated at 
54 FR 601, Jan. 9, 1989]



                    Subpart D--Industrial Priorities



Sec. 700.10  Delegation of authority.

    (a) The priorities and allocations authorities given to the 
President in Title I of the Defense Production Act have been delegated 
to the Director of the Federal Emergency Management Agency (FEMA), who, 
in turn, has delegated these authorities with respect to industrial 
resources to the Secretary of Commerce. FEMA retains the overall policy 
and coordinating functions for this delegated authority.
    (b) Within the Department of Commerce, these responsibilities have 
been assigned to the Office of Industrial Resource Administration. The 
Department of Commerce has authorized the Delegate Agencies to assign 
priority ratings to orders for items needed for authorized programs. 
Copies of these Delegations of Authority are provided at Appendix I. 
They set forth the authorities delegated and those retained by Commerce.



Sec. 700.11  Priority ratings.

    (a) Levels of priority. (1) There are two levels of priority 
established by this regulation, identified by the rating symbols ``DO'' 
and ``DX''.
    (2) All DO rated orders have equal priority with each other and take 
preference over unrated orders. All DX rated orders have equal priority 
with each other and take preference over DO rated orders and unrated 
orders. (For resolution of conflicts among rated orders of equal 
priority, see Sec. 700.14(c).)
    (3) In addition, a Directive issued by Commerce takes preference 
over any DX rated order, DO rated order, or unrated order, as stipulated 
in the Directive. (For a full discussion of Directives, see 
Sec. 700.62.)
    (b) Program identification symbols. Program identification symbols 
indicate which authorized program is being supported by a rated order. 
The list of authorized programs and their identification symbols are 
listed in Schedule I. For example, A1 identifies defense aircraft 
programs and A7 signifies defense electronic programs. Program 
identification symbols, in themselves, do not connote any priority.
    (c) Priority ratings. A priority rating consists of the rating 
symbol--DO and DX--and the program identification symbol, such as A1, 
B2, or H6. Thus, a contract for the production of an aircraft will 
contain a DO-A1 or DX-A1 priority rating. A contract for a radar set 
will contain a DO-A7 or DX-A7 priority rating.



Sec. 700.12  Elements of a rated order.

    Each rated order must include:
    (a) The appropriate priority rating (e.g. DO-A1, DX-A4, DO-H1);
    (b) A required delivery date or dates. The words ``immediately'' or 
``as soon as possible'' do not constitute a delivery date. A 
``requirements contract'' bearing a priority rating may contain no 
specific delivery date or dates and may provide for the furnishing of 
items from time-to-time or within a stated period against specific 
purchase orders or ``calls''. Such ``calls'' must specify a required 
delivery date or dates and are to be considered as rated as of the date 
of their receipt by the supplier and not as of the date of the original 
``requirements contract'';
    (c) The signature of an individual authorized to sign rated orders 
for the person placing the order. The signature certifies that the rated 
order is authorized under this regulation and that the requirements of 
this regulation are being followed; and
    (d) A statement that reads in substance:

    This is a rated order certified for national defense use, and you 
are required to follow all the provisions of the Defense Priorities and 
Allocations System regulation (15 CFR part 700).

[[Page 74]]



Sec. 700.13  Acceptance and rejection of rated orders.

    (a) Mandatory acceptance. (1) Except as otherwise specified in this 
section, a person shall accept every rated order received and must fill 
such orders regardless of any other rated or unrated orders that have 
been accepted.
    (2) A person shall not discriminate against rated orders in any 
manner such as by charging higher prices or by imposing different terms 
and conditions than for comparable unrated orders.
    (b) Mandatory rejection. Unless otherwise directed by Commerce:
    (1) A person shall not accept a rated order for delivery on a 
specific date if unable to fill the order by that date. However, the 
person must inform the customer of the earliest date on which delivery 
can be made and offer to accept the order on the basis of that date. 
Scheduling conflicts with previously accepted lower rated or unrated 
orders are not sufficient reason for rejection under this section.
    (2) A person shall not accept a DO rated order for delivery on a 
date which would interfere with delivery of any previously accepted DO 
or DX rated orders. However, the person must offer to accept the order 
based on the earliest delivery date otherwise possible.
    (3) A person shall not accept a DX rated order for delivery on a 
date which would interfere with delivery of any previously accepted DX 
rated orders, but must offer to accept the order based on the earliest 
delivery date otherwise possible.
    (c) Optional rejection. Unless otherwise directed by Commerce, rated 
orders may be rejected in any of the following cases as long as a 
supplier does not discriminate among customers:
    (1) If the person placing the order is unwilling or unable to meet 
regularly established terms of sale or payment;
    (2) If the order is for an item not supplied or for a service not 
performed;
    (3) If the order is for an item produced, acquired, or provided only 
for the supplier's own use for which no orders have been filled for two 
years prior to the date of receipt of the rated order. If, however, a 
supplier has sold some of these items, the supplier is obligated to 
accept rated orders up to that quantity or portion of production, 
whichever is greater, sold within the past two years;
    (4) If the person placing the rated order, other than the U.S. 
Government, makes the item or performs the service being ordered;
    (5) If the rated order is for a controlled material in an amount 
below the minimum mill quantity established in Schedule II, and the 
person placing the order is not willing to buy the minimum quantity;
    (6) If the rated order is for a controlled material and is not 
received by the controlled materials producer within the time frame 
specified in Schedule I;
    (7) If the applicable set-aside has been reached or would be 
exceeded by acceptance, except that a DX order must be accepted without 
regard for such set-aside;
    (8) If acceptance of a rated order or performance against a rated 
order would violate any other regulation, official action, or order of 
the Department of Commerce issued under the authority of the Defense 
Production Act [See Sec. 700.75].
    (d) Customer notification requirements. (1) A person must accept or 
reject a rated order in writing within ten working days after receipt of 
a DO rated order and within five working days after receipt of a DX 
rated order. The person must give reasons in writing for the rejection.
    (2) If a person has accepted a rated order and later discovers that, 
due to circumstances beyond the person's control, deliveries will be 
delayed, the person must notify the customer immediately, give the 
reasons for the delay, and advise of a new shipment date. If 
notification is given verbally, written confirmation must be provided 
within five working days.



Sec. 700.14  Preferential scheduling.

    (a) A person must schedule operations, including the acquisition of 
all needed production items, in a timely manner to satisfy the delivery 
requirements of each rated order. Modifying production or delivery 
schedules is necessary only when required delivery

[[Page 75]]

dates for rated orders cannot otherwise be met.
    (b) DO rated orders must be given production preference over unrated 
orders, if necessary to meet required delivery dates, even if this 
requires the diversion of items being processed or ready for delivery 
against unrated orders. Similarly, DX rated orders must be given 
preference over DO rated orders and unrated orders.

    Examples: If a person receives a DO rated order with a delivery date 
of June 3 and if meeting that date would mean delaying production or 
delivery of an item for an unrated order, the unrated order must be 
delayed. If a DX rated order is received calling for delivery on July 15 
and a person has a DO rated order requiring delivery on June 2 and 
operations can be scheduled to meet both deliveries, there is no need to 
alter production schedules to give any additional preference to the DX 
rated order.

    (c) If a person cannot fill all the rated orders of equal priority 
status received on the same day, the person must accept those orders 
which can be filled which have the earliest delivery dates. For example, 
the person must accept order A requiring delivery on December 15 before 
accepting order B requiring delivery on December 31. For those orders 
which cannot be filled on time, the supplier must inform the customer 
within the time limits set forth in Sec. 700.13(d), of the earliest date 
on which delivery can be made and offer to accept the order on the basis 
of that date.
    (d) If a person is unable to purchase needed production items in 
time to fill a rated order by its required delivery date, the person 
must fill the rated order by using inventoried production items. A 
person who uses inventoried items to fill a rated order may replace 
those items with the use of a rated order as provided in Sec. 700.17(b).



Sec. 700.15  Extension of priority ratings.

    (a) A person must use rated orders with suppliers to obtain items 
needed to fill a rated order. The person must use the priority rating 
indicated on the customer's rated order, except as otherwise provided in 
this regulation or as directed by the Department of Commerce.

    For example, if a person is in receipt of a DO-A3 rated order for a 
navigation system and needs to purchase semiconductors for its 
manufacture, that person must use a DO-A3 rated order to obtain the 
needed semiconductors.

    (b) The priority rating must be included on each successive order 
placed to obtain items needed to fill a customer's rated order. This 
continues from contractor to subcontractor to supplier throughout the 
entire procurement chain.



Sec. 700.16  Changes or cancellations of priority ratings and rated orders.

    (a) The priority rating on a rated order may be changed or cancelled 
by:
    (1) An official action of the Department of Commerce; or
    (2) Written notification from the person who placed the rated order 
(including a Delegate Agency).
    (b) If an unrated order is amended so as to make it a rated order, 
or a DO, rating is changed to a DX rating, the supplier must give the 
appropriate preferential treatment to the order as of the date the 
change is received by the supplier.
    (c) An amendment to a rated order that significantly alters a 
supplier's original production or delivery schedule shall constitute a 
new rated order as of the date of its receipt. The supplier must accept 
or reject the amended order according to the provisions of Sec. 700.13.
    (d) The following amendments do not constitute a new rated order: a 
change in shipping destination; a reduction in the total amount of the 
order; an increase in the total amount of the order which has negligible 
impact upon deliveries; a minor variation in size or design; or a change 
which is agreed upon between the supplier and the customer.
    (e) If a person no longer needs items to fill a rated order, any 
rated orders placed with suppliers for the items, or the priority rating 
on those orders, must be cancelled.
    (f) When a priority rating is added to an unrated order, or is 
changed or cancelled, all suppliers must be promptly notified in 
writing.

[[Page 76]]



Sec. 700.17  Use of rated orders.

    (a) A person must use rated orders to obtain:
    (1) Items which will be physically incorporated into other items to 
fill rated orders, including that portion of such items normally 
consumed, or converted into scrap or by-products, in the course of 
processing;
    (2) Containers or other packaging materials required to make 
delivery of the finished items against rated orders;
    (3) Services, other than contracts of employment, needed to fill 
rated orders; and
    (4) MRO needed to produce the finished items to fill rated orders. 
However, for MRO, the priority rating used must contain the program 
identification symbol H7 along with the rating symbol contained on the 
customer's rated order. For example, a person in receipt of a DO-A3 
rated order, who needs MRO, would place a DO-H7 rated order with the 
person's supplier.
    (b) A person may use a rated order to replace inventoried items 
(including finished items) if such items were used to fill rated orders, 
as follows:
    (1) The order must be placed within 90 days of the date of use of 
the inventory.
    (2) A DO rating symbol and the program identification symbol 
indicated on the customer's rated order must be used on the order 
(except as provided in Sec. 700.31(d)--Controlled materials program 
identification symbols). A DX rating symbol may not be used even if the 
inventory was used to fill a DX rated order.
    (3) If the priority ratings on rated orders from one customer or 
several customers contain different program identification symbols, the 
rated orders may be combined. In this case, the program identification 
symbol H1 must be used (i.e., DO-H1) (not applicable to controlled 
materials producers).
    (c) A person may combine DX and DO rated orders from one customer or 
several customers if the items covered by each level of priority are 
identified separately and clearly. If different program identification 
symbols are indicated on those rated orders of equal priority, the 
person must use the program identification symbol H1 (i.e., DO-H1 or DX-
H1), except as provided in Sec. 700.31(d) (Controlled materials program 
identification symbols).
    (d) Combining rated and unrated orders. (1) A person may combine 
rated and unrated orders provided that the rated quantities are 
identified separately and are also contained in a separate rated order 
which conforms to the requirements of Sec. 700.12 (Elements of a rated 
order). In addition to identifying clearly the rated quantities, the 
combined purchase order must contain a statement that the rated 
quantities are contained in a separate rated order placed in accordance 
with this regulation. Wherever possible, the separate rated order must 
be physically attached to the combined purchase order. A supplier must 
give preferential treatment to the rated quanitities of the combined 
order, if necessary. A supplier may not use the authorities of this 
regulation to give preferential treatment to the unrated portion.
    (2) Any supplier who believes that rated and unrated orders are 
being combined in a manner contrary to the intent of this regulation or 
in a fashion that causes undue or exceptional hardship may submit a 
request for adjustment or exception under Sec. 700.80.
    (e) A person may place a rated order for the minimum commercially 
procurable quantity even if the quantity needed to fill a rated order is 
less than that minimum. However, a person must combine rated orders as 
provided in paragraph (c) of this section, if possible, to obtain 
minimum procurable quantities.
    (f) A person is not required to place a priority rating on an order 
for less than $5,000 provided that delivery can be obtained in a timely 
fashion without the use of the priority rating.



Sec. 700.18  Limitations on placing rated orders.

    (a) General limitations. (1) A person may not place a DO or DX rated 
order unless entitled to do so under this regulation.
    (2) Rated orders may not be used to obtain:
    (i) Delivery on a date earlier than needed;
    (ii) A greater quantity of the item than needed, except to obtain a 
minimum procurable quantity. Separate

[[Page 77]]

rated orders may not be placed solely for the purpose of obtaining 
minimum procurable quantities on each order;
    (iii) Items in advance of the receipt of a rated order, except as 
specifically authorized by Commerce (see Sec. 700.51(c) for information 
on obtaining authorization for a priority rating in advance of a rated 
order); or
    (iv) Any of the following items unless specific priority rating 
authority has been obtained from a Delegate Agency or Commerce:
    (A) Items for plant improvement, expansion or construction, unless 
they will be physically incorporated into a construction project covered 
by a rated order; and
    (B) Production or construction equipment or items to be used for the 
manufacture of production equipment. [For information on requesting 
priority rating authority, see Sec. 700.53.]
    (b) Jurisdictional limitations. (1) The priorities and allocations 
authority for certain items has been delegated under Executive Order 
10480, as amended, to other agencies, and, thus, the provisions of this 
regulation are not applicable to them. These items include:
    (i) Petroleum, gas, solid fuel, and electric power and all other 
forms of energy (Department of Energy);
    (ii) Food and the domestic distribution of farm equipment and 
commercial fertilizer (Department of Agriculture);
    (iii) Civil transportation and the movement of persons and property 
by all modes (Department of Transportation);
    (iv) Minerals (Department of the Interior);
    (v) Water (Department of Defense--U.S. Army Corps of Engineers);
    (vi) Housing facilities (Department of Housing and Urban 
Development);
    (vii) Health facilities (Department of Health and Human Services); 
and
    (viii) Radioisotopes, stable isotopes, source material, and special 
nuclear material, produced in Government-owned plants or facilities 
operated by or for Department of Energy (Department of Energy).
    (2) The jurisdiction of the Department of Commerce and the 
Departments of Energy, Agriculture, and the Interior over certain 
specific items included in the categories listed above has been 
clarified by Interagency Memoranda of Understanding. Copies of these 
Memoranda are provided for information at Appendix II.
    (3) The following items under the jurisdiction of Commerce are 
currently excluded from the rating provisions of this regulation; 
however, these items are subject to Commerce Directives. These excluded 
items are:

Communication services
Copper raw materials (as defined in Schedule III)
Crushed stone
Gravel
Sand
Scrap
Slag
Steam heat, central
Waste paper



          Subpart E--Industrial Priorities for Energy Programs



Sec. 700.20  Use of priority ratings.

    (a) Section 101(c) of the Defense Production Act authorizes the use 
of priority ratings for projects which maximize domestic energy 
supplies.
    (b) Projects which maximize domestic energy supplies include those 
which maintain or further domestic energy exploration, production, 
refining, and transportation; maintain or further the conservation of 
energy; or are involved in the construction or maintenance of energy 
facilities.



Sec. 700.21  Application for priority rating authority.

    (a) For projects believed to maximize domestic energy supplies, a 
person may request priority rating authority for scarce, critical and 
essential supplies of materials and equipment by submitting DOE Form PR 
437 to the Department of Energy. Blank applications and further 
information may be obtained from the Technical Information Center, 
Department of Energy, P.O. Box 62, Oak Ridge, Tennessee 37830, or from 
the Procurement and Assistance Management Directorate, Department of 
Energy, Attn: MA 932, Forrestal Building, 1000 Independence Avenue, SW., 
Washington, DC 20585.
    (b) On receipt of the application, the Department of Energy will:

[[Page 78]]

    (1) Determine if the project maximizes domestic energy supplies; and
    (2) Find whether the materials or equipment involved in the 
application are critical and essential to the project.
    (c) If the Department of Energy notifies Commerce that the project 
maximizes domestic energy supplies and that the materials or equipment 
are critical and essential, Commerce must find whether the items in 
question are scarce and whether there is a need to use the priorities 
and allocations authorities.
    (1) Scarcity implies an unusual difficulty in obtaining the material 
or equipment in a timeframe consistent with the timely completion of the 
energy project. Among the factors to be used in making the scarcity 
finding will be the following:
    (i) Value and volume of material or equipment shipments;
    (ii) Consumption of material and equipment;
    (iii) Volume and market trends of imports and exports;
    (iv) Domestic and foreign sources of supply;
    (v) Normal levels of inventories;
    (vi) Rates of capacity utilization;
    (vii) Volume of new orders; and
    (viii) Lead times for new orders.
    (2) In finding whether there is a need to use the priorities and 
allocations authorities, Commerce will consider alternative supply 
solutions and other measures.
    (d) If Commerce does not find that the items of material or 
equipment are scarce, it will not proceed to analyze the need to use the 
priorities and allocations authorities.
    (e) Commerce will inform the Department of Energy of the results of 
its analysis. If Commerce has made the two required findings, it will 
authorize the Department of Energy to grant the use of a priority rating 
to the applicant.
    (f) Schedule I includes a list of authorized programs to support the 
maximization of domestic energy supplies. A Department of Energy 
regulation setting forth the procedures and criteria used by the 
Department of Energy in making its determination and findings is 
published in 10 CFR part 216.



                   Subpart F--The Controlled Materials



Sec. 700.30  Management of the controlled materials.

    (a) The controlled materials are steel, copper, aluminum, and nickel 
alloys in the shapes and forms listed in Schedule II and defined in 
Schedule III. These materials are basic industrial resources necessary 
for both authorized defense programs and for general industrial 
activity. Federal management of these four materials assures the timely 
availability of the materials to meet current authorized program 
requirements; assures the equitable distribution of requirements among 
the suppliers of the materials; and provides a flexible and expandable 
system capable of directing general economic and industrial activity 
during times of emergency.
    (b) Before controlled materials can be used for authorized programs, 
the Delegate Agencies must obtain specific approval, known as an 
allotment, from the Federal Emergency Management Agency (FEMA). 
Accordingly, the Delegate Agencies submit to FEMA requirements for the 
controlled materials necessary to support their authorized programs. 
After reviewing the available supply of the materials and other national 
security, economic and policy considerations, FEMA approves the use of 
specific quantities of controlled materials by issuing allotments to 
each Delegate Agency. (Special controlled materials provisions 
applicable to the Delegate Agencies are found in the Delegations of 
Authority and the U.S.-Canadian Memorandum of Understanding appended to 
this regulation.)
    (c) To assure the timely availability of controlled materials, the 
Department of Commerce manages their supply and distribution by 
requiring producers and distributors of controlled materials to set-
aside or reserve space in their order books for the receipt of rated 
orders. This process is described in greater detail in the following 
section.



Sec. 700.31  Specific rules for controlled materials suppliers and users.

    (a) Rated orders. Rated orders are used to obtain controlled 
materials

[[Page 79]]

needed for authorized programs. Such orders must comply with the 
requirements of Sec. 700.12 (Elements of a rated order). In addition, a 
rated order for controlled materials placed with a producer must be in 
sufficient detail to permit entry on mill schedules.
    (b) Set-asides. (1) Controlled materials suppliers are issued set-
asides by type and shape of controlled material as provided in the 
following paragraphs. Each supplier is required to accept all rated 
orders received up to the set-aside level. The supplier may reject DO 
rated orders after the set-aside quantity has been filled except that 
the supplier must accept all DX rated orders regardless of the set-aside 
level.
    (2) A person who has had a DO rated order rejected because a set-
aside has been filled, must attempt to place the rated order with other 
controlled materials suppliers whose set-asides are not filled. If still 
unable to place the rated order, the person should request special 
priorities assistance (see Subpart H).
    (3) Steel controlled materials. (i) A set-aside is applicable to 
each steel controlled materials producer who receives a written set-
aside notification from Commerce.
    (ii) Any steel controlled materials producer who has not received a 
set-aside notification must accept, in accordance with the provisions of 
this regulation, all rated orders received, but may receive a set-aside 
by applying in writing to Commerce.
    (iii) The set-aside is a specified monthly quantity based on average 
monthly shipments during a specific base period.
    (4) Copper controlled materials. (i) Set-asides are applicable to 
all copper controlled materials producers.
    (ii) The monthly set-aside for each copper controlled materials 
producer is calculated by multiplying the producer's set-aside base by 
the appropriate set-aside percentage for each product. The set-aside 
percentage and set-aside base are contained in Schedule IV.
    (5) Aluminum controlled materials. (i) A set-aside is applicable to 
each aluminum controlled materials producer who receives a written set-
aside notification from Commerce.
    (ii) Any aluminum controlled materials producer who has not received 
a set-aside notification must, in accordance with the provisions of this 
regulation, accept all rated orders received, but may receive a set-
aside in writing by applying in writing to Commerce.
    (iii) The set-aside for aluminum ingot and aluminum molten metal is 
calculated based on the average monthly production capacity during a 
specific base period.
    (iv) The set-aside for all other aluminum controlled materials is 
calculated based on the average monthly shipments during a specific base 
period.
    (6) Nickel alloys controlled materials. (i) Set-asides are 
applicable to all nickel alloys controlled materials producers.
    (ii) The monthly set-aside for each nickel alloys controlled 
materials producer is calculated by multiplying the producer's set-aside 
base by the appropriate set-aside percentage for each product. The set-
aside percentage and set-aside base are contained in Schedule V.
    (c) Order books and product lead times. (1) Each controlled 
materials producer must open its order books for the acceptance of DO 
rated orders at least 45 days prior to the commencement of the 
applicable minimum lead times provided in Schedule II for the various 
shapes and forms of controlled materials.
    (2) When order books are open, a controlled materials producer must 
accept all rated orders received until the minimum lead time shown in 
Schedule II is reached or until the set-aside level is reached.
    (3) Once the minimum lead time is reached, a controlled materials 
producer may devote remaining capacity to unrated orders, even if the 
set-aside has not been filled. However, the producer must accept all DX 
rated orders without regard to lead time. If unable to make delivery by 
the required date, the producer must offer to accept the order in 
accordance with Sec. 700.13.
    (d) Controlled materials program identification symbols. (1) A 
controlled materials producer must use the program identification symbol 
H2 on all rated orders to obtain production materials or to replace 
inventories used to fill rated orders except for materials for further 
conversion.

[[Page 80]]

    (2) A controlled materials producer must use the program 
identification symbol H3 on rated orders to obtain controlled materials 
for further conversion needed for production or inventory replacement.
    (3) A controlled materials distributor must use the program 
identification symbol H4 on rated orders to obtain controlled materials 
needed to fill rated orders, or to replace in inventory, controlled 
materials used to fill rated orders.
    (e) Controlled materials shipments and requirements data. (1) 
Controlled materials producers and distributors are required to maintain 
and submit to Commerce upon request, data on shipments against rated and 
unrated orders and on related activities [OMB Nos. 0625-0107 
(Recordkeeping), 0625-0011 (Copper), 0625-0016 (Aluminum), 0625-0017 
(Steel), and 0625-0021 (Nickel Alloys)].
    (2) Persons performing against rated orders must provide, upon 
request of the appropriate Delegate Agency or the prime contractor, data 
on requirements for controlled materials needed to fill rated contracts 
for items manufactured to authorized program specifications or used in 
construction for authorized programs [OMB Nos. 0625-0107 (Recordkeeping) 
and 0625-0013 (Controlled Materials Requirements--Production, 
Construction, or Research and Development)]. Prime contractors may 
request this information from their subcontractors only when needed to 
satisfy a request for requirements data from a Delegate Agency.



                        Subpart G--Critical Items



Sec. 700.40  General provisions.

    (a) From time-to-time Commerce may determine that certain items have 
a critical importance to industrial production with respect to the 
national defense and authorized programs. Special rules for such items 
are set forth in this subpart.
    (b) Commerce may establish special rules as needed to ensure that 
critical items are available to authorized programs in a timely fashion 
and to provide for an equitable and orderly distribution of requirements 
for such items among all suppliers of the items.



Sec. 700.41  Metalworking machines.

    (a) ``Metalworking machines'' include power driven, manual or 
automatic, metal cutting and metal forming machines and complete 
machines not supported in the hands of an operator when in use. Basic 
machines with a list price of $2,500 or less are not covered by this 
section.
    (b) Metalworking machines covered by this section include:

Bending and forming machines
Boring machines
Broaching machines
Drilling and tapping machines
Electrical discharge, ultrasonic and chemical erosion machines
Forging machinery and hammers
Gear cutting and finishing machines
Grinding machines
Hydraulic and pneumatic presses, power driven
Machining centers and way-type machines
Manual presses
Mechanical presses, power driven
Milling machines
Miscellaneous machine tools
Miscellaneous secondary metal forming and cutting machines
Planers and shapers
Polishing, lapping, boring, and finishing machines
Punching and shearing machines
Riveting machines
Saws and filing machines
Turning machines, lathes, including automatic
Wire and metal ribbon forming machines

    (c) A metalworking machine producer is not required to accept DO 
rated orders calling for delivery in any month of a total quantity of 
any size of machine in excess of 60 percent of scheduled production of 
that size of machine for that month, or any DO rated orders received 
less than three months prior to the beginning of the month for which 
delivery is requested. However, DX rated orders must be accepted without 
regard to a set-aside or the lead time, if delivery can be made by the 
required date.



                Subpart H--Special Priorities Assistance



Sec. 700.50  General provisions.

    (a) The DPAS is designed to be largely self-executing. However, it 
is anticipated that from time-to-time problems will occur. In this 
event, a person

[[Page 81]]

should immediately contact the appropriate contract administration 
officer for guidance or assistance. If additional formal aid is needed, 
special priorities assistance should be sought from the Delegate Agency 
through the contract administration officer. If the Delegate Agency is 
unable to resolve the problem or to authorize the use of a priority 
rating and believes additional assistance is warranted, the Delegate 
Agency may forward the request to the Department of Commerce for action. 
Special priorities assistance is a service provided to alleviate 
problems that do arise.
    (b) Special priorities assistance can be provided for any reason in 
support of this regulation, such as assisting in obtaining timely 
deliveries of items needed to satisfy rated orders or authorizing the 
use of priority ratings on orders to obtain items not automatically 
ratable under this regulation.
    (c) A request for special priorities assistance or priority rating 
authority must be submitted on Form ITA-999 (OMB control number 0625-
0015) to the local contract administration representative. Form ITA-999 
may be obtained from the Delegate Agency representative, any Commerce 
District Office, or from the Department of Commerce. A sample Form ITA-
999 is attached at Appendix III.

[49 FR 30414, July 30, 1984; 49 FR 50171, Dec. 27, 1984. Redesignated at 
54 FR 601, Jan. 9, 1989]



Sec. 700.51  Requests for priority rating authority.

    (a) If a rated order is likely to be delayed because a person is 
unable to obtain items not normally rated under this regulation, the 
person may request the authority to use a priority rating in ordering 
the needed items. Examples of items for which priority ratings can be 
authorized include:
    (1) Production or construction equipment;
    (2) Computers when not used as production items; and
    (3) Expansion, rebuilding or replacing plant facilities.
    (b) Rating authority for production or construction equipment. (1) A 
request for priority rating authority for production or construction 
equipment must be submitted to the appropriate Delegate Agency. The 
Delegate Agency may establish particular forms to be used for these 
requests (e.g., Department of Defense Form DD 691.)
    (2) When the use of a priority rating is authorized for the 
procurement of production or construction equipment, a rated order may 
be used either to purchase or to lease such equipment. However, in the 
latter case, the equipment may be leased only from a person engaged in 
the business of leasing such equipment or from a person willing to lease 
rather than sell.
    (c) Rating authority in advance of a rated prime contract. (1) In 
certain cases and upon specific request, Commerce, in order to promote 
the national defense, may authorize a person to place a priority rating 
on an order to a supplier in advance of the issuance of a rated prime 
contract. In these instances, the person requesting advance rating 
authority must obtain sponsorship of the request from the appropriate 
Delegate Agency. The person shall also assume any business risk 
associated with the placing of rated orders if these orders have to be 
cancelled in the event the rated prime contract is not issued.
    (2) The person must state the following in the request:

    It is understood that the authorization of a priority rating in 
advance of our receiving a rated prime contract from a Delegate Agency 
and our use of that priority rating with our suppliers in no way commits 
the Delegate Agency, the Department of Commerce or any other government 
agency to enter into a contract or order or to expend funds. Further, we 
understand that the Federal Government shall not be liable for any 
cancellation charges, termination costs, or other damages that may 
accrue if a rated prime contract is not eventually placed and, as a 
result, we must subsequently cancel orders placed with the use of the 
priority rating authorized as a result of this request.

    (3) In reviewing requests for rating authority in advance of a rated 
prime contract, Commerce will consider, among other things, the 
following criteria:
    (i) The probability that the prime contract will be awarded;
    (ii) The impact of the resulting rated orders on suppliers and on 
other authorized programs;

[[Page 82]]

    (iii) Whether the contractor is the sole source;
    (iv) Whether the item being produced has a long lead time;
    (v) The political sensitivity of the project; and
    (vi) The time period for which the rating is being requested.
    (4) Commerce may require periodic reports on the use of the rating 
authority granted under paragraph (c) of this section.
    (5) If a rated prime contract is not issued, the person shall 
promptly notify all suppliers who have received rated orders pursuant to 
the advanced rating authority that the priority rating on those orders 
is cancelled.



Sec. 700.52  Examples of assistance.

    (a) While special priorities assistance may be provided for any 
reason in support of this regulation, it is usually provided in 
situations where:
    (1) A person is experiencing difficulty in obtaining delivery 
against a rated order by the required delivery date; or
    (2) A person cannot locate a supplier for an item needed to fill a 
rated order.
    (b) Other examples of special priorities assistance include:
    (1) Ensuring that rated orders receive preferential treatment by 
suppliers;
    (2) Resolving production or delivery conflicts between various rated 
orders;
    (3) Assisting in placing rated orders with suppliers;
    (4) Verifying the urgency of rated orders; and
    (5) Determining the validity of rated orders.



Sec. 700.53  Criteria for assistance.

    Requests for special priorities assistance should be timely, i.e., 
the request has been submitted promptly and enough time exists for the 
Delegate Agency or Commerce to effect a meaningful resolution to the 
problem, and must establish that:
    (a) There is an urgent need for the item; and
    (b) The applicant has made a reasonable effort to resolve the 
problem.



Sec. 700.54  Instances where assistance will not be provided.

    Special priorities assistance is provided at the discretion of the 
Delegate Agencies and Commerce when it is determined that such 
assistance is warranted to meet the objectives of this regulation. 
Examples where assistance will not be provided include situations when a 
person is attempting to:
    (a) Secure a price advantage;
    (b) Obtain delivery prior to the time required to fill a rated 
order;
    (c) Gain competitive advantage;
    (d) Disrupt an industry apportionment program in a manner designed 
to provide a person with an unwarranted share of scarce items; or
    (e) Overcome a supplier's regularly established terms of sale or 
conditions of doing business.



Sec. 700.55  Assistance programs with Canada and other nations.

    (a) To promote military assistance to foreign nations, this section 
provides for authorizing priority ratings to persons in Canada and in 
other foreign nations to obtain items in the United States in support of 
authorized programs. Although priority ratings have no legal authority 
outside of the United States, this section also provides information on 
how persons in the United States may obtain informal assistance in 
Canada.
    (b) Canada. (1) The joint U.S.-Canadian military arrangements for 
the defense of North America and the integrated nature of their defense 
industries as set forth in the U.S.-Canadian Statement of Principles for 
Economic Cooperation (October 26, 1950) require close coordination and 
the establishment of a means to provide mutual assistance to the defense 
industries located in both countries.
    (2) The Department of Commerce coordinates with the Canadian 
Department of Supply and Services on all matters of mutual concern 
relating to the administration of this regulation. A copy of the 
Memorandum of Understanding between the two departments is provided at 
appendix IV.
    (3) Any person in the United States ordering defense items in Canada 
should inform the Canadian supplier that the items being ordered are to 
be used to fill a rated order. The Canadian supplier should be informed 
that if production materials are needed from the United States by the 
supplier or the

[[Page 83]]

supplier's vendor to fill the order, they should contact the Canadian 
Department of Supply and Services for authority to place rated orders in 
the United States.
    (4) Any person in Canada producing defense items for the Canadian 
government may also obtain priority rating authority for items to be 
purchased in the United States by applying to the Canadian Department of 
Supply and Services in accordance with procedures specified by that 
Department.
    (5) Persons in Canada needing special priorities assistance in 
obtaining defense items in the United States may apply for such 
assistance to the Canadian Department of Supply and Services. The 
Department of Supply and Services will forward appropriate requests to 
Commerce.
    (6) Any person in the United States requiring assistance in 
obtaining items in Canada must submit a request through the Delegate 
Agency to Commerce on Form ITA-999. Commerce will forward appropriate 
requests to the Canadian Department of Supply and Services.
    (c) Foreign nations. (1) Any person in a foreign nation other than 
Canada requiring assistance in obtaining defense items in the United 
States or priority rating authority for defense items to be purchased in 
the United States, should apply for such assistance or rating authority 
to the U.S. Department of Defense. The request must be sponsored by the 
government of the foreign nation prior to its submission.
    (2) If the Department of Defense endorses the request, it will be 
forwarded to Commerce for appropriate action.



                       Subpart I--Official Actions



Sec. 700.60  General provisions.

    (a) Commerce may, from time-to-time, take specific official actions 
to implement or enforce the provisions of this regulation.
    (b) Several of these official actions (Rating Authorizations, 
Directives, and Letters of Understanding) are discussed in this subpart. 
Other official actions which pertain to compliance (Administrative 
Subpoenas, Demands for Information, and Inspection Authorizations) are 
discussed in Sec. 700.71(b).



Sec. 700.61  Rating Authorizations.

    (a) A Rating Authorization is an official action granting specific 
priority rating authority that:
    (1) Permits a person to place a priority rating on an order for an 
item not normally ratable under this regulation; or
    (2) Authorizes a person to modify a priority rating on a specific 
order or series of contracts or orders.
    (b) To request priority rating authority, see Sec. 700.51.



Sec. 700.62  Directives.

    (a) A Directive is an official action which requires a person to 
take or refrain from taking certain actions in accordance with its 
provisions.
    (b) A person must comply with each Directive issued. However, a 
person may not use or extend a Directive to obtain any items from a 
supplier, unless expressly authorized to do so in the Directive.
    (c) Directives take precedence over all DX rated orders, DO rated 
orders, and unrated orders previously or subsequently received, unless a 
contrary instruction appears in the Directive.



Sec. 700.63  Letters of Understanding.

    (a) A Letter of Understanding is an official action which may be 
issued in resolving special priorities assistance cases to reflect an 
agreement reached by all parties (Commerce, the Delegate Agency, the 
supplier, and the customer).
    (b) A Letter of Understanding is not used to alter scheduling 
between rated orders, to authorize the use of priority ratings, to 
impose restrictions under this regulation, or to take other official 
actions. Rather, Letters of Understanding are used to confirm production 
or shipping schedules which do not require modifications to other rated 
orders.



                          Subpart J--Compliance



Sec. 700.70  General provisions.

    (a) Compliance actions may be taken for any reason necessary or 
appropriate to the enforcement or the administration of the Defense 
Production Act, this regulation, or an official action.

[[Page 84]]

Such actions include audits, investigations, or other inquiries.
    (b) Any person who places or receives a rated order should be 
thoroughly familiar with, and must comply with, the provisions of this 
regulation.
    (c) Willful violation of any of the provisions of Title I or section 
705 of the Defense Production Act, this regulation, or an official 
action of the Department of Commerce, is a criminal act, punishable as 
provided in the Defense Production Act and as set forth in Sec. 700.74 
of this regulation.



Sec. 700.71  Audits and investigations.

    (a) Audits and investigations are official examinations of books, 
records, documents, other writings and information to ensure that the 
provisions of the Defense Production Act, this regulation, and official 
actions have been properly followed. An audit or investigation may also 
include interviews and a systems evaluation to detect problems or 
failures in the implementation of this regulation.
    (b) When undertaking an audit, investigation, or other inquiry, the 
Department of Commerce shall:
    (1) Define the scope and purpose in the official action given to the 
person under investigation, and
    (2) Have ascertained that the information sought or other adequate 
and authoritative data are not available from any Federal or other 
responsible agency.
    (c) In administering this regulation, Commerce may issue the 
following documents which constitute official actions:
    (1) Administrative Subpoenas. An Administrative Subpoena requires a 
person to appear as a witness before an official designated by the 
Department of Commerce to testify under oath on matters of which that 
person has knowledge relating to the enforcement or the administration 
of the Defense Production Act, this regulation, or official actions. An 
Administrative Subpoena may also require the production of books, 
papers, records, documents and physical objects or property.
    (2) Demand for Information. A Demand for Information requires a 
person to furnish to a duly authorized representative of the Department 
of Commerce any information necessary or appropriate to the enforcement 
or the administration of the Defense Production Act, this regulation, or 
official actions.
    (3) Inspection Authorizations. An Inspection Authorization requires 
a person to permit a duly authorized representative of Commerce to 
interview the person's employees or agents, to inspect books, records, 
documents, other writings and information in the person's possession or 
control at the place where that person usually keeps them, and to 
inspect a person's property when such interviews and inspections are 
necessary or appropriate to the enforcement or the administration of the 
Defense Production Act, this regulation, or official actions.
    (d) The production of books, records, documents, other writings and 
information will not be required at any place other than where they are 
usually kept if, prior to the return date specified in the 
Administrative Subpoena or Demand for Information, a duly authorized 
official of Commerce is furnished with copies of such material that are 
certified under oath to be true copies. As an alternative, a person may 
enter into a stipulation with a duly authorized official of Commerce as 
to the content of the material.
    (e) An Administrative Subpoena, Demand for Information, or 
Inspection Authorization, shall include the name, title or official 
position of the person to be served, the evidence sought to be adduced, 
and its general relevance to the scope and purpose of the audit, 
investigation, or other inquiry. If employees or agents are to be 
interviewed; if books, records, documents, other writings, or 
information are to be produced; or if property is to be inspected; the 
Administrative Subpoena, Demand for Information, or Inspection 
Authorization will describe them with particularity.
    (f) Service of documents shall be made in the following manner:
    (1) Service of a Demand for Information or Inspection Authorization 
shall be made personally, or by Certified Mail--Return Receipt Requested 
at the person's last known address. Service of an Administrative 
Subpoena shall be made personally. Personal service may also be made by 
leaving a copy of the

[[Page 85]]

document with someone of suitable age and discretion at the person's 
last known dwelling or place of business.
    (2) Service upon other than an individual may be made by serving a 
partner, corporate officer, or a managing or general agent authorized by 
appointment or by law to accept service of process. If an agent is 
served, a copy of the document shall be mailed to the person named in 
the document.
    (3) Any individual 18 years of age or over may serve an 
Administrative Subpoena, Demand for Information, or Inspection 
Authorization. When personal service is made, the individual making the 
service shall prepare an affidavit as to the manner in which service was 
made and the identity of the person served, and return the affidavit, 
and in the case of subpoenas, the original document, to the issuing 
officer. In case of failure to make service, the reasons for the failure 
shall be stated on the original document.



Sec. 700.72  Compulsory process.

    (a) If a person refuses to permit a duly authorized representative 
of Commerce to have access to any premises or source of information 
necessary to the administration or the enforcement of the Defense 
Production Act, this regulation, or official actions, the Commerce 
representative may seek compulsory process. Compulsory process means the 
institution of appropriate legal action, including ex parte application 
for an inspection warrant or its equivalent, in any forum of appropriate 
jurisdiction.
    (b) Compulsory process may be sought in advance of an audit, 
investigation, or other inquiry, if, in the judgment of the Director of 
the Office of Industrial Resource Administration, U.S. Department of 
Commerce, in consultation with the Assistant General Counsel for 
International Trade, U.S. Department of Commerce, there is reason to 
believe that a person will refuse to permit an audit, investigation, or 
other inquiry, or that other circumstances exist which make such process 
desirable or necessary.



Sec. 700.73  Notification of failure to comply.

    (a) At the conclusion of an audit, investigation, or other inquiry, 
or at any other time, Commerce may inform the person in writing where 
compliance with the requirements of the Defense Production Act, this 
regulation, or an official action were not met.
    (b) In cases where Commerce determines that failure to comply with 
the provisions of the Defense Production Act, this regulation, or an 
official action was inadvertent, the person may be informed in writing 
of the particulars involved and the corrective action to be taken. 
Failure to take corrective action may then be construed as a willfull 
violation of the Defense Production Act, this regulation, or an official 
action.



Sec. 700.74  Violations, penalties, and remedies.

    (a) Willful violation of the provisions of Title I or sections 705 
or 707 of the Defense Production Act, this regulation, or an official 
action is a crime and upon conviction, a person may be punished by fine 
or imprisonment, or both. Except as provided in (b) below, the maximum 
penalties provided by the Defense Production Act are a $10,000 fine, or 
one year in prison, or both.
    (b) Willful refusal to furnish any information or reports required 
by Commerce under section 705 of the Defense Production Act, this 
regulation, or an official action, is a crime and upon conviction, a 
person may be punished by fine or imprisonment, or both. Maximum 
penalties provided by the Defense Production Act are a $1,000 fine, or 
one year in prison, or both.
    (c) The government may also seek an injunction from a court of 
appropriate jurisdiction to prohibit the continuance of any violation 
of, or to enforce compliance with, the Defense Production Act, this 
regulation, or an official action.
    (d) In order to secure the effective enforcement of the Defense 
Production Act, this regulation, and official actions, the following are 
prohibited (see section 704 of the Defense Production

[[Page 86]]

Act; see also, for example, sections 2 and 371 of Title 18, United 
States Code):
    (1) No person may solicit, influence or permit another person to 
perform any act prohibited by, or to omit any act required by, the 
Defense Production Act, this regulation, or an official action.
    (2) No person may conspire or act in concert with any other person 
to perform any act prohibited by, or to omit any act required by, the 
Defense Production Act, this regulation, or an official action.
    (3) No person shall deliver any item if the person knows or has 
reason to believe that the item will be accepted, redelivered, held, or 
used in violation of the Defense Production Act, this regulation, or an 
official action. In such instances, the person must immediately notify 
the Department of Commerce that, in accordance with this provision, 
delivery has not been made.



Sec. 700.75  Compliance conflicts.

    If compliance with any provision of the Defense Production Act, this 
regulation, or an official action would prevent a person from filling a 
rated order or from complying with another provision of the Defense 
Production Act, this regulation, or an official action, the person must 
immediately notify the Department of Commerce for resolution of the 
conflict.



             Subpart K--Adjustments, Exceptions, and Appeals



Sec. 700.80  Adjustments or exceptions.

    (a) A person may submit a request to the Office of Industrial 
Resource Administration, U.S. Department of Commerce, for an adjustment 
or exception on the ground that:
    (1) A provision of this regulation or an official action results in 
an undue or exceptional hardship on that person not suffered generally 
by others in similar situations and circumstances; or
    (2) The consequence of following a provision of this regulation or 
an official action is contrary to the intent of the Defense Production 
Act or this regulation.
    (b) Each request for adjustment or exception must be in writing and 
contain a complete statement of all the facts and circumstances related 
to the provision of this regulation or official action from which 
adjustment is sought and a full and precise statement of the reasons why 
relief should be provided.
    (c) The submission of a request for adjustment or exception shall 
not relieve any person from the obligation of complying with the 
provision of this regulation or official action in question while the 
request is being considered unless such interim relief is granted in 
writing by the Office of Industrial Resource Administration.
    (d) A decision of the Office of Industrial Resource Administration 
under this section may be appealed to the Assistant Secretary for Trade 
Administration, U.S. Department of Commerce. (For information on the 
appeal procedure, see Sec. 700.81.)



Sec. 700.81  Appeals.

    (a) Any person who has had a request for adjustment or exception 
denied by the Office of Industrial Resource Administration under 
Sec. 700.80, may appeal to the Assistant Secretary for Trade 
Administration, U.S. Department of Commerce, who shall review and 
reconsider the denial.
    (b) An appeal must be received by the Office of the Assistant 
Secretary for Trade Administration, International Trade Administration, 
U.S. Department of Commerce, Washington, D. C. 20230, Ref: DPAS, no 
later than 45 days after receipt of a written notice of denial from the 
Office of Industrial Resource Administration. After this 45-day period, 
an appeal may be accepted at the discretion of the Assistant Secretary 
for Trade Administration for good cause shown.
    (c) Each appeal must be in writing and contain a complete statement 
of all the facts and circumstances related to the action appealed from 
and a full and precise statement of the reasons the decision should be 
modified or reversed.
    (d) In addition to the written materials submitted in support of an 
appeal, an appellant may request, in writing,

[[Page 87]]

an opportunity for an informal hearing. This request may be granted or 
denied at the discretion of the Assistant Secretary for Trade 
Administration.
    (e) When a hearing is granted, the Assistant Secretary for Trade 
Administration may designate an employee of the Department of Commerce 
to conduct the hearing and to prepare a report. The hearing officer 
shall determine all procedural questions and impose such time or other 
limitations deemed reasonable. In the event that the hearing officer 
decides that a printed transcript is necessary, all expenses shall be 
borne by the appellant.
    (f) When determining an appeal, the Assistant Secretary for Trade 
Administration may consider all information submitted during the appeal 
as well as any recommendations, reports, or other relevant information 
and documents available to the Department of Commerce, or consult with 
any other persons or groups.
    (g) The submission of an appeal under this section shall not relieve 
any person from the obligation of complying with the provision of this 
regulation or official action in question while the appeal is being 
considered unless such relief is granted in writing by the Assistant 
Secretary for Trade Administration.
    (h) The decision of the Assistant Secretary for Trade Administration 
shall be made within a reasonable time after receipt of the appeal and 
shall be the final administrative action. It shall be issued to the 
appellant in writing with a statement of the reasons for the decision.



                   Subpart L--Miscellaneous Provisions



Sec. 700.90  Protection against claims.

    A person shall not be held liable for damages or penalties for any 
act or failure to act resulting directly or indirectly from compliance 
with any provision of this regulation, or an official action, 
notwithstanding that such provision or action shall subsequently be 
declared invalid by judicial or other competent authority.



Sec. 700.91  Records and reports.

    (a) Persons are required to make and preserve for at least three 
years, accurate and complete records of any transaction covered by this 
regulation (OMB control number 0625-0107) or an official action.
    (b) Records must be maintained in sufficient detail to permit the 
determination, upon examination, of whether each transaction complies 
with the provisions of this regulation or any official action. However, 
this regulation does not specify any particular method or system to be 
used.
    (c) Records required to be maintained by this regulation must be 
made available for examination on demand by duly authorized 
representatives of Commerce as provided in Sec. 700.71.
    (d) In addition, persons must develop, maintain, and submit any 
other records and reports to Commerce that may be required for the 
administration of the Defense Production Act and this regulation.
    (e) Section 705(e) of the Defense Production Act provides that 
information obtained under this section which the President deems 
confidential, or with reference to which a request for confidential 
treatment is made by the person furnishing such information, shall not 
be published or disclosed unless the President determines that the 
withholding of this information is contrary to the interest of the 
national defense. Information required to be submitted to Commerce in 
connection with the enforcement or administration of the Act, this 
regulation, or an official action, is deemed to be confidential under 
section 705(e) of the Act and shall not be published or disclosed except 
as required by law.



Sec. 700.92  Applicability of this regulation and official actions.

    (a) This regulation and all official actions, unless specifically 
stated otherwise, apply to transactions in any state, territory, or 
possession of the United States and the District of Columbia.
    (b) This regulation and all official actions apply not only to 
deliveries to other persons but also include deliveries to affiliates 
and subsidiaries of a person and deliveries from one branch,

[[Page 88]]

division, or section of a single entity to another branch, division, or 
section under common ownership or control.
    (c) This regulation and its schedules shall not be construed to 
affect any administrative actions taken by Commerce, or any outstanding 
contracts or orders placed pursuant to any of the regulations, orders, 
schedules or delegations of authority under the Defense Materials System 
and Defense Priorities System previously issued by Commerce. Such 
actions, contracts, or orders shall continue in full force and effect 
under this regulation unless modified or terminated by proper authority.
    (d) The repeal of the regulations, orders, schedules and delegations 
of authority of the Defense Materials System (DMS) and Defense 
Priorities System (DPS) shall not have the effect to release or 
extinguish any penalty or liability incurred under the DMS/DPS. The DMS/
DPS shall be treated as still remaining in force for the purpose of 
sustaining any action for the enforcement of such penalty or liability.



Sec. 700.93  Communications.

    All communications concerning this regulation, including requests 
for copies of the regulation and explanatory information, requests for 
guidance or clarification, and requests for adjustment or exception 
shall be addressed to the Office of Industrial Resource Administration, 
Room 3876, U.S. Department of Commerce, Washington, DC 20230, Ref: DPAS; 
telephone: (202) 377-4506.


    SCHEDULE I TO PART 700--AUTHORIZED PROGRAMS AND DELEGATE AGENCIES

    The programs listed in this schedule have been authorized by the 
Federal Emergency Management Agency for priorities and allocations 
support under this regulation. They have equal preferential status.
    The Department of Commerce has authorized the Delegate Agencies to 
use this regulation in support of those programs assigned to them, as 
indicated below.

----------------------------------------------------------------------------------------------------------------
   Program Identification                                                                                       
           Symbol                            Authorized Program                          Delegate Agency        
----------------------------------------------------------------------------------------------------------------
                                                Defense Programs                                                
                                                                                                                
----------------------------------------------------------------------------------------------------------------
A1..........................  Aircraft........................................  Department of Defense and       
                                                                                 Associated Agencies.\1\        
A2..........................  Missiles........................................      Do.                         
A3..........................  Ships...........................................      Do.                         
A4..........................  Tank--Automotive................................      Do.                         
A5..........................  Weapons.........................................      Do.                         
A6..........................  Ammunition......................................      Do.                         
A7..........................  Electronic and communications equipment.........      Do.                         
B1..........................  Military building supplies......................      Do.                         
B8..........................  Production equipment (for defense contractor's        Do.                         
                               account).                                                                        
B9..........................  Production equipment (Government owned).........      Do.                         
C1..........................  Food resources..................................      Do.                         
C2..........................  Department of Defense construction..............      Do.                         
C3..........................  Maintenance, repair and operating supplies (MRO)      Do.                         
                               for Department of Defense facilities.                                            
C8..........................  Controlled materials for Defense Industrial           Do.                         
                               Supply Center (DISC).                                                            
C9..........................  Miscellaneous...................................      Do.                         
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                         International Defense Programs                                         
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                                   Canada                                                       
                                                                                                                
D1..........................  Canadian military programs......................  Department of Commerce.         
D2..........................  Canadian production and construction............      Do.                         
D3..........................  Canadian atomic energy program..................      Do.                         
                                                                                                                
                                            Other Foreign Nations                                               
                                                                                                                
G1..........................  Certain munitions items purchased by foreign      Department of Commerce.         
                               governments through domestic commercial                                          
                               channels for export.                                                             
G2..........................  Certain direct defense needs of foreign               Do.                         
                               governments other than Canada.                                                   
G3..........................  Foreign nations (other than Canada) production        Do.                         
                               and construction.                                                                
                                                                                                                

[[Page 89]]

                                                                                                                
                                                Co-Production                                                   
                                                                                                                
J1..........................  F-16 Co-Production Program......................  Departments of Commerce  and    
                                                                                 Defense.                       
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                             Atomic Energy Programs                                             
                                                                                                                
----------------------------------------------------------------------------------------------------------------
E1..........................  Construction....................................  Department of Energy.           
E2..........................  Operations--including maintenance, repair and         Do.                         
                               operating supplies (MRO).                                                        
E3..........................  Privately owned facilities......................      Do.                         
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                              Other Energy Programs                                             
                                                                                                                
----------------------------------------------------------------------------------------------------------------
F1..........................  Exploration, production, refining and             Department of Energy.           
                               transportation.                                                                  
F2..........................  Conservation....................................      Do.                         
F3..........................  Construction and Maintenance....................      Do.                         
                                                                                                                
----------------------------------------------------------------------------------------------------------------
                                   Other Defense, Energy and Related Programs                                   
                                                                                                                
----------------------------------------------------------------------------------------------------------------
H1..........................  Certain combined orders (see Sec.  700.17(c))...  Department of Commerce.         
H2..........................  Controlled materials producers..................      Do.                         
H3..........................  Further converters (controlled materials).......      Do.                         
H4..........................  Distributors of controlled materials............      Do.                         
H5..........................  Private domestic production.....................      Do.                         
H6..........................  Private domestic construction...................      Do.                         
H7..........................  Maintenance, repair and operating supplies (MRO)      Do.                         
                                                                                                                
K1..........................  Federal supply items............................  General Services Administration.
N1..........................  Approved civil defense programs.................  Federal Emergency Management    
                                                                                 Agency.                        
----------------------------------------------------------------------------------------------------------------
\1\ Department of Defense agencies are: Army, Navy (including Coast Guard), Air Force, Defense Logistics Agency,
  and National Security Agency. Associated Agencies of the Department of Defense include Central Intelligence   
  Agency, Federal Aviation Administration, and National Aeronautics and Space Administration.                   


[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, 
and amended at 56 FR 8109, Feb. 27, 1991]


              SCHEDULE II TO PART 700--CONTROLLED MATERIALS

                                                                                                                
                                                   Minimum quantity*            Minimum number of days**        
                                                  (net tons, except as -----------------------------------------
                                                       specified)                   High-                       
            Controlled Materials \1\            -----------------------           strength                      
                                                                         Carbon     low-    Stainless  Alloy \3\
                                                 Carbon \2\  Alloy \2\              alloy                       
                     Steel                                                                                      
                                                                                                                
Bar, bar shapes (including light shapes):                                                                       
  Bar, hot-rolled stock for projectile and                                                                      
   shell bodies \4\............................     (\2\)       (\2\)        45        75   .........    \5\ 75 
  Bar, hot-rolled, other (including light                                                                       
   shapes):                                                                                                     
    Round bars up to and including 3 inches,                                                                    
     and squares, hexagons, half rounds, ovals,                                                                 
     etc., of approximately equivalent section                                                                  
     area......................................         5       (\2\)    \5\ 45    \5\ 75         90     \5\ 75 
    Round and square bars over 3 inches, but                                                                    
     less than 8 inches........................        15       (\2\)    \5\ 45    \5\ 75         90     \5\ 75 
    Bar-size shapes (angles, tees, channels,                                                                    
     and zees under 3 inches)..................         5       (\2\)    \5\ 45    \5\ 75         90     \5\ 75 
  Bar, reinforcing (straight lengths, as                                                                        
   rolled).....................................         5    .........       45   ........  .........        75 
  Bar, cold finished...........................         5       (\2\)    \5\ 75   \5\ 105        105    \5\ 105 

[[Page 90]]

                                                                                                                
Sheet, strip (uncoated and coated):                                                                             
  Sheet, hot-rolled............................         5       (\2\)        45        75         90         75 
  Sheet, cold-rolled...........................         5       (\2\)        45        75        105         90 
  Sheet, galvanized............................     (\2\)    .........       45   ........  .........  .........
  Sheet, all other coated......................         5    .........       45   ........  .........  .........
  Sheet, enameling.............................         5    .........       45   ........  .........  .........
  Roofing, galvanized, corrugated, V-crimped                                                                    
   channel drains..............................     (\2\)    .........       45   ........  .........  .........
  Ridge roll, valley, and flashing.............     (\2\)    .........       45   ........  .........  .........
  Siding, corrugated and brick.................     (\2\)    .........       45   ........  .........  .........
  Strip, hot-rolled............................     (\2\)       (\2\)        45        75         90         75 
  Strip, cold-rolled...........................     (\2\)       (\2\)        45        75        105         90 
  Strip, galvanized............................     (\2\)    .........   \6\ 45   ........  .........  .........
  Electrical sheet and strip...................         5    .........    \7\45   ........  .........  .........
  Tin mill black plate (pounds)................    12,000    .........       45   ........  .........  .........
  Tin plate, hot-dipped (pounds)...............    12,000    .........       45   ........  .........  .........
  Ternes, special coated manufacturing (pounds)    10,000    .........       45   ........  .........  .........
  Tin plate, electrolytic (pounds).............    12,000    .........  ........  ........  .........  .........
  Electrolytic chromium coated steel \8\.......     (\2\)    .........  ........  ........  .........  .........
Plate:                                                                                                          
  Rolled armor.................................     (\2\)       (\2\)    \6\ 45    \5\ 75         90      \5\75 
  Continuous strip mill production.............        10       (\2\)    \6\ 45    \5\ 75         90     \5\ 75 
  Sheared, universal, or bar mill production...         3       (\2\)    \6\ 45    \5\ 75         90     \5\ 75 
Structural shapes, piling......................     (\2\)       (\2\)        45    \9\ 75    \9\ 150         90 
Pipe, tubing:                                                                                                   
  Standard pipe (including couplings furnished                                                                  
   by mill)....................................    (\10\)      (\10\)        45   ........       120   .........
  Oil-country goods (casing, tubular goods,                                                                     
   couplings furnished by mill)................    (\10\)      (\10\)        45   ........  .........        60 
  Line pipe (including couplings furnished by                                                                   
   mill).......................................    (\10\)      (\10\)        45        75   .........  .........
  Pressure and mechanical tubing (seamless and                                                                  
   welded):                                                                                                     
    Seamless cold-drawn (pounds):                                                                               
      Under 20 pounds per foot.................     5,000       5,000    \6\ 60   ........       120        120 
      20 pounds per foot and over..............     5,000      10,000    \6\ 60   ........       120        120 
    Seamless hot-rolled........................     (\2\)       (\2\)    \6\ 60   ........       120        120 
    Welded.....................................     (\2\)       (\2\)    \6\ 60   ........       120        120 
Wire, wire products:                                                                                            
  Wire, drawn..................................     (\2\)       (\2\)        45        75         90         75 
  Nails--bright steel wire, steel cut,                                                                          
   galvanized, cement-coated and painted.......    \11\ 5    .........       45   ........  .........  .........
  Spikes and brads--steel wire, galvanized,                                                                     
   cement-coated...............................    \11\ 5    .........       45   ........  .........  .........
  Staples, bright and galvanized (farm and                                                                      
   poultry)....................................    \11\ 5    .........       45   ........  .........  .........
  Wire rope and strand.........................     (\2\)    .........       45   ........       105   .........
  Welded wire mesh.............................     (\2\)    .........       45   ........  .........  .........
  Woven wire netting...........................    \11\ 5    .........       45   ........  .........  .........
  Barbed and twisted wire......................    \11\ 5    .........       45   ........  .........  .........
  Wire fence, woven and welded (farm and                                                                        
   poultry)....................................    \11\ 5    .........       45   ........  .........  .........
  Bale ties....................................    \11\ 5    .........       45   ........  .........  .........
  Coiled automatic baler wire..................    \11\ 5    .........       45   ........  .........  .........
Tool steel (all forms including die blocks and                                                                  
 tool steel forgings) (pounds).................       500         500   \12\ 60   ........  .........   \12\ 90 
Other mill forms and products (excluding                                                                        
 castings and forgings):                                                                                        
  Ingots.......................................   \13\ 25      (\14\)        45        75         75         75 
  Billets, projectile and shell stock..........     (\2\)       (\2\)        45        75   .........        75 
  Blooms, slabs, other billets, tube rounds,                                                                    
   sheet bars..................................   \13\ 25       (\2\)        45        75         75         75 
  Skelp........................................        25    .........       45   ........  .........  .........
  Wire rod.....................................     (\2\)       (\2\)        45        75         90         75 
  Rail and track accessories...................     (\2\)       (\2\)        45   ........  .........        90 
  Wheels, rolled or forged (railroad)..........     (\2\)       (\2\)        45   ........  .........        90 
  Axles (railroad).............................     (\2\)       (\2\)        45   ........  .........        90 
                                                                                                                


[[Page 91]]


                                                                                                                
                                              Minimum quantity*                                                 
          Controlled materials\1\                  (pounds)                   Minimum number of days**          
                  Copper                                                                                        
                                                                                                                
Copper and copper-base alloy brass mill                                                                         
 products: \15\                                                                                                 
  Copper (unalloyed):                                                                                           
    Bar...................................          2,000                                 45                    
    Shapes, wire (except electrical wire).            500                                 45                    
    Rod...................................          2,000                                 45                    
    Sheet, plate (24 inches wide and over)          2,000                                 45                    
    Rolls and strip (up to 24 inches wide)          2,000                                 45                    
    Pipe, tube (seamless).................          2,000                                 45                    
  Copper-base alloy:                                                                                            
    Bar...................................          2,000                            \16\ 45                    
    Wire, shapes..........................            500                            \16\ 45                    
    Free cutting brass rod................          2,000                            \16\ 45                    
    Other rod.............................          1,000                            \16\ 45                    
    Sheet, and plate (24 inches wide and                                                                        
     over)................................          2,000                            \16\ 45                    
    Rolls and strip (up to 24 inches in                                                                         
     width)...............................          2,000                            \16\ 45                    
    Military ammunition cups and discs....          2,000                             \16\45                    
    Circles...............................          1,000                            \16\ 90                    
    Pipe, tube (seamless).................          2,000                            \16\ 45                    
Copper wire mill products:                                                                                      
  Copper wire and cable:                                                                                        
    Bare and tinned.......................  (\17\) (\18\)                                 35                    
    Weatherproof..........................  (\17\) (\18\)                                 40                    
    Magnet wire...........................  (\17\) (\18\)                                 35                    
    Insulated building wire...............  (\17\) (\18\)                                 45                    
    Paper and lead power cable............  (\17\) (\18\)                                 75                    
    Paper and pulp telephone cable........  (\17\) (\18\)                                 45                    
    Plastic insulated telephone cable.....  (\17\) (\18\)                                 45                    
    Asbestos cable........................  (\17\) (\18\)                                 60                    
    Portable and flexible cord and cable..  (\17\) (\18\)                                 45                    
    Communication wire and cable..........  (\17\) (\18\)                                 60                    
    Shipboard cable.......................  (\17\) (\18\)                                 75                    
    Automotive and aircraft wire and cable  (\17\) (\18\)                                 45                    
    Insulated power cable.................  (\17\) (\18\)                                 75                    
    Signal and control cable..............  (\17\) (\18\)                                 75                    
    Coaxial cable.........................  (\17\) (\18\)                                 75                    
  Copper-clad steel wire containing over                                                                        
   20 percent copper by weight regardless                                                                       
   of end use.............................  (\17\) (\18\)                                 35                    
  Copper-clad aluminium wire containing                                                                         
   over 20 percent copper by weight                                                                             
   regardless of end use..................  (\17\) (\18\)                                 45                    
Copper and copper-base alloy foundry                                                                            
 products and powder:                                                                                           
  Copper, brass, and bronze castings......  .....................               \19\ \20\ 14                    
  Copper, brass, and bronze powder                                                                              
   (including copper powder, granular and                                                                       
   flake, and copper-base alloy powder,                                                                         
   granular and flake)....................  .....................                         30                    
                                                                                                                


                                                                                                                
          Controlled materials\1\             Minimum quantity*               Minimum number of days**          
                 Aluminum                                                                                       
                                                                                                                
Ingot, granular or shot, and molten metal:                                                                      
  Extrusion ingot (billet)................         (\18\)                                 90                    
  Other ingot and molten metal, primary...         (\18\)                                 60                    
  Other ingot and molten metal, secondary.         (\18\)          .............................................
Sheet and plate:                                                                                                
  Sheet, non-heat treatable...............         (\18\)                                150                    
  Sheet, heat treatable...................         (\18\)                                150                    
  Plate, non-heat treatable...............         (\18\)                                150                    
  Plate, heat treatable...................         (\18\)                                150                    
  Welded tube.............................         (\18\)          .............................................
Foil......................................         (\18\)                                 90                    
Aluminum conductor:                                                                                             
  ACSR and aluminium cable, bare..........         (\18\)                                 60                    
  Wire and cable, insulated or covered....         (\18\)                                 60                    

[[Page 92]]

                                                                                                                
Rolled bar, rod and wire (continuous cast                                                                       
 or rolled):                                                                                                    
  Conductor redraw rod....................         (\18\)                                 60                    
  Non-conductor redraw rod................         (\18\)                                 60                    
  Other rod and bar.......................         (\18\)                                120                    
  Wire, bare, conductor and non-conductor.         (\18\)                                120                    
Extruded bar, rod, shapes and drawn tube:                                                                       
  Extruded rod and bar--alloys other than                                                                       
   2000 and 7000 series...................         (\18\)                                 60                    
  Extruded rod and bar--alloys in 2000 and                                                                      
   7000 series............................         (\18\)                                150                    
  Extruded pipe and tube--alloys other                                                                          
   than 2000 and 7000 series..............         (\18\)                                 60                    
  Extruded pipe and tube--alloys in 2000                                                                        
   and 7000 series........................         (\18\)                                150                    
  Extruded shapes--alloys other than 2000                                                                       
   and 7000 series........................         (\18\)                                 60                    
  Extruded shapes--alloys in 2000 and 7000                                                                      
   series.................................         (\18\)                                150                    
  Drawn tube--alloys other than 2000 and                                                                        
   7000 series............................         (\18\)                                 60                    
  Drawn tube--alloys in 2000 and 7000                                                                           
   series.................................         (\18\)                                120                    
Powder, flake and paste...................         (\18\)                                 60                    
                                                                                                                


----------------------------------------------------------------------------------------------------------------
                                                                                       Minimum number of days** 
                                                                          Minimum   ----------------------------
                        Controlled materials\1\                          quantity*       Solid                  
                                                                                       solution    Precipitation
-----------------------------------------------------------------------------------------------------hardened---
                             Nickel Alloys                                                                      
                                                                                                                
Rods and bars (except anode bars):                                                                              
  Hot-rolled, including wire rod......................................     (\2\)          90            120     
  Forging quality.....................................................     (\2\)          90            120     
  Cold-finished.......................................................     (\2\)         120            165     
Sheet and strip:                                                                                                
  Hot-rolled..........................................................     (\2\)          90            120     
  Cold-rolled.........................................................     (\2\)         120            165     
Foil..................................................................     (\2\)         120            165     
Plate.................................................................     (\2\)          90            120     
Pipe, tubing..........................................................     (\2\)          90            120     
Wire..................................................................     (\2\)         120            165     
Other mill forms:                                                                                               
  Ingots..............................................................     (\2\)          90            120     
  Blooms, slabs, billets..............................................     (\2\)          90            120     
Powder................................................................     (\2\)          90            120     
Shapes and forms not listed above (including anode bars)..............     (\2\)        (\2\)          (\2\)    
Castings (less gates and risers, rough as cast).......................     (\2\)          90            120     
----------------------------------------------------------------------------------------------------------------
(\1\) See technical definitions in Schedule III.                                                                
(\2\) All stainless steel products, certain other steel products and all nickel alloy products. By negotiation  
  between the mill and its customer. If no acceptable arrangements are worked out, the Office of Industrial     
  Resource Administration should be notified.                                                                   
(\3\) For clad products, add 45 days to lead time indicated.                                                    
(\4\) Includes projectile body stock, sizes under 2\7/8\ inches.                                                
(\5\) If annealed or heat-treated, add an additional 15 days.                                                   
(\6\) For welded tubing or high carbon spring steel strip, 75 days.                                             
(\7\) 60 days for high grade (AISI M15 and oriented).                                                           
(\8\) Steel pipe or tubing exceeding 36 inches O.D. is not a controlled material.                               
(\9\) Applies to special rolled shapes including angles and channels.                                           
(\10\) Published carload minimum (mixed sizes and grades).                                                      
(\11\) Quantity refers to any assortment of wire merchant trade products.                                       
(\12\) If cold-finished, add an addtional 15 days.                                                              
(\13\) For forging quality, product of one heat.                                                                
(\14\) Product of one heat.                                                                                     
(\15\) Includes anodes--rolled, forged, or sheared from cathodes.                                               
(\16\) For refractory alloys, 60 days, except for tube over 5 inches in diameter, which should be 120 days.     
(\17\) Standard package quantities as published by each mill.                                                   
(\18\) Standard minimum quantities as established by each mill.                                                 
(\19\) Lead time applies to unmachined castings after approval of patterns for production.                      
(\20\) Small simple castings to fit 12 x 16 inch flask, 7 days.                                                 
                                                                                                                
*Minimum quantity for each size and grade of any items for mill shipment at any one time to any one destination.
**Minimum number of days in advance of first day of month in which shipment is required.                        
                                                                                                                
Note: Leaders in figure columns indicate not applicable.                                                        


[49 FR 30414, July 30, 1984; 49 FR 50172, Dec. 27, 1984. Redesignated at 
54 FR 601, Jan. 9, 1989]

[[Page 93]]

Schedule III to Part 700--Technical Definitions of Controlled Materials 
                                Products

                                  Steel

    Alloy steel--Steel containing 50 percent or more of iron or steel 
and any one or more of the following elements in the following amounts: 
manganese, maximum of range in excess of 1.65 percent; silicon, maximum 
of range in excess of 0.60 percent (excepting electrical sheet and 
strip); copper, maximum of range in excess of 0.60 percent; aluminum, 
boron, chromium (less than 10 percent), cobalt, columbium, molybdenum, 
nickel, tantalum, titanium, tungsten, vanadium, zirconium, or any other 
alloying elements in any amount specified or known to have been added to 
obtain a desired alloying effect. Clad steels which have an alloy steel 
base or carbon steel base for which nickel and/or chromium is contained 
in the coating or cladding material (e.g., nickel-copper alloy, nickel-
chrome-iron alloy or stainless) are alloy steels.
    Alloy steel plate includes the following specifications:

--0.180 inch or thicker, over 48 inches wide
--0.230 inch or thicker, over 8 inches wide
--7.53 pounds per square foot or heavier, over 8 inches wide

    Carbon steel--Any steel (including wrought iron) customarily so 
classified and also includes: (a) ingot iron; (b) all grades of 
electrical sheet and strip; (c) high-strength low-alloy steels; (d) clad 
and coated carbon steels not included with alloy steels: e.g., 
galvanized, tin, terne, copper (excluding copper wire mill products) or 
aluminum clad and/or coated carbon steels; and (e) leaded carbon steels.
    Carbon steel plate includes the following specifications, plus floor 
plates of any thickness:

--0.180 inch or thicker, over 48 inches wide
--0.230 inch or thicker, over 8 inches wide
--7.53 pounds per square foot or heavier, over 48 inches wide
--9.62 pounds per square foot or heavier, over 8 inches wide

    High-strength low-alloy steels--Only the proprietary grade promoted 
and sold for this purpose, and Navy high-tensile steel grade HT 
Specification Mil-S-16113 (Ships).
    Stainless steel--Heat and corrosion resisting steel containing 50 
percent or more of iron or steel and 10 percent or more of chromium 
whether with or without nickel, molybdenum, or other elements.
    Stainless steel plate includes the following size specifications: 
\3/16\ inch (0.1875) or thicker, over 10 inches wide.
    Standard steel pipe includes the following:

Ammonia pipe
Bedstead tubing
Driven well pipe
Drive pipe
Dry kiln pipe
Dry pipe for locomotives
English gas and steam pipe
Fence pipe
Furniture pipe
Ice machine pipe
Mechanical service pipe
Nipple pipe
Pipe for piling
Pipe for plating and enameling
Pump pipe
Signal pipe
Standard pipe coupling
Structural pipe
Turbine pump pipe
Water main pipe
Water well casing
Water well reamed and drifted pipe

    Structural steel shapes--Rolled flanged sections having at least one 
dimension of their cross section 3 inches or greater, commonly referred 
to as angles, channels, beams, and wide flange sections.

                                 Copper

    Brass-mill products--Copper and copper-base alloys in the following 
forms: sheet, plate, and strip in flat lengths or coils; rod, bar, 
shapes, and wire (except copper wire mill products); anodes, rolled, 
forged, or sheared from cathodes; and seamless tube and pipe. 
Straightening, threading, chamfering, cutting to width or length, or 
reduction in gauge, do not constitute changes in form of brass mill 
products. The following related products which have been produced by a 
change in form of brass mill products are not included in the definition 
of brass mill products:

Circles, discs (except brass military ammunition discs)
Cups (except brass military ammunition cups)
Blanks and segments
Forgings (except anodes)
Welding rod, 3 feet or less in length
Rotating bands
Tube and nipple--welded, brazed, or mechanically seamed
Formed flashings
Engravers' copper

    Copper-base alloy--Any alloy of which the percentage of copper metal 
equals or exceeds 40 percent by weight of the metallic content of the 
alloy. It does not include alloyed gold produced in accordance with U.S. 
Commercial Standard CS 67-38.
    Copper foundry products--Cast copper and copper-based alloy shapes 
or forms suitable for ultimate use without remelting, rolling, drawing, 
extruding, or forging. The process of casting includes the removal of 
gates, risers, and sprues, and sandblasting, tumbling,

[[Page 94]]

and dipping, but does not include any machining or further processing. 
For centrifugal casting, the process includes the removal of the rough 
cut in the inner or outer diameter, or both, before delivery to a 
customer. Castings include anodes and shot cast in a foundry or by an 
ingot maker.
    Copper powder mill products--Copper or copper-base alloy in the form 
of granular or flake powder.
    Copper raw materials include:
    (a) Refined copper--Copper metal which has been refined by any 
process of electrolysis or fire-refined to a grade and in a form 
suitable for fabrication;
    (b) Blister copper--High-grade crude copper in any form produced 
from converter operations and from which nearly all the oxidizable 
impurities have been removed by slagging and volatilization;
    (c) Copper and copper-base alloy scrap--Including fired and 
demilitarized cartridge and artillery cases;
    (d) Brass mill casting--From which brass mill or intermediate shapes 
may be rolled, drawn, or extruded, without remelting;
    (e) Copper-base alloy ingot--To be used in remelting, alloying, or 
deoxidizing operations;
    (f) Copper or copper-base alloy shot and waffle--To be used in 
remelting, alloying, deoxidizing, or chemical operations; and
    (g) Copper precipitates (or cement copper)--Precipitated from mine 
water by contact with iron scrap, tin cans, or iron in other forms.
    Copper wire mill products--Uninsulated or insulated wire and cable 
made from copper or copper-base alloy, used for transmission of 
electrical energy, whatever the outer protective coverings may be, and 
also copper-clad steel or aluminum wire containing over 20 percent 
copper by weight regardless of end use. Copper wire mill products shall 
be measured in terms of pounds of copper content.

                                Aluminum

    Foil--A flat rolled product, rectangular in cross section, of 
thickness less than 0.006 inch.
    Ingot includes:
    (a) Extrusion ingot (billet)--A solid or hollow cast form, usually 
cylindrical, suitable for extruding;
    (b) Other ingot and molten metal, primary--A cast form other than 
extrusion ingot (or molten metal), shipped by an integrated producer or 
nonintegrated fabricator from a company-owned facility not exclusively 
devoted to producing secondary ingot; and
    (c) Other ingot and molten metal, secondary--A cast form other than 
extrusion ingot (or molten metal), principally produced from aluminum 
scrap to specification by secondary smelters (or others at a facility 
exclusively devoted to producing ingot from scrap for sale); excludes 
remelt scrap ingot (RSI) which is considered scrap until remelted and 
cast into specification ingot.
    Pipe and tube includes:
    (a) Drawn tube--A hollow wrought product that is long in relation to 
its cross section, which is round, square, rectangular, hexagonal, 
octagonal, or elliptical in shape, sharp or rounded corners, with a 
uniform wall thickness except as affected by corner radii, and brought 
to final dimensions by cold drawing through a die (includes tube that is 
sized);
    (b) Extruded pipe and tube--A hollow wrought product formed by hot 
extruding with a uniform wall thickness (except as affected by corner 
radii) that is long in relation to its cross section, round, square, 
rectangular, hexagonal, octagonal, or elliptical in shape (excludes tube 
that is sized by cold drawing); and
    (c) Welded tube--A hollow product that is long in relation to its 
cross section, which is round, square, rectangular, hexagonal, 
octagonal, or elliptical in shape, produced by forming and seam-welding 
sheet longitudinally.
    Plate includes:
    (a) Plate, nonheat-treatable--A flat rolled product, rectangular in 
cross section, 0.250 inch or greater in thickness, which can be 
strengthened only by cold work; and
    (b) Plate, heat-treatable--A flat rolled product, in 2000, 6000, or 
7000 alloy series (except 7072), rectangular in cross section, 0.250 
inch or greater in thickness, which can be strengthened by a suitable 
thermal treatment.
    Powder--An aggregate of discrete particles of aluminum, 
substantially all of which are finer than 1,000 microns (minus 18 mesh); 
and includes:
    (a) Atomized powder--Powder produced by blowing or asperating molten 
metal through an orifice;
    (b) Flaked powder--Powder consisting of flat or scale-like particles 
of a thickness small compared with other dimensions, produced by milling 
in the presence of a lubricant; and
    (c) Paste--A blend of powder or flake with a thinner or plasticizer.
    Rod and bar includes:
    (a) Conductor redraw rod (continuous-cast or rolled)--A solid round 
product that is long in relation to cross section, 0.375 inch or greater 
in diameter, produced by continuous casting followed by size-rolling or 
by rolling from DC cast ingot, suitable for drawing into electrical 
conductor wire;
    (b) Nonconductor redraw rod (continuous-cast or rolled)--A solid 
round product that is long in relation to cross section, 0.375 inch or 
greater in diameter, produced by continuous casting followed by size-
rolling, or by rolling from D.C. cast ingot, suitable for drawing into 
nonconductor wire;

[[Page 95]]

    (c) Other rod and bar (continuous-cast or rolled)--A solid round, 
square, rectangular, hexagon, or octagon-shaped product, produced by 
continuous casting or rolling that is long in relation to cross section, 
0.375 inch or greater in diameter or in at least one perpendicular 
distance between parallel faces, other than the redraw rod and DC cast 
ingot; and
    (d) Extruded rod and bar--A solid product produced by extruding 
(sometimes brought to final dimensions by drawing) that is long in 
relation to cross section, which is round, square, rectangular, 
hexagonal, or octagonal in shape and 0.375 inch or greater in diameter 
or in at least one perpendicular distance between parallel faces.
    Shapes includes:
    (a) Extruded shapes--A product produced by extruding, that is long 
in relation to its cross-sectional dimensions and has a cross section 
other than that of rod and bar and pipe and tube; and
    (b) Rolled structural shapes--A structural shape produced by hot 
rolling.
    Sheet includes:
    (a) Sheet, nonheat-treatable--A rolled product, flat or coiled, 
rectangular in cross section, of 0.006 inch thickness but under 0.250 
inch thickness, which can be strengthened only by cold work; and
    (b) Sheet, heat-treatable--A rolled product, in 2000, 6000, 7000 
alloy series (except 7072), flat or coiled, rectangular in cross 
section, of 0.006 inch thickness but under 0.250 inch thickness, which 
can be strengthened by a suitable thermal treatment.
    Wire and cable includes:
    (a) Wire, bare, conductor and nonconductor--A solid wrought product 
that is long in relation to its cross section, which is square, round, 
rectangular, hexagonal, or octagonal in shape, whose diameter or 
greatest perpendicular distance between parallel faces (except for 
flattened wire) is less than 0.375 inch;
    (b) ACSR and aluminum cable, bare--Aluminum stranded conductor 
reinforced by a core of steel (ACSR), or aluminum (ACAR), or any other 
bare stranded aluminum conductor; and
    (c) Wire and cable, insulated or covered--Aluminum electrical 
conductor wire or stranded conductors that are insulated or covered.

                              Nickel Alloys

    Nickel alloys--Those alloys for which the specified nickel content 
is 10 percent or more up to and including pure nickel, and which the 
iron content is nominally less than 50 percent of iron, and which does 
not contain as much as 40 percent of copper, nor as much as 50 percent 
of aluminum, in the shapes and forms shown in Schedule II. It also 
includes cast iron for which the specified nickel content is 5 percent 
or more. It does not include primary nickel in the forms of electrolytic 
cathodes, pigs, rondelles, cubes, pellets, shot, briquettes, oxide 
(including sintered oxide), salts, or chemicals; nor does it include 
primary nickel in the forms of ingots or powder for remelting.

  Schedule IV to Part 700--Copper Controlled Materials Producers' Set-
                       aside Base and Percentages

    Set-aside Base--Average monthly shipments for a producer's own 
account during the previous calendar year.

------------------------------------------------------------------------
                                                             Set-aside  
                         Product                          percentages\1\
------------------------------------------------------------------------
Brass mill products:                                                    
    Unalloyed:                                                          
        Plate, sheet, strip, and rolls..................            3   
        Rod, bar, shapes, and wire......................            3   
        Seamless tube and pipe..........................            2   
    Alloyed:                                                            
        Plate, sheet, strip, and rolls..................            2   
        Rod, bar, shapes, and wire......................            2   
        Seamless tube and pipe..........................            7   
        Military ammunition cups and discs..............           10   
Copper wire mill products:                                              
        Bare and tinned.................................            2   
        Weatherproof....................................            2   
        Magnet wire.....................................            2   
        Paper and lead power cable......................            2   
        Paper and lead telephone cable..................            2   
        Asbestos cable..................................            2   
        Portable and flexible cord......................            2   
        Communications wire and cable...................            2   
        Shipboard cable.................................            2   
        Automotive and aircraft wire and cable..........            2   
        Insulated power cable...........................            2   
        Signal and control cable........................            2   
        Coaxial cable...................................            2   
        Copper-clad steel wire containing over 20                       
         percent copper by weight regardless of end use.            2   
Copper foundry products.................................            2   
Copper and copper-base alloy powder mill products.......        (\2\)   
------------------------------------------------------------------------
\1\ Applies to metal weight, except copper wire mill products, which are
  by copper content.                                                    
\2\ No reserve space required. Producers of these products are          
  nevertheless required to accept rated orders for such products in     
  accordance with the provisions of this regulation.                    

 Schedule V to Part 700--Nickel Alloys Controlled Materials Producers' 
                     Set-aside Base and Percentages

    Set-aside Base--Average monthly shipments, by each producer, during 
the previous calendar year.

------------------------------------------------------------------------
                                                              Set-aside 
                          Product                            percentages
------------------------------------------------------------------------
Rod and bars (except anode bars):                                       
    Hot-rolled, including wire rod.........................          10 
    Forging quality........................................          10 
    Cold-finished..........................................          10 

[[Page 96]]

                                                                        
Sheet and strip:                                                        
    Hot-rolled.............................................          10 
    Cold-rolled............................................          10 
Foil.......................................................          10 
Plate......................................................          10 
Pipe, tubing...............................................          10 
Wire.......................................................          10 
Other mill forms:                                                       
    Ingots.................................................          10 
    Blooms, slabs, billets.................................          10 
Powder.....................................................          10 
Shapes and forms not listed above (including anode bars)...          10 
Castings (less gates and risers, rough as cast)............          10 
------------------------------------------------------------------------

            Appendix I to Part 700--Delegations of Authority

   DPAS DEL. 1--Delegation of Authority to the Secretary of Defense; 
       Defense Priorities and Allocations System (15 CFR part 700)

    1. Authority.
    Defense Production Act of 1950, as amended (50 U.S.C. App. 2061, et 
seq.); Executive Order 10480, 18 FR 4939, 3 CFR 1949-1953 Comp., p. 962, 
as amended; and Defense Mobilization Order (DMO) 3, 44 CFR 322.
    2. Purpose.
    (a) This document delegates certain authority to the Secretary of 
Defense necessary to the effective implementation of the Defense 
Priorities and Allocations System (DPAS) regulation (15 CFR part 700).
    (b) Certain specifics concerning the implementation of this 
delegated authority are contained in a Statement of Conditions to this 
delegation issued by the Office of Industrial Resource Administration 
(OIRA), Department of Commerce (DOC).
    3. Rating Authority.
    (a) The Secretary of Defense is delegated the authority to place 
rated contracts and orders in support of Department of Defense (DOD) 
programs authorized by the Director, Federal Emergency Management 
Agency.
    (b) The Secretary of Defense is delegated the authority to use the 
DX rating symbol in placing rated orders for those authorized programs 
determined by the President to be of the Highest National Priority as 
described in the DOD Master Urgency List.
    4. Co-production Programs.
    (a) The Secretary of Defense may request priority rating authority 
from DOC for specific co-production programs, and if granted, may 
authorize only those foreign firms which have entered into a formal co-
production agreement with a U.S. producer to use priority ratings.
    (b) DOC may authorize the use of priority ratings by other foreign 
firms providing items necessary to the co-production activity on a case-
by-case basis.
    5. Production and Construction Equipment.
    (a) The Secretary of Defense may authorize persons to place rated 
orders for delivery of production equipment required to support 
authorized programs of DOD, when the equipment is necessary for the 
timely performance of rated orders and timely delivery of the equipment 
cannot be obtained otherwise.
    (b) The Secretary of Defense may authorize persons to place rated 
orders for delivery of construction equipment, when the equipment is to 
be used for authorized construction projects and when timely delivery of 
the equipment cannot be obtained otherwise.
    6. Delivery Scheduling.
    The Secretary of Defense is delegated the authority to reschedule 
deliveries of materials which are required in support of DOD programs, 
provided that such authority shall be used (1) only to reschedule 
deliveries among contracts or orders assigned priority ratings by DOD, 
and (2) only to the extent that such rescheduling of deliveries requires 
no change in production schedules of other rated orders.
    7. Special Priorities Assistance.
    The Secretary of Defense may sponsor requests by persons for special 
priorities assistance upon determining the defense urgency of the 
requested assistance. DOD will: (1) serve as the initial point of 
contact for persons needing assistance, (2) verify the accuracy of the 
information provided and make reasonable efforts to resolve the issues, 
and, when necessary, (3) expeditiously forward the request through 
established DOD channels to DOC to facilitate timely resolution. Upon 
receipt of the request for special priorities assistance, DOC will take 
immediate action to effect resolution and will keep DOD advised of 
progress.
    8. Controlled Materials.
    The Secretary of Defense is delegated the authority to make 
allotments of controlled materials to other agencies in support of 
authorized defense programs.
    9. Compliance, Audits, and Training.
    In exercising this delegation, the Secretary of Defense should 
ensure that both DOD personnel and defense contractors are in full 
compliance with the provisions of the DPAS regulation. Accordingly:
    (a) The Secretary of Defense is delegated the authority to review 
the implementation of the DPAS by all persons who are in receipt of 
rated orders supporting DOD programs. However, this review shall not 
include inquiries into any unrated activities of these persons.
    (b) The Secretary of Defense shall notify DOC of any alleged 
violations of the priorities and allocations provisions of the Defense 
Production Act or the DPAS regulation.

[[Page 97]]

    (c) The Secretary of Defense should conduct a continuing training 
program to ensure that appropriate DOD and contractor personnel are 
thoroughly familiar with the provisions of the DPAS and this delegation.
    10. Limitations of Authority.
    (a) This delegated authority shall not be used for (1) civilian 
items for resale in Military Exchanges or the packaging for such items; 
(2) material purchased from exclusively retail establishments; (3) 
procurement of items to be used primarily for administrative purposes, 
such as for personnel or financial management; or (4) direct procurement 
by or for DOD of any items specifically set forth in the Statement of 
Conditions to this delegation (not published).
    (b) This delegation shall be implemented in accordance with the DPAS 
regulation, the Statement of Conditions to this delegation (not 
published), and any other regulations or official actions issued by DOC. 
It does not limit the authority of the Secretary of Commerce under 
Executive Order 10480 or other authority.
    11. Redelegations of Authority.
    The authority granted by this delegation may be redelegated within 
DOD and to other agencies of the United States administering DOD 
programs. Any redelegations of such authority shall be made in writing 
with a copy furnished to DOC. No other redelegations of such authority 
shall be made without the prior written approval of DOC.
    12. Effective Date and Revocation of Previous Delegations.
    This delegation of authority shall take effect August 29, 1984, 
revoking all previous delegations issued by DOC to DOD relating to these 
authorities.

    Dated: June 21, 1984.
Walter J. Olson,

Deputy Assistant Secretary of Commerce for Export Administration.

DPAS DEL. 2--Delegation of Authority to the Secretary of Energy; Defense 
           Priorities and Allocations System (15 CFR part 700)

    1. Authority.
    Defense Production Act of 1950, as amended (50 U.S.C. app. 2061, et 
seq.); Executive Order 10480, 18 FR 4939, 3 CFR 1949-1953 Comp., p. 962, 
as amended; Executive Order 11912, 41 FR 15825, 3 CFR 1976 Comp., p. 
114, as amended; Executive Order 12148, 44 FR 43239, 3 CFR 1979 Comp., 
p. 393, as amended; Defense Mobilization Order (DMO) 3, 44 CFR 322; and 
DMO-13, 44 CFR 330.
    2. Purpose.
    (a) This document delegates certain authority to the Secretary of 
Energy necessary to the effective implementation of the Defense 
Priorities and Allocations System (DPAS) regulation (15 CFR part 700).
    (b) Certain specifics concerning the implementation of this 
delegated authority are contained in a Statement of Conditions to this 
delegation issued by the Office of Industrial Resource Administration 
(OIRA), Department of Commerce (DOC).
    3. Rating Authority.
    (a) The Secretary of Energy is delegated the authority to place 
rated contracts and orders in support of Department of Energy (DOE) 
programs for national defense authorized by the Director, Federal 
Emergency Management Agency.
    (b) The Secretary of Energy, in accordance with Executive Order 
11912, is delegated the authority to make the findings required by 
section 101(c) of the Defense Production Act of 1950, as amended, that 
specified material or equipment is critical and essential:
    (1) To maintain or further domestic exploration, production, 
refining, or transportation;
    (2) To conserve energy supplies; or
    (3) To construct or maintain energy facilities.
    (c) The Secretary of Energy is delegated the authority to use the DX 
rating symbol in placing rated orders for those authorized programs 
determined by the President to be of the Highest National Priority as 
described in the DOD Master Urgency List.
    4. Production and Construction Equipment.
    (a) The Secretary of Energy may authorize persons to place rated 
orders for delivery of production equipment required to support 
authorized atomic energy programs, when the equipment is necessary for 
the timely performance of rated orders and timely delivery of the 
equipment cannot be obtained otherwise.
    (b) The Secretary of Energy may authorize persons to place rated 
orders for delivery of construction equipment, when the equipment is to 
be used for authorized atomic energy construction projects and timely 
delivery of the equipment cannot be obtained otherwise.
    5. Delivery Scheduling.
    The Secretary of Energy is delegated the authority to reschedule 
deliveries of materials which are required in support of DOE programs, 
provided that such authority shall be used (1) only to reschedule 
deliveries among contracts or orders assigned priority ratings by DOE, 
and (2) only to the extent that such rescheduling of deliveries requires 
no change in production schedules of other rated orders.
    6. Special Priorities Assistance.
    The Secretary of Energy may sponsor requests by persons for special 
priorities assistance upon determining the defense or energy-related 
urgency of the requested assistance. DOE will: (1) serve as the initial 
point of contact for persons needing assistance, (2) verify the accuracy 
of the information provided and make reasonable efforts to resolve

[[Page 98]]

the issues, and when necessary, (3) expeditiously forward the request 
through established DOE channels to DOC to facilitate timely resolution. 
Upon receipt of the request for special priorities assistance, DOC will 
take immediate action to effect resolution and will keep DOE advised of 
progress.
    7. Compliance, Audits, and Training.
    In exercising this delegation, the Secretary of Energy should ensure 
that both DOE personnel and defense contractors are in full compliance 
with the provisions of the DPAS regulation. Accordingly:
    (a) The Secretary of Energy is delegated the authority to review the 
implementation of the DPAS by all persons who are in receipt of rated 
orders supporting DOE programs. However, this review shall not include 
inquiries into any unrated activities of these persons.
    (b) The Secretary of Energy shall notify DOC of any alleged 
violations of the priorities and allocations provisions of the Defense 
Production Act or of the DPAS regulation.
    (c) The Secretary of Energy should conduct a continuing training 
program to ensure that appropriate DOE and contractor personnel are 
thoroughly familiar with the provisions of the DPAS and this delegation.
    8. Limitations of Authority.
    (a) This delegated authority shall not be used for (1) material 
purchased from exclusively retail establishments; (2) procurement of 
items to be used primarily for administrative purposes, such as for 
personnel or financial management; or (3) direct procurement by or for 
DOE of any items specifically set forth in the Statement of Conditions 
to this delegation (not published).
    (b) Priority ratings to support the maximization of domestic energy 
supplies provided by section 101(c) of the Defense Production Act of 
1950, as amended, may only be used after the findings required by 
section 101(c) have been made:
    (1) The Secretary of Energy must determine that the energy program 
involved maximizes domestic energy supplies; and find that the specific 
material or equipment is critical and essential.
    (2) The Secretary of Commerce must find that the specific material 
or equipment is scarce; and that there is a reasonable need to use the 
priorities and allocations authorities.
    (c) This delegation shall be implemented in accordance with the DPAS 
regulation, the Statement of Conditions to this delegation (not 
published), and any other regulations and official actions issued by 
DOC. It does not limit the authority of the Secretary of Commerce under 
Executive Order 10480 or other authority.
    9. Redelegations of Authority.
    The authority granted by this delegation may be redelegated within 
DOE and to other agencies of the United States administering DOE 
programs. Any redelegations of such authority shall be made in writing 
with a copy furnished to DOC. No other redelegations of such authority 
shall be made without the prior written approval of DOC.
    10. Effective Date and Revocation of Previous Delegations.
    This delegation of authority shall take effect August 29, 1984, 
revoking all previous delegations issued by DOC relating to these 
authorities.

    Dated: June 21, 1984.
Walter J. Olson,

Deputy Assistant Secretary of Commerce for Export Administration.

  DPAS DEL. 3--Delegation of Authority to the Administrator of General 
  Services; Defense Priorities and Allocations System (15 CFR part 700)

    1. Authority.
    Defense Production Act of 1950, as amended (50 U.S.C. app. 2061, et 
seq.); Executive Order 10480, 18 FR 4939, 3 CFR 1949-1953 Comp., p. 962, 
as amended; and Defense Mobilization Order (DMO) 3, 44 CFR 322.
    2. Purpose.
    (a) This document delegates certain authority to the Administrator 
of General Services necessary to the effective implementation of the 
Defense Priorities and Allocations System (DPAS) regulation (15 CFR part 
700).
    (b) Certain specifics concerning the implementation of this 
delegated authority are contained in a Statement of Conditions to this 
delegation issued by the Office of Industrial Resource Administration 
(OIRA), Department of Commerce (DOC).
    3. Rating Authority.
    The Administrator of General Services is delegated the authority to 
place DO rated contracts and orders in support of the General Services 
Administration's (GSA) Supply Distribution Program for items acquired 
for authorized programs of the Departments of Defense and Energy. In 
placing rated orders, GSA is to use the program identification symbol 
K1.
    4. Special Priorities Assistance.
    The Administrator of General Services may sponsor requests by 
persons for special priorities assistance upon determining the defense 
urgency of the requested assistance. GSA will: (1) serve as the initial 
point of contact for persons needing assistance, (2) verify the accuracy 
of the information provided and make reasonable efforts to resolve the 
issues, and when necessary, (3) expeditiously forward the request 
through established GSA channels to DOC to facilitate timely resolution. 
Upon receipt of the request for special priorities assistance, DOC will 
take immediate action to effect resolution and will keep GSA advised of 
progress.

[[Page 99]]

    5. Compliance, Audits, and Training.
    In exercising this delegation, the Administrator of General Services 
should ensure that both GSA personnel and defense contractors are in 
full compliance with the provisions of the DPAS regulation. Accordingly:
    (a) The Administrator of General Services is delegated the authority 
to review the implementation of the DPAS by all persons who are in 
receipt of rated orders supporting the GSA Supply Distribution Program. 
However, this review shall not include inquiries into any unrated 
activities of these persons.
    (b) The Administrator of General Services shall notify DOC of any 
alleged violations of the priorities and allocations provisions of the 
Defense Production Act or the DPAS regulation.
    (c) The Administrator of General Services should conduct a 
continuing training program to ensure that appropriate GSA and 
contractor personnel are thoroughly familiar with the provisions of the 
DPAS and this delegation.
    6. Limitations of Authority.
    (a) This delegation is restricted to the GSA Supply Distribution 
Program and shall be implemented in accordance with the DPAS regulation, 
the Statement of Conditions to this delegation (not published), and any 
other regulations and official actions issued by DOC. It does not limit 
the authority of the Secretary of Commerce under Executive Order 10480 
or other authority.
    (b) This delegated authority shall not be used for (1) material 
purchased from exclusively retail establishments; (2) procurement of 
items to be used primarily for administrative purposes, such as for 
personnel or financial management; or (3) direct procurement by or for 
GSA of any items specifically set forth in the Statement of Conditions 
to this delegation (not published).
    7. Redelegations of Authority.
    The authority granted by this delegation may be redelegated within 
GSA. Any redelegations of such authority shall be made in writing with a 
copy furnished to DOC. No other redelegations of such authority shall be 
made without the prior written approval of DOC.
    8. Effective Date and Revocation of Previous Delegations.
    This delegation of authority shall take effect August 29, 1984, 
revoking all previous delegations issued by DOC to GSA relating to these 
authorities.

    Dated: June 21, 1984.
Walter J. Olson,

Deputy Assistant Secretary of Commerce for Export Administration.

  DPAS DEL. 4--Delegation of Authority to the Director of the Federal 
 Emergency Management Agency; Defense Priorities and Allocations System 
                            (15 CFR part 700)

    1. Authority.
    Defense Production Act of 1950, as amended (50 U.S.C. app. 2061, et 
seq.); Executive Order 10480, 18 FR 4939, 3 CFR 1949-1953 Comp., p. 962, 
as amended; and Defense Mobilization Order (DMO) 3, 44 CFR 322.
    2. Purpose.
    (a) This document delegates certain authority to the Director, 
Federal Emergency Management Agency (FEMA), necessary to the effective 
implementation of the Defense Priorities and Allocations System (DPAS) 
regulation (15 CFR part 700).
    (b) Certain specifics concerning the implementation of this 
delegated authority are contained in a Statement of Conditions to this 
delegation issued by the Office of Industrial Resource Administration 
(OIRA), Department of Commerce (DOC).
    3. Rating Authority.
    The Director of FEMA is delegated the authority to place, and upon 
application, to authorize state and local governments to place, DO rated 
contracts and orders in support of federal, state, and local civil 
defense programs or projects approved by FEMA as directly related to 
programs for the national defense. In placing rated orders, FEMA and the 
state and local governments are to use the program identification symbol 
N1.
    4. Special Priorities Assistance.
    The Director of FEMA may sponsor requests by persons for special 
priorities assistance upon determining the defense urgency of the 
requested assistance. FEMA will: (1) serve as the initial point of 
contact for persons needing assistance, (2) verify the accuracy of the 
information provided and make reasonable efforts to resolve the issues, 
and when necessary, (3) expeditiously forward the request through 
established FEMA channels to DOC to facilitate timely resolution. Upon 
receipt of the request for special priorities assistance, DOC will take 
immediate action to effect resolution and will keep FEMA advised of 
progress.
    5. Compliance, Audits, and Training.
    In exercising this delegation, the Director of FEMA should ensure 
that FEMA personnel, federal, state, and local officials, and defense 
contractors are in full compliance with the provisions of the DPAS 
regulation. Accordingly:
    (a) The Director of FEMA is delegated the authority to review the 
implementation of the DPAS by all persons who are in receipt of, or 
authorized to place, rated orders supporting the FEMA approved federal, 
state and local civil defense programs or projects. However, this review 
shall not include inquiries into any unrated activities of these 
persons.

[[Page 100]]

    (b) The Director of FEMA shall notify DOC of any alleged violations 
of the priorities and allocations provisions of the Defense Production 
Act or the DPAS regulation.
    (c) The Director of FEMA should conduct a continuing training 
program to ensure that appropriate FEMA personnel, federal, state, and 
local officials, and contractor personnel are thoroughly familiar with 
the provisions of the DPAS and this delegation.
    6. Limitations of Authority.
    (a) This delegation is restricted to federal, state, and local civil 
defense programs and projects approved by FEMA as directly related to 
programs for the national defense, and shall be implemented in 
accordance with the DPAS regulation, the Statement of Conditions to this 
delegation (not published), and any other regulations and official 
actions issued by DOC. It does not limit the authority of the Secretary 
of Commerce under Executive Order 10480 or other authority.
    (b) This delegated authority shall not be used for (1) material 
purchased from exclusively retail establishments; (2) procurement of 
items to be used primarily for administrative purposes, such as for 
personnel or financial management; or (3) direct procurement by or for 
FEMA of any items specifically set forth in the Statement of Conditions 
to this delegation (not published).
    7. Redelegations of Authority.
    The authority granted by this delegation may be redelegated within 
FEMA. Any redelegations of such authority shall be made in writing with 
a copy furnished to DOC. No other redelegations of such authority shall 
be made without the prior written approval of DOC.
    8. Effective Date of Delegation.
    This delegation of authority shall take effect August 29, 1984.

    Dated: June 21, 1984.
Walter J. Olson,

Deputy Assistant Secretary of Commerce for Export Administration.

[49 FR 30414, July 30, 1984; 49 FR 50171, Dec. 27, 1984]

    Appendix II to Part 700--Interagency Memorandum of Understanding

  Departments of Agriculture and Commerce--Memorandum of Understanding 
     Between the Departments of Agriculture and Commerce Concerning 
 Priorities and Allocations Jurisdiction and Responsibilities for Foods 
                       Which Have Industrial Uses

                               A. Purpose

    This Understanding sets forth the priorities and allocations 
jurisdiction and responsibilities of the Department of Agriculture 
(Agriculture) and the Department of Commerce (Commerce) for defense 
mobilization in the event of a national emergency, and for emergency 
preparedness functions, as they relate to foods which have industrial 
uses.

                              B. Authority

    1. Section 201(a) of Executive Order 10480, as amended (E.O. 10480), 
and Defense Mobilization Order 3 (DMO 3) (44 CFR 322) provide for the 
delegation of authority for the administration of priorities and 
allocations functions under the Defense Production Act of 1950, as 
amended (50 U.S.C. App. 2061, et seq.), to the Secretary of Agriculture 
with respect to food; and to the Secretary of Commerce with respect to 
all other materials and facilities not specifically delegated to other 
agencies.
    2. Section 901 et seq. of Executive Order 11490, as amended (E.O. 
11490), delegates to the Secretary of Commerce the authority for 
preparing national emergency plans and developing preparedness programs 
covering the production and distribution of all materials and the use of 
all production facilities, except those that are specifically assigned 
to, or under the jurisdiction of other agencies. Section 801 et seq. of 
E.O. 11490 provides for the delegation of authority with respect to the 
production, processing, distribution, and storage of food resources, and 
the use of food resource facilities, to the Secretary of Agriculture.
    3. Section 601(h) of E.O. 10480 defines the term ``food'' as:

    * * * all commodities and products, simple, mixed, or compound or 
complements to such commodities or products, that are capable of being 
eaten or drunk by either human beings or animals, irrespective of other 
uses to which such commodities or products may be put, at all stages of 
processing from the raw commodity to the products thereof in vendible 
form for human or animal consumption * * *. The term ``food'' shall also 
include all starches, sugars, vegetable and animal fats and oils, 
cotton, tobacco, wool, mohair, hemp, flax fiber, and naval stores, but 
shall not include any such material after it loses its identity as an 
agricultural commodity or agricultural product.

Section 802(1) of E.O. 11490 defines the term ``food resources'' in the 
same language. Accordingly, these terms are used interchangeably in this 
Understanding.
    4. The functions delegated by these authorities to the Secretaries 
of Agriculture and Commerce have been redelegated by the Secretary of 
Agriculture to the Administrator, Agricultural Stabilization and 
Conservation Service (ASCS), and by the Secretary of Commerce to the 
Director, Office of Industrial Resource Administration (OIRA).

[[Page 101]]

                          C. General Provisions

    1. This Understanding covers only food and agricultural commodities 
and products which have industrial uses. Jurisdiction over such 
commodities will normally pass to Commerce at the point where the foods 
are no longer capable of being eaten or drunk, except as otherwise 
provided.
    2. The provisions of this Understanding covering fibers are limited 
to those specifically mentioned in E.O. 10480 and 11490 (i.e., cotton, 
wool, mohair, hemp and flax fiber), and have the purpose of defining the 
points at which these fibers lose their identity as agricultural 
commodities or agricultural products.
    3. Both Agriculture and Commerce have jurisdiction over the major 
food commodities listed in section D of this Understanding. For each of 
these commodities, the point at which the jurisdiction of Agriculture 
will end is indicated and, except as otherwise provided, the 
jurisdiction of Commerce will begin at that point.
    (a) The points at which the jurisdiction of Agriculture will 
terminate are expressed in terms of a particular stage of production or 
processing pursuant to the authority provided in E.O. 10480 and 11490, 
and at a point considered to be most administratively feasible.
    (b) Consideration is given wherever possible to the structure of an 
industry. The wet-milling industry, for example, is large and integrated 
and it is desirable that Agriculture have jurisdiction over the raw 
products while they are a part of this industry and until they enter the 
processes of other industries which result in their becoming nonfood or 
nonagricultural products. As an illustration, corn starch for textile 
sizing would be under the jurisdiction of Agriculture while it is being 
extracted from the corn and prepared for use by the textile industry. It 
would still be under the jurisdiction of Agriculture until it enters the 
textile manufacturing process. At this point, jurisdiction over this 
commodity shifts to Commerce.
    (c) Commodities such as fats and oils, grain products, egg products, 
starch from all sources, spices, and tartaric acid are used for the 
manufacture of so many nonfood or nonagricultural products that it is 
not practical to enumerate all of these products in section D and to 
identify in each case the exact beginning process. Consequently, the 
principle for determining the respective jurisdiction of the two 
Departments in cases of this type is expressed broadly and supplemented 
by a few examples of nonfood and nonagricultural products so as to 
clarify the application of the principle. These examples are not 
intended to be all-inclusive.
    4. Imports and exports of food and agricultural commodities and 
products in any form prior to industrial uses are within the 
jurisdiction of Agriculture, subject to meeting requirements that may be 
imposed by any other agency in the exercise of its authority.
    5. Agriculture will, with noted exceptions, allocate and exercise 
priority controls on food and agricultural commodities and products, 
taking into account claims presented by Commerce. However, the 
suballocation of food and agricultural commodities or products for 
conversion into non-food and non-agricultural commodities or products 
will be made in accordance with the recommendations of Commerce.
    6. It is understood that relationships between Agriculture and 
Commerce involving jurisdiction over particular functions and particular 
commodities may have to be amplified at a later time. It is also 
recognized that there will be situations in which operations of the same 
person, as defined in section 702(a) of the Defense Production Act of 
1950, as amended (50 U.S.C. App. 2152(a)), will be affected by the 
exercise of the respective authorities of the two Departments under this 
Understanding. To avoid overlapping and duplication of reporting and 
related operations in such situations, it is agreed that the two 
Departments will work out specific cooperative arrangements whereby the 
facilities of one shall be utilized by the other and that efforts will 
be made to provide the most feasible arrangements for administering 
necessary program controls.
    7. To assure that both Agriculture and Commerce have full authority 
to implement their respective responsibilities under E.O. 10480 and 
11490, and DMO 3, as well as to effectuate the provisions of this 
Understanding, each Department delegates to the other the requisite 
authority for the exercise of priorities and allocations functions as 
set forth in this Understanding.

                        D. Particular Commodities

    The following list identifies some major food and agricultural 
commodities and commodity groups in which both Agriculture and Commerce 
have an interest and provides the point at which Agriculture's 
jurisdiction ends and Commerce's jurisdiction begins. This list is not 
all-inclusive but it does cover the major items for which jurisdiction 
might become an issue.
    1. Agriculture shall have jurisdiction over the following 
commodities until they enter any manufacturing process and lose their 
identity as food or as agricultural commodities or products (examples 
are set forth in parentheses after the name of the commodity):
    (a) Egg products. (Shampoos, products used in printing, 
pharmaceuticals)
    (b) Fats and oils. (Paints, soap, varnishes, lacquers, printer's 
ink, cosmetics, pharmaceuticals)

[[Page 102]]

    (c) Fatty acids. (Paints, soap, cosmetics, chemicals, 
pharmaceuticals)
    (d) Grain and grain products, including dextrin, corn syrups, grain 
sugars, lactic acid, gluten, and low-grade wheat flour. (Textiles, 
adhesives, leather, core binders, pharmaceuticals, nonbeverage alcohol)
    (e) Molasses, including blackstrap and high-test, and potatoes. 
(Nonbeverage alcohol)
    (f) Spices, essential oils. (Cosmetics)
    (g) Starches. (Adhesives, asbestos, textiles, explosives)
    (h) Sugars. (Insecticides, plasticizing agents, adhesives)
    (i) Tartaric acid. (Products used in photography, dyeing, textile 
printing)
    2. Agriculture shall have jurisdiction over the following 
commodities until the specifically designated point in their processing, 
except as otherwise provided:
    (a) Cotton lint and linters, hemp and flax fiber--When the bale is 
opened for the purpose of processing in the mill in which it is opened. 
This authority shall extend to the delivery and distribution of soft 
types of cotton waste but shall not include control over the use of such 
waste in the mill producing it.
    (b) Milk and milk products--When the milk and milk products enter a 
plant where they are to be used or processed for industrial purposes as 
distinct from use as human food or animal feed. Agriculture shall have 
jurisdiction over imports of milk and milk products intended for use as 
human food or animal feed, while Commerce shall have jurisdiction over 
imports intended for industrial purposes only.
    (c) Wool and mohair--When the wool and mohair (grease and scoured, 
shorn and pulled) enter a plant where they are to be used, or 
manufactured into a final product. Inventories of scoured wool or 
scoured mohair held by manufacturers for their use in producing other 
products, whether by incorporation into such products or otherwise, 
shall be controlled by Commerce. The jurisdiction of Agriculture shall 
extend to the delivery and distribution of noils but shall not include 
control over the use of noils by the mill producing them.
    (d) Naval stores:
    (1) Tall oil (sulfate naval stores). Commerce shall have 
jurisdiction over the production, distribution, processing, and 
allocation. The distribution of tall oil fatty acids shall be under the 
jurisdiction of Agriculture.
    (2) Wood. Commerce shall have jurisdiction over production, 
distribution, processing, and allocation.
    (3) Gum. Agriculture shall have jurisdiction over production through 
the first processing of the gum. Commerce shall have jurisdiction over 
allocation.
    (4) Commerce will consult with Agriculture before allocating naval 
stores in order to avoid conflict with programs administered by 
Agriculture.
    3. The following commodities are under the jurisdiction of the 
designated Department:
    (a) Ice--Agriculture.
    (b) Tobacco and tobacco products--Agriculture.
    (c) Hides and leather, hair and bristles, feathers, soap. 
detergents, beeswax, pharmaceuticals (including medicines and vitamins), 
acetic acid, chemical leavening compounds and salt--Commerce.
    4. In order to further clarify the division of authority for fats 
and oils, Schedule A to this Understanding lists major fats and oils, 
and fat and oil products, over which Agriculture has jurisdiction and 
the major products of fats and oils, and products produced using fats 
and oils, over which Commerce has jurisdiction.
    5. It is recognized that quantities of certain commodities may be 
needed for food use which are under the jurisdiction of Commerce. 
Conversely, raw materials for manufacturing may be needed which are 
under the jurisdiction of Agriculture. In situations of this kind and 
for other similar commodities not listed in this section, working 
arrangements will be developed between ASCS and OIRA as the need arises 
pursuant to the principles set forth in this Understanding.

                            E. Effective Date

    This Memorandum of Understanding supersedes the Memorandum of 
Agreement between the Administrators of the Agricultural Marketing 
Service and the ASCS of the Department of Agriculture, and the Acting 
Deputy Assistant Secretary for Competitive Assessment and Business 
Policy of the Department of Commerce, concerning foods which have 
industrial uses, and signed by them on November 2, 7, and 10, 1973, 
respectively (38 FR 33504, December 5, 1973); and shall take effect 
August 29, 1984.

Department of Agriculture
Everett Rank,

Administrator, Agricultural Stabilization and Conservation Service

    Date: June 15, 1984.

Department of Commerce

John A. Richards,
Director, Office of Industrial Resource Administration

    Date: June 14, 1984.

               Schedule A--Jurisdiction Over Fats and Oils

    I. Fats and oils and fats and oils products under the jurisdiction 
of Agriculture:
    A. Animal and marine.

[[Page 103]]

                             1. Animal fats

Lard
Marrow
Tallows and greases
Wool grease and lanoline
Neats foot oil

                             2. Marine oils

Cod
Dogfish
Fulachon
Herring
Menhaden
Pilchard
Salmon
Sardine
Seal
Shark
Whale

                          3. Marine liver oils

Cod
Dogfish
Shark
Swordfish
Tuna fish

                4. Other animal and marine fats and oils

Fatty acids
Foots
Oleo oil and oleo searin
Soap stocks

    B. Vegetable.

                       1. Vegetable fats and oils

Cocoa butter
Fatty acids
Lecithin
Oiticic
Olive residue
Soap stocks
Tallows and greases

                         2. Major vegetable oils

Babassu nut
Castor
Corn
Coconut
Cottonseed
Linseed
Olive
Palm
Palm kernel
Peanut
Rapeseed
Safflower seed
Sesame
Soybean
Sunflower seed
Tung

                         3. Other vegetable oils

Cashew nut
Cohune
Colza
Hemp seed
Kapok seed
Murumuru
Mustard
Ouricury
Perilla
Poppy seed
Rubber seed
Tea seed
Tucum

    C. Edible fats and oils products, including:

Butter
Cooking oil and compounds
Lard compounds
Margarine
Salad oils
Shortenings

    D. Combinations and mixtures of animal, marine, vegetable, nut and 
seed fats and oils, or any of them.
    II. Products of fats and oils and products produced using fats and 
oils under the jurisdiction of Commerce:
Coated fabrics and floor coverings
Glycerine
Inedible products of fats and oils
Paints, varnishes, lacquers
Printer's ink
Soap

  Departments of Agriculture and Commerce--Memorandum of Understanding 
     Between the Departments of Agriculture and Commerce Concerning 
 Priorities and Allocations Jurisdiction and Responsibilities for Farm 
                                Equipment

                               A. Purpose

    This Understanding sets forth the priorities and allocations 
jurisdiction and responsibilities of the Department of Agriculture and 
the Department of Commerce for defense mobilization in the event of a 
national emergency, and for emergency preparedness functions, as they 
relate to the domestic distribution of farm equipment.

                              B. Authority

    1. Section 201(a) of Executive Order 10480, as amended (E.O. 10480), 
and Defense Mobilization Order 3 (DMO 3) (44 CFR 322) provide for the 
delegation of authority for the administration of priorities and 
allocations functions under the Defense Production Act of 1950, as 
amended (50 U.S.C. app. 2061, et seq.), to the Secretary of Agriculture 
with respect to the domestic distribution of farm equipment; and to the 
Secretary of Commerce with respect to all other materials and facilities 
not specifically delegated to other agencies.
    2. Section 601(i) of E.O. 10480 defines the term ``farm equipment'' 
to mean equipment manufactured for use on farms in connection with the 
production or processing of food.
    3. Section 901 et seq. of Executive Order 11490, as amended (E.O. 
11490), delegates to the Secretary of Commerce the authority for 
preparing national emergency plans and developing preparedness programs 
covering the production and distribution of all materials and the use of 
all production facilities, except those that are specifically assigned 
to, or under the jurisdiction of other agencies. Section 801 et seq. of 
E.O. 11490 provides for the delegation of this authority with respect to 
the domestic distribution of farm equipment to the Secretary of 
Agriculture.
    4. The functions delegated by these authorities to the Secretaries 
of Agriculture and Commerce have been redelegated by the Secretary of 
Agriculture to the Administrator, Agricultural Stabilization and 
Conservation Service (ASCS), and by the Secretary of Commerce to the 
Director, Office of Industrial Resource Administration (OIRA).

                          C. General Provisions

    1. The term ``farm equipment'' as used in E.O. 10480 and 11490, for 
the purposes of this Understanding, includes only those items of

[[Page 104]]

machinery, equipment, attachments, and repair or replacement parts 
identified in Schedule A to this Understanding.
    2. In a national emergency or mobilization situation, OIRA may 
request ASCS to make special distribution of the farm equipment items 
listed in Schedule A that can be used off the farm for civil defense and 
life saving purposes. ASCS will give full consideration to these 
requests in accordance with the priorities and allocations policies of 
the Federal Government in effect at that time.

                            D. Effective Date

    This Memorandum of Understanding supersedes the Memorandum of 
Understanding and Agreement between the Administrator of the ASCS of the 
Department of Agriculture, and the Acting Deputy Assistant Secretary for 
Competitive Assessment and Business Policy of the Department of 
Commerce, concerning the scope of the term ``Farm Equipment'', and 
signed by them on November 7 and 10, 1973, respectively (38 FR 34749, 
December 5, 1973); and shall take effect August 29, 1984.

Department of Agriculture
Everett Rank,

Administrator, Agricultural Stabilization and Conservation Service
    Date: June 15, 1984.

Department of Commerce

John A. Richards,
Director, Office of Industrial Resource Administration

    Date: June 14, 1984.

                       Schedule A--Farm Equipment

         Tractors, Wheel, Manufactured Specifically for Farm Use

Farm Tractors, 2-Wheel Drive, 20 to 39 PTO HP
Farm Tractors, 2-Wheel Drive, 40 to 99 PTO HP
Farm Tractors, 2-Wheel Drive, Over 100 PTO HP
Farm Tractors, 4-Wheel Drive,

                            Tillage Equipment

Bedders, Bed Levelers, Shapers, and Splitters
Blockers and Thinners, row crop
Cultivators, Field, Row Crop, Tobacco and Vineyard, mounted and pull 
type
Harrows, including: spike-tooth, spring-tooth, tine-tooth, disk, rotary, 
offset, knife, oscillating, bush and bog, and tandem disk
Land Levelers
Middlebusters, Ridgebusters, and Clodbusters
Mulch Tillage Implements
Plows, including: moldboard, chisel, ditching, terracing, and one-way 
disk
Pulverizers, stalk
Ridgelevelers
Rod Weeders
Rotary Hoes and Tillers, field type
Rollers and Cultipackers, including combination harrow-packers
Shredders, brush and stalk, bush hog
Stubble Shavers, cane
Subsoilers, Tractor mounted and pull-type
Tillers, basin and disk
Tool bars and carriers
Transport carriers, farm implement

                    Fertilizing and Liming Equipment

Anhydrous Ammonia Applicators, Pumps, Tanks and Tank Wagons
Dry and Liquid Fertilizer Attachments for Drills and Planters
Fertilizer Distributors and Applicators
Fertilizer storage bins and tanks
Pumps, Liquid Fertilizer
Side-Dressing attachments
Spreaders, Lime and Fertilizer, Tractor or Truck mounted and pull type
Sprayers, Liquid fertilizer, Truck mounted and pull type

                           Planting Equipment

Drills and Planters, including fertilizer attachments
Grass Seeder, Broadcast-type, Tractor mounted or pull type
Grass Seeder attachments, Drill and Tillage equipment
Listers
Planters, Minimum or no Tillage, Tractor mounted or pull type
Potato Planters, Brushers, Cutters, and Desprouters
Seeders
Transplanters

                    Agricultural Dusters and Sprayers

Dusters, Crop, Field, Livestock, Poultry, Orchard, and Vineyard
Foggers and Mist Blowers
Granular Chemical Applicators, Broadcast and Band-type
Herbicide Applicators, Low Volume
Sprayers, Field, Livestock, Poultry, Orchard, and Vineyard, Air Mist, 
Boomtype and Boomless, Trailer or Tractor mounted and self-propelled

                          Harvesting Equipment

Augers, Conveyors and Elevators, farm type, portable and stationary, 
with or without wheels
Bunchers and Tiers, Vegetable, farm type
Combines, Harvester-thresher, self-propelled and pull type, including 
corn head and windrow attachments
Corn Cribs
Corn Pickers and Picker-shellers, self-propelled, pull type, and semi-
mounted

[[Page 105]]

Cotton Pickers and Strippers, self-propelled, Tractor mounted and pull 
type
Crop and Grain Dryers and Fans, batch, bin, and continuous operation 
types
Curers, Tobacco
Grain Bins, including: perforated floors, ladders, spreaders, stirring 
devices, unloaders, and ventilation equipment
Grain Blowers
Harvesters, Harvesting and Handling Equipment for Corn, Grain, 
Vegetables, Peanuts, Tobacco, Onions and Nuts
Hullers, Graders, Sorters, Sackers, Conveyors, farm type for Potatoes, 
Fruit, Vegetables, Grain, Seed and Nuts
Orchard and Vineyard Pruning Equipment, power
Peanut Drying Equipment
Potato Diggers, Pickers and Baggers
Power Units for Harvesting Equipment, self-propelled
Sugar Beet Harvesters, Toppers, Lifters, and Loaders
Sugar Cane Harvesting Equipment
Toppers, Crop and Vegetable
Windrowers and Swathers, Dry Edible Beans and Pea Vine

                   Hay and Forage Harvesting Equipment

Balers, Twine, and Wire, self-propelled and pull type, including round 
bale type
Forage Blowers and Cutter Blowers, Pipe, and Spouts
Forage Harvesters, self-propelled, Tractor mounted and pull type
Forage Wagons and Boxes, running gear and truck mounted
Giant Hay Balers, Stackers and Transportation Equipment
Hay Tedders
Hay Wafering and Cubing Machines
Mowers, Choppers, conditioners, Mower-conditioners, and Windrowers, 
field, flail, rotary, or sickle bar, mounted or pull type
Rakes, side delivery
Loaders, loose hay
Loaders, Stackers and Bale Throwers

                 Dairy, Poultry and Livestock Equipment

Barn Manure Cleaners, dairy, livestock and poultry types
Bale Feeders, giant-size Bale and Stack types
Brooders, poultry and hog
Bunk Feeder Systems, including: Wagon or truck-mounted feeder boxes
Carriers, Hay, Litter and Feed, overhead and track type
Dairy Barn Equipment, including: pens, stanchions and stalls
Egg Gathers and Collecting Systems, automatic
Egg Room Coolers and Humidifiers
Egg Graders, Candlers and Washers
Feed Mills, Grinder-mixers, Roller Mills, and Mixers, stationary and 
portable
Feed Storage Bins and Tanks, elevated, bulk
Feed and Grain Metering Devices
Feeders and Waterers, cattle, sheep, hog and poultry, automatic and 
manual
Hog Confinement Systems, Farrowing Stalls and Feeding Systems
Incubators, poultry
Livestock Confinement Buildings, including: feeding, watering, 
ventilation and cleaning systems
Livestock Handling Gates, Pens and Chutes
Liquid Manure Pumps and Tanks
Manure Loaders, Tractor mounted
Milk Cooling Tanks, bulk and can type
Milking Machines, Pipelines and Transfer Stations
Milk Room Equipment, including: water heaters, sterilizing and washing 
tanks
Milking Parlor Stalls, including: feeding systems
Poultry Cages, Feed and Water Systems
Silo, upright and concrete trench-type
Silo Unloaders, upright and trench-type, top or bottom
Silo-filling Equipment, including: pipe and distribution equipment
Spreaders, Barn and Liquid Manure
Tanks, Livestock, Dipping and Stock Water
Ventilation Systems, automatic, electric

                         Water Supply Equipment

Jacks, Pump
Pumps, Hand, Windmill, electric, PTO and motor-powered
Water Systems including: storage and/or pressure tanks, domestic and 
farmstead, deep and shallow well, jet and non-jet

                          Irrigation Equipment

Ditch Gates, Furrow Openers, Levee Plows
Pipe, Couplers, Valves and Sprinkler Heads
Systems Controls, automatic and center pivot
Systems Pumps, deep well, shallow well and surface water supply type

                      Other Farm Equipment, N.E.C.

Alcohol Distilling Plants, farm type
Chain Saws
Cleaners and Graders, farm type, grain and seed
Diggers, post-hole, Tractor mounted, farm type
Electric Generating Plants, farm type, continuous duty and standby, 
Tractor or motor powered
Fencing Materials
Log Skidders and Splitters
Post Drivers and Pullers, power, farm type
Tracks, Crawler, combine and wheel Tractor
Wagon Running Gears, farm type
Wagon Boxes, including: Auger unloading, barge and flare, bunk feeding, 
forage, feed-mixing, gravity and hydraulic dump
Windmill Towers and Heads

[[Page 106]]

                      Repair and Replacement Parts

Parts manufactured specifically for use in the maintenance and repair of 
the farm equipment (including plowshares and disk blades) listed in this 
Schedule.

Departments of Energy and Commerce--Memorandum of Understanding Between 
 the Departments of Energy and Commerce Concerning the Jurisdiction and 
    Responsibilities for Products and Equipment Associated with the 
     Production of Petroleum and Gas for Emergency Preparedness and 
                              Mobilization

                               A. Purpose

    This Understanding sets forth the jurisdiction and responsibilities 
of the Department of Energy (DOE) and the Department of Commerce (DOC) 
for defense mobilization, emergency preparedness, and resource 
management programs under the authorities listed in section B, in the 
event of a national emergency, as such programs relate to the production 
and distribution of: (1) chemicals and fluids made especially for use in 
the petroleum and gas industry; (2) oil and gas field machinery and 
equipment; and (3) petrochemicals derived from oil, gas, and natural gas 
liquids.

                              B. Authority

    1. Pursuant to section 201(a) of Executive Order 10480, as amended 
(E.O. 10480), Defense Mobilization Order 3 (DMO 3) (44 CFR 322) 
delegates authority for the administration of priorities and allocations 
functions under the Defense Production Act of 1950, as amended (50 
U.S.C. app. 2061, et seq.), to the Secretary of Energy with respect to 
petroleum, gas, solid fuels, and electric power; and to the Secretary of 
Commerce with respect to all other materials and facilities not 
specifically delegated to other agencies.
    2. Executive Order 11490, as amended (E.O. 11490), delegates to the 
Secretary of Commerce the authority for preparing national emergency 
plans and developing preparedness programs covering the production and 
distribution of all materials, and the use of all production facilities 
except those that are specifically assigned to, or under the 
jurisdiction of, other agencies. Such an exception is provided for the 
production and distribution of, and the use of facilities for, petroleum 
and gas. E.O. 11490 provides for the delegation of this authority to the 
Secretary of Energy.
    3. The functions delegated by these authorities to the Secretaries 
of Energy and Commerce have been redelegated by the Secretary of Energy 
to the Assistant Secretary for Environmental Protection, Safety, and 
Emergency Preparedness, and by the Secretary of Commerce to the 
Director, Office of Industrial Resource Administration (OIRA).

                      C. Departmental Jurisdiction

    The primary use of a product or material is the basis for the 
division of Departmental jurisdiction set forth below. Any product or 
material not specifically identified in this Understanding which is used 
primarily as a fuel or in a primary manufacturing process to produce 
fuel, is under the jurisdiction of DOE. Generally, any non-fuel product 
or material, or any product or material which is used primarily as an 
industrial raw material, is under the jurisdiction of DOC. In the event 
that questions arise with respect to jurisdiction over particular 
products, materials, or production facilities, it is agreed that the two 
Departments will resolve these questions in such a manner as to provide 
the most feasible arrangements for program administration.
    1. Production.
    Department of Energy: DOE has jurisdiction over the production of: 
(a) petroleum and gaseous fuels, natural gas liquids, and petroleum 
lubricants, including ``refinery finished products,'' ``unfinished 
oils,'' and ``petrochemical feedstocks''; (b) ``petrochemicals'' from 
processing units located within a petroleum refinery where the weight of 
``petrochemicals'' in the output of the processing unit constitutes less 
than 30 percent by weight of the net input to the unit; (c) n-paraffin 
``petrochemical intermediates''; (d) ``special petroleum chemical 
supplies''; and (e) any fossil fuel or synthetic product not 
specifically indentified which is or can be used as a fuel or lubricant.
    Department of Commerce: DOC has jurisdiction over the production of: 
(a) all ``chemicals'' including ``petroleum processing catalysts'' and 
``fuel combustion improvers''; and (b) ``petrochemicals'' including 
those from processing units located within a petroleum refinery where 
the weight of ``petrochemcials'' in the output of the processing unit 
constitutes 30 percent or more by weight of the net input to the unit; 
and (c) oil and gas field machinery and equipment as identified in 
Schedule A to this Understanding, as well as any machinery, equipment, 
and technologies not yet developed for obtaining petroleum and natural 
gas.
    2. Facilities.
    Department of Energy: DOE has jurisdiction over all facilities for 
which production jurisdiction has been assigned to it by this 
Understanding.
    Department of Commerce: DOC has jurisdiction over all facilities for 
which production jurisdiction has been assigned to it by this 
Understanding.
    3. Distribution.
    Department of Energy: DOE has jurisdiction over the distribution of: 
(a) all petroleum, gaseous fuels (when such jurisdiction as authorized 
by E.O. 11490 is not exercised by the Federal Energy Regulatory 
Commission),

[[Page 107]]

natural gas liquids, and petroleum lubricants; (b) all ``special 
petroleum chemical supplies,'' ``petroleum processing catalysts,'' and 
``fuel combustion improvers''; (c) ``petrochemical feedstocks'' except 
those produced or gathered specifically for a chemical operation; (e) 
any other fossil fuel or synthetic product which is or can be used as a 
fuel; and (f) oil and gas field machinery and equipment as identified in 
Schedule A to this Understanding, as well as any machinery, equipment, 
and technologies not yet developed for obtaining petroleum and natural 
gas.
    Department of Commerce: DOC has jurisdiction over the distribution 
of: (a) all ``chemicals'' including ``petrochemicals'' but excluding 
those chemical product groups assigned to DOE; (b) ``petrochemical 
feedstocks'' specifically produced or gathered for a chemical operation; 
and (c) ``non-fuel or non-lubricant petroleum products.''

                             D. Definitions

    Under this Understanding, the term ``petroleum'' means crude oil, 
synthetic liquid fuel, their products and associated hydrocarbons, 
including pipelines for their movement and facilities specially designed 
for their storage; and the term ``gas'' means natural gas (excluding 
helium) and manufactured gas (but not industrial gases), including 
pipelines for their movement and facilities specially designed for their 
storage, when such juridiction as authorized by E.O. 11490 is not 
exercised by the Federal Energy Regulatory Commission. For the purpose 
of assigning jurisdiction under this Understanding, the following 
additional definitions shall apply:
    1. ``Petrochemical Feedstocks''
    Includes hydrocarbon materials obtained from petroleum and natural 
gas when used as ``feedstock'' or raw material for the production of 
``primary petrochemicals'' or ``petrochemical intermediates.'' These 
materials also include:
    Natural gas (methane) processed to a quality suitable for pipeline 
transmission;
    Natural gas liquids which are the several low boiling point, lower 
molecular weight hydrocarbons that include ethane, propane, butanes, 
pentanes, and liquified petroleum gases obtained from the processing of 
natural gas;
    Naphtha (light petroleum liquids) which is a medium boiling point 
range mixture of hydrocarbons obtained from the processing of natural 
gas, crude oil, or petroleum refining. Naphtha is the major component of 
gasoline. The usual distillation range of naphtha feedstock is 100-
400 deg.F; and
    Gas oil (heavy petroleum liquids) which is a high boiling point 
mixture of hydrocarbons obtained from the processing of crude oil or 
petroleum refining. Gas oil is the major component of distillate grades 
of fuel oil. Atmospheric gas oil may comprise hydrocarbons in the 
distillation range 400-650 deg.F; vacuum gas oil may comprise higher 
boiling materials in the distillation range 650-1000 deg.F.
    2. ``Chemicals''
    For the purpose of this Understanding, ``chemicals'' shall comprise 
those products listed under Major Group 28, Chemical and Allied 
Products, Standard Industrial Classification Manual, 1977 Edition; and 
shall specifically include ``petrochemicals,'' ``petroleum processing 
catalysts,'' ``fuel combustion improvers''; but shall exclude ``special 
petroleum chemical supplies.''
    3. ``Petrochemicals''
    Chemical materials which, directly or indirectly, are manufactured 
from petrochemical feedstock hydrocarbons. These materials include:
    Primary petrochemicals produced directly from feedstocks by chemical 
conversion or breakdown and mainly used for the production of 
``intermediates'' or petrochemical ``products'';
    Petrochemical intermediates generally produced by chemical converson 
of primary petrochemicals to form more complicated derived compounds. 
Such compounds serve as the raw material for synthesis of petrochemical 
``products,'' and for numerous other materials; and
    Petrochemical products which are end products of the chemical 
industry produced by chemical conversion of ``primary'' petrochemicals 
or petrochemical ``intermediates.''
    4. ``Refinery Finished Products''
    Any one of the petroleum oils or mixtures of oils which can be used 
without further processing, including:
    Liquified petroleum gases (LPG);
    Gasoline;
    Jet fuel;
    Naphtha;
    Distillate fuel oils;
    Lubricating oils and greases;
    Residual fuel oils;
    Asphalt; and
    Natural gas products--natural gasoline.
    5. ``Unfinished Oils''
    Semi-finished refinery products, or unseparated mixtures of refinery 
products, which are further processed for production of ``refinery 
finished products.''
    6. ``Special Petroleum Chemical Supplies''
    Products made especially for use in the production, refining and 
compounding of petroleum fuels and lubricants, including:
    Hydrogen produced in a refinery for use in petroleum processing; and
    Special additives:

for fuels and lubricants;
to facilitate the drilling of oil and gas wells;
to stimulate the production of oil and gas for enhanced oil recovery; 
and
to facilitate the pipeline transmission of petroleum.


[[Page 108]]


    7. ``Non-fuel or Non-lubricant Petroleum Products''
    Certain products produced in the course of the refining of petroleum 
whose primary uses are other than as fuels or lubricants, such as:

    Asphalts;
    Coke, petroleum--green and calcined;
    Cresylic acids;
    Naphthenic acids;
    Oils, rubber extending;
    Solvents--aliphatic and aromatic hydrocarbons;
    Waxes, refined--paraffin and micro-crystalline; and
    White oils, petrolatums, and other oils for medicinal, 
pharmaceutical and cosmetic purposes.

    8. ``Petroleum Processing Catalysts''
    Solid inorganic compositions used in petroleum refining to 
facilitate the conversion of hydrocarbons by chemical reaction, 
including:

    Catalytic cracking;
    Hydrocracking;
    Reforming;
    Isomerization;
    Desulfurization; and
    Hydrotreating.
    9. ``Fuel Combustion Improvers''
    Chemical compostions added to liquid petroleum fuels to improve 
combustion characteristics, including:
    Ethanol (ethyl alcohol);
    Methanol (methyl alcohol);
    Methyl tertiary butyl ether;
    Tertiary butyl alcohol;
    Tetraethyl lead and tetramethyl lead, and their blends for use as 
anti-knock materials; and
    Other products such as amyl nitrate, hexyl nitrate, n-methyl 
aniline, and the manganese-methyl cyclopentadiene complexes.

                       E. Delegation of Authority

    To ensure that DOE and DOC have the requisite authority to implement 
their responsibilities under E.O. 10480 and 11490, and DMO 3, as well as 
to effectuate the provisions of this Understanding, each Department 
delegates to the other its authority for the exercise of priorities and 
allocations functions under Section 101(a) of the Defense Production Act 
of 1950, as amended, with respect to the facilities, materials, and 
products specified in this Understanding.

                            F. Effective Date

    This Memorandum of Understanding shall take effect August 29, 1984, 
superseding the Memorandum of Agreement between the Department of the 
Interior and the Department of Commerce that became effective on October 
30, 1973 (38 FR 30896, November 8, 1973). The Department of the 
Interior's authority under this Memorandum of Agreement was transferred 
to the Department of Energy effective October 1, 1977, by Executive 
Order 12038 (43 FR 4957, February 7, 1978).

Department of Energy
H. A. Merklein
Assistant Secretary, International Affairs and Energy Emergencies

    Date: July 10, 1984.

Department of Commerce
John A. Richards,

Director, Office of Industrial Resource Administration

    Date: June 20, 1984.

    Schedule A--Machinery and Equipment Required for the Discovery, 
             Development, or Completion of Oil and Gas Wells

                  Exploration and Development Drilling

    Transportation (trucks, boats, helicopters)
    Drilling (rigs, pipes, pumps, engines, tanks, etc.)
    Drilling Fluids (weighting materials, chemicals, clays, etc.)
    Well Equipment (casing, carbon and alloy steel wellheads)

                               Completion

    Well Equipment (Christmas trees, tubing, liners, safety valves, 
etc.)
    Completion Equipment (workover or drilling rig, wireline unit)
    Well Services (sand control, acidizing, fracturing, cleanout)

                        Oil Production Facilities

    Pipe
    Structures
    Vessels
    Instruments
    Hardware and Accessories
    Associated Gas Facilities

                        Gas Production Facilities

    Field Gathering System
    Compression Facilities
    Processing Facilities

                       Artificial Lift Facilities

    Rod Pump
    Gas Lift
    Submersible Pumps
    Maintenance

                             Well Servicing

    Well Equipment
    Well Servicing Equipment
    Well Services
    Materials

                            Enhanced Recovery

    Waterflooding
    Gas Injection

[[Page 109]]

    Tertiary Processes

 Departments of the Interior and Commerce--Memorandum of Understanding 
  Between the Departments of the Interior and Commerce Concerning the 
 Jurisdiction and Responsibilities for Certain Minerals, Facilities and 
                 Materials; and Delegation of Authority

                               A. Purpose

    This Understanding sets forth the jurisdiction and responsibilities 
of the Department of the Interior and the Department of Commerce for 
defense mobilization, emergency preparedness programs, and resource 
management in the event of a national emergency as they relate to stages 
of processing and types of facilities concerning certain minerals. This 
Understanding also provides for a delegation of certain authority to the 
Secretary of the Interior which is presently assigned to the Secretary 
of Commerce.

                              B. Authority

    1. Section 201(a) of Executive Order 10480, as amended (E.O. 10480), 
and Defense Mobilization Order 3 (DMO 3) (44 CFR 322), provide for the 
delegation of authority to the Secretary of Commerce for administration 
of priorities and allocations functions under the Defense Production Act 
of 1950, as amended (50 U.S.C. App. 2061, et seq.), for materials and 
facilities not specifically delegated to other agencies. Section 602 of 
E.O. 10480 provides for redelegation of this authority.
    2. Section 901 et seq. of E.O. 11490 provides for the delegation of 
authority to the Secretary of Commerce for preparing national emergency 
plans and developing preparedness programs covering the production and 
distribution of all materials and the use of all production facilities, 
except those that are specifically assigned to, or under the 
jurisdiction of, other agencies. Such an exception is provided for the 
production and related distribution of minerals. Section 701 et seq. of 
E.O. 11490 provides for the delegation of this authority to the 
Secretary of the Interior.
    3. Section 702(5) of E.O. 11490 defines the term ``minerals'' to 
mean:

* * * all raw materials of mineral origin * * * obtained by mining and 
like operations and processed through the stages specified and at the 
facilities designated in an agreement between the Secretary of Commerce 
as being within the emergency preparedness responsibilities of the 
Secretary of the Interior.

This Understanding implements this requirement.
    4. The functions delegated by these authorities to the Secretaries 
of Commerce and the Interior have been redelegated by the Secretary of 
Commerce to the Director, Office of Industrial Resource Administration 
(OIRA), and by the Secretary of the Interior to the Director, Bureau of 
Mines.

                    C. Departmental Responsibilities

    1. Department of the Interior. Schedule A to this Understanding 
contains a listing of mineral commodities and related facilities and 
materials. With respect to the mineral commodities listed in Column 1 of 
Schedule A, the Secretary of the Interior shall have emergency 
preparedness and mobilization responsibilities for the facilities listed 
in Column 2 of the Schedule, the production of materials by these 
facilities, and the distribution of the materials listed in Column 3 of 
the Schedule.
    2. Department of Commerce. With respect to the mineral commodities 
listed in Column 1 of Schedule A, the Secretary of Commerce shall have 
emergency preparedness and mobilization responsibilities for all 
facilities other than those listed in Column 2 of the Schedule, for the 
production of materials by these other facilities, and for distribution 
of all materials not listed in Column 3 of the Schedule.

                       D. Delegation of Authority

    1. Pursuant to the authority of section 602(b) of E.O. 10480, the 
Secretary of Commerce hereby delegates to the Secretary of the Interior 
with respect to the facilities and materials listed in Columns 2 and 3 
of Schedule A, all the functions under the Defense Production Act of 
1950, as amended (DPA), which are delegated or assigned to the Secretary 
of Commerce by or pursuant to the following sections of E.O. 10480:
    (a) Section 201(a), as implemented by section 3(a) of DMO 3 
(relating to exercise of priorities and allocations authority under 
Title I of the DPA);
    (b) Section 301 (relating to development of measures for expansion 
of production of materials necessary for the national defense);
    (c) Section 302 (relating to guarantees of loans or contracts in 
connection with the expediting of production and deliveries or services 
under Government contracts for the procurement of materials or the 
performance of services for the national defense, etc.);
    (d) Section 312 (relating to recommendations for action under 
sections 302 and 303 of the DPA);
    (e) Section 501 (relating to consultation with industry and making 
recommendations to the Director of the Federal Emergency Management 
Agency respecting voluntary agreements under section 708 of the DPA); 
and
    (f) Section 602 (relating to the exercise of various general 
administrative functions under Title VII of the DPA).

[[Page 110]]

    2. This delegation shall be effective only with respect to the 
facilities and materials listed in Columms 2 and 3 of Schedule A.

                            E. Effective Date

    This Memorandum of Understanding and Delegation of Authority 
supersedes the Agreement between the Secretary of the Interior and the 
Secretary of Commerce and signed by them on June 21, 1962, and the 
Delegation of Authority from the Secretary of Commerce to the Secretary 
of the Interior published in 32 FR 2462 on February 4, 1967; and shall 
take effect August 29, 1984.

Department of the Interior
Robert C. Horton,
Director, Bureau of Mines

    Date: June 21, 1984.

Department of Commerce
John A. Richards,
Director, Office of Industrial Resource Administration

    Date: June 20, 1984.

  Schedule A--Mineral Commodities and Related Facilities and Materials  
                                                                        
               1                           2                    3       
Commodity                       Facilities............  Materials       
                                                                        
------------------------------------------------------------------------
Abrasives:                                                              
  Alumina:                                                              
    Fused.....................  Processing plants.....  Ores.           
    Zirconia..................      Do................      Do.         
  Corundum....................  Mines; crushing,            Do.         
                                 sizing, washing,                       
                                 grading and                            
                                 concentrating plants.                  
  Diamond:                                                              
    Industrial................  Mines; concentrating        Do.         
                                 plants.                                
    Synthetic.................  Processing plants.....  Carbon.         
  Emery.......................  Mines; beneficiation    Ores.           
                                 plants.                                
  Garnet......................      Do................      Do.         
  Grinding pebbles............      Do................      Do.         
  Grinding stones.............  Quarries; cutting       Crude stone.    
                                 plants.                                
  Silicon carbide.............  Processing plants.....  Ores.           
  Tripoli and rottenstone.....  Mines; crushing,        Crude tripoli,  
                                 grinding, and grading   amorphous      
                                 plants.                 silica,        
                                                         rottenstone.   
Aluminum......................  Bauxite mines; drying   Crude, dried and
                                 and calcining plants;   calcined       
                                 alumina plants;         bauxite,       
                                 reduction plants;       alumina,       
                                 secondary smelters;     aluminum-base  
                                 processing plants.      scrap.         
Antimony......................  Mines; concentrating    Ores,           
                                 plants; primary         concentrates,  
                                 smelters; refineries;   residues,      
                                 leaching plants.        scrap.         
Arsenic.......................  Mines; concentrating        Do.         
                                 plants; smelters;                      
                                 refineries.                            
Asbestos......................  Mines; separation and   Ores.           
                                 classification plants.                 
Barium........................  Mines; beneficiating,   Ores,           
                                 grinding and grading    concentrates.  
                                 plants.                                
Beryllium.....................  Mines; concentrating        Do.         
                                 and grinding plants;                   
                                 refineries.                            
Bismuth.......................  Mines; concentrating    Ores,           
                                 plants; smelters;       concentrates,  
                                 refineries.             base bullion,  
                                                         residues.      
Boron.........................  Mines; wells;           Ores, brines.   
                                 refineries.                            
Bromine.......................  Plants recovering       Bitterns,       
                                 bromine.                brines.        
Brucite.......................  Mines; magnesium        Ores.           
                                 compound recovery and                  
                                 burning plants.                        
Cadmium.......................  Concentrating plants;   Ores,           
                                 smelters; refineries.   concentrates,  
                                                         residues.      
Calcium:                                                                
  Compounds...................  Brines and synthetic    Brines.         
                                 chemical processing                    
                                 plants.                                
  Metal.......................  Processing plants.....  Crude materials.
Cement........................  Blending, sintering,    Limestone, clay,
                                 and grinding plants.    sand, gypsum,  
                                                         iron-containing
                                                         materials.     
Cesium........................  Mines; concentrating    Ores,           
                                 plants; extraction      concentrates,  
                                 plants.                 residues,      
                                                         solutions.     
Chromium......................  Mines; processing       Ores,           
                                 plants.                 concentrates,  
                                                         additives.     
Clays:                                                                  
  Kaolin......................  Mines; drying,          Ores.           
                                 grinding, calcining                    
                                 and concentrating                      
                                 plants.                                
  Ball clay...................  Mines; drying,              Do.         
                                 calcining, shredding                   
                                 and grinding plants.                   
  Bentonite...................  Mines; drying,              Do.         
                                 activating, grinding,                  
                                 concentrating and                      
                                 sizing plants.                         
  Fuller's earth..............  Mines; drying,              Do.         
                                 calcining,                             
                                 activating, grinding                   
                                 and screening plants.                  
  Fire clay...................  Mines; drying,              Do.         
                                 calcining,                             
                                 concentrating and                      
                                 grinding plants.                       
  Common clay and shales......  Mines; beneficiation    Crude common    
                                 plants; expanding       clay, shale.   
                                 plants.                                
Cobalt........................  Mines; concentrating    Ores,           
                                 plants; leaching        concentrates,  
                                 plants; refineries.     matte,         
                                                         slurries, in-  
                                                         process oxides,
                                                         smelter anodes.
Columbium.....................  Mines; dredges;         Ores, slags,    
                                 processing plants.      additives.     
Copper........................  Mines; concentrating    Ores, scrap,    
                                 plants; leaching        concentrates,  
                                 plants;                 precipitates,  
                                 electrowinning          matte, speiss, 
                                 plants; smelters;       blister,       
                                 refineries.             smelter anodes.

[[Page 111]]

                                                                        
113Cryolite...................  Mines; concentrating    Ores,           
                                 and grading plants.     concentrates.  
Diatomite.....................  Mines; beneficiation    Crude materials.
                                 plants.                                
Dolomite......................  Mines; compounds        Ores.           
                                 recovery and burning                   
                                 plants.                                
Feldspar......................  Mines; grinding,            Do.         
                                 concentrating and                      
                                 grading plants.                        
Ferroalloys...................  Plants; furnaces......  Ores,           
                                                         concentrates,  
                                                         metallic       
                                                         additives.     
Fluorspar, natural and          Mines; processing       Ores,           
 synthetic.                      plants.                 concentrates,  
                                                         hydrofluosilici
                                                         c acid.        
Gallium.......................  Refineries; processing  Concentrates,   
                                 plants.                 residues.      
Gem stones....................  Mines; concentrating    Ores.           
                                 plants.                                
Germanium.....................  Refineries............  Concentrates,   
                                                         residues.      
Gold..........................  Mines; concentrating    Ores,           
                                 plants; leaching and    concentrates,  
                                 precipitation plants;   intermediate   
                                 smelters; refineries.   smelter        
                                                         products,      
                                                         scrap.         
Graphite, natural and           Mines; beneficiating    Ores, carbon.   
 synthetic.                      and processing plants.                 
Greensand.....................  Mines; concentrating    Ores.           
                                 plants.                                
Gypsum........................  Mines; crushing and     Crude gypsum.   
                                 calcining plants.                      
Hafnium.......................  Mines; concentrating    Ores.           
                                 plants; reduction                      
                                 plants.                                
Helium........................  Processing plants.....  Helium-rich     
                                                         natural gas.   
Ilmenite......................  Mines; concentrating    Ores,           
                                 plants; processing      concentrates.  
                                 plants; grinding                       
                                 plants.                                
Indium........................  Refineries; leaching    Concentrates,   
                                 plants.                 fume, dusts,   
                                                         residues,      
                                                         slags.         
Iodine........................  Mines; concentrating    Ores, brines.   
                                 plants; wells.                         
Iron..........................  Mines; concentrating    Ores,           
                                 plants; agglomerating   concentrates,  
                                 plants; prereduction    direct-reduced 
                                 plants; blast           materials,     
                                 furnaces; crude         scrap, pig     
                                 steelmaking             iron,          
                                 facilities.             additives.     
Iron oxide pigments, natural    Mines; beneficiating    Ores, additives.
 and synthetic.                  and processing plants.                 
Kyanite, andalusite,            Mines; concentrating        Do.         
 sillimanite, and dumortierite.  and calcining plants.                  
Lead..........................  Mines; concentrating    Ores,           
                                 plants; smelters;       concentrates,  
                                 refineries; leaching    base bullion,  
                                 plants.                 residues,      
                                                         scrap.         
Limestone (lime) and marl.....  Mines; quarries;        Crushed         
                                 crushing and grinding   limestone,     
                                 plants; kilns and       marl.          
                                 lime plants.                           
Lithium.......................  Mines; concentrating    Ores, brines.   
                                 plants; brine-                         
                                 processing plants.                     
Magnesium.....................  Mines; processing           Do.         
                                 plants.                                
Manganese.....................  Mines; concentrating    Ores,           
                                 plants; agglomerating   concentrates,  
                                 plants; leaching        agglomerates.  
                                 plants.                                
Mercury.......................  Mines; concentrating    Ores,           
                                 plants; leaching        concentrates,  
                                 plants; electrolytic    scrap.         
                                 plants; retorts and                    
                                 furnaces.                              
Mica..........................  Mines; beneficiation    Crude mica.     
                                 plants.                                
Molybdenum....................  Mines; concentrating    Ores,           
                                 plants; processing      concentrates.  
                                 plants.                                
Nickel........................  Mines; concentrating    Ores,           
                                 plants; leaching        concentrates,  
                                 plants; smelters;       matte,         
                                 refineries.             slurries, in-  
                                                         process oxides,
                                                         smelter anodes.
Nitrogen (fixed)..............  Processing plants.....  ................
Olivine.......................  Mines; concentrating    Ores,           
                                 plants.                 concentrates.  
Perlite.......................  Mines; grinding and     Crude perlite.  
                                 screening plants;                      
                                 expanding plants.                      
Phosphate rock................  Mines; beneficiation    Ores,           
                                 plants.                 concentrates.  
Platinum-group metals.........  Mines; concentrating    Ores,           
                                 plants; refineries.     concentrates,  
                                                         residues.      
Potash........................  Mines; concentrating    Ores,           
                                 plants; processing      concentrates,  
                                 plants; refineries.     brines.        
Pumice........................  Mines; crushing,        Ores.           
                                 drying, screening and                  
                                 grading plants.                        
Quartz crystal................  Mines; grading plants.      Do.         
Rare-earth metals.............  Mines; beneficiating    Ores,           
                                 and processing plants.  concentrates.  
Refractories..................  Processing plants.....  Ores.           
Rhenium.......................  Refineries; processing  Ores,           
                                 plants.                 concentrates.  
Rubidium......................  Mines; concentrating    Ores,           
                                 plants; extraction      concentrates,  
                                 plants.                 residues.      
Rutile........................  Mines; concentrating    Ores,           
                                 plants.                 concentrates.  
Salt..........................  Mines; salt wells;      Crude materials.
                                 processing plants.                     
Sand and gravel...............  Pits; washing and       Crude sand and  
                                 grading plants.         gravel.        
Selenium......................  Refineries............  Residues,       
                                                         slimes, scrap. 
Silicon.......................  Furnaces; metal plants  Metallic        
                                                         additives,     
                                                         silica.        
Silver........................  Mines; concentrating    Ores,           
                                 plants; smelters;       concentrates,  
                                 refineries; leaching    intermediate   
                                 plants.                 smelter        
                                                         products,      
                                                         scrap.         
Slag (iron and steel).........  Slag processing         Furnace wastes. 
                                 facilities.                            
Slate.........................  Quarries; splitting,    Crude slate.    
                                 milling, crushing and                  
                                 grading plants.                        
Sodium compounds..............  Mines; brine wells;     Natural and     
                                 refineries; synthetic   synthetic      
                                 soda ash plants.        minerals,      
                                                         brines.        
Stone:                                                                  
  Crushed.....................  Quarries; crushing and  Broken stone.   
                                 grading plants.                        

[[Page 112]]

                                                                        
  Dimension...................  Quarries; milling and   Block stone.    
                                 grading.                               
Staurolite....................  Mines; concentrating    Ores.           
                                 plants.                                
Strontium.....................      Do................      Do.         
Sulfur........................  Mines; wells;           Ores, gases.    
                                 processing plants.                     
Talc, soapstone and             Mines; crushing,        Ores.           
 pyrophylite.                    grinding, screening                    
                                 and concentrating                      
                                 plants.                                
Tantalum......................  Mines; dredges;         Ores,           
                                 concentrating plants;   concentrates,  
                                 processing plants.      slags, scrap,  
                                                         residues.      
Tellurium.....................  Refineries............  Residues,       
                                                         slimes.        
Thallium......................      Do................  Concentrates,   
                                                         residues.      
Tin...........................  Mines; concentrating    Ores,           
                                 plants; smelters;       concentrates,  
                                 refineries;             residues,      
                                 processing plants.      scrap.         
Titanium......................  Mines; concentrating        Do.         
                                 plants; processing                     
                                 plants.                                
Thorium.......................  Non-energy processing   Ores and        
                                 plants.                 compounds.     
Tungsten, metal and compounds.  Mines; concentrating    Ores,           
                                 plants; reduction       concentrates,  
                                 plants; processing      brines, scrap. 
                                 plants.                                
Vanadium......................  Mines; concentrating    Ores,           
                                 plants; leaching        concentrates,  
                                 plants; reduction       residues,      
                                 plants.                 slags, metallic
                                                         additives.     
Vermiculite...................  Mines; beneficiating    Crude           
                                 plants; processing      vermiculite.   
                                 plants.                                
Wollastonite..................  Mines; concentrating    Ores.           
                                 plants.                                
Zeolites......................  Mines; processing           Do.         
                                 plants.                                
Zinc..........................  Mines; concentrating    Ores,           
                                 plants; roasting        concentrates,  
                                 plants; smelters;       calcines,      
                                 electrolytic plants.    scrap, fume,   
                                                         residues.      
Zirconium.....................  Mines; concentrating    Ores, scrap.    
                                 and reduction plants.                  


[[Page 113]]

 Appendix III to Part 700--Form ITA-999; Request for Special Priorities 
                               Assistance
[GRAPHIC] [TIFF OMITTED] TC31SE91.000


[[Page 114]]


[GRAPHIC] [TIFF OMITTED] TC31SE91.001


[[Page 115]]


[GRAPHIC] [TIFF OMITTED] TC31SE91.002


[[Page 116]]


[GRAPHIC] [TIFF OMITTED] TC31SE91.003


[[Page 117]]



 Appendix IV to Part 700--Memorandum of Understanding on Priorities and 
  Allocations Support Between the U.S. Department of Commerce and the 
               Canadian Department of Supply and Services

                               A. Purpose

    Since 1950, the United States and Canada have been assisting each 
other on priorities and allocations for programs important to the 
defense of both nations. Details on the implementation of that 
assistance were spelled out in the U.S. Defense Priorities System 
Regulation No. 2 (DPS Reg. 2), Operations of the Priorities and 
Allocations System between Canada and the United States (15 CFR part 
351). The Defense Priorities and Allocations System (DPAS) regulation 
(15 CFR part 700) supersedes the Defense Materials System and Defense 
Priorities System regulations (15 CFR parts 330 through 351), including 
DPS Reg. 2. While the revised regulation addresses the procedures for 
obtaining priorities and allocations support from the United States and 
Canada, it does not fully detail the working relationship between the 
United States and Canada. Accordingly, the following Memorandum of 
Understanding is set forth between the U.S. Department of Commerce and 
the Canadian Department of Supply and Services.

                               B. General

    1. The Office of Industrial Resource Administration, U.S. Department 
of Commerce (DOC), is the United States point of contact for the 
Canadian government with respect to priorities and allocations.
    2. The Supply Information and Data Management Branch, Canadian 
Department of Supply and Services (DSS), is the Canadian point of 
contact for the U.S. government with respect to priorities and 
allocations.

                      C. Priority Rating Authority

    1. DOC will authorize the DSS to use priority ratings, including 
those for the procurement of controlled materials, in the United States 
in support of the following programs authorized by the Federal Emergency 
Management Agency:

D1--Canadian Military Programs
D2--Canadian Production and Construction
D3--Canadian Atomic Energy Program

    2. DOC must receive requests for priority rating authority, by 
program, at least ninety days in advance of the calendar quarter in 
which the authorization is required. Requests with respect to controlled 
materials requirements must be received at least 240 days in advance of 
the calendar quarter in which authorization is required.

                             D. DX Authority

    DSS may authorize the use of the ``DX'' rating symbol for 
procurements in the United States which are in support of U.S. ``DX'' 
rated programs.

        E. Items Which Will Not Receive Priority Rating Authority

    Priority ratings may not be used for procurements in the United 
States of (1) civilian items for resale in Military Exchanges or the 
packaging for such items; (2) material purchased from exclusively retail 
establishments; (3) direct procurement of those Federal Supply 
Classification classes, groups, or items specified in Attachment A to 
this Understanding, unless those items are to be used as production 
material for an authorized program; or (4) procurement of items to be 
used primarily for administrative purposes, such as for personnel or 
financial management.

                    F. Special Priorities Assistance

    1. DOC will provide special priorities assistance as needed to 
Canadian procurements in the United States which are in support of D1, 
D2, and D3 programs when requests for such assistance are sponsored by 
DSS.
    2. DSS will provide assistance to United States procurements in 
Canada which are in support of authorized programs when requests for 
such assistance are sponsored by DOC.

                          G. Forms and Reports

    1. Canadian requests for special priorities assistance from the 
United States will be submitted to DOC on Form ITA-999, ``Request for 
Special Priorities Assistance''.
    2. Requests for priority rating authority will be submitted to DOC 
on Form DSS-1451-1, ``Application for U.S. Priority Rating Covering 
Importation of Quarterly Requirements of Materials from the United 
States'', on Form DSS-1451-2, ``Application for U.S. Priority Rating 
Covering Specific Materials'', or other forms as may be established by 
DSS.
    3. DSS will report monthly on the number of rating authorizations 
and their dollar value against DOC rating authorizations during the 
previous month.
    4. DSS will report, two months following the close of each calendar 
quarter, the number and quantity of controlled materials allotments 
issued against DOC authorizations for each program during that quarter.
    5. United States requests for assistance from Canada will be 
submitted to DSS by letter.

[[Page 118]]

                              H. Compliance

    1. DSS will ensure that Canadian Government personnel and Canadian 
defense contractors are in compliance with the provisions of the DPAS 
when placing rated orders in the United States, including those for 
controlled materials.
    2. DOC will ensure that U.S. Government personnel and U.S. 
contractors are in compliance with the provisions of the DPAS when 
placing rated orders in Canada, including controlled materials.
    3. The DSS will inform DOC of any alleged violations of the DPAS of 
which it may become aware.

                               I. Training

    1. The DSS will develop and implement training programs on the DPAS 
for appropriate Canadian Government procurement and contract 
administration personnel and contractor personnel.
    2. DOC will develop and implement training programs on the DPAS for 
appropriate U.S. Government procurement and contract administration 
personnel and contractor personnel.
    3. DSS and DOC training programs shall be coordinated to ensure the 
conduct of a comprehensive program and to minimize duplication.

                            J. Effective Date

    This Memorandum of Understanding shall take effect August 29, 1984.

Canadian Department of Supply and Services

Peter Smith,
Assistant Deputy Minister, Operations

    Date: June 26, 1984.

U.S. Department of Commerce

Walter J. Olson,
Deputy Assistant Secretary, Export Administration

    Date: June 21, 1984.

 Attachment A--Federal Supply Classification Classes, Groups, and Items 
                    Not Eligible For Priority Ratings

                                  Group

35  Services and trade equipment--except:
    3510  Laundry and dry cleaning equipment
    3520  Shoe repairing equipment
    3530  Industrial sewing machines and mobile textile repair shoes
    3540  Wrapping and packaging machinery
71*  Furniture
---------------------------------------------------------------------------

    *DOC will consider requests for special priority rating 
authorization in the procurement of these items.
---------------------------------------------------------------------------

72*  Household and commercial furnishings and appliances--except:
    7240  Household and commercial utility containers
73*  Food preparation and serving equipment--except:
    7310  Food cooking, baking and serving equipment
    7320  Kitchen equipment and appliances
    7360  Sets, kits, and outfits: food preparation and serving
74  Office machines, visible record equipment, and data processing 
          equipment**
---------------------------------------------------------------------------

    **This Group does not include general purpose automatic data 
processing equipment, software, supplies and support equipment (see 
Group 70).
---------------------------------------------------------------------------

75*  Office supplies and devices
77*  Musical instruments, phonographs and home-type radios
78*  Recreational and athletic equipment
79  Cleaning equipment and supplies
85*  Toiletries
87 1  Agricultural supplies
---------------------------------------------------------------------------

    \1\ Only those items subject to DOC authority as delegated by E.O. 
10480.
---------------------------------------------------------------------------

89  Subsistence
91* 1  Fuels, lubricants, oils, and waxes--except:
    9135  Liquid propellant fuels and oxidizers, chemical base
    9150  Oils and greases: cutting, lubricating, and hydraulic
    9160  Miscellaneous waxes, oils and fats
94*  Non-metallic crude materials--except:
    9420  Fibers: vegetable, animal and synthetic
99*  Miscellaneous

                                  Class

7630  Newspapers and periodicals
7660  Sheet and book music
8325  Fur materials
8425  Underwear and nightwear, women's
9610  Ores



PART 701--REPORTING OF OFFSETS AGREEMENTS IN SALES OF WEAPON SYSTEMS OR DEFENSE-RELATED ITEMS TO FOREIGN COUNTRIES OR FOREIGN FIRMS--Table of Contents




Sec.
701.1  Purpose.
701.2  Definitions.
701.3  Applicability and scope.
701.4  Procedures.
701.5  Confidentiality.

    Authority: Title I, sec. 124, Pub. L 102-558, 106 Stat. 4207 (50 
U.S.C App. 2099).

    Source: 59 FR 61796, Dec. 2, 1994, unless otherwise noted.

[[Page 119]]



Sec. 701.1  Purpose.

    The Defense Production Act Amendments of 1992 require the Secretary 
of Commerce to promulgate regulations for U.S. firms entering into 
contracts for the sale of defense articles or defense services to 
foreign countries or foreign firms that are subject to offset agreements 
exceeding $5,000,000 in value to furnish information regarding such 
agreements. The Secretary of Commerce has designated the Bureau of 
Export Administration as the organization responsible for implementing 
this provision. The information provided by U.S. firms will be 
aggregated and used to determine the impact of offset transactions on 
the defense preparedness, industrial competitiveness, employment, and 
trade of the United States. Summary reports will be submitted annually 
to the Congress pursuant Section 309 of the Defense Production Act of 
1950, as amended.



Sec. 701.2  Definitions.

    (a) Offsets--Compensation practices required as a condition of 
purchase in either government-to-government or commercial sales of 
defense articles and/or defense services as defined by the Arms Export 
Control Act and the International Traffic in Arms Regulations.
    (b) Military Export Sales--Exports that are either Foreign Military 
Sales (FMS) or commercial (direct) sales of defense articles and/or 
defense services as defined by the Arms Export Control Act and 
International Traffic in Arms Regulations.
    (c) Prime Contractor--A firm that has a sales contract with a 
foreign entity or with the U.S. Government for military export sales.
    (d) United States--Includes the 50 states, the District of Columbia, 
Puerto Rico, and U.S. territories.
    (e) Offset Agreement--Any offset as defined above that the U.S. firm 
agrees to in order to conclude a military export sales contract. This 
includes all offsets, whether they are ``best effort'' agreements or are 
subject to penalty clauses.
    (f) Offset Transaction--Any activity for which the U.S. firm claims 
credit for full or partial fulfillment of the offset agreement. 
Activities to implement offset agreements may include, but are not 
limited to, coproduction, licensed production, subcontractor production, 
overseas investment, technology transfer countertrade, barter, 
counterpurchase, and buy back.
    (g) Direct Offset--Contractual arrangements that involve defense 
articles and services referenced in the sales agreement for military 
exports.
    (h) Indirect Offset--Contractual arrangements that involve defense 
goods and services unrelated to the exports referenced in the sales 
agreement.



Sec. 701.3  Applicability and scope.

    (a) This rule applies to U.S. firms entering contracts for the sale 
of defense articles or defense services (as defined in the Arms Export 
Control Act and International Traffic in Arms Regulations) to a foreign 
country or foreign firm for which the contract is subject to an offset 
agreement exceeding $5,000,000 in value.
    (b) This rule applies to all offset transactions completed in 
performance of existing offset commitments since January 1, 1993 for 
which offset credit of $250,000 or more has been claimed from the 
foreign representative, and new offset agreements entered into since 
that time.



Sec. 701.4  Procedures.

    (a) To avoid double counting, firms should report only offset 
transactions for which they are directly responsible for reporting to 
the foreign customer (i.e., prime contractors should report for their 
subcontractors if the subcontractors are not a direct party to the 
offset agreement).
    (b) Reports should be delivered to the Offsets Program Manager, U.S. 
Department of Commerce, Office of Strategic Industries and Economic 
Security, Bureau of Export Administration, Room 3878, 14th Street and 
Pennsylvania Avenue, N.W., Washington DC 20230. The first industry 
reports should be submitted to the Bureau of Export Administration not 
later than March 15, 1995 and should cover offset transactions completed 
during the calendar year 1993, as well as information regarding 
unfulfilled offset agreements. After this initial submission, companies 
should provide information once yearly

[[Page 120]]

not later than June 15 covering the preceding calendar year. All 
submissions should include a point of contact (name and telephone 
number) and should be by a company official authorized to provide such 
information.
    (c) Companies may submit this information in computerized 
spreadsheet/database format (e.g., Lotus 1-2-3, Quattro Pro, dbase IV) 
using a 3.5 inch 1.44 megabyte diskette, accompanied by a printed copy.
    (d) Offset Transaction Reporting.
    (1) Reports should include an itemized list of offset transactions 
completed during the reporting period, including the following data 
elements (Estimates are acceptable when actual figures are unavailable; 
estimated figures should be followed by the letter ``E''):
    (i) Name of Country--Country of entity purchasing the weapon system, 
defense item or service subject to offset.
    (ii) Name or Description of Weapon system, Defense Item, or Service 
Subject to Offset.
    (iii) Name of Offset Fulfilling Entity--Entity fulfilling offset 
transaction (including first tier subcontractors).
    (iv) Name of Offset Receiving Entity--Entity receiving benefits from 
offset transaction.
    (v) Offset Credit Value--Dollar value credits claimed by fulfilling 
entity including any intangible factors/multipliers.
    (vi) Actual Offset Value--Dollar value of the offset transaction 
without multipliers/intangible factors.
    (vii) Description of Offset Product/Service--Short description of 
the type of offset (e.g., coproduction, technology transfer, subcontract 
activity, training, purchase, cash payment, etc.).
    (viii) Broad Industry Category--Broad classification of the industry 
in which the offset transaction was fulfilled (e.g., aerospace, 
electronics, chemicals, industrial machinery, textiles, etc.). Firms may 
request a list of the Standard Industry Classification (SIC) codes to 
assist in identifying an appropriate industry category. Forward such 
requests to the Offsets Program Manager, U.S. Department of Commerce, 
Office of Strategic Industries and Economic Security, Bureau of Export 
Administration, Room 3878, 14th Street and Pennsylvania Avenue, N.W., 
Washington, D.C. 20230 or Fax 202-482-5650.
    (ix) Direct or Indirect Offset--Specify whether the offset 
transaction was direct or indirect offset.
    (x) Name of Country in Which Offset was Fulfilled--United States, 
purchasing country, or third country.
    (2) Offset transactions of the same type (same fulfilling entity, 
receiving entity, and offset product/service) completed during the same 
reporting period may be combined.
    (3) Any necessary comments or explanations relating to the above 
information should be footnoted and supplied on separate sheets attached 
to the report.
    (e) Reporting on Offset Agreements Entered Into. (1) In addition to 
the itemized list of offset transactions completed during the year as 
specified above, U.S. firms should provide information regarding new 
offset agreements entered into during the year, including the following 
elements:
    (i) Name of Country--Country of entity purchasing the weapon system, 
defense item, or service subject to offset;
    (ii) Name or Description of Weapon System, Defense Item, or Service 
Subject to Offset;
    (iii) Names/Titles of Signatories to the Offset Agreement;
    (iv) Value of Export Sale Subject to Offset (approximate);
    (v) Total Value of the Offset Agreement;
    (vi) Term of Offset Agreement (months);
    (vii) Description of Performance Measures--(e.g., ``Best Efforts,'' 
Liquidated Damages, (describe)).
    (2) [Reserved]



Sec. 701.5  Confidentiality.

    (a) As provided by Sec. 309(c) of the Defense Production Act of 
1950, as amended, BXA shall not publicly disclose the information it 
receives pursuant to this part, unless the firm furnishing the 
information subsequently specifically authorizes public disclosure.
    (b) Public disclosure must be authorized in writing by an official 
of the

[[Page 121]]

firm competent to make such an authorization.
    (c) Nothing in this provision shall prevent the use of data 
aggregated from information provided pursuant to this part in the 
summary report to the Congress described in Sec. 701.1.



PARTS 702-704 [RESERVED]






PART 705--EFFECT OF IMPORTED ARTICLES ON THE NATIONAL SECURITY--Table of Contents




Sec.
705.1  Definitions.
705.2  Purpose.
705.3  Commencing an investigation.
705.4  Criteria for determining effect of imports on the national 
          security.
705.5  Request or application for an investigation.
705.6  Confidential information.
705.7  Conduct of an investigation.
705.8  Public hearings.
705.9  Emergency action.
705.10  Report of an investigation and recommendation.

    Authority: Sec. 232, Trade Expansion Act of 1962 (19 U.S.C. 1862), 
as amended (Pub. L. 100-418, 102 Stat. 1107), Reorg. Plan No. 3 of 1979 
(44 FR 69273, Dec. 3, 1979); E.O. 12188 of Jan. 2, 1980 (45 FR 989, Jan. 
4, 1980).

    Source: 47 FR 14693, Apr. 6, 1982, unless otherwise noted. 
Redesignated at 54 FR 601, Jan. 9, 1989.



Sec. 705.1  Definitions.

    As used in this part:
    Department means the United States Department of Commerce and 
includes the Secretary of Commerce and the Secretary's designees.
    Secretary means the Secretary of Commerce or the Secretary's 
designees.
    Applicant means the person or entity submitting a request or 
application for an investigation pursuant to this part.



Sec. 705.2  Purpose.

    These regulations set forth the procedures by which the Department 
shall commence and conduct an investigation to determine the effect on 
the national security of the imports of any article. Based on this 
investigation, the Secretary shall make a report and recommendation to 
the President for action or inaction regarding an adjustment of the 
imports of the article.



Sec. 705.3  Commencing an investigation.

    Upon request of the head of any government department or agency, 
upon application of an interested party, or upon motion of the 
Secretary, the Department shall immediately conduct an investigation to 
determine the effect on the national security of the imports of any 
article.



Sec. 705.4  Criteria for determining effect of imports on the national security.

    (a) To determine the effect on the national security of the imports 
of the article under investigation, the Department shall consider the 
quantity of the article in question or other circumstances related to 
its import. With regard for the requirements of national security, the 
Department shall also consider the following:
    (1) Domestic production needed for projected national defense 
requirements;
    (2) The capacity of domestic industries to meet projected national 
defense requirements;
    (3) The existing and anticipated availabilities of human resources, 
products, raw materials, production equipment and facilities, and other 
supplies and services essential to the national defense;
    (4) The growth requirements of domestic industries to meet national 
defense requirements and the supplies and services including the 
investment, exploration and development necessary to assure such growth; 
and
    (5) Any other relevant factors.
    (b) In recognition of the close relation between the strength of our 
national economy and the capacity of the United States to meet national 
security requirements, the Department shall also, with regard for the 
quantity, availability, character and uses of the imported article under 
investigation, consider the following:
    (1) The impact of foreign competition on the economic welfare of any 
domestic industry essential to our national security;
    (2) The displacement of any domestic products causing substantial 
unemployment, decrease in the revenues of

[[Page 122]]

government, loss of investment or specialized skills and productive 
capacity, or other serious effects; and
    (3) Any other relevant factors that are causing or will cause a 
weakening of our national economy.



Sec. 705.5  Request or application for an investigation.

    (a) A request or application for an investigation shall be in 
writing. The original and 12 copies shall be filed with the Director, 
Office of Industrial Resource Administration, Room 3876, U.S. Department 
of Commerce, Washington, DC 20230.
    (b) When a request, application or motion is under investigation, or 
when an investigation has been completed pursuant to Sec. 705.10 of this 
part, any subsequently filed request or application concerning imports 
of the same or related article that does not raise new or different 
issues may be either consolidated with the investigation in progress as 
provided in Sec. 705.7(e) of this part, or rejected. In either event, an 
explanation for taking such action shall be promptly given to the 
applicant. If the request or application is rejected, it will not be 
returned unless requested by the applicant.
    (c) Requests or applications shall describe how the quantity, 
availability, character, and uses of a particular imported article, or 
other circumstances related to its import, affect the national security, 
and shall contain the following information to the fullest extent 
possible:
    (1) Identification of the applicant;
    (2) A precise description of the article;
    (3) Description of the domestic industry affected, including 
pertinent information regarding companies and their plants, locations, 
capacity and current output of the industry;
    (4) Pertinent statistics on imports and domestic production showing 
the quantities and values of the article;
    (5) Nature, sources, and degree of the competition created by 
imports of the article;
    (6) The effect that imports of the article may have upon the 
restoration of domestic production capacity in the event of national 
emergency;
    (7) Employment and special skills involved in the domestic 
production of the article;
    (8) Extent to which the national economy, employment, investment, 
specialized skills, and productive capacity is or will be adversely 
affected;
    (9) Revenues of Federal, State, or local Governments which are or 
may be adversely affected;
    (10) National security supporting uses of the article including data 
on applicable contracts or sub-contracts, both past and current; and
    (11) Any other information or advice relevant and material to the 
subject matter of the investigation.
    (d) Statistical material presented should be, if possible, on a 
calendar-year basis for sufficient periods of time to indicate trends. 
Monthly or quarterly data for the latest complete years should be 
included as well as any other breakdowns which may be pertinent to show 
seasonal or short-term factors.



Sec. 705.6  Confidential information.

    (a) Any information or material which the applicant or any other 
party desires to submit in confidence at any stage of the investigation 
that would disclose national security classified information or business 
confidential information (trade secrets, commercial or financial 
information, or any other information considered senstitive or 
privileged), shall be submitted on separate sheets with the clear legend 
``National Security Classified'' or ``Business Confidential,'' as 
appropriate, marked at the top of each sheet. Any information or 
material submitted that is identified as national security classified 
must be accompanied at the time of filing by a statement indicating the 
degree of classification, the authority for the classification, and the 
identity of the classifying entity. By submitting information or 
material identified as business confidential, the applicant or other 
party represents that the information is exempted from public 
disclosure, either by the Freedom of Information Act (5 U.S.C. 552 et 
seq.) or by some other specific statutory exemption. Any request for 
business confidential treatment must be accompanied at the time of 
filing by a statement justifying non-disclosure

[[Page 123]]

and referring to the specific legal authority claimed.
    (b) The Department may refuse to accept as business confidential any 
information or material it considers not intended to be protected under 
the legal authority claimed by the applicant, or under other applicable 
legal authority. Any such information or material so refused shall be 
promptly returned to the submitter and will not be considered. However, 
such information or material may be resubmitted as non-confidential in 
which case it will be made part of the public record.



Sec. 705.7  Conduct of an investigation.

    (a) If the Department determines that it is appropriate to afford 
interested parties an opportunity to present information and advice 
relevant and material to an investigation, a public notice shall be 
published in the Federal Register soliciting from any interested party 
written comments, opinions, data, information or advice relative to the 
investigation. This material shall be submitted as directed within a 
reasonable time period to be specified in the notice. All material shall 
be submitted with 6 copies. In addition, public hearings may be held 
pursuant to Sec. 705.8 of this part.
    (b) All requests and applications filed and all material submitted 
by interested parties, except information on material that is classified 
or determined to be confidential as provided in Sec. 705.6 of this part, 
will be available for public inspection and copying in the Bureau of 
Export Administration Freedom of Information Records Inspection 
Facility, Room H-4886, U.S. Department of Commerce, Washington, DC 
20230, in accordance with regulations published in part 4 of title 15, 
Code of Federal Regulations.
    (c) Further information may be requested by the Department from 
other sources through the use of questionnaires, correspondence, or 
other appropriate means.
    (d) The Department shall, as part of an investigation, seek 
information and advice from, and consult with, the Secretary of Defense 
and any other appropriate officers of the United States or their 
designees, as shall be determined. Communications received from agencies 
of the U.S. Government or foreign governments will not be made available 
for public inspection. The Department may also seek assistance in the 
conduct of an investigation from other agencies of the United States, as 
shall be necessary.
    (e) Any request or application that is filed while an investigation 
is in progress, concerning imports of the same or related article and 
raising similar issues, may be consolidated with the request, 
application or motion that initiated the investigation.

[47 FR 14693, Apr. 6, 1982. Redesignated at 54 FR 601, Jan. 9, 1989 and 
amended at 54 FR 19355, May 5, 1989]



Sec. 705.8  Public hearings.

    (a) If it is deemed appropriate by the Department, public hearings 
may be held to elicit further information.
    (1) A notice of hearing shall be published in the Federal Register 
describing the date, time, place, the subject matter of each hearing and 
any other information relevant to the conduct of the hearing. The name 
of a person to contact for additional information or to request time to 
speak at the hearing shall also be included. Public hearings may be held 
in more than one location.
    (2) Hearings shall be open to the public unless national security 
classified information will be presented. In that event the presiding 
officer at the hearing shall close the hearing, as necessary, to all 
persons not having appropriate security clearances or not otherwise 
authorized to have access to such information. If it is known in 
sufficient time prior to the hearing that national security classified 
information will be presented the notice of hearing published in the 
Federal Register shall state that national security classified 
information will be presented and that the hearing will be open only to 
those persons having appropriate security clearances or otherwise 
specifically authorized to have access to such information.
    (b) Hearings shall be conducted as follows:
    (1) The Department shall appoint the presiding officer;

[[Page 124]]

    (2) The presiding officer shall determine all procedural matters 
during the hearing;
    (3) Interested parties may appear, either in person or by 
representation, and produce oral or written information relevant and 
material to the subject matter of the investigation;
    (4) Hearings will be fact-finding proceedings without formal 
pleadings or adverse parties. Formal rules of evidence will not apply;
    (5) After a witness has testified, the presiding officer may 
question the witness. Questions submitted to the presiding officer in 
writing by any interested party may, at the discretion of the presiding 
officer, be posed to the witness. No cross examination of any witness by 
a party shall be allowed.
    (6) Each hearing will be stenographically reported. Transcripts of 
the hearing, excluding any national security classified information, may 
be purchased from the Department at actual cost of duplication, and will 
be available for public inspection in the Bureau of Export 
Administration Freedom of Information Records Inspection Facility, Room 
H-4886, U.S. Department of Commerce, Washington, DC 20230.

[47 FR 14693, Apr. 6, 1982. Redesignated at 54 FR 601, Jan. 9, 1989 and 
amended at 54 FR 19355, May 5, 1989]



Sec. 705.9  Emergency action.

    In emergency situations, or when in the judgment of the Department, 
national security interests require it, the Department may vary or 
dispense with any or all of the procedures set forth in Sec. 705.7 of 
this part.



Sec. 705.10  Report of an investigation and recommendation.

    (a) When an investigation conducted pursuant to this part is 
completed, a report of the investigation shall be promptly prepared. The 
report shall be organized in several sections, if necessary. One section 
shall contain all information and material that is not classified or 
confidential as provided in Sec. 705.6 of this part. Another section 
shall contain all national security classified information and material. 
A third section shall contain all business confidential information and 
material.
    (b) The Secretary shall report to the President the findings of the 
investigation and a recommendation for action or inaction within one 
year after receiving a request or application or otherwise beginning an 
investigation pursuant to this part.
    (c) The Executive Summary of the report, excluding the sections 
containing national security classified and business confidential 
information and material, shall be published in the Federal Register 
upon the disposition of each request, application, or motion made 
pursuant to this part. Copies of the full report will then be available 
for public inspection and copying in the Bureau of Export Administration 
Freedom of Information Records Inspection Facility, Room H-4886, U.S. 
Department of Commerce, Washington, DC 20230.

[47 FR 14693, Apr. 6, 1982. Redesignated at 54 FR 601, Jan. 9, 1989 and 
amended at 54 FR 19355, May 5, 1989]



PARTS 706-709 [RESERVED]




[[Page 125]]



                         SUBCHAPTER B [RESERVED]





PARTS 710-729 [RESERVED]






             SUBCHAPTER C--EXPORT ADMINISTRATION REGULATIONS





PART 730--GENERAL INFORMATION--Table of Contents




Sec.
730.1  What these regulations cover.
730.2  Statutory authority.
730.3  Dual use exports.
730.4  Other control agencies and departments.
730.5  Coverage of more than exports.
730.6  Control purposes.
730.7  License requirements and exceptions.
730.8  How to proceed and where to get help.
730.9  How the Bureau of Export Administration is organized.
730.10  Advisory information.

Supplement No. 1 to Part 730--Information Collection Requirements Under 
          the Paperwork Reduction Act: OMB Control Numbers
Supplement No. 2 to Part 730--Technical Advisory Committees
Supplement No. 3 to Part 730--Other U.S. Government Departments and 
          Agencies With Export Control Responsibilities

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 10 
U.S.C. 7420; 10 U.S.C. 7430(e); 18 U.S.C. 2510 et seq.; 22 U.S.C. 287c; 
22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; Sec. 201, Pub. L. 104-58, 109 
Stat. 557 (30 U.S.C. 185(s)); 30 U.S.C. 185(u); 42 U.S.C. 2139a; 42 
U.S.C. 6212; 43 U.S.C. 1354; 46 U.S.C. app. 466c; 50 U.S.C. app. 5; E.O. 
12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; E.O. 11912, 41 FR 15825, 
3 CFR, 1976 Comp., p. 114; E.O. 12002, 42 FR 35623, 3 CFR, 1977 Comp., 
p.133; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12214, 
45 FR 29783, 3 CFR, 1980 Comp., p. 256; E.O. 12851, 58 FR 33181, 3 CFR, 
1993 Comp., p. 608; E.O. 12867, 58 FR 51747, 3 CFR, 1993 Comp., p. 649; 
E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 12924, 59 FR 
43437, 3 CFR, 1994 Comp., p. 917; E.O. 12938, 59 FR 59099, 3 CFR, 1994 
Comp., p. 950; Executive Order 13026 (November 15, 1996, 61 FR 58767); 
Notice of August 15, 1995 (60 FR 42767, August 17, 1995); and Notice of 
August 14, 1996 (61 FR 42527); E.O. 12981 (60 FR 62981).

    Source: 61 FR 12734, Mar. 25, 1996, unless otherwise noted.



Sec. 730.1  What these regulations cover.

    In this part, references to the Export Administration Regulations 
(EAR) are references to 15 CFR chapter VII, subchapter C. The EAR are 
issued by the United States Department of Commerce, Bureau of Export 
Administration (BXA) under laws relating to the control of certain 
exports, reexports, and activities. In addition, the EAR implement 
antiboycott law provisions requiring regulations to prohibit specified 
conduct by United States persons that has the effect of furthering or 
supporting boycotts fostered or imposed by a country against a country 
friendly to United States. Supplement No. 1 to part 730 lists the 
control numbers assigned to information collection requirements under 
the EAR by the Office of Management and Budget pursuant to the Paperwork 
Reduction Act of 1995.



Sec. 730.2  Statutory authority.

    The EAR have been designed primarily to implement the Export 
Administration Act of 1979, as amended, 50 U.S.C. app. 2401-2420 (EAA). 
There are numerous other legal authorities underlying the EAR. These are 
listed in the Federal Register documents promulgating the EAR and at the 
beginning of each part of the EAR in the Code of Federal Regulations 
(CFR). From time to time, the President has exercised authority under 
the International Emergency Economic Powers Act with respect to the EAR 
(50 U.S.C. 1701-1706 (IEEPA)). The EAA is not permanent legislation, and 
when it has lapsed, Presidential executive orders under IEEPA have 
directed and authorized the continuation in force of the EAR.



Sec. 730.3  Dual use exports.

    The convenient term dual use is sometimes used to distinguish the

[[Page 126]]

types of items covered by the EAR from those that are covered by the 
regulations of certain other U.S. government departments and agencies 
with export licensing responsibilities. In general, the term dual use 
serves to distinguish EAR-controlled items that can be used both in 
military and other strategic uses (e.g., nuclear) and commercial 
applications. In general, the term dual use serves to distinguish EAR-
controlled items that can be used both in military and other strategic 
uses and in civil applications from those that are weapons and military 
related use or design and subject to the controls of the Department of 
State or subject to the nuclear related controls of the Department of 
Energy or the Nuclear Regulatory Commission. Note, however, that 
although the short-hand term dual use may be employed to refer to the 
entire scope of the EAR, the EAR also apply to some items that have 
solely civil uses.



Sec. 730.4  Other control agencies and departments.

    In addition to the departments and agencies mentioned in Sec. 730.3 
of this part, other departments and agencies have jurisdiction over 
certain narrower classes of exports and reexports. These include the 
Department of Treasury's Office of Foreign Assets Control (OFAC), which 
administers controls against certain countries that are the object of 
sanctions affecting not only exports and reexports, but also imports and 
financial dealings. For your convenience, Supplement No. 3 to part 730 
identifies other departments and agencies with regulatory jurisdiction 
over certain types of exports and reexports. This is not a comprehensive 
list, and the brief descriptions are only generally indicative of the 
types of controls administered and/or enforced by each agency.



Sec. 730.5  Coverage of more than exports.

    The core of the export control provisions of the EAR concerns 
exports from the United States. You will find, however, that some 
provisions give broad meaning to the term ``export'', apply to 
transactions outside of the United States, or apply to activities other 
than exports.
    (a) Reexports. Commodities, software, and technology that have been 
exported from the United States are generally subject to the EAR with 
respect to reexport. Many such reexports, however, may go to many 
destinations without a license or will qualify for an exception from 
licensing requirements.
    (b) Foreign products. In some cases, authorization to export 
technology from the United States will be subject to assurances that 
items produced abroad that are the direct product of that technology 
will not be exported to certain destinations without authorization from 
BXA.
    (c) Scope of ``exports''. Certain actions that you might not regard 
as an ``export'' in other contexts do constitute an export subject to 
the EAR. The release of technology to a foreign national in the United 
States through such means as demonstration or oral briefing is deemed an 
export. Other examples of exports under the EAR include the return of 
foreign equipment to its country of origin after repair in the United 
States, shipments from a U.S. foreign trade zone, and the electronic 
transmission of non-public data that will be received abroad.
    (d) U.S. person activities. To counter the proliferation of weapons 
of mass destruction, the EAR restrict the involvement of ``United States 
persons'' anywhere in the world in exports of foreign-origin items, or 
in providing services or support, that may contribute to such 
proliferation. The EAR also restrict technical assistance by U.S. 
persons with respect to encryption commodities or software.

[61 FR 12734, Mar. 25, 1996, as amended at 61 FR 68577, Dec. 30, 1996]



Sec. 730.6  Control purposes.

    The export control provisions of the EAR are intended to serve the 
national security, foreign policy, nonproliferation, and short supply 
interests of the United States and, in some cases, to carry out its 
international obligations. Some controls are designed to restrict access 
to dual use items by countries or persons that might apply such items to 
uses inimical to U.S. interests. These include controls designed to stem 
the proliferation of weapons of mass destruction and controls designed

[[Page 127]]

to limit the military and terrorism support capability of certain 
countries. The effectiveness of many of the controls under the EAR is 
enhanced by their being maintained as part of multilateral control 
arrangements. Multilateral export control cooperation is sought through 
arrangements such as the Nuclear Suppliers Group, the Australia Group, 
and the Missile Technology Control Regime. The EAR also include some 
export controls to protect the United States from the adverse impact of 
the unrestricted export of commodities in short supply.



Sec. 730.7  License requirements and exceptions.

    A relatively small percentage of exports and reexports subject to 
the EAR require an application to BXA for a license. Many items are not 
on the Commerce Control List (CCL) (Supplement No. 1 to Sec. 774.1 of 
the EAR), or, if on the CCL, require a license to only a limited number 
of countries. Other transactions may be covered by one or more of the 
License Exceptions in the EAR. In such cases no application need be made 
to BXA.



Sec. 730.8  How to proceed and where to get help.

    (a) How the EAR are organized. The Export Administration Regulations 
(EAR) are structured in a logical manner. In dealing with the EAR you 
may find it helpful to be aware of the overall organization of these 
regulations. In order to determine what the rules are and what you need 
to do, review the titles and the introductory sections of the parts of 
the EAR.
    (1) How do you go about determining your obligations under the EAR? 
Part 732 of the EAR provides steps you may follow to determine your 
obligations under the EAR. You will find guidance to enable you to tell 
whether or not your transaction is subject to the EAR and, if it is, 
whether it qualifies for a License Exception or must be authorized 
through issuance of a license.
    (2) Are your items or activities subject to the EAR at all? Part 734 
of the EAR defines the items and activities that are subject to the EAR. 
Note that the definition of ``items subject to the EAR'' includes, but 
is not limited to, items listed on the Commerce Control List in part 774 
of the EAR.
    (3) If subject to the EAR, what do the EAR require? Part 736 of the 
EAR lists all the prohibitions that are contained in the EAR. Note that 
certain prohibitions (General Prohibitions One through Three) apply to 
items as indicated on the CCL, and others (General Prohibitions Four 
through Ten) prohibit certain activities and apply to all items subject 
to the EAR unless otherwise indicated.
    (4) Do you need a license for your item or activity? What policies 
will BXA apply if you do need to submit license application? The EAR 
have four principal ways of describing license requirements:
    (i) The EAR may require a license to a country if your item is 
listed on the CCL and the Country Chart in part 738 of the EAR tells 
that a license is required to that country. Virtually all Export Control 
Classification Numbers (ECCN) on the CCL are covered by the Country 
Chart in part 738 of the EAR. That part identifies the limited number of 
entries that are not included on the Chart. These ECCNs will state the 
specific countries that require a license or refer you to a self-
contained section, i.e., Short Supply in part 754 of the EAR, or 
Embargoes in part 746 of the EAR. If a license is required, you should 
consult part 740 of the EAR which describes the License Exception that 
may be available for items on the CCL. Part 742 of the EAR describes the 
licensing policies that BXA will apply in reviewing an application you 
file. Note that part 754 of the EAR on short supply controls and part 
746 on embargoes are self-contained parts that include the available 
exceptions and licensing policy.
    (ii) A license requirement may be based on the end-use or end-user 
in a transaction, primarily for proliferation reasons. Part 744 of the 
EAR describes such requirements and relevant licensing policies and 
includes both restrictions on items and restrictions on the activities 
of U.S. persons.
    (iii) A license is required for virtually all exports to embargoed 
destinations, such as Cuba. Part 746 of the EAR describes all the 
licensing requirements, license review policies and License Exceptions 
that apply to such

[[Page 128]]

destinations. If your transaction involves one of these countries, you 
should first look at this part. This part also describes controls that 
may be maintained under the EAR to implement UN sanctions.
    (iv) In addition, under Secs. 736.2(b)(9) and (10) of the EAR, you 
may not engage in a transaction knowing a violation is about to occur or 
violate any orders, terms, and conditions under the EAR. Part 764 of the 
EAR describes prohibited transactions with a person denied export 
privileges or activity that violates the terms or conditions of a denial 
order.
    (5) How do you file a license application and what will happen to 
the application once you do file it? What if you need authorization for 
multiple transactions? Parts 748 and 750 of the EAR provide information 
on license submission and processing. Part 752 of the EAR provides for a 
Special Comprehensive License that authorizes multiple transactions. If 
your application is denied, part 756 of the EAR provides rules for 
filing appeals.
    (6) How do you clear shipments with the U.S. Customs Service? Part 
758 of the EAR describes the requirements for clearance of exports.
    (7) Where do you find the rules on restrictive trade practices and 
boycotts? Part 760 of the EAR deals with restrictive trade practices and 
boycotts.
    (8) Where are the rules on recordkeeping and enforcement? Part 762 
of the EAR sets out your recordkeeping requirements, and parts 764 and 
766 of the EAR deal with violations and enforcement proceedings.
    (9) What is the effect of foreign availability? Part 768 of the EAR 
provides rules for determining foreign availability of items subject to 
controls.
    (10) Do the EAR provide definitions and interpretations? Part 770 of 
the EAR contains interpretations and part 772 of the EAR lists 
definitions used.
    (b) Why the EAR are so detailed. Some people will find the great 
length of the EAR and their extensive use of technical terms 
intimidating. BXA believes, however, that such detail and precision can 
and does serve the interests of the public. The detailed listing of 
technical parameters in the CCL establishes precise, objective criteria. 
This should, in most cases, enable you to ascertain the appropriate 
control status. Broader, more subjective criteria would leave exporters 
and reexporters more dependent upon interpretations and rulings by BXA 
officials. Moreover, much of the detail in the CCL is derived from 
multilaterally adopted lists, and the specificity serves to enhance the 
uniformity and effectiveness of international control practices and to 
promote a ``level playing field''. The detailed presentation of such 
elements as licensing and export clearance procedures enables you to 
find in one place what you need to know to comply with pertinent 
requirements. Of special importance is the detailed listing of License 
Exception criteria, as these will enable you to determine quickly, and 
with confidence, that you may proceed with a transaction without delay. 
Finally, some of the detail results from the need to draft the EAR with 
care in order to avoid loop-holes and to permit effective enforcement.
    (c) Where to get help. Throughout the EAR you will find information 
on offices you can contact for various purposes and types of 
information. General information including; assistance in understanding 
the EAR, information on how to obtain forms, electronic services, 
publications, and information on training programs offered by BXA, is 
available from the Office of Exporter Services at the following 
locations:

Exporter Counselling Division, U.S. Department of Commerce, 14th and 
Pennsylvania Avenue, N.W., Room H1099D, Washington, D.C., 20230, 
Telephone number: (202) 482-4811, Facsimile number: (202) 482-3617
    and
Western Regional Office, U.S. Department of Commerce, 3300 Irvine 
Avenue, Suite 345, Newport Beach, California 92660, Telephone number: 
(714) 660-0144, Facsimile number: (714) 660-9347
    and
Santa Clara Branch Office, U.S. Department of Commerce, 5201 Great 
America Parkway, Suite 333, Santa Clara, California 95054, Telephone 
number: (408) 748-7450, Facsimile number: (408) 748-7470.



Sec. 730.9  How the Bureau of Export Administration is organized.

    Functionally, the Bureau of Export Administration is divided into 
two branches, Export Administration and

[[Page 129]]

Export Enforcement. Also, BXA manages a number of Technical Advisory 
Committees consisting of industry and government representatives which 
advise and assist BXA and other agencies with respect to actions 
designed to implement the EAR.
    (a) Export Administration. Export Administration implements and 
administers the export controls reflected in the EAR. Export 
Administration consists of five offices located in Washington D.C. and 
two field offices in California under the supervision of the Assistant 
Secretary for Export Administration:
    (1) The Office of Nuclear and Missile Technology Controls is 
responsible for policy and technical issues and license applications 
related to the Nuclear Suppliers Group and the Missile Technology 
Control Regime. This office has responsibility for items associated with 
those regimes, and missile and nuclear related exports and reexports 
subject to the Enhanced Proliferation Control Initiative.
    (2) The Office Chemical/Biological Controls and Treaty Compliance is 
responsible for implementing multilateral export controls under the 
Australia Group. This office has licensing responsibility for items 
associated with the Australia Group and related exports and reexports 
subject to the Enhanced Proliferation Control Initiative.
    (3) The Office of Strategic Trade and Foreign Policy Controls is 
responsible for implementing multilateral export controls dealing with 
conventional arms and related dual use items. This office is also 
responsible for computer export control policies, and implements U.S. 
foreign policy controls (e.g., crime control, anti-terrorism, and 
regional stability). It also has licensing responsibility for items 
controlled for national security and foreign policy reasons.
    (4) The Office of Exporter Services is responsible for the Special 
Comprehensive License, processing and routing all license applications, 
and preparing responses to requests for advisory opinions and commodity 
classifications. This office also provides counselling to exporters and 
reexporters, conducts educational seminars for the business community, 
maintains the Export Administration Regulations, and coordinates the 
operations of two field offices listed in Sec. 730.8(c) of this part.
    (5) The Office of Strategic Industries and Economic Security 
implements programs to ensure the continued health of the U.S. defense 
industrial base, facilitating diversification of U.S. defense related 
industries into civilian markets, and promoting the conversion of 
military enterprises. This office is also responsible for analyzing the 
economic impact of U.S. export controls on industrial competitiveness.
    (b) Export Enforcement. Export Enforcement implements the 
enforcement provisions of the EAR, including part 760 of the EAR 
(Restrictive Trade Practices and Boycotts). This office also conducts 
outreach programs to assist members of the public in understanding their 
obligation under EAR. The Office of Export Enforcement is organized into 
three offices under the supervision of the Assistant Secretary for 
Export Enforcement.
    (1) The Office of Export Enforcement (OEE) is comprised of an office 
in Washington, D.C. and eight field offices. OEE is staffed with 
criminal investigators and analysts. This office investigates 
allegations of violations and supports administrative and criminal 
enforcement proceedings. The addresses and telephone numbers of the 
eight field offices are listed in Sec. 764.5(c)(7) of the EAR.
    (2) The Office of Enforcement Support (OES) is located in 
Washington, D.C. OES supports BXA's preventive enforcement efforts, 
including conducting pre-license checks and post-shipment verifications. 
OES also provides administrative and analytical support for OEE.
    (3) The Office of Antiboycott Compliance administers and enforces 
the provisions of part 760 of the EAR (Restrictive Trade Practices and 
Boycotts). It investigates and prepares cases on alleged violations of 
this part.
    (c) Technical Advisory Committees. The Technical Advisory Committees 
(TACs) provide advice and assistance to BXA from U.S. industry regarding 
the creation and implementation of export controls. For further 
information regarding establishment of TACs and

[[Page 130]]

other information, see Supplement No. 2 to part 730. Existing TACs 
include the following:
    (1) The Computer Systems Technical Advisory Committee;
    (2) The Electronics Technical Advisory Committee;
    (3) The Materials Technical Advisory Committee;
    (4) The Materials Processing Equipment Technical Advisory Committee;
    (5) The Regulations and Procedures Technical Advisory Committee;
    (6) The Sensors Technical Advisory Committee;
    (7) The Telecommunications Equipment Technical Advisory Committee; 
and
    (8) The Transportation and Related Equipment Technical Advisory 
Committee.



Sec. 730.10  Advisory information.

    The general information in this part is just that--general. To 
achieve brevity, so as to give you a quick overview, the information in 
this part is selective, incomplete, and not expressed with regulatory 
precision. The controlling language is the language of succeeding parts 
of the EAR and of any other laws or regulations referred to or 
applicable. The content of this part is not to be construed as modifying 
or interpreting any other language or as in any way, limiting the 
authority of BXA, any of its components or any other government 
department or agency. You should not take any action based solely on 
what you read in this part.

Supplement No. 1 to Part 730--Information Collection Requirements Under 
            the Paperwork Reduction Act: OMB Control Numbers

    This supplement lists the control numbers assigned to the 
information collection requirements for the Bureau of Export 
Administration by the Office of Management and Budget (OMB), pursuant to 
the Paperwork Reduction Act of 1995. This supplement complies with the 
requirements of section 3506(c)(1)(B)(i) of the Paperwork Reduction Act 
requiring agencies to display current control numbers assigned by the 
Director of OMB for each agency information collection requirement.

------------------------------------------------------------------------
                                            15 CFR part or section where
          Current OMB control No.            collections of information 
                                             are identified or described
------------------------------------------------------------------------
0694-0001.................................  Sec.  748.12(d) of the EAR. 
0694-0004.................................  Part 768 of the EAR.        
0694-0008.................................  Sec.  748.13, Supplement No.
                                             5 to part 748 of the EAR.  
0694-0009.................................  Sec.  748.10(e) of the EAR. 
0694-0012.................................  Part 760 and Sec.  762.2(b) 
                                             of the EAR.                
0694-0013.................................  Part 774 of the EAR.        
0694-0015.................................  Sec.  773.3 of the EAR.     
0694-0016.................................  Secs.  748.13 and 762.2(b)  
                                             of the EAR.                
0694-0017.................................  Sec.  748.10 of the EAR.    
0694-0021.................................  Secs.  748.11 and 762.2(b)  
                                             of the EAR.                
0694-0023.................................  Secs.  740.3(d) and 740.4(c)
                                             of the EAR.                
0694-0025.................................  Secs.  754.4 and 762.2(b) of
                                             the EAR.                   
0694-0026.................................  Sec.  754.3 of the EAR.     
0694-0027.................................  Sec.  754.2 of the EAR.     
0694-0029.................................  Sec.  740.4(a) of the EAR.  
0694-0030.................................  Supplement No. 2 to part    
                                             748, paragraph (p) of the  
                                             EAR.                       
0694-0031.................................  Sec.  750.9 of the EAR.     
0694-0032.................................  Sec.  748.4(d)(2) of the    
                                             EAR.                       
0694-0033.................................  Secs.  740.7(b) and 762.2(b)
                                             of the EAR.                
0694-0038.................................  Sec.  758.6(e)(2) of the    
                                             EAR.                       
0694-0040.................................  Secs.  758.5(c)(2) and 758.8
                                             of the EAR.                
0694-0047.................................  Supplement No. 2 to part    
                                             748, paragraph (o)(2) of   
                                             the EAR.                   
0694-0048.................................  Sec.  748.3 of the EAR.     
0694-0050.................................  Sec.  752.5(c)(5) of the    
                                             EAR.                       
0694-0051.................................  Sec.  750.10 of the EAR.    
0694-0058.................................  Secs.  762.2(b) and 764.5 of
                                             the EAR.                   
0694-0064.................................  Secs.  748.9 and 762.2(b) of
                                             the EAR.                   
0694-0065.................................  Sec.  754.4(c) of the EAR of
                                             the EAR.                   
0694-0073.................................  Sec.  742.12, Supplement No.
                                             3 to part 742, and Sec.    
                                             762.2(b) of the EAR.       
0694-0078.................................  Supplement No. 1 to part 774
                                             of the EAR.                
0694-0086.................................  Supplement No. 1 to part 774
                                             of the EAR.                
0694-0088.................................  Parts 746, 748, and 752;    
                                             Sec.  762.2(b) of the EAR. 
0694-0089.................................  Part 752 and Sec.  762.2(b) 
                                             of the EAR.                
0694-0093.................................  Secs.  748.10 and 762.2(b)  
                                             of the EAR.                
0694-0094.................................  Part 758 of the EAR of the  
                                             EAR.                       
0694-0095.................................  Secs.  740.7(a)(3)(ii) and  
                                             758.1(d) of the EAR.       
0694-0096.................................  Part 760, Sec.  762.6(a) of 
                                             the EAR.                   
0694-0097.................................  Secs.  752.15(b), 758.6, and
                                             762.2(b) of the EAR.       
0694-0102.................................  Secs.  754.6 and 754.7 of   
                                             the EAR.                   
0694-0101.................................  Sec.  734.4 of the EAR.     
0694-0100.................................  Supplement No. 1 to part    
                                             730.                       
0607-0001.................................  Sec.  758.2(m) of the EAR.  
0607-0018.................................  Secs.  740.1(d),            
                                             740.3(a)(3), 752.7(b), Sec.
                                              752.15(a) of the EAR.     
                                            Secs.  754.2(h) and (i),    
                                             754.4(c) 758.1, Secs.      
                                             758.2(m) and 758.3 of the  
                                             EAR.                       
0607-0152.................................  Secs.  740.1(d),            
                                             740.3(a)(3), 752.7(b),     
                                             Secs.  752.15(a) of the    
                                             EAR.                       
                                            Secs.  754.2(h) and (i),    
                                             754.4(c), 758.1, Secs.     
                                             758.2(m), and 758.3 of the 
                                             EAR.                       
------------------------------------------------------------------------

       Supplement No. 2 to Part 730--Technical Advisory Committees

    (a) Purpose. The purpose of this supplement is to describe the 
procedures and criteria for the establishment and operation of Technical 
Advisory Committees.

[[Page 131]]

    (b) Technical advisory committees. Any producer of articles, 
materials, or supplies, including technology, software, and other 
information, that are subject to export controls, or are being 
considered for such controls because of their significance to the 
national security of the United States, may request the Secretary of 
Commerce to establish a technical advisory committee, under the 
provisions of section 5(h) of the Export Administration Act of 1979, as 
amended (EAA) to advise and assist the Department of Commerce and other 
appropriate U.S. Government agencies or officials with respect to 
questions involving technical matters; worldwide availability and actual 
utilization of production technology; licensing procedures that affect 
the level of export controls applicable to a clearly defined grouping of 
articles, materials, or supplies, including technology, software, or 
other information; and exports and reexports subject to all controls 
that the United States maintains including proposed revisions of any 
such controls. If producers of articles, materials, or supplies, 
including technology, software, and other information, that are subject 
to export controls because of their significance to the national 
security of the United States, wish a trade association or other 
representative to submit a written request on their behalf for the 
appointment to a TAC, such request shall be submitted in accordance with 
paragraph (b)(4) of this supplement.
    (1) Form and substance of requests. Each request for the appointment 
of a TAC shall be submitted in writing to: Assistant Secretary for 
Export Administration, P.O. Box 273, Washington, DC 20044.
    The request shall include:
    (i) A description of the articles, materials, or supplies including 
technology and software, in terms of a clear, cohesive grouping (citing 
the applicable Export Control Classification Numbers where practical);
    (ii) A statement of the reasons for requesting the appointment of a 
TAC; and
    (iii) Any information in support of any contention that may be made 
that the request meets the criteria described in paragraph (b)(2) of 
this supplement.
    (2) Consideration of request for establishment of a TAC. The 
Department of Commerce will review all requests for the establishment of 
a TAC to determine if the following criteria are met:
    (i) That a substantial segment of the industry producing the 
specified articles, materials, or supplies including technology desires 
such a committee; and
    (ii) That the evaluation of such articles, materials, or supplies 
including technology and software for export control purposes is 
difficult because of questions involving technical matters, worldwide 
availability and actual utilization of production and software 
technology, or licensing procedures.
    (3) Requests by a substantial segment of an industry. In determining 
whether or not a substantial segment of any industry has requested the 
appointment of a TAC, the Department of Commerce will consider:
    (i) The number of persons or firms requesting the establishment of a 
TAC for a particular grouping of commodities, software and technology in 
relation to the total number of U.S. producers of such items; and
    (ii) The volume of annual production by such persons or firms of 
each item in the grouping in relation to the total U.S. production. 
Generally, a substantial segment of an industry (for purposes of this 
supplement) shall consist of:
    (A) Not less than 30 percent of the total number of U.S. producers 
of the items concerned; or
    (B) Three or more U.S. producers who produce a combined total of not 
less than 30 percent of the total U.S. annual production, by dollar 
value of the items concerned; or
    (C) Not less than 20 percent of the total number of U.S. producers 
of the items concerned, provided that the total of their annual 
production thereof is not less than 20 percent of the total U.S. annual 
production, by dollar value.
    (iii) If it is determined that a substantial segment of the industry 
concerned has requested the establishment of a TAC concerning a specific 
grouping of items that the Department of Commerce determines difficult 
to evaluate for export control purposes, BXA will establish and use the 
TAC requested.
    (4) Requests from trade associations or other representatives. 
Requests from trade associations or other representatives of U.S. 
producers for the establishment of a TAC must comply with the provisions 
of paragraphs (b) (1) through (3) of this supplement. In addition, in 
order to assist BXA in determining whether the criteria described in 
paragraph (b)(3) of this supplement have been met, a trade association 
or other representative submitting a request for the establishment of a 
TAC should include the following information:
    (i) The total number of firms in the particular industry;
    (ii) The total number of firms in the industry that have authorized 
the trade association or other representative to act in their behalf in 
this matter;
    (iii) The approximate amount of total U.S. annual production by 
dollar value of the items concerned produced by those firms that have 
authorized the trade association or other representative to act in their 
behalf; and
    (iv) A description of the method by which authorization to act on 
behalf of these producers was obtained.
    (5) Nominations for membership on TACs. When the Department of 
Commerce determines that the establishment of a TAC is

[[Page 132]]

warranted, it will request nominations for membership on the committee 
among the producers of the items and from any other sources that may be 
able to suggest well-qualified nominees.
    (6) Selection of industry members of committee. Industry members of 
a TAC will be selected by the Department of Commerce from a list of the 
nominees who have indicated their availability for service on the 
committee. To the extent feasible, the Department of Commerce will 
select a committee balanced to represent all significant facets of the 
industry involved, taking into consideration such factors as the size of 
the firms, their geographical distribution, and their product lines. No 
industry representative shall serve on a TAC for more than four 
consecutive years. The membership of a member who is absent from four 
consecutive meetings shall be terminated.
    (7) Government members. Government members of a TAC will be selected 
by the Department of Commerce from the agencies having an interest in 
the subject matter concerned.
    (8) Invitation to serve on committee. Invitations to serve on a TAC 
will be sent by letter to the selected nominees.
    (9) Election of Chair. The Chair of each TAC shall be elected by a 
vote of the majority of the members of the committee present and voting.
    (c) Charter. (1) No TAC established pursuant to this supplement 
shall meet or take any action until an advisory committee charter has 
been filed with the Assistant Secretary for Export Administration of the 
Department of Commerce and with the standing committees of the Senate 
and of the House of Representatives having legislative jurisdiction over 
the Department. Such charter shall contain the following information:
    (i) The committee's official designation;
    (ii) The committee's objectives and the scope of its activities;
    (iii) The period of time necessary for the committee to carry out 
its purposes;
    (iv) The agency or official to whom the committee reports;
    (v) The agency responsible for providing the necessary support for 
the committee;
    (vi) A description of the duties for which the committee is 
responsible, and, if such duties are not solely advisory, a 
specification of the authority for such functions;
    (vii) The estimated annual operating costs in dollars and years for 
such committee;
    (viii) The estimated number and frequency of committee meetings;
    (ix) The committee's termination date, if less than two years from 
the date of the committee's establishment; and
    (x) The date the charter is filed.
    (d) Meetings. (1) Each TAC established under the provisions of the 
EAA and paragraph (b) of this supplement shall meet at least once every 
three months at the call of its Chair unless it is specifically 
determined by the Chair, in consultation with other members of the 
committee, that a particular meeting is not necessary.
    (2) No TAC may meet except at the call of its Chair.
    (3) Each meeting of a TAC shall be conducted in accordance with an 
agenda approved by a designated Federal government employee.
    (4) No TAC shall conduct a meeting in the absence of a designated 
Federal government employee who shall be authorized to adjourn any 
advisory committee meeting, whenever the Federal government employee 
determines adjournment to be in the public interest.
    (e) Public notice. Notice to the public of each meeting of a TAC 
will be issued at least 20 days in advance and will be published in the 
Federal Register. The notice will include the time and place of the 
meeting and the agenda.
    (f) Public attendance and participation. (1) Any member of the 
public who wishes to do so may file a written statement with any TAC 
before or after any meeting of a committee.
    (2) A request for an opportunity to deliver an oral statement 
relevant to matters on the agenda of a meeting of a TAC will be granted 
to the extent that the time available for the meeting permits. A 
committee may establish procedures requiring such persons to obtain 
advance approval for such participation.
    (3) Attendance at meetings of TACs will be open to the public unless 
it is determined pursuant to section 10(d) of the Federal Advisory 
Committee Act to be necessary to close all, or some portion, of the 
meeting to the public. A determination that a meeting or portion thereof 
be closed to the public may be made if all or a specific portion of a 
meeting of a TAC is concerned with matters described in section 552(b) 
of Title 5, U.S.C.
    (4) Participation by members of the public in open TAC meetings or 
questioning of committee members or other participants shall not be 
permitted except in accordance with procedures established by the 
committee.
    (5) Every effort will be made to accommodate all members of the 
public who wish to attend.
    (g) Minutes. (1) Detailed minutes of each meeting of each TAC will 
be kept and will contain a record of the persons present, a complete and 
accurate description of the matters discussed and conclusions reached, 
and copies of all reports received, issued, or approved by the TAC.
    (2) The accuracy of all the minutes will be certified to by the TAC 
Chair.
    (h) Records. (1) Subject to section 552 of Title 5, U.S.C. and 
Department of Commerce

[[Page 133]]

Administrative Order 205-12, ``Public Information,'' and ``Public 
Information'' regulations issued by the Department of Commerce that are 
contained in 15 CFR part 4, Subtitle A, the records, reports, 
transcripts, minutes, appendices, working papers, draft, studies, 
agenda, or other documents that were made available to or prepared for 
or by each TAC will be available for public inspection and copying.
    (2) Each TAC will prepare once each year a report describing its 
membership, functions, activities, and such related matters as would be 
informative to the public consistent with the policy of section 552(b) 
of Title 5, U.S.C.
    (3)(i) Requests for records should be addressed to: Bureau of Export 
Administration, Freedom of Information, Records Inspection Facility, 
U.S. Department of Commerce, Room 4513, Washington, DC 20230, Telephone 
(202) 482-2593.
    (ii) Rules concerning the use of the Records Inspection Facility are 
contained in 15 CFR part 4, Subtitle A, or may be obtained from this 
facility.
    (i) Compensation. If the Department of Commerce deems it 
appropriate, a member of a TAC may be reimbursed for travel, 
subsistence, and other necessary expenses incurred in connection with 
the member's duties.
    (j) Scope of advisory committee functions. All TACs are limited to 
the functions described in their charters.
    (k) Duration of committees. Each TAC will terminate at the end of 
two years from the date the committee was established or two years from 
the effective date of its most recent extension, whichever is later. 
Committees may be continued only for successive two-year periods by 
appropriate action taken by the authorized officer of the Department of 
Commerce prior to the date on which such advisory committee would 
otherwise terminate. TACs may be extended or terminated only after 
consultation with the committee.
    (l) Miscellaneous. (1) TACs established in accordance with paragraph 
(b) of this supplement must conform to the provisions of the Federal 
Advisory Committee Act (Pub. L. 92-463), Office of Management and Budget 
Circular A-63 (Revision of March 1974), ``Advisory Committee 
Management,'' Department of Commerce Administrative Order 205-12, 
``Public Information,'' the applicable provisions of the EAA, and any 
other applicable Department of Commerce regulations or procedures 
affecting the establishment or operation of advisory committees.
    (2) Whenever the Department of Commerce desires the advice or 
assistance of a particular segment of an industry with respect to any 
export control problem for which the service of a TAC, as described in 
paragraph (b) of this supplement is either unavailable or impracticable, 
an advisory committee may be established pursuant to the provisions of 
section 9 of the Federal Advisory Committee Act. Such committees will be 
subject to the requirements of the Federal Advisory Committee Act, OMB 
Circular A-63 (Revision of March 1974), ``Advisory Committee 
Management,'' Department of Commerce Administrative Order 205-12, 
``Public Information,'' and any other applicable Department of Commerce 
regulations or procedures affecting the establishment or operation of 
advisory committees.
    (3) Nothing in the provisions of this supplement shall be construed 
to restrict in any manner the right of any person or firm to discuss any 
export control matter with the Department of Commerce or to offer advice 
or information on export control matters. Similarly, nothing in these 
provisions shall be construed to restrict the Department of Commerce in 
consulting any person or firm relative to any export control matter.

  Supplement No. 3 to Part 730--Other U.S. Government Departments and 
              Agencies With Export Control Responsibilities

    Note: The departments and agencies identified with an asterisk 
control exports for foreign policy or national security reasons and, in 
certain cases, such controls may overlap with the controls described in 
the EAR (see part 734 of the EAR).

                  Defense Services and Defense Articles

* Department of State, Office of Defense Trade Controls, Tel. (703) 875-
6644, Fax: (703) 875-6647.
    22 CFR parts 120 through 130.

                     Drugs, Chemicals and Precursors

Drug Enforcement Administration, International Chemical Control Unit, 
Tel. (202) 307-7202, Fax: (202) 307-8570.
    21 CFR parts 1311 through 1313.
Controlled Substances: Drug Enforcement Administration, International 
Drug Unit, Tel. (202) 307-2414, Fax: (202) 307-8570.
    21 CFR 1311 through 1313.
Drugs and Biologics: Food and Drug Administration, Import/Export, Tel. 
(301) 594-3150, Fax: (301) 594-0165.
    21 U.S.C. 301 et seq.
Investigational drugs permitted: Food and Drug Administration, 
International Affairs, Tel. (301) 443-4480, Fax: (301) 443-0235.
    21 CFR 312.1106.

             Fish and Wildlife Controls; Endangered Species

    Department of the Interior, Chief Office of Management Authority, 
Tel. (703) 358-2093, Fax: (703) 358-2280.
    50 CFR 17.21, 17.22, 17.31, 17.32.

[[Page 134]]

                Foreign Assets and Transactions Controls

* Department of Treasury, Office of Foreign Assets Control, Licensing, 
Tel. (202) 622-2480, Fax: (202) 622-1657.
    31 CFR parts 500 through 590.

                             Medical Devices

Food and Drug Administration, Office of Compliance, Tel. (301) 594-4699, 
Fax: (301) 594-4715.
    21 U.S.C. 301 et seq.

                     Natural Gas and Electric Power

Department of Energy, Office of Fuels Programs, Tel. (202) 586-9482, 
Fax: (202) 586-6050.
    10 CFR 205.300 through 205.379 and part 590.

                     Nuclear Materials and Equipment

* Nuclear Regulatory Commission, Office of International Programs, Tel. 
(301) 415-2344, Fax: (301) 415-2395.
    10 CFR part 110.

 Nuclear Technology; Technical Data for Nuclear Weapons/Special Nuclear 
                                Materials

* Department of Energy, Office of Arms Control and Non Proliferation, 
Export Control Division, Tel. (202) 586-2112, Fax: (202) 586-6977.
    10 CFR part 810.

                        Ocean Freight Forwarders

Federal Maritime Commission, Office of Freight Forwarders, Tel. (202) 
523-5843, Fax: (202) 523-5830.
    46 CFR part 510.

                     Patent Filing Data Sent Abroad

* Department of Commerce, Patent and Trademark Office, Licensing and 
Review; Tel. (703) 308-1722, Fax: (703) 305-3603, 3604.
    37 CFR part 5.

    Prohibition of Movement of American Carriers and Prohibition on 
            Transportation of Goods Destined for North Korea

Department of Transportation, Office of International Law, General 
Counsel, Tel. (202) 366-2972, Fax: (202) 366-9188.
    44 CFR part 403.

     U.S. Flagged or U.S. Manufactured Vessels Over 1,000 Gross Tons

U.S. Maritime Administration, Division of Vessel Transfer and Disposal, 
Tel. (202) 366-5821, Fax: (202) 366-3889.
    46 CFR part 221.



PART 732--STEPS FOR USING THE EAR--Table of Contents




Sec.
732.1  Steps overview.
732.2  Steps regarding scope of the EAR.
732.3  Steps regarding the ten general prohibitions.
732.4  Steps regarding License Exceptions.
732.5  Steps regarding Shipper's Export Declaration, Destination Control 
          Statements, record keeping, license applications, and other 
          requirements.
732.6  Steps for other requirements.

Supplement No. 1 to Part 732--BXA's ``Know Your Customer'' Guidance and 
          Red Flags

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Executive Order 13026 
(November 15, 1996, 61 FR 58767) Notice of August 15, 1995 (60 FR 42767, 
August 17, 1995); and Notice of August 14, 1996 (61 FR 42527).

    Source: 61 FR 12740, Mar. 25, 1996, unless otherwise noted.



Sec. 732.1  Steps overview.

    (a)(1) Introduction. In this part, references to the EAR are 
references to 15 CFR chapter VII, subchapter C. This part is intended to 
help you determine your obligations under the EAR by listing logical 
steps in Sec. 732.2 through Sec. 732.5 of this part that you can take in 
reviewing these regulations. By cross-references to the relevant 
provisions of the EAR, this part describes the suggested steps for you 
to determine applicability of the following:
    (i) The scope of the EAR (part 734 of the EAR);
    (ii) Each of the general prohibitions (part 736 of the EAR);
    (iii) The License Exceptions (part 740 of the EAR); and
    (iv) Other requirements such as clearing your export with the U.S. 
Customs Service, keeping records, and completing and documenting license 
applications.
    (2) These steps describe the organization of the EAR, the 
relationship among the provisions of the EAR, and the appropriate order 
for you to consider the various provisions of the EAR.
    (b) Facts about your transaction. The following five types of facts 
determine your obligations under the EAR and will be of help to you in 
reviewing these steps:
    (1) What is it? What an item is, for export control purposes, 
depends on its classification, which is its place on the

[[Page 135]]

Commerce Control List (see part 774 of the EAR).
    (2) Where is it going? The country of ultimate destination for an 
export or reexport also determines licensing requirements (see parts 738 
and 774 of the EAR concerning the Country Chart and the Commerce Control 
List).
    (3) Who will receive it? The ultimate end-user of your item cannot 
be a bad end-user. See General Prohibition Four (Denial Orders) in 
Sec. 736.2(b)(4) and parts 744 and 764 of the EAR for a reference to the 
list of persons you may not deal with.
    (4) What will they do with it? The ultimate end-use of your item 
cannot be a bad end-use. See General Prohibition Five (End-Use End-User) 
in Sec. 736.2(b)(5) and part 744 of the EAR for general end-use and end-
user restrictions.
    (5) What else do they do? Conduct such as contracting, financing, 
and freight forwarding in support of a proliferation project (as 
described in Sec. 744.6 of the EAR) may prevent you from dealing with 
someone.
    (c) Are your items and activities subject to the EAR? You should 
first determine whether your commodity, software, or technology is 
subject to the EAR (see part 734 of the EAR concerning scope), and Steps 
1 through 6 help you do that. For exports from the United States, only 
Steps 1 and 2 are relevant. If you already know that your item or 
activity is subject to the EAR, you should go on to consider the ten 
general prohibitions in part 736 of the EAR. If your item or activity is 
not subject to the EAR, you have no obligations under the EAR and may 
skip the remaining steps.
    (d) Does your item or activity require a license under one or more 
of the ten general prohibitions? (1) Brief summary of the ten general 
prohibitions. The general prohibitions are found in part 736 of the EAR 
and referred to in these steps. They consist, very briefly, of the 
following:
    (i) General Prohibition One (Exports and Reexports): Export and 
reexport of controlled items to listed countries.
    (ii) General Prohibition Two (Parts and Components Reexports): 
Reexport and export from abroad of foreign-made items incorporating more 
than a de minimis amount of controlled U.S. content.
    (iii) General Prohibition Three (Foreign-produced Direct Product 
Reexports): Reexport and export from abroad of the foreign-produced 
direct product of U.S. technology and software.
    (iv) General Prohibition Four (Denial Orders): Engaging in actions 
prohibited by a denial order.
    (v) General Prohibition Five (End-Use End-User): Export or reexport 
to prohibited end-user or end-users.
    (vi) General Prohibition Six (Embargo): Export or reexport to 
embargoed destinations.
    (vii) General Prohibition Seven (U.S. Person Proliferation 
Activity): Support of proliferation activities.
    (viii) General Prohibition Eight (In-Transit): In-transit shipments 
and items to be unladen from vessels and aircraft.
    (ix) General Prohibition Nine (Orders, Terms and Conditions): 
Violation of any orders, terms, or conditions.
    (x) General Prohibition Ten (Knowledge Violation to Occur): 
Proceeding with transactions with knowledge that a violation has 
occurred or is about to occur.
    (2) Controls on items on the Commerce Control List (CCL). If your 
item or activity is subject to the EAR, you should determine whether any 
one or more of the ten general prohibitions require a license for your 
export, reexport, or activity. Steps 7 through 11 refer to 
classification of your item on the Commerce Control List (CCL) (part 774 
of the EAR) and how to use the Country Chart (Supplement No. 1 to part 
738 of the EAR) to determine whether a license is required based upon 
the classification of your item. These steps refer to General 
Prohibitions One (Exports and Reexports), Two (Parts and Components 
Reexports), and Three (Foreign-Produced Direct Product Reexports) for 
all countries except: Cuba, Iran, Iraq, Libya, and North Korea. For 
these countries, you may skip Steps 7 through 11 and go directly to Step 
12.
    (3) Controls on activities. Steps 12 through 18 refer to General 
Prohibitions Four through Ten. Those general prohibitions apply to all 
items subject

[[Page 136]]

to the EAR, not merely those items listed on the CCL in part 774 of the 
EAR. For example, they refer to the general prohibitions for persons 
denied export privileges, prohibited end-uses and end-users, embargoed 
countries (e.g., Cuba, Iran, Iraq, Libya, and North Korea), prohibited 
activities of U.S. persons in support of proliferation of weapons of 
mass destruction, prohibited unlading of shipments, compliance with 
orders, terms and conditions, and activities when a violation has 
occurred or is about to occur.
    (4) General prohibitions. If none of the ten general prohibitions 
applies, you should skip the steps concerning License Exceptions and for 
exports from the United States, review Steps 27 through 29 concerning 
Shipper's Export Declarations to be filed with the U.S. Customs Service, 
Destination Control Statements for export control documents, and 
recordkeeping requirements.
    (e) Is a License Exception available to overcome the license 
requirement? If you decide by reviewing the CCL in combination with the 
Country Chart that a license is required for your destination, you 
should determine whether a License Exception will except you from that 
requirement. Steps 20 through 24 help you determine whether a License 
Exception is available. Note that generally License Exceptions are not 
available to overcome General Prohibitions Four through Ten. However, 
selected License Exceptions for embargoed destinations are specified in 
part 746 of the EAR and License Exceptions for short supply controls are 
specified in part 754 of the EAR. If a License Exception is available 
and the export is from the United States, you should review Steps 26 
through 28 concerning Shipper's Export Declarations to be filed with the 
U.S. Customs Service, Destination Control Statements for export control 
documents and recordkeeping requirements. If a License Exception is not 
available, go on to Steps 25 through 29.
    (f) How do you apply for a license? If you must file a license 
application, you should review the requirements of part 748 of the EAR 
as suggested by Step 26. Then you should review Steps 27 through 29 
concerning Shipper's Export Declarations to be filed with the U.S. 
Customs Service, Destination Control Statements for export control 
documents, and recordkeeping requirements.



Sec. 732.2  Steps regarding scope of the EAR.

    Steps 1 through 6 aid you in determining the scope of the EAR.
    (a) Step 1: Items subject to the exclusive jurisdiction of another 
Federal agency. This step is relevant for both exports and reexports. 
Determine whether your item is subject to the exclusive jurisdiction of 
another Federal Agency as provided in Sec. 734.3 of the EAR.
    (1) If your item is subject to the exclusive jurisdiction of another 
Federal agency, comply with the regulations of that agency. You need not 
comply with the EAR and may skip the remaining steps.
    (2) If your item is not subject to the exclusive jurisdiction of 
another federal agency, then proceed to Step 2 in paragraph (b) of this 
section.
    (b) Step 2: Publicly available technology and software. This step is 
relevant for both exports and reexports. Determine if your technology or 
software is publicly available as defined and explained at part 734 of 
the EAR. Supplement No. 1 to part 734 of the EAR contains several 
practical examples describing publicly available technology and software 
that is outside the scope of the EAR. The examples are illustrative, not 
comprehensive. Note that encryption software controlled for EI reasons 
under ECCN 5D002 on the Commerce Control List (refer to Supplement No.1 
to part 774 of the EAR) shall be subject to the EAR even if publicly 
available. Accordingly, the provisions of the EAR concerning the public 
availability of items are not applicable to encryption items controlled 
for ``EI'' reasons under ECCN 5D002.
    (1) If your technology or software is publicly available, and 
therefore outside the scope of the EAR, you may proceed with the export 
or reexport. You have no obligations under the EAR and need not comply 
with the EAR. You may skip the remaining steps.
    (2) If your technology or software is not publicly available and you 
are exporting from the United States, skip to

[[Page 137]]

Step 7 in Sec. 732.3(b) of this part concerning the general 
prohibitions.
    (3) If you are exporting items from a foreign country, you should 
then proceed to Step 3 in paragraph (c) of this section and the other 
steps concerning the scope of the EAR.
    (c) Step 3: Reexport of U.S.-origin items. This step is appropriate 
only for reexporters. For an item in a foreign country, you should 
determine whether the item is of U.S. origin. If it is of U.S.-origin, 
skip to Step 7 in Sec. 732.3(b) of this part. If it is not of U.S. 
origin, then proceed to Step 4 in paragraph (d) of this section.
    (d) Step 4: Foreign-made items incorporating less than the de 
minimis level of U.S. parts, components, and materials. This step is 
appropriate only for items that are made outside the United States. Note 
that encryption items controlled for EI reasons under ECCN 5A002 or ECCN 
5D002 on the Commerce Control List (refer to Supplement No.1 to part 774 
of the EAR) shall be subject to the EAR even if they incorporate less 
than the de minimis level of U.S. content. Accordingly, the provisions 
of the EAR concerning de minimis levels are not applicable to encryption 
items controlled for ``EI'' reasons under ECCN 5A002, ECCN 5D002, or 
ECCN 5E002.
    (1) For an item made in a foreign country, you should determine 
whether controlled U.S.-origin parts, components, or materials are 
incorporated as provided in Sec. 734.4 of the EAR. Also, determine the 
value of the U.S.-origin controlled content as provided in Supplement 
No. 2 to part 734 of the EAR.
    (2) To determine the value of the U.S.-origin controlled content, 
you should classify the U.S.-origin content on the CCL, determine those 
items that would require a license from BXA for reexport to the ultimate 
destination of the foreign-made product if such parts, components, or 
materials were reexported to that destination in the form received, and 
divide the total value of the controlled U.S. parts, components, and 
materials incorporated into the foreign-made item by the sale price of 
the foreign-made item.
    (3) If no U.S. parts, components, or materials are incorporated or 
if the incorporated U.S. parts, components, and materials are below the 
de minimis level described in Sec. 734.4 of the EAR, then the foreign-
made item is not subject to the EAR by reason of the parts and 
components rule, the classification of a foreign-made item is irrelevant 
in determining the scope of the EAR, and you should skip Step 4 and go 
on to consider Step 5 regarding the foreign-produced direct product 
rule.
    (4) If controlled parts, components, or materials are incorporated 
and are above the de minimis level, then you should go on to Step 5.
    (e) Step 5: Foreign-made items incorporating more than the de 
minimis level of U.S. parts, components, or materials. This step is 
appropriate only for foreign-made items incorporating certain U.S. 
parts. If the incorporated U.S. parts exceed the relevant de minimis 
level, then your export from abroad is subject to the EAR. You then 
should skip to Step 7 at Sec. 732.3 of this part and consider the steps 
regarding all other general prohibitions, License Exceptions, and other 
requirements.
    (f) Step 6: Foreign-made items produced with certain U.S. technology 
for export to specified destinations. This step is appropriate for 
foreign-made items in foreign countries.
    (1) If your foreign-produced item is described in an entry on the 
CCL and the Country Chart requires a license to your export or reexport 
destination for national security reasons, you should determine whether 
your item is subject to General Prohibition Three (Foreign-Produced 
Direct Product Reexports) (Sec. 736.2(b)(3) of the EAR). Your item is 
subject to the EAR if it is captured by General Prohibition Three 
(Foreign-Produced Direct Product Reexports), and that prohibition 
applies if your transaction meets each of the following conditions:
    (i) Country scope of prohibition. Your export or reexport 
destination for the direct product is Cuba, North Korea, Libya, or a 
destination in Country Group D:1 (see Supplement No. 1 to part 740 of 
the EAR) (reexports of foreign-produced direct products exported to 
other destinations are not subject to General Prohibition Three);
    (ii) Scope of technology or software used to create direct products 
subject to the prohibition. Technology or software

[[Page 138]]

that was used to create the foreign-produced direct product, and such 
technology or software that was subject to the EAR and required a 
written assurance as a supporting document for a license or as a 
precondition for the use of License Exception TSR in Sec. 740.6 of the 
EAR (reexports of foreign-produced direct products created with other 
technology and software are not subject to General Prohibition Three); 
and
    (iii) Scope of direct products subject to the prohibition. The 
foreign-produced direct products are subject to national security 
controls as designated on the proper ECCN of the Commerce Control List 
in part 774 of the EAR (reexports of foreign-produced direct products 
not subject to national security controls are not subject to General 
Prohibition Three).
    (2) License Exceptions. Each License Exception described in part 740 
of the EAR overcomes this General Prohibition Three if all terms and 
conditions of a given License Exception are met by the exporter or 
reexporter.
    (3) Subject to the EAR. If your item is captured by the foreign-
produced direct product control at General Prohibition Three, then your 
export from abroad is subject to the EAR. You should next consider the 
steps regarding all other general prohibitions, License Exceptions, and 
other requirements. If your item is not captured by General Prohibition 
Three, then your export from abroad is not subject to the EAR. You have 
completed the steps necessary to determine whether your transaction is 
subject to the EAR, and you may skip the remaining steps. Note that in 
summary, items in foreign countries are subject to the EAR when they 
are:
    (i) U.S.-origin commodities, software and technology unless 
controlled for export exclusively by another Federal agency or unless 
publicly available;
    (ii) Foreign-origin commodities, software, and technology that are 
within the scope of General Prohibition Two (Parts and Components 
Reexports), or General Prohibition Three (Foreign-Produced Direct 
Product Reexports). (However, such foreign-made items are also outside 
the scope of the EAR if they are controlled for export exclusively by 
another Federal agency or unless publicly available.)

[61 FR 12740, Mar. 25, 1996, as amended at 61 FR 64274, Dec. 4, 1996; 61 
FR 68577, Dec. 30, 1996]



Sec. 732.3  Steps regarding the ten general prohibitions.

    (a) Introduction. If your item or activity is subject to the scope 
of the EAR, you should then consider each of the ten general 
prohibitions listed in part 736 of the EAR. General Prohibitions One 
((Exports and Reexports), Two (Parts and Components Reexports), and 
Three (Foreign-Produced Direct Product Reexports) (Sec. 736.2(b) (1), 
(2), and (3) of the EAR) are product controls that are shaped and 
limited by parameters specified on the CCL and Country Chart. General 
Prohibitions Four through Ten are prohibitions on certain activities 
that are not allowed without authorization from BXA, and these 
prohibitions apply to all items subject to the EAR unless otherwise 
specified (Sec. 736.2(b) (4) through (10) of the EAR).
    (b) Step 7: Classification. (1) You should classify your items in 
the relevant entry on the CCL, and you may do so on your own without the 
assistance of BXA. You are responsible for doing so correctly, and your 
failure to correctly classify your items does not relieve you of the 
obligation to obtain a license when one is required by the EAR.
    (2) You have a right to request the applicable classification of 
your item from BXA, and BXA has a duty to provide that classification to 
you. For further information on how to obtain classification assistance 
from BXA, see part 748 of the EAR.
    (3) For items subject to the EAR but not listed on the CCL, the 
proper classification is EAR99. This number is a ``basket'' for items 
not specified under any CCL entry and appears at the end of each 
Category on the CCL.
    (c) Step 8: Country of ultimate destination. You should determine 
the country of ultimate destination. The country of destination 
determines the applicability of several general prohibitions, License 
Exceptions, and other requirements. Note that part 754 of the EAR 
concerning short supply controls is

[[Page 139]]

self-contained and is the only location in the EAR that contains both 
the prohibitions and exceptions applicable to short supply controls.
    (d) Step 9: Reason for control and the Country Chart. (1) Reason for 
control and column identifier within the Export Control Classification 
Number (ECCN). Once you have determined that your item is controlled by 
a specific ECCN, you must use information contained in the ``License 
Requirements'' section of that ECCN in combination with the Country 
Chart to decide whether a license is required under General Prohibitions 
One, Two, or Three to a particular destination. The CCL and the Country 
Chart are taken together to define these license requirements. The 
applicable ECCN will indicate the reason or reasons for control for 
items within that ECCN. For example, ECCN 6A007 is controlled for 
national security, missile technology, and anti-terrorism reasons.
    (2) Reason for control within the Country Chart. With each of the 
applicable Country Chart column identifiers noted in the correct ECCN, 
turn to the Country Chart. Locate the correct Country Chart column 
identifier on the horizontal axis, and determine whether an ``X'' is 
marked in the cell next to the destination in question. Consult 
Sec. 738.4 of the EAR for comprehensive instructions on using the 
Country Chart and a detailed example.
    (i) An ``X'' in the cell or cells for the relevant country and 
reason(s) for control column indicates that a license is required for 
General Prohibitions One (Exports and Reexports in the Form Received), 
Two (Parts and Components Reexports), and Three (Foreign-Produced Direct 
Product Reexports). (See Sec. 736.2 (b)(1), (b)(2), and (b)(3) of the 
EAR).
    (ii) If one or more cells have an ``X'' in the relevant column, a 
license is required unless you qualify for a License Exception described 
in part 740 of the EAR. If a cell does not contain an ``X'' for your 
destination in one or more relevant columns, a license is not required 
under the CCL and the Country Chart.
    (iii) Additional controls may apply to your export. You must go on 
to steps 12 through 18 described in paragraphs (g) to (m) of this 
section to determine whether additional limits described in General 
Prohibition Two (Parts and Components Reexports) and General Prohibition 
Three (Foreign-Produced Direct Product Reexports ) apply to your 
proposed transaction. If you are exporting an item from the United 
States, you should skip Step 10 and Step 11. Proceed directly to Step 12 
in paragraph (g) of this section.
    (3) License requirements not on the Country Chart. There are two 
instances where the Country Chart cannot be used to determine if a 
license is required. Items controlled for short supply reasons are not 
governed by the Country Chart. Part 754 of the EAR contains license 
requirements and License Exceptions for items subject to short supply 
controls. A limited number of ECCNs contained on the CCL do not identify 
a Country Chart column identifier. In these instances, the ECCN states 
whether a license is required and for which destinations. See 
Sec. 738.3(a) of the EAR for a list of the ECCNs for which you do not 
need to consult the Country Chart to determine licensing requirements.
    (4) Destinations subject to embargo provisions. The Country Chart 
does not apply to Cuba, Iran, Iraq, Libya, and North Korea; and for 
those countries you should review the embargo provisions at part 746 of 
the EAR and may skip this step concerning the Country Chart. For Angola, 
Bosnia-Herzegovina, Croatia, Rwanda, and Serbia and Montenegro the 
Country Chart provides for certain license requirements, and part 746 of 
the EAR provides additional requirements.
    (5) Items subject to the EAR but not on the CCL. Items subject to 
the EAR that are not on the CCL are properly classified EAR99. For such 
items, you may skip this step and proceed directly with Step 12 in 
paragraph (g) of this section.
    (e) Step 10: Foreign-made items incorporating U.S.-origin items and 
the de minimis rule. (1) Parts and components rule. The following 
considerations are appropriate for items abroad and are the same steps 
necessary to determine whether a foreign-made item incorporating U.S. 
parts, components, or materials is subject to the EAR. If your foreign-
made item is described in

[[Page 140]]

an entry on the CCL and the Country Chart requires a license to your 
export or reexport destination, you should determine whether the 
controlled U.S.-origin commodities, software, or technology incorporated 
into the foreign-made item exceeds the de minimis level applicable to 
the ultimate destination of the foreign-made item, as follows:
    (i) A 10% de minimis level to embargoed and terrorist-supporting 
countries; or
    (ii) A 25% de minimis level to all other countries.
    (2) Guidance for calculations. For guidance on how to calculate the 
U.S.-controlled content, refer to Supplement No. 2 to part 734 of the 
EAR. Note that certain rules issued by the Office of Foreign Assets 
Control, certain exports from abroad by U.S.-owned or controlled 
entities may be prohibited notwithstanding the de minimis provisions of 
the EAR. In addition, the de minimis exclusions from the parts and 
components rule do not relieve U.S. persons of the obligation to refrain 
from supporting the proliferation of weapons of mass-destruction and 
missiles as provided in General Prohibition Seven (U.S. Person 
Proliferation Activity) described in Sec. 736.2(b)(7) of the EAR. Note 
that encryption items controlled for EI reasons under ECCN 5A002 or ECCN 
5D002 on the Commerce Control List (refer to Supplement No.1 to part 774 
of the EAR) shall be subject to the EAR even if they incorporate less 
than the de minimis level of U.S. content. Accordingly, the provisions 
of the EAR concerning de minimis levels are not applicable to encryption 
items controlled for ``EI'' reasons under ECCN 5A002, ECCN 5D002, or 
ECCN 5E002.
    (f) Step 11: Foreign-produced direct product. The following 
considerations are appropriate for items abroad and are the same 
considerations necessary to determine whether a foreign-produced direct 
product is subject to the EAR under Step 6 in Sec. 732.2(f) of this 
part.
    (1) If your foreign-produced item is described in an entry on the 
CCL and the Country Chart requires a license to your export or reexport 
destination for national security reasons, you must determine whether 
your item is subject to General Prohibition Three (Foreign-Produced 
Direct Product Reexports) (Sec. 736.2(b)(3) of the EAR). Your item is 
subject to this general prohibition if your transaction meets each of 
the following conditions:
    (i) Country scope of prohibition. Your export or reexport 
destination for the direct product is Cuba, Libya, North Korea, or a 
destination in Country Group D:1 (see Supplement No. 1 to part 740 of 
the EAR) (reexports of foreign-produced direct products exported to 
other destinations are not subject to General Prohibition Three 
described in Sec. 736.2(b)(3) of the EAR);
    (ii) Scope of technology or software used to create direct products 
subject to the prohibition. Technology or software that was used to 
create the foreign-produced direct product, and such technology or 
software that was subject to the EAR and required a written assurance as 
a supporting document for a license or as a precondition for the use of 
License Exception TSR in Sec. 740.6 of the EAR (reexports of foreign-
produced direct products created with other technology and software are 
not subject to General Prohibition Three); and
    (iii) Scope of direct products subject to the prohibition. The 
foreign-produced direct products are controlled for national security 
reasons indicated in an ECCN on the CCL (reexports of foreign-produced 
direct products not subject to national security controls are not 
subject to General Prohibition Three).
    (2) License Exceptions. Each License Exception described in part 740 
of the EAR overcomes General Prohibition Three (Foreign-Produced Direct 
Product Reexports) if all terms and conditions of a given License 
Exception are met by the exporter or reexporter.
    (g) Step 12: Persons denied export privileges. (1) Determine whether 
your transferee, ultimate end-user, any intermediate consignee, or any 
other party to a transaction is a person denied export privileges. (See 
part 764 of the EAR). While it is not a violation of General Prohibition 
Four (Denial Orders) (Sec. 736.2(b)(4) of the EAR) to fail to check the 
Denied Persons List prior to a transfer, it is nonetheless a violation 
of the EAR to engage in any activity that violates the terms or 
conditions of a denial order. General Prohibition Four (Denial Orders) 
applies to all

[[Page 141]]

items subject to the EAR, i.e. both items on the CCL and within EAR99.
    (2) There are no License Exceptions to General Prohibition Four 
(Denial Orders). The prohibition concerning persons denied export 
privileges may be overcome only by a specific authorization from BXA, 
something that is rarely granted.
    (h) STEP 13: Prohibited end-uses and end-users. (1) Review the end-
uses and end-users prohibited under General Prohibition Five (End-Use 
and End-User) (Sec. 736.2(b)(5) of the EAR) described in part 744 of the 
EAR. Part 744 of the EAR contains all the end-use and end-user license 
requirements, and those are in addition to the license requirements 
under General Prohibitions One (Exports and Reexports), Two (Parts and 
Components Reexports), and Three (Foreign-produced Direct Product 
Reexports). Unless otherwise indicated, the license requirements of 
General Prohibition Five (End-Use and End-User) described in part 744 of 
the EAR apply to all items subject to the EAR, i.e. both items on the 
CCL and within EAR99. Moreover, the requirements of General Prohibition 
Five (End-Use and End-User) are in addition to various end-use and end-
user limitations placed on certain License Exceptions.
    (2) There are no License Exceptions to General Prohibition Five 
(End-Use and End-User) (Sec. 736.2(b)(5) of the EAR) described in part 
740 of the EAR.
    (i) Step 14: Embargoed countries and special destinations. If your 
destination for any item is Bosnia-Herzegovina, Croatia, Cuba, Iran, 
Iraq, Libya, North Korea, Rwanda, or Serbia and Montenegro, you must 
consider the requirements of part 746 of the EAR. Unless otherwise 
indicated, General Prohibition Six (Embargo) applies to all items 
subject to the EAR, i.e. both items on the CCL and within EAR99. You may 
not make an export or reexport contrary to the provisions of part 746 of 
the EAR without a license unless:
    (1) You are exporting or reexporting only publicly available 
technology or software or other items outside the scope of the EAR, or
    (2) You qualify for a License Exception referenced in part 746 of 
the EAR concerning embargoed destinations. You may not use a License 
Exception described in part 740 of the EAR to overcome General 
Prohibition Six (Embargo) (Sec. 736.2(b)(6) of the EAR) unless it is 
specifically authorized in part 746 of the EAR. Note that part 754 of 
the EAR concerning short supply controls is self-contained and is the 
only location in the EAR for both the prohibitions and exceptions 
applicable to short supply controls.
    (j) Step 15: Proliferation activity of U.S. persons unrelated to 
exports and reexports. (1) Review the scope of activity prohibited by 
General Prohibition Seven (U.S. Person Proliferation Activity) 
(Sec. 736.2(b)(7) of the EAR) as that activity is described in 
Sec. 744.6 of the EAR. Keep in mind that such activity is not limited to 
exports and reexports and is not limited to items subject to General 
Prohibition One (Exports and Reexports), Two (Parts and Components 
Reexports), and Three (Foreign-Produced Direct Product Reexports). 
Moreover, such activity extends to services and dealing in wholly 
foreign-origin items in support of the specified proliferation activity 
and is not limited to items listed on the CCL or included in EAR99.
    (2) Review the definition of U.S. Person in part 744 of the EAR.
    (k) Step 16: In-transit. Shippers and operators of vessels or 
aircraft should review General Prohibition Eight (In-Transit) to 
determine the countries in which you may not unladen or ship certain 
items in-transit. General Prohibition Eight applies to all items subject 
to the EAR, i.e. both items on the CCL and within EAR99.
    (l) Step 17: Review orders, terms, and conditions. Review the 
orders, terms, and conditions applicable to your transaction. General 
Prohibition Nine (Orders, Terms, and Conditions) prohibits the violation 
of any orders, terms, and conditions imposed under the EAR. Terms and 
conditions are frequently contained in licenses. In addition, the ten 
general prohibitions (part 736 of the EAR) and the License Exceptions 
(part 740 of the EAR) impose terms and conditions or limitations on your 
proposed transactions and use of License Exceptions. A given license or 
License Exception may not be used unless each relevant term or condition 
is met.

[[Page 142]]

    (m) Step 18: Review the ``Know Your Customer'' Guidance and General 
Prohibition Ten (Knowledge Violation to Occur). License requirements 
under the EAR are determined solely by the classification, end-use, end-
user, ultimate destination, and conduct of U.S. persons. Supplement No. 
1 to part 732 of the EAR is intended to provide helpful guidance 
regarding the process for the evaluation of information about customers, 
end-uses, and end-users. General Prohibition Ten (Knowledge Violation to 
Occur) prohibits anyone from proceeding with a transaction with 
knowledge that a violation of the EAR has occurred or is about to occur. 
It also prohibits related shipping, financing, and other services. 
General Prohibition Ten applies to all items subject to the EAR, i.e. 
both items on the CCL and within EAR99.
    (n) Step 19: Complete the review of the general prohibitions. After 
completion of Steps described in this section and review of all ten 
general prohibitions in part 736 of the EAR, including cross-referenced 
regulations in the EAR, you will know which, if any, of the ten general 
prohibitions of the EAR apply to you and your contemplated transaction 
or activity.
    (1) If none of the ten general prohibitions is applicable to your 
export from the United States, no license from BXA is required, you do 
not need to qualify for a License Exception under part 740 of the EAR. 
You should skip the Steps in Sec. 732.4 of this part regarding License 
Exceptions and proceed directly to the Steps in Sec. 732.5 of this part 
regarding recordkeeping, clearing the U.S. Customs Service with the 
appropriate Shipper's Export Declaration, and using the required 
Destination Control Statement.
    (2) If none of the ten general prohibitions is applicable to your 
reexport or export from abroad, no license is required and you should 
skip all remaining Steps.
    (3) If one or more of the ten general prohibitions are applicable, 
continue with the remaining steps.

[61 FR 12740, Mar. 25, 1996, as amended at 61 FR 64274, Dec. 4, 1996; 61 
FR 68577, Dec. 30, 1996]



Sec. 732.4  Steps regarding License Exceptions.

    (a) Introduction to Steps for License Exceptions. If your export or 
reexport is subject to the EAR and is subject to General Prohibitions 
One (Exports and Reexports), Two (Parts and Components Reexports), or 
Three (Foreign-Produced Direct Product Reexports), consider the steps 
listed in paragraph (b) of this section. If your export or reexport is 
subject to General Prohibitions Four (Denial Orders), Seven (U.S. Person 
Proliferation Activity), Eight (In-Transit), Nine (Orders, Terms, and 
Conditions), or Ten (Knowledge Violation to Occur), there are no License 
Exceptions available for your export or reexport. If your export is 
subject to General Prohibition Five (End-Use End-User), consult part 744 
of the EAR. If your export or reexport is subject to General Prohibition 
Six (Embargo), consult part 746 of the EAR for applicable License 
Exceptions.
    (b) Steps for License Exceptions. (1) Step 20: Applicability of 
General Prohibitions. Determine whether any one or more of the general 
prohibitions described in Sec. 736.2(b) of the EAR apply to your export 
or reexport. If no general prohibition applies to your export or 
reexport, then you may proceed with your export or reexport and need not 
review part 740 of the EAR regarding License Exceptions. You are 
reminded of your recordkeeping obligations related to the clearance of 
the U.S. Customs Service provided in parts 762 and 758 of the EAR.
    (2) Step 21: Applicability of restrictions on all License 
Exceptions. Determine whether any one or more of the restrictions in 
Sec. 740.2 of the EAR applies to your export or reexport. If any one or 
more of these restrictions apply, there are no License Exceptions 
available to you, and you must either obtain a license or refrain from 
the export or reexport.
    (3) Step 22: Terms and conditions of the License Exceptions. (i) If 
none of the restrictions in Sec. 740.2 of the EAR applies, then review 
each of the License Exceptions to determine whether any one of them 
authorizes your export or reexport. Eligibility for License Exceptions 
is based on the item, the country of ultimate destination, the end-use, 
and

[[Page 143]]

the end-user, along with any special conditions imposed within a 
specific License Exception.
    (ii) You may meet the conditions for more than one License 
Exception. Moreover, although you may not qualify for some License 
Exceptions you may qualify for others. Review the broadest License 
Exceptions first, and use any License Exception available to you. You 
are not required to use the most restrictive applicable License 
Exception. If you fail to qualify for the License Exception that you 
first consider, you may consider any other License Exception until you 
have determined that no License Exception is available.
    (iii) License Exceptions TMP, RPL, BAG, AVS, GOV, and TSU authorize 
exports notwithstanding the provisions of the CCL. List-based License 
Exceptions (LVS, GBS, CIV, TSR, and CTP) are available only to the 
extent specified on the CCL. Part 740 of the EAR provides authorization 
for reexports only to the extent each License Exception expressly 
authorizes reexports. License Exception APR authorizes reexports only.
    (4) Step 23: Scope of License Exceptions. Some License Exceptions 
are limited by country or by type of item.
    (i) Countries are arranged in country groups for ease of reference. 
For a listing of country groups, please refer to Supplement No. 1 to 
part 740 of the EAR. Unless otherwise indicated in a License Exception, 
License Exceptions do not apply to any exports or reexports to embargoed 
destinations. If your export or reexport is subject to General 
Prohibition Six (Embargo) for embargoed destinations, License Exceptions 
are only available to the extent specifically provided in part 746 of 
the EAR concerning embargoed destinations.
    (ii) Special commodity controls apply to short supply items. No 
License Exceptions described in part 740 of the EAR may be used for 
items listed on the CCL as controlled for Short Supply reasons. License 
Exceptions for short supply items are found in part 754 of the EAR.
    (5) Step 24: Compliance with all terms and conditions. If a License 
Exception is available, you may proceed with your export or reexport. 
However, you must meet all the terms and conditions required by the 
License Exception that you determined authorized your export or 
reexport. You must also consult part 758 and 762 of the EAR to determine 
your recordkeeping and documentation requirements.
    (6) Step 25: License requirements. If no License Exception is 
available, then you must either obtain a license before proceeding with 
your export or reexport or you must refrain from the proposed export or 
reexport.
    (7) Step 26: License applications. If you are going to file a 
license application with BXA, you should first review the requirements 
at part 748 of the EAR. Exporters, reexporters, and exporters from 
abroad should review the instructions concerning applications and 
required support documents prior to submitting an application for a 
license.

[61 FR 12740, Mar. 25, 1996, as amended at 61 FR 64274, Dec. 4, 1996]



Sec. 732.5  Steps regarding Shipper's Export Declaration, Destination Control Statements, record keeping, license applications, and other requirements.

    (a) Step 27--Shipper's Export Declaration. You should review 
Sec. 758.3 of the EAR to determine what notations you must enter on the 
Shipper's Export Declaration (SED). These steps should be reviewed by 
exporters. Reexporters and firms exporting from abroad may skip Steps 27 
through 29 and proceed directly to Sec. 732.6 of this part.
    (1) NLR. The term ``NLR'' represents exports of listed items when no 
license is required. Such exports do not require that you qualify for a 
License Exception. The symbol ``NLR'' is required on the SED under two 
circumstances. First, NLR is the correct symbol when exporting an item 
subject to the EAR not listed on the CCL. Such items are classified 
EAR99. Secondly, certain items are listed on the CCL but do not require 
a license to all destinations under General Prohibitions One (Exports 
and Reexports in the Form Received), Two (Parts and Components 
Reexports), or Three (Foreign-Produced Direct Product Reexports) 
(Sec. 736.2 (b)(1), (b)(2), or (b)(3) of the EAR). Such

[[Page 144]]

items do not have an ``X'' in the appropriate cell on the Country Chart. 
If General Prohibitions Four through Ten (Sec. 736.2 (b)(4) of the EAR) 
through (b)(10) of the EAR) also do not apply, you must clear exports of 
such items by entering the symbol ``NLR'' in the appropriate place on 
the SED.
    (2) License Exception symbol. You must enter on any required SED the 
letter code (e.g., LVS, TMP) of the License Exceptions under which you 
are exporting. In the case of License Exceptions LVS, GBS, and CIV, the 
ECCN of the item being exported must also be entered when an SED is 
required. Please refer to Sec. 758.3 of the EAR for detailed information 
on use of SEDs.
    (3) License number. If you are exporting under a license, enter the 
license number on the SED as required by Sec. 758.3 of the EAR.
    (b) Step 28: Destination Control Statement. You are required to 
enter an appropriate Destination Control Statement (DCS) on commercial 
documents in accordance with the DCS requirements of Sec. 758.6 of the 
EAR. Exporters should review Sec. 758.6 of the EAR and use the DCS as 
required. Reexporters and exporters from abroad should review Sec. 752.6 
for DCS requirements when using a Special Comprehensive License. 
Otherwise, DCS requirements do not apply to reexports and exports from 
abroad.
    (c) Step 29: Recordkeeping. Records of transactions involving 
exports under any license or License Exception must be maintained in 
accordance with the recordkeeping requirements of part 762 of the EAR.

[61 FR 12740, Mar. 25, 1996, as amended at 61 FR 64274, Dec. 4, 1996]



Sec. 732.6  Steps for other requirements.

    Sections 732.1 through 732.4 of this part are useful in determining 
the license requirements that apply to you. Other portions of the EAR 
impose other obligations and requirements. Some of them are:
    (a) Requirements relating to the use of a license in Sec. 758.2 of 
the EAR.
    (b) Obligations of carriers, forwarders, exporters and others to 
take specific steps and prepare and deliver certain documents to assure 
that items subject to the EAR are delivered to the destination to which 
they are licensed or authorized by a License Exception or some other 
provision of the regulations in Sec. 758.4 through Sec. 758.6 of the 
EAR.
    (c) Duty of carriers to return or unload shipments at the direction 
of U.S. Government officials (see Sec. 758.8 of the EAR).
    (d) Specific obligations imposed on parties to Special Comprehensive 
licenses in part 752 of the EAR.
    (e) Recordkeeping requirements imposed in part 762 of the EAR.
    (f) Requirements of part 764 of the EAR to disclose facts that may 
come to your attention after you file a license application or make 
other statements to the government concerning a transaction or proposed 
transaction that is subject to the EAR.
    (g) Certain obligations imposed by part 760 of the EAR on parties 
who receive requests to take actions related to foreign boycotts and 
prohibits certain actions relating to those boycotts.

Supplement No. 1 to Part 732--BXA's ``Know Your Customer'' Guidance and 
                                Red Flags

                     ``Know Your Customer'' Guidance

    Various requirements of the EAR are dependent upon a person's 
knowledge of the end-use, end-user, ultimate destination, or other facts 
relating to a transaction or activity. These provisions include the 
nonproliferation-related ``catch-all'' sections and the prohibition 
against proceeding with a transaction with knowledge that a violation of 
the EAR has occurred or is about to occur.
    (a) BXA provides the following guidance on how individuals and firms 
should act under this knowledge standard. This guidance does not change 
or interpret the EAR.
    (1) Decide whether there are ``red flags''. Take into account any 
abnormal circumstances in a transaction that indicate that the export 
may be destined for an inappropriate end-use, end-user, or destination. 
Such circumstances are referred to as ``red flags''. Included among 
examples of red flags are orders for items that are inconsistent with 
the needs of the purchaser, a customer declining installation and 
testing when included in the sales price or when normally requested, or 
requests for equipment configurations that are incompatible with the 
stated destination (e.g., 120 volts in a country with 220 volts). 
Commerce has developed lists of such red flags that are not all-
inclusive but are intended to illustrate the types

[[Page 145]]

of circumstances that should cause reasonable suspicion that a 
transaction will violate the EAR.
    (2) If there are ``red flags'', inquire. If there are no ``red 
flags'' in the information that comes to your firm, you should be able 
to proceed with a transaction in reliance on information you have 
received. That is, absent ``red flags'' (or an express requirement in 
the EAR), there is no affirmative duty upon exporters to inquire, 
verify, or otherwise ``go behind'' the customer's representations. 
However, when ``red flags'' are raised in information that comes to your 
firm, you have a duty to check out the suspicious circumstances and 
inquire about the end-use, end-user, or ultimate country of destination. 
The duty to check out ``red flags'' is not confined to the use of 
License Exceptions affected by the ``know'' or ``reason to know'' 
language in the EAR. Applicants for licenses are required by part 748 of 
the EAR to obtain documentary evidence concerning the transaction, and 
misrepresentation or concealment of material facts is prohibited, both 
in the licensing process and in all export control documents. You can 
rely upon representations from your customer and repeat them in the 
documents you file unless red flags oblige you to take verification 
steps.
    (3) Do not self-blind. Do not cut off the flow of information that 
comes to your firm in the normal course of business. For example, do not 
instruct the sales force to tell potential customers to refrain from 
discussing the actual end-use, end-user, and ultimate country of 
destination for the product your firm is seeking to sell. Do not put on 
blinders that prevent the learning of relevant information. An 
affirmative policy of steps to avoid ``bad'' information would not 
insulate a company from liability, and it would usually be considered an 
aggravating factor in an enforcement proceeding.
    (4) Employees need to know how to handle ``red flags''. Knowledge 
possessed by an employee of a company can be imputed to a firm so as to 
make it liable for a violation. This makes it important for firms to 
establish clear policies and effective compliance procedures to ensure 
that such knowledge about transactions can be evaluated by responsible 
senior officials. Failure to do so could be regarded as a form of self-
blinding.
    (5) Reevaluate all the information after the inquiry. The purpose of 
this inquiry and reevaluation is to determine whether the ``red flags'' 
can be explained or justified. If they can, you may proceed with the 
transaction. If the ``red flags'' cannot be explained or justified and 
you proceed, you run the risk of having had ``knowledge'' that would 
make your action a violation of the EAR.
    (6) Refrain from the transaction or advise BXA and wait. If you 
continue to have reasons for concern after your inquiry, then you should 
either refrain from the transaction or submit all the relevant 
information to BXA in the form of an application for a validated license 
or in such other form as BXA may specify.
    (b) Industry has an important role to play in preventing exports and 
reexports contrary to the national security and foreign policy interests 
of the United States. BXA will continue to work in partnership with 
industry to make this front line of defense effective, while minimizing 
the regulatory burden on exporters. If you have any question about 
whether you have encountered a ``red flag'', you may contact the Office 
of Export Enforcement at 1-800-424-2980 or the Office of Exporter 
Services at (202) 482-4532.

                                Red Flags

    Possible indicators that an unlawful diversion might be planned by 
your customer include the following:
    1. The customer or purchasing agent is reluctant to offer 
information about the end-use of a product.
    2. The product's capabilities do not fit the buyer's line of 
business; for example, a small bakery places an order for several 
sophisticated lasers.
    3. The product ordered is incompatible with the technical level of 
the country to which the product is being shipped. For example, 
semiconductor manufacturing equipment would be of little use in a 
country without an electronics industry.
    4. The customer has little or no business background.
    5. The customer is willing to pay cash for a very expensive item 
when the terms of the sale call for financing.
    6. The customer is unfamiliar with the product's performance 
characteristics but still wants the product.
    7. Routine installation, training or maintenance services are 
declined by the customer.
    8. Delivery dates are vague, or deliveries are planned for out-of-
the-way destinations.
    9. A freight forwarding firm is listed as the product's final 
destination.
    10. The shipping route is abnormal for the product and destination.
    11. Packaging is inconsistent with the stated method of shipment or 
destination.
    12. When questioned, the buyer is evasive or unclear about whether 
the purchased product is for domestic use, export or reexport.



PART 734--SCOPE OF THE EXPORT ADMINISTRATION REGULATIONS--Table of Contents




Sec.
734.1  Introduction.
734.2  Important EAR terms and principles.
734.3  Items subject to the EAR.
734.4  De minimis U.S. content.

[[Page 146]]

734.5  Activities of U.S. and foreign persons subject to the EAR.
734.6  Assistance available from BXA for determining licensing and other 
          requirements.
734.7  Published information and software.
734.8  Information resulting from fundamental research.
734.9  Educational information.
734.10  Patent applications.
734.11  Government-sponsored research covered by contract controls.
734.12  Effect on foreign laws and regulations.

Supplement No. 1 to Part 734--Questions and Answers--Technology and 
          Software Subject to the EAR
Supplement No. 2 to Part 734--Calculation of Values for De Minimus Rules

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; E.O. 12938, 59 FR 59099, 
3 CFR, 1994 Comp., p. 950; Executive Order 13026 (November 15, 1996, 61 
FR 58767); Notice of August 15, 1995 (60 FR 42767, August 17, 1995); and 
Notice of August 14, 1996 (61 FR 42527).

    Source: 61 FR 12746, Mar. 25, 1996, unless otherwise noted.



Sec. 734.1  Introduction.

    (a) In this part, references to the Export Administration 
Regulations (EAR) are references to 15 CFR chapter VII, subchapter C. 
This part describes the scope of the Export Administration Regulations 
(EAR) and explains certain key terms and principles used in the EAR. 
This part provides the rules you need to use to determine whether items 
and activities are subject to the EAR. This part is the first step in 
determining your obligations under the EAR. If your item or activity is 
not subject to the EAR, then you do not have any obligations under the 
EAR and you do not need to review other parts of the EAR. If you already 
know that your item or activity is subject to the EAR, you do not need 
to review this part and you can go on to review other parts of the EAR 
to determine your obligations. This part also describes certain key 
terms and principles used in the EAR. Specifically, it includes the 
following terms: ``subject to the EAR,'' ``items subject to the EAR,'' 
``export,'' and ``reexport.'' These and other terms are also included in 
part 772 of the EAR, Definitions of Terms, and you should consult part 
772 of the EAR for the meaning of terms used in the EAR. Finally, this 
part makes clear that compliance with the EAR does not relieve any 
obligations imposed under foreign laws.
    (b) This part does not address any of the provisions set forth in 
part 760 of the EAR, Restrictive Trade Practices or Boycotts.
    (c) This part does not define the scope of legal authority to 
regulate exports, including reexports, or activities found in the Export 
Administration Act and other statutes. What this part does do is set 
forth the extent to which such legal authority has been exercised 
through the EAR.



Sec. 734.2  Important EAR terms and principles.

    (a) Subject to the EAR--Definition. (1) ``Subject to the EAR'' is a 
term used in the EAR to describe those items and activities over which 
BXA exercises regulatory jurisdiction under the EAR. Conversely, items 
and activities that are not subject to the EAR are outside the 
regulatory jurisdiction of the EAR and are not affected by these 
regulations. The items and activities subject to the EAR are described 
in Sec. 734.2 through Sec. 734.5 of this part. You should review the 
Commerce Control List (CCL) and any applicable parts of the EAR to 
determine whether an item or activity is subject to the EAR. However, if 
you need help in determining whether an item or activity is subject to 
the EAR, see Sec. 734.6 of this part. Publicly available technology and 
software not subject to the EAR are described in Sec. 734.7 through 
Sec. 734.11 and Supplement No. 1 to this part.
    (2) Items and activities subject to the EAR may also be controlled 
under export-related programs administered by other agencies. Items and 
activities subject to the EAR are not necessarily exempted from the 
control programs of other agencies. Although BXA and other agencies that 
maintain controls for national security and foreign policy reasons try 
to minimize overlapping jurisdiction, you should be aware that in some 
instances you may have to comply with more than one regulatory program.
    (3) The term ``subject to the EAR'' should not be confused with 
licensing

[[Page 147]]

or other requirements imposed in other parts of the EAR. Just because an 
item or activity is subject to the EAR does not mean that a license or 
other requirement automatically applies. A license or other requirement 
applies only in those cases where other parts of the EAR impose a 
licensing or other requirement on such items or activities.
    (b) Export and reexport--(1) Definition of export. ``Export'' means 
an actual shipment or transmission of items subject to the EAR out of 
the United States, or release of technology or software subject to the 
EAR to a foreign national in the United States, as described in 
paragraph (b)(2)(ii) of this section. See part 772 of the EAR for the 
definition that applies to exports of satellites subject to the EAR. See 
paragraph (b)(9) of this section for the definition that applies to 
exports of encryption source code and object code software subject to 
the EAR.
    (2) Export of technology or software. (See paragraph (b)(9) for 
provisions that apply to encryption source code and object code 
software.) ``Export'' of technology or software, excluding encryption 
software subject to ``EI'' controls, includes:
    (i) Any release of technology or software subject to the EAR in a 
foreign country; or
    (ii) Any release of technology or source code subject to the EAR to 
a foreign national. Such release is deemed to be an export to the home 
country or countries of the foreign national. This deemed export rule 
does not apply to persons lawfully admitted for permanent residence in 
the United States and does not apply to persons who are protected 
individuals under the Immigration and Naturalization Act (8 U.S.C. 
1324b(a)(3)). Note that the release of any item to any party with 
knowledge a violation is about to occur is prohibited by 
Sec. 736.2(b)(10) of the EAR.
    (3) Definition of ``release'' of technology or software. Technology 
or software is ``released'' for export through:
    (i) Visual inspection by foreign nationals of U.S.-origin equipment 
and facilities;
    (ii) Oral exchanges of information in the United States or abroad; 
or
    (iii) The application to situations abroad of personal knowledge or 
technical experience acquired in the United States.
    (4) Definition of reexport. ``Reexport'' means an actual shipment or 
transmission of items subject to the EAR from one foreign country to 
another foreign country; or release of technology or software subject to 
the EAR to a foreign national outside the United States, as described in 
paragraph (b)(5) of this section. See part 772 of the EAR for the 
definition that applies to reexports of satellites subject to the EAR.
    (5) Reexport of technology or software. Any release of technology or 
source code subject to the EAR to a foreign national of another country 
is a deemed reexport to the home country or countries of the foreign 
national. However, this deemed reexport definition does not apply to 
persons lawfully admitted for permanent residence. The term ``release'' 
is defined in paragraph (b)(3) of this section. Note that the release of 
any item to any party with knowledge or reason to know a violation is 
about to occur is prohibited by Sec. 736.2(b)(10) of the EAR.
    (6) For purposes of the EAR, the export or reexport of items subject 
to the EAR that will transit through a country or countries or be 
transshipped in a country or countries to a new country or are intended 
for reexport to the new country, are deemed to be exports to the new 
country.
    (7) If a territory, possession, or department of a foreign country 
is not listed on the Country Chart in Supplement No. 1 to part 738 of 
the EAR, the export or reexport of items subject to the EAR to such 
destination is deemed under the EAR to be an export to the foreign 
country. For example, a shipment to the Cayman Islands, a dependent 
territory of the United Kingdom, is deemed to be a shipment to the 
United Kingdom.
    (8) Export or reexport of items subject to the EAR does not include 
shipments among any of the states of the United States, the Commonwealth 
of Puerto Rico, or the Commonwealth of the Northern Mariana Islands or 
any territory, dependency, or possession of the United States. These 
destinations

[[Page 148]]

are listed in Schedules C & E, Classification of Country and Territory 
Designations for U.S. Export Statistics, issued by the Bureau of the 
Census.
    (9) Export of encryption source code and object code software. (i) 
For purposes of the EAR, the export of encryption source code and object 
code software means:
    (A) An actual shipment, transfer, or transmission out of the United 
States (see also paragraph (b)(9)(ii) of this section); or
    (B) A transfer of such software in the United States to an embassy 
or affiliate of a foreign country.
    (ii) The export of encryption source code and object code software 
controlled for EI reasons under ECCN 5D002 on the Commerce Control List 
(see Supplement No. 1 to part 774 of the EAR) includes downloading, or 
causing the downloading of, such software to locations (including 
electronic bulletin boards, Internet file transfer protocol, and World 
Wide Web sites) outside the U.S., or making such software available for 
transfer outside the United States, over wire, cable, radio, 
electromagnetic, photooptical, photoelectric or other comparable 
communications facilities accessible to persons outside the United 
States, including transfers from electronic bulletin boards, Internet 
file transfer protocol and World Wide Web sites, unless the person 
making the software available takes precautions adequate to prevent 
unauthorized transfer of such code outside the United States. Such 
precautions shall include:
    (A) Ensuring that the facility from which the software is available 
controls the access to and transfers of such software through such 
measures as:
    (1) The access control system, either through automated means or 
human intervention, checks the address of every system requesting or 
receiving a transfer and verifies that such systems are located within 
the United States;
    (2) The access control system, provides every requesting or 
receiving party with notice that the transfer includes or would include 
cryptographic software subject to export controls under the Export 
Administration Act, and that anyone receiving such a transfer cannot 
export the software without a license; and
    (3) Every party requesting or receiving a transfer of such software 
must acknowledge affirmatively that he or she understands that the 
cryptographic software is subject to export controls under the Export 
Administration Act and that anyone receiving the transfer cannot export 
the software without a license; or
    (B) Taking other precautions, approved in writing by the Bureau of 
Export Administration, to prevent transfer of such software outside the 
U.S. without a license.

[61 FR 12746, Mar. 25, 1996, as amended at 61 FR 68578, Dec. 30, 1996]



Sec. 734.3  Items subject to the EAR.

    (a) Except for items excluded in paragraph (b) of this section, the 
following items are subject to the EAR:
    (1) All items in the United States, including in a U.S. Foreign 
Trade Zone or moving intransit through the United States from one 
foreign country to another;
    (2) All U.S. origin items wherever located;
    (3) U.S. origin parts, components, materials or other commodities 
incorporated abroad into foreign-made products, U.S. origin software 
commingled with foreign software, and U.S. origin technology commingled 
with foreign technology, in quantities exceeding de minimis levels as 
described in Sec. 734.4 and Supplement No. 2 of this part;
    (4) Certain foreign-made direct products of U.S. origin technology 
or software, as described in Sec. 736.2(b)(3) of the EAR. The term 
``direct product'' means the immediate product (including processes and 
services) produced directly by the use of technology or software; and
    (5) Certain commodities produced by any plant or major component of 
a plant located outside the United States that is a direct product of 
U.S.-origin technology or software, as described in Sec. 736.2(b)(3) of 
the EAR.
    (b) The following items are not subject to the EAR:
    (1) Items that are exclusively controlled for export or reexport by 
the following departments and agencies of the U.S. Government which 
regulate

[[Page 149]]

exports or reexports for national security or foreign policy purposes:
    (i) Department of State. The International Traffic in Arms 
Regulations (22 CFR part 121) administered by the Office of Defense 
Trade Controls relate to defense articles and defense services on the 
U.S. Munitions List. Section 38 of the Arms Export Control Act (22 
U.S.C. 2778).
    (ii) Treasury Department, Office of Foreign Assets Control (OFAC). 
Regulations administered by OFAC implement broad controls and embargo 
transactions with certain foreign countries. These regulations include 
controls on exports and reexports to certain countries (31 CFR chapter 
V). Trading with the Enemy Act (50 U.S.C. app. section 1 et seq.), and 
International Emergency Economic Powers Act (50 U.S.C. 1701, et seq.)
    (iii) U.S. Nuclear Regulatory Commission (NRC). Regulations 
administered by NRC control the export and reexport of commodities 
related to nuclear reactor vessels (10 CFR part 110). Atomic Energy Act 
of 1954, as amended (42 U.S.C. part 2011 et seq.).
    (iv) Department of Energy (DOE). Regulations administered by DOE 
control the export and reexport of technology related to the production 
of special nuclear materials (10 CFR part 810). Atomic Energy Act of 
1954, as amended (42 U.S.C. section 2011 et seq.).
    (v) Patent and Trademark Office (PTO). Regulations administered by 
PTO provide for the export to a foreign country of unclassified 
technology in the form of a patent application or an amendment, 
modification, or supplement thereto or division thereof (37 CFR part 5). 
BXA has delegated authority under the Export Administration Act to the 
PTO to approve exports and reexports of such technology which is subject 
to the EAR. Exports and reexports of such technology not approved under 
PTO regulations must comply with the EAR.
    (2) Prerecorded phonograph records reproducing in whole or in part, 
the content of printed books, pamphlets, and miscellaneous publications, 
including newspapers and periodicals; printed books, pamphlets, and 
miscellaneous publications including bound newspapers and periodicals; 
children's picture and painting books; newspaper and periodicals, 
unbound, excluding waste; music books; sheet music; calendars and 
calendar blocks, paper; maps, hydrographical charts, atlases, 
gazetteers, globe covers, and globes (terrestrial and celestial); 
exposed and developed microfilm reproducing, in whole or in part, the 
content of any of the above; exposed and developed motion picture film 
and soundtrack; and advertising printed matter exclusively related 
thereto.
    (3) Publicly available technology and software, except software 
controlled for EI reasons under ECCN 5D002 on the Commerce Control List, 
that:
    (i) Are already published or will be published as described in 
Sec. 734.7 of this part;
    (ii) Arise during, or result from, fundamental research, as 
described in Sec. 734.8 of this part;
    (iii) Are educational, as described in Sec. 734.9 of this part;
    (iv) Are included in certain patent applications, as described in 
Sec. 734.10 of this part.

    Note to paragraphs (b)(2) and (b)(3) of this section: A printed book 
or other printed material setting forth encryption source code is not 
itself subject to the EAR (see Sec. 734.3(b)(2)). However, 
notwithstanding Sec. 734.3(b)(2), encryption source code in electronic 
form or media (e.g., computer diskette or CD ROM) remains subject to the 
EAR (see Sec. 734.3(b)(3)).

    (4) Foreign made items that have de minimis U.S. content based on 
the principles described in Sec. 734.4 of this part.
    (c) ``Items subject to the EAR'' consist of the items listed on the 
Commerce Control List (CCL) in part 774 of the EAR and all other items 
which meet the definition of that term. For ease of reference and 
classification purposes, items subject to the EAR which are not listed 
on the CCL are designated as ``EAR99.''

[61 FR 12746, Mar. 25, 1996, as amended at 61 FR 65464, Dec. 13, 1996; 
61 FR 68578, Dec. 30, 1996]



Sec. 734.4  De minimis U.S. content.

    (a) There is no de minimis level for the export from a foreign 
country of a foreign-made computer exceeding 7000 MTOPS containing U.S.-
origin controlled semiconductors (other than

[[Page 150]]

memory circuits) classified under ECCN 3A001 or high speed interconnect 
devices (ECCN 4A003.g) to Computer Tier 3 and 4 countries described in 
Sec. 742.12 of the EAR.
    (b) There is no de minimis level for the reexport of foreign-origin 
items that incorporate the following:
    (1) Items controlled by ECCN 9A004.a; or
    (2) ``Information security'' systems and equipment, cryptographic 
devices, software and components specifically designed or modified 
therefor, and related technology controlled for ``EI'' reasons under 
ECCN, 5A002 ECCN 5D002, and 5E002. Certain mass market encryption 
software may become eligible for de minimis only after a one-time BXA 
review (refer to Sec. 742.15(b)(1)).
    (c) Except as provided in paragraph (a) of this section for certain 
computers, for embargoed countries in part 746 of the EAR, and for 
countries named as terrorist-supporting countries in part 744 of the 
EAR, the following are not subject to the EAR:
    (1) Reexports of a foreign-made commodity incorporating controlled 
U.S.-origin commodities valued at 10% or less of the total value of the 
foreign-made commodity;
    (2) Reexports of foreign-made software incorporating controlled 
U.S.-origin software valued at 10% or less of the total value of the 
foreign-made software; or
    (3) Reexports of foreign technology commingled with or drawn from 
controlled U.S. origin technology valued at 10% or less of the total 
value of the foreign technology.
    (d) Except as provided in paragraph (a) of this section for certain 
computers, for all other countries not included in paragraph (b) of this 
section, the following are not subject to the EAR:
    (1) Reexports of a foreign-made commodity incorporating controlled 
U.S.-origin commodities valued at 25% or less of the total value of the 
foreign-made commodity;
    (2) Reexports of foreign-made software incorporating controlled 
U.S.-origin software valued at 25% or less of the total value of the 
foreign-made software; or
    (3) Reexports of foreign technology commingled with or drawn from 
controlled U.S.-origin technology valued at 25% or less of the total 
value of the foreign technology.
    (e) For purposes of determining de minimis levels, technology and 
source code used to design or produce foreign-made commodities or 
software are not considered to be incorporated into such foreign-made 
commodities or software. Commodities subject only to short supply 
controls are not included in calculating U.S. content.
    (f) You are responsible for making the necessary calculations to 
determine whether the de minimis provisions apply to your situation. See 
Supplement No. 2 to part 734 for guidance regarding calculation of U.S. 
controlled content.
    (g) See Sec. 770.3 of the EAR for principles that apply to 
commingled U.S.-origin technology and software.
    (h) Notwithstanding the provisions of paragraphs (c) and (d) of this 
section, U.S.-origin technology controlled by ECCN 9E003a.1 through 
a.12, and .f, and related controls, and encryption software controlled 
for ``EI'' reasons under ECCN 5D002 or encryption technology controlled 
for ``EI'' reasons under ECCN 5E002 do not lose their U.S.-origin when 
redrawn, used, consulted, or otherwise commingled abroad in any respect 
with other software or technology of any other origin. Therefore, any 
subsequent or similar software or technology prepared or engineered 
abroad for the design, construction, operation, or maintenance of any 
plant or equipment, or part thereof, which is based on or uses any such 
U.S.-origin software or technology is subject to the EAR.

[61 FR 12746, Mar. 25, 1996, as amended at 61 FR 54543, Oct. 21, 1996; 
61 FR 65464, Dec. 13, 1996; 61 FR 68578, Dec. 30, 1996]



Sec. 734.5  Activities of U.S. and foreign persons subject to the EAR.

    The following kinds of activities are subject to the EAR:
    (a) Certain activities of U.S. persons related to the proliferation 
of chemical or biological weapons or of missile technology as described 
in Sec. 744.6 of the EAR.
    (b) Activities of U.S. or foreign persons prohibited by any order 
issued under the EAR, including a Denial

[[Page 151]]

Order issued pursuant to part 766 of the EAR.
    (c) Technical assistance by U.S. persons with respect to encryption 
commodities or software as described in Sec. 744.9 of the EAR.

[61 FR 12746, Mar. 25, 1996, as amended at 61 FR 68578, Dec. 30, 1996]



Sec. 734.6  Assistance available from BXA for determining licensing and other requirements.

    (a) If you are not sure whether a commodity, software, technology, 
or activity is subject to the EAR, or is subject to licensing or other 
requirements under the EAR, you may ask BXA for an advisory opinion, 
classification, or a determination whether a particular item or activity 
is subject to the EAR. In many instances, including those where the item 
is specially designed, developed, configured, adapted, or modified for 
military application, the item may fall under the licensing jurisdiction 
of the Department of State and may be subject to the controls of the 
International Traffic in Arms Regulations (22 CFR parts 120 through 130) 
(ITAR). In order to determine if the Department of State has licensing 
jurisdiction over an item, you should submit a request for a commodity 
jurisdiction determination to the Department of State, Office of Defense 
Trade Controls. Exporters should note that in a very limited number of 
cases, the categories of items may be subject to both the ITAR and the 
EAR. The relevant departments are working to eliminate any unnecessary 
overlaps that may exist.
    (b) As the agency responsible for administering the EAR, BXA is the 
only agency that has the responsibility for determining whether an item 
or activity is subject to the EAR and, if so, what licensing or other 
requirements apply under the EAR. Such a determination only affects EAR 
requirements, and does not affect the applicability of any other 
regulatory programs.
    (c) If you need help in determining BXA licensing or other 
requirements you may ask BXA for help by following the procedures 
described in Sec. 748.3 of the EAR.



Sec. 734.7  Published information and software.

    (a) Information is ``published'' when it becomes generally 
accessible to the interested public in any form, including:
    (1) Publication in periodicals, books, print, electronic, or any 
other media available for general distribution to any member of the 
public or to a community of persons interested in the subject matter, 
such as those in a scientific or engineering discipline, either free or 
at a price that does not exceed the cost of reproduction and 
distribution (See Supplement No. 1 to this part, Questions A(1) through 
A(6));
    (2) Ready availability at libraries open to the public or at 
university libraries (See Supplement No. 1 to this part, Question A(6));
    (3) Patents and open (published) patent applications available at 
any patent office; and
    (4) Release at an open conference, meeting, seminar, trade show, or 
other open gathering.
    (i) A conference or gathering is ``open'' if all technically 
qualified members of the public are eligible to attend and attendees are 
permitted to take notes or otherwise make a personal record (not 
necessarily a recording) of the proceedings and presentations.
    (ii) All technically qualified members of the public may be 
considered eligible to attend a conference or other gathering 
notwithstanding a registration fee reasonably related to cost and 
reflecting an intention that all interested and technically qualified 
persons be able to attend, or a limitation on actual attendance, as long 
as attendees either are the first who have applied or are selected on 
the basis of relevant scientific or technical competence, experience, or 
responsibility (See Supplement No. 1 to this part, Questions B(1) 
through B(6)).
    (iii) ``Publication'' includes submission of papers to domestic or 
foreign editors or reviewers of journals, or to organizers of open 
conferences or other open gatherings, with the understanding that the 
papers will be made publicly available if favorably received. (See 
Supplement No. 1 to this part, Questions A(1) and A(3)).

[[Page 152]]

    (b) Software and information is published when it is available for 
general distribution either for free or at a price that does not exceed 
the cost of reproduction and distribution. See Supplement No. 1 to this 
part, Questions G(1) through G(3).
    (c) Notwithstanding paragraphs (a) and (b) of this section, note 
that encryption software controlled under ECCN 5D002 for ``EI'' reasons 
on the Commerce Control List (refer to Supplement No. 1 to part 774 of 
the EAR) remains subject to the EAR even when publicly available.

[61 FR 12746, Mar. 25, 1996, as amended at 61 FR 65464, Dec. 13, 1996; 
61 FR 68578, Dec. 30, 1996]



Sec. 734.8  Information resulting from fundamental research.

    (a) Fundamental research. Paragraphs (b) through (d) of this section 
and Sec. 734.11 of this part provide specific rules that will be used to 
determine whether research in particular institutional contexts 
qualifies as ``fundamental research''. The intent behind these rules is 
to identify as ``fundamental research'' basic and applied research in 
science and engineering, where the resulting information is ordinarily 
published and shared broadly within the scientific community. Such 
research can be distinguished from proprietary research and from 
industrial development, design, production, and product utilization, the 
results of which ordinarily are restricted for proprietary reasons or 
specific national security reasons as defined in Sec. 732.10 of this 
part. (See Supplement No. 1 to this part, Question D(8)). Note that the 
provisions of this section do not apply to encryption software 
controlled under ECCN 5D002 for ``EI'' reasons on the Commerce Control 
List (refer to Supplement No. 1 to part 774 of the EAR).
    (b) University based research. (1) Research conducted by scientists, 
engineers, or students at a university normally will be considered 
fundamental research, as described in paragraphs (b) (2) through (6) of 
this section. (``University'' means any accredited institution of higher 
education located in the United States.)
    (2) Prepublication review by a sponsor of university research solely 
to insure that the publication would not inadvertently divulge 
proprietary information that the sponsor has furnished to the 
researchers does not change the status of the research as fundamental 
research. However, release of information from a corporate sponsor to 
university researchers where the research results are subject to 
prepublication review, is subject to the EAR. (See Supplement No. 1 to 
this part, Questions D(7), D(9), and D(10).)
    (3) Prepublication review by a sponsor of university research solely 
to ensure that publication would not compromise patent rights does not 
change the status of fundamental research, so long as the review causes 
no more than a temporary delay in publication of the research results.
    (4) The initial transfer of information from an industry sponsor to 
university researchers is subject to the EAR where the parties have 
agreed that the sponsor may withhold from publication some or all of the 
information so provided. (See Supplement No. 1 to this part, Question 
D(2).)
    (5) University based research is not considered ``fundamental 
research'' if the university or its researchers accept (at the request, 
for example, of an industrial sponsor) other restrictions on publication 
of scientific and technical information resulting from the project or 
activity. Scientific and technical information resulting from the 
research will nonetheless qualify as fundamental research once all such 
restrictions have expired or have been removed. (See Supplement No. 1 to 
this part, Question D(7) and D(9).)
    (6) The provisions of Sec. 734.11 of this part will apply if a 
university or its researchers accept specific national security controls 
(as defined in Sec. 732.11 of this part) on a research project or 
activity sponsored by the U.S. Government. (See Supplement No. 1 to this 
part, Questions E(1) and E(2).)
    (c) Research based at Federal agencies or FFRDCs. Research conducted 
by scientists or engineers working for a Federal agency or a Federally 
Funded Research and Development Center (FFRDC) may be designated as 
``fundamental research'' within any appropriate system devised by the 
agency or

[[Page 153]]

the FFRDC to control the release of information by such scientists and 
engineers. (See Supplement No. 1 to this part, Questions D(8) and 
D(11).)
    (d) Corporate research. (1) Research conducted by scientists or 
engineers working for a business entity will be considered ``fundamental 
research'' at such time and to the extent that the researchers are free 
to make scientific and technical information resulting from the research 
publicly available without restriction or delay based on proprietary 
concerns or specific national security controls as defined in 
Sec. 734.11 of this part.
    (2) Prepublication review by the company solely to ensure that the 
publication would compromise no proprietary information provided by the 
company to the researchers is not considered to be a proprietary 
restriction under paragraph (d)(1) of this section. However, paragraph 
(d)(1) of this section does not authorize the release of information to 
university researchers where the research results are subject to 
prepublication review. (See Supplement No. 1 to this part, Questions 
D(8), D(9), and D(10).)
    (3) Prepublication review by the company solely to ensure that 
prepublication would compromise no patent rights will not be considered 
a proprietary restriction for this purpose, so long as the review causes 
no more than a temporary delay in publication of the research results.
    (4) However, the initial transfer of information from a business 
entity to researchers is not authorized under the ``fundamental 
research'' provision where the parties have agreed that the business 
entity may withhold from publication some or all of the information so 
provided.
    (e) Research based elsewhere. Research conducted by scientists or 
engineers who are not working for any of the institutions described in 
paragraphs (b) through (d) of this section will be treated as corporate 
research, as described in paragraph (d) of this section. (See Supplement 
No. 1 to this part, Question D(8).)

[61 FR 12746, Mar. 25, 1996, as amended at 61 FR 68579, Dec. 30, 1996]



Sec. 734.9  Educational information.

    ``Educational information'' referred to in Sec. 734.3(b)(3)(iii) of 
this part is not subject to the EAR if it is released by instruction in 
catalog courses and associated teaching laboratories of academic 
institutions. Dissertation research is discussed in Sec. 734.8(b) of 
this part. (Refer to Supplement No. 1 to this part, Question C(1) 
through C(6)). Note that the provisions of this section do not apply to 
encryption software controlled under ECCN 5D002 for ``EI'' reasons on 
the Commerce Control List (refer to Supplement No. 1 to part 774 of the 
EAR).

[61 FR 68579, Dec. 30, 1996]



Sec. 734.10  Patent applications.

    The information referred to in Sec. 734.3(b)(3)(iv) of this part is:
    (a) Information contained in a patent application prepared wholly 
from foreign-origin technical data where the application is being sent 
to the foreign inventor to be executed and returned to the United States 
for subsequent filing in the U.S. Patent and Trademark Office;
    (b) Information contained in a patent application, or an amendment, 
modification, supplement or division of an application, and authorized 
for filing in a foreign country in accordance with the regulations of 
the Patent and Trademark Office, 37 CFR part 5; 1 or
---------------------------------------------------------------------------

    \1\ Regulations issued by the Patent and Trademark Office in 37 CFR 
part 5 provide for the export to a foreign country of unclassified 
technical data in the form of a patent application or an amendment, 
modification, or supplement thereto or division thereof.
---------------------------------------------------------------------------

    (c) Information contained in a patent application when sent to a 
foreign country before or within six months after the filing of a United 
States patent application for the purpose of obtaining the signature of 
an inventor who was in the United States when the invention was made or 
who is a co-inventor with a person residing in the United States.

[[Page 154]]



Sec. 734.11  Government-sponsored research covered by contract controls.

    (a) If research is funded by the U.S. Government, and specific 
national security controls are agreed on to protect information 
resulting from the research, Sec. 734.3(b)(3) of this part will not 
apply to any export or reexport of such information in violation of such 
controls. However, any export or reexport of information resulting from 
the research that is consistent with the specific controls may 
nonetheless be made under this provision.
    (b) Examples of ``specific national security controls'' include 
requirements for prepublication review by the Government, with right to 
withhold permission for publication; restrictions on prepublication 
dissemination of information to non-U.S. citizens or other categories of 
persons; or restrictions on participation of non-U.S. citizens or other 
categories of persons in the research. A general reference to one or 
more export control laws or regulations or a general reminder that the 
Government retains the right to classify is not a ``specific national 
security control''. (See Supplement No. 1 to this part, Questions E(1) 
and E(2).)



Sec. 734.12  Effect on foreign laws and regulations.

    Any person who complies with any of the license or other 
requirements of the EAR is not relieved of the responsibility of 
complying with applicable foreign laws and regulations. Conversely, any 
person who complies with the license or other requirements of a foreign 
law or regulation is not relieved of the responsibility of complying 
with U.S. laws and regulations, including the EAR.

  Supplement No. 1 to Part 734--Questions and Answers--Technology and 
                       Software Subject to the EAR

    This Supplement No. 1 contains explanatory questions and answers 
relating to technology and software that is subject to the EAR. It is 
intended to give the public guidance in understanding how BXA interprets 
this part, but is only illustrative, not comprehensive. In addition, 
facts or circumstances that differ in any material way from those set 
forth in the questions or answers will be considered under the 
applicable provisions of the EAR. Exporters should note that the 
provisions of this supplement do not apply to encryption software 
(including source code) transferred from the U.S. Munitions List to the 
Commerce Control List consistent with E.O. 13026 of November 15, 1996 
(61 FR 58767) and pursuant to the Presidential Memorandum of that date. 
See Sec. 742.15 of the EAR. This supplement is divided into nine 
sections according to topic as follows:
    Section A: Publication of technology and exports and reexports of 
technology that has been or will be published.
    Section B: Release of technology at conferences.
    Section C: Educational instruction.
    Section D: Research, correspondence, and informal scientific 
exchanges.
    Section E: Federal contract controls.
    Section F: Commercial consulting.
    Section G: Software.
    Section H: Availability in a public library.
    Section I: Miscellaneous.

                         Section A: Publication

    Question A(1): I plan to publish in a foreign journal a scientific 
paper describing the results of my research, which is in an area listed 
in the EAR as requiring a license to all countries except Canada. Do I 
need a license to send a copy to my publisher abroad?
    Answer: No. This export transaction is not subject to the EAR. The 
EAR do not cover technology that is already publicly available, as well 
as technology that is made public by the transaction in question 
(Secs. 734.3 and 734.7 of this part). Your research results would be 
made public by the planned publication. You would not need a license.
    Question A(2): Would the answer differ depending on where I work or 
where I performed the research?
    Answer: No. Of course, the result would be different if your 
employer or another sponsor of your research imposed restrictions on its 
publication (Sec. 734.8 of this part).
    Question (A)3: Would I need a license to send the paper to the 
editors of a foreign journal for review to determine whether it will be 
accepted for publication?
    Answer: No. This export transaction is not subject to the EAR 
because you are submitting the paper to the editors with the intention 
that the paper will be published if favorably received 
(Sec. 734.7(a)(4)(iii) of this part).
    Question A(4): The research on which I will be reporting in my paper 
is supported by a grant from the Department of Energy (DOE). The grant 
requires prepublication clearance by DOE. Does that make any difference 
under the Export Administration Regulations?
    Answer: No, the transaction is not subject to the EAR. But if you 
published in violation of any Department of Energy controls you

[[Page 155]]

have accepted in the grant, you may be subject to appropriate 
administrative, civil, or criminal sanctions under other laws.
    Question A(5): We provide consulting services on the design, layout, 
and construction of integrated circuit plants and production lines. A 
major part of our business is the publication for sale to clients of 
detailed handbooks and reference manuals on key aspects on the design 
and manufacturing processes. A typical cost of publishing such a 
handbook and manual might be $500; the typical sales price is about 
$15,000. Is the publication and sale of such handbooks or manuals 
subject to the EAR?
    Answer: Yes. The price is above the cost of reproduction and 
distribution (Sec. 734.7(a)(1) of this part). Thus, you would need to 
obtain a license or qualify for a License Exception before you could 
export or reexport any of these handbooks or manuals.
    Question A(6): My Ph.D. thesis is on technology, listed in the EAR 
as requiring a license to all destinations except Canada, which has 
never been published for general distribution. However, the thesis is 
available at the institution from which I took the degree. Do I need a 
license to send another copy to a colleague overseas?
    Answer: That may depend on where in the institution it is available. 
If it is not readily available in the university library (e.g., by 
filing in open stacks with a reference in the catalog), it is not 
``publicly available'' and the export or reexport would be subject to 
the EAR on that ground. The export or reexport would not be subject to 
the EAR if your Ph.D. research qualified as ``fundamental research'' 
under Sec. 734.8 of this part. If not, however, you will need to obtain 
a license or qualify for a License Exception before you can send a copy 
out of the country.
    Question A(7): We sell electronically recorded information, 
including software and databases, at wholesale and retail. Our products 
are available by mail order to any member of the public, though intended 
for specialists in various fields. They are priced to maximize sales to 
persons in those fields. Do we need a license to sell our products to 
foreign customers?
    Answer: You would not need a license for otherwise controlled 
technology or software if the technology and software are made publicly 
available at a price that does not exceed the cost of production and 
distribution to the technical community. Even if priced at a higher 
level, the export or reexport of the technology or software source code 
in a library accessible to the public is not subject to the EAR 
(Sec. 734.7(a) of this part).

                         Section B: Conferences

    Question B(1): I have been invited to give a paper at a prestigious 
international scientific conference on a subject listed as requiring a 
license under the EAR to all countries, except Canada. Scientists in the 
field are given an opportunity to submit applications to attend. 
Invitations are given to those judged to be the leading researchers in 
the field, and attendance is by invitation only. Attendees will be free 
to take notes, but not make electronic or verbatim recordings of the 
presentations or discussions. Some of the attendees will be foreigners. 
Do I need a license to give my paper?
    Answer: No. Release of information at an open conference and 
information that has been released at an open conference is not subject 
to the EAR. The conference you describe fits the definition of an open 
conference (Sec. 734.7(d) of this part).
    Question B(2): Would it make any difference if there were a 
prohibition on making any notes or other personal record of what 
transpires at the conference?
    Answer: Yes. To qualify as an ``open'' conference, attendees must be 
permitted to take notes or otherwise make a personal record (although 
not necessarily a recording). If note taking or the making of personal 
records is altogether prohibited, the conference would not be considered 
``open''.
    Question B(3): Would it make any difference if there were also a 
registration fee?
    Answer: That would depend on whether the fee is reasonably related 
to costs and reflects an intention that all interested and technically 
qualified persons should be able to attend (Sec. 734.7(d)(4)(ii) of this 
part).
    Question B(4): Would it make any difference if the conference were 
to take place in another country?
    Answer: No.
    Question B(5): Must I have a license to send the paper I propose to 
present at such a foreign conference to the conference organizer for 
review?
    Answer: No. A license is not required under the EAR to submit papers 
to foreign organizers of open conferences or other open gatherings with 
the intention that the papers will be delivered at the conference, and 
so made publicly available, if favorably received. The submission of the 
papers is not subject to the EAR (Sec. 734.7(d)(4)(iii) of this part).
    Question B(6): Would the answers to any of the foregoing questions 
be different if my work were supported by the Federal Government?
    Answer: No. You may export and reexport the papers, even if the 
release of the paper violates any agreements you have made with your 
government sponsor. However, nothing in the EAR relieves you of 
responsibility for conforming to any controls you have agreed to in your 
Federal grant or contract.

                   Section C: Educational Instruction

    Question C(1): I teach a university graduate course on design and 
manufacture of very high-speed integrated circuitry. Many of the

[[Page 156]]

students are foreigners. Do I need a license to teach this course?
    Answer: No. Release of information by instruction in catalog courses 
and associated teaching laboratories of academic institutions is not 
subject to the EAR (Sec. 734.9 of this part).
    Question C(2): Would it make any difference if some of the students 
were from countries to which export licenses are required?
    Answer: No.
    Question C(3): Would it make any difference if I talk about recent 
and as yet unpublished results from my laboratory research?
    Answer: No.
    Question C(4): Even if that research is funded by the Government?
    Answer: Even then, but you would not be released from any separate 
obligations you have accepted in your grant or contract.
    Question C(5): Would it make any difference if I were teaching at a 
foreign university?
    Answer: No.
    Question C(6): We teach proprietary courses on design and 
manufacture of high-performance machine tools. Is the instruction in our 
classes subject to the EAR?
    Answer: Yes. That instruction would not qualify as ``release of 
educational information'' under Sec. 734.9 of this part because your 
proprietary business does not qualify as an ``academic institution'' 
within the meaning of Sec. 734.9 of this part. Conceivably, however, the 
instruction might qualify as ``release at an open * * * seminar, * * * 
or other open gathering'' under Sec. 734.7(d) of this part. The 
conditions for qualification of such a seminar or gathering as ``open'', 
including a fee ``reasonably related to costs (of the conference, not of 
producing the data) and reflecting an intention that all interested and 
technically qualified persons be able to attend,'' would have to be 
satisfied.

 Section D: Research, Correspondence, and Informal Scientific Exchanges

    Question D(1): Do I need a license in order for a foreign graduate 
student to work in my laboratory?
    Answer: Not if the research on which the foreign student is working 
qualifies as ``fundamental research'' under Sec. 734.8 of this part. In 
that case, the research is not subject to the EAR.
    Question D(2): Our company has entered into a cooperative research 
arrangement with a research group at a university. One of the 
researchers in that group is a PRC national. We would like to share some 
of our proprietary information with the university research group. We 
have no way of guaranteeing that this information will not get into the 
hands of the PRC scientist. Do we need to obtain a license to protect 
against that possibility?
    Answer: No. The EAR do not cover the disclosure of information to 
any scientists, engineers, or students at a U.S. university in the 
course of industry-university research collaboration under specific 
arrangements between the firm and the university, provided these 
arrangements do not permit the sponsor to withhold from publication any 
of the information that he provides to the researchers. However, if your 
company and the researchers have agreed to a prohibition on publication, 
then you must obtain a license or qualify for a License Exception before 
transferring the information to the university. It is important that you 
as the corporate sponsor and the university get together to discuss 
whether foreign nationals will have access to the information, so that 
you may obtain any necessary authorization prior to transferring the 
information to the research team.
    Question D(3): My university will host a prominent scientist from 
the PRC who is an expert on research in engineered ceramics and 
composite materials. Do I require a license before telling our visitor 
about my latest, as yet unpublished, research results in those fields?
    Answer: Probably not. If you performed your research at the 
university, and you were subject to no contract controls on release of 
the research, your research would qualify as ``fundamental research'' 
(Sec. 734.8(a) of this part). Information arising during or resulting 
from such research is not subject to the EAR (Sec. 734.3(b)(3) of this 
part).
    You should probably assume, however, that your visitor will be 
debriefed later about anything of potential military value he learns 
from you. If you are concerned that giving such information to him, even 
though permitted, could jeopardize U.S. security interests, the Commerce 
Department can put you in touch with appropriate Government scientists 
who can advise you. Write to Department of Commerce, Bureau of Export 
Administration, P.O. Box 273, Washington, DC 20044.
    Question D(4): Would it make any difference if I were proposing to 
talk with a PRC expert in China?
    Answer: No, if the information in question arose during or resulted 
from the same ``fundamental research.''
    Question D(5): Could I properly do some work with him in his 
research laboratory inside China?
    Answer: Application abroad of personal knowledge or technical 
experience acquired in the United States constitutes an export of that 
knowledge and experience, and such an export may be subject to the EAR. 
If any of the knowledge or experience you export in this way requires a 
license under the EAR,

[[Page 157]]

you must obtain such a license or qualify for a License Exception.
    Question D(6): I would like to correspond and share research results 
with an Iranian expert in my field, which deals with technology that 
requires a license to all destinations except Canada. Do I need a 
license to do so?
    Answer: Not as long as we are still talking about information that 
arose during or resulted from research that qualifies as ``fundamental'' 
under the rules spelled out in Sec. 734.8(a) of this part.
    Question D(7): Suppose the research in question were funded by a 
corporate sponsor and I had agreed to prepublication review of any paper 
arising from the research?
    Answer: Whether your research would still qualify as ``fundamental'' 
would depend on the nature and purpose of the prepublication review. If 
the review is intended solely to ensure that your publications will 
neither compromise patent rights nor inadvertently divulge proprietary 
information that the sponsor has furnished to you, the research could 
still qualify as ``fundamental.'' But if the sponsor will consider as 
part of its prepublication review whether it wants to hold your new 
research results as trade secrets or otherwise proprietary information 
(even if your voluntary cooperation would be needed for it to do so), 
your research would no longer qualify as ``fundamental.'' As used in 
these regulations it is the actual and intended openness of research 
results that primarily determines whether the research counts as 
``fundamental'' and so is not subject to the EAR.
    Question D(8): In determining whether research is thus open and 
therefore counts as ``fundamental,'' does it matter where or in what 
sort of institution the research is performed?
    Answer: In principle, no. ``Fundamental research'' is performed in 
industry, Federal laboratories, or other types of institutions, as well 
as in universities. The regulations introduce some operational 
presumptions and procedures that can be used both by those subject to 
the regulations and by those who administer them to determine with some 
precision whether a particular research activity is covered. Recognizing 
that common and predictable norms operate in different types of 
institutions, the regulations use the institutional locus of the 
research as a starting point for these presumptions and procedures. 
Nonetheless, it remains the type of research, and particularly the 
intent and freedom to publish, that identifies ``fundamental research,'' 
not the institutional locus (Sec. 734.8(a) of this part).
    Question D(9): I am doing research on high-powered lasers in the 
central basic-research laboratory of an industrial corporation. I am 
required to submit the results of my research for prepublication review 
before I can publish them or otherwise make them public. I would like to 
compare research results with a scientific colleague from Vietnam and 
discuss the results of the research with her when she visits the United 
States. Do I need a license to do so?
    Answer: You probably do need a license (Sec. 734.8(d) of this part). 
However, if the only restriction on your publishing any of that 
information is a prepublication review solely to ensure that publication 
would compromise no patent rights or proprietary information provided by 
the company to the researcher your research may be considered 
``fundamental research,'' in which case you may be able to share 
information because it is not subject to the EAR. Note that the 
information will be subject to the EAR if the prepublication review is 
intended to withhold the results of the research from publication.
    Question D(10): Suppose I have already cleared my company's review 
process and am free to publish all the information I intend to share 
with my colleague, though I have not yet published?
    Answer: If the clearance from your company means that you are free 
to make all the information publicly available without restriction or 
delay, the information is not subject to the EAR. (Sec. 734.8(d) of this 
part)
    Question D(11): I work as a researcher at a Government-owned, 
contractor-operated research center. May I share the results of my 
unpublished research with foreign nationals without concern for export 
controls under the EAR?
    Answer: That is up to the sponsoring agency and the center's 
management. If your research is designated ``fundamental research'' 
within any appropriate system devised by them to control release of 
information by scientists and engineers at the center, it will be 
treated as such by the Commerce Department, and the research will not be 
subject to the EAR. Otherwise, you would need to obtain a license or 
qualify for a License Exception, except to publish or otherwise make the 
information public (Sec. 734.8(c) of this part).

                  Section E: Federal Contract Controls

    Question E(1): In a contract for performance of research entered 
into with the Department of Defense (DOD), we have agreed to certain 
national security controls. DOD is to have ninety days to review any 
papers we proposed before they are published and must approve assignment 
of any foreign nationals to the project. The work in question would 
otherwise qualify as ``fundamental research'' section under Sec. 734.8 
of this part. Is the information arising during or resulting from this 
sponsored research subject to the EAR?
    Answer: Under Sec. 734.11 of this part, any export or reexport of 
information resulting from government-sponsored research that is

[[Page 158]]

inconsistent with contract controls you have agreed to will not qualify 
as ``fundamental research'' and any such export or reexport would be 
subject to the EAR. Any such export or reexport that is consistent with 
the controls will continue to be eligible for export and reexport under 
the ``fundamental research'' rule set forth in Sec. 734.8(a) of this 
part. Thus, if you abide by the specific controls you have agreed to, 
you need not be concerned about violating the EAR. If you violate those 
controls and export or reexport information as ``fundamental research'' 
under Sec. 734.8(a) of this part, you may subject yourself to the 
sanctions provided for under the EAR, including criminal sanctions, in 
addition to administrative and civil penalties for breach of contract 
under other law.
    Question E(2): Do the Export Administration Regulations restrict my 
ability to publish the results of my research?
    Answer: The Export Administration Regulations are not the means for 
enforcing the national security controls you have agreed to. If such a 
publication violates the contract, you would be subject to 
administrative, civil, and possible criminal penalties under other law.

                    Section F: Commercial Consulting

    Question F(1): I am a professor at a U.S. university, with expertise 
in design and creation of submicron devices. I have been asked to be a 
consultant for a ``third-world'' company that wishes to manufacture such 
devices. Do I need a license to do so?
    Answer: Quite possibly you do. Application abroad of personal 
knowledge or technical experience acquired in the United States 
constitutes an export of that knowledge and experience that is subject 
to the Export Administration Regulations. If any part of the knowledge 
or experience your export or reexport deals with technology that 
requires a license under the EAR, you will need to obtain a license or 
qualify for a License Exception.

                    Section G: Software 2
---------------------------------------------------------------------------

    \2\ Exporters should note that these provisions do not apply to 
software controlled under the International Traffic in Arms Regulations 
(e.g., certain encryption software).
---------------------------------------------------------------------------

    Question G(1): Is the export or reexport of software in machine 
readable code subject to the EAR when the source code for such software 
is publicly available?
    Answer: If the source code of a software program is publicly 
available, then the machine readable code compiled from the source code 
is software that is publicly available and therefore not subject to the 
EAR.
    Question G(2): Is the export or reexport of software sold at a price 
that does not exceed the cost of reproduction and distribution subject 
to the EAR?
    Answer: Software in machine readable code is publicly available if 
it is available to a community at a price that does not exceed the cost 
of reproduction and distribution. Such reproduction and distribution 
costs may include variable and fixed allocations of overhead and normal 
profit for the reproduction and distribution functions either in your 
company or in a third party distribution system. In your company, such 
costs may not include recovery for development, design, or acquisition. 
In this case, the provider of the software does not receive a fee for 
the inherent value of the software.
    Question G(3): Is the export or reexport of software subject to the 
EAR if it is sold at a price BXA concludes in a classification letter to 
be sufficiently low so as not to subject it to the EAR?
    Answer: In response to classification requests, BXA may choose to 
classify certain software as not subject to the EAR even though it is 
sold at a price above the costs of reproduction and distribution as long 
as the price is nonetheless sufficiently low to qualify for such a 
classification in the judgment of BXA.

                Section H: Available in a Public Library

    Question H(1): Is the export or reexport of information subject to 
the EAR if it is available in a library and sold through an electronic 
or print service?
    Answer: Electronic and print services for the distribution of 
information may be relatively expensive in the marketplace because of 
the value vendors add in retrieving and organizing information in a 
useful way. If such information is also available in a library--itself 
accessible to the public--or has been published in any way, that 
information is ``publicly available'' for those reasons, and the 
information itself continues not to be subject to the EAR even though 
you access the information through an electronic or print service for 
which you or your employer pay a substantial fee.
    Question H(2): Is the export or reexport of information subject to 
the EAR if the information is available in an electronic form in a 
library at no charge to the library patron?
    Answer: Information available in an electronic form at no charge to 
the library patron in a library accessible to the public is information 
publicly available even though the library pays a substantial 
subscription fee for the electronic retrieval service.
    Question H(3): Is the export or reexport of information subject to 
the EAR if the information is available in a library and sold for more 
than the cost of reproduction and distribution?
    Answer: Information from books, magazines, dissertations, papers, 
electronic data bases, and other information available in a library that 
is accessible to the public is not subject to the EAR. This is true even 
if you

[[Page 159]]

purchase such a book at more than the cost of reproduction and 
distribution. In other words, such information is ``publicly available'' 
even though the author makes a profit on your particular purchase for 
the inherent value of the information.

                        Section I: Miscellaneous

    Question I(1): The manufacturing plant that I work at is planning to 
begin admitting groups of the general public to tour the plant 
facilities. We are concerned that a license might be required if the 
tour groups include foreign nationals. Would such a tour constitute an 
export? If so, is the export subject to the EAR?
    Answer: The EAR define exports and reexports of technology to 
include release through visual inspection by foreign nationals of U.S.-
origin equipment and facilities. Such an export or reexport qualifies 
under the ``publicly available'' provision and would not be subject to 
the EAR so long as the tour is truly open to all members of the public, 
including your competitors, and you do not charge a fee that is not 
reasonably related to the cost of conducting the tours. Otherwise, you 
will have to obtain a license, or qualify for a License Exception, prior 
to permitting foreign nationals to tour your facilities (Sec. 734.7 of 
this part).
    Question I(2): Is the export or reexport of information subject to 
the EAR if the information is not in a library or published, but sold at 
a price that does not exceed the cost of reproduction and distribution?
    Answer: Information that is not in a library accessible to the 
public and that has not been published in any way, may nonetheless 
become ``publicly available'' if you make it both available to a 
community of persons and if you sell it at no more than the cost of 
reproduction and distribution. Such reproduction and distribution costs 
may include variable and fixed cost allocations of overhead and normal 
profit for the reproduction and distribution functions either in your 
company or in a third party distribution system. In your company, such 
costs may not include recovery for development, design, or acquisition 
costs of the technology or software. The reason for this conclusion is 
that the provider of the information receives nothing for the inherent 
value of the information.
    Question I(3): Is the export or reexport of information contributed 
to an electronic bulletin board subject to the EAR?
    Answer: Assume each of the following:
    1. Information is uploaded to an electronic bulletin board by a 
person that is the owner or originator of the information;
    2. That person does not charge a fee to the bulletin board 
administrator or the subscribers of the bulletin board; and
    3. The bulletin board is available for subscription to any 
subscriber in a given community regardless of the cost of subscription.
    Such information is ``publicly available'' and therefore not subject 
to the EAR even if it is not elsewhere published and is not in a 
library. The reason for this conclusion is that the bulletin board 
subscription charges or line charges are for distribution exclusively, 
and the provider of the information receives nothing for the inherent 
value of the information.
    Question I(4): Is the export or reexport of patented information 
fully disclosed on the public record subject to the EAR?
    Answer: Information to the extent it is disclosed on the patent 
record open to the public is not subject to the EAR even though you may 
use such information only after paying a fee in excess of the costs of 
reproduction and distribution. In this case the seller does receive a 
fee for the inherent value of the technical data; however, the export or 
reexport of the information is nonetheless not subject to the EAR 
because any person can obtain the technology from the public record and 
further disclose or publish the information. For that reason, it is 
impossible to impose export controls that deny access to the 
information.

[61 FR 12746, Mar. 25, 1996, as amended at 61 FR 68579, Dec. 30, 1996]

Supplement No. 2 to Part 734--Calculation of Values for De Minimis Rules

    (a) Use the following guidelines in determining values for 
establishing exemptions or for submission of a request for 
authorization:
    (1) U.S. content value.
    (i) U.S. content value is the delivered cost to the foreign 
manufacturer of the U.S. origin parts, components, or materials. (When 
affiliated firms have special arrangements that result in lower than 
normal pricing, the cost should reflect ``fair market'' prices that 
would normally be charged to similar, unaffiliated customers.)
    (ii) In calculating the U.S. content value, do not include parts, 
components, or materials that, according to the CCL (part 774 of the 
EAR) and the Country Chart (part 738 of the EAR), could be exported from 
the United States to the new country of destination without a license 
(designated as ``NLR'') or under License Exception GBS (see part 740 of 
the EAR).
    (2) The foreign-made product value is the normal selling price 
f.o.b. factory (excluding value added taxes or excise taxes).
    (3) To determine the value of the U.S.-origin controlled content, 
you should classify the U.S.-origin content on the Commerce Control 
List, determine those items that

[[Page 160]]

would require a license from BXA for reexport to the ultimate 
destination of the foreign-made product if such parts, components, or 
materials were reexported to that destination in the form received, and 
divide the total value of the controlled U.S. parts, components, and 
materials incorporated into the foreign-made item by the sale price of 
the foreign-made item.
    (4) If no U.S. parts, components or materials are incorporated or if 
the incorporated U.S. parts, components, and materials are below the de 
minimis level, then the foreign-made item is not subject to the EAR by 
reason of Sec. 734.4 of this part, the classification of a foreign-made 
item is irrelevant in determining the scope of the EAR, and you should 
skip Step 4 in Sec. 732.2(d) and go on to consider Step 6 in 
Sec. 732.2(f) of the EAR regarding the foreign-produced direct product 
rule.
    (b) One-time report prior to reliance upon the de minimis exclusion. 
Report requirement. Before you may rely upon the de minimis exclusion 
for foreign software and technology commingled with U.S. software or 
technology, you must file a one-time report for the foreign software or 
technology. The report must include the percentage of U.S.-content by 
value and a description of your calculations including relevant values, 
assumptions, and the basis or methodologies for making the percentage 
calculation. The three criteria important to BXA in its review of your 
report will be the export price of the U.S.-content, the assumption 
regarding future sales of software, and the choice of the scope of 
foreign technology. Your methodologies must be based upon the accounting 
standards used in the operation of your business, and you must specify 
that standard in your report. Regardless of the accounting systems, 
standard, or conventions you use in the operation of your business, you 
may not depreciate the fair market values reported or otherwise reduce 
the fair market values by other accounting conventions such as 
depreciation. You may rely upon the de minimis exclusion from the 
commingled rule only to the extent you have reported the relevant 
calculations, values, assumptions, and the basis or methodologies for 
the calculations. These values may be historic or projected. You may 
rely on projected values only to the extent that and for so long as they 
remain consistent with your report or future values reduce the U.S.-
content under your reported assumptions, basis, and methodologies. You 
are not required to file the above report if you do not choose to take 
advantage of the de minimis exclusion from the commingled rule.
    (2) Export price. The report must include a description of the U.S.-
content including its classification on the Commerce Control List, its 
performance characteristics and features, and the method of calculating 
its fair market value. The fair market value shall be the arms-length 
transaction price, if it is available. If an arms-length transaction 
price is unavailable, then the report will describe the valuation method 
chosen to calculate or derive the fair market value. Such methods may 
include comparable market prices or costs of production and 
distribution. This rule does not require calculations based upon any one 
accounting system or U.S. accounting standards. However, you must 
specify the accepted accounting standards you have chosen, and cost-
based methods of valuation must be based upon records you maintain in 
the normal course of business. You should also indicate whether reported 
values are actual arms-length market prices or derived from comparable 
transactions or costs of production, overhead, and profit. For example, 
if you chose to make calculations under the transfer pricing rules of 
the United States Internal Revenue Code at section 482, your report 
should indicate that this is the source for your methodology, and you 
should also indicate which of the several methodologies in these 
transfer pricing rules you have chosen.
    (3) Future software sales. For calculations of U.S.-content in 
foreign software, you shall include your estimate of future software 
sales in units and value along with the rationale and basis for those 
estimates in the report.
    (4) Foreign technology and software. For calculations of U.S.-
content in foreign technology and software, you shall include in the 
report a description of the foreign technology or software and a 
description of its fair market value along with the rationale and basis 
for the selection and valuation of such foreign software or technology. 
The report does not require information regarding destinations and end 
users for reexport. The purpose of the report is solely to permit the 
U.S. Government to evaluate the reasonableness of U.S.-content 
calculations.
    (5) Report and wait. If you have not been contacted by BXA 
concerning your report within thirty days after filing the report with 
BXA, you may rely upon the calculations in your report and the de 
minimis exclusions for software and technology for so long as you are 
not contacted by BXA. BXA may contact you concerning your report to 
inquire of you further or to indicate that BXA does not accept the 
assumptions or rationale for your calculations. If you receive such a 
contact or communication from BXA, you may not rely upon the de minimis 
exclusions for software and technology in Sec. 734.4 of this part until 
BXA has indicated whether or not you may do so in the future. You must 
include in your report the name, title, address, telephone number, and 
facsimile number of the person BXA may contact concerning your report.

[[Page 161]]



PART 736--GENERAL PROHIBITIONS--Table of Contents




Sec.
736.1  Introduction.
736.2  General prohibitions and determination of applicability.

Supplement No. 1 to Part 736--General Orders
Supplement No. 2 to Part 736--Administrative Orders

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Executive Order 13026 
(November 15, 1996, 61 FR 58767) Notice of August 15, 1995 (60 FR 42767, 
August 17, 1995); and Notice of August 14, 1996 (61 FR 42527).

    Source: 61 FR 12754, Mar. 25, 1996, unless otherwise noted.



Sec. 736.1  Introduction.

    In this part, references to the EAR are references to 15 CFR chapter 
VII, subchapter C. A person may undertake transactions subject to the 
EAR without a license or other authorization, unless the regulations 
affirmatively state such a requirement. As such, if an export, reexport, 
or activity is subject to the EAR, the general prohibitions contained in 
this part and the License Exceptions specified in part 740 of the EAR 
must be reviewed to determine if a license is necessary. In the case of 
all exports from the United States, you must document your export as 
described in part 762 of the EAR regarding recordkeeping and clear your 
export through the U.S. Customs Service as described in part 758 of the 
EAR regarding export clearance requirements. Also note that for short 
supply controls all prohibitions and License Exceptions are in part 754 
of the EAR.
    (a) In this part we tell you:
    (1) The facts that make your proposed export, reexport, or conduct 
subject to these general prohibitions, and
    (2) The ten general prohibitions.
    (b) Your obligations under the ten general prohibitions and under 
the EAR depend in large part upon the five types of information 
described in Sec. 736.2(a) of this part and upon the general 
prohibitions described in Sec. 736.2(b) of this part. The ten general 
prohibitions contain cross-references to other parts of the EAR that 
further define the breadth of the general prohibitions. For that reason, 
this part is not freestanding. In part 732, we provide certain steps you 
may follow in proper order to help you understand the general 
prohibitions and their relationship to other parts of the EAR.
    (c) If you violate any of these ten general prohibitions, or engage 
in other conduct contrary to the Export Administration Act, the EAR, or 
any order, license, License Exception, or authorization issued 
thereunder, as described in part 764 of the EAR regarding enforcement, 
you will be subject to the sanctions described in that part.



Sec. 736.2  General prohibitions and determination of applicability.

    (a) Information or facts that determine the applicability of the 
general prohibitions. The following five types of facts determine your 
obligations under the ten general prohibitions and the EAR generally:
    (1) Classification of the item. The classification of the item on 
the Commerce Control List (see part 774 of the EAR);
    (2) Destination. The country of ultimate destination for an export 
or reexport (see parts 738 and 774 of the EAR concerning the Country 
Chart and the Commerce Control List);
    (3) End-user. The ultimate end-user (see General Prohibition Four 
(paragraph (b)(4) of this section) and parts 744 and 764 of the EAR for 
a reference to the list of persons you may not deal with);
    (4) End-use. The ultimate end-use (see General Prohibition Five 
(paragraph (b)(5) of this section) and part 744 of the EAR for general 
end-use restrictions); and
    (5) Conduct. Conduct such as contracting, financing, and freight 
forwarding in support of a proliferation project as described in part 
744 of the EAR.
    (b) General prohibitions. The following ten general prohibitions 
describe certain exports, reexports, and other conduct, subject to the 
scope of the EAR, in which you may not engage unless you either have a 
license from the Bureau of Export Administration (BXA) or qualify under 
part 740 of the EAR for a License Exception from each applicable general 
prohibition in this paragraph. The License Exceptions at part 740 of the 
EAR apply only to General

[[Page 162]]

Prohibitions One (Exports and Reexports in the Form Received), Two 
(Parts and Components Reexports), and Three (Foreign-Produced Direct 
Product Reexports); however, selected License Exceptions are 
specifically referenced and authorized in part 746 of the EAR concerning 
embargo destinations and in Sec. 744.2(c) of the EAR regarding nuclear 
end-uses.
    (1) General Prohibition One--Export and reexport of controlled items 
to listed countries (Exports and Reexports). You may not, without a 
license or License Exception, export any item subject to the EAR to 
another country or reexport any item of U.S.-origin if each of the 
following is true:
    (i) The item is controlled for a reason indicated in the applicable 
Export Control Classification Number (ECCN), and
    (ii) Export to the country of destination requires a license for the 
control reason as indicated on the Country Chart at part 738 of the EAR. 
(The scope of this prohibition is determined by the correct 
classification of your item and the ultimate destination as that 
combination is reflected on the Country Chart.) 1 Note that 
each License Exception described at part 740 of the EAR supersedes 
General Prohibition One if all terms and conditions of a given License 
Exception are met by the exporter or reexporter.
---------------------------------------------------------------------------

    \1\ See part 738 of the EAR for selected controls that are not 
specified on the Country Chart.
---------------------------------------------------------------------------

    (2) General Prohibition Two--Reexport and export from abroad of 
foreign-made items incorporating more than a de minimis amount of 
controlled U.S. content (Parts and Components Reexports). (i) You may 
not, without a license or License Exception, export, reexport or export 
from abroad any foreign-made commodity, software, or technology 
incorporating U.S.-origin commodities, software, or technology 
respectively that is controlled to the country of ultimate destination 
if the foreign-made item meets all three of the following conditions:
    (A) It incorporates more than the de minimis amount of controlled 
U.S. content, as defined in Sec. 734.4 of the EAR concerning the scope 
of the EAR;
    (B) It is controlled for a reason indicated in the applicable ECCN; 
and
    (C) Its export to the country of destination requires a license for 
that control reason as indicated on the Country Chart. (The scope of 
this prohibition is determined by the correct classification of your 
foreign-made item and the ultimate destination, as that combination is 
reflected on the Country Chart.)
    (ii) Each License Exception described at part 740 of the EAR 
supersedes General Prohibition One if all terms and conditions of a 
given License Exception are met by the exporter or reexporter.
    (3) General Prohibition Three--Reexport and export from abroad of 
the foreign-produced direct product of U.S. technology and software 
(Foreign-Produced Direct Product Reexports). (i) Country scope of 
prohibition. You may not export, reexport, or export from abroad items 
subject to the scope of this General Prohibition Three to Cuba, North 
Korea, Libya, or a destination in Country Group D:1 (See Supplement No. 
1 to part 740 of the EAR).
    (ii) Product scope of foreign-made items subject to prohibition. 
This General Prohibition 3 applies if an item meets either the 
Conditions defining the direct product of technology or the Conditions 
defining the direct product of a plant in paragraph (b)(3)(ii)(A) of 
this section:
    (A) Conditions defining direct product of technology. Foreign-made 
items are subject to this General Prohibition 3 if they meet both of the 
following conditions:
    (1) They are the direct product of technology or software that 
requires a written assurance as a supporting document for a license or 
as a precondition for the use of License Exception TSR in Sec. 740.6 of 
the EAR, and
    (2) They are subject to national security controls as designated on 
the applicable ECCN of the Commerce Control List at part 774 of the EAR.
    (B) Conditions defining direct product of a plant. Foreign-made 
items are also subject to this General Prohibition 3 if they are the 
direct product of a complete plant or any major component of a plant if 
both of the following conditions are met:

[[Page 163]]

    (1) Such plant or component is the direct product of technology that 
requires a written assurance as a supporting document for a license or 
as a precondition for the use of License Exception TSR in Sec. 740.6 of 
the EAR, and
    (2) Such foreign-made direct products of the plant or component are 
subject to national security controls as designated on the applicable 
ECCN of the Commerce Control List at part 774 of the EAR.
    (iii) License Exceptions. Each License Exception described at part 
740 of the EAR supersedes this General Prohibition Three if all terms 
and conditions of a given exception are met by the exporter or 
reexporter.
    (4) General Prohibition Four (Denial Orders)--Engaging in actions 
prohibited by a denial order. (i) You may not take any action that is 
prohibited by a denial order issued under part 766 of the EAR, 
Administrative Enforcement Proceedings. These orders prohibit many 
actions in addition to direct exports by the person denied export 
privileges, including some transfers within a single country either in 
the United States or abroad by other persons. You are responsible for 
ensuring that any of your transactions in which a person who is denied 
export privileges is involved do not violate the terms of the order. The 
names of persons denied export privileges are published in the Federal 
Register and are also included on the Denied Persons List, which is 
referenced in Supplement No. 2 to part 764 of the EAR, Enforcement. The 
terms of the standard denial order are set forth in Supplement No. 1 to 
part 764. You should note that some denial orders differ from the 
standard denial order. BXA may, on an exceptional basis, authorize 
activity otherwise prohibited by a denial order. See Sec. 764.3(a)(3) of 
the EAR.
    (ii) There are no License Exceptions described in part 740 of the 
EAR that authorize conduct prohibited by this General Prohibition Four.
    (5) General Prohibition Five--Export or reexport to prohibited end-
uses or end-users (End-Use End-User). You may not, without a license, 
knowingly export or reexport any item subject to the EAR to an end-user 
of end-use that is prohibited by part 744 of the EAR.
    (6) General Prohibition Six--Export or reexport to embargoed 
destinations (Embargo). (i) You may not, without a license or License 
Exception authorized under part 746, export or reexport any item subject 
to the EAR to a country that is embargoed by the United States or 
otherwise made subject to controls as both are described at part 746 of 
the EAR.
    (ii) License Exceptions to this General Prohibition Six are 
described at part 746 of the EAR on Embargoes and Other Special 
Controls; and unless a License Exception is authorized in part 746 of 
the EAR, the License Exceptions at part 740 of the EAR are not available 
to overcome this general prohibition.
    (7) General Prohibition Seven--Support of Certain Activities by U.S. 
persons--(i) Support of Proliferation Activities (U.S. Person 
Proliferation Activity). If you are a U.S. Person as that term is 
defined in Sec. 744.6(c) of the EAR, you may not engage in any 
activities prohibited by Sec. 744.6 (a) or (b) of the EAR which 
prohibits the performance, without a license from BXA, of certain 
financing, contracting, service, support, transportation, freight 
forwarding, or employment that you know will assist in certain 
proliferation activities described further in part 744 of the EAR. There 
are no License Exceptions to this General Prohibition Seven in part 740 
of the EAR unless specifically authorized in that part.
    (ii) You may not, without a license from BXA, provide certain 
technical assistance to foreign persons with respect to encryption 
items, as described in Sec. 744.9 of the EAR.
    (8) General Prohibition Eight--In transit shipments and items to be 
unladen from vessels or aircraft (Intransit). (i) Unlading and shipping 
in transit. You may not export an item through or transit through a 
country listed in (b)(8)(ii) of this section unless a License Exception 
or license authorizes such an export directly to such a country of 
transit.
    (ii) Country scope. This General Prohibition Eight applies to 
Albania, Armenia, Azerbaijan, Belarus, Bulgaria, Cambodia, Cuba, 
Estonia, Georgia, Kazakhstan, Kyrgyzstan, Laos, Latvia, Lithuania, 
Mongolia, North Korea, Russia, Tajikistan, Turkmenistan, Ukraine, 
Uzbekistan, Vietnam.

[[Page 164]]

    (9) General Prohibition Nine--Violation of any order, terms, and 
conditions (Orders, Terms, and Conditions). You may not violate terms or 
conditions of a license or of a License Exception issued under or made a 
part of the EAR, and you may not violate any order issued under or made 
a part of the EAR. There are no License Exceptions to this General 
Prohibition Nine in part 740 of the EAR. Supplements Nos. 1 and 2 to 
this part provide for certain General Orders and Administrative Orders.
    (10) General Prohibition Ten--Proceeding with transactions with 
knowledge that a violation has occurred or is about to occur (Knowledge 
Violation to Occur). You may not sell, transfer, export, reexport, 
finance, order, buy, remove, conceal, store, use, loan, dispose of, 
transfer, transport, forward, or otherwise service, in whole or in part, 
any item subject to the EAR and exported or to be exported with 
knowledge that a violation of the Export Administration Regulations, the 
Export Administration Act or any order, license, License Exception, or 
other authorization issued thereunder has occurred, is about to occur, 
or is intended to occur in connection with the item. Nor may you rely 
upon any license or License Exception after notice to you of the 
suspension or revocation of that license or exception. There are no 
License Exceptions to this General Prohibition Ten in part 740 of the 
EAR.

[61 FR 12754, Mar. 25, 1996, as amended at 61 FR 64274, Dec. 4, 1996; 61 
FR 68579, Dec. 30, 1996]

        Supplement No. 1 to Part 736--General Orders  [Reserved]

           Supplement No. 2 to Part 736--Administrative Orders

    Administrative Order One: Disclosure of License Issuance and Other 
Information. Consistent with section 12(c) of the Export Administration 
Act of 1979, as amended, information obtained by the U.S. Department of 
Commerce for the purpose of consideration of or concerning license 
applications, as well as related information, will not be publicly 
disclosed without the approval of the Secretary of Commerce. Shipper's 
Export Declarations also are exempt from public disclosure, except with 
the approval of the Secretary of Commerce, in accordance with 
Sec. 301(g) of Title 13, United States Code.
    Administrative Order Two: Conduct of Business and Practice in 
Connection with Export Control Matters.
    (a) Conduct of business and practice in connection with export 
control matters.
    (1) Exclusion of persons guilty of unethical conduct or not 
possessing required integrity and ethical standards.
    (i) Who may be excluded. Any person, whether acting on his own 
behalf or on behalf of another, who shall be found guilty of engaging in 
any unethical activity or who shall be demonstrated not to possess the 
required integrity and ethical standards, may be excluded from (denied) 
export privileges on his own behalf, or may be excluded from practice 
before BXA on behalf of another, in connection with any export control 
matter, or both, as provided in part 764 of the EAR.
    (ii) Grounds for exclusion. Among the grounds for exclusion are the 
following:
    (A) Inducing or attempting to induce by gifts, promises, bribes, or 
otherwise, any officer or employee of BXA or any customs or post office 
official, to take any action with respect to the issuance of licenses or 
any other aspects of the administration of the Export Administration 
Act, whether or not in violation of any regulation;
    (B) Offering or making gifts or promises thereof to any such officer 
or employee for any other reason;
    (C) Soliciting by advertisement or otherwise the handling of 
business before BXA on the representation, express or implied, that such 
person, through personal acquaintance or otherwise, possesses special 
influence over any officer or employee of BXA;
    (D) Charging, or proposing to charge, for any service performed in 
connection with the issuance of any license, any fee wholly contingent 
upon the granting of such license and the amount or value thereof. This 
provision will not be construed to prohibit the charge of any fee agreed 
to by the parties; provided that the out-of-pocket expenditures and the 
reasonable value of the services performed, whether or not the license 
is issued and regardless of the amount thereof, are fairly compensated; 
and
    (E) Knowingly violating or participating in the violation of, or an 
attempt to violate, any regulation with respect to the export of 
commodities or technical data, including the making of or inducing 
another to make any false representations to facilitate any export in 
violation of the Export Administration Act or any order or regulation 
issued thereunder.
    (iii) Definition. As used in this Administration Order, the terms 
``practice before BXA'' and ``appear before BXA'' include:
    (A) The submission on behalf of another of applications for export 
licenses or other documents required to be filed with BXA, or the 
execution of the same;

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    (B) Conferences or other communications on behalf of another with 
officers or employees of BXA for the purpose of soliciting or expediting 
approval by BXA of applications for export licenses or other documents, 
or with respect to quotas, allocations, requirements or other export 
control actions, pertaining to matters within the jurisdiction of BXA;
    (C) Participating on behalf of another in any proceeding pending 
before BXA; and
    (D) Submission to a customs official on behalf of another of a 
license or Shipper's Export Declaration or other export control 
document.
    (iv) Proceedings. All proceedings under this Administrative Order 
shall be conducted in the same manner as provided in part 766 of the 
EAR.
    (2) Employees and former employees. Persons who are or at any time 
have been employed on a full-time or part-time, compensated or 
uncompensated, basis by the U.S. Government are subject to the 
provisions of 18 U.S.C. 203, 205, and 207 (Pub. L. 87-849, 87th 
Congress) in connection with representing a private party or interest 
before the U.S. Department of Commerce in connection with any export 
control matter.



PART 738--COMMERCE CONTROL LIST OVERVIEW AND THE COUNTRY CHART--Table of Contents




Sec.
738.1  Introduction.
738.2  Commerce Control List (CCL) structure.
738.3  Commerce Country Chart structure.
738.4  Determining whether a license is required.

Supplement No. 1 to Part 738--Commerce Country Chart

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 10 
U.S.C. 7420; 10 U.S.C. 7430(e); 18 U.S.C. 2510 et seq.; 22 U.S.C. 287c; 
22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; Sec. 201, Pub. L. 104-58, 109 
Stat. 557 (30 U.S.C. 185(s)); 30 U.S.C. 185(u); 42 U.S.C. 2139a; 42 
U.S.C. 6212; 43 U.S.C. 1354; 46 U.S.C. app. 466c; 50 U.S.C. app. 5; E.O. 
12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Executive Order 13026 
(November 15, 1996, 61 FR 58767); Notice of August 15, 1995 (60 FR 
42767, August 17, 1995); and Notice of August 14, 1996 (61 FR 42527).

    Source: 61 FR 112756, Mar. 25, 1996, unless otherwise noted.



Sec. 738.1  Introduction.

    (a) Commerce Control List scope. (1) In this part, references to the 
EAR are references to 15 CFR chapter VII, subchapter C. The Bureau of 
Export Administration (BXA) maintains the Commerce Control List (CCL) 
within the Export Administration Regulations (EAR), which includes items 
(i.e., commodities, software, and technology) subject to the export 
licensing authority of BXA. The CCL does not include those items 
exclusively controlled for export or reexport by another department or 
agency of the U.S. Government. In instances where agencies other than 
the Department of Commerce administer controls over related items, 
entries in the CCL contain a reference to these controls.
    (2) The CCL is contained in Supplement No. 1 to part 774 of the EAR. 
Supplement No. 2 to part 774 of the EAR contains the General Technology 
and Software Notes relevant to entries contained in the CCL.
    (b) Commerce Country Chart scope. BXA also maintains the Commerce 
Country Chart. The Commerce Country Chart, located in Supplement No. 1 
to part 738, contains licensing requirements based on destination and 
Reason for Control. In combination with the CCL, the Commerce Country 
Chart allows you to determine whether a license is required for items on 
the CCL to any country in the world.



Sec. 738.2  Commerce Control List (CCL) structure.

    (a) Categories. The CCL is divided into 10 categories, numbered as 
follows:

0--Nuclear Materials, Facilities and Equipment and Miscellaneous
1--Materials, Chemicals, ``Microorganisms,'' and Toxins
2--Materials Processing
3--Electronics
4--Computers
5--Telecommunications and Information Security
6--Lasers and Sensors
7--Navigation and Avionics
8--Marine
9--Propulsion Systems, Space Vehicles and Related Equipment

    (b) Groups. Within each category, items are arranged by group. Each 
category contains the same five groups. Each Group is identified by the 
letters A through E, as follows:

A--Equipment, Assemblies and Components
B--Test, Inspection and Production Equipment
C--Materials

[[Page 166]]

D--Software
E--Technology

    (c) Order of review. In order to classify your item against the CCL, 
you should begin with a review of the general characteristics of your 
item. This will usually guide you to the appropriate category on the 
CCL. Once the appropriate category is identified, you should match the 
particular characteristics and functions of your item to a specific 
ECCN. If the ECCN contains a list under the ``Items'' heading, you 
should review the list to determine within which subparagraph(s) your 
items are identified.
    (d) Entries. (1) Composition of an entry. Within each group, 
individual items are identified by an Export Control Classification 
Number (ECCN). Each number consists of a set of digits and a letter. The 
first digit identifies the general category within which the entry falls 
(e.g., 3A001). The letter immediately following this first digit 
identifies under which of the five groups the item is listed (e.g., 
3A001). The second digit differentiates individual entries by 
identifying the type of controls associated with the items contained in 
the entry (e.g., 3A001). Listed below are the Reasons for Control 
associated with this second digit.

0: National Security reasons (including Dual Use and International 
          Munitions List) and Items on the NSG Dual Use Annex and 
          Trigger List
1: Missile Technology reasons
2: Nuclear Nonproliferation reasons
3: Chemical & Biological Weapons reasons
9: Anti-terrorism, Crime Control, Regional Stability, Short Supply, UN 
          Sanctions, etc.

    (i) Since Reasons for Control are not mutually exclusive, numbers 
are assigned in order of precedence. As an example, if an item is 
controlled for both National Security and Missile Technology reasons, 
the entry's third digit will be a ``0''. If the item is controlled only 
for Missile Technology the third digit will be ``1''.
    (ii) The numbers in either the second or third digit (e.g., 3A001) 
serve to differentiate between multilateral and unilateral entries. An 
entry with the number ``9'' as the second digit, identifies the entire 
entry as controlled for a unilateral concern (e.g., 2B991 for anti-
terrorism reasons). If the number ``9'' appears as the third digit, the 
item is controlled for unilateral purposes based on a proliferation 
concern (e.g., 2A292 is controlled for unilateral purposes based on 
nuclear nonproliferation concerns).
    (2) Reading an ECCN. A brief description is provided next to each 
ECCN. Following this description is the actual entry containing 
``License Requirements,'' ``License Exceptions,'' and ``List of Items 
Controlled'' sections. A brief description of each section and its use 
follows:
    (i) License Requirements. This section contains a separate line 
identifying all possible Reasons for Control in order of precedence, and 
two columns entitled ``Control(s)'' and ``Country Chart''.
    (A) The ``Controls'' header identifies all applicable Reasons for 
Control, in order of restrictiveness, and to what extent each applies 
(e.g., to the entire entry or only to certain subparagraphs). Those 
requiring licenses for a larger number of countries and/or items are 
listed first. As you read down the list the number of countries and/or 
items requiring a license declines. Since Reasons for Control are not 
mutually exclusive, items controlled within a particular ECCN may be 
controlled for more than one reason. The following is a list of all 
possible Reasons for Control:

AT  Anti-Terrorism
CB  Chemical & Biological Weapons
CC  Crime Control
EI  Encryption Items
MT  Missile Technology
NS  National Security
NP  Nuclear Nonproliferation
RS  Regional Stability
SS  Short Supply
XP  Computers

    (B) The ``Country Chart'' header identifies, for each applicable 
Reason for Control, a column name and number (e.g., CB Column 1). These 
column identifiers are used to direct you from the CCL to the 
appropriate column identifying the countries requiring a license. 
Consult part 742 of the EAR for an indepth discussion of the licensing 
requirements and policies applicable to each Country Chart column.
    (ii) License Exceptions. This section provides a brief eligibility 
statement

[[Page 167]]

for each ECCN-driven License Exception that may be applicable to your 
transaction, and should be consulted only AFTER you have determined a 
license is required based on an analysis of the entry and the Country 
Chart. The brief eligibility statement in this section is provided to 
assist you in deciding which ECCN-driven License Exception related to 
your particular item and destination you should explore prior to 
submitting an application. The word ``Yes'' (followed in some instances 
by the scope of Yes) appears next to each available ECCN-driven License 
Exception. ``N/A'' will be noted for License Exceptions that are not 
available within a particular entry. If one or more License Exceptions 
appear to apply to your transaction, you must consult part 740 of the 
EAR to review the conditions and restrictions applicable to each 
available License Exception.
    (iii) List of Items Controlled--(A) Units. The unit of measure 
applicable to each entry is identified in the ``Units'' header. Most 
measurements used in the CCL are expressed in metric units with an inch-
pound conversion where appropriate. Note that in some ECCNs the inch-
pound unit will be listed first. In instances where other units are in 
general usage or specified by law, these will be used instead of metric. 
Generally, when there is a difference between the metric and inch-pound 
figures, the metric standard will be used for classification and 
licensing purposes.
    (B) Related definitions. This header identifies, where appropriate, 
definitions or parameters that apply to all items controlled by the 
entry. The information provided in this section is unique to the entry, 
and hence not listed in the definitions contained in part 772 of the 
EAR.
    (C) Related controls. If another U.S. government agency or 
department has export licensing authority over items related to those 
controlled by an entry, a statement is included identifying the agency 
or department along with the applicable regulatory cite. An additional 
cross-reference may be included in instances where the scope of controls 
differs between a CCL entry and its corresponding entry on list 
maintained by the European Union. This information is provided to assist 
readers who use both lists.
    (D) Items. This header contains a positive list of all items 
controlled by a particular entry and must be reviewed to determine 
whether your item is controlled by that entry. In some entries, the list 
is contained within the entry heading. In these entries a note is 
included to direct you to the entry heading.

[61 FR 112756, Mar. 25, 1996, as amended at 61 FR 68579, Dec. 30, 1996]



Sec. 738.3  Commerce Country Chart structure.

    (a) Scope. The Commerce Country Chart (Country Chart) allows you to 
determine, based on the Reason(s) for Control associated with your item, 
if you need a license to export or reexport your item to a particular 
destination. There are only two instances where the chart cannot be used 
for this purpose:
    (1) Items controlled for short supply reasons. Due to the unique 
nature of these controls, entries controlled for Short Supply reasons 
will send you directly to part 754 of the EAR. Part 754 of the EAR is 
self-contained and includes information on licensing requirements, 
licensing policies, and all available License Exceptions, for items 
controlled for Short Supply reasons.
    (2) Unique entries. The following are unique entries where you do 
not need to consult the Country Chart to determine whether a license is 
required.
    (A) ECCNs 0A983 and 5A980. A license is required for all 
destinations of items controlled under these entries. No License 
Exceptions apply. If your item is controlled by 0A983 or 5A980 you 
should proceed directly to part 748 of the EAR for license application 
instructions and Sec. 742.11 or Sec. 742.13 of the EAR for information 
on the licensing policy relevant to these types of applications.
    (B) ECCNs 0A986, 0A988, 1A988, 2A994, 2D994, 2E994 and 2B985. A 
license is required for items controlled under these entries only to the 
specific countries identified within each entry.
    (b) Countries. The first column of the Country Chart lists all 
countries in alphabetical order. There are a number of destinations that 
are not listed in

[[Page 168]]

the Country Chart contained in Supplement No. 1 to part 738. If your 
destination is not listed on the Country Chart and such destination is a 
territory, possession, or department of a country included on the 
Country Chart, the EAR accords your destination the same licensing 
treatment as the country of which it is a territory, possession, or 
department. For example, if your destination is the Cayman Islands, a 
dependent territory of the United Kingdom, consult the United Kingdom on 
the Country Chart for licensing requirements.
    (c) Columns. Stretching out to the right are horizontal headers 
identifying the various Reasons for Control. Under each Reason for 
Control header are diagonal column identifiers capping individual 
columns. Each column identifier consists of the two letter Reason for 
Control and a column number. (e.g., CB Column 1). The column identifiers 
correspond to those listed in the ``Country Chart'' header within the 
``License Requirements'' section of each ECCN.
    (d) Cells. The symbol ``X'' is used to denote licensing requirements 
on the Country Chart. If an ``X'' appears in a particular cell, 
transactions subject to that particular Reason for Control/Destination 
combination require a license. There is a direct correlation between the 
number of ``X''s applicable to your transaction and the number of 
licensing reviews your application will undergo.



Sec. 738.4  Determining whether a license is required.

    (a) Using the CCL and the Country Chart--(1) Overview. Once you have 
determined that your item is controlled by a specific ECCN, you must use 
information contained in the ``License Requirements'' section of that 
ECCN in combination with the Country Chart to decide whether a license 
is required.
    (2) License decision making process. The following decision making 
process must be followed in order to determine whether a license is 
required to export or reexport a particular item to a specific 
destination:
    (i) Examine the appropriate ECCN in the CCL. Is the item you intend 
to export or reexport controlled for a single Reason for Control?
    (A) If yes, identify the single Reason for Control and the relevant 
Country Chart column identifier (e.g., CB Column 1).
    (B) If no, identify the Country Chart column identifier for each 
applicable Reason for Control (e.g., NS Column 1, NP Column 1, etc.).
    (ii) Review the Country Chart. With each of the applicable Country 
Chart Column identifiers noted, turn to the Country Chart (Supplement 
No. 1 to part 738). Locate the correct Country Chart column identifier 
on the diagonal headings, and determine whether an ``X'' is marked in 
the cell next to the country in question for each Country Chart column 
identified in the applicable ECCN. If your item is subject to more than 
one reason for control, repeat this step using each unique Country Chart 
column identifier.
    (A) If yes, a license application must be submitted based on the 
particular reason for control and destination, unless a License 
Exception applies. If ``Yes'' is noted next to any of the listed License 
Exceptions, you should consult part 740 of the EAR to determine whether 
you can use any of the available ECCN-drvien License Exceptions to 
effect your shipment, rather than applying for a license. Each 
affirmative license requirement must be overcome by a License Exception. 
If you are unable to qualify for a License Exception based on each 
license requirement noted on the Country Chart, you must apply for a 
license. Note that other License Exceptions, not related to the CCL, may 
also apply to your transaction (See part 740 of the EAR).
    (B) If no, a license is not required based on the particular reason 
for control and destination. Provided General Prohibitions Four through 
Ten do not apply to your proposed transaction, you may effect your 
shipment using the symbol ``NLR''. Proceed to parts 758 and 762 of the 
EAR for information on export clearance procedures and recordkeeping 
requirements. Note that although you may stop after determining a 
license is required based on the first Reason for Control, it is best to 
work through each applicable Reason for

[[Page 169]]

Control. A full analysis of every possible licensing requirement based 
on each applicable Reason for Control is required to determine the most 
advantageous License Exception available for your particular transaction 
and, if a license is required, ascertain the scope of review conducted 
by BXA on your license application.
    (b) Sample analysis using the CCL and Country Chart--(1) Scope. The 
following sample entry and related analysis is provided to illustrate 
the type of thought process you must complete in order to determine 
whether a license is required to export or reexport a particular item to 
a specific destination using the CCL in combination with the Country 
Chart.
    (2) Sample CCL entry.

2A000:  Entry heading.

License Requirements

Reason for Control: NS, NP, AT

------------------------------------------------------------------------
                 Control(s)                         Country Chart       
------------------------------------------------------------------------
NS applies to entire entry.................  NS Column 2                
NP applies to 2A000.b......................  NP Column 1                
AT applies to entire entry.................  AT Column 1                
------------------------------------------------------------------------

License Exceptions

LVS: $5,000
GBS: Yes
CIV: N/A

List of Items Controlled

Unit: Number
Related Definition: N/A
Related Controls: N/A
Items:

    a. Having x.
    b. Having z.

    (3) Sample analysis. After consulting the CCL, I determine my item, 
valued at $10,000, is classified under ECCN 2A000.a. I read that the 
entire entry is controlled for national security, and anti-terrorism 
reasons. Since my item is classified under paragraph .a, and not .b, I 
understand that though nuclear nonproliferation controls apply to a 
portion the entry, they do not apply to my item. I note that the 
appropriate Country Chart column identifiers are NS Column 2 and AT 
Column 1. Turning to the Country Chart, I locate my specific 
destination, India, and see that an ``X'' appears in the NS Column 2 
cell for India, but not in the AT Column 1 cell. I understand that a 
license is required, unless my transaction qualifies for a License 
Exception or Special Comprehensive License. From the License Exception 
LVS value listed in the entry, I know immediately that my proposed 
transaction exceeds the value limitation associated with LVS. Noting 
that License Exception GBS is ``Yes'' for this entry, I turn to part 740 
of the EAR to review the provisions related to use of GBS.

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PART 740--LICENSE EXCEPTIONS--Table of Contents




Sec.
740.1  Introduction.
740.2  Restrictions on all License Exceptions.
740.3  Shipments of limited value (LVS).
740.4  Shipments to Country Group B countries (GBS).
740.5  Civil end-users (CIV).
740.6  Technology and software under restriction (TSR).
740.7  Computers (CTP).
740.8  Key management infrastructure.
740.9  Temporary imports, exports, and reexports (TMP).
740.10  Servicing and replacement of parts and equipment (RPL).
740.11  Governments and international organizations (GOV).
740.12  Gift parcels and humanitarian donations (GFT).
740.13  Technology and software--unrestricted (TSU).
740.14  Baggage (BAG).
740.15  Aircraft and vessels (AVS).
740.16  Additional Permissive Reexports (APR).

Supplement No. 1 to Part 740--Country Groups
Supplement No. 2 to Part 740--Items That May Be Donated to Meet Basic 
          Human Needs Under the Humanitarian License Exception

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Executive Order 13026 
(November 15, 1996, 61 FR 58767) Notice of August 15, 1995 (60 FR 42767, 
August 17, 1995); and Notice of August 14, 1996 (61 FR 42527).

    Source: 61 FR 12768, Mar. 25, 1996, unless otherwise noted.



Sec. 740.1  Introduction.

    In this part, references to the EAR are references to 15 CFR chapter 
VII, subchapter C.
    (a) Scope. A ``License Exception'' is an authorization contained in 
this part that allows you to export or reexport, under stated 
conditions, items subject to the Export Administration Regulations (EAR) 
that would otherwise require a license under General Prohibitions One, 
Two, or Three, as indicated under one or more of the Export Control 
Classification Numbers (ECCN) in the Commerce Control List (CCL) in part 
774 of the EAR. If your export or reexport is subject to General 
Prohibition Six for embargoed destinations, refer to part 746 of the EAR 
concerning embargoed destinations to determine the availability of any 
License Exception. Special commodity controls apply to short supply 
items. Exceptions for items listed on the CCL as controlled for Short 
Supply reasons are found in part 754 of the EAR. If your export or 
reexport is subject General Prohibition Seven, consult part 744 of the 
EAR. If your export or reexport is subject to General Prohibitions Four, 
Five, Eight, Nine, or Ten, then no License Exceptions apply.
    (b) Certification. By using any of the License Exceptions you are 
certifying that the terms, provisions, and conditions for the use of the 
License Exception described in the EAR have been met. Please refer to 
part 758 of the EAR for clearance of shipments and documenting the use 
of License Exceptions.
    (c) License Exception symbols. Each License Exception bears a three 
letter symbol that will be used for export clearance purposes (see 
paragraph (d) of this section).
    (d) Shipper's Export Declaration--(1) Clearing exports under License 
Exceptions. You must enter on any required Shipper's Export Declaration 
(SED) the letter code (e.g., LVS, TMP) of the License Exception(s) under 
which you are exporting. In the case of License Exceptions LVS, GBS, and 
CIV, the ECCN of the item being exported must also be entered. Please 
refer to Sec. 758.3 of the EAR for the use of SEDs.
    (2) Clearing exports when no license is required (NLR). Certain 
items are listed on the CCL but do not require a license to certain 
destinations under General Prohibitions One, (Exports and Reexports in 
the Form Received), Two (Parts and Components Reexports), or Three 
(Foreign Produced Direct Product Reexports) (Sec. 732.6 (b)(1), (b)(2), 
or (b)(3) of the EAR). (You will have determined this by consulting the 
Country Chart and finding no ``X'' in the box(es) at the intersection(s) 
of your country of destination and the column headings assigned to your 
item by the CCL.) If General Prohibitions Four through Ten (Sec. 732.6 
(b)(4) through (b)(10) of the EAR) also do not apply, you must clear 
exports of such items by entering the symbol ``NLR'' in the

[[Page 179]]

appropriate place on the Shippers Export Declaration. The term ``NLR'' 
represents exports of listed items when no license is required. Such 
exports do not require that you qualify for a License Exception.
    (e) Destination Control Statement. You may be required to enter an 
appropriate Destination Control Statement on commercial documents in 
accordance with the Destination Control Statement requirements of 
Sec. 758.5 of the EAR.
    (f) Recordkeeping. Records of transactions involving exports under 
any of the License Exceptions must be maintained in accordance with the 
recordkeeping requirements of part 762 of the EAR.

[61 FR 12768, Mar. 25, 1996, as amended at 61 FR 64274, Dec. 4, 1996]



Sec. 740.2  Restrictions on all License Exceptions.

    (a) You may not use any License Exception if any one or more of the 
following apply:
    (1) Your authorization to use a License Exception has been suspended 
or revoked, or your intended export does not qualify for a License 
Exception.
    (2) The export is contrary to a Denial Order. See part 764 of the 
EAR for a description of Denial Orders.
    (3) You know that the item will be reexported and such reexport is 
subject to one of the ten General Prohibitions, is not eligible for a 
License Exception, and has not been authorized by BXA.
    (4) You know that the export will be used for certain end-uses or is 
for certain end-users as provided and prohibited in part 744 of the EAR.
    (5) The item is for surreptitious interception of wire or oral 
communications controlled under ECCN 5A980, unless you are a U.S. 
Government agency (see Sec. 740.10(b)(2)(ii) of this part, Governments 
(License Exception GOV)).
    (6) The commodity you are shipping is a specially designed crime 
control and detection instrument or equipment as described in Sec. 742.7 
of the EAR and you are not shipping to Iceland, New Zealand, or 
countries listed in Country Group A:1 (see Supplement No. 1 to part 
740), unless the shipment is authorized under License Exception BAG, 
Sec. 740.13(e) of this part (shotguns and shotgun shells).
    (b) All License Exceptions are subject to revision, suspension, or 
revocation, in whole or in part, without notice. It may be necessary for 
BXA to stop a shipment or an export transaction at any stage of its 
progress, e.g., in order to prevent an unauthorized export or reexport. 
If a shipment is already en route, it may be further necessary to order 
the return or unloading of the shipment at any port of call.

[61 FR 12768, Mar. 25, 1996, as amended at 61 FR 64274, Dec. 4, 1996]



Sec. 740.3  Shipments of limited value (LVS).

    (a) Scope. License Exception LVS authorizes the export and reexport 
in a single shipment of eligible commodities as identified by ``LVS - 
$(value limit)'' on the CCL.
    (b) Eligible Destinations. This License Exception is available for 
all destinations in Country Group B (see Supplement No. 1 to part 740), 
provided that the net value of the commodities included in the same 
order and controlled under the same ECCN entry on the CCL does not 
exceed the amount specified in the LVS paragraph for that entry.
    (c) Definitions--(1) Order. The term order as used in this 
Sec. 740.3 means a communication from a person in a foreign country, or 
that person's representative, expressing an intent to import commodities 
from the exporter. Although all of the details of the order need not be 
finally determined at the time of export, terms relating to the kinds 
and quantities of the commodities to be exported, as well as the selling 
prices of these commodities, must be finalized before the goods can be 
exported under License Exception LVS.
    (2) Net value: for LVS shipments. The actual selling price of the 
commodities that are included in the same order and are controlled under 
the same entry on the CCL, less shipping charges, or the current market 
price of the commodities to the same type of purchaser in the United 
States, whichever is the larger. In determining the actual selling price 
or the current market price of the commodity, the value of containers in 
which the commodity is being exported may be excluded. The value for

[[Page 180]]

LVS purposes is that of the controlled commodity that is being exported, 
and may not be reduced by subtracting the value of any content that 
would not, if shipped separately, be subject to licensing. Where the 
total value of the containers and their contents must be shown on 
Shipper's Export Declarations under one Schedule B Number, the exporter, 
in effecting a shipment under this License Exception, must indicate the 
``net value'' of the contained commodity immediately below the 
description of the commodity.
    (3) Single shipment. All commodities moving at the same time from 
one exporter to one consignee or intermediate consignee on the same 
exporting carrier even though these commodities will be forwarded to one 
or more ultimate consignees. Commodities being transported in this 
manner will be treated as a single shipment even if the commodities 
represent more than one order or are in separate containers.
    (d) Additional eligibility requirements and restrictions--(1) 
Eligible orders. To be eligible for this License Exception, orders must 
meet the following criteria:
    (i) Orders must not exceed the applicable ``LVS'' dollar value 
limits. An order is eligible for shipment under LVS when the ``net 
value'' of the commodities controlled under the same entry on the CCL 
does not exceed the amount specified in the ``LVS'' paragraph for that 
entry. An LVS shipment may include more than one eligible order.
    (ii) Orders may not be split to meet the applicable LVS dollar 
limits. An order that exceeds the applicable LVS dollar value limit may 
not be misrepresented as two or more orders, or split among two or more 
shipments, to give the appearance of meeting the applicable LVS dollar 
value limit. However an order that meets all the LVS eligibility 
requirements, including the applicable LVS dollar value limit, may be 
split among two or more shipments.
    (iii) Orders must be legitimate. Exporters and consignees may not, 
either collectively or individually, structure or adjust orders to meet 
the applicable LVS dollar value limits.
    (2) Restriction on annual value of LVS orders. The total value of 
exports per calendar year to the same ultimate or intermediate consignee 
of commodities classified under a single ECCN may not exceed 12 times 
the LVS value limit for that ECCN; however, there is no restriction on 
the number of shipments provided that value is not exceeded. This annual 
value limit applies to shipments to the same ultimate consignee even 
though the shipments are made through more than one intermediate 
consignee. There is no restriction on the number of orders that may be 
included in a shipment, except that the annual value limit per ECCN must 
not be exceeded.
    (3) Orders where two or more LVS dollar value limits apply. An order 
may include commodities that are controlled under more than one entry on 
the CCL. In this case, the net value of the entire order may exceed the 
LVS dollar value for any single entry on the CCL. However, the net value 
of the commodities controlled under each ECCN entry shall not exceed the 
LVS dollar value limit specified for that entry.

    Example to paragraph (d)(3): An order includes commodities valued at 
$8,000. The order consists of commodities controlled under two ECCN 
entries, each having an LVS value limit of $5000. Commodities in the 
order controlled under one ECCN are valued at $3,500 while those 
controlled under the other ECCN are valued at $4,500. Since the net 
value of the commodities controlled under each entry falls within the 
LVS dollar value limits applicable to that entry, the order may be 
shipped under this License Exception.

    (4) Prohibition against evasion of license requirements. Any 
activity involving the use of this License Exception to evade license 
requirements is prohibited. Such devices include, but are not limited 
to, the splitting or structuring of orders to meet applicable LVS dollar 
value limits, as prohibited by paragraphs (d)(1) (ii) and (iii) of this 
section.
    (e) Reexports. Commodities may be reexported under this License 
Exception, provided that they could be exported from the United States 
to the new country of destination under LVS.

[61 FR 64274, Dec. 4, 1996]



Sec. 740.4  Shipments to Country Group B countries (GBS).

    License Exception GBS authorizes exports and reexports to Country

[[Page 181]]

Group B (see Supplement No. 1 to part 740) of those commodities 
controlled to the ultimate destination for national security reasons 
only and identified by ``GBS--Yes'' on the CCL.

[61 FR 64275, Dec. 4, 1996]



Sec. 740.5  Civil end-users (CIV).

    License Exception CIV authorizes exports and reexports controlled to 
the ultimate destination for national security reasons only and 
identified by ``CIV--Yes'' on the CCL, provided the items are destined 
to civil end-users for civil end-uses in Country Group D:1. (See 
Supplement No. 1 to part 740.) CIV may not be used for exports and 
reexports to military end-users or to known military uses. Such exports 
and reexports will continue to require a license. In addition to 
conventional military activities, military uses include any 
proliferation activities described and prohibited by part 744 of the 
EAR. A license is also required for transfer to military end-users or 
end-uses in eligible countries of items exported under CIV.

[61 FR 64275, Dec. 4, 1996]



Sec. 740.6  Technology and software under restriction (TSR).

    (a) Scope. License Exception TSR permits exports and reexports of 
technology and software controlled to the ultimate destination for 
national security reasons only and identified by ``TSR--Yes'' in entries 
on the CCL, provided the software or technology is destined to Country 
Group B. (See Supplement No. 1 to part 740.) A written assurance is 
required from the consignee before exporting or reexporting under this 
License Exception.
    (1) Required assurance for export of technology. You may not export 
or reexport technology under this License Exception until you have 
received from the importer a written assurance that, without a BXA 
license or License Exception, the importer will not:
    (i) Reexport or release the technology to a national of a country in 
Country Groups D:1 or E:2; or
    (ii) Export to Country Groups D:1 or E:2 the direct product of the 
technology, if such foreign produced direct product is subject to 
national security controls as identified on the CCL (See General 
Prohibition Three, Sec. 736.2(b)(3) of the EAR); or
    (iii) If the direct product of the technology is a complete plant or 
any major component of a plant, export to Country Groups D:1 or E:2 the 
direct product of the plant or major component thereof, if such foreign 
produced direct product is subject to national security controls as 
identified on the CCL or is subject to State Department controls under 
the U.S. Munitions List (22 CFR part 121).
    (2) Required assurance for export of software. You may not export or 
reexport software under this License Exception until you have received 
from the importer a written assurance that, without a BXA license or 
License Exception, the importer will neither:
    (i) Reexport or release the software or the source code for the 
software to a national of a country in Country Groups D:1 or E:2; nor
    (ii) Export to Country Groups D:1 or E:2 the direct product of the 
software, if such foreign produced direct product is subject to national 
security controls as identified on the CCL. (See General Prohibition 
Three, Sec. 736.2(b)(3) of the EAR).
    (3) Form of written assurance. The required assurance may be made in 
the form of a letter or any other written communication from the 
importer, or the assurance may be incorporated into a licensing 
agreement that specifically includes the assurances. An assurance 
included in a licensing agreement is acceptable only if the agreement 
specifies that the assurance will be honored even after the expiration 
date of the licensing agreement. If such a written assurance is not 
received, License Exception TSR is not applicable and a license is 
required. The license application must include a statement explaining 
why assurances could not be obtained.
    (4) Other License Exceptions. The requirements in this License 
Exception do not apply to the export of technology or software under 
other License

[[Page 182]]

Exceptions, or to the export of technology or software included in an 
application for the foreign filing of a patent, provided the filing is 
in accordance with the regulations of the U.S. Patent Office.
    (b) [Reserved]

[61 FR 64275, Dec. 4, 1996]



Sec. 740.7  Computers (CTP).

    (a) Scope. License Exception CTP authorizes exports and reexports of 
digital computers and specially designed components therefor, exported 
or reexported separately or as part of a system for consumption in 
Computer Tier countries as provided by this section. (Related equipment 
controlled under 4A003.d, .f, and .g is authorized under this License 
Exception, only when exported or reexported with these computers as part 
of a system.) You may not use this License Exception to export or 
reexport items that you know will be used to enhance the CTP beyond the 
eligibility limit allowed to your country of destination. When 
evaluating your computer to determine License Exception CTP eligibility, 
use the CTP parameter to the exclusion of other technical parameters for 
computers classified under ECCN 4A003.a, .b and .c, except for 
parameters specified as Missile Technology (MT) concerns or 4A003.e 
(equipment performing analog-to-digital conversions exceeding the limits 
in ECCN 3A001.a.5.a). This License Exception does not authorize the 
export or reexport of graphic accelerators or coprocessors, or computers 
controlled for MT reasons.
    (b) Computer Tier 1--(1) Eligible countries. The countries that are 
eligible to receive exports and reexports under this License Exception 
are Australia, Austria, Belgium, Denmark, Finland, France, Germany, 
Greece, the Holy See, Iceland, Ireland, Italy, Japan, Liechtenstein, 
Luxembourg, Mexico, Monaco, Netherlands, New Zealand, Norway, Portugal, 
San Marino, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
    (2) Eligible computers. The computers eligible for License Exception 
CTP to Tier 1 destinations are those with a CTP greater than 2,000 
Mtops.
    (c) Computer Tier 2--(1) Eligible countries. The countries that are 
eligible to receive exports under this License Exception include Antigua 
and Barbuda, Argentina, Bahamas, Barbados, Bangladesh, Belize, Benin, 
Bhutan, Bolivia, Botswana, Brazil, Brunei, Burkina Faso, Burma, Burundi, 
Cameroon, Cape Verde, Central Africa, Chad, Chile, Colombia, Congo, 
Costa Rica, Cote d'Ivoire, Cyprus, Czech Republic, Dominica, Dominican 
Republic, Ecuador, El Salvador, Equatorial Guinea, Eritrea, Ethiopia, 
Fiji, Gabon, Gambia (The), Ghana, Grenada, Guatemala, Guinea, Guinea-
Bissau, Guyana, Haiti, Honduras, Hong Kong, Hungary, Indonesia, Jamaica, 
Kenya, Kiribati, Korea (Republic of), Lesotho, Liberia, Madagascar, 
Malawi, Malaysia, Maldives, Mali, Malta, Marshall Islands, Mauritius, 
Micronesia (Federated States of), Mozambique, Namibia, Nauru, Nepal, 
Nicaragua, Niger, Nigeria, Palau, Panama, Papua New Guinea, Paraguay, 
Peru, Philippines, Poland, Rwanda, St. Kitts & Nevis, St. Lucia, St. 
Vincent and Grenadines, Sao Tome & Principe, Senegal, Seychelles, Sierra 
Leone, Singapore, Slovak Republic, Slovenia, Solomon Islands, Somalia, 
South Africa, Sri Lanka, Surinam, Swaziland, Taiwan, Tanzania, Togo, 
Tonga, Thailand, Trinidad and Tobago, Tuvalu, Uganda, Uruguay, 
Venezuela, Western Sahara, Western Samoa, Zaire, Zambia, and Zimbabwe.
    (2) Eligible computers. The computers eligible for License Exception 
CTP to Tier 2 destinations are those having a Composite Theoretical 
Performance (CTP) greater than 2000, but equal to or less than 10,000 
Millions of Theoretical Operations Per Second (Mtops).
    (d) Computer Tier 3--(1) Eligible countries. The countries that are 
eligible to receive exports and reexports under this License Exception 
are Afghanistan, Albania, Algeria, Andorra, Angola, Armenia, Azerbaijan, 
Bahrain, Belarus, Bosnia & Herzegovina, Bulgaria, Cambodia, China 
(People's Republic of), Comoros, Croatia, Djibouti, Egypt, Estonia, 
Georgia, India, Israel, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Laos, 
Latvia, Lebanon, Lithuania, Macedonia (The Former Yugoslav Republic of), 
Mauritania, Moldova, Mongolia, Morocco, Oman, Pakistan, Qatar, Romania, 
Russia, Saudi Arabia, Serbia & Montenegro,

[[Page 183]]

Tajikistan, Tunisia, Turkmenistan, Ukraine, United Arab Emirates, 
Uzbekistan, Vanuatu, Vietnam, and Yemen.
    (2) Eligible computers. The computers eligible for License Exception 
CTP to Tier 3 destinations are those having a Composite Theoretical 
Performance (CTP) greater than 2,000 Millions of Theoretical Operations 
Per Second (Mtops), but less than or equal to 7,000 Mtops.
    (3) Eligible exports. Only exports and reexports to permitted end-
users and end-uses located in countries in Computer Tier 3. License 
Exception CTP does not authorize exports and reexports to Computer Tier 
3 for military end-users and end-uses and nuclear, chemical, biological, 
or missile end-users and end-uses defined in part 744 of the EAR. 
Exports and reexports under this License Exception may not be made to 
known military end-users or to known military end-uses or known 
proliferation end-uses or end-users defined in part 744 of the EAR. Such 
exports and reexports will continue to require a license and will be 
considered on a case-by-case basis. Retransfers to military end-users or 
end-uses and defined proliferation end-users and end-uses in eligible 
countries are strictly prohibited without prior authorization.
    (e) Restrictions. (1) Computers eligible for License Exception CTP 
may not be accessed either physically or computationally by nationals of 
Cuba, Iran, Iraq, Libya, North Korea, Sudan or Syria, except commercial 
consignees described in Supplement No. 3 to part 742 of the EAR are 
prohibited only from giving such nationals user-accessible 
programmability.
    (2) Computers eligible for License Exception CTP may not be 
reexported/retransferred without prior authorization from BXA i.e., a 
license, a permissive reexport, another License Exception, or ``No 
License Required''. This restriction must be conveyed to the consignee, 
via the Destination Control Statement, see Sec. 758.6(a)(ii) of the EAR.
    (f) Recordkeeping requirements. In addition to the recordkeeping 
requirements in part 762 of the EAR, you must keep records of each 
export under License Exception CTP. These records will be made available 
to the U.S. Government on request. The records must include the 
following information:
    (1) Date of shipment;
    (2) Name and address of the end-user and each intermediate 
consignee;
    (3) CTP of each computer in shipment;
    (4) Volume of computers in shipment;
    (5) Dollar value of shipment; and
    (6) End-use.

[61 FR 64276, Dec. 4, 1996, as amended at 61 FR 67449, Dec. 23, 1996]



Sec. 740.8  Key management infrastructure.

    (a) Scope. License Exception KMI authorizes the export and reexport 
of certain encryption software and equipment.
    (b) Eligible software and equipment--(1) Recovery encryption items. 
Eligible items are recovery encryption software and equipment controlled 
under ECCNs 5D002 or 5A002 made eligible as a result of a one-time BXA 
review. You may initiate this review by submitting a classification 
request for your product in accordance with paragraph (d)(1) of this 
section.
    (2) Non-recoverable encryption items. Eligible items are 56-bit DES 
or equivalent strength non-key recovery software and equipment 
controlled under ECCNs 5D002 or 5A002 made eligible as a result of a 
one-time BXA review. You may initiate this review by submitting a 
classification request for your product in accordance with paragraph 
(d)(2) of this section.
    (c) Eligible destinations. License Exception KMI is available for 
all destinations, except Cuba, Libya, North Korea, Iraq, Iran, Syria, 
and Sudan.
    (d) Additional eligibility requirements--(1) Recovery encryption 
items. Classification requests for recovery encryption software and 
equipment must meet the following criteria:
    (i) Key escrow and key recovery products. (A) Key escrow and key 
recovery products must meet the criteria identified in Supplement No. 4 
to part 742 of the EAR;
    (B) Key recovery agents must meet the criteria identified in 
Supplement No. 5 to part 742 of the EAR;

[[Page 184]]

    (C) Key recovery agents must implement the security policies and key 
escrow/key recovery procedures identified in Supplement No. 5 to part 
742 of the EAR;
    (D) Key recovery agents must comply with all applicable EAR Record 
keeping requirements, including record retention requirements; and
    (E) Key recovery agents must carry out the key holding obligations 
as approved by BXA, and any violation of any of the key holding 
obligations shall also constitute a violation of the EAR. Note that the 
key recovery agent's continuing compliance with key recovery agent 
requirements and key safeguard procedures is a condition for use of 
License Exception KMI. The exporter or reexporter, whether that person 
is the key recovery agent or not, must submit a new classification 
request to BXA if there are any changes (e.g., termination, replacement, 
additions) to the previously approved key recovery agent.
    (ii) Other recoverable encryption items. Requests for one-time 
review of recoverable products which allow government officials to 
obtain, under proper legal authority and without the cooperation or 
knowledge of the user, the plaintext of the encrypted data and 
communications will receive favorable consideration.
    (2) Non-recoverable encryption items. Upon approval of your 
classification request submitted in accordance with this paragraph 
(d)(2), you will become eligible to use License Exception KMI for six 
months. In order to continue using this License Exception, you must 
renew your eligibility by submitting the progress report described in 
paragraph (d)(2)(ii) of this section. Classification requests for 56-bit 
DES or equivalent strength non-key recovery software and equipment must 
meet the following criteria:
    (i) Initial request must be submitted with a business plan that 
explains in detail the steps the applicant will take during the two-year 
transition period according to the criteria identified in Supplement No. 
7 to part 742 of the EAR;
    (ii) Renewal for use of this License Exception is contingent upon 
progress reports sent to BXA every six months and the applicant's 
adherence to benchmarks and milestones as set forth in the plan 
submitted for the initial classification request.
    (iii) Applicants may inform their authorized distributors that an 
approved classification and plan has been granted to them and the 
distributors' authority to so export or reexport will be for a time 
period ending on the same day the applicant's authority to export or 
reexport ends.
    (e) Reporting requirements. (1) You must provide semiannual reports 
to BXA identifying:
    (i) Ultimate consignee; specific end-user name and address, if 
available; and country of ultimate destination; and
    (ii) Quantities of each encryption item shipped.
    (2) You must submit reports no later than March 1 and no later than 
September 1 of any given year.

[61 FR 68579, Dec. 30, 1996]



Sec. 740.9  Temporary imports, exports, and reexports (TMP).

    This License Exception authorizes various temporary exports and 
reexports; exports and reexports of items temporarily in the United 
States; and exports and reexports of beta test software.
    (a) Temporary exports and reexports--(1) Scope. You may export and 
reexport commodities and software for temporary use abroad (including 
use in international waters) subject to the conditions and exclusions 
described in paragraph (a)(4) of this section. Commodities and software 
shipped as temporary exports or reexports under the provisions of this 
paragraph (a) must be returned to the country from which they were 
exported as soon as practicable but, except in circumstances described 
in this section, no later than one year from the date of export. This 
requirement does not apply if the commodities and software are consumed 
or destroyed in the normal course of authorized temporary use abroad or 
an extension or other disposition is permitted by the EAR or in writing 
by BXA.

[[Page 185]]

    (2) Eligible commodities and software. The following commodities and 
software are eligible to be shipped under this paragraph (a):
    (i) Tools of trade. Usual and reasonable kinds and quantities of 
commodities and software for use by employees of the exporter in a 
lawful enterprise or undertaking of the exporter. Eligible commodities 
and software may include, but are not limited to, such equipment as is 
necessary to commission or service goods, provided that the equipment is 
appropriate for this purpose and that all goods to be commissioned or 
serviced are of foreign origin, or if subject to the EAR, have been 
legally exported or reexported. The commodities and software must remain 
under the effective control of the exporter or the exporter's employee. 
The shipment of commodities and software may accompany the individual 
departing from the United States or may be shipped unaccompanied within 
one month before the individual's departure from the United States, or 
at any time after departure. No tools of the trade may be taken to 
Country Group E:2, and only equipment necessary to commission or service 
goods may be taken as tools of trade to Country Group D:1. (See 
Supplement No. 1 to part 740.)
    (ii) Kits consisting of replacement parts. Kits consisting of 
replacement parts may be exported or reexported to all destinations, 
except Country Group E:2 (see Supplement No. 1 to part 740), provided 
that:
    (A) The parts would qualify for shipment under paragraph 
(a)(2)(ii)(C) of this section if exported as one-for-one replacements;
    (B) The kits remain under effective control of the exporter or an 
employee of the exporter; and
    (C) All parts in the kit are returned, except that one-for-one 
replacements may be made in accordance with the requirements of License 
Exception RPL and the defective parts returned (see ``parts'', 
Sec. 740.9(a) of this part).
    (iii) Exhibition and demonstration in Country Group B. Commodities 
and software for exhibition or demonstration in Country Group B (see 
Supplement No. 1 to part 740) may be exported or reexported under this 
provision provided that the exporter maintains ownership of the 
commodities and software while they are abroad and provided that the 
exporter, an employee of the exporter, or the exporter's designated 
sales representative retains effective control over the commodities and 
software while they are abroad. The commodities and software may not be 
used for their intended purpose while abroad, except to the minimum 
extent required for effective demonstration. The commodities and 
software may not be exhibited or demonstrated at any one site more than 
120 days after installation and debugging, unless authorized by BXA. 
However, before or after an exhibition or demonstration, pending 
movement to another site, return to the United States or the foreign 
reexporter, or BXA approval for other disposition, the commodities and 
software may be placed in a bonded warehouse or a storage facility 
provided that the exporter retains effective control over their 
disposition. The export documentation for this type of transaction must 
show the U.S. exporter as ultimate consignee, in care of the person who 
will have control over the commodities and software abroad.
    (iv) Inspection and calibration. Commodities to be inspected, 
tested, calibrated or repaired abroad.
    (v) Containers. Containers for which another License Exception is 
not available and that are necessary for export of commodities. However, 
this ``containers'' provision does not authorize the export of the 
container's contents, which, if not exempt from licensing, must be 
separately authorized for export under either a License Exception or a 
license.
    (vi) Broadcast material. (A) Video tape containing program material 
recorded in the country of export to be publicly broadcast in another 
country.
    (B) Blank video tape (raw stock) for use in recording program 
material abroad.
    (vii) Assembly in Mexico. Commodities to be exported to Mexico under 
Customs entries that require return to the United States after 
processing, assembly, or incorporation into end products by companies, 
factories, or facilities participating in Mexico's in-bond 
industrialization program (Maquiladora),

[[Page 186]]

provided that all resulting end-products (or the commodities themselves) 
are returned to the United States.
    (viii) News media. (A) Commodities necessary for news-gathering 
purposes (and software necessary to use such commodities) may accompany 
``accredited'' news media personnel (i.e., persons with credentials from 
a news gathering or reporting firm) to Country Groups D:1 or E:2 (see 
Supplement No. 1 to part 740) if the commodities:
    (1) Are retained under ``effective control'' of the exporting news 
gathering firm;
    (2) Remain in the physical possession of the news media personnel. 
The term physical possession for purposes of this paragraph 
(a)(2)(viii), news media, is defined as maintaining effective measures 
to prevent unauthorized access (e.g., securing equipment in locked 
facilities or hiring security guards to protect the equipment); and
    (3) Are removed with the news media personnel at the end of the 
trip.
    (B) When exporting under this paragraph (a)(2)(viii) from the United 
States, the exporter must send a copy of the packing list or similar 
identification of the exported commodities, to: U.S. Department of 
Commerce, Bureau of Export Administration, Office of Enforcement 
Support, Room H4069, 14th Street and Constitution Avenue, N.W., 
Washington, DC 20230, or any of its field offices, specifying the 
destination and estimated dates of departure and return. The Office of 
Export Enforcement (OEE) may spot check returns to assure that the 
temporary exports and reexports provisions of this License Exception are 
being used properly.
    (C) Commodities or software necessary for news-gathering purposes 
that accompany news media personnel to all other destinations shall be 
exported or reexported under paragraph (a)(2)(i), tools of trade, of 
this section if owned by the news gathering firm, or if they are 
personal property of the individual news media personnel. Note that 
paragraphs (a)(2)(i), tools of trade and (a)(2)(viii), news media, of 
this section do not preclude independent ``accredited'' contract 
personnel, who are under control of news gathering firms while on 
assignment, from utilizing these provisions, provided that the news 
gathering firm designate an employee of the contract firm to be 
responsible for the equipment.)
    (3) Special restrictions--(i) Destinations. (A) No commodity or 
software may be exported to Country Group E:2 (see Supplement No. 1 to 
part 740) except as permitted by paragraph (a)(2)(viii), news media, of 
this section;
    (B) No commodity or software may be exported to Country Group D:1 
(see Supplement No. 1 to part 740) except:
    (1) Commodities and software exported under paragraph (a)(2)(viii), 
news media, of this section;
    (2) Commodities and software exported under paragraph (a)(2)(i), 
tools of trade, of this section; and
    (3) Commodities exported as kits of replacement parts, consistent 
with the requirements of paragraph (a)(2)(ii) of this section.
    (C) These destination restrictions apply to temporary exports to and 
for use on any vessel, aircraft or territory under ownership, control, 
lease, or charter by any country in Country Group D:1 or E:2, or any 
national thereof. (See Supplement No. 1 to part 740.)
    (ii) Ineligible commodities or software. Commodities or software 
that will be used outside of Country Group A:1 (see Supplement No. 1 to 
part 740), Iceland, or New Zealand, either directly or indirectly in any 
sensitive nuclear activity as described in Sec. 744.2 of the EAR may not 
be exported or reexported to any destination under the temporary exports 
and reexports provisions of this License Exception.
    (iii) Use or disposition. No commodity or software may be exported 
or reexported under this paragraph (a) if:
    (A) An order to acquire the commodity or software has been received 
before shipment;
    (B) The exporter has prior knowledge that the commodity or software 
will stay abroad beyond the terms described in this paragraph (a); or
    (C) The commodity or software is for lease or rental abroad.
    (4) Return or disposal of commodities and software. All commodities 
and software exported or reexported under these provisions must, if not 
consumed or destroyed in the normal course of authorized temporary use 
abroad, be

[[Page 187]]

returned as soon as practicable but no later than one year after the 
date of export, to the United States or other country from which the 
commodities and software were so exported, or shall be disposed of or 
retained in one of the following ways:
    (i) Permanent export or reexport. If the exporter or the reexporter 
wishes to sell or otherwise dispose of the commodities or software 
abroad, except as permitted by this or other applicable License 
Exception, the exporter must request authorization by submitting a 
license application to BXA at the address listed in part 748 of the EAR. 
(See part 748 of the EAR for more information on license applications.) 
The request should comply with all applicable provisions of the EAR 
covering export directly from the United States to the proposed 
destination. The request must also be supported by any documents that 
would be required in support of an application for export license for 
shipment of the same commodities or software directly from the United 
States to the proposed destination. BXA will advise the exporter of its 
decision.
    (ii) Use of a license. An outstanding license may also be used to 
dispose of commodities or software covered by the provisions of this 
paragraph (a), provided that the outstanding license authorizes direct 
shipment of the same commodity or software to the same new ultimate 
consignee in the new country of destination.
    (iii) Authorization to retain abroad beyond one year. If the 
exporter wishes to retain a commodity or software abroad beyond the 12 
months authorized by paragraph (a) of this section, the exporter must 
request authorization by submitting Form BXA-748P, Multipurpose 
Application, 90 days prior to the expiration of the 12 month period. The 
request must be sent to BXA at the address listed in part 748 of the EAR 
and should include the name and address of the exporter, the date the 
commodities or software were exported, a brief product description, and 
the justification for the extension. If BXA approves the extension 
request, the exporter will receive authorization for a one-time 
extension not to exceed six months. BXA normally will not allow an 
extension for commodities or software that have been abroad more than 12 
months, nor will a second six month extension be authorized. Any request 
for retaining the commodities or software abroad for a period exceeding 
18 months must be made in accordance with the requirements of paragraph 
(a)(4)(i) of this section.
    (5) Reexports. Commodities and software legally exported from the 
United States may be reexported to a new country(ies) of destination 
under this paragraph (a) provided its terms and conditions are met and 
the commodities and software are returned to the country from which the 
reexport occurred.
    (b) Exports of items temporarily in the United States: Scope. The 
provisions of this paragraph (b) describe the conditions for exporting 
foreign-origin items temporarily in the United States. The provisions 
include the export of items moving in transit through the United States, 
imported for display at a U.S. exhibition or trade fair, returned 
because unwanted, or returned because refused entry.

    Note 1 to paragraph (b) of this section: A commodity withdrawn from 
a bonded warehouse in the United States under a ``withdrawal for 
export'' customs entry is considered as ``moving in transit''. It is not 
considered as ``moving in transit'' if it is withdrawn from a bonded 
warehouse under any other type of customs entry or if its transit has 
been broken for a processing operation, regardless of the type of 
customs entry.
    Note 2 to paragraph (b) of this section: Items shipped on board a 
vessel or aircraft and passing through the United States from one 
foreign country to another may be exported without a license provided 
that (a) while passing in transit through the United States, they have 
not been unladen from the vessel or aircraft on which they entered, and 
(b) they are not originally manifested to the United States.)

    (1) Items moving in transit through the United States. Subject to 
the following conditions, the provisions of paragraph (b)(1) of this 
section authorize export of items moving in transit through the United 
States under a Transportation and Exportation (T.& E.) customs entry or 
an Immediate Exportation (I.E.) customs entry made at a U.S. Customs 
Office.

[[Page 188]]

    (i) Items controlled for national security, nuclear proliferation, 
missile technology, or chemical and biological weapons reasons may not 
be exported to Country Group D:1, 2, 3, or 4 (see Supplement No. 1 to 
part 740), respectively, under this paragraph (b)(1).
    (ii) Items may not be exported to Country Group E:2 under this 
paragraph (b)(1).
    (iii) The following may not be exported in transit from the United 
States under Sec. 740.8(b)(1):
    (A) Commodities shipped to the United States under an International 
Import Certificate, Form BXA-645P;
    (B) Chemicals controlled under ECCN 1C350; or
    (C) Horses for export by sea (refer to short supply controls in part 
754 of the EAR).
    (iv) The provisions of paragraph (b)(1) apply to all shipments from 
Canada moving in transit through the United States to any foreign 
destination, regardless of the nature of the commodities or software or 
their origin. For such shipments the customs office at the U.S. port of 
export will require a copy of Form B-13, Canadian Customs Entry, 
certified or stamped by Canadian customs authorities, except where the 
shipment is valued at less than $50.00. (In transit shipments 
originating in Canada that are exempt from U.S. licensing, or made under 
a U.S. license or other applicable U.S. License Exception do not require 
this form.) The commodity or software description, quantity, ultimate 
consignee, country of ultimate destination, and all other pertinent 
details of the shipment must be the same on a required Form B-13, as on 
Commerce Form 7513, or when Form 7513 is not required, must be the same 
as on Customs Form 7512. When there is a material difference, a 
corrected Form B-13 authorizing the shipment is required.
    (2) Items imported for display at U.S. exhibitions or trade fairs. 
Subject to the following conditions, the provisions of this paragraph 
(b)(2) authorize the export of items that were imported into the United 
States for display at an exhibition or trade fair and were either 
entered under bond or permitted temporary free import under bond 
providing for their export and are being exported in accordance with the 
terms of that bond.
    (i) Items may be exported to the country from which imported into 
the United States. However, items originally imported from Cuba or North 
Korea may not be exported unless the U.S. Government had licensed the 
import from that country.
    (ii) Items may be exported to any destination other than the country 
from which imported except:
    (A) Items imported into the United States under an International 
Import Certificate;
    (B) Exports to Country Group E:2 (see Supplement No. 1 to part 740); 
or
    (C) Exports to Country Group D:1, 2, 3, or 4 (see Supplement No. 1 
to part 740) of items controlled for national security, missile 
technology, chemical and biological weapons reasons, or nuclear 
proliferation, respectively.
    (3) Return of unwanted shipments. A foreign-origin item may be 
returned to the country from which it was imported if its 
characteristics and capabilities have not been enhanced while in the 
United States. No foreign-origin items may be returned to Cuba, Libya, 
or North Korea.
    (4) Return of shipments refused entry. Shipments of items refused 
entry by the U.S. Customs Service, the Food and Drug Administration, or 
other U.S. Government agency may be returned to the country of origin, 
except to:
    (i) A destination in Cuba, Libya, or North Korea; or
    (ii) A destination from which the shipment has been refused entry 
because of the Foreign Assets Control Regulations of the Treasury 
Department, unless such return is licensed or otherwise authorized by 
the Treasury Department, Office of Foreign Assets Control (31 CFR part 
500).
    (c) Exports of beta test software--(1) Scope. The provisions of 
paragraph (c) authorize exports and reexports to eligible countries of 
beta test software intended for distribution to the general public.
    (2) Eligible countries. The countries that are eligible to receive 
exports and reexports are all countries except those in Country Group 
E:2.

[[Page 189]]

    (3) Exports of beta test software. All software that is controlled 
by the Commerce Control List (Supplement No. 1 to part 774 of the EAR), 
and under Commerce licensing jurisdiction, is eligible for export and 
reexport, subject to the restrictions of this paragraph, except 
encryption software controlled for EI reasons under ECCN 5D002. Certain 
encryption software may become eligible after a one-time BXA review 
(refer to Sec. 742.15(b)(1) of the EAR).
    (4) Conditions for use. Any beta test software program may be 
exported or reexported to eligible countries if all of the conditions 
under this section are met:
    (i) The software producer intends to market the software to the 
general public after completion of the beta testing, as described in the 
General Software Note found in Supplement No. 2 to part 774 of the EAR;
    (ii) The software producer provides the software to the testing 
consignee free-of-charge or at a price that does not exceed the cost of 
reproduction and distribution; and
    (iii) The software is designed for installation by the end-user 
without further substantial support from the supplier.
    (5) Importer Statement. Prior to shipping any eligible software, the 
exporter or reexporter must obtain the following statement from the 
testing consignee, which may be included in a contract, non-disclosure 
agreement, or other document that identifies the importer, the software 
to be exported, the country of destination, and the testing consignee.

    We certify that this beta test software will only be used for beta 
testing purposes, and will not be rented, leased, sold, sublicensed, 
assigned, or otherwise transferred. Further, we certify that we will not 
transfer or export any product, process, or service that is the direct 
product of the beta test software.

    (6) Use limitations. Only testing consignees that provide the 
importer statement required by paragraph (c)(5) of this section may 
execute any software received.
    (7) Return or disposal of software. All beta test software exported 
must be destroyed abroad or returned to the exporter within 30 days of 
the end of the beta test period as defined by the software producer or, 
if the software producer does not define a test period, within 30 days 
of completion of the consignee's role in the test. Among other methods, 
this requirement may be satisfied by a software module that will destroy 
the software and all its copies at or before the end of the beta test 
period.

[61 FR 64277, Dec. 4, 1996. Redesignated at 61 FR 68579, Dec. 30, 1996, 
as amended at 61 FR 68580, Dec. 30, 1996]



Sec. 740.10  Servicing and replacement of parts and equipment (RPL).

    This License Exception authorizes exports and reexports associated 
with one-for-one replacement of parts or servicing and replacement of 
equipment.
    (a) Parts--(1) Scope. The provisions of this paragraph (a) authorize 
the export and reexport of one-for-one replacement parts for previously 
exported equipment.
    (2) One-for-one replacement of parts. (i) The term replacement parts 
as used in this section means parts needed for the immediate repair of 
equipment, including replacement of defective or worn parts. (It 
includes subassemblies but does not include test instruments or 
operating supplies). (The term subassembly means a number of components 
assembled to perform a specific function or functions within a 
commodity. One example would be printed circuit boards with components 
mounted thereon. This definition does not include major subsystems such 
as those composed of a number of subassemblies.) Items that improve or 
change the basic design characteristics, e.g., as to accuracy, 
capability, performance or productivity, of the equipment upon which 
they are installed, are not deemed to be replacement parts. For kits 
consisting of replacement parts, consult Sec. 740.8(a)(2)(ii) of this 
part.
    (ii) Parts may be exported only to replace, on a one-for-one basis, 
parts contained in commodities that were: legally exported from the 
United States; legally reexported; or made in a foreign country 
incorporating authorized U.S.-origin parts. The conditions of the 
original U.S. authorization must not have been violated. Accordingly, 
the export of replacement parts may be

[[Page 190]]

made only by the party who originally exported or reexported the 
commodity to be repaired, or by a party that has confirmed the 
appropriate authority for the original transaction.
    (iii) The parts to be replaced must either be destroyed abroad or 
returned promptly to the person who supplied the replacement parts, or 
to a foreign firm that is under the effective control of that person.
    (3) Exclusions. (i) No replacement parts may be exported to repair a 
commodity exported under a license if that license included a condition 
that any subsequent replacement parts must be exported only under a 
license.
    (ii) No parts may be exported to be held abroad as spare parts or 
equipment for future use. Replacement parts may be exported to replace 
spare parts that were authorized to accompany the export of equipment, 
as those spare parts are utilized in the repair of the equipment. This 
will allow maintenance of the stock of spares at a consistent level as 
parts are used.
    (iii) No parts may be exported to any destination except Iceland, 
New Zealand, or the countries listed in Country Group A:1 (see 
Supplement No. 1 to part 740) if the item is to be incorporated into or 
used in nuclear weapons, nuclear explosive devices, nuclear testing 
related to activities described in Sec. 744.2(a) of the EAR, the 
chemical processing of irradiated special nuclear or source material, 
the production of heavy water, the separation of isotopes of source and 
special nuclear materials, or the fabrication of nuclear reactor fuel 
containing plutonium, as described in Sec. 744.2(a) of the EAR.
    (iv) No replacement parts may be exported to Cuba, Iran, Iraq, 
Sudan, Syria, Libya, or North Korea (countries designated by the 
Secretary of State as supporting acts of international terrorism) if the 
commodity to be repaired is an ``aircraft'' (as defined in part 772 of 
the EAR) or national security controlled commodity.
    (v) The conditions described in this paragraph (a)(3) relating to 
replacement of parts do not apply to reexports to a foreign country of 
parts as replacements in foreign-origin products, if at the time the 
replacements are furnished, the foreign-origin product is eligible for 
export to such country under any of the License Exceptions in this part 
or the exceptions in Sec. 734.4 of the EAR.
    (4) Reexports. Parts exported from the United States may be 
reexported to a new country of destination, provided that the 
restrictions described in paragraphs (a)(2) and (3) of this section are 
met. A party reexporting U.S.-origin one-for-one replacement parts shall 
ensure that the commodities being repaired were shipped to their present 
location in accordance with U.S. law and continue to be legally used, 
and that either before or promptly after reexport of the replacement 
parts, the replaced parts are either destroyed or returned to the United 
States, or to the foreign firm in Country Group B (see Supplement No. 1 
to part 740) that shipped the replacement parts.
    (b) Servicing and replacement--(1) Scope. The provisions of this 
paragraph (b) authorize the export and reexport of items that were 
returned to the United States for servicing and the replacement of 
defective or unacceptable U.S.-origin commodities and software.
    (2) Commodities and software sent to a United States or foreign 
party for servicing.
    (i) Definition. Servicing as used in this section means inspection, 
testing, calibration or repair, including overhaul and reconditioning. 
The servicing shall not have improved or changed the basic 
characteristics, e.g., as to accuracy, capability, performance, or 
productivity of the commodity or software as originally authorized for 
export or reexport.
    (ii) Return of serviced commodities and software. When the serviced 
commodity or software is returned, it may include any replacement or 
rebuilt parts necessary to its repair and may be accompanied by any 
spare part, tool, accessory, or other item that was sent with it for 
servicing.
    (iii) Commodities and software imported from Country Group D:1 
except the PRC. Commodities and software legally exported or reexported 
to a consignee in Country Group D:1 (except the People's Republic of 
China (PRC)) (see Supplement No. 1 to part 740) that are sent to the 
United States or a foreign party for servicing may be returned to the 
country from which it was sent, provided

[[Page 191]]

that both of the following conditions are met:
    (A) The exporter making the shipment is the same person or firm to 
whom the original license was issued; and
    (B) The end-use and the end-user of the serviced commodities or 
software and other particulars of the transaction, as set forth in the 
application and supporting documentation that formed the basis for 
issuance of the license have not changed.
    (iv) Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria. No 
repaired commodity or software may be exported or reexported to Cuba, 
Iran, Iraq, Libya, North Korea, Sudan, or Syria.
    (3) Replacements for defective or unacceptable U.S.-origin 
equipment. (i) Subject to the following conditions, commodities or 
software may be exported or reexported to replace defective or otherwise 
unusable (e.g., erroneously supplied) items.
    (A) The commodity or software to be replaced must have been 
previously exported or reexported in its present form under a license or 
authorization granted by BXA.
    (B) No commodity or software may be exported or reexported to 
replace equipment that is worn out from normal use, nor may any 
commodity or software be exported to be held in stock abroad as spare 
equipment for future use.
    (C) The replacement item may not improve the basic characteristic, 
e.g., as to accuracy, capability, performance, or productivity, of the 
equipment as originally approved for export or reexport under a license 
issued by BXA.
    (D) No shipment may be made to Cuba, Iran, Iraq, Libya, North Korea, 
Sudan, or Syria, or to any other destination to replace defective or 
otherwise unusable equipment owned or controlled by, or leased or 
chartered to, a national of any of those countries.
    (ii) Special conditions applicable to exports to Country Group B and 
Country Group D:1. (See Supplement No. 1 to part 740.) In addition to 
the general conditions in paragraph (b)(3)(i) of this section, the 
following conditions apply to exports or reexports of replacements for 
defective or unacceptable U.S.-origin commodities or software to a 
destination in Country Group B or Country Group D:1:
    (A) By making such an export or reexport, the exporter represents 
that all the requirements of this paragraph (b) have been met and 
undertakes to destroy or return the replaced parts as provided in 
paragraph (b)(3)(ii)(C) of this section.
    (B) The defective or otherwise unusable equipment must be replaced 
free of charge, except for transportation and labor charges. If 
exporting to the countries listed in Country Group D:1 (except the PRC), 
the exporter shall replace the commodity or software within the warranty 
period or within 12 months of its shipment to the ultimate consignee in 
the country of destination, whichever is shorter.
    (C) The commodity or software to be replaced must either be 
destroyed abroad or returned to the United States, or to a foreign firm 
in Country Group B that is under the effective control of the U.S. 
exporter, or to the foreign firm that is providing the replacement part 
or equipment. The destruction or return must be effected before, or 
promptly after, the replacement item is exported from the United States.
    (D) A party reexporting replacements for defective or unacceptable 
U.S.-origin equipment must ensure that the commodities or software being 
replaced were shipped to their present location in accordance with U.S. 
law and continue to be legally used.

[61 FR 64279, Dec. 4, 1996. Redesignated at 61 FR 68579, Dec. 30, 1996]



Sec. 740.11  Governments and international organizations (GOV).

    This Licenses Exception authorizes exports and reexports for 
international nuclear safeguards; U.S. government agencies or personnel, 
and agencies of cooperating governments.
    (a) International safeguards--(1) Scope. You may export and reexport 
commodities or software to the International Atomic Energy Agency (IAEA) 
and the European Atomic Energy Community (Euratom), and reexports by 
IAEA and Euratom for official international safeguard use, as follows:

[[Page 192]]

    (i) Commodities or software consigned to the IAEA at its 
headquarters in Vienna, Austria, or field offices in Toronto, Ontario, 
Canada or Tokyo, Japan for official international safeguards use. The 
IAEA is an international organization that establishes and administers 
safeguards designed to ensure that special nuclear materials and other 
related nuclear facilities, equipment, and material are not diverted 
from peaceful purposes to non-peaceful purposes.
    (ii) Commodities or software consigned to the Euratom Safeguards 
Directorate in Luxembourg, Luxembourg for official international 
safeguards use. Euratom is an international organization of European 
countries with headquarters in Luxembourg. Euratom establishes and 
administers safeguards designed to ensure that special nuclear materials 
and other related nuclear facilities, equipment, and material are not 
diverted from peaceful purposes to non-peaceful purposes.
    (iii) Commodities consigned to IAEA or Euratom may be reexported to 
any country for IAEA or Euratom international safeguards use provided 
that IAEA or Euratom maintains control of or otherwise safeguards the 
commodities and returns the commodities to the locations described in 
paragraphs (a)(1)(i) and (a)(1)(ii) of this section when they become 
obsolete, are no longer required, or are replaced.
    (iv) Commodity or software shipments may be made by commercial 
companies under direct contract with IAEA or Euratom, or by Department 
of Energy National Laboratories as directed by the Department of State 
or the Department of Energy.
    (v) The monitoring functions of IAEA and Euratom are not subject to 
the restrictions on prohibited safeguarded nuclear activities described 
in Sec. 744.2(a)(3) of the EAR.
    (vi) When commodities or software originally consigned to IAEA or 
Euratom are no longer in IAEA or Euratom official safeguards use, such 
commodities may only be disposed of in accordance with the regulations 
in the EAR.
    (2) Exclusions. No computers with a CTP greater than 10,000 MTOPS 
may be exported or reexported to countries listed in Computer Tiers 3 or 
4. See Sec. 742.12 of the EAR for a complete list of the countries 
within Computer Tiers 3 and 4.
    (b) Governments--(1) Scope. The provisions of paragraph (b) 
authorize exports and reexports of the items listed in paragraph (b)(2) 
of this section to personnel and agencies of the U.S. Government or 
agencies of cooperating governments.
    (2) Eligibility--(i) Items for personal use by personnel and 
agencies of the U.S. Government. This provision is available for items 
in quantities sufficient only for the personal use of members of the 
U.S. Armed Forces or civilian personnel of the U.S. Government 
(including U.S. representatives to public international organizations), 
and their immediate families and servants. Items for personal use 
include household effects, food, beverages, and other daily necessities.
    (ii) Items for official use by personnel and agencies of the U.S. 
Government. This provision is available for items consigned to and for 
the official use of any agency of the U.S. Government.
    (iii) Items for official use within national territory by agencies 
of cooperating governments. This License Exception is available for all 
items consigned to and for the official use of any agency of a 
cooperating government within the territory of any cooperating 
government, except:
    (A) Computers with a CTP greater than 10,000 MTOPS when destined for 
Argentina, Hong Kong, South Korea, Singapore or Taiwan;
    (B) Items identified on the Commerce Control List as controlled for 
missile technology (MT), chemical and biological warfare (CB), or 
nuclear nonproliferation (NP) reasons;
    (C) Regional stability items controlled under Export Control 
Classification Numbers (ECCNs) 6A002, 6A003, 6D102, 6E001, 6E002, 7D001, 
7E001, 7E002, and 7E101 as described in Sec. 742.6(a)(1) of the EAR; or
    (D) Encryption items controlled for EI reasons as described in the 
Commerce Control List.
    (iv) Diplomatic and consular missions of a cooperating government. 
This License Exception is available for all items consigned to and for 
the official use of

[[Page 193]]

a diplomatic or consular mission of a cooperating government located in 
any country in Country Group B (see Supplement No. 1 to part 740), 
except:
    (A) Computers with a CTP greater than 10,000 MTOPS when destined for 
Argentina, Hong Kong, South Korea, Singapore or Taiwan;
    (B) Items identified on the Commerce Control List as controlled for 
missile technology (MT), chemical and biological warfare (CB), or 
nuclear nonproliferation (NP) reasons;
    (C) Regional stability items controlled under Export Control 
Classification Numbers (ECCNs) 6A002, 6A003, 6D102, 6E001, 6E002, 7D001, 
7E001, 7E002, and 7E101 as described in Sec. 742.6(a)(1) of the EAR; or
    (D) Encryption items controlled for EI reasons as described in the 
Commerce Control List.
    (3) Definitions. (i) Agency of the U.S. Government includes all 
civilian and military departments, branches, missions, government-owned 
corporations, and other agencies of the U.S. Government, but does not 
include such national agencies as the American Red Cross or 
international organizations in which the United States participates such 
as the Organization of American States. Therefore, shipments may not be 
made to these non-government national or international agencies, except 
as provided in paragraph (b)(2)(i) of this section for U.S. 
representatives to these organizations.
    (ii) Agency of a cooperating government includes all civilian and 
military departments, branches, missions, and other governmental 
agencies of a cooperating national government. Cooperating governments 
are the national governments of countries listed in Country Group A:1 
(see Supplement No. 1 to part 740) and the national governments of 
Argentina, Austria, Finland, Hong Kong, Ireland, Korea (Republic of), 
New Zealand, Singapore, Sweden, Switzerland, and Taiwan.

[61 FR 64281, Dec. 4, 1996. Redesignated at 61 FR 68579, Dec. 30, 1996, 
as amended at 61 FR 68580, Dec. 30, 1996]



Sec. 740.12  Gift parcels and humanitarian donations (GFT).

    (a) Gift parcels--(1) Scope. The provisions of paragraph (a) 
authorize exports and reexports of gift parcels by an individual (donor) 
addressed to an individual, or a religious, charitable or educational 
organization (donee) located in any destination for the use of the donee 
or the donee's immediate family (and not for resale). The gift parcel 
must be provided free of charge to the donee. However, payment by the 
donee of any handling charges or of any fees levied by the importing 
country (e.g., import duties, taxes, etc.) is not considered to be a 
cost to the donee for purposes of this definition of ``gift parcel.''

    Note to paragraph (a) of this section: A gift parcel, within the 
context of this paragraph (a), does not include multiple parcels 
exported in a single shipment for delivery to individuals residing in a 
foreign country. Such multiple gift parcels, if subject to the General 
Prohibitions described in Sec. 734.2(b) of the EAR, must be licensed by 
BXA. (See Supplement No. 2 to part 748 of the EAR for licensing of 
multiple gift parcels).

    (2) Commodity, value and other limitations--(i) Eligible 
commodities. The eligible commodities are as follows:
    (A) The commodity must not be controlled for chemical and biological 
weapons (CB), missile technology (MT), national security (NS), or 
nuclear proliferation (NP) (see Commerce Control List, part 774 of the 
EAR); and
    (B) The commodity must be of a type and in quantities normally given 
as gifts between individuals.
    (1) For Cuba, the only commodities that may be included in a gift 
parcel are the following items: food, vitamins, seeds, medicines, 
medical supplies and devices, hospital supplies and equipment, equipment 
for the handicapped, clothing, personal hygiene items, veterinary 
medicines and supplies, fishing equipment and supplies, soap-making 
equipment, and in addition receive-only radio equipment for reception of 
commercial/civil AM/FM and short wave publicly available frequency 
bands, and batteries for such equipment.
    (2) For all other destinations, eligible commodities include all 
items described in paragraph (a)(2)(i)(B)(1) of this section as well as 
all other items normally sent as gifts. Gold bullion, gold taels, and 
gold bars are prohibited

[[Page 194]]

as are items intended for resale or reexport.

    Example to paragraph (a) of this section. A watch or piece of 
jewelry is normally sent as a gift. However, multiple watches, either in 
one package or in subsequent shipments, would not quality for such gift 
parcels because the quantity exceeds that normally given between 
individuals. Similarly, a sewing machine or bicycle, within the dollar 
limits of this License Exception, may be an appropriate gift. However, 
subsequent shipments of the same item to the same donee would not be a 
gift normally given between individuals.

    (3) For purposes of paragraph (a)(2)(i)(B) of this section, clothing 
is appropriate, except that export of military wearing apparel to 
Country Group D:1 or E:2 under this License Exception is specifically 
prohibited, regardless of whether all distinctive U.S. military 
insignia, buttons, and other markings are removed.
    (ii) Import requirements. The commodities must be acceptable in type 
and quantity by the recipient country for import as gifts. Commodities 
exceeding the import limits may not be included in gift parcels.
    (iii) Frequency. Except for gift parcels of food to Cuba, not more 
than one gift parcel may be sent from the same donor to the same donee 
in any one calendar month. Parties seeking authorization to exceed this 
limit due to compelling humanitarian concerns (e.g., gifts of medicine 
to relatives) should submit a license application (BXA-748P) with 
complete justification.
    (iv) Value. The combined total domestic retail value of all 
commodities included in a gift parcel may not exceed $400, except for 
gift parcels to Cuba where the value of non-food items may not exceed 
$200. There is no dollar value limit on food contained in a gift parcel 
to Cuba.
    (3) How to export gift parcels. (i) A gift parcel must be sent 
directly to the donee by the individual donor, or for such donor by a 
commercial or other gift-forwarding service or organization. Each gift 
parcel must show, on the outside wrapper, the name and address of the 
donor, as well as the name and address of the donee, regardless of 
whether sent by the donor or by a forwarding service.
    (ii) Each parcel must have the notation ``GIFT--Export License Not 
Required'' written on the addressee side of the package and the symbol 
``GFT'' written on any required customs declaration.
    (b) Humanitarian donations--(1) Scope. The provisions of paragraph 
(b) authorize exports by groups or organizations of donations to meet 
basic human needs when those groups or organizations have experience in 
maintaining a verifiable system of distribution that ensures delivery to 
the intended beneficiaries.
    (2) Basic human needs. Basic human needs are defined as those 
requirements essential to individual well-being: health, food, clothing, 
shelter, and education. These needs are considered to extend beyond 
those of an emergency nature and those that meet direct needs for mere 
subsistence.
    (3) Eligible donors. Eligible donors are U.S. charitable 
organizations that have an established record of involvement in donative 
programs and experience in maintaining and verifying a system of 
distribution to ensure delivery of commodities and software to the 
intended beneficiaries. Eligible distribution arrangements may consist 
of any one or more of the following:
    (i) A permanent staff maintained in the recipient country to monitor 
the receipt and distribution of the donations to the intended 
beneficiaries;
    (ii) Periodic spot-checks in the recipient country by members of the 
exporter's staff; or
    (iii) An agreement to utilize the services of a charitable 
organization that has a monitoring system in place.
    (4) Donations. To qualify for export under the provisions of this 
paragraph (b), the items must be provided free of charge to the 
beneficiary. The payment by the beneficiary, however, of normal handling 
charges or fees levied by the importing country (e.g., import duties, 
taxes, etc.) is not considered to be a cost to the beneficiary for 
purposes of this paragraph (b).
    (5) Ineligible commodities and software. The following commodities 
and software are not eligible:
    (i) Commodities and software controlled for national security, 
chemical

[[Page 195]]

or biological weapons, and nuclear nonproliferation, missile technology 
or crime control reasons (see Supplement No. 1 to part 774 of the EAR);
    (ii) Exports for large-scale projects of the kind associated with 
comprehensive economic growth, such as dams and hydroelectric plants; or
    (iii) Exports to Cuba of medical items excluded by Sec. 746.2(a)(3) 
of the EAR.
    (6) Eligible items. Eligible commodities and software are those 
listed in Supplement No. 2 to part 740.
    (7) Additional recordkeeping requirements. In addition to the 
recordkeeping requirements in part 762 of the EAR, donors must keep 
records containing the following information:
    (i) The donor organization's identity and past experience as an 
exporter of goods to meet basic human needs;
    (ii) Past and current countries to which the donative programs have 
been and are being directed, with particular reference to donative 
programs in embargoed destinations;
    (iii) Types of projects and commodities involved in the donative 
programs;
    (iv) Specific class(es) of beneficiaries of particular donated goods 
intended to be exported under this License Exception; and
    (v) Information concerning the source of funding for the donative 
programs and the projected annual value of exports of humanitarian 
donations.

[61 FR 64282, Dec. 4, 1996. Redesignated at 61 FR 68579, Dec. 30, 1996]



Sec. 740.13  Technology and software--unrestricted (TSU).

    This License Exception authorizes exports and reexports of operation 
technology and software; sales technology and software; software updates 
(bug fixes); and ``mass market'' software subject to the General 
Software Note.
    (a) Operation technology and software--(1) Scope. The provisions of 
paragraph (a) permit exports and reexports of operation technology and 
software. ``Operation technology'' is the minimum technology necessary 
for the installation, operation, maintenance (checking), and repair of 
those products that are lawfully exported or reexported under a license, 
a License Exception, or NLR. The ``minimum necessary'' operation 
technology does not include technology for development or production and 
includes use technology only to the extent required to ensure safe and 
efficient use of the product. Individual entries in the software and 
technology subcategories of the CCL may further restrict the export or 
reexport of operation technology.
    (2) Provisions and destinations--(i) Provisions. Operation software 
may be exported or reexported provided that both of the following 
conditions are met:
    (A) The operation software is the minimum necessary to operate 
equipment authorized for export or reexport; and
    (B) The operation software is in object code.
    (ii) Destinations. Operation software and technology may be exported 
or reexported to any destination to which the equipment for which it is 
required has been or is being legally exported or reexported.
    (b) Sales technology--(1) Scope. The provisions of paragraph (b) 
authorize exports and reexports of sales technology. ``Sales 
technology'' is data supporting a prospective or actual quotation, bid, 
or offer to sell, lease, or otherwise supply any item.
    (2) Provisions and destinations--(i) Provisions. Sales technology 
may be exported or reexported provided that:
    (A) The technology is a type customarily transmitted with a 
prospective or actual quotation, bid, or offer in accordance with 
established business practice; and
    (B) Neither the export nor the reexport will disclose the detailed 
design, production, or manufacture technology, or the means of 
reconstruction, of either the quoted item or its product. The purpose of 
this limitation is to prevent disclosure of technology so detailed that 
the consignee could reduce the technology to production.
    (ii) Destinations. Sales technology may be exported or reexported to 
any destination.

    Note: Neither this section nor its use means that the U.S. 
Government intends, or is committed, to approve a license application 
for any commodity, plant, software, or technology that may be the 
subject of the

[[Page 196]]

transaction to which such quotation, bid, or offer relates. Exporters 
are advised to include in any quotations, bids, or offers, and in any 
contracts entered into pursuant to such quotations, bids, or offers, a 
provision relieving themselves of liability in the event that a license 
(when required) is not approved by the Bureau of Export Administration.

    (c) Software updates. The provisions of paragraph (c) authorize 
exports and reexports of software updates that are intended for and are 
limited to correction of errors (``fixes'' to ``bugs'') in software 
lawfully exported or reexported (original software). Such software 
updates may be exported or reexported only to the same consignee to whom 
the original software was exported or reexported, and such software 
updates may not enhance the functional capacities of the original 
software. Such software updates may be exported or reexported to any 
destination to which the software for which they are required has been 
legally exported or reexported.
    (d) General Software Note: ``mass market'' software--(1) Scope. The 
provisions of paragraph (d) authorize exports and reexports of ``mass 
market'' software subject to the General Software Note (see Supplement 
No. 2 to part 774 of the EAR; also referenced in this section).
    (2) Software not eligible for this License Exception. This License 
Exception is not available for encryption software controlled for ``EI'' 
reasons under ECCN 5D002. (Refer to Secs. 742.15(b)(1) and 748.3(b) of 
the EAR for information on item classifications regarding a one-time BXA 
review for release from EI controls.)
    (3) Provisions and destinations--(i) Destinations. The ``mass 
market'' provisions of this paragraph (d) for software are available to 
all destinations except Cuba, Iran, Libya, North Korea, Sudan, and 
Syria.
    (ii) Provisions. ``Mass market'' treatment is available for software 
that is generally available to the public by being:
    (A) Sold from stock at retail selling points, without restriction, 
by means of:
    (1) Over the counter transactions;
    (2) Mail order transactions; or
    (3) Telephone call transactions; and
    (B) Designed for installation by the user without further 
substantial support by the supplier.

[61 FR 12768, Mar. 25, 1996, as amended at 61 FR 65464, Dec. 13, 1996. 
Redesignated at 61 FR 68579, Dec. 30, 1996, as amended at 61 FR 68580, 
Dec. 30, 1996]



Sec. 740.14  Baggage (BAG).

    (a) Scope. This License Exception authorizes individuals leaving the 
United States and crew members of exporting carriers to take to any 
destination, as personal baggage, the classes of commodities and 
software described in this section.
    (b) Eligibility. Individuals leaving the United States may export 
and reexport any of the following commodities or software to any 
destination or series of destinations. Crew members may export and 
reexport only commodities and software described in paragraphs (b)(1) 
and (b)(2) of this section to any destination.
    (1) Personal effects. Usual and reasonable kinds and quantities for 
personal use of wearing apparel, articles of personal adornment, toilet 
articles, medicinal supplies, food, souvenirs, games, and similar 
personal effects, and their containers.
    (2) Household effects. Usual and reasonable kinds and quantities for 
personal use of furniture, household effects, household furnishings, and 
their containers.
    (3) Vehicles. Usual and reasonable kinds and quantities of vehicles, 
such as passenger cars, station wagons, trucks, trailers, motorcycles, 
bicycles, tricycles, perambulators, and their containers.
    (4) Tools of trade. Usual and reasonable kinds and quantities of 
tools, instruments, or equipment and their containers for use in the 
trade, occupation, employment, vocation, or hobby of the traveler.
    (c) Limits on eligibility. The export of any commodity or software 
may be limited or prohibited, if the kind or quantity is in excess of 
the limits described in this section. In addition, the commodities or 
software must be:
    (1) Owned by the individuals (or by members of their immediate 
families)

[[Page 197]]

or by crew members of exporting carriers on the dates they depart from 
the United States;
    (2) Intended for and necessary and appropriate for the use of the 
individuals or members of their immediate families, or by the crew 
members of exporting carriers;
    (3) Not intended for sale; and
    (4) Not exported under a bill of lading as cargo if exported by crew 
members.
    (d) Special provision: unaccompanied baggage. Individuals departing 
the United States may ship unaccompanied baggage, which is baggage sent 
from the United States on a carrier other than that on which an 
individual departs. Crew members of exporting carriers may not ship 
unaccompanied baggage. Unaccompanied shipments under this License 
Exception shall be clearly marked ``BAGGAGE.'' Shipments of 
unaccompanied baggage may be made at the time of, or within a reasonable 
time before or after departure of the consignee or owner from the United 
States. Personal baggage controlled for chemical and biological weapons 
(CB), missile technology (MT), national security (NS) or nuclear 
nonproliferation (NP) must be shipped within 3 months before or after 
the month in which the consignee or owner departs the United States. 
However, commodities controlled for CB, MT, NS or NP may not be exported 
under this License Exception to Country Group D or Country Group E:2. 
(See Supplement No. 1 to part 740.)
    (e) Special provisions: shotguns and shotgun shells. (1) A United 
States citizen or a permanent resident alien leaving the United States 
may export or reexport shotguns with a barrel length of 18 inches or 
over and shotgun shells under this License Exception, subject to the 
following limitations:
    (i) Not more than three shotguns may be taken on any one trip.
    (ii) The shotguns and shotgun shells must be with the person's 
baggage but they may not be mailed.
    (iii) The shotguns and shotgun shells must be for the person's 
exclusive use for legitimate hunting or lawful sporting purposes, 
scientific purposes, or personal protection, and not for resale or other 
transfer of ownership or control. Accordingly, except as provided in 
(e)(2) of this section, shotguns may not be exported permanently under 
this License Exception. All shotguns and unused shotgun shells must be 
returned to the United States.
    (2) A nonresident alien leaving the United States may export or 
reexport under this License Exception only such shotguns and shotgun 
shells as he or she brought into the United States under the provisions 
of Department of Treasury Regulations (27 CFR 178.115(d)).

[61 FR 12768, Mar. 25, 1996. Redesignated at 61 FR 64274, Dec. 4, 1996. 
Redesignated at 61 FR 68579, Dec. 30, 1996]



Sec. 740.15  Aircraft and vessels (AVS).

    This License Exception authorizes departure from the United States 
of foreign registry civil aircraft on temporary sojourn in the United 
States and of U.S. civil aircraft for temporary sojourn abroad; the 
export of equipment and spare parts for permanent use on a vessel or 
aircraft; and exports to vessels or planes of U.S. or Canadian registry 
and U.S. or Canadian Airlines' installations or agents. Generally, no 
License Exception symbol is necessary for export clearance purposes; 
however, when necessary, the symbol ``AVS'' may be used.
    (a) Aircraft on temporary sojourn--(1) Foreign registered aircraft. 
An operating civil aircraft of foreign registry that has been in the 
United States on a temporary sojourn may depart from the United States 
under its own power for any destination, provided that:
    (i) No sale or transfer of operational control of the aircraft to 
nationals of Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria has 
occurred while in the United States;
    (ii) The aircraft is not departing for the purpose of sale or 
transfer of operational control to nationals of Cuba, Iran, Iraq, Libya, 
North Korea, Sudan, or Syria; and
    (iii) It does not carry from the United States any item for which an 
export license is required and has not been granted by the U.S. 
Government.
    (2) U.S. registered aircraft. (i) A civil aircraft of U.S. registry 
operating under an Air Carrier Operating Certificate, Commercial 
Operating Certificate, or Air Taxi Operating Certificate

[[Page 198]]

issued by the Federal Aviation Administration or conducting flights 
under operating specifications approved by the Federal Aviation 
Administration pursuant to 14 CFR part 129 of the regulations of the 
Federal Aviation Administration, may depart from the United States under 
its own power for any destination, provided that:
    (A) The aircraft does not depart for the purpose of sale, lease or 
other disposition of operational control of the aircraft, or its 
equipment, parts, accessories, or components to a foreign country or any 
national thereof;
    (B) The aircraft's U.S. registration will not be changed while 
abroad;
    (C) The aircraft is not to be used in any foreign military activity 
while abroad; and
    (D) The aircraft does not carry from the United States any item for 
which a license is required and has not been granted by the U.S. 
Government.
    (ii) Any other operating civil aircraft of U.S. registry may depart 
from the United States under its own power for any destination, except 
to Cuba, Iran, Iraq, Sudan, Syria, Libya, and North Korea (flights to 
these destinations require a license), provided that:
    (A) The aircraft does not depart for the purpose of sale, lease or 
other disposition of operational control of the aircraft, or its 
equipment, parts, accessories, or components to a foreign country or any 
national thereof;
    (B) The aircraft's U.S. registration will not be changed while 
abroad;
    (C) The aircraft is not to be used in any foreign military activity 
while abroad;
    (D) The aircraft does not carry from the United States any item for 
which an export license is required and has not been granted by the U.S. 
Government; and
    (E) The aircraft will be operated while abroad by a U.S. licensed 
pilot, except that during domestic flights within a foreign country, the 
aircraft may be operated by a pilot currently licensed by that foreign 
country.
    (3) Criteria. The following nine criteria each must be met if the 
flight is to qualify as a temporary sojourn. To be considered a 
temporary sojourn, the flight must not be for the purpose of sale or 
transfer of operational control. An export is for the transfer of 
operational control unless the exporter retains each of the following 
indicia of control:
    (i) Hiring of cockpit crew. Right to hire and fire the cockpit crew.
    (ii) Dispatch of aircraft. Right to dispatch the aircraft.
    (iii) Selection of routes. Right to determine the aircraft's routes 
(except for contractual commitments entered into by the exporter for 
specifically designated routes).
    (iv) Place of maintenance. Right to perform or obtain the principal 
maintenance on the aircraft, which principal maintenance is conducted 
outside Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria, under the 
control of a party who is not a national of any of these countries. (The 
minimum necessary in-transit maintenance may be performed in any 
country).
    (v) Location of spares. Spares are not located in Cuba, Iran, Iraq, 
Libya, North Korea, Sudan, or Syria.
    (vi) Place of registration. The place of registration is not changed 
to Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria.
    (vii) No transfer of technology. No technology is transferred to a 
national of Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria, 
except the minimum necessary in transit maintenance to perform flight 
line servicing required to depart safely.
    (viii) Color and logos. The aircraft does not bear the livery, 
colors, or logos of a national of Cuba, Iran, Iraq, Libya, North Korea, 
Sudan, or Syria.
    (ix) Flight number. The aircraft does not fly under a flight number 
issued to a national of Cuba, Iran, Iraq, Libya, North Korea, Sudan, or 
Syria as such a number appears in the Official Airline Guide.
    (4) Reexports. Civil aircraft legally exported from the United 
States may be reexported under this section, provided the restrictions 
described in this paragraph (a) are met.
    (b) Equipment and spare parts for permanent use on a vessel or 
aircraft, and ship and plane stores--(1) Vessel. Equipment and spare 
parts for permanent use on a vessel, when necessary for the proper 
operation of such vessel, may be exported or reexported for use on board

[[Page 199]]

a vessel of any registry, except a vessel registered in Country Group 
D:1 (see Supplement No. 1 to part 740), Cuba, or North Korea, or owned 
or controlled by, or under charter or lease to any of these countries or 
their nationals. In addition, other equipment and services for necessary 
repair to fishing and fishery support vessels of Country Group D:1 or 
North Korea may be exported for use on board such vessels when admitted 
into the United States under governing international fishery agreements.
    (2) Aircraft. Equipment and spare parts for permanent use on an 
aircraft, when necessary for the proper operation of such aircraft, may 
be exported or reexported for use on board an aircraft of any registry, 
except an aircraft registered in, owned or controlled by, or under 
charter or lease to a country included in Country Group D:1, Cuba, 
Libya, or North Korea, or a national of any of these countries.
    (3) Ship and plane stores. Usual and reasonable kinds and quantities 
of the following commodities may be exported for use or consumption on 
board an aircraft or vessel of any registry during the outgoing and 
immediate return flight or voyage. (Note that fuel and related 
commodities that qualify as ship or plane stores as described in this 
License Exception must be exported under the short supply License 
Exception SPR (see Sec. 754.2(h) of the EAR.)
    (i) Deck, engine, and steward department stores, provisions, and 
supplies for both port and voyage requirements;
    (ii) Medical and surgical supplies;
    (iii) Food stores;
    (iv) Slop chest articles;
    (v) Saloon stores or supplies.
    (c) Shipments to U.S. or Canadian vessels, planes and airline 
installations or agents--(1) Exports to vessels or planes of U.S. or 
Canadian registry. Export may be made of the commodities set forth in 
paragraph (c)(3) of this section, for use by or on a specific vessel or 
plane of U.S. or Canadian registry located at any seaport or airport 
outside the United States or Canada except a port in Cuba, North Korea 
or Country Group D:1 (excluding the PRC and Romania), (see Supplement 
No. 1 to part 740) provided that such commodities are all of the 
following: 6
---------------------------------------------------------------------------

    \6\  Where a validated license is required, see Secs. 748.2 and 
748.4(g) of the EAR.
---------------------------------------------------------------------------

    (i) Ordered by the person in command or the owner or agent of the 
vessel or plane to which they are consigned;
    (ii) Intended to be used or consumed on board such vessel or plane 
and necessary for its proper operation;
    (iii) In usual and reasonable kinds and quantities during times of 
extreme need; and
    (iv) Shipped as cargo for which a Shipper's Export Declaration (SED) 
is filed with the carrier, except that an SED is not required when any 
of the commodities, other than fuel, is exported by U.S. airlines to 
their own aircraft abroad for their use.
    (2) Exports to U.S. or Canadian airline's installation or agent. 
Exports of the commodities set forth in paragraph (c)(3) of this 
section, except fuel, may be made to a U.S. or Canadian airline's 
7 installation or agent in any foreign destination except 
Cuba, North Korea, or Country Group D:1 (excluding the PRC and Romania), 
(see Supplement No. 1 to part 740) provided such commodities are all of 
the following:
---------------------------------------------------------------------------

    \7\  See Part 772 of the EAR for definitions of United States and 
Canadian airlines.
---------------------------------------------------------------------------

    (i) Ordered by a U.S. or Canadian airline and consigned to its own 
installation or agent abroad;
    (ii) Intended for maintenance, repair, or operation of aircraft 
registered in either the United States or Canada, and necessary for the 
aircraft's proper operation, except where such aircraft is located in, 
or owned, operated or controlled by, or leased or chartered to, Cuba, 
North Korea or Country Group D:1 (excluding the PRC) (see Supplement No. 
1 to part 740) or a national of such country;
    (iii) In usual and reasonable kinds and quantities; and
    (iv) Shipped as cargo for which a Shipper's Export Declaration (SED) 
is filed with the carrier, except that an SED is not required when any 
of these commodities is exported by U.S. airlines to their own 
installations and agents abroad for use in their aircraft operations.

[[Page 200]]

    (3) Applicable commodities. This paragraph (c) applies to the 
following commodities, subject to the provisions in paragraph (c)(1) and 
(c)(2) of this section:

    Note to paragraph (c)(3) of this section: Fuel and related 
commodities for shipment to vessels or planes of U.S. or Canadian 
registry as described in this License Exception must be shipped under 
the short supply License Exception SPR (see Sec. 754.2(h) of the EAR);

    (i) Deck, engine, and steward department stores, provisions, and 
supplies for both port and voyage requirements;
    (ii) Medical and surgical supplies;
    (iii) Food stores;
    (iv) Slop chest articles;
    (v) Saloon stores or supplies; and
    (vi) Equipment and spare parts.

[61 FR 64274, Dec. 4, 1996. Redesignated and amended at 61 FR 64274, 
64283, Dec. 4, 1996. Redesignated at 61 FR 68579, Dec. 30, 1996]



Sec. 740.16  Additional permissive reexports (APR).

    This License Exception allows the following reexports:
    (a) Reexports from Country Group A:1 and cooperating countries. 
Reexports may be made from Country Group A:1 or from cooperating 
countries, provided that:
    (1) The reexport is made in accordance with the conditions of an 
export authorization from the government of the reexporting country;
    (2) The commodities being reexported are not controlled for nuclear 
nonproliferation, missile technology or crime control reasons; and
    (3) The reexport is destined to either:
    (i) A country in Country Group B that is not also included in 
Country Group D:2, D:3, or D:4; Cambodia; or Laos; and the commodity 
being reexported is both controlled for national security reasons and 
not controlled for export to Country Group A:1; or
    (ii) A country in Country Group D:1 only (National Security) (see 
Supplement No. 1 to part 740), other than Cambodia or Laos, and the 
commodity being reexported is controlled for national security reasons.
    (b) Reexports to and among Country Group A:1 and cooperating 
countries. Reexports may be made to and among Country Group A:1 and 
cooperating countries, provided that eligible commodities are for use or 
consumption within a Country Group A:1 (see Supplement No. 1 to part 
740) or cooperating country, or for reexport from such country in 
accordance with other provisions of the EAR. All commodities except the 
following are eligible for reexport to and among Country Group A:1 and 
cooperating countries:
    (1) Computers with a CTP greater than 10,000 MTOPS to Hong Kong and 
South Korea;
    (2) Commodities controlled for nuclear nonproliferation reasons.
    (c) Reexports to a destination to which direct shipment from the 
United States is authorized under an unused outstanding license may be 
made under the terms of that license. Such reexports shall be recorded 
in the same manner as exports are recorded, regardless of whether the 
license is partially or wholly used for reexport purposes. (See part 762 
of the EAR for recordkeeping requirements.)
    (d) Reexports of any item from Canada that, at the time of reexport, 
may be exported directly from the United States to the new country of 
destination under any License Exception.
    (e) Reexports (return) to the United States of any item. If the 
reexporting party requests written authorization because the government 
of the country from which the reexport will take place requires formal 
U.S. Government approval, such authorization will generally be given.
    (f) Reexports from a foreign destination to Canada of any item if 
the item could be exported to Canada without a license.
    (g) Reexports between Switzerland and Liechtenstein.
    (h) Shipments of foreign-made products that incorporate U.S.-origin 
components may be accompanied by U.S.-origin controlled spare parts, 
provided that they do not exceed 10 percent of the value of the foreign-
made product, subject to the restrictions in Sec. 734.4 of the EAR.
    (i) Reexport to Sudan of items controlled by ECCNs 2A994, 3A993, 
5A992, 5A995, 6A990, 6A994, 7A994, 8A992, 8A994, 9A990, 9A992, and 
9A994. In addition, items in these ECCNs are not counted as controlled 
U.S. content for purposes

[[Page 201]]

of determining license requirements for U.S. parts, components, and 
materials incorporated into foreign-made products.

[61 FR 12768, Mar. 25, 1996. Redesignated at 61 FR 64274, Dec. 4, 1996. 
Redesignated at 61 FR 68579, Dec. 30, 1996]

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[[Page 207]]

 Supplement No. 2 to Part 740--Items That May Be Donated To Meet Basic 
          Human Needs Under the Humanitarian License Exception

    (a) Health
Equipment for the Handicapped
Hospital Supplies and Equipment
Laboratory Supplies and Equipment
Medical Supplies and Devices
Medicine-Processing Equipment
Medicines
Vitamins
Water Resources Equipment
Food
Agricultural Materials and Machinery Suited to Small-Scale Farming 
Operations
Agricultural Research and Testing Equipment
Fertilizers
Fishing Equipment and Supplies Suited to Small-Scale Fishing Operations
    (b) Food
Insecticides
Pesticides
Seeds
Small-Scale Irrigation Equipment
Veterinary Medicines and Supplies
    (c) Clothes and Household Goods
Bedding
Clothes
Cooking Utensils
Fabric
Personal Hygiene Items
Soap-Making Equipment
Weaving and Sewing Equipment
    (d) Shelter
Building Materials
Hand Tools
    (e) Education
Books
Individual School Supplies
School Furniture
Special Education Supplies and Equipment for the Handicapped
    (f) Basic Support Equipment and Supplies Necessary To Operate and 
Administer the Donative Program
Audio-Visual Aids for Training
Generators
Office Supplies and Equipment



PART 742--CONTROL POLICY--CCL BASED CONTROLS--Table of Contents




Sec.
742.1  Introduction.
742.2  Proliferation of chemical and biological weapons.
742.3  Nuclear nonproliferation.
742.4  National security.
742.5  Missile technology.
742.6  Regional stability.
742.7  Crime control.
742.8  Anti-terrorism: Iran.
742.9  Anti-terrorism: Syria.
742.10  Anti-terrorism: Sudan.
742.11  Specially designed implements of torture.
742.12  High performance computers.
742.13  Communications intercepting devices.
742.14  Significant items: commercial communications satellites; hot 
          section technology for the development, production or overhaul 
          of commercial aircraft engines, components, and systems.
742.15  Encryption items.

Supplement No. 1 to Part 742--Nonproliferation of Chemical and 
          Biological Weapons
Supplement No. 2 to Part 742--Anti-Terrorism Controls; Iran, Syria and 
          Sudan Contract Sanctity Dates and Related Policies
Supplement No. 3 to Part 742--High Performance Computers; Safeguard 
          Conditions and Related Information
Supplement No. 4 to Part 742--Key Criteria
Supplement No. 5 to Part 742--Key Escrow or Key Recovery Agent Criteria, 
          Security Policies, and Key Escrow or Key Recovery Procedures
Supplement No. 6 to Part 742--Guidelines for Submitting a Classification 
          Request for a Mass Market Software Product That Contains 
          Encryption
Supplement No. 7 to Part 742--Review Criteria for Exporter Key Escrow or 
          Key Recovery Development Plans

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 18 
U.S.C. 2510 et seq.; 22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; E.O. 
12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 
3 CFR, 1993 Comp., p. 608; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., 
p. 917; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; Executive 
Order 13026 (November 15, 1996, 61 FR 58767); Notice of August 15, 1995 
(60 FR 42767, August 17, 1995); and Notice of August 14, 1996 (61 FR 
42527).

    Source: 61 FR 12786, Mar. 25, 1996, unless otherwise noted.



Sec. 742.1  Introduction. In this part, references to the Export Administration Regulations (EAR) are references to 15 CFR chapter VII, subchapter C.

    (a) Scope. This part describes all the reasons for control reflected 
in the Country Chart in Supplement No. 1 to part 738 of the EAR. In 
addition, it includes licensing requirements and licensing policies for 
the following items that are not reflected on the Country Chart: 
specially designed implements of torture, high performance computers, 
and communications intercepting

[[Page 208]]

devices. This part is organized so that it lists each reason for control 
in the order (reading left to right) in which the control appears on the 
Country Chart. In addition to describing the reasons for control and 
licensing requirements and policies, this part describes any applicable 
contract sanctity provisions that may apply to specific controls and 
includes a description of any multilateral regime under which specific 
controls are maintained.
    (b) Reasons for control listed on the CCL not covered by this part. 
This part describes the license requirements and the licensing policies 
for all the ``Reasons for Control'' that are listed on the Commerce 
Control List (CCL) except ``Short Supply'' and ``U.N. Sanctions,'' which 
do not appear on the Country Chart.
    (1) Short Supply. ECCNs containing items subject to short supply 
controls (``SS'') refer the exporter to part 754 of the EAR. These ECCNs 
are: 0A980 (Horses for export by sea); 1C980 (certain inorganic 
chemicals); 1C981 (Crude petroleum, including reconstituted crude 
petroleum, tar sands, and crude shale oil); 1C982 (certain other 
petroleum products); 1C983 (Natural gas liquids and other natural gas 
derivatives); 1C984 (certain manufactured gas and synthetic natural gas 
(except when commingled with natural gas and thus subject to export 
authorization from the Department of Energy); and 1C988 (Western red 
cedar (thuja plicata) logs and timber, and rough, dressed and worked 
lumber containing wane).
    (2) U.N. Sanctions. The United Nations imposes sanctions, short of 
complete embargoes, against certain countries which may result in 
controls that supplement those otherwise maintained under the EAR for 
that particular country. This part does not address license requirements 
and licensing policies for controls implementing U.N. sanctions. CCL 
entries containing items subject to U.N. sanctions will refer the 
exporter to part 746 of the EAR, Embargoes and Other Special Controls, 
for any supplemental controls that may apply to exports and reexports 
involving these countries.
    (c) Exports and reexports involving Cuba, Libya, North Korea, Iraq, 
Iran, and the Bosnian Serb-controlled areas of Bosnia-Herzegovina. This 
part does not cover license requirements and licensing policies that 
apply to exports and reexports to embargoed destinations (Cuba, Libya, 
North Korea, Iraq, Iran and the Bosnian-Serb controlled areas of Bosnia-
Herzegovina). These comprehensive embargoes cover a broader range of 
items than those reflected in the CCL. If you are exporting or 
reexporting to any of these destinations, you should first review part 
746 of the EAR, Embargoes and Other Special Controls.
    (d) Anti-terrorism Controls on Cuba, Libya, Iran, Iraq, North Korea, 
Sudan and Syria. Commerce maintains anti-terrorism controls on Iran, 
Syria and Sudan under section 6(a) of the Export Administration Act. 
Items controlled under section 6(a) to these three countries are 
described in Supplement No. 2 to part 742. Commerce also maintains 
controls under EAA section 6(j) of the EAA to Cuba, Libya, Iraq, Iran, 
North Korea, Sudan and Syria. Items controlled to these seven countries 
under EAA section 6(j) are also described in Supplement 2 to part 742. 
The Secretaries of Commerce and State are required to notify appropriate 
Committees of the Congress 30 days before issuing a license for an item 
controlled under section 6(j) to Cuba, Libya, North Korea, Iran, Iraq, 
Sudan or Syria. As noted in paragraph (c) of this section, if you are 
exporting or reexporting to Cuba, Libya, Iran, Iraq and North Korea, you 
should review Part 746 of the EAR, Embargoes and Other Special Controls.
    (e) End-user and end-use based controls. This part does not cover 
prohibitions and licensing requirements for exports of items not 
included on the CCL that are subject to end-use and end-user controls: 
certain nuclear end-uses; certain missile end-uses; certain chemical and 
biological weapons end-uses; certain naval nuclear propulsion end-uses; 
certain activities of U.S. persons; certain exports to and for the use 
of certain foreign vessels or aircraft; and certain exports to all 
countries for Libyan aircraft. Licensing requirements and policies for 
these exports are contained in part 744 of the EAR.
    (f) Overlapping license policies. Many items on the CCL are subject 
to more than one type of control (e.g., national

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security (NS), missile technology (MT), nuclear nonproliferation (NP), 
regional stability (RS)). In addition, applications for all items on the 
CCL, other than those controlled for short supply reasons, may be 
reviewed for missile technology (see Sec. 742.5(b)(3) of this part), 
nuclear nonproliferation (see Sec. 742.3(b)(2) of this part), or 
chemical and biological weapons (see Sec. 742.3(b)(3) of this part), if 
the end-use or end-user may be involved in certain proliferation 
activities. Finally, many multilaterally controlled items are reviewed 
for anti-terrorism reasons if they are destined for a terrorism-
supporting country (see paragraph (d) of this section). Your application 
for a license will be reviewed under all applicable licensing policies. 
A license will be issued only if an application can be approved under 
all applicable licensing policies.



Sec. 742.2  Proliferation of chemical and biological weapons.

    (a) License requirements. The following controls are maintained in 
support of the U.S. foreign policy of opposing the proliferation and 
illegal use of chemical and biological weapons:
    (1) If CB Column 1 of the Country Chart (Supplement No. 1 to part 
738 of the EAR) is indicated in the appropriate ECCN, a license is 
required to all destinations except Canada for the following:
    (i) Human pathogens, zoonoses, toxins, animal pathogens, genetically 
modified microorganisms and plant pathogens identified in ECCNs 1C351, 
1C352, 1C353 and 1C354; and
    (ii) Technology (ECCN 1E391) for the production and/or disposal of 
microbiological commodities described in paragraph (a)(1)(i) of this 
section.
    (2) If CB Column 2 of the Country Chart (Supplement No. 1 to part 
738 of the EAR) is indicated in the appropriate ECCN, a license is 
required to all destinations except countries in Country Group A:3 (see 
Supplement No. 1 to part 740 of the EAR) (Australia Group members) for 
the following:
    (i) Chemicals identified in ECCN 1C350 (precursor and intermediate 
chemicals used in the production of chemical warfare agents).
    (A) This licensing requirement includes chemical mixtures containing 
any chemicals identified in ECCN 1C350, except as specified in Note 2 to 
that ECCN.
    (B) This licensing requirement does not include chemical compounds 
created with any chemicals identified in ECCN 1C350, unless those 
compounds are also identified in ECCN 1C350.
    (ii) Software (ECCN 1D390) for process control that is specifically 
configured to control or initiate production of the chemical precursors 
controlled by ECCN 1C350.
    (iii) Technology (ECCN 1E390) for the production and/or disposal of 
chemical precursors described in ECCN 1C350, and technology involving 
the following for facilities designed or intended to produce chemicals 
described in ECCN 1C350:
    (A) Overall plant design;
    (B) Design, specification, or procurement of equipment;
    (C) Supervision of construction, installation, or operation of 
complete plant or components thereof;
    (D) Training of personnel; or
    (E) Consultation on specific problems involving such facilities.
    (3) If CB Column 3 of the Country Chart (Supplement No. 1 to part 
738 of the EAR) is indicated in the appropriate ECCN, a license is 
required to Country Group D:3 (see Supplement No. 1 to part 740 of the 
EAR) for the following:
    (i) Equipment and materials identified in ECCNs 2B350 and 2B351 on 
the CCL, which can be used in the production of chemical weapons 
precursors or chemical warfare agents, and equipment and materials 
identified in ECCN 2B352, which can be used in the production of 
biological agents; and
    (ii) Technology (ECCN 2E301) for production of the commodities 
covered in ECCNs 2B350, 2B351, 2B352, 2B353 and 2B354.
    (b) Licensing policy. (1) License applications for the items 
described in paragraph (a) of this section will be considered on a case-
by-case basis to determine whether the export or reexport would make a 
material contribution to the design, development, production,

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stockpiling, or use of chemical or biological weapons. When an export or 
reexport is deemed to make such a contribution, the license will be 
denied.
    (2) The following factors are among those that will be considered to 
determine what action should be taken on individual license 
applications:
    (i) The specific nature of the end-use;
    (ii) The significance of the export and reexport in terms of its 
contribution to the design, development, production, stockpiling, or use 
of chemical or biological weapons;
    (iii) The nonproliferation credentials of the importing country;
    (iv) The types of assurances or guarantees against design, 
development, production, stockpiling, or use of chemical or biological 
weapons that are given in a particular case; and
    (v) The existence of a pre-existing contract.
    (3) BXA will review license applications in accordance with the 
licensing policy described in paragraph (b)(2) of this section for items 
not described in paragraph (a) of this section that:
    (i) Require a license for reasons other than short supply;
    (ii) Are destined to any country except countries in Country Group 
A:3 (see Supplement No. 1 to part 740 of the EAR) (Australia Group 
members); and
    (iii) Could be destined for the design, development, production, 
stockpiling, or use of chemical or biological weapons, or for a facility 
engaged in such activities.
    (c) Contract sanctity. Contract sanctity dates are set forth in 
Supplement No. 1 to part 742. Applicants who wish that a preexisting 
contract be considered in reviewing their license applications must 
submit documentation sufficient to establish the existence of such a 
contract.
    (d) Australia Group. The Australia Group, a multilateral body that 
works to halt the spread of chemical and biological weapons, has 
developed common control lists of items specifically related to chemical 
and biological weapons. Australia Group members are listed in Country 
Group A:3 (see Supplement No. 1 to part 740 of the EAR). Controls on 
items listed in paragraph (a) of this section are consistent with lists 
agreed to in the Australia Group.



Sec. 742.3  Nuclear nonproliferation.

    (a) License requirements. Section 309(c) of the Nuclear Non-
Proliferation Act of 1978 requires BXA to identify items subject to the 
EAR that could be of significance for nuclear explosive purposes if used 
for activities other than those authorized at the time of export or 
reexport. ECCNs on the CCL that include the symbol ``NP 1'' or ``NP 2'' 
in the ``Country Chart'' column of the ``License Requirements'' section 
identify items that could be of significance for nuclear explosive 
purposes and are therefore subject to licensing requirements under this 
part and under section 309(c) of the Nuclear Non-Proliferation Act of 
1978. These items are referred to as ``The Nuclear Referral List'' and 
are subject to the following licensing requirements:
    (1) If NP Column 1 of the Country Chart (Supplement No. 1 to part 
738 of the EAR) is indicated in the appropriate ECCN, a license is 
required to all destinations except Nuclear Suppliers Group (NSG) member 
countries (Country Group A:4) (see Supplement No. 1 to part 740 of the 
EAR).
    (2) If NP Column 2 of the Country Chart (Supplement No. 1 to part 
738 of the EAR) is indicated in the applicable ECCN, a license is 
required to Country Group D:2 (see Supplement No. 1 to part 740 of the 
EAR).
    (3) Other nuclear-related license requirements are described in 
Secs. 744.2 and 744.5 of the EAR.
    (b) Licensing policy. (1) To implement the controls in paragraph (a) 
of this section, the following factors are among those used to determine 
what action should be taken on individual applications:
    (i) Whether the items to be transferred are appropriate for the 
stated end-use and whether that stated end-use is appropriate for the 
end-user;
    (ii) The significance for nuclear purposes of the particular item;
    (iii) Whether the items to be exported or reexported are to be used 
in research on, or for the development, design, manufacture, 
construction, operation, or maintenance of, any reprocessing or 
enrichment facility;

[[Page 211]]

    (iv) The types of assurances or guarantees given against use for 
nuclear explosive purposes or proliferation in the particular case;
    (v) Whether any party to the transaction has been engaged in 
clandestine or illegal procurement activities;
    (vi) Whether an application for a license to export or reexport to 
the end-user has previously been denied, or whether the end-user has 
previously diverted items received under a general license, a License 
Exception, or a validated license to unauthorized activities;
    (vii) Whether the export or reexport would present an unacceptable 
risk of diversion to a nuclear explosive activity or unsafeguarded 
nuclear fuel-cycle activity described in Sec. 744.2(a) of the EAR; and
    (viii) The nonproliferation credentials of the importing country, 
based on consideration of the following factors:
    (A) Whether the importing country is a party to the Nuclear Non-
Proliferation Treaty (NPT) or to the Treaty for the Prohibition of 
Nuclear Weapons in Latin America (Treaty of Tlatelolco) or to a similar 
international legally-binding nuclear nonproliferation agreement;
    (B) Whether the importing country has all of its nuclear activities, 
facilities, or installations that are operational, being designed, or 
under construction under International Atomic Energy Agency (IAEA) 
safeguards or equivalent full scope safeguards;
    (C) Whether there is an agreement for cooperation in the civil uses 
of atomic energy between the U.S. and the importing country;
    (D) Whether the actions, statements, and policies of the government 
of the importing country are in support of nuclear nonproliferation and 
whether that government is in compliance with its international 
obligations in the field of non-proliferation;
    (E) The degree to which the government of the importing country 
cooperates in non-proliferation policy generally (e.g., willingness to 
consult on international nonproliferation issues); and
    (F) Information on the importing country's nuclear intentions and 
activities.
    (2) In addition, BXA will review license applications in accordance 
with the licensing policy described in paragraph (b) of this section for 
items not on the Nuclear Referral List that:
    (i) Require a license on the CCL for reasons other than ``short 
supply;'' and
    (ii) Are intended for a nuclear related end-use or end-user.
    (3) For the People's Republic of China, the general licensing policy 
for applications for those items that would make a direct and 
significant contribution to nuclear weapons and their delivery systems 
is extended review or denial.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.
    (d) Nuclear Suppliers Group. Most items on the Nuclear Referral List 
that require a license under NP Column No. 1 on the Country Chart (see 
Supplement No. 1 to part 738 of the EAR) are contained in the Annex to 
the ``Guidelines for Transfers of Nuclear-Related Dual-Use Equipment, 
Material, and Related Technology'' (the Annex), as published by the 
International Atomic Energy Agency in INFCIRC/254/Revision 1/Part 2. The 
adherents to INFCIRC/254/Revision 1/Part 2, which includes the Nuclear 
Suppliers Guidelines, have agreed to establish export licensing 
procedures for the transfer of items identified in the Annex. Items that 
are listed as requiring a license under NP Column No. 2 on the Country 
Chart (see Supplement No. 1 to part 738 of the EAR) are not included in 
the Annex and are controlled only by the United States.



Sec. 742.4  National security.

    (a) License requirements. It is the policy of the United States to 
restrict the export and reexport of items that would make a significant 
contribution to the military potential of any other country or 
combination of countries that would prove detrimental to the national 
security of the United States. Accordingly, a license is required for 
exports and reexports to all destinations, except Canada, for all items 
in

[[Page 212]]

ECCNs on the CCL that include NS Column 1 in the Country Chart column of 
the ``License Requirements'' section. A license is required to all 
destinations except Country Group A:1 and cooperating countries (see 
Supplement No. 1 to part 740) for all items in ECCNs on the CCL that 
include NS Column 2 in the Country Chart column of the ``License 
Requirements'' section. The purpose of the controls is to ensure that 
these items do not make a contribution to the military potential of 
countries in Country Group D:1 (see Supplement No. 1 to part 740 of the 
EAR) that would prove detrimental to the national security of the United 
States. License Exception GBS is available for the export and reexport 
of certain national security controlled items to Country Group B (see 
Sec. 740.4 and Supplement No. 1 to part 740 of the EAR).
    (b) Licensing policy. (1) The policy for national security 
controlled items exported or reexported to any country except a country 
in Country Group D:1 (see Supplement No. 1 to part 740 of the EAR) is to 
approve applications unless there is a significant risk that the items 
will be diverted to a country in Country Group D:1.
    (2) Except for those countries described in paragraphs (b)(5) 
through (b)(7) of this section, the general policy for exports and 
reexports of items to Country Group D:1 (see Supplement No. 1 to part 
740 of the EAR) is to approve applications when BXA determines, on a 
case-by-case basis, that the items are for civilian use or would 
otherwise not make a significant contribution to the military potential 
of the country of destination that would prove detrimental to the 
national security of the United States.
    (3) To permit such policy judgments to be made, each application is 
reviewed in the light of prevailing policies with full consideration of 
all aspects of the proposed transaction. The review generally includes:
    (i) An analysis of the kinds and quantities of items to be shipped;
    (ii) Their military or civilian uses;
    (iii) The unrestricted availability abroad of the same or comparable 
items;
    (iv) The country of destination;
    (v) The ultimate end-users in the country of destination; and
    (vi) The intended end-use.
    (4) Although each proposed transaction is considered individually, 
items described in Advisory Notes on the Commerce Control List are more 
likely to be approved than others.
    (5) In recognition of efforts made to adopt safeguard measures for 
exports and reexports, Bulgaria, Latvia, Kazakhstan, Lithuania, 
Mongolia, and Russia are accorded enhanced favorable consideration 
licensing treatment.
    (6) The general policy for Cambodia and Laos is to approve license 
applications when BXA determines, on a case-by-case basis, that the 
items are for an authorized use in Cambodia or Laos and are not likely 
to be diverted to another country or use contrary to the national 
security or foreign policy controls of the United States.
    (7) For the People's Republic of China, the general licensing policy 
is to approve applications, except that those items that would make a 
direct and significant contribution to electronic and anti-submarine 
warfare, intelligence gathering, power projection, and air superiority 
receive extended review or denial. Each application will be considered 
individually. Items may be approved even though they may contribute to 
Chinese military development or the end-user or end-use is military. 
Note that the Advisory Notes in the CCL headed ``Note for the People's 
Republic of China'' provide guidance on equipment likely to be approved 
more rapidly for China.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.
    (d) [Reserved]

[61 FR 12786, Mar. 25, 1996, as amended at 61 FR 64283, Dec. 4, 1996]



Sec. 742.5  Missile technology.

    (a) License requirements. (1) In support of U.S. foreign policy to 
limit the proliferation of missiles, a license is required to export and 
reexport items related to the design, development, production, or use of 
missiles. These items are identified in ECCNs on the CCL as MT Column 
No. 1 in the Country Chart column of the ``License Requirements''

[[Page 213]]

section. Licenses for these items are required to all destinations, 
except Canada, as indicated by MT Column 1 of the Country Chart (see 
Supplement No. 1 to part 738 of the EAR).
    (2) The term ``missiles'' is defined as rocket systems (including 
ballistic missile systems, space launch vehicles, and sounding rockets) 
and unmanned air vehicle systems (including cruise missile systems, 
target drones, and reconnaissance drones) capable of delivering at least 
500 kilograms (kg) payload to a range of at least 300 kilometers (km).
    (b) Licensing policy. (1) Applications to export and reexport items 
identified in ECCNs on the CCL as MT Column No. 1 in the Country Chart 
column of the ``License Requirements'' section will be considered on a 
case-by-case basis to determine whether the export or reexport would 
make a material contribution to the proliferation of missiles. 
Applications for exports and reexports of such items contained in 
Category 7A or described by ECCN 9A101 on the CCL will be considered 
more favorably if such exports or reexports are determined to be 
destined to a manned aircraft, satellite, land vehicle, or marine 
vessel, in quantities appropriate for replacement parts for such 
applications. When an export or reexport is deemed to make a material 
contribution to the proliferation of missiles, the license will be 
denied.
    (2) The following factors are among those that will be considered in 
reviewing individual applications.
    (i) The specific nature of the end-use;
    (ii) The significance of the export and reexport in terms of its 
contribution to the design, development, production, or use of missiles;
    (iii) The capabilities and objectives of the missile and space 
programs of the recipient country;
    (iv) The nonproliferation credentials of the importing country;
    (v) The types of assurances or guarantees against design, 
development, production, or use of missiles that are given in a 
particular case; and
    (vi) The existence of a preexisting contract.
    (3) Controls on other items. BXA will review license applications, 
in accordance with the licensing policy described in paragraph (b)(1) of 
this section, for items not described in paragraph (a) of this section 
that:
    (i) Require a validated license for reasons other than short supply; 
and
    (ii) Could be destined for the design, development, production, or 
use of missiles, or for a facility engaged in such activities.
    (c) Contract sanctity. The following contract sanctity dates have 
been established:
    (1) License applications for batch mixers specified in ECCN 1B115.a 
involving contracts that were entered into prior to January 19, 1990, 
will be considered on a case-by-case basis.
    (2) License applications subject to ECCN 1B115.b or .c that involve 
a contract entered into prior to March 7, 1991, will be considered on a 
case-by-case basis.
    (3) Applicants who wish that a pre-existing contract be considered 
in reviewing their license applications must submit documentation 
sufficient to establish the existence of a contract.
    (d) Missile Technology Control Regime. Missile Technology Control 
Regime (MTCR) members are listed in Country Group A:2 (see Supplement 
No. 1 to part 740 of the EAR). Controls on items identified in paragraph 
(a) of this section are consistent with the list agreed to in the MTCR 
and included in the MTCR Annex.



Sec. 742.6  Regional stability.

    (a) License requirements. The following controls are maintained in 
support of U.S. foreign policy to maintain regional stability:
    (1) As indicated in the CCL and in RS Column 1 of the Country Chart 
(see Supplement No. 1 to part 738 of the EAR), a license is required to 
all destinations, except Canada, for items described on the CCL under 
ECCNs 6A002.a.1, a.2, a.3, or .c; 6A003.b.3 and b.4; 6D102 (only 
software for development of items in 6A002.a.1, a.2, a.3 or .c); 6E001 
(only technology for development of items in 6A002.a.1, a.2, a.3, and 
.c, or 6A003.b.3 and b.4); 6E002 (only technology for production of 
items in 6A002.a.1, a.2, a.3, or .c, or 6A003.b.3 or b.4); 7D001 (only 
software for development or production of items in 7A001, 7A002, or 
7A003); 7E001 (only technology

[[Page 214]]

for the development of inertial navigation systems, inertial equipment, 
and specially designed components therefor for civil aircraft); 7E002 
(only technology for the production of inertial navigation systems, 
inertial equipment, and specially designed components therefor for civil 
aircraft).
    (2) As indicated in the CCL and in RS Column 2 of the Country Chart 
(see Supplement No. 1 to part 738 of the EAR), a license is required to 
any destination except countries in Country Group A:1 (see Supplement 
No. 1 to part 740 of the EAR), Iceland and New Zealand for military 
vehicles and certain commodities (specially designed) used to 
manufacture military equipment, described on the CCL in ECCNs 0A018.c, 
1B018.a, 2B018, and 9A018.a and .b.
    (b) Licensing policy. (1) Applications to export and reexport items 
described in paragraph (a)(1) of this section will be reviewed on a 
case-by-case basis to determine whether the export or reexport could 
contribute directly or indirectly to any country's military capabilities 
in a manner that would alter or destabilize a region's military balance 
contrary to the foreign policy interests of the United States.
    (2) Applications to export and reexport commodities described in 
paragraph (a)(2) of this section will generally be considered favorably 
on a case-by-case basis unless there is evidence that the export or 
reexport would contribute significantly to the destabilization of the 
region to which the equipment is destined.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.
    (d) U.S. controls. Although the United States seeks cooperation from 
like-minded countries in maintaining regional stability controls, at 
this time these controls are maintained only by the United States.



Sec. 742.7  Crime control.

    (a) License requirements. In support of U.S. foreign policy to 
promote the observance of human rights throughout the world, a license 
is required to export and reexport crime control and detection 
equipment, related technology and software as follows:
    (1) Crime control and detection instruments and equipment and 
related technology and software identified in the appropriate ECCNs on 
the CCL under CC Column No. 1 in the Country Chart column of the 
``License Requirements'' section. A license is required to countries 
listed in CC Column 1 (Supplement No. 1 to part 738 of the EAR). Items 
affected by this requirement are identified on the CCL under the 
following ECCNs: 0A982, 0A984, 0A985, 0E984, 1A984, 3A980, 3A981, 3D980, 
3E980, 4A003 (fingerprint computers only), 4A980, 4D001 (for fingerprint 
computers only), 4D980, 4E001 (for fingerprint computers only); 4E980, 
6A002 (police-model infrared viewers only), 6E001 (for police-model 
infrared viewers only), 6E002 (for police-model infrared viewers only), 
and 9A980.
    (2) Shotguns with a barrel length of 24 inches or more identified in 
ECCN 0A984 on the CCL under CC Column No. 2 in the Country Chart column 
of the ``License Requirements'' section regardless of end-user to 
countries listed in CC Column 2 (Supplement No. 1 to part 738 of the 
EAR).
    (3) Shotguns with barrel length over 24 inches, identified in ECCN 
0A984 on the CCL under CC Column No. 3 in the Country Chart column of 
the ``License Requirements'' only if for sale or resale to police or law 
enforcement entities to countries listed in CC Column 3 (Supplement No. 
1 to part 738 of the EAR).
    (b) Licensing policy. Applications for items controlled under this 
section will generally be considered favorably on a case-by-case basis 
unless there is evidence that the government of the importing country 
may have violated internationally recognized human rights and that the 
judicious use of export controls would be helpful in deterring the 
development of a consistent pattern of such violations or in distancing 
the United States from such violations.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.
    (d) U.S. controls . Although the United States seeks cooperation 
from like-

[[Page 215]]

minded countries in maintaining controls on crime control and detection 
items, at this time these controls are maintained only by the United 
States.



Sec. 742.8  Anti-terrorism: Iran.

    (a) License requirements. (1) If AT column 1 or AT column 2 of the 
Country Chart (Supplement No. 1 to Part 738 of the EAR) is indicated in 
the appropriate ECCN, a license is required for export to Iran for anti-
terrorism purposes. In addition, portable electric power generators and 
related software and technology (ECCNs 2A994, 2D994 and 2E994) are 
controlled for export to Iran for anti-terrorism purposes. See paragraph 
(a)(5) of this section for controls maintained by the Department of the 
Treasury.
    (2) If AT column 1 or AT column 2 of the Country Chart (Supplement 
No. 1 to part 738 of the EAR) is indicated in the appropriate ECCN, a 
license is required for reexport to Iran for anti-terrorism purposes, 
except for ECCNs 2A994, 3A993, 5A992, 5A995, 6A990, 6A994, 7A994, 8A992, 
8A994, 9A990, 9A992 and 9A994. In addition, items in these ECCNs are not 
counted as controlled U.S. content for the purpose of determining 
license requirements for U.S. parts, components or materials 
incorporated into foreign-made products. However, the export from the 
United States to any destination with knowledge that they will be 
reexported directly or indirectly, in whole or in part to Iran is 
prohibited without a license. See Sec. 740.9 of the EAR for additional 
information. See paragraph (a)(5) of this section for controls 
maintained by the Department of the Treasury.
    (3) The Secretary of State has designated Iran as a country whose 
Government has repeatedly provided support for acts of international 
terrorism.
    (4) In support of U.S. foreign policy on terrorism-supporting 
countries, BXA maintains two types of anti-terrorism controls on the 
export and reexport of items described in Supplement 2 to part 742.
    (i) Items described in paragraphs (c)(1) through (c)(5) of 
Supplement No. 2 to part 742 are controlled under section 6(j) of the 
Export Administration Act, as amended (EAA), if destined to military, 
police, intelligence or other sensitive end-users.
    (ii) Items described in paragraphs (c)(1) through (c)(5) of 
Supplement No. 2 to part 742 destined to non-sensitive end-users, as 
well as items described in paragraphs (c)(6) through (c)(39) to all end-
users, are controlled to Iran under section 6(a) of the EAA. (See 
Supplement No. 2 to part 742 for more information on items controlled 
under sections 6(a) and 6(j) of the EAA and Sec. 750.6 of the EAR for 
procedures for processing license applications for items controlled 
under EAA section 6(j).)
    (5) Exports and certain reexports to Iran are subject to a 
comprehensive embargo administered by the Department of the Treasury's 
Office of Foreign Assets Control (OFAC). If you wish to export or 
reexport to Iran, the Government of Iran or any entity owned or 
controlled by that Government, you should review part 746 of the EAR and 
consult with OFAC. Please note that authorization from OFAC constitutes 
authorization under the EAR and no separate license or authorization 
from BXA is required.
    (b) Licensing policy. (1) The Iran-Iraq Arms Non-Proliferation Act 
of October 23, 1992, requires BXA to deny licenses for items controlled 
to Iran for national security (section 5 of the 1979 EAA) or foreign 
policy reasons (section 6 of the 1979 EAA), absent contract sanctity or 
a Presidential waiver. License applications for which contract sanctity 
is established may be considered under policies in effect prior to the 
enactment of that Act. Otherwise, licenses for such items to Iran are 
subject to a general policy of denial.
    (2) License applications for items controlled under section 6(a) of 
the EAA will also be reviewed to determine whether requirements of 
section 6(j) apply. Whenever the Secretary of State determines that an 
export or reexport could make a significant contribution to the military 
potential of Iran, including its military logistics capability, or could 
enhance Iran's ability to support acts of international terrorism, the 
Secretaries of State and Commerce will notify the Congress 30 days prior 
to the issuance of a license.
    (c) Contract sanctity. Contract sanctity dates and related policies 
for Iran

[[Page 216]]

are listed in Supplement No. 2 to part 742. Applicants who wish a pre-
existing contract to be considered must submit sufficient evidence to 
establish the existence of a contract.
    (d) U.S. controls. Although the United States seeks cooperation from 
like-minded countries in maintaining anti-terrorism controls, at this 
time these controls are maintained only by the United States.



Sec. 742.9  Anti-terrorism: Syria.

    (a) License requirements. (1) If AT Column 1 of the Country Chart 
(Supplement No. 1 to part 738 of the EAR) is indicated in the 
appropriate ECCN, a license is required for export and reexport to Syria 
for anti-terrorism purposes.
    (2) The Secretary of State has designated Syria as a country whose 
government has repeatedly provided support for acts of international 
terrorism.
    (3) In support of U.S. foreign policy against terrorism, BXA 
maintains two types of anti-terrorism controls on the export and 
reexport to Syria of items described in Supplement No. 2 to part 742.
    (i) Items described in paragraphs (c)(1) through (c)(5) of 
Supplement No. 2 to part 742, if destined to military, police, 
intelligence or other end-users in Syria, are controlled under section 
6(j) of the Export Administration Act, as amended (EAA).
    (ii) Items listed in paragraphs (c)(1) through (c)(5) of Supplement 
No. 2 to part 742 destined to other end-users in Syria, as well as items 
to all end-users listed in (c)(6) through (c)(8), (c)(10) through 
(c)(14), (c)(16) through (c)(19), and (c)(22) through (c)(39) of 
Supplement No. 2 to part 742, are controlled to Syria under section 6(a) 
of the EAA.
    (b) Licensing policy. (1) Applications for export and reexport to 
all end-users in Syria of the following items will generally be denied:
    (i) Items that are controlled for chemical and biological weapons 
proliferation reasons to any destination. These are items that contain 
CB Column 1, CB Column 2, or CB Column 3 in the Country Chart column of 
the ``License Requirements'' section of an ECCN on the CCL.
    (ii) Military-related items controlled for national security reasons 
to any destination. These are items that contain NS Column 1 in the 
Country Chart column of the ``License Requirements'' section in an ECCN 
on the CCL and is controlled by equipment or material entries ending in 
the number ``18.''
    (iii) Items that are controlled for missile proliferation reasons to 
any destination. These are items that have an MT Column 1 in the Country 
Chart column of the ``License Requirements'' section of an ECCN on the 
CCL.
    (iv) All aircraft (powered and unpowered), helicopters, engines, and 
related spare parts and components. These are items controlled to any 
destination for national security reasons and items controlled to Syria 
for anti-terrorism purposes. Such items contain an NS Column 1, NS 
Column 2, or AT Column 1 in the Country Chart column of the ``License 
Requirements'' section of an ECCN on the CCL. Note that, consistent with 
the general rule that applies to computing U.S. parts and components 
content incorporated in foreign made products, all aircraft-related 
items that require a license to Syria will be included as controlled US 
content for purposes of such license requirements.
    (v) Cryptographic, cryptoanalytic, and cryptologic items controlled 
to any destination for national security reasons. Such items contain an 
AT Column 1 and an NS Column 1 or NS Column 2 in the Country Chart 
column of the ``License Requirements'' section of an ECCN on the CCL.
    (vi) Explosive device detectors controlled under ECCN 2A993.
    (2) Applications for export and reexport to Syria of all other items 
described in paragraph (a) of this section, and not described by 
paragraph (b)(1) of this section, will generally be denied if the export 
or reexport is destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (3) Notwithstanding the provisions of paragraphs (b)(1) and (b)(2), 
of this section, applications for Syria will be considered on a case-by-
case basis if:
    (i) The transaction involves the reexport to Syria of items where 
Syria was

[[Page 217]]

not the intended ultimate destination at the time of original export 
from the United States, provided that the exports from the U.S. occurred 
prior to the applicable contract sanctity date (or, where the contract 
sanctity date is December 16, 1986, prior to June 18, 1987).
    (ii) The U.S. content of foreign-produced commodities is 20% or less 
by value; or
    (iii) The commodities are medical items.

    Note to paragraph (b) of this section: Applicants who wish any of 
the factors described in paragraph (b) of this section to be considered 
in reviewing their license applications must submit adequate 
documentation demonstrating the value of the U.S. content, the 
specifications and medical use of the equipment, or the date of export 
from the United States.

    (4) License applications for items reviewed under 6(a) controls will 
also be reviewed to determine the applicability of 6(j) controls to the 
transaction. When it is determined that an export or reexport could make 
a significant contribution to the military potential of Syria, including 
its military logistics capability, or could enhance Syria's ability to 
support acts of international terrorism, the Secretaries of State and 
Commerce will notify the Congress 30 days prior to issuance of a 
license.
    (c) Contract sanctity. Contract sanctity dates and related licensing 
policies for Syria are set forth in Supplement No. 2 to part 742. 
Applicants who wish a pre-existing contract to be considered must submit 
sufficient documentation to establish the existence of a contract.
    (d) U.S. controls. Although the United States seeks cooperation from 
like-minded countries in maintaining anti-terrorism controls, at this 
time these controls are maintained only by the United States.



Sec. 742.10  Anti-terrorism: Sudan.

    (a) License requirements. (1) If AT column 1 or AT column 2 
1 of the Country Chart (Supplement No. 1 to part 738 of the 
EAR) is indicated in the appropriate ECCN, a license is required for 
export to Sudan for anti-terrorism purposes.
---------------------------------------------------------------------------

    \1\ AT column 1 refers to items controlled to Iran, Sudan, and Syria 
for anti-terrorism purposes. AT column 2 refers to additional items 
controlled to Iran and Sudan for anti-terrorism purposes. In addition, 
items included in ECCNs 2A994, 2D994 and 2E994 are controlled to Iran 
for anti-terrorism purposes.
---------------------------------------------------------------------------

    (2) If AT column 1 or AT column 2 of the Country Chart (Supplement 
No. 1 to part 738 of the EAR) is indicated in the appropriate ECCN, a 
license is required for reexport to Sudan for anti-terrorism purposes, 
except for ECCNs 2A994, 3A993, 5A992, 5A995, 6A990, 6A994, 7A994, 8A992, 
8A994, 9A990, 9A992 and 9A994. In addition, items in these ECCNs are not 
counted as controlled U.S. content for the purpose of determining 
license requirements for U.S. parts, components or materials 
incorporated into foreign made products. However, the export from the 
United States to any destination with knowledge that they will be 
reexported directly or indirectly, in whole or in part to Sudan is 
prohibited without a license. See Sec. 740.9 of the EAR for additional 
information.
    (3) The Secretary of State has designated Sudan as a country whose 
government has repeatedly provided support for acts of international 
terrorism.
    (4) In support of U.S. foreign policy against terrorism, BXA 
maintains anti-terrorism controls on the export and reexport to Sudan of 
items described in Supplement No. 2 to part 742.
    (i) Items described in paragraph (c)(1) through (c)(5) of Supplement 
No. 2 to part 742 if destined to military, police, intelligence or other 
sensitive end-users in Sudan are controlled under section 6(j) of the 
Export Administration Act, as amended (EAA).
    (ii) Items listed in paragraphs (c)(1) through (c)(5) of Supplement 
No. 2 to part 742 destined to other end-users in Sudan, as well as items 
to all end-users listed in (c)(6) through (c)(14) and (c)(16) through 
(c)(39) of Supplement No. 2 to part 742 are controlled to Sudan under 
section 6(a) of the EAA.
    (b) Licensing policy. (1) Applications for export and reexport to 
all end-users in Sudan of the following items will generally be denied:

[[Page 218]]

    (i) Items that are controlled for chemical and biological weapons 
proliferation reasons to any destination. These are items that contain 
CB Column 1, CB Column 2, or CB Column 3 in the Country Chart column of 
the ``License Requirements'' section of an ECCN on the CCL.
    (ii) Military-related items controlled for national security reasons 
to any destination. These are items that contain NS Column 1 in the 
Country Chart column of the ``License Requirements'' section of an ECCN 
on the CCL and is controlled by equipment or material entries ending in 
the number ``18.''
    (iii) Items that are controlled for missile proliferation reasons to 
any destination. These are items that contain a MT Column 1 in the 
Country Chart column of the ``License Requirements'' section of an ECCN 
on the CCL.
    (iv) All aircraft (powered and unpowered), helicopters, engines, and 
related spare parts and components. These are items controlled to any 
destination for national security reasons and items controlled to Sudan 
for anti-terrorism reasons. Such items contain an NS Column 1, NS Column 
2, or AT Column 1 in the Country Chart column of the ``License 
Requirements'' section of an ECCN on the CCL. Note that, consistent with 
the general rule that applies to computing U.S. parts and components 
content incorporated in foreign made products, all aircraft-related 
items that require a license to Sudan will be included as controlled US 
content for purposes of such license requirements.
    (v) Cryptographic, cryptoanalytic, and cryptologic items controlled 
to any destination. These are items that contain an NS Column 1, NS 
Column 2, AT Column 1 or AT Column 2 in the Country Chart column of the 
``License Requirements'' section of an ECCN on the CCL.
    (vi) Explosive device detectors controlled under ECCN 2A993.
    (2) Applications for the export and reexport of all other items 
described in paragraph (a) of this section, and not described in 
paragraph (b)(1) of this section, will be denied if the export or 
reexport is destined to a military end-user or for military end-use. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (3) Notwithstanding the provisions of paragraphs (b)(1) and (b)(2) 
of this section, applications for Sudan will be considered on a case-by-
case basis if:
    (i) The transaction involves the reexport to Sudan of items where 
Sudan was not the intended ultimate destination at the time of original 
export from the United States, provided that the exports from the U.S. 
occurred prior to the applicable contract sanctity date.
    (ii) The U.S. content of foreign-produced commodities is 20% or less 
by value; or
    (iii) The commodities are medical items.

    Note to paragraph (b) of this section: Applicants who wish any of 
the factors described in paragraph (b)(4) of this section to be 
considered in reviewing their license applications must submit adequate 
documentation demonstrating the value of the U.S. content, the 
specifications and medical use of the equipment, or the date of export 
from the United States.

    (4) License applications for items reviewed under 6(a) controls will 
also be reviewed to determine the applicability of 6(j) controls to the 
transaction. When it is determined that an export or reexport could make 
a significant contribution to the military potential of Sudan, including 
its military logistics capability, or could enhance Sudan's ability to 
support acts of international terrorism, the appropriate committees of 
the Congress will be notified 30 days before issuance of a license to 
export or reexport such items.
    (c) Contract sanctity. Contract sanctity dates and related licensing 
information for Sudan are set forth in Supplement No. 2 to part 742. 
Applicants who wish a pre-existing contract to be considered must submit 
sufficient documentation to establish the existence of a contract.
    (d) U.S. controls. Although the United States seeks cooperation from 
like-minded countries in maintaining anti-terrorism controls, at this 
time these controls are maintained only by the United States.

[[Page 219]]



Sec. 742.11  Specially designed implements of torture.

    (a) License requirements. In support of U.S. foreign policy to 
promote the observance of human rights throughout the world, a license 
is required to export specially designed implements of torture 
controlled by 0A983 to all destinations, including Canada.
    (b) Licensing policy. Applications for such licenses will generally 
be denied to all destinations.
    (c) Contract sanctity. The contract sanctity date is November 9, 
1995. Contract sanctity will be a factor in considering only 
applications for export to the NATO countries, Japan, Australia, and New 
Zealand.
    (d) U.S. controls. Although the United States seeks cooperation from 
like-minded countries in maintaining controls on implements of torture, 
at this time these controls are maintained only by the United States.



Sec. 742.12  High performance computers.

    (a) License and recordkeeping requirements. (1) This section 
contains special provisions for exports, reexports, and certain intra-
country transfers of high performance computers, including software, and 
technology. This section affects the following ECCNs: 4A001, 4A002, 
4A003, 4D001, 4D002, and 4E001. It applies to computers with a Composite 
Theoretical Performance (CTP) greater than 2000, stated in Million 
Theoretical Operations Per Second (MTOPS). Licenses are required under 
this section for ECCN's having an ``XP'' under ``Reason for Control'' 
when License Exception CTP is not available (see Sec. 740.7 of the EAR). 
License requirements reflected in this section are based on particular 
destinations, end-users, or end-uses. For the calculation of CTP, see 
the Technical Note that follows the Advisory Notes for Category 4 in the 
Commerce Control List. Note that License Exception CTP contains 
restrictions on access by nationals of certain countries, and on 
reexports and transfers of computers.
    (2) In recognition of the strategic and proliferation significance 
of high performance computers, a license is required for the export or 
reexport of high performance computers to destinations, end-users, and 
end-uses, as specified in this section and on the CCL. These license 
requirements supplement requirements that apply for other control 
reasons, such as nuclear nonproliferation provided in Sec. 742.3 of the 
EAR. The license requirements described in this Sec. 742.12 are not 
reflected on the Country Chart (Supplement No. 1 to part 738 of the 
EAR). Four Computer Country Tiers have been established for the purposes 
of these controls. Countries included in Computer Tiers 1, 2, and 3 are 
listed in License Exception CTP in Sec. 740.7 of the EAR. Computer Tier 
4 consists of Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria.
    (3) Exporters must keep accurate records of each export to any 
destination of a computer with a CTP equal to or greater than 2,000 
MTOPS, irrespective of whether the export is made under License 
Exception or otherwise. These records will be made available to the U.S. 
Government upon request. The records will include the following 
information:
    (i) Date of shipment;
    (ii) Name and address of the end-user and each intermediate 
consignee;
    (iii) CTP of each computer in shipment;
    (iv) Volume of computers in shipment;
    (v) Dollar value of shipment; and
    (vi) End-Use.
    (4) Exporters are hereby notified that consistent with the 
commitments reached with the Wassenaar Arrangement, exporters will be 
required to submit to BXA consolidated reports on exports to certain 
destinations every six months of computers with a CTP equal to or 
greater than 2,000 MTOPS. These reports will include for each such 
export all the information required to be kept pursuant to paragraph (3) 
of Sec. 742.12(a). Exports of computers above 2,000 MTOPS to certain 
destinations will be subject to the reporting requirement once the 
initial elements of the Wassenaar Arrangement are adopted, and the first 
report will be due thereafter.
    (b) Licensing policy. Licensing policies described in this section 
vary according to the country of destination, and the end-use or end-
user involved in the

[[Page 220]]

transaction. Note that in addition, license applications for items 
covered by Sec. 742.12 will also be reviewed under the nuclear 
nonproliferation licensing policy in Sec. 742.3(b). In certain cases, 
licenses may be subject to safeguard conditions. The specific conditions 
that may be imposed by BXA will depend on the country of destination, 
and the end-use or end-user of the export. BXA may also require end-use 
certification which, in appropriate cases, is certified by the 
government of the importing country. The range of possible safeguard 
conditions and related information are provided in Supplement No. 3 to 
part 742.
    (1) Computer Tier 1--(i) License requirement. No license is required 
under this Sec. 742.12 for exports or reexports of computers to and 
among countries listed in Computer Tier 1, for consumption in such 
countries or other disposition in accordance with the EAR.
    (ii) Licensing policy. A license is not required under this 
Sec. 742.12.
    (2) Computer Tier 2--(i) License requirement. A license is required 
to export or reexport a computer having a Composite Theoretical 
Performance (CTP) greater than 10,000 Millions of Theoretical Operations 
Per Second (MTOPS) to a country in Computer Tier 2.
    (ii) Licensing policy. License applications for a country in 
Computer Tier 2 will generally be approved.
    (3) Computer Tier 3--(i) License requirement. (A) A license is 
required to export or reexport computers with a CTP greater than 2,000 
MTOPS to countries in Computer Tier 3 to military end-users and end-uses 
and to nuclear, chemical, biological, or missile end-users and end-uses 
defined in part 744 of the EAR in Computer Tier 3 countries.
    (B) A license is required to export or reexport computers with a CTP 
greater than 7,000 MTOPS to all end-users and end-uses located in 
countries in Computer Tier 3.
    (ii) Licensing policy. License applications for exports and 
reexports to military end-users and end-uses and nuclear, chemical, 
biological, or missile end-users and end-uses defined in part 744 of the 
EAR in countries in Computer Tier 3 will be reviewed on a case-by-case 
basis using the following criteria:
    (A) The presence and activities of countries and end-users of 
national security and proliferation concern and the relationships that 
exist between the government of the importing country and such countries 
and end-users;
    (B) The ultimate consignee's participation in, or support of, any of 
the following:
    (1) Activities that involve national security concerns; or
    (2) Nuclear, chemical, biological or missile proliferation 
activities described in part 744 of the EAR;
    (C) The extent to which the importing country is involved in 
nuclear, chemical, biological, or missile proliferation activities 
described in part 744 of the EAR;
    (D) The end-user, whether the end-use is single-purpose or multiple-
purpose.
    (iii) Licensing policy for other end-uses and end-users. License 
applications for exports and reexports to other end-users and end-uses 
located in countries in Computer Tier 3 will generally be approved.
    (4) Computer Tier 4--(i) License requirement. A license is required 
to export or reexport any items covered by this section to a country in 
Country Tier 4.
    (ii) Licensing policy. The licensing policies for countries in 
Computer Tier 4 are the same as described in the following EAR sections: 
for Sudan see Sec. 742.10(b); for Syria see Sec. 742.9(b); for Cuba see 
Sec. 746.2; for Iran see Sec. 746.7; for Iraq see Sec. 746.3; for Libya 
see Sec. 746.4; and for North Korea see Sec. 746.5.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications involving exports and reexports of 
high performance computers.
    (d) High performance computer regime. The United States and Japan 
participate in a high performance computer regime. Other countries are 
expected to join. The regime provides uniform and effective safeguards 
to protect high performance computers from unauthorized destinations, 
end-users and end-uses.

[61 FR 12786, Mar. 25, 1996, as amended at 61 FR 64283, Dec. 4, 1996]

[[Page 221]]



Sec. 742.13  Communications intercepting devices.

    (a) License requirement. (1) As set forth in ECCN 5A980, a license 
is required for the export or reexport to any destination, including 
Canada, of any electronic, mechanical, or other device primarily useful 
for surreptitious interception of wire or oral communications. This 
control implements a provision of the Omnibus Crime Control and Safe 
Streets Act of 1968 (Public Law 90-361). This license requirement is not 
reflected on the Country Chart (Supplement No. 1 to part 738 of the 
EAR).
    (2) Communications intercepting devices are electronic, mechanical, 
or other devices that can be used for interception of wire or oral 
communications if their design renders them primarily useful for 
surreptitious listening even though they may also have innocent uses. A 
device is not restricted merely because it is small or may be adapted to 
wiretapping or eavesdropping. Some examples of devices to which these 
restrictions apply are: the martini olive transmitter; the infinity 
transmitter; the spike mike; and the disguised microphone appearing as a 
wristwatch, cufflink, or cigarette pack; etc. The restrictions do not 
apply to devices such as the parabolic microphone or other directional 
microphones ordinarily used by broadcasters at sports events, since 
these devices are not primarily useful for surreptitious listening.
    (b) Licensing policy. (1) License applications will generally be 
approved for:
    (i) A provider of wire or electronic communication services or an 
officer, agent, or employee of, or person under contract with, such a 
provider in the normal course of the business of providing that wire or 
electronic communication service; and
    (ii) Officers, agents, or employees of, or person under contract 
with the United States, one of the 50 States, or a political subdivision 
thereof, when engaged in the normal course of government activities.
    (2) Other applications will generally be denied.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications involving exports and reexports of 
communications interception devices.
    (d) U.S. controls. Controls on this equipment are maintained by the 
United States government in accordance with the Omnibus Crime Control 
and Safe Streets Act of 1968.



Sec. 742.14  Significant items: commercial communications satellites; hot section technology for the development, production or overhaul of commercial aircraft 
          engines, components, and systems.

    (a) License requirements. Licenses are required for all 
destinations, except Canada, for ECCNs having an ``SI'' under the 
``Reason for Control'' paragraph. These items include commercial 
communications satellites controlled by ECCN 9A004.a., and hot section 
technology for the development, production or overhaul of commercial 
aircraft engines controlled under ECCN 9E003.a.1. through a.12., .f, and 
related controls.
    (b) Licensing policy. Pursuant to section 6 of the Export 
Administration Act of 1979, as amended (EAA), foreign policy controls 
apply to commercial communications satellites controlled under 9A004.a. 
and technology required for the development, production or overhaul of 
commercial aircraft engines controlled by ECCN 9E003.a.1. through a.12, 
.f, and related controls. These controls supplement the national 
security controls that apply to those items. Applications for export and 
reexport to all destinations will be reviewed on a case-by-case basis to 
determine whether the export or reexport is consistent with U.S. 
national security and foreign policy interests. The following factors 
are among those that will be considered to determine what action will be 
taken on license applications:
    (1) The country of destination;
    (2) The ultimate end-user(s);
    (3) The technology involved;
    (4) The specific nature of the end-use(s); and
    (5) The types of assurance against unauthorized use or diversion 
that are given in a particular case.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this Sec. 742.14.

[[Page 222]]

    (d) [Reserved]

[61 FR 54543, Oct. 21, 1996]



Sec. 742.15  Encryption items.

    Encryption items can be used to maintain the secrecy of information, 
and thereby may be used by persons abroad to harm national security, 
foreign policy and law enforcement interests. As the President indicated 
in E.O. 13026 and in his Memorandum of November 15, 1996, export of 
encryption software, like export of encryption hardware, is controlled 
because of this functional capacity to encrypt information on a computer 
system, and not because of any informational or theoretical value that 
such software may reflect, contain, or represent, or that its export may 
convey to others abroad. For this reason, export controls on encryption 
software are distinguished from controls on other software regulated 
under the EAR.
    (a) License requirements. Licenses are required for all 
destinations, except Canada, for ECCNs having an ``EI'' (for 
``encryption items'') under the ``Control(s)'' paragraph. Such items 
include: encryption commodities controlled under ECCN 5A002; encryption 
software controlled under ECCN 5D002; and encryption technology 
controlled under ECCN 5E002. (Refer to part 772 of the EAR for the 
definition of ``encryption items'). For encryption items previously on 
the U.S. Munitions List and currently authorized for export or reexport 
under a State Department license, distribution arrangement or any other 
authority of the State Department, U.S. persons holding valid USML 
licenses and other approvals issued by the Department of State prior to 
December 30, 1996 may ship remaining balances authorized by such 
licenses or approvals under the authority of the EAR by filing Shippers 
Export Declarations (SEDs) with District Directors of Customs, citing 
the provisions of this section effective on December 30, 1996 and the 
State Department license number. Such shipments shall be in accordance 
with the terms and conditions, including the expiration date, existing 
at the time of issuance of the State license. Violations of such 
authorizations, terms and conditions constitute violations of the EAR. 
Any reports required for distribution and other types of agreements 
previously authorized by the Department of State, valid prior to 
December 30, 1996, should be henceforth submitted to BXA at the 
following address: Office of Strategic Trade and Foreign Policy 
Controls, Bureau of Export Administration, Department of Commerce, 14th 
Street and Pennsylvania Ave., N.W., Room 2705, Washington, D.C. 20230.
    (b) Licensing policy. The following licensing policies apply to 
items identified in paragraph (a) of this section. This section refers 
you to Supplements No. 4, No. 5, and No. 7 to this part 742. For 
purposes of these supplements, ``products'' refers to commodities and 
software. Except as otherwise noted, applications will be reviewed on a 
case-by-case basis by BXA, in conjunction with other agencies, to 
determine whether the export or reexport is consistent with U.S. 
national security and foreign policy interests.
    (1) Certain mass-market encryption software. Consistent with E.O. 
13026 of November 15, 1996 (61 FR 58767), certain encryption software 
that was transferred from the U.S. Munitions List to the Commerce 
Control List pursuant to the Presidential Memorandum of November 15, 
1996 may be released from ``EI'' controls and thereby made eligible for 
mass market treatment after a one-time review. To determine eligibility 
for mass market treatment, exporters must submit a classification 
request to BXA. 40-bit mass market encryption software may be eligible 
for a 7-day review process, and company proprietary software may be 
eligible for 15-day processing. Refer to Supplement No. 6 to part 742 
and Sec. 748.3(b)(3) of the EAR for additional information. Note that 
the one-time review is for a determination to release encryption 
software in object code only unless otherwise specifically requested. 
Exporters requesting release of the source code should refer to 
paragraph (b)(3)(v)(E) of Supplement No. 6 to part 742. If, after a one-
time review, BXA determines that the software is released from EI 
controls, such software is eligible for all provisions of the EAR 
applicable to other software, such as License Exception TSU for mass-
market software. If BXA determines that

[[Page 223]]

the software is not released from EI controls, a license is required for 
export and reexport to all destinations, except Canada, and license 
applications will be considered on a case-by-case basis.
    (2) Key Escrow, Key Recovery and Recoverable encryption software and 
commodities. Recovery encryption software and equipment controlled for 
EI reasons under ECCN 5D002 or under ECCN 5A002, including encryption 
equipment designed or modified to use recovery encryption software, may 
be made eligible for license exception KMI after a one-time BXA review. 
License Exception KMI is available for all destinations except Cuba, 
Iran, Iraq, Libya, North Korea, Syria and Sudan. To determine 
eligibility, exporters must submit a classification request to BXA. 
Requests for one-time review of key escrow and key recovery encryption 
items will receive favorable consideration provided that, prior to the 
export or reexport, a key recovery agent satisfactory to BXA has been 
identified (refer to Supplement No. 5 to part 742) and security policies 
for safeguarding the key(s) or other material/information required to 
decrypt ciphertext as described in Supplement No. 5 to part 742 are 
established to the satisfaction of BXA and are maintained after export 
or reexport as required by the EAR. If the exporter or reexporter 
intends to be the key recovery agent, then the exporter or reexporter 
must meet all of the requirements of a key recovery agent identified in 
Supplement No. 5 to part 742. In addition, the key escrow or key 
recovery system must meet the criteria identified in Supplement No. 4 to 
part 742. Note that eligibility is dependent on continued fulfilment of 
the requirements of a key recovery agent identified in Supplement No. 5 
to part 742. Since the establishment of a key management infrastructure 
and key recovery agents may take some time, BXA will, while the 
infrastructure is being built, consider requests for eligibility to 
export key recovery encryption products which facilitate establishment 
of the key management infrastructure before a key recovery agent is 
named, consistent with national security and foreign policy. When BXA 
approves such cases, exporters of products described in Supplement No. 4 
to part 742 are required to furnish the name of an agent by December 31, 
1998. Requests for one-time review of recoverable products which allow 
government officials to obtain, under proper legal authority and without 
the cooperation or knowledge of the user, the plaintext of the encrypted 
data and communications will receive favorable consideration.
    (3) Non-recovery encryption items up to 56-bit key length DES or 
equivalent strength supported by a satisfactory business and marketing 
plan for exporting recoverable items and services. (i) Manufacturers of 
non-recovery encryption items up to 56-bit key length DES or equivalent 
strength will be permitted to export and reexport under the authority of 
License Exception KMI provided that the requirements and conditions of 
the License Exception are met. Exporters must submit a classification 
request for an initial BXA review of the item and a satisfactory 
business and marketing plan that explains in detail the steps the 
applicant will take during the two-year transition period beginning 
January 1, 1997 to develop, produce, and/or market encryption items and 
services with recoverable features. Manufacturers would commit to 
produce key recovery products. Others would commit to incorporate such 
products into their own products or services. Such efforts can include: 
the scale of key recovery research and development, product development, 
and marketing plans; significant steps to reflect potential customer 
demand for key recovery products in the firm's encryption-related 
business; and how soon a key recovery agent will be identified. Note 
that BXA will accept requests for classification of non-recoverable 
encryption items up to 56-bit key length DES or equivalent strength 
under this paragraph from distributors, re-sellers, integrators, and 
other entities that are not manufacturers of the encryption items. The 
use of License Exception KMI is not automatic; eligibility must be 
renewed every six months. Renewal after each six-month period will 
depend on the applicant's adherence to explicit benchmarks and

[[Page 224]]

milestones as set forth in the plan approved with the initial license 
classification and amendments as approved by BXA. This relaxation of 
controls and use of License Exception KMI will last through December 31, 
1998. The plan submitted with classifications for the export of non-
recoverable encryption items up to 56-bit key length DES or equivalent 
strength must include the elements in Supplement No. 7 to part 742.
    (ii) BXA will make a determination on such classification requests 
within 15 days of receipt. Exports and reexports of non-recoverable 
encryption items up to 56-bit key length DES or equivalent strength will 
be authorized under the provisions of License Exception KMI, contingent 
upon BXA's review and approval of a satisfactory progress report related 
to the ongoing plan submitted by the applicant. The applicant must 
submit a letter to BXA every six months requesting approval of the 
progress report. Note that distributors, re-sellers, integrators, or 
other entities that are not manufacturers of the encryption items are 
permitted to use License Exception KMI for exports and reexports of such 
items only in instances where a classification has been granted to the 
manufacturer of the encryption items or a classification has been 
granted to the distributors, re-sellers, integrators, or other entities. 
The authority to so export or reexport will be for a time period ending 
on the same day the producer's authority to export or reexport ends.
    (4) All other encryption items--(i) Encryption licensing 
arrangement. Applicants may submit license applications for exports and 
reexports of certain encryption commodities and software in unlimited 
quantities for all destinations except, Cuba, Iran, Iraq, Libya, North 
Korea, Syria, and Sudan. Applications will be reviewed on a case-by-case 
basis. Encryption licensing arrangements may be approved with extended 
validity periods specified by the applicant in block #24 on Form BXA-
748P. In addition, the applicant must specify the sales territory and 
classes of end-users. Such licenses may require the license holder to 
report to BXA certain information such as item description, quantity, 
value, and end-user name and address.
    (ii) Applications for encryption items not authorized under an 
encryption licensing arrangement. Applications for the export and 
reexport of all other encryption items will be considered on a case-by-
case basis.
    (5) Applications for encryption technology. Applications for the 
export and reexport of encryption technology will be considered on a 
case-by-case basis.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.
    (d) [Reserved]

[61 FR 68580, Dec. 30, 1996]

     Supplement No. 1 to Part 742--Nonproliferation of Chemical and 
                           Biological Weapons

    Note: Exports and reexports of items in performance of contracts 
entered into before the applicable contract sanctity date(s) will be 
eligible for review on a case-by-case basis or other applicable 
licensing policies that were in effect prior to the contract sanctity 
date. The contract sanctity dates set forth in this supplement are for 
the guidance of exporters. Contract sanctity dates are established in 
the course of the imposition of foreign policy controls on specific 
items and are the relevant dates for the purpose of licensing 
determinations involving such items. If you believe that a specific 
contract sanctity date is applicable to your transaction, you should 
include all relevant information with your license application.
    (1) The contract sanctity date for exports to Iran or Syria of 
dimethyl methylphosphonate, methyl phosphonyldifluoride, phosphorous 
oxychloride, thiodiglycol, dimethylamine hydrochloride, dimethylamine, 
ethylene chlorohydrin (2-chloroethanol), and potassium fluoride is April 
28, 1986.
    (2) The contract sanctity date for exports to Iran or Syria of 
dimethyl phosphite (dimethyl hydrogen phosphite), methyl 
phosphonyldichloride, 3-quinuclidinol, N,N-diisopropylamino-ethane-2-
thiol, N,N-diisopropylaminoethyl-2-chloride, 3-hydroxy-1-
methylpiperidine, trimethyl phosphite, phosphorous trichloride, and 
thionyl chloride is July 6, 1987.
    (3) The contract sanctity date for exports to Iran or Syria of items 
in ECCNs 1C351, 1C352, 1C353 and 1C354 is February 22, 1989.
    (4) The contract sanctity date for exports to Iran of dimethyl 
methylphosphonate, methylphosphonyl difluoride, phosphorus

[[Page 225]]

oxychloride, and thiodiglycol is February 22, 1989.
    (5) The contract sanctity date for exports to Iran, Libya or Syria 
of potassium hydrogen fluoride, ammonium hydrogen fluoride, sodium 
fluoride, sodium bifluoride, phosphorus pentasulfide, sodium cyanide, 
triethanolamine, diisopropylamine, sodium sulfide, and N,N -
diethylethanolamine is December 12, 1989.
    (6) The contract sanctity date for exports to all destinations 
(except Iran or Syria) of phosphorus trichloride, trimethyl phosphite, 
and thionyl chloride is December 12, 1989. For exports to Iran or Syria, 
paragraph (2) of this supplement applies.
    (7) The contract sanctity date for exports to all destinations 
(except Iran, Libya or Syria) of 2-chloroethanol and triethanolamine is 
January 15, 1991. For exports of 2-chloroethanol to Iran or Syria, 
paragraph (1) of this supplement applies. For exports of triethanolamine 
to Iran, Libya or Syria, paragraph (5) of this supplement applies.
    (8) The contract sanctity date for exports to all destinations 
(except Iran, Libya or Syria) of chemicals controlled by ECCN 1C350 is 
March 7, 1991, except for applications to export the following 
chemicals: 2-chloroethanol, dimethyl methylphosphonate, dimethyl 
phosphite (dimethyl hydrogen phosphite), methylphosphonyl dichloride, 
methylphosphonyl difluoride, phosphorus oxychloride, phosphorous 
trichloride, thiodiglycol, thionyl chloride triethanolamine, and 
trimethyl phosphite. (See also paragraphs (6) and (7) of this 
supplement.) For exports to Iran, Libya or Syria, see paragraphs (1) 
through (6) of this supplement.
    (9) The contract sanctity date for exports and reexports of the 
following commodities and technical data is March 7, 1991:
    (i) Equipment (for producing chemical weapon precursors and chemical 
warfare agents) described in ECCNs 2B350 and 2B351;
    (ii) Equipment and materials (for producing biological agents) 
described in ECCN 2B352; and
    (iii) Technology (for the production of equipment and materials 
described in 2B351 and 2B352) described in ECCN 2E301.
    (10) The contract sanctity date for license applications subject to 
Sec. 742.2(b)(3) of this part is March 7, 1991.
    (11) The contract sanctity date for reexports of chemicals 
controlled under ECCN 1C350 is March 7, 1991, except that the contract 
sanctity date for reexports of these chemicals to Iran, Libya or Syria 
is December 12, 1989.
    (12) The contract sanctity date for reexports of human pathogens, 
zoonoses, toxins, animal pathogens, genetically modified microorganisms 
and plant pathogens controlled by ECCNs 1C351, 1C352, 1C353 and 1C354 is 
March 7, 1991.

Supplement No. 2 to Part 742--Anti-Terrorism Controls; Iran, Syria, and 
           Sudan Contract Sanctity Dates and Related Policies

    Note: Exports and reexports of items in performance of contracts 
entered into before the applicable contract sanctity date(s) will be 
eligible for review on a case-by-case basis or other applicable 
licensing policies that were in effect prior to the contract sanctity 
date. The contract sanctity dates set forth in this supplement are for 
the guidance of exporters. Contract sanctity dates are established in 
the course of the imposition of foreign policy controls on specific 
items and are the relevant dates for the purpose of licensing 
determinations involving such items. If you believe that a specific 
contract sanctity date is applicable to your transaction, you should 
include all relevant information with your license application. BXA will 
determine any applicable contract sanctity date at the time an 
application with relevant supporting documents is submitted.

    (a) Terrorist-supporting countries. The Secretary of State has 
designated Cuba, Iran, Iraq, Libya, North Korea, Sudan and Syria as 
countries whose governments have repeatedly provided support for acts of 
international terrorism under section 6(j) of the Export Administration 
Act (EAA).
    (b) Items controlled under EAA sections 6(j) and 6(a). Whenever the 
Secretary of State determines that an export or reexport to any of these 
countries could make a significant contribution to the military 
potential of such country, including its military logistics capability, 
or could enhance the ability of such country to support acts of 
international terrorism, the item is subject to mandatory control under 
section EAA 6(j) and the Secretaries of Commerce and State are required 
to notify appropriate Committees of the Congress 30 days before a 
license for such an item may be issued.
    (1) On December 28, 1993, the Secretary of State determined that the 
export to Cuba, Libya, Iran, Iraq, North Korea, Sudan or Syria of items 
described in paragraphs (c)(1) through (c)(5) of this supplement, if 
destined to military, police, intelligence or other sensitive end-users, 
are controlled under EAA section 6(j). Therefore, the 30-day advance 
Congressional notification requirement applies to the export or reexport 
of these items to sensitive end-users in any of these countries.
    (2) License applications for items controlled to designated 
terrorist-supporting countries under EAA section 6(a) will also be 
reviewed to determine whether the Congressional notification 
requirements of EAA section 6(j) apply.

[[Page 226]]

    (3) Items controlled for anti-terrorism reasons under section 6(a) 
to Iran, Sudan and Syria are:
    (i) items described in paragraphs (c)(1) through (c)(5) to non-
sensitive end-users, and
    (ii) the following items to all end-users: for Iran, items in 
paragraphs (c)(6) through (c)(39) of this supplement; for Sudan, items 
in paragraphs (c)(6) through (c)(14), and (c)(16) through (c)(39) of 
this supplement; for Syria, items in paragraphs (c)(6) through (c)(8), 
(c)(10) through (c)(14), (c)(16) through (c)(19), and (c)(22) through 
(c)(39) of this supplement.
    (c) The license requirements and licensing policies for items 
controlled for anti-terrorism reasons to Iran, Syria and Sudan are 
generally described in Secs. 742.8, 742.9 and 742.10 of this part. This 
supplement provides guidance on licensing policies for Syria and Sudan 
and related contract sanctity dates that may be available for 
transactions benefitting from pre-existing contracts involving Syria and 
Sudan. This supplement also provides information on licensing policies 
and contract sanctity dates for Iran. Exporters are advised that the 
Treasury Department's Office of Foreign Assets Control administers a 
comprehensive trade and investment embargo against Iran (See Executive 
Orders 12957 and 12959 of March 15, 1995 and May 6, 1995, respectively.) 
Exporters are further advised that exports and reexports to Iran of 
items that are listed on the CCL as requiring a license for national 
security or foreign policy reasons are subject to a policy of denial 
under the Iran-Iraq Arms Non-Proliferation Act of October 23, 1992 (50 
U.S.C. 1701 note (1994)). Transactions involving Iran and benefitting 
from a contract that pre-dates October 23, 1992 may be considered under 
the applicable licensing policy in effect prior to that date.
    (1) All items subject to national security controls--(i) Iran. 
Applications for all end-users in Iran will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
items valued at $7 million or more: January 23, 1984.
    (B) Contract sanctity date for military end-users or end-uses of all 
other national security controlled items: September 28, 1984.
    (C) Contract sanctity date for non-military end-users or end-uses: 
August 28, 1991, unless otherwise specified in paragraphs (c)(2) through 
(c)(39) of this supplement.
    (ii) Syria. Applications for military end-users or military end-uses 
in Syria will generally be denied. Applications for non-military end-
users or end-uses will be considered on a case-by-case basis, unless 
otherwise specified in paragraphs (c)(2) through (c)(39) of this 
supplement. No contract sanctity date is available for items valued at 
$7 million or more to military end-users or end-uses. The contract 
sanctity date for all other items for all end-users: December 16, 1986.
    (iii) Sudan. Applications for military end-users or military end-
uses in Sudan will generally be denied. Applications for non-military 
end-users or end-uses will be considered on a case-by-case basis. 
Contract sanctity date: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for foreign 
policy reasons under EAA section 6(j) have a contract sanctity date of 
December 28, 1993).
    (2)  All items subject to chemical and biological weapons 
proliferation controls. Applications for all end-users in Iran, Syria or 
Sudan of these items will generally be denied. See Supplement No. 1 to 
part 742 for contract sanctity dates for Iran and Syria. Contract 
sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for foreign 
policy reasons under EAA section 6(j) have a contract sanctity date of 
December 28, 1993), or unless an earlier date for any item is listed in 
Supplement 1 to part 742.
    (3) All items subject to missile proliferation controls (MTCR). 
Applications for all end-users in Iran, Syria or Sudan will generally be 
denied. Contract sanctity provisions for Iran and Syria are not 
available. Contract sanctity date for Sudan: January 19, 1996, unless a 
prior contract sanctity date applies (e.g., items first controlled to 
Sudan for foreign policy reasons under EAA section 6(j) have a contract 
sanctity date of December 28, 1993).
    (4) All items subject to nuclear weapons proliferation controls 
(NRL)--(i) Iran. Applications for all end-users in Iran will generally 
be denied. No contract sanctity date is available.
    (ii) Syria. Applications for military end-users or end-uses to Syria 
will generally be denied. Applications for non-military end-users or 
end-uses will be considered on a case-by-case basis. No contract 
sanctity date is available.
    (iii) Sudan. Applications for military end-users or end-uses in 
Sudan will generally be denied. Applications for export and reexport to 
non-military end-users or end-uses will be considered on a case-by-case 
basis. No contract sanctity date is available.
    (5) All military-related items, i.e., applications for export and 
reexport of items controlled by CCL entries ending with the number 
``18''--(i) Iran. Applications for all end-users in Iran will generally 
be denied. Contract sanctity date: see paragraph (c)(1)(i) of this 
supplement.
    (ii) Syria. Applications for all end-users in Syria will generally 
be denied. Contract sanctity date: see paragraph (c)(1)(ii) of this 
supplement.
    (iii) Sudan. Applications for all end-users in Sudan will generally 
be denied. Contract

[[Page 227]]

sanctity date for Sudan: January 19, 1996, unless a prior contract 
sanctity date applies (e.g., items first controlled to Sudan for foreign 
policy reasons under EAA section 6(j) have a contract sanctity date of 
December 28, 1993).
    (6) All aircraft (powered and unpowered), helicopters, engines, and 
related spare parts and components--(i) Iran. Applications for all end-
users in Iran will generally be denied.
    (A) Contract sanctity date for helicopters exceeding 10,000 lbs. 
empty weight or fixed wing aircraft valued at $3 million or more: 
January 23, 1984.
    (B) Contract sanctity date for other helicopters and aircraft and 
gas turbine engines therefor: September 28, 1984.
    (C) Contract sanctity date for helicopter or aircraft parts and 
components controlled by 9A994: October 22, 1987.
    (ii) Syria. Applications for all end-users in Syria will generally 
be denied.
    (A) There is no contract sanctity for helicopters exceeding 10,000 
lbs. empty weight or fixed wing aircraft valued at $3 million or more; 
except that passenger aircraft, regardless of value, have a contract 
sanctity date of December 16, 1986, if destined for a regularly 
scheduled airline with assurance against military use.
    (B) Contract sanctity date for helicopters with 10,000 lbs. empty 
weight or less: April 28, 1986.
    (C) Contract sanctity date for other aircraft and gas turbine 
engines therefor: December 16, 1986.
    (D) Contract sanctity date for helicopter or aircraft parts and 
components controlled by 9A994: August 28, 1991.
    (iii) Sudan. Applications for all end-users in Sudan will generally 
be denied. Contract sanctity date: January 19, 1996.
    (7) Heavy duty, on-highway tractors--(i) Iran. Applications for all 
end-users in Iran will generally be denied. Contract sanctity date: 
August 28, 1991.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria will generally be denied. Applications for non-military 
end-users or for non-military end-uses in Syria will be considered on a 
case-by-case basis. Contract sanctity date: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan will generally be denied. Applications for non-
military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date: January 19, 
1996.
    (8) Off-highway wheel tractors of carriage capacity 9t (10 tons) or 
more--(i) Iran. Applications for all end-users in Iran will generally be 
denied. Contract sanctity date: October 22, 1987.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria will generally be denied. Applications for non-military 
end-users or for non-military end-uses in Syria will be considered on a 
case-by-case basis. Contract sanctity date: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan will generally be denied. Applications for non-
military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date: January 19, 
1996.
    (9) Large diesel engines (greater than 400 horsepower) and parts to 
power tank transporters--(i) Iran. Applications for all end-users in 
Iran will generally be denied. Contract sanctity date: October 22, 1987.
    (ii) Sudan. Applications for military end-users or for military end-
uses in Sudan will generally be denied. Applications for non-military 
end-users or for non-military end-uses in Sudan will be considered on a 
case-by-case basis. Contract sanctity date: January 19, 1996.
    (10) Cryptographic, cryptoanalytic, and cryptologic equipment--(i) 
Iran. Applications for all end-users in Iran will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
cryptographic, cryptoanalytic, and cryptologic equipment that was 
subject to national security controls on October 22, 1987: see paragraph 
(c)(1)(i) of this supplement.
    (B) Contract sanctity date for all other cryptographic, 
cryptoanalytic, and cryptologic equipment for all end-users: October 22, 
1987.
    (ii) Syria. A license is required for all national security-
controlled cryptographic, cryptoanalytic, and cryptologic equipment to 
all end-users. Applications for all end-users in Syria will generally be 
denied. Contract sanctity date for cryptographic, cryptoanalytic, and 
cryptologic equipment that was subject to national security controls on 
August 28, 1991: see paragraph (c)(1)(ii) of this supplement.
    (iii) Sudan. Applications for all end-users in Sudan of any such 
equipment will generally be denied. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (11) Navigation, direction finding, and radar equipment--(i) Iran. 
Applications for all end-users in Iran will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
navigation, direction finding, and radar equipment that was subject to 
national security controls on August 28, 1991: see paragraph (c)(1)(i) 
of this supplement.

[[Page 228]]

    (B) Contract sanctity date for all other navigation, direction 
finding, and radar equipment for all end-users: October 22, 1987.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of such equipment will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Syria will be 
considered on a case-by-case basis.
    (A) Contract sanctity date for exports of navigation, direction 
finding, and radar equipment that was subject to national security 
controls on August 28, 1991: see paragraph (c)(1)(ii) of this 
supplement.
    (B) Contract sanctity date for all other navigation, direction 
finding, and radar equipment: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan will generally be denied. Applications for non-
military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (12) Electronic test equipment--(i) Iran. Applications for all end-
users in Iran will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
electronic test equipment that was subject to national security controls 
on October 22, 1987: see paragraph (c)(1)(i) of this supplement.
    (B) Contract sanctity date for all other electronic test equipment 
for all end-users: October 22, 1987.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of such equipment will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Syria will be 
considered on a case-by-case basis.
    (A) Contract sanctity date for electronic test equipment that was 
subject to national security controls on August 28, 1991: see paragraph 
(c)(1)(ii) of this supplement.
    (B) Contract sanctity date for all other electronic test equipment: 
August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses in 
Sudan will be considered on a case-by-case basis. Contract sanctity date 
for Sudan: January 19, 1996, unless a prior contract sanctity date 
applies (e.g., items first controlled to Sudan for foreign policy 
reasons under EAA section 6(j) have a contract sanctity date of December 
28, 1993).
    (13) Mobile communications equipment--(i) Iran. Applications for all 
end-users in Iran of such equipment will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
mobile communications equipment that was subject to national security 
controls on October 22, 1987: see paragraph (c)(1)(i) of this 
supplement.
    (B) Contract sanctity date for all end-users of all other mobile 
communications equipment: October 22, 1987.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of such equipment will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Syria will be 
considered on a case-by-case basis.
    (A) Contract sanctity date for mobile communications equipment that 
was subject to national security controls on August 28, 1991: see 
paragraph (c)(1)(ii) of this supplement.
    (B) Contract sanctity date for exports of all other mobile 
communications equipment: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses in 
Sudan will be considered on a case-by-case basis. Contract sanctity date 
for Sudan: January 19, 1996, unless a prior contract sanctity date 
applies (e.g., items first controlled to Sudan for foreign policy 
reasons under EAA section 6(j) have a contract sanctity date of December 
28, 1993).
    (14) Acoustic underwater detection equipment--(i) Iran. Applications 
for all end-users in Iran of such equipment will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
acoustic underwater detection equipment that was subject to national 
security controls on October 22, 1987: see paragraph (c)(1)(i) of this 
supplement.
    (B) Contract sanctity date for all other acoustic underwater 
detection equipment for all end-users: October 22, 1987.
    (ii) Syria. A license is required for acoustic underwater detection 
equipment that was subject to national security controls on August 28, 
1991, to all end-users. Applications for military end-users or for 
military end-uses in Syria will generally be denied. Applications for 
non-military end-users or for non-military end-uses in Syria will be 
considered on a case-by-case basis. Contract sanctity date for acoustic 
underwater detection equipment that was subject to national security 
controls on August 28, 1991: see paragraph (c)(1)(ii) of this 
supplement.
    (iii) Sudan. Applications for military end-users or for military 
end-uses to Sudan of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses in 
Sudan will be considered on a case-by-case basis. Contract sanctity date 
for Sudan: January 19, 1996, unless a prior contract sanctity date 
applies

[[Page 229]]

(e.g., items first controlled to Sudan for foreign policy reasons under 
EAA section 6(j) have a contract sanctity date of December 28, 1993).
    (15) Portable electric power generators--(i) Iran. Applications for 
all end-users in Iran of such equipment will generally be denied. 
Contract sanctity date: October 22, 1987.
    (ii) [Reserved]
    (16) Vessels and boats, including inflatable boats--(i) Iran. 
Applications for all end-users in Iran of these items will generally be 
denied.
    (A) Contract sanctity date for military end-users or end-uses of 
vessels and boats that were subject to national security controls on 
October 22, 1987: see paragraph (c)(1)(i) of this supplement.
    (B) Contract sanctity date for all other vessels and boats for all 
end-users: October 22, 1987.
    (ii) Syria. A license is required for national security-controlled 
vessels and boats. Applications for military end-users or for military 
end-uses in Syria of these items will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Syria will be 
considered on a case-by-case basis. Contract sanctity date for vessels 
and boats that were subject to national security controls on August 28, 
1991: see paragraph (c)(1)(ii) of this supplement.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (17) Marine and submarine engines (outboard/inboard, regardless of 
horsepower)--(i) Iran. Applications for all end-users in Iran of these 
items will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
marine and submarine engines that were subject to national security 
controls on October 22, 1987: See paragraph (c)(1)(i) of this 
supplement.
    (B) Contract sanctity date for outboard engines of 45 HP or more for 
all end-users: September 28, 1984.
    (C) Contract sanctity date for all other marine and submarine 
engines for all end-users: October 22, 1987.
    (ii) Syria. A license is required for all marine and submarine 
engines subject to national security controls to all end-users. 
Applications for military end-users or for military end-uses in Syria of 
these items will generally be denied. Applications for non-military end-
users or for non-military end-uses in Syria will be considered on a 
case-by-case basis. Contract sanctity date for marine and submarine 
engines that were subject to national security controls on August 28, 
1991: See paragraph (c)(1)(ii) of this supplement.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (18) Underwater photographic equipment--(i) Iran. Applications for 
all end-users in Iran of such equipment will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
underwater photographic equipment that was subject to national security 
controls on October 22, 1987: See paragraph (c)(1)(i) of this 
supplement.
    (B) Contract sanctity date for all other underwater photographic 
equipment for all end-users: October 22, 1987.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of such equipment will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Syria will be 
considered on a case-by-case basis.
    (A) Contract sanctity date for underwater photographic equipment 
that was subject to national security controls on August 28, 1991: See 
paragraph (c)(1)(ii) of this supplement.
    (B) Contract sanctity date for all other underwater photographic 
equipment: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses in 
Sudan will be considered on a case-by-case basis. Contract sanctity date 
for Sudan: January 19, 1996, unless a prior contract sanctity date 
applies (e.g., items first controlled to Sudan for foreign policy 
reasons under EAA section 6(j) have a contract sanctity date of December 
28, 1993).
    (19) Submersible systems--(i) Iran. Applications for all end-users 
in Iran of such systems will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
submersible systems that were subject to national security controls on 
October 22, 1987: See paragraph (c)(1)(i) of this supplement.
    (B) Contract sanctity date for all other submersible systems for all 
end-users: October 22, 1987.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of such systems will generally be denied. Applications for 
non-military end-users or for

[[Page 230]]

non-military end-uses in Syria will be considered on a case-by-case 
basis.
    (A) Contract sanctity date for submersible systems that were subject 
to national security controls on August 28, 1991: See paragraph 
(c)(1)(ii) of this supplement.
    (B) Contract sanctity date for all other submersible systems: August 
28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such systems will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (20) Scuba gear and related equipment--(i) Iran. Applications for 
all end-users in Iran of such equipment will generally be denied. No 
contract sanctity is available for such items to Iran.
    (ii) Sudan. Applications for military end-users and end-uses in 
Sudan of these items will generally be denied. Applications for non-
military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date: January 19, 
1996.
    (21) Pressurized aircraft breathing equipment--(i) Iran. 
Applications for all end-users in Iran of such equipment will generally 
be denied. Contract sanctity date: October 22, 1987.
    (ii) Sudan. Applications for military end-users or for military end-
uses in Sudan of these items will generally be denied. Applications for 
non-military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date: January 19, 
1996.
    (22) Computer numerically controlled machine tools--(i) Iran. 
Applications for all end-users in Iran of these items will generally be 
denied.
    (A) Contract sanctity date for military end-users and end-uses of 
computer numerically controlled machine tools that were subject to 
national security controls on August 28, 1991: See paragraph (c)(1)(i) 
of this supplement.
    (B) Contract sanctity dates for all other computer numerically 
controlled machine tools for all end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of these items will generally be denied. Applications for 
non-military end-users or for non-military end-uses will be considered 
on a case-by-case basis.
    (A) Contract sanctity date for computer numerically controlled 
machine tools that were subject to national security controls on August 
28, 1991: See paragraph (c)(1)(ii) of this supplement.
    (B) Contract sanctity date for exports of all other computer 
numerically controlled machine tools: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (23) Vibration test equipment--(i) Iran. Applications for all end-
users in Iran of such equipment will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses of 
vibration test equipment that was subject to national security controls 
on August 28, 1991: See paragraph (c)(1)(i) of this supplement.
    (B) Contract sanctity dates for all other vibration test equipment 
for all end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of such equipment will generally be denied. Applications 
for non-military end-users or for non-military end-uses will be 
considered on a case-by-case basis.
    (A) Contract sanctity date for vibration test equipment that was 
subject to national security controls on August 28, 1991: See paragraph 
(c)(1)(ii) of this supplement.
    (B) Contract sanctity date for exports of all other vibration test 
equipment: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses in 
Sudan will be considered on a case-by-case basis. Contract sanctity date 
for Sudan: January 19, 1996, unless a prior contract sanctity date 
applies (e.g., items first controlled to Sudan for foreign policy 
reasons under EAA section 6(j) have a contract sanctity date of December 
28, 1993).
    (24) Digital computers with a CTP of 6 or above, assemblies, related 
equipment, equipment for development or production of magnetic and 
optical storage equipment, and materials for fabrication of head/disk 
assemblies--(i) Iran. Applications for all end-users in Iran of these 
items will generally be denied.
    (A) Contract sanctity dates for military end-users and end-uses of 
items that were subject to national security controls on August 28, 
1991: See paragraph (c)(1)(i) of this supplement.
    (B) Contract sanctity date for all other items for all end-users: 
August 28, 1991.

[[Page 231]]

    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of these items will generally be denied. Applications for 
non-military end-users or for non-military end-uses will be considered 
on a case-by-case basis.
    (A) Contract sanctity dates for items that were subject to national 
security controls on August 28, 1991: See paragraph (c)(1)(ii) of this 
supplement.
    (B) Contract sanctity date for all other items: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (25) Telecommunications equipment--(i) A license is required for the 
following telecommunications equipment:
    (A) Radio relay systems or equipment operating at a frequency equal 
to or greater than 19.7 GHz or ``spectral efficiency'' greater than 3 
bit/s/Hz;
    (B) Fiber optic systems or equipment operating at a wavelength 
greater than 1000 nm;
    (C) ``Telecommunications transmission systems'' or equipment with a 
``digital transfer rate'' at the highest multiplex level exceeding 45 
Mb/s.
    (ii) Iran. Applications for all end-users in Iran of such equipment 
will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses of 
telecommunications equipment that was subject to national security 
controls on August 28, 1991: See paragraph (c)(1)(i) of this supplement.
    (B) Contract sanctity dates for all other vibration test equipment 
for all end-users: August 28, 1991.
    (iii) Syria. Applications for military end-users or for military 
end-uses in Syria of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses 
will be considered on a case-by-case basis.
    (A) Contract sanctity date for exports of telecommunications 
equipment that was subject to national security controls on August 28, 
1991: See paragraph (c)(1)(ii) of this supplement.
    (B) Contract sanctity date for exports of all other 
telecommunications equipment: August 28, 1991.
    (iv) Sudan. Applications for military end-users or for military end-
uses in Sudan of such equipment will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (26) Microprocessors operating at a clock speed over 25 MHz--(i) 
Iran. Applications for all end-users in Iran of these items will 
generally be denied.
    (A) Contract sanctity date for military end-users and end-uses of 
microprocessors that were subject to national security controls on 
August 28, 1991: See paragraph (c)(1)(i) of this supplement.
    (B) Contract sanctity dates for all other microprocessors for all 
end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of these items will generally be denied. Applications for 
non-military end-users or for non-military end-uses will be considered 
on a case-by-case basis.
    (A) Contract sanctity date for microprocessors that were subject to 
national security controls on August 28, 1991: See paragraph (c)(1)(ii) 
of this supplement.
    (B) Contract sanctity date for all other microprocessors: August 28, 
1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (27) Semiconductor manufacturing equipment. For Iran, Syria or 
Sudan, a license is required for all such equipment described in ECCNs 
3B001 and 3B991--(i) Iran. Applications for all end-users in Iran of 
such equipment will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses of 
semiconductor manufacturing equipment that was subject to national 
security controls on August 28, 1991: See paragraph (c)(1)(i) of this 
supplement.
    (B) Contract sanctity dates for all other microprocessors for all 
end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of such equipment will generally be denied. Applications 
for non-military end-users or for non-military end-uses will be 
considered on a case-by-case basis.
    (A) Contract sanctity date for such semiconductor manufacturing 
equipment that was subject to national security controls on

[[Page 232]]

August 28, 1991: See paragraph (c)(1)(ii) of this supplement.
    (B) Contract sanctity date for all other semiconductor manufacturing 
equipment: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses in 
Sudan will be considered on a case-by-case basis. Contract sanctity date 
for Sudan: January 19, 1996, unless a prior contract sanctity date 
applies (e.g., items first controlled to Sudan for foreign policy 
reasons under EAA section 6(j) have a contract sanctity date of December 
28, 1993).
    (28) Software specially designed for the computer-aided design and 
manufacture of integrated circuits--(i) Iran. Applications for all end-
users in Iran of such software will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses of 
such software that was subject to national security controls on August 
28, 1991: See paragraph (c)(1)(i) of this supplement.
    (B) Contract sanctity dates for all other such software for all end-
users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of such software will generally be denied. Applications 
for non-military end-users or for non-military end-uses will be 
considered on a case-by-case basis.
    (A) Contract sanctity date for such software that was subject to 
national security controls on August 28, 1991: See paragraph (c)(1)(ii) 
of this supplement.
    (B) Contract sanctity date for all other such software: August 28, 
1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such software will generally be denied. 
Applications for non-military end-users or for non-military end-uses in 
Sudan will be considered on a case-by-case basis. Contract sanctity date 
for Sudan: January 19, 1996, unless a prior contract sanctity date 
applies (e.g., items first controlled to Sudan for foreign policy 
reasons under EAA section 6(j) have a contract sanctity date of December 
28, 1993).
    (29) Packet switches. Equipment described in ECCNs 5A001.c and 
5A994--(i) Iran. Applications for all end-users in Iran of such 
equipment will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses in 
Iran of packet switches that were subject to national security controls 
on August 28, 1991: See paragraph (c)(1)(i) of this supplement.
    (B) Contract sanctity dates for all other packet switches for all 
end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of such equipment will generally be denied. Applications 
for non-military end-users or for non-military end-uses will be 
considered on a case-by-case basis.
    (A) Contract sanctity date for packet switches that were subject to 
national security controls on August 28, 1991: See paragraph (c)(1)(ii) 
of this supplement.
    (B) Contract sanctity date for all other packet switches: August 28, 
1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses in 
Sudan will be considered on a case-by-case basis. Contract sanctity date 
for Sudan: January 19, 1996, unless a prior contract sanctity date 
applies (e.g., items first controlled to Sudan for foreign policy 
reasons under EAA section 6(j) have a contract sanctity date of December 
28, 1993).
    (30) Specially designed software for air traffic control 
applications that uses any digital signal processing techniques for 
automatic target tracking or that has a facility for electronic 
tracking--(i) Iran. Applications for all end-users in Iran of such 
software will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses of 
such software that was subject to national security controls on August 
28, 1991: See paragraph (c)(1)(i) of this supplement.
    (B) Contract sanctity dates for all other such software for all end-
users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of such software will generally be denied. Applications 
for non-military end-users or for non-military end-uses will be 
considered on a case-by-case basis.
    (A) Contract sanctity date for such software that was subject to 
national security controls on August 28, 1991: See paragraph (c)(1)(ii) 
of this supplement.
    (B) Contract sanctity date for exports of such software: August 28, 
1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such software will generally be denied. 
Applications for non-military end-users or for non-military end-uses in 
Sudan will be considered on a case-by-case basis. Contract sanctity date 
for Sudan: January 19, 1996, unless a prior contract sanctity date 
applies (e.g., items first controlled to Sudan for foreign policy 
reasons under EAA section 6(j) have a contract sanctity date of December 
28, 1993).
    (31) Gravity meters having static accuracy of less (better) than 100 
microgal, or gravity meters of the quartz element (worden) type--(i) 
Iran.

[[Page 233]]

Applications for all end-users in Iran of these items will generally be 
denied.
    (A) Contract sanctity date for military end-users and end-uses of 
gravity meters that were subject to national security controls on August 
28, 1991: See paragraph (c)(1)(i) of this supplement.
    (B) Contract sanctity dates for all other such gravity meters for 
all end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of these items will generally be denied. Applications for 
non-military end-users or for non-military end-uses will be considered 
on a case-by-case basis.
    (A) Contract sanctity date for gravity meters that were subject to 
national security controls on August 28, 1991: See paragraph (c)(1)(ii) 
of this supplement.
    (B) Contract sanctity date for exports of all other such gravity 
meters: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (32) Magnetometers with a sensitivity lower (better) than 1.0 nt rms 
per square root Hertz--(i) Iran. Applications for all end-users in Iran 
of these items will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses of 
such magnetometers that were subject to national security controls on 
August 28, 1991: See paragraph (c)(1)(i) of this supplement.
    (B) Contract sanctity dates for all other such magnetometers for all 
end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of these items will generally be denied. Applications for 
non-military end-users or for non-military end-uses will be considered 
on a case-by-case basis.
    (A) Contract sanctity date for such magnetometers that were subject 
to national security controls on August 28, 1991: See paragraph 
(c)(1)(ii) of this supplement.
    (B) Contract sanctity date for all other such magnetometers: August 
28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (33) Fluorocarbon compounds described in ECCN 1C994 for cooling 
fluids for radar--(i) Iran. Applications for all end-users in Iran of 
such compounds will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses of 
such fluorocarbon compounds that were subject to national security 
controls on August 28, 1991: See paragraph (c)(1)(i) of this supplement.
    (B) Contract sanctity dates for all other such fluorocarbon 
compounds for all end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of such compounds will generally be denied. Applications 
for non-military end-users or for non-military end-uses will be 
considered on a case-by-case basis.
    (A) Contract sanctity date for such fluorocarbon compounds that were 
subject to national security controls on August 28, 1991: See paragraph 
(c)(1)(ii) of this supplement.
    (B) Contract sanctity date for all other such fluorocarbon 
compounds: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such compounds will generally be denied. 
Applications for non-military end-users or for non-military end-uses in 
Sudan will be considered on a case-by-case basis. Contract sanctity date 
for Sudan: January 19, 1996, unless a prior contract sanctity date 
applies (e.g., items first controlled to Sudan for foreign policy 
reasons under EAA section 6(j) have a contract sanctity date of December 
28, 1993).
    (34) High strength organic and inorganic fibers (kevlar) described 
in ECCN 1C210--(i) Iran. Applications for all end-users in Iran of such 
fibers will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses of 
high strength organic and inorganic fibers (kevlar) described in 1C210 
that were subject to national security controls on August 28, 1991: See 
paragraph (c)(1)(i) of this supplement.
    (B) Contract sanctity dates for all other high strength organic and 
inorganic fibers (kevlar) described in 1C210 for all end-users: August 
28, 1991.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of such fibers will generally be denied. Applications for 
non-military end-users or for non-military end-uses will be considered 
on a case-by-case basis.
    (A) Contract sanctity date for high strength organic and inorganic 
fibers (kevlar) described in 1C210 that were subject to national 
security controls on August 28, 1991: See paragraph (c)(1)(ii) of this 
supplement.

[[Page 234]]

    (B) Contract sanctity date for all other high strength organic and 
inorganic fibers (kevlar) described in 1C210: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of such fibers will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (35) Machines described in ECCNs 2B003 and 2B993 for cutting gears 
up to 1.25 meters in diameter--(i) Iran. Applications for all end-users 
in Iran of these items will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses of 
such machines that were subject to national security controls on August 
28, 1991: See paragraph (c)(1)(i) of this supplement.
    (B) Contract sanctity dates for all other such machines for all end-
users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of these items will generally be denied. Applications for 
non-military end-users or for non-military end-uses will be considered 
on a case-by-case basis.
    (A) Contract sanctity date for machines that were subject to 
national security controls on August 28, 1991: See paragraph (c)(1)(ii) 
of this supplement.
    (B) Contract sanctity date for all other machines: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (36) Aircraft skin and spar milling machines--(i) Iran. Applications 
for all end-users in Iran of these items will generally be denied.
    (A) Contract sanctity date for military end-users and end-uses of 
aircraft skin and spar milling machines that were subject to national 
security controls on August 28, 1991: See paragraph (c)(1)(i) of this 
supplement.
    (B) Contract sanctity dates for all other aircraft skin and spar 
milling machines to all end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of these items will generally be denied. Applications for 
non-military end-users or for non-military end-uses will be considered 
on a case-by-case basis.
    (A) Contract sanctity date for aircraft skin and spar milling 
machines that were subject to national security controls on August 28, 
1991: See paragraph (c)(1)(ii) of this supplement.
    (B) Contract sanctity date for all other aircraft skin and spar 
milling machines: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (37) Manual dimensional inspection machines described in ECCN 
2B992--(i) Iran. Applications for all end-users in Iran of these items 
will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
manual dimensional inspection machines that were subject to national 
security controls on August 28, 1991: See paragraph (c)(1)(i) of this 
supplement.
    (B) Contract sanctity date for all other manual dimensional 
inspection machines for all end-users: August 28, 1991.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of these items will generally be denied. Applications for 
non-military end-users or for non-military end-uses in Syria will be 
considered on a case-by-case basis.
    (A) Contract sanctity date for such manual dimensional inspection 
machines that were subject to national security controls on August 28, 
1991: See paragraph (c)(1)(ii) of this supplement.
    (B) Contract sanctity date for all other such manual dimensional 
inspection machines: August 28, 1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (38) Robots capable of employing feedback information in real time 
processing to generate or modify programs--(i) Iran. Applications for 
all end-users in Iran of these items will generally be denied.
    (A) Contract sanctity date for military end-users or end-uses of 
such robots that

[[Page 235]]

were subject to national security controls on August 28, 1991: See 
paragraph (c)(1)(i) of this supplement.
    (B) Contract sanctity date for all other such robots: August 28, 
1991.
    (ii) Syria. Applications for military end-users or for military end-
uses in Syria of these items will generally be denied. Applications for 
non-military end-users or for non-military end-uses in Syria will be 
considered on a case-by-case basis.
    (A) Contract sanctity date for such robots that were subject to 
national security controls on August 28, 1991: See paragraph (c)(1)(ii) 
of this supplement.
    (B) Contract sanctity date for all other such robots: August 28, 
1991.
    (iii) Sudan. Applications for military end-users or for military 
end-uses in Sudan of these items will generally be denied. Applications 
for non-military end-users or for non-military end-uses in Sudan will be 
considered on a case-by-case basis. Contract sanctity date for Sudan: 
January 19, 1996, unless a prior contract sanctity date applies (e.g., 
items first controlled to Sudan for foreign policy reasons under EAA 
section 6(j) have a contract sanctity date of December 28, 1993).
    (39) Explosive device detectors--(i) Iran. Applications for all end-
users in Iran of these items will generally be denied. Contract sanctity 
date: January 19, 1996.
    (ii) Syria. Applications for all end-users in Syria of these items 
will generally be denied. Contract sanctity date: January 19, 1996.
    (iii) Sudan. Applications for all end-users in Sudan of these items 
will generally be denied. Contract sanctity date: January 19, 1996.

  Supplement No. 3 to Part 742--High Performance Computers; Safeguard 
                   Conditions and Related Information

    This supplement sets forth the security conditions and safeguard 
plans for the export, reexport, or in-country transfer of high 
performance computers that may be imposed by BXA to certain 
destinations. The licensing policies for the export, reexport, or in-
country transfer of high performance computers are set forth in 
Sec. 742.12 of this part.
    (a) Safeguard conditions. Following interagency review of the 
application, the Bureau of Export Administration (BXA) will instruct the 
exporter to submit a safeguard plan signed by the ultimate consignee and 
certified by the export control authorities of the importing country 
(see Certification by export control authorities of importing country in 
this supplement). The safeguard plan must indicate that the ultimate 
consignee agrees to implement those safeguards required by the BXA as a 
condition of issuing the license. BXA will inform exporters concerning 
which of the following safeguards will be imposed as license conditions:
    (1) The applicant will assume responsibility for providing adequate 
security against physical diversion of the computer during shipment 
(e.g., delivery by either attended or monitored shipment, using the most 
secure route possible--this precludes using the services or facilities 
of any country in Computer Tier 4).
    (2) There will be no reexport or intra-country transfer of the 
computer without prior written authorization from BXA.
    (3) The computer systems will be used only for those activities 
approved on the license or reexport authorization.
    (4) There will be no changes either in the end-users or the end-uses 
indicated on the license without prior written authorization by BXA.
    (5) Only software that supports the approved end-uses will be 
shipped with the computer system.
    (6) The end-user will station security personnel at the computer 
using facility to ensure that the appropriate security measures are 
implemented.
    (7) The exporter will station representatives at the computer using 
facility, or make such individuals readily available, to guide the 
security personnel in the implementation and operation of the security 
measures.
    (8) The security personnel will undertake the following measures 
under the guidance of the exporter's representatives:
    (i) The physical security of the computer using facility;
    (ii) The establishment of a system to ensure the round-the-clock 
supervision of computer security;
    (iii) The inspection, if necessary, of any program or software to be 
run on the computer system in order to ensure that all usage conforms to 
the conditions of the license;
    (iv) The suspension, if necessary, of any run in progress and the 
inspection of any output generated by the computer to determine whether 
the program runs or output conform with the conditions of the license;
    (v) The inspection of usage logs daily to ensure conformity with the 
conditions of the license and the retention of records of these logs for 
at least a year;
    (vi) The determination of the acceptability of computer users to 
ensure conformity with the conditions of the license;
    (vii) The immediate reporting of any security breaches or suspected 
security breaches to the government of the importing country and to the 
exporter's representatives;
    (viii) The execution of the following key tasks:
    (A) Establishment of new accounts;
    (B) Assignment of passwords;
    (C) Random sampling of data;
    (D) Generation of daily logs;

[[Page 236]]

    (ix) The maintenance of the integrity and security of tapes and data 
files containing archived user files, log data, or system backups.
    (9) The exporter's representatives will be present when certain key 
functions are being carried out (e.g., the establishment of new 
accounts, the assignment of passwords, the random sampling of data, the 
generating of daily logs, the setting of limits to computer resources 
available to users in the development mode, the certification of 
programs for conformity to the approved end-uses before they are allowed 
to run in the production mode, and the modification to previously 
certified production programs).
    (10) The security personnel and the exporter's representatives will 
provide monthly reports on the usage of the computer system and on the 
implementation of the safeguards.
    (11) The computer system will be housed in one secure building and 
protected against theft and unauthorized entry at all times.
    (12) Restricted nationals, i.e., nationals of Computer Tier 4 
countries, will not be allowed access to computers:
    (i) No physical or computational access to computers may be granted 
to restricted nationals without prior written authorization from BXA, 
except that commercial consignees as described in this supplement are 
prohibited only from giving such nationals user-accessible 
programmability without prior written authorization;
    (ii) No passwords or IDs may be issued to restricted nationals;
    (iii) No work may be performed on the computer on behalf of 
restricted nationals; and
    (iv) No conscious or direct ties may be established to networks 
(including their subscribers) operated by restricted nationals.
    (13) Physical access to the computer, the operator consoles, and 
sensitive storage areas of the computer using facility will be 
controlled by the security personnel, under the guidance and monitoring 
of the exporter's representatives, and will be limited to the fewest 
number of people needed to maintain and run the computer system.
    (14) The computer will be equipped with the necessary software to: 
Permit access to authorized persons only, detect attempts to gain 
unauthorized access, set and maintain limits on usage, establish 
accountability for usage, and generate logs and other records of usage. 
This software will also maintain the integrity of data and program 
files, the accounting and audit system, the password or computational 
access control system, and the operating system itself.
    (i) The operating system will be configured so that all jobs can be 
designated and tracked as either program development jobs or as 
production jobs.
    (ii) In the program development mode, users will be free, following 
verification that their application conforms to the agreed end-use, to 
create, edit, or modify programs, to use utilities such as editors, 
debuggers, or compilers and to verify program operation. Programs in the 
development mode will be subject to inspection as provided by paragraph 
(a)(8)(iii) of this supplement.
    (iii) In the production mode, users will have access to the full 
range of computer resources, but will be prohibited from modifying any 
program or using utilities that could modify any program. Before being 
allowed to run in the production mode, a program will have to be 
certified for conformity to approved end-uses by the security personnel 
and the exporter's representatives.
    (iv) Programs certified for execution in the production mode will be 
protected from unauthorized modification by appropriate software and 
physical security measures. Any modifications to previously certified 
production programs will be approved by the security personnel under the 
guidance and monitoring of the exporter's representatives.
    (v) The computer will be provided with accounting and audit software 
to ensure that detailed logs are maintained to record all computer 
usage. A separate log of security-related events will also be kept.
    (vi) For each job executed in the production mode, the operating 
system will record execution characteristics in order to permit 
generation of a statistical profile of the program executed.
    (15) The source code of the operating system will be accessible only 
to the exporter's representatives. Only those individuals will make 
changes in this source code.
    (16) The security personnel, under the guidance of the exporter's 
representatives, will change passwords for individuals frequently and at 
unpredictable intervals.
    (17) The security personnel, under the guidance of the exporter's 
representatives, will have the right to deny passwords to anyone. 
Passwords will be denied to anyone whose activity does not conform to 
the conditions of the license.
    (18) Misuse of passwords by users will result in denial of further 
access to the computer.
    (19) The exporter's representatives will install a strict password 
system and provide guidance on its implementation.
    (20) Only the exporter's representatives will be trained in making 
changes in the password system and only they will make such changes.
    (21) No computer will be networked to other computers outside the 
computer center without prior authorization from BXA.
    (22) Generally, remote terminals will not be allowed outside the 
computer using facility without prior authorization by BXA. If

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remote terminals are specifically authorized by the license:
    (i) The terminals will have physical security equivalent to the 
safeguards at the computer using facility;
    (ii) The terminals will be constrained to minimal amounts of 
computer resources (CPU time, memory access, number of input-output 
operations, and other resources);
    (iii) The terminals will not be allowed direct computational access 
to the computer (i.e., the security personnel, under the guidance of the 
exporter's representatives, will validate the password and identity of 
the user of any remote terminals before any such user is permitted to 
access the computer); all terminals will be connected to the computer 
system by a dedicated access line and a network access controller.
    (23) There will be no direct input to the computer from remote 
terminals. Any data originating from outside the computer using 
facility, except for direct input from terminals within the same 
compound as the computer using facility, will first be processed by a 
separate processor or network access controller in order to permit 
examination of the data prior to its entry into the computer.
    (24) The exporter will perform all maintenance of the computer 
system.
    (25) Spare parts kept on site will be limited to the minimum amount. 
Spares will be kept in an area accessible only to the exporter's 
representatives. These representatives will maintain a strict audit 
system to account for all spare parts.
    (26) No development or production technology on the computer system 
will be sent with the computer to the ultimate consignee.
    (27) The end-user must immediately report any suspicions or facts 
concerning possible violations of the safeguards to the exporter and to 
the export control authorities of the importing country.
    (28) The exporter must immediately report any information concerning 
possible violations of the safeguards to BXA. A violation of the 
safeguards might constitute grounds for suspension or termination of the 
license, preventing the shipment of unshipped spare parts, or the denial 
of additional licenses for spare parts, etc.
    (29) The end-user will be audited quarterly by an independent 
consultant who has been approved by the export control authorities of 
the importing and exporting countries, but is employed at the expense of 
the end-user. The consultant will audit the computer usage and the 
implementation of the safeguards.
    (30) The installation and operation of the computer will be 
coordinated and controlled by the following management structure:
    (i) Steering Committee. The Steering Committee will comprise 
nationals of the importing country who will oversee the management and 
operation of the computer.
    (ii) Security Staff. The Security Staff will be selected by the end-
user or the government of the importing country to ensure that the 
required safeguards are implemented. This staff will be responsible for 
conducting an annual audit to evaluate physical security, administrative 
procedures, and technical controls.
    (iii) Technical Consultative Committee. This committee will comprise 
technical experts from the importing country and the exporting company 
who will provide guidance in operating and maintaining the computer. At 
least one member of the committee will be an employee of the exporter. 
The committee will approve all accounts and maintain an accurate list of 
all users. In addition, the committee will advise the Steering Committee 
and the Security Staff concerning the security measures needed to ensure 
compliance with the safeguards required by the license.
    (31) An ultimate consignee who is a multiple-purpose end-user, such 
as a university, will establish a peer review group comprising experts 
who represent each department or application area authorized for use on 
the computer under the conditions of the license. This group shall have 
the following responsibilities:
    (i) Review all requests for computer usage and make recommendations 
concerning the acceptability of all projects and users;
    (ii) Submit these recommendations to the Security Staff and 
Technical Consultative Committee for review and approval (see paragraph 
(a)(28) of this supplement);
    (iii) Establish acceptable computer resource parameters for each 
project and review the results to verify their conformity with the 
authorized end-uses, restrictions, and parameters; and
    (iv) Prepare monthly reports that would include a description of any 
runs exceeding the established parameters and submit them to the 
security staff.
    (32) The end-user will also cooperate with any post-shipment 
inquiries or inspections by the U.S. Government or exporting company 
officials to verify the disposition and/or use of the computer, 
including access to the following:
    (i) Usage logs, which should include, at a minimum, computer users, 
dates, times of use, and amount of system time used;
    (ii) Computer access authorization logs, which should include, at a 
minimum, computer users, project names, and purpose of projects.
    (33) The end-user will also cooperate with the U.S. Government or 
exporting company officials concerning the physical inspection of the 
computer using facility, on short notice, at least once a year and will 
provide access to all data relevant to computer usage. This inspection 
will include:

[[Page 238]]

    (i) Analyzing any programs or software run on the computer to ensure 
that all usage complies with the authorized end-uses on the license. 
This will be done by examining user files (e.g., source codes, machine 
codes, input/output data) that are either on-line at the time of the 
inspection or that have been previously sampled and securely stored.
    (ii) Checking current and archived usage logs for conformity with 
the authorized end-uses and the restrictions imposed by the license.
    (iii) Verifying the acceptability of all computer users in 
conformity with the authorized end-uses and the restrictions imposed by 
the license.
    (34) Usage requests that exceed the quantity of monthly CPU time 
specified on the license shall not be approved without prior written 
authorization from the BXA. Requests for computational access approval 
shall include a description of the intended purpose for which access is 
sought.
    (35) In addition to, or in lieu of, the normal access by on-site 
exporting company staff or its representatives, the company, when 
required by the exporting government, will provide a separate remote 
electronic access capability to the computer for the purposes of 
maintenance, troubleshooting, inspection of work in progress, and 
auditing of all work performed on the computer. On-site and central 
exporting company hardware and software maintenance facilities, at the 
direction of the exporting company staff or its representatives, to 
gather information such as:
    (i) Statistical profiles of production jobs;
    (ii) Logs of jobs run in both production and development mode;
    (iii) Logs and reports of security related events.
    If such method is used, the remote maintenance facilities will be 
considered part of the operating system and protected accordingly, and 
will be available only to exporting company operational staff or its 
representatives. The maintenance hardware and software and associated 
communication links will be protected to ensure the integrity and 
authenticity of data and programs and to prevent tampering with 
hardware.
    (36) The export company staff or its representatives will be 
required to provide personnel for a specified period of time at the 
computer facility for management, operation, and safeguarding of the 
computer.
    (b) Certification by export control authorities of importing 
country. (1) The following importing government certification may be 
required under Sec. 742.12 of this part:

    This is to certify that (name of ultimate consignee) has declared to 
(name of appropriate foreign government agency) that the computer (model 
name) will be used only for the purposes specified in the end-use 
statement and that the ultimate consignee will establish and adhere to 
all the safeguard conditions and perform all other undertakings 
described in the end-use statement.
    The (name of appropriate foreign government agency) will advise the 
United States Government of any evidence that might reasonably indicate 
the existence of circumstances (e.g., transfer of ownership) that could 
affect the objectives of the security safeguard conditions.

    (2) Other importing government assurances regarding prohibited 
activities may also be required on a case-by-case basis.
    (c) Commercial consignees. Exports or reexports of computers that 
are solely dedicated to the following non-scientific and non-technical 
commercial business uses will usually be eligible for a reduced set of 
security safeguard conditions:
    (1) Financial services (e.g., banking, securities and commodity 
exchanges);
    (2) Insurance;
    (3) Reservation systems;
    (4) Point-of-sales systems;
    (5) Mailing list maintenance for marketing purposes;
    (6) Inventory control for retail/wholesale distribution.

   Supplement No. 4 to Part 742--Key Escrow or Key Recovery Products 
                                Criteria

                          Key Recovery Feature

    (1) The key(s) or other material/information required to decrypt 
ciphertext shall be accessible through a key recovery feature.
    (2) The product's cryptographic functions shall be inoperable until 
the key(s) or other material/information required to decrypt ciphertext 
is recoverable by government officials under proper legal authority and 
without the cooperation or knowledge of the user.
    (3) The output of the product shall automatically include, in an 
accessible format and with a reasonable frequency, the identity of the 
key recovery agent(s) and information sufficient for the key recovery 
agent(s) to identify the key(s) or other material/information required 
to decrypt the ciphertext.
    (4) The product's key recovery functions shall allow access to the 
key(s) or other material/information needed to decrypt the ciphertext 
regardless of whether the product generated or received the ciphertext.
    (5) The product's key recovery functions shall allow for the 
recovery of all required decryption key(s) or other material/information 
required to decrypt ciphertext during a period of authorized access 
without requiring repeated presentations of access authorization to the 
key recovery agent(s).

[[Page 239]]

                        Interoperability Feature

    (6) The product's cryptographic functions may interoperate with:
    (i) Other key recovery products that meet these criteria, and shall 
not interoperate with products whose key recovery feature has been 
altered, bypassed, disabled, or otherwise rendered inoperative; and
    (ii) Non-key recovery products only when the key recovery product 
permits access to the key(s) or other material/information needed to 
decrypt ciphertext generated or received (i.e., one direction at a 
minimum) by the key recovery product.

            Design, Implementation and Operational Assurance

    (7) The product shall be resistant to efforts to disable or 
circumvent the attributes described in criteria one through six.
    (8) The product's cryptographic function's key(s) or other material/
information required to decrypt ciphertext shall be escrowed with a key 
recovery agent(s) (who may be a key recovery agent(s) internal to the 
user's organization) acceptable to BXA, pursuant to the criteria in 
Supplement No. 5 to part 742. Since the establishment of a key 
management infrastructure and key recovery agents may take some time, 
BXA will, while the infrastructure is being built, consider exports of 
key recovery encryption products which facilitate establishment of the 
key management infrastructure before a key recovery agent is named.
    Exporters of products described in this Supplement No. 4 to part 742 
are required to furnish the name of an agent by December 31, 1998.

[61 FR 68582, Dec. 30, 1996]

Supplement No. 5 to Part 742--Key Escrow or Key Recovery Agent Criteria, 
      Security Policies, and Key Escrow or Key Recovery Procedures

 Key Escrow or Key Recovery Agent Requirements; Security Policies; Key 
                    Escrow or Key Recovery Procedures

    This supplement sets forth criteria that the Department of Commerce 
will use to approve key recovery agents to support approval of the 
export or reexport of key recovery encryption items controlled for EI 
reasons under ECCNs 5A002 and 5D002. Any arrangements between the 
exporter or reexporter and the key recovery agent must reflect the 
provisions contained in this supplement in a manner satisfactory to BXA, 
in conjunction with other agencies. This supplement outlines the 
criteria for employing key recovery agent personnel for key recovery 
procedures. An applicant for eligibility to export or reexport key 
recovery items shall provide, or cause the proposed key recovery agent 
to provide, to BXA sufficient information concerning any proposed key 
recovery agent arrangements to permit BXA's evaluation of the key 
recovery agent's security policies, key recovery procedures, and 
suitability and trustworthiness to maintain the confidentiality of the 
key(s) or other material/information required to decrypt ciphertext. The 
key recovery agent, who must be approved by BXA, may be the applicant 
for the classification request. When there is no key recovery agent 
involved, or the customer will self-escrow abroad, with or without a 
legal obligation to the exporter, the customer must be approved by BXA. 
BXA retains the right, in addition to any other remedies, to revoke 
eligibility for License Exception KMI if BXA determines that a key 
recovery agent no longer meets these criteria. The requirements related 
to the suitability and trustworthiness, security policies, and key 
recovery procedures of the key recovery agent shall be made terms and 
conditions of the License Exception for key recovery items. BXA shall 
require the key recovery agent to provide a representation that it will 
comply with such terms and conditions.

    Note: Use of key recovery agents located outside the U.S. is 
permitted if acceptable to BXA in consultation with the host government, 
as appropriate.

                   I. Key Recovery Agent Requirements

    (1)(a) A key recovery agent must identify by name, date and place of 
birth, and social security number, individual(s) who:
    (i) Is/are directly involved in the escrowing of key(s) or other 
material/information required to decrypt ciphertext; or
    (ii) Have access to key(s) or other material/information required to 
decrypt ciphertext, or
    (iii) Have access to information concerning requests for key(s) or 
other material/information required to decrypt ciphertext; or
    (iv) Respond to requests for key(s) or other material/information 
required to decrypt ciphertext; or
    (v) Is/are in control of the key recovery agent and have access or 
authority to obtain key(s) or other material/information required to 
decrypt ciphertext, and
    (b) Must certify that such individual(s) meet the requirements of 
the following paragraphs (b)(i) or (b)(ii). BXA reserves the right to 
determine at any time the suitability and trustworthiness of such 
individual(s). Evidence of an individual's suitability and 
trustworthiness shall include:
    (i) Information indicating that the individual(s):
    (A) Has no criminal convictions of any kind or pending criminal 
charges of any kind;

[[Page 240]]

    (B) Has not breached fiduciary responsibilities (e.g., has not 
violated any surety or performance bonds); and
    (C) Has favorable results of a credit check; or,
    (ii) Information that the individual(s) has an active U.S. 
government security clearance of Secret or higher issued or updated 
within the last five years.
    (2) The key recovery agent shall timely disclose to BXA when an 
individual no longer meets the requirements of paragraphs I.(1)(b)(i) or 
(ii).
    (3) A key recovery agent must, to remain eligible for License 
Exception KMI, identify to BXA by name, date and place of birth, and 
social security number any new individual(s) who will assume the 
responsibilities set forth in paragraph I.(1)(a) of this supplement. 
Before that individual(s) assumes such responsibilities, the key 
recovery agent must certify to BXA that the individual(s) meets the 
criteria set forth in subparagraphs I.(1)(b)(i) or (b)(ii) of this 
supplement. BXA reserves the right to determine at any time the 
suitability and trustworthiness of such personnel.
    (4) If ownership or control of a key recovery agent is transferred, 
no export may take place under previously issued approvals until the 
successor key recovery agent complies with the criteria of this 
supplement.
    (5) Key recovery agents shall submit suitable evidence of the key 
recovery agent's corporate viability and financial responsibility (e.g., 
a certificate of good standing from the state of incorporation, credit 
reports, and errors/omissions insurance).
    (6) Key recovery agents shall disclose to BXA any of the following 
which have occurred within the ten years prior to the application:
    (a) Federal or state felony convictions of the business;
    (b) Material adverse civil fraud judgments or settlements; and
    (c) Debarments from federal, state, or local government contracting.
    The applicant shall also timely disclose to BXA the occurrence of 
any of the foregoing during the use of License Exception KMI.
    (7) Key recovery agent(s) shall designate an individual(s) to be the 
security and operations officer(s).
    (8) A key recovery agent may be internal to a user's organization 
and may consist of one or more individuals. BXA may approve such key 
recovery agents if sufficient information is provided to demonstrate 
that appropriate safeguards will be employed in handling key recovery 
requests from government entities. These safeguards should ensure: the 
key recovery agent's structural independence from the rest of the 
organization; security; and confidentiality.

                          II. Security Policies

    (1) Key recovery agents must implement security policies that assure 
the confidentiality, integrity, and availability of the key(s) or other 
material/information required for decryption of the ciphertext.
    (a) Procedures to assure confidentiality shall include:
    (i) Encrypting all key(s) or other material/information required to 
decrypt ciphertext while in storage, transmission, or transfer; or
    (ii) Applying reasonable measures to limit access to the database 
(e.g. using keyed or combination locks on the entrances to escrow 
facilities and limiting the personnel with knowledge of or access to the 
keys/combinations).
    (b) Procedures to assure the integrity of the database (i.e. 
assuring the key(s) and other material/information required to decrypt 
ciphertext are protected against unauthorized changes) shall include the 
use of access controls such as database password controls, digital 
signatures, system auditing, and physical access restrictions.
    (c) Procedures to assure the availability of the database (i.e. 
assuring that key(s) and other material/information required to decrypt 
ciphertext are retrievable at any time) shall include system redundance, 
physical security, and the use of cryptography to control access.
    (2) Policies and procedures shall be designed and operated so that a 
failure by a single person, procedure, or mechanism does not compromise 
the confidentiality, integrity and availability of key(s)or other 
material/information required to decrypt ciphertext. Security policies 
and procedures may include, but are not limited to, multi-person control 
of access to recoverable keys, split keys, and back-up capabilities.
    (3) Key recovery agents shall implement policies that protect 
against unauthorized disclosure of information regarding whose 
encryption material is stored, the fact that key(s) or other material/
information required to decrypt ciphertext was requested or provided, 
and the identity of a requester. Procedures to assure the 
confidentiality of this information shall include those described in 
paragraph II.(1)(a) of this supplement.
    (4) Key recovery agents shall provide to BXA prompt notice of a 
compromise of a security policy or of the confidentiality of key(s) or 
other material/information required to decrypt ciphertext.

                      III. Key Recovery Procedures

    (1) Key recovery agents shall maintain the ability to make the 
key(s) or other material/information required to decrypt ciphertext 
available until notified otherwise by BXA. Key recovery agents shall 
make requested

[[Page 241]]

key(s) or other material/information required to decrypt ciphertext 
available, to the extent required by the request, within two hours from 
the time they receive a request from a government agency acting under 
appropriate legal authority.
    (2) Key recovery agents shall maintain data regarding key recovery 
requests received, release of key(s) or other material/information 
required to decrypt ciphertext, database changes, system administration 
access, and dates of such events for purposes of audits by BXA.
    (3) The key recovery agent must transfer all key recovery equipment, 
key(s) and/or other material/information required to decrypt ciphertext, 
key recovery database, and all administrative information necessary to 
its key recovery operations to another key recovery agent approved by 
BXA in the event that:
    (a) The key recovery agent dissolves or otherwise terminates 
escrowing operations, or
    (b) BXA determines that there is a risk of such dissolution or 
termination, or
    (c) BXA determines that the key recovery agent is no longer suitable 
or trustworthy.

[61 FR 68582, Dec. 30, 1996]

Supplement No. 6 to Part 742--Guidelines for Submitting a Classification 
   Request for a Mass Market Software Product That Contains Encryption

    Classification requests for release of certain mass market 
encryption software from EI controls must be submitted on Form BXA-748P, 
in accordance with Sec. 748.3 of the EAR. To expedite review of the 
request, clearly mark the envelope ``Attn.: Mass Market Encryption 
Software Classification Request''. In Block 9: Special Purpose of the 
Form BXA-748P, you must insert the phrase ``Mass Market Encryption 
Software. Failure to insert this phrase will delay processing. In 
addition, the Bureau of Export Administration recommends that such 
requests be delivered via courier service to: Bureau of Export 
Administration, Office of Exporter Services, Room 2705, 14th Street and 
Pennsylvania Ave., N.W., Washington, D.C. 20230.
    (a) Requests for mass market encryption software that meet the 
criteria in paragraph (a)(2) of this supplement will be processed in 
seven (7) working days from receipt of a properly completed request. 
Those requests for mass market encryption software that meet the 
criteria of paragraph (a)(1) of this supplement only will be processed 
in fifteen (15) working days from receipt of a properly completed 
request. When additional information is requested, the request will be 
processed within 15 working days of the receipt of the requested 
information.
    (1) A mass market software product that meets all the criteria 
established in this paragraph will be processed in fifteen (15) working 
days from receipt of the properly completed request:
    (i) The commodity must be mass market software. Mass market software 
is computer software that is available to the public via sales from 
stock at retail selling points by means of over-the-counter 
transactions, mail order transactions, or telephone call transactions;
    (ii) The software must be designed for installation by the user 
without further substantial support by the supplier. Substantial support 
does not include telephone (voice only) help line services for 
installation or basic operation, or basic operation training provided by 
the supplier; and
    (iii) The software includes encryption for data confidentiality.
    (2) A mass market software product that meets all the criteria 
established in this paragraph will be processed in seven working days 
from receipt of the properly completed request:
    (i) The software meets all the criteria established in paragraph 
(a)(1) (i) through (iii) of this supplement;
    (ii) The data encryption algorithm must be RC4 and/or RC2 with a key 
space no longer than 40 bits. The RC4 and RC2 algorithms are proprietary 
to RSA Data Security, Inc. To ensure that the subject software is 
properly licensed and correctly implemented, contact RSA Data Security, 
(415) 595-8782;
    (iii) If both RC4 and RC2 are used in the same software, their 
functionality must be separate. That is, no data can be operated 
sequentially on by both routines or multiply by either routine;
    (iv) The software must not allow the alteration of the data 
encryption mechanism and its associated key spaces by the user or any 
other program;
    (v) The key exchange used in data encryption must be:
    (A) A public key algorithm with a key space less than or equal to a 
512 bit modulus and/or;
    (B) A symmetrical algorithm with a key space less than or equal to 
64 bits; and
    (vi) The software must not allow the alteration of the key 
management mechanism and its associated key space by the user or any 
other program.
    (b) Instructions for the preparation and submission of a 
classification request that is eligible for seven day handling are as 
follows:
    (1) If the software product meets the criteria in paragraph (a)(2) 
of this supplement, you must call the Department of Commerce on (202) 
482-0092 to obtain a test vector. This test vector must be used in the 
classification process to confirm that the software has

[[Page 242]]

properly implemented the approved encryption algorithms.
    (2) Upon receipt of the test vector, the applicant must encrypt the 
test plain text input provided using the commodity's encryption routine 
(RC2 and/or RC4) with the given key value. The applicant should not pre-
process the test vector by any compression or any other routine that 
changes its format. Place the resultant test cipher text output in 
hexadecimal format on an attachment to form BXA-748P.
    (3) You must provide the following information in a cover letter to 
the classification request:
    (i) Clearly state at the top of the page ``Mass Market Encryption 
Software--7 Day Expedited Review Requested'';
    (ii) State that you have reviewed and determined that the software 
subject to the classification request meets the criteria of paragraph 
(a)(2) of this supplement;
    (iii) State the name of the single software product being submitted 
for review. A separate classification request is required for each 
product;
    (iv) State how the software has been written to preclude user 
modification of the encryption algorithm, key management mechanism, and 
key space;
    (v) Provide the following information for the software product:
    (A) Whether the software uses the RC2 and/or the RC4 algorithm and 
how the algorithm(s) is used. If both of these algorithms are used in 
the same product, also state how the functionality of each is separated 
to assure that no data is operated on by both algorithms;
    (B) Pre-processing information of plain text data before encryption 
(e.g. the addition of clear text header information or compression of 
the data);
    (C) Post-processing information of cipher text data after encryption 
(e.g. the addition of clear text header information or packetization of 
the encrypted data);
    (D) Whether a public key algorithm or a symmetric key algorithm is 
used to encrypt keys and the applicable key space;
    (E) For classification requests regarding source code:
    (1) Reference the applicable executable product that has already 
received a one-time review;
    (2) Include whether the source code has been modified by deleting 
the encryption algorithm, its associated key management routine(s), and 
all calls to the algorithm from the source code, or by providing the 
encryption algorithm and associated key management routine(s) in object 
code with all calls to the algorithm hidden. You must provide the 
technical details on how you have modified the source code;
    (3) Include a copy of the sections of the source code that contain 
the encryption algorithm, key management routines, and their related 
calls; and
    (F) Provide any additional information which you believe would 
assist in the review process.
    (c) Instructions for the preparation and submission of a 
classification request that is eligible for 15 day handling are as 
follows:
    (1) If the software product meets only the criteria in paragraph 
(a)(1) of this supplement, you must prepare a classification request. 
Send the original to the Bureau of Export Administration. Send a copy by 
Express Mail to:

Attn.: 15 day Encryption Request Coordinator P.O. Box 246 Annapolis 
Junction, MD 20701-0246.

    (2) You must provide the following information in a cover letter to 
the classification request:
    (i) Clearly state at the top of the page ``Mass Market Software and 
Encryption--15 Day Expedited Review Requested'';
    (ii) State that you have reviewed and determined that the software 
subject of the classification request, meets the criteria of paragraph 
(a)(1) of this supplement;
    (iii) State the name of the single software product being submitted 
for review. A separate classification request is required for each 
product;
    (iv) State that a duplicate copy, in accordance with paragraph 
(c)(1) of this supplement, has been sent to the 15 day Encryption 
Request Coordinator; and
    (v) Ensure that the information provided includes brochures or other 
documentation or specifications relating to the software, as well as any 
additional information which you believe would assist in the review 
process.
    (3) Contact the Bureau of Export Administration on (202) 482-0092 
prior to submission of the classification to facilitate the submission 
of proper documentation.

[61 FR 68583, Dec. 30, 1996]

Supplement No. 7 to Part 742--Review Criteria for Exporter Key Escrow or 
                     Key Recovery Development Plans

                       Exporter Key Recovery Plan

    (1) Export of 56-bit digital encryption standard (DES) or equivalent 
strength encryption products, without key recovery, will be permitted, 
in exchange for specific commitments to key recovery products and 
services and a key management infrastructure. After a one-time review of 
the strength of the product, the 56-bit DES or equivalent strength 
products will be eligible for export License Exception KMI, provided 
that the exporter submits an acceptable plan.

[[Page 243]]

    (2) Acceptable plans include: export licenses issued for, and 
demonstrations of, key recovery products to appropriate U.S. agencies; 
plans describing products under development with key recovery features 
(see paragraph (3) of this supplement), and for distributors, a plan 
describing intentions to offer for distribution key recovery products.
    (3) Following are topical areas to include in the plan, which should 
be submitted to the Department of Commerce, Bureau of Export 
Administration, in the form of a letter from senior corporate 
management:
    (i) Steps the applicant has taken or will take (depending on its 
line of business) to develop, produce, distribute, market, and/or 
transition to encryption products with key recovery features. The plan 
should include benchmarks and milestones for incorporating key recovery 
features into products and services, and for the supporting key 
management infrastructure, including key recovery agent(s); and
    (ii) Provision, at the applicant's discretion, of other information 
to indicate commitment to the development of a key management 
infrastructure, such as participation in U.S. Government pilot programs, 
current key recovery products or services provided, role in NIST's 
Technical Advisory Committee on a Key Management Infrastructure, 
participation in other encryption policy committees or groups, or other 
support for the key management infrastructure.
    (4) Renewal of License Exception KMI must be sought by sending a 
letter to BXA every six months reporting progress in meeting milestones 
set forth in the exporter's plan for key recovery products and services.

[61 FR 68584, Dec. 30, 1996]



PART 744--CONTROL POLICY: END-USER AND END-USE BASED--Table of Contents




Sec.
744.1  General provisions.
744.2  Restrictions on certain nuclear end-uses.
744.3  Restrictions on certain missile end-uses.
744.4  Restrictions on certain chemical and biological weapons end-uses.
744.5  Restrictions on certain maritime nuclear propulsion end-uses.
744.6  Restrictions on certain activities of U.S. persons.
744.7  Restrictions on certain exports to and for the use of certain 
          foreign vessels or aircraft.
744.8  Restrictions on certain exports to all countries for Libyan 
          aircraft.
744.9  Restrictions on technical assistance by U.S. persons with respect 
          to encryption items.

Supplement No. 1 to Part 744--Missile Technology Projects
Supplement No. 2 to Part 744  [Reserved]
Supplement No. 3 to Part 744--Countries Not Subject to Certain Nuclear 
          End-Use Restrictions in Sec. 744.2(a)

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 3201 et seq.; 42 U.S.C. 2139a; E.O. 12058, 43 FR 20947, 3 CFR, 
1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; 
E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; E.O. 12938, 59 FR 
59099, 3 CFR, 1994 Comp., p. 950; Notice of August 15, 1995 (60 FR 
42767, August 17, 1995); and Notice of August 14, 1996 (61 FR 42527).

    Source: 61 FR 12802, Mar. 25, 1996, unless otherwise noted.



Sec. 744.1  General provisions.

    (a) Introduction. In this part, references to the EAR are references 
to 15 CFR chapter VII, subchapter C. This part contains prohibitions 
against exports, reexports, and selected transfers to certain end-users 
and end-uses as introduced under General Prohibition Four (Denial 
Orders) and prohibitions against exports or reexports to certain end-
uses as introduced, under General Prohibition Five (End-use/End-users). 
Sections 744.2, 744.3, 744.4, and 744.5 prohibit exports and reexports 
of items subject to the EAR to defined nuclear, missile, chemical and 
biological weapons, and nuclear maritime end-uses. Section 744.6 
prohibits certain activities by U.S. persons in support of certain 
nuclear, missile, chemical, or biological end-uses regardless of whether 
that support involves the export or reexport of items subject to the 
EAR. Sections 744.7 and 744.8 prohibit exports and reexports of certain 
items for certain aircraft and vessels. In addition, these sections 
include license review standards for export license applications 
submitted as required by these sections. It should also be noted that 
part 764 of the EAR prohibits exports, reexports and certain in-country 
transfers of items subject to the EAR to denied parties.
    (b) Steps. The following are steps you should follow in using the 
provisions of this part:
    (1) Review end-use and end-user prohibitions. First, review each 
end-use and end-user prohibition described in this part to learn the 
scope of these prohibitions.

[[Page 244]]

    (2) Determine applicability. Second, determine whether any of the 
end-use and end-user prohibitions described in this part are applicable 
to your planned export, reexport, or other activity. See Supplement No. 
1 to part 732 for guidance.



Sec. 744.2   Restrictions on certain nuclear end-uses.

    (a) General prohibition. In addition to the license requirements for 
items specified on the CCL, you may not export or reexport to any 
destination, other than countries in the Supplement No. 3 to this part, 
any item subject to the EAR without a license if at the time of the 
export or reexport you know 1 the item will be used directly 
or indirectly in any one or more of the following activities described 
in paragraphs (a)(1), (a)(2), and (a)(3) of this section:
---------------------------------------------------------------------------

    \1\  Part 772 of the EAR defines ``knowledge'' for all of the EAR 
except part 760, Restrictive Trade Practices and Boycotts. The 
definition, which includes variants such as ``know'' and ``reason to 
know'', encompasses more than positive knowledge. Thus, the use of 
``know'' in this section in place of the former wording ``know or have 
reason to know'' does not lessen or otherwise change the 
responsibilities of persons subject to the EAR.
---------------------------------------------------------------------------

    (1) Nuclear explosive activities. Nuclear explosive activities, 
including research on or development, design, manufacture, construction, 
testing or maintenance of any nuclear explosive device, or components or 
subsystems of such a device.\2\ \3\
---------------------------------------------------------------------------

    \2\ Nuclear explosive devices and any article, material, equipment, 
or device specifically designed or specially modified for use in the 
design, development, or fabrication of nuclear weapons or nuclear 
explosive devices are subject to export licensing or other requirements 
of the Office of Defense Trade Controls, U.S. Department of State, or 
the licensing or other restrictions specified in the Atomic Energy Act 
of 1954, as amended. Similarly, items specifically designed or 
specifically modified for use in devising, carrying out, or evaluating 
nuclear weapons tests or nuclear explosions (except such items as are in 
normal commercial use for other purposes) are subject to the same 
requirements.
    \3\ Also see Secs. 744.5 and 748.4 of the EAR for special provisions 
relating to technical data for maritime nuclear propulsion plants and 
other commodities.
---------------------------------------------------------------------------

    (2) Unsafeguarded nuclear activities. Activities including research 
on, or development, design, manufacture, construction, operation, or 
maintenance of any nuclear reactor, critical facility, facility for the 
fabrication of nuclear fuel, facility for the conversion of nuclear 
material from one chemical form to another, or separate storage 
installation, where there is no obligation to accept International 
Atomic Energy Agency (IAEA) safeguards at the relevant facility or 
installation when it contains any source or special fissionable material 
(regardless of whether or not it contains such material at the time of 
export), or where any such obligation is not met.
    (3) Safeguarded and unsafeguarded nuclear activities. Safeguarded 
and unsafeguarded nuclear fuel cycle activities, including research on 
or development, design, manufacture, construction, operation or 
maintenance of any of the following facilities, or components for such 
facilities: 4
---------------------------------------------------------------------------

    \4\  Such activities may also require a specific authorization from 
the Secretary of Energy pursuant to Sec. 57.b.(2) of the Atomic Energy 
Act of 1954, as amended, as implemented by the Department of Energy's 
regulations published in 10 CFR 810.
---------------------------------------------------------------------------

    (i) Facilities for the chemical processing of irradiated special 
nuclear or source material;
    (ii) Facilities for the production of heavy water;
    (iii) Facilities for the separation of isotopes of source and 
special nuclear material; or
    (iv) Facilities for the fabrication of nuclear reactor fuel 
containing plutonium.
    (b) Additional prohibition on exporters or reexporters informed by 
BXA. BXA may inform an exporter or reexporter, either individually by 
specific notice or through amendment to the EAR, that a license is 
required for export or reexport of specified items to specified end-
users, because BXA has determined that there is an unacceptable risk of 
use in, or diversion to, any of the activities described in paragraph 
(a) of this section. Specific notice is to be given only by, or at the 
direction of, the Deputy Assistant Secretary for Export Administration. 
When such notice is provided orally, it will be followed

[[Page 245]]

by a written notice within two working days signed by the Deputy 
Assistant Secretary for Export Administration. The absence of any such 
notification does not excuse the exporter or reexporter from compliance 
with the license requirements of paragraph (a) of this section.
    (c) Exceptions. Despite the prohibitions described in paragraphs (a) 
and (b) of this section, you may export technology subject to the EAR 
under the operation technology and software or sales technology and 
software provisions of License Exception TSU (see Sec. 740.12 (a) and 
(b)), but only to and for use in countries listed in Country Group A:1 
(see Supplement No. 1 to part 740 of the EAR), Iceland and New Zealand. 
Notwithstanding the provisions of part 740 of the EAR, the provisions of 
Sec. 740.12 (a) and (b) will only overcome general prohibition five for 
countries listed in Country Group A:1, Iceland and New Zealand.
    (d) License review standards. The following factors are among those 
used by the United States to determine whether to grant or deny license 
applications required under this section:
    (1) Whether the commodities, software, or technology to be 
transferred are appropriate for the stated end-use and whether that 
stated end-use is appropriate for the end-user;
    (2) The significance for nuclear purposes of the particular 
commodity, software, or technology;
    (3) Whether the commodities, software, or technology to be exported 
are to be used in research on or for the development, design, 
manufacture, construction, operation, or maintenance of any reprocessing 
or enrichment facility;
    (4) The types of assurances or guarantees given against use for 
nuclear explosive purposes or proliferation in the particular case;
    (5) Whether the end-user has been engaged in clandestine or illegal 
procurement activities;
    (6) Whether an application for a license to export to the end-user 
has previously been denied, or whether the end-use has previously 
diverted items received under a license, License Exception, or NLR to 
unauthorized activities;
    (7) Whether the export would present an unacceptable risk of 
diversion to a nuclear explosive activity or unsafeguarded nuclear fuel-
cycle activity described in Sec. 744.2 of this part; and
    (8) The nonproliferation credentials of the importing country, based 
on consideration of the following factors:
    (i) Whether the importing country is a party to the Nuclear Non-
Proliferation Treaty (NPT) or to the Treaty for the Prohibition of 
Nuclear Weapons in Latin America (Treaty of Tlatelolco) (see Supplement 
No. 2 to part 742 of the EAR), or to a similar international legally-
binding nuclear nonproliferation agreement;
    (ii) Whether the importing country has all of its nuclear 
activities, facilities or installations that are operational, being 
designed, or under construction, under International Atomic Energy 
Agency (IAEA) safeguards or equivalent full scope safeguards;
    (iii) Whether there is an agreement for cooperation in the civil 
uses of atomic energy between the U.S. and the importing country;
    (iv) Whether the actions, statements, and policies of the government 
of the importing country are in support of nuclear nonproliferation and 
whether that government is in compliance with its international 
obligations in the field of nonproliferation;
    (v) The degree to which the government of the importing country 
cooperates in nonproliferation policy generally (e.g., willingness to 
consult on international nonproliferation issues);
    (vi) Intelligence data on the importing country's nuclear intentions 
and activities.

[61 FR 12802, Mar. 25, 1996, as amended at 61 FR 64284, Dec. 4, 1996]



Sec. 744.3  Restrictions on certain missile end-uses.

    (a) General prohibition. In addition to the license requirements for 
items specified on the CCL, you may not export or reexport an item 
subject to the EAR to any destination, including Canada, without a 
license if at the time of the export or reexport you know the item:
    (1) Is destined to or for a project listed in the footnote to 
Country Group

[[Page 246]]

D:4 (see Supplement No. 1 to part 740 of the EAR); or
    (2) Will be used in the design, development, production or use of 
missiles in or by a country listed in Country Group D:4, whether or not 
that use involves a listed project.
    (b) Additional prohibition on exporters informed by BXA. BXA may 
inform the exporter or reexporter, either individually by specific 
notice or through amendment to the EAR, that a license is required for a 
specific export or reexport, or for exports or reexports of specified 
items to a certain end-user, because there is an unacceptable risk of 
use in or diversion to activities described in paragraph (a) of this 
section, anywhere in the world. Specific notice is to be given only by, 
or at the direction of, the Deputy Assistant Secretary for Export 
Administration. When such notice is provided orally, it will be followed 
by a written notice within two working days signed by the Deputy 
Assistant Secretary for Export Administration. However, the absence of 
any such notification does not excuse the exporter from compliance with 
the license requirements of paragraph (a) of this section. An 
illustrative list of projects is included in a footnote to Country Group 
D:4. Exporters and reexporters are deemed to have been informed that an 
individual license is required to export or reexport to these projects. 
Exporters should be aware that the list of projects in Country Group D:4 
is not comprehensive; extra caution should be exercised when making any 
shipments to a country listed in Country Group D:4.
    (c) Exceptions. No License Exceptions apply to the prohibitions 
described in paragraph (a) and (b) of this section.
    (d) License review standards for certain missile end-uses. (1) 
Applications to export the items subject to this section will be 
considered on a case-by-case basis to determine whether the export would 
make a material contribution to the proliferation of missiles. When an 
export is deemed to make a material contribution, the license will be 
denied.
    (2) The following factors are among those that will be considered to 
determine what action should be taken on an application required by this 
section:
    (i) The specific nature of the end-use;
    (ii) The significance of the export in terms of its contribution to 
the design, development, production, or use of missiles;
    (iii) The capabilities and objectives of the missile and space 
programs of the recipient country;
    (iv) The non-proliferation credentials of the importing country;
    (v) The types of assurances or guarantees against design, 
development, production or use for missiles delivery purposes that are 
given in a particular case; and
    (vi) The existence of a pre-existing contract.



Sec. 744.4  Restrictions on certain chemical and biological weapons end-uses.

    (a) General prohibition. In addition to the license requirements for 
items specified on the CCL, you may not export or reexport an item 
subject to the EAR to any destination, including Canada, without a 
license if at the time of the export or reexport you know the item will 
be used in the design, development, production, stockpiling, or use of 
chemical or biological weapons in or by a country listed in Country 
Group D:3 (see Supplement No. 1 to part 740 of the EAR).
    (b) Additional prohibition on exporters informed by BXA. BXA may 
inform the exporter or reexporter, either individually by specific 
notice or through amendment to the EAR, that a license is required for a 
specific export or reexport, or for export or reexport of specified 
items to a certain end-user, because there is an unacceptable risk of 
use in or diversion to such activities, anywhere in the world. Specific 
notice is to be given only by, or at the direction of, the Deputy 
Assistant Secretary for Export Administration. When such notice is 
provided orally, it will be followed by a written notice within two 
working days signed by the Deputy Assistant Secretary for Export 
Administration. However, the absence of any such notification does not 
excuse the exporter from compliance with the license requirements of 
paragraph (a) of this section.

[[Page 247]]

    (c) Exceptions. No License Exceptions apply to the prohibitions 
described in paragraphs (a) and (b) of this section.
    (d) License review standards. (1) Applications to export or reexport 
items subject to this section will be considered on a case-by-case basis 
to determine whether the export or reexport would make a material 
contribution to the design, development, production, stockpiling, or use 
of chemical or biological weapons. When an export is deemed to make such 
a contribution, the license will be denied.
    (2) The following factors are among those that will be considered to 
determine what action should be taken on an application required under 
this section:
    (i) The specific nature of the end-use;
    (ii) The significance of the export in terms of its contribution to 
the design, development, production, stockpiling, or use of chemical or 
biological weapons;
    (iii) The non-proliferation credentials of the importing country;
    (iv) The types of assurances or guarantees against design, 
development, production, stockpiling, or use of chemical or biological 
weapons that are given in a particular case; and
    (v) The existence of a pre-existing contract.5
---------------------------------------------------------------------------

    \5\ See Supplement No. 1 to part 742 of the EAR for relevant 
contract sanctity dates.
---------------------------------------------------------------------------



Sec. 744.5  Restrictions on certain maritime nuclear propulsion end-uses.

    (a) General prohibition. In addition to the license requirements for 
items specified on the CCL, you may not export or reexport certain 
technology subject to the EAR to any destination, including Canada, 
without a license if at the time of the export or reexport you know the 
item is for use in connection with a foreign maritime nuclear propulsion 
project. This prohibition applies to any technology relating to maritime 
nuclear propulsion plants, their land prototypes, and special facilities 
for their construction, support, or maintenance, including any 
machinery, devices, components, or equipment specifically developed or 
designed for use in such plants or facilities.
    (b) Exceptions. The exceptions provided in part 740 of the EAR do 
not apply to the prohibitions described in paragraph (a) of this 
section.
    (c) License review standards. It is the policy of the United States 
Government not to participate in and not to authorize United States 
firms or individuals to participate in foreign naval nuclear propulsion 
plant projects, except under an Agreement for Cooperation on naval 
nuclear propulsion executed in accordance with Sec. 123(d) of the Atomic 
Energy Act of 1954. However, it is the policy of the United States 
Government to encourage United States firms and individuals to 
participate in maritime (civil) nuclear propulsion plant projects in 
friendly foreign countries provided that United States naval nuclear 
propulsion information is not disclosed.



Sec. 744.6  Restrictions on certain activities of U.S. persons.

    (a) General prohibitions--(1) Activities related to exports. (i) No 
U.S. person as defined in paragraph (c) of this section may, without a 
license from BXA, export, reexport, or transfer to or in any country 
other country, any item where that person knows that such item:
    (A) Will be used in the design, development, production, or use of 
nuclear explosive devices in or by a country listed in Country Group D:2 
(see Supplement No. 1 to part 740 of the EAR).
    (B) Will be used in the design, development, production, or use of 
missiles in or by a country listed in Country Group D:4 (see Supplement 
No. 1 to part 740 of the EAR); or
    (C) Will be used in the design, development, production, 
stockpiling, or use of chemical or biological weapons in or by a country 
listed in Country Group D:3 (see Supplement No. 1 to part 740 of the 
EAR).
    (ii) No U.S. person shall, without a license from BXA, knowingly 
support an export, reexport, or transfer that does not have a license as 
required by this section. Support means any action, including financing, 
transportation, and freight forwarding, by which a person facilitates an 
export, reexport, or transfer without being the actual exporter or 
reexporter.

[[Page 248]]

    (2) Other activities unrelated to exports. No U.S. person shall, 
without a license from BXA:
    (i) Perform any contract, service, or employment that the U.S. 
person knows will directly assist in the design, development, 
production, or use of missiles in or by a country listed in Country 
Group D:4 (see Supplement No. 1 to part 740 of the EAR); or
    (ii) Perform any contract, service, or employment that the U.S. 
person knows directly will directly assist in the design, development, 
production, stockpiling, or use of chemical or biological weapons in or 
by a country listed in Country Group D:3 (see Supplement No. 1 to part 
740 of the EAR).
    (3) Whole plant requirement. No U.S. person shall, without a license 
from BXA, participate in the design, construction, export, or reexport 
of a whole plant to make chemical weapons precursors identified in ECCN 
1C350, in countries other than those listed in Country Group A:3 
(Australia Group) (See Supplement No. 1 to part 740 of the EAR).
    (b) Additional prohibitions on U.S. persons informed by BXA. BXA may 
inform U.S. persons, either individually or through amendment to the 
EAR, that a license is required because an activity could involve the 
types of participation and support described in paragraph (a) of this 
section anywhere in the world.
    Specific notice is to be given only by, or at the direction of, the 
Deputy Assistant Secretary for Export Administration. When such notice 
is provided orally, it will be followed by a written notice within two 
working days signed by the Deputy Assistant Secretary for Export 
Administration. However, the absence of any such notification does not 
excuse the exporter from compliance with the license requirements of 
paragraph (a) of this section.
    (c) Definition of U.S. person. For purposes of this section, the 
term U.S. person includes:
    (1) Any individual who is a citizen of the United States, a 
permanent resident alien of the United States, or a protected individual 
as defined by 8 U.S.C. 1324b(a)(3);
    (2) Any juridical person organized under the laws of the United 
States or any jurisdiction within the United States, including foreign 
branches; and
    (3) Any person in the United States.
    (d) Exceptions. No License Exceptions apply to the prohibitions 
described in paragraphs (a) and (b) of this section.
    (e) License review standards. Applications to engage in activities 
otherwise prohibited by this section will be denied if the activities 
would make a material contribution to the design, development, 
production, stockpiling, or use of chemical or biological weapons, or of 
missiles.



Sec. 744.7  Restrictions on certain exports to and for the use of certain foreign vessels or aircraft.

    (a) General end-use prohibition. In addition to the license 
requirements for items specified on the CCL, you may not export or 
reexport an item subject to the EAR to, or for the use of, a foreign 
vessel or aircraft, whether an operating vessel or aircraft or one under 
construction, located in any port including a Canadian port, unless a 
License Exception or NLR permits the shipment to be made:
    (1) To the country in which the vessel or aircraft is located, and
    (2) To the country in which the vessel or aircraft is registered, or 
will be registered in the case of a vessel or aircraft under 
construction, and
    (3) To the country, including a national thereof, which is currently 
controlling, leasing, or chartering the vessel or aircraft.
    (b) Exception for U.S. and Canadian carriers. (1) Notwithstanding 
the general end-use prohibition in paragraph (a) of this section, export 
and reexport may be made of the commodities described in paragraph 
(b)(3) of this section, for use by or on a specific vessel or plane of 
U.S. or Canadian registry located at any seaport or airport outside the 
United States or Canada except a port in North Korea or Country Group 
D:1 (excluding the PRC and Romania), (see Supplement No. 1 to part 740) 
provided that such commodities are 6 all of the following:
---------------------------------------------------------------------------

    \6\ Where a license is required, see Secs. 748.2 and 748.4(g) of the 
EAR.

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

[[Page 249]]

    (i) Ordered by the person in command or the owner or agent of the 
vessel or plane to which they are consigned;
    (ii) Intended to be used or consumed on board such vessel or plane 
and necessary for its proper operation;
    (iii) In usual and reasonable kinds and quantities during times of 
extreme need, except that usual and reasonable quantities of ship's 
bunkers or aviation fuel are considered to be only that quantity 
necessary for a single onward voyage or flight; and
    (iv) Shipped as cargo for which a Shipper's Export Declaration (SED) 
is filed with the carrier, except that an SED is not required when any 
of the commodities, other than fuel, is exported by U.S. airlines to 
their own aircraft abroad for their use.
    (2) Exports to U.S. or Canadian Airline's Installation or Agent. 
Exports and reexports of the commodities described in paragraph (e) of 
this section, except fuel, may be made to a U.S. or Canadian airline's 
installation or agent in any foreign destination except North Korea or 
Country Group D:1 (excluding the PRC and Romania), (see Supplement No. 1 
to part 740) provided such commodities are all of the following:
    (i) Ordered by a U.S. or Canadian airline and consigned to its own 
installation or agent abroad;
    (ii) Intended for maintenance, repair, or operation of aircraft 
registered in either the United States or Canada, and necessary for the 
aircraft's proper operation, except where such aircraft is located in, 
or owned, operated or controlled by, or leased or chartered to, North 
Korea or Country Group D:1 (excluding the PRC) (see Supplement No. 1 to 
part 740) or a national of such country;
    (iii) In usual and reasonable kinds and quantities; and
    (iv) Shipped as cargo for which a Shipper's Export Declaration (SED) 
is filed with the carrier, except that an SED is not required when any 
of these commodities is exported by U.S. airlines to their own 
installations and agents abroad for use in their aircraft operations.
    (3) Applicable commodities. This Sec. 744.7 applies to the 
commodities listed subject to the provisions in paragraph (b) of this 
section:
    (i) Fuel, except crude petroleum and blends of unrefined crude 
petroleum with petroleum products, which is of non-Naval Petroleum 
Reserves origin or derivation (refer to short supply controls in part 
754 of the EAR);
    (ii) Deck, engine, and steward department stores, provisions, and 
supplies for both port and voyage requirements, except crude petroleum, 
provided that any commodities which are listed in Supplement No. 2 to 
part 754 of the EAR are of non-Naval Petroleum Reserves origin or 
derivation (refer to short supply controls in part 754 of the EAR);
    (iii) Medical and surgical supplies;
    (iv) Food stores;
    (v) Slop chest articles;
    (vi) Saloon stores or supplies; and
    (vii) Equipment and spare parts.



Sec. 744.8  Restrictions on certain exports to all countries for Libyan aircraft.

    (a) General end-use prohibition for Libyan aircraft. In addition to 
the license requirements for items specified on the CCL, you may not 
export or reexport to any destination such parts and accessories 
specified in paragraph (b) of this section if intended for use in the 
manufacture, overhaul, or rehabilitation in any country of aircraft that 
will be exported or reexported to Libya or Libyan nationals.
    (b) Scope of products subject to end-use prohibition for Libyan 
aircraft. The general end-use prohibition in paragraph (a) of this 
section applies to items controlled by ECCNs 6A008, 6A108, 6A990, 7A001, 
7A101, 7A002, 7A102, 7A003, 7A103, 7A004, 7A104, 7A006, 7A106, 7A115, 
7A994, 9A001, 9A101, 9A003, 9A018.a, 9A991, and 9A994.



Sec. 744.9.  Restrictions on technical assistance by U.S. persons with respect to encryption items.

    (a) General prohibition. No U.S. person may, without a license from 
BXA, provide technical assistance (including training) to foreign 
persons with the intent to aid a foreign person in the development or 
manufacture outside the United States of encryption commodities and 
software that, if of United States origin, would be controlled for 
``EI'' reasons under ECCN 5A002 or 5D002. Note that this prohibition 
does

[[Page 250]]

not apply if the U.S. person providing the assistance has a license or 
is otherwise entitled to export the encryption commodities and software 
in question to the foreign person(s) receiving the assistance. Note in 
addition that the mere teaching or discussion of information about 
cryptography, including, for example, in an academic setting, by itself 
would not establish the intent described in this section, even where 
foreign persons are present.
    (b) Definition of U.S. person. For purposes of this section, the 
term U.S. person includes:
    (1) Any individual who is a citizen or permanent resident alien of 
the United States;
    (2) Any juridical person organized under the laws of the United 
States or any jurisdiction within the United States, including foreign 
branches; and
    (3) Any person in the United States.
    (c) License review standards. Applications involving activities 
described in this section will be reviewed on a case-by-case basis to 
determine whether the activity is consistent with U.S. national security 
and foreign policy interests.

[61 FR 68584, Dec. 30, 1996]

 Supplement No. 1 to Part 744--Missile Technology Locations and Projects

------------------------------------------------------------------------
                 Location                             Projects          
------------------------------------------------------------------------
Bahrain                                                                 
Brazil....................................  Sonda III, Sonda IV, SS-300,
                                             SS-1000, MB/EE Series      
                                             Missile, VLS Space Launch  
                                             Vehicle                    
China.....................................  M Series Missiles, CSS-2    
Egypt                                                                   
India.....................................  Agni, Prithvi, SLV-3        
                                             Satellite Launch           
                                            Vehicle, Augmented Satellite
                                             Launch                     
                                            Vehicle (ASLV), Polar       
                                             Satellite Launch           
                                            Vehicle (PSLV),             
                                             Geostationary Satellite    
                                            Launch Vehicle (GSLV)       
Iran......................................  Surface-to-Surface Missile  
                                             Project, Scud Development  
                                             Project                    
Iraq                                                                    
Israel                                                                  
Jordan                                                                  
North Korea...............................  No Dong I, Scud Development 
                                             Project                    
Kuwait                                                                  
Lebanon                                                                 
Libya                                                                   
Oman                                                                    
Pakistan..................................  Hatf Series Missiles        
Qatar                                                                   
Saudi Arabia                                                            
South Africa..............................  Surface-to-Surface Missile  
                                             Project, Space Launch      
                                             Vehicle                    
Syria                                                                   
United Arab Emirates                                                    
Yemen                                                                   
------------------------------------------------------------------------

                 Supplement No. 2 to Part 744 [Reserved]

 Supplement No. 3 to Part 744--Countries Not Subject to Certain Nuclear 
                  End-Use Restrictions in Sec. 744.2(a)

Australia
Belgium
Denmark
France
Germany
Greece
Iceland
Italy (includes San Marino and Holy See)
Japan
Luxembourg
Netherlands
New Zealand
Norway
Portugal
Spain
Turkey
United Kingdom



PART 746--EMBARGOES AND OTHER SPECIAL CONTROLS--Table of Contents




Sec.
746.1  Introduction.
746.2  Cuba.
746.3  Iraq.
746.4  Libya.
746.5  North Korea.
746.6  [Reserved]
746.7  Iran.
746.8  Rwanda.

Supplement No. 1 to Part 746--Special Sanctions on Angola Administered 
          by the Office of Foreign Assets Control
Supplement No. 2 to Part 746--United Nations Arms Embargoes Administered 
          by the Department of State: Liberia, Somalia and Countries of 
          the Former Yugoslavia (Bosnia-Herzegovina, Croatia, Former 
          Yugoslav Republic of Macedonia, Serbia and Montenegro, 
          Slovenia)
Supplement No. 3 to Part 746--Controls on the Federal Republic of 
          Yugoslavia (Serbia and Montenegro), Bosnia-Herzegovina, 
          Croatia Administered by the Office of Foreign Assets Control


[[Page 251]]


    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 22 
U.S.C. 287c; 22 U.S.C. 6004; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., 
p. 899; E.O. 12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Notice of 
August 15, 1995 (60 FR 42767, August 17, 1995).

    Source: 61 FR 12806, Mar. 25, 1996, unless otherwise noted.



Sec. 746.1  Introduction.

    In this part, references to the EAR are references to 15 CFR chapter 
VII, subchapter C. This part implements broad based controls for items 
and activities subject to the EAR imposed to implement or U.S. 
government policies. Two categories of controls are included in this 
part.
    (a) Comprehensive controls. This part contains or refers to all the 
BXA licensing requirements, licensing policies, and License Exceptions 
for countries subject to general embargoes, currently Cuba, Libya, North 
Korea, Iran and Iraq. This part is the focal point for all the EAR 
requirements for transactions involving these countries.
    (1) Cuba, Libya, North Korea. All the items on the Commerce Control 
List (CCL) require a license to Cuba, Libya, or North Korea. In 
addition, most other items subject to the EAR, but not included on the 
CCL, designated by the Number ``EAR99'', require a license to Cuba, 
Libya, and North Korea. Most items requiring a license to these 
destinations are subject to a general policy of denial. Because these 
controls extend to virtually all exports, they do not appear in the 
Country Chart in part 738 of the EAR, nor are they reflected in the 
Commerce Control List in part 774 of the EAR.
    (2) Iran and Iraq. While BXA maintains controls on exports and 
reexports to Iran and Iraq, comprehensive embargoes on transactions 
involving these countries are administered by the Department of the 
Treasury's Office of Foreign Assets Control (OFAC).
    (b) Rwanda. The second category of EAR controls apply to Rwanda 
included in this part are those that are supplemental to controls set 
forth in the Country Chart in part 738. Such controls are listed under 
each affected ECCN on the CCL in part 774 of the EAR.
    (c) This part also contains descriptions of controls maintained by 
the Office of Foreign Assets Control in the Treasury Department and by 
Office of Defense Trade Controls in the Department of State. 
Comprehensive embargoes and supplemental controls implemented by BXA 
under the EAR usually also involve controls on items and activities 
maintained by these agencies. This part sets forth the allocation of 
licensing responsibilities between BXA and these other agencies. 
References to the requirements of other agencies are informational; for 
current, complete, and authoritative requirements, you should consult 
the appropriate agency's regulations.
    (d) Supplement No. 1 to this part provides you with general 
information on United Nations sanctions administered by the Department 
of the Treasury's Office of Foreign Assets Control (OFAC) (31 CFR part 
590) on UNITA in Angola.
    (e) Supplement No. 2 to this part provides you with general 
information on United Nations arms embargoes administered by the 
Department of State (22 CFR parts 120 through 130) on all the countries 
of the former Yugoslavia (Bosnia-Herzegovina, Croatia, the Former 
Yugoslav Republic of Macedonia, Serbia, Montenegro, and Slovenia), 
Liberia and Somalia.
    (f) Supplement No. 3 to this part provides you with information on 
embargoes on the Federal Republic of Yugoslavia (Serbia and Montenegro) 
and certain areas of Croatia and Bosnia-Herzegovina administered by OFAC 
(31 CFR part 585).



Sec. 746.2  Cuba.

    (a) License requirements. As authorized by section 6 of the Export 
Administration Act of 1979, as amended (EAA) and by the Trading with the 
Enemy Act of 1917, as amended, you will need a license to export or 
reexport all items subject to the EAR (see part 734 of the EAR for the 
scope of items subject to the EAR) to Cuba, except as follows.
    (1) License Exceptions. You may export without a license if your 
transaction meets all the applicable terms and conditions of any of the 
following License Exceptions. To determine the scope and eligibility 
requirements, you

[[Page 252]]

will need to turn to the sections or specific paragraphs of part 740 of 
the EAR (License Exceptions). Read each License Exception carefully, as 
the provisions available for embargoed countries are generally narrow.
    (i) Temporary exports and reexports (TMP) by the news media (see 
Sec. 740.8(a)(2)(viii) of the EAR).
    (ii) Operation technology and software (TSU) for legally exported 
commodities (see Sec. 740.12(a) of the EAR).
    (iii) Sales technology (TSU) (see Sec. 740.12(b) of the EAR).
    (iv) Software updates (TSU) for legally exported software (see 
Sec. 740.12(c) of the EAR).
    (v) Parts (RPL) for one-for-one replacement in certain legally 
exported commodities (see Sec. 740.9(a) of the EAR).
    (vi) Baggage (BAG) (see Sec. 740.13 of the EAR).
    (vii) Governments and international organizations (GOV) (see 
Sec. 740.10 of the EAR).
    (viii) Gift parcels and humanitarian donations (GFT) (see 
Sec. 740.11 of the EAR).
    (ix) Items in transit (TMP) from Canada through the U.S. (see 
Sec. 740.8(b)(1)(iv) of the EAR).
    (x) Aircraft and vessels (AVS) for certain aircraft on temporary 
sojourn (see Sec. 740.14(a) of the EAR).
    (2) [Reserved]
    (b) Licensing policy. Items requiring a license are subject to a 
general policy of denial, except as follows:
    (1) Medicines, medical supplies, instruments and equipment. 
Applications to export medicines, medical supplies, instruments and 
equipment will generally be approved, except:
    (i) To the extent restrictions would be permitted under section 5(m) 
of the Export Administration Act of 1979, as amended (EAA), or section 
203(b)(2) of the International Emergency Economic Powers Act;
    (ii) If there is a reasonable likelihood that the item to be 
exported will be used for purposes of torture or other human rights 
abuses;
    (iii) If there is a reasonable likelihood that the item to be 
exported will be reexported;
    (iv) If the item to be exported could be used in the production of 
any biotechnological product; or
    (v) If it is determined that the United States government is unable 
to verify, by on-site inspection or other means, that the item to be 
exported will be used for the purpose for which it was intended and only 
for the use and benefit of the Cuban people, but this exception shall 
not apply to donations of medicines for humanitarian purposes to a 
nongovernmental organization in Cuba.
    (2) Telecommunications commodities may be authorized on a case-by-
case basis, provided the commodities are part of an FCC-approved project 
and are necessary to provide efficient and adequate telecommunications 
services between the United States and Cuba.
    (3) Exports from third countries to Cuba of non-strategic foreign-
made products that contain an insubstantial proportion of U.S.-origin 
materials, parts, or components will generally be considered favorably 
on a case-by-case basis, provided all of the following conditions are 
satisfied:
    (i) The local law requires, or policy favors, trade with Cuba;
    (ii) The U.S.-origin content does not exceed 20 percent of the value 
of the product to be exported from the third country. Requests where the 
U.S.-origin parts, components, or materials represent more than 20 
percent by value of the foreign-made product will generally be denied. 
See Supplement No. 3 to part 734 of the EAR for instructions on how to 
calculate value; and
    (iii) You are not a U.S.-owned or -controlled entity in a third 
country as defined by OFAC regulations, 31 CFR part 515, or you are a 
U.S.-owned or controlled entity in a third country and one or more of 
the following situations applies:
    (A) You have a contract for the proposed export that was entered 
into prior to October 23, 1992.
    (B) Your transaction involves the export of foreign-produced 
medicine, or medical supplies, instruments, or equipment incorporating 
U.S.-origin parts, components or materials, in which case the 
application will be reviewed according to the provisions of paragraph 
(b)(1) of this section.
    (C) Your transaction is for the export of foreign-produced 
telecommunications commodities incorporating

[[Page 253]]

U.S.-origin parts, components and materials, in which case the 
application will be reviewed under the licensing policy set forth in 
paragraph (b)(2) of this section.
    (D) Your transaction is for the export of donated food to 
individuals or non-governmental organizations in Cuba and does not 
qualify for the humanitarian License Exception.
    (c) Cuba has been designated by the Secretary of State as a country 
whose government has repeatedly provided support for acts of 
international terrorism. For anti-terrorism controls, see Supplement 2 
to part 742 of the EAR.
    (d) Related controls. OFAC maintains controls on the activities of 
persons subject to U.S. jurisdiction, wherever located, involving 
transactions with Cuba or any specially designated Cuban national, as 
provided in 31 CFR part 515.

[61 FR 12802, Mar. 25, 1996, as amended at 61 FR 64284, Dec. 4, 1996]



Sec. 746.3  Iraq.

    (a) License requirements. OFAC administers an embargo against Iraq 
under the authority of the International Emergency Economic Powers Act 
of 1977, as amended, and the United Nations Participation Act of 1945, 
as amended, and in conformance with United Nations Security Council 
Resolutions. The applicable OFAC regulations, the Iraqi Sanctions 
Regulations, are found in 31 CFR part 575. You should consult with OFAC 
for authorization to export or reexport items subject to U.S. 
jurisdiction to Iraq, or to any entity owned or controlled by, or 
specially designated as acting for or on behalf of, the Government of 
Iraq. Under the EAR, you need a license to export or reexport to Iraq 
any item on the CCL containing a CB Column 1, CB Column 2, CB Column 3, 
NP Column 1, NP Column 2, NS Column 1, NS Column 2, MT Column 1, RS 
Column 1, RS Column 2, CC Column 1, CC Column 2, CC Column 3 in the 
Country Chart Column of the License Requirements section of an ECCN, or 
classified under ECCNs 1C980, 1C981, 1C982, 1C983, 1C984, 5A980, 0A980, 
and 0A983; however, to avoid duplication, an authorization from OFAC 
constitutes authorization under the EAR, and no separate BXA 
authorization is necessary. Except as noted in Sec. 746.3(a)(1) of this 
part, you may not use any BXA License Exception or other BXA 
authorization to export or reexport to Iraq.
    (1) License Exceptions. You may export or reexport without a license 
if your transaction meets all the applicable terms and conditions of one 
of the following License Exceptions. Read each License Exception 
carefully, as the provisions available for embargoed countries are 
generally narrow.
    (i) Baggage (BAG) (See Sec. 740.13 of the EAR).
    (ii) Governments and international organizations (GOV) (See 
Sec. 740.10 of the EAR).
    (2) Exports for the official use of the United Nations, its 
personnel or agencies (excluding its relief or developmental agencies). 
You must consult with OFAC to determine what transactions are eligible.
    (b) Iraq has been designated by the Secretary of State as a country 
that has repeatedly provided support for acts of international 
terrorism. For anti-terrorism controls, see Supplement 2 to part 742 of 
the EAR.
    (c) Related controls. OFAC maintains controls on the activities of 
U.S. persons, wherever located, involving transactions with Iraq or any 
specially designated Iraqi national, as provided in 31 CFR part 575.

[61 FR 12806, Mar. 25, 1996, as amended at 61 FR 64284, Dec. 4, 1996]



Sec. 746.4  Libya.

    (a) Introduction. The Department of the Treasury and the Department 
of Commerce maintain comprehensive controls on exports and reexports to 
Libya. OFAC maintains comprehensive controls on exports and 
transshipments to Libya under the Libyan Sanctions Regulations (31 CFR 
part 550). To avoid duplicate licensing procedures, OFAC and BXA have 
allocated licensing responsibility as follows: OFAC licenses direct 
exports and transshipments to Libya; BXA licenses reexports, exports of 
foreign-manufactured items containing U.S.-origin parts, components or 
materials, and exports of foreign-produced direct product of U.S. 
technology

[[Page 254]]

or software. Issuance of an OFAC license also constitutes authorization 
under the EAR, and no license from BXA is necessary. Exports and 
reexports subject to the EAR that are not subject to the Libyan 
Sanctions Regulations continue to require authorization from BXA.
    (b) License requirements--(1) Exports. OFAC and BXA both require a 
license for virtually all exports (including transshipments) to Libya. 
Except as noted in paragraph (b) of this section or specified in OFAC 
regulation, you may not use any BXA License Exception or other BXA 
authorization to export or transship to Libya. You will need a license 
from OFAC for all direct exports and transshipments to Libya except 
those eligible for the following BXA License Exceptions:
    (i) Baggage (BAG) (see Sec. 740.13 of the EAR).
    (ii) Governments and international organizations (GOV) (see 
Sec. 740.11 of the EAR).
    (iii) Gift parcels (GFT) (see Sec. 740.11(a) of the EAR).
    (2) Reexports. You will need a license from BXA to reexport any 
U.S.-origin item from a third country to Libya, any foreign-manufactured 
item containing U.S.-origin parts, components or materials, as defined 
in Sec. 734.2(b)(2) of the EAR, or any national security-controlled 
foreign-produced direct product of U.S. technology or software, as 
defined in Sec. 734.2(b)(3) of the EAR, exported from the U.S. after 
March 12, 1982. You will need a license from BXA to reexport all items 
subject to the EAR (see part 734 of the EAR) to Libya, except:
    (i) Food, medicines, medical supplies, and agricultural commodities;
    (ii) Reexports eligible for the following License Exceptions (read 
each License Exception carefully, as the provisions available for 
embargoed countries are generally narrow):
    (A) Temporary exports and reexports (TMP): reexports by the news 
media (see Sec. 740.8(a)(2)(viii) of the EAR).
    (B) Operation technology and software (TSU) for legally exported 
commodities (see Sec. 740.12(a) of the EAR).
    (C) Sales technology (TSU) (see Sec. 740.12(b) of the EAR).
    (D) Software updates (TSU) for legally exported software (see 
Sec. 740.12(c) of the EAR).
    (E) Parts (RPL) for one-for-one replacement in certain legally 
exported commodities (Sec. 740.9(a) of the EAR).
    (F) Baggage (BAG) (Sec. 740.13 of the EAR).
    (G) Aircraft and vessels (AVS) for vessels only (see 
Sec. 740.14(c)(1) of the EAR).
    (H) Governments and international organizations (GOV) (see 
Sec. 740.10 of the EAR).
    (I) Gift parcels and humanitarian donations (GFT) (see Sec. 740.11 
of the EAR).
    (c) Licensing policy. (1) You should consult with OFAC regarding 
licensing policy for transactions subject to OFAC regulation.
    (2) The licensing policy for BXA controls is as follows. Licenses 
will generally be denied for:
    (i) Items controlled for national security purposes and related 
technology and software, including controlled foreign produced products 
of U.S. technology and software exported from the United States after 
March 12, 1982; and
    (ii) Oil and gas equipment and technology and software, if listed in 
paragraph (c)(2)(vii) of this section, or if determined by BXA not to be 
readily available from sources outside the United States; and
    (iii) Commodities, software, and technology destined for the 
petrochemical processing complex at Ras Lanuf, if listed in paragraph 
(c)(2)(vii) of this section, or where such items would contribute 
directly to the development or construction of that complex (items 
destined for the township at Ras Lanuf, or for the public utilities or 
harbor facilities associated with that township, generally will not be 
regarded as making such a contribution where their functions will be 
primarily related to the township, utilities or harbor);
    (iv) Aircraft (including helicopters) or aircraft parts, components, 
or accessories to Libya or the provision of engineering and maintenance 
servicing of Libyan aircraft or aircraft components;
    (v) Arms and related material of all types, including the sale or 
transfer of

[[Page 255]]

weapons and ammunition, military vehicles and equipment, paramilitary 
police equipment, spare parts for the aforementioned, and equipment or 
supplies for the manufacture or maintenance of the aforementioned.
    (vi) Materials destined for the construction, improvement or 
maintenance of Libyan civilian or military airfields and associated 
facilities and equipment or any engineering or other services or 
components destined for the maintenance of any Libyan civil or military 
airfields or associated facilities and equipment, except emergency 
equipment and equipment and services directly related to civilian air 
traffic control; and
    (vii) Items listed in paragraphs (c)(2)(vii) (A) through (E) and 
equipment and supplies for the manufacture or maintenance of such items:
    (A) Pumps of medium or large capacity (equal to or larger than 3500 
cubic meters per hour) and drivers (gas turbines and electric motors) 
designed for use in the transportation of crude oil and natural gas.
    (B) Equipment designed for use in crude oil export terminals, as 
follows:
    (1) Loading buoys or single point moorings;
    (2) Flexible hoses for connection between underwater manifolds 
(plem) and single point mooring and floating loading hoses of large 
sizes (from 12-16 inches); or
    (3) Anchor chains.
    (C) Equipment not specially designed for use in crude oil export 
terminals, but which because of its large capacity can be used for this 
purpose, as follows:
    (1) Loading pumps of large capacity (4000 m \3\/h) and small head 
(10 bars);
    (2) Boosting pumps within the same range of flow rates;
    (3) Inline pipe line inspection tools and cleaning devices (i.e., 
pigging tools) (16 inches and above); or
    (4) Metering equipment of large capacity (1000 m \3\/h and above).
    (D) Refinery equipment, as follows:
    (1) Boilers meeting American Society of Mechanical Engineers 1 
standards;
    (2) Furnaces meeting American Society of Mechanical Engineers 8 
standards;
    (3) Fractionation columns meeting American Society of Mechanical 
Engineers 8 standards;
    (4) Pumps meeting American Petroleum Institute 610 standards;
    (5) Catalytic reactors meeting American Society of Mechanical 
Engineers 8 standards; or
    (6) Prepared catalysts, including catalysts containing platinum and 
catalysts containing molybdenum.
    (E) Spare parts for any of the items described in paragraph 
(c)(2)(vii) of this section.
    (3) Notwithstanding the presumptions of denial in paragraphs (c)(2) 
(i) through (iii), licenses will generally be issued items not included 
in paragraph (c)(2)(iv) through (vii) when the transaction involves:
    (i) The export or reexport of commodities or technology and software 
under a contract in effect prior to March 12, 1982, where failure to 
obtain a license would not excuse performance under the contract;
    (ii) Reexport of items not controlled for national security purposes 
that had been exported from the United States prior to March 12, 1982 or 
exports of foreign products incorporating such items as components; or
    (iii) Incorporation of U.S.-origin parts, components, or materials 
in foreign-manufactured products destined for Libya, where the U.S. 
content is 20 percent or less by value.
    (4) Notwithstanding the presumption of denial in paragraph (c)(2) 
(iv) through (vii), applications for reexports under a contract pre-
dating January 18, 1994, will be reviewed under the licensing policy in 
effect prior to that date.
    (5) Licenses will generally be considered favorably on a case-by-
case basis when the transaction involves the following items, provided 
such items are not included in paragraph (c)(2) (iv) through (vii):
    (i) Reexports of items subject to national security controls that 
were exported prior to March 12, 1982 and exports of foreign products 
incorporating such U.S.-origin components, where the particular 
authorization would not be contrary to specific foreign policy 
objectives of the United States; or

[[Page 256]]

    (ii) Items destined for use in the development or construction of 
the petrochemical processing complex at Ras Lanuf, where the transaction 
could be approved but for the general policy of denial set out in 
paragraph (c)(2)(iii), and where either:
    (A) The transaction involves a contract in effect before December 
20, 1983 that requires export or reexport of the items in question; or
    (B) The items had been exported from the U.S. before that date.
    (iii) Other unusual situations such as transactions involving firms 
with contractual commitments in effect before March 12, 1982.
    (6) Licenses will generally be considered favorably on a case-by-
case basis for the reexport of reasonable quantities for civil use of 
off-highway wheel tractors of carriage capacity of 9t (10 tons) or more, 
as defined in ECCN 9A992, provided such tractors are not for uses 
described in paragraph (c)(2) (iv) through (vi) of this section.
    (7) All other reexports not covered by United Nations resolutions 
will generally be approved, subject to any other licensing policies 
applicable to a particular transaction.
    (e) Libya has been designated by the Secretary of State as a country 
whose government has repeatedly provided support for acts of 
international terrorism. For anti-terrorism controls, see Supplement 2 
to part 742 of the EAR.
    (f) Related controls. OFAC administers broad economic sanctions on 
Libya, and restricts participation by U.S. persons in transactions with 
Libya or specially designated Libyan nationals. The applicable OFAC 
regulations, the Libyan Sanctions Regulations, are found in 31 CFR part 
550.

[61 FR 12806, Mar. 25, 1996, as amended at 61 FR 64284, Dec. 4, 1996]



Sec. 746.5  North Korea.

    (a) License requirements. As authorized by section 6 of the Export 
Administration Act of 1979, as amended (EAA) and by the Trading with the 
Enemy Act of 1917, as amended, you will need a license to export or 
reexport items subject to the EAR (see part 734 of the EAR) to North 
Korea, except as follows:
    (1) License Exceptions. You may export without a license if your 
transaction meets all the applicable terms and conditions of any of the 
License Exceptions specified in this paragraph. To determine scope and 
eligibility requirements, you will need to turn to the sections or 
specific paragraphs of part 740 of the EAR (License Exceptions). Read 
each License Exception carefully, as the provisions available for 
embargoed countries are generally narrow.
    (i) Temporary exports and reexports (TMP) by the news media (see 
Sec. 740.8(a)(2)(viii) of the EAR).
    (ii) Operation technology and software (TSU) for legally exported 
commodities (see Sec. 740.12(a) of the EAR).
    (iii) Sales technology (TSU) (see Sec. 740.12(b) of the EAR).
    (iv) Software updates (TSU) for legally exported software (see 
Sec. 740.12(c) of the EAR).
    (v) Parts (RPL) for one-for-one replacement in certain legally 
exported commodities (Sec. 740.9(a) of the EAR).
    (vi) Baggage (BAG) (Sec. 740.13 of the EAR).
    (vii) Aircraft and vessels (AVS) for fishing vessels under governing 
international fishery agreements and foreign-registered aircraft on 
temporary sojourn in the U.S.1 (see Sec. 740.14(a) and (c)(1) 
of the EAR).
---------------------------------------------------------------------------

    \1\  Export of U.S. aircraft on temporary sojourn or vessels is 
prohibited, 44 CFR Ch. IV, part 403 ``Shipping restrictions: North Korea 
(T-2).''
---------------------------------------------------------------------------

    (viii) Governments and international organizations (GOV) (see 
Sec. 740.10 of the EAR).
    (ix) Gift parcels and humanitarian donations (GFT) (see Sec. 740.11 
of the EAR).
    (2) [Reserved]
    (b) Licensing policy. Items requiring a license are subject to a 
general policy of denial. Exceptions to the policy of denial are as 
follows:
    (1) BXA will review on a case-by-case basis applications for export 
of donated human-needs items listed in Supplement No. 2 to part 740 of 
the EAR that do not qualify for the humanitarian donation provisions of 
License Exception GFT (see Sec. 740.11(b) of the EAR). Such

[[Page 257]]

applications include single transactions involving exports to meet 
emergency needs.
    (2) BXA will review on a case-by-case basis applications for 
commercial sales of human-needs items. Such applications must be for 
items listed in Supplement No. 2 to part 740 of the EAR, but are not 
limited solely to small scale projects at the local level.
    (c) North Korea has been designated by the Secretary of State as a 
country whose government has repeatedly provided support for acts of 
international terrorism. For anti-terrorism controls, see Supplement 2 
to part 742 of the EAR.
    (d) Related controls. OFAC maintains controls on the activities of 
persons subject to U.S. jurisdiction, wherever located, involving 
transactions with North Korea or any specially designated North Korean 
national.

[61 FR 12806, Mar. 25, 1996, as amended at 61 FR 64284, Dec. 4, 1996]
Sec. 746.6  [Reserved]



Sec. 746.7  Iran.

    The Treasury Department's Office of Foreign Assets Control (OFAC) 
administers a comprehensive trade and investment embargo against Iran 
under the authority of the International Emergency Economic Powers Act 
of 1977, as amended, section 505 of the International Security and 
Development Cooperation Act of 1985, and Executive Orders 12957 and 
12959 of March 15, 1995 and May 6, 1995, respectively. This embargo 
includes prohibitions on export and certain reexport transactions 
involving Iran, including transactions dealing with items subject to the 
EAR. (See OFAC's Iranian Transactions Regulations, 31 CFR part 560.) BXA 
continues to maintain licensing requirements on exports and reexports to 
Iran under the EAR as described in paragraph (a)(2) of this section. No 
person may export or reexport items subject to both the EAR and OFAC's 
Iranian Transactions Regulations without prior OFAC authorization.
    (a) License requirements--(1) OFAC administered embargo. You should 
consult with OFAC if:
    (i) You seek authorization to export from the United States; or
    (ii) You are a United States person (as defined in OFAC's Iranian 
Transactions Regulations, 31 CFR part 560) and seek authorization to 
export or reexport from a third country; or
    (iii) You seek authorization to reexport U.S.-origin items that were 
subject to any export license application requirements prior to 
Executive Order 12959 of May 6, 1995.
    (2) BXA license requirements. A license is required under the EAR:
    (i) To export to Iran any item on the CCL containing a CB Column 1, 
CB Column 2, CB Column 3, NP Column 1, NP Column 2, NS Column 1, NS 
Column 2, MT Column 1, RS Column 1, RS Column 2, CC Column 1, CC Column 
2, CC Column 3, AT Column 1 or AT Column 2 in the Country Chart Column 
of the License Requirements section of an ECCN, or classified under 
ECCNs 1C980, 1C981, 1C982, 1C983, 1C984, 5A980, 0A980, and 0A983; or
    (ii) To reexport to Iran any of the items identified in 
Sec. 746.7(a)(2)(i), except for ECCNs 2A994, 3A993, 5A992, 5A995, 6A990, 
6A994, 7A994, 8A992, 8A994, 9A990, 9A992, or 9A994. However, the export 
of these items from the United States to any destination with knowledge 
that they will be reexported, in whole or in part, to Iran, is 
prohibited without a license; or
    (iii) To export or reexport items subject to the general 
prohibitions, including proliferation end-use prohibitions (see part 736 
of the EAR).
    (3) BXA authorization. To avoid duplication, exporters or 
reexporters are not required to seek separate authorization from BXA for 
an export or reexport subject both to the EAR and to OFAC's Iranian 
Transactions Regulations. Therefore, if OFAC authorizes an export or 
reexport, no separate authorization from BXA is necessary.
    (4) Definitions. For purposes of this section, the term ``United 
States person'' means any United States citizen, permanent resident 
alien, entity organized under the laws of the United States (including 
foreign branches), or any person in the United States; the term 
``foreign person'' means those not defined as United States persons.
    (b) Iran has been designated by the Secretary of State as a country 
that has repeatedly provided support for

[[Page 258]]

acts of international terrorism. For anti-terrorism controls, see 
Sec. 742.8 of the EAR and Supplement 2 to part 742.



Sec. 746.8  Rwanda.

    (a) Introduction. In addition to the controls on Rwanda reflected on 
the Country Chart in Supplement 1 to part 738 of the EAR, there are 
special controls on items that fall within the scope of a United Nations 
Security Council arms embargo.
    (b) License requirements. (1) Under Executive Order 12918 of May 26, 
1994, and in conformity with United Nations Security Council (UNSC) 
Resolution 918 of May 17, 1994, an embargo applies to the sale or supply 
to Rwanda of arms and related materiel of all types and regardless of 
origin, including weapons and ammunition, military vehicles and 
equipment, paramilitary police equipment, and spare parts for such 
items. You will therefore need a license for the sale, supply or export 
to Rwanda of embargoed items, as listed in paragraph (b)(1)(i) and (ii) 
of this section, from the territory of the United States by any person. 
You will also need a license for the export, reexport, sale or supply to 
Rwanda of such items by any United States person in any foreign country 
or other location. (Reexport controls imposed by this embargo apply only 
to reexports by U.S. persons.) You will also need a license for the use 
of any U.S.-registered aircraft or vessel to supply or transport to 
Rwanda any such items. These requirements apply to embargoed items, 
regardless of origin.
    (i) Crime Control and Detection Equipment as identified on the CCL 
under CC Columns No. 1, 2 or 3 in the Country Chart column of the 
``License Requirements'' section of the applicable ECCN.
    (ii) Items described by any ECCN ending in ``18,'' and items 
described by ECCNs 1A988, 2B985, 5A980, 6A002.a.1,a.2,a.3 and c, 
6A003.b.3 and b.4, 6D102, 6E001, 6E002, 9A115, 9A991.a, 09A84, 0A986, 
and 0A988.
    (2) This embargo became effective at 11:59 p.m. EDT on May 26, 1994.
    (3) Definitions. For the purposes of this section, the term:
    (i) Person means a natural person as well as a corporation, business 
association, partnership, society, trust, or any other entity, 
organization or group, including governmental entities; and
    (ii) United States person means any citizen or national of the 
United States, any lawful permanent resident of the United States, or 
any corporation, business association, partnership, society, trust, or 
any other entity, organization or group, including governmental 
entities, organized under the laws of the United States (including 
foreign branches).
    (c) Licensing policy. Applications for export or reexport of all 
items listed in paragraphs (b)(1)(i) and (ii) of this section are 
subject to a general policy of denial. Consistent with United Nations 
Security Council Resolution 918 and the United Nations Participation 
Act, this embargo is effective notwithstanding the existence of any 
rights or obligations conferred or imposed by any international 
agreement or any contract entered into or any license or permit granted 
prior to that date, except to the extent provided in regulations, 
orders, directives or licenses that may be issued in the future under 
Executive Order 12918 or under the EAR.
    (d) Related controls. The Department of State, Office of Defense 
Trade Controls, maintains controls on arms and military equipment under 
the International Traffic in Arms Regulations (22 CFR parts 120 through 
130).

 Supplement 1 to Part 746--Special Sanctions on Angola Administered by 
                  the Office of Foreign Assets Control

    (a) Angola. BXA maintains controls on Angola as reflected on the 
Country Chart in Supplement 1 to part 738 of the EAR. (See also 
Sec. 746.7 of this part.) In addition, OFAC administers sanctions 
against the National Union for the Total Independence of Angola (UNITA). 
Under Executive Order 12865 of September 26, 1993, and consistent with 
United Nations Security Council Resolution 864 of September 15, 1993, 
OFAC administers an embargo on the sale or supply of arms and related 
materiel of all types, including weapons and ammunition, military 
vehicles and equipment and spare parts, and petroleum and petroleum 
products to:
    (1) UNITA; or
    (2) The territory of Angola, other than through points of entry 
designated by the

[[Page 259]]

Secretary of the Treasury, in the following schedule:
    (i) Airports:
    (A) Luanda; or
    (B) Katumbela, Benguela Province.
    (ii) Ports:
    (A) Luanda;
    (B) Lobito, Benguela Province; or
    (C) Namibe, Namibe Province.
    (iii) Entry Points:
    (A) Malongo, Cabinda.
    (B) [Reserved]
    (b) Exporters should apply to OFAC for authorization to export 
embargoed items to UNITA or to points of entry not designated by the 
Secretary of the Treasury. Exports of embargoed items that are also 
controlled on the CCL to end-users other than UNITA and to points of 
entry designated by the Secretary of the Treasury continue to require a 
license from BXA. In addition, all other items controlled on the CCL to 
Angola continue to require a license from BXA.

Supplement 2 to Part 746--United Nations Arms Embargoes Administered by 
 the Department of State: Liberia, Somalia, and Countries of the Former 
  Yugoslavia (Bosnia-Herzegovina, Croatia, Former Yugoslav Republic of 
               Macedonia, Serbia and Montenegro, Slovenia)

    (a) Former Socialist Federal Republic of Yugoslavia (Bosnia-
Herzegovina, Croatia, the Former Yugoslav Republic of Macedonia, Serbia 
and Montenegro, and Slovenia). The Department of State administers an 
embargo on all weapons and military equipment, consistent with United 
Nations Security Council Resolution 713 of September 25, 1991, to the 
countries of the former Socialist Federal Republic of Yugoslavia 
(Bosnia-Herzegovina, Croatia, the Former Yugoslav Republic of Macedonia, 
Serbia and Montenegro, and Slovenia). Exporters are advised to consult 
with the Department of State, Office of Defense Trade Controls (22 CFR 
parts 120 through 130), regarding exports of weapons and military 
equipment to these destinations.
    (b) Liberia. The Department of State administers an embargo on all 
weapons and military equipment to Liberia, consistent with United 
Nations Security Council Resolution 788 of November 19, 1992. Exporters 
are advised to consult with the Department of State, Office of Defense 
Trade Controls (22 CFR parts 120 through 130), regarding exports of 
weapons and military equipment.
    (c) Somalia. The Department of State administers an embargo on all 
weapons and military equipment to Somalia, consistent with United 
Nations Security Council Resolution 733 of February 23, 1992. Exporters 
are advised to consult with the Department of State, Office of Defense 
Trade Controls (22 CFR parts 120 through 130), regarding exports of 
weapons and military equipment.

   Supplement No. 3 to Part 746--Controls on the Federal Republic of 
    Yugoslavia (Serbia and Montenegro), Bosnia-Herzegovina, Croatia 
          Administered by the Office of Foreign Assets Control

    Note: OFAC administers a comprehensive embargo on the Federal 
Republic of Yugoslavia (Serbia and Montenegro), certain areas of 
Croatia, and Bosnian Serb-controlled areas of the Republic of Bosnia-
Herzegovina. Effective January 16, 1996, OFAC suspended the application 
of sanctions on Croatia and Serbia and Montenegro. Therefore, exporters 
should consult the Country Chart in Supplement No. 1 to part 738 of the 
EAR for BXA controls. OFAC controls on Bosnian Serb-controlled area of 
Bosnia-Herzegovina remain in effect. (See amendment to the Federal 
Republic of Yugoslavia (Serbia and Montenegro) and Bosnian Serb-
Controlled Areas of the Republic of Bosnia and Herzegovina Sanctions 
Regulations in the Federal Register of January 19, 1996 (61 FR 1282) (31 
CFR part 585).) This suspension affects paragraphs (a) and (c) of this 
supplement.

    (a) Federal Republic of Yugoslavia (Serbia & Montenegro). OFAC 
administers an embargo on exports and reexports to the Federal Republic 
of Yugoslavia (Serbia and Montenegro) (FRY(S & M)). OFAC administers 
this embargo under Executive Orders 12808 of May 30, 1992, 12810 of June 
5, 1992, 12831 of January 15, 1993, 12846 of April 25, 1993, and 12934 
of October 25, 1994, and consistent with United Nations Security Council 
Resolutions 757 of May 30, 1992, 787 of November 16, 1992, 820 of April 
17, 1993, and 942 of September 23, 1994. Under this embargo, no items 
subject to U.S. jurisdiction may be exported, directly or indirectly, to 
the FRY (S & M), or to any entity operated from the FRY (S & M), or 
owned or controlled by, or specially designated as acting for or on 
behalf of the Government of the FRY (S & M). The applicable OFAC 
regulations, the Federal Republic of Yugoslavia (Serbia and Montenegro) 
Sanctions Regulations, are found in 31 CFR part 585. Exporters should 
apply to OFAC for authorization to export or reexport items subject to 
the EAR to the FRY (S & M). An authorization from OFAC constitutes 
authorization under the EAR, and no BXA license is necessary.
    (b) Bosnia-Herzegovina. (1) BXA maintains the controls reflected on 
the Country Chart in Supplement 1 to part 738 of the EAR on Bosnia-
Herzegovina, except to the extent

[[Page 260]]

OFAC maintains controls on exports or reexports to that country.
    (2) OFAC maintains a comprehensive embargo on trade, including 
exports from the United States or by U.S. persons to, or through, those 
areas of the Republic of Bosnia-Herzegovina under the control of the 
Bosnian Serb forces, or activity of any kind that promotes or is 
intended to promote such dealing. OFAC maintains this embargo under 
Executive Orders 12846 of April 25, 1993 and 12934 of October 25, 1994, 
and consistent with United Nations Security Council Resolutions 820 of 
April 17, 1993 and 942 of September 23, 1994. The applicable OFAC 
regulations, the Federal Republic of Yugoslavia (Serbia and Montenegro) 
Sanctions Regulations, are found in 31 CFR part 585. U.S. persons should 
apply to OFAC for authorization to engage in trade-related transactions 
involving those areas of the Republic of Bosnia-Herzegovina under the 
control of the Bosnian Serb forces. An authorization from OFAC 
constitutes authorization under the EAR, and no BXA license is 
necessary. You will need a license from BXA for items controlled on the 
CCL to Bosnia-Herzegovina when the export or reexport is destined to 
areas in the Republic of Bosnia-Herzegovina not controlled by the 
Bosnian Serb forces. You may need a license from BXA to reexport U.S.-
origin items from third countries to areas of the Republic of Bosnia-
Herzegovina under the control of the Bosnian Serb forces.
    (c) Croatia. (1) BXA maintains the controls reflected on the Country 
Chart in Supplement 1 to part 738 of the EAR on Croatia, except to the 
extent OFAC maintains controls on exports or reexports to that country.
    (2) OFAC prohibits any dealing by a U.S. person relating to the 
export to, or transshipment through, the United Nations Protected Areas 
in the Republic of Croatia. OFAC maintains this embargo under Executive 
Order 12846 of April 25, 1993, and consistent with United Nations 
Security Council Resolution 820 of April 17, 1993. The applicable OFAC 
regulations, the Federal Republic of Yugoslavia (Serbia and Montenegro) 
Sanctions Regulations, are found in 31 CFR part 585. U.S. persons should 
apply to OFAC for authorization to engage in trade-related transactions 
involving the United Nations Protected Areas in the Republic of Croatia. 
An authorization from OFAC constitutes authorization under the EAR, and 
no BXA license is necessary. You will need a license from BXA for items 
controlled on the CCL to Croatia when the export or reexport is destined 
to areas other than the United Nations Protected Areas in the Republic 
of Croatia. Foreign persons may need a license from BXA to reexport 
U.S.-origin items from third countries to the United Nations Protected 
Areas in the Republic of Croatia.



PART 748--APPLICATIONS (CLASSIFICATION, ADVISORY, AND LICENSE) AND DOCUMENTATION--Table of Contents




Sec.
748.1  General provisions.
748.2  Obtaining forms; mailing addresses.
748.3  Classification and Advisory Opinions.
748.4  Basic guidance related to applying for a license.
748.5  Parties to the transaction on a license application.
748.6  General instructions for license applications.
748.7  Applying electronically for a license or Classification request.
748.8  Unique license application requirements.
748.9  Support documents for license applications.
748.10  Import and End-User Certificates.
748.11  Statement by Ultimate Consignee and Purchaser.
748.12  Special provisions for support documents.
748.13  Delivery Verification.

Supplement No. 1 to Part 748--BXA-748P, BXA-748P-A; Item Appendix, and 
          BXA-748P-B; End-User Appendix, Multipurpose Application 
          Instructions
Supplement No. 2 to Part 748--Unique License Application Requirements
Supplement No. 3 to Part 748--BXA-711, Statement by Ultimate Consignee 
          and Purchaser Instructions
Supplement No. 4 to Part 748--Authorities Administering Import 
          Certificate/Delivery Verification (IC/DV) and End Use 
          Certificate Systems in Foreign Countries
Supplement No. 5 to Part 748--U.S. Import Certificate and Delivery 
          Verification Procedure

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Executive Order 13026 
(November 15, 1996, 61 FR 58767) Notice of August 15, 1995 (60 FR 42767, 
August 17, 1995); and Notice of August 14, 1996 (61 FR 42527).

    Source: 61 FR 12812, Mar. 25, 1996, unless otherwise noted.



Sec. 748.1  General provisions.

    (a) Scope. In this part, references to the EAR are references to 15 
CFR chapter VII, subchapter C. The provisions of this part involve 
applications, whether submitted in writing or electronically, for 
classifications, advisory opinions or licenses subject to the Export 
Administration Regulations (EAR). All terms,

[[Page 261]]

conditions, provisions, and instructions, including the applicant and 
consignee certifications, contained in such form(s) are incorporated as 
part of the EAR. For the purposes of this part, the term ``application'' 
refers to the Form BXA-748P: Multipurpose Application or its electronic 
equivalent. If a provision contained in this part relates solely to a 
license application the term ``license application'' will appear.
    (b) BXA responses. BXA will give a formal classification, advisory 
opinion or licensing decision only through the review of a properly 
completed application supported by all relevant facts and required 
documentation submitted in writing or electronically to BXA.
    (c) Confidentiality. Consistent with section 12(c) of the Export 
Administration Act, as amended, information obtained for the purposes of 
considering license applications, and other information obtained by the 
U.S. Department of Commerce concerning license applications, will not be 
made available to the public without the approval of the Secretary of 
Commerce.



Sec. 748.2  Obtaining forms; mailing addresses.

    (a) You may obtain the forms required by the EAR from any U.S. 
Department of Commerce District Office; or in person or by telephone or 
facsimile from the following BXA offices:

                       Export Counseling Division

U.S. Department of Commerce, 14th Street and Pennsylvania Ave., N.W., 
Room H1099D, Washington, D.C. 20230, Telephone Number: (202) 482-4811, 
Facsimile Number: (202) 482-3617,

                        Western Regional Offices:

3300 Irvine Avenue, Ste. 345, Newport Beach, CA 92660, Telephone Number: 
(714) 660-0144, Facsimile Number: (714) 660-9347,
5201 Great America Pkwy, Ste. 226, Santa Clara, CA 95054, Telephone 
Number: (408) 748-7450, Facsimile Number: (408) 748-7470

    (b) For the convenience of foreign consignees and other foreign 
parties, certain BXA forms may be obtained at U.S. Embassies and 
Consulates throughout the world.
    (c) All applications should be mailed to the following address, 
unless otherwise specified: Bureau of Export Administration, U.S. 
Department of Commerce, P.O. Box 273, Washington, D.C. 20044. If you 
wish to submit your application using an overnight courier, use the 
following address: Bureau of Export Administration, U.S. Department of 
Commerce, 14th Street and Pennsylvania Avenue N.W., Room 2705, 
Washington, D.C. 20044, Attn: ``Application Enclosed''. BXA will not 
accept applications sent C.O.D.



Sec. 748.3  Classification and Advisory Opinions.

    (a) Introduction. In light of your responsibility to classify your 
item, you may ask BXA to provide you with the correct Export Control 
Classification Number (ECCN) to the paragraph (or subparagraph if 
appropriate). BXA will advise you whether or not your item is subject to 
the EAR and, if applicable, the appropriate ECCN. This type of request 
is commonly referred to as a ``Classification Request''. If requested, 
for a given end-use, end-user, and/or destination, BXA will advise you 
whether a license is required, or likely to be granted, for a particular 
transaction. Note that these responses do not bind BXA to issuing a 
license in the future. This type of request, along with requests for 
guidance regarding other interpretations of the EAR are commonly 
referred to as ``Advisory Opinions''.
    (b) Classification requests. You must submit your Classification 
Request using Form BXA-748P or its electronic equivalent. See the 
instructions contained in Supplement No. 1 to part 748 to complete the 
Blocks identified for this type of request. Classification Requests must 
be sent to BXA at one of the addresses listed in Sec. 748.2(c) of this 
part or submitted electronically. Be certain that your request is 
complete and does not omit any essential information.
    (1) Each Classification Request must be limited to 5 items. 
Exceptions may be granted by BXA on a case-by-case basis for several 
related items if the relationship between the items is satisfactorily 
substantiated in the request. Classification requests must be supported 
by any descriptive literature, brochures, precise technical 
specifications or papers that describe the items

[[Page 262]]

in sufficient technical detail to enable classification by BXA.
    (2) You must complete Blocks 1 through 5, 14, 22(b)(c)(d) and (i) 
(enter your recommended classification information in these blocks), 24 
and 25 on the application when submitting a Classification request. If 
you are requesting BXA to classify an item for which precise 
specifications are identified in Sec. 748.8 of this part, these 
specifications must be addressed in, or attached to, your application. 
Consult Sec. 738.2 of the EAR for guidance on classifying items on the 
Commerce Control List.
    (3) Classification requests for a one-time Department of Commerce 
review of encryption software transferred from the U.S. Munitions List 
consistent with E.O. 13026 of November 15, 1996 (61 FR 58767) and 
pursuant to the Presidential Memorandum of that date are required prior 
to export to determine eligibility for release from EI controls. Refer 
to Supplement No. 6 to part 742 for instructions on submitting such 
requests for mass market encryption software. For requests for Key 
Escrow, Key Recovery, or Recovery encryption products, include the word 
``Encryption'' in Block 24: Additional Information.
    (c) Advisory Opinions. Advisory Opinions must be submitted in 
writing to the address listed in Sec. 748.2(c) of the EAR. Both your 
letter and envelope must be marked ``Advisory Opinion.''
    (1) Your letter must contain the following information if you are 
requesting guidance regarding interpretations of the EAR:
    (i) The name, title, and telephone and facsimile numbers of the 
person to contact,
    (ii) Your complete address comprised of street address, city, state, 
country, and postal code; and
    (2) If you are requesting BXA to determine whether a license is 
required, or the licensing policy related to a particular end-use, end-
user, and/or destination, in addition to the information required in 
Sec. 748.3(c)(1) you must also include:
    (i) All available information on the parties to the transaction and 
the proposed end-use or end-user,
    (ii) The model number for each item, where appropriate,
    (iii) The Export Control Classification Number, if known, for each 
item; and
    (iv) Any descriptive literature, brochures, technical specifications 
or papers that describe the items in sufficient technical detail to 
enable BXA to verify the correct classification.

[61 FR 12812, Mar. 25, 1996, as amended at 61 FR 68585, Dec. 30, 1996]



Sec. 748.4  Basic guidance related to applying for a license.

    (a) Disclosure and substantiation of facts on license applications. 
You, as the applicant, are required to make the complete disclosure of 
all parties in interest to the transaction so that BXA may decide on the 
license application with the fullest knowledge of all relevant facts. If 
the license application is filed for an account other than that of the 
applicant, the agent, as applicant must disclose the name of the agent's 
principal. Where there is any doubt as to which of several persons 
should be named as a party to the license, you must disclose the names 
of all such persons and the functions to be performed by each in Block 
24 on your application or an attachment to your license application.
    (b) Applications for the export of items from the United States. A 
license application to export items from the United States may be made 
only by a person subject to the jurisdiction of the United States who is 
in fact the exporter, or by the applicant's duly authorized agent. This 
limitation does not apply to applications for the reexport of items 
previously exported. An application may be made on behalf of a person 
not subject to the jurisdiction of the United States by an authorized 
agent in the United States, who then becomes the applicant.
    (c) Prohibited from applying for a license. No person convicted of a 
violation of any statute specified in section 11(h) of the Export 
Administration Act, as amended, at the discretion of the Secretary of 
Commerce, may apply for any license for a period up to 10 years from the 
date of the conviction. See Sec. 766.25 of the EAR.

[[Page 263]]

    (d) Prior action on a shipment. If you have obtained a license 
without disclosure of the facts described in this section, the license 
will be deemed to have been obtained without disclosure of all facts 
material to the granting of the license and the license so obtained will 
be deemed void. See part 764 of the EAR for other sanctions that may 
result in the event a violation occurs.
    (1) Licenses for items subject to detention or seizure. If you 
submit a license application for items that you know have been detained 
or seized by the Office of Export Enforcement or by the U.S. Customs 
Service, you must disclose this fact to BXA when you submit your license 
application.
    (2) Licenses for items previously exported. You may not submit a 
license application to BXA covering a shipment that is already laden 
aboard the exporting carrier, exported or reexported. If such export or 
reexport should not have been made without first securing a license 
authorizing the shipment, you must send a letter of explanation to the 
Office of Export Enforcement, U.S. Department of Commerce, 14th and 
Pennsylvania Avenue, N.W., H4520, Washington, D.C., 20230. The letter 
must state why a license was not obtained and disclose all facts 
concerning the shipment that would normally have been disclosed on the 
license application. You will be informed of any action and furnished 
any instructions by the Office of Export Enforcement.
    (e) Multiple shipments. Your license application need not be limited 
to a single shipment, but may represent a reasonable estimate of items 
to be shipped throughout the validity of the license. Do not wait until 
the license you are using expires before submitting a new application. 
You may submit a new application prior to the expiration of your current 
license in order to ensure uninterrupted shipping.
    (f) Second application. You may not submit a second license 
application covering the same proposed transaction while the first is 
pending action by BXA.
    (g) Resubmission. If a license application is returned without 
action to you by BXA or your application represents a transaction 
previously denied by BXA, and you want to resubmit the license 
application, a new license application must be completed in accordance 
with the instructions contained in Supplement No. 1 to part 748. Cite 
the Application Control Number on your original application in Block 24 
on the new license application.
    (h) Emergency processing. If you believe an emergency situation 
beyond your control necessitates expedited processing of your license 
application, you should contact BXA's Exporter Counseling Division of 
the Office of Exporter Services. This office may be reached by telephone 
on (202) 482-4811 or by facsimile on (202) 482-3617. These procedures do 
not apply to emergency handling of Special Comprehensive License 
applications.
    (1) How to request emergency handling. If your license application 
is already pending with BXA, contact the Exporter Counseling Division 
directly on either number listed in paragraph (h) of this section. If 
you have not yet submitted your license application, include a written 
letter with the title ``Emergency Handling Request'' with your license 
application. The letter must include:
    (i) A justification for the request, supported, where appropriate, 
with copies of orders, communications, or other documentation to 
substantiate that your request constitutes a valid emergency. You may be 
specifically requested to supply other documents not included with your 
submission.
    (ii) An acknowledgement by you that any license issued under these 
emergency procedures will have a limited validity period as described in 
Sec. 750.7(g) of the EAR, and that it generally will not be extended.
    (2) Prompt delivery of emergency handling requests. You are 
responsible for prompt delivery of your request and license application 
to BXA. You may hand-carry your request and license application or use 
the services of an overnight courier to ensure prompt delivery. If you 
desire to hand-carry your request and license application, you may hand 
deliver it to the Exporter Counseling Division at the address stated in 
Sec. 748.2(a) of this part. If you decide to use an overnight courier, 
use the address listed in Sec. 748.2(c) of this

[[Page 264]]

part. The envelope containing your license application should be labeled 
``Attn: Exporter Counseling Division, Emergency Handling Request 
Enclosed''.
    (3) Review of emergency handling requests. BXA views an emergency as 
an unforeseeable situation over which you have no control. On the day of 
receipt, BXA will evaluate your license application and decide whether 
emergency handling is warranted. Frequent emergency request will be 
given particularly close scrutiny. This procedure is not designed to 
become a substitute for timely filing of license applications.
    (4) Action on license applications processed under emergency 
procedures. If you have submitted an emergency request, you will be 
contacted by the Exporter Counseling Division informing you of whether 
or not your request for emergency processing has been granted. If your 
license is approved under emergency handling procedures, you will be 
notified by BXA of the approval by telephone or in person. You will be 
given the license number and verbal authorization to effect shipment 
immediately, without waiting for the actual license. Any license 
approved under these emergency handling procedures will have a limited 
validity period as described in Sec. 750.7(g) of the EAR.



Sec. 748.5  Parties to the transaction on a license application.

    (a) Applicant. (1) The ``applicant'' is defined as the person who, 
as the principal party in interest in the transaction, has the power and 
responsibility for determining and controlling the exporting or 
reexporting of the items. BXA is primarily concerned with the identity 
of the applicant and the applicant's role in the transaction, and not 
the terms of sale.
    (2) Ordinarily, a seller who delivers items in the United States to 
a foreign buyer, or to the latter's forwarder or other agent, would not 
be in a position to assume responsibility for the export and would not 
be a proper applicant. This would normally be the situation where sale 
is made f.o.b. factory, although such terms of sale may relate only to 
price and are not necessarily inconsistent with the assumption by the 
seller of full responsibility for effecting the export or reexport. The 
seller can still be liable if the seller knows that the importer or its 
agent will not obtain the required license.
    (3) If the seller intends to leave the responsibility for effecting 
an export or reexport in the hands of the foreign importer or the 
latter's forwarding or purchasing agent in the United States, the 
foreign importer should apply for the license in the foreign importer's 
own name if the foreign importer is subject to the jurisdiction of the 
United States at the time of export. Otherwise, the importer's 
forwarding or purchasing agent or other person subject to the 
jurisdiction of the U.S. must appear as applicant and exporter. In this 
situation you, as the applicant, must disclose your role as agent and 
the name of your principal.
    (b) Order party. The order party is that person in the United States 
who conducted the direct negotiations or correspondence with the foreign 
purchaser or ultimate consignee and who, as a result of these 
negotiations, received the order from the foreign purchaser or ultimate 
consignee.
    (c) Purchaser. The purchaser is that person abroad who has entered 
into the transaction with the applicant to purchase an item for delivery 
to the ultimate consignee. A bank, freight forwarder, forwarding agent, 
or other intermediary is not the purchaser. The purchaser and ultimate 
consignee may be the same entity.
    (d) Intermediate consignee. The intermediate consignee is the bank, 
forwarding agent, or other intermediary (if any) who acts in a foreign 
country as an agent for the exporter or reexporter, the purchaser, or 
the ultimate consignee, for the purpose of effecting delivery of the 
export or reexport to the ultimate consignee.
    (e) Ultimate consignee. The ultimate consignee is the person located 
abroad who is the true party in interest in actually receiving the 
export for the designated end-use. A bank, freight forwarder, forwarding 
agent, or other party, when acting as an intermediary, is not acceptable 
as the ultimate consignee.

[[Page 265]]



Sec. 748.6  General instructions for license applications.

    (a) Form and instructions. An application for license, whether to 
export or reexport, must be submitted on Form BXA-748P, Multipurpose 
Application (revised June 15, 1996 or later), and Form BXA-748P-A, Item 
Appendix, and Form BXA-748P-B, End-User Appendix. Facsimiles or copies 
of these forms are not acceptable. Instructions for preparing Form BXA-
748P are contained in Supplement No. 1 to this part 748. See 
Sec. 748.7(a) of this part for instructions on submitting license 
applications electronically.
    (b) Application Control Number. Each application form includes a 
preprinted Application Control Number. The Application Control Number, 
consisting of a letter followed by six digits, is for use by BXA when 
processing applications, and by applicants when communicating with BXA 
concerning pending applications. This number is used for tracking 
purposes within the U.S. Government. The Application Control Number is 
not a license number.
    (c) Approval or denial in entirety. License applications may be 
approved in whole or in part, denied in whole or in part, or returned 
without action. However, you may specifically request that your license 
application be considered as a whole and either approved or denied in 
its entirety.
    (d) Combining items on license applications. Any items may be 
combined on a single application, however, if the items differ 
dramatically (e.g., computers and shotguns) the number of BXA offices to 
which a license application may be referred for review may increase 
significantly. Accordingly, it is recommended that you limit items on 
each license application to those that are similar and/or related.
    (e) Assembly and additional information. All documents or 
correspondence accompanying your license application should bear the 
Application Control Number, and be stapled together. Where necessary, 
BXA may require you to submit additional information beyond that stated 
in the EAR confirming or amplifying information contained in your 
license application.
    (f) Changes in facts. Answers to all items on the license 
application will be deemed to be continuing representations of the 
existing facts or circumstances. Any material or substantive change in 
the terms of the order, or in the facts relating to the transaction, 
must be promptly reported to BXA, whether a license has been granted or 
the license application is still under consideration. If a license has 
been granted and such changes are not excepted in Sec. 750.7(c) of the 
EAR, they must be reported immediately to BXA, even though shipments 
against the license may be partially or wholly completed, during the 
validity period of the license.
    (g) Request for extended license validity period. An extended 
validity period will generally be granted if your transaction is related 
to a multi-year project, when production lead time will not permit 
export or reexport during the normal validity period or for other 
similar circumstances. A continuing requirement to supply spare or 
replacement parts will not normally justify an extended validity period. 
To request an extended validity period, include justification for your 
request in Block 24 on the application.



Sec. 748.7  Applying electronically for a license or Classification request.

    (a) Authorization. You may apply electronically once you have been 
authorized to do so by BXA. An authorization to submit applications 
electronically may be limited or withdrawn by BXA at any time. There are 
no prerequisites for obtaining permission to submit electronically or 
limitations in terms of country eligibility. However, BXA may direct for 
any reason that any electronic application be resubmitted in writing, in 
whole or in part
    (1) Requesting approval to submit applications electronically. To 
submit applications electronically, your company must submit a written 
request to BXA at one of the addresses identified in Sec. 748.2(c) of 
this part. Both the envelope and letter must be marked ``Attn: 
Electronic Submission Request''. Your letter must contain your company's 
name, and the address, telephone number, and name of the principal 
contact person in your company. Before approving your request, BXA will 
provide

[[Page 266]]

you with language for a number of required certifications. Once you have 
completed the necessary certifications, you may be approved by BXA to 
submit applications electronically.
    (2) Assignment and use of company and personal identification 
numbers. (i) Each company granted permission to submit applications 
electronically will be assigned a company identification number. Each 
person approved by BXA to submit applications electronically for the 
company will be assigned a personal identification number (``PIN'') 
telephonically by BXA. A PIN will be assigned to you only if your 
company has certified to BXA that you are authorized to act for it in 
making electronic submissions under the EAR.
    (ii) Your company may reveal the assigned company identification 
number only to the PIN holders, their supervisors, employees, or agents 
of the company with a commercial justification for knowing the company 
identification number.
    (iii) An individual PIN holder may not:
    (A) Disclose the PIN to anyone;
    (B) Record the PIN either in writing or electronically;
    (C) Authorize another person to use the PIN; or
    (D) Use the PIN following termination by BXA or your company of your 
authorization or approval for PIN use.
    (iv) To prevent misuse of the PIN:
    (A) If a PIN is lost, stolen or otherwise compromised, the company 
and the PIN holder must report the loss, theft or compromise of the PIN 
immediately by telephoning BXA at (202) 482-0436. You must confirm this 
notification in writing within two business days to BXA at the address 
provided in Sec. 748.2(c) of this part.
    (B) Your company is responsible for immediately notifying BXA 
whenever a PIN holder leaves the employ of the company or otherwise 
ceases to be authorized by the company to submit applications 
electronically on its behalf.
    (v) No person may use, copy, steal or otherwise compromise a PIN 
assigned to another person; and no person may use, copy, steal or 
otherwise compromise the company identification number where the company 
has not authorized such person to have access to the number.
    (b) Electronic submission of applications. (1) All applications. 
Upon submission of the required certifications and approval of the 
company's request to use electronic submission, BXA will provide 
instructions both on the method to transmit applications electronically 
and the process for submitting required supporting documents and 
technical specifications. These instructions may be modified by BXA from 
time to time.
    (2) License Applications. The electronic submission of an 
application for license will constitute an export control document. Such 
submissions must provide the same information as written applications 
and are subject to the recordkeeping provisions of part 762 of the EAR. 
The applicant company and PIN holder submitting the application will be 
deemed to make all representations and certifications as if the 
submission were made in writing by the company and signed by the 
submitting PIN holder. Electronic submission of a license application 
will be considered complete upon the transmittal of the application to 
BXA or to an entity under contract to receive such applications for BXA.
    (c) Maintenance of a log. Your company must maintain a log, either 
manually or electronically, specifying the date and time of each 
electronic submission, the ECCNs of items on each electronic submission, 
and the name of the employee or agent submitting the license 
application. This log may not be altered. Written corrections must be 
made in a manner that does not erase or cover original entries. If the 
log is maintained electronically, corrections may only be made as 
notations.
    (d) Updating. An applicant company must promptly notify BXA of any 
change in its name or address. If your company wishes to have an 
individual added as a PIN holder, your company must advise BXA and 
follow the instructions provided by BXA. Your company should conduct 
periodic reviews to ensure that PINs are held only by individuals whose 
current responsibilities make it necessary and appropriate

[[Page 267]]

that they act for the company in this capacity.



Sec. 748.8  Unique license application requirements.

    In addition to the instructions contained in Supplement No. 1 to 
this part 748, you must also ensure that the additional requirements for 
certain items or types of transactions described in this section are 
addressed in your license application. See Supplement No. 2 to this part 
748 if your application involves:
    (a) Chemicals, medicinals, and pharmaceuticals.
    (b) Communications intercepting devices.
    (c) Digital computers, telecommunications, and related equipment.
    (d) Gift parcels; consolidated in a single shipment.
    (e) Intransit shipments through the United States.
    (f) Intransit shipments outside of the United States.
    (g) Nuclear Nonproliferation items and end-uses.
    (h) Numerical control devices, motion control boards, numerically 
controlled machine tools, dimensional inspection machines, direct 
numerical control systems, specially designed assemblies and specially 
designed software.
    (i) Parts, components, and materials incorporated abroad into 
foreign-made products.
    (j) Ship stores, plane stores, supplies, and equipment.
    (k) Regional stability controlled items.
    (l) Reexports.
    (m) Robots.
    (n) Short Supply controlled items.
    (o) Technology.
    (p) Temporary exports or reexports.



Sec. 748.9  Support documents for license applications.

    (a) Exemptions. If you plan to submit a license application 
involving one of the following situations, no support documentation is 
required. Simply submit the license application.
    (1) All exports and reexports involving ultimate consignees located 
in any of the following destinations:

Bahamas
Barbados
Belize
Bermuda
Bolivia
Brazil
Canada
Chile
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
French West Indies
French Guiana
Greenland
Guatemala
Guyana
Haiti
Honduras
Jamaica
Leeward and Windward Islands
Mexico
Miquelon and St. Pierre Islands
Netherlands Antilles
Nicaragua
Panama
Paraguay
Peru
Surinam
Trinidad and Tobago
Uruguay
Venezuela

    (2) The ultimate consignee or purchaser is a foreign government(s) 
or foreign government agency(ies). To determine whether the parties to 
your transaction meet the definition of ``government agency'' refer to 
the definition contained in part 772 of the EAR. Remember, if either the 
ultimate consignee or purchaser is not a foreign government or foreign 
government agency, a statement is required from the nongovernmental 
party. However, support documents are required from governments of the 
People's Republic of China, India, Bulgaria, Czech Republic, Hungary, 
Poland, Romania, and Slovakia.
    (3) The license application is filed by, or on behalf of, a relief 
agency registered with the Advisory Committee on Voluntary Foreign Aid, 
U.S. Agency for International Development, for export to a member agency 
in the foreign country.
    (4) The license application is submitted to export or reexport items 
for temporary exhibit, demonstration, or testing purposes.
    (5) The license application is submitted for items controlled for 
short supply reasons (see part 754 of the EAR).
    (6) The license application is submitted under the Special 
Comprehensive License procedure described in part 752 of the EAR.
    (b) Support document requirements. License applications not exempt 
under paragraph (a) of this section generally must be supported by 
documents designed to elicit information concerning the disposition of 
the items intended for export or reexport. These support documents must 
be either submitted at

[[Page 268]]

the time the license application is filed or retained in the applicant's 
files in accordance with the recordkeeping provisions of part 762 of the 
EAR. The type of support documentation required is dependent on the item 
involved and the country of ultimate destination. To determine which 
type of support documentation is required, answer the following 
questions:
    (1) Does your transaction involve items controlled for national 
security reasons?
    (i) If yes, continue with question number 2 in paragraph (b)(2) of 
this section.
    (ii) If no, your transaction may require a Statement by Ultimate 
Consignee and Purchaser.
    (2) Does your transaction involve items controlled for national 
security reasons destined for one of the following countries? (This 
applies only to those overseas destinations specifically listed.)

Argentina
Australia
Austria
Belgium
Bulgaria
China (PRC)
Czech Republic
Denmark
Finland
France
Germany
Greece
Hong Kong
Hungary
India
Ireland, Republic of
Italy
Japan
Korea, Republic of
Liechtenstein
Luxembourg
Netherlands
New Zealand
Norway
Pakistan
Poland
Portugal
Romania
Singapore
Slovakia
Spain
Sweden
Switzerland
Taiwan
Turkey
United Kingdom

    (i) If yes, your transaction may require an Import or End-User 
Certificate. Note that if the destination is the People's Republic of 
China, a Statement of Ultimate Consignee and Purchaser may be 
substituted for a PRC End-User Certificate under the following 
conditions:
    (1) The item to be exported is described in an Advisory Note for 
Country Group D:1 (See Supplement No. 1 to part 740 of the EAR) on the 
CCL; or
    (2) The item to be exported (i.e., replacement parts and sub-
assemblies) is for servicing previously exported items and is valued at 
$75,000 or less; or
    (3) The End-User is not a Chinese entity.
    (ii) If no, your transaction may require a Statement by Ultimate 
Consignee or Purchaser.
    (c) License applications requiring support documents. License 
applications requiring support by either a Statement by the Ultimate 
Consignee and Purchaser or an Import or End-User Certificate must 
indicate the type of support document obtained in Block 6 or 7 on your 
application with an ``X'' in the appropriate box. If the support 
document is an Import or End User Certificate, you must also identify 
the originating country and number of the Certificate in Block 13 on 
your application. If a license application is submitted without either 
the correct Block or Box marked on the application or the required 
support document, the license application will be immediately returned 
without action unless the satisfactory reasons for failing to obtain the 
document are supplied in Block 24 or in an attachment to your license 
application.
    (1) License applications supported by an Import or End User 
Certificate. If submission of the original certificate is not required 
by Sec. 748.10(g) of this part, you may submit your license application 
upon receipt of a facsimile or other legible copy of the Import or End 
User Certificate provided that no shipment is made against any license 
issued based upon the Import or End User Certificate prior to receipt 
and retention of the original statement by the applicant. If 
Sec. 748.10(g) of this part requires submission of the original 
certificate with your license application, you must submit the original. 
Copies will not be accepted.
    (2) License applications supported by Ultimate Consignee and 
Purchaser statements. These types of license applications may be 
submitted upon receipt of a facsimile or other legible copy of the 
original statement provided that the original manually-signed statement 
is retained by the ultimate consignee, and you retain a copy of the 
statement.
    (d) Exceptions to obtaining the required support document. BXA will 
consider the granting of an exception to the requirement for supporting 
document where the requirements cannot be met due to circumstances 
beyond your control. An exception will not be granted

[[Page 269]]

contrary to the objectives of the U.S. export control laws and 
regulations. Refer to Sec. 748.12(d) of this part for specific 
instructions on procedures for requesting an exception.
    (e) Validity period. (1) When an Import or End-User Certificate or a 
Statement by Ultimate Consignee and Purchaser is required to support one 
or more license applications, you must submit the first license 
application within the validity period shown on the Certificate, or 6 
months from the date the Certificate was issued or Statement signed, 
whichever is shorter.
    (2) All subsequent license applications supported by the same Import 
or End-Use Certificate must be submitted to BXA within one year from the 
date that the first license application supported by the same Import or 
End-Use Certificate was submitted to BXA.
    (3) All subsequent license applications supported by the same 
Statement by Ultimate Consignee and Purchaser must be submitted within 
two years of the first application if the statement was completed as a 
single transaction statement. If the statement was completed as a 
multiple transaction statement, all applications must be submitted 
within two years of signature by the consignee or purchaser, whichever 
was last.
    (f) English translation requirements. All abbreviations, coded 
terms, or other expressions on support documents having special 
significance in the trade or to the parties to the transaction must be 
explained on an attachment to the document. Documents in a language 
other than English must be accompanied by an attachment giving an 
accurate English translation, either made by a translating service or 
certified by you to be correct. Explanations or translations should be 
provided on a separate piece of paper, and not entered on the support 
documents themselves.
    (g) Responsibility for full disclosure. (1) Information contained in 
a support document cannot be construed as extending or expanding or 
otherwise modifying the specific information supplied in a license 
application or license issued by BXA. The license application covering 
the transaction discloses all facts pertaining to the transaction. The 
authorizations contained in the resulting license are not extended by 
information contained in an Import Certificate, End-User Certificate or 
Statement by Ultimate Consignee and Purchaser regarding reexport from 
the country of destination or any other facts relative to the 
transaction that are not reported on the license application.
    (2) Misrepresentations, either through failure to disclose facts, 
concealing a material fact, or furnishing false information, will 
subject responsible parties to administrative action by BXA. 
Administrative action may include suspension, revocation, or denial of 
licensing privileges and denial of other participation in exports from 
the United States.
    (3) In obtaining the required support document, you as the applicant 
are not relieved of the responsibility for full disclosure of any other 
information concerning the ultimate destination and end-use, end-user of 
which you know, even if inconsistent with the representations made in 
the Import Certificate, End-User Certificate, or Statement by Ultimate 
Consignee and Purchaser. You are responsible for promptly notifying BXA 
of any change in the facts contained in the support document that comes 
to your attention.
    (h) Effect on license application review. BXA reserves the right in 
all respects to determine to what extent any license will be issued 
covering items for which an Import or End-User Certificate has been 
issued by a foreign government. BXA will not seek or undertake to give 
consideration to recommendations from the foreign government as to the 
action to be taken on a license application. A supporting document 
issued by a foreign government will be only one of the factors upon 
which BXA will base its licensing action, since end-uses and other 
considerations are important factors in the decision making process.
    (i) Request for return of support documents submitted to BXA. If an 
applicant is requested by a foreign importer to return an unused or 
partially used Import or End-User Certificate submitted

[[Page 270]]

to BXA in support of a license application, the procedure provided in 
this paragraph (i) should be followed:
    (1) The applicant must send a letter request for return of an Import 
or End-User Certificate to the address stated in Sec. 748.2(c) of this 
part, ``Attn: Import/End-User Certificate Request''.
    (2) The letter request must include the name and address of the 
importer, the Application Control Number under which the original Import 
or End-User Certificate was submitted, the Application Control Numbers 
for any subsequent license applications supported by the same 
certificate, and one of the following statements, if applicable:
    (i) If the certificate covers a quantity greater than the total 
quantity identified on the license application(s) submitted against it, 
a statement that the certificate will not be used in connection with 
another license application.
    (ii) If you do not intend to make any additional shipments under a 
license covered by the certificate, or are in possession of an expired 
license covered by the certificate, a statement to this effect, 
indicating the unshipped items.
    (j) Recordkeeping requirements for returning certificates retained 
by the applicant. (1) Though the recordkeeping provisions of the EAR 
require that all original support documents be retained for a period of 
five years, an unused or partially used certificate may be returned at 
the request of a foreign importer provided that you submit the original 
certificate, accompanied by a letter of explanation, a copy of each 
license covered by the certificate, and a list of all shipments made 
against each license to BXA at the address listed in Sec. 748.2(c). BXA 
will notify you in writing whether your request has been granted. The 
following information must be contained in your letter of explanation:
    (i) A statement citing the foreign importer's request for return of 
the certificate;
    (ii) The license number(s) that have been issued against the 
certificate (including both outstanding and expired licenses); and
    (iii) If the certificate covers a quantity greater that the total 
quantity stated on the license(s), you must include a statement that the 
certificate will not be used in connection with another license 
application.
    (2) If your request is granted, BXA will return the certificate to 
you. You must make a copy of the certificate before you return the 
original to the importer. This copy must show all the information 
contained on the original certificate including any notation made on the 
certificate by BXA. The copies must be retained on file along with your 
correspondence in accordance with the recordkeeping provisions in part 
762 of the EAR.



Sec. 748.10  Import and End-User Certificates.

    (a) Scope. There are a variety of Import and End-User Certificates 
currently in use by various governments. The control exercised by the 
government issuing the Import or End-User Certificate is in addition to 
the conditions and restrictions placed on the transaction by BXA. The 
laws and regulations of the United States are in no way modified, 
changed, or superseded by the issuance of an Import or End-User 
Certificate. This section describes exceptions and relationships true 
for both Import and End-User Certificates, and applies only to 
transactions involving national security controlled items destined for 
one of the countries identified in Sec. 748.9(b)(2) of this part.
    (b) Import or End-User Certificate. An Import or End-User 
Certificate must be obtained, unless your transaction meets one of the 
exemptions stated in Sec. 748.9(a) of this part, if:
    (1) Any items on your license application are controlled for 
national security reasons (NS),
    (2) The ultimate destination is a country listed in Sec. 748.9(b)(2) 
of this part; and
    (3) Your license application involves the export of items classified 
in a single entry on the CCL, the total value of which exceeds $5,000.
    (i) Your license application may list several separate CCL entries. 
If any entry controlled for national security reasons exceeds $5,000, 
then an Import or End-User Certificate must be obtained covering all 
items controlled for national security reasons on your license 
application;

[[Page 271]]

    (ii) If your license application involves a lesser transaction that 
is part of a larger order for items controlled for national security 
reasons in a single ECCN exceeding $5,000, an Import or End-User 
Certificate must be obtained.
    (iii) You may be specifically requested by BXA to obtain an Import 
Certificate for a transaction valued under $5,000.
    (c) How to obtain an Import or End-User Certificate. (1) Applicants 
must request that the importer (e.g., ultimate consignee or purchaser) 
obtain the Import or End-User Certificate, and that it be issued 
covering only those items that are controlled for national security 
reasons. Importers should not be requested to obtain an Import or End-
User Certificate for items that are controlled for reasons other than 
national security. Upon receipt, the importer must transmit the original 
document to the applicant.
    (2) The applicant's name must appear on the Import or End-User 
Certificate submitted to BXA as either the applicant, supplier, or order 
party. The Import Certificate may be made out to either the ultimate 
consignee or the purchaser, even though they are different parties, as 
long as both are located in the same country.

    Note to paragraph (c) of this section: You should furnish the 
consignee with the item description contained in the CCL to be used in 
applying for the Import or End-User Certificate. It is also advisable to 
furnish a manufacturer's catalog, brochure, or technical specifications 
if the item is new.

    (3) If your transaction requires support of a PRC End-User 
Certificate, you must ensure the following information is included on 
the PRC End-User Certificate signed by an official of the Department of 
Science and Technology of the Ministry of Foreign Trade and Economic 
Cooperation (MOFTEC) with MOFTEC's seal affixed to it:
    (i) Title of contract and contract number (optional);
    (ii) Names of importer and exporter;
    (iii) End-User and end-use;
    (iv) Description of the item, quantity and dollar value; and
    (v) Signature of the importer and date.
    (d) Where to obtain Import and End-User Certificates. See Supplement 
No. 4 to this part for a list of the authorities administering the 
Import Certificate/Delivery Verification and End-User Certificate 
Systems in other countries.
    (e) Triangular symbol on International Import Certificates. (1) In 
accordance with international practice, the issuing government may stamp 
a triangular symbol on the International Import Certificate (IIC). This 
symbol is notification that the importer does not intend to import or 
retain the items in the country issuing the certificate, but that, in 
any case, the items will not be delivered to any destination except in 
accordance with the export regulations of the issuing country.
    (2) If you receive an IIC bearing a triangular symbol, you must 
identify all parties to the transaction on the license application, 
including those located outside the country issuing the IIC. If the 
importer declines to provide you with this information, you may advise 
the importer to provide the information directly to BXA, through a U.S. 
Foreign Commercial Service office, or in a sealed envelope to you marked 
``To be opened by BXA only''.
    (f) Multiple license applications supported by one certificate. An 
Import or End-User Certificate may cover more than one purchase order 
and more than one item. Where the certificate includes items for which 
more than one license application will be submitted, you must include in 
Block 24 on your application, or in an attachment to each license 
application submitted against the certificate, the following 
certification:

    I (We) certify that the quantities of items shown on this license 
application, based on the Certificate identified in Block 13 of this 
license application, when added to the quantities shown on all other 
license applications submitted to BXA based on the same Certificate, do 
not total more than the total quantities shown on the above cited 
Certificate.

    (g) Submission of Import and End-User Certificates. If a PRC End-
User Certificate is required for your proposed transaction, you must 
submit the original certificate with your license

[[Page 272]]

application. Copies will not be accepted. All other certificates must be 
retained on file by the applicant in accordance with the recordkeeping 
provisions of part 762 of the EAR, and not submitted with the license 
application.
    (h) Alterations. After an Import or End-User Certificate is issued 
by a foreign government, no corrections, additions, or alterations may 
be made on the Certificate by any person. If you desire to explain any 
information contained on the Certificate, you may attach a signed 
statement to the Certificate.
    (i) Request for Delivery Verification. BXA will, on a selective 
basis, require Delivery Verification documents for shipments supported 
by Import Certificates. You will be notified if Delivery Verification is 
required at the time of issuance of the license. Please refer to 
Sec. 748.13 of this part for detailed information on these procedures.
    (j) Retention procedures. You must retain on file the original copy 
of any certificate issued in support of a license application submitted 
to BXA, unless the original is submitted with the license application. 
All recordkeeping provisions contained in part 762 of the EAR apply to 
this requirement, except that reproductions may not be substituted for 
the officially authenticated original in this instance.



Sec. 748.11  Statement by Ultimate Consignee and Purchaser.

    (a) Exceptions to completing a Statement by Ultimate Consignee and 
Purchaser. A Statement by the Ultimate Consignee and/or Purchaser 
involved in a transaction must be completed unless:
    (1) An International Import Certificate, a People's Republic of 
China End-User Certificate, an Indian Import Certificate, or a 
Bulgarian, Czech, Hungarian, Polish, Romanian or Slovak Import 
Certificate is required in support of the license application;
    (2) The applicant is the same person as the ultimate consignee, 
provided the required statements are contained in Block 24 on the 
license application. This exemption does not apply where the applicant 
and consignee are separate entities, such as parent and subsidiary, or 
affiliated or associated firms;
    (3) The application is valued at $5000 or less, and is not part of a 
larger transaction; or
    (4) The transaction meets one of the exemptions stated in 
Sec. 748.9(a) of this part.
    (b) Submission of the Statement by Ultimate Consignee and Purchaser. 
A copy of the statement must be submitted with your license application 
if the country of ultimate destination is listed in either Country Group 
D:2, D:3, or D:4 (See Supplement No. 1 to part 740 of the EAR). The copy 
submitted by the applicant must be of sufficient quality to ensure all 
assertions made on the statement are legible and that the signatures are 
sufficiently legible to permit identification of the signature as that 
of the signer. The applicant must receive the manually-signed original 
within 60 days from the date the original is signed by the ultimate 
consignee. The applicant must, upon receipt, retain the manually-signed 
original, and both the ultimate consignee and purchaser should retain a 
copy of the statement in accordance with the recordkeeping provisions 
contained in part 762 of the EAR.
    (c) Form or letter. The ultimate consignee and purchaser must 
complete either a statement on company letterhead in accordance with 
paragraph (e) of this section or Form BXA-711, Statement by Ultimate 
Consignee and Purchaser. If the consignee and purchaser elect to 
complete the statement on letterhead and both the ultimate consignee and 
purchaser are the same entity, only one statement is necessary. If the 
ultimate consignee and purchaser are separate entities, separate 
statements must be prepared and signed. If the ultimate consignee and 
purchaser elects to complete Form BXA-711, only one Form BXA-711 
(containing the signatures of the ultimate consignee and purchaser) need 
be completed. Whether your ultimate consignee and purchaser sign a 
written statement or complete Form BXA-711, the following constraints 
apply:
    (1) Responsible officials representing the ultimate consignee and 
purchaser must sign the statement. ``Responsible official'' is defined 
as someone with

[[Page 273]]

personal knowledge of the information included in the statement, and 
authority to bind the ultimate consignee or purchaser for whom they 
sign, and who has the power and authority to control the use and 
disposition of the licensed items.
    (2) The authority to sign the statement may not be delegated to any 
person (agent, employee, or other) whose authority to sign is not 
inherent in his or her official position with the ultimate consignee or 
purchaser for whom he or she signs. The signing official may be located 
in the U.S. or in a foreign country. The official title of the person 
signing the statement must also be included.
    (3) The consignee and/or purchaser must submit information that is 
true and correct to the best of their knowledge and must promptly send a 
new statement to the applicant if changes in the facts or intentions 
contained in their statement(s) occur after the statement(s) have been 
forwarded to the applicant. Once a statement has been signed, no 
corrections, additions, or alterations may be made. If a signed 
statement is incomplete or incorrect in any respect, a new statement 
must be prepared, signed and forwarded to the applicant.
    (d) Instructions for completing Form BXA-711. Instructions on 
completing Form BXA-711 are contained in Supplement No. 3 to this part. 
The ultimate consignee and purchaser may sign a legible copy of Form 
BXA-711. It is not necessary to require your ultimate consignee and 
purchaser sign an original Form BXA-711, provided all information 
contained on the copy is legible.
    (e) Instructions for completing the statement on letterhead. 
Information in response to each of the following criteria must be 
included in the statement. If any information is unknown, that fact 
should be disclosed in the statement. Preprinted information supplied on 
the statement, including the name, address, or nature of business of the 
ultimate consignee or purchaser appearing on the letterhead or order 
form is acceptable but will not constitute evidence of either the 
signer's identity, the country of ultimate destination, or end-use of 
the items described in the license application.
    (1) Paragraph 1. One of the following certifications must be 
included depending on whether the statement is proffered in support of a 
single license application or multiple license applications:
    (i) Single. This statement is to be considered part of a license 
application submitted by [name and address of applicant].
    (ii) Multiple. This statement is to be considered a part of every 
license application submitted by [name and address of applicant] until 
one year from the date this statement is signed.
    (2) Paragraph 2. One or more of the following certifications must be 
included. Note that if any of the facts related to the following 
statements are unknown, this must be clearly stated.
    (i) The items for which a license application will be filed by [name 
of applicant] will be used by us as capital equipment in the form in 
which received in a manufacturing process in [name of country] and will 
not be reexported or incorporated into an end product.
    (ii) The items for which a license application will be filed by 
[name of applicant] will be processed or incorporated by us into the 
following product(s) [list products] to be manufactured in [name of 
country] for distribution in [list name of country or countries].
    (iii) The items for which a license application will be filed by 
[name of applicant] will be resold by us in the form in which received 
for use or consumption in [name of country].
    (iv) The items for which a license application will be filed by 
[name of applicant] will be reexported by us in the form in which 
received to [name of country or countries].
    (v) The items received from [name of applicant] will be [describe 
use of the items fully].
    (3) Paragraph 3. The following two certifications must be included:
    (i) The nature of our business is [possible choices include; broker, 
distributor, fabricator, manufacturer, wholesaler, retailer, value added 
reseller, original equipment manufacturer, etc.].

[[Page 274]]

    (ii) Our business relationship with [name of applicant] is [possible 
choices include; contractual, franchise, distributor, wholesaler, 
continuing and regular individual business, etc.] and we have had this 
business relationship for [number of years].
    (4) Paragraph 4. The final paragraph must include all of the 
following certifications:
    (i) We certify that all of the facts contained in this statement are 
true and correct to the best of our knowledge and we do not know of any 
additional facts that are inconsistent with the above statements. We 
shall promptly send a replacement statement to [name of the applicant] 
disclosing any material change of facts or intentions described in this 
statement that occur after this statement has been prepared and 
forwarded to [name of applicant]. We acknowledge that the making of any 
false statement or concealment of any material fact in connection with 
this statement may result in imprisonment or fine, or both, and denial, 
in whole or in part, of participation in U.S. exports or reexports.
    (ii) Except as specifically authorized by the U.S. Export 
Administration Regulations, or by written approval from the Bureau of 
Export Administration, we will not reexport, resell, or otherwise 
dispose of any items approved on a license supported by this statement:
    (1) To any country not approved for export as brought to our 
attention by the U.S. exporter; or
    (2) To any person if there is reason to believe that it will result 
directly or indirectly in disposition of the items contrary to the 
representations made in this statement or contrary to the U.S. Export 
Administration Regulations.
    (iii) We understand that acceptance of this statement as a support 
document cannot be construed as an authorization by BXA to reexport the 
items in the form in which received even though we may have indicated 
the intention to reexport, and that authorization to reexport is not 
granted in an export license on the basis of information provided in the 
statement, but as a result of a specific request in a license 
application.



Sec. 748.12  Special provisions for support documents.

    (a) Grace periods. Whenever the requirement for an Import or End-
User Certificate or Statement by Ultimate Consignee or Purchaser is 
imposed or extended by a change in the regulations, the license 
application need not conform to the new support documentation 
requirements for a period of 45 days after the effective date of the 
regulatory change published in the Federal Register.
    (1) Requirements are usually imposed or extended by virtue of one of 
the following:
    (i) Addition or removal of national security controls over a 
particular item; or
    (ii) Development of an Import Certificate/Delivery Verification or 
End-User Certificate program by a foreign country; or
    (iii) Removal of an item from eligibility under the Special 
Comprehensive License described in part 752 of the EAR, when you hold 
such a special license and have been exporting the item under that 
license.
    (2) License applications filed during the 45 day grace period must 
be accompanied by any evidence available to you that will support 
representations concerning the ultimate consignee, ultimate destination, 
and end use, such as copies of the order, letters of credit, 
correspondence between you and ultimate consignee, or other documents 
received from the ultimate consignee. You must also identify the 
regulatory change (including its effective date) that justifies exercise 
of the 45 day grace period. Note that an Import or End-User Certificate 
will not be accepted, after the stated grace period, for license 
applications involving items that are no longer controlled for national 
security reasons. If an item is removed from national security controls, 
you must obtain a Statement by Ultimate Consignee and Purchaser as 
described in Sec. 748.11 of this part. Likewise, any item newly 
controlled for national security purposes requires support of an Import 
or End-User Certificate as described in Sec. 748.10 of this part after 
expiration of the stated grace period.

[[Page 275]]

    (b) Reexports. If a support document would be required for an 
export, the same document would be required for reexport to Country 
Group D:1 and E:2 (See Supplement No. 1 to part 740 of the EAR).
    (c) Granting of exceptions to the support documentation requirement. 
An exception to obtaining the required support documentation will be 
considered by BXA, however, an exception will not be granted contrary to 
the objectives of the U.S. export control program. A request for 
exception may involve either a single transaction, or where the reason 
necessitating the request is continuing in nature, multiple 
transactions. If satisfied by the evidence presented, BXA may waive the 
support document requirement and accept the license application for 
processing. Favorable consideration of a request for exception generally 
will be given in instances where the support document requirement:
    (1) Imposes an undue hardship on you and/or ultimate consignee 
(e.g., refusal by the foreign government to issue an Import or End-User 
Certificate and such refusal constitutes discrimination against you); or
    (2) Cannot be complied with (e.g., the items will be held in a 
foreign trade zone or bonded warehouse for subsequent distribution in 
one or more countries); or
    (3) Is not applicable to the transaction (e.g., the items will not 
be imported for consumption into the named country of destination).
    (d) Procedures for requesting an exception. (1) Requests for 
exception must be submitted with the license application to which the 
request relates. Where the request relates to more than one license 
application it should be submitted with the first license application 
and referred to in Block 24 on any subsequent license application. The 
request for exception must be submitted in writing on the applicant's 
letterhead.
    (2) In instances where you are requesting exception from obtaining 
an Import or End-User Certificate, the request must be accompanied by a 
manually-signed original Statement by Ultimate Consignee and Purchaser 
as described in Sec. 748.11 of this part.
    (3) At a minimum, the letter request must include:
    (i) Name and address of ultimate consignee;
    (ii) Name and address of purchaser, if different from ultimate 
consignee;
    (iii) Location of foreign trade zone or bonded warehouse if the 
items will be exported to a foreign trade zone or bonded warehouse;
    (iv) Type of request, i.e., whether for a single transaction or 
multiple transactions;
    (v) Full explanation of the reason(s) for requesting the exception;
    (vi) Nature and duration of the business relationship between you 
and ultimate consignee and purchaser shown on the license application;
    (vii) Whether you have previously obtained and/or submitted to BXA 
an Import or End-User Certificate issued in the name of the ultimate 
consignee and/or purchaser, and a list of the Application Control 
Number(s) to which the certificate(s) applied; and
    (viii) Any other facts to justify granting an exception.
    (4) Action by BXA. (i) Single transaction request. Where a single 
transaction is involved, BXA will act on the request for exception at 
the same time as the license application with which the request is 
submitted. In those instances where the related license application is 
approved, the issuance of the license will serve as an automatic notice 
to the applicant that the exception was approved. If any restrictions 
are placed on granting of the exception, these will appear on the 
approval. If the request for exception is not approved, BXA will advise 
you by letter.
    (ii) Multiple transactions request. Where multiple transactions are 
involved, BXA will advise you by letter of the action taken on the 
exception request. The letter will contain any conditions or 
restrictions that BXA finds necessary to impose (including an exception 
termination date if appropriate). In addition, a written acceptance of 
these conditions or restrictions may be required from the parties to the 
transaction.
    (e) Availability of original. The original certificate or statement 
must be

[[Page 276]]

kept on file, and made available for inspection in accordance with the 
provisions of part 762 of the EAR. To ensure compliance with this 
recordkeeping requirement, BXA will require applicants, on a random 
basis, to submit specific original certificates and statements that have 
been retained on file. Applicants will be notified in writing of any 
such request.



 Sec. 748.13  Delivery Verification (DV).

    (a) Scope. (1) BXA may request applicants to obtain verifications of 
delivery on a selective basis. A Delivery Verification Certificate (DV) 
is a document issued by the government of the country of ultimate 
destination after the export has taken place and the items have either 
entered the export jurisdiction of the recipient country or are 
otherwise accounted for by the importer to the issuing government. 
Governments that issue DVs are listed in Supplement No. 4 to this part.
    (2) If BXA decides to request verification of delivery, the request 
will appear as a condition on the face of the license. If the license is 
sent directly to a party other than the applicant authorized to receive 
the license (e.g., agent, forwarder, broker, etc.), such party is 
responsible for notifying the licensee immediately in writing that a DV 
is required.
    (b) Exception to obtaining Delivery Verification. The DV requirement 
for a particular transaction is automatically canceled if, subsequent to 
the issuance of a license, the item is no longer controlled for national 
security reasons. In this instance, the licensee must send a letter to 
BXA at the address listed in Sec. 748.2(c) of this part, stating that 
the items on the license are no longer controlled for national security 
reasons, and accordingly, the request for DV will not be fulfilled by 
the licensee.
    (c) Procedure for obtaining Delivery Verification. When notified 
that a DV is required by BXA, the licensee must transmit to the importer 
a written request for a DV at the time of making each shipment under the 
license (whenever possible, this request should be submitted together 
with the related bill of lading or air waybill). The request must 
include the number of the Import or End-User Certificate for the 
transaction referred to on the license, and notify the importer that 
this same Import or End-User Certificate number should be shown on the 
DV.
    (1) The importer must obtain the DV from the appropriate government 
ministry identified in Supplement No. 4 to this part, and forward the 
completed DV to the licensee. The DV must cover the items described on 
the license that have been shipped. Note that BXA must be able to relate 
the description provided in the DV to the approved license. In order to 
ensure the same terminology is used, the licensee should provide the 
importer with the description as it appears on the license.
    (2) The original copy of the DV must be sent to BXA within 90 days 
after the last shipment has been made against the license. If 
verification of delivery is required for items covered by a license 
against which partial shipments have been made, the licensee shall 
obtain the required DV for each partial shipment, and retain these on 
file until all shipments have been made against the license. Once all 
shipments against the license have been made (or the licensee has 
determined that none will be), the licensee must forward, in one 
package, all applicable DVs to BXA at the address listed in 
Sec. 748.2(c) of this part.
    (3) The documents must be forwarded with a dated letter giving the 
license number, the name, title and signature of the authorized 
representative, and one of the following statements:
    (i) The total quantity authorized by license number ______ has been 
exported, and all delivery verification documents are attached.
    (ii) A part of the quantity authorized by license number ______ will 
not be exported. Delivery verification documents covering all items 
exported are attached.
    (iii) No shipment has been made against this license, and none is 
contemplated.
    (d) Inability to obtain Delivery Verification Certificates. If a 
licensee is unable to obtain the required DV (within the time frame 
stated above, or at all) from the importer, the licensee must promptly 
notify BXA and, upon request, make available all information and 
records, including correspondence,

[[Page 277]]

regarding the attempt to obtain the DV.

 Supplement No. 1 to Part 748--BXA-748P, BXA-748P-A; Item Appendix, and 
  BXA-748P-B; End-User Appendix; Multipurpose Application Instructions

    All information must be legibly typed within the lines for each 
Block or Box except where a signature is required. Where there is a 
choice of entering telephone numbers or facsimile numbers, and you wish 
to provide a facsimile number instead of a telephone number, identify 
the facsimile number with the letter ``F'' immediately after the number 
(e.g., 011-358-0-123456F).
    Block 1: Contact Person. Enter the name of the person who can answer 
questions concerning the application.
    Block 2: Telephone. Enter the telephone number of the person who can 
answer questions concerning the application.
    Block 3: Facsimile. Enter the facsimile number, if available, of the 
person who can answer questions concerning the application.
    Block 4: Date of Application. Enter the current date.
    Block 5: Type of Application. Export. If the items are located 
within the United States, and you wish to export those items, mark the 
Box labeled ``Export'' with an (X). Reexport. If the items are located 
outside the United States, mark the Box labeled ``Reexport'' with an 
(X). Classification Request. If you are requesting BXA to classify your 
item against the Commerce Control List (CCL), mark the Box labeled 
``Classification Request'' with an (X). Special Comprehensive License. 
If you are submitting a Special Comprehensive License application in 
accordance with procedures described in part 752 of the EAR, mark the 
Box labeled ``Special Comprehensive License'' with an (X).
    Block 6: Attachments submitted with Application. Review the 
documentation you are required to submit with your application in 
accordance with the provisions of part 748 of the EAR, and mark all 
applicable Boxes with an (X).
    Mark the Box ``Foreign Availability'' with an (X) if you are 
submitting an assertion of foreign availability with your license 
application. See part 768 of the EAR for instructions on foreign 
availability submissions.
    Mark the ``Tech. Specs.'' box with an (X) if you are submitting 
descriptive literature, brochures, technical specifications, etc. with 
your application.
    Block 7: Documents on File with Applicant. Certify that you have 
retained on file all applicable documents as required by the provisions 
of part 748 by placing an (X) in the appropriate Box(es).
    Block 8: Special Comprehensive License. Complete this Block only if 
you are submitting an application for a Special Comprehensive License in 
accordance with part 752 of the EAR.
    Block 9: Special Purpose. Complete this box for certain items or 
types of transactions only if specifically required in Supplement No. 2 
to this part.
    Block 10: Resubmission Application Control Number. If your original 
application was returned without action, provide the Application Control 
Number for that application.
    Block 11: Replacement License Number. If you have received a license 
for identical items to the same ultimate consignee, but would like to 
make a change to the license as originally approved not excepted in 
Sec. 750.7(c) of the EAR, enter the license number here, and a statement 
in Block 24 regarding what changes you wish to make to the original 
license.
    Block 12: Items Previously Exported. This Block should be completed 
only if you have marked the ``Reexport'' box in Block 5. Enter the 
license number, License Exception symbol (for exports under General 
Licenses, enter the appropriate General License symbol), or other 
authorization under which the items were originally exported, if known.
    Block 13: Import/End-User Certificate. Enter the name of the country 
and number of the Import or End User Certificate obtained in accordance 
with provisions of this part.
    Block 14: Applicant. Enter the applicant's name, street address, 
city, state/country, and postal code. Refer to Sec. 748.5(a) of this 
part for a definition of ``applicant''. If you have marked ``Export'' in 
Block 5, you must include your company's Employer Identification Number 
unless you are filing as an individual or as an agent on behalf of the 
exporter. The Employer Identification Number is assigned by the Internal 
Revenue Service for tax identification purposes. Accordingly, you should 
consult your company's financial officer or accounting division to 
obtain this number.
    Block 15: Other Party Authorized to Receive License. If you would 
like BXA to transmit the approved license to another party designated by 
you, complete all information in this Block, including name, street 
address, city, country, postal code and telephone number. Leave this 
space blank if the license is to be sent to the applicant. Designation 
of another party to receive the license does not alter the 
responsibilities of the applicant.
    Block 16: Purchaser. Enter the purchaser's complete name, street 
address, city, country, postal code and telephone or facsimile number. 
Refer to Sec. 748.5(c) of this part for a definition of ``purchaser''. 
If the purchaser is also the ultimate consignee, enter the words ``same 
as Block 18''.

[[Page 278]]

    Block 17: Intermediate Consignee. Enter the intermediate consignee's 
complete name, street address, city, country, postal code and telephone 
or facsimile number. Provide a complete street address, P.O. Boxes are 
not acceptable. Refer to Sec. 748.5(d) of this part for a definition of 
``intermediate consignee''. If this party is identical to that listed in 
Block 16, you may simply type the words ``Same as Block 16''. If your 
proposed transaction does not involve use of an intermediate consignee, 
enter ``None''. If your proposed transaction involves use of more than 
one intermediate consignee, provide the information in Block 24 for each 
additional Intermediate Consignee.
    Block 18: Ultimate Consignee. Enter the ultimate consignee's 
complete name, street address, city, country, postal code and telephone 
or facsimile number. Provide a complete street address, P.O. Boxes are 
not acceptable. The ultimate consignee is the party who will actually 
receive the material for the end-use designated in Block 21.
    Refer to Sec. 748.5(e) of this part for the definition of ``ultimate 
consignee''. A bank, freight forwarder, forwarding agent, or other 
intermediary may not be identified as the ultimate consignee. Government 
purchasing organizations are the sole exception to this requirement. 
This type of entity may be identified as the government entity that is 
the actual ultimate consignee in those instances when the items are to 
be transferred to the government entity that is the actual end-user, 
provided the actual end-use and end-user is clearly identified in Block 
21 or in additional documentation attached to the application.
    If your application is for the reexport of items previously 
exported, enter the new ultimate consignee's complete name, street 
address, city, country, postal code and telephone or facsimile number. 
If your application involves a temporary export or reexport, the 
applicant should be shown as the ultimate consignee in care of a person 
or entity who will have control over the items abroad.
    Block 19: End-User. Complete this Block only if the ultimate 
consignee identified in Block 18 is not the actual end-user. If there 
will be more than one end-user, enter the word ``Various'' in this 
Block, and use Form BXA-748P-B to identify each of the end-users. Enter 
each end user's complete name, street address, city, country, postal 
code and telephone or facsimile number. Provide a complete street 
address, P.O. Boxes are not acceptable.
    Block 20: Original Ultimate Consignee. If your application involves 
the reexport of items previously exported, enter the original ultimate 
consignee's complete name, street address, city, country, postal code 
and telephone or facsimile number. The original ultimate consignee is 
the entity identified in the original application for export as the 
ultimate consignee or the party currently in possession of the items. 
Provide a complete street address, P.O. Boxes are not acceptable.
    Block 21: Specific End-Use. Provide a complete and detailed 
description of the end-use intended by the ultimate consignee and/or 
end-user(s). If you are requesting approval of a reexport, provide a 
complete and detailed description of the end-use intended by the new 
ultimate consignee or end user(s) and indicate any other countries for 
which resale or reexport is requested. If additional space is necessary, 
use Block 21 on Form BXA-748P-A or B. Be specific, such vague 
descriptions as ``research,'' ``manufacturing,'' or ``scientific uses'' 
are not acceptable.
    Block 22: For a license application you must complete each of the 
sub-blocks contained in this Block, If you are submitting a 
classification request, you need not complete Blocks (e), (f), (g), and 
(h). Enter ``N/A'' in these blocks. If you wish to export, reexport or 
have BXA classify more than one item, use Form BXA-748P-A for additional 
items.
    (a) ECCN. Enter the Export Control Classification Number (ECCN) that 
corresponds to the item you wish to export or reexport. If you are 
asking BXA to classify your item, provide a recommended classification 
for the item in this Block.
    (b) CTP. You must complete this Block if your application involves a 
digital computer or equipment containing a digital computer as described 
in Supplement No. 2 to this part.
    Instructions on calculating the CTP are contained in a Technical 
Note at the end of Category 4 in the CCL. If your application does not 
involve these items, insert ``N/A'' in this Block.
    (c) Model Number. Enter the correct model number for each item.
    (d) CCATS Number. If you have received a classification for this 
item from BXA, provide the CCATS number shown on the classification 
issued by BXA. Otherwise, enter ``N/A'' in this Block.
    (e) Quantity. Identify the quantity to be exported or reexported, in 
terms of the ``Units'' identified for the ECCN entered in Block 21(a). 
If the ``Unit'' for an item is ``$ value,'' enter the quantity in units 
commonly used in the trade.
    (f) Units. The ``Unit'' paragraph within each ECCN will list a 
specific ``Unit'' for those items controlled by the entry. The ``Unit'' 
must be entered on all license applications submitted to BXA. If an item 
is licensed in terms of ``$ value'', the unit of quantity commonly used 
in trade must also be shown on the license application. If the unit for 
your particular item is shown as ``N/A'' in the appropriate entry on the 
CCL, enter ``N/A'' in this Block.

[[Page 279]]

    (g) Unit Price. Provide the fair market value of the items you wish 
to export or reexport. Round all prices to the nearest whole dollar 
amount. Give the exact unit price only if the value is less than $0.50. 
If normal trade practices make it impractical to establish a firm 
contract price, state in Block 24 the precise terms upon which the price 
is to be ascertained and from which the contract price may be 
objectively determined.
    (h) Total Price. Provide the total price of the item(s) described in 
Block 22(j).
    (i) Manufacturer. Provide the name only of the manufacturer, if 
known, for each of the items you wish to export, reexport, or have BXA 
classify, if different from the applicant.
    (j) Technical Description. Provide a description of the item(s) you 
wish to export, reexport, or have BXA classify. Provide details when 
necessary to identify the specific item(s), include all characteristics 
or parameters shown in the applicable ECCN using measurements identified 
in the ECCN (e.g., basic ingredients, composition, electrical 
parameters, size, gauge, grade, horsepower, etc.). These characteristics 
must be identified for the items in the proposed transaction when they 
are different than the characteristics described in promotional 
brochure(s).
    Block 23: Total Application Dollar Value. Enter the total value of 
all items contained on the application in U.S. Dollars. The use of other 
currencies is not acceptable.
    Block 24: Additional Information. Enter additional data pertinent to 
the application as required in the EAR. Include special certifications, 
names of parties in interest not disclosed elsewhere, explanation of 
documents attached, etc. Do not include information concerning Block 22 
in this space.
    If your application represents a previously denied application, you 
must provide the Application Control Number for the original 
application.
    If you are asking BXA to classify your product, use this space to 
explain why you believe the ECCN entered in Block 22(a) is appropriate. 
This explanation must contain an analysis of the item in terms of the 
technical control parameters specified in the appropriate ECCN. If you 
do not identify a recommended classification in Block 22(a), you must 
state the reason you cannot determine the appropriate classification, 
identifying any ambiguities or deficiencies in the regulations that 
precluded you from determining the correct classification.
    If additional space is necessary, use Block 24 on Form BXA-748P-A or 
B.
    Block 25: You, as the applicant or duly authorized agent of the 
applicant, must manually sign the application. If you are an agent of 
the applicant, in addition to providing your name and title in this 
Block you must enter your company's name in Block 24.

    Note: Rubber-stamped or electronic signatures are not acceptable. 
Type both your name and title in the spaces provided.

  Supplement No. 2 to Part 748--Unique License Application Requirements

    In addition to the instructions contained in Supplement No. 1 to 
part 748, you must also ensure that the additional requirements for 
certain items or types of transactions described in this supplement are 
addressed in your license application. All other blocks not specifically 
identified in this supplement must be completed in accordance with the 
instructions contained in Supplement No. 1 to part 748. The term 
``Block'' used in this supplement relates to Form BXA-748P, unless 
otherwise noted.
    (a) Chemicals, medicinals, and pharmaceuticals. If you are 
submitting a license application for the export or reexport of 
chemicals, medicinals, and/or pharmaceuticals, the following information 
must be provided in Block 22.
    (1) Facts relating to the grade, form, concentration, mixture(s), or 
ingredients as may be necessary to identify the item accurately, and;
    (2) The Chemical Abstract Service Registry (C.A.S.) numbers, if they 
exist, must be identified.
    (b) Communications intercepting devices. If you are required to 
submit a license application under Sec. 742.13 of this part, you must 
enter the words ``Communications Intercepting Device(s)'' in Block 9. 
The item you are requesting to export or reexport must be specified by 
name in Block 22(j).
    (c) Digital computers, telecommunications, and related equipment. If 
your license application involves items controlled by both Category 4 
and Category 5, your license application must be submitted according to 
the principal function of the equipment. License applications involving 
computers controlled by Category 4 must identify a Composite Theoretical 
Performance (CTP) in Block 22(b). If the principal function is 
telecommunications, a CTP is not required. Computers, related equipment, 
or software performing telecommunication or local area network functions 
will be evaluated against the telecommunications performance 
characteristics of Category 5, while cryptographic, cryptoanalytic, 
certifiable multi-level security or certifiable user isolation 
functions, or systems that limit electromagnetic compatibility (EMC) 
will be evaluated against the information security performance 
characteristics of Category 5.
    (1) Requirements for license applications involving digital 
computers. If you are submitting a license application to export or 
reexport ``digital computers'' or equipment containing digital computers 
to destinations in Country Group D:1 (See Supplement No. 1 to

[[Page 280]]

part 740 of the EAR), or to upgrade existing ``digital computer'' 
installations in those countries, you must include in addition to the 
CTP in Block 22(b) the following information:
    (i) A configuration diagram of the entire system must be submitted 
if the equipment exceeds the limits of the Advisory Notes that indicate 
a likelihood of approval for Country Group D:1 for the appropriate ECCN 
in the Commerce Control List (CCL); and
    (ii) Technical specifications and product brochures to corroborate 
the data supplied in your license application.
    (2) Additional requirements. License applications to export or 
reexport computers or related equipment that are described in Advisory 
Note 4 to Category 4, or that exceed any of the limits specified in 
Advisory Notes 3 or 4 to Category 4, must include:
    (i) A signed statement by a responsible representative of the end-
user or the importing agency describing the end-use and certifying that 
the ``digital'' computers or related equipment:
    (A) Will be used only for civil applications; and
    (B) Will not be reexported or otherwise disposed of without prior 
written authorization from BXA;
    (ii) A full description of the equipment and its intended 
application and workload; and
    (iii) A complete identification of all end-users and their 
activities.
    (d) Gift parcels; consolidated in a single shipment. If you are 
submitting a license application to export multiple gift parcels for 
delivery to individuals residing in a foreign country, you must include 
the following information in your license application.

    Note: Each gift parcel must meet the terms and conditions described 
for gift parcels in License Exception GFT (See Sec. 740.11(a) of the 
EAR).

    (1) In Block 16, enter the word ``None'';
    (2) In Block 18, enter the word ``Various'' instead of the name and 
address of a single ultimate consignee;
    (3) In Block 21, enter the phrase ``For personal use by 
recipients''.
    (4) In Block 22(e), indicate a reasonable estimate of the number of 
parcels to be shipped during the validity of the license;
    (5) In Block 22(j), enter the phrase ``Gift Parcels'';
    (6) In Block 23, indicate a reasonable value approximation 
proportionate to the quantity of gift parcels identified in Block 22(e); 
and
    (e) Intransit through the United States. If you are submitting a 
license application for items moving intransit through the United States 
that do not qualify for the intransit provisions of License Exception 
TMP (see Sec. 740.8(b)(1) of the EAR), you must provide the following 
information with your license application:
    (1) In Block 9, enter the phrase ``Intransit Shipment'';
    (2) In Block 24, enter the name and address of the foreign consignor 
who shipped the items to the United States and state the origin of the 
shipment;
    (3) Any available evidence showing the approval or acquiescence of 
the exporting country (or the country of which the exporter is a 
resident) for shipments to the proposed ultimate destination. Such 
evidence may be in the form of a Transit Authorization Certificate; and
    (4) Any support documentation required by Sec. 748.9 of this part 
for the country of ultimate destination.
    (f) Intransit outside of the United States. If you are submitting a 
license application based on General Prohibition No. 8 stated in 
Sec. 734.2(b)(8) of the EAR and identification of the intermediate 
consignee in the country of unlading or transit is unknown at the time 
the license application is submitted, the country of unlading or transit 
must be shown in Block 17.
    (g) Nuclear Nonproliferation items and end-uses.--(1) Statement 
requirement. If a license is required to export or reexport items under 
Sec. 744.2 of the EAR, prior to submitting a license application you 
must obtain a signed written statement from the foreign importer 
certifying the following:
    (i) The items to be exported or replicas thereof (``replicas'' 
refers to items produced abroad based on physical examination of the 
item originally exported, matching it in all critical design and 
performance parameters), will not be used in any of the activities 
described in Sec. 744.2(a) of the EAR; and
    (ii) Written authorization will be obtained from the BXA prior to 
reexporting the items, unless they are destined to Canada or would be 
eligible for export from the United States to the new country of 
destination under NLR based on Country Chart NP Column 1.
    (2) License application requirements. Along with the required 
certification, you must include the following information in your 
license application:
    (i) In Block 6, place an (X) in the box titled ``Nuclear 
Certification'';
    (ii) In Block 9, enter the phrase ``NUCLEAR CONTROLS'';
    (iii) In Block 21, provide, if known, the specific geographic 
locations of any installations, establishments, or sites at which the 
items will be used;
    (iv) In Block 22(j), if applicable, include a description of any 
specific features of design or specific modifications that make the item 
capable of nuclear explosive activities, or of safeguarded or 
unsafeguarded nuclear activities as described in Sec. 744.2(a)(3) of the 
EAR; and
    (v) In Block 24, if your license application is being submitted 
because you know that your transaction involves a nuclear end-use

[[Page 281]]

described in Sec. 744.2 of the EAR, you must fully explain the basis for 
your knowledge that the items are intended for the purpose(s) described 
Sec. 744.2 of the EAR. Indicate, if possible, the specific end-use(s) 
the items will have in designing, developing, fabricating, or testing 
nuclear weapons or nuclear explosive devices or in designing, 
constructing, fabricating, or operating the facilities described in 
Sec. 744.2(a)(3) of the EAR.
    (h) Numerical control devices, motion control boards, numerically 
controlled machine tools, dimensional inspection machines, direct 
numerical control systems, specially designed assemblies and specially 
designed software. (1) If you are submitting a license application to 
export, reexport, or request BXA to classify numerical control devices, 
motion control boards, numerically controlled machine tools, dimensional 
inspection machines, and specially designed software you must include 
the following information in your license application:
    (i) For numerical control devices and motion control boards:
    (A) Make and model number of the control unit;
    (B) Description and internal configuration of numerical control 
device. If the device is a computer with motion control board(s), then 
include the make and model number of the computer;
    (C) Description of the manner in which a computer will be connected 
to the CNC unit for on-line processing of CAD data. Specify the make and 
model of the computer;
    (D) Number of axes the control unit is capable of simultaneously 
controlling in a coordinated contouring mode, and type of interpolation 
(linear, circular, and other);
    (E) Minimum programmable increment;
    (F) A description and an itemized list of all software/firmware to 
be supplied with the control device or motion control board, including 
software/firmware for axis interpolation function and for any 
programmable control unit or device to be supplied with the control 
unit;
    (G) Description of capabilities related to ``real time processing'' 
and receiving computer aided-design as described in ECCN 2B001.a.2.a and 
a.2.b and ECCN 2B001.b.2 and b.3;
    (H) A description of capability to accept additional boards or 
software that would permit an upgrade of the electronic device or motion 
control board above the control levels specified in ECCN 2B001; and
    (I) Specify if the electronic device has been downgraded, and if so 
can it be upgraded in future.
    (ii) For numerically controlled machine tools and dimensional 
inspection machines:
    (A) Name and model number of machine tool or dimensional inspection 
machine;
    (B) Type of equipment, e.g., horizontal boring machine, machining 
center, dimensional inspection machine, turning center, water jet, etc.;
    (C) Description of the linear and rotary axes capable of being 
simultaneously controlled in a coordinated contouring mode, regardless 
of the fact that the coordinated movement of the machine axis may be 
limited by the numerical control unit supplied by the machine tool;
    (D) Maximum workpiece diameter for cylindrical grinding machines;
    (E) Motion (camming) of the spindle axis measured in the axial 
direction in one revolution of the spindle, and a description of the 
method of measurement for turning machine tools only;
    (F) Motion (run out) of the spindle axis measured in the radial 
direction in one revolution of the spindle, and a description of the 
method of measurement;
    (G) Overall positioning accuracy in each axis, and a description of 
the method for measurement; and
    (H) Slide motion test results if required as described in ECCN 
2B001.c.1.b.6.
    (i) Parts, components, and materials incorporated abroad into 
foreign-made products. BXA will consider license applications to export 
or reexport to multiple consignees or multiple countries when an 
application is required for foreign produced direct product containing 
parts and components subject to the EAR in Sec. 732.4(b) of the EAR and 
to General Prohibition Two stated in Sec. 734.2(b)(2) of the EAR. Such 
requests will not be approved for countries listed in Country Group E:2 
(See Supplement No. 1 to part 740 of the EAR), and may be approved only 
in limited circumstances for countries listed in Country Group D:1.
    (1) License applications for the export of parts and components. If 
you are submitting a license application for the export of parts, 
components, or materials to be incorporated abroad into products that 
will then be sent to designated third countries, you must enter in Block 
21, a description of end-use including a general description of the 
commodities to be manufactured, their typical end-use, and the countries 
where those commodities will be marketed. The countries may be listed 
specifically or may be identified by Country Groups, geographic areas, 
etc.
    (2) License applications for the reexport of incorporated parts and 
components. If you are submitting a license application for the reexport 
of parts, components, or materials incorporated abroad into products 
that will be sent to designated third countries you must include the 
following information in your license application:
    (i) In Block 9, enter the phrase ``Parts and Components'';
    (ii) In Block 18, enter the name, street address, city and country 
of the foreign party

[[Page 282]]

who will be receiving the foreign-made product. If you are requesting 
approval for multiple countries or consignees enter ``Various'' in Block 
18, and list the specific countries, Country Groups, or geographic areas 
in Block 24;
    (iii) In Block 20, enter the name, street address, city, and country 
of the foreign party who will be exporting the foreign-made product 
incorporating U.S. origin parts, components or materials;
    (iv) In Block 21, describe the activity of the ultimate consignee 
identified in Block 18 and the end-use of the foreign-made product. 
Indicate the final configuration if the product is intended to be 
incorporated in a larger system. If the end-use is unknown, state 
``unknown'' and describe the general activities of the end-user;
    (v) In Block 22(e), specify the quantity for each foreign-made 
product. If this information is unknown, enter ``Unknown'' in Block 
22(e);
    (vi) In Block 22(h), enter the digit ``0'' for each foreign-made 
product;
    (vii) In Block 22(j), describe the foreign-made product that will be 
exported, specifying type and model or part number. Attach brochures or 
specifications, if available. Show as part of the description the unit 
value, in U.S. dollars, of the foreign-made product (if more than one 
foreign-made product is listed on the license application, specify the 
unit value for each type/model/part number). Also include a description 
of the U.S. content (including the applicable Export Control 
Classification Number(s)) and its value in U.S. dollars. If more than 
one foreign-made product is identified on the license application, 
describe the U.S. content and specify the U.S. content value for each 
foreign-made product. Also, provide sufficient supporting information to 
explain the basis for the stated values. To the extent possible, explain 
how much of the value of the foreign-made product represents foreign 
origin parts, components, or materials, as opposed to labor, overhead, 
etc. When the U.S. content varies and cannot be specified in advance, 
provide a range of percentage and value that would indicate the minimum 
and maximum U.S. content;
    (viii) Include separately in Block 22(j) a description of any U.S. 
origin spare parts to be reexported with the foreign-made product, if 
they exceed the amount allowed by Sec. 740.10 of the EAR. Enter the 
quantity, if appropriate, in Block 22(e). Enter the ECCN for the spare 
parts in Block 22(a) and enter the value of the spare parts in Block 
22(h);
    (ix) In Block 23, enter the digit ``0'';
    (x) If the foreign-made product is the direct product of U.S. origin 
technology that was exported or reexported subject to written assurance, 
a request for waiver of that assurance, if necessary, may be made in 
Block 24. If U.S. origin technology will accompany a shipment to a 
country listed in Country Group D:1 or E:2 (see Supplement No. 1 to part 
740 of the EAR) describe in Block 24 the type of technology and how it 
will be used.
    (j) Ship stores, plane stores, supplies, and equipment.--(1) Vessels 
under construction. If you are submitting a license application for the 
export or reexport of items, including ship stores, supplies, and 
equipment, to a vessel under construction you must include the following 
information in your license application:
    (i) In Block 18, enter the name, street address, city, and country 
of the shipyard where vessel is being constructed;
    (ii) In Block 22(j), state the length of the vessel for a vessel 
under 12 m (40 ft) in length. For a vessel 12 m (40 ft) in length or 
over, provide the following information (if this information is unknown, 
enter ``Unknown'' in this Block):
    (A) Hull number and name of vessel;
    (B) Type of vessel;
    (C) Name and business address of prospective owner, and the 
prospective owner's nationality; and
    (D) Country of registry or intended country of registry.
    (2) Aircraft under construction. If you are submitting a license 
application for the export or reexport of items, including plane stores, 
supplies, and equipment, to an aircraft under construction you must 
include the following information in your license application:
    (i) In Block 18, enter the name and address of the plant where the 
aircraft is being constructed;
    (ii) In Block 22(j), enter the following information (if this 
information is unknown, enter ``Unknown'' in this Block):
    (A) Type of aircraft and model number;
    (B) Name and business address of prospective owner and his 
nationality; and
    (C) Country of registry or intended country of registry.
    (3) Operating vessels and aircraft. If you are submitting a license 
application for the export or reexport of items, including ship or plane 
stores, supplies, and equipment to an operating vessel or aircraft, 
whether in operation or being repaired, you must include the following 
information in your license application:
    (i) In Block 18, enter the name of the owner, the name of the 
vessel, if applicable, and port or point where the items will be taken 
aboard;
    (ii) In Block 18, enter the following statement if, at the time of 
filing the license application, it is uncertain where the vessel or 
aircraft will take on the items, but it is known that the items will not 
be shipped to a country listed in Country Group D:1 or E:2 (see 
Supplement No. 1 to part 740 of the EAR):

[[Page 283]]

    Uncertain; however, shipment(s) will not be made to Country Groups 
D:1 or E:2.
    (iii) Provide information as described in paragraph (j)(1)(ii) of 
this supplement for vessels or information contained in paragraph 
(j)(2)(ii) of this supplement for aircraft.
    (k) Regional stability controlled items. If you are submitting a 
license application for the export or reexport of items controlled for 
regional stability reasons and subject to licensing under RS Column 1 on 
the Country Chart, your license application must be accompanied by full 
technical specifications.
    (l) Reexports. If you know that an item that requires a license to 
be exported from the United States to a certain foreign destination will 
be reexported to a third destination also requiring approval, such a 
request must be included on the license application. The license 
application must specify the country to which the reexport will be made 
in Block 24. If the export does not require a license but the reexport 
does, you may apply for a license for the reexport, or you may export 
without a license and notify the consignee of the requirement to seek a 
license to reexport.
    (m) Robots. If you are submitting a license application for the 
export or reexport of items controlled by ECCNs 2B007 or 2D001 
(including robots, robot controllers, end-effectors, or related 
software) the following information must be provided in Block 24:
    (1) Specify if the robot is equipped with a vision system and its 
make, type, and model number;
    (2) Specify if the robot is specially designed to comply with 
national safety standards for explosive munitions environments;
    (3) Specify if the robot is specially designed for outdoor 
applications and if it meets military specifications for those 
applications;
    (4) Specify if the robot is specially designed for operating in an 
electro-magnetic pulse (EMP) environment;
    (5) Specify if the robot is specially designed or rated as 
radiation-hardened beyond that necessary to withstand normal industrial 
(i.e., non-nuclear industry) ionizing radiation, and its rating in grays 
(Silicon);
    (6) Describe the robot's capability of using sensors, image 
processing or scene analysis to generate or to modify robot program 
instructions or data;
    (7) Describe the manner in which the robot may be used in nuclear 
industry/manufacturing; and
    (8) Specify if the robot controllers, end-effectors, or software are 
specially designed for robots controlled by ECCN 2B007, and why.
    (n) Short Supply controlled items. If you are submitting a license 
application for the export of items controlled for short supply reasons, 
you must consult part 754 of the EAR for instructions on preparing your 
license application.
    (o) Technology--(1) License application instructions. If you are 
submitting a license application for the export or reexport of 
technology you must check the box labeled ``Letter of Explanation'' in 
Block 6, enter the word ``Technology'' in Block 9, leave Blocks 22(e) 
and (i) blank, and include a general statement that specifies the 
technology (e.g., blueprints, manuals, etc.) in Block 22(j).
    (2) Letter of explanation. Each license application to export or 
reexport technology must be supported by a comprehensive letter of 
explanation. This letter must describe all the facts for a complete 
disclosure of the transaction including, if applicable, the following 
information:
    (i) The identities of all parties to the transaction;
    (ii) The exact project location where the technology will be used;
    (iii) The type of technology to be exported or reexported;
    (iv) The form in which the export or reexport will be made;
    (v) The uses for which the data will be employed;
    (vi) An explanation of the process, product, size, and output 
capacity of all items to be produced with the technology, if applicable, 
or other description that delineates, defines, and limits the data to be 
transmitted (the ``technical scope''); and
    (vii) The availability abroad of comparable foreign technology.
    (3) Special provisions--(i) Technology controlled for national 
security reasons. If you are submitting a license application to export 
technology controlled for national security reasons to a country not 
listed in Country Group D:1 or E:2 (see Supplement No. 1 to part 740 of 
the EAR), you must obtain a written letter from the ultimate consignee 
assuring that, unless prior authorization is obtained from BXA, the 
consignee will not knowingly reexport the technology to any destination, 
or export the direct product of the technology to a country listed in 
Country Group D:1 or E:2 (See Supplement No. 1 to part 740 of the EAR). 
If you are unable to obtain this letter of assurance from your 
consignee, you must state in your license application why the assurances 
could not be obtained.
    (ii) Maritime nuclear propulsion plants and related items. If you 
are submitting a license application to export or reexport technology 
relating to maritime nuclear propulsion plants and related items 
including maritime (civil) nuclear propulsion plants, their land 
prototypes, and special facilities for their construction, support, or 
maintenance, including any machinery, device, component, or equipment 
specifically developed or designed for use in such plants or facilities 
you

[[Page 284]]

must include the following information in your license application:
    (A) A description of the foreign project for which the technology 
will be furnished;
    (B) A description of the scope of the proposed services to be 
offered by the applicant, his consultant(s), and his subcontractor(s), 
including all the design data that will be disclosed;
    (C) The names, addresses and titles of all personnel of the 
applicant, the applicant's consultant(s) and subcontractor(s) who will 
discuss or disclose the technology or be involved in the design or 
development of the technology;
    (D) The beginning and termination dates of the period of time during 
which the technology will be discussed or disclosed and a proposed time 
schedule of the reports the applicant will submit to BXA, detailing the 
technology discussed or disclosed during the period of the license;
    (E) The following certification:
    I (We) certify that if this license application is approved, I (we) 
and any consultants, subcontractors, or other persons employed or 
retained by us in connection with the project licensed will not discuss 
with or disclose to others, directly or indirectly, any technology 
relating to U.S. naval nuclear propulsion plants. I (We) further certify 
that I (we) will furnish to the Bureau of Export Administration all 
reports and information it may require concerning specific transmittals 
or disclosures of technology under any license granted as a result of 
this license application.
    (F) A statement of the steps that you will take to assure that 
personnel of the applicant, the applicant's consultant(s) and 
subcontractor(s) will not discuss or disclose to others technology 
relating to U.S. naval nuclear propulsion plants; and
    (G) A written statement of assurance from the foreign importer as 
described in paragraph (o)(3)(i) of this supplement.
    (p) Temporary exports or reexports. If you are submitting a license 
application for the temporary export or reexport of an item (not 
eligible for the temporary exports and reexports provisions of License 
Exception TMP (see Sec. 740.9(a) of the EAR)) you must include the 
following certification in Block 24:
    The items described on this license application are to be 
temporarily exported (or reexported) for (state the purpose e.g., 
demonstration, testing, exhibition, etc.), used solely for the purpose 
authorized, and returned to the United States (or originating country) 
as soon as the temporary purpose has ended, but in no case later than 
one year of the date of export (or reexport), unless other disposition 
has been authorized in writing by the Bureau of Export Administration.

[61 FR 12812, Mar. 25, 1996, as amended at 61 FR 64285, Dec. 4, 1996]

 Supplement No. 3 to Part 748--BXA-711, Statement by Ultimate Consignee 
                       and Purchaser Instructions

    All information must be typed or legibly printed in each appropriate 
Block or Box.
    Block 1: Ultimate Consignee. The Ultimate Consignee must be the 
person abroad who is actually to receive the material for the 
disposition stated in Block 2. A bank, freight forwarder, forwarding 
agent, or other intermediary is not acceptable as the Ultimate 
Consignee.
    Block 2: Disposition or Use of Items by Ultimate Consignee named in 
Block 1. Place an (X) in ``A.,'' ``B.,'' ``C.,'' ``D.,'' and ``E.,'' as 
appropriate, and fill in the required information.
    Block 3: Nature of Business of Ultimate Consignee named in Block 1. 
Complete both ``A'' and ``B''.
    Possible choices for ``A'' include: broker, distributor, fabricator, 
manufacturer, wholesaler, retailer, value added reseller, original 
equipment manufacturer, etc.
    Possible choices for ``B'' include: contractual, franchise, 
distributor, wholesaler, continuing and regular individual business, 
etc.
    Block 4: Additional Information. Provide any other information not 
appearing elsewhere on the form such as other parties to the 
transaction, and any other material facts that may be of value in 
considering license applications supported by this statement.
    Block 5: Assistance in Preparing Statement. Name all persons, other 
than employees of the ultimate consignee or purchaser, who assisted in 
the preparation of this form.
    Block 6: Ultimate Consignee. Enter the requested information and 
sign the statement in ink. (For a definition of ultimate consignee, see 
Sec. 748.5(e) of this part.)
    Block 7: Purchaser. This form must be signed in ink by the 
Purchaser, if the Purchaser is not the same as the Ultimate Consignee 
identified in Block 1. (For a definition of purchaser, see Sec. 748.5(c) 
of this part.)
    Block 8: Certification for U.S. Exporter. This Block must be 
completed to certify that no correction, addition, or alteration on this 
form was made subsequent to the signing by the Ultimate Consignee in 
Block 6 and Purchaser in Block 7.

[[Page 285]]

     Supplement No. 4 to Part 748--Authorities Administering Import 
   Certificate/Delivery Verification (IC/DV) and End Use Certificate 
                      Systems in Foreign Countries

----------------------------------------------------------------------------------------------------------------
              Country                                  IC/DV Authorities                     System administered
----------------------------------------------------------------------------------------------------------------
Argentina.........................  Secretaria Ejecutiva de la Comision Nacional de Control  IC/DV              
                                     de Exportaciones Sensitivas y Material Belico Balcarce                     
                                     362--ler. piso Capital Federal--CP 1064 Buenos Aires                       
                                     Tel. 334-0738, Fax 331-1618                                                
Australia.........................  Director, Technology Transfer and Analysis, Industry     IC/DV              
                                     Policy and Operations Division, Department of Defense,                     
                                     Russell Office, Canberra, A.C.T. 2600                                      
Austria...........................  Bundesministerium fur Handel Gewerbe und Industrie       IC/DV              
                                     Landstr. Haupstr. 55-57, Vienna 1031                                       
Belgium...........................  Ministere Des Affaires Economiques Office Central des    IC/DV              
                                     Contingents et Licences 24-26 Rue De Mot, Bruxelles-                       
                                     1040                                                                       
Bulgaria..........................  Ministry of Trade 12 Al. Batenberg 1000 Sofia            IC/DV              
China, People's Republic of.......  Technology Import and Export Department MOFTEC No. 2     PRC End-User       
                                     Dong Chang An Street Beijing, Telephone: 553031,        Certificate        
                                     Telex: 22478 MFERTCN                                                       
Czech Republic....................  Federal Ministry of Foreign Trade Head of Licensing      IC/DV              
                                     Politickych Veznu 20 112 49 Praha 1                                        
Denmark...........................  Handelsministeriets Licenskontor Kampmannsgade 1, DK     IC/DV              
                                     1604, Copenhagen V                                                         
                                    IC's also issued by Danmarks Nationalbank Holmens Kanal  DV                 
                                     17, Copenhagen K Custom-houses                                             
Finland...........................  Hensingin Piiritullikamari, Kanavakatu 6 (or P.O. Box    IC/DV              
                                     168) 00161 Helsinki                                                        
France............................  Ministere de l'Economie et des Finances Direction        IC/DV              
                                     Generale des Douanes et Droits Indirects Division des                      
                                     Affaires Juridiques et Contentieuses 8, Rue de la Tour                     
                                     des Dames, Bureau D/3, 75436, Paris Codex 09                               
Germany...........................  Bundesamt fur gewerbliche Wirtschaft Frankfurter         IC/DV              
                                     Strasse 29-31 65760 Eschborn                                               
Greece............................  Banque de Greece, Direction des Transactions             IC/DV              
                                     Commerciales avec l'Etranger Athens                                        
Hong Kong.........................  Trade Department, Ocean Centre, Canton Road,             IC/DV              
                                     Tsimshatsui, Kowloon,                                                      
Hungary...........................  Ministry of International Economic Relations Export      IC/DV              
                                     Control Office 1054 Budapest P.O. Box 728 H-1365, Hold                     
                                     Str. 17                                                                    
India.............................  For small scale industries and entities, and those not                      
                                     elsewhere specified:                                                       
                                      Deputy Director General of Foreign Trade Udyog         Indian IC          
                                     Bhawan, Maulana Azad Road New Delhi 11011                                  
                                    For the ``organized'' sector, except for computers and                      
                                     related equipment:                                                         
                                      Directorate General of Technical Development, Udyog    Indian IC          
                                     Bhawan, Maulana Azad Road, New Delhi 11011                                 
                                    For Defense organizations:                                                  
                                      Defense Research and Development Organization Room     Indian IC          
                                     No. 224, ``B'' Wing Sena Bhawan, New Delhi 110011                          
                                    For computers and related electronic items:                                 
                                      Department of Electronics, Lok Nayak Bhawan, New       Indian IC          
                                     Delhi 110003                                                               
                                    For any of the above:                                                       
                                      Assistant Director, Embassy of India, Commerce Wing,   Indian IC          
                                     2536 Massachusetts Ave. NW, Washington D.C. 20008--                        
Ireland, Republic of..............  Department of Industry, Trade, Commerce and Tourism,     IC/DV              
                                     Frederick House, South Frederick Street, Dublin 2                          
Italy.............................  Ministero del Commercio con l'Estero Direzione Generale  IC/DV              
                                     delle Importazioni e delle Esportazioni, Div. III,                         
                                     Rome Dogana Italiana (of the town import where takes                       
                                     place)                                                                     
Japan.............................  Ministry of International Trade and Industry in:         IC/DV              
                                     Fukuoka, Hiroshima, Kanmon (Kitakyushu-shi), Kobe,                         
                                     Nagoya, Osaka, Sapporo, Sendai, Shikoku (Takamatsu-                        
                                     shi), Shimizu, Tokyo, and Yokohama Japanese Customs                        
                                     Offices                                                                    
Korea, Republic of................  Trade Administration Division Trade Bureau Ministry of   IC                 
                                     Trade and Industry Jungang-Dong, Kyonggi-Do, Building                      
                                     3 Kwachon                                                                  
                                    Republic of Korea Customs House                          DV                 
Liechtenstein.....................  Swiss Federal Office for Foreign Economic Affairs,       IC/DV              
                                     Import and Export Division Zieglerstrasse 30, CH-3003                      
                                     Bern                                                                       
Luxembourg........................  Office des Licences Avenue de la Liberte, 10             IC/DV              
Netherlands.......................  Centrale Dienst voor In-en Uitvoer Engelse Kamp 2,       IC/DV              
                                     Groningen                                                                  
New Zealand.......................  Comptroller for Customs P.O. Box 2218, Wellington        IC/DV              
Norway............................  Handelsdepartmentet Direktoratet for Eksport-og-         IC/DV              
                                     Importregulering Fr. Nansens plass 5, Oslo                                 
Pakistan..........................  Chief Controller of Imports and Exports 5, Civic Center  IC                 
                                     Islamabad                                                                  
                                    Joint Science Advisor, Ministry of Science and           DV                 
                                     Technology, Secretariat Block `S', Islamabad                               
Poland............................  Ministry of Foreign Economic Relations Department of     IC/DV              
                                     Commodities and Services Plac Trzech Krzyzy 5, Room                        
                                     358 00-507 Warsaw                                                          
Portugal..........................  Reparticao do Comercio Externo Direccao-Geral do         IC/DV              
                                     Comercio Secretaria de Estado do Comercio Ministerio                       
                                     da Economia, Lisbon                                                        

[[Page 286]]

                                                                                                                
Romania...........................  National Agency for Control of Strategic Exports and     IC/DV              
                                     Prohibition of Chemical Weapons, 13, Calea 13                              
                                     Septembrie Casa (or P.O. Box 5-10) Republicii, Gate A                      
                                     1, Bucharest, Sector 5, Phone: 401-311-2083, Fax: 401-                     
                                     311-1265                                                                   
Singapore.........................  Controller of Imports and Exports, Trade Development     IC/DV              
                                     Board World Trade Centre, 1 Maritime Square, Telok                         
                                     Blangah Road,                                                              
Slovakia..........................  Ministry of Foreign Affairs Licensing-Registration       IC                 
                                     Department Spitalska 8, 813 15 Bratislava                                  
Spain.............................  Secretary of State for Commerce Paseo la Cistellana      IC/DV              
                                     162, Madrid 28046                                                          
Sweden............................  The Association of Swedish Chambers of Commerce &        IC/DV              
                                     Industry P.O. Box 16050, S-103 22 Stockholm Office:                        
                                     Vastra Tradgardsgatan 9                                                    
Switzerland.......................  Swiss Federal Office for Foreign Economic Affairs,       IC/DV              
                                     Import and Export Division, Zieglerstrasse 30 CH-3003                      
                                     Bern                                                                       
Taiwan............................  Board of Foreign Trade Ministry of Economic Affairs 1    IC/DV              
                                     Hu-Kou Street, Taipei                                                      
                                    Science-based Industrial Park Administration No. 2 Hsin                     
                                     Ann Road, Hsinchu                                                          
                                    Export Processing Zone Administration 600 Chiachang                         
                                     Road Nantz, Kaohsiung                                                      
Turkey............................  Ministry of Commerce, Department of Foreign Commerce,    IC                 
                                     Ankara                                                                     
                                    Head Customs Office at the point of entry                DV                 
United Kingdom....................  Department of Trade and Industry Export Licensing        IC                 
                                     Branch Millbank Tower Millbank London, SW1P 4QU                            
                                    H.M. Customs and Excise, King's Beam House, Mark Lane    DV                 
                                     London, E.C. 3                                                             
----------------------------------------------------------------------------------------------------------------

   Supplement No. 5 to Part 748--U.S. Import Certificate and Delivery 
                         Verification Procedure

    The United States participates in an Import Certificate/Delivery 
Verification procedure. Under this procedure, U.S. importers are 
sometimes required to provide their foreign suppliers with an U.S. 
International Import Certificate that is validated by the U.S. 
Government. This certificate tells the government of the exporter's 
country that the items covered by the certificate will be imported into 
the U.S. Economy and will not be reexported except as authorized by U.S. 
export control regulations. In addition, in some cases, the exporter's 
government may require a delivery verification. Under this procedure, 
the U.S. Customs Service validates a certificate confirming that the 
items have entered the U.S. economy. The U.S. importer must return this 
certificate to the foreign exporter.
    This supplement establishes the procedures and requirements of BXA 
with respect to both of these programs. Paragraph (a) of this supplement 
contains the requirements and procedures of the U.S. International 
Import Certificate procedure. Paragraph (b) of this supplement contains 
the requirements and procedures of the Delivery Verification procedure.
    (a) U.S. International Import Certificates. If you are a U.S. 
importer, a foreign supplier may request you to obtain a U.S. import 
certificate. The reason for this request is that the exporter's 
government requires a U.S. import certificate as a condition to issuing 
an export license. To obtain such a certificate you will have to fill in 
and execute the U.S. International Import Certificate form (Form BXA-
645P/ATF-4522/DSP-53) and submit it to the U.S. government agency that 
has jurisdiction over the items you are importing. In doing so, you will 
be making a representation to the United States Government that you will 
import the items described in the certificate into the United States or 
if not so imported, you will not divert, transship or reexport them to 
another destination with the explicit approval of the U.S. government 
agency that has jurisdiction over those items. (Representations that 
items will be entered into the U.S. do not preclude the temporary 
unloading of items in a foreign trade zone for subsequent entry into the 
economy of the U.S.) If the items described in the certificate are 
subject to U.S. Department of Commerce jurisdiction, the Department will 
validate the certificate and return it to you. You may then send the 
certificate to your foreign supplier. In this way the government of the 
exporting country is assured that the items will become subject to the 
export control laws of the United States.
    (1) Items for which the U.S. Department of Commerce issues U.S. 
International Import Certificates and forms to use. The Department of 
Commerce issues U.S. International Import Certificates for the following 
types of items.
    (i) Items controlled for National Security reasons. Items under the 
export licensing jurisdiction of BXA that are identified as controlled 
for national security reasons on the Commerce Control List (Supplement 
No. 1 to part 774 of the EAR). You will need to submit in triplicate a 
completed Form BXA-645P/ATF-4522/DSP-53;
    (ii) Nuclear equipment and materials. Items subject to the export 
licensing jurisdiction of the Nuclear Regulatory Commission for nuclear 
equipment and materials.

[[Page 287]]

(see 10 CFR part 110). You will need to submit in quadruplicate a 
completed Form BXA-645P/ATF-4522/DSP-53; and
    (iii) Munitions Items. Items listed on the U.S. Munitions List (see 
22 CFR part 121) that do not appear on the more limited U.S. Munitions 
Import List (27 CFR 47.21). You will need to submit in triplicate a 
completed Form BXA-645P. For triangular transactions (See paragraph 
(a)(5) of this supplement) involving items on the U.S. Munitions List, 
you must contact the Department of State, Office of Defense Trade 
Controls and use Form BXA-645P/ATF-4522/DSP-53. You should contact the 
Treasury Department, Bureau of Alcohol, Tobacco and Firearms for items 
appearing on the U.S. Munitions Import List. You will need to use Form 
ATF-4522.
    (2) Where to submit forms. U.S. International Import Certificates 
and requests to amend certificates may be presented for validation 
either in person or by mail at the following locations.
    (i) By mail to the Bureau of Export Administration, P.O. Box 273, 
Washington D.C. 20044, Attn: Import Certificate Request; or
    (ii) In person or by mail at one of the following Department of 
Commerce U.S. and Foreign Commercial Service District Offices:

Boston, MA
Buffalo, NY
Chicago, IL
Cincinnati, OH
Cleveland, OH
Dallas, TX
Detroit, MI
Houston, TX
Kansas City, MO
Los Angeles, CA
Miami, FL
New Orleans, LO
New York, NY
Philadelphia, PA
Phoenix, AZ
Pittsburgh, PA
Portland, OR
St. Louis, MO
San Francisco, CA
Savannah, GA
Seattle, WA
Trenton, NJ

    (3) U.S. International Import Certificate validity periods. The U.S. 
International Import Certificate must be submitted to the foreign 
government within six months from the date of certification by the U.S. 
Department of Commerce. The expiration of this six-month period in no 
way affects the responsibility of the importer to fulfill the 
commitments made in obtaining the certificate. If the certificate is not 
presented to the government of the exporting country before the 
expiration of its validity period, the exporter must apply for a new 
certificate. The original unused U.S. International Import Certificate 
must be returned to BXA at the address specified in paragraph (a)(2)(i) 
of this supplement.
    (4) Statements on the certificate or amendments are representations 
to the U.S. Government which continue in effect.
    (i) All statements and representations made in a U.S. International 
Import Certificate or an amendment thereto, will be deemed to be 
continuing in nature until the transaction described in the certificate 
is completed and the items are delivered into the economy of the 
importing country.
    (ii) Any change of fact or intention in regard to the transaction 
described in the certificate shall be promptly disclosed to BXA by the 
U.S. importer by presentation of an amended certificate. The amended 
certificate must describe all of the changes and be accompanied by the 
original certificate bearing the certification of BXA. If the original 
certificate has been transferred to the foreign exporter, you must, 
where possible, attempt to obtain the original certificate prior to 
applying for an amendment. If the original certificate is unobtainable 
because the foreign exporter has submitted it to the appropriate foreign 
government, or for any other reason, then you must submit a written 
statement with your amendment giving the reasons for your failure to 
submit the original certificate.
    (5) Certificates for Triangular transaction (items will not enter 
the U.S. or applicant is not sure that they will enter the United 
States).
    (i) In accordance with international practice, BXA will, upon 
request, stamp the certificate with a triangular symbol as notification 
to the government of the exporting country that the U.S. importer is 
uncertain whether the items will be imported into the U. S. or knows 
that the items will not be imported into the U.S., but that, in any 
case, the items will not be delivered to any other destination except in 
accordance with the EAR.
    (ii) The triangular symbol on a certificate U.S. International 
Import Certificate is not, in and of itself, an approval by BXA to 
transfer or sell items to a foreign consignee. Note that a triangular 
Certificate will not be issued covering foreign excess property sold 
abroad by the U.S. Department of Defense.
    (6) Approval to export items to a foreign consignee prior to 
delivery under a U.S. International Import Certificate. The written 
approval of BXA is required before items covered by a U.S. International 
Import Certificate (whether or not bearing a triangular symbol) may be 
shipped to a destination other than the U.S. or Canada or sold to a 
foreign purchaser, and before title to or possession of such items may 
be transferred to a foreign transferee. This requirement does not apply 
after the items have been delivered in accordance with the undertaking 
set forth in the Certificate or if at the time of such shipment, sale, 
passage of possession or passage of title, a License Exception or a NLR 
provision of the EAR would authorize the transaction.
    (i) If prior approval is required, a letter requesting authorization 
to release the shipment shall be submitted to BXA at the address listed 
in paragraph (a)(2)(i) of this supplement.

[[Page 288]]

    (ii) The letter must contain the certificate number; date issued; 
location of the issuing office; names, addresses, and identities of all 
parties to the complete transaction; and the quantity, dollar value, and 
description of the items. The letter must be accompanied by the U.S. 
International Import Certificate, and all other documentation required 
by the EAR for the item and country of ultimate destination, as 
identified in part 748 of the EAR. If requirements stated in part 748 of 
the EAR do not apply to your transaction, you must identify the intended 
end-use of the items in your letter.
    (iii) Where the letter request is approved and is supported by a 
foreign import certificate, no further approval from BXA is required for 
the purchaser or transferee to resell or again transfer the items. 
However, where BXA approves a request that was not supported by a 
foreign import certificate, the person to whom approval is granted is 
required to inform the purchaser or transferee, in writing, that the 
items are to be shipped to the approved destination only and that no 
other disposition of the items is permitted without the approval of BXA.
    (iv) If the transaction is approved, a validated letter of approval 
will be sent to the U.S. purchaser for retention in his records. Where a 
DV or other official government confirmation of delivery is required, 
the letter will so indicate.
    (v) If the items covered by a certificate have been imported into a 
destination other than the U.S. and the foreign exporter of the items 
requests a Delivery Verification, the person who obtained the 
certificate must obtain a DV from the person to whom the items were 
delivered in the actual importing country. (If a DV is unobtainable, 
other official government confirmation of delivery must be obtained.) 
The DV or other official government confirmation of delivery must be 
submitted to BXA together with an explanatory letter giving the U.S. 
International Import Certificate number, date issued, and location of 
issuing office. BXA will then issue Form ITA-6008, Delivery Compliance 
Notice, in two copies, the original of which must be forwarded to the 
country of origin in order to serve as evidence to the exporting country 
that the requirements of the U.S. Government have been satisfied with 
respect to delivery of the items.
    (vi) Delivery, sale, or transfer of items to another U.S. purchaser.
    (A) Items covered by a U.S. International Import Certificate may not 
be sold, and title to or possession of such items may not be 
transferred, to another U.S. purchaser or transferee before the items 
are delivered to the U.S. (or to an approved foreign destination, as 
provided by paragraph (a)(5) of this supplement), except in accordance 
with the provisions described in paragraph (a)(6) of this supplement. 
The provisions of this paragraph do not apply after the items have been 
delivered in accordance with the undertaking set forth in the 
certificate.
    (B) Resale or transfer to another U.S. purchaser or transferee 
requires the prior approval of BXA only in cases where the buyer or 
transferee is listed in Supplement No. 1 to part 766 of the EAR. 
However, you, as the person who obtained the certificate are required to 
notify BXA of any change in facts or intentions relating to the 
transaction, and in all cases you will be held responsible for the 
delivery of the items in accordance with the EAR. You are required in 
all cases to secure, prior to sale or transfer, and to retain in your 
files in accordance with the recordkeeping provisions contained in part 
762 of the EAR, written acceptance by the purchaser or transferee of:
    (1) All obligations undertaken by, and imposed under the EAR, upon 
the holder of the certificate; and
    (2) An undertaking that all subsequent sales or transfers will be 
made subject to the same conditions.
    (iii) The responsibility of the certificate holder for obtaining a 
DV also applies to those cases where the items are resold to a U.S. 
purchaser (See paragraph (b)(1) of this supplement.
    (vii) Reexport or transshipment of items after delivery to U.S. 
Items imported into the U.S. under the provisions of a U.S. 
International Import Certificate may not be reexported to any 
destination under the intransit provisions of License Exception TMP (see 
Sec. 740.8(b)(1) of the EAR). However, all other provisions of the EAR 
applicable to items of domestic origin shall apply to the reexport of 
items of foreign origin shipped to the U.S. under a U.S. International 
Import Certificate.
    (viii) Lost or destroyed U.S. International Import Certificates. If 
a U.S. International Import Certificate is lost or destroyed, a 
duplicate copy may be obtained by the person in the U.S. who executed 
the original U.S. International Import Certificate by submitting to any 
of the offices listed in paragraph (a)(2)(i) of this supplement new Form 
BXA-645P/ATF-4522/DSP-53 in the same way as an original request, except 
that the forms shall be accompanied by a letter detailing the 
circumstances under which the original certificate was lost or destroyed 
and certifying:
    (A) That the original U.S. International Import Certificate No. 
______, dated ______, issued to (name and address of U.S. importer) for 
import from (foreign exporter's name and address) has been lost or 
destroyed; and
    (B) That if the original U.S. International Import Certificate is 
found, the applicant agrees to return the original or duplicate of the 
certificate to the Bureau of Export Administration.

[[Page 289]]

    (ix) Unused U.S. International Import Certificates. If the 
transaction will not be completed and the U.S. International Import 
Certificate will not be used, return the certificate for cancellation to 
BXA at the address listed in paragraph (a)(2)(i) of this supplement.
    (b) Delivery Verification Certificate. U.S. importers may be 
requested by their foreign suppliers to furnish them with a certified 
Form BXA-647P, Delivery Verification Certificate, covering items 
imported into the U.S. These requests are made by foreign governments to 
assure that strategic items shipped to the U.S. are not diverted from 
their intended destination. In these instances, the issuance of an 
export license by the foreign country is conditioned upon the subsequent 
receipt of a Delivery Verification Certificate from the U.S. importer. 
Accordingly, your compliance with your foreign exporter's request for a 
Delivery Verification is necessary to ensure your foreign exporter 
fulfills its government obligations and is able to participate in future 
transactions with you. Failure to comply may subject your exporter to 
penalties that may prevent future trade.
    (1) The responsibility of a person or firm executing a U.S. 
International Import Certificate for providing the foreign exporter with 
confirmation of delivery of the items includes instances where the items 
are resold or transferred to another U.S. person or firm prior to actual 
delivery to the U.S. or to an approved foreign destination. The person 
who executed the U.S. International Import Certificate shall secure in 
writing from the U.S. purchaser or transferee, and retain in your files 
in accordance with the recordkeeping provisions stated in part 762 of 
the EAR:
    (i) Acceptance of the obligation to provide the purchaser or 
transferee with either the Delivery Verification (or other official 
government confirmation of delivery if a Delivery Verification is 
unobtainable) or assurance that this document was submitted to BXA; and
    (ii) An undertaking that each succeeding U.S. transferee or 
purchaser will assume the same obligation or assurance. In each case the 
seller or transferor must transmit to the U.S. purchaser or transferee 
the U.S. International Import Certificate number covering the export 
from the foreign country and request that they pass it on to any other 
U.S. purchasers or transferees.
    (2) Completion and certification of Delivery Verification 
Certificates. If you are requested by your foreign exporter to provide a 
Delivery Verification, you must obtain Form BXA-647P from a U.S. customs 
office or one of the offices listed in paragraph (a)(2) of this 
supplement and complete all blocks (except those below the line titled 
``To be completed by U.S. Customs Service'') on the form. The language 
used in the block titled ``Description of Goods'' must describe the 
items in the same terms as those shown on the applicable U.S. 
International Import Certificate. Upon completion Form BXA-647P must be 
presented, in duplicate, to a U.S. customs office. The U.S. customs 
office will certify Form BXA-647P only where the import is made under a 
warehouse or consumption entry.
    (3) Disposition of certified Delivery Verification Certificates. The 
importer must send the original certified Delivery Verification 
Certificate to the foreign exporter or otherwise dispose of it in 
accordance with the instructions of the exporting country. The duplicate 
copy will be retained by the U.S. customs office.
    (4)(i) Issuance of a U.S. Delivery Compliance Notice in lieu of a 
Delivery Verification Certificate. If you are requested to provide a 
Delivery Verification Certificate but do not wish to disclose the name 
of your customer to the foreign exporter (e.g., in the event that the 
items are resold or transferred to another person or firm before the 
items enter the U.S.), you may submit an originally completed Form BXA-
647P together with an explanatory letter requesting a Delivery 
Compliance Notice, to BXA at the address listed in (a)(2)(i) of this 
supplement.
    (ii) BXA will provide you with a notice signifying that the items 
were imported into the U.S. and that a satisfactory DV has been 
submitted to BXA. You must then forward the original notice to your 
foreign exporter for submission to the foreign government. A copy of the 
notice should be retained in your files in accordance with the 
recordkeeping provisions stated in part 762 of the EAR.
    (5)(i) Lost or destroyed Delivery Verification Certificate. When a 
Delivery Verification Certificate is lost or destroyed, the U.S. 
importer must submit a letter to BXA at the address listed in paragraph 
(a)(2)(i) of this supplement certifying that:
    (A) The original Delivery Verification Certificate has been lost or 
destroyed;
    (B) The circumstances under which it was lost or destroyed;
    (C) The type of customs entry (warehouse or consumption), entry 
number, and date of entry; and
    (D) The number and date of the related U.S. International Import 
Certificate.
    (ii) BXA will, in applicable cases, notify the exporting government 
that a Delivery Verification Certificate been issued.
    (c) Penalties and sanctions for violations. The enforcement 
provisions of part 764 and Supplement No. 2 to part 736 of the EAR apply 
to transactions involving imports into the U.S. covered by this 
supplement and to both foreign and U.S. parties involved in a violation 
of this supplement. Any provisions of part 764 and Supplement No. 2 to 
part 736 of the EAR which, by their terms, relate to

[[Page 290]]

``exports'' or ``exports from the U.S.'' are also deemed to apply and 
extend to imports into the U.S., applications for U.S. International 
Import Certificates (Forms BXA-645P presented to U.S. Department of 
Commerce for certification), U.S. International Import Certificates, and 
Delivery Verification Certificates, described in this supplement. 
(Applications the documents described in this supplement, are included 
within the definition of export control documents provided in part 772 
of the EAR.) Refer to Sec. 764.3 of the EAR for more information.

[61 FR 12812, Mar. 25, 1996, as amended at 61 FR 64285, Dec. 4, 1996]



PART 750--APPLICATION PROCESSING, ISSUANCE OR AND DENIAL--Table of Contents




Sec.
750.1  Scope.
750.2  Processing of Classification Requests and Advisory Opinions.
750.3  Review of license applications by BXA and other government 
          agencies and departments.
750.4  Procedures for processing license applications.
750.5  Status on pending applications and other requests.
750.6  Denial of license applications.
750.7  Issuance of licenses.
750.8  Revocation or suspension of licenses.
750.9  Duplicate licenses.
750.10  Transfer of licenses for exports.
750.11  Shipping tolerances.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Executive Order 13026 
(November 15, 1996, 61 FR 58767); Notice of August 15, 1995 (60 FR 
42767, August 17, 1995); E.O. 12981, 60 FR 62981; and Notice of August 
14, 1996 (61 FR 42527).

    Source: 61 FR 12829, Mar. 25, 1996, unless otherwise noted.



Sec. 750.1  Scope.

    In this part, references to the EAR are references to 15 CFR chapter 
VII, subchapter C. This part describes the Bureau of Export 
Administration's (BXA) process for reviewing your application for a 
license, including processing times, denials, revocations, issuance, 
duplicates, transfers, and shipping tolerances on approved licenses. The 
processing times for Classification and Advisory Opinion requests are 
also provided along with directions on obtaining status on your pending 
application.



Sec. 750.2  Processing of Classification Requests and Advisory Opinions.

    (a) Classification requests. All classification requests submitted 
in accordance with procedures described in Sec. 748.3 (a) and (b) of the 
EAR will be answered within 14 calendar days after receipt. All 
responses will inform the person of the proper classification (e.g., 
whether or not the item is subject to the Export Administration 
Regulations (EAR) and, if applicable, the appropriate Export Control 
Classification Number [ECCN]).
    (b) Advisory Opinion requests. All advisory opinions submitted in 
accordance with procedures described in Sec. 748.3(a) and (c) of the EAR 
will be answered within 30 calendar days after receipt.



Sec. 750.3  Review of license applications by BXA and other government agencies and departments.

    (a) Review by BXA. In reviewing specific license applications, BXA 
will conduct a complete analysis of the license application along with 
all documentation submitted in support of the application. In addition 
to reviewing the item and end-use, BXA will consider the reliability of 
each party to the transaction and review any available intelligence 
information. To the maximum extent possible, BXA will make licensing 
decisions without referral of license applications to other agencies, 
however, BXA may consult with other U.S. departments and agencies 
regarding any license application.
    (b) Review by other departments or agencies. (1) The Departments of 
Defense, Energy, State, and the Arms Control and Disarmament Agency 
(ACDA) have the authority to review any license application submitted 
under the EAR. In addition, BXA may, where appropriate, refer license 
applications to other U.S. government departments or agencies. These 
agencies and departments will be referred to as ``agencies'' for the 
purposes of this part. Though these agencies have the authority to 
review any license application, they may determine that they do not need 
to review certain types of license applications. In these instances, the 
agency will provide BXA

[[Page 291]]

with a Delegation of Authority to process those license applications 
without review by that particular agency.
    (2) The Departments of Defense, Energy, State, and ACDA are 
generally concerned with license applications involving items controlled 
for national security, missile technology, nuclear nonproliferation, and 
chemical and biological weapons proliferation reasons or destined for 
countries and/or end uses of concern. In particular, these agencies are 
concerned with reviewing license applications as follows:
    (i) The Department of Defense is concerned primarily with items 
controlled for national security and regional stability reasons;
    (ii) The Department of Energy is concerned primarily with items 
controlled for nuclear nonproliferation reasons;
    (iii) The Department of State is concerned primarily with items 
controlled for regional stability, anti-terrorism, crime control 
reasons, and sanctions; and
    (iv) ACDA is concerned primarily with items controlled for national 
security, nuclear nonproliferation, regional stability, and anti-
terrorism reasons.
    (v) The Department of Justice is concerned with controls relating to 
encryption items.

[61 FR 12829, Mar. 25, 1996, as amended at 61 FR 68585, Dec. 30, 1996]



Sec. 750.4  Procedures for processing license applications.

    (a) Overview. (1) All license applications will be resolved or 
referred to the President no later than 90 calendar days from the date 
of BXA's registration of the license application. Processing times for 
the purposes of this section are defined in calendar days. The 
procedures and time limits described in this part apply to all license 
applications registered on or after February 4, 1996. The procedures and 
time limits in effect prior to December 6, 1995 will apply to license 
applications registered prior to February 4, 1996.
    (2) Properly completed license applications will be registered 
promptly upon receipt by BXA. Registration is defined as the point at 
which the application is entered into BXA's electronic license 
processing system. If your application contains deficiencies that 
prevent BXA from registering your application, BXA will attempt to 
contact you to correct the deficiencies, however, if BXA is unable to 
contact you, the license application will be returned without being 
registered. The specific deficiencies requiring return will be 
enumerated in a notice accompanying the returned license application. If 
a license application is registered, but BXA is unable to correct 
deficiencies crucial to processing the license application, it will be 
returned without action. The notice will identify the deficiencies and 
the action necessary to correct the deficiencies. If you decide to 
resubmit the license application, it will be treated as a new license 
application when calculating license processing time frames.
    (b) Actions not included in processing time calculations. The 
following actions will not be counted in the time period calculations 
described in paragraph (a)(1) of this section for the processing of 
license applications:
    (1) Agreement by the applicant to the delay. BXA may request 
applicants provide additional information in support of their license 
application, respond to questions arising during processing, or accept 
proposed conditions or riders on their license application. If BXA has 
provided the applicant with an intent to deny letter described in 
Sec. 750.6 of this part, processing times may be suspended in order to 
negotiate modifications to a license application and obtain agreement to 
such modifications from the foreign parties to the license application.
    (2) Pre-license checks. If a pre-license check, to establish the 
identity and reliability of the recipient of the controlled items, is 
conducted through government channels, provided that:
    (i) The need for such a pre-license check is established by the 
Secretary, or by another agency, if the request for a pre-license check 
is made by such agency and the request is made in accordance with the 
following time frames;
    (A) The pre-license check is requested within 5 days of the 
determination that it is necessary; and

[[Page 292]]

    (B) The analysis resulting from the pre-license check is completed 
within 5 days.
    (3) Government-to-Government assurances. Requests for government-to-
government assurances of suitable end-use of items approved for export 
or reexport when failure to obtain such assurances would result in 
rejection of the license application, provided that:
    (i) The request for such assurances is sent to the Secretary of 
State within five days of the determination that the assurances are 
required;
    (ii) The Secretary of State initiates the request of the relevant 
government within 10 days of receipt of the request for such assurances; 
and
    (iii) The license is issued within 5 days of the Secretary's receipt 
of the requested assurances.
    (4) Consultations. Consultation with other governments, if such 
consultation is provided for by a relevant bilateral arrangement or 
multilateral regime as a precondition for approving a license.
    (5) Multilateral reviews. Multilateral review of a license 
application if such review is required by the relevant multilateral 
regime.
    (6) Congressional notification. Under Section 6(j) of the Export 
Administration Act, as amended (EAA), the Secretaries of Commerce and 
State are required to notify appropriate Committees of the Congress 30 
days prior to issuing a license to any country designated by the 
Secretary of State as being terrorist supporting for any items that 
could make a significant contribution to the military potential of such 
countries, or could enhance the ability of such countries to support 
acts of international terrorism. Accordingly, the issuance of any 
license subject to this requirement will be delayed for 30 days.
    (i) Designated countries. The following countries have been 
designated by the Secretary of State as terrorist-supporting countries: 
Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria.
    (ii) Items subject to notification requirement. License applications 
involving the export or reexport of the following items to the military, 
police, intelligence or other sensitive end-users are subject to this 
notification requirement:
    (A) All items controlled for national security reasons, except 
digital computers with a Composite Theoretical Performance (CTP) less 
than 500 Mtops;
    (B) All items controlled for chemical and biological weapons 
proliferation reasons;
    (C) All items controlled for missile technology reasons;
    (D) All items controlled for nuclear nonproliferation reasons; and
    (E) All items controlled by the CCL where the entry heading 
identifies the items controlled as those contained in the International 
Munitions List.
    (iii) Additional notifications. The Secretaries of Commerce and 
State must also notify the appropriate Congressional committees 30 days 
before a license is issued for the export or reexport of any item 
controlled on the CCL to a designated country if the Secretary of State 
determines that the export or reexport ``could make a significant 
contribution to the military potential of such country, including its 
military logistics capability, or could enhance the ability of such 
country to support acts of international terrorism.''
    (c) Initial processing. Within 9 days of license application 
registration, BXA will, as appropriate:
    (1) Contact the applicant if additional information is required, if 
the license application is improperly completed, or required support 
documents are missing, to request additional or corrected information;
    (2) Assure the stated classification on the license application is 
correct;
    (3) Return the license application if a license is not required with 
a statement notifying the applicant that a license is not required;
    (4) Approve the license application or notify the applicant of the 
intent to deny the license application; or
    (5) Refer the license application electronically along with all 
necessary recommendations and analysis concurrently to all agencies 
unless the application is subject to a Delegation of Authority. Any 
relevant information not contained in the electronic file will be 
simultaneously forwarded in paper copy.

[[Page 293]]

    (d) Review by other agencies and/or interagency groups. (1) Within 
10 days of receipt of a referral the reviewing agency must advise BXA of 
any information not contained in the referral as described in paragraph 
(c)(5) of this section. BXA will promptly request such information from 
the applicant. The time that elapses between the date the information is 
requested by the reviewing agency and the date the information is 
received by the reviewing agency will not be counted in processing time 
frames.
    (2) Within 30 days of receipt of the initial referral, the reviewing 
agency will provide BXA with a recommendation either to approve (with or 
without conditions or riders) or deny the license application. As 
appropriate, such a recommendation may be made with the benefit of 
consultation and/or discussions in interagency groups established to 
provide expertise and coordinate interagency consultation. These 
interagency groups consist of:
    (i) The Missile Technology Export Control Group (MTEC). The MTEC, 
chaired by the Department of State, reviews license applications 
involving items controlled for missile technology reasons. The MTEC also 
reviews license applications involving items not controlled for missile 
technology (MT) reasons, but destined for a country and/or end-use/end-
user of MT concern.
    (ii) The SubGroup on Nuclear Export Coordination (SNEC). The SNEC, 
chaired by the Department of State, reviews license applications 
involving items controlled for nuclear nonproliferation reasons. The 
SNEC also reviews license applications involving items not controlled 
for nuclear nonproliferation (NP) reasons, but destined for a country 
and/or end-use/end-user of NP concern.
    (iii) The Shield. The Shield, chaired by the Department of State, 
reviews license applications involving items controlled for chemical and 
biological weapons reasons. The Shield also reviews license applications 
involving items not controlled for chemical and biological weapons (CBW) 
reasons, but destined for a country and/or end-use/end-user of CBW 
concern.
    (e) Recommendations by reviewing agencies. Reviewing agencies 
recommending denial of a license application must provide a statement of 
reasons, consistent with the provisions of the EAA or EAR, and cite both 
the statutory and the regulatory basis for the recommendation to deny. A 
reviewing agency that fails to provide a recommendation within 30 days 
with a statement of reasons supported by the statutory and regulatory 
basis shall be deemed to have no objection to the final decision of BXA.
    (f) Interagency dispute resolution and escalation procedures--(1) 
Escalation to the Operating Committee (OC). (i) In any instance where 
the reviewing agencies are not in agreement on final disposition of a 
license application, it will be escalated to the OC for resolution. The 
Chair of the OC will consider the recommendations of the reviewing 
agencies and any information provided by the applicant in person during 
an open OC session. Each agency will be informed of the Chair's decision 
on the license application within 14 days after the deadline for 
receiving agency recommendations.
    (ii) If any agency disagrees with the OC Chair's decision, the 
agency may escalate the decision by appealing to the Chair of the 
Advisory Committee on Export Policy for resolution. If such a request 
for escalation is not made within 5 days of the decision of the OC 
Chair, the Chair's decision will be final.
    (2) Escalation to the Advisory Committee on Export Policy (ACEP). 
Requests for escalation to the ACEP must be in writing from an official 
appointed by the President with the advice and consent of the Senate, or 
a person properly acting in such capacity, and cite both the statutory 
and the regulatory basis for the appeal. The ACEP will review all 
relevant information and recommendations. The Chair of the ACEP will 
inform the reviewing agencies of the majority vote decision of the ACEP 
within 11 days from the date of receipt of the escalation request. 
Within 5 days of the decision, any dissenting agency may appeal in 
writing the ACEP's decision to the Secretary of Commerce in the 
Secretary's capacity as the Chair of the Export Administration Review 
Board. The written request must be

[[Page 294]]

made by the head of the agency requesting escalation and cite both the 
statutory and the regulatory basis for the appeal. Within the same 
period of time, the Secretary may initiate a meeting on his or her own 
initiative to consider a license application. In the absence of a timely 
appeal, the decision of the ACEP will be final.
    (3) Escalation to the Export Administration Review Board (EARB). The 
EARB will review all relevant information and recommendations, and such 
other export control matters as may be appropriate. The Secretary of 
Commerce will inform the reviewing agencies of the majority vote 
decision of the EARB within 11 days from the date of receipt of the 
appeal. Within 5 days of the decision, any agency dissenting from the 
decision of the EARB may appeal the decision to the President. The 
appeal must be in writing from the head of the dissenting agency. In the 
absence of a timely appeal, the decision of the EARB will be final.



Sec. 750.5  Status of pending applications and other requests.

    (a) Information available. You may contact BXA for status of your 
pending Classification Request, Advisory Opinion, or license 
application. For Advisory Opinion requests, telephone (202) 482-4905 or 
send a fax to (202) 219-9179. For license applications and 
Classification requests, telephone BXA's System for Tracking Export 
License Applications (``STELA'') at (202) 482-2752. STELA is an 
automated voice response system, that upon request via any standard 
touch-tone telephone, will provide you with up to the minute status on 
any license application pending at BXA. Requests for status may be made 
only by the applicant or the applicant's agent.
    (b) STELA's hours. STELA is operational Monday through Friday from 
7:15am to 11:15pm and on Saturday from 8:00am to 4:00pm, Eastern Time. 
If you have any difficulty accessing STELA, contact during normal 
business hours, one of BXA's offices listed in Sec. 748.2(a) of the EAR.
    (c) Procedures to access information on STELA. Once you dial STELA 
you will be instructed to enter your Application Control Number using 
your push button telephone keys. After you enter the Application Control 
Number, STELA will provide you with the current status of your license 
application or Classification request.



Sec. 750.6  Denial of license applications.

    (a) Intent to deny notification. If BXA intends to deny your license 
application, BXA will notify you in writing within 5 days of the 
decision. The notification will include:
    (1) The intent to deny decision;
    (2) The statutory and regulatory basis for the denial;
    (3) To the extent consistent with the national security and foreign 
policy of the United States, the specific considerations that led to the 
decision to deny the license application;
    (4) What, if any, modifications or restrictions to the license 
application would allow BXA to reconsider the license application;
    (5) The name of the BXA representative in a position to discuss the 
issues with the applicant; and
    (6) The availability of appeal procedures.
    (b) Response to intent to deny notification. You will be allowed 20 
days from the date of the notification to respond to the decision before 
the license application is denied. If you respond to the notification, 
BXA will advise you if, as a result of your response, the decision to 
deny has been changed. Unless you are so advised by the 45th day after 
the date of the notification, the denial will become final, without 
further notice. You will then have 45 days from the date of final denial 
to exercise the right to appeal under part 756 of the EAR.



Sec. 750.7  Issuance of licenses.

    (a) Scope. A license authorizes only a specific transaction, or 
series of transactions, as described in the license application and any 
supporting documents. A license application may be approved in whole or 
in part or further limited by conditions or other restrictions appearing 
on the license itself or in the EAR. When a license application is 
approved by the BXA, a license is issued as described in paragraph (b) 
of this section.

[[Page 295]]

    (b) Issuance of a license. After a license application is approved, 
a computer generated license is issued by the Department of Commerce 
bearing the license number and a validation date. Where appropriate, the 
license will also show an expiration date. Where necessary, attachments 
to a license will also be validated with the Department of Commerce seal 
and the date of validation. Exporters must use the complete license 
number when preparing a Shipper's Export Declaration (SED) and other 
export control documents, and in communicating with the Department of 
Commerce concerning the license.
    (c) Changes to the license. The following non-material changes do 
not require submission of a ``Replacement'' license or any other 
notification to BXA. (If you wish to make any change not identified in 
this paragraph, you will need to submit a ``Replacement'' license in 
accordance with the instructions contained in Supplement No. 1 to part 
748 of the EAR, Block 11):
    (1) Decrease in unit price or total value;
    (2) Increase in price or quantity if permitted under the shipping 
tolerances in Sec. 750.11 of this part;
    (3) Increase in price that can be justified on the basis of changes 
in point of delivery, port of export, or as a result of transportation 
cost, drayage, port charges, warehousing, currency fluctuations, etc.;
    (4) Establishment of unit or total price in conformance with a 
``price statement'' on a license that permits price to be based on the 
market price at a specified date plus an exporter's mark-up, or like 
basis;
    (5) Change in intermediate consignee if the new intermediate 
consignee is located in the country of ultimate destination as shown on 
the license, except a change in, or addition of, an intermediate 
consignee involving a consolidated shipment;
    (6) Change in continuity of shipment by unloading from carrier at a 
country listed in Country Group B (see Supplement No. 1 to part 740 of 
the EAR) port not in the country of ultimate destination, without the 
designation of an intermediate consignee on the shipping documents and 
license, provided:
    (i) The purpose is to transfer the shipment to another vessel, 
barge, or vehicle, solely for onforwarding to the country of destination 
shown on the shipping documents and the license;
    (ii) The shipment is moving on a through bill of lading;
    (iii) The carrier is not registered in, owned or controlled by, or 
under charter or lease to a country in Country Group D:1 or E:2 (see 
Supplement No. 1 to part 740 of the EAR), or a national of any of these 
countries;
    (iv) The carrier retains custody of the shipment until it is 
delivered to the ultimate consignee; and
    (v) The original bill of lading or air waybill first issued at the 
port of export is delivered with the shipment to the ultimate consignee;
    (7) Change in address of purchaser or ultimate consignee if the new 
address is located within the same country shown on the license; or
    (8) Change in ECCN, unit of quantity, unit price, or wording of the 
item description (where necessary only for the purpose of conforming to 
an official revision in the CCL). This does not cover an actual change 
in the item to be shipped, or an increase in the price or quantity.
    (d) Responsibility of the licensee. If a license is issued to you, 
you become the licensee. The licensee will be held accountable for use 
of the license, whether as a principal (exporting for your own account) 
or as an agent (including an agent acting for the account of a foreign 
principal who is not subject to the jurisdiction of the United States). 
You, as the licensee, assume responsibility for effecting the export or 
reexport, for proper use of the license, and for due performance of all 
of the license's terms and conditions. The obligations arising under the 
provisions of the EAA and the EAR are the same whether the license 
application is submitted and issued in writing or electronically.
    (e) Prohibited use of a license. No person convicted of a violation 
of any statute specified in section 11(h) of the EAA, at the discretion 
of the Secretary of Commerce, may apply for any license for a period up 
to 10 years from the date of the conviction. See Sec. 766.25 of the EAR.

[[Page 296]]

    (f) Quantity of commodities authorized. Unlike software and 
technology, commodities will be approved with a quantity or dollar value 
limit. The ``Unit'' paragraph within each CCL commodity entry will list 
a specific ``Unit'' for those commodities controlled by that entry. Any 
license resulting from a license application to export or reexport 
commodities will be licensed in terms of the specified ``Unit''. If a 
commodity is licensed in terms of ``$ value'', the unit of quantity 
commonly used in trade may also be shown on the license. Though this 
unit may be shown on the approved license, the quantity of commodities 
authorized is limited entirely by the total dollar value shown on the 
approved license.
    (g) License validity period. Licenses involving the export or 
reexport of items will generally have a 24-month validity period, unless 
a different validity period has been requested and specifically approved 
by BXA. Exceptions from the 24-month validity period include, license 
applications reviewed and approved as an ``emergency'' (See Sec. 748.5 
(g) of the EAR), license applications for items controlled for short 
supply reasons, and Special Comprehensive Licenses.
    Emergency licenses will expire no later than the last day of the 
calendar month following the month in which the emergency license is 
issued. Licenses for items controlled for short supply reasons will be 
limited to a 12-month validity period. The expiration date will be 
clearly stated on the face of the license. If the expiration date falls 
on a legal holiday (Federal or State), the validity period is 
automatically extended to midnight of the first day of business 
following the expiration date. (See part 752 of the EAR for validity 
periods for Special Comprehensive Licenses.)
    (1) Extended validity period. Validity periods in excess of 24 
months generally will not be granted. BXA will consider granting a 
validity period exceeding 24 months when extenuating circumstances 
warrant such an extension, however, no changes will be approved related 
to any other particular on the license (e.g., parties to the 
transaction, countries of ultimate destination, etc.). For example, an 
extended validity period will generally be granted where the transaction 
is related to a multi-year project, when production lead time will not 
permit an export or reexport during the original validity period of the 
license, when an unforeseen emergency prevents shipment within the 24-
month validity of the license, or for other similar circumstances. A 
continuing requirement to supply spare or replacement parts will not 
normally justify an extended validity period. Licenses issued in 
accordance with the emergency clearance provisions contained in 
Sec. 748.5(g) of the EAR will not be extended. See Sec. 752.9 of the EAR 
for information relating to the extension of a Special Comprehensive 
License.
    (2) Request for extension. (i) The applicant must submit a letter in 
writing to request an extension in the validity period of a previously 
approved license. The subject of the letter must be titled: ``Request 
for Validity Period Extension'' and contain the following information:
    (A) The name, address, and telephone number of the requestor;
    (B) A copy of the original license, with the license number, 
validation date, and current expiration date legible; and
    (C) Justification for the extension;
    (ii) It is the responsibility of the applicant to ensure that all 
applicable support documents remain valid and are in the possession of 
the applicant. If the request for extension is approved, BXA will 
provide the applicant with a written response.
    (h) Specific types of licenses--(1) Licenses for temporary exports 
or reexports. If you have been granted a license for the temporary 
export or reexport of items and you decide not to return the items to 
the United States, you must submit a license application requesting 
authorization to dispose of the items. Except when the items are to be 
used on a temporary basis at a new destination (and returned to the 
United States after such use), you must ensure that your license 
application is accompanied by all documents that would be required if 
you had requested a license to export or reexport the same item directly 
to the new destination.

[[Page 297]]

    (2) Intransit within the United States. If you have been issued a 
license authorizing an intransit shipment (that does not qualify for the 
intransit provisions of License Exception TMP) through the United 
States, your license will be valid only for the export of the intransit 
shipment wholly of foreign origin and for which a Transportation and 
Exportation customs entry or an Immediate Exportation customs entry is 
outstanding.
    (3) Intransit outside the United States. If you have been issued a 
license authorizing unlading or transit through a country listed in the 
General Prohibition Eight contained in Sec. 736.2(b)(8) of the EAR, and 
you did not know the identity of the intermediate consignee at the time 
of the original license application, you must notify BXA in writing once 
you have ascertained the identity of the intermediate consignee. Your 
notification must contain the original license number, and the complete 
name, address, and telephone number of the intermediate consignee. The 
written request must be submitted to BXA at the address listed in 
Sec. 748.2(c) of the EAR.
    (4) Replacement license. If you have been issued a ``replacement'' 
license (for changes to your original license that were not covered in 
paragraph (c) of this section), you must attach the ``replacement'' 
license to the original, and retain both.
    (i) Records. If you have been issued a license you must retain the 
license, and maintain complete records in accordance with part 762 of 
the EAR including any licenses (whether used or unused, valid or 
expired) and all supporting documents and shipping records.

[61 FR 12829, Mar. 25, 1996, as amended at 61 FR 64285, Dec. 4, 1996]



Sec. 750.8  Revocation or suspension of licenses.

    (a) Revocation. All licenses for exports or reexports are subject to 
revision, suspension, or revocation, in whole or in part, without notice 
whenever it is known that the EAR have been violated or that a violation 
is about to occur. BXA's Office of Exporter Services may revoke any 
license in which a person who has been convicted of one of the statutes 
specified in section 11(h) of the EAA, at the discretion of the 
Secretary of Commerce, has an interest in the license at the time of the 
conviction. It may be necessary for BXA to stop a shipment or an export 
or reexport transaction at any stage in the process (e.g., in order to 
prevent an unauthorized export or reexport). If a shipment is already en 
route, it may be further necessary for BXA to order the return or 
unloading of such shipment at any port of call in accordance with the 
provisions of the EAA.
    (b) Return of revoked or suspended licenses. If BXA revokes or 
suspends a license, the licensee shall return the license immediately 
upon notification that the license has been suspended or revoked. The 
license must be returned to BXA at the address listed in Sec. 748.2(c) 
of the EAR, Attn:'' Return of Revoked/Suspended License''. All 
applicable supporting documents and records of shipments must be 
retained by the licensee in accordance with the recordkeeping provisions 
of part 762 of the EAR. If the licensee fails to return a license 
immediately upon notification that it has been suspended or revoked, BXA 
may impose sanctions provided for in part 764 of the EAR.



Sec. 750.9  Duplicate licenses.

    (a) Lost, stolen or destroyed. If a license is lost, stolen or 
destroyed, you, as the licensee, may obtain a duplicate of the license 
by submitting a letter to the BXA at the address listed in Sec. 748.2(c) 
of the EAR, Attention: Duplicate License Request''. You must certify in 
your letter:
    (1) That the original license ([number] issued to [name and address 
of licensee]) has been lost, stolen or destroyed;
    (2) The circumstances under which it was lost, stolen or destroyed; 
and
    (3) If the original license is found, the licensee will return 
either the original or duplicate license to the BXA. Note that if 
shipment was made against the original license, those shipments must

[[Page 298]]

be counted against the duplicate license. If you are issued a duplicate 
license you must retain the duplicate license in accordance with the 
recordkeeping provisions of part 762 of the EAR.
    (b) Hong Kong Trade Department. BXA will automatically issue a 
duplicate license whenever the license lists a party in Hong Kong as the 
intermediate consignee, or when Hong Kong is identified as the country 
from which the reexport will take place. The duplicate license will be 
labeled ``Duplicate for Hong Kong Trade Department''. This duplicate 
must be forwarded to the reexporter or intermediate consignee for 
submission to the Hong Kong Trade Department. The original license must 
be retained on file by the licensee in accordance with the recordkeeping 
provisions contained in part 762 of the EAR.



Sec. 750.10  Transfers of licenses for exports.

    (a) Authorization. As the licensee, you may not transfer a license 
issued for the export of items from the United States to any other 
party, except with the prior written approval of BXA. BXA may authorize 
a transfer of a license for export to a transferee who is subject to the 
jurisdiction of the United States, is a principal party in interest, and 
will assume all powers and responsibilities under the license for the 
control of the shipment of the items out of the United States. BXA will 
approve only one transfer of the same license and only transfers of 
licenses to export items.
    (b) How to request the transfer of licenses--(1) Letter from 
licensee. You, as the licensee, must submit a letter in writing to 
request a transfer of a license or licenses. The letter must contain the 
following information:
    (i) The reasons for the requested transfer;
    (ii) Either a list of the outstanding license numbers or a statement 
that all outstanding licenses in the name of the licensee are to be 
transferred, and the total number of such outstanding licenses;
    (iii) A list of all license applications for export to be 
transferred that are pending with BXA, identifying the Application 
Control Number for each, or other information that will assist in 
identifying the pending license applications;
    (iv) Name and address of the person you intend to transfer the 
licenses and license applications to;
    (v) The facts necessitating transfer;
    (vi) A statement as to whether or not any consideration has been, or 
will be, paid for the transfer; and
    (vii) Identification by name of the legal document (certificate, 
agreement, etc.) or other authority by which the new firm name is 
legally established, the new corporation or firm created, or the assets 
transferred and showing the effective date of such document and the 
state where filed or recorded.
    (2) Information from transferee. The person to whom you wish to 
transfer your license(s) must provide you a signed letter, that must be 
submitted with your request, containing the following:
    (i) That the transferee is a principal party in interest in the 
transaction covered by the license, or is acting as agent for a 
principal party in interest;
    (ii) That the transferee is subject to the jurisdiction of the 
United States;
    (iii) That the transferee assumes all powers and responsibilities 
under the license for the control of the shipment of the items out of 
the United States;
    (iv) Whether any consideration has been, has not been, or will be 
paid for the transfer;
    (v) The name and address of the foreign principal in instances where 
the transferee will make the export as an agent on behalf of a foreign 
principal; and
    (vi) If the license is to be transferred to a subsidiary or firm, or 
if you transfer to the transferee all, or a substantial portion, of your 
assets or business, the transferee must certify that the legal authority 
changing the exporter imposes on the transferee the responsibility to 
accept and fulfill the obligations of the transferor under the 
transactions covered by the license; and
    (vii) The following certification:
    The undersigned hereby certifies that, if license number(s) 
____________ is (are) transferred in accordance with my (our) request, 
any and all documents evidencing the order covered by

[[Page 299]]

this (these) license(s) will be retained and made available upon request 
in compliance with the recordkeeping provisions contained in Part 762 of 
the Export Administration Regulations. The undersigned further certifies 
compliance with all requirements of the Export Administration 
Regulations regarding these licenses.
    (c) Notification of transfer and recordkeeping. Unless instructed 
otherwise by BXA, you must retain the license(s) pending notification by 
the BXA of the action taken. If the request is approved, you must 
forward the license(s) to the transferee and the validated letter 
received from BXA authorizing the transfer. If the transfer request is 
not approved, the license(s) must either be returned to BXA or used by 
you if you so choose and have retained the legal and operational 
capacity fully to meet the responsibilities imposed by the license(s). 
If your initial request is returned by BXA for additional information, 
after obtaining the necessary information you may resubmit your request.



Sec. 750.11  Shipping tolerances.

    (a) Applicability and use of shipping tolerances. Under some 
circumstances, you may use a license issued for the export of items from 
the United States to export more than the quantity or value shown on 
that license. This additional amount is called a shipping tolerance. 
This section tells you, as the licensee, when you may take advantage of 
a shipping tolerance and the amount of shipping tolerance you are 
permitted to use.
    (1) If you have already shipped the full amount approved on your 
license, you may not use this shipping tolerance provision. No further 
shipment may be made under the license.
    (2) The amount of shipping tolerance you are permitted is based on 
the ``Unit'' specified for the item you want to export in the applicable 
ECCN on the CCL (see Supplement No. 1 to part 774 of the EAR). You must 
calculate shipping tolerance based on the applicable ``Unit'' whether 
that be Number, Dollar Value, or Area, Weight, or other Measure. You may 
not use any other unit that may appear on your license.
    (b) Calculating shipping tolerances. There are three basic rules, 
one for items licensed by ``Dollar Value'', one for items licensed by 
``Number'', and another for items licensed by ``Area, Weight or other 
Measure''.
    (1) Items licensed by ``Dollar Value''. If the ``Unit'' paragraph in 
the ECCN applicable to your item reads ``Sec. value'' or ``in 
Sec. value'', there is no shipping tolerance. You may not ship more than 
the total dollar value stated on your license.
    (2) Items licensed by ``Number''. If the ``Unit'' paragraph in the 
ECCN applicable to your item reads ``Number'' or ``in Number'', there is 
no shipping tolerance with respect to the number of units. However, the 
value of all of your shipments under one license may exceed the total 
dollar value stated on that license by up to 25%.
    (3) Items licensed by ``Area, Weight or Measure''. If the ``Unit'' 
paragraph in the ECCN applicable to your item reads ``kilograms'' or 
``square meters'' or some other unit of area, weight or measure, your 
shipment may exceed the unshipped balance of the area, weight or other 
measure listed on your license by up to 10% and the total dollar value 
shown on your license by up to 25%, unless;
    (i) Your license stipulates a specific shipping tolerance; or
    (ii) Your item is controlled for short supply reasons and a smaller 
tolerance has been established. (See part 754 of the EAR).
    (c) Examples of shipping tolerances.--(1) A license authorizes the 
export of 100,000 kilograms of an item controlled by an ECCN where the 
``Unit'' is stated as ``kilograms'', the total cost of which is 
$1,000,000:
    (i) One shipment. If one shipment is made, the quantity that may be 
exported may not exceed 110,000 kg (10% tolerance on the unshipped Area, 
Weight, or Measure balance), and the total cost of that one shipment may 
not exceed $1,250,000:

$1,000,000..  (the total value shown on the license)                    
+250,000....  (25% of the total value shown on the license)             
-------------                                                           
$1,250,000..                                                            
                                                                        

    (ii) Two shipments. If the first shipment is for 40,000 kg (valued 
at

[[Page 300]]

$400,000), the second shipment may not exceed 66,000 kg (10% of the 
unshipped balance of 60,000 kg (6,000 kg) plus the unshipped balance), 
and the total cost of the second shipment shall not exceed $850,000:

$600,000....  (the value of the unshipped balance of 60,000 kg)         
+250,000....  (25% of the original total value shown on the license)    
-------------                                                           
$850,000....                                                            
                                                                        

    (iii) Three shipments. If the first shipment is for 40,000 kg 
(valued at $400,000) the second shipment is for 20,000 kg (valued at 
$200,000), the third shipment may not exceed 44,000 kg (10% of the 
unshipped balance of 40,000 kg (4,000 kg) plus the unshipped balance), 
and the total cost of the third shipment can not exceed $650,000:

$400,000....  (the value of the unshipped balance of 40,000 kg)         
+250,000....  (25% of the original total value on the license)          
-------------                                                           
$650,000....                                                            
                                                                        

    (2) A license authorizes the export of an item controlled by an ECCN 
where the ``Unit'' is stated as ``$ value'', the total cost of which is 
$5,000,000. There is no shipping tolerance on this license because the 
items are controlled by an ECCN where ``$ value'' is the stated 
``Unit''.
    (3) A license authorizes the export of 10 pieces of equipment 
controlled by an ECCN where the ``Unit'' is stated as ``Number'', with a 
total value of $10,000,000 and the export of parts and accessories 
covered by that same entry valued at $1,000,000:
    (i)(A) If one shipment is made, the quantity of equipment that may 
be exported may not exceed 10 pieces of equipment because there is no 
shipping tolerance on the ``number'' of units. That one shipment of 
equipment may not exceed $12,500,000:

$10,000,000.  (the total value shown on the license)                    
+2,500,000..  (25% of the total value shown on the license)             
-------------                                                           
$12,500,000.                                                            
                                                                        

    (B) If the one shipment includes parts and accessories, those parts 
and accessories may not exceed $1,000,000 because there is no shipping 
tolerance on any commodity licensed in terms of dollar value.
    (ii)(A) If the first shipment is for 4 pieces of equipment valued at 
$4,000,000, the second shipment may not exceed 6 pieces of equipment (no 
tolerance on ``number'') valued at no more than $8,500,000:

$6,000,000..  (the value of the unshipped 6 pieces).                    
+2,500,000..  (25% of the original total value shown on the license).   
-------------                                                           
$8,500,000..                                                            
                                                                        

    (B) If the first shipment includes $300,000 of parts and 
accessories, the second shipment may not exceed $700,000 of parts and 
accessories because there is no shipping tolerance on any commodity 
licensed in terms of dollar value.
    (iii)(A) If the first shipment is for 4 pieces of equipment valued 
at $4,000,000 and the second shipment is for 3 pieces of equipment 
valued at $3,000,000, the third shipment may not exceed 3 pieces of 
equipment (no tolerance on ``number'') valued at no more than 
$5,500,000:

$3,000,000..  (the value of the unshipped 3 pieces).                    
+2,500,000..  (25% of the original value shown on the license),         
-------------                                                           
$5,500,000..                                                            
                                                                        

    (B) If the first shipment includes $300,000 of parts and accessories 
and the second shipment includes another $300,000, the third shipment 
may not exceed $400,000 because there is no shipping tolerance on 
commodities licensed in terms of dollar value.



PART 752--SPECIAL COMPREHENSIVE LICENSE--Table of Contents




Sec.
752.1  Scope.
752.2  Eligible activities.
752.3  Eligible items.
752.4  Eligible countries.
752.5  Steps you must follow to apply for an SCL.
752.6  Reexports.
752.7  Direct shipment to customers.
752.8  SCL application review process.
752.9  Action on SCL applications.
752.10  Changes to the SCL.
752.11  Internal Control Programs.
752.12  Recordkeeping requirements.
752.13  Inspection of records.
752.14  System reviews.
752.15  Export clearance.
752.16  Administrative actions.

[[Page 301]]

752.17  BXA mailing addresses.

Supplement No. 1 to Part 752: Instructions for Completing Form BXA-748P, 
          Multipurpose Application, for Requests for Special 
          Comprehensive Licenses
Supplement No. 2 to Part 752: Instructions for Completing Form BXA-748P-
          A, Item Annex
Supplement No. 3 to Part 752: Instructions for Completing Form BXA-752, 
          Statement by Consignee in Support of Special Comprehensive 
          License
Supplement No. 4 to Part 752: Instructions for Completing Form BXA-752-
          A, Reexport Territories
Supplement No. 5 to Part 752: Instructions for Completing Form BXA-748P-
          B End-User Appendix

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 FR 
42767, August 17, 1995).

    Source: 61 FR 12835, Mar. 25, 1996, unless otherwise noted.



Sec. 752.1  Scope.

    (a)(1) Introduction. In this part, references to the EAR are 
references to 15 CFR chapter VII, subchapter C. This part describes the 
provisions of the Special Comprehensive License (SCL). You may apply for 
an SCL, when appropriate, in lieu of a license described in part 748 of 
the EAR, or a License Exception described in part 740 of the EAR, for 
multiple exports and reexports of items subject to the EAR. The SCL 
provides authorization to make specified exports and reexports that are 
otherwise prohibited by General Prohibitions One, Two, and Three 
described in part 734 of the EAR. The existence of an SCL does not 
supersede an exporter's obligation to request a separate license as may 
be required by part 744 of the EAR. Because the Bureau of Export 
Administration (BXA) does not review each individual transaction 
authorized by an SCL, parties to the SCL must have the mechanisms in 
place to ensure that each export and reexport made under an SCL meets 
all the terms and conditions of the license and are in accordance with 
all applicable provisions of the EAR. It is through the design and 
effective implementation of an Internal Control Program (ICP) that the 
SCL holder and the SCL consignee (referred to as ``consignee'' for 
purposes of this part) assure that exports and reexports are not made 
contrary to the EAR.
    (2) Definitions--(i) SCL holder. As used in this part, ``SCL 
holder'' is that party approved on an SCL to perform activities approved 
under the SCL.
    (ii) SCL consignee. As used in this part, ``SCL consignee'' or 
``consignee'' means any party authorized to receive items under the SCL 
and named as a consignee on an approved Form BXA-752, Statement by 
Consignee in Support of Special Comprehensive License.
    (b) ICP requirement. To qualify for an SCL, you must develop an ICP. 
Section 752.11 of this part includes a general description of the 
elements of the ICP, and guidance on which elements your company must 
implement before making shipments under the SCL. The elements of the ICP 
your company will develop reflect the complexity of the activities 
authorized under the SCL, the countries and items involved, and the 
relationship between the SCL holder and the approved consignees. BXA may 
require you to include in your ICP any combination of elements, 
depending upon the nature of your SCL application. During your pre-
application consultation required by Sec. 752.5(a)(1), BXA will provide 
you guidance on which elements you must implement.



Sec. 752.2  Eligible activities.

    (a) Possible authorizations. Under the SCL, BXA may authorize you to 
perform any number of activities, which can be grouped under the general 
categories of ``service'', ``end-user'', ``distribution'' and ``other'' 
activities. Examples of the general categories include:
    (1) Service activities. Exporting items subject to the EAR as spare 
and replacement parts for servicing or stocking.
    (2) End-user activities. Exporting and reexporting items subject to 
the EAR for use as capital equipment.
    (3) Distribution activities. Exporting and reexporting items subject 
to the EAR for the purpose of resale and reexport by consignees.
    (4) Other activities. Other activities not included in paragraphs 
(a)(1) through (a)(3) of this section may be authorized by BXA under the 
SCL on a case-by-case basis.

[[Page 302]]

    (b) Prohibited activities. The general prohibitions described in 
Sec. 736.2(b)(4) through (10) of the EAR apply to all exports and 
reexports by, and conduct of, all parties approved on your SCL, unless 
you are specifically authorized under the SCL to perform such 
activities, or the particular activity otherwise qualifies for a License 
Exception described in part 740 of the EAR.



Sec. 752.3  Eligible items.

    (a) All items subject to the EAR, including items eligible for 
License Exceptions described in part 740 of the EAR, are eligible for 
export and reexport under the SCL, except:
    (1) Items controlled for missile technology reasons that are 
identified by the letters MT in the applicable ``Reason for Control'' 
paragraph on the Commerce Control List (CCL) (see Supplement No. 1 to 
part 774 of the EAR);
    (2) Items controlled by ECCNs 1C351, 1C352, 1C353, 1C354, 1E001, 
1E351, 1E391, 2B352, and 2E301 on the CCL that can be used in the 
production of biological weapons;
    (3) Items controlled by ECCNs 1C350, 1D390, 1E001, 1E350, 1E391, 
2B350, and 2B351 on the CCL that can be used in the production of 
chemical weapons precursors and chemical warfare agents, to destinations 
listed in Country Group D:3 (see Supplement No. 1 to part 740 of the 
EAR);
    (4) Items controlled for short supply reasons that are identified by 
the letters ``SS'' in the applicable ``Reason for Control'' paragraph on 
the CCL;
    (5) Maritime (civil) nuclear propulsion systems or associated design 
or production software and technology identified in Sec. 744.5 of the 
EAR;
    (6) Communications intercepting devices controlled by ECCN 5A980 on 
the CCL;
    (7) Commercial communications satellites controlled under ECCN 
9A004.a on the CCL;
    (8) Hot section technology for the development, production or 
overhaul of commercial aircraft engines controlled under ECCN 9E003.a.1. 
through a.12. .f, and related controls;
    (9) Items specifically identified as ineligible by BXA on your 
approved SCL; and
    (10) Additional items consistent with international commitments.
    (b) Items controlled for nuclear nonproliferation reasons that are 
identified by the letters NP in the applicable ``Reason for Control'' 
paragraph on the CCL may be authorized on a case-by-case basis provided 
controls are in place to screen for proscribed end-users or end-uses.



Sec. 752.4  Eligible countries.

    (a) General provisions. All countries are eligible under the SCL 
except:
    (1) Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria.
    (2) Other countries that BXA may designate on a case-by-case basis 
as ineligible to receive items under the SCL.
    (b) Servicing prohibitions. Under the SCL, you may not service any 
item when you know that the item is owned or controlled by, or under the 
lease or charter of, entities in countries identified in paragraphs 
(a)(1) and (a)(2) of this section or any national of such countries.



Sec. 752.5  Steps you must follow to apply for an SCL.

    (a) Step One: Establish applicant reliability--(1) Pre-application 
consultation. To apply for an SCL, BXA must determine your reliability 
as a potential SCL holder. BXA usually does this through consultation 
with company officials and a review of the criteria identified in 
paragraph (a)(2) of this section. To determine whether your company 
requires a consultation before you apply for an SCL, contact BXA at the 
address, phone, or telefacsimile numbers included in Sec. 752.17 of this 
part.
    (2) Criteria for determining eligibility. BXA will review the 
following criteria to help determine SCL holder eligibility:
    (i) Evidence of past licensing history and projected, continuous 
large volume exports;
    (ii) Reliability of all parties relative to their compliance with 
the EAR;
    (iii) Commitment of all parties of the necessary resources to 
implement and maintain an adequate ICP; and
    (iv) Evidence of all parties knowledge of all provisions of the EAR.

[[Page 303]]

    (b) Step Two: Establish consignee reliability--(1) Requirements. You 
must make an initial determination of the reliability of all consignees 
that are listed on your application for an SCL, based upon the criteria 
described in paragraph (b)(2) of this section.
    (2) Determining reliability. The criteria that you should take into 
consideration include, but are not limited to, the following:
    (i) Criteria. (A) The proposed consignee has a satisfactory record 
established through BXA pre-license checks, or extensive experience as a 
consignee under any license issued by BXA;
    (B) The proposed consignee is a wholly-owned subsidiary or a 
controlled-in-fact affiliate of the applicant or of a consignee that is 
already approved on an SCL. See part 772 of the EAR for a definition of 
controlled-in-fact; or
    (C) You have evidence of an established, on-going business 
relationship with the proposed consignee.
    (ii) Exception. The provisions of paragraph (b)(2)(i) of this 
section do not preclude the authority of BXA to determine the 
reliability and eligibility of a proposed consignee. BXA may, based upon 
any negative information on the proposed consignees, deny a proposed 
consignee.
    (c) Step Three: Prepare your documentation. Complete Form BXA-748P, 
Multipurpose Application, Form BXA-748P-A, Item Appendix, Form BXA-748P-
B, End-User Appendix, an ICP, a comprehensive narrative statement, Form 
BXA-752, Statement by Consignee in Support of Special Comprehensive 
License, Form BXA-752-A, Reexport Territories, and all applicable 
certifications. Submit this documentation to BXA at one of the addresses 
included in Sec. 752.17 of this part.
    (1) Form BXA-748P, Multipurpose Application, and Form BXA-748P-A, 
Item Appendix. You must complete Form BXA-748P and Form 748P-A according 
to the instructions found in Supplement Nos. 1 and 2 of this part.
    (2) Form BXA-748P-B, End-User Appendix. You must identify end-users 
on Form BXA-748P-B if you are requesting approval to export or reexport 
items controlled for nuclear nonproliferation or chemical and biological 
control reasons.
    (3) ICP. You must provide a copy of your proposed ICP as required by 
Sec. 752.11 of this part. You must indicate whether any of the elements 
of the ICP will not be implemented and explain why these elements were 
deemed inapplicable. Existence of a properly constructed ICP will not 
relieve you of your responsibility to comply with requirements of all 
applicable regulations pertaining to your SCL;
    (4) Comprehensive narrative statement. Prepare a comprehensive 
narrative statement on your company letterhead that includes the 
following information:
    (i) An overview of the total business activity that will be 
performed by you and all other parties who will receive items under the 
authority of your SCL, including consignees, subcontractors, and 
vessels;
    (ii) A description of the nature and anticipated volume of regular 
and repetitive transactions proposed by consignees under the license;
    (iii) An explanation of the relationship between the parties to the 
application, such as affiliate, subsidiary, or parent, etc;
    (iv) A certification that you will implement, upon approval of the 
application by BXA, an ICP that incorporates all applicable elements 
listed in Sec. 752.11 of this part and any additional elements as 
required by BXA upon approval of the SCL; and
    (v) Information on whether proposed consignees are end-users or will 
reexport the items received under your SCL. You must describe the 
proposed consignee's activities completely to determine the appropriate 
ICP elements that you and your consignees must implement.
    (5) Form BXA-752, Statement of Consignee in Support of Special 
Comprehensive License. This Form is completed by each consignee. You 
must submit one completed, signed, original Form BXA-752 for each 
proposed consignee on your SCL application. See Supplement No. 3 to this 
part for instructions on completing Form BXA-752. Form BXA-752 is not 
required if the proposed consignee is both an end-user and a ``foreign 
government agency'' as defined in part 772 of the EAR.

[[Page 304]]

    (6) Form BXA-752-A, Reexport Territories. You must complete Form 
BXA-752-A, and attach it to the appropriate Form BXA-752, whenever 
Blocks 8B, 8C, 8E, and/or 8F are selected on Form BXA-752. See the 
instruction found in Supplement No. 3 to this part. Form BXA-752-A is 
not required if the proposed consignee is both an end-user and a foreign 
government agency (see part 772 of the EAR for a definition of foreign 
government agency).
    (7) Consignee certifications. Each consignee must provide certain 
certifications on company letterhead that is signed by the consignee. 
Attach certifications to the appropriate Form BXA-752. Each consignee 
must certify that:
    (i) They will implement, upon approval of the SCL by BXA, an ICP 
that incorporates all applicable elements listed in Sec. 752.11 of this 
part and any additional elements as required by BXA upon approval of 
your SCL. If certain elements of an ICP will not be included, state the 
reasons for that determination;
    (ii) They will comply with all provisions of the EAR, including the 
recordkeeping provisions of part 762 of the EAR, all applicable system 
review requirements of Sec. 752.14 of this part, and the reexport 
restrictions of Sec. 752.6 of this part; and
    (iii) They will make available for inspection, upon request by BXA, 
all records required by Sec. 752.12 of this part and part 762 of the 
EAR.
    (8) Additional certifications.
    (i) Temporary exports. Proposed consignees that plan to exhibit or 
demonstrate items in countries other than those in which they are 
located or are authorized under an SCL, an approved Form BXA-752, or a 
License Exception provision described in Sec. 740.8(a)(2)(iii) of the 
EAR may obtain permission to do so by including the following additional 
certification on company letterhead, and attaching it to Form BXA-752.

    I (We) request authorization to reexport temporarily, for exhibit or 
demonstration in countries eligible to receive items under the Special 
Comprehensive License. The items exported will be retained under my 
(our) ownership and control, and will be returned by me (us) to (name 
destination) promptly after their exhibit or demonstration abroad, and 
in no case later than one year after the date of reexport, unless other 
disposition is authorized in writing by the Bureau of Export 
Administration.

    (ii) Chemicals and chemical and biological equipment certification. 
If you are requesting authority to export chemicals or chemical and 
biological equipment eligible for the SCL (items controlled by ECCNs 
1C351, 1C352, 1C353, 1C354, 1D390, 1E001, 1E350, 1E351, 1E391, 2B350, 
2B351, 2B352, and 2E301 (see Supplement No. 1 to part 774 of the EAR), 
all consignees not located in country group A:3 (see Supplement No. 1 to 
part 740 of the EAR) must include the following certification on company 
letterhead:

    No chemicals or chemical or biological equipment received under this 
Special Comprehensive License will be transferred, resold, or reexported 
to a destination that requires a license, unless the new end-user has 
been approved by the Bureau of Export Administration, and in no case 
will the items be transferred, resold, or reexported to a party who is 
not the end-user.

    (iii) Nuclear proliferation certification. If you are requesting the 
export or reexport under the EAR of items controlled for nuclear 
nonproliferation reasons described in Sec. 744.2 of the EAR, prior to 
submitting an SCL application, you must obtain a signed written 
statement from the proposed consignee(s) and end-users certifying the 
following:
    (A) The items to be exported or replicas thereof (``replicas'' refer 
to items produced abroad based on physical examination of the items 
originally exported, matching it in all critical design and performance 
parameters), will not be used in any of the activities described in 
Sec. 744.2 of the EAR; and
    (B) Written authorization will be obtained from BXA prior to 
transferring or reexporting the items, unless they are destined to 
Canada or would not require a license to the new country of destination.

[61 FR 12835, Mar. 25, 1996, as amended at 61 FR 64285, Dec. 4, 1996]



Sec. 752.6  Reexports.

    (a) Authorized reexports. All consignees may reexport items without 
approval from BXA under any one of the

[[Page 305]]

following circumstances, unless otherwise specifically excluded by the 
provisions of the EAR or by a condition placed on your SCL.
    (1) Reexports that qualify for a License Exception authorized by 
part 740 of the EAR;
    (2) Reexports to destinations approved by BXA through validation of 
Form BXA-752 and/or Form BXA-752-A according to the terms stated on the 
Form BXA-752 or BXA-752-A; or
    (3) Reexports of items approved under an SCL to and among other 
consignees approved on the same SCL, provided that the items are 
eligible to the new destination in accordance with your approved SCL and 
Sec. 752.3 of this part.
    (b) Prohibitions. You are prohibited from the following activities 
without specific authorization from BXA:
    (1) Transferring, reselling, or reexporting under your SCL any 
chemicals or chemical and biological equipment (ECCNs identified with 
the letters CB in the applicable ``Reason for Control'' paragraph on the 
CCL (see Supplement No. 1 to part 774 of the EAR); and
    (2) Reexporting under your SCL items identified by the letters NP in 
the applicable ``Reason for Control'' paragraph on the CCL to 
destinations not listed in country group A:4 (see Supplement No. 1 to 
part 740).
    (c) Sourcing. Consignees who obtain U.S.-origin items abroad that 
are eligible for the SCL but that are subject to General Prohibitions 
One, Two, or Three (see part 734 of the EAR) may reexport them under the 
authority of your SCL, provided that they are reexported in accordance 
with the ICP required by Sec. 752.11 of this part, and any other 
applicable conditions or reexport restriction placed on your SCL by BXA. 
Either the SCL holder or the consignee through the SCL holder must 
submit the sourcing request for reexport of items on Form BXA-752.



Sec. 752.7  Direct shipment to customers.

    (a) General authorization. (1) Upon request by a consignee, an SCL 
holder or another consignee approved under the same SCL is authorized to 
deliver products directly to the requesting consignee's customer in 
either:
    (i) The requesting consignee's country; or
    (ii) Another country authorized to receive items under the 
requesting consignee's validated Form BXA-752-A.
    (2) The SCL holder or consignee making direct shipments authorized 
by this section must implement an ICP containing procedures governing 
such shipments.
    (3) SCL holders and consignees using the direct shipment provision 
may invoice the shipments directly to the requesting consignee's 
customers if copies of applicable invoices are maintained by both the 
shipping party and requesting consignee.
    (b) Procedures--(1) Exports by an SCL holder. The SCL holder may 
make a direct shipment by entering on the Shipper's Export Declaration 
the name and address of the customer as ultimate consignee and adding 
the notation ``by order of (name and address of consignee requesting the 
direct shipment)''. The notation must appear below the item description 
and must cite the SCL number followed by the three digit number of the 
consignee requesting the ``by order of'' shipment.
    (2) Reexports by a consignee. An approved consignee may make a 
direct reexport shipment to a customer of another approved consignee on 
the same SCL by showing on the commercial invoice the name and address 
of the customer as ultimate consignee and adding the notation ``by order 
of (name and address of consignee requesting the direct shipment).''



Sec. 752.8  SCL application review process.

    (a) Scope. Under an SCL, you are authorized to make multiple exports 
and reexports without review and approval of each individual transaction 
by BXA. To approve an SCL, BXA must be satisfied that the persons 
benefiting from this license will adhere to the conditions of the 
license and the EAR, and that approval of the application will not be 
detrimental to U.S. national security, nonproliferation, or foreign 
policy interests. In reviewing and approving a specific SCL request, BXA 
retains the right to limit the eligibility of items or to prohibit the 
export, reexport, or transfer of items under the SCL to specific firms, 
individuals, or countries.

[[Page 306]]

    (b) Elements of review. To permit BXA to make such judgments, BXA 
will thoroughly analyze your past export and reexport transactions, 
inspect your export and reexport documents, and interview company 
officials of both the applicant and the consignees, as necessary. If BXA 
cannot verify that an appropriate ICP will be implemented upon approval 
of the SCL by BXA, or establish the reliability of the proposed parties 
to the application, it may deny the application, or modify it by 
eliminating certain consignees, items, countries, or activities.
    (c) Order requirement. You do not need to have in your possession an 
order from the proposed consignee at the time you apply for an SCL. 
However, evidence of a consignee's firm intention to place orders on a 
continuing basis is required.
    (d) Criteria for review. BXA will consider the following factors 
during the processing of your SCL application:
    (1) The specific nature of proposed end-use and end-uses;
    (2) The significance of the export in terms of its contribution to 
the design, development, production, stockpiling, or use of nuclear or 
chemical or biological weapons, or missiles;
    (3) The types of assurances against design, development, production, 
stockpiling, or use of nuclear or chemical and biological weapons, or 
missiles that are included in the ICP;
    (4) The nonproliferation credentials of the importing country;
    (5) Corporate commitment of the resources necessary to implement and 
maintain an adequate ICP;
    (6) Evidence of past licensing history of the applicant and 
consignees, and projected, continuous large volume exports and/or 
reexports;
    (7) Reliability of all parties;
    (8) Information on all parties' compliance with the provisions of 
the EAR; and
    (9) All parties' knowledge of the EAR.
    (e) Application processing time-frames. Upon receiving an SCL 
application, BXA may review the application for up to two weeks to 
determine whether the SCL application is complete. When all 
documentation requirements are met, BXA will register the application. 
After the date of registration, the SCL application will be processed 
according to the procedures described in part 750 of the EAR.



Sec. 752.9  Action on SCL applications.

    (a) Approval of SCL applications--(1) Validity period. SCLs are 
valid for four years from the date of approval.
    (2) Extension of validity period. You may request an extension of 
your valid SCL for an additional four years, but such requests must be 
received by BXA at least 30 days prior to the expiration of your SCL. If 
approved, Form BXA-748P and your letter requesting an extension will be 
validated and returned to you, extending the validity period for four 
years. No further extensions will be approved. A new application and 
support documentation is required at the end of that eight-year period. 
To apply for an extension, complete Form BXA-748P by completing Blocks 
1, 2, 3 and 4. Mark ``Special Comprehensive License'' in Block 5 and 
``change'' in Block 6. Include your SCL number in Block 9, and indicate 
in Block 24 that you are requesting an extension to your SCL. Submit the 
completed Form BXA-748P and a statement on company letterhead 
indicating:
    (i) That you continue to abide by the provisions and conditions of 
the SCL; and
    (ii) Any changes to the original SCL that you are requesting (see 
Sec. 752.10 of this part for procedures on changed circumstances).
    (3) Support documentation--(i) General information. BXA will 
validate all approved support documentation with the Department of 
Commerce seal and date of validation.
    (ii) Form BXA-752, Form BXA-752-A, and Form BXA-748P-B. With the 
approved SCL, you will receive two validated copies of each approved 
Form BXA-752, Statement by Consignee in Support of Special Comprehensive 
License and, if applicable, Form BXA-752-A, Reexport Territories, and 
Form BXA-748P-B, End-User Appendix. You must retain one copy, and send 
one copy to the approved consignee. You must also attach a letter to 
each approved Form BXA-752 that includes each of the following elements:

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    (A) A description of all recordkeeping requirements of the EAR 
applicable to the activities of the consignee;
    (B) Information on any applicable reexport restrictions on items 
received by the consignee under the SCL;
    (C) A description or copy of Sec. 752.16 of this part, listing 
administrative actions that may be taken for improper use of, or failure 
to comply with, the SCL and its required procedures;
    (D) A description of any special conditions or restrictions on the 
license applicable to the consignee, including approved lists of 
customers, countries, and items, when required;
    (E) A description of the elements of the SCL holder's ICP relevant 
to the SCL consignee;
    (F) A copy of the high risk customer profile contained in 
Sec. 752.11(c)(13)(i) of this part, when required;
    (G) A copy of the Denied Persons List currently in effect and 
notification that you will send the consignee regular updates to this 
list;
    (H) A notice that the consignee, in addition to other requirements, 
may not sell or otherwise dispose of any U.S. origin items when it knows 
that the items will be used in the activities prohibited by part 744 of 
the EAR;
    (I) A requirement that the consignee acknowledge, in writing, 
receipt of this letter of transmittal outlining their obligations under 
the SCL, and certify that it will comply with all of the requirements, 
including implementation of an ICP if required by Sec. 752.11 of this 
part; and
    (J) A description of any special documentation requirements for 
consignees reexporting items to destinations having such requirements.
    (4) Special license conditions. BXA may place special conditions on 
your SCL, such as restrictions on eligible items, countries, end-uses, 
end-users or activities, or a requirement that certain sales or 
transfers of items under the SCL are subject to prior reporting to BXA. 
Such special conditions will be listed on your SCL or in a letter from 
BXA to the SCL holder. You must inform all relevant consignees of all 
license conditions prior to making any shipments under the SCL.
    (b) Denial of SCL applications. (1) If BXA intends to deny your SCL 
application, you will be notified and have opportunity to respond 
according to the procedures in Sec. 750.6 of the EAR.
    (2) BXA may at any time prohibit the sale or transfer of items under 
the SCL to specified individuals, companies, or countries. In such 
cases, the SCL holder must inform all consignees, and apply for a 
license described in part 748 of the EAR for subsequent transactions 
with such excluded parties.
    (3) If a consignee is not approved, Form BXA-752 will be returned to 
the SCL holder with a letter explaining the reason for denial.
    (4) If a particular destination is not approved, it will be removed 
from the appropriate Form BXA-752-A.
    (c) Return without action. BXA may determine to return the SCL 
application without action. Under such circumstances, the application 
and all related documents will be returned to you along with a letter 
stating the reason for return of the license application, explaining the 
deficiencies or additional information required for reconsideration, or 
advising you to apply for a license described in part 748 of the EAR. 
BXA may return your entire application or merely documents pertaining to 
a specific consignee request.



Sec. 752.10  Changes to the SCL.

    (a) General information. Certain changed circumstances regarding the 
SCL require prior approval from BXA before you make such changes, while 
others require only notification to BXA.
    (b) Changes requiring prior written approval from BXA. The following 
circumstances require prior written approval by BXA. Such requests must 
be submitted by the SCL holder, and changes are not effective until BXA 
approves the request. Upon approval of a change described in this 
paragraph, BXA will return to the SCL holder a validated copy of the 
request, indicating any changes that may have been made to your request, 
or any special conditions that may have been imposed.
    (1) Change of SCL holder company name. You must submit to BXA Form 
BXA-748P, Multipurpose Application, for any change in the name of the 
SCL holder company. Complete Blocks 1, 2,

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3, and 4. Mark ``Special Comprehensive License'' in Block 5, and 
``change'' in Block 8. In Block 9, include your SCL number, and briefly 
indicate the purpose of the change. Enter the new information in the 
relevant Blocks, and complete Block 25. The SCL holder must send a copy 
of the validated Form BXA-748P to each approved consignee, and advise 
them to attach the copy of the validated form to their validated Form 
BXA-752.
    (2) Change in consignee name or address. You must submit to BXA Form 
BXA-752, Statement by Consignee in Support of Special Comprehensive 
License, when requesting a change in consignee name, or if the consignee 
moves out of the country. The consignee must complete Block 2, mark 
``change an existing consignee'' in Block 3, and provide the new 
consignee information in Block 4. Also complete Blocks 10 and 11.
    (3) Addition of new consignees. You must submit to BXA Form BXA-752 
for requests to add consignees to an SCL. Complete Form BXA-752 in 
accordance with the instructions in Supplement No. 1 to this part, 
marking ``Add a New Consignee'' in Block 3. Use Block 9 to describe the 
proposed consignee's role in the activities authorized by the SCL. Form 
BXA-752 is not required if the proposed new consignee is a foreign 
government agency and the items will not be reexported. If Form BXA-752 
is not required, the SCL holder may submit the request to add the 
foreign government agency to the SCL on company letterhead. You must 
include the proposed consignee's complete street address.
    (4) Change in reexport territories. You must submit to BXA Form BXA-
752 and Form BXA-752-A to add a country to a consignee's approved 
reexport territory. Upon approval of change in reexport territory, BXA 
will return to the SCL holder two validated copies of Form BXA-752 and 
Form BXA-752-A, Reexport Territories, along with any special conditions 
that may have been imposed.
    (i) Form BXA-752. Complete Block 3 by marking ``Change an Existing 
Consignee''. In Block 4, enter the consignee name and consignee number. 
In Block 5, enter the SCL number. In Block 9, enter ``to add a country 
to the reexport territory''. Complete Blocks 10 and 11.
    (ii) Form BXA-752-A. Complete Blocks 2 and 3. Mark each country that 
you are adding to your reexport territory.
    (5) Adding items to your SCL. The following procedures apply to 
requests to add items to your SCL. Upon approval, BXA will send you a 
validated Form BXA-752 and, if applicable, Form BXA-748P-A. The SCL 
holder must send a copy of each validated form to all applicable 
consignees and attach a copy to their Form BXA-752.
    (i) Adding one item. You must submit to BXA Form BXA-748P to request 
the addition of a single item to your SCL. Complete Blocks 1, 2, 3 and 
4. Mark ``Special Comprehensive License'' in Block 5, and ``change'' in 
Block 8. Include your SCL number in Block 9 and state either ``add 
ECCN'' or ``delete ECCN''. Complete items (a) and (j) in Block 22, and 
Block 25.
    (ii) More than one item. You must submit to BXA Form BXA-748P and 
Form BXA-748P-A to request to add more than one item to your SCL. 
Complete Form BXA-748P according to the instructions in paragraph 
(b)(5)(i) of this section. Complete Form BXA 748P-A by including the 
``Application Control Number'' (found on form BXA-748P) in Block 1. 
Complete Block 21 and Block 24, if needed, to describe any special 
circumstances (i.e. the new item will only be exported to specific 
consignees and will not be reexported).
    (6) Changes to end-users. You must submit to BXA Form BXA-752 and 
Form BXA-748P-B to add end-users to consignee authorizations. Upon 
approval by BXA, BXA will return to the SCL holder two validated copies 
of Form BXA-752 and Form BXA-748P-B, which will include any special 
conditions that may have been imposed. You must send one copy of Forms 
BXA-752 and BXA-748P to the relevant consignee.
    (i) Form BXA-752. On Form BXA-752, complete Block 3.B., ``Change an 
Existing Consignee''. Include the consignee number in Block 4. Include 
the SCL number in Block 5. In Block 9, type ``To add an End-User''. 
Complete Blocks 10 and 11.

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    (ii) Form BXA-748P-B. On Form BXA-748P-B, include the SCL consignee 
number in Block 1. Complete Block 19. Cite the end-user requirement or 
condition (i.e. ``This end-user is requested in compliance with 
Sec. 752.5(c)(8)(ii) of the EAR, which requires prior authorization to 
reexport chemicals under the SCL''. Also list the items (by ECCN and 
description) that the end-user will receive and for what purpose, if 
approved by BXA.
    (c) Changes that do not require prior approval from BXA. The 
following changes regarding your SCL do not require prior approval from 
BXA, however, such changes must be submitted on the appropriate forms no 
later than 30 days after the change has occurred. BXA will validate the 
forms, and return one copy to you for your records.
    (1) Change of SCL holder address, export contact information, or 
total value of license. You must submit to BXA Form BXA-748P, 
Multipurpose Application, for any change in the SCL holder's address, 
export contact information, or total value of the license. Complete 
Blocks 1, 2, 3, and 4. Mark ``Special Comprehensive License'' in Block 
5, and ``change'' in Block 8. In Block 9, include your SCL number, and 
briefly indicate the purpose of the change. Enter the new information in 
the relevant Blocks. Complete Block 25. The SCL holder must send a copy 
of the validated Form BXA-748P to each approved consignee, and advise 
them to attach the copy of the validated form to their validated Form 
BXA-752.
    (2) Deletion, suspension or revocation of consignees. You must 
submit to BXA Form BXA-748P if you remove a consignee from your SCL. 
Complete Blocks 1, 2, 3 and 4, mark ``Special Comprehensive License'' in 
Block 5, and ``change'' in Block 8. Indicate your SCL number in Block 9, 
and complete Block 14. In Block 24, indicate that you are removing a 
consignee(s) from your SCL, and indicate the name and address of the 
consignee as it appears on the original Form BXA-752. Also include the 
consignee number that was assigned when your SCL was approved by BXA. 
You must notify all remaining consignees if any consignee is no longer 
eligible to receive items under the SCL.
    (3) Changes in ownership or control of the SCL holder or consignee. 
(i) SCL holder. You must notify BXA of changes in ownership or control 
by submitting to BXA Form BXA-748P. Complete Blocks 1, 2, 3 and 4, mark 
``Special Comprehensive License'' in Block 5, and indicate the SCL 
number in Block 9. Include the SCL holder information in Block 14, and 
describe the change in Block 24, indicating the circumstances 
necessitating the change (i.e., mergers), and changes in persons who 
have official signing authority. Also complete Block 25.
    (ii) Consignee. You must notify BXA of changes in ownership or 
control of the consignee company by submitting to BXA Form BXA-752. 
Complete Block 2, mark ``change an existing consignee'' in Block 3.B., 
and complete Blocks 4 and 5. In Block 9, describe the change, indicating 
the circumstances necessitating the change (i.e. mergers), and changes 
in persons who have official signing authority. Complete Blocks 10 and 
11.
    (4) Remove reexport territories. If you remove a country from a 
consignee's approved reexport territory, you must submit to BXA Form 
BXA-752 and Form BXA-752-A. Upon review of the change in reexport 
territory, BXA will return to the SCL holder two validated copies of 
Form BXA-752 and Form BXA-752-A.
    (i) Form BXA-752. Complete Block 3 by marking ``Change an Existing 
Consignee''. In Block 4, enter the consignee name and consignee number. 
In Block 5, enter the SCL number. In Block 9, enter ``to remove a 
country from the reexport territory''. Complete Blocks 10 and 11.
    (ii) Form BXA-752A. Complete Blocks 2 and 3. Mark each country that 
you are removing from the reexport territory.
    (5) Remove items from your SCL. The following procedures apply if 
you remove an item from your SCL. After review of the change by BXA, BXA 
will send you a validated Form BXA-752 and BXA-748P-A, if applicable. 
The SCL holder must send a copy of the each validated form to all 
applicable consignees and attach a copy to their BXA-752P.

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    (i) Removing one item. You must submit to BXA Form BXA-748P if you 
remove a single item from your SCL. Complete Blocks 1, 2, 3 and 4. Mark 
``Special Comprehensive License'' in Block 5, and ``change'' in Block 8. 
Include your SCL number in Block 9 and state ``delete ECCN''. Complete 
item (a) and (j) in Block 22, and Block 25.
    (ii) Removing more than one item. You must submit to BXA Form BXA-
748P and Form BXA-748P-A if you remove more than one item from your SCL. 
Complete Form BXA-748P according to the instructions in paragraph 
(a)(5)(i) of this section. Complete Form BXA 748P-A by including the 
``Application Control Number'' (found on form BXA-748P) in Block 1, and 
completing items (a) and (j) in Block 22 for each item you are removing 
from your SCL.
    (6) Remove end-users from your SCL. You must submit to BXA Form BXA-
752 and Form BXA-748P-B if you remove end-users from consignee 
authorizations. After review by BXA, BXA will return to the SCL holder 
two validated copies of Form BXA-752 and Form BXA-748P-B, which will 
include any special conditions that may have been imposed. You must send 
one copy of Forms BXA-752 and BXA-748P to the relevant consignee.
    (i) Form BXA-752. On Form BXA-752, complete Block 3.B., ``Change an 
Existing Consignee''. Include the consignee number in Block 4. Include 
the SCL case number in Block 5. In Block 9, type ``To remove an end-
user''. Complete Blocks 10 and 11.
    (ii) Form BXA-748P-B. On Form BXA-748P-B, include the SCL consignee 
number in Block 1. Complete Block 19.
    (d) Changes made by BXA. If BXA revises or adds an ECCN to the CCL, 
or a country's eligibility already covered by the SCL changes, BXA will 
publish the change in the Federal Register. The SCL holder is 
responsible for immediately complying with any changes to the scope of 
the SCL.



Sec. 752.11  Internal Control Programs.

    (a) Scope--(1) Introduction. It is through Internal Control Programs 
(ICPs) that the SCL holder and the consignee assure that exports and 
reexports are not made contrary to the EAR. The elements of your ICP 
will reflect the complexity of the activities authorized under the SCL, 
the countries and items involved, and the relationship between the SCL 
holder and the approved consignees.
    (2) General requirements. Prior to making any exports and reexports 
under an SCL, you and your consignees, when required, must implement an 
ICP that is designed to ensure compliance with the SCL and the EAR. This 
section provides an overview of the elements that comprise an ICP. You 
may obtain from BXA at the address found in Sec. 752.17 of this part 
guidelines to assist you in developing an adequate ICP. You must submit 
with your application for an SCL a copy of your proposed ICP, along with 
any consignee ICPs, when required, incorporating the elements described 
in this section, as appropriate. BXA may require you to modify your ICP 
depending upon the activities, items, and destinations requested on your 
application for an SCL.
    (b) Requirements. You may not make any shipments under an SCL until 
you and your consignees, when appropriate, implement all the elements of 
the required ICP. If there are elements that you consider inapplicable, 
you must explain the reasons for this determination at the time of 
application for an SCL. Existence of a properly constructed ICP will not 
relieve the SCL holder of liability for improper use or failure to 
comply with the requirements of the EAR.
    (c) Elements of an ICP. Following is a list of ICP elements. The 
specific elements that should be included in your ICP depend upon the 
complexity of the activities authorized under your SCL, the countries 
and items involved, and the relationship between the SCL holder and the 
approved consignees.
    (1) A clear statement of corporate policy communicated to all levels 
of the firm involved in exports and reexports, traffic, and related 
functions, emphasizing the importance of SCL compliance;
    (2) Identification of positions (and maintenance of current list of 
individuals occupying the positions) in the SCL holder firm and 
consignee firms responsible for compliance with the requirements of the 
SCL procedure;

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    (3) A system for timely distribution to consignees and verification 
of receipt by consignees of the Denied Persons List (Supplement No. 2 to 
part 764 of the EAR) and other regulatory materials necessary to ensure 
compliance;
    (4) A system for screening items, training and servicing 
transactions against Denied Persons List (Supplement No. 2 to part 764 
of the EAR) and any relevant updates to the Denied Persons List;
    (5) A system for assuring compliance with items and destination 
restrictions, including controls over reexports by consignees and direct 
exports to consignee customers;
    (6) A compliance review program covering the SCL holder and 
extending to all consignees;
    (7) A system for assuring compliance with controls on exports and 
reexports of nuclear items and to nuclear end-uses described in 
Secs. 742.3 and 744.2 of the EAR;
    (8) An on-going program for informing and educating employees 
responsible for processing transactions involving items received under 
the SCL about applicable regulations, limits, and restrictions of the 
SCL;
    (9) A program for recordkeeping as required by the EAR;
    (10) An order processing system that documents employee clearance of 
transactions in accordance with applicable elements of the company ICP;
    (11) A system for monitoring in-transit shipments and shipments to 
bonded warehouses and free trade zones;
    (12) A system for notifying BXA promptly if the SCL holder knows 
that a consignee is not in compliance with terms of the SCL;
    (13) A system to screen against customers who are known to have, or 
are suspected of having, unauthorized dealings with specially designated 
regions and countries for which nonproliferation controls apply;
    (i) The signs of potential diversion that you should take into 
consideration include, but are not limited to, the following:
    (A) Your customer is little known (financial information unavailable 
from normal commercial sources and corporate principals unknown by trade 
sources);
    (B) Your customer does not wish to use commonly available 
installation and maintenance services;
    (C) Your customer is reluctant to provide end-use and end-user 
information;
    (D) Your customer requests atypical payment terms or currencies;
    (E) Customer order amounts, packaging, or delivery routing 
requirements do not correspond with normal industry practice.
    (F) The performance/design characteristics of the items ordered are 
incompatible with customer's line of business or stated end-use;
    (G) Your customer provides only a ``P.O. Box'' address or has 
facilities that appear inappropriate for the items ordered;
    (H) Your customer's order is for parts known to be inappropriate, or 
for which the customer appears to have no legitimate need (e.g., there 
is no indication of prior authorized shipment of system for which the 
parts are sought); and
    (I) Your customer is known to have, or is suspected of having, 
unauthorized dealings with parties and/or destinations in ineligible 
countries.
    (ii) When any of the above characteristics have been identified, but 
through follow-up inquiries or investigation have not been 
satisfactorily resolved, the consignee should not transact any business 
with the customer under the SCL. Apply for a license according to part 
748 of the EAR. You should explain the basis for the concern regarding 
the proposed customer, and state that you are an SCL consignee. Also, 
cite the SCL number, and your consignee number;
    (14) A system for assuring compliance with controls over exports and 
reexports for missile-related end-uses and end-users described in 
Sec. 744.3 of the EAR;
    (15) A system for assuring compliance with control over exports and 
reexports of chemical precursors and biological agents and related items 
and end-uses described in Secs. 742.2 and 744.4 of the EAR;



Sec. 752.12  Recordkeeping requirements.

    (a) SCL holder and consignees. In addition to the recordkeeping 
requirements

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of part 762 of the EAR, the SCL holder and each consignee must maintain 
copies of manuals, guidelines, policy statements, internal audit 
procedures, reports, and other documents making up the ICP of each party 
included under an SCL. Also, all parties must maintain copies of the 
most current Denied Persons List (see Supplement No. 2 to part 764 of 
the EAR) as well as all updates, and all other regulatory materials 
necessary to ensure compliance with the SCL, such as relevant changes to 
the EAR, product classification, additions, deletions, or other 
administrative changes to the SCL, transmittal letters and consignee's 
confirmations of receipt of these materials.
    (b) Consignees. All consignees must retain all records of the types 
of activities identified in Sec. 752.2(a)(3) of this part. Records on 
such sales or reexports must include the following:
    (1) Full name and address of individual or firm to whom sale or 
reexport was made;
    (2) Full description of each item sold or reexported;
    (3) Units of quantity and value of each item sold or reexported; and
    (4) Date of sale or reexport.



Sec. 752.13  Inspection of records.

    (a) Availability of records. You and all consignees must make 
available all of the records required by Sec. 752.12 of this part and 
Sec. 762.2 of the EAR for inspection, upon request, by BXA or by any 
other representative of the U.S. Government, in accordance with part 762 
of the EAR.
    (b) Relationship of foreign laws. Foreign law may prohibit 
inspection of records by a U.S. Government representative in the foreign 
country where the records are located. In that event, the consignee must 
submit with the required copies of Form BXA-752 an alternative 
arrangement for BXA to review consignee activities and determine whether 
or not the consignee has complied with U.S. export control laws and 
regulations, which must be approved by BXA.
    (c) Failure to comply. Parties failing to comply with requests to 
inspect documents may be subject to orders denying export privileges 
described in part 764 of the EAR or to the administrative actions 
described in part 766 of the EAR.



Sec. 752.14  System reviews.

    (a) Post-license system reviews. BXA may conduct system reviews of 
the SCL holder as well as any consignee. Generally, BXA will give 
reasonable notice to SCL holders and consignees in advance of a system 
review. The review will involve interviews with company officials, the 
inspection of records, and the review of ICPs. BXA may conduct special 
unannounced system reviews if BXA has reason to believe an SCL holder or 
consignee has improperly used or has failed to comply with the SCL.
    (b) Other reviews. BXA may require an SCL holder or consignee to 
submit to its office a list of all sales made under the SCL during a 
specified time-frame. Also, BXA may request from any consignee a list of 
transactions during a specified period involving direct shipments of 
items received under SCLs to customers of other consignees and sales to 
customers in reexport territories authorized by BXA on the consignee's 
validated Form BXA-752.



Sec. 752.15  Export clearance.

    (a) Shipper's Export Declaration (SED). The SED covering an export 
made under an SCL must be prepared in accordance with standard 
instructions described in Sec. 758.3 of the EAR. If the SCL holder has 
implemented the Bureau of Census Monthly Reporting System, the SCL 
holder must comply with the Census requirements.
    (1) Item descriptions. Item descriptions on the SED must indicate 
specifically the ECCN and item description conforming to the applicable 
CCL description and incorporating any additional information where 
required by Schedule B; (e.g., type, size, name of specific item, etc.).
    (2) Value of shipments. There is no value limitation on shipments 
under the SCL; however, you must indicate the value of each shipment on 
the SED.
    (3) SCL number. The SED must include the SCL number followed by a 
blank space, and then the consignee number identifying the SCL's 
approved consignee to whom the shipment is authorized.

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    (b) Destination control statement. The SCL holder must enter a 
destination control statement on all copies of the bill of lading or air 
way-bill, and the commercial invoice covering exports under the SCL, in 
accordance with the provisions of Sec. 758.6 of the EAR. Use of a 
destination control statement does not preclude the consignee from 
reexporting to any of the SCL holder's other approved consignees or to 
other countries for which specific prior approval has been received from 
BXA. In such instances, reexport is not contrary to U.S. law and, 
therefore, is not prohibited. Another destination control statement may 
be required or approved by BXA on a case-by-case basis.



Sec. 752.16  Administrative actions.

    (a)(1) If BXA is not satisfied that you or other parties to the SCL 
are complying with all conditions and requirements of the SCL, or that 
ICPs employed by parties to such licenses are not adequate, BXA may, in 
addition to any enforcement action pursuant to part 764 of the EAR, take 
any licensing action it deems appropriate, including the following:
    (i) Suspend the privileges under the SCL in whole or in part, or 
impose other restrictions;
    (ii) Revoke the SCL in whole or in part;
    (iii) Prohibit consignees from receiving items authorized under the 
SCL, or otherwise restrict their activities under the SCL;
    (iv) Restrict items that may be shipped under the SCL;
    (v) Require that certain exports, transfers or reexports be 
individually authorized by BXA;
    (vi) Restrict parties to whom consignees may sell under the SCL; and
    (vii) Require that an SCL holder provide an audit report to BXA of 
selected consignees or overseas operations.
    (2) Whenever necessary to protect the national interest of the U.S., 
BXA may take any licensing action it deems appropriate, without regard 
to contracts or agreements entered into before such administrative 
action, including those described in paragraphs (a)(1) (i) through (vii) 
of this section.
    (b) Appeals. Actions taken pursuant to paragraph (a) of this section 
may be appealed under the provisions of part 756 of the EAR.



Sec. 752.17  BXA mailing addresses.

    You should use the following addresses when submitting to BXA 
applications, reports, documentation, or other requests required in this 
part 752: Bureau of Export Administration, U.S. Department of Commerce, 
P.O. Box 273, Washington, D.C. 20044, ``Attn: Special Licensing and 
Compliance Division''. If you wish to send the required material via 
overnight courier, use the following address: Bureau of Export 
Administration, U.S. Department of Commerce, 14th and Pennsylvania 
Avenue, N.W., Room 2705, Washington D.C. 20230 ``Attn: Special Licensing 
and Compliance Division''. You may also reach the Special Licensing and 
Compliance Division by phone (202)482-0062, or telefacsmile on (202)501-
6750.

Supplement No. 1 to Part 752--Instructions for Completing Form BXA-748P 
Multipurpose Application for Requests for Special Comprehensive Licenses

    All information must be legibly typed within the lines for each 
Block or box, except where a signature is required. Where there is a 
choice of entering a telephone or telefacsimile number, and you choose a 
telefacsimile number, identify the number with the letter ``F'' 
immediately following the number.
    Complete Blocks 1, 2, 3, and 4 according to the instructions in 
Supplement No. 1 to part 748.
    Block 5: Type of Application. Enter an ``X'' in the Special 
Comprehensive License box.
    Block 6: Documents Submitted with Application. Leave blank.
    Block 7: Documents on File with Applicant. Leave blank.
    Block 8: Special Comprehensive License. Complete by entering an 
``X'' in the appropriate boxes to indicate which forms are attached.
    Block 9: Special Purpose. This block should only be completed by 
previous special license holders. If you have had a special license in 
the past, enter that license number. A new SCL number will be assigned 
upon approval of your SCL application.
    Blocks 10, 11, 12, and 13: Leave blank.
    Block 14: Applicant. Complete according to the instructions in 
Supplement No. 1 to part 748.

[[Page 314]]

    Block 15: Other Party Authorized to Receive License. Complete, if 
applicable, according to the instructions in Supplement no. 1 to part 
748.
    Blocks 16 and 17: Leave blank.
    Block 18: Ultimate Consignee. Leave blank.
    Blocks 19, 20, and 21: Leave blank.
    Block 22: Leave (a)-(j) blank.
    Block 23: Total Application Dollar Value. Enter the projected total 
dollar value of all transactions you anticipate making throughout the 
entire validity period of the SCL.
    Block 24: Additional Information. Enter additional data pertinent to 
the transaction as required by part 752. Do not include information 
concerning block 22 in this space.
    Block 25: Signature. Complete according to the instructions in 
Supplement No. 1 to part 748.

Supplement No. 2 to Part 752--Instructions for Completing Form BXA-748P-
                            A, ``Item Annex''

    All information must be legibly typed within the lines for each 
block or box.
    Block 1: Application Control No. Enter the application control 
number found on Form BXA-748P.
    Block 2: Subtotal. Leave blank.
    Block 21: Continuation of Specific End-Use Information. Leave blank. 
Block 22:
    (a) ECCN. Enter the Export Control Classification Number that 
corresponds to the item you wish to export or reexport under the SCL.
    (b) CTP. You must complete this block if you intend to export or 
reexport a digital computer. Instructions on calculating the CTP are 
contained in a Technical Note at the end of Category 4 in the CCL.
    (c)-(i): Leave blank.
    (j) Manufacturer's Description. Enter a detailed description of the 
item proposed for export or reexport. Brochures or product literature 
may be supplied at the option of the applicant. However, such 
information may expedite review and processing of your application.
    Block 24: Continuation of Additional Information. Enter any 
identifying information that defines the scope of items you are 
requesting to export or reexport under the SCL. For example, ``4A004 
except items controlled for MT reasons''.

 Supplement No. 3 to Part 752--Instructions for Completing Form BXA-752 
 ``Statement by Consignee in Support of Special Comprehensive License''

    All information must be legibly typed within the lines for each 
block or box, except where a signature is required.
    Block 1: Application Control No. Enter the ``Control No.'' that is 
pre-printed on the Form BXA-748P, Multipurpose Application. You may 
obtain this information from the applicant.
    Block 2: Consignee ID Number. Leave blank.
    Block 3: Type of Request. For new applications, leave blank.
    Block 4: Consignee Information. Enter the complete address where the 
consignee is located. A P.O. Box alone is NOT acceptable but may be 
included in Block 4 for mailing purposes, along with a complete address. 
If records required by Sec. 752.12 of this part and part 762 of the EAR 
are maintained/stored at a separate address, indicate the address in 
Block 9. In the absence of a complete address, Form BXA-752 will be 
returned without action.
    Block 5: U.S. Exporter Information. Enter the complete address of 
the U.S. exporter. Leave the SCL Case No. box blank.
    Block 6: Description of Items. Provide a summary description of the 
items proposed for import and reexport under the SCL. Firms that will 
not receive the entire range of items under a particular ECCN identified 
on Form BXA-748P-A should describe only the items they will receive 
under the SCL. In some instances, consignee approval will be contingent 
on the nature of the item requested.
    Block 7: Consignee's Business and Relationship.
    (a) Identify the nature of your company's principal business as it 
affects the disposition of items to be imported and reexported under 
this license (e.g., manufacturer, manufacturer/ distributor, assembler/
reseller, distributor, sales agent, warehouse, service facility).
    (b) Indicate the relationship between your company and the applicant 
company (e.g., wholly owned subsidiary, independent company, joint 
venture company, controlled-in-fact affiliate of another consignee that 
is approved on an SCL).
    (c) Enter number of years of relationship between your company and 
the applicant company.
    (d) Enter the estimated dollar volume of sales or other transactions 
with the SCL holder during the last twelve months period before 
submission of the application for SCL.
    (e) Enter an estimated dollar volume proposed under this application 
for the validity period of the SCL.
    Block 8: Disposition or Use of Items.
    (a) Complete this Block if your company is requesting involvement in 
end-user activities that involve importing items for the company's own 
use (e.g., as capital equipment).
    (b) Complete this Block if your company is requesting involvement in 
end-user activities that incorporate items received under the SCL into a 
new end-product that result

[[Page 315]]

in a change of identity of the U.S.-item (e.g., U.S.-origin 
semiconductor devices are included in a foreign origin test instrument). 
Under Block 9, Additional Information, describe the new end-product more 
specifically and state how and to what extent the U.S.-origin items will 
be used. Complete and attach Form BXA-752-A, Reexport Territories.
    (c) Complete this Block if your company is requesting authorization 
to reexport items for service and/or repair. Complete and attach Form 
BXA-752-A. If you plan to reexport to end-users that require prior 
approval by BXA, also complete and attach Form BXA-748P-B, End-User 
Appendix.
    (d) Complete this Block if your company plans to retransfer/resell 
within the country of import. State the end-use of your customers. If 
you plan to retransfer to end-users that require prior approval by BXA, 
complete and attach Form BXA-748P-B, End-User Appendix.
    (e) Complete this Block if your company plans to reexport. Complete 
and attach Form BXA-752-A. If you plan to reexport to end-users that 
require prior approval by BXA, also complete and attach Form BXA-748P-B, 
End-User Appendix.
    (f) This item should be completed for ``other'' activities that are 
not defined in Blocks 8(a) through (e). Describe the proposed activities 
fully in a letter attached to this Form, and complete and attach Form 
BXA-752-A, indicating countries to which the products derived from these 
activities are proposed export.
    Block 9: Additional Information. In addition to any information that 
supports other Blocks, indicate whether your company is an active 
consignee under any other license issued by BXA. Indicate the license 
and consignee numbers.
    Block 10: Signature of Official of Ultimate Consignee. Include an 
original signature. The authority to sign form BXA-752 may not be 
delegated to any person whose authority to sign is not inherent in his/
her official position with the company. The signing official must 
include their official title with the signature. All copies must be co-
signed by the applicant in Block 11 and submitted with the application 
to BXA.

Supplement No. 4 to Part 752--Instructions for Completing Form BXA-752-A 
                          Reexport Territories

    All information must be legibly typed within the lines for each 
block or box.
    Block 1: Application Control No. Insert the application control 
number from the relevant form BXA-748P.
    Block 2: SCL License No. Leave blank for new SCL applications. For 
changes to existing SCLs, include the original SCL number.
    Block 3: Consignee No. Leave blank for new SCL applications. For 
changes to existing SCLs, include the consignee number that was provided 
on the original license.
    Block 4: Continuation of BXA-752 Question No. Mark an ``X'' in the 
box next to each country you want to select. Countries that are not 
eligible for the SCL are not included on this form. If the country that 
is not listed on this form becomes eligible to receive items under the 
SCL, you may request that country by marking an ``X'' in the ``other'' 
box and including the country name.

Supplement No. 5 to Part 752--Instructions for Completing Form BXA-748P-
                           B End-User Appendix

    All information must be legibly typed within the lines for each 
block or box.
    Block 1: Application Control No. Insert the application control 
number from the relevant Form BXA-748P.
    Block 19: End-user. Enter each end-user's complete name, street 
address, city, country, postal code and telephone or facsimile number. 
P.O. Boxes are not acceptable.
    Block 21: Continuation of Specific End-Use Information. Include any 
additional information that may help BXA in reviewing and making a 
determination on your application, such as the special safeguards that 
will be implemented to prevent diversion.
    Block 24: Continuation of Additional Information. Enter additional 
data pertinent to the transaction as required by part 752 of the EAR.



PART 754--SHORT SUPPLY CONTROLS--Table of Contents




Sec.
754.1  Introduction.
754.2  Crude oil.
754.3  Petroleum products not including crude oil.
754.4  Unprocessed western red cedar.
754.5  Horses for export by sea.
754.6  Registration of U.S. agricultural commodities for exemption from 
          short supply limitations on export.
754.7  Petitions for the imposition of monitoring or controls on 
          recyclable metallic materials; Public hearings.

Supplement No. 1 to Part 754--Petroleum and Petroleum Products
Supplement No. 2 to Part 754--Unprocessed Western Red Cedar
Supplement No. 3 to Part 754--Statutory Provisions Dealing With Exports 
          of Crude Oil

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 10 
U.S.C. 7420; 10 U.S.C. 7430(e); Sec. 201, Pub. L. 104-58, 109 Stat. 557 
(30 U.S.C. 185(s)); 30 U.S.C. 185(u); 42 U.S.C. 6212; 43 U.S.C. 1354; 46 
U.S.C. app. 466c; E.O.

[[Page 316]]

12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 FR 
42767, August 17, 1995).

    Source: 61 FR 12844, Mar. 25, 1996, unless otherwise noted.



Sec. 754.1  Introduction.

    (a) Scope. In this part, references to the Export Administration 
Regulations (EAR) are references to 15 CFR chapter VII, subchapter C. 
This part implements the provisions of section 7, ``Short Supply 
Controls,'' of the Export Administration Act (EAA) and similar 
provisions in other laws that are not based on national security and 
foreign policy grounds.
    (b) Contents. Specifically, this part deals with the following:
    (1) It sets forth the license requirements and licensing policies 
for commodities that contain the symbol ``SS'' in the ``Reason for 
Control'' part of ``License Requirements'' section of the applicable 
Export Control Classification Number (ECCN) identified on the Commerce 
Control List (Supplement No. 1 to part 774 of the EAR). In appropriate 
cases, it also provides for License Exceptions from the short supply 
licensing requirements described in this part. The license requirements 
and policies that are described in this part cover the following:
    (i) Crude oil described by ECCN 1C981 (Crude petroleum, including 
reconstituted crude petroleum, tar sands, and crude shale oil listed in 
Supplement No. 1 to this part). For specific licensing requirements for 
these items, see Sec. 754.2 of this part.
    (ii) Petroleum products other than crude oil listed in Supplement 
No. 1 to this part, that were produced or derived from the Naval 
Petroleum Reserves (NPR) or became available for export as a result of 
an exchange of any NPR-produced or -derived commodities described by the 
following ECCNs. For specific licensing requirements for these items, 
see Sec. 754.3 of this part.
    (A) ECCN 1C980 (Inorganic chemicals);
    (B) ECCN 1C982 (Other petroleum products);
    (C) ECCN 1C983 (Natural gas liquids and other natural gas 
derivatives); and
    (D) ECCN 1C984 (Manufactured gas and synthetic natural gas (except 
when commingled with natural gas and thus subject to export 
authorization from the Department of Energy).
    (iii) Unprocessed western red cedar described by ECCN 1C988 (Western 
red cedar (thuja plicata) logs and timber, and rough, dressed and worked 
lumber containing wane listed in Supplement No. 2 to this part). For 
specific licensing requirements for these items, see Sec. 754.4 of this 
part.
    (iv) Horses exported by sea for slaughter covered by ECCN 0A980 
(Horses for export by sea). For specific licensing requirements, see 
Sec. 754.5 of this part.
    (2) It incorporates statutory provisions for the registration of 
U.S. agricultural commodities for exemption from short supply 
limitations on export (see Sec. 754.6 of this part); and
    (3) It incorporates statutory provisions for the filing and review 
of petitions seeking the imposition of monitoring or controls on 
recyclable metallic materials and procedures for related public hearings 
(see Sec. 754.7 of this part).
    (c) Reexports. Reexports of items controlled by this part require a 
license only if such a requirement is specifically set forth in this 
part or is set forth on the license authorizing the export from the 
United States.
    (d) Additional requirements for embargoed destinations. For exports 
involving embargoed destinations, you must satisfy the requirements of 
this part and also of part 746 of the EAR (Embargoes and Other Special 
Controls).



Sec. 754.2  Crude oil.

    (a) License requirement. As indicated by the SS notation in the 
``License Requirements'' section of ECCN 1C981 on the CCL (Supplement 
No. 1 to part 774 of the EAR), a license is required for the export of 
crude oil to all destinations, including Canada. See paragraph (h) of 
this section for a License Exception permitting the export of certain 
oil from the Strategic Petroleum Reserves, paragraph (i) of this section 
for a License Exception for certain shipments of samples, and paragraph 
(j) of this section for a License Exception for exports of oil 
transported by pipeline over right-of-way granted pursuant to

[[Page 317]]

section 203 of the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 
1652). ``Crude oil'' is defined as a mixture of hydrocarbons that 
existed in liquid phase in underground reservoirs and remains liquid at 
atmospheric pressure after passing through surface separating facilities 
and which has not been processed through a crude oil distillation tower. 
Included are reconstituted crude petroleum, and lease condensate and 
liquid hydrocarbons produced from tar sands, gilsonite, and oil shale. 
Drip gases are also included, but topped crude oil, residual oil, and 
other finished and unfinished oils are excluded.
    (b) License policy. (1) BXA will approve applications to export 
crude oil for the following kinds of transactions if BXA determines that 
the export is consistent with the specific requirements pertinent to 
that export:
    (i) Exports from Alaska's Cook Inlet (see paragraph (d) of this 
section);
    (ii) Exports to Canada for consumption or use therein (see paragraph 
(e) of this section);
    (iii) Exports in connection with refining or exchange of strategic 
petroleum reserve oil (see paragraph (f) of this section);
    (iv) Exports of heavy California crude oil up to an average volume 
not to exceed 25 MB/D (see paragraph (g) of this section);
    (v) Exports that are consistent with international agreements as 
described in the statutes listed in paragraph (c) of this section;
    (vi) Exports that are consistent with findings made by the President 
under an applicable statute, including the statutes described in 
paragraph (c) of this section; and
    (vii) Exports of foreign origin crude oil where, based on written 
documentation satisfactory to BXA, the exporter can demonstrate that the 
oil is not of U.S. origin and has not been commingled with oil of U.S. 
origin. See paragraph (h) of this section for the provisions of License 
Exception SPR permitting exports of certain crude oil from the Strategic 
Petroleum Reserve.
    (2) BXA will review other applications to export crude oil on a 
case-by-case basis and, except as provided in paragraph (c) of this 
section, generally will approve such applications if BXA determines that 
the proposed export is consistent with the national interest and the 
purposes of the Energy Policy and Conservation Act (EPCA). Although BXA 
will consider all applications for approval, generally, the following 
kinds of transactions will be among those that BXA will determine to be 
in the national interest and consistent with the purposes of EPCA.
    (i) The export is part of an overall transaction:
    (A) That will result directly in the importation into the United 
States of an equal or greater quantity and an equal or better quality of 
crude oil or of a quantity and quality of petroleum products listed in 
Supplement No. 1 to this part that is not less than the quantity and 
quality of commodities that would be derived from the refining of the 
crude oil for which an export license is sought;
    (B) That will take place only under contracts that may be terminated 
if the petroleum supplies of the United States are interrupted or 
seriously threatened; and
    (C) In which the applicant can demonstrate that, for compelling 
economic or technological reasons that are beyond the control of the 
applicant, the crude oil cannot reasonably be marketed in the United 
States.
    (ii) Exports involving temporary exports or exchanges that are 
consistent with the exceptions from the restrictions of the statutes 
listed in paragraph (c) of this section.
    (c) Additional statutory controls. (1) The following statutes 
provide controls on the export of domestically produced crude oil based 
on its place of origin or mode of transport. If such other statutory 
controls apply, an export may only be approved if the President makes 
the findings required by the applicable law.
    (i) Section 201 of Public Law 104-58, entitled ``Exports of Alaskan 
North Slope Oil,'' provides for exports of domestically produced crude 
oil transported by pipeline over rights-of-way granted pursuant to 
section 203 of the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 
1652) (``TAPS crude oil''). The President made a determination on April 
28, 1996.

[[Page 318]]

    (ii) The Mineral Leasing Act of 1920 restricts exports of 
domestically produced crude oil transported by pipeline over rights-of-
way granted pursuant to section 28(u) of that Act (30 U.S.C. 185(u)) 
(``MLA'').
    (iii) The Outer Continental Shelf Lands Act restricts exports of 
crude oil produced from the outer Continental Shelf (29 U.S.C. 1354) 
(``OCSLA'').
    (iv) The Naval Petroleum Reserves Production Act restricts the 
export of crude oil produced from the naval petroleum reserves (10 
U.S.C. 7430) (``NPRPA'').
    (2) Supplement No. 3 to this part describes the relevant statutory 
provisions. In cases where a particular statute applies, a Presidential 
finding is necessary before the export can be authorized. You should 
note that in certain cases it is possible that more than one statute 
could apply to a particular export of crude oil.
    (d) Exports from Alaska's Cook Inlet. The licensing policy is to 
approve applications for exports of crude oil that was derived from the 
state-owned submerged lands of Alaska's Cook Inlet and has not been, or 
will not be, transported by a pipeline over a federal right-of-way 
subject to the MLA or the Trans-Alaska Pipeline Authorization 
Act.1
---------------------------------------------------------------------------

    \1\ On November 6, 1985, the Secretary of Commerce determined that 
the export of crude oil derived from State waters in Alaska's Cook Inlet 
is consistent with the national interest and the purposes of the Energy 
Policy and Conservation Act.
---------------------------------------------------------------------------

    (e) Exports to Canada for consumption or use therein. (1) Except for 
TAPS crude oil, the licensing policy is to approve applications for 
exports of crude oil to Canada for consumption or use therein.
    (2) The licensing policy for TAPS crude oil is to approve 
applications for an average of no more than 50,000 barrels of oil per 
day for consumption or use in Canada, subject to the following 
procedures and conditions:
    (i) Any ocean transportation of the commodity will be made by 
vessels documented for United States coastwise trade under 46 U.S.C. 
12106. Only barge voyages between the State of Washington and Vancouver, 
British Columbia, and comparable barge movements across waters between 
the U.S. and Canada may be excluded from this requirement. The Bureau of 
Export Administration will determine, in consultation with the Maritime 
Administration, whether such transportation is ``ocean'' transportation; 
and
    (ii) Authorization to export TAPS crude oil will be granted on a 
quarterly basis. Applications will be accepted by BXA no earlier than 
two months prior to the beginning of the calendar quarter in question, 
but must be received no later than the 25th day of the second month 
preceding the calendar quarter. For example, for the calendar quarter 
beginning April 1 and ending June 30, applications will be accepted 
beginning February 1, but must be received no later than February 25.
    (iii) The quantity stated on each application must be the total 
number of barrels for the quarter, not a per-day rate. This quantity 
must not exceed 50,000 barrels times the number of calendar days in the 
quarter.
    (iv) Each application must include support documents providing 
evidence that the applicant has either:
    (A) Title to the quantity of barrels stated in the application; or
    (B) A contract to purchase the quantity of barrels stated in the 
application.
    (v) The quantity of barrels authorized on each license for export 
during the calendar quarter will be determined by the BXA as a prorated 
amount based on:
    (A) The quantity requested on each license application; and
    (B) The total number of barrels that may be exported by all license 
holders during the quarter (50,000 barrels per day multiplied by the 
number of calendar days during the quarter).
    (vi) Applicants may combine their licensed quantities for as many as 
four consecutive calendar quarters into one or more shipments, provided 
that the validity period of none of the affected licenses has expired.
    (vii) BXA will carry forward any portion of the 50,000 barrels per 
day quota that has not been allocated during a calendar quarter, except 
that no un-allocated portions will be carried over to a new calendar 
year. The un-allocated volume for a calendar quarter will be

[[Page 319]]

added, until expended, to the quotas available for each quarter through 
the end of the calendar year.
    (f) Refining or exchange of Strategic Petroleum Reserve Oil. (1) 
Exports of crude oil withdrawn from the Strategic Petroleum Reserve 
(SPR) will be approved if BXA, in consultation with the Department of 
Energy, determines that such exports will directly result in the 
importation into the United States of refined petroleum products that 
are needed in the United States and that otherwise would not be 
available for importation without the export of the crude oil from the 
SPR.
    (2) Licenses may be granted to export, for refining or exchange 
outside of the United States, SPR crude oil that will be sold and 
delivered, pursuant to a drawdown and distribution of the SPR, in 
connection with an arrangement for importing refined petroleum products 
into the United States.
    (3) BXA will approve license applications subject to the following 
conditions:
    (i) You must provide BXA evidence of the following:
    (A) A title to the quantity of barrels of SPR crude stated in the 
application; or
    (B) A contract to purchase, for importation, into the United States 
the quantity of barrels of SPR crude stated in the application.
    (ii) The following documentation must be submitted to BXA no later 
than fourteen days following the date that the refined petroleum 
products are imported in the U.S. in exchange for the export of SPR 
crude:
    (A) Evidence that the exporter of the SPR crude has title to or a 
contract to purchase refined petroleum product;
    (B) A copy of the shipping manifest that identifies the refined 
petroleum products; and
    (C) A copy of the entry documentation required by the U.S. Customs 
Service that show the refined petroleum products were imported into the 
United States, or a copy of the delivery receipt when the refined 
petroleum products are for delivery to the U.S. military outside of the 
United States.
    (4) You must complete both the export of the SPR crude and the 
import of the refined petroleum products no later than 30 days following 
the issuance of the export license, except in the case of delivery to 
the U.S. military outside of the United States, in which case the 
delivery of the refined petroleum products must be completed no later 
than the end of the term of the contract with the Department of Defense.
    (g) Exports of certain California crude oil. The export of 
California heavy crude oil having a gravity of 20.0 degrees API or 
lower, at an average volume not to exceed 25 MB/D, will be authorized as 
follows.
    (1) Applicants must submit their applications on Form BXA-748 to the 
following address: Office of Exporter Services, ATTN: Short Supply 
Program--Petroleum, Bureau of Export Administration, U.S. Department of 
Commerce, P.O. Box 273, Washington, DC 20044.
    (2) The quantity stated on each application must be the total number 
of barrels proposed to be exported under the license--not a per-day 
rate. This quantity must not exceed 25 percent of the annual authorized 
export quota. Potential applicants may inquire of BXA as to the amount 
of the annual authorized export quota available.
    (3) Each application shall be accompanied by a certification by the 
applicant that the California heavy crude oil:
    (i) Has a gravity of 20.0 degrees API or lower;
    (ii) Was produced within the state of California, including its 
submerged state lands;
    (iii) Was not produced or derived from a U.S. Naval Petroleum 
Reserve; and
    (iv) Was not produced from submerged lands of the U.S. Outer 
Continental Shelf.
    (4) Each license application must be based on an order, and be 
accompanied by documentary evidence of such an order (e.g., a letter of 
intent).
    (5) BXA will adhere to the following procedures for licensing 
exports of California heavy crude oil:
    (i) BXA will issue licenses for approved applications in the order 
in which the applications are received (date-time stamped upon receipt 
by

[[Page 320]]

BXA), with the total quantity authorized for any one license not to 
exceed 25 percent of the annual authorized volume of California heavy 
crude oil.
    (ii) BXA will approve only one application per month for each 
company and its affiliates.
    (iii) BXA will consider the following factors (among others) when 
determining what action should be taken on individual license 
applications:
    (A) The number of licenses to export California heavy crude oil that 
have been issued to the applicant or its affiliates during the then-
current calendar year;
    (B) The number of applications pending in BXA that have been 
submitted by applicants who have not previously been issued licenses 
under this section to export California heavy crude oil during the then-
current calendar year; and
    (C) The percentage of the total amount of California heavy crude oil 
authorized under other export licenses previously issued to the 
applicant pursuant to this section that has actually been exported by 
the applicant.
    (iv) BXA will approve applications contingent upon the licensee 
providing documentation meeting the requirements of both 
paragraphs(g)(5)(iv)(A) and (B) of this section prior to any export 
under the license:
    (A) Documentation showing that the applicant has or will acquire 
title to the quantity of barrels stated in the application. Such 
documentation shall be either:
    (1) An accepted contract or bill of sale for the quantity of barrels 
stated in the application; or
    (2) A contract to purchase the quantity of barrels stated in the 
application, which may be contingent upon issuance of an export license 
to the applicant.
    (B) Documentation showing that the applicant has a contract to 
export the quantity of barrels stated in the application. The contract 
may be contingent upon issuance of the export license to the applicant.
    (v) BXA will carry forward any portion of the 25 MB/D quota that has 
not been licensed, except that no unallocated portions will be carried 
forward more than 90 days into a new calendar year. Applications to 
export against any carry-forward must be filed with BXA by January 15 of 
the carry-forward year.
    (vi) BXA will return to the available authorized export quota any 
portion of the 25 MB/D per day quota that has been licensed, but not 
shipped, during the 90-day validity period of the license.
    (vii) BXA will not carry over to the next calendar year pending 
applications from the previous year.
    (6) License holders:
    (i) Have 90 calendar days from the date the license was issued to 
export the quantity of California heavy crude oil authorized on the 
license. Within 30 days of any export under the license, the exporter 
must provide BXA with a certified statement confirming the date and 
quantity of California heavy crude oil exported.
    (ii) Must submit to BXA, prior to any export under the license, the 
documentation required by paragraph (g)(5)(iv) of this section.
    (iii) May combine authorized quantities into one or more shipments, 
provided that the validity period of none of the affected licenses has 
expired.
    (iv) Are prohibited from transferring the license to another party 
without prior written authorization from BXA.
    (7) BXA will allow a 10 percent tolerance on the unshipped balance 
based upon the volume of barrels it has authorized. BXA will allow a 25 
percent shipping tolerance on the total dollar value of the license. See 
Sec. 750.11 of the EAR for an explanation of shipping tolerances.
    (h) License Exception for certain shipments from the Strategic 
Petroleum Reserves (SPR). Subject to the requirements set forth in this 
paragraph, License Exception SPR may be used to export without a license 
foreign origin crude oil imported and owned by a foreign government or 
its representative which is imported for storage in, and stored in, the 
United States Strategic Petroleum Reserves pursuant to an appropriate 
agreement with the U.S. Government or an agency thereof. If such foreign 
origin oil is commingled with other oil in the SPR, such export is 
authorized under License Exception SPR only if the crude oil being 
exported is

[[Page 321]]

of the same quantity and of comparable quality as the foreign origin 
crude oil that was imported for storage in the SPR and the Department of 
Energy certifies this fact to BXA.
    (1) The requirements and restrictions described in Secs. 740.1 and 
740.2 of the EAR that apply to all License Exceptions also apply to the 
use of License Exception SPR.
    (2) A person exporting crude oil pursuant to this License Exception 
must enter on any required Shipper's Export Declaration (SED) the letter 
code ``SS-SPR.''
    (i) License Exception for certain sample shipments. Subject to the 
requirements set forth in this paragraph, License Exception SS-SAMPLE 
may be used to export crude oil for analytic and testing purposes.
    (1) An exporter may ship up to 10 barrels of crude oil to any one 
end-user annually, up to an annual cumulative limit of 100 barrels per 
exporter.
    (2) The requirements and restrictions described in Secs. 740.1 and 
740.2 of the EAR that apply to all License Exceptions also apply to the 
use of License Exception SPR.
    (3) A person exporting crude oil pursuant to this License Exception 
must enter on any required Shipper's Export Declaration (SED) the letter 
code ``SS-SAMPLE''.
    (j) License Exception for exports of TAPS Crude Oil. (1) License 
Exception TAPS may be used to export oil transported over right-of-way 
granted pursuant to section 203 of the Trans-Alaska Pipeline 
Authorization Act (TAPS), provided the following conditions are met:
    (i) The TAPS oil is transported by a vessel documented under the 
laws of the United States and owned by a citizen of the United States 
(in accordance with section 2 of the Shipping Act, 1916 (46 U.S.C. app. 
802));
    (ii) All tankers involved in the TAPS export trade use the same 
route that they do for shipments to Hawaii until they reach a point 300 
miles due south of Cape Hinchinbrook Light and then turn toward Asian 
destinations. After reaching that point, tankers in the TAPS oil export 
trade must remain outside of the 200 nautical mile Exclusive Economic 
Zone, as defined in 16 U.S.C. 1802(6). Tankers returning from foreign 
ports to Valdez, Alaska must abide by the same restrictions, in reverse, 
on their return route. This condition shall not be construed to limit 
any statutory, treaty or Common Law rights and duties imposed upon and 
enjoyed by tankers in the TAPS oil export trade, including, but not 
limited to, force majeure and maritime search and rescue rules; and
    (iii) The owner or operator of a tanker exporting TAPS oil shall:
    (A) Adopt a mandatory program of deep water ballast exchange (i.e., 
at least 2,000 meters water depth). Exceptions can be made at the 
discretion of the captain only in order to ensure the safety of the 
vessel and crew. Records must be maintained in accordance with paragraph 
(j)(3) of this section.
    (B) Be equipped with satellite-based communications systems that 
will enable the Coast Guard independently to determine the tanker's 
location; and
    (C) Maintain a Critical Area Inspection Plan for each tanker in the 
TAPS oil export trade in accordance with the U.S. Coast Guard's 
Navigation and Inspection Circular No. 15-91 as amended, which shall 
include an annual internal survey of the vessel's cargo block tanks.
    (2) Shipper's Export Declaration. In addition to the requirements of 
paragraph (j)(1) of this section, for each export under License 
Exceptions TAPS, the exporter must file with BXA a Shipper's Export 
Declaration (SED) covering the export not later than 21 days after the 
export has occurred. The SED shall be sent to the following address: 
Manager, Short Supply Program, Department of Commerce, Office of 
Chemical and Biological Controls and Treaty Compliance, Bureau of Export 
Administration, Room 2075, Washington, D.C. 20230.
    (3) Recordkeeping requirements for deep water ballast exchange. (i) 
As required by paragraph (j)(1)(iii)(A) of this section, the master of 
each vessel carrying TAPS oil under the provisions of this section shall 
keep records that include the following information, and provide such 
information to the Captain of the Port (COTP), U.S. Coast Guard, upon 
request:

[[Page 322]]

    (A) The vessel's name, port of registry, and official number or call 
sign;
    (B) The name of the vessel's owner(s);
    (C) Whether ballast water is being carried;
    (D) The original location and salinity, if known, of ballast water 
taken on, before an exchange;
    (E) The location, date, and time of any ballast water exchange; and
    (F) The signature of the master attesting to the accuracy of the 
information provided and certifying compliance with the requirements of 
this paragraph.
    (ii) The COTP or other appropriate federal agency representatives 
may take samples of ballast water to assess the compliance with, and the 
effectiveness of, the requirements of paragraph (j)(3)(i) of this 
section.

[61 FR 12844, Mar. 25, 1996, as amended at 61 FR 27257, May 31, 1996]



Sec. 754.3  Petroleum products not including crude oil.

    (a) License requirement. As indicated by the letters ``SS'' in the 
``Reason for Control'' paragraph in the ``License Requirements'' section 
of ECCNs 1C980, 1C982, 1C983, and 1C984 on the CCL (Supplement No. 1 to 
part 774 of the EAR), a license is required to all destinations, 
including Canada, for the export of petroleum products, excluding crude 
oil, listed in Supplement No. 1 to this part, that were produced or 
derived from the Naval Petroleum Reserves (NPR) or became available for 
export as a result of an exchange of any NPR produced or derived 
commodities.
    (b) License policy. (1) Applications for the export of petroleum 
products listed in Supplement No. 1 to this part that were produced or 
derived from the Naval Petroleum Reserves, or that became available for 
export as a result of an exchange for a Naval Petroleum Reserves 
produced or derived commodity, other than crude oil, will be denied, 
unless the President makes a finding required by the Naval Petroleum 
Reserves Production Act (10 U.S.C. 7430).
    (2) Applications that involve temporary exports or exchanges 
excepted from that Act will be approved.



Sec. 754.4  Unprocessed western red cedar.

    (a) License requirement. As indicated by the letters ``SS'' in the 
``Reason for Control'' paragraph in the ``License Requirements'' section 
of ECCN 1C988 on the CCL (Supplement No. 1 to part 774 of the EAR), a 
license is required to all destinations, including Canada, for the 
export of unprocessed western red cedar covered by ECCN 1C988 (Western 
red cedar (thuja plicata) logs and timber, and rough, dressed and worked 
lumber containing wane listed in Supplement No. 2 to this part). See 
paragraph (c) of this section for License Exceptions for timber 
harvested from public lands in the State of Alaska, private lands, or 
Indian lands, and see paragraph (d) of this section for relevant 
definitions.
    (b) Licensing policy. (1) BXA will generally deny applications for 
licenses to export unprocessed western red cedar harvested from Federal 
or State lands under harvest contracts entered into after September 30, 
1979.
    (2) BXA will consider, on a case-by-case basis, applications for 
licenses to export unprocessed western red cedar harvested from Federal 
or State lands under harvest contracts entered into prior to October 1, 
1979.
    (3) BXA will approve license applications for unprocessed western 
red cedar timber harvested from public lands in Alaska, private lands, 
and Indian lands. Applications must be submitted in accordance with the 
procedures set forth in paragraph (a) of this section. See paragraph (c) 
of this section for the availability of a License Exception.
    (c) License Exception for western red cedar (WRC). (1) Subject to 
the requirements described in paragraph (c) of this section, License 
Exception WRC may be used to export without a license unprocessed 
western red cedar timber harvested from Federal, State and other public 
lands in Alaska, all private lands, and, lands held in trust for 
recognized Indian tribes by Federal or State agencies.
    (2) Exporters who use License Exception WRC must obtain and retain 
on file the following documents:
    (i) A statement by the exporter (or other appropriate documentation) 
indicating that the unprocessed western

[[Page 323]]

red cedar timber exported under this License Exception was not harvested 
from State or Federal lands outside the State of Alaska, and did not 
become available for export through substitution of commodities so 
harvested or produced. If the exporter did not harvest or produce the 
timber, the records or statement must identify the harvester or producer 
and must be accompanied by an identical statement from the harvester or 
producer. If any intermediate party or parties held title to the timber 
between harvesting and purchase, the exporter must also obtain such a 
statement, or equivalent documentation, from the intermediate party or 
parties and retain it on file.
    (ii) A certificate of inspection issued by a third party log scaling 
and grading organization, approved by the United States Forest Service, 
that:
    (A) Specifies the quantity in cubic meters or board feet, scribner 
rule, of unprocessed western red cedar timber to be exported; and
    (B) Lists each type of brand, tag, and/or paint marking that appears 
on any log or unprocessed lumber in the export shipment or, 
alternatively, on the logs from which the unprocessed timber was 
produced.
    (3) The requirements and restrictions described in Secs. 740.1 and 
740.2 of the EAR that apply to all License Exceptions also apply to the 
use of License Exception WRC.
    (4) A person exporting any item pursuant to this License Exception 
must enter on any required Shipper's Export Declaration (SED) the letter 
code ``SS-WRC''.
    (d) License Applications. (1) Applicants requesting to export 
unprocessed western red cedar must submit a properly completed Form BXA-
748P, Multipurpose License Form, other documents as may be required by 
BXA, and a signed statement from an authorized representative of the 
exporter, reading as follows:

    I, (Name) (Title) of (Exporter) HEREBY CERTIFY that to the best of 
my knowledge and belief the (Quantity) (cubic meters or board feed 
scribner) of unprocessed western red cedar timber that (Exporter) 
proposes to export was not harvested from State or Federal lands under 
contracts entered into after October 1, 1979,
_______________________________________________________________________
(Signature)
_______________________________________________________________________
(Date)

    (2) For Items [16] and [18] on Form BXA-748P, ``Various'' may be 
entered when there is more than one purchaser or ultimate consignee.
    (3) For each Form BXA-748P submitted, and for each export shipment 
made under a license, the exporter must assemble and retain for the 
period described in part 762 of the EAR, and produce or make available 
for inspection, the following:
    (i) A signed statement(s) by the harvester or producer, and each 
subsequent party having held title to the commodities, that the 
commodities in question were harvested under a contract to harvest 
unprocessed western red cedar from State or Federal lands, entered into 
before October 1, 1979; and
    (ii) A copy of the Shipper's Export Declaration.
    (4) A shipping tolerance of 5 percent in cubic feet or board feet 
scribner is allowed on the un-shipped balance of a commodity listed on a 
license. This tolerance applies only to the final quantity remaining un-
shipped on a license against which more than one shipment is made and 
not to the original quantity authorized by such license. See Sec. 750.11 
of the EAR for an explanation of shipping tolerances.
    (e) Definitions. When used in this section, the following terms have 
the meaning indicated:
    (1) Unprocessed western red cedar means western red cedar (thuja 
plicata) timber, logs, cants, flitches, and processed lumber containing 
wane on one or more sides, as defined in ECCN 1C988, that has not been 
processed into:
    (i) Lumber of American Lumber Standards Grades of Number 3 dimension 
or better, or Pacific Lumber Inspection Bureau Export R-List Grades of 
Number 3 common or better grades, with a maximum cross section of 2,000 
square centimeters (310 square inches) for any individual piece of 
processed western red cedar (WRC) being exported, regardless of grade;
    (ii) Chips, pulp, and pulp products;
    (iii) Veneer and plywood;
    (iv) Poles, posts, or pilings cut or treated with preservative for 
use as

[[Page 324]]

such and not intended to be further processed; and
    (v) Shakes and shingles.
    (2) Federal and State lands means Federal and State lands, excluding 
lands in the State of Alaska and lands held in trust by any Federal or 
State official or agency for a recognized Indian tribe or for any member 
of such tribe.
    (3) Contract harvester means any person who, on October 1, 1979, had 
an outstanding contractual commitment to harvest western red cedar 
timber from State and Federal lands and who can show by previous 
business practice or other means that the contractual commitment was 
made with the intent of exporting or selling for export in unprocessed 
form all or part of the commodities to be harvested.
    (4) Producer means any person engaged in a process that transforms 
an unprocessed western red cedar commodity (e.g., western red cedar 
timber) into another unprocessed western red cedar commodity (e.g., 
cants) primarily through a saw mill.



Sec. 754.5  Horses for export by sea.

    (a) License requirement. As indicated by the letters ``SS'' in the 
``Reason for Control'' paragraph of the ``License Requirements'' section 
of ECCN 0A980 on the CCL (Supplement No. 1 to part 774 of the EAR) a 
license is required for the export of horses exported by sea to all 
destinations, including Canada.
    (b) License policy. (1) License applications for the export of 
horses by sea for the purposes of slaughter will be denied.
    (2) Other license applications will be approved if BXA, in 
consultation with the Department of Agriculture, determines that the 
horses are not intended for slaughter. You must provide a statement in 
the additional information section of the Form BXA-748P, certifying that 
no horse under consignment is being exported for the purpose of 
slaughter.
    (3) Each application for export may cover only one consignment of 
horses.



Sec. 754.6  Registration of U.S. agricultural commodities for exemption from short supply limitations on export.

    (a) Scope. Under the provisions of section 7(g) of the Export 
Administration Act of 1979 (EAA), agricultural commodities of U.S. 
origin purchased by or for use in a foreign country and stored in the 
United States for export at a later date may be registered with BXA for 
exemption from any quantitative limitations on export that may 
subsequently be imposed under section 7 of the EAA for reasons of short 
supply.
    (b) Applications for registration. Applications to register 
agricultural commodities must be submitted by a person or firm subject 
to the jurisdiction of the United States who is acting as a duly 
authorized agent for the foreign purchaser.
    (c) Mailing address. Submit applications pursuant to the provisions 
of section 7(g) of the EAA to: Bureau of Export Administration, U.S. 
Department of Commerce, P.O. Box 273, Washington, D.C. 20230.



Sec. 754.7  Petitions for the imposition of monitoring or controls on recyclable metallic materials; Public hearings.

    (a) Scope. Section 7(c) of the Export Administration Act of 1979 
(EAA) provides for the filing and review of petitions seeking the 
imposition of monitoring or controls on recyclable metallic materials.
    (b) Eligibility for filing petitions. Any entity, including a trade 
association, firm or certified or recognized union or group of workers, 
which is representative of an industry or a substantial segment of an 
industry which processes metallic materials capable of being recycled 
with respect to which an increase in domestic prices or a domestic 
shortage, either of which results from increased exports, has or may 
have a significant adverse effect on the national economy or any sector 
thereof, may submit a written petition to BXA requesting the monitoring 
of exports, or the imposition of export controls, or both, with respect 
to such materials.

[[Page 325]]

    (c) Public hearings. The petitioner may also request a public 
hearing. Public hearings may also be requested by an entity, including a 
trade association, firm, or certified or recognized union or group of 
workers, which is representative of an industry or a substantial segment 
of an industry which processes, produces or exports the metallic 
materials which are the subject of a petition.
    (d) Mailing address. Submit petitions pursuant to section 7(c) of 
the EAA to: Bureau of Export Administration, U.S. Department of 
Commerce, P.O. Box 273, Washington, D.C. 20230.
     Supplement No. 1 to Part 754--Petroleum and Petroleum Products
    This supplement provides relevant Schedule B numbers and a commodity 
description of the items controlled by ECCNs 1C980, 1C981, 1C982, 1C983, 
and 1C984.

------------------------------------------------------------------------
     Schedule B No.                  Commodity description 1            
------------------------------------------------------------------------
                                Crude Oil                               
                                                                        
------------------------------------------------------------------------
2709.0710..............  Crude petroleum (including reconstituted crude 
                          petroleum), tar sands and crude shale oil.    
2710.0710..............  Petroleum, partly refined for further refining.
                                                                        
------------------------------------------------------------------------
                            Petroleum Products                          
                                                                        
------------------------------------------------------------------------
2804.29.0010...........  Helium.                                        
2804.10.0000...........  Hydrogen.                                      
2814.20.0000...........  Ammonia, aqueous.                              
2811.21.0000...........  Carbon dioxide and carbon monoxide.            
2710.00.0550...........  Distillate fuel oils, having a Saybolt         
                          Universal viscosity at 100  deg.F. of less    
                          than 45 seconds.                              
2710.00.1007...........  Distillate fuel oils (No. 4 type) having a     
                          Saybolt Universal viscosity at 100  deg.F. of 
                          45 seconds or more, but not more than 125     
                          seconds.                                      
2710.00.1050...........  Fuel oils, having a Saybolt Universal viscosity
                          at 100  deg.F. of more than 125 seconds.      
2711.11.0000...........  Natural gas, methane and mixtures thereof      
                          (including liquefied natural gas and synthetic
                          or substitute natural gas).2                  
2711.14.0000...........  Ethane with a minimum purity of 95 liquid      
                          volume percent.                               
2711.12.0000...........  Propane with a minimum purity of 90 liquid     
                          volume percent.                               
2711.13.0000...........  Butane with a minimum purity of 90 liquid      
                          volume percent.                               
2711.19.0000...........  Other natural gases (including mixtures),      
                          n.s.p.f. and manufactured gas.                
2710.00.1510...........  Gasoline, motor fuel (including aviation).     
2710.00.1520...........  Jet fuel, naphtha-type.                        
2710.00.1530...........  Jet fuel, kerosene-type.                       
2710.00.1550...........  Other motor fuel (including tractor fuel and   
                          stationary turbine fuel).                     
2710.00.2000...........  Kerosene derived from petroleum, shale oil,    
                          natural gas, or combinations thereof (except  
                          motor fuel).                                  
2710.00.2500...........  Naphthas derived from petroleum, shale oil,    
                          natural gas, or combinations thereof (except  
                          motor fuel).                                  
2710.00.5030...........  Mineral oil of medicinal grade derived from    
                          petroleum, shale oil or both.                 
3819.00.0000...........  Hydraulic fluids, including automatic          
                          transmission fluids.                          
2710.00.3010...........  Aviation engine lubricating oil, except jet    
                          engine lubricating oil.                       
2710.00.3020...........  Jet engine lubricating oil 475.4520 Automotive,
                          diesel, and marine engine lubricating oil.    
2710.00.3030...........  Turbine lubricating oil, including marine.     
2710.00.3040...........  Automotive gear oils.                          
2710.00.3050...........  Steam cylinder oils.                           
2710.00.5045...........  Insulating or transformer oils.                
2710.00.3070...........  Quenching or cutting oils.                     
2710.00.3080...........  Lubricating oils, n.s.p.f., except white       
                          mineral oil.                                  
2710.00.3700...........  Greases.                                       
2710.00................  Carbon black feedstock oil.                    
2712.10.0000...........  Petroleum jelly and petrolatum, all grades.    
2710.00.5040...........  White mineral oil, except medicinal grade.     
2710.00.5060...........  Other non-lubricating and non-fuel petroleum   
                          oils, n.s.p.f.                                
2814.10.0000...........  Ammonia, anhydrous.                            
2712.20.0000...........  Paraffin wax, crystalline, fully refined.      
2712.90.0000...........  Paraffin wax, crystalline, except fully        
                          refined.                                      
2712.90.0000...........  Paraffin wax, all others (including            
                          microcrystalline wax).                        
2517.30.0000...........  Paving mixtures, bituminous, based on asphalt  
                          and petroleum.                                
2713.12.0000...........  Petroleum coke, calcined.                      
2714...................  Petroleum asphalt.                             
2713.11.0000...........  Petroleum coke, except calcined.               
------------------------------------------------------------------------
1 The commodity descriptions provided in this supplement for the most   
  part reflect those found in the U.S. Department of Commerce, Bureau of
  the Census, (1990 Edition) Statistical Classification of Domestic and 
  Foreign Commodities Exported from the United States (1990 Ed., as     
  revised through Jan. 1994). In some instances the descriptions are    
  expanded or modified to ensure proper identification of products      
  subject to export restriction. The descriptions in this supplement,   
  rather than Schedule B Number, determine the commodity included in the
  definition of ``Petroleum'' under the Naval Petroleum Reserves        
  Production Act.                                                       

[[Page 326]]

                                                                        
2 Natural gas and liquefied natural gas (LNG), and synthetic natural gas
  commingled with natural gas (Schedule B Nos. 2711.11.0000,            
  2711.14.0000, and 2711.19.0000) require export authorization from the 
  U.S. Department of Energy.                                            

       Supplement No. 2 to Part 754--Unprocessed Western Red Cedar
    This supplement provides relevant Schedule B numbers and a commodity 
description of the items controlled by ECCN 1C988.

------------------------------------------------------------------------
  Schedule B No. 1 1     Commodity description      Unit of quantity 2  
------------------------------------------------------------------------
200.3516..............  Western red cedar        MBF                    
                         (Thuja plicata) logs                           
                         and timber.                                    
202.2820..............  Western red cedar        MBF                    
                         lumber; rough,                                 
                         containing wane.                               
202.2840..............  Western red cedar        MBF                    
                         lumber; dressed or                             
                         worked, containing                             
                         wane.                                          
------------------------------------------------------------------------
1 Schedule B Numbers are provided only as a guide to proper completion  
  of the Shipper's Export Declaration, Form No. 7525 V.                 
2 For export licensing purposes, report commodities on Form BXA-748P in 
  units of quantity indicated.                                          

Supplement No. 3 to Part 754--Statutory Provisions Dealing With Exports 
                              of Crude Oil

[The statutory material published in this supplement is for the 
information of the reader only. See the U.S. Code for the official text 
of this material.]

                            Public Law 104-58

              SEC. 201. EXPORTS OF ALASKAN NORTH SLOPE OIL.

    Section 28 of the Mineral Leasing Act (30 U.S.C. 185(s)) is amended 
by amending subsection(s) to read as follows:

                  ``EXPORTS OF ALASKAN NORTH SLOPE OIL

    (1) Subject to paragraphs (2) through (6) of this subsection and 
notwithstanding any other provision of this Act or any other provision 
of laws (including any regulation) applicable to the export of oil 
transported by pipeline over right-of-way granted pursuant to section 
203 of the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1652), 
such oil may be exported unless the President finds that exportation of 
this oil is not in the national interest. The President shall make his 
national interest determination within five months of the date of 
enactment of this subsection. In evaluating whether exports of this oil 
are in the national interest, the President shall at a minimum 
consider--
    (A) whether exports of this oil would diminish the total quantity or 
quality of petroleum available to the United States;
    (B) the results of an appropriate environmental review, including 
consideration of appropriate measures to mitigate any potential adverse 
effects of exports of this oil on the environment, which shall be 
completed within four months of the date of the enactment of this 
subsection; and
    (C) whether exports of this oil are likely to cause sustained 
material oil supply shortages or sustained oil prices significantly 
above world market levels that would cause sustained material adverse 
employment effects in the United States or that would cause substantial 
harm to consumers, including noncontiguous States and Pacific 
territories.
    If the President determines that exports of this oil are in the 
national interest, he may impose such terms and conditions (other than a 
volume limitation) as are necessary or appropriate to ensure that such 
exports are consistent with the national interest.
    (2) Except in the case of oil exported to a country with which the 
United States entered into a bilateral international oil supply 
agreement before November 26, 1979, or to a country pursuant to the 
International Emergency Oil Sharing Plan of the International Energy 
Agency, any oil transported by pipeline over right-of-way granted 
pursuant to section 203 of the Trans-Alaska Pipeline Authorization Act 
(43 U.S.C. 1652) shall, when exported, be transported by a vessel 
documented under the laws of the United States and owned by a citizen of 
the United States (as determined in accordance with section 2 of the 
Shipping Act, 1916 (46 U.S.C. App. 802)).
    (3) Nothing in this subsection shall restrict the authority of the 
President under the Constitution, the International Emergency Economic 
Powers Act (50 U.S.C. 1701 et seq.), the National Emergencies Act ( ) 
U.S.C. 1601 et seq.), or Part B of title II of the Energy Policy and 
Conservation Act (42 U.S.C. 6271-76) to prohibit exports.
    (4) The Secretary of Commerce shall issue any rules necessary for 
implementation of the President's national interest determination, 
including any licensing requirements and conditions, within 30 days of 
the date of such determination by the President. The Secretary of 
Commerce shall consult with the Secretary of Energy in administering the 
provisions of this subsection.
    (5) If the Secretary of Commerce finds that exporting oil under 
authority of this subsection has caused sustained material oil supply 
shortage or sustained oil prices significantly above world market levels 
and

[[Page 327]]

further finds that these supply shortages or price increases have caused 
or are likely to cause sustained material adverse employment effects in 
the United States, the Secretary of Commerce, in consultation with the 
Secretary of Energy, shall recommend, and the President may take, 
appropriate action concerning exports of this oil, which may include 
modifying or revoking authority to export such oil.
    (6) Administrative action under this subsection is not subject to 
sections 551 and 553 through 559 of title 5, United States Code.

                        MINERAL LANDS LEASING ACT

                            30 U.S.C. 185(u)

                          Limitations on Export

    Any domestically produced crude oil transported by pipeline over 
rights-of-way granted pursuant to this section, except such crude oil 
which is either exchanged in similar quantity for convenience or 
increased efficiency of transportation with persons or the government of 
an adjacent foreign state, or which is temporarily exported for 
convenience or increased efficiency of transportation across parts of an 
adjacent foreign state and reenters the United States, shall be subject 
to all of the limitations and licensing requirements of the Export 
Administration Act of 1979 (50 U.S.C. App. 2401 and following) and, in 
addition, before any crude oil subject this section may be exported 
under the limitations and licensing requirements and penalty and 
enforcement provisions of the Export Administration Act of 1979 the 
President must make and publish an express finding that such exports 
will not diminish the total quantity or quality of petroleum available 
to the United States, and are in the national interest and are in accord 
with the provisions of the Export Administration Act of 1979: Provided, 
That the President shall submit reports to the Congress containing 
findings made under this section, and after the date of receipt of such 
report Congress shall have a period of sixty calendar days, thirty days 
of which Congress must have been in session, to consider whether exports 
under the terms of this section are in the national interest. If the 
Congress within this time period passes a concurrent resolution of 
disapproval stating disagreement with the President's finding concerning 
the national interest, further exports made pursuant to the 
aforementioned Presidential finding shall cease.

                 NAVAL PETROLEUM RESERVES PRODUCTION ACT

                             10 Sec. 7430(e)

    Any petroleum produced from the naval petroleum reserves, except 
such petroleum which is either exchanged in similar quantities for 
convenience or increased efficiency of transportation with persons or 
the government of an adjacent foreign state, or which is temporarily 
exported for convenience or increased efficiency of transportation 
across parts of an adjacent foreign state and reenters the United 
States, shall be subject to all of the limitations and licensing 
requirements of the Export Administration Act of 1979 (50 U.S.C. App. 
2401 et seq.) and, in addition, before any petroleum subject to this 
section may be exported under the limitations and licensing requirement 
and penalty and enforcement provisions of the Export Administration Act 
of 1979, the President must make and publish an express finding that 
such exports will not diminish the total quality or quantity of 
petroleum available to the United States and that such exports are in 
the national interest and are in accord with the Export Administration 
Act of 1979.

                    OUTER CONTINENTAL SHELF LANDS ACT

                             43 U.S.C. 1354

    (a) Application of Export Administration provisions.
    Except as provided in subsection (d) of this section, any oil or gas 
produced from the outer Continental Shelf shall be subject to the 
requirements and provisions of the Export Administration Act of 1969. 
Note that the Export Administration Act of 1969, referred to in 
paragraphs (a) and (b) of the Supplement, terminated on September 30, 
1979, pursuant to the terms of that Act.
    (b) Condition precedent to exportation; express finding by President 
of no increase in reliance on imported oil or gas.
    Before any oil or gas subject to this section may be exported under 
the requirements and provisions of the Export Administration Act of 
1969, the President shall make and publish an express finding that such 
exports will not increase reliance on imported oil or gas, are in the 
national interest, and are in accord with the provisions of the Export 
Administration Act of 1969.
    (c) Report of findings by President to Congress; joint resolution of 
disagreement with findings of President.
    The President shall submit reports to Congress containing findings 
made under this section, and after the date of receipt of such reports 
Congress shall have a period of sixty calendar days, thirty days of 
which Congress must have been in session, to consider whether export 
under the terms of this section are in the national interest. If the 
Congress within such time period passes a concurrent resolution of 
disapproval stating disagreement with the President's finding concerning 
the national interest, further exports made pursuant to such 
Presidential findings shall cease.

[[Page 328]]

    (d) Exchange or temporary exportation of oil and gas for convenience 
or efficiency of transportation.
    The provisions of this section shall not apply to any oil or gas 
which is either exchanged in similar quantity for convenience or 
increase efficiency of transportation with persons or the government of 
a foreign state, or which is temporarily exported for convenience or 
increased efficiency of transportation across parts of an adjacent 
foreign state and reenters the United States, or which is exchanged or 
exported pursuant to an existing international agreement.



PART 756--APPEALS--Table of Contents




Sec.
756.1  Introduction.
756.2  Appeal from an administrative action.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 FR 
42767, August 17, 1995).



Sec. 756.1  Introduction.

    (a) Scope. This part 756 describes the procedures applicable to 
appeals from administrative actions taken under the Export 
Administration Act (EAA) or the Export Administration Regulations (EAR). 
(In this part, references to the EAR are references to 15 CFR chapter 
VII, subchapter C). Any person directly and adversely affected by an 
administrative action taken by the Bureau of Export Administration (BXA) 
may appeal to the Under Secretary for reconsideration of that 
administration action. The following types of administrative actions are 
not subject to the appeals procedures described in this part 756:
    (1) Issuance, amendment, revocation, or appeal of a regulation. 
(These requests may be submitted to BXA at any time.)
    (2) Denial or probation orders, civil penalties, sanctions, or other 
actions under parts 764 and 766 of the EAR.
    (b) Definitions. [Reserved]



Sec. 756.2  Appeal from an administrative action.

    (a) Review and appeal officials. The Under Secretary may delegate to 
the Deputy Under Secretary for Export Administration or to another BXA 
official the authority to review and decide the appeal. In addition, the 
Under Secretary may designate any BXA official to be an appeals 
coordinator to assist in the review and processing of an appeal under 
this part. The responsibilities of an appeals coordinator may include 
presiding over informal hearings.
    (b) Appeal procedures--(1) Filing. An appeal under this part must be 
received by the Under Secretary for Export Administration, Bureau of 
Export Administration, U.S. Department of Commerce, Room H-3886C, 14th 
Street and Pennsylvania Avenue, N.W., Washington, DC 20230, not later 
than 45 days after the date appearing on the written notice of 
administrative action.
    (2) Content of appeal. The appeal must include a full written 
statement in support of appellant's position. The appeal must include a 
precise statement of why the appellant believes the administrative 
action has a direct and adverse effect and should be reversed or 
modified. The Under Secretary may request additional information that 
would be helpful in resolving the appeal, and may accept additional 
submissions. The Under Secretary will not ordinarily accept any 
submission filed more than 30 days after the filing of the appeal or of 
any requested submission.
    (3) Request for informal hearing. In addition to the written 
statement submitted in support of an appeal, an appellant may request, 
in writing, at the time an appeal is filed, an opportunity for an 
informal hearing. The Under Secretary may grant or deny a request for an 
informal hearing. Any hearings will be held in the District of Columbia 
unless the Under Secretary determines, based upon good cause shown, that 
another location would be better.
    (4) Informal hearing procedures--(i) Presentations. The Under 
Secretary shall provide an opportunity for the appellant to make an oral 
presentation based on the materials previously submitted by the 
appellant or made available by the Department in connection with the 
administrative action. The Under Secretary may require that any facts in 
controversy be covered by an affidavit or testimony given under oath or 
affirmation.
    (ii) Evidence. The rules of evidence prevailing in courts of law do 
not apply, and all evidentiary material deemed by the Under Secretary to 
be

[[Page 329]]

relevant and material to the proceeding, and not unduly repetitious, 
will be received and given appropriate weight.
    (iii) Procedural questions. The Under Secretary has the authority to 
limit the number of people attending the hearing, to impose any time or 
other limitations deemed reasonable, and to determine all procedural 
questions.
    (iv) Transcript. A transcript of an informal hearing shall not be 
made, unless the Under Secretary determines that the national interest 
or other good cause warrants it, or the appellant requests a transcript. 
If the appellant requests a transcript, the appellant will be 
responsible for paying all expenses related to production of the 
transcript.
    (v) Report. When the Under Secretary designates another BXA official 
to conduct an informal hearing, that official will submit a written 
report containing a summary of the hearing and recommended action to the 
Under Secretary.
    (c) Decisions--(1) Determination of appeals. In addition to the 
documents specifically submitted in connection with the appeal, the 
Under Secretary shall consider any recommendations, reports, or relevant 
documents available to BXA in determining the appeal, but shall not be 
bound by any such recommendation, nor prevented from considering any 
other information, or consulting with any other person or groups, in 
making a determination. The Under Secretary may adopt any other 
procedures deemed necessary and reasonable for considering an appeal. 
The Under Secretary shall decide an appeal within a reasonable time 
after receipt of the appeal. The decision shall be issued to the 
appellant in writing and contain a statement of the reasons for the 
action.
    (2) Effect of the determination. The decision of the Under Secretary 
shall be final.
    (d) Effect of appeal. Acceptance and consideration of an appeal 
shall not affect any administrative action, pending or in effect, unless 
the Under Secretary, upon request by the appellant and with opportunity 
for response, grants a stay.



PART 758--EXPORT CLEARANCE REQUIREMENTS--Table of Contents




Sec.
758.1  Export clearance requirements.
758.2  Use of export license.
758.3  Shipper's Export Declaration (SED).
758.4  Conformity of documents for shipments under export licenses.
758.5  General destination control requirements.
758.6  Destination control statement.
758.7  Authority of the Office of Export Enforcement, the Bureau of 
          Export Administration, Customs offices and Postmasters in 
          clearing shipments.
758.8  Return or unloading of cargo at direction of BXA, the Office of 
          Export Enforcement or Customs Service.
758.9  Other applicable laws and regulations.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 FR 
42767, August 17, 1995).

    Source: 61 FR 12852, Mar. 25, 1996, unless otherwise noted.



Sec. 758.1  Export clearance requirements.

    In this part, references to the EAR are references to 15 CFR chapter 
VII, subchapter C.
    (a) Responsibility of licensee, exporter and agent. (1) If you are 
issued a BXA license, or you rely on a License Exception described in 
part 740 of the EAR, you are responsible for the proper use of that 
license or License Exception and for the performance of all of its terms 
and conditions.
    (2) If you export without either a license issued by BXA or a 
License Exception, you are responsible for determining that the 
transaction is outside the scope of the EAR or the export is designated 
as ``No License Required'' as described in paragraph (a)(3) of this 
section.
    (3)(i) ``No License Required''. Items that are listed on the 
Commerce Control List (CCL) (Supplement No. 1 to part 774 of the EAR) 
but that do not require a license by reason of the Country Chart 
contained in Supplement 1 to part 738 of the EAR, and items designated 
EAR99 (See Sec. 734.3(c) of the EAR entitled ``Scope of the EAR'') must 
be designated as ``NLR'', or ``no license required'', on your shipping 
documents in accordance with the provisions of this part.

[[Page 330]]

    (ii) NLR notation. Entering the symbol NLR is a representation to 
the U.S. Government that the items being exported are listed on the CCL 
but do not require a license by reason of the Country Chart or that they 
are within the scope of EAR99 (See Sec. 734.3(c) of the EAR entitled 
``Scope of the EAR''); that they do not require a license under General 
Prohibitions One (Exports and Reexports), Two (Parts and Components 
Reexports), or Three (Foreign-produced Direct Product Reexports); that 
General Prohibitions Four through Ten do not apply to the given export, 
reexport, or other activity; and that the items are subject to the EAR.
    (4) License Exception symbol. Entering a License Exception symbol on 
an export control document is a representation to the U.S. Government 
that the transaction meets all of the terms and conditions of the 
License Exception cited. (See part 740 of the EAR for details regarding 
License Exceptions.)
    (5) Software and technology not subject to the EAR. If you are 
exporting software or technology that is outside the scope of the EAR as 
described in Secs. 734.7 through 734.11 of the EAR, you may use the 
symbol TSPA. Use of this symbol is optional; however, if you enter it on 
an export control document, you are making a representation to the U.S. 
Government that the technology or software is outside the scope of the 
EAR.
    (b) Forwarding agent--(1) Authorizing a forwarding agent. A 
forwarding agent is a person the exporter authorizes to perform services 
that facilitate the export described on the Shipper's Export Declaration 
(SED). The agent must be authorized to act on behalf of the exporter 
either for the specific transaction for which the agent is submitting 
the SED or under a general power of attorney. The Foreign Trade 
Statistics Regulations of the Bureau of the Census (15 CFR part 30) 
provide the specific requirements for obtaining authorization as a 
forwarding agent.
    (2) Forwarding agent as licensee. If the forwarding agent is 
appointed at the suggestion of a foreign buyer, the seller may insist 
that the agent apply for the export license. See Sec. 748.4(a)(1) of the 
EAR which defines parties to a transaction.
    (3) Record and proof of agent's authority. The power-of-attorney or 
other authorization from the exporter must be retained on file in the 
forwarding agent's office while the authorization is in force and for a 
period of five years after the last action taken by the forwarding agent 
under the authority. During this retention period, the forwarding agent 
must make its delegation of authority from the exporter available for 
inspection on demand, in accordance with the provisions of Sec. 762.6 of 
the EAR. This recordkeeping and inspection requirement also applies to 
any redelegation of the forwarding agent's authority and to any person 
to whom the forwarding agent redelegates its authority. (For further 
recordkeeping requirements see part 762 of the EAR).
    (c) Responsibility for compliance. Acting through a forwarding 
agent, or other agent or delegation or redelegation of authority, does 
not relieve anyone of responsibility for compliance with the EAR. 
Forwarding agents, carriers and others who participate in transactions 
that are subject to the EAR are also responsible for complying with the 
EAR.
    (d) Exports by U.S. Mail1--(1) Exports made under a license issued 
by BXA. Before making an export by U.S. Mail that is authorized by a 
license issued by BXA, you must enter the license number on the address 
side of the parcel and submit a properly executed SED to the post office 
at the place of mailing, when required by the regulations in this part 
and/or the Foreign Trade Statistics Regulations of the U.S. Bureau of 
the Census. 1
---------------------------------------------------------------------------

    \1\ The Shipper's Export Declaration (U.S. Department of Commerce 
form 7525-V) may be purchased from the Superintendent of Documents, U.S. 
Government Printing Office, Washington, DC 20402, or it may be privately 
printed. Form 7525-V-Alt (Intermodal), must be privately printed. 
Privately printed forms must strictly conform to the official form in 
all respects. Samples of these forms may be obtained from the Bureau of 
the Census, Washington, DC 20233, local Customs offices, and the U.S. 
Department of Commerce District Offices.
---------------------------------------------------------------------------

    (2) Shipments without a license. The requirements of this paragraph 
apply whenever you export items that do not require a license under the 
EAR. These

[[Page 331]]

requirements apply regardless of whether your transaction does not 
require a license because the item you are going to ship is encompassed 
with EAR99 (See Sec. 734.3(c) of the EAR entitled ``Scope of the EAR''), 
because the item, although on the list, does not require a license to be 
exported to the destination to which you intend to ship or because the 
transaction qualifies for a License Exception as described in part 740 
of the EAR.
    (i) Shipments to Canada for consumption therein. An SED is not 
required for exports of items to Canada if the items are for consumption 
in Canada and the export transaction does not require a license from 
BXA. Note that if the item you are exporting to Canada is controlled by 
another government agency, the regulations of that agency may require 
you to file a SED.
    (ii) Shipments to Puerto Rico or U.S. territories or possessions. 
Exports of items to Puerto Rico or the U.S. territories or possessions 
do not require a license issued by BXA. However, the regulations of the 
Census Bureau (15 CFR part 30) may still require you to file a SED.
    (iii) Shipments valued over $500. When mailing an item from one 
business concern to another where the total value of the items being 
shipped exceeds $500, you must present an executed SED to the post 
office at the place of mailing unless the EAR or the Bureau of the 
Census Foreign Trade Statistics Regulations specifically provide an 
exception to this requirement. If either the exporter or recipient is 
not a business concern, no SED is required.
    (iv) Designation on SED and/or parcel. If you are exporting an item 
that is encompassed within EAR99 (See Sec. 734.3(c) of the EAR entitled 
``Scope of the EAR''), or one that is listed on the CCL but no license 
is required to the destination to which you are shipping, or you are 
exporting pursuant to a License Exception, as described in part 740 of 
the EAR, you must enter the appropriate symbol indicating the absence of 
a license requirement either NLR, meaning ``No License Required'' or the 
applicable License Exception symbol, on the SED and on the address side 
of the parcel along with the phrase ``Export License Not Required.'' If 
your transaction is one for which you are not required to file a SED, 
you must enter the appropriate symbol NLR, meaning no license required 
or of the applicable License Exception on the address side of the parcel 
along with the phrase ``Export License Not Required.'' If you are 
exporting technology or software that is outside the scope of the EAR as 
described in Sec. 734.7 through 734.11 you may enter the symbol TSPA.
    (A) By entering the symbol NLR you are representing to the U.S. 
Government that the items you are exporting are listed on the CCL (See 
Supplement No. 1 to part 774 of the EAR) but do not require a license by 
reason of the Country Chart (Supplement No. 1 to part 738 of the EAR) or 
because they are encompassed within the EAR99 (See Sec. 734.3(c) of the 
EAR entitled ``Scope of the EAR''); that they do not require a license 
under General Prohibitions One (Exports and reexports of controlled 
items to listed countries), Two (Parts and Components Reexports), or 
Three (Foreign Produced Direct Product Reexports); that General 
Prohibitions Four through Ten do not apply to the given export, 
reexport, or other activity; and that the item is subject to the EAR.
    (B) By entering a License Exception symbol, you are representing to 
the U.S. Government that your transaction meets all of the terms and 
conditions of the License Exception you are using. (See part 740 of the 
EAR for details regarding License Exceptions).
    (C) By entering the symbol TSPA you are representing to the U.S. 
Government that the technology or software you are exporting is outside 
the scope of the EAR.
    (v) Gift parcels. If you are sending a gift parcel pursuant to the 
requirements of Sec. 746.16 of the EAR, you must enter the phrase 
``Gift--export license not required'' on any customs declaration 
documents and on the address side of the parcel.
    (vi) If you are exporting software or technology, the export of 
which is authorized under the License Exceptions in Sec. 740.6 or 
Sec. 740.12 of the EAR, you do not need to make any notation on the 
package. If you are exporting software

[[Page 332]]

or technology that is outside the scope of the EAR, check to see if any 
other agency's regulations require specific markings on the package.
    (3) When you enter any of the symbols or phrases referred to in 
paragraph (d) of this section on the documents or packages, you are 
certifying to the post office and to BXA that you are exporting the 
package in compliance with all of the terms and provisions of an 
applicable License Exception or other authority to export.
    (e) Exports by means other than U.S. Mail. (1) When SEDs are 
required to be submitted, the exporter or the exporter's agent must 
present a duly executed SED to the exporting carrier before the vessel, 
aircraft, or overland transport depart.
    (i) Exemptions to SED. A SED is not required for:
    (A) Any shipment, other than a shipment made under a license issued 
by BXA, to any country in Country Group B (See Supplement No. 1 to part 
740 of the EAR) or to the People's Republic of China if the shipment is 
valued at $2,500 or less per Schedule B Number. The schedule B number of 
an item is that shown in the current edition of Schedule B, Statistical 
Classification of Domestic and Foreign Commodities Exported from the 
United States. In this Sec. 758.1(e), ``shipment'' means all items 
classified under a single Schedule B Number, shipped on the same 
carrier, from one exporter to one importer. The Foreign Trade Statistics 
Regulations of the Bureau of the Census (15 CFR part 30) shall govern 
the valuation of items when determining whether a shipment meets the 
$2,500 threshold of this Sec. 758.1(e)(1)(i)(A).
    (B) Any shipment reported under the provisions of the Monthly 
Reporting Procedure (Sec. 758.3(o) of this part); or
    (C) Any shipment made under any other exception to the SED 
requirements found in Subpart D of the Bureau of the Census' Foreign 
Trade Statistics Regulations. See Supplement No. 1 to this part 758.)
    (ii) Exceptions from SED requirements. (A) Statement on shipping 
documents. If you are exempt by paragraph (e)(1) of this section from 
the requirement of filing a SED, the Bureau of the Census Foreign Trade 
Statistics Regulations (FTSR) (15 CFR 30.50), require you to make a 
statement on the bill of lading, air waybill, or other loading document 
describing the basis for the exemption and referencing the specific 
section of the FTSR where the exemption is provided, unless the 
exemption is based on value and destination. If the exemption is based 
on the value and destination of your shipment, you must state the basis 
for the exemption, but you do not have to cite a reference to the 
specific section of the FTSR containing the exemption.
    (B) Monthly reporting procedures. (1) All forwarders or brokers who 
use the monthly reporting procedures described in FTSR Sec. 30.39 (15 
CFR 30.39) on behalf of exporters who are not themselves exempt from the 
individual filing requirement must also include on the bill of lading, 
air waybill (including house air waybill), or other loading document 
either the number of and expiration date of an export license issued by 
BXA, or the appropriate symbol indicating the inapplicability of an 
export license requirement (either NLR, meaning ``No License Required'' 
or of the applicable License Exception, from part 740 of the EAR).
    (2) The notation required by paragraph (e)(1)(ii)(B)(1) of this 
section applies to any bill of lading or other loading document, 
including one issued by a consolidator (indirect carrier) for an export 
included in a consolidated shipment. However, this requirement does not 
apply to a ``master'' bill of lading or other loading document issued by 
a carrier to cover a consolidated shipment. The bill of lading or other 
loading document must be available for inspection along with the goods 
or data prior to lading on the carrier.
    (2) Export carrier SED information. The exporting carrier, or if 
none is utilized, the exporter or agent is responsible for the accuracy 
of the following items of information (where required) on the SED:
    (i) Name of carrier (including flag of vessel),
    (ii) U.S. Customs port of export,
    (iii) Method of transportation,
    (iv) Foreign port of unloading,
    (v) Bill of lading or air waybill number, and
    (vi) Whether or not containerized.

[[Page 333]]

    (3) Exports not requiring a license. Even if your shipment does not 
require a license from BXA, it may still require a SED. Before shipping, 
check the Bureau of the Census Foreign Trade Statistics Regulations for 
the complete SED requirements.
    (f) Shipments transiting Canada en route to other countries--(1) 
Shipments moving under individual SED. When an export to a foreign 
country is made in transit through Canada, and the shipment is one for 
which an individual SED is required by this part 758, the U.S. exporter 
must submit to the Canadian Customs authorities at the Canadian port of 
entry a copy of the U.S. SED, Form 7525-V, certified by the exporter as 
``A True Copy'' of the original SED.
    (2) Shipments for which individual SED are not required. When an 
export to a foreign country is made in transit through Canada, and the 
shipment is one for which an individual SED is not required because:
    (i) The forwarder or broker is authorized to report export 
information to Census by means other than an individual SED; or
    (ii) The shipment qualifies for a specific exemption (listed in 
Subpart D of the Census Bureau Foreign Trade Statistics Regulations), 
the forwarder or broker must include the number of and expiration date 
of the license issued by BXA, or the appropriate symbol indicating the 
inapplicability of an export license requirement (either NLR, meaning 
``No License Required'' of the applicable License Exception from part 
740 of the EAR on the bill of lading or other loading document as 
directed in paragraph (e)(2) of this section). The bill of lading or 
other loading document properly annotated with respect to the FTSR SED 
exemption or exception, along with the license authorization, when 
required, must be displayed to the Canadian Customs authorities at the 
Canadian port of entry and a copy provided, if requested by the Canadian 
authorities.

[61 FR 12852, Mar. 25, 1996, as amended at 61 FR 64285, Dec. 4, 1996]



Sec. 758.2  Use of export license.

    (a) License valid for shipment from any port. A license issued by 
BXA authorizes exports from the United States from any U.S. port of 
export unless the license notes otherwise. Items that leave the United 
States at one port, cross adjacent foreign territory, and reenter the 
United States at another port before final export to a foreign country 
will be treated as an export from the last U.S. port of export.
    (b) Shipments against expiring license. (1) Any item that has not 
departed from the last U.S. port of export by midnight of the expiration 
date of the license may not be exported under that license unless the 
shipment meets the requirements of paragraph (b)(1)(i) or (ii) of this 
section.
    (i) BXA grants an extension; or
    (ii) Prior to midnight of the expiration date of the license, the 
items:
    (A) Were laden aboard the vessel; or
    (B) Were located on a pier ready for loading and not for storage, 
and were booked for a vessel that was at the pier ready for loading; or
    (2) When the vessel is expected to be available at the pier for 
loading before the license expires, but exceptional and unforeseen 
circumstances delay it, the items may be exported without an extension 
of the license, if in the judgment of the U.S. Customs Service or BXA, 
undue hardship would otherwise result.
    (c) Reshipment of undelivered items. If the consignee does not 
receive an export made under a license because the carrier failed to 
deliver it, the exporter may reship the same or an identical item 
subject to the same limitations as to quantity or value as described on 
the license to the same consignee and destination under the same 
license. Before reshipping, the exporter must submit to the OEXS 
satisfactory evidence of the original export and of the delivery 
failure, together with a satisfactory explanation of the delivery 
failure. If an item is to be reshipped to any person other than the 
original consignee, the shipment is deemed to be a new export and is 
subject to all current EAR regarding the specific item and destination.

[[Page 334]]



Sec. 758.3  Shipper's Export Declaration (SED).

    (a) SED presentation requirement. Both the Foreign Trade Statistics 
Regulations of the Census Bureau (15 CFR part 30) and these Export 
Administration Regulations require that SED's be submitted to the U.S. 
Government. There are a few exceptions to this rule, but if you are 
required to submit a SED you must prepare it in accordance with the 
rules of the Foreign Trade Statistics Regulations (FTSR) and present the 
number of copies specified in the FTSR at the port of export.
    (b) SED is a statement to the U.S. Government. Your SED is a 
statement to the U.S. Government in which you assert that all of the 
information shown on the SED is true. You may execute and submit the SED 
only if you are the exporter or the duly authorized forwarding agent of 
an exporter.
    (c) Limitation on time when SED may be used. No one may use a SED to 
export, or facilitate or effect an export, after the expiration of the 
applicable license or after the termination of the applicable License 
Exception or provisions of the EAR that authorize export without a 
license, except as provided in Sec. 750.7(f) (License validity period) 
of the EAR and Sec. 758.2(b) (Shipments against expiring license) of 
this part.
    (d) Additional copies of the SED. You are required to submit 
additional copies of the SED when:
    (1) BXA or one of its component offices asks you to send it copies 
of the SED for exports:
    (i) Authorized by a license (see paragraph (l) of this section);
    (ii) Authorized by a Special Comprehensive License (see 
Sec. 752.16(a)(5) of the EAR; or
    (iii) The items are controlled for short supply reasons (see part 
754 of the EAR); or
    (iv) Required by Sec. 758.1(f) (shipments transiting Canada) of this 
part.
    (2) You are required under the provisions of Sec. 754.2(j)(2) of the 
EAR.
    (e) Statements on SED. Whenever a SED is presented to a carrier, a 
customs office, or a postmaster, the exporter represents that:
    (1) All statements and information on the SED have been furnished by 
the exporter or on the exporter's behalf to effect an export under the 
provisions of the EAR;
    (2) Export of the items described on the SED is authorized under the 
``No License Required'' provisions of the EAR as described in 
Sec. 758.1(a) of this part, a License Exception described in part 740 of 
the EAR or the license identified on the SED;
    (3) Statements contained on the SED are consistent with the contents 
of the license or the terms, provisions, and conditions of the 
applicable License Exception or of the applicable ``No License 
Required'' provisions of the EAR as described in Sec. 758.1(a) of this 
part; and
    (4) All other terms, provisions, and conditions of the EAR 
applicable to the export have been met.
    (f) Items that may be listed on the same SED--(1) General. Except as 
described in paragraph (f)(2) of this section, more than one item may be 
listed on the same SED provided they are contained in one shipment on 
board a single carrier and are going from the same exporter to the same 
consignee. Even if some of the items are being shipped under authority 
of a license and others under a License Exception or the ``No License 
Required'' provisions of the EAR (as described in Sec. 758.1(a) of this 
part), they may still be shown on one SED. For the second and subsequent 
authorizations used, the applicable license number and expiration date, 
License Exception symbol, or the ``No License Required'' symbol (NLR) 
must be shown along with the descriptions (including quantity, if 
required, Schedule B Number, and value) to which each authorization 
applies, in the designated spaces on a separate SED Continuation Sheet. 
The following apply for notations made on SED:
    (i) Entering the license number and expiration date is a 
representation to the U.S. Government that the transaction is authorized 
by the license cited.
    (ii) Entering a License Exception symbol, or ``NLR'' is a 
representation to the U.S. Government that the shipment meets one of the 
applicable provisions of paragraph (a)(3) of Sec. 758.1 of this part.
    (2) Exception. Separate SED's must be prepared and presented for 
each vehicle

[[Page 335]]

when more than one vehicle is used to make the shipment. Customs 
Directors may waive this requirement if a shipment is made under a 
single bill of lading or other loading document and all the items listed 
on the SED are cleared simultaneously.
    (g) Schedule B number and item description--(1) Schedule B number. 
You must enter the Schedule B number, as shown in the current edition of 
Schedule B, Statistical Classification of Domestic and Foreign 
Commodities Exported from the United States, in the designated column of 
the SED regardless of whether the shipment is being exported under 
authority of a license issued by BXA, a License Exception described in 
part 740 of the EAR, or the ``No License Required'' provisions of the 
EAR as described in Sec. 758.1(a) of this part.
    (2) Item description for exports under a license--(i) General. If 
your export is being made under the authority of a license issued by 
BXA, you must enter the item description shown on the license on the 
SED. However, if part of the description on the license is underlined, 
you need place only the underlined portions on the SED. The item 
description on the license will be stated in CCL terms, which may be 
inadequate to meet Census Bureau requirements. In this event, the item 
description you place on the SED must give enough additional detail to 
permit verification of the Schedule B number (e.g., size, material, or 
degree of fabrication).
    (ii) Distinguishing characteristics or specifications. If a 
commodity classification in Schedule B has instructions such as 
``specify by name,'' ``state species,'' etc., you must furnish that 
information in the column of the SED provided for the commodity 
description. When a single SED covers more than one item classifiable 
under a single classification carrying the ``specify by name'' or 
similar requirement, you must enter each item separately in this column. 
However, if more than five items are involved, all classifiable under 
one Schedule B number, only the five items of greatest value in the 
classification need be shown separately. Separate quantities, values, 
and shipping weights for individual items are not required in either 
case.
    (3) Item description for License Exception shipments or shipments 
for which no license is required. For items that may be exported under 
the authority of a License Exception, or under the ``No License 
Required'' provisions of the EAR (as described in Sec. 758.1(a) of this 
part), you must enter a description in sufficient detail to permit 
review by the U.S. Government and verification of the Schedule B number 
entered on the SED.
    (h) License number or other authorization designation--(1) Exports 
under authority of a license issued by BXA. You must show the license 
number and expiration date, the Export Control Classification Number 
(ECCN) and the item description, in the designated spaces of a SED 
covering an export under a license issued by BXA (The space for the item 
description on the SED form may be headed ``commodity description''). If 
you intend to include other items on the SED that may be exported under 
a License Exception, or under the ``No License Required'' provisions of 
the EAR, (as described in Sec. 758.1(a) of this part) you must show the 
License Exception or ``NLR'' symbol, along with the specific description 
(quantity, Schedule B, value) of the item(s) to which the authorization 
applies in the designated spaces on a separate SED continuation sheet.
    (2) Exports not needing a license. In addition to the item 
description, the appropriate License Exception symbol, or the ``No 
License Required'' symbol (NLR) must be shown in the appropriate column 
of each SED or SED continuation sheet covering a shipment under 
authority of a License Exception (see part 740 of the EAR), or ``No 
License Required'' provisions of the EAR (as described in Sec. 758.1(a) 
of this part). If several authorizations are to be listed on one SED, 
the SED and continuation sheets must be completed as described in 
paragraph (f)(1) of this section. If the item(s) will be exported under 
the provisions of License Exceptions GBS, CIV, or LVS, or under the 
``NLR'' provisions of the EAR (as described in Sec. 758.1(a) of this 
part) and the item(s) are covered by entries on the Commerce Control 
List that have the

[[Page 336]]

column identifier ``NS Column 2'' controlled for ``NS'' reasons, the 
ECCN must also be shown in the designated space on the SED or SED 
continuation sheet. The following apply for notations made on SED:
    (i) Entering the license number and expiration date is a 
representation to the U.S. Government that the transaction is authorized 
by the license cited.
    (ii) Entering a License Exception symbol, or ``NLR'' is a 
representation to the U.S. Government that the shipment meets one of the 
applicable provisions of paragraphs (a)(3) through (a)(4) of Sec. 758.1 
of this part.
    (3) If you are exporting technology or software that is outside the 
scope of the EAR as described in Secs. 734.7 through 734.11 of the EAR, 
you may enter the symbol TSPA on the SED. Use of this symbol is 
optional, however, if you enter it, you are representing to the U.S. 
Government that the software or technology you are exporting is outside 
the scope of the EAR.
    (i) Optional ports of unlading--(1) Applicability. If, prior to the 
departure of the exporting carrier, the exporter does not know at what 
port the shipment will be unloaded, the exporter may designate optional 
ports of unlading on the SED and bill of lading or air waybill in 
accordance with the provisions of this paragraph. There are restrictions 
on the countries in which these optional ports may be located. The 
restrictions depend on whether the export is authorized under the ``No 
license Required'' provisions of the EAR (as described in Sec. 758.1(a) 
of this part), the License Exceptions described in part 740 of the EAR, 
or a license (See paragraph (j)(3) of this section).
    (2) Exemptions. You may never designate an optional port of unlading 
for a shipment destined directly or indirectly to Country Group D:1 in 
Supplement No. 1 to part 740 of the EAR (except for the People's 
Republic of China), Libya, Cuba, or North Korea.
    (3) Shipments for which no license is required or which are 
authorized by a License Exception. (i) For exports under the authority 
of the ``No License Required'' provisions of the EAR (as described in 
Sec. 758.1(a) of this part), if the exporter does not know which of 
several countries in Country Group B or the People's Republic of China 
is the country of ultimate destination, the exporter may name optional 
ports of unlading in one or more of these countries.
    (ii) When an export under any License Exception is shipped in 
transit through a country other than the country of ultimate 
destination, the exporter may designate optional ports of unlading in 
one or more countries, together with the name and address of the 
intermediate consignee in each country designated.
    (4) Restrictions on optional ports of unlading. The optional ports 
of unlading, which the exporter designates on the SED pursuant to 
paragraph (i)(3)(i) of this section, must be in a country to which the 
item being unloaded may be exported directly from the United States 
under the same or another applicable ``No License Required'' provision 
of the EAR (described in Sec. 758.1(a) of this part), or License 
Exception contained in the EAR.
    (5) Shipments under a license issued by BXA. For exports under a 
license, optional ports of unlading are restricted to the country of 
ultimate destination, unless either the transaction complies with the 
provisions of Sec. 750.7 of the EAR dealing with continuity of 
shipments, or the license designates intermediate consignees in other 
countries. In the latter case, the optional ports of unlading must be 
designated as optional intransit points on the SED, or if there is no 
SED, on the Shipper's Letter of Instructions, or, if there is neither, 
the optional port of unlading must appear on another document containing 
instructions that the exporter conveys (either directly or through an 
agent) to the carrier, and on the bill of lading or air waybill.
    (6) Correcting the SED. As soon as the exporter, or the exporter's 
forwarding agent or carrier determines at which port the shipment is to 
be unloaded (whether in the country of ultimate destination or in a 
country of transit), that person must correct the SED to show the 
specific port of unloading and the name and address of the intermediate 
consignee to whom delivery is to be made. An intermediate consignee must

[[Page 337]]

be shown if the port of unloading is located in a country other than the 
country of destination. If the export is unloaded at more than one port, 
the quantity and value unloaded at each port and the name and address of 
each intermediate consignee must be given. The procedures for correcting 
and filing SEDs may be found in paragraph (n) of this section.
    (j) Signature on SED. The exporter or the exporter's authorized 
forwarding agent, or an authorized employee of either, may sign the SED. 
In general, the requisite authority rests with employees who, by their 
official titles, are apparently vested with power to deal with exports, 
such as export managers or such corporate officers as the president, 
vice president, treasurer, and secretary of a corporation, any partner 
of a partnership, and any responsible head of any other form of private 
or quasi-governmental organization, and assistant officers. The 
signature of such person, whether that of the exporter or authorized 
agent or employee, constitutes a representation by the exporter that all 
statements and information in the SED are true and correct. In addition, 
if the signature is that of the forwarding agent, or the forwarding 
agent's duly authorized officer or employee, such signature constitutes 
a like representation by the forwarding agent.
    (k) Attachment to SED. (1) If you need additional space for any 
information on the SED, you may use additional copies of the SED or 
copies of the continuation sheet. In such cases, only one SED need be 
signed. You must number the additional sheets in sequence and securely 
attach them to the executed SED. You must insert the following statement 
on the last line of the description line of the SED form itself:

    This SED consists of this sheet and ________ continuation sheets.

    (2) No portion of any form attached as a continuation sheet may be 
torn off or removed.
    (l) Special requirements for additional information and documents. 
(1) A license may bear on its face a requirement to submit a SED or 
other documents (or information) to the Office of Export Enforcement in 
addition to that furnished when the application was filed. The exporter 
and the person submitting the documents represent that the documents are 
complete, truthful and accurate. The Export Administration Regulations 
prohibit the making of false representations to the U.S. Government in 
any export control matter (see Sec. 764.2(g) of the EAR). The licensee 
must furnish the documents to: Office of Export Enforcement, Room H-
4520, U.S. Department of Commerce, 14th Street and Constitution Ave., 
NW., Washington, DC 20230.
    (2) When required, the licensee must:
    (i) Prepare one copy of the SED in addition to the number of copies 
otherwise required;
    (ii) Enter the additional information called for by the license in 
the space between the column provided for marks and numbers of the 
shipment and the column provided for its value on all copies of the SED; 
and
    (iii) Unless otherwise specified on the license, attach the required 
documents (either original or certified copy) to the extra copy of the 
SED.
    (m) SED for shipments moving in- transit. (1) Applicability. Use the 
SED for In-transit Goods, Commerce Form 7513,2 for the 
following types of transactions:
---------------------------------------------------------------------------

    \2\  Form 7513 may be purchased from the Superintendent of 
Documents, U.S. Government Printing Office, Washington, D.C. 20402, the 
local customs offices, or may be privately printed.
---------------------------------------------------------------------------

    (i) Items departing the United States by vessel, which transited 
through, or transshipped in, ports of the United States, destined from 
one foreign country or area to another.
    (ii) Foreign merchandise exported from a General Order Warehouse and 
the export of foreign-origin merchandise that was rejected after 
government inspection or examination. Shipments in bond transiting the 
United States being exported by means of any carrier other than a vessel 
may be cleared for export without presenting a Form 7513, unless a 
license is required for the export.
    (2) Exports from Foreign Trade Zones. You may not use Form 7513 for 
any exports from Foreign Trade Zones. Such shipments require the filing 
of the SED

[[Page 338]]

(Form 7525-V), unless otherwise exempted, with the applicable zone 
number reported on the Document.
    (3) Additional information. The following additional information 
must be entered on a SED for In-transit Goods:
    (i) The name and address of the intermediate consignee in a foreign 
destination, if any, must be shown below the description of the items.
    (ii) Underneath the name and address of the intermediate consignee, 
one of the following statements, whichever is appropriate, must be 
entered:
    (A) For intransit shipments of foreign-origin merchandise (see part 
772 of the EAR for a definition of ``foreign-origin,''), enter the 
following statement:
    The merchandise described herein is of foreign-origin.
    (B) For intransit shipments of domestic (U.S.) merchandise, enter 
the following statement:
    The merchandise described herein is of the growth, production, or 
manufacture of the United States.
    (C) For intransit shipments of items of U.S.-origin eligible for the 
intransit provisions of License Exception TMP (see Sec. 740.8(b) of the 
EAR), enter the following statement:

    The merchandise described herein is of the growth, production, or 
manufacture of the United States, but has been so altered by further 
processing, manufacture, or assembly in a foreign country that it has 
either been substantially enhanced in value, or has lost its original 
identity with respect to form.

    (iii) The items must be described in terms of Schedule B, including 
the appropriate Schedule B number.
    (4) See Sec. 30.8 of the Foreign Trade Statistics Regulations (15 
CFR 30.8) for additional requirements concerning the information that 
must be placed on a SED for In-transit Goods.
    (n) Correction, change, alteration, or amendment of SED--(1) Methods 
of changing SED's. The exporter or the exporter's agent must report 
corrections, cancellations, additions or amendments to information 
reported on SEDs to the Customs Director at the port of exportation (or, 
in the case of mail shipments, to the Postmaster at the post office 
where the shipment was mailed) as soon as the need for such changes is 
determined. See the Foreign Trade Statistics Regulations (15 CFR part 
30) for additional information about how to correct SEDs and file the 
corrections. If you are required by paragraph (l) of this section to 
file a copy of the original SED with the Office of Export Enforcement 
(OEE), a copy of the changed SED should be sent to OEE at the address 
shown in paragraph (l) of this section with the words ``Correction 
Copy'' conspicuously shown in the upper right portion of the form.
    (2) Responsibility. Nothing in this section relieves you or any 
person or firm making changes on the SED from responsibility for any 
such changes. Acceptance of a changed SED by the Customs office does not 
imply approval of any act involved in the shipment or acceptance of the 
truth or accuracy of the information provided.
    (o) Summary monthly reports in lieu of individual SED's--(1) Scope. 
This paragraph contains only basic information about the monthly filing 
procedures for the SED. Details of the procedure may be found in 
Sec. 30.39 of the Foreign Trade Statistics Regulations (FTSR) of the 
Bureau of the Census (15 CFR 30.39). Exporters interested in the 
procedure should consult Sec. 30.39 of the FTSR to ascertain 
qualifications, how to apply for the privilege of participating, how to 
file electronically after approval is given, and other pertinent facts.
    (2) Applicability. Approved parties may file monthly SEDs with the 
Bureau of the Census for export to destinations in Country Groups B and 
D:1 (see Supplement No. 1 to part 740 of the EAR).
    (3) How to request monthly reporting privileges--(i) Addresses. (A) 
A request for the privilege of participating in monthly reporting 
procedures should be forwarded to: Foreign Trade Division, Bureau of the 
Census, Washington, D.C. 20233.
    (B) A copy of all requests must be sent to: Office of Export 
Enforcement, Room H-4616, U.S. Department of Commerce, 14th St. and 
Constitution Ave., NW., Washington, DC 20230.
    (ii) Certification requirements. The request must include the 
following certification by the applicant:

    I (We) certify that I (we) have established adequate internal 
procedures and safeguards

[[Page 339]]

to assure compliance with the requirements set forth in the U.S. 
Department of Commerce Export Administration Regulations and Foreign 
Trade Statistics Regulations. Among other things, these procedures and 
safeguards assure:
    (1) A proper determination as to whether a license is required for a 
particular export;
    (2) Actual receipt of the export license, if required, before the 
shipment is exported;
    (3) Compliance with all the terms of the license, License Exception, 
or NLR provisions of the EAR as applicable;
    (4) Return of licenses to BXA in accordance with Sec. 750.8(b) of 
the Export Administration Regulations, if requested;
    (5) Compliance with the destination control statement provisions of 
Secs. 758.5 and 758.6 of the Export Administration Regulations;
    (6) Compliance with the prohibition against export transactions that 
involve persons who have been denied U.S. export privileges; and
    (7) Compliance with the recordkeeping requirements of part 762 of 
the EAR and, in addition, I (we) agree that my (our) office records will 
be made available for inspection by the Bureau of the Census, BXA or the 
U.S. Customs Service, upon request, to verify that a given shipment was 
properly included in a particular monthly report.

    (4) Exporter's agent. If the exporter intends to authorize a 
forwarding agent to file electronically on the exporter's behalf, the 
exporter's request must include the name and address of each such 
forwarding agent.
    (5) Authorization by Census to use monthly reporting procedure. Any 
authorization to file summary monthly reports in lieu of individual SEDs 
may be granted only by the Bureau of the Census with the concurrence of 
BXA.
    (6) Export clearance. (i) Destination control statement. In addition 
to the exporter's responsibility for assuring that the proper 
destination control statement is placed on the commercial invoice as 
required by Sec. 758.6 of this part, the exporter or the exporter's 
forwarding agent is responsible for assuring that the carrier places the 
proper destination control statement on the related bill of lading or 
air waybill.
    (ii) Detention and examination. Shipments being reported under the 
summary filing procedure described in this paragraph are subject to 
inspection, examination and detention, as provided in Sec. 758.7 of this 
part, whenever an official of BXA, a customs officer, or a postmaster 
deems such action necessary to assure compliance with the EAR.
    (7) Revocation of authorization. An authorization to file summary 
monthly reports in lieu of individual SED's, granted under the 
provisions of Sec. 30.39 of the Foreign Trade Statistics Regulations (15 
CFR 30.39) and this paragraph, may be revoked, suspended, or revised at 
any time.
    (8) Effect of other provisions. Insofar as consistent with the 
provisions of this paragraph that relate specifically to filing 
electronically in lieu of individual SED's, the other provisions of this 
part 758 apply to exports reported under this procedure.

[61 FR 12852, Mar. 25, 1996, as amended at 61 FR 27257, May 31, 1996; 61 
FR 64285, Dec. 4, 1996]



Sec. 758.4  Conformity of documents for shipments under export licenses

    (a) Applicability. The rules of conformity in this section apply to 
shipping documents used in connection with any shipment under the 
authority of a license issued by BXA except ``master'' air waybills 
issued by consolidators. These rules apply to any individual air waybill 
issued by a consolidator (indirect carrier) for an export included in a 
consolidated shipment and to any air waybill issued by anyone in 
connection with an export not included in a consolidated shipment.
    (b) Compliance. You may not issue, prepare, or procure a bill of 
lading that is contrary to the provisions of this section. Officials of 
BXA and the U.S. Customs Service are authorized to require any document 
or to use any other appropriate methods to ensure compliance with the 
rules of conformity in this section.
    (c) Rules of conformity--(1) General. The following documents must 
be consistent with each other:
    (i) The license issued by BXA;
    (ii) One of the following applicable documents:
    (A) The SED;
    (B) If there is no SED, the Shipper's Letter of Instructions; or
    (C) If there is neither, another document containing instructions 
that the exporter conveys (either directly or through an agent) to the 
carrier; and

[[Page 340]]

    (iii) The outbound bill of lading (including a railroad through bill 
of lading) covering a particular export shipment must be consistent with 
one another.
    (2) Signs of inconsistent documents. The bill of lading, whether in 
negotiable or nonnegotiable form, is not consistent with those other 
documents if:
    (i) It does not provide for delivery of the shipment (cargo) at a 
port located in the country of either the ultimate or intermediate 
consignee named in the documents described in paragraph (c)(1)(ii) of 
this section;
    (ii) It contains any indication that the shipment is intransit to a 
country of ultimate destination different from that named in the 
appropriate one of the documents described in paragraph (c)(1)(ii) of 
this section, or that the shipment is not for consumption in such 
country of ultimate destination. For example, it would be inconsistent 
to consign a shipment to the ultimate destination with a qualifying 
phrase indicating the shipment is ``in transit'' at that destination, or 
to consign the shipment to a free zone or free port;
    (iii) It names as shipper any person other than the licensee (the 
person to whom a license is issued) or the licensee's duly authorized 
forwarding agent. Where shipments from more than one licensee are 
consolidated on a single bill of lading, the shipper named on the bill 
of lading must also appear as the authorized forwarding agent for each 
exporter on each document described in paragraph (c)(1)(ii) of this 
section.
    (iv) The name and address of the ultimate consignee are not shown 
either in the space provided for ``consignee'' or in the body of the 
bill of lading under the caption ``ultimate consignee and notify party'' 
or, in the case of the air waybill, under the caption ``also notify.'' 
However, where shipments to more than one ultimate consignee are 
consolidated on one bill of lading and not all are shown in the body of 
the bill of lading, the name of the intermediate consignee (customs 
broker or consolidator's agent in the foreign country) who will receive 
and distribute the items to the ultimate consignees must appear on the 
bill of lading, the export license(s), and documents listed in paragraph 
(c)(1)(ii) of this section.
    (3) Additional rules for negotiable bills of lading. A negotiable 
bill of lading (an ``order'' bill of lading) is deemed consistent with 
the appropriate one of the documents described in paragraph (c)(1)(ii) 
of this section only if the consignee or order party named on the bill 
of lading is also named in the SED, the Shipper's Letter of Instructions 
or the other document.
    (i) Sometimes ``order'' bills of lading consign the items they cover 
to the order of the shipper, to the order of an intermediate consignee 
such as a bank, foreign freight forwarder, or other intermediary, or to 
the order of a purchaser who is not the same person as the ultimate 
consignee. An ``order'' bill of lading issued in any of these forms 
constitutes a representation by the shipper that:
    (A) The items covered by the appropriate one of the documents 
described in paragraph (c)(1)(ii) of this section and bill of lading are 
ultimately destined to the ultimate consignee stated on the license;
    (B) The ``order'' bill of lading has not been used for the purpose 
of evading the terms and conditions of the license; and
    (C) Pursuant to the contract of carriage, the items will be 
delivered at a port located in the country of the ultimate consignee or 
of the intermediate consignee named on the appropriate one of the 
documents described in paragraph (c)(1)(ii) of this section.
    (ii) [Reserved]
    (4) Item description. On the bill of lading the items may be 
described in terms of the freight tariff classification or other type of 
classification, but may not be inconsistent with the description shown 
on the appropriate one of the documents described in paragraph 
(c)(1)(ii). These documents must include the same item description as 
shown on the related license, and, in addition, it must include more 
detailed information where required by the Bureau of the Census.
    (5) Carrier's manifest. If the carrier's outward foreign manifest 
filed with the U.S. customs office contains the names of shippers or 
consignees, these names must not be inconsistent with the

[[Page 341]]

names shown on the bill of lading and the appropriate one of the 
documents described in paragraph (c)(1)(ii) of this section.



Sec. 758.5  General destination control requirements

    (a) Scope. This section sets forth some actions the parties to a 
transaction authorized by a license issued by BXA are prohibited from 
taking. The purpose of these prohibitions is to prevent items licensed 
for export from being diverted while in transit or thereafter. It also 
sets forth the duties of the parties when the goods are unloaded in a 
country other than that of the ultimate consignee or intermediate 
consignee as stated on the export license.
    (b) Destination on bill of lading or air waybill--(1) Requirements 
to prevent diversions--(i) Statements on bill of lading or air waybill. 
(A) A carrier (or any other person on behalf of any carrier) may not 
issue a bill of lading or air waybill providing for delivery of cargo at 
any foreign port located outside the country of the ultimate consignee, 
or the intermediate consignee, named on the appropriate one of the 
documents described in Sec. 758.4(c)(1)(ii) of this part.
    (B) Optional ports on bill of lading or air waybill. No carrier may 
issue a bill of lading or air waybill providing for delivery of cargo at 
optional ports to the ultimate consignee named on one of the appropriate 
documents described in Sec. 758.4(c)(1) (i) and (ii) of this part where 
one of such optional ports is not in the country of ultimate destination 
named on the license or SED, or if there is no SED, the Shipper's Letter 
of Instructions, or if there is neither, another document containing 
instructions that the exporter conveys (either directly or through an 
agent) to the carrier, without prior written authorization from BXA. 
However, where the appropriate document described in Sec. 758.4(c)(1) 
(i) and (ii) of this part provide for delivery of cargo to optional 
intermediate consignees located in ports in different countries, the 
carrier may issue a bill of lading or air waybill providing for delivery 
at such optional ports.
    (ii) [Reserved]
    (2) Delivery of cargo. No carrier may deliver cargo to any country 
other than the country of the ultimate consignee, or the intermediate 
consignee, named on the appropriate one of the documents described in 
Sec. 758.4(c)(1)(ii) of this part at the request or option of the 
shipper, consignor, exporter, purchaser, or ultimate consignee, or their 
agents, or any other person having custody or control of the shipment, 
without prior written authorization from BXA to the carrier or its 
agent.
    (c) Duties when items are unloaded in a unauthorized country. If the 
items are unloaded in a country other than that of the intermediate or 
ultimate consignee as stated on the appropriate one of the documents 
described in Sec. 758.4(c)(1)(ii) of this part, the procedures described 
in this paragraph must be followed.
    (1) Reasons beyond carrier's control. Nothing contained in the EAR 
shall be deemed to prohibit a carrier from unloading cargo at a port 
outside the country of intermediate or ultimate destination shown on the 
appropriate one of the documents described in Sec. 758.4(c)(1)(ii) of 
this part, where for reasons beyond the control of the carrier (as set 
forth in the standard provisions of the carrier's bill of lading or air 
waybill, such as acts of God, perils of the sea, damage to the carrier, 
strikes, war, political disturbances, or insurrections), it is not 
feasible to deliver the cargo at the licensed port of destination.
    (2) Required actions for unscheduled unloading. (i) If the item is 
unloaded in a country to which that item may be exported without a 
license issued by BXA, no one is required to notify BXA of the 
unloading. The exporter may dispose of the items in that country without 
approval of BXA. When making such a disposition you must still comply 
with any conditions or requirements of the License Exception or other 
provisions of the EAR that would authorize the export of the item being 
unloaded to the country in which you are disposing of it, and any 
regulations of other government agencies that apply to the transaction. 
This paragraph does not authorize anyone to take any action with 
knowledge that a violation of the Export Administration

[[Page 342]]

Act, the EAR, or any order, license or authorization issued thereunder, 
has occurred, is about to occur or is intended to occur, or to deliver 
to a denied party or to take any other action prohibited by the EAR.
    (ii) If a license issued by BXA would be required to export the item 
to the country in which it is unloaded:
    (A) No person may take any steps to effect delivery or entry of the 
items into the commerce of the country where unloaded without prior 
approval of BXA;
    (B) The carrier must take steps to assure that the items are placed 
in custody under bond or other guaranty not to enter the commerce of 
such country or any country other than the countries of the ultimate and 
intermediate consignees shown on the appropriate one of the documents 
described in Sec. 758.4(c)(1)(ii) of this part, without prior approval 
of BXA;
    (iii) The carrier, the carrier's agent located in the United States, 
and the exporter each have specific responsibilities to notify BXA 
regarding any unscheduled unloading. The specific responsibilities of 
each party are as follows:
    (A) The carrier must, within 10 days after date of unloading, report 
the facts to the nearest American Consulate and to the agent of the 
carrier located in the United States. Within 10 days after receipt of 
such report, the agent must send a copy of the report to BXA. The report 
must include:
    (1) A copy of the manifest of such diverted cargo;
    (2) A statement of the place of unloading; and;
    (3) The name and address of the person in whose custody the items 
were delivered.
    (B) BXA will inform the exporter of the unloading. Within 10 days 
following receipt of this notice, the exporter must inform BXA of the 
proposed disposition of the items. The exporter may not dispose of the 
items without approval of BXA.



Sec. 758.6  Destination control statement

    (a) Requirement for destination control statement. (1) The 
destination control statement shown in paragraph (b) of this section 
must be entered on all copies of the bill of lading, the air waybill and 
the commercial invoice covering any export from the United States if:
    (i) The export is made under authority of a license, including the 
Special Comprehensive License;
    (ii) The export is made under the authority of the following License 
Exceptions: LVS, GBS, CIV, CTP, TMP, or RPL; or
    (iii) The export is made under the ``No License Required'' 
provisions of the EAR (as described in Sec. 758.1(a) of this part) if 
the reason for control of the item as stated in the entry on the CCL is 
NS or NP.
    (2) An exporter or the exporter's agent may enter a destination 
control statement on the shipping documents for exports for which no 
destination control statement is required.
    (b) Text of destination control statement.

    These commodities, technology or software were exported from the 
United States in accordance with the Export Administration Regulations. 
Diversion contrary to U.S. law prohibited.

    (c) Additional destination information. In addition to the 
destination control statement, an exporter or exporter's agent may 
supply additional information on the shipping documents, including the 
country(ies) to which export or reexport is authorized.
    (d) Permissive reexports. If reexport or diversion from the original 
transaction is contemplated and the change from the original transaction 
is consistent with the license, License Exception, the NLR provisions of 
the EAR or other authorization and with all other requirements of the 
EAR, the exporter may so advise its foreign importer without obtaining 
further authorization from BXA.
    (e) Responsibility for assuring that the destination control 
statement is used--(1) Exporters. The exporter is responsible for 
assuring entry of the destination control statement on the commercial 
invoice, regardless of whether the exporter actually prepares this 
document. The exporter has this responsibility even if the invoice is 
prepared by an order party or the exporter acts through an agent.

[[Page 343]]

    (2) Agents of exporters (forwarding agents). Agents of exporters are 
also responsible for assuring entry of the destination control statement 
on the commercial invoice.
    (i) If the agent receives from the exporter a copy of a commercial 
invoice without the correct destination control statement, the agent 
must:
    (A) Notify the exporter in writing;
    (B) Request written assurance from the exporter that:
    (1) The destination control statement has been properly entered on 
all other copies of the commercial invoice; and
    (2) Any person who received an invoice without the statement has 
been informed in writing of the restrictions in the statement;
    (ii) And either:
    (A) Enter the appropriate statement on the agent's copy of the 
invoice; or
    (B) Return it to the exporter for completion; and
    (iii) Keep and make available for inspection, in accordance with 
part 762 of the EAR, a copy of that person's notification to the 
exporter and the original of the exporter's assurance required by 
paragraph (e)(2)(i) of this section. (For further recordkeeping 
requirements, see part 762 of the EAR.)
    (iv) If the agent prepares the invoice, the agent's responsibilities 
are governed by paragraph (e)(3) of this section.
    (3) Forwarders, carriers and other parties who prepare invoices. If 
a forwarder, a carrier acting as a forwarder, or any other party 
prepares, presents, and/or executes the invoice, the forwarder, carrier, 
or other party is also responsible for assuring that an appropriate 
statement is entered on the invoice.
    (4) Carriers and other parties who issue bills of lading or air 
waybills. The carrier, or any other party that issues the bill of lading 
or air waybill, is responsible for assuring that the destination control 
statement appearing on the corresponding invoice also appears on the 
bill of lading or air waybill.
    (f) Responsibility for distributing copies of the invoice. The 
exporter or other person issuing any invoice containing a destination 
control statement must send copies in a manner which assures their 
arrival either with or prior to arrival of the items being exported to:
    (1) The ultimate consignee and the purchaser named in the SED;
    (2) The intermediate consignee; and
    (3) Any other persons named in the invoice who are located in a 
foreign country. Nothing contained in this part shall be construed to 
limit the persons or classes of persons to whom such invoices, bills of 
lading or air waybills are usually and customarily sent in the course of 
export trade. The shipper or other person issuing the commercial invoice 
may comply with the requirements of this section even if the copy of the 
invoice sent to any of the persons listed in paragraphs (f)(1) or (2) 
this section omits all reference to price or sales commission provided 
such invoice otherwise adequately identifies the shipment. As an 
alternative in lieu of a copy of the commercial invoice, such person may 
send a copy of the bill of lading or air waybill containing the 
destination control statement.
    (g) Requirements for bill of lading or air waybill--(1) General. No 
carrier may issue (and no one may prepare or procure) a bill of lading 
or air waybill covering an export for which a destination control 
statement is required under the provisions of paragraph (a) of this 
section, unless all copies of such bill of lading or air waybill 
(including all non-negotiable and office copies) contain the destination 
control statement in clearly legible form.
    (2) Exception for ``master'' air waybills. In the case of shipments 
by air (other than airmail or air parcel post), the requirement of 
paragraph (e)(2)(i) of this section applies to any air waybill, 
including one issued by a consolidator (indirect carrier) for an export 
included in a consolidated shipment. However, the provisions of 
paragraph (f) of this section do not apply to a ``master'' air waybill 
issued by a carrier to cover a consolidated shipment.
    (h) Requirements for the commercial invoice. No licensee, shipper, 
consignor, exporter, agent, or any other person may prepare or issue a 
commercial invoice for a shipment for which a destination control 
statement is required under the provisions of paragraph (a) of this 
section, unless all copies of the invoice(s) contain the statement in 
clearly legible form.

[[Page 344]]

    (i) Carrier's responsibility before releasing cargo. No carrier may 
release custody of a shipment covered by the provisions of this section 
to any party without surrender by that party, to the carrier, of a copy 
of the bill of lading or air waybill bearing on its face the applicable 
destination control statement, unless either:
    (1) Simultaneously with the release, the carrier delivers to such 
party a written copy of the destination control statement, contained in 
the carrier's copy of the bill of lading or air waybill for the 
shipment. The written copy must identify the shipment by bill of lading 
or air waybill number, name of carrier, voyage or flight number, date, 
and port of arrival. The carrier must also secure either a signed 
receipted copy of the written statement or other equivalent written 
evidence that the statement has been delivered by the carrier; or,
    (2) The regulations of the importing country require the carrier to 
deliver the items directly into the physical possession and control of 
customs or other government agency for delivery to the consignee or the 
consignee's agent. In this case, the carrier need not give to, or 
receive from, the customs or other government agency, or the consignee 
or the consignee's agent, any document bearing the destination control 
statement.

[61 FR 12852, Mar. 25, 1996, as amended at 61 FR 64285, Dec. 4, 1996]



Sec. 758.7  Authority of the Office of Export Enforcement, the Bureau of Export Administration, Customs offices and Postmasters in clearing shipments

    (a) Actions to assure compliance with the EAR. Officials of BXA, the 
Office of Export Enforcement, the U.S. Customs Service and postmasters, 
including post office officials, are authorized and directed to take 
appropriate action to assure compliance with the EAR. This includes 
assuring that:
    (1) Exports without a license issued by BXA are either outside the 
scope of the license requirements of the Export Administration 
Regulations or authorized by a License Exception; and
    (2) Exports purporting to be authorized by licenses issued by BXA 
are, in fact, so authorized and the transaction complies with the terms 
of the license.
    (b) Types of actions. The officials designated in paragraph (a) of 
this section are authorized to take the following types of actions:
    (1) Inspection of items--(i) Purpose of inspection. All items 
declared for export are subject to inspection for the purpose of 
verifying the items specified in the SED, or if there is no SED, the 
bill of lading or other loading document covering the items about to be 
exported, and the value and quantity thereof, and to assure observance 
of the other provisions of the Export Administration Regulations. This 
authority applies to all exports within the scope of the Export 
Administration Act or Export Administration Regulations whether or not 
such exports require a license issued by BXA. The inspection may 
include, but is not limited to, item identification, technical appraisal 
(analysis), or both.
    (ii) Place of inspection. Inspection shall be made at the place of 
lading or where officials authorized to make those inspections are 
stationed for that purpose.
    (iii) Technical identification. Where, in the judgment of the 
official making the inspection, the item cannot be properly identified, 
a sample may be taken for more detailed examination or for laboratory 
analysis.
    (A) Obtaining samples. The sample will be obtained by the official 
making the inspection in accordance with the provisions for sampling 
imported merchandise. The size of the sample will be the minimum 
representative amount necessary for identification or analysis. This 
will depend on such factors as the physical condition of the material 
(whether solid, liquid, or gas) and the size and shape of the container.
    (B) Notification to exporter and consignee. When a sample is taken, 
the exporter (or the exporter's agent) and the ultimate consignee will 
be notified by letter from one of the official designated in paragraph 
(a) of this section, showing the port of export, date of sampling, 
export license number (if any) or other authorization, invoice number 
quantity of sample taken, description of item, marks and packing case 
numbers, and manufacturer's

[[Page 345]]

number for the item. The original letter will be sent to the exporter or 
the exporter's agent, the duplicate will be placed in the container that 
had been opened, and the triplicate will be retained by the inspecting 
office.
    (C) Disposal of samples. Samples will be disposed of in accordance 
with the U.S. Customs Service procedure for imported commodities.
    (2) Inspection of documents--(i) General. Officials designated in 
paragraph (a) of this section are authorized to require exporters or 
their agents, and owners and operators of exporting carriers or their 
agents, to produce for inspection or copying: invoices, orders, letters 
of credit, inspection reports, packing lists, shipping documents and 
instructions, correspondence, and any other relevant documents, as well 
as furnish other information bearing upon a particular shipment being 
exported or intended to be exported.
    (ii) Cartridge and shell case scrap. When cartridge or shell cases 
are being exported as scrap (whether or not they have been heated, 
flame-treated, mangled, crushed, or cut) from the United States, the 
U.S. Customs Service is authorized to require the exporter to furnish 
information bearing on the identity and relationships of all parties to 
the transaction and produce a copy of the bid offer by the armed 
services in order to assure that the terms of the Export Administration 
Regulations are being met and that the material being shipped is scrap.
    (3) Questioning of individuals. Officials designated in paragraph 
(a) of this section are authorized to question the owner or operator of 
an exporting carrier and the carrier's agent(s), as well as the exporter 
and the exporter's agent(s), concerning a particular shipment exported 
or intended to be exported.
    (4) Prohibiting lading. Officials designated in paragraph (a) of 
this section are authorized to prevent the lading of items on an 
exporting carrier whenever those officials have reasonable cause to 
believe that the export or removal from the United States is contrary to 
the Export Administration Regulations.
    (5) Inspection of exporting carrier. The U.S. Customs Service is 
authorized to inspect and search any exporting carrier at any time to 
determine whether items are intended to be, or are being, exported or 
removed from the United States contrary to the Export Administration 
Regulations. Officials of the Office of Export Enforcement may conduct 
such inspections with the concurrence of the U.S. Customs Service.
    (6) Seizure and detention. Customs officers are authorized, under 
Title 22 of the United States Code, section 401, et seq., to seize and 
detain any items whenever an attempt is made to export such items in 
violation of the Export Administration Regulations, or whenever they 
know or have probable cause to believe that the items are intended to 
be, are being, or have been exported in violation of the EAR. Seized 
items are subject to forfeiture. In addition to the authority of Customs 
officers to seize and detain items, both customs officials and officials 
of the Office of Export Enforcement are authorized to detain any 
shipment held for review of the SED, or if there is no SED, the bill of 
lading or other loading document covering the items about to be 
exported, or for physical inspection of the items, whenever such action 
is deemed to be necessary to assure compliance with the EAR.
    (7) Preventing departure of carrier. The U.S. Customs Service is 
authorized under Title 22 of the U. S. Code, section 401, et seq., to 
seize and detain, either before or after clearance, any vessel or 
vehicle or air carrier that has been or is being used in exporting or 
attempting to export any item intended to be, being, or having been 
exported in violation of the EAR.
    (8) Ordering the unloading. The U.S. Customs Service is authorized 
to unload, or to order the unloading of, items from any exporting 
carrier, whenever the U.S. Customs Service has reasonable cause to 
believe such items are intended to be, or are being, exported or removed 
from the United States contrary to the EAR.
    (9) Ordering the return of items. If, after notice that an 
inspection of a shipment is to be made, a carrier departs without 
affording the U.S. Customs Service, Office of Export Enforcement, or BXA 
personnel an adequate opportunity to examine the shipment,

[[Page 346]]

the owner or operator of the exporting carrier and the exporting 
carrier's agent(s) may be ordered to return items exported on such 
exporting carrier and make them available for inspection.
    (10) Designating time and place for clearance. The U.S. Customs 
Service is authorized to designate times and places at which U.S. 
exports may move by land transportation to countries contiguous to the 
United States.



Sec. 758.8  Return or unloading of cargo at direction of BXA, the Office of Export Enforcement or Customs Service.

    (a) Exporting carrier. As used in this section, the term ``exporting 
carrier'' includes a connecting or on-forwarding carrier, as well as the 
owner, charterer, agent, master, or any other person in charge of the 
vessel, aircraft, or other kind of carrier, whether such person is 
located in the United States or in a foreign country.
    (b) Ordering return or unloading of shipment. Where there are 
reasonable grounds to believe that a violation of the Export 
Administration Regulations has occurred, or will occur, with respect to 
a particular export from the United States, BXA, the Office of Export 
Enforcement, or the U.S. Customs Service may order any person in 
possession or control of such shipment, including the exporting carrier, 
to return or unload the shipment. Such person must, as ordered, either:
    (1) Return the shipment to the United States or cause it to be 
returned or;
    (2) Unload the shipment at a port of call and take steps to assure 
that it is placed in custody under bond or other guaranty not to enter 
the commerce of any foreign country without prior approval of BXA. For 
the purpose of this section, the furnishing of a copy of the order to 
any person included within the definition of exporting carrier will be 
sufficient notice of the order to the exporting carrier.
    (c) Requirements regarding shipment to be unloaded. The provisions 
of Sec. 758.5(b) and (c) of this part, relating to reporting, 
notification to BXA, and the prohibition against unauthorized delivery 
or entry of the item into a foreign country, shall apply also when items 
are unloaded at a port of call, as provided in paragraph (b)(2) of this 
section.
    (d) Notification. Upon discovery by any person included within the 
term ``exporting carrier,'' as defined in paragraph (a) of this section, 
that a violation of the EAR has occurred or will occur with respect to a 
shipment on board, or otherwise in the possession or control of the 
carrier, such person must immediately notify both:
    (1) The Office of Export Enforcement at the following address: Room 
H-4520, U.S. Department of Commerce, 14th Street and Constitution Ave., 
N.W., Washington D.C. 20230, Telephone: (202) 482 1208, Facsimile: (202) 
482-0964; and
    (2) The person in actual possession or control of the shipment.



Sec. 758.9  Other applicable laws and regulations.

    The provisions of this part 758 apply only to exports regulated by 
BXA. Nothing contained in this part 758 shall relieve any person from 
complying with any other law of the United States or rules and 
regulations issued thereunder, including those governing SEDs and 
manifests, or any applicable rules and regulations of the U.S. Customs 
Service.



PART 760--RESTRICTIVE TRADE PRACTICES OR BOYCOTTS--Table of Contents




Sec.
760.1 Definitions.
760.2 Prohibitions.
760.3 Exceptions to prohibitions.
760.4 Evasion.
760.5 Reporting requirements.

Supplement No. 1 to Part 760--Interpretations
Supplement No. 2 to Part 760--Interpretation
Supplement No. 3 to Part 760--Interpretation
Supplement No. 4 to Part 760--Interpretation
Supplement No. 5 to Part 760--Interpretation
Supplement No. 6 to Part 760--Interpretation
Supplement No. 7 to Part 760--Interpretation
Supplement No. 8 to Part 760--Interpretation
Supplement No. 9 to Part 760--Interpretation

[[Page 347]]

Supplement No. 10 to Part 760--Interpretation
Supplement No. 11 to Part 760--Interpretation
Supplement No. 12 to Part 760--Interpretation
Supplement No. 13 to Part 760--Interpretation
Supplement No. 14 to Part 760--Interpretation
Supplement No. 15 to Part 760--Interpretation
Supplement No. 16 to Part 760--Interpretation

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 FR 
42767, August 17, 1995).

    Source: 61 FR 12862, Mar. 25, 1996, unless otherwise noted.



Sec. 760.1  Definitions.

    In this part, references to the EAR are references to 15 CFR chapter 
VII, subchapter C.
    (a) Definition of Person. For purposes of this part, the term person 
means any individual, or any association or organization, public or 
private, which is organized, permanently established, resident, or 
registered to do business, in the United States or any foreign country. 
This definition of person includes both the singular and plural and, in 
addition, includes:
    (1) Any partnership, corporation, company, branch, or other form of 
association or organization, whether organized for profit or non-profit 
purposes;
    (2) Any government, or any department, agency, or commission of any 
government;
    (3) Any trade association, chamber of commerce, or labor union;
    (4) Any charitable or fraternal organization; and
    (5) Any other association or organization not specifically listed in 
paragraphs (a)(1) through (4) of this section.
    (b) Definition of ``United States Person''. (1) This part applies to 
United States persons. For purposes of this part, the term United States 
person means any person who is a United States resident or national, 
including individuals, domestic concerns, and ``controlled in fact'' 
foreign subsidiaries, affiliates, or other permanent foreign 
establishments of domestic concerns. This definition of United States 
person includes both the singular and plural and, in addition, includes:
    (i) The government of the United States or any department, agency, 
or commission thereof;
    (ii) The government of any State of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico, any territory or 
possession of the United States, or any subdivision, department, agency, 
or commission of any such government;
    (iii) Any partnership, corporation, company, association, or other 
entity organized under the laws of paragraph (b)(1)(i) or (ii) of this 
section;
    (iv) Any foreign concern's subsidiary, partnership, affiliate, 
branch, office, or other permanent establishment in any state of the 
United States, the District of Columbia, the Commonwealth of Puerto 
Rico, or any territory or possession of the United States; and
    (v) Any domestic concern's foreign subsidiary, partnership, 
affiliate, branch, office, or other permanent foreign establishment 
which is controlled in fact by such domestic concern. (See paragraph (c) 
of this section on ``Definition of 'Controlled in Fact'.'')
    (2) The term domestic concern means any partnership, corporation, 
company, association, or other entity of, or organized under the laws 
of, any jurisdiction named in paragraph (b)(1) (i) or (ii) of this 
section, or any permanent domestic establishment of a foreign concern.
    (3) The term foreign concern means any partnership, corporation, 
company, association, or other entity of, or organized under the laws 
of, any jurisdiction other than those named in paragraph (b)(1)(i) or 
(ii) of this section.
    (4) The term United States person does not include an individual 
United States national who is resident outside the United States and who 
is either employed permanently or temporarily by a non-United States 
person or assigned to work as an employee for, and under the direction 
and control of, a non-United States person.

[[Page 348]]

                  Examples of ``United States Person''

    The following examples are intended to give guidance in determining 
whether a person is a ``United States person.'' They are illustrative, 
not comprehensive.
    (i) U.S. bank A has a branch office in foreign country P. Such 
branch office is a United States person, because it is a permanent 
foreign establishment of a domestic concern.
    (ii) Ten foreign nationals establish a manufacturing plant, A, in 
the United States, incorporating the plant under New York law.
    A is a United States person, because it is a corporation organized 
under the laws of one of the states of the United States.
    (iii) A, a foreign corporation, opens an office in the United States 
for purposes of soliciting U.S. orders. The office is not separately 
incorporated.
    A's U.S. office is a United States person, because it is a permanent 
establishment, in the United States, of a foreign concern.
    (iv) A, a U.S. individual, owns stock in foreign corporation B.
    A is a United States person. However, A is not a ``domestic 
concern,'' because the term ``domestic concern'' does not include 
individuals.
    (v) A, a foreign national resident in the United States, is employed 
by B, a foreign corporation.
    A is a United States person, because he is resident in the United 
States.
    (vi) A, a foreign national, who is resident in a foreign country and 
is employed by a foreign corporation, makes occasional visits to the 
United States, for purposes of exploring business opportunities.
    A is not a United States person, because he is not a United States 
resident or national.
    (vii) A is an association of U.S. firms organized under the laws of 
Pennsylvania for the purpose of expanding trade.
    A is a United States person, because it is an association organized 
under the laws of one of the states of the United States.
    (viii) At the request of country Y, A, an individual employed by 
U.S. company B, is transferred to company C as an employee. C is a 
foreign company owned and controlled by country Y. A, a U.S. national 
who will reside in Y, has agreed to the transfer provided he is able to 
retain his insurance, pension, and other benefits. Accordingly, company 
B has agreed to keep A as an employee in order to protect his employee 
benefits, and company C has agreed to pay for A's salary. At all times 
while he works for C, A will be under C's direction and control.
    A is not a United States person while under C's direction and 
control, because he will be resident outside the United States and 
assigned as an employee to a non-United States person. The arrangement 
designed to protect A's insurance, pension, and other benefits does not 
destroy his status as an employee of C so long as he is under the 
direction and control of C.
    (ix) A, a U.S. citizen, has resided in Europe for three years, where 
he is a self-employed consultant for United States and foreign companies 
in the communications industry.
    A is a United States person, because he is a U.S. national and 
because he is not a resident outside the United States who is employed 
by other than a United States person.

    (c) Definition of ``Controlled in Fact''. (1) This part applies to 
any domestic concern's foreign subsidiary, partnership, affiliate, 
branch, office, or other permanent foreign establishment which is 
controlled in fact by such domestic concern. Control in fact consists of 
the authority or ability of a domestic concern to establish the general 
policies or to control day-to-day operations of its foreign subsidiary, 
partnership, affiliate, branch, office, or other permanent foreign 
establishment.
    (2) A foreign subsidiary or affiliate of a domestic concern will be 
presumed to be controlled in fact by that domestic concern, subject to 
rebuttal by competent evidence, when:
    (i) The domestic concern beneficially owns or controls (whether 
directly or indirectly) more than 50 percent of the outstanding voting 
securities of the foreign subsidiary or affiliate;
    (ii) The domestic concern beneficially owns or controls (whether 
directly or indirectly) 25 percent or more of the voting securities of 
the foreign subsidiary or affiliate, if no other person owns or controls 
(whether directly or indirectly) an equal or larger percentage;
    (iii) The foreign subsidiary or affiliate is operated by the 
domestic concern pursuant to the provisions of an exclusive management 
contract;
    (iv) A majority of the members of the board of directors of the 
foreign subsidiary or affiliate are also members of the comparable 
governing body of the domestic concern;
    (v) The domestic concern has authority to appoint the majority of 
the members of the board of directors of the foreign subsidiary or 
affiliate; or
    (vi) The domestic concern has authority to appoint the chief 
operating officer of the foreign subsidiary or affiliate.

[[Page 349]]

    (3) A brokerage firm or other person which holds simple record 
ownership of securities for the convenience of clients will not be 
deemed to control the securities.
    (4) A domestic concern which owns, directly or indirectly, 
securities that are immediately convertible at the option of the holder 
or owner into voting securities is presumed to own or control those 
voting securities.
    (5) A domestic concern's foreign branch office or other 
unincorporated permanent foreign establishment is deemed to be 
controlled in fact by such domestic concern under all circumstances.

                   Examples of ``Controlled in Fact''

    The following examples are intended to give guidance in determining 
the circumstances in which a foreign subsidiary, affiliate, or other 
permanent foreign establishment of a domestic concern is ``controlled in 
fact.'' They are illustrative, not comprehensive.
    (i) Company A is incorporated in a foreign country. Fifty-one 
percent of the voting stock of A is owned by U.S. company B.
    A is presumed to be controlled in fact by B. This presumption may be 
rebutted by competent evidence showing that control does not, in fact, 
lie with B.
    (ii) Company A is incorporated in a foreign country. Ten percent of 
the voting stock of A is owned by U.S. company B. A has an exclusive 
management contract with B pursuant to which A is operated by B.
    As long as such contract is in effect, A is presumed to be 
controlled in fact by B. This presumption may be rebutted by competent 
evidence showing that control does not, in fact, lie with B.
    (iii) Company A is incorporated in a foreign country. Ten percent of 
the voting stock of A is owned by U.S. company B. A has 10 persons on 
its board of directors. Six of those persons are also members of the 
board of directors of U.S. company B.
    A is presumed to be controlled in fact by B. This presumption may be 
rebutted by competent evidence showing that control does not, in fact, 
lie with B.
    (iv) Company A is incorporated in a foreign country. Thirty percent 
of the voting securities of A is owned by U.S. company B and no other 
person owns or controls an equal or larger share.
    A is presumed to be controlled in fact by B. This presumption may be 
rebutted by competent evidence showing that control does not, in fact, 
lie with B.
    (v) Company A is incorporated in a foreign country. In A's articles 
of incorporation, U.S. company B has been given authority to appoint A's 
board of directors.
    A is presumed to be controlled in fact by B. This presumption may be 
rebutted by competent evidence showing that control does not, in fact, 
lie with B.
    (vi) Company A is a joint venture established in a foreign country, 
with equal participation by U.S. company B and foreign company C. U.S. 
Company B has authority to appoint A's chief operating officer.
    A is presumed to be controlled in fact by B. This presumption may be 
rebutted by competent evidence showing that control does not, in fact, 
lie with B.
    (vii) Same as (vi), except that B has no authority to appoint A's 
chief operating officer.
    B is not presumed to control A, absent other facts giving rise to a 
presumption of control.
    (viii) Company A is incorporated in a foreign country. U.S. 
companies B, C, and D each own 20 percent of A's voting securities and 
regularly cast their votes in concert.
    A is presumed to be controlled in fact by B, C, and D, because these 
companies are acting in concert to control A.
    (ix) U.S. bank B located in the United States has a branch office, 
A, in a foreign country. A is not separately incorporated.
    A is deemed to be controlled in fact by B, because A is a branch 
office of a domestic concern.
    (x) Company A is incorporated in a foreign country. Fifty-one 
percent of the voting stock of A is owned by company B, which is 
incorporated in another foreign country. Fifty-one percent of the voting 
stock of B is owned by C, a U.S. company.
    Both A and B are presumed to be controlled in fact by C. The 
presumption of C's control over B may be rebutted by competent evidence 
showing that control over B does not, in fact, lie with C. The 
presumption of B's control over A (and thus C's control over A) may be 
rebutted by competent evidence showing that control over A does not, in 
fact, lie with B.
    (xi) B, a U.S. individual, owns 51 percent of the voting securities 
of A, a manufacturing company incorporated and located in a foreign 
country.
    A is not ``controlled in fact'' under this part, because it is not 
controlled by a ``domestic concern.''

    (d) Definition of ``Activities in the Interstate or Foreign Commerce 
of the United States''.

[[Page 350]]

 Activities Involving United States Persons Located in the United States

    (1) For purposes of this part, the activities of a United States 
person located in the United States are in the interstate or foreign 
commerce of the United States if they involve the sale, purchase, or 
transfer of goods or services (including information) between:
    (i) Two or more of the several States (including the District of 
Columbia);
    (ii) Any State (including the District of Columbia) and any 
territory or possession of the United States;
    (iii) Two or more of the territories or possessions of the United 
States; or
    (iv) A State (including the District of Columbia), territory or 
possession of the United States and any foreign country.
    (2) For purposes of this part, the export of goods or services from 
the United States and the import of goods or services into the United 
States are activities in United States commerce. In addition, the action 
of a domestic concern in specifically directing the activities of its 
controlled in fact foreign subsidiary, affiliate, or other permanent 
foreign establishment is an activity in United States commerce.
    (3) Activities of a United States person located in the United 
States may be in United States commerce even if they are part of or 
ancillary to activities outside United States commerce. However, the 
fact that an ancillary activity is in United States commerce does not, 
in and of itself, mean that the underlying or related activity is in 
United States commerce.
    (4) Hence, the action of a United States bank located in the United 
States in providing financing from the United States for a foreign 
transaction that is not in United States commerce is nonetheless itself 
in United States commerce. However, the fact that the financing is in 
United States commerce does not, in and of itself, make the underlying 
foreign transaction an activity in United States commerce, even if the 
underlying transaction involves a foreign company that is a United 
States person within the meaning of this part.
    (5) Similarly, the action of a United States person located in the 
United States in providing financial, accounting, legal, t 
ransportation, or other ancillary services to its controlled in fact 
foreign subsidiary, affiliate, or other permanent foreign establishment 
in connection with a foreign transaction is in United States commerce. 
But the provision of such ancillary services will not, in and of itself, 
bring the foreign transaction of such subsidiary, affiliate, or 
permanent foreign establishment into United States commerce.

 Activities of Controlled in Fact Foreign Subsidiaries, Affiliates, and 
                 Other Permanent Foreign Establishments

    (6) Any transaction between a controlled in fact foreign subsidiary, 
affiliate, or other permanent foreign establishment of a domestic 
concern and a person located in the United States is an activity in 
United States commerce.
    (7) Whether a transaction between such a foreign subsidiary, 
affiliate, or other permanent foreign establishment and a person located 
outside the United States is an activity in United States commerce is 
governed by the following rules.

                  Activities in United States Commerce

    (8) A transaction between a domestic concern's controlled in fact 
foreign subsidiary, affiliate, or other permanent foreign establishment 
and a person outside the United States, involving goods or services 
(including information but not including ancillary services) acquired 
from a person in the United States is in United States commerce under 
any of the following circumstances--
    (i) If the goods or services were acquired for the purpose of 
filling an order from a person outside the United States;
    (ii) If the goods or services were acquired for incorporation into, 
refining into, reprocessing into, or manufacture of another product for 
the purpose of filling an order from a person outside the United States;
    (iii) If the goods or services were acquired for the purpose of 
fulfilling or engaging in any other transaction with a person outside 
the United States; or

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    (iv) If the goods were acquired and are ultimately used, without 
substantial alteration or modification, in filling an order from, or 
fulfilling or engaging in any other transaction with, a person outside 
the United States (whether or not the goods were originally acquired for 
that purpose). If the goods are indistinguishable as to origin from 
similar foreign-trade goods with which they have been mingled in a 
stockpile or inventory, the subsequent transaction involving the goods 
is presumed to be in United States commerce unless, at the time of 
filling the order, the foreign-origin inventory on hand was sufficient 
to fill the order.
    (9) For purposes of this section, goods or services are considered 
to be acquired for the purpose of filling an order from or engaging in 
any other transaction with a person outside the United States where:
    (i) They are purchased by the foreign subsidiary, affiliate, or 
other permanent foreign establishment upon the receipt of an order from 
or on behalf of a customer with the intention that the goods or services 
are to go to the customer;
    (ii) They are purchased by the foreign subsidiary, affiliate, or 
other permanent foreign establishment to meet the needs of specified 
customers pursuant to understandings with those customers, although not 
for immediate delivery; or
    (iii) They are purchased by the foreign subsidiary, affiliate, or 
other permanent foreign establishment based on the anticipated needs of 
specified customers.
    (10) If any non-ancillary part of a transaction between a domestic 
concern's controlled foreign subsidiary, affiliate, or other permanent 
foreign establishment and a person outside the United States is in 
United States commerce, the entire transaction is in United States 
commerce. For example, if such a foreign subsidiary is engaged in 
filling an order from a non-United States customer both with goods 
acquired from the United States and with goods acquired elsewhere, the 
entire transaction with that customer is in United States commerce.

                Activities Outside United States Commerce

    (11) A transaction between a domestic concern's controlled foreign 
subsidiary, affiliate, or other permanent foreign establishment and a 
person outside the United States, not involving the purchase, sale, or 
transfer of goods or services (including information) to or from a 
person in the United States, is not an activity in United States 
commerce.
    (12) The activities of a domestic concern's controlled foreign 
subsidiary, affiliate, or other permanent foreign establishment with 
respect to goods acquired from a person in the United States are not in 
United States commerce where:
    (i) They were acquired without reference to a specific order from or 
transaction with a person outside the United States; and
    (ii) They were further manufactured, incorporated into, refined 
into, or reprocessed into another product.
    (13) The activities of a domestic concern's controlled foreign 
subsidiary, affiliate, or other permanent foreign establishment with 
respect to services acquired from a person in the United States are not 
in United States commerce where:
    (i) They were acquired without reference to a specific order from or 
transaction with a person outside the United States; or
    (ii) They are ancillary to the transaction with the person outside 
the United States.
    (14) For purposes of this section, services are ancillary services 
if they are provided to a controlled foreign subsidiary, affiliate, or 
other permanent foreign establishment primarily for its own use rather 
than for the use of a third person. These typically include financial, 
accounting, legal,transportation, and other services, whether provided 
by a domestic concern or an unrelated entity.
    (15) Thus, the provision of the project financing by a United States 
bank located in the United States to a controlled foreign subsidiary 
unrelated to the bank is an ancillary service which will not cause the 
underlying transaction to be in United States commerce. By contrast, 
where a domestic

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concern, on behalf of its controlled foreign subsidiary, gives a 
guaranty of performance to a foreign country customer, that is a service 
provided to the customer and, as such, brings that subsidiary's 
transaction with the customer into United States commerce. Similarly, 
architectural or engineering services provided by a domestic concern in 
connection with its controlled foreign subsidiary's construction project 
in a third country are services passed through to the subsidiary's 
customer and, as such, bring that subsidiary's foreign transaction into 
United States commerce.

                                 General

    (16) Regardless of whether the subsequent disposition of goods or 
services from the United States is in United States commerce, the 
original acquisition of goods or services from a person in the United 
States is an activity in United States commerce subject to this part. 
Thus, if a domestic concern's controlled foreign subsidiary engages in a 
prohibited refusal to do business in stocking its inventory with goods 
from the United States, that action is subject to this part whether or 
not subsequent sales from that inventory are.
    (17) In all the above, goods and services will be considered to have 
been acquired from a person in the United States whether they were 
acquired directly or indirectly through a third party, where the person 
acquiring the goods or services knows or expects, at the time he places 
the order, that they will be delivered from the United States.

                            Letters of Credit

    (18) Implementation of a letter of credit in the United States by a 
United States person located in the United States, including a permanent 
United States establishment of a foreign concern, is an activity in 
United States commerce.
    (19) Implementation of a letter of credit outside the United States 
by a United States person located outside the United States is in United 
States commerce where the letter of credit (a) specifies a United States 
address for the beneficiary, (b) calls for documents indicating shipment 
from the United States, or (c) calls for documents indicating that the 
goods are of United States origin.
    (20) See Sec. 760.2(f) of this part on ``Letters of Credit'' to 
determine the circumstances in which paying, honoring, confirming, or 
otherwise implementing a letter of credit is covered by this part.

  Examples of Activities in the Interstate or Foreign Commerce of the 
                              United States

    The following examples are intended to give guidance in determining 
the circumstances in which an activity is in the interstate or foreign 
commerce of the United States. They are illustrative, not comprehensive.

            United States Person Located in the United States

    (i) U.S. company A exports goods from the United States to a foreign 
country. A's activity is in U.S. commerce, because A is exporting goods 
from the United States.
    (ii) U.S. company A imports goods into the United States from a 
foreign country. A's activity is in U.S. commerce, because A is 
importing goods into the United States.
    (iii) U.S. engineering company A supplies consulting services to its 
controlled foreign subsidiary, B. A's activity is in U.S. commerce, 
because A is exporting services from the United States.
    (iv) U.S. company A supplies consulting services to foreign company 
B. B is unrelated to A or any other U.S. person.
    A's activity is in U.S. commerce even though B, a foreign-owned 
company located outside the United States, is not subject to this part, 
because A is exporting services from the United States.
    (v) Same as (iv), except A is a bank located in the United States 
and provides a construction loan to B.
    A's activity is in U.S. commerce even though B is not subject to 
this part, because A is exporting financial services from the United 
States.
    (vi) U.S. company A issues policy directives from time to time to 
its controlled foreign subsidiary, B, governing the conduct of B's 
activities with boycotting countries.
    A's activity in directing the activities of its foreign subsidiary, 
B, is an activity in U.S. commerce.

     Foreign Subsidiaries, Affiliates, and Other Permanent Foreign 
                   Establishments of Domestic Concerns

    (i) A, a controlled foreign subsidiary of U.S. company B, purchases 
goods from the United States.

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    A's purchase of goods from the United States is in U.S. commerce, 
because A is importing goods from the United States. Whether A's 
subsequent disposition of these goods is in U.S. commerce is irrelevant. 
Similarly, the fact that A purchased goods from the United States does 
not, in and of itself, make any subsequent disposition of those goods an 
activity in U.S. commerce.
    (ii) A, a controlled foreign subsidiary of U.S. company B, receives 
an order from boycotting country Y for construction materials. A places 
an order with U.S. company B for the materials.
    A's transaction with Y is an activity in U.S. commerce, because the 
materials are purchased from the United States for the purpose of 
filling the order from Y.
    (iii) A, a controlled foreign subsidiary of U.S. company B, receives 
an order from boycotting country Y for construction materials. A places 
an order with U.S. company B for some of the materials, and with U.S. 
company C, an unrelated company, for the rest of the materials.
    A's transaction with Y is an activity in U.S. commerce, because the 
materials are purchased from the United States for the purpose of 
filling the order from Y. It makes no difference whether the materials 
are ordered from B or C.
    (iv) A, a controlled foreign subsidiary of U.S. company B, is in the 
wholesale and retail appliance sales business. A purchases finished air 
conditioning units from the United States from time to time in order to 
stock its inventory. A's inventory is also stocked with air conditioning 
units purchased outside the United States. A receives an order for air 
conditioning units from Y, a boycotting country. The order is filled 
with U.S.-origin units in A's inventory.
    A's transaction with Y is in U.S. commerce, because its U.S.-origin 
goods are resold without substantial alteration.
    (v) Same as (iv), except that A is in the chemicals distribution 
business. Its U.S.-origin goods are mingled in inventory with foreign-
origin goods.
    A's sale to Y of unaltered goods from its general inventory is 
presumed to be in U.S. commerce unless A can show that at the time of 
the sale the foreign-origin inventory on hand was sufficient to cover 
the shipment to Y.
    (vi) A, a foreign subsidiary of U.S. company B, receives an order 
from boycotting country Y for computers. A places an order with U.S. 
company B for some of the components; with U.S. company C, an unrelated 
company, for other components; and with foreign company D for the rest 
of the components. A then assembles the computers and ships them to Y.
    A's transaction with Y is an activity in U.S. commerce, because some 
of the components are acquired from the United States for purposes of 
filling an order from Y.
    (vii) Same as (vi), except A purchases all the components from non-
U.S.sources.
    A's transaction with Y is not an activity in U.S. commerce, because 
it involves no export of goods from the United States. It makes no 
difference whether the technology A uses to manufacture computers was 
originally acquired from its U.S. parent.
    (viii) A, a controlled foreign subsidiary of U.S. company B, 
manufactures computers. A stocks its general components and parts 
inventory with purchases made at times from the United States and at 
times from foreign sources. A receives an order from Y, a boycotting 
country, for computers. A fills that order by manufacturing the 
computers using materials from its general inventory.
    A's transaction with Y is not in U.S. commerce, because the U.S.-
origin components are not acquired for the purpose of meeting the 
anticipated needs of specified customers in Y. It is irrelevant that A's 
operations may be based on U.S.-origin technology.
    (ix) Same as (viii), except that in anticipation of the order from 
Y, A orders and receives the necessary materials from the United States.
    A's transaction with Y is in U.S. commerce, because the U.S.-origin 
goods were acquired for the purpose of filling an anticipated order from 
Y.
    (x) A, a controlled foreign subsidiary of U.S. company B, 
manufactures typewriters. It buys typewriter components both from the 
United States and from foreign sources. A sells its output in various 
places throughout the world, including boycotting country Y. Its sales 
to Y vary from year to year, but have averaged approximately 20 percent 
of sales for the past five years. A expects that its sales to Y will 
remain at approximately that level in the years ahead although it has no 
contracts or orders from Y on hand.
    A's sales of typewriters to Y are not in U.S. commerce, because the 
U.S. components are not acquired for the purpose of filling an order 
from Y. A general expectancy of future sales is not an ``order'' within 
the meaning of this section.
    (xi) U.S. company A's corporate counsel provides legal advice to B, 
its controlled foreign subsidiary, on the applicability of this Part to 
B's transactions.
    While provision of this legal advice is itself an activity in U.S. 
commerce, it does not, in and of itself, bring B's activities into U.S. 
commerce.
    (xii) A, a controlled foreign subsidiary of U.S. company B, is in 
the general construction business. A enters into a contract with 
boycotting country Y to construct a power plant in Y. In preparing 
engineering drawings and specifications, A uses the advice and 
assistance of B.

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    A's transaction with Y is in U.S. commerce, because B's services are 
used for purposes of fulfilling the contract with Y. B's services are 
not ancillary services, because the engineering services in connection 
with construction of the power plant are part of the services ultimately 
provided to Y by A.
    (xiii) Same as (xii), except that A gets no engineering advice or 
assistance from B. However, B's corporate counsel provides legal advice 
to A regarding the structure of the transaction. In addition, B's 
corporate counsel draws up the contract documents.
    A's transaction with Y is not in U.S. commerce. The legal services 
provided to A are ancillary services, because they are not part of the 
services provided to Y by A in fulfillment of its contract with Y.
    (xiv) A, a controlled foreign subsidiary of U.S. company B, enters 
into a contract to construct an apartment complex in boycotting country 
Y. A will fulfill its contract completely with goods and services from 
outside the United States. Pursuant to a provision in the contract, B 
guarantees A's performance of the contract.
    A's transaction with Y is in U.S. commerce, because B's guaranty of 
A's performance involves the acquisition of services from the United 
States for purposes of fulfilling the transaction with Y, and those 
services are part of the services ultimately provided to Y.
    (xv) Same as (xiv), except that the guaranty of A's performance is 
supplied by C, a non-U.S. person located outside the United States. 
However, unrelated to any particular transaction, B from time to time 
provides general financial, legal, and technical services to A.
    A's transaction with Y is not in U.S. commerce, because the services 
acquired from the United States are not acquired for purposes of 
fulfilling the contract with Y.
    (xvi) A, a foreign subsidiary of U.S. company B, has a contract with 
boycotting country Y to conduct oil drilling operations in that country. 
In conducting these operations, A from time to time seeks certain 
technical advice from B regarding the operation of the drilling rigs.
    A's contract with Y is in U.S. commerce, because B's services are 
sought for purposes of fulfilling the contract with Y and are part of 
the services ultimately provided to Y.
    (xvii) A, a controlled foreign subsidiary of U.S. company B, enters 
into a contract to sell typewriters to boycotting country Y. A is 
located in non-boycotting country P. None of the components are acquired 
from the United States. A engages C, a U.S. shipping company, to 
transport the typewriters from P to Y.
    A's sales to Y are not in U.S. commerce, because in carrying A's 
goods, C is providing an ancillary service to A and not a service to Y.
    (xviii) Same as (xvii), except that A's contract with Y calls for 
title to pass to Y in P. In addition, the contract calls for A to engage 
a carrier to make delivery to Y.
    A's sales to Y are in U.S. commerce, because in carrying Y's goods, 
C is providing a service to A which is ultimately provided to Y.
    (xix) A, a controlled foreign subsidiary of U.S. company B, has 
general product liability insurance with U.S. company C. Foreign-origin 
goods sold from time to time by A to boycotting country Y are covered by 
the insurance policy.
    A's sales to Y are not in U.S. commerce, because the insurance 
provided by C is an ancillary service provided to A which is not 
ultimately provided to Y.
    (xx) A, a controlled foreign subsidiary of U.S. company B, 
manufactures automobiles abroad under a license agreement with B. From 
time to time, A sells such goods to boycotting country Y.
    A's sales to Y are not in U.S. commerce, because the rights conveyed 
by the license are not acquired for the specific purpose of engaging in 
transactions with Y.

    (e) ``Intent''. (1) This part prohibits a United States person from 
taking or knowingly agreeing to take certain specified actions with 
intent to comply with, further, or support an unsanctioned foreign 
boycott.
    (2) A United States person has the intent to comply with, further, 
or support an unsanctioned foreign boycott when such a boycott is at 
least one of the reasons for that person's decision whether to take a 
particular prohibited action. So long as that is at least one of the 
reasons for that person's action, a violation occurs regardless of 
whether the prohibited action is also taken for non-boycott reasons. 
Stated differently, the fact that such action was taken for legitimate 
business reasons does not remove that action from the scope of this part 
if compliance with an unsanctioned foreign boycott was also a reason for 
the action.
    (3) Intent is a necessary element of any violation of this part. It 
is not sufficient that one take action that is specifically prohibited 
by this part. It is essential that one take such action with intent to 
comply with, further,or support an unsanctioned foreign boycott. 
Accordingly, a person who inadvertently, without boycott intent, takes a 
prohibited action, does not commit any violation of this part.

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    (4) Intent in this context means the reason or purpose for one's 
behavior. It does not mean that one has to agree with the boycott in 
question or desire that it succeed or that it be furthered or supported. 
But it does mean that the reason why a particular prohibited action was 
taken must be established.
    (5) Reason or purpose can be proved by circumstantial evidence. For 
example, if a person receives a request to supply certain boycott 
information, the furnishing of which is prohibited by this part, and he 
knowingly supplies that information in response, he clearly intends to 
comply with that boycott request. It is irrelevant that he may disagree 
with or object to the boycott itself. Information will be deemed to be 
furnished with the requisite intent if the person furnishing the 
information knows that it was sought for boycott purposes. On the other 
hand, if a person refuses to do business with someone who happens to be 
blacklisted, but the reason is because that person produces an inferior 
product, the requisite intent does not exist.
    (6) Actions will be deemed to be taken with intent to comply with an 
unsanctioned foreign boycott if the person taking such action knew that 
such action was required or requested for boycott reasons. On the other 
hand, the mere absence of a business relationship with a blacklisted 
person or with or in a boycotted country does not indicate the existence 
of the requisite intent.
    (7) In seeking to determine whether the requisite intent exists, all 
available evidence will be examined.

                         Examples of ``Intent''

    The following examples are intended to illustrate the factors which 
will be considered in determining whether the required intent exists. 
They are illustrative, not comprehensive.
    (i) U.S. person A does business in boycotting country Y. In 
selecting firms to supply goods for shipment to Y, A chooses supplier B 
because B's products are less expensive and of higher quality than the 
comparable products of supplier C. A knows that C is blacklisted, but 
that is not a reason for A's selection of B.
    A's choice of B rather than C is not action with intent to comply 
with Y's boycott, because C's blacklist status is not a reason for A's 
action.
    (ii) Same as (i), except that A chooses B rather than C in part 
because C is blacklisted by Y.
    Since C's blacklist status is a reason for A's choice, A's action is 
taken with intent to comply with Y's boycott.
    (iii) U.S. person A bids on a tender issued by boycotting country Y. 
A inadvertently fails to notice a prohibited certification which appears 
in the tender document. A's bid is accepted.
    A's action in bidding was not taken with intent to comply with Y's 
boycott, because the boycott was not a reason for A's action.
    (iv) U.S. bank A engages in letter of credit transactions, in favor 
of U.S. beneficiaries, involving the shipments of U.S. goods to 
boycotting country Y. As A knows, such letters of credit routinely 
contain conditions requiring prohibited certifications. A fails to take 
reasonable steps to prevent the implementation of such letters of 
credit. A receives for implementation a letter of credit which in fact 
contains a prohibited condition but does not examine the letter of 
credit to determine whether it contains such a condition.
    Although Y's boycott may not be a specific reason for A's action in 
implementing the letter of credit with a prohibited condition, all 
available evidence shows that A's action was taken with intent to comply 
with the boycott, because A knows or should know that its procedures 
result in compliance with the boycott.
    (v) U.S. bank A engages in letter of credit transactions, in favor 
of U.S. beneficiaries, involving the shipment of U.S. goods to 
boycotting country Y. As A knows, the documentation accompanying such 
letters of credit sometimes contains prohibited certifications. In 
accordance with standard banking practices applicable to A, it does not 
examine such accompanying documentation. A receives a letter of credit 
in favor of a U.S. beneficiary. The letter of credit itself contains no 
prohibited conditions. However, the accompanying documentation, which A 
does not examine, does contain such a condition.
    All available evidence shows that A's action in implementing the 
letter of credit was not taken with intent to comply with the boycott, 
because A has no affirmative obligation to go beyond applicable standard 
banking practices in implementing letters of credit.
    (vi) A, a U.S. company, is considering opening a manufacturing 
facility in boycotted country X. A already has such a facility in 
boycotting country Y. After exploring the possibilities in X, A 
concludes that the market does not justify the move. A is aware that if 
it did open a plant in X, Y might object because of Y's boycott of X. 
However Y's possible objection is not a reason for A's decision not to 
open a plant in X.

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    A's decision not to proceed with the plant in X is not action with 
intent to comply with Y's boycott, because Y's boycott of X is not a 
reason for A's decision.
    (vii) Same as (vi), except that after exploring the business 
possibilities in X, A concludes that the market does justify the move to 
X. However, A does not open the plant because of Y's possible objections 
due to Y's boycott of X.
    A's decision not to proceed with the plant in X is action taken with 
intent to comply with Y's boycott, because Y's boycott is a reason for 
A's decision.
    (viii) A, a U.S. chemical manufacturer, receives a ``boycott 
questionnaire'' from boycotting country Y asking, among other things, 
whether A has any plants located in boycotted country X. A, which has 
never supported Y's boycott of X, responds to Y's questionnaire, 
indicating affirmatively that it does have plants in X and that it 
intends to continue to have plants in X.
    A's responding to Y's questionnaire is deemed to be action with 
intent to comply with Y's boycott because A knows that the questionnaire 
is boycott-related. It is irrelevant that A does not also wish to 
support Y's boycott.
    (ix) U.S. company A is on boycotting country Y's blacklist. In an 
attempt to secure its removal from the blacklist, A wishes to supply to 
Y information which demonstrates that A does at least as much business 
in Y and other countries engaged in a boycott of X as it does in X. A 
intends to continue its business in X undiminished and in fact is 
exploring and intends to continue exploring an expansion of its 
activities in X without regard to Y's boycott.
    A may furnish the information, because in doing so it has no intent 
to comply with, further, or support Y's boycott.
    (x) U.S. company A has a manufacturing facility in boycotted country 
X. A receives an invitation to bid on a construction project in 
boycotting country Y. The invitation states that all bidders must 
complete a boycott questionnaire and send it in with the bid. The 
questionnaire asks for information about A's business relationships with 
X. Regardless of whether A's bid is successful, A intends to continue 
its business in X undiminished and in fact is exploring and intends to 
continue exploring an expansion of its activities in X without regard to 
Y's boycott.
    A may not answer the questionnaire, because, despite A's intentions 
with regard to its business operations in X, Y's request for completion 
of the questionnaire is for boycott purposes and by responding, A's 
action would betaken with intent to comply with Y's boycott.

    (Note: Example (ix) is distinguishable from (x), because in (ix) A 
is not responding to any boycott request or requirement. Instead, on its 
own initiative, it is supplying information to demonstrate non-
discriminatory conduct as between X and Y without any intent to comply 
with, further, or support Y's boycott.)



Sec. 760.2  Prohibitions.

    (a) Refusals to do business.

               Prohibition Against Refusals To Do Business

    (1) No United States person may: refuse, knowingly agree to refuse, 
require any other person to refuse, or knowingly agree to require any 
other person to refuse, to do business with or in a boycotted country, 
with any business concern organized under the laws of a boycotted 
country, with any national or resident of a boycotted country, or with 
any other person, when such refusal is pursuant to an agreement with the 
boycotting country, or a requirement of the boycotting country, or a 
request from or on behalf of the boycotting country.
    (2) Generally, a refusal to do business under this section consists 
of action that excludes a person or country from a transaction for 
boycott reasons. This includes a situation in which a United States 
person chooses or selects one person over another on a boycott basis or 
takes action to carry out another person's boycott-based selection when 
he knows or has reason to know that the other person's selection is 
boycott-based.
    (3) Refusals to do business which are prohibited by this section 
include not only specific refusals, but also refusals implied by a 
course or pattern of conduct. There need not be a specific offer and 
refusal to constitute a refusal to do business; a refusal may occur when 
a United States person has a financial or commercial opportunity and 
declines for boycott reasons to consider or accept it.
    (4) A United States person's use of either a boycott-based list of 
persons with whom he will not deal (a so-called ``blacklist'') or a 
boycott-based list of persons with whom he will deal (a so-called 
``whitelist'') constitutes a refusal to do business.
    (5) An agreement by a United States person to comply generally with 
the laws of the boycotting country with

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which it is doing business or an agreement that local laws of the 
boycotting country shall apply or govern is not, in and of itself, a 
refusal to do business. Nor, in and of itself, is use of a contractual 
clause explicitly requiring a person to assume the risk of loss of non-
delivery of his products a refusal to do business with any person who 
will not or cannot comply with such a clause. (But see Sec. 760.4 of 
this part on ``Evasion.'')
    (6) If, for boycott reasons, a United States general manager chooses 
one supplier over another, or enters into a contract with one supplier 
over another, or advises its client to do so, then the general manager's 
actions constitute a refusal to do business under this section. However, 
it is not a refusal to do business under this section for a United 
States person to provide management, procurement, or other pre-award 
services for another person so long as the provision of such pre-award 
services is customary for that firm (or industry of which the firm is a 
part), without regard to the boycotting or non-boycotting character of 
the countries in which they are performed, and the United States person, 
in providing such services, does not act to exclude a person or country 
from the transaction for boycott reasons, or otherwise take actions that 
are boycott-based. For example, a United States person under contract to 
provide general management services in connection with a construction 
project in a boycotting country may compile lists of qualified bidders 
for the client if that service is a customary one and if persons who are 
qualified are not excluded from that list because they are blacklisted.
    (7) With respect to post-award services, if a client makes a 
boycott-based selection, actions taken by the United States general 
manager or contractor to carry out the client's choice are themselves 
refusals to do business if the United States contractor knows or has 
reason to know that the client's choice was boycott-based. (It is 
irrelevant whether the United States contractor also provided pre-award 
services.) Such actions include entering into a contract with the 
selected supplier, notifying the supplier of the client's choice, 
executing a contract on behalf of the client, arranging for inspection 
and shipment of the supplier's goods, or taking any other action to 
effect the client's choice. (But see Sec. 760.3(c) of this part on 
``Compliance with Unilateral Selection'' as it may apply to post-award 
services.)
    (8) An agreement is not a prerequisite to a violation of this 
section since the prohibition extends to actions taken pursuant not only 
to agreements but also to requirements of, and requests from or on 
behalf of, a boycotting country.
    (9) Agreements under this section may be either express or implied 
by a course or pattern of conduct. There need not be a direct request 
from a boycotting country for action by a United States person to have 
been taken pursuant to an agreement with or requirement of a boycotting 
country.
    (10) This prohibition, like all others, applies only with respect to 
a United States person's activities in the interstate or foreign 
commerce of the United States and only when such activities are 
undertaken with intent to comply with, further, or support an 
unsanctioned foreign boycott. The mere absence of a business 
relationship with or in the boycotted country, with any business concern 
organized under the laws of the boycotted country, with national(s) or 
resident(s) of the boycotted country, or with any other person does not 
indicate the existence of the required intent.

      Examples of Refusals and Agreements To Refuse To Do Business

    The following examples are intended to give guidance in determining 
the circumstances in which, in a boycott situation, a refusal to do 
business or an agreement to refuse to do business is prohibited. They 
are illustrative, not comprehensive.

                         Refusals To Do Business

    (i) A, a U.S. manufacturer, receives an order for its products from 
boycotting country Y. To fill that order, A solicits bids from U.S. 
companies B and C, manufacturers of components used in A's products. A 
does not, however, solicit bids from U.S. companies D or E, which also 
manufacture such components, because it knows that D and E are 
restricted from doing business in Y and that

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their products are, therefore, not importable into that country.
    Company A may not refuse to solicit bids from D and E for boycott 
reasons, because to do so would constitute a refusal to do business with 
those persons.
    (ii) A, a U.S. exporter, uses company B, a U.S. insurer, to insure 
the shipment of its goods to all its overseas customers. For the first 
time, A receives an order for its products from boycotting country Y. 
Knowing that B is on the blacklist of Y, A arranges with company C, a 
non-blacklisted U.S. insurer, to insure the shipment of its goods to Y.
    A's action constitutes a refusal to do business with B.
    (iii) A, a U.S. exporter, purchases all its liability insurance from 
company B, a U.S. company that does business in boycotted country X. A 
wishes to expand its operations into country Y, the boycotting country. 
Before doing so, A decides to switch from insurer B to insurer C in 
anticipation of a request from Y that A sever its relations with B as a 
condition of doing business in Y.
    A may not switch insurers for this reason, because doing so would 
constitute a refusal to do business with B.
    (iv) U.S. company A exports goods to boycotting country Y. In 
selecting vessels to transport the goods to Y, A chooses only from among 
carriers which call at ports in Y.
    A's action is not a refusal to do business with carriers which do 
not call at ports in Y.
    (v) A, a U.S. bank with a branch office in boycotting country Y, 
sends representatives to boycotted country X to discuss plans for 
opening a branch office in X. Upon learning of these discussions, an 
official of the local boycott office in Y advises A's local branch 
manager that if A opens an office in X it will no longer be allowed to 
do business in Y. As a result of this notification, A decides to abandon 
its plans to open a branch in X.
    Bank A may not abandon its plans to open a branch in X as a result 
of Y's notification, because doing so would constitute a refusal to do 
business in boycotted country X.
    (vi) A, a U.S. company that manufactures office equipment, has been 
restricted from doing business in boycotting country Y because of its 
business dealings with boycotted country X. In an effort to have itself 
removed from Y's blacklist, A ceases its business in X.
    A's action constitutes a refusal to do business in boycotted country 
X.
    (vii) A, a U.S. computer company, does business in boycotting 
country Y. A decides to explore business opportunities in boycotted 
country X. After careful analysis of possible business opportunities in 
X, A decides, solely for business reasons, not to market its products in 
X.
    A's decision not to proceed is not a refusal to do business, because 
it is not based on boycott considerations. A has no affirmative 
obligation to do business in X.
    (viii) A, a U.S. oil company with operations in boycotting country 
Y, has regularly purchased equipment from U.S. petroleum equipment 
suppliers B, C, and D, none of whom is on the blacklist of Y. Because of 
its satisfactory relationship with B, C, and D, A has not dealt with 
other suppliers, including supplier E, who is blacklisted by Y.
    A's failure affirmatively to seek or secure business with 
blacklisted supplier E is not a refusal to do business with E.
    (ix) Same as (viii), except U.S. petroleum equipment supplier E, a 
company on boycotting country Y's blacklist, offers to supply U.S. oil 
company A with goods comparable to those provided by U.S. suppliers B, 
C, and D. A, because it has satisfactorily, established relationships 
with suppliers B, C, and D, does not accept supplier E's offer.
    A's refusal of supplier E's offer is not a refusal to do business, 
because it is based solely on non-boycott considerations. A has no 
affirmative obligation to do business with E.
    (x) A, a U.S. construction company, enters into a contract to build 
an office complex in boycotting country Y. A receives bids from B and C, 
U.S. companies that are equally qualified suppliers of electrical cable 
for the project. A knows that B is blacklisted by Y and that C is not. A 
accepts C's bid, in part because C is as qualified as the other 
potential supplier and in part because C is not blacklisted.
    A's decision to select supplier C instead of blacklisted supplier B 
is a refusal to do business, because the boycott was one of the reasons 
for A's decision.
    (xi) A, a U.S. general contractor, has been retained to construct a 
highway in boycotting country Y. A circulates an invitation to bid to 
U.S. manufacturers of road-building equipment. One of the conditions 
listed in the invitation to bid is that, in order for A to obtain prompt 
service, suppliers will be required to maintain a supply of spare parts 
and a service facility in Y. A includes this condition solely for 
commercial reasons unrelated to the boycott. Because of this condition, 
however, those suppliers on Y's blacklist do not bid, since they would 
be unable to satisfy the parts and services requirements.
    A's action is not a refusal to do business, because the contractual 
condition was included solely for legitimate business reasons and was 
not boycott-based.
    (xii) Company A, a U.S. oil company, purchases drill bits from U.S. 
suppliers for export to boycotting country Y. In its purchase orders, A 
includes a provision requiring the supplier to make delivery to A's 
facilities in Y and providing that title to the goods does not pass 
until delivery has been made. As is customary under such an arrangement, 
the supplier bears all risks of loss, including loss

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from fire, theft, perils of the sea, and inability to clear customs, 
until title passes.
    Insistence on such an arrangement does not constitute a refusal to 
do business, because this requirement is imposed on all suppliers 
whether they are blacklisted or not. (But see Sec. 760.4 of this part on 
``Evasion'').
    (xiii) A, a U.S. engineering and construction company, contracts 
with a government agency in boycotting country Y to perform a variety of 
services in connection with the construction of a large industrial 
facility in Y. Pursuant to this contract, A analyzes the market of 
prospective suppliers, compiles a suggested bidders list, analyzes the 
bids received, and makes recommendations to the client. The client 
independently selects and awards the contract to supplier C for boycott 
reasons. All of A's services are performed without regard to Y's 
blacklist or any other boycott considerations, and are the type of 
services A provides clients in both boycotting and non-boycotting 
countries.
    A's actions do not constitute a refusal to do business, because, in 
the provision of pre-award services, A has not excluded the other 
bidders and because A customarily provides such services to its clients.
    (xiv) Same as (xiii), except that in compiling a list of prospective 
suppliers, A deletes suppliers he knows his client will refuse to select 
because they are blacklisted. A knows that including the names of 
blacklisted suppliers will neither enhance their chances of being 
selected nor provide his client with a useful service, the function for 
which he has been retained.
    A's actions, which amount to furnishing a so-called ``whitelist'', 
constitute refusals to do business, because A's pre-award services have 
not been furnished without regard to boycott considerations.
    (xv) A, a U.S. construction firm, provides its boycotting country 
client with a permissible list of prospective suppliers, B, C, D, and E. 
The client independently selects and awards the contract to C, for 
boycott reasons, and then requests A to advise C of his selection, 
negotiate the contract with C, arrange for the shipment, and inspect the 
goods upon arrival. A knows that C was chosen by the client for boycott 
reasons.
    A's action in complying with his client's direction is a refusal to 
do business, because A's post-award actions carry out his client's 
boycott-based decision. (Note: Whether A's action comes within the 
unilateral selection exception depends upon factors discussed in 
Sec. 760.3(d) of this part).
    (xvi) Same as (xv), except that A is building the project on a 
turnkey basis and will retain title until completion. The client 
instructs A to contract only with C.
    A's action in contracting with C constitutes a refusal to do 
business, because it is action that excludes blacklisted persons from 
the transaction for boycott reasons. (Note: Whether A's action comes 
within the unilateral selection exception depends upon factors discussed 
in Sec. 760.3(d) of this part).
    (xvii) A, a U.S. exporter of machine tools, receives an order for 
drill presses from boycotting country Y. The cover letter from Y's 
procurement official states that A was selected over other U.S. 
manufacturers in part because A is not on Y's blacklist.
    A's action in filling this order is not a refusal to do business, 
because A has not excluded anyone from the transaction.
    (xviii) A, a U.S. engineering firm under contract to construct a dam 
in boycotting country Y, compiles, on a non-boycott basis, a list of 
potential heavy equipment suppliers, including information on their 
qualifications and prior experience. A then solicits bids from the top 
three firms on its list-B, C, and D-because they are the best qualified.
    None of them happens to be blacklisted. A does not solicit bids from 
E, F, or G, the next three firms on the list, one of whom is on Y's 
blacklist.
    A's decision to solicit bids from only B, C, and D, is not a refusal 
to do business with any person, because the solicited bidders were not 
selected for boycott reasons.
    (xix) U.S. bank A receives a letter of credit in favor of U.S. 
beneficiary B. The letter of credit requires B to certify that he is not 
blacklisted. B meets all other conditions of the letter of credit but 
refuses to certify as to his blacklist status. A refuses to pay B on the 
letter of credit solely because B refuses to certify as to his blacklist 
status.
    A has refused to do business with another person pursuant to a 
boycott requirement or request.
    (xx) U.S. bank A receives a letter of credit in favor of U.S. 
beneficiary B. The letter of credit requires B to provide a 
certification from the steamship line that the vessel carrying the goods 
is not blacklisted. B seeks payment from A and meets all other 
conditions of the letter of credit but refuses or is unable to provide 
the certification from the steamship line about the vessel's blacklist 
status. A refuses to pay B on the letter of credit solely because B 
cannot or will not provide the certification.
    A has required another person to refuse to do business pursuant to a 
boycott requirement or request by insisting that B obtain such a 
certificate. (Either A or B may request an amendment to the letter of 
credit substituting a certificate of vessel eligibility, however. See 
Example (xxi) below).
    (xxi) U.S. bank A receives a letter of credit from a bank in 
boycotting country Y in favor of U.S. beneficiary B. The letter of 
credit requires B to provide a certification from the steamship line 
that the vessel carrying the goods is eligible to enter the ports in Y. 
B seeks payment from A and meets all

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other conditions of the letter of credit. A refuses to pay B solely 
because B cannot or will not provide the certification.
    A has neither refused, nor required another person to refuse, to do 
business with another person pursuant to a boycott requirement or 
request because the vessel eligibility certificate is a common 
requirement for non-boycott purposes.
    (xxii) U.S. bank A confirms a letter of credit in favor of U.S. 
beneficiary B. The letter of credit contains a requirement that B 
certify that he is not blacklisted. B presents the letter of credit to 
U.S. bank C, a correspondent of bank A. B does not present the 
certificate of blacklist status to bank C, but, in accordance with these 
rules, bank C pays B, and then presents the letter of credit and 
documentation to bank A for reimbursement. Bank A refuses to reimburse 
bank C because the blacklist certification of B is not included in the 
documentation.
    A has required another person to refuse to do business with a person 
pursuant to a boycott requirement or request by insisting that C obtain 
the certificate from B.
    (xxiii) U.S. bank A receives a letter of credit in favor of U.S. 
beneficiary B. The letter of credit requires B to certify that he is not 
blacklisted. B fails to provide such a certification when he presents 
the documents to A for payment. A notifies B that the certification has 
not been submitted.
    A has not refused to do business with another person pursuant to a 
boycott requirement by notifying B of the omitted certificate. A may not 
refuse to pay on the letter of credit, however, if B states that B will 
not provide such a certificate.
    (xxiv) U.S. bank A receives a letter of credit in favor of U.S. 
beneficiary B from the issuing bank for the purpose of confirmation, 
negotiation or payment. The letter of credit requires B to certify that 
he is not blacklisted. A notifies B that it is contrary to the policy of 
A to handle letters of credit containing this condition and that, unless 
an amendment is obtained deleting this condition, A will not implement 
the letter of credit.
    A has not refused to do business with another person pursuant to a 
boycott requirement, because A has indicated its policy against 
implementing the letter of credit containing the term without regard to 
B's ability or willingness to furnish such a certificate.

                   Agreements To Refuse To Do Business

    (i) A, a U.S. construction firm, is retained by an agency of 
boycotting country Y to build a primary school. The proposed contract 
contains a clause stating that A ``may not use goods or services in the 
project that are produced or provided by any person restricted from 
having a business relationship with country Y by reason of Y's boycott 
against country X''.
    A's action in entering into such a contract would constitute an 
agreement to refuse to do business, because it is an agreement to 
exclude blacklisted persons from the transaction. A may, however, 
renegotiate this clause so that it does not contain terms prohibited by 
this part.
    (ii) A, a U.S. manufacturer of commercial refrigerators and 
freezers, receives an invitation to bid from boycotting country Y. The 
tender states that the bidder must agree not to deal with companies on 
Y's blacklist. A does not know which companies are on the blacklist, and 
A's bid makes no commitment regarding not dealing with certain 
companies. A's bid in response to the tender is accepted.
    At the point when A's bid is accepted, A has agreed to refuse to do 
business with blacklisted persons, because the terms of Y's tender are 
part of the contract between Y and A.
    (iii) A, a U.S. construction firm, is offered a contract to perform 
engineering and construction services in connection with a project 
located in boycotting country Y. The contract contains a clause stating 
that, in the event of a contract dispute, the laws of Y will apply.
    A may enter into the contract. Agreement that the laws of boycotting 
country Y will control in resolving a contract dispute is not an 
agreement to refuse to do business.
    (iv) Same as (iii), except that the contract contains a clause that 
A and its employees will comply with the laws of boycotting country Y. A 
knows that Y has a number of boycott laws.
    Such an agreement is not, in and of itself, an agreement to refuse 
to do business. If, however, A subsequently refuses to do business with 
someone because of the laws of Y, A's action would be a refusal to do 
business.
    (v) Same as (iv), except that the contract contains a clause that A 
and its employees will comply with the laws of boycotting country Y, 
``including boycott laws''.
    A's agreeing, without qualification, to comply with local boycott 
laws constitutes an agreement to refuse to do business.
    (vi) Same as (v), except that A inserts a proviso ``except insofar 
as Y's laws conflict with U.S. laws'', or words to that effect.
    Such an agreement is not an agreement to refuse to do business.
    (vii) A, a U.S. general contractor, is retained to construct a 
pipeline in boycotting country Y. A provision in the proposed contract 
stipulates that in purchasing equipment, supplies, and services A must 
give preference to companies located in host country Y.
    A may agree to this contract provision. Agreeing to a ``buy local'' 
contract provision is not an agreement to refuse to do business,

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because A's agreement is not made for boycott reasons.
    (viii) A, a U.S. exporter planning to sell retail goods to customers 
in boycotting country Y, enters into a contract to purchase goods 
wholesale from B, a U.S. appliance manufacturer. A's contract with B 
includes a provision stipulating that B may not use components or 
services of blacklisted companies in the manufacture of its appliances.
    A's contract constitutes a refusal to do business, because it would 
require another person, B, to refuse to do business with other persons 
for boycott reasons. B may not agree to such a contract, because it 
would be agreeing to refuse to do business with other persons for 
boycott reasons.
    (ix) Same as (viii), except that A and B reach an implicit 
understanding that B will not use components or services of blacklisted 
companies in the manufacture of goods to be exported to Y. In the 
manufacture of appliances to be sold to A for export to non-boycotting 
countries, B uses components manufactured by blacklisted companies.
    The actions of both A and B constitute agreement to refuse to do 
business. The agreement is implied by their pattern of conduct.
    (x) Boycotting country Y orders goods from U.S. company B. Y opens a 
letter of credit with foreign bank C in favor of B. The letter of credit 
specifies that negotiation of the letter of credit with a bank that 
appears on the country X boycott blacklist is prohibited. U.S. bank A, 
C's correspondent bank, advises B of the letter of credit. B presents 
documentation to bank A seeking to be paid on the letter of credit, 
without amending or otherwise taking exception to the boycott condition.
    B has agreed to refuse to do business with blacklisted banks 
because, by presenting the letter of credit for payment, B has accepted 
all of its terms and conditions.

    (b) Discriminatory actions.

            Prohibition Against Taking Discriminatory Actions

    (1) No United States person may:
    (i) Refuse to employ or otherwise discriminate against any 
individual who is a United States person on the basis of race, religion, 
sex, or national origin;
    (ii) Discriminate against any corporation or other organization 
which is a United States person on the basis of the race, religion, sex, 
or national origin of any owner, officer, director, or employee of such 
corporation or organization;
    (iii) Knowingly agree to take any of the actions described in 
paragraph (b)(1)(i) and (ii) of this section; or
    (iv) Require or knowingly agree to require any other person to take 
any of the actions described in paragraph (b)(1)(i) and (ii) of this 
section.
    (2) This prohibition shall apply whether the discriminatory action 
is taken by a United States person on its own or in response to an 
agreement with, request from, or requirement of a boycotting country. 
This prohibition, like all others, applies only with respect to a United 
States person's activities in the interstate or foreign commerce of the 
United States and only when such activities are undertaken with intent 
to comply with, further, or support an unsanctioned foreign boycott.
    (3) The section does not supersede or limit the operation of the 
civil rights laws of the United States.

                   Examples of Discriminatory Actions

    The following examples are intended to give guidance in determining 
the circumstances in which the taking of particular discriminatory 
actions is prohibited. They are illustrative, not comprehensive.
    (i) U.S. construction company A is awarded a contract to build an 
office complex in boycotting country Y. A, believing that employees of a 
particular religion will not be permitted to work in Y because of Y's 
boycott against country X, excludes U.S. persons of that religion from 
consideration for employment on the project.
    A's refusal to consider qualified U.S. persons of a particular 
religion for work on the project in Y constitutes a prohibited boycott-
based discriminatory action against U.S. persons on the basis of 
religion.
    (ii) Same as (i), except that a clause in the contract provides that 
``no persons of country X origin are to work on this project.''
    A's agreement constitutes a prohibited boycott-based agreement to 
discriminate against U.S. persons, among others, on the basis of 
national origin.
    (iii) Same as (i), except that a clause in the contract provides 
that ``no persons who are citizens, residents, or nationals of country X 
are to work on this project.''
    A's agreement does not constitute a boycott-based agreement to 
discriminate against U.S. persons on the basis of race, religion, sex, 
or national origin, because the clause requires exclusion on the basis 
of citizenship, residency, and nationality only.
    (iv) U.S. construction company A enters into a contract to build a 
school in boycotting country Y. Y's representative orally tells

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A that no persons of country X origin are to work on the project.
    A may not comply, because to do so would constitute discrimination 
on the basis of national origin.
    It makes no difference that A learned of Y's requirement orally. It 
makes no difference how A learns about Y's discriminatory requirement.
    (v) Boycotting country Y tenders an invitation to bid on a 
construction project in Y. The tender requires that the successful 
bidder's personnel will be interviewed and that persons of a particular 
religious faith will not be permitted to work on the project. Y's 
requirement is based on its boycott of country X, the majority of whose 
citizens are of that particular faith.
    Agreement to this provision in the tender document by a U.S. person 
would constitute a prohibited agreement to engage in boycott-based 
discrimination against U.S. persons of a particular religion.
    (vi) Same as (v), except that the tender specifies that ``women will 
not be allowed to work on this project.''
    Agreement to this provision in the tender by a U.S. person does not 
constitute a prohibited agreement to engage in boycott-based 
discrimination, because the restriction against employment of women is 
not boycott-based. Such an agreement may, however, constitute a 
violation of U.S. civil rights laws.
    (vii) A is a U.S. investment banking firm. As a condition of 
participating in an underwriting of securities to be issued by 
boycotting country Y, A is required to exclude investment banks owned by 
persons of a particular faith from participation in the underwriting. 
Y's requirement is based on its boycott of country X, the majority of 
whose citizens are of that particular faith.
    A's agreement to such a provision constitutes a prohibited agreement 
to engage in boycott-based discrimination against U.S. persons on the 
basis of religion. Further, if A requires others to agree to such a 
condition, A would be acting to require another person to engage in such 
discrimination.
    (viii) U.S. company A is asked by boycotting country Y to certify 
that A will not use a six-pointed star on the packaging of its products 
to be imported into Y. The requirement is part of the enforcement effort 
by Y of its boycott against country X.
    A may not so certify. The six-pointed star is a religious symbol, 
and the certification by A that it will not use such a symbol 
constitutes a statement that A will not ship products made or handled by 
persons of that religion.
    (ix) Same as (viii), except that A is asked to certify that no 
symbol of boycotted country X will appear on the packaging of its 
products imported into Y.
    Such a certification conveys no statement about any person's 
religion and, thus, does not come within this prohibition.

    (c) Furnishing information about race, religion, sex, or national 
origin.

Prohibition Against Furnishing Information About Race, Religion, Sex, or 
                             National Origin

    (1) No United States person may:
    (i) Furnish information about the race, religion, sex, or national 
origin of any United States person;
    (ii) Furnish information about the race, religion, sex, or national 
origin of any owner, officer, director, or employee of any corporation 
or other organization which is a United States person;
    (iii) Knowingly agree to furnish information about the race, 
religion, sex, or national origin of any United States person; or
    (iv) Knowingly agree to furnish information about the race, 
religion, sex, or national origin of any owner, officer, director, or 
employee of any corporation or other organization which is a United 
States person.
    (2) This prohibition shall apply whether the information is 
specifically requested or is offered voluntarily by the United States 
person. It shall also apply whether the information requested or 
volunteered is stated in the affirmative or the negative.
    (3) Information about the place of birth of or the nationality of 
the parents of a United States person comes within this prohibition, as 
does information in the form of code words or symbols which could 
identify a United States person's race, religion, sex, or national 
origin.
    (4) This prohibition, like all others, applies only with respect to 
a United States person's activities in the interstate or foreign 
commerce of the United States and only when such activities are 
undertaken with intent to comply with, further, or support an 
unsanctioned foreign boycott.

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     Examples of the Prohibition Against Furnishing Discriminatory 
                               Information

    The following examples are intended to give guidance in determining 
the circumstances in which the furnishing of discriminatory information 
is prohibited. They are illustrative, not comprehensive.
    (i) U.S. company A receives a boycott questionnaire from boycotting 
country Y asking whether it is owned or controlled by persons of a 
particular faith, whether it has any persons on its board of directors 
who are of that faith, and what the national origin of its president is. 
The information is sought for purposes of enforcing Y's boycott against 
country X, and A knows or has reason to know that the information is 
sought for that reason.
    A may not answer the questionnaire, because A would be furnishing 
information about the religion and national origin of U.S. persons for 
purposes of complying with or supporting Y's boycott against X.
    (ii) U.S. company A, located in the United States, is asked by 
boycotting country Y to certify that A has no persons of a particular 
national origin on its board of directors. A knows that Y's purpose in 
asking for the certification is to enforce its boycott against country 
X.
    A may not make such a certification, because A would be furnishing 
information about the national origin of U.S. persons for purposes of 
complying with or supporting Y's boycott against X.
    (iii) U.S. company A believes that boycotting country Y will select 
A's bid over those of other bidders if A volunteers that it has no 
shareholders, officers, or directors of a particular national origin. 
A's belief is based on its knowledge that Y generally refuses, as part 
of its boycott against country X, to do business with companies owned, 
controlled, or managed by persons of this particular national origin.
    A may not volunteer this information, because it would be furnishing 
information about the national origin of U.S. persons for purposes of 
complying with or supporting Y's boycott against X.
    (iv) U.S. company A has a contract to construct an airport in 
boycotting country Y. Before A begins work, A is asked by Y to identify 
the national origin of its employees who will work on the site. A knows 
or has reason to know that Y is seeking this information in order to 
enforce its boycott against X.
    A may not furnish this information, because A would be providing 
information about the national origin of U.S. persons for purposes of 
complying with or supporting Y's boycott against X.
    (v) Same as (iv), except that in order to assemble its work force on 
site in Y, A sends visa forms to its employees and asks that the forms 
be returned to A for transmittal to Y's consulate or embassy. A, itself, 
furnishes no information about its employees, but merely transmits the 
visa forms back and forth.
    In performing the ministerial function of transmitting visa forms, A 
is not furnishing information about any U.S. person's race, religion, 
sex, or national origin.
    (vi) Same as (iv), except that A is asked by Y to certify that none 
of its employees in Y will be women, because Y's laws prohibit women 
from working.
    Such a certification does not constitute a prohibited furnishing of 
information about any U.S. person's sex, since the reason the 
information is sought has nothing to do with Y's boycott of X.
    (vii) U.S. company A is considering establishing an office in 
boycotting country Y. In order to register to do business in Y, A is 
asked to furnish information concerning the nationalities of its 
corporate officers and board of directors.
    A may furnish the information about the nationalities of its 
officers and directors, because in so doing A would not be furnishing 
information about the race, religion, sex, or national origin of any 
U.S. person.

    (d) Furnishing information about business relationships with 
boycotted countries or blacklisted persons.

Prohibition Against Furnishing Information About Business Relationships 
             With Boycotted Countries or Blacklisted Persons

    (1) No United States person may furnish or knowingly agree to 
furnish information concerning his or any other person's past, present 
or proposed business relationships:
    (i) With or in a boycotted country;
    (ii) With any business concern organized under the laws of a 
boycotted country;
    (iii) With any national or resident of a boycotted country; or
    (iv) With any other person who is known or believed to be restricted 
from having any business relationship with or in a boycotting country.
    (2) This prohibition shall apply:
    (i) Whether the information pertains to a business relationship 
involving a sale, purchase, or supply transaction; legal or commercial 
representation; shipping or other transportation transaction; insurance; 
investment; or any other type of business transaction or relationship; 
and

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    (ii) Whether the information is directly or indirectly requested or 
is furnished on the initiative of the United States person.
    (3) This prohibition does not apply to the furnishing of normal 
business information in a commercial context. Normal business 
information may relate to factors such as financial fitness, technical 
competence, or professional experience, and may be found in documents 
normally available to the public such as annual reports, disclosure 
statements concerning securities, catalogs, promotional brochures, and 
trade and business handbooks. Such information may also appear in 
specifications or statements of experience and qualifications.
    (4) Normal business information furnished in a commercial context 
does not cease to be such simply because the party soliciting the 
information may be a boycotting country or a national or resident 
thereof. If the information is of a type which is generally sought for a 
legitimate business purpose (such as determining financial fitness, 
technical competence, or professional experience), the information may 
be furnished even if the information could be used, or without the 
knowledge of the person supplying the information is intended to be 
used, for boycott purposes. However, no information about business 
relationships with blacklisted persons or boycotted countries, their 
residents or nationals, may be furnished in response to a boycott 
request, even if the information is publicly available. Requests for 
such information from a boycott office will be presumed to be boycott-
based.
    (5) This prohibition, like all others, applies only with respect to 
a United States person's activities in the interstate or foreign 
commerce of the United States and only when such activities are 
undertaken with intent to comply with, further, or support an 
unsanctioned foreign boycott.

              Examples Concerning Furnishing of Information

    The following examples are intended to give guidance in determining 
the circumstances in which the furnishing of information is prohibited. 
They are illustrative, not comprehensive.
    (i) U.S. contractor A is considering bidding for a contract to build 
a dam in boycotting country Y. The invitation to bid, which appears in a 
trade journal, specifies that each bidder must state that he does not 
have any offices in boycotted country X. A knows or has reason to know 
that the requirement is boycott-based.
    A may not make this statement, because it constitutes information 
about A's business relationships with X.
    (ii) U.S. contractor A is considering bidding for a contract to 
construct a school in boycotting country Y. Each bidder is required to 
submit copies of its annual report with its bid. Since A's annual report 
describes A's worldwide operations, including the countries in which it 
does business, it necessarily discloses whether A has business relations 
with boycotted country X. A has no reason to know that its report is 
being sought for boycott purposes.
    A, in furnishing its annual report, is supplying ordinary business 
information in a commercial context.
    (iii) Same as (ii), except that accompanying the invitation to bid 
is a questionnaire from country Y's boycott office asking each bidder to 
supply a copy of its annual report.
    A may not furnish the annual report despite its public availability, 
because it would be furnishing information in response to a 
questionnaire from a boycott office.
    (iv) U.S. company A is on boycotting country Y's blacklist. For 
reasons unrelated to the boycott, A terminates its business 
relationships with boycotted country X. In exploring other marketing 
areas, A determines that boycotting country Y offers great potential. A 
is requested to complete a questionnaire from a central boycott office 
which inquires about A's business relations with X.
    A may not furnish the information, because it is information about 
A's business relationships with a boycotted country.
    (v) U.S. exporter A is seeking to sell its products to boycotting 
country Y. A is informed by Y that, as a condition of sale, A must 
certify that it has no salesmen in boycotted country X. A knows or has 
reason to know that the condition is boycott-based.
    A may not furnish the certification, because it is information about 
A's business relationships in a boycotted country.
    (vi) U.S. engineering company A receives an invitation to bid on the 
construction of a dam in boycotting country Y. As a condition of the 
bid, A is asked to certify that it does not have any offices in 
boycotted country X. A is also asked to furnish plans for other dams it 
has designed.
    A may not certify that it has no office in X, because this is 
information about its business relationships in a boycotted country. A 
may submit plans for other dams it has designed, because this is 
furnishing normal

[[Page 365]]

business information, in a commercial context, relating to A's technical 
competence and professional experience.
    (vii) U.S. company A, in seeking to expand its exports to boycotting 
country Y, sends a sales representative to Y for a one week trip. During 
a meeting in Y with trade association representatives, A's 
representative desires to explain that neither A nor any companies with 
which A deals has any business relationship with boycotted country X. 
The purpose of supplying such information is to ensure that A does not 
get blacklisted.
    A's representative may not volunteer this information even though A, 
for reasons unrelated to the boycott, does not deal with X, because A's 
representative would be volunteering information about A's business 
relationships with X for boycott reasons.
    (viii) U.S. company A is asked by boycotting country Y to furnish 
information concerning its business relationships with boycotted country 
X. A, knowing that Y is seeking the information for boycott purposes, 
refuses to furnish the information asked for directly, but proposes to 
respond by supplying a copy of its annual report which lists the 
countries with which A is presently doing business. A does not happen to 
be doing business with X.
    A may not respond to Y's request by supplying its annual report, 
because A knows that it would be responding to a boycott-based request 
for information about its business relationships with X.
    (ix) U.S. company A receives a letter from a central boycott office 
asking A to ``clarify'' A's operations in boycotted country X. A intends 
to continue its operations in X, but fears that not responding to the 
request will result in its being placed on boycotting country Y's 
blacklist. A knows or has reason to know that the information is sought 
for boycott reasons.
    A may not respond to this request, because the information concerns 
its business relationships with a boycotted country.
    (x) U.S. company A, in the course of negotiating a sale of its goods 
to a buyer in boycotting country Y, is asked to certify that its 
supplier is not on Y's blacklist.
    A may not furnish the information about its supplier's blacklist 
status, because this is information about A's business relationships 
with another person who is believed to be restricted from having any 
business relationship with or in a boycotting country.
    (xi) U.S. company A has a manufacturing plant in boycotted country X 
and is on boycotting country Y's blacklist. A is seeking to establish 
operations in Y, while expanding its operations in X. A applies to Y to 
be removed from Y's blacklist. A is asked, in response, to indicate 
whether it has manufacturing facilities in X.
    A may not supply the requested information, because A would be 
furnishing information about its business relationships in a boycotted 
country.
    (xii) U.S. bank A plans to open a branch office in boycotting 
country Y. In order to do so, A is required to furnish certain 
information about its business operations, including the location of its 
other branch offices. Such information is normally sought in other 
countries where A has opened a branch office, and A does not have reason 
to know that Y is seeking the information for boycott reasons.
    A may furnish this information, even though in furnishing it A would 
disclose information about its business relationships in a boycotted 
country, because it is being furnished in a normal business context and 
A does not have reason to know that it is sought for boycott reasons.
    (xiii) U.S. architectural firm A responds to an invitation to submit 
designs for an office complex in boycotting country Y. The invitation 
states that all bidders must include information concerning similar 
types of buildings they have designed. A has not designed such buildings 
in boycotted country X. Clients frequently seek information of this type 
before engaging an architect.
    A may furnish this information, because this is furnishing normal 
business information, in a commercial context, relating to A's technical 
competence and professional experience.
    (xiv) U.S. oil company A distributes to potential customers 
promotional brochures and catalogs which give background information on 
A's past projects. A does not have business dealings with boycotted 
country X. The brochures, which are identical to those which A uses 
throughout the world, list those countries in which A does or has done 
business. In soliciting potential customers in boycotting country Y, A 
desires to distribute copies of its brochures.
    A may do so, because this is furnishing normal business information, 
in a commercial context, relating to professional experience.
    (xv) U.S. company A is interested in doing business with boycotting 
country Y. A wants to ask Y's Ministry of Trade whether, and if so why, 
A is on Y's blacklist or is otherwise restricted for boycott reasons 
from doing business with Y.
    A may make this limited inquiry, because it does not constitute 
furnishing information.
    (xvi) U.S. company A is asked by boycotting country Y to certify 
that it is not owned by subjects or nationals of boycotted country X and 
that it is not resident in boycotted country X.
    A may not furnish the certification, because it is information about 
A's business relationships with or in a boycotted country, or with 
nationals of a boycotted country.

[[Page 366]]

    (xvii) U.S. company A, a manufacturer of certain patented products, 
desires to register its patents in boycotting country Y. A receives a 
power of attorney form required to register its patents. The form 
contains a question regarding A's business relationships with or in 
boycotted country X. A has no business relationships with X and knows or 
has reason to know that the information is sought for boycott reasons.
    A may not answer the question, because A would be furnishing 
information about its business relationships with or in a boycotted 
country.
    (xviii) U.S. company A is asked by boycotting country Y to certify 
that it is not the mother company, sister company, subsidiary, or branch 
of any blacklisted company, and that it is not in any way affiliated 
with any blacklisted company.
    A may not furnish the certification, because it is information about 
whether A has a business relationship with another person who is known 
or believed to be restricted from having any business relationship with 
or in a boycotting country. This interpretation became effective on June 
22, 1978.

    (e) Information concerning association with charitable and fraternal 
organizations.

   Prohibition Against Furnishing Information About Associations With 
                 Charitable and Fraternal Organizations

    (1) No United States person may furnish or knowingly agree to 
furnish information about whether any person is a member of, has made 
contributions to, or is otherwise associated with or involved in the 
activities of any charitable or fraternal organization which supports a 
boycotted country.
    (2) This prohibition shall apply whether:
    (i) The information concerns association with or involvement in any 
charitable or fraternal organization which (a) has, as one of its stated 
purposes, the support of a boycotted country through financial 
contributions or other means, or (b) undertakes, as a major 
organizational activity, to offer financial or other support to a 
boycotted country;
    (ii) The information is directly or indirectly requested or is 
furnished on the initiative of the United States person; or
    (iii) The information requested or volunteered concerns membership 
in, financial contributions to, or any other type of association with or 
involvement in the activities of such charitable or fraternal 
organization.
    (3) This prohibition does not prohibit the furnishing of normal 
business information in a commercial context as defined in paragraph (d) 
of this section.
    (4) This prohibition, like all others, applies only with respect to 
a United States person's activities in the interstate or foreign 
commerce of the United States and only when such activities are 
undertaken with intent to comply with, further, or support an 
unsanctioned foreign boycott.

      Examples of Prohibition Against Furnishing Information About 
         Associations With Charitable or Fraternal Organizations

    The following examples are intended to give guidance in determining 
the circumstances in which the furnishing of information concerning 
associations with charitable or fraternal organizations is prohibited. 
They are illustrative, not comprehensive.
    (i) U.S. engineering firm A receives an invitation to bid from 
boycotting country Y. The invitation includes a request to supply 
information concerning any association which A's officers have with 
charitable organization B, an organization which is known by A to 
contribute financial support to boycotted country X. A knows or has 
reason to know that the information is sought for boycott reasons.
    A may not furnish the information.
    (ii) U.S. construction company A, in an effort to establish business 
dealings with boycotting country Y, proposes to furnish information to Y 
showing that no members of its board of directors are in any way 
associated with charitable organizations which support boycotted country 
X. A's purpose is to avoid any possibility of its being blacklisted by 
Y.
    A may not furnish the information, because A's purpose in doing so 
is boycott-based. It makes no difference that no specific request for 
the information has been made by Y.
    (iii) A, a citizen of the United States, is applying for a teaching 
position in a school in boycotting country Y. In connection with his 
application, A furnishes a resume which happens to disclose his 
affiliation with charitable organizations. A does so completely without 
reference to Y's boycott and without knowledge of any boycott 
requirement of Y that pertains to A's application for employment.
    The furnishing of a resume by A is not a boycott-related furnishing 
of information about his association with charitable organizations which 
support boycotted country X.


[[Page 367]]


    (f) Letters of credit.

Prohibition Against Implementing Letters of Credit Containing Prohibited 
                       Conditions or Requirements

    (1) No United States person may pay, honor, confirm, or otherwise 
implement a letter of credit which contains a condition or requirement 
compliance with which is prohibited by this part, nor shall any United 
States person, as a result of the application of this section, be 
obligated to pay, honor or otherwise implement such a letter of credit.
    (2) For purposes of this section, ``implementing'' a letter of 
credit includes:
    (i) Issuing or opening a letter of credit at the request of a 
customer;
    (ii) Honoring, by accepting as being a valid instrument of credit, 
any letter of credit;
    (iii) Paying, under a letter of credit, a draft or other demand for 
payment by the beneficiary;
    (iv) Confirming a letter of credit by agreeing to be responsible for 
payment to the beneficiary in response to a request by the issuer;
    (v) Negotiating a letter of credit by voluntarily purchasing a draft 
from a beneficiary and presenting such draft for reimbursement to the 
issuer or the confirmer of the letter of credit; and
    (vi) Taking any other action to implement a letter of credit.
    (3) In the standard international letter of credit transaction 
facilitating payment for the export of goods from the United States, a 
bank in a foreign country may be requested by its customer to issue a 
revocable or irrevocable letter of credit in favor of the United States 
exporter. The customer usually requires, and the letter of credit 
provides, that the issuing (or a confirming) bank will make payment to 
the beneficiary against the bank's receipt of the documentation 
specified in the letter of credit. Such documentation usually includes 
commercial and consular invoices, a bill of lading, and evidence of 
insurance, but it may also include other required certifications or 
documentary assurances such as the origin of the goods and information 
relating to the carrier or insurer of the shipment.
    Banks usually will not accept drafts for payment unless the 
documents submitted therewith comply with the terms and conditions of 
the letter of credit.
    (4) A United States person is not prohibited under this section from 
advising a beneficiary of the existence of a letter of credit in his 
favor, or from taking ministerial actions to dispose of a letter of 
credit which it is prohibited from implementing.
    (5) Compliance with this section shall provide an absolute defense 
in any action brought to compel payment of, honoring of, or other 
implementation of a letter of credit, or for damages resulting from 
failure to pay or otherwise honor or implement the letter of credit. 
This section shall not otherwise relieve any person from any obligations 
or other liabilities he may incur under other laws or regulations, 
except as may be explicitly provided in this section.

             Letters of Credit to Which This Section Applies

    (6) This prohibition, like all others, applies only with respect to 
a United States person's activities taken with intent to comply with, 
further, or support an unsanctioned foreign boycott. In addition, it 
applies only when the transaction to which the letter of credit applies 
is in United States commerce and the beneficiary is a United States 
person.

        Implementation of Letters of Credit in the United States

    (7) A letter of credit implemented in the United States by a United 
States person located in the United States, including a permanent United 
States establishment of a foreign bank, will be presumed to apply to a 
transaction in United States commerce and to be in favor of a United 
States beneficiary where the letter of credit specifies a United States 
address for the beneficiary. These presumptions may be rebutted by facts 
which could reasonably lead the bank to conclude that the beneficiary is 
not a United States person or that the underlying transaction is not in 
United States commerce.

[[Page 368]]

    (8) Where a letter of credit implemented in the United States by a 
United States person located in the United States does not specify a 
United States address for the beneficiary, the beneficiary will be 
presumed to be other than a United States person. This presumption may 
be rebutted by facts which could reasonably lead the bank to conclude 
that the beneficiary is a United States person despite the foreign 
address.

      Implementation of Letters of Credit Outside the United States

    (9) A letter of credit implemented outside the United States by a 
United States person located outside the United States will be presumed 
to apply to a transaction in United States commerce and to be in favor 
of a United States beneficiary where the letter of credit specifies a 
United States address for the beneficiary and calls for documents 
indicating shipment from the United States or otherwise indicating that 
the goods are of United States origin. These presumptions may be 
rebutted by facts which could reasonably lead the bank to conclude that 
the beneficiary is not a United States person or that the underlying 
transaction is not in United States commerce.
    (10) Where a letter of credit implemented outside the United States 
by a United States person located outside the United States does not 
specify a United States address for the beneficiary, the beneficiary 
will be presumed to be other than a United States person. In addition, 
where such a letter of credit does not call for documents indicating 
shipment from the United States or otherwise indicating that the goods 
are of United States origin, the transaction to which it applies will be 
presumed to be outside United States commerce. The presumption that the 
beneficiary is other than a United States person may be rebutted by 
facts which could reasonably lead the bank to conclude that the 
beneficiary is a United States person. The presumption that the 
transaction to which the letter of credit applies is outside United 
States commerce may be rebutted by facts which could reasonably lead the 
bank to conclude that the underlying transaction is in United States 
commerce.

   Examples of the Prohibition Against Implementing Letters of Credit

    The following examples are intended to give guidance in determining 
the circumstances in which this section applies to the implementation of 
a letter of credit and in which such implementation is prohibited. They 
are illustrative, not comprehensive.

      Implementation of Letters of Credit in United States Commerce

    (i) A, a U.S. bank located in the United States, opens a letter of 
credit in the United States in favor of B, a foreign company located 
outside the United States. The letter of credit specifies a non-U.S. 
address for the beneficiary.
    The beneficiary is presumed to be other than a U.S. person, because 
it does not have a U.S. address. The presumption may be rebutted by 
facts showing that A could reasonably conclude that the beneficiary is a 
U.S. person despite the foreign address.
    (ii) A, a branch of a foreign bank located in the United States, 
opens a letter of credit in favor of B, a foreign company located 
outside the United States. The letter of credit specifies a non-U.S. 
address for the beneficiary.
    The beneficiary is presumed to be other than a U.S.person, because 
it does not have a U.S. address. The presumption may be rebutted by 
facts showing that A could reasonably conclude that the beneficiary is a 
U.S. person despite the foreign address.
    (iii) A, a U.S. bank branch located outside the United States, opens 
a letter of credit in favor of B, a person with a U.S. address. The 
letter of credit calls for documents indicating shipment of goods from 
the United States.
    The letter of credit is presumed to apply to a transaction in U.S. 
commerce and to be in favor of a U.S. beneficiary because the letter of 
credit specifies a U.S. address for the beneficiary and calls for 
documents indicating that the goods will be shipped from the United 
States. These presumptions may be rebutted by facts showing that A could 
reasonably conclude that the beneficiary is not a U.S. person or that 
the underlying transaction is not in U.S. commerce.
    (iv) A, a U.S. bank branch located outside the United States, opens 
a letter of credit which specifies a beneficiary, B, with an address 
outside the United States and calls for documents indicating that the 
goods are of U.S.-origin. A knows or has reason to know that although B 
has an address outside the United States, B is a U.S. person.
    The letter of credit is presumed to apply to a transaction in U.S. 
commerce, because the letter of credit calls for shipment of U.S.-origin 
goods. In addition, the letter of credit is

[[Page 369]]

presumed to be in favor of a beneficiary who is a U.S. person, because A 
knows or has reason to know that the beneficiary is a U.S. person 
despite the foreign address.
    (v) A, a U.S. bank branch located outside the United States, opens a 
letter of credit which specifies a beneficiary with a U.S. address. The 
letter of credit calls for documents indicating shipment of foreign-
origin goods.
    The letter of credit is presumed to be in favor of a U.S. 
beneficiary but to apply to a transaction outside U.S. commerce, because 
it calls for documents indicating shipment of foreign-origin goods. The 
presumption of non-U.S. commerce may be rebutted by facts showing that A 
could reasonably conclude that the underlying transaction involves 
shipment of U.S.-origin goods or goods from the U.S.

           Prohibition Against Implementing Letters of Credit

    (i) Boycotting country Y orders goods from U.S. company B. Y opens a 
letter of credit with foreign bank C in favor of B. The letter of credit 
specifies as a condition of payment that B certify that it does not do 
business with boycotted country X. Foreign bank C forwards the letter of 
credit it has opened to U.S. bank A for confirmation.
    A may not confirm or otherwise implement this letter of credit, 
because it contains a condition with which a U.S. person may not comply.
    (ii) Same as (i), except U.S. bank A desires to advise the 
beneficiary, U.S. company B, of the letter of credit.
    A may do so, because advising the beneficiary of the letter of 
credit (including the term which prevents A from implementing it) is not 
implementation of the letter of credit.
    (iii) Same as (i), except foreign bank C sends a telegram to U.S. 
bank A stating the major terms and conditions of the letter of credit. 
The telegram does not reflect the boycott provision. Subsequently, C 
mails to A documents setting forth the terms and conditions of the 
letter of credit, including the prohibited boycott condition.
    A may not further implement the letter of credit after it receives 
the documents, because they reflect the prohibited boycott condition in 
the letter of credit. A may advise the beneficiary and C of the 
existence of the letter of credit (including the boycott term), and may 
perform any essentially ministerial acts necessary to dispose of the 
letter of credit.
    (iv) Same as (iii), except that U.S. company B, based in part on 
information received from U.S. bank A, desires to obtain an amendment to 
the letter of credit which would eliminate or nullify the language in 
the letter of credit which prevents A from paying or otherwise 
implementing it.
    Either company B or bank A may undertake, and the other may 
cooperate and assist in, this endeavor. A could then pay or otherwise 
implement the revised letter of credit, so long as the original 
prohibited language is of no force or effect.
    (v) Boycotting country Y requests a foreign bank in Y to open a 
letter of credit to effect payment for goods to be shipped by U.S. 
supplier B, the beneficiary of the letter of credit. The letter of 
credit contains prohibited boycott clauses. The foreign bank forwards a 
copy of the letter of credit to its branch office A, in the United 
States.
    A may advise the beneficiary but may not implement the letter of 
credit, because it contains prohibited boycott conditions.
    (vi) On November 1, 1977, boycotting country Y orders goods from 
U.S. company B. U.S. bank A is asked to implement, for the benefit of B, 
a letter of credit which contains a clause requiring documentation that 
the goods shipped are not of boycotted country X origin.
    A may implement the letter of credit, but after June 21, 1978, may 
accept only a positive certificate of origin as satisfactory 
documentation. (See Sec. 760.3(b) of this part on ``Import and Shipping 
Document Requirements.'')
    (vii) Same as (vi), except that U.S. company B has a contract with Y 
to supply a certain quantity of goods each month over a two-year period. 
B's contract was entered into on May 15, 1977, and thus qualifies for 
grace period treatment until December 31, 1978. Each month, Y causes a 
letter of credit to be opened in favor of B in order to effect payment. 
Such letters of credit call for negative certificates of origin.
    A may accept negative certificates of origin in fulfillment of the 
terms of the letter of credit through December 31, 1978, because the 
underlying contract is entitled to a grace period through that date. 
(See Sec. 760.8 of this part on ``Grace Period.'')
    (viii) B is a foreign bank located outside the United States. B 
maintains an account with U.S. bank A, located in the United States. A 
letter of credit issued by B in favor of a U.S. beneficiary provides 
that any negotiating bank may obtain reimbursement from A by certifying 
that all the terms and conditions of the letter of credit have been met 
and then drawing against B's account. B notifies A by cable of the 
issuance of a letter of credit and the existence of reimbursement 
authorization; A does not receive a copy of the letter of credit.
    A may reimburse any negotiating bank, even when the underlying 
letter of credit contains a prohibited boycott condition, because A does 
not know or have reason to know that the letter of credit contains a 
prohibited boycott condition.
    (ix) Same as (viii), except that foreign bank B forwards a copy of 
the letter of credit

[[Page 370]]

to U.S. bank A, which then becomes aware of the prohibited boycott 
clause.
    A may not thereafter reimburse a negotiating bank or in any way 
further implement the letter of credit, because it knows of the 
prohibited boycott condition.
    (x) Boycotting country Y orders goods from U.S. exporter B and 
requests a foreign bank in Y to open a letter of credit in favor of B to 
cover the cost. The letter of credit contains a prohibited boycott 
clause. The foreign bank asks U.S. bank A to advise and confirm the 
letter of credit. Through inadvertence, A does not notice the prohibited 
clause and confirms the letter of credit. A thereafter notices the 
clause and then refuses to honor B's draft against the letter of credit. 
B sues bank A for payment.
    A has an absolute defense against the obligation to make payment 
under this letter of credit. (Note that paragraph (ix) of this section 
does not alter any other obligations or liabilities of the parties under 
appropriate law.)
    (xi) [Reserved]
    (xii) Boycotting country Y orders goods from U.S. company B. A 
letter of credit which contains a prohibited boycott clause is opened in 
favor of B by a foreign bank in Y. The foreign bank asks U.S. bank A to 
advise and confirm the letter of credit, which it forwards to A.
    A may advise B that it has received the letter of credit (including 
the boycott term), but may not confirm the letter of credit with the 
prohibited clause.
    (xiii) Same as (xii), except U.S. bank A fails to tell B that it 
cannot process the letter of credit. B requests payment.
    A may not pay. If the prohibited language is eliminated or nullified 
as the result of renegotiation, A may then pay or otherwise implement 
the revised letter of credit.
    (xiv) U.S. bank A receives a letter of credit in favor of U.S. 
beneficiary B. The letter of credit requires B to certify that he is not 
blacklisted.
    A may implement such a letter of credit, but it may not insist that 
the certification be furnished, because by so insisting it would be 
refusing to do business with a blacklisted person in compliance with a 
boycott.
    (xv) A, a U.S. bank located in the U.S. opens a letter of credit in 
favor of U.S. beneficiary B for B's sale of goods to boycotting country 
Y. The letter of credit contains no boycott conditions, but A knows that 
Y customarily requires the seller of goods to certify that it has dealt 
with no blacklisted supplier. A, therefore, instructs B that it will not 
make payment under the letter of credit unless B makes such a 
certification.
    A's action in requiring the certification from B constitutes action 
to require another person to refuse to do business with blacklisted 
persons.
    (xvi) A, a U.S. bank located in the U.S., opens a letter of credit 
in favor of U.S. beneficiary B for B's sale of goods to boycotting 
country Y. The letter of credit contains no boycott conditions, but A 
has actual knowledge that B has agreed to supply a certification to Y 
that it has not dealt with blacklisted firms, as a condition of 
receiving the letter of credit in its favor.
    A may not implement the letter of credit, because it knows that an 
implicit condition of the credit is a condition with which B may not 
legally comply.
    (xvii) Boycotting country Y orders goods from U.S. company B. Y 
opens a letter of credit with foreign bank C in favor of B. The letter 
of credit includes the statement, ``Do not negotiate with blacklisted 
banks.'' C forwards the letter of credit it has opened to U.S. bank A 
for confirmation.
    A may not confirm or otherwise implement this letter of credit, 
because it contains a condition with which a U.S. person may not comply.



Sec. 760.3  Exceptions to prohibitions.

    (a) Import requirements of a boycotting country.

       Compliance With Import Requirements of a Boycotting Country

    (1) A United States person, in supplying goods or services to a 
boycotting country, or to a national or resident of a boycotting 
country, may comply or agree to comply with requirements of such 
boycotting country which prohibit the import of:
    (i) Goods or services from the boycotted country;
    (ii) Goods produced or services provided by any business concern 
organized under the laws of the boycotted country; or
    (iii) Goods produced or services provided by nationals or residents 
of the boycotted country.
    (2) A United States person may comply or agree to comply with such 
import requirements whether or not he has received a specific request to 
comply. By its terms, this exception applies only to transactions 
involving imports into a boycotting country. A United States person may 
not, under this exception, refuse on an across-the-board basis to do 
business with a boycotted country or a national or resident of a 
boycotted country.
    (3) In taking action within the scope of this exception, a United 
States person is limited in the types of boycott-

[[Page 371]]

related information he can supply. (See Sec. 760.2(d) of this part on 
``Furnishing Information About Business Relationships with Boycotted 
Countries or Blacklisted Persons'' and paragraph (c) of this section on 
``Import and Shipping Document Requirements.'')

 Examples of Compliance With Import Requirements of a Boycotting Country

    The following examples are intended to give guidance in determining 
the circumstances in which compliance with the import requirements of a 
boycotting country is permissible. They are illustrative, not 
comprehensive.
    (i) A, a U.S. manufacturer, receives an order from boycotting 
country Y for its products, country X is boycotted by country Y, and the 
import laws of Y prohibit the importation of goods produced or 
manufactured in X. In filling this type of order, A would usually 
include some component parts produced in X.
    For the purpose of filling this order, A may substitute comparable 
component parts in place of parts produced in X, because the import laws 
of Y prohibit the importation of goods manufactured in X.
    (ii) Same as (i), except that A's contract with Y expressly provides 
that in fulfilling the contract A ``may not include parts or components 
produced or manufactured in boycotted country X.''
    A may agree to and comply with this contract provision, because Y 
prohibits the importation of goods from X. (NOTE: After June 21, 1978, A 
may not furnish negative certifications regarding the origin of 
components in response to import and shipping document requirements.)
    (iii) A, a U.S. building contractor, is awarded a contract to 
construct a plant in boycotting country Y. A accepts bids on goods 
required under the contract, and the lowest bid is made by B, a business 
concern organized under the laws of X, a country boycotted by Y. Y 
prohibits the import of goods produced by companies organized under the 
laws of X.
    For purposes of this contract, A may reject B's bid and accept 
another, because B's goods would be refused entry in to Y because of Y's 
boycott against X.
    (iv) Same as (iii), except that A also rejects the low bid by B for 
work on a construction project in country M, a country not boycotted by 
Y.
    This exception does not apply, because A's action is not taken in 
order to comply with Y's requirements prohibiting the import of products 
from boycotted country X.
    (v) A, a U.S. management consulting firm, contracts to provide 
services to boycotting country Y. Y requests that A not employ residents 
or nationals of boycotted country X to provide those services.
    A may agree, as a condition of the contract, not to have services 
furnished by nationals or residents of X, because importation of such 
services is prohibited by Y.
    (vi) A, a U.S. company, is negotiating a contract to supply machine 
tools to boycotting country Y. Y insists that the contract contain a 
provision whereby A agrees that none of the machine tools will be 
produced by any business concern owned by nationals of boycotted country 
X, even if the business concern is organized under the laws of a non-
boycotted country.
    A may not agree to this provision, because it is a restriction on 
the import of goods produced by business concerns owned by nationals of 
a boycotted country even if the business concerns themselves are 
organized under the laws of a non-boycotted country.


    (b) Shipment of goods to a boycotting country.

   Compliance With Requirements Regarding the Shipment of Goods to a 
                           Boycotting Country

    (1) A United States person, in shipping goods to a boycotting 
country, may comply or agree to comply with requirements of that country 
which prohibit the shipment of goods:
    (i) On a carrier of the boycotted country; or
    (ii) By a route other than that prescribed by the boycotting country 
or the recipient of the shipment.
    (2) A specific request that a United States person comply or agree 
to comply with requirements concerning the use of carriers of a 
boycotted country is not necessary if the United States person knows, or 
has reason to know, that the use of such carriers for shipping goods to 
the boycotting country is prohibited by requirements of the boycotting 
country. This exception applies whether a boycotting country or the 
purchaser of the shipment:
    (i) Explicitly states that the shipment should not pass through a 
port of the boycotted country; or
    (ii) Affirmatively describes a route of shipment that does not 
include a port in the boycotted country.
    (3) For purposes of this exception, the term carrier of a boycotted 
country means a carrier which flies the flag of a boycotted country or 
which is owned,

[[Page 372]]

chartered, leased, or operated by a boycotted country or by nationals or 
residents of a boycotted country.

 Examples of Compliance With the Shipping Requirements of a Boycotting 
                                 Country

    The following examples are intended to give guidance in determining 
the circumstances in which compliance with import and shipping document 
requirements of a boycotting country is permissible. They are 
illustrative, not comprehensive.
    (i) A is a U.S. exporter from whom boycotting country Y is importing 
goods. Y directs that the goods not pass through a port of boycotted 
country X.
    A may comply with Y's shipping instructions, because they pertain to 
the route of shipment of goods being shipped to Y.
    (ii) A, a U.S. fertilizer manufacturer, receives an order from 
boycotting country Y for fertilizer. Y specifies in the order that A may 
not ship the fertilizer on a carrier of boycotted country X.
    A may comply with this request, because it pertains to the carrier 
of a boycotted country.
    (iii) B, a resident of boycotting country Y, orders textile goods 
from A, a U.S. distributor, specifying that the shipment must not be 
made on a carrier owned or leased by nationals of boycotted country X 
and that the carrier must not pass through a port of country X enroute 
to Y.
    A may comply or agree to comply with these requests, because they 
pertain to the shipment of goods to Y on a carrier of a boycotted 
country and the route such shipment will take.
    (iv) Boycotting country Y orders goods from A, a U.S. retail 
merchant. The order specifies that the goods shipped by A ``may not be 
shipped on a carrier registered in or owned by boycotted country X.''
    A may agree to this contract provision, because it pertains to the 
carrier of a boycotted country.
    (v) Boycotting country Y orders goods from A, a U.S. pharmaceutical 
company, and requests that the shipment not pass through a port of 
country P, which is not a country boycotted by Y.
    This exception does not apply in a non-boycotting situation. A may 
comply with the shipping instructions of Y, because in doing so he would 
not violate any prohibition of this part.

    (c) Import and shipping document requirements.

     Compliance With Import and Shipping Document Requirements of a 
                           Boycotting Country

    (1) A United States person, in shipping goods to a boycotting 
country, may comply or agree to comply with import and shipping document 
requirements of that country, with respect to:
    (i) The country or origin of the goods;
    (ii) The name of the carrier;
    (iii) The route of the shipment;
    (iv) The name of the supplier of the shipment; and
    (v) The name of the provider of other services.
    (2) After June 21, 1978, all such information must be stated in 
positive, non-blacklisting, non-exclusionary terms except for 
information with respect to the names of carriers or routes of shipment, 
which may continue to be stated in negative terms in conjunction with 
shipments to a boycotting country, in order to comply with precautionary 
requirements protecting against war risks or confiscation. The purpose 
of this delayed effective date, which is provided by section 4A(a)(2)(B) 
of the Export Administration Act of 1969, as amended, is to allow time 
for persons to adjust their practices to the use of import and shipping 
documentation stated in positive rather than negative terms.

  Examples of Compliance With Import and Shipping Document Requirements

    The following examples are intended to give guidance in determining 
the circumstances in which compliance with the import requirements of a 
boycotting country is permissible. They are illustrative, not 
comprehensive.
    (i) Boycotting country Y contracts with A, a U.S. petroleum 
equipment manufacturer, for certain equipment. Y requires that goods 
being imported into Y must be accompanied by a certification that the 
goods being supplied did not originate in boycotted country X.
    Until June 21, 1978, A may comply with such import requirements in 
the terms requested. After June 21, 1978, A may not supply such a 
certification in negative terms but may identify instead the country of 
origin of the goods in positive terms only.
    (ii) Same as (i), except that Y requires that the shipping 
documentation accompanying

[[Page 373]]

the goods specify the country of origin of the goods.
    A may furnish the information.
    (iii) On February 1, 1978, A, a U.S. distributor, enters into a two-
year contract with boycotting country Y to make monthly shipments of 
goods to Y. A clause in the contract requires that all shipments into 
the country must be accompanied by a certification that the goods did 
not originate in X, a country boycotted by Y.
    A may supply such a negative certification until June 21, 1978. 
After that date, A may state the origin of the goods on the shipping or 
import documents in positive terms only.
    (iv) A, a U.S. apparel manufacturer, has contracted to sell certain 
of its products to B, a national of boycotting country Y. The form that 
must be submitted to customs officials of Y requires the shipper to 
certify that the goods contained in the shipment have not been supplied 
by ``blacklisted'' persons.
    Until June 21, 1978, A may furnish the information required in the 
terms requested. After June 21, 1978, A may not furnish the information 
in negative terms but may certify, in positive terms only, the name of 
the supplier of the goods.
    (v) Same as (iv), except the customs form requires certification 
that the insurer and freight forwarder used are not ``blacklisted.''
    Until June 21, 1978, A may furnish the information required in the 
terms requested. After June 21, 1978, A may not comply with the request 
but may supply a certification stating, in positive terms only, the 
names of the insurer and freight forwarder.
    (vi) A, a U.S. petrochemical manufacturer, executes a sales contract 
with B, a resident of boycotting country Y. A provision of A's contract 
with B requires that the bill of lading and other shipping documents 
contain certifications that the goods have not been shipped on a 
``blacklisted'' carrier.
    Until June 21, 1978, A may furnish the information required in the 
terms requested. After June 21, 1978, A may not agree to supply a 
certification that the carrier is not ``blacklisted'' but may certify 
the name of the carrier in positive terms only.
    (vii) Same as (vi), except that the contract requires certification 
that the goods will not be shipped on a carrier which flies the flag of, 
or is owned, chartered, leased, or operated by boycotted country X, or 
by nationals or residents of X.
    Such a certification, which is a reasonable requirement to protect 
against war risks or confiscation, may be furnished at any time.
    (viii) Same as (vi), except that the contract requires that the 
shipping documents certify the name of the carrier being used.
    A may, at any time, supply or agree to supply the requested 
documentation regarding the name of the carrier, either in negative or 
positive terms.
    (ix) Same as (vi), except that the contract requires a certification 
that the carrier will not call at a port in boycotted country X before 
making delivery in Y.
    Such a certification, which is a reasonable requirement to protect 
against war risks or confiscation, may be furnished at any time.
    (x) Same as (vi), except that the contract requires that the 
shipping documents indicate the name of the insurer and freight 
forwarder.
    A may comply at any time, because the statement is not required to 
be made in negative or blacklisting terms.
    (xi) A, a U.S. exporter, is negotiating a contract to sell bicycles 
to boycotting country Y. Y insists that A agree to certify that the 
goods will not be shipped on a vessel which has ever called at a port in 
boycotted country X.
    As distinguished from a certification that goods will not be shipped 
on a vessel which will call enroute at a port of boycotted country X, 
such a certification is not a reasonable requirement to protect against 
war risks or confiscation, and, hence, may not be supplied.
    (xii) Same as (xi), except that Y insists that A agree to certify 
that the goods will not be shipped on a carrier that is ineligible to 
enter Y's waters.
    Such a certification, which is not a reasonable requirement to 
protect against war risks or confiscation may not be supplied.
    (xiii) A, a U.S. exporter, sells some of its products to boycotting 
country Y. A foreign bank located in Y opens a letter of credit to pay 
for the goods. The letter of credit requires that A supply documentation 
certifying that ``the goods are not manufactured in boycotted country 
X.''
    A may make the required certification until June 21, 1978, because 
import and shipping document requirements of a boycotting country may be 
reflected in letters of credit.


    (d) Compliance with unilateral selection.

            Compliance With Unilateral and Specific Selection

    (1) A United States person may comply or agree to comply in the 
normal course of business with the unilateral and specific selection by 
a boycotting country, a national of a boycotting country, or a resident 
of a boycotting country (including a United States person who is a bona 
fide resident of a boycotting country) of carriers, insurers, suppliers 
of services to be performed within the boycotting country, or specific 
goods, provided that with respect to services, it is necessary and 
customary that an insignificant part of

[[Page 374]]

the services be performed within the boycotting country, and with 
respect to goods, the items, in the normal course of business, are 
identifiable as to their source or origin at the time of their entry 
into the boycotting country by uniqueness of design or appearance or 
trademark, trade name, or other identification normally on the items 
themselves, including their packaging.
    (2) This exception pertains to what is permissible for a United 
States person who is the recipient of a unilateral and specific 
selection of goods or services to be furnished by a third person. It 
does not pertain to whether the act of making such a selection is 
permitted; that question is covered, with respect to United States 
persons, in paragraph (g) of this section on ``Compliance with Local 
Law.'' Nor does it pertain to the United States person who is the 
recipient of an order to supply its own goods or services. Nothing in 
this part prohibits or restricts a United States person from filling an 
order himself, even if he is selected by the buyer on a boycott basis 
(e.g., because he is not blacklisted), so long as he does not himself 
take any action prohibited by this part.

           Unilateral and Specific Character of the Selection

    (3) In order for this exception to apply, the selection with which a 
United States person wishes to comply must be unilateral and specific.
    (4) A ``specific'' selection is one which is stated in the 
affirmative and which specifies a particular supplier of goods or 
services.
    (5) A ``unilateral'' selection is one in which the discretion in 
making the selection is exercised by the boycotting country buyer. If 
the United States person who receives a unilateral selection has 
provided the buyer with any boycott-based assistance (including 
information for purposes of helping the buyer select someone on a 
boycott basis), then the buyer's selection is not unilateral, and 
compliance with that selection by a United States person does not come 
within this exception.
    (6) The provision of so-called ``pre-selection'' or ``pre-award'' 
services, such as providing lists of qualified suppliers, 
subcontractors, or bidders, does not, in and of itself, destroy the 
unilateral character of a selection, provided such services are not 
boycott-based. Lists of qualified suppliers, for example, must not 
exclude anyone because he is blacklisted. Moreover, such services must 
be of the type customarily provided in similar transactions by the firm 
(or industry of which the firm is a part) as measured by the practice in 
non-boycotting as well as boycotting countries. If such services are not 
customarily provided in similar transactions or such services are 
provided in such a way as to exclude blacklisted persons from 
participating in a transaction or diminish their opportunity for such 
participation, then the services may not be provided without destroying 
the unilateral character of any subsequent selection.

           Selection To Be Made by Boycotting Country Resident

    (7) In order for this exception to be available, the unilateral and 
specific selection must have been made by a boycotting country, or by a 
national or resident of a boycotting country. Such a resident may be a 
United States person. For purposes of this exception, a United States 
person will be considered a resident of a boycotting country only if he 
is a bona fide resident. A United States person may be a bona fide 
resident of a boycotting country even if such person's residency is 
temporary.
    (8) Factors that will be considered in determining whether a United 
States person is a bona fide resident of a boycotting country include:
    (i) Physical presence in the country;
    (ii) Whether residence is needed for legitimate business reasons;
    (iii) Continuity of the residency;
    (iv) Intent to maintain the residency;
    (v) Prior residence in the country;
    (vi) Size and nature of presence in the country;
    (vii) Whether the person is registered to do business or 
incorporated in the country;
    (viii) Whether the person has a valid work visa; and
    (ix) Whether the person has a similar presence in both boycotting 
and non-boycotting foreign countries in connection with similar business 
activities.



[[Page 375]]


    Note to paragraph (d)(8) of this section: No one of the factors is 
dispositive. All the circumstances will be examined closely to ascertain 
whether there is, in fact, a bona fide residency. Residency established 
solely for purposes of avoidance of the application of this part, 
unrelated to legitimate business needs, does not constitute bona fide 
residency.


    (9) The boycotting country resident must be the one actually making 
the selection. If a selection is made by a non-resident agent, parent, 
subsidiary, affiliate, home office or branch office of a boycotting 
country resident, it is not a selection by a resident within the meaning 
of this exception.
    (10) A selection made solely by a bona fide resident and merely 
transmitted by another person to a United States person for execution is 
a selection by a bona fide resident within the meaning of this 
exception.

                             Duty of Inquiry

    (11) If a United States person receives, from another person located 
in the United States, what may be a unilateral selection by a boycotting 
country customer, and knows or has reason to know that the selection is 
made for boycott reasons, he has a duty to inquire of the transmitting 
person to determine who actually made the selection. If he knows or has 
reason to know that the selection was made by other than a boycotting 
country, or a national or resident of a boycotting country, he may not 
comply. A course or pattern of conduct which a United States person 
recognizes or should recognize as consistent with boycott restrictions 
will create a duty to inquire.
    (12) If the United States person does not know or have reason to 
know that the selection it receives is boycott-based, its compliance 
with such a selection does not offend any prohibition and this exception 
is not needed.

                          Selection of Services

    (13) This exception applies only to compliance with selections of 
certain types of suppliers of services-carriers, insurers, and suppliers 
of services to be performed ``within the boycotting country.'' Services 
to be performed wholly within the United States or wholly within any 
country other than the boycotting country are not covered.
    (14) For purposes of this part, services are to be performed 
``within the boycotting country'' only if they are of a type which would 
customarily be performed by suppliers of those services within the 
country of the recipient of those services, and if the part of the 
services performed within the boycotting country is a necessary and not 
insignificant part of the total services performed.
    (15) What is ``customary and necessary'' for these purposes depends 
on the usual practice of the supplier of the services (or the industry 
of which he is a part) as measured by the practice in non-boycotting as 
well as boycotting countries, except where such practices are instituted 
to accommodate this part.

                           Selection of Goods

    (16) This exception applies only to compliance with selections of 
certain types of goods--goods that, in the normal course of business, 
are identifiable as to their source or origin at the time of their entry 
into the boycotting country. The definition of ``specifically 
identifiable goods'' is the same under this section as it is in 
paragraph (g) of this section on ``Compliance with Local Law.''
    (17) Goods ``specifically identifiable'' in the normal course of 
business are those items which at the time of their entry into a 
boycotting country are identifiable as to source or origin by uniqueness 
of design or appearance; or trademark, trade name, or other 
identification normally on the items themselves, including their 
packaging. Goods are ``specifically identifiable'' in the normal course 
of business if their source or origin is ascertainable by inspection of 
the items themselves, including their packaging, regardless of whether 
inspection takes place. Goods are not considered to be ``specifically 
identifiable'' in the normal course of business if a trademark, trade 
name, or other form of identification not normally present is added to 
the items themselves, including their packaging, to accommodate this 
part.

[[Page 376]]

                                 General

    (18) If a unilateral selection meets the conditions described in 
paragraph (d) of this section, the United States person receiving the 
unilateral selection may comply or agree to comply, even if he knows or 
has reason to know that the selection was boycott-based. However, no 
United States person may comply or agree to comply with any unilateral 
selection if he knows or has reason to know that the purpose of the 
selection is to effect discrimination against any United States person 
on the basis of race, religion, sex, or national origin.

           Examples of Compliance With a Unilateral Selection

    The following examples are intended to give guidance in determining 
what constitutes a unilateral selection and the circumstances in which 
compliance with such a selection is permissible. They are illustrative, 
not comprehensive.

                    Specific and Unilateral Selection

    (i) A, a U.S. manufacturer of road-grading equipment, is asked by 
boycotting country Y to ship goods to Y on U.S. vessel B, a carrier 
which is not blacklisted by Y. A knows or has reason to know that Y's 
selection of B is boycott-based.
    A may comply with Y's request, or may agree to comply as a condition 
of the contract, because the selection is specific and unilateral.
    (ii) A, a U.S. contractor building an industrial facility in 
boycotting country Y is asked by B, a resident of Y, to use C as the 
supplier of air conditioning equipment to be used in the facility. C is 
not blacklisted by country Y. A knows or has reason to know that B's 
request is boycott-based.
    A may comply with B's request, or may agree to comply as a condition 
of the contract, because the selection of C is specific and unilateral.
    (iii) A, a U.S. manufacturer of automotive equipment, is asked by 
boycotting country Y not to ship its goods to Y on U.S. carriers, B, C, 
or D. Carriers B, C, and D are blacklisted by boycotting country Y. A 
knows or has reason to know that Y's request is boycott-based.
    A may not comply or agree to comply with Y's request, because no 
specific selection of any particular carrier has been made.
    (iv) A, a U.S. exporter shipping goods ordered by boycotting country 
Y, is provided by Y with a list of eligible U.S. insurers from which A 
may choose in insuring the shipment of its goods. A knows or has reason 
to know that the list was compiled on a boycott basis.
    A may not comply or agree to comply with Y's request that A choose 
from among the eligible insurers, because no specific selection of any 
particular insurer has been made.
    (v) A, a U.S. aircraft manufacturer, is negotiating to sell aircraft 
to boycotting country Y. During the negotiations, Y asks A to identify 
the company which normally manufactures the engines for the aircraft. A 
responds that they are normally manufactured by U.S. engine manufacturer 
B. B is blacklisted by Y. In making the purchase, Y specifies that the 
engines for the aircraft should be supplied by U.S. engine manufacturer 
C.
    A may comply or agree to comply with Y's selection of C, because Y's 
selection is unilateral and specific.
    (vi) A, a U.S. construction firm, is retained by an agency of 
boycotting country Y to build a pipeline. Y requests A to suggest 
qualified engineering firms to be used on-site in the construction of 
the pipeline. It is customary for A, regardless of where it conducts its 
operations, to identify qualified engineering firms to its customers so 
that its customers may make their own selection of the firm to be 
engaged. Choice of engineering firm is customarily a prerogative of the 
customer. A provides a list of five engineering firms, B-F, excluding no 
firm because it may be blacklisted, and then confers with and gives its 
recommendations to Y. A recommends C, because C is the best qualified. Y 
then selects B, because C is blacklisted.
    A may comply with Y's selection of B, because the boycott-based 
decision is made by Y and is unilateral and specific. Since A's pre-
award services are of the kind customarily provided in these situations, 
and since they are provided without reference to the boycott, they do 
not destroy the unilateral character of Y's selection.
    (vii) A, a U.S. aircraft manufacturer, has an order to supply a 
certain number of planes to boycotting country Y. In connection with the 
order, Y asks A to supply it with a list of qualified aircraft tire 
manufacturers so that Y can select the tires to be placed on the planes. 
This is a highly unusual request, since, in A's worldwide business 
operations, choice of tires is customarily made by the manufacturer, not 
the customer. Nonetheless, A supplies a list of tire manufacturers, B, 
C, D, and E. Y chooses tire manufacturer B because B is not blacklisted. 
Had A, as is customary, selected the tires, company C would have been 
chosen. C happens to be blacklisted, and A knows that C's blacklist 
status was the reason for Y's selection of B.
    A's provision of a list of tire manufacturers for Y to choose from 
destroys the unilateral character of Y's selection, because such

[[Page 377]]

a pre-selection service is not customary in A's worldwide business 
operations.
    (viii) A, a U.S. aircraft manufacturer, receives an order from U.S. 
company C, which is located in the United States, for the sale of 
aircraft to company D, a U.S. affiliate of C. D is a bona fide resident 
of boycotting country Y. C instructs A that ``in order to avoid boycott 
problems,'' A must use engines that are manufactured by company B, a 
company that is not blacklisted by Y. Engines built by B are unique in 
design and also bear B's trade name.
    Since A has reason to know that the selection is boycott-based, he 
must inquire of C whether the selection was in fact made by D. If C 
informs A that the selection was made by D, A may comply.
    (ix) Same as (viii), except that C initially states that the 
designation was unilaterally and specifically made by D.
    A may accept C's statement without further investigation and may 
comply with the selection, because C merely transmitted D's unilateral 
and specific selection.
    (x) Same as (ix), except that C informs A that it, C, has selected B 
on behalf of or as an agent of its affiliated company resident in the 
boycotting country.
    A may not comply with this selection, because the decision was not 
made by a resident of the boycotting country.
    (xi) A, a U.S. management consulting firm, is advising boycotting 
country Y on the selection of a contracting firm to construct a plant 
for the manufacture of agricultural chemicals. As is customary in its 
business, A compiles a list of potential contractors on the basis of its 
evaluation of the capabilities of the respective candidates to perform 
the job. A has knowledge that company B is blacklisted, but provides Y 
with the names of companies B, C, D, and E, listing them in order of 
their qualifications. Y instructs A to negotiate with C.
    A may comply with Y's instruction, because Y's selection is 
unilateral and specific.
    (xii) A, a U.S. exporter, is asked by boycotting country Y not to 
ship goods on carriers B, C, or D, which are owned by nationals of and 
are registered in country P, a country not boycotted by Y.
    A may comply or agree to comply with Y's request even though the 
selection is not specific, because A does not know or have reason to 
know that the request is boycott-based.

(Note: In example (xii), A has violated no prohibition, because it does 
not know or have reason to know that Y's instruction is boycott-based. 
Therefore, A could not act with the requisite intent to comply with the 
boycott.)

    (xiii) A, a U.S. construction company, receives a contract to 
construct a hotel in boycotting country Y. As part of the contract, A is 
required to furnish Y with lists of qualified suppliers of various 
specifically identifiable items. A compiles lists of various qualified 
suppliers wholly without reference to the boycott, and thereafter Y 
instructs A to negotiate with, enter into contracts with, and arrange 
for delivery from each of the suppliers which Y designates. A knows that 
Y's choices are made on a boycott basis.
    A may comply with Y's selections and carry out these post-award 
services for Y, because Y's selections were unilateral and specific and 
A's pre-award services were provided without reference to Y's boycott.

                  Examples of Boycotting Country Buyer

(The factors in determining whether a United States person is a ``bona 
fide resident'' of a boycotting country are the same as in paragraph (g) 
of this section on ``Compliance with Local Law.'' See also the examples 
in that section.)

    (i) A, a U.S. exporter, is asked by B, a U.S. person who is a bona 
fide resident of boycotting country Y, to ship goods on U.S. carrier C. 
C is not blacklisted by Y, and A knows that B has chosen on a boycott 
basis in order to comply with Y's boycott laws.
    A may comply or agree to comply with B's request, because B is a 
bona fide resident of Y.
    (ii) A is a U.S. computer company whose subsidiary, B, is a bona 
fide resident of boycotting country Y. A receives an order from B for 
specific, identifiable products manufactured by company C in connection 
with a computer which B is installing in Y.
    A may comply or agree to comply with B's unilateral and specific 
selection, so long as the discretion was in fact exercised by B, not A.

(Note: Unilateral selection transactions involving related United States 
persons will be scrutinized carefully to ensure that the selection was 
in fact made by the bona fide resident of the boycotting country.)

    (iii) A, a U.S. engineering firm, has chief engineer B as its 
resident engineer on a dam construction site in boycotting country Y. 
B's presence at the site is necessary in order to ensure proper 
supervision of the project. In order to comply with local law, B selects 
equipment supplier C rather than D, who is blacklisted, and directs A to 
purchase certain specific equipment from C for use in the project.
    A may comply with this unilateral selection, because the decision 
was made by a bona fide resident of Y.

(As noted above, unilateral selections involving related United States 
persons will be scrutinized carefully to ensure that the selection was 
in fact made by the bona fide resident of the boycotting country.)


[[Page 378]]


    (iv) B, a branch of U.S. bank A, is located in boycotting country Y. 
B is in need of office supplies and asks the home office in New York to 
make the necessary purchases. A contacts C, a U.S. company in the office 
supply business, and instructs C to purchase various items from certain 
specific companies and ship them directly to B. In order to avoid any 
difficulties for B with respect to Y's boycott laws, A is careful to 
specify only non-blacklisted companies or suppliers. C knows that that 
was A's purpose. C may not comply with A's instruction, because the 
selection of suppliers was not made by a resident of a boycotting 
country.
    (v) Same as (iv), except that A has given standing instructions to B 
that whenever it needs office supplies, it should specify certain 
suppliers designated by A. To avoid running afoul of Y's boycott laws, 
A's designations consist exclusively of non-blacklisted firms. A 
receives an order from B with the suppliers designated in accordance 
with A's instructions.
    A may not comply with B's selection, because the selection was not 
in fact made by a bona fide resident of the boycotting country, but by a 
person located in the United States.

                    Examples of Suppliers of Services

    (i) A, a U.S. manufacturer, is asked by boycotting country Y to ship 
goods to Y on U.S. vessel B, a carrier which is not blacklisted by Y.
    A may comply or agree to comply with Y's request, because compliance 
with the unilateral and specific selection of carriers is expressly 
permitted under this exception.
    (ii) A, a U.S. exporter shipping goods ordered by C, a national of 
boycotting country Y, is asked by C to insure the shipment through U.S. 
insurer B.
    A may comply or agree to comply with C's request, because compliance 
with the unilateral and specific selection of an insurer is expressly 
permitted under this exception.
    (iii) A, a U.S. construction company, is hired by C, an agency of 
the government of boycotting country Y, to build a power plant in Y. C 
specifies that A should subcontract the foundation work to U.S. 
contractor B. Part of the foundation design work will be done by B in 
the United States.
    A may comply or agree to comply with Y's designation, because a 
necessary and not insignificant part of B's services are to be performed 
within the boycotting country, and such services are customarily 
performed on-site.
    (iv) A, a U.S. contractor, is engaged by boycotting country Y to 
build a power plant. Y specifies that U.S. architectural firm B should 
be retained by A to design the plant. In order to design the plant, it 
is essential that B's personnel visit and become familiar with the site, 
although the bulk of the design and drawing work will be done in the 
United States.
    A may comply or agree to comply with Y's unilateral and specific 
selection of architectural firm B, because a necessary and not 
insignificant part of B's services are to be performed within Y, and 
such on-site work is customarily involved in the provision of 
architectural services. The fact that the bulk of the actual work may be 
performed in the United States is irrelevant since the part to be 
performed within Y is necessary to B's effective performance.
    (v) Same as (iv), except that Y specifies that the turbine for the 
power plant should be designed by U.S. engineer C. It is neither 
customary nor necessary for C to visit the site in order to do any of 
his work, but C has informed A that he would probably want to visit the 
site in Y if he were selected for the job.
    A may not comply or agree to comply with Y's request, because, in 
the normal course of business, it is neither customary nor necessary for 
engineer C's services to be performed in Y.
    (vi) A, a U.S. aircraft manufacturer, receives a contract from 
boycotting country Y to manufacture jet engines for Y's use. Y specifies 
that the engines should be designed by U.S. industrial engineering firm 
B.
    A may not comply or agree to comply with Y's request, because, in 
the normal course of business, the services will not be performed in Y.
    (vii) U.S. company A has a contract to supply specially designed 
road graders to boycotting country Y. Y has instructed A that it should 
engage engineering firm B in the design work rather than engineering 
firm C, which A normally uses, because C is blacklisted. When A contacts 
B, B informs A that one of B's personnel customarily visits the location 
in which any equipment B designs is used after it is in use, in order to 
determine how good a design job B has done. Such visits are necessary 
from B's point of view to provide a check on the quality of its work, 
and they are necessary from Y's point of view because they make it 
possible for Y to discuss possible design changes should deficiencies be 
detected.
    A may not comply with Y's selection of B, because the services which 
B would perform in Y are an insignificant part of the total services to 
be performed by B.

               Examples of Specifically Identifiable Goods

(The test of what constitutes ``specifically identifiable goods'' under 
this exception also applies to the term ``specifically identifiable 
goods'' as used in paragraph (g) of this section on ``Compliance with 
Local Law.'')

    (i) A, a U.S. contractor, is constructing an apartment complex, on a 
turnkey basis, for

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boycotting country Y. Y instructs A to use only kitchen appliances 
manufactured by U.S. company B in completing the project. The appliances 
normally bear the manufacturer's name and trademark.
    A may comply with Y's selection of B, because Y's unilateral and 
specific selection is of goods identifiable as to source or origin in 
the normal course of business at the time of their entry into Y.
    (ii) Same as (i), except that Y directs A to use lumber manufactured 
only by U.S. company C. In the normal course of business, C neither 
stamps its name on the lumber nor identifies itself as the manufacturer 
on the packaging. In addition, normal export packaging does not identify 
the manufacturer.
    A may not comply with Y's selection, because the goods selected are 
not identifiable by source or origin in the normal course of business at 
the time of their entry into Y.
    (iii) B, a U.S. contractor who is a bona fide resident of boycotting 
country Y, is engaged in building roads. B retains the services of A, a 
U.S. engineering firm, to assist it in procuring construction equipment. 
B directs A to purchase road graders only from manufacturer C because 
other road grader manufacturers which A might use are blacklisted. C's 
road graders normally bear C's insignia.
    A may comply with B's selection of C, because the goods selected are 
identifiable by source or origin in the normal course of business at the 
time of their entry into Y.
    (iv) A, a U.S. company, manufactures computer-operated machine 
tools. The computers are mounted on a separate bracket on the side of 
the equipment and are readily identifiable by brand name imprinted on 
the equipment. There are five or six U.S. manufacturers of such 
computers which will function interchangeably to operate the machine 
tools manufactured by A. B, a resident of boycotting country Y, 
contracts to buy the machine tools manufactured by A on the condition 
that A incorporate, as the computer drive, a computer manufactured by 
U.S. company C. B's designation of C is made to avoid boycott problems 
which could be caused if computers manufactured by some other company 
were used.
    A may comply with B's designation of C, because the goods selected 
are identifiable by source or origin in the normal course of business at 
the time of their entry into Y.
    (v) A, a U.S. wholesaler of electronic equipment, receives an order 
from B, a U.S. manufacturer of radio equipment, who is a bona fide 
resident of boycotting country Y. B orders a variety of electrical 
components and specifies that all transistors must be purchased from 
company C, which is not blacklisted by Y. The transistors requested by B 
do not normally bear the name of the manufacturer; however, they are 
typically shipped in cartons, and C's name and logo appear on the 
cartons.
    A may comply with B's selection, because the goods selected by B are 
identifiable as to source or origin in the normal course of business at 
the time of their entry into Y by virtue of the containers or packaging 
used.
    (vi) A, a U.S. computer manufacturer, receives an order for a 
computer from B, a university in boycotting country Y. B specifies that 
certain integrated circuits incorporated in the computer must be 
supplied by U.S. electronics company C. These circuits are incorporated 
into the computer and are not visible without disassembling the 
computer.
    A may not comply or agree to comply with B's specific selection of 
these components, because they are not identifiable as to their source 
or origin in the normal course of business at the time of their entry 
into Y.
    (vii) A, a U.S. clothing manufacturer, receives an order for shirts 
from B, a retailer resident in boycotting country Y. B specifies that 
the shirts are to be manufactured from cotton produced by U.S. farming 
cooperative C. Such shirts will not identify C or the source of the 
cotton.
    A may not comply or agree to comply with B's designation, because 
the cotton is not identifiable as to source or origin in the normal 
course of business at the time of entry into Y.
    (viii) A, a U.S. contractor, is retained by B, a construction firm 
located in and wholly-owned by boycotting country Y, to assist B in 
procuring construction materials. B directs A to purchase a range of 
materials, including hardware, tools, and trucks, all of which bear the 
name of the manufacturer stamped on the item. In addition, B directs A 
to purchase steel beams manufactured by U.S. company C. The name of 
manufacturer C normally does not appear on the steel itself or on its 
export packaging.
    A may comply with B's selection of the hardware, tools, and trucks, 
because they are identifiable as to source or origin in the normal 
course of business at the time of entry into Y. A may not comply with 
B's selection of steel beams, because the goods are not identifiable as 
to source or origin by trade name, trademark, uniqueness or packaging at 
the time of their entry into Y.

Examples of Discrimination on Basis of Race, Religion, Sex, or National 
                                 Origin

    (i) A, a U.S. paper manufacturer, is asked by boycotting country Y 
to ship goods to Y on U.S. vessel B. Y states that the reason for its 
choice of B is that, unlike U.S. vessel C, B is not owned by persons of 
a particular faith.
    A may not comply or agree to comply with Y's request, because A has 
reason to know that the purpose of the selection is to effect religious 
discrimination against a United States person.


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    (e) Shipment and transshipment of exports pursuant to a boycotting 
country's requirements.

 Compliance With a Boycotting Country's Requirements Regarding Shipment 
                      and Transshipment of Exports

    (1) A United States person may comply or agree to comply with the 
export requirements of a boycotting country with respect to shipments or 
transshipments of exports to:
    (i) A boycotted country;
    (ii) Any business concern of a boycotted country;
    (iii) Any business concern organized under the laws of a boycotted 
country; or
    (iv) Any national or resident of a boycotted country.
    (2) This exception permits compliance with restrictions which a 
boycotting country may place on direct exports to a boycotted country; 
on indirect exports to a boycotted country (i.e., those that pass via 
third parties); and on exports to residents, nationals, or business 
concerns of, or organized under the laws of, a boycotted country, 
including those located in third countries.
    (3) This exception also permits compliance with restrictions which a 
boycotting country may place on the route of export shipments when the 
restrictions are reasonably related to preventing the export shipments 
from coming into contact with or under the jurisdiction of the boycotted 
country. This exception applies whether a boycotting country or the 
vendor of the shipment:
    (i) Explicitly states that the shipment should not pass through the 
boycotted country enroute to its final destination; or
    (ii) Affirmatively describes a route of shipment that does not 
include the boycotted country.
    (4) A United States person may not, under this exception, refuse on 
an across-the-board basis to do business with a boycotted country or a 
national or resident of a boycotted country.

    Examples of Compliance With a Boycotting Country's Requirements 
             Regarding Shipment or Transshipment of Exports

    The following examples are intended to give guidance in determining 
the circumstances in which compliance with the export requirements of a 
boycotting country is permissible. They are illustrative, not 
comprehensive.
    (i) A, a U.S. petroleum company, exports petroleum products to 20 
countries, including the United States, from boycotting country Y. 
Country Y's export regulations require that products not be exported 
from Y to boycotted country X.
    A may agree to and comply with Y's regulations with respect to the 
export of goods from Y to X.
    (ii) Same as (i), except that Y's export regulations require that 
goods not be exported from boycotting country Y to any business concern 
organized under the laws of boycotted country X.
    A may agree to and comply with Y's regulations with respect to the 
export of goods from Y to a business concern organized under the laws of 
X, even if such concern is located in a country not involved in Y's 
boycott of X.
    (iii) B, the operator of a storage facility in country M, contracts 
with A, a U.S. carrier, for the shipment of certain goods manufactured 
in boycotting country Y. A's contract with B contains a provision 
stating that the goods to be transported may not be shipped or 
transshipped to boycotted country X. B informs A that this provision is 
a requirement of C, the manufacturer of goods who is a resident of 
boycotting country Y. Country M is not boycotted by Y.
    A may agree to and comply with this provision, because such a 
provision is required by the export regulations of boycotting country Y 
in order to prevent shipment of Y-origin goods to a country boycotted by 
Y.
    (iv) A, a U.S. petroleum refiner located in the United States, 
purchases crude oil from boycotting country Y. A has a branch operation 
in boycotted country X. Y requires, as a condition of sale, that A agree 
not to ship or transship the crude oil or products refined in Y to A's 
branch in X.
    A may agree to and comply with these requirements, because they are 
export requirements of Y designed to prevent Y-origin products from 
being shipped to a boycotted country.
    (v) A, a U.S. company, has a petrochemical plant in boycotting 
country Y. As a condition of securing an export license from Y, A must 
agree that it will not ship or permit transshipment of any of its output 
from the plant in Y to any companies which Y lists as being owned by 
nationals of boycotted country X.

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    A may agree to this condition, because it is a restriction designed 
to prevent Y-origin products from being exported to a business concern 
of boycotted country X or to nationals of boycotted country X.
    (vi) Same as (v), except that the condition imposed on A is that Y-
origin goods may not be shipped or permitted to be transshipped to any 
companies which Y lists as being owned by persons whose national origin 
is X.
    A may not agree to this condition, because it is a restriction 
designed to prevent Y-origin goods from being exported to persons of a 
particular national origin rather than to residents or nationals of a 
particular boycotted country.
    (vii) A, a U.S. petroleum company, exports petroleum products to 20 
countries, including the United States, from boycotting country Y. Y 
requires, as a condition of sale, that A not ship the products to be 
exported from Y to or through boycotted country X.
    A may agree to and comply with this requirement because it is an 
export requirement of Y designed to prevent Y-origin products from 
coming into contact with or under the jurisdiction of a boycotted 
country.
    (viii) Same as (vii), except that boycotting country Y's export 
regulations require that products to be exported from Y not pass through 
a port of boycotted country X.
    A may agree to and comply with Y's regulations prohibiting Y-origin 
exports from passing through a port at boycotted country X, because they 
are export requirements of Y designed to prevent Y-origin products from 
coming into contact with or under the jurisdiction of a boycotted 
country.
    (ix) Same as (vii), except that Y's export regulations require that 
A not transship the exported products ``in or at'' boycotted country X.
    A may agree to and comply with Y's regulations with respect to the 
transshipment of goods ``in or at'' X, because they are export 
requirements of Y designed to prevent Y-origin products from coming into 
contact with or under the jurisdiction of a boycotted country.

    (f) Immigration, passport, visa, or employment requirements of a 
boycotting country.

Compliance With Immigration, Passport, Visa, or Employment Requirements 
                         of a Boycotting Country

    (1) A United States individual may comply or agree to comply with 
the immigration, passport, visa, or employment requirements of a 
boycotting country, and with requests for information from a boycotting 
country made to ascertain whether such individual meets requirements for 
employment within the boycotting country, provided that he furnishes 
information only about himself or a member of his family, and not about 
any other United States individual, including his employees, employers, 
or co-workers.
    (2) For purposes of this section, a United States individual means a 
person who is a resident or national of the United States. Family means 
immediate family members, including parents, siblings, spouse, children, 
and other dependents living in the individual's home.
    (3) A United States person may not furnish information about its 
employees or executives, but may allow any individual to respond on his 
own to any request for information relating to immigration, passport, 
visa, or employment requirements. A United States person may also 
perform any ministerial acts to expedite processing of applications by 
individuals. These include informing employees of boycotting country 
visa requirements at an appropriate time; typing, translation, messenger 
and similar services; and assisting in or arranging for the expeditious 
processing of applications. All such actions must be undertaken on a 
non-discriminatory basis.
    (4) A United States person may proceed with a project in a 
boycotting country even if certain of its employees or other prospective 
participants in a transaction are denied entry for boycott reasons. But 
no employees or other participants may be selected in advance in a 
manner designed to comply with a boycott.

 Examples of Compliance With Immigration, Passport, Visa, or Employment 
                  Requirements of a Boycotting Country

    The following examples are intended to give guidance in determining 
the circumstances in which compliance with immigration, passport, visa, 
or employment requirements is permissible. They are illustrative, not 
comprehensive.
    (i) A, a U.S. individual employed by B, a U.S. manufacturer of 
sporting goods with a plant in boycotting country Y, wishes to obtain a 
work visa so that he may transfer to the plant in Y. Country Y's 
immigration laws specify that anyone wishing to enter the country or 
obtain a visa to work in the country must supply information about his

[[Page 382]]

religion. This information is required for boycott purposes.
    A may furnish such information, because it is required by Y's 
immigration laws.
    (ii) Same as (i), except that A is asked to supply such information 
about other employees of B.
    A may not supply this information, because it is not information 
about himself or his family.
    (iii) A, a U.S. building contractor, has been awarded a construction 
contract to be performed in boycotting country Y. Y's immigration laws 
require that individuals applying for visas must indicate race, 
religion, and place of birth. The information is sought for boycott 
purposes. To avoid repeated rejections of applications for work visas by 
A's employees, A desires to furnish to country Y a list of its 
prospective and current employees and required information about each so 
that Y can make an initial screening.
    A may not furnish such a list, because A would be furnishing 
information about the race, religion, and national origin of its 
employees.
    (iv) Same as (iii), except that A selects for work on the project 
those of its current employees whom it believes will be granted work 
visas from boycotting country Y.
    A may not make a selection from among its employees in a manner 
designed to comply with the boycott-based visa requirements of Y, but 
must allow all eligible employees to apply for visas. A may later 
substitute an employee who obtains the necessary visa for one who has 
had his application rejected.
    (v) Same as (iii), except that A selects employees for the project 
and then allows each employee individually to apply for his own visa. 
Two employees' applications are rejected, and A then substitutes two 
other employees who, in turn, submit their own visa applications.
    A may take such action, because in so doing A is not acting in 
contravention of any prohibition of this part.
    (vi) Same as (v), except that A arranges for the translation, typing 
and processing of its employees' applications, and transmits all the 
applications to the consulate of boycotting country Y.
    A may take such ministerial actions, because in so doing A is not 
itself furnishing information with respect to race, religion, sex, or 
national origin, but is merely transmitting information furnished by its 
individual employees.
    (vii) A, a U.S. contractor, selects U.S. subcontractor B to perform 
certain engineering services in connection with A's project in 
boycotting country Y. The work visa application submitted by the 
employee B has proposed as chief engineer of this project is rejected by 
Y because his national origin is of boycotted country X. Subcontractor B 
thereupon withdraws.
    A may continue with the project and select another subcontractor, 
because A is not acting in contravention of any prohibition of this 
part.

    (g) Compliance with local law. (1) This exception contains two 
parts. The first covers compliance with local law with respect to a 
United States person's activities exclusively within a foreign country; 
the second covers compliance with local import laws by United States 
persons resident in a foreign country. Under both parts of this 
exception, local laws are laws of the host country, whether derived from 
statutes, regulations, decrees, or other official sources having the 
effect of law in the host country. This exception is not available for 
compliance with presumed policies or understandings of policies unless 
those policies are reflected in official sources having the effect of 
law.
    (2) Both parts of this exception apply only to United States persons 
resident in a foreign country. For purposes of this exception, a United 
States person will be considered to be a resident of a foreign country 
only if he is a bona fide resident. A United States person may be a bona 
fide resident of a foreign country even if such person's residency is 
temporary.
    (3)(i) Factors that will be considered in determining whether a 
United States person is a bona fide resident of a foreign country 
include:
    (A) Physical presence in the country;
    (B) Whether residence is needed for legitimate business reasons;
    (C) Continuity of the residency;
    (D) Intent to maintain the residency;
    (E) Prior residence in the country;
    (F) Size and nature of presence in the country;
    (G) Whether the person is registered to do business or incorporated 
in the country;
    (H) Whether the person has a valid work visa; and
    (I) Whether the person has a similar presence in both boycotting and 
non-boycotting foreign countries in connection with similar business 
activities.
    (ii) No one of the factors in paragraph (g)(3) of this section is 
dispositive. All the circumstances involved will be closely examined to 
ascertain

[[Page 383]]

whether there is, in fact, bona fide residency. Residency established 
solely for purposes of avoidance of the application of this part, 
unrelated to legitimate business needs, does not constitute bona fide 
residency.

                     Examples of Bona Fide Residency

    The following examples are intended to give guidance in determining 
the circumstances in which a United States person may be a bona fide 
resident of a foreign country. For purposes of illustration, each 
example discusses only one or two factors, instead of all relevant 
factors. They are illustrative, not comprehensive.
    (i) A, a U.S. radio manufacturer located in the United States, 
receives a tender to bid on a contract to supply radios for a hotel to 
be built in boycotting country Y. After examining the proposal, A sends 
a bid from its New York office to Y.
    A is not a resident of Y, because it is not physically present in Y.
    (ii) Same as (i), except that after receiving the tender, A sends 
its sales representative to Y. A does not usually have sales 
representatives in countries when it bids from the United States, and 
this particular person's presence in Y is not necessary to enable A to 
make the bid.
    A is not a bona fide resident of Y, because it has no legitimate 
business reasons for having its sales representative resident in Y.
    (iii) A, a U.S. bank, wishes to establish a branch office in 
boycotting country Y. In pursuit of that objective, A's personnel visit 
Y to make the necessary arrangements. A intends to establish a permanent 
branch office in Y after the necessary arrangements are made.
    A's personnel in Y are not bona fide residents of Y, because A does 
not yet have a permanent business operation in Y.
    (iv) Same as (iii), except A's personnel are required by Y's laws to 
furnish certain non-discriminatory boycott information in order to 
establish a branch in Y.
    In these limited circumstances, A's personnel may furnish the non-
discriminatory boycott information necessary to establish residency to 
the same extent a U.S. person who is a bona fide resident in that 
country could. If this information could not be furnished in such 
limited circumstances, the exception would be available only to firms 
resident in a boycotting country before the effective date of this part.
    (v) A, a U.S. construction company, receives an invitation to build 
a power plant in boycotting country Y. After receipt of the invitation, 
A's personnel visit Y in order to survey the site and make necessary 
analyses in preparation for submitting a bid. The invitation requires 
that otherwise prohibited boycott information be furnished with the bid.
    A's personnel in Y are not bona fide residents of Y, because A has 
no permanent business operation in Y. Therefore, A's personnel may not 
furnish the prohibited information.
    (vi) Same as (v), except that A is considering establishing an 
office in boycotting country Y. A's personnel visit Y in order to 
register A to do business in that country. A intends to establish 
ongoing construction operations in Y. A's personnel are required by Y's 
laws to furnish certain non-discriminatory boycott information in order 
to register A to do business or incorporate a subsidiary in Y.
    In these limited circumstances, A's personnel may furnish non-
discriminatory boycott information necessary to establish residency to 
the same extent a U.S. person who is a bona fide resident in that 
country could. If this information could not be furnished in such 
limited circumstances, the exception would be available only to firms 
resident in a boycotting country before the effective date of this part.
    (vii) A, a subsidiary of U.S. oil company B, is located in 
boycotting country Y. A has been engaged in oil explorations in Y for a 
number of years.
    A is a bona fide resident of Y, because of its pre-existing 
continuous presence in Y for legitimate business reasons.
    (viii) Same as (vii), except that A has just been established in Y 
and has not yet begun operations.
    A is a bona fide resident of Y, because it is present in Y for 
legitimate business reasons and it intends to reside continuously.
    (ix) U.S. company A is a manufacturer of prefabricated homes. A 
builds a plant in boycotting country Y for purposes of assembling 
components made by A in the United States and shipped to Y.
    A's personnel in Y are bona fide residents of Y, because A's plant 
in Y is established for legitimate business reasons, and it intends to 
reside continuously.
    (x) U.S. company A has its principal place of business in the United 
States. A's sales agent visits boycotting country Y from time to time 
for purposes of soliciting orders.
    A's sales agent is not a bona fide resident of Y, because such 
periodic visits to Y are insufficient to establish a bona fide 
residency.
    (xi) A, a branch office of U.S. construction company B, is located 
in boycotting country Y. The branch office has been in existence for a 
number of years and has been performing various management services in 
connection with B's construction operations in Y.
    A is a bona fide resident of Y, because of its longstanding presence 
in Y and its conduct of ongoing operations in Y.
    (xii) U.S. construction company A has never done any business in 
boycotting country Y. It is awarded a contract to construct

[[Page 384]]

a hospital in Y, and preparatory to beginning construction, sends its 
personnel to Y to set up operations.
    A's personnel are bona fide residents of Y, because they are present 
in Y for the purposes of carrying out A's legitimate business purposes; 
they intend to reside continuously; and residency is necessary to 
conduct their business.
    (xiii) U.S. company A manufactures furniture. All its sales in 
foreign countries are conducted from its offices in the United States. 
From time to time A has considered opening sales offices abroad, but it 
has concluded that it is more efficient to conduct sales operations from 
the United States. Shortly after the effective date of this part, A 
sends a sales representative to boycotting country Y to open an office 
in and solicit orders from Y. It is more costly to conduct operations 
from that office than to sell directly from the United States, but A 
believes that if it establishes a residence in Y, it will be in a better 
position to avoid conflicts with U.S. law in its sales to Y.
    A's sales representative is not a bona fide resident of Y, because 
the residency was established to avoid the application of this part and 
not for legitimate business reasons.
    (xiv) Same as (xiii), except that it is in fact more efficient to 
have a sales office in Y. In fact, without a sales office in Y, A would 
find it difficult to explore business opportunities in Y. A is aware, 
however, that residency in Y would permit its sales representative to 
comply with Y's boycott laws.
    A's sales representative is a bona fide resident of Y, because A has 
a legitimate business reason for establishing a sales office in Y.
    (xv) U.S. company B is a computer manufacturer. B sells computers 
and related programming services tailored to the needs of individual 
clients. Because of the complex nature of the product, B must have sales 
representatives in any country where sales are made. B has a sales 
representative, A, in boycotting country Y. A spends two months of the 
year in Y, and the rest of the year in other countries. B has a 
permanent sales office from which A operates while in Y, and the sales 
office is stocked with brochures and other sales materials.
    A is a bona fide resident of Y, because his presence in Y is 
necessary to carry out B's legitimate business purposes; B maintains a 
permanent office in Y; and B intends to continue doing business in Y in 
the future.
    (xvi) A, a U.S. construction engineering company, is engaged by B, a 
U.S. general contracting company, to provide services in connection with 
B's contract to construct a hospital complex in boycotting country Y. In 
order to perform those services, A's engineers set up a temporary office 
in a trailer on the construction site in Y. A's work is expected to be 
completed within six months.
    A's personnel in Y are bona fide residents of Y, because A's on-site 
office is necessary to the performance of its services for B, and 
because A's personnel are continuously there.
    (xvii) A, a U.S. company, sends one of its representatives to 
boycotting country Y to explore new sales possibilities for its line of 
transistor radios. After spending several weeks in Y, A's representative 
rents a post office box in Y, to which all persons interested in A's 
products are directed to make inquiry.
    A is not a bona fide resident of Y, because rental of a post office 
box is not a sufficient presence in Y to constitute residency.
    (xviii) A, a U.S. computer company, has a patent and trademark 
registered in the United States. In order to obtain registration of its 
patent and trademark in boycotting country Y, A is required to furnish 
certain non-discriminatory boycott information.
    A may not furnish the information, because A is not a bona fide 
resident of Y.

    (h) Activities exclusively within a foreign country. (1) Any United 
States person who is a bona fide resident of a foreign country, 
including a boycotting country, may comply or agree to comply with the 
laws of that country with respect to his activities exclusively within 
that country. These activities include:
    (i) Entering into contracts which provide that local law applies or 
governs, or that the parties will comply with such laws;
    (ii) Employing residents of the host country;
    (iii) Retaining local contractors to perform work within the host 
country;
    (iv) Purchasing or selling goods or services from or to residents of 
the host country; and
    (v) Furnishing information within the host country.
    (2) Activities exclusively within the country do not include 
importing goods or services from outside the host country, and, 
therefore, this part of the exception does not apply to compliance with 
import laws in connection with importing goods or services.

   Examples of Permissible Compliance With Local Law With Respect to 
             Activities Exclusively Within a Foreign Country

    The following examples are intended to give guidance in determining 
the circumstances in which compliance with local law is permissible. 
They are illustrative, not comprehensive.

[[Page 385]]

             Activities Exclusively Within a Foreign Country

    (i) U.S. construction company A, a bona fide resident of boycotting 
country Y, has a contract to build a school complex in Y. Pursuant to 
Y's boycott laws, the contract requires A to refuse to purchase supplies 
from certain local merchants. While Y permits such merchants to operate 
within Y, their freedom of action in Y is constrained because of their 
relationship with boycotted country X.
    A may enter into the contract, because dealings with local merchants 
are activities exclusively within Y.
    (ii) A, a banking subsidiary of U.S. bank B, is a bona fide resident 
of boycotting country Y. From time to time, A purchases office supplies 
from the United States.
    A's purchase of office supplies is not an activity exclusively 
within Y, because it involves the import of goods from abroad.
    (iii) A, a branch of U.S. bank B, is a bona fide resident of 
boycotting country Y. Under Y's boycott laws, A is required to supply 
information about whether A has any dealings with boycotted country X. A 
compiles and furnishes the information within Y and does so of its own 
knowledge.
    A may comply with that requirement, because in compiling and 
furnishing the information within Y, based on its own knowledge, A is 
engaging in an activity exclusively within Y.
    (iv) Same as (iii), except that A is required to supply information 
about B's dealings with X. From its own knowledge and without making any 
inquiry of B, A compiles and furnishes the information.
    A may comply with that requirement, because in compiling and 
furnishing the information within Y, based on its own knowledge, A is 
engaging in an activity exclusively within Y.
    (v) Same as (iv), except that in making its responses, A asks B to 
compile some of the information.
    A may not comply, because the gathering of the necessary information 
takes place partially outside Y.
    (vi) U.S. company A has applied for a license to establish a 
permanent manufacturing facility in boycotting country Y. Under Y's 
boycott law, A must agree, as a condition of the license, that it will 
not sell any of its output to blacklisted foreign firms.
    A may not comply, because the agreement would govern activities of A 
which are not exclusively within Y.

              Discrimination Against United States Persons

    (i) A, a subsidiary of U.S. company B, is a bona fide resident of 
boycotting country Y. A manufactures air conditioners in its plant in Y. 
Under Y's boycott laws, A must agree not to hire nationals of boycotted 
country X.
    A may agree to the restriction and may abide by it with respect to 
its recruitment of individuals within Y, because the recruitment of such 
individuals is an activity exclusively within Y. However, A cannot abide 
by this restriction with respect to its recruitment of individuals 
outside Y, because this is not an activity exclusively within Y.
    (ii) Same as (i), except that pursuant to Y's boycott laws, A must 
agree not to hire anyone who is of a designated religion.
    A may not agree to this restriction, because the agreement calls for 
discrimination against U.S. persons on the basis of religion. It makes 
no difference whether the recruitment of the U.S. persons occurs within 
or without Y.

(Note: The exception for compliance with local law does not apply to 
boycott-based refusals to employ U.S. persons on the basis of race, 
religion, sex, or national origin even if the activity is exclusively 
within the boycotting country.)

    (i) Compliance with local import law. (1) Any United States person 
who is a bona fide resident of a foreign country, including a boycotting 
country, may, in importing goods, materials or components into that 
country, comply or agree to comply with the import laws of that country, 
provided that:
    (i) The items are for his own use or for his use in performing 
contractual services within that country; and
    (ii) In the normal course of business, the items are identifiable as 
to their source or origin at the time of their entry into the foreign 
country by:
    (a) Uniqueness of design or appearance; or
    (b) Trademark, trade name, or other identification normally on the 
items themselves, including their packaging.
    (2) The factors that will be considered in determining whether a 
United States person is a bona fide resident of a foreign country are 
those set forth in paragraph (g) of this section. Bona fide residence of 
a United States company's subsidiary, affiliate, or other permanent 
establishment in a foreign country does not confer such residence on 
such United States company. Likewise, bona fide residence of a United 
States company's employee in a foreign country does not confer such 
residence on the entire company.
    (3) A United States person who is a bona fide resident of a foreign 
country

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may take action under this exception through an agent outside the 
country, but the agent must act at the direction of the resident and not 
exercise his own discretion. Therefore, if a United States person 
resident in a boycotting country takes action to comply with a 
boycotting country's import law with respect to the importation of 
qualified goods, he may direct his agent in the United States on the 
action to be taken, but the United States agent himself may not exercise 
any discretion.
    (4) For purposes of this exception, the test that governs whether 
goods or components of goods are specifically identifiable is identical 
to the test applied in paragraph (c) of this section on ``Compliance 
With Unilateral Selection'' to determine whether they are identifiable 
as to their source or origin in the normal course of business.
    (5) The availability of this exception for the import of goods 
depends on whether the goods are intended for the United States person's 
own use at the time they are imported. It does not depend upon who has 
title to the goods at the time of importation into a foreign country.
    (6) Goods are for the United States person's own use (including the 
performance of contractual services within the foreign country) if:
    (i) They are to be consumed by the United States person;
    (ii) They are to remain in the United States person's possession and 
to be used by that person;
    (iii) They are to be used by the United States person in performing 
contractual services for another;
    (iv) They are to be further manufactured, incorporated into, refined 
into, or reprocessed into another product to be manufactured for 
another; or
    (v) They are to be incorporated into, or permanently affixed as a 
functional part of, a project to be constructed for another.
    (7) Goods acquired to fill an order for such goods from another are 
not for the United States person's own use. Goods procured for another 
are not for one's own use, even if the furnishing of procurement 
services is the business in which the United States person is 
customarily engaged. Nor are goods obtained for simple resale acquired 
for one's own use, even if the United States person is engaged in the 
retail business. Likewise, goods obtained for inclusion in a turnkey 
project are not for one's own use if they are not customarily 
incorporated into, or do not customarily become permanently affixed as a 
functional part of the project.
    (8) This part of the local law exception does not apply to the 
import of services, even when the United States person importing such 
services is a bona fide resident of a boycotting country and is 
importing them for his own use. In addition, this exception is available 
for a United States person who is a bona fide resident of a foreign 
country only when the individual or entity actually present within that 
country takes action through the exercise of his own discretion.
    (9) Use of this exception will be monitored and continually reviewed 
to determine whether its continued availability is consistent with the 
national interest. Its availability may be limited or withdrawn as 
appropriate. In reviewing the continued availability of this exception, 
the effect that the inability to comply with local import laws would 
have on the economic and other relations of the United States with 
boycotting countries will be considered.
    (10) A United States person who is a bona fide resident of a foreign 
country may comply or agree to comply with the host country's import 
laws even if he knows or has reason to know that particular laws are 
boycott-related. However, no United States person may comply or agree to 
comply with any host country law which would require him to discriminate 
against any United States person on the basis of race, religion, sex, or 
national origin, or to supply information about any United States 
person's race, religion, sex, or national origin.

        Examples of Permissible Compliance With Local Import Law

    The following examples are intended to give guidance in determining 
the circumstances in which compliance with local import law is 
permissible. They are illustrative, not comprehensive.

[[Page 387]]

                   Compliance by a Bona Fide Resident

    (i) A, a subsidiary of U.S. company B, is a bona fide resident of 
boycotting country Y and is engaged in oil drilling operations in Y. In 
acquiring certain large, specifically identifiable products for carrying 
out its operations in Y, A chooses only from non-blacklisted firms 
because Y's import laws prohibit the importation of goods from 
blacklisted firms. However, with respect to smaller items, B makes the 
selection on behalf of A and sends them to A in Y.
    A may choose from non-blacklisted firms, because it is a U.S. person 
who is a bona fide resident in Y. However, because B is not resident in 
Y, B cannot make boycott-based selections to conform with Y's import 
laws prohibiting the importation of goods from blacklisted firms.
    (ii) Same as (i), except that after making its choices on the larger 
items, A directs B to carry out its instructions by entering into 
appropriate contracts and making necessary shipping arrangements.
    B may carry out A's instructions provided that A, a bona fide 
resident of Y, has in fact made the choice and B is exercising no 
discretion, but is acting only as A's agent.
    (Note: Such transactions between related companies will be 
scrutinized carefully. A must in fact exercise the discretion and make 
the selections. If the discretion is exercised by B, B would be in 
violation of this part.)

    (iii) U.S. construction company A has a contract to build a school 
in boycotting country Y. A's employees set up operations in Y for 
purposes of commencing construction. A's employees in Y advise A's 
headquarters in the United States that Y's import laws prohibit 
importation of goods manufactured by blacklisted firms. A's headquarters 
then issues invitations to bid only to non-blacklisted firms for certain 
specifically identifiable goods.
    A's headquarters' choice of non-blacklisted suppliers is not a 
choice made by a U.S. person who is a bona fide resident of Y, because 
the discretion in issuing the bids was exercised in the United States, 
not in Y.
    (iv) Same as (iii), except that A's employees in Y actually make the 
decision regarding to whom the bids should be issued.
    The choices made by A's employees are choices made by U.S. persons 
who are bona fide residents of Y, because the discretion in choosing was 
exercised solely in Y.

(Note: Choices purportedly made by employees of U.S. companies who are 
resident in boycotting countries will be carefully scrutinized to ensure 
that the discretion was exercised entirely in the boycotting country.)

                     Specifically Identifiable Goods

    The test and examples as to what constitutes specifically 
identifiable goods are identical to those applicable under paragraph (d) 
of this section on ``Compliance With Unilateral Selection.''

                    Imports for U.S. Person's Own Use

    (i) A, a subsidiary of U.S. company B, is a bona fide resident of 
boycotting country Y. A plans to import computer operated machine tools 
to be installed in its automobile plant in boycotting country Y. The 
computers are mounted on a separate bracket on the side of the equipment 
and are readily identifiable by brand name. A orders the tools from U.S. 
supplier C and specifies that C must incorporate computers manufactured 
by D, a non-blacklisted company. A would have chosen computers 
manufactured by E, except that E is blacklisted, and Y's import laws 
prohibit the importation of goods manufactured by blacklisted firms.
    A may refuse to purchase E's computers, because A is importing the 
computers for its own use in its manufacturing operations in Y.
    (ii) A, a subsidiary of U.S. company B, is a bona fide resident of 
boycotting country Y. To meet the needs of its employees in Y, A imports 
certain specifically identifiable commissary items for sale, such as 
cosmetics; and canteen items, such as candy. In selecting such items for 
importation into Y, A chooses items made only by non-blacklisted firms, 
because Y's import laws prohibit importation of goods from blacklisted 
firms.
    A may import these items only from non-blacklisted firms, because 
the importation of goods for consumption by A's employees is an 
importation for A's own use.
    (iii) A, a U.S. construction company which is a bona fide resident 
of boycotting country Y, has a contract to build a hospital complex for 
the Ministry of Health in Y. Under the contract, A will be general 
manager of the project with discretion to choose all subcontractors and 
suppliers. The complex is to be built on a turnkey basis, with A 
retaining title to the property and bearing all financial risk until the 
complex is conveyed to Y. In choosing specifically identifiable goods 
for import, such as central air conditioning units and plate glass, A 
excludes blacklisted suppliers in order to comply with Y's import laws. 
These goods are customarily incorporated into, or permanently affixed as 
a functional part of, the project.
    A may refuse to deal with blacklisted suppliers of specifically 
identifiable goods, because importation of goods by a general contractor 
to be incorporated into a construction project in Y is an importation of 
goods for A's own use.
    (iv) Same as (iii), except that, in addition, in choosing U.S. 
architects and engineers to work on the project, A excludes blacklisted 
firms, because Y's import laws prohibit the use of services rendered by 
blacklisted persons.

[[Page 388]]

    A may not refuse to deal with blacklisted architectural or 
engineering firms, because this exception does not apply to the import 
of services. It is irrelevant that, at some stage, the architectural or 
engineering drawings or plans may be brought to the site in Y. This 
factor is insufficient to transform such services into ``goods'' for 
purposes of this exception.
    (v) Same as (iii), except that the project is to be completed on a 
``cost plus'' basis, with Y making progress payments to A at various 
stages of completion.
    A may refuse to deal with blacklisted suppliers of specifically 
identifiable goods, because the importation of goods by A to be 
incorporated in a project A is under contract to complete is an 
importation of goods for its own use. The terms of payment are 
irrelevant.
    (vi) A, a U.S. construction company which is a bona fide resident of 
boycotting country Y, has a contract for the construction of an office 
building in Y on a turnkey basis. In choosing goods to be used or 
included in the office complex, A orders wallboard, office partitions, 
and lighting fixtures from non-blacklisted manufacturers. A likewise 
orders desks, office chairs, typewriters, and office supplies from non-
blacklisted manufacturers.
    Because they are customarily incorporated into or permanently 
affixed as a functional part of an office building, the wallboard, 
office partitions, and lighting fixtures are for A's own use, and A may 
select non-blacklisted suppliers of these goods in order to comply with 
Y's import laws. Because they are not customarily incorporated into or 
permanently affixed to the project, the desks, office chairs, 
typewriters, and office supplies are not for A's own use, and A may not 
make boycott-based selections of the suppliers of these goods.
    (vii) A, a U.S. company engaged in the business of selling 
automobiles, is a bona fide resident of boycotting country Y. In 
ordering automobiles from time to time for purposes of stocking its 
inventory, A purchases from U.S. manufacturer B, but not U.S. 
manufacturer C, because C is blacklisted. Retail sales are subsequently 
made from this inventory.
    A's import of automobiles from B is not an import for A's own use, 
because the importation of items for general inventory in a retail sales 
operation is not an importation for one's own use.
    (viii) A, a U.S. company engaged in the manufacture of 
pharmaceutical products, is a bona fide resident of boycotting country 
Y. In importing chemicals for incorporation into the pharmaceutical 
products, A purchases from U.S. supplier B, but not U.S. supplier C, 
because C is blacklisted.
    A may import chemicals from B rather than C, because the importation 
of specifically identifiable items for incorporation into another 
product is an importation for one's own use.
    (ix) A, a U.S. management company which is a bona fide resident of 
boycotting country Y, has a contract with the Ministry of Education in Y 
to purchase supplies for Y's school system. From time to time, A 
purchases goods from abroad for delivery to various schools in Y.
    A's purchase of goods for Y's school system does not constitute an 
importation of goods for A's own use, because A is acting as a 
procurement agent for another. A, therefore, cannot make boycott-based 
selections of suppliers of such school supplies.
    (x) A, a U.S. company which is a bona fide resident of boycotting 
country Y, has a contract to make purchases for Y in connection with a 
construction project in Y. A is not engaged in the construction of, or 
in any other activity in connection with, the project. A's role is 
merely to purchase goods for Y and arrange for their delivery to Y.
    A is not purchasing goods for its own use, because A is acting as a 
procurement agent for Y. A, therefore, cannot make boycott selections of 
suppliers of such goods.
    (xi) A, a U.S. company which is a bona fide resident of boycotting 
country Y, imports specifically identifiable goods into Y for exhibit by 
A at a trade fair in Y. In selecting goods for exhibit, A excludes items 
made by blacklisted firms.
    A's import of goods for its exhibit at a trade fair constitutes an 
import for A's own use. However, A may not sell in Y those goods it 
imported for exhibit.

                    For Use Within Boycotting Country

    A is a bona fide resident of boycotting countries Y and Z. In 
compliance with Y's boycott laws, A chooses specifically identifiable 
goods for its oil drilling operations in Y and Z by excluding 
blacklisted suppliers. The goods are first imported into Y. Those 
purchased for A's use in Z are then transshipped to Z.
    In selecting those goods for importation into Y, A is making an 
import selection for its own use, even though A may use some of the 
imported goods in Z. Further, the subsequent shipment from Y to Z of 
those goods purchased for use in Z is an import into Z for A's own use.



Sec. 760.4  Evasion.

    (a) No United States person may engage in any transaction or take 
any other action, either independently or through any other person, with 
intent to evade the provisions of this part. Nor may any United States 
person assist another United States person to

[[Page 389]]

violate or evade the provisions of this part.
    (b) The exceptions set forth in Sec. 760.3(a) through (g) of this 
part do not permit activities or agreements (express or implied by a 
course of conduct, including a pattern of responses) which are otherwise 
prohibited by this part and which are not within the intent of such 
exceptions. However, activities within the coverage and intent of the 
exceptions set forth in this part do not constitute evasion regardless 
of how often such exceptions are utilized.
    (c) Use of any artifice, device or scheme which is intended to place 
a person at a commercial disadvantage or impose on him special burdens 
because he is blacklisted or otherwise restricted for boycott reasons 
from having a business relationship with or in a boycotting country will 
be regarded as evasion for purposes of this part.
    (d) Unless permitted under one of the exceptions, use of risk of 
loss provisions that expressly impose a financial risk on another 
because of the import laws of a boycotting country may constitute 
evasion. If they are introduced after January 21, 1978, their use will 
be presumed to constitute evasion. This presumption may be rebutted by a 
showing that such a provision is in customary usage without distinction 
between boycotting and non-boycotting countries and that there is a 
legitimate non-boycott reason for its use. On the other hand, use of 
such a provision by a United States person subsequent to January 21, 
1978 is presumed not to constitute evasion if the provision had been 
customarily used by that person prior to January 21, 1978.
    (e) Use of dummy corporations or other devices to mask prohibited 
activity will also be regarded as evasion. Similarly, it is evasion 
under this part to divert specific boycotting country orders from a 
United States parent to a foreign subsidiary for purposes of complying 
with prohibited boycott requirements. However, alteration of a person's 
structure or method of doing business will not constitute evasion so 
long as the alteration is based on legitimate business considerations 
and is not undertaken solely to avoid the application of the 
prohibitions of this part. The facts and circumstances of an arrangement 
or transaction will be carefully scrutinized to see whether appearances 
conform to reality.

                                Examples

    The following examples are intended to give guidance to persons in 
determining circumstances in which this section will apply. They are 
illustrative, not comprehensive.
    (i) A, a U.S. insurance company, receives a request from boycotting 
country Y asking whether it does business in boycotted country X. 
Because furnishing such information is prohibited, A declines to answer 
and as a result is placed on Y's blacklist. The following year, A's 
annual report contains new information about A's worldwide operations, 
including a list of all countries in which A does business. A then mails 
a copy of its annual report, which has never before contained such 
information, to officials of the government of country Y.
    Absent some business justification unrelated to the boycott for 
changing the annual report in this fashion, A's action constitutes 
evasion of this part.
    (ii) A, a U.S. construction firm resident in boycotting country Y, 
orders lumber from U.S. company B. A unilaterally selects B in part 
because U.S. lumber producer C is blacklisted by Y and C's products are 
therefore not importable. In placing its order with B, A requests that B 
stamp its name or logo on the lumber so that A ``can be certain that it 
is, in fact, receiving B's products.'' B does not normally so stamp its 
lumber, and A's purpose in making the request is to appear to fit within 
the unilateral selection exception of this part.
    Absent additional facts justifying A's action, A's action 
constitutes evasion of this part.
    (iii) A, a U.S. company, has been selling sewing machines to 
boycotting country Y for a number of years and routinely supplying 
negative certificates of origin. A is aware that the furnishing of 
negative certificates of origin will be prohibited after June 21, 1978 
and, therefore, arranges to have all future shipments run through a 
foreign corporation in a third country which will affix the necessary 
certification before forwarding the machines on to Y.
    A's action constitutes evasion of this part, because it is a device 
to mask prohibited activity carried out on A's behalf.
    (iv) A, a U.S. company, has been selling hand calculators to 
boycotting country Y for a number of years and routinely supplies 
negative certificates of origin. A is aware that the furnishing of such 
negative certificates will be prohibited after June 21, 1978. A 
thereupon ceases all direct sales to Y, and instead arranges to make all 
future sales to distributor B in a third country. A knows B will step in 
and make the sales to Y which A

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would otherwise have made directly. B will make the necessary negative 
certifications. A's warranty, which it will continue to honor, runs to 
the purchaser in Y.
    A's action constitutes evasion, because the diverting of orders to B 
is a device to mask prohibited activity carried out on A's behalf.
    (v) A, a U.S. company, is negotiating a long-term contract with 
boycotting country Y to meet all Y's medical supply needs. Y informs A 
that before such a contract can be concluded, A must complete Y's 
boycott questionnaire. A knows that it is prohibited from answering the 
questionnaire so it arranges for a local agent in Y to supply the 
necessary information.
    A's action constitutes evasion of this part, because it is a device 
to mask prohibited activity carried out on A's behalf.
    (vi) A, a U.S. contractor which has not previously dealt with 
boycotting country Y, is awarded a construction contract by Y. Because 
it is customary in the construction industry for a contractor to 
establish an on-site facility for the duration of the project, A 
establishes such an office, which satisfies the requirements for bona 
fide residency. Thereafter, A's office in Y takes a number of actions 
permitted under the compliance with local law exception.
    A's actions do not constitute evasion, because A's facility in Y was 
established for legitimate business reasons.
    (vii) A, a controlled foreign subsidiary of U.S. company B, is 
located in non-boycotting country M. A and B both make machine tools for 
sale in their respective marketing regions. B's marketing region 
includes boycotting country Y. After assessing the requirements of this 
part, B decides that it can no longer make machines for sale in Y. 
Instead, A decides to expand its facilities in M in order to service the 
Y market.
    The actions of A and B do not constitute evasion, because there is a 
legitimate business reason for their actions. It is irrelevant that the 
effect may be to place sales which would otherwise have been subject to 
this part beyond the reach of this part.
    (viii) A, a U.S. manufacturer, from time to time receives purchase 
orders from boycotting country Y which A fills from its plant in the 
United States. A knows that it is about to receive an order from Y which 
contains a request for a certification which A is prohibited from 
furnishing under this part. In order to permit the certification to be 
made, A diverts the purchase order to its foreign subsidiary.
    A's diversion of the purchase order constitutes evasion of this 
part, because it is a device to mask prohibited activity carried out on 
A's behalf.
    (ix) A, a U.S. company, is engaged in assembling drilling rigs for 
shipment to boycotting country Y. Because of potential difficulties in 
securing entry into Y of materials supplied by blacklisted firms, A 
insists that blacklisted firms take a 15 percent discount on all 
materials which they supply to A. As a result, no blacklisted firms are 
willing to transact with A.
    A's insistence on the discount for materials supplied by blacklisted 
firms constitutes evasion of this part, because it is a device or scheme 
which is intended to place a special burden on blacklisted firms because 
of Y's boycott.
    (x) Same as (ix), except that shortly after the effective date of 
this part, A insists that its suppliers sign contracts which provide 
that even after title passes from the supplier to A, the supplier will 
bear the risk of loss and indemnify A if goods which the supplier has 
furnished are denied entry into Y for boycott reasons.
    A's action constitutes evasion of this part, because it is a device 
or scheme which is intended to place a special burden on blacklisted 
persons because of Y's boycott.
    (xi) Same as (x), except that A customarily insisted on such an 
arrangement with its supplier prior to the effective date of this part.
    A's action is presumed not to constitute evasion, because use of 
this contractual arrangement was customary for A prior to the effective 
date of this part.
    (xii) A, a U.S. company, has a contract to supply automobile sub-
assembly units to boycotting country Y. Shortly after the effective date 
of this part, A insists that its suppliers sign contracts which provide 
that even after title passes to A, the supplier will bear the risk of 
loss and indemnify A if goods which the supplier has furnished are 
denied entry into boycotting country Y for whatever reason.
    A's insistence on this arrangement is presumed to constitute 
evasion, because it is a device which is intended to place a special 
burden on blacklisted firms because of Y's boycott. The presumption may 
be rebutted by competent evidence showing that use of such an 
arrangement is customary without regard to the boycotting or non-
boycotting character of the country to which it relates and that there 
is a legitimate non-boycott business reason for its use.
    (xiii) Same as (vii), except that A requires that all suppliers make 
in-country delivery.
    A's action does not constitute evasion, because it is an ordinary 
commercial practice to require in-country delivery of goods.
    (xiv) Same as (xii), except that A requires that title remain with 
the supplier until delivery in Y has been made.
    A's action does not constitute evasion, because it is ordinary 
commercial practice to require that title remain with the supplier until 
delivery has been made. This example is distinguishable from example 
(xii), because in example (xii) A had insisted on an

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extraordinary arrangement designed to require that the risk of loss 
remain with the supplier even after title had passed to A.
    (xv) U.S. bank A is contacted by U.S. company B to finance B's 
transaction with boycotting country Y. Payment will be effected through 
a letter of credit in favor of B at its U.S. address. A knows that the 
letter of credit will contain restrictive boycott conditions which would 
bar its implementation by A if the beneficiary were a U.S. person. A 
suggests to B that the beneficiary should be changed to C, a shell 
corporation in non-boycotting country M. The beneficiary is changed 
accordingly.
    A's action constitutes evasion of this part, because the arrangement 
is a device to mask prohibited activity on A's part.
    (xvi) Same as (xv), except that U.S. company B, the beneficiary of 
the letter of credit, arranges to change the beneficiary to B's foreign 
subsidiary so that A can implement the letter of credit. A knows that 
this has been done.
    A's implementation of the letter of credit in the face of its 
knowledge of B's action constitutes evasion of this part, because its 
action is part of a device to mask prohibited activity on A's part.
    (xvii) U.S. bank A, located in the United States, is contacted by 
foreign company B to finance B's transaction with boycotting country Y. 
B is a controlled subsidiary of a U.S. company. The transaction which is 
to be financed with a letter of credit payable to B at its foreign 
address, requires B to certify that none of its board members are of a 
particular religious faith. Since B cannot legally furnish the 
certificate, it asks A to convey the necessary information to Y through 
A's bank branch in Y. Such information would be furnished wholly outside 
the letter of credit transaction.
    A's action constitutes evasion of this part, because it is 
undertaken to assist B's violation of this part.
    (xviii) U.S. bank A is asked by foreign corporation B to implement a 
letter of credit in favor of B so that B might perform under its long-
term contract with boycotting country Y. Under the terms of the letter 
of credit, B is required to certify that none of its suppliers is 
blacklisted. A knows that it cannot implement a letter of credit with 
this condition, so it tells B to negotiate the elimination of this 
requirement from the letter of credit and instead supply the 
certification to Y directly.
    A's suggestion to B that it provide the negative certification to Y 
directly constitutes evasion of this part, because A is taking an action 
through another person to mask prohibited activity on A's part.



Sec. 760.5  Reporting requirements.

    (a) Scope of reporting requirements. (1) A United States person who 
receives a request to take any action which has the effect of furthering 
or supporting a restrictive trade practice or boycott fostered or 
imposed by a foreign country against a country friendly to the United 
States or against any United States person must report such request to 
the Department of Commerce in accordance with the requirements of this 
section. Such a request may be either written or oral and may include a 
request to furnish information or enter into or implement an agreement. 
It may also include a solicitation, directive, legend or instruction 
that asks for information or that asks that a United States person take 
or refrain from taking a particular action. Such a request shall be 
reported regardless of whether the action requested is prohibited or 
permissible under this part, except as otherwise provided by this 
section.
    (2) For purposes of this section, a request received by a United 
States person is reportable if he knows or has reason to know that the 
purpose of the request is to enforce, implement, or otherwise further, 
support, or secure compliance with an unsanctioned foreign boycott or 
restrictive trade practice.
    (i) A request received by a United States person located in the 
United States is reportable if it is received in connection with a 
transaction or activity in the interstate or foreign commerce of the 
United States, as determined under Sec. 760.1(d)(1) through (5) and (18) 
of this part.
    (ii) A request received by a United States person located outside 
the United States (that is, a foreign subsidiary, partnership, 
affiliate, branch, office, or other permanent foreign establishment 
which is controlled in fact by any domestic concern, as determined under 
Sec. 760.1(c) of this part) is reportable if it is received in 
connection with a transaction or activity in the interstate or foreign 
commerce of the United States, as determined under Sec. 760.1(d)(6) 
through (17) and (19) of this part.
    (iii) A request such as a boycott questionnaire, unrelated to a 
particular transaction or activity, received by

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any United States person is reportable when such person has or 
anticipates a business relationship with or in a boycotting country 
involving the sale, purchase or transfer of goods or services (including 
information) in the interstate or foreign commerce of the United States, 
as determined under Sec. 760.1(d) of this part.
    (3) These reporting requirements apply to all United States persons. 
They apply whether the United States person receiving the request is an 
exporter, bank or other financial institution, insurer, freight 
forwarder, manufacturer, or any other United States person subject to 
this part.
    (4) The acquisition of information about a boycotting country's 
boycott requirements through the receipt or review of books, pamphlets, 
legal texts, exporters' guidebooks and other similar publications does 
not constitute receipt of a reportable request for purposes of this 
section. In addition, a United States person who receives an unsolicited 
invitation to bid, or similar proposal, containing a boycott request has 
not received a reportable request for purposes of this section where he 
does not respond to the invitation to bid or other proposal.
    (5) Because of the use of certain terms for boycott and non-boycott 
purposes; because of Congressional mandates to provide clear and precise 
guidelines in areas of inherent uncertainty; and because of the 
Department's commitment to minimize paperwork and reduce the cost of 
reporting where it will not impair the Department's ability to continue 
to monitor foreign boycotts, the following specific requests are not 
reportable:
    (i) A request to refrain from shipping goods on a carrier which 
flies the flag of a particular country or which is owned, chartered, 
leased or operated by a particular country or by nationals or residents 
of a particular country, or a request to certify to that effect.
    (ii) A request to ship goods via a prescribed route, or a request to 
refrain from shipping goods via a proscribed route, or a request to 
certify to either effect.
    (iii) A request to supply an affirmative statement or certification 
regarding the country of origin of goods.
    (iv) A request to supply an affirmative statement or certification 
regarding the name of the supplier or manufacturer of the goods shipped 
or the name of the provider of services.
    (v) A request to comply with the laws of another country except 
where the request expressly requires compliance with that country's 
boycott laws.
    (vi) A request to an individual to supply information about himself 
or a member of his family for immigration, passport, visa, or employment 
purposes.
    (vii) A request to supply an affirmative statement or certification 
indicating the destination of exports or confirming or otherwise 
indicating that such cargo will be unloaded or discharged at a 
particular destination.
    (viii) A request to supply a certificate by the owner, master, 
charterer, or any employee thereof, that a vessel, aircraft, truck or 
any other mode of transportation is eligible, otherwise eligible, 
permitted, or allowed to enter, or not restricted from entering, a 
particular port, country, or group of countries pursuant to the laws, 
rules, or regulations of that port, country, or group of countries.
    (ix) A request to supply a certificate from an insurance company 
stating that the insurance company has a duly authorized agent or 
representative within a boycotting country and/or the name and address 
of such agent.
    (x) A request to comply with a term or condition of a transaction 
that provides that the vendor bear the risk of loss and indemnify the 
purchaser if the vendor's goods are denied entry into a country for any 
reason (``risk of loss clause'') if such clause was in use by the 
purchaser prior to January 18, 1978.
    (6) No United States person may engage in any transaction or take 
any other action, either independently or through any other person, with 
intent to evade the provisions of this part.
    (7) From time to time the Department will survey domestic concerns 
for purposes of determining the worldwide scope of boycott requests 
received by their controlled foreign subsidiaries and affiliates with 
respect to their activities outside United States commerce. This 
pertains to requests which would be reportable under this section

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but for the fact that the activities to which the requests relate are 
outside United States commerce. The information requested will include 
the number and nature of non-reportable boycott requests received, the 
action(s) requested, the actions(s) taken in response and the countries 
in which the requests originate. The results of such surveys, including 
the names of those surveyed, will be made public.
    (b) Manner of reporting. (1) Each reportable request must be 
reported. However, if more than one document (such as an invitation to 
bid, purchase order, or letter of credit) containing the same boycott 
request is received as part of the same transaction, only the first such 
request need be reported. Individual shipments against the same purchase 
order or letter of credit are to be treated as part of the same 
transaction. Each different boycott request associated with a given 
transaction must be reported, regardless of how or when the request is 
received.
    (2) Each United States person actually receiving a reportable 
request must report that request. However, such person may designate 
someone else to report on his behalf. For example, a United States 
company, if authorized, may report on behalf of its controlled foreign 
subsidiary or affiliates; a freight forwarder, if authorized, may report 
on behalf of the exporter; and a bank, if authorized, may report on 
behalf of the beneficiary of a letter of credit. If a person designated 
to report a request received by another receives an identical request 
directed to him in connection with the same transaction, he may file one 
report on behalf of himself and the other person.
    (3) Where a person is designated to report on behalf of another, the 
person receiving the request remains liable for any failure to report or 
for any representations made on his behalf. Further, anyone reporting on 
behalf of another is not relieved of his own responsibility for 
reporting any boycott request which he receives, even if it is an 
identical request in connection with the same transaction.
    (4) Reports must be submitted in duplicate to: Report Processing 
Staff, Office of Antiboycott Compliance, U.S. Department of Commerce, 
Room 6099C, Washington, D.C. 20230. Each submission must be made in 
accordance with the following requirements:
    (i) Where the person receiving the request is a United States person 
located in the United States, each report of requests received through 
June 30, 1979, must be postmarked by the last day of the month following 
the month in which the request was received. Thereafter, each submission 
must be postmarked by the last day of the month following the calendar 
quarter in which the request was received (e.g., April 30 for the 
quarter consisting of January, February, and March).
    (ii) Where the person receiving the request is a United States 
person located outside the United States, each report of requests 
received through June 30, 1979, must be postmarked by the last day of 
the second month following the month in which the request was received. 
Thereafter, each submission must be postmarked by the last day of the 
second month following the calendar quarter in which the request was 
received (e.g., May 31 for the quarter consisting of January, February, 
and March).
    (5) At the reporting person's option, reports may be submitted on 
either a single transaction form (Form BXA-621P, Report of Restrictive 
Trade Practice or Boycott Request Single Transaction (revised 10-89)) or 
on a multiple transaction form (Form BXA-6051P, Report of Request for 
Restrictive Trade Practice or Boycott Multiple Transactions (revised 10-
89)). Use of the multiple transaction form permits the reporting person 
to provide on one form all required information relating to as many as 
75 reportable requests received within any single reporting period.
    (6) Reports, whether submitted on the single transaction form or on 
the multiple transaction form, must contain entries for every applicable 
item on the form, including whether the reporting person intends to take 
or has taken the action requested. If the reporting person has not 
decided what action he will take by the time the report is required to 
be filed, he must later report the action he decides to

[[Page 394]]

take within 10 business days after deciding. In addition, anyone filing 
a report on behalf of another must so indicate and identify that other 
person.
    (7) Each report of a boycott request must be accompanied by two 
copies of the relevant page(s) of any document(s) in which the request 
appears. Reports may also be accompanied by any additional information 
relating to the request as the reporting person desires to provide 
concerning his response to the request.
    (8) Records containing information relating to a reportable boycott 
request, including a copy of any document(s) in which the request 
appears, must be maintained by the recipient for a five-year period 
after receipt of the request. The Department may require that these 
materials be submitted to it or that it have access to them at any time 
within that period. (See part 762 of the EAR for additional 
recordkeeping requirements.)
    (c) Disclosure of information. (1) Reports of requests received on 
or after October 7, 1976, as well as any accompanying documents filed 
with the reports, have been and will continue to be made available for 
public inspection and copying, except for certain proprietary 
information. With respect to reports of requests received on or after 
August 1, 1978, if the person making the report certifies that a United 
States person to whom the report relates would be placed at a 
competitive disadvantage because of the disclosure of information 
regarding the quantity, description, or value of any articles, 
materials, and supplies, including related technical data and other 
information, whether contained in a report or in any accompanying 
document(s), such information will not be publicly disclosed except upon 
failure by the reporting entity to edit the public inspection copy of 
the accompanying document(s) as provided by paragraph (c)(2) of this 
section, unless the Secretary of Commerce determines that the disclosure 
would not place the United States person involved at a competitive 
disadvantage or that it would be contrary to the national interest to 
withhold the information. In the event the Secretary of Commerce 
considers making such a determination concerning competitive 
disadvantage, appropriate notice and an opportunity for comment will be 
given before any such proprietary information is publicly disclosed. In 
no event will requests of reporting persons to withhold any information 
contained in the report other than that specified in this paragraph be 
honored.
    (2) Because a copy of any document(s) accompanying the report will 
be made available for public inspection and copying, one copy must be 
submitted intact and another copy must be edited by the reporting entity 
to delete the same information which it certified in the report would 
place a United States person at a competitive disadvantage if disclosed. 
In addition, the reporting entity may delete from this copy information 
that is considered confidential and that is not required to be contained 
in the report (e.g., information related to foreign consignee). This 
copy should be conspicuously marked with the legend ``Public Inspection 
Copy.'' With respect to documents accompanying reports received by the 
Department on or after July 1, 1979, the public inspection copy will be 
made available as submitted whether or not it has been appropriately 
edited by the reporting entity as provided by this paragraph.
    (3) Reports and accompanying documents which are available to the 
public for inspection and copying are located in the BXA Freedom of 
Information Records Inspection Facility, Room 4525, Department of 
Commerce, 14th Street and Constitution Avenue, N.W., Washington, D.C. 
20230. Requests to inspect such documents should be addressed to that 
facility.
    (4) The Secretary of Commerce will periodically transmit summaries 
of the information contained in the reports to the Secretary of State 
for such action as the Secretary of State, in consultation with the 
Secretary of Commerce, may deem appropriate for carrying out the 
policies in section 8(b)(2) of the Export Administration Act of 1979.

                                Examples

    The following examples are intended to give guidance in determining 
what is reportable. They are illustrative, not comprehensive.

[[Page 395]]

    (i) A, a U.S. manufacturer, is shipping goods to boycotting country 
Y and is asked by Y to certify that it is not blacklisted by Y's boycott 
office.
    The request to A is reportable, because it is a request to A to 
comply with Y's boycott requirements.
    (ii) A, a U.S. manufacturing company, receives an order for tractors 
from boycotting country Y. Y's order specifies that the tires on the 
tractors be made by B, another U.S. company. A believes Y has specified 
B as the tire supplier because otherwise A would have used tires made by 
C, a blacklisted company, and Y will not take shipment of tractors 
containing tires made by blacklisted companies.
    A must report Y's request for tires made by B, because A has reason 
to know that B was chosen for boycott reasons.
    (iii) Same as (ii), except A knows that Y's request has nothing to 
do with the boycott but simply reflects Y's preference for tires made by 
B.
    Y's request is not reportable, because it is unrelated to Y's 
boycott.
    (iv) Same as (ii), except A neither knows nor has reason to know why 
Y has chosen B.
    Y's request is not reportable, because A neither knows nor has 
reason to know that Y's request is based on Y's boycott.
    (v) A, a controlled foreign subsidiary of U.S. company B, is a 
resident of boycotting country Y. A is a general contractor. After being 
supplied by A with a list of competent subcontractors, A's customer 
instructs A to use subcontractor C on the project. A believes that C was 
chosen because, among other things, the other listed subcontractors are 
blacklisted.
    The instruction to A by its customer that C be used on the project 
is reportable, because it is a request to comply with Y's boycott 
requirements.
    (vi) A, a controlled foreign subsidiary of U.S. company B, is 
located in non-boycotting country P. A receives an order for washing 
machines from boycotting country Y. Y instructs A that a negative 
certificate of origin must accompany the shipment. The washing machines 
are made wholly in P, without U.S. components.
    Y's instruction to A regarding the negative certificate of origin is 
not reportable, because the transaction to which it relates is not in 
U.S. commerce.
    (vii) Same as (vi), except that A obtains components from the United 
States for the purpose of filling the order from Y. Y's instruction to A 
regarding the negative certificate of origin is reportable, because the 
transaction to which it relates is in U.S. commerce.
    (viii) A, a U.S. construction company, receives in the mail an 
unsolicited invitation to bid on a construction project in boycotting 
country Y. The invitation to bid requires those who respond to certify 
that they do not have any plants or branch offices in boycotted country 
X. A does not respond.
    A's receipt of the unsolicited invitation to bid is not reportable, 
because the request does not relate to any present or anticipated 
business of A with or in Y.
    (ix) Same as (viii), except that A receives a boycott questionnaire 
from a central boycott office. A does not do business in any of the 
boycotting countries involved, and does not anticipate doing any 
business in those countries. A does not respond.
    A's receipt of the boycott questionnaire is not reportable, because 
it does not relate to any present or anticipated business by A with or 
in a boycotting country.
    (x) A, a U.S. manufacturer, is seeking markets in which to expand 
its exports. A sends a representative to boycotting country Y to explore 
Y's potential as a market for A's products. A's representative discusses 
its products but does not enter into any contracts on that trip. A does, 
however, hope that sales will materialize in the future. Subsequently, A 
receives a boycott questionnaire from Y.
    A's receipt of the boycott questionnaire is reportable, because the 
request relates to A's anticipated business with or in a boycotting 
country. For purposes of determining whether a report is required, it 
makes no difference whether A responds to the questionnaire, and it 
makes no difference that actual sales contracts are not in existence or 
do not materialize.
    (xi) Same as (x), except that A's representative enters into a 
contract to sell A's products to a buyer in boycotting country Y. 
Subsequently, A receives a boycott questionnaire from Y.
    A's receipt of the boycott questionnaire is reportable, because it 
relates to A's present business with or in a boycotting country. For 
purposes of determining whether a report is required, it makes no 
difference whether A responds to the questionnaire.
    (xii) A, a U.S. freight forwarder, purchases an exporter's guidebook 
which includes the import requirements of boycotting country Y. The 
guidebook contains descriptions of actions which U.S. exporters must 
take in order to make delivery of goods to Y.
    A's acquisition of the guidebook is not reportable, because he has 
not received a request from anyone.
    (xiii) A, a U.S. freight forwarder, is arranging for the shipment of 
goods to boycotting country Y at the request of B, a U.S. exporter. B 
asks A to assume responsibility to assure that the documentation 
accompanying the shipment is in compliance with Y's import requirements. 
A examines an exporters' guidebook, determines that Y's import 
regulations require a certification that the insurer of the goods is not 
blacklisted and asks U.S. insurer C for such a certification.

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    B's request to A is reportable by A, because it constitutes a 
request to comply with Y's boycott as of the time A takes action to 
comply with Y's boycott requirements in response to the request. A's 
request to C is reportable by C.
    (xiv) A, a U.S. freight forwarder, is arranging for the shipment of 
U.S. goods to boycotting country Y. The manufacturer supplies A with all 
the necessary documentation to accompany the shipment. Among the 
documents supplied by the manufacturer is his certificate that he 
himself is not blacklisted. A transmits the documentation supplied by 
the manufacturer.
    A's action in merely transmitting documents received from the 
manufacturer is not reportable, because A has received no request to 
comply with Y's boycott.
    (xv) Same as (xiv), except that A is asked by U.S. exporter B to 
assume the responsibility to assure that the necessary documentation 
accompanies the shipment whatever that documentation might be. B 
forwards to A a letter of credit which requires that a negative 
certificate of origin accompany the bill of lading. A supplies a 
positive certificate of origin.
    Both A and B must report receipt of the letter of credit, because it 
contains a request to both of them to comply with Y's boycott.
    (xvi) Same as (xiv), except that the manufacturer fails to supply a 
required negative certificate of origin, and A is subsequently asked by 
a consular official of Y to see to it that the certificate is supplied. 
A supplies a positive certificate of origin.
    The consular official's request to A is reportable by A, because A 
was asked to comply with Y's boycott requirements by supplying the 
negative certificate of origin.
    (xvii) A, a U.S. manufacturer, is shipping goods to boycotting 
country Y. Arrangements have been made for freight forwarder B to handle 
the shipment and secure all necessary shipping certifications. B notes 
that the letter of credit requires that the manufacturer supply a 
negative certificate of origin and B asks A to do so. A supplies a 
positive certificate of origin.
    B's request to A is reportable by A, because A is asked to comply 
with Y's boycott requirements by providing the negative certificate.
    (xviii) A, a controlled foreign subsidiary of U.S. company B, is a 
resident of boycotting country Y. A is engaged in oil exploration and 
drilling operations in Y. In placing orders for drilling equipment to be 
shipped from the United States, A, in compliance with Y's laws, selects 
only those suppliers who are not blacklisted.
    A's action in choosing non-blacklisted suppliers is not reportable, 
because A has not received a request to comply with Y's boycott in 
making these selections.
    (xix) A, a controlled foreign subsidiary of U.S. company B, is 
seeking permission to do business in boycotting country Y. Before being 
granted such permission, A is asked to sign an agreement to comply with 
Y's boycott laws.
    The request to A is reportable, because it is a request that 
expressly requires compliance with Y's boycott law and is received in 
connection with A's anticipated business in Y.
    (xx) A, a U.S. bank, is asked by a firm in boycotting country Y to 
confirm a letter of credit in favor of B, a U.S. company. The letter of 
credit calls for a certificate from B that the goods to be supplied are 
not produced by a firm blacklisted by Y. A informs B of the letter of 
credit, including its certification condition, and sends B a copy.
    B must report the certification request contained in the letter of 
credit, and A must report the request to confirm the letter of credit 
containing the boycott condition, because both are being asked to comply 
with Y's boycott.
    (xxi) Same as (xx), except that the letter of credit calls for a 
certificate from the beneficiary that the goods will not be shipped on a 
vessel that will call at a port in boycotted country X before making 
delivery in Y.
    The request is not reportable, because it is a request of a type 
deemed by this section to be in common use for non-boycott purposes.
    (xxii) A, a U.S. company, receives a letter of credit from 
boycotting country Y stating that on no condition may a bank blacklisted 
by Y be permitted to negotiate the credit.
    A's receipt of the letter of credit is reportable, because it 
contains a request to A to comply with Y's boycott requirements.
    (xxiii) A, a U.S. bank, receives a demand draft from B, a U.S. 
company, in connection with B's shipment of goods to boycotting country 
Y. The draft contains a directive that it is valid in all countries 
except boycotted country X.
    A's receipt of the demand draft is reportable, because it contains a 
request to A to comply with Y's boycott requirements.
    (xxiv) A, a U.S. exporter, receives an order from boycotting country 
Y. On the order is a legend that A's goods, invoices, and packaging must 
not bear a six-pointed star or other symbol of boycotted country X.
    A's receipt of the order is reportable, because it contains a 
request to comply with Y's boycott requirements.
    (xxv) Same as (xxiv), except the order contains a statement that 
goods exported must not represent part of war reparations to boycotted 
country X.
    A's receipt of the order is reportable, because it contains a 
request to A to comply with Y's boycott requirements.
    (xxvi) A, a U.S. contractor, is negotiating with boycotting country 
Y to build a school in Y. During the course of the negotiations,

[[Page 397]]

Y suggests that one of the terms of the construction contract be that A 
agree not to import materials produced in boycotted country X. It is A's 
company policy not to agree to such a contractual clause, and A suggests 
that instead it agree that all of the necessary materials will be 
obtained from U.S. suppliers. Y agrees to A's suggestion and a contract 
is executed.
    A has received a reportable request, but, for purposes of reporting, 
the request is deemed to be received when the contract is executed.
    (xxvii) Same as (xxvi), except Y does not accept A's suggested 
alternative clause and negotiations break off.
    A's receipt of Y's request is reportable. For purposes of reporting, 
it makes no difference that A was not successful in the negotiations. 
The request is deemed to be received at the time the negotiations break 
off.
    (xxviii) A, a U.S. insurance company, is insuring the shipment of 
drilling equipment to boycotting country Y. The transaction is being 
financed by a letter of credit which requires that A certify that it is 
not blacklisted by Y. Freight forwarder B asks A to supply the 
certification in order to satisfy the requirements of the letter of 
credit.
    The request to A is reportable by A, because it is a request to 
comply with Y's boycott requirements.
    (xxix) A, a U.S. manufacturer, is engaged from time-to-time in 
supplying drilling rigs to company B in boycotting country Y. B insists 
that its suppliers sign contracts which provide that, even after title 
passes from the supplier to B, the supplier will bear the risk of loss 
and indemnify B if goods which the supplier has furnished are denied 
entry into Y for whatever reason. A knows or has reason to know that 
this contractual provision is required by B because of Y's boycott, and 
that B has been using the provision since 1977. A receives an order from 
B which contains such a clause.
    B's request is not reportable by A, because the request is deemed to 
be not reportable by these regulations if the provision was in use by B 
prior to the effective date of the regulations, January 18, 1978.
    (xxx) Same as (xxix), except that A does not know when B began using 
the provision.
    Unless A receives information from B that B introduced the term 
prior to the effective date of the regulations, January 18, 1978, A must 
report receipt of the request.
    (xxxi) A, a U.S. citizen, is a shipping clerk for B, a U.S. 
manufacturing company. In the course of his employment, A receives an 
order for goods from boycotting country Y. The order specifies that none 
of the components of the goods is to be furnished by blacklisted firms.
    B must report the request received by its employee, A, acting in the 
scope of his employment. Although A is a U.S. person, such an individual 
does not have a separate obligation to report requests received by him 
in his capacity as an employee of B.
    (xxxii) U.S. exporter A is negotiating a transaction with boycotting 
country Y. A knows that at the conclusion of the negotiations he will be 
asked by Y to supply certain boycott-related information and that such a 
request is reportable. In an effort to forestall the request and thereby 
avoid having to file a report, A supplies the information in advance.
    A is deemed to have received a reportable request.
    (xxxiii) A, a controlled foreign affiliate of U.S. company B, 
receives an order for computers from boycotting country Y and obtains 
components from the United States for the purpose of filling the order. 
Y instructs A that a negative certificate of origin must accompany the 
shipment.
    Y's instruction to A regarding the negative certificate of origin is 
reportable by A. Moreover, A may designate B or any other person to 
report on its behalf. However, A remains liable for any failure to 
report or for any representations made on its behalf.
    (xxxiv) U.S. exporter A, in shipping goods to boycotting country Y, 
receives a request from the customer in Y to state on the bill of lading 
that the vessel is allowed to enter Y's ports. The request further 
states that a certificate from the owner or master of the vessel to that 
effect is acceptable.
    The request A received from his customer in Y is not reportable if 
it was received after January 21, 1978, because it is a request of a 
type deemed to be not reportable by these regulations. (A may not make 
such a statement on the bill of lading himself, if he knows or has 
reason to know it is requested for a boycott purpose.
    (xxxv) U.S. exporter A, in shipping goods to boycotting country Y, 
receives a request from the customer in Y to furnish a certificate from 
the owner of the vessel that the vessel is permitted to call at Y's 
ports.
    The request A received from his customer in Y is not reportable if 
it was received after the effective date of these rules, because it is a 
request of a type deemed to be not reportable by these regulations.
    (xxxvi) U.S. exporter A, in shipping goods to boycotting country Y, 
receives a request from the customer in Y to furnish a certificate from 
the insurance company indicating that the company has a duly authorized 
representative in country Y and giving the name of that representative.
    The request A received from his customer in Y is not reportable if 
it was received after the effective date of these rules, because it is a 
request of a type deemed to be not reportable by these regulations.

[[Page 398]]

              Supplement No. 1 to Part 760--Interpretations

    It has come to the Department's attention that some U.S. persons are 
being or may be asked to comply with new boycotting country requirements 
with respect to shipping and insurance certifications and certificates 
of origin. It has also come to the Department's attention that some U.S. 
persons are being or may be asked to agree to new contractual provisions 
in connection with certain foreign government or foreign government 
agency contracts. In order to maximize its guidance with respect to 
section 8 of the Export Administration Act of 1979, as amended (50 
U.S.C. app. 2407) and part 760 of the EAR, the Department hereby sets 
forth its views on these certifications and contractual 
clauses.1
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    \1\  The Department originally issued this interpretation pursuant 
to the Export Administration Amendments Act of 1979 (Public Law 95-52) 
and the regulations on restrictive trade practices and boycotts (15 CFR 
part 369) published on January 25, 1978 (43 FR 3508) and contained in 
the 15 CFR edition revised as of January 1, 1979.
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                            I. Certifications

    Sec. 760.2(d) of this part prohibits a U.S. person from furnishing 
or knowingly agreeing to furnish:
    ``Information concerning his or any other person's past, present or 
proposed business relationships:
    (i) With or in a boycotted country;
    (ii) With any business concern organized under the laws of a 
boycotted country;
    (iii) With any national or resident of a boycotted country; or
    (iv) With any other person who is known or believed to be restricted 
from having any business relationship with or in a boycotting country.''
    This prohibition, like all others under part 760, applies only with 
respect to a U.S. person's activities in the interstate or foreign 
commerce of the United States and only when such activities are 
undertaken with intent to comply with, further, or support an 
unsanctioned foreign boycott. (Sec. 760.2(d)(5) of this part.)
    This prohibition does not apply to the furnishing of normal business 
information in a commercial context. ( Sec. 760.2(d)(3) of this part). 
Normal business information furnished in a commercial context does not 
cease to be such simply because the party soliciting the information may 
be a boycotting country or a national or resident thereof. If the 
information is of a type which is generally sought for a legitimate 
business purpose (such as determining financial fitness, technical 
competence, or professional experience), the information may be 
furnished even if the information could be used, or without the 
knowledge of the person supplying the information is intended to be 
used, for boycott purposes. (Sec. 760.2(d)(4) of this part).
    The new certification requirements and the Department's 
interpretation of the applicability of part 760 thereto are as follows:
    A. Certificate of origin. A certificate of origin is to be issued by 
the supplier or exporting company and authenticated by the exporting 
country, attesting that the goods exported to the boycotting country are 
of purely indigenous origin, and stating the name of the factory or the 
manufacturing company. To the extent that the goods as described on the 
certificate of origin are not solely and exclusively products of their 
country of origin indicated thereon, a declaration must be appended to 
the certificate of origin giving the name of the supplier/manufacturer 
and declaring:
    ``The undersigned, ____________, does hereby declare on behalf of 
the above-named supplier/manufacturer, that certain parts or components 
of the goods described in the attached certificate of origin are the 
products of such country or countries, other than the country named 
therein as specifically indicated hereunder:

    Country of Origin and Percentage of Value of Parts or Components 
                       Relative to Total Shipment

1.______________________________________________________________________
2.______________________________________________________________________
3.______________________________________________________________________
Dated:__________________________________________________________________
Signature_______________________________________________________________
    Sworn to before me, this ________ day of ____________, 19 ____. 
Notary Seal.''

                             Interpretation

    It is the Department's position that furnishing a positive 
certificate of origin, such as the one set out above, falls within the 
exception contained in Sec. 760.3(c) of this part for compliance with 
the import and shipping document requirements of a boycotting country. 
See Sec. 760.3(c) of this part and examples (i) and (ii) thereunder.
    B. Shipping certificate. A certificate must be appended to the bill 
of lading stating: (1) Name of vessel; (2) Nationality of vessel; and 
(3) Owner of vessel, and declaring:
    ``The undersigned does hereby declare on behalf of the owner, 
master, or agent of the above-named vessel that said vessel is not 
registered in the boycotted country or owned by nationals or residents 
of the boycotted country and will not call at or pass through any 
boycotted country port enroute to its boycotting country destination.
    ``The undersigned further declares that said vessel is otherwise 
eligible to enter into the ports of the boycotting country in conformity 
with its laws and regulations.

[[Page 399]]

    Sworn to before me, this ________ day of __________, 19 ____. Notary 
Seal.''

                             Interpretation

    It is the Department's position that furnishing a certificate, such 
as the one set out above, stating: (1) The name of the vessel, (2) The 
nationality of the vessel, and (3) The owner of the vessel and further 
declaring that the vessel: (a) Is not registered in a boycotted country, 
(b) Is not owned by nationals or residents of a boycotted country, and 
(c) Will not call at or pass through a boycotted country port enroute to 
its destination in a boycotting country falls within the exception 
contained in Sec. 760.3(b) of this part for compliance with the import 
and shipping document requirements of a boycotting country. See 
Sec. 760.3(b) of this part and examples (vii), (viii), and (ix) 
thereunder.
    It is also the Department's position that the owner, charterer, or 
master of a vessel may certify that the vessel is ``eligible'' or 
``otherwise eligible'' to enter into the ports of a boycotting country 
in conformity with its laws and regulations. Furnishing such a statement 
pertaining to one's own eligibility offends no prohibition under part 
760. See Sec. 760.2(f) of this part, example (xiv).
    On the other hand, where a boycott is in force, a declaration that a 
vessel is ``eligible'' or ``otherwise eligible'' to enter the ports of 
the boycotting country necessarily conveys the information that the 
vessel is not blacklisted or otherwise restricted from having a business 
relationship with the boycotting country. See Sec. 760.3(b) of this 
part, examples (vi), (xi), and (xii). Where a person other than the 
vessel's owner, charterer, or master furnishes such a statement, that is 
tantamount to his furnishing a statement that he is not doing business 
with a blacklisted person or is doing business only with nonblacklisted 
persons. Therefore, it is the Department's position that furnishing such 
a certification (which does not reflect customary international 
commercial practice) by anyone other than the owner, charterer, or 
master of a vessel would fall within the prohibition set forth in 
Sec. 760.2(d) of this part unless it is clear from all the facts and 
circumstances that the certification is not required for a boycott 
reason. See Sec. 760.2(d)(3) and (4) of this part. However, in 
accordance with the exception contained in Sec. 760.3(c) of this part 
for compliance with the import and shipping document requirements of a 
boycotting country, such a United States person may furnish such a 
certification until June 21, 1978.
    C. Insurance certificate. A certificate must be appended to the 
insurance policy stating: (1) Name of insurance company; (2) Address of 
its principal office; and (3) Country of its incorporation, and 
declaring:
    ``The undersigned, ________________, does hereby certify on behalf 
of the above-named insurance company that the said company has a duly 
qualified and appointed agent or representative in the boycotting 
country whose name and address appear below:
    Name of agent/representative and address in the boycotting country.
    Sworn to before me this ________ day of ____________, 19____. Notary 
Seal.''

                             Interpretation

    It is the Department's position that furnishing the name of the 
insurance company falls within the exception contained in Sec. 760.3(c) 
of this part for compliance with the import and shipping document 
requirements of a boycotting country. See Sec. 760.3(c)(1)(v) of this 
part and examples (v) and (x) thereunder. In addition, it is the 
Department's position that furnishing a certificate, such as the one set 
out above, stating the address of the insurance company's principal 
office and its country of incorporation offends no prohibition under 
part 760 unless the U.S. person furnishing the certificate knows or has 
reason to know that the information is sought for the purpose of 
determining that the insurance company is neither headquartered nor 
incorporated in a boycotted country. See Sec. 760.2(d)(1)(i) of this 
part.
    It is also the Department's position that the insurer, himself, may 
certify that he has a duly qualified and appointed agent or 
representative in the boycotting country and may furnish the name and 
address of his agent or representative. Furnishing such a statement 
pertaining to one's own status offends no prohibition under part 760. 
See Sec. 760.2(f) of this part, example (xiv).
    On the other hand, where a boycott is in force, a declaration that 
an insurer ``has a duly qualified and appointed agent or 
representative'' in the boycotting country necessarily conveys the 
information that the insurer is not blacklisted or otherwise restricted 
from having a business relationship with the boycotting country. See 
Sec. 760.3(c) of this part, example (v). Therefore, it is the 
Department's position that furnishing such a certification by anyone 
other than the insurer would fall within the prohibition set forth in 
Sec. 760.2(d) of this part unless it is clear from all the facts and 
circumstances that the certification is not required for a boycott 
reason. See Sec. 760.2(d) (3) and (4) of this part. However, in 
accordance with the exception contained in Sec. 760.3(c) of this part 
for compliance with the import and shipping document requirements of a 
boycotting country, such a U.S. person may furnish such a certification 
until June 21, 1978.

                         II. Contractual Clauses

    The new contractual requirements and the Department's interpretation 
of the applicability of part 760 thereto are as follows:

[[Page 400]]

    A. Contractual clause regarding import laws of boycotting country. 
``In connection with the performance of this contract the Contractor/
Supplier acknowledges that the import and customs laws and regulations 
of the boycotting country shall apply to the furnishing and shipment of 
any products or components thereof to the boycotting country. The 
Contractor/Supplier specifically acknowledges that the aforementioned 
import and customs laws and regulations of the boycotting country 
prohibit, among other things, the importation into the boycotting 
country of products or components thereof: (1) Originating in the 
boycotted country; (2) Manufactured, produced, or furnished by companies 
organized under the laws of the boycotted country; and (3) Manufactured, 
produced, or furnished by nationals or residents of the boycotted 
country.''

                             Interpretation

    It is the Department's position that an agreement, such as the one 
set out in the first sentence above, that the import and customs 
requirements of a boycotting country shall apply to the performance of a 
contract does not, in and of itself, offend any prohibition under Part 
760. See Sec. 760.2(a)(5) of this part and example (iii) under 
``Examples of Agreements To Refuse To Do Business.'' It is also the 
Department's position that an agreement to comply generally with the 
import and customs requirements of a boycotting country does not, in and 
of itself, offend any prohibition under part 760 of this part. See 
Sec. 760.2(a)(5) of this part and examples (iv) and (v) under ``Examples 
of Agreements To Refuse To Do Business.'' In addition, it is the 
Department's position that an agreement, such as the one set out in the 
second sentence above, to comply with the boycotting country's import 
and customs requirements prohibiting the importation of products or 
components: (1) Originating in the boycotted country; (2) Manufactured, 
produced, or furnished by companies organized under the laws of the 
boycotted country; or (3) Manufactured, produced, or furnished by 
nationals or residents of the boycotted country falls within the 
exception contained in Sec. 760.3(a) of this part for compliance with 
the import requirements of a boycotting country. See Sec. 760.3(a) of 
this part and example (ii) thereunder.
    The Department notes that, after June 21, 1978, a United States 
person may not furnish a negative certification regarding the origin of 
goods or their components even though the certification is furnished in 
response to the import and shipping document requirements of the 
boycotting country. See Sec. 760.3(c) of this part and examples (i), 
(ii), and (iii) thereunder, and Sec. 760.3(a) of this part and example 
(ii) thereunder.
    B. Contractual clause regarding unilateral and specific selection. 
``The Government of the boycotting country (or the First Party), in its 
exclusive power, reserves its right to make the final unilateral and 
specific selection of any proposed carriers, insurers, suppliers of 
services to be performed within the boycotting country, or of specific 
goods to be furnished in accordance with the terms and conditions of 
this contract.''

                             Interpretation

    It is the Department's position that an agreement, such as the one 
set out above, falls within the exception contained in Sec. 760.3(d) of 
this part for compliance with unilateral selections. However, the 
Department notes that whether a U.S. person may subsequently comply or 
agree to comply with any particular selection depends upon whether that 
selection meets all the requirements contained in Sec. 760.3(d) of this 
part for compliance with unilateral selections. For example, the 
particular selection must be unilateral and specific, particular goods 
must be specifically identifiable as to their source or origin at the 
time of their entry into the boycotting country, and all other 
requirements contained in Sec. 760.3(d) of this part must be observed.

              Supplement No. 2 to Part 760--Interpretation

    The Department hereby sets forth its views on whether the furnishing 
of certain shipping and insurance certificates in compliance with 
boycotting country requirements violates the provisions of section 8 of 
the Export Administration Act of 1979, as amended (50 U.S.C. app. 2407) 
and part 760 of the EAR,1 as follows:
---------------------------------------------------------------------------

    \1\ The Department originally issued this interpretation on April 
21, 1978 (43 FR 16969) pursuant to the Export Administration Amendments 
Act of 1977 (Public Law 95-52) and the regulations on restrictive trade 
practices and boycotts (15 CFR part 369) published on January 25, 1978 
(43 FR 3508) and contained in the 15 CFR edition revised as of January 
1, 1979.
---------------------------------------------------------------------------

    (i) ``The owner, charterer or master of a vessel may certify that 
the vessel is `eligible' or `otherwise eligible' to enter into the ports 
of a boycotting country in conformity with its laws and regulations;''
    (ii) ``The insurer, himself, may certify that he has a duly 
qualified and appointed agent or representative in the boycotting 
country and may furnish the name and address of his agent or 
representative.''
    Furnishing such certifications by anyone other than:
    (i) The owner, charterer or master of a vessel, or

[[Page 401]]

    (ii) The insurer would fall within the prohibition set forth in 
Sec. 760.2(d) of this part, ``unless it is clear from all the facts and 
circumstances that these certifications are not required for a boycott 
reason.'' See Sec. 760.2(d) (3) and (4) of this part.
    The Department has received from the Kingdom of Saudi Arabia a 
clarification that the shipping and insurance certifications are 
required by Saudi Arabia in order to:
    (i) Demonstrate that there are no applicable restrictions under 
Saudi laws or regulations pertaining to maritime matters such as the age 
of the ship, the condition of the ship, and similar matters that would 
bar entry of the vessel into Saudi ports; and
    (ii) Facilitate dealings with insurers by Saudi Arabian importers 
whose ability to secure expeditious payments in the event of damage to 
insured goods may be adversely affected by the absence of a qualified 
agent or representative of the insurer in Saudi Arabia. In the 
Department's judgment, this clarification constitutes sufficient facts 
and circumstances to demonstrate that the certifications are not 
required by Saudi Arabia for boycott reasons.
    On the basis of this clarification, it is the Department's position 
that any United States person may furnish such shipping and insurance 
certificates required by Saudi Arabia without violating Sec. 760.2(d) of 
this part. Moreover, under these circumstances, receipt of requests for 
such shipping and insurance certificates from Saudi Arabia is not 
reportable.
    It is still the Department's position that furnishing such a 
certificate pertaining to one's own eligibility offends no prohibition 
under part 760. See Sec. 760.2(f) of this part, example (xiv). However, 
absent facts and circumstances clearly indicating that the 
certifications are required for ordinary commercial reasons as 
demonstrated by the Saudi clarification, furnishing certifications about 
the eligibility or blacklist status of any other person would fall 
within the prohibition set forth in Sec. 760.2(d) of this part, and 
receipt of requests for such certifications is reportable.
    It also remains the Department's position that where a United States 
person asks an insurer or carrier of the exporter's goods to self-
certify, such request offends no prohibition under this part. However, 
where a United States person asks anyone other than an insurer or 
carrier of the exporter's goods to self-certify, such requests will be 
considered by the Department as evidence of the requesting person's 
refusal to do business with those persons who cannot or will not furnish 
such a self-certification. For example, if an exporter-beneficiary of a 
letter of credit asks his component suppliers to self-certify, such a 
request will be considered as evidence of his refusal to do business 
with those component suppliers who cannot or will not furnish such a 
self-certification.
    The Department wishes to emphasize that notwithstanding the fact 
that self-certifications are permissible, it will closely scrutinize the 
activities of all United States persons who provide such self-
certifications, including insurers and carriers, to determine that such 
persons have not taken any prohibited actions or entered into any 
prohibited agreements in order to be able to furnish such 
certifications.

              Supplement No. 3 to Part 760--Interpretation

    Pursuant to Article 2, Annex II of the Peace Treaty between Egypt 
and Israel, Egypt's participation in the Arab economic boycott of Israel 
was formally terminated on January 25, 1980. On the basis of this 
action, it is the Department's position that certain requests for 
information, action or agreement which were considered boycott-related 
by implication now cannot be presumed boycott-related and thus would not 
be prohibited or reportable under the Regulations. For example, a 
request that an exporter certify that the vessel on which it is shipping 
its goods is eligible to enter Arab Republic of Egypt ports has been 
considered a boycott-related request that the exporter could not comply 
with because Egypt has a boycott in force against Israel (see 43 FR 
16969, April 21, 1978 or the 15 CFR edition revised as of January 1, 
1979). Such a request after January 25, 1980 would not be presumed 
boycott-related because the underlying boycott requirement/basis for the 
certification has been eliminated. Similarly, a U.S. company would not 
be prohibited from complying with a request received from Egyptian 
government officials to furnish the place of birth of employees the 
company is seeking to take to Egypt, because there is no underlying 
boycott law or policy that would give rise to a presumption that the 
request was boycott-related.
    U.S. persons are reminded that requests that are on their face 
boycott-related or that are for action obviously in furtherance or 
support of an unsanctioned foreign boycott are subject to the 
Regulations, irrespective of the country or origin. For example, 
requests containing references to ``blacklisted companies'', ``Israel 
boycott list'', ``non-Israeli goods'' or other phrases or words 
indicating boycott purpose would be subject to the appropriate 
provisions of the Department's antiboycott regulations.

              Supplement No. 4 to Part 760--Interpretation

    The question has arisen how the definition of U.S. commerce in the 
antiboycott regulations (15 CFR part 760) applies to a shipment of 
foreign-made goods when U.S.-origin spare

[[Page 402]]

parts are included in the shipment. Specifically, if the shipment of 
foreign goods falls outside the definition of U.S. commerce, will the 
inclusion of U.S.-origin spare parts bring the entire transaction into 
U.S. commerce?
    Section 760.1(d)(12) of this part provides the general guidelines 
for determining when U.S.-origin goods shipped from a controlled in fact 
foreign subsidiary are outside U.S. commerce. The two key tests of that 
provision are that the goods were (1) acquired without reference to a 
specific order, and (2) further manufactured, incorporated or 
reprocessed into another product. Because the application of these two 
tests to spare parts does not conclusively answer the U.S. commerce 
question, the Department is presenting this clarification.
    In the cases brought to the Department's attention, an order for 
foreign-origin goods was placed with a controlled in fact foreign 
subsidiary of a United States company. The foreign goods contained 
components manufactured in the United States and in other countries, and 
the order included a request for extras of the U.S. manufactured 
components (spare parts) to allow the customer to repair the item. Both 
the foreign manufactured product and the U.S. spare parts were to be 
shipped from the general inventory of the foreign subsidiary. Since the 
spare parts, if shipped by themselves, would be in U.S. commerce as that 
term is defined in the Regulations, the question was whether including 
them with the foreign manufactured item would bring the entire shipment 
into U.S. commerce. The Department has decided that it will not and 
presents the following specific guidance.
    As used above, the term ``spare parts'' refers to parts of the 
quantities and types normally and customarily ordered with a product and 
kept on hand in the event they are needed to assure prompt repair of the 
product. Parts, components or accessories that improve or change the 
basic operations or design characteristics, for example, as to accuracy, 
capability or productivity, are not spare parts under this definition.
    Inclusion of U.S.-origin spare parts in a shipment of products which 
is otherwise outside U.S. commerce will not bring the transaction into 
U.S. commerce if the following conditions are met:
    (I) The parts included in the shipment are acquired from the United 
States by the controlled in fact foreign subsidiary without reference to 
a specific order from or transaction with a person outside the United 
States;
    (II) The parts are identical to the corresponding United States-
origin parts which have been manufactured, incorporated into or 
reprocessed into the completed product;
    (III) The parts are of the quantity and type normally and 
customarily ordered with the completed product and kept on hand by the 
firm or industry of which the firm is a part to assure prompt repair of 
the product; and
    (IV) The parts are covered by the same order as the completed 
product and are shipped with or at the same time as the original 
product.
    The Department emphasizes that unless each of the above conditions 
is met, the inclusion of United States-origin spare parts in an order 
for a foreign-manufactured or assembled product will bring the entire 
transaction into the interstate or foreign commerce of the United States 
for purposes of part 760.

              Supplement No. 5 to Part 760--Interpretation

                A. Permissible Furnishing of Information

    The information outlined below may be furnished in response to 
boycott-related requests from boycotting countries or others. This 
information is, in the view of the Department, not prohibited by the 
Regulations. Thus, a person does not have to qualify under any of the 
exceptions to be able to make the following statements. Such statements 
can be made, however, only by the person indicated and under the 
circumstances described. These statements should not be used as a point 
of departure or analogy for determining the permissibility of other 
types of statements. The Department's view that these statements are not 
contrary to the prohibitions contained in antiboycott provisions of the 
Regulations is limited to the specific statement in the specific context 
indicated.
    1. A U.S. person may always provide its own name, address, place of 
incorporation (``nationality''), and nature of business.
    2. A U.S. person may state that it is not on a blacklist, or 
restricted from doing business in a boycotting country. A company may 
not make that statement about its subsidiaries or affiliates--only about 
itself. A U.S. person may not say that there is no reason for it to be 
blacklisted. To make that statement would provide directly or by 
implication information that may not be provided. A U.S. person may 
inquire about the reasons it is blacklisted if it learns that it is on a 
blacklist (see Sec. 760.2(d) of this part example (xv)).
    3. A U.S. person may describe in detail its past dealings with 
boycotting countries; may state in which boycotting countries its 
trademarks are registered; and may specify in which boycotting countries 
it is registered or qualified to do business. In general, a U.S. person 
is free to furnish any information it wishes about the nature and extent 
of its commercial dealings with boycotting countries.
    4. A U.S. person may state that many U.S. firms or individuals have 
similar names and that it believes that it may be confused with

[[Page 403]]

a similarly named entity. A U.S. person may not state that it does or 
does not have an affiliation or relationship with such similarly named 
entity.
    5. A U.S. person may state that the information requested is a 
matter of public record in the United States. However, the person may 
not direct the inquirer to the location of that information, nor may the 
U.S. person provide or cause to be provided such information.

B. Availability of the Compliance With Local Law Exception to Establish 
                            a Foreign Branch

    Section 760.3(f) of this part, the Compliance With Local Law 
exception, permits U.S. persons, who are bona fide residents of a 
boycotting country, to take certain limited, but otherwise prohibited, 
actions, if they are required to do so in order to comply with local 
law.
    Among these actions is the furnishing of non-discriminatory 
information. Examples (iv) through (vi) under ``Examples of Bona Fide 
Residency'' indicate that a company seeking to become a bona fide 
resident within a boycotting country may take advantage of the exception 
for the limited purpose of furnishing information required by local law 
to obtain resident status. Exactly when and how this exception is 
available has been the subject of a number of inquiries. It is the 
Department's view that the following conditions must be met for a non-
resident company to be permitted to furnish otherwise prohibited 
information for the limited purpose of seeking to become a bona fide 
resident:
    1. The company must have a legitimate business reason for seeking to 
establish a branch or other resident operation in the boycotting 
country. (Removal from the blacklist does not constitute such a reason.)
    2. The local operation it seeks to establish must be similar or 
comparable in nature and operation to ones the company operates in other 
parts of the world, unless local law or custom dictates a significantly 
different form.
    3. The person who visits the boycotting country to furnish the 
information must be the official whose responsibility ordinarily 
includes the creation and registration of foreign operations (i.e., the 
chairman of the board cannot be flown in to answer boycott questions 
unless the chairman of the board is the corporate official who 
ordinarily goes into a country to handle foreign registrations).
    4. The information provided must be that which is ordinarily known 
to the person establishing the foreign branch. Obviously, at the time of 
establishment, the foreign branch will have no information of its own 
knowledge. Rather, the information should be that which the responsible 
person has of his own knowledge, or that he would have with him as 
incidental and necessary to the registration and establishment process. 
As a general rule, such information would not include such things as 
copies of agreements with boycotted country concerns or detailed 
information about the person's dealings with blacklisted concerns.
    5. It is not necessary that documents prepared in compliance with 
this exception be drafted or executed within the boycotting country. The 
restrictions on the type of information which may be provided and on who 
may provide it apply regardless of where the papers are prepared or 
signed.

              Supplement No. 6 to Part 760--Interpretation

    The antiboycott regulations prohibit knowing agreements to comply 
with certain prohibited requests and requirements of boycotting 
countries, regardless of how these terms are stated. Similarly, the 
reporting rules require that a boycott related ``solicitation, 
directive, legend or instruction that asks for information or that asks 
that a United States person take or refrain from taking a particular 
action'' be reported. Questions have frequently arisen about how 
particular requirements in the form of directive or instructions are 
viewed under the antiboycott regulations, and we believe that it will 
add clarity to the regulations to provide a written interpretation of 
how three of these terms are treated under the law. The terms in 
question appear frequently in letters of credit, but may also be found 
on purchase orders or other shipping or sale documents. They have been 
brought to the attention of the Department by numerous persons. The 
terms are, or are similar to, the following: (1) Goods of boycotted 
country origin are prohibited; (2) No six-pointed stars may be used on 
the goods, packing or cases; (3) Neither goods nor packing shall bear 
any symbols prohibited in the boycotting country.
    (a) Goods of boycotted country origin prohibited. This term is very 
common in letters of credit from Kuwait and may also appear from time-
to-time in invitations to bid, contracts, or other trade documents. It 
imposes a condition or requirement compliance with which is prohibited, 
but permitted by an exception under the Regulations (see Sec. 760.2(a) 
and Sec. 760.3(b) of this part). It is reportable by those parties to 
the letter of credit or other transaction that are required to take or 
refrain from taking some boycott related action by the request. Thus the 
bank must report the request because it is a term or condition of the 
letter of credit that it is handling, and the exporter-beneficiary must 
report the request because the exporter determines the origin of the 
goods. The freight forwarder does not have to report this request 
because the forwarder has no role or

[[Page 404]]

obligation in this part of the transaction. See Sec. 760.5, examples 
(xiii)-(xv) of this part.
    (b) No six-pointed stars may be used on the goods, packing or cases. 
This term appears from time-to-time on documents from a variety of 
countries. The Department has taken the position that the six-pointed 
star is a religious symbol. See Sec. 760.2(b), example (viii) of this 
part. Agreeing to this term is prohibited by the Regulations and not 
excepted because it constitutes an agreement to furnish information 
about the religion of a U.S. person. See Sec. 760.2(c) of this part. If 
a person proceeds with a transaction in which this is a condition at any 
stage of the transaction, that person has agreed to the condition in 
violation of the Regulations. It is not enough to ignore the condition. 
Exception must affirmatively be taken to this term or it must be 
stricken from the documents of the transaction. It is reportable by all 
parties to the transaction that are restricted by it. For example, 
unlike the situation described in (a) above, the freight forwarder would 
have to report this request because his role in the transaction would 
involve preparation of the packing and cases. The bank and exporter 
would both have to report, of course, if it were a term in a letter of 
credit. Each party would be obligated affirmatively to seek an amendment 
or deletion of the term.
    (c) Neither goods nor packaging shall bear any symbols prohibited in 
the boycotting country. This term appears from time-to-time in letters 
of credit and shipping documents from Saudi Arabia. In our view, it is 
neither prohibited, nor reportable because it is not boycott-related. 
There is a wide range of symbols that are prohibited in Saudi Arabia for 
a variety of reasons, many having to do with that nation's cultural and 
religious beliefs. On this basis, we do not interpret the term to be 
boycott related. See Sec. 760.2(a)(5) and Sec. 760.5(a)(5)(v) of this 
part.

              Supplement No. 7 to Part 760--Interpretation

                    Prohibited Refusal To Do Business

    When a boycotting country rejects for boycott-related reasons a 
shipment of goods sold by a United States person, the United States 
person selling the goods may return them to its inventory or may re-ship 
them to other markets (the United States person may not return them to 
the original supplier and demand restitution). The U.S. person may then 
make a non-boycott based selection of another supplier and provide the 
goods necessary to meet its obligations to the boycotting customer in 
that particular transaction without violating Sec. 760.2(a) of this 
part. If the United States person receives another order from the same 
boycotting country for similar goods, the Department has determined that 
a boycott-based refusal by a United States person to ship goods from the 
supplier whose goods were previously rejected would constitute a 
prohibited refusal to do business under Sec. 760.2(a) of this part. The 
Department will presume that filling such an order with alternative 
goods is evidence of the person's refusal to deal with the original 
supplier.
    The Department recognizes the limitations this places on future 
transactions with a boycotting country once a shipment of goods has been 
rejected. Because of this, the Department wishes to point out that, when 
faced with a boycotting country's refusal to permit entry of the 
particular goods, a United States person may state its obligation to 
abide by the requirements of United States law and indicate its 
readiness to comply with the unilateral and specific selection of goods 
by the boycotting country in accordance with Sec. 760.3(c) of this part. 
That section provides, in pertinent part, as follows:
    A United States person may comply or agree to comply in the normal 
course of business with the unilateral and specific selection by a 
boycotting country ________ of ________ specific goods, ________ 
provided that ________ with respect to goods, the items, in the normal 
course of business, are identifiable as to their source or origin at the 
time of their entry into the boycotting country by (a) uniqueness of 
design or appearance or (b) trademark, trade name, or other 
identification normally on the items themselves, including their 
packaging.
    The United States person may also provide certain services in 
advance of the unilateral selection by the boycotting country, such as 
the compilation of lists of qualified suppliers, so long as such 
services are customary to the type of business the United States person 
is engaged in, and the services rendered are completely non-exclusionary 
in character (i.e., the list of qualified suppliers would have to 
include the supplier whose goods had previously been rejected by the 
boycotting country, if they were fully qualified). See Sec. 760.2(a)(6) 
of this part for a discussion of the requirements for the provision of 
these services.
    The Department wishes to emphasize that the unilateral selection 
exception in Sec. 760.3(d) of this part will be construed narrowly, and 
that all its requirements and conditions must be met, including the 
following:

--Discretion for the selection must be exercised by a boycotting 
country; or by a national or resident of a boycotting country;
--The selection must be stated in the affirmative specifying a 
particular supplier of goods;
--While a permissible selection may be boycott based, if the United 
States person knows or has reason to know that the purpose of the 
selection is to effect discrimination against any United States person

[[Page 405]]

on the basis of race, religion, sex, or national origin, the person may 
not comply under any circumstances.

    The Department cautions United States persons confronted with the 
problem or concern over the boycott-based rejection of goods shipped to 
a boycotting country that the adoption of devices such as ``risk of 
loss'' clauses, or conditions that make the supplier financially liable 
if his or her goods are rejected by the boycotting country for boycott 
reasons are presumed by the Department to be evasion of the statute and 
regulations, and as such are prohibited by Sec. 760.4 of this part, 
unless adopted prior to January 18, 1978. See Sec. 760.4(d) of this 
part.

              Supplement No. 8 to Part 760--Interpretation

    Definition of Interstate or Foreign Commerce of the United States

    When United States persons (as defined by the antiboycott 
regulations) located within the United States purchase or sell goods or 
services located outside the United States, they have engaged in an 
activity within the foreign commerce of the United States. Although the 
goods or services may never physically come within the geographic 
boundaries of the several states or territories of the United States, 
legal ownership or title is transferred from a foreign nation to the 
United States person who is located in the United States. In the case of 
a purchase, subsequent resale would also be within United States 
commerce.
    It is the Department's view that the terms ``sale'' and ``purchase'' 
as used in the regulations are not limited to those circumstances where 
the goods or services are physically transferred to the person who 
acquires title. The EAR define the activities that serve as the 
transactional basis for U.S. commerce as those involving the ``sale, 
purchase, or transfer'' of goods or services. In the Department's view, 
as used in the antiboycott regulations, ``transfer'' contemplates 
physical movement of the goods or services between the several states or 
territories and a foreign country, while ``sale'' and ``purchase'' 
relate to the movement of ownership or title.
    This interpretation applies only to those circumstances in which the 
person located within the United States buys or sells goods or services 
for its own account. Where the United States person is engaged in the 
brokerage of foreign goods, i.e., bringing foreign buyers and sellers 
together and assisting in the transfer of the goods, the sale or 
purchase itself would not ordinarily be considered to be within U.S. 
commerce. The brokerage service, however, would be a service provided 
from the United States to the parties and thus an activity within U.S. 
commerce and subject to the antiboycott laws. See Sec. 760.1(d)(13) of 
this part.
    The Department cautions that United States persons who alter their 
normal pattern of dealing to eliminate the passage of ownership of the 
goods or services to or from the several states or territories of the 
United States in order to avoid the application of the antiboycott 
regulations would be in violation of Sec. 760.4 of this part.

              Supplement No. 9 to Part 760--Interpretation

     Activities Exclusively Within a Boycotting Country--Furnishing 
                               Information

    Sec. 760.3(h) of this part provides that a United States person who 
is a bona fide resident of a boycotting country may comply with the laws 
of that country with respect to his or her activities exclusively within 
the boycotting country. Among the types of conduct permitted by this 
exception is ``furnishing information within the host country'' 
Sec. 760.3(h)(1)(v) of this part. For purposes of the discussion which 
follows, the Department is assuming that the person in question is a 
bona fide resident of the boycotting country as defined in Sec. 760.3(f) 
of this part, and that the information to be provided is required by the 
laws or regulations of the boycotting country, as also defined in 
Sec. 760.3(g) of this part. The only issue this interpretation addresses 
is under what circumstances the provision of information is ``an 
activity exclusively within the boycotting country.''
    The activity of ``furnishing information'' consists of two parts, 
the acquisition of the information and its subsequent transmittal. Under 
the terms of this exception, the information may not be acquired outside 
the country for the purpose of responding to the requirement for 
information imposed by the boycotting country. Thus, if an American 
company which is a bona fide resident of a boycotting country is 
required to provide information about its dealings with other U.S. 
firms, the company may not ask its parent corporation in the United 
States for that information, or make any other inquiry outside the 
boundaries of the boycotting country. The information must be provided 
to the boycotting country authorities based on information or knowledge 
available to the company and its personnel located within the boycotting 
country at the time the inquiry is received. See Sec. 760.3, (h) of this 
part, examples (iii), (iv), and (v). Much of the information in the 
company's possession (transaction and corporate records) may have 
actually originated outside the boycotting country, and much of the 
information known to the employees may have been acquired outside the 
boycotting country. This will not cause the information to fall

[[Page 406]]

outside the coverage of this exception, if the information was sent to 
the boycotting country or acquired by the individuals in normal 
commercial context prior to and unrelated to a boycott inquiry or 
purpose. It should be noted that if prohibited information (about 
business relations with a boycotted country, for example) has been 
forwarded to the affiliate in the boycotting country in anticipation of 
a possible boycott inquiry from the boycotting country government, the 
Department will not regard this as information within the knowledge of 
the bona fide resident under the terms of the exception. However, if the 
bona fide resident possesses the information prior to receipt of a 
boycott-related inquiry and obtained it in a normal commercial context, 
the information can be provided pursuant to this exception 
notwithstanding the fact that, at some point, the information came into 
the boycotting country from the outside.
    The second part of the analysis of ``furnishing information'' deals 
with the limitation on the transmittal of the information. It can only 
be provided within the boundaries of the boycotting country. The bona 
fide resident may only provide the information to the party that the 
boycotting country law requires (directly or through an agent or 
representative within the country) so long as that party is located 
within the boycotting country. This application of the exception is 
somewhat easier, since it is relatively simple to determine if the 
information is to be given to somebody within the country.
    Note that in discussing what constitutes furnishing information 
``exclusively within'' the boycotting country, the Department does not 
address the nature of the transaction or activity that the information 
relates to. It is the Department's position that the nature of the 
transaction, including the inception or completion of the transaction, 
is not material in analyzing the availability of this exception.
    For example, if a shipment of goods imported into a boycotting 
country is held up at the time of entry, and information from the bona 
fide resident within that country is legally required to free those 
goods, the fact that the information may relate to a transaction that 
began outside the boycotting country is not material. The availability 
of the exception will be judged based on the activity of the bona fide 
resident within the country. If the resident provides that information 
of his or her own knowledge, and provides it to appropriate parties 
located exclusively within the country, the exception permits the 
information to be furnished.
    Factual variations may raise questions about the application of this 
exception and the effect of this interpretation. In an effort to 
anticipate some of these, the Department has set forth below a number of 
questions and answers. They are incorporated as a part of this 
interpretation.
    1. Q. Under this exception, can a company which is a U.S. person and 
a bona fide resident of the boycotting country provide information to 
the local boycott office?
    A. Yes, if local law requires the company to provide this 
information to the boycott office and all the other requirements are 
met.
    2. Q. If the company knows that the local boycott office will 
forward the information to the Central Boycott Office, may it still 
provide the information to the local boycott office?
    A. Yes, if it is required by local law to furnish the information to 
the local boycott office and all the other requirements are met. The 
company has no control over what happens to the information after it is 
provided to the proper authorities. (There is obvious potential for 
evasion here, and the Department will examine such occurrences closely.)
    3. Q. Can a U.S. person who is a bona fide resident of Syria furnish 
information to the Central Boycott Office in Damascus?
    A. No, unless the law in Syria specifically requires information to 
be provided to the Central Boycott Office the exception will not apply. 
Syria has a local boycott office responsible for enforcing the boycott 
in that country.
    4. Q. If a company which is a U.S. person and a bona fide resident 
of the boycotting country has an import shipment held up in customs of 
the boycotting country, and is required to provide information about the 
shipment to get it out of customs, may the company do so?
    A. Yes, assuming all other requirements are met. The act of 
furnishing the information is the activity taking place exclusively 
within the boycotting country. The fact that the information is provided 
corollary to a transaction that originates or terminates outside the 
boycotting country is not material.
    5. Q. If the U.S. person and bona fide resident of the boycotting 
country is shipping goods out of the boycotting country, and is required 
to certify to customs officials of the country at the time of export 
that the goods are not of Israeli origin, may he do so even though the 
certification relates to an export transaction?
    A. Yes, assuming all other requirements are met. See number 4 above.

              Supplement No. 10 to Part 760--Interpretation

    (a) The words ``Persian Gulf'' cannot appear on the document.
    This term is common in letters of credit from Kuwait and may be 
found in letters of credit from Bahrain. Although more commonly 
appearing in letters of credit, the

[[Page 407]]

term may also appear in other trade documents.
    It is the Department's view that this term reflects a historical 
dispute between the Arabs and the Iranians over geographic place names 
which in no way relates to existing economic boycotts. Thus, the term is 
neither prohibited nor reportable under the Regulations.
    (b) Certify that goods are of U.S.A. origin and contain no foreign 
parts.
    This term appears periodically on documents from a number of Arab 
countries. It is the Department's position that the statement is a 
positive certification of origin and, as such, falls within the 
exception contained in Sec. 760.3(c) of this part for compliance with 
the import and shipping document requirements of a boycotting country. 
Even though a negative phrase is contained within the positive clause, 
the phrase is a non exclusionary, non blacklisting statement. In the 
Department's view, the additional phrase does not affect the permissible 
status of the positive certificate, nor does it make the request 
reportable Sec. 760.5(a)(5)(iii) of this part.
    (c) Legalization of documents by any Arab consulate except Egyptian 
Consulate permitted.
    This term appears from time to time in letters of credit but also 
may appear in various other trade documents requiring legalization and 
thus is not prohibited, and a request to comply with the statement is 
not reportable. Because a number of Arab states do not have formal 
diplomatic relations with Egypt, they do not recognize Egyptian embassy 
actions. The absence of diplomatic relations is the reason for the 
requirement. In the Department's view this does not constitute an 
unsanctioned foreign boycott or embargo against Egypt under the terms of 
the Export Administration Act. Thus the term is not prohibited, and a 
request to comply with the statement is not reportable.

              Supplement No. 11 to Part 760--Interpretation

               Definition of Unsolicited Invitation to Bid

    Sec. 760.5(a)(4) of this part states in part:
    In addition, a United States person who receives an unsolicited 
invitation to bid, or similar proposal, containing a boycott request has 
not received a reportable request for purposes of this section where he 
does not respond to the invitation to bid or other proposal.
    The Regulations do not define ``unsolicited'' in this context. Based 
on review of numerous situations, the Department has developed certain 
criteria that it applies in determining if an invitation to bid or other 
proposal received by a U.S. person is in fact unsolicited.
    The invitation is not unsolicited if, during a commercially 
reasonable period of time preceding the issuance of the invitation, a 
representative of the U.S. person contacted the company or agency 
involved for the purpose of promoting business on behalf of the company.
    The invitation is not unsolicited if the U.S. person has advertised 
the product or line of products that are the subject of the invitation 
in periodicals or publications that ordinarily circulate to the country 
issuing the invitation during a commercially reasonable period of time 
preceding the issuance of the invitation.
    The invitation is not unsolicited if the U.S. person has sold the 
same or similar products to the company or agency issuing the invitation 
within a commercially reasonable period of time before the issuance of 
the current invitation.
    The invitation is not unsolicited if the U.S. person has 
participated in a trade mission to or trade fair in the country issuing 
the invitation within a commercially reasonable period of time before 
the issuance of the invitation.
    Under Sec. 760.5(a)(4) of this part, the invitation is regarded as 
not reportable if the U.S. person receiving it does not respond. The 
Department has determined that a simple acknowledgment of the invitation 
does not constitute a response for purposes of this rule. However, an 
acknowledgment that requests inclusion for future invitations will be 
considered a response, and a report is required.
    Where the person in receipt of an invitation containing a boycott 
term or condition is undecided about a response by the time a report 
would be required to be filed under the regulations, it is the 
Department's view that the person must file a report as called for in 
the Regulations. The person filing the report may indicate at the time 
of filing that he has not made a decision on the boycott request but 
must file a supplemental report as called for in the regulations at the 
time a decision is made (Sec. 760.5(a)(6) of this part).

              Supplement No. 12 to Part 760--Interpretation

    The Department has taken the position that a U.S. person as defined 
by Sec. 760.1(b) of this part may not make use of an agent to furnish 
information that the U.S. person is prohibited from furnishing pursuant 
to Sec. 760.2(d) of this part.
    Example (v) under Sec. 760.4 of this part (Evasion) provides:
    A, a U.S. company, is negotiating a long-term contract with 
boycotting country Y to meet all of Y's medical supply needs. Y informs 
A that before such a contract can be concluded, A must complete Y's 
boycott questionnaire. A knows that it is prohibited

[[Page 408]]

from answering the questionnaire so it arranges for a local agent in Y 
to supply the necessary information.
    A's action constitutes evasion of this part, because it is a device 
to mask prohibited activity carried out on A's behalf.
    This interpretation deals with the application of the Regulations to 
a commercial agent registration requirement recently imposed by the 
government of Saudi Arabia. The requirement provides that nationals of 
Saudi Arabia seeking to register in Saudi Arabia as commercial agents or 
representatives of foreign concerns must furnish certain boycott-related 
information about the foreign concern prior to obtaining approval of the 
registration.
    The requirement has been imposed by the Ministry of Commerce of 
Saudi Arabia, which is the government agency responsible for regulation 
of commercial agents and foreign commercial registrations. The Ministry 
requires the agent or representative to state the following:
    Declaration: I, the undersigned, hereby declare, in my capacity as 
(blank) that (name and address of foreign principal) is not presently on 
the blacklist of the Office for the Boycott of Israel and that it and 
all its branches, if any, are bound by the decisions issued by the 
Boycott Office and do not (1) participate in the capital of, (2) license 
the manufacture of any products or grant trademarks or tradeware license 
to, (3) give experience or technical advice to, or (4) have any other 
relationship with other companies which are prohibited to be dealt with 
by the Boycott Office. Signed (name of commercial agent/representative/
distributor).
    It is the Department's view that under the circumstances 
specifically outlined in this interpretation relating to the nature of 
the requirement, a U.S. person will not be held responsible for a 
violation of this part when such statements are provided by its 
commercial agent or representative, even when such statements are made 
with the full knowledge of the U.S. person.
    Nature of the requirement. For a boycott-related commercial 
registration requirement to fall within the coverage of this 
interpretation it must have the following characteristics:
    1. The requirement for information imposed by the boycotting country 
applies to a national or other subject of the boycotting country 
qualified under the local laws of that country to function as a 
commercial representative within that country;
    2. The registration requirement relates to the registration of the 
commercial agent's or representative's authority to sell or distribute 
goods within the boycotting country acquired from the foreign concern;
    3. The requirement is a routine part of the registration process and 
is not applied selectively based on boycott-related criteria;
    4. The requirement applies only to a commercial agent or 
representative in the boycotting country and does not apply to the 
foreign concern itself; and
    5. The requirement is imposed by the agency of the boycotting 
country responsible for regulating commercial agencies.
    The U.S. person whose agent is complying with the registration 
requirement continues to be subject to all the terms of the Regulations, 
and may not provide any prohibited information to the agent for purposes 
of the agent's compliance with the requirement.
    In addition, the authority granted to the commercial agent or 
representative by the U.S. person must be consistent with standard 
commercial practices and not involve any grants of authority beyond 
those incidental to the commercial sales and distributorship 
responsibilities of the agent.
    Because the requirement does not apply to the U.S. person, no 
reporting obligation under Sec. 760.5 of this part would arise.
    This interpretation, like all others issued by the Department 
discussing applications of the antiboycott provisions of the Export 
Administration Regulations, should be read narrowly. Circumstances that 
differ in any material way from those discussed in this notice will be 
considered under the applicable provisions of the Regulations. Persons 
are particularly advised not to seek to apply this interpretation to 
circumstances in which U.S. principals seek to use agents to deal with 
boycott-related or potential blacklisting situations.

              Supplement No. 13 to Part 760--Interpretation

                                 Summary

    This interpretation considers boycott-based contractual language 
dealing with the selection of suppliers and subcontractors. While this 
language borrows terms from the ``unilateral and specific selection'' 
exception contained in Sec. 760.3(c) of this part, it fails to meet the 
requirements of that exception. Compliance with the requirements of the 
language constitutes a violation of the regulatory prohibition of 
boycott-based refusals to do business.

                          Regulatory Background

    Section 760.2(a) of this part prohibits U.S. persons from refusing 
or knowingly agreeing to refuse to do business with other persons when 
such refusal is pursuant to an agreement with, requirement of, or 
request of a boycotting country. That prohibition does not extend to the 
performance of management, procurement or other pre-award services, 
however, notwithstanding knowledge that the ultimate selection may be 
boycott-based. To be permissible such services: (1) Must be customary 
for the firm or industry

[[Page 409]]

involved and (2) must not exclude others from the transaction or involve 
other actions based on the boycott. See Sec. 760.2(a)(6) of this part, 
``Refusals to Do Business'', and example (xiii).
    A specific exception is also made in the Regulations for compliance 
(and agreements to comply) with a unilateral and specific selection of 
suppliers or subcontractors by a boycotting country buyer. See 
Sec. 760.3(d) of this part. In Supplement No. 1 to part 760, the 
following form of contractual language was said to fall within that 
exception for compliance with unilateral and specific selection:
    The Government of the boycotting country (or the First Party), in 
its exclusive power, reserves its right to make the final unilateral and 
specific selection of any proposed carriers, insurers, suppliers of 
services to be performed within the boycotting country, or of specific 
goods to be furnished in accordance with the terms and conditions of 
this contract.
    The Department noted that the actual steps necessary to comply with 
any selection made under this agreement would also have to meet the 
requirements of Sec. 760.3(c) of this part to claim the benefit of that 
exception. In other words, the discretion in selecting would have to be 
exercised exclusively by the boycotting country customer and the 
selection would have to be stated in the affirmative, naming a 
particular supplier. See Sec. 760.3(d) (4) and (5) of this part.

                Analysis of the New Contractual Language

    The Office of Antiboycott Compliance has learned of the introduction 
of a new contractual clause into tender documents issued by boycotting 
country governments. This clause is, in many respects, similar to that 
dealt with in Supplement No. 1 to part 760, but several critical 
differences exist.
    The clause states:

                      Boycott of Boycotted Country

    In connection with the performance of this Agreement, Contractor 
acknowledges that the import and customs laws and regulations of 
boycotting country apply to the furnishing and shipment of any products 
or components thereof to boycotting country. The Contractor specifically 
acknowledges that the aforementioned import and customs laws and 
regulations of boycotting country prohibit, among other things, the 
importation into boycotting country of products or components thereof: 
(A) Originating in boycotted country; (B) Manufactured, produced and 
furnish by companies organized under the laws of boycotted country; and 
(C) Manufactured, produced or furnished by Nationals or Residents of 
boycotted country.
    The Government, in its exclusive power, reserves its right to make 
the final unilateral and specific selection of any proposed Carriers, 
Insurers, Suppliers of Services to be performed within boycotting 
country or of specific goods to be furnished in accordance with the 
terms and conditions of this Contract.
    To assist the Government in exercising its right under the preceding 
paragraph, Contractor further agrees to provide a complete list of names 
and addresses of all his Sub-Contractors, Suppliers, Vendors and 
Consultants and any other suppliers of the service for the project.
    The title of this clause makes clear that its provisions are 
intended to be boycott-related. The first paragraph acknowledges the 
applicability of certain boycott-related requirements of the boycotting 
country's laws in language reviewed in part 760, Supplement No. 1, Part 
II.B. and found to constitute a permissible agreement under the 
exception contained in Sec. 760.3(a) of this part for compliance with 
the import requirements of a boycotting country. The second and third 
paragraphs together deal with the procedure for selecting subcontractors 
and suppliers of services and goods and, in the context of the clause as 
a whole, must be regarded as motivated by boycott considerations and 
intended to enable the boycotting country government to make boycott-
based selections, including the elimination of blacklisted 
subcontractors and suppliers.
    The question is whether the incorporation into these paragraphs of 
some language from the ``unilateral and specific selection'' clause 
approved in Supplement No. 1 to part 760 suffices to take the language 
outside Sec. 760.2(a) of this part's prohibition on boycott-based 
agreements to refuse to do business. While the first sentence of this 
clause is consistent with the language discussed in Supplement No. 1 to 
part 760, the second sentence significantly alters the effect of this 
clause. The effect is to draw the contractor into the decision-making 
process, thereby destroying the unilateral character of the selection by 
the buyer. By agreeing to submit the names of the suppliers it plans to 
use, the contractor is agreeing to give the boycotting country buyer, 
who has retained the right of final selection, the ability to reject, 
for boycott-related reasons, any supplier the contractor has already 
chosen. Because the requirement appears in the contractual provision 
dealing with the boycott, the buyer's rejection of any supplier whose 
name is given to the buyer pursuant to this provision would be presumed 
to be boycott-based. By signing the contract, and thereby agreeing to 
comply with all of its provisions, the contractor must either accept the 
buyer's rejection of any supplier, which is presumed to be boycott-based 
because of the context of this provision, or breach the contract.

[[Page 410]]

    In these circumstances, the contractor's method of choosing its 
subcontractors and suppliers, in anticipation of the buyer's boycott-
based review, cannot be considered a permissible pre-award service 
because of the presumed intrusion of boycott-based criteria into the 
selection process. Thus, assuming all other jurisdictional requirements 
necessary to establish a violation of part 760 are met, the signing of 
the contract by the contractor constitutes a violation of Sec. 760.2(a) 
of this part because he is agreeing to refuse to do business for boycott 
reasons.
    The apparent attempt to bring this language within the exception for 
compliance with unilateral and specific selections is ineffective. The 
language does not place the discretion to choose suppliers in the hands 
of the boycotting country buyer but divides this discretion between the 
buyer and his principal contractor. Knowing that the buyer will not 
accept a boycotted company as supplier or subcontractor, the contractor 
is asked to use his discretion in selecting a single supplier or 
subcontractor for each element of the contract. The boycotting country 
buyer exercises discretion only through accepting or rejecting the 
selected supplier or contractor as its boycott policies require. In 
these circumstances it cannot be said that the buyer is exercising right 
of unilateral and specific selection which meets the criteria of 
Sec. 760.3(c) of this part. For this reason, agreement to the 
contractual language discussed here would constitute an agreement to 
refuse to do business with any person rejected by the buyer and would 
violate Sec. 760.2(a) of this part.

              Supplement No. 14 to Part 760--Interpretation

    (a) Contractual clause concerning import, customs and boycott laws 
of a boycotting country.
    The following language has appeared in tender documents issued by a 
boycotting country:
    Supplier declares his knowledge of the fact that the import, Customs 
and boycott laws, rules and regulations of [name of boycotting country] 
apply in importing to [name of boycotting country].
    Supplier declares his knowledge of the fact that under these laws, 
rules and regulations, it is prohibited to import into [name of the 
boycotting country] any products or parts thereof that originated in 
[name of boycotted country]; were manufactured, produced or imported by 
companies formed under the laws of [name of boycotted country]; or were 
manufactured, produced or imported by nationals or residents of [name of 
boycotted country].
    Agreeing to the above contractual language is a prohibited agreement 
to refuse to do business, under Sec. 760.2(a) of this part. The first 
paragraph requires broad acknowledgment of the application of the 
boycotting country's boycott laws, rules and regulations. Unless this 
language is qualified to apply only to boycott restrictions with which 
U.S. persons may comply, agreement to it is prohibited. See 
Sec. 760.2(a) of this part, examples (v) and (vi) under ``Agreement to 
Refuse to Do Business.''
    The second paragraph does not limit the scope of the boycott 
restrictions referenced in the first paragraph. It states that the 
boycott laws include restrictions on goods originating in the boycotted 
country; manufactured, produced or supplied by companies organized under 
the laws of the boycotted country; or manufactured, produced or supplied 
by nationals or residents of the boycotted country. Each of these 
restrictions is within the exception for compliance with the import 
requirements of the boycotting country (Sec. 760.3(a) of this part). 
However, the second paragraph's list of restrictions is not exclusive. 
Since the boycott laws generally include more than what is listed and 
permissible under the antiboycott law, U.S. persons may not agree to the 
quoted clause. For example, a country's boycott laws may prohibit 
imports of goods manufactured by blacklisted firms. Except as provided 
by Sec. 760.3(g) of this part, agreement to and compliance with this 
boycott restriction would be prohibited under the antiboycott law.
    The above contractual language is distinguished from the contract 
clause determined to be permissible in supplement 1, Part II, A, by its 
acknowledgment that the boycott requirements of the boycotting country 
apply. Although the first sentence of the Supplement 1 clause does not 
exclude the possible application of boycott laws, it refers only to the 
import and customs laws of the boycotting country without mentioning the 
boycott laws as well. As discussed fully in Supplement No. 1 to part 
760, compliance with or agreement to the clause quoted there is, 
therefore, permissible.
    The contract clause quoted above, as well as the clause dealt with 
in Supplement No. 1 to part 760, part II, A, is reportable under 
Sec. 760.6(a)(1) of this part.
    (b) Letter of credit terms removing blacklist certificate 
requirement if specified vessels used.
    The following terms frequently appear on letters of credit covering 
shipment to Iraq:
    Shipment to be effected by Iraqi State Enterprise for Maritime 
Transport Vessels or by United Arab Shipping Company (SAB) vessels, if 
available.
    If shipment is effected by any of the above company's [sic] vessels, 
black list certificate or evidence to that effect is not required.
    These terms are not reportable and compliance with them is 
permissible.
    The first sentence, a directive to use Iraqi State Enterprise for 
Maritime Transport or

[[Page 411]]

United Arab Shipping vessels, is neither reportable nor prohibited 
because it is not considered by the Department to be boycott-related. 
The apparent reason for the directive is Iraq's preference to have cargo 
shipped on its own vessels (or, as in the case of United Arab Shipping, 
on vessels owned by a company in part established and owned by the Iraqi 
government). Such ``cargo preference'' requirements, calling for the use 
of an importing or exporting country's own ships, are common throughout 
the world and are imposed for non-boycott reasons. (See Sec. 760.2(a) of 
this part, example (vii) AGREEMENTS TO REFUSE TO DO BUSINESS.)
    In contrast, if the letter of credit contains a list of vessels or 
carriers that appears to constitute a boycott-related whitelist, a 
directive to select a vessel from that list would be both reportable and 
prohibited. When such a directive appears in conjunction with a term 
removing the blacklist certificate requirement if these vessels are 
used, the Department will presume that beneficiaries, banks and any 
other U.S. person receiving the letter of credit know that there is a 
boycott-related purpose for the directive.
    The second sentence of the letter of credit language quoted above 
does not, by itself, call for a blacklist certificate and is not 
therefore, reportable. If a term elsewhere on the letter of credit 
imposes a blacklist certificate requirement, then that other term would 
be reportable.
    (c) Information not related to a particular transaction in U.S. 
commerce.
    Under Sec. 760.2 (c), (d) and (e), of this part U.S. persons are 
prohibited, with respect to their activities in U.S. commerce, from 
furnishing certain information. It is the Department's position that the 
required nexus with U.S. commerce is established when the furnishing of 
information itself occurs in U.S. commerce. Even when the furnishing of 
information is not itself in U.S. commerce, however, the necessary 
relationship to U.S. commerce will be established if the furnishing of 
information relates to particular transactions in U.S. commerce or to 
anticipated transactions in U.S. commerce. See, e.g. Sec. 760.2(d), 
examples (vii), (ix) and (xii) of this part.
    The simplest situation occurs where a U.S. person located in the 
United States furnishes information to a boycotting country. The 
transfer of information from the United States to a foreign country is 
itself an activity in U.S. commerce. See Sec. 760.1(d)(1)(iv) of this 
part. In some circumstances, the furnishing of information by a U.S. 
person located outside the United States may also be an activity in U.S. 
commerce. For example, the controlled foreign subsidiary of a domestic 
concern might furnish to a boycotting country information the subsidiary 
obtained from the U.S.-located parent for that purpose. The subsidiary's 
furnishing would, in these circumstances, constitute an activity in U.S. 
commerce. See Sec. 760.1(d)(8) of this part.
    Where the furnishing of information is not itself in U.S. commerce, 
the U.S. commerce requirement may be satisfied by the fact that the 
furnishing is related to an activity in U.S. foreign or domestic 
commerce. For example, if a shipment of goods by a controlled-in-fact 
foreign subsidiary of a U.S. company to a boycotting country gives rise 
to an inquiry from the boycotting country concerning the subsidiary's 
relationship with another firm, the Department regards any responsive 
furnishing of information by the subsidiary as related to the shipment 
giving rise to the inquiry. If the shipment is in U.S. foreign or 
domestic commerce, as defined by the regulations, then the Department 
regards the furnishing to be related to an activity in U.S. commerce and 
subject to the antiboycott regulations, whether or not the furnishing 
itself is in U.S. commerce.
    In some circumstances, the Department may regard a furnishing of 
information as related to a broader category of present and prospective 
transactions. For example, if a controlled-in-fact foreign subsidiary of 
a U.S. company is requested to furnish information about its commercial 
dealings and it appears that failure to respond will result in its 
blacklisting, any responsive furnishing of information will be regarded 
by the Department as relating to all of the subsidiary's present and 
anticipated business activities with the inquiring boycotting country. 
Accordingly, if any of these present or anticipated business activities 
are in U.S. commerce, the Department will regard the furnishing as 
related to an activity in U.S. commerce and subject to the antiboycott 
regulations.
    In deciding whether anticipated business activities will be in U.S. 
commerce, the Department will consider all of the surrounding 
circumstances. Particular attention will be given to the history of the 
U.S. person's business activities with the boycotting country and 
others, the nature of any activities occurring after a furnishing of 
information occurs and any relevant economic or commercial factors which 
may affect these activities.
    For example, if a U.S. person has no activities with the boycotting 
country at present but all of its other international activities are in 
U.S. commerce, as defined by the Regulations, then the Department is 
likely to regard any furnishing of information by that person for the 
purpose of securing entry into the boycotting country's market as 
relating to anticipated activities in U.S. commerce and subject to the 
antiboycott regulations. Similarly, if subsequent to the furnishing of 
information to the boycotting country for the purpose of securing entry 
into its markets, the U.S. person engages in transactions

[[Page 412]]

with that country which are in U.S. commerce, the Department is likely 
to regard the furnishing as related to an activity in U.S. commerce and 
subject to the antiboycott regulations.

              Supplement No. 15 to Part 760--Interpretation

    Section 760.2 (c), (d), and (e) of this part prohibits United States 
persons from furnishing certain types of information with intent to 
comply with, further, or support an unsanctioned foreign boycott against 
a country friendly to the United States. The Department has been asked 
whether prohibited information may be transmitted--that is, passed to 
others by a United States person who has not directly or indirectly 
authored the information--without such transmission constituting a 
furnishing of information in violation of Sec. 760.2 (c), (d), and (e) 
of this part. Throughout this interpretation, ``transmission'' is 
defined as the passing on by one person of information initially 
authored by another. The Department believes that there is no 
distinction in the EAR between transmitting (as defined above) and 
furnishing prohibited information under the EAR and that the 
transmission of prohibited information with the requisite boycott intent 
is a furnishing of information violative of the EAR. At the same time, 
however, the circumstances relating to the transmitting party's 
involvement will be carefully considered in determining whether that 
party intended to comply with, further, or support an unsanctioned 
foreign boycott.
    The EAR does not deal specifically with the relationship between 
transmitting and furnishing. However, the restrictions in the EAR on 
responses to boycott-related conditions, both by direct and indirect 
actions and whether by primary parties or intermediaries, indicate that 
U.S. persons who simply transmit prohibited information are to be 
treated the same under the EAR as those who both author and furnish 
prohibited information. This has been the Department's position in 
enforcement actions it has brought.
    The few references in the EAR to the transmission of information by 
third parties are consistent with this position. Two examples, both 
relating to the prohibition against the furnishing of information about 
U.S. persons' race, religion, sex, or national origin (Sec. 760.2(c) of 
this part), deal explicitly with transmitting information. These 
examples (Sec. 760.2(c) of this part, example (v), and Sec. 760.3(f) of 
this part, example (vi)) show that, in certain cases, when furnishing 
certain information is permissible, either because it is not within a 
prohibition or is excepted from a prohibition, transmitting it is also 
permissible. These examples concern information that may be furnished by 
individuals about themselves or their families. The examples show that 
employers may transmit to a boycotting country visa applications or 
forms containing information about an employee's race, religion, sex, or 
national origin if that employee is the source of the information and 
authorizes its transmission. In other words, within the limits of 
ministerial action set forth in these examples, employees' actions in 
transmitting information are protected by the exception available to the 
employee. The distinction between permissible and prohibited behavior 
rests not on the definitional distinction between furnishing and 
transmitting, but on the excepted nature of the information furnished by 
the employee. The information originating from the employee does not 
lose its excepted character because it is transmitted by the employer.
    The Department's position regarding the furnishing and transmission 
of certificates of one's own blacklist status rests on a similar basis 
and does not support the contention that third parties may transmit 
prohibited information authored by another. Such self-certifications do 
not violate any prohibitions in the EAR (see Supplement Nos. 1(I)(B), 2, 
and 5(A)(2); Sec. 760.2(f), example (xiv)). It is the Department's 
position that it is not prohibited for U.S. persons to transmit such 
self-certifications completed by others. Once again, because furnishing 
the self-certification is not prohibited, third parties who transmit the 
self-certifications offend no prohibition. On the other hand, if a third 
party authored information about another's blacklist status, the act of 
transmitting that information would be prohibited.
    A third example in the EAR (Sec. 760.5, example (xiv) of this part), 
which also concerns a permissible transmission of boycott-related 
information, does not support the theory that one may transmit 
prohibited information authored by another. This example deals with the 
reporting requirements in Sec. 760.5 of this part--not the 
prohibitions--and merely illustrates that a person who receives and 
transmits a self-certification has not received a reportable request.
    It is also the Department's position that a U.S. person violates the 
prohibitions against furnishing information by transmitting prohibited 
information even if that person has received no reportable request in 
the transaction. For example, where documents accompanying a letter of 
credit contain prohibited information, a negotiating bank that transmits 
the documents, with the requisite boycott intent, to an issuing bank has 
not received a reportable request, but has furnished prohibited 
information.
    While the Department does not regard the suggested distinction 
between transmitting

[[Page 413]]

and furnishing information as meaningful, the facts relating to the 
third party's involvement may be important in determining whether that 
party furnished information with the required intent to comply with, 
further, or support an unsanctioned foreign boycott. For example, if it 
is a standard business practice for one participant in a transaction to 
obtain and pass on, without examination, documents prepared by another 
party, it might be difficult to maintain that the first participant 
intended to comply with a boycott by passing on information contained in 
the unexamined documents. Resolution of such intent questions, however, 
depends upon an analysis of the individual facts and circumstances of 
the transaction and the Department will continue to engage in such 
analysis on a case-by-case basis.
    This interpretation, like all others issued by the Department 
discussing applications of the antiboycott provisions of the EAR, should 
be read narrowly. Circumstances that differ in any material way from 
those discussed in this interpretation will be considered under the 
applicable provisions of the Regulations.

              Supplement No. 16 to Part 760--Interpretation

    Pursuant to Articles 5, 7, and 26 of the Treaty of Peace between the 
State of Israel and the Hashemite Kingdom of Jordan and implementing 
legislation enacted by Jordan, Jordan's participation in the Arab 
economic boycott of Israel was formally terminated on August 16, 1995.
    On the basis of this action, it is the Department's position that 
certain requests for information, action or agreement from Jordan which 
were considered boycott-related by implication now cannot be presumed 
boycott-related and thus would not be prohibited or reportable under the 
regulations. For example, a request that an exporter certify that the 
vessel on which it is shipping its goods is eligible to enter Hashemite 
Kingdom of Jordan ports has been considered a boycott-related request 
that the exporter could not comply with because Jordan has had a boycott 
in force against Israel. Such a request from Jordan after August 16, 
1995 would not be presumed boycott-related because the underlying 
boycott requirement/basis for the certification has been eliminated. 
Similarly, a U.S. company would not be prohibited from complying with a 
request received from Jordanian government officials to furnish the 
place of birth of employees the company is seeking to take to Jordan 
because there is no underlying boycott law or policy that would give 
rise to a presumption that the request was boycott-related.
    U.S. persons are reminded that requests that are on their face 
boycott-related or that are for action obviously in furtherance or 
support of an unsanctioned foreign boycott are subject to the 
regulations, irrespective of the country of origin. For example, 
requests containing references to ``blacklisted companies'', ``Israel 
boycott list'', ``non-Israeli goods'' or other phrases or words 
indicating boycott purpose would be subject to the appropriate 
provisions of the Department's antiboycott regulations.



PART 762--RECORDKEEPING--Table of Contents




Sec.
762.1  Scope.
762.2  Records to be retained.
762.3  Records exempt from recordkeeping requirements.
762.4  Original records required.
762.5  Reproduction of original records.
762.6  Period of retention.
762.7  Producing and inspecting records.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 FR 
42767, August 17, 1995).

    Source: 61 FR 12900, Mar. 25, 1996, unless otherwise noted.



Sec. 762.1  Scope.

    In this part, references to the EAR are references to 15 CFR chapter 
VII, subchapter C.
    (a) Transactions subject to this part. The recordkeeping provisions 
of this part apply to the following transactions:
    (1) Transactions involving restrictive trade practices or boycotts 
described in part 760 of the EAR;
    (2) Exports of commodities, software, or technology from the United 
States and any known reexports, transshipment, or diversions of items 
exported from the United States;
    (3) Exports to Canada, if, at any stage in the transaction, it 
appears that a person in a country other than the United States or 
Canada has an interest therein, or that the item involved is to be 
reexported, transshipped, or diverted from Canada to another foreign 
country; or
    (4) Any other transactions subject to the EAR, including, but not 
limited to, the prohibitions against servicing, forwarding and other 
actions for or on behalf of end-users of proliferation concern contained 
in Secs. 734.2(b)(7) and 744.6 of the EAR. This part also applies to all 
negotiations connected with those transactions, except that for export

[[Page 414]]

control matters a mere preliminary inquiry or offer to do business and 
negative response thereto shall not constitute negotiations, unless the 
inquiry or offer to do business proposes a transaction that a reasonably 
prudent exporter would believe likely to lead to a violation of the EAA, 
the EAR or any order, license or authorization issued thereunder.
    (b) Persons subject to this part. Any person subject to the 
jurisdiction of the United States who, as principal or agent (including 
a forwarding agent), participates in any transaction described in 
paragraph (a) of this section, and any person in the United States or 
abroad who is required to make and maintain records under any provision 
of the EAR, shall keep and maintain all records described in Sec. 762.2 
of this part that are made or obtained by that person and shall produce 
them in a manner provided by Sec. 762.6 of this part.



Sec. 762.2  Records to be retained.

    (a) Records required to be retained. The records required to be 
retained under this part 762 include the following:
    (1) Export control documents, as defined in part 772 of the EAR;
    (2) Memoranda;
    (3) Notes;
    (4) Correspondence;
    (5) Contracts;
    (6) Invitations to bid;
    (7) Books of account;
    (8) Financial records;
    (9) Restrictive trade practice or boycott documents and reports, and
    (10) Other records pertaining to the types of transactions described 
in Sec. 762.1(a) of this part, which are made or obtained by a person 
described in Sec. 762.1(b) of this part.
    (b) Records retention references. Paragraph (a) of this section 
describes records that are required to be retained. Other parts, 
sections, or supplements of the EAR which require the retention of 
records or contain recordkeeping provisions, include, but are not 
limited to the following:
    (1) Part 736, General Prohibitions;
    (2) Sec. 732.6, Steps for other requirements;
    (3) Sec. 740.1, Introduction (to License Exceptions);
    (4) Sec. 742.12(a)(3), High Performance Computers;
    (5) Supplement No. 3 to part 742 High Performance Computers, 
Safeguards and Related Information;
    (6) Sec. 742.15;
    (7) Sec. 740.7, Humanitarian donations (NEED);
    (8) Sec. 748.4(a), Disclosure and substantiation of facts on license 
applications;
    (9) Sec. 748.6, General instructions for license applications;
    (10) Sec. 748.9, Support documents for license applications;
    (11) Sec. 748.10, Import and End-user Certificates;
    (12) Sec. 748.11, Statement by Ultimate Consignee and Purchaser;
    (13) Sec. 748.13, Delivery Verification (DV);
    (14) Sec. 748.2(c), Obtaining forms; mailing addresses;
    (15) Sec. 750.7, Issuance of license;
    (16) Sec. 750.8, Revocation or suspension of license;
    (17) Sec. 750.9, Duplicate licenses;
    (18) Sec. 750.10, Transfer of licenses for export;
    (19) Sec. 752.7, Direct shipment to customers;
    (20) Sec. 752.9, Action on SCL applications;
    (21) Sec. 752.10, Changes to the SCL;
    (22) Sec. 752.11, Internal Control Programs;
    (23) Sec. 752.12, Recordkeeping requirements;
    (24) Sec. 752.13, Inspection of records;
    (25) Sec. 752.14, System reviews;
    (26) Sec. 752.15, Export clearance;
    (27) Sec. 754.2(j)(3), Recordkeeping requirements for deep water 
ballast exchange.
    (28) Sec. 754.4, Unprocessed western red cedar;
    (29) Sec. 758.1(b)(3), Record and proof of agent's authority;
    (30) Sec. 758.3, Shipper's Export Declaration;
    (31) Sec. 758.6, Destination control statements;
    (32) Sec. 760.6, Restrictive Trade Practices and Boycotts;
    (33) Sec. 762.2, Records to be retained;
    (34) Sec. 764.2, Violations;
    (35) Sec. 764.5, Voluntary self-disclosure; and

[[Page 415]]

    (36) Sec. 766.10, Subpoenas.

[61 FR 12900, Mar. 25, 1996, as amended at 61 FR 27258, May 31, 1996; 61 
FR 65466, Dec. 13, 1996]



Sec. 762.3  Records exempt from recordkeeping requirements.

    (a) The following types of records have been determined to be exempt 
from the recordkeeping requirement procedures:
    (1) Export information page;
    (2) Special export file list;
    (3) Vessel log from freight forwarder;
    (4) Inspection certificate;
    (5) Warranty certificate;
    (6) Guarantee certificate;
    (7) Parking material certificate;
    (8) Goods quality certificate;
    (9) Notification to customer of advance meeting;
    (10) Letter of indemnity;
    (11) Financial release form;
    (12) Financial hold form;
    (13) Export parts shipping problem form;
    (14) Draft number log;
    (15) Expense invoice mailing log;
    (16) Financial status report;
    (17) Bank release of guarantees;
    (18) Cash sheet;
    (19) Commission payment back-up;
    (20) Commissions payable worksheet;
    (21) Commissions payable control;
    (22) Check request forms;
    (23) Accounts receivable correction form;
    (24) Check request register;
    (25) Commission payment printout;
    (26) Engineering fees invoice;
    (27) Foreign tax receipt;
    (28) Individual customer credit status;
    (29) Request for export customers code forms;
    (30) Acknowledgement for receipt of funds;
    (31) Escalation development form;
    (32) Summary quote;
    (33) Purchase order review form;
    (34) Proposal extensions;
    (35) Financial proposal to export customers;
and
    (36) Sales summaries.
    (b) [Reserved]



Sec. 762.4   Original records required.

    The regulated person must maintain the original records in the form 
in which that person receives or creates them unless that person meets 
all of the conditions of Sec. 762.5 of this part relating to 
reproduction of records. If the original record does not meet the 
standards of legibility and readability described in Sec. 762.5 of this 
part and the regulated person intends to rely on that record to meet the 
recordkeeping requirements of the EAR, that person must retain the 
original record.



Sec. 762.5   Reproduction of original records.

    (a) The regulated person may maintain reproductions instead of the 
original records provided all of the requirements of paragraph (b) of 
this section are met.
    (b) In order to maintain the records required by Sec. 762.2 of this 
part, the regulated persons defined in Sec. 762.1 of this part may use 
any photographic, photostatic, miniature photographic, micrographic, 
automated archival storage, or other process that completely, 
accurately, legibly and durably reproduces the original records (whether 
on paper, microfilm, or through electronic digital storage techniques). 
The process must meet all of the following requirements, which are 
applicable to all systems:
    (1) The system must be capable of reproducing all records on paper.
    (2) The system must record and be able to reproduce all marks, 
information, and other characteristics of the original record, including 
both obverse and reverse sides of paper documents in legible form.
    (3) When displayed on a viewer, monitor, or reproduced on paper, the 
records must exhibit a high degree of legibility and readability. (For 
purposes of this section, legible and legibility mean the quality of a 
letter or numeral that enable the observer to identify it positively and 
quickly to the exclusion of all other letters or numerals. Readable and 
readability mean the quality of a group of letters or numerals being 
recognized as complete words or numbers.)
    (4) The system must preserve the initial image (including both 
obverse and

[[Page 416]]

reverse sides of paper documents) and record all changes, who made them 
and when they were made. This information must be stored in such a 
manner that none of it may be altered once it is initially recorded.
    (5) The regulated person must establish written procedures to 
identify the individuals who are responsible for the operation, use and 
maintenance of the system.
    (6) The regulated person must establish written procedures for 
inspection and quality assurance of records in the system and document 
the implementation of those procedures.
    (7) The system must be complete and contain all records required to 
be kept by this part or the regulated person must provide a method for 
correlating, identifying and locating records relating to the same 
transaction(s) that are kept in other record keeping systems.
    (8) The regulated person must keep a record of where, when, by whom, 
and on what equipment the records and other information were entered 
into the system.
    (9) Upon request by the Office of Export Enforcement, the Office of 
Antiboycott Compliance, or any other agency of competent jurisdiction, 
the regulated person must furnish, at the examination site, the records, 
the equipment and, if necessary, knowledgeable personnel for locating, 
reading, and reproducing any record in the system.
    (c) Requirements applicable to systems based on the storage of 
digital images. For systems based on the storage of digital images, the 
system must provide accessibility to any digital image in the system. 
With respect to records of transactions, including those involving 
restrictive trade practices or boycott requirements or requests. The 
system must be able to locate and reproduce all records relating to a 
particular transaction based on any one of the following criteria:
    (1) The name(s) of the parties to the transaction;
    (2) Any country(ies) connected with the transaction; or
    (3) A document reference number that was on any original document.
    (d) Requirements applicable to a system based on photographic 
processes. For systems based on photographic, photostatic, or miniature 
photographic processes, the regulated person must maintain a detailed 
index of all records in the system that is arranged in such a manner as 
to allow immediate location of any particular record in the system.



Sec. 762.6  Period of retention.

    (a) Five year retention period. All records required to be kept by 
the EAR must be retained for five years from the latest of the following 
times:
    (1) The export from the United States of the item involved in the 
transaction to which the records pertain or the provision of financing, 
transporting or other service for or on behalf of end-users of 
proliferation concern as described in Secs. 736.2(b)(7) and 744.6 of the 
EAR;
    (2) Any known reexport, transshipment, or diversion of such item;
    (3) Any other termination of the transaction, whether formally in 
writing or by any other means; or
    (4) In the case of records of pertaining to transactions involving 
restrictive trade practices or boycotts described in part 760 of the 
EAR, the date the regulated person receives the boycott-related request 
or requirement.
    (b) Destruction or disposal of records. If the Bureau of Export 
Administration or any other government agency makes a formal or informal 
request for a certain record or records, such record or records may not 
be destroyed or disposed of without the written authorization of the 
agency concerned. This prohibition applies to records pertaining to 
voluntary disclosures made to BXA in accordance with 
Sec. 765.5(c)(4)(ii) and other records even if such records have been 
retained for a period of time exceeding that required by paragraph (a) 
of this section.



Sec. 762.7  Producing and inspecting records.

    (a) Persons located in the United States. Persons located in the 
United States may be asked to produce records that are required to be 
kept by any provision of the EAR, or any license, order, or 
authorization issued thereunder and to make them available for 
inspection and copying by any authorized agent, official, or employee of 
the Bureau of

[[Page 417]]

Export Administration, the U.S. Customs Service, or any other agency of 
the U.S. Government, without any charge or expense to such agent, 
official, or employee. The Office of Export Enforcement and the Office 
of Antiboycott Compliance encourage voluntary cooperation with such 
requests. When voluntary cooperation is not forthcoming, the Office of 
Export Enforcement and the Office of Antiboycott Compliance are 
authorized to issue subpoenas for books, records, and other writings. In 
instances where a person does not comply with a subpoena, the Department 
of Commerce may petition a district court to have a subpoena enforced.
    (b) Persons located outside of the United States. Persons located 
outside of the United States that are required to keep records by any 
provision of the EAR or by any license, order, or authorization issued 
thereunder shall produce all records or reproductions of records 
required to be kept, and make them available for inspection and copying 
upon request by an authorized agent, official, or employee of the Bureau 
of Export Administration, the U.S. Customs Service, or a Foreign Service 
post, or by any other accredited representative of the U.S. Government, 
without any charge or expense to such agent, official or employee.



PART 764--ENFORCEMENT AND PROTECTIVE MEASURES--Table of Contents




Sec.
764.1  Introduction.
764.2  Violations.
764.3  Sanctions.
764.4  Reporting of violations.
764.5  Voluntary self-disclosure.
764.6  Protective administrative measures.

Supplement No. 1 to Part 764--Standard Terms of Orders Denying Export 
          Privileges
Supplement No. 2 to Part 764--Denied Persons List

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 FR 
42767, August 17, 1995).

    Source: 61 FR 12902, Mar. 25, 1996, unless otherwise noted.



Sec. 764.1  Introduction.

    In this part, references to the EAR are references to 15 CFR chapter 
VII, subchapter C. This part specifies conduct that constitutes a 
violation of the Export Administration Act (EAA) and/or the Export 
Administration Regulations (EAR) and the sanctions that may be imposed 
for such violations. Antiboycott violations are described in part 760 of 
the EAR, and the violations and sanctions specified in part 764 also 
apply to conduct relating to part 760, unless otherwise stated. This 
part describes administrative sanctions that may be imposed by the 
Bureau of Export Administration (BXA). This part also describes criminal 
sanctions that may be imposed by a United States court and other 
sanctions that are neither administrative nor criminal. Information is 
provided on how to report and disclose violations. Finally, this part 
identifies protective administrative measures that BXA may take in the 
exercise of its regulatory authority.



Sec. 764.2  Violations.

    (a) Engaging in prohibited conduct. No person may engage in any 
conduct prohibited by or contrary to, or refrain from engaging in any 
conduct required by, the EAA, the EAR, or any order, license or 
authorization issued thereunder.
    (b) Causing, aiding, or abetting a violation. No person may cause or 
aid, abet, counsel, command, induce, procure, or permit the doing of any 
act prohibited, or the omission of any act required, by the EAA, the 
EAR, or any order, license or authorization issued thereunder.
    (c) Solicitation and attempt. No person may solicit or attempt a 
violation of the EAA, the EAR, or any order, license or authorization 
issued thereunder.
    (d) Conspiracy. No person may conspire or act in concert with one or 
more persons in any manner or for any purpose to bring about or to do 
any act that constitutes a violation of the EAA, the EAR, or any order, 
license or authorization issued thereunder.
    (e) Acting with knowledge of a violation. No person may order, buy, 
remove, conceal, store, use, sell, loan,

[[Page 418]]

dispose of, transfer, transport, finance, forward, or otherwise service, 
in whole or in part, any item exported or to be exported from the United 
States, or that is otherwise subject to the EAR, with knowledge that a 
violation of the EAA, the EAR, or any order, license or authorization 
issued thereunder, has occurred, is about to occur, or is intended to 
occur in connection with the item.
    (f) Possession with intent to export illegally. No person may 
possess any item controlled for national security or foreign policy 
reasons under sections 5 or 6 of the EAA:
    (1) With intent to export such item in violation of the EAA, the 
EAR, or any order, license or authorization issued thereunder; or
    (2) With knowledge or reason to believe that the item would be so 
exported.
    (g) Misrepresentation and concealment of facts. (1) No person may 
make any false or misleading representation, statement, or 
certification, or falsify or conceal any material fact, either directly 
to BXA, the United States Customs Service, or an official of any other 
United States agency, or indirectly through any other person:
    (i) In the course of an investigation or other action subject to the 
EAR; or
    (ii) In connection with the preparation, submission, issuance, use, 
or maintenance of any export control document or restrictive trade 
practice or boycott request report, as defined in Sec. 760.6 of the EAR; 
or
    (iii) For the purpose of or in connection with effecting an export, 
reexport or other activity subject to the EAR.
    (2) All representations, statements, and certifications made by any 
person are deemed to be continuing in effect. Every person who has made 
any representation, statement, or certification must notify BXA and any 
other relevant agency, in writing, of any change of any material fact or 
intention from that previously represented, stated, or certified, 
immediately upon receipt of any information that would lead a reasonably 
prudent person to know that a change of material fact or intention has 
occurred or may occur in the future.
    (h) Evasion. No person may engage in any transaction or take any 
other action with intent to evade the provisions of the EAA, the EAR, or 
any order, license or authorization issued thereunder.
    (i) Failure to comply with reporting, recordkeeping requirements. No 
person may fail or refuse to comply with any reporting or recordkeeping 
requirement of the EAR or of any order, license or authorization issued 
thereunder.
    (j) License alteration. Except as specifically authorized in the EAR 
or in writing by BXA, no person may alter any license, authorization, 
export control document, or order issued under the EAR.
    (k) Acting contrary to the terms of a denial order. No person may 
take any action that is prohibited by a denial order. See 
Sec. 764.3(a)(2) of this part.



Sec. 764.3  Sanctions.

    (a) Administrative.\1\ Violations of the EAA, the EAR, or any order, 
license or authorization issued thereunder are subject to the 
administrative sanctions described in this section and to any other 
liability, sanction, or penalty available under law. The protective 
administrative measures that are described in Sec. 764.6 of this part 
are distinct from administrative sanctions.
---------------------------------------------------------------------------

    \1\ In the event that any part of the EAR is not under the authority 
of the EAA, sanctions shall be limited to those provided for by such 
other authority, but the provisions of this part and of part 766 of the 
EAR shall apply insofar as not inconsistent with that other authority.
---------------------------------------------------------------------------

    (1) Civil penalty. (i) A civil penalty not to exceed $10,000 may be 
imposed for each violation, except that a civil penalty not to exceed 
$100,000 may be imposed for each violation involving national security 
controls imposed under section 5 of the EAA.
    (ii) The payment of any civil penalty may be made a condition, for a 
period not exceeding one year after the imposition of such penalty, to 
the granting, restoration, or continuing validity of any export license, 
License Exception, permission, or privilege granted or to be granted to 
the person upon whom such penalty is imposed.

[[Page 419]]

    (iii) The payment of any civil penalty may be deferred or suspended 
in whole or in part during any probation period that may be imposed. 
Such deferral or suspension shall not bar the collection of the penalty 
if the conditions of the deferral, suspension, or probation are not 
fulfilled.
    (2) Denial of export privileges. An order may be issued that 
restricts the ability of the named persons to engage in export and 
reexport transactions involving items subject to the EAR, or that 
restricts access by named persons to items subject to the EAR. An order 
denying export privileges may be imposed either as a sanction for a 
violation specified in this part or as a protective administrative 
measure described in Sec. 764.6(c) or (d) of this part. An order denying 
export privileges may suspend or revoke any or all outstanding licenses 
issued under the EAR to a person named in the denial order or in which 
such person has an interest, may deny or restrict exports and reexports 
by or to such person of any item subject to the EAR, and may restrict 
dealings in which that person may benefit from any export or reexport of 
such items. The standard terms of a denial order are set forth in 
Supplement No. 1 to this part. A non-standard denial order, narrower in 
scope, may be issued. Authorization to engage in actions otherwise 
prohibited by a denial order may be given by the Office of Exporter 
Services, in consultation with the Office of Export Enforcement, 
following application by a person named in the denial order or by a 
person seeking permission to deal with a named person.
    (3) Exclusion from practice. Any person acting as an attorney, 
accountant, consultant, freight forwarder, or in any other 
representative capacity for any license application or other matter 
before BXA may be excluded by order from any or all such activities 
before BXA.
    (b) Criminal.\2\ (1) General. Except as provided in paragraph (b)(2) 
of this section, whoever knowingly violates or conspires to or attempts 
to violate the EAA, the EAR, or any order or license issued thereunder, 
shall be fined not more than five times the value of the exports 
involved or $50,000, whichever is greater, or imprisoned not more than 
five years, or both.
---------------------------------------------------------------------------

    \2\ In the event that any part of the EAR is not under the authority 
of the EAA, sanctions shall be limited to those provided for by such 
other authority or by 18 U.S.C. 3571, a criminal code provision that 
establishes a maximum criminal fine for a felony that is the greater of 
the amount provided by the statute that was violated, or an amount not 
more than $500,000 for an organization. The Federal Sentencing 
Guidelines found in Sec. 2M5.1 of Appendix 4 to Title 18 of the United 
States Code apply, to the extent followed by the court, to sentencing 
for convictions for violating the EAA.
---------------------------------------------------------------------------

    (2) Willful violations. (i) Whoever willfully violates or conspires 
to or attempts to violate any provision of the EAA, the EAR, or any 
order or license issued thereunder, with knowledge that the exports 
involved will be used for the benefit of, or that the destination or 
intended destination of the items involved is, any controlled country or 
any country to which exports are controlled for foreign policy purposes, 
except in the case of an individual, shall be fined not more than five 
times the value of the export involved or $1,000,000, whichever is 
greater; and, in the case of an individual, shall be fined not more than 
$250,000, or imprisoned not more than 10 years, or both.
    (ii) Any person who is issued a license under the EAA or the EAR for 
the export of any items to a controlled country and who, with knowledge 
that such export is being used by such controlled country for military 
or intelligence gathering purposes contrary to the conditions under 
which the license was issued, willfully fails to report such use to the 
Secretary of Defense, except in the case of an individual, shall be 
fined not more than five times the value of the exports involved or 
$1,000,000, whichever is greater; and, in the case of an individual, 
shall be fined not more than $250,000, or imprisoned not more than five 
years, or both.
    (iii) Any person who possesses any item with intent to export such 
item in violation of an export control imposed under sections 5 or 6 of 
the EAA, the EAR, or any order or license issued thereunder, or knowing 
or having reason to believe that the item would be

[[Page 420]]

so exported, shall, in the case of a violation of an export control 
imposed under section 5 of the EAA (or the EAR, or any order or license 
issued thereunder with respect to such control), be subject to the 
penalties set forth in paragraph (b)(2)(i) of this section and shall, in 
the case of a violation of an export control imposed under section 6 of 
the EAA (or the EAR, or any order or license issued thereunder with 
respect to such control), be subject to the penalties set forth in 
paragraph (b)(1) of this section.
    (iv) Any person who takes any action with intent to evade the 
provisions of the EAA, the EAR, or any order or license issued 
thereunder, shall be subject to the penalties set forth in paragraph 
(b)(1) of this section, except that in the case of an evasion of an 
export control imposed under sections 5 or 6 of the EAA (or the EAR, or 
any order or license issued thereunder with respect to such control), 
such person shall be subject to the penalties set forth in paragraph 
(b)(2)(i) of this section.
    (3) Other criminal sanctions. Conduct that constitutes a violation 
of the EAA, the EAR, or any order, license or authorization issued 
thereunder, or that occurs in connection with such a violation, may also 
be prosecuted under other provisions of law, including 18 U.S.C. 371 
(conspiracy), 18 U.S.C. 1001 (false statements), 18 U.S.C. 1341, 1343, 
and 1346 (mail and wire fraud), and 18 U.S.C. 1956 and 1957 (money 
laundering).
    (c) Other sanctions. Conduct that violates the EAA, the EAR, or any 
order, license or authorization issued thereunder, and other conduct 
specified in the EAA may be subject to sanctions or other measures in 
addition to criminal and administrative sanctions under the EAA or EAR. 
These include, but are not limited to, the following:
    (1) Statutory sanctions. Statutorily-mandated sanctions may be 
imposed on account of specified conduct related to weapons 
proliferation. Such statutory sanctions are not civil or criminal 
penalties, but restrict imports and procurement (See section 11A of the 
EAA, Multilateral Export Control Violations, and section 11C of the EAA, 
Chemical and Biological Weapons Proliferation), or restrict export 
licenses (See section 11B of the EAA, Missile Proliferation Violations, 
and the Iran-Iraq Arms Non-Proliferation Act of 1992).
    (2) Other sanctions and measures--(i) Seizure and forfeiture. Items 
that have been, are being, or are intended to be, exported or shipped 
from or taken out of the United States in violation of the EAA, the EAR, 
or any order, license or authorization issued thereunder, are subject to 
being seized and detained as are the vessels, vehicles, and aircraft 
carrying such items. Seized items are subject to forfeiture. (50 U.S.C. 
app. 2411(g); 22 U.S.C. 401.)
    (ii) Cross-debarment. (A) The Department of State may deny licenses 
or approvals for the export or reexport of defense articles and defense 
services controlled under the Arms Export Control Act to persons 
indicted or convicted of specified criminal offenses, including 
violations of the EAA, or to persons denied export privileges by BXA or 
another agency. (22 CFR 126.7(a) and 127.11(a).)
    (B) The Department of Defense, among other agencies, may suspend the 
right of any person to contract with the United States Government based 
on export control violations. (Federal Acquisition Regulations 9.407-2.)



Sec. 764.4  Reporting of violations.

    (a) Where to report. If a person learns that an export control 
violation of the EAR has occurred or may occur, that person may notify:

Office of Export Enforcement, Bureau of Export Administration,U.S. 
Department of Commerce, 14th Street and Constitution Avenue, N.W., Room 
H-4520, Washington, D.C. 20230, Tel: (202) 482-1208, Facsimile: (202) 
482-0964

or, for violations of part 760 of the EAR:

Office of Antiboycott Compliance, Bureau of Export Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, N.W., Room 
H-6099C, Washington, D.C. 20230, Tel: (202) 482-2381, Facsimile: (202) 
482-0913.

    (b) Failure to report violations. Failure to report potential 
violations may result in the unwarranted issuance of licenses or exports 
without the required licenses to the detriment of the interests of the 
United States.

[[Page 421]]

    (c) Reporting requirement distinguished. The reporting provisions in 
paragraph (a) of this section are not ``reporting requirements'' within 
the meaning of Sec. 764.2(i) of this part.



Sec. 764.5  Voluntary self-disclosure.

    (a) General policy. BXA strongly encourages disclosure to OEE if you 
believe that you may have violated the EAR, or any order, license or 
authorization issued thereunder. Voluntary self-disclosure is a 
mitigating factor in determining what administrative sanctions, if any, 
will be sought by OEE.
    (b) Limitations. (1) The provisions of this section do not apply to 
disclosures of violations relating to part 760 of the EAR.
    (2) The provisions of this section apply only when information is 
provided to OEE for its review in determining whether to take 
administrative action under part 766 of the EAR for violations of the 
export control provisions of the EAR.
    (3) The provisions of this section apply only when information is 
received by OEE for review prior to the time that OEE, or any other 
agency of the United States Government, has learned the same or 
substantially similar information from another source and has commenced 
an investigation or inquiry in connection with that information.
    (4) While voluntary self-disclosure is a mitigating factor in 
determining what administrative sanctions, if any, will be sought by 
OEE, it is a factor that is considered together with all other factors 
in a case. The weight given to voluntary self-disclosure is solely 
within the discretion of OEE, and the mitigating effect of voluntary 
self-disclosure may be outweighed by aggravating factors. Voluntary 
self-disclosure does not prevent transactions from being referred to the 
Department of Justice for criminal prosecution. In such a case, OEE 
would notify the Department of Justice of the voluntary self-disclosure, 
but the consideration of that factor is within the discretion of the 
Department of Justice.
    (5) A firm will not be deemed to have made a disclosure under this 
section unless the individual making the disclosure did so with the full 
knowledge and authorization of the firm's senior management.
    (6) The provisions of this section do not, nor should they be relied 
on to, create, confer, or grant any rights, benefits, privileges, or 
protection enforceable at law or in equity by any person, business, or 
entity in any civil, criminal, administrative, or other matter.
    (c) Information to be provided. (1) General. Any person wanting to 
disclose information that constitutes a voluntary self-disclosure 
should, in the manner outlined below, initially notify OEE as soon as 
possible after violations are discovered, and then conduct a thorough 
review of all export-related transactions where violations are 
suspected.
    (2) Initial notification. (i) The initial notification should be in 
writing and be sent to one of the addresses in Sec. 764.5(c)(7) of this 
part. The notification should include the name of the person making the 
disclosure and a brief description of the suspected violations. The 
notification should describe the general nature and extent of the 
violations. If the person making the disclosure subsequently completes 
the narrative account required by Sec. 764.5(c)(3) of this part, the 
disclosure will be deemed to have been made on the date of the initial 
notification for purposes of Sec. 764.5(b)(3) of this part.
    (ii) OEE recognizes that there may be situations where it will not 
be practical to make an initial notification in writing. For example, 
written notification may not be practical if a shipment leaves the 
United States without the required license, yet there is still an 
opportunity to prevent acquisition of the items by unauthorized persons. 
In such situations, OEE should be contacted promptly at one of the 
offices listed in Sec. 764.5(c)(7) of this part.
    (3) Narrative account. After the initial notification, a thorough 
review should be conducted of all export-related transactions where 
possible violations are suspected. OEE recommends that the review cover 
a period of five years prior to the date of the initial notification. If 
your review goes back less than five years, you risk failing to discover 
violations that may later become the subject of an investigation. Any 
violations not voluntarily disclosed do not

[[Page 422]]

receive consideration under this section. However, the failure to make 
such disclosures will not be treated as a separate violation unless some 
other section of the EAR or other provision of law requires disclosure. 
Upon completion of the review, OEE should be furnished with a narrative 
account that sufficiently describes the suspected violations so that 
their nature and gravity can be assessed. The narrative account should 
also describe the nature of the review conducted and measures that may 
have been taken to minimize the likelihood that violations will occur in 
the future. The narrative account should include:
    (i) The kind of violation involved, for example, a shipment without 
the required license or dealing with a party denied export privileges;
    (ii) An explanation of when and how the violations occurred;
    (iii) The complete identities and addresses of all individuals and 
organizations, whether foreign or domestic, involved in the activities 
giving rise to the violations;
    (iv) License numbers;
    (v) The description, quantity, value in U.S. dollars and ECCN or 
other classification of the items involved; and
    (vi) A description of any mitigating circumstances.
    (4) Supporting documentation. (i) The narrative account should be 
accompanied by copies of documents that explain and support it, 
including:
    (A) Licensing documents such as licenses, license applications, 
import certificates and end-user statements;
    (B) Shipping documents such as Shipper's Export Declarations, air 
waybills and bills of lading; and
    (C) Other documents such as letters, facsimiles, telexes and other 
evidence of written or oral communications, internal memoranda, purchase 
orders, invoices, letters of credit and brochures.
    (ii) Any relevant documents not attached to the narrative account 
must be retained by the person making the disclosure until OEE requests 
them, or until a final decision on the disclosed information has been 
made. After a final decision, the documents should be handled in 
accordance with the recordkeeping rules in part 762 of the EAR.
    (5) Certification. A certification must be submitted stating that 
all of the representations made in connection with the voluntary self-
disclosure are true and correct to the best of that person's knowledge 
and belief. Certifications made by a corporation or other organization 
should be signed by an official of the corporation or other organization 
with the authority to do so. Section 764.2(g) of this part, relating to 
false or misleading representations, applies in connection with the 
disclosure of information under this section.
    (6) Oral presentations. OEE believes that oral presentations are 
generally not necessary to augment the written narrative account and 
supporting documentation. If the person making the disclosure believes 
otherwise, a request for a meeting should be included with the 
disclosure.
    (7) Where to make voluntary self-disclosures. The information 
constituting a voluntary self-disclosure or any other correspondence 
pertaining to a voluntary self-disclosure may be submitted to:

Office of Export Enforcement, Director, Intelligence Division, U.S. 
Department of Commerce, P.O. Box 70, Washington, D.C. 20044
Office of Export Enforcement, Director, Intelligence Division, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, N.W., Room 
H-4520,Washington, D.C. 20230, Tel: (202) 482-1208, Facsimile: (202) 
482-0964,

or to any of the following field offices:

Special Agent in Charge, Boston Field Office, Office of Export 
Enforcement, New Boston Federal Building, 10 Causeway Street, Room 350, 
Boston, Massachusetts 02222, Tel: (617) 565-6030, Facsimile: (617) 835-
6039
Special Agent in Charge, Chicago Field Office, Office of Export 
Enforcement, 2400 East Devon, Suite 300, Des Plaines, Illinois 60018, 
Tel: (312) 353-6640, Facsimile: (312) 353-8008
Special Agent in Charge, Dallas Field Office, Office of Export 
Enforcement, 525 Griffin Street, Room 622, Dallas, Texas 75202, Tel: 
(214) 767-9294, Facsimile: (214) 729-9299
Special Agent in Charge, Los Angeles Field Office, Office of Export 
Enforcement, 2601 Main Street, Suite 310, Irvine, California 92714-6299, 
Tel: (714) 251-9001, Facsimile: (714) 791-9103
Special Agent in Charge, Miami Field Office, Office of Export 
Enforcement, 200 East Las

[[Page 423]]

Olas Boulevard, Suite 1260, Fort Lauderdale, Florida 33301, Tel: (954) 
356-7540, Facsimile: (954) 356-7549
Special Agent in Charge, New York Field Office, Office of Export 
Enforcement, Teleport II, 2 Teleport Drive, Staten Island, New York 
10311-1001, Tel: (718) 370-0070, Facsimile: (718) 370-8226
Special Agent in Charge, San Jose Field Office, Office of Export 
Enforcement, 96 North 3rd Street, Suite 250, San Jose, California 95112-
5572, Tel: (408) 291-4204, Facsimile: (408) 291-4320
Special Agent in Charge, Washington, D.C. Field Office, Office of Export 
Enforcement, 8001 Forbes Place, Room 201, Springfield, Virginia 22151-
0838, Tel: (703) 487-4950, Facsimile: (703) 487-4955.

    (d) Action by the Office of Export Enforcement. After OEE has been 
provided with the required narrative and supporting documentation, it 
will acknowledge the disclosure by letter, provide the person making the 
disclosure with a point of contact, and take whatever additional action, 
including further investigation, it deems appropriate. As quickly as the 
facts and circumstances of a given case permit, OEE may take any of the 
following actions:
    (1) Inform the person making the disclosure that, based on the facts 
disclosed, it plans to take no action;
    (2) Issue a warning letter;
    (3) Issue a proposed charging letter pursuant to Sec. 766.18 of the 
EAR and attempt to settle the matter;
    (4) Issue a charging letter pursuant to Sec. 766.3 of the EAR if a 
settlement is not reached; and/or
    (5) Refer the matter to the Department of Justice for criminal 
prosecution.
    (e) Criteria. For purposes of determining what administrative action 
to take and what sanctions, if any, to seek, the fact that a voluntary 
self-disclosure has been made will be a mitigating factor. OEE will take 
that factor into account along with other mitigating and aggravating 
factors when determining what, if any, administrative sanctions should 
be imposed. The factors that OEE will consider are in its sole 
discretion, but may include:
    (1) The extent to which the purpose of the control is undermined by 
the transaction;
    (2) Whether the transaction would have been authorized had proper 
application been made;
    (3) The quantity and value of the items involved;
    (4) Why the violations occurred. For example, OEE may consider 
whether the violations were intentional or inadvertent; the degree to 
which the person responsible for the violation making the disclosure was 
familiar with the EAR; and whether the violator has been the subject of 
prior administrative or criminal action under the EAA or the EAR;
    (5) Whether, as a result of the information provided, OEE is able to 
prevent any items exported illegally from reaching unauthorized persons 
or destinations;
    (6) The degree of cooperation with the ensuing investigation;
    (7) Whether the person has instituted or improved an internal 
compliance program to reduce the likelihood of future violations.
    (f) Treatment of unlawfully exported items after voluntary self-
disclosure. (1) Any person taking certain actions with knowledge that a 
violation of the EAA or the EAR has occurred has violated Sec. 764.2(e) 
of this part. Any person who has made a voluntary self-disclosure knows 
that a violation may have occurred. Therefore, at the time that a 
voluntary self-disclosure is made, the person making the disclosure may 
request permission from BXA to engage in the activities described in 
Sec. 764.2(e) of this part that would otherwise be prohibited. If the 
request is granted by the Office of Exporter Services in consultation 
with OEE, future activities with respect to those items that would 
otherwise violate Sec. 764.2(e) of this part will not constitute 
violations. However, even if permission is granted, the person making 
the voluntary self-disclosure is not absolved from liability for any 
violations disclosed nor relieved of the obligation to obtain any 
required reexport authorizations.
    (2) A license to reexport items that are the subject of a voluntary 
self-disclosure, and that have been exported contrary to the provisions 
of the EAA or the EAR, may be requested from BXA in accordance with the 
provisions of part 748 of the EAR. If the applicant

[[Page 424]]

for reexport authorization knows that the items are the subject of a 
voluntary self-disclosure, the request should state that a voluntary 
self-disclosure was made in connection with the export of the 
commodities for which reexport authorization is sought.



Sec. 764.6  Protective administrative measures.

    (a) License Exception limitation. As provided in Sec. 740.2(b) of 
the EAR , all License Exceptions are subject to revision, suspension, or 
revocation.
    (b) Revocation or suspension of licenses. As provided in Sec. 750.8 
of the EAR, all licenses are subject to revision, suspension, or 
revocation.
    (c) Temporary denial orders. BXA may, in accordance with Sec. 766.24 
of the EAR, issue an order temporarily denying export privileges when 
such an order is necessary in the public interest to prevent the 
occurrence of an imminent violation.
    (d) Denial based on criminal conviction. BXA may, in accordance with 
Sec. 766.25 of the EAR, issue an order denying the export privileges of 
any person who has been convicted of an offense specified in Sec. 11(h) 
of the EAA.

 Supplement No. 1 to Part 764--Standard Terms of Orders Denying Export 
                               Privileges

    (a) General. Orders denying export privileges may be ``standard'' or 
``non-standard.'' This supplement specifies terms of the standard order 
denying export privileges. All denial orders are published in the 
Federal Register. The failure by any person to comply with any denial 
order is a violation of the Export Administration Regulations (EAR). 
(See General Prohibition Four at Sec. 736.2(b)(4) of the EAR; 
Sec. 764.2(k) of this part.) All persons whose export privileges are 
denied by any form of denial order are identified on the Denied Persons 
List (Supplement No. 2 to this part), with an indication of whether an 
order is standard or non-standard denoted in the ``Terms of order'' 
column. The Denied Persons List also tells you where each denial order 
can be found in the Federal Register. Reference should be made to the 
text of the denial order, as published in the Federal Register, to learn 
the scope of any denial order, including any non-standard denial order.
    Denial orders issued prior to March 25, 1996, are to be construed, 
insofar as possible, as having the same scope and effect as the standard 
denial order.
    The introduction to each denial order shall be specific to that 
order, and shall include: (1) The name and address of any denied persons 
and any related persons subject to the denial order; (2) the basis for 
the denial order, such as final decision following charges of violation, 
settlement agreement, Sec. 11(h) of the EAA, or temporary denial order 
request; (3) the period of denial, the effective date of the order, 
whether and for how long any portion of the denial of export privileges 
is suspended, and any conditions of probation; and (4) whether any or 
all outstanding licenses issued under the EAR to the person(s) named in 
the denial order or in which such person(s) has an interest, are 
suspended or revoked.
    (b) Standard text. The standard denial order shall provide:
    ``It is therefore ordered:
    First, that [the denied person(s)] may not, directly or indirectly, 
participate in any way in any transaction involving any commodity, 
software or technology (hereinafter collectively referred to as 
``item'') exported or to be exported from the United States that is 
subject to the Export Administration Regulations (EAR), or in any other 
activity subject to the EAR, including, but not limited to:
    A. Applying for, obtaining, or using any license, License Exception, 
or export control document;
    B. Carrying on negotiations concerning, or ordering, buying, 
receiving, using, selling, delivering, storing, disposing of, 
forwarding, transporting, financing, or otherwise servicing in any way, 
any transaction involving any item exported or to be exported from the 
United States that is subject to the EAR, or in any other activity 
subject to the EAR; or
    C. Benefiting in any way from any transaction involving any item 
exported or to be exported from the United States that is subject to the 
EAR, or in any other activity subject to the EAR.
    Second, that no person may, directly or indirectly, do any of the 
following:
    A. Export or reexport to or on behalf of the denied person any item 
subject to the EAR;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by a denied person of the ownership, possession, or control 
of any item subject to the EAR that has been or will be exported from 
the United States, including financing or other support activities 
related to a transaction whereby a denied person acquires or attempts to 
acquire such ownership, possession or control;
    C. Take any action to acquire from or to facilitate the acquisition 
or attempted acquisition from the denied person of any item subject to 
the EAR that has been exported from the United States;
    D. Obtain from the denied person in the United States any item 
subject to the EAR with knowledge or reason to know that the

[[Page 425]]

item will be, or is intended to be, exported from the United States; or
    E. Engage in any transaction to service any item subject to the EAR 
that has been or will be exported from the United States and which is 
owned, possessed or controlled by a denied person, or service any item, 
of whatever origin, that is owned, possessed or controlled by a denied 
person if such service involves the use of any item subject to the EAR 
that has been or will be exported from the United States. For purposes 
of this paragraph, servicing means installation, maintenance, repair, 
modification or testing.
    Third, that, after notice and opportunity for comment as provided in 
Sec. 766.23 of the EAR, any person, firm, corporation, or business 
organization related to the denied person by affiliation, ownership, 
control, or position of responsibility in the conduct of trade or 
related services may also be made subject to the provisions of this 
order.
    Fourth, that this order does not prohibit any export, reexport, or 
other transaction subject to the EAR where the only items involved that 
are subject to the EAR are the foreign-produced direct product of U.S.-
origin technology.
    This order, which constitutes the final agency action in this 
matter, is effective immediately.''

            Supplement No. 2 to Part 764--Denied Persons List

    (a) General. (1) The Denied Persons List identifies those persons 
denied export privileges by the Bureau of Export Administration (BXA) 
pursuant to the terms of an order. Part A of the Denied Persons List 
lists all denied persons in alphabetical order and provides 
supplementary information, while Part B lists all denied persons by 
geographic area. Part A of the Denied Persons List is organized into 
five columns, including the name and address of the denied person, the 
effective and expiration dates of the order, a brief description of the 
terms of the order, and a citation to the Federal Register where the 
terms of the order can be located. Reference should always be made to 
the text of a denial order when using the Denied Persons List.
    (2) Denial orders issued subsequent to March 25, 1996, shall be 
identified in part A as being standard or non-standard, and denial 
orders issued prior to March 25, 1996, shall be construed, insofar as 
possible, as having the same scope and effect as the standard denial 
order. Non-standard orders are denoted by the phrase ``non-standard'' in 
the ``Terms of order'' column in part A, standard orders are denoted by 
the word ``standard,'' and orders issued prior to March 25, 1996, are 
denoted by the same brief description entered at the time of issuance. 
Standard orders denying export privileges contain the standard terms set 
forth in Supplement No. 1 to part 764.
    (3) You are responsible for ensuring that you take no action 
involving items subject to the Export Administration Regulations (EAR) 
that is contrary to the terms of a denial order.
    (b) Related persons. Related persons who are denied export 
privileges subsequent to [the effective date of the interim EAR] shall 
appear in part A of the Denied Persons List with a note identifying the 
denied persons to whom they are related in the column entitled ``Terms 
of order.''
    (c) Publication. New and amended denial orders are published in the 
Federal Register as they are issued. This publication constitutes 
official notice to the public.
    (d) Updates and availability. (1) As a convenience for the public, 
issuance of denial orders is announced in Export Administration 
Bulletins. Part A of the Denied Persons List is also available 
electronically on two bulletin boards of Department of Commerce 
agencies, Fedworld (National Technical Information Service) and the 
Economic Bulletin Board (Economics and Statistics Administration).
    (2) [Reserved]



PART 766--ADMINISTRATIVE ENFORCEMENT PROCEEDINGS--Table of Contents




Sec.
766.1  Scope.
766.2  Definitions.
766.3  Institution of administrative enforcement proceedings.
766.4  Representation.
766.5  Filing and service of papers other than charging letter.
766.6  Answer and demand for hearing.
766.7  Default.
766.8  Summary decision.
766.9  Discovery.
766.10  Subpoenas.
766.11  Matter protected against disclosure.
766.12  Prehearing conference.
766.13  Hearings.
766.14  Interlocutory review of rulings.
766.15  Proceeding without a hearing.
766.16  Procedural stipulations; extension of time.
766.17  Decision of the administrative law judge.
766.18  Settlement.
766.19  Reopening.
766.20  Record for decision and availability of documents.
766.21  Appeals.
766.22  Review by Under Secretary.
766.23  Related persons.
766.24  Temporary denials.
766.25  Administrative action denying permission to apply for or use 
          export licenses.


[[Page 426]]


    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 FR 
42767, August 17, 1995).

    Source: 61 FR 12907, Mar. 25, 1996, unless otherwise noted.



Sec. 766.1  Scope.

    In this part, references to the EAR are references to 15 CFR chapter 
VII, subchapter C. This part describes the procedures for imposing 
administrative sanctions for violations of the Export Administration Act 
of 1979, as amended (the EAA), the Export Administration Regulations 
(EAR), or any order, license or authorization issued thereunder. Parts 
760 and 764 of the EAR specify those actions that constitute violations, 
and part 764 describes the sanctions that apply. In addition to 
describing the procedures for imposing sanctions, this part describes 
the procedures for imposing temporary denial orders to prevent imminent 
violations of the EAA, the EAR, or any order, license or authorization 
issued thereunder. This part also describes the procedures for taking 
the discretionary protective administrative action of denying the export 
privileges of persons who have been convicted of violating any of the 
statutes, including the EAA, listed in section 11(h) of the EAA. Nothing 
in this part shall be construed as applying to or limiting other 
administrative or enforcement action relating to the EAA or the EAR, 
including the exercise of any investigative authorities conferred by the 
EAA. This part does not confer any procedural rights or impose any 
requirements based on the Administrative Procedure Act for proceedings 
charging violations under the EAA, except as expressly provided for in 
this part.



Sec. 766.2  Definitions.

    As used in this part, the following definitions apply:
    Administrative law judge. The person authorized to conduct hearings 
in administrative enforcement proceedings brought under the EAA or to 
hear appeals from the imposition of temporary denial orders. The term 
``judge'' may be used for brevity when it is clear that the reference is 
to the administrative law judge.
    Assistant Secretary. The Assistant Secretary for Export Enforcement, 
Bureau of Export Administration.
    Bureau of Export Administration (BXA). Bureau of Export 
Administration, United States Department of Commerce, and all of its 
component units, including, in particular for purposes of this part, the 
Office of Antiboycott Compliance, the Office of Export Enforcement, and 
the Office of Exporter Services.
    Final decision. A decision or order assessing a civil penalty, 
denial of export privileges or other sanction, or otherwise disposing of 
or dismissing a case, which is not subject to further review under this 
part, but which is subject to collection proceedings or judicial review 
in an appropriate Federal district court as authorized by law.
    Initial decision. A decision of the administrative law judge in 
proceedings involving violations relating to part 760 of the EAR, which 
is subject to appellate review by the Under Secretary for Export 
Administration, but which becomes the final decision in the absence of 
such an appeal.
    Party. BXA and any person named as a respondent under this part.
    Recommended decision. A decision of the administrative law judge in 
proceedings involving violations other than those relating to part 760 
of the EAR, which is subject to review by the Under Secretary of 
Commerce for Export Administration, who issues a written order 
affirming, modifying or vacating the recommended decision.
    Respondent. Any person named as the subject of a charging letter, 
proposed charging letter, temporary denial order, or other order 
proposed or issued under this part.
    Under Secretary. The Under Secretary for Export Administration, 
United States Department of Commerce.



Sec. 766.3  Institution of administrative enforcement proceedings.

    (a) Charging letters. The Director of the Office of Export 
Enforcement 1

[[Page 427]]

(OEE) or the Director of the Office of Antiboycott Compliance (OAC), as 
appropriate, may begin administrative enforcement proceedings under this 
part by issuing a charging letter in the name of BXA. The charging 
letter shall constitute the formal complaint and will state that there 
is reason to believe that a violation of the EAA, the EAR, or any order, 
license or authorization issued thereunder, has occurred. It will set 
forth the essential facts about the alleged violation, refer to the 
specific regulatory or other provisions involved, and give notice of the 
sanctions available under part 764 of the EAR. The charging letter will 
inform the respondent that failure to answer the charges as provided in 
Sec. 766.6 of this part will be treated as a default under Sec. 766.7 of 
this part, that the respondent is entitled to a hearing if a written 
demand for one is requested with the answer, and that the respondent may 
be represented by counsel, or by other authorized representative who has 
a power of attorney to represent the respondent. A copy of the charging 
letter shall be filed with the administrative law judge, which filing 
shall toll the running of the applicable statute of limitations. 
Charging letters may be amended or supplemented at any time before an 
answer is filed, or, with permission of the administrative law judge, 
afterwards. BXA may unilaterally withdraw charging letters at any time, 
by notifying the respondent and the administrative law judge.
---------------------------------------------------------------------------

    \1\ By agreement with the Director of the Office of Strategic 
Industries and Economic Resource Administration, the Director of the 
Office of Export Enforcement enforces short supply controls imposed 
under section 7 of the EAA.
---------------------------------------------------------------------------

    (b) Notice of issuance of charging letter instituting administrative 
enforcement proceeding. A respondent shall be notified of the issuance 
of a charging letter, or any amendment or supplement thereto:
    (1) By mailing a copy by registered or certified mail addressed to 
the respondent at the respondent's last known address;
    (2) By leaving a copy with the respondent or with an officer, a 
managing or general agent, or any other agent authorized by appointment 
or by law to receive service of process for the respondent; or
    (3) By leaving a copy with a person of suitable age and discretion 
who resides at the respondent's last known dwelling.
    (4) Delivery of a copy of the charging letter, if made in the manner 
described in paragraph (b)(2) or (3) of this section, shall be evidenced 
by a certificate of service signed by the person making such service, 
stating the method of service and the identity of the person with whom 
the charging letter was left. The certificate of service shall be filed 
with the administrative law judge.
    (c) Date. The date of service of notice of the issuance of a 
charging letter instituting an administrative enforcement proceeding, or 
service of notice of the issuance of a supplement or amendment to a 
charging letter, is the date of its delivery, or of its attempted 
delivery if delivery is refused.



Sec. 766.4  Representation.

    A respondent individual may appear and participate in person, a 
corporation by a duly authorized officer or employee, and a partnership 
by a partner. If a respondent is represented by counsel, counsel shall 
be a member in good standing of the bar of any State, Commonwealth or 
Territory of the United States, or of the District of Columbia, or be 
licensed to practice law in the country in which counsel resides if not 
the United States. A respondent personally, or through counsel or other 
representative, shall file a notice of appearance with the 
administrative law judge. BXA will be represented by the Office of Chief 
Counsel for Export Administration, U.S. Department of Commerce.



Sec. 766.5  Filing and service of papers other than charging letter.

    (a) Filing. All papers to be filed shall be addressed to ``EAR 
Administrative Enforcement Proceedings,'' U.S. Department of Commerce, 
Room H-6716, 14th Street and Constitution Avenue, N.W., Washington, D.C. 
20230, or such other place as the administrative law judge may 
designate. Filing by United States mail, first class postage prepaid, by 
express or equivalent parcel delivery service, or by hand delivery, is 
acceptable. Filing by mail from a foreign country shall be by airmail. 
In addition, the administrative law judge may authorize filing of papers 
by facsimile or other electronic means, provided

[[Page 428]]

that a hard copy of any such paper is subsequently filed. A copy of each 
paper filed shall be simultaneously served on each party.
    (b) Service. Service shall be made by personal delivery or by 
mailing one copy of each paper to each party in the proceeding. Service 
by delivery service or facsimile, in the manner set forth in paragraph 
(a) of this section, is acceptable. Service on BXA shall be addressed to 
the Chief Counsel for Export Administration, Room H-3839, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, N.W., 
Washington, D.C. 20230. Service on a respondent shall be to the address 
to which the charging letter was sent or to such other address as 
respondent may provide. When a party has appeared by counsel or other 
representative, service on counsel or other representative shall 
constitute service on that party.
    (c) Date. The date of filing or service is the day when the papers 
are deposited in the mail or are delivered in person, by delivery 
service, or by facsimile.
    (d) Certificate of service. A certificate of service signed by the 
party making service, stating the date and manner of service, shall 
accompany every paper, other than the charging letter, filed and served 
on parties.
    (e) Computing period of time. In computing any period of time 
prescribed or allowed by this part or by order of the administrative law 
judge or the Under Secretary, the day of the act, event, or default from 
which the designated period of time begins to run is not to be included. 
The last day of the period so computed is to be included unless it is a 
Saturday, a Sunday, or a legal holiday (as defined in Rule 6(a) of the 
Federal Rules of Civil Procedure), in which case the period runs until 
the end of the next day which is neither a Saturday, a Sunday, nor a 
legal holiday. Intermediate Saturdays, Sundays, and legal holidays are 
excluded from the computation when the period of time prescribed or 
allowed is seven days or less.



Sec. 766.6  Answer and demand for hearing.

    (a) When to answer. The respondent must answer the charging letter 
within 30 days after being served with notice of the issuance of a 
charging letter instituting an administrative enforcement proceeding, or 
within 30 days of notice of any supplement or amendment to a charging 
letter, unless time is extended under Sec. 766.16 of this part.
    (b) Contents of answer. The answer must be responsive to the 
charging letter and must fully set forth the nature of the respondent's 
defense or defenses. The answer must admit or deny specifically each 
separate allegation of the charging letter; if the respondent is without 
knowledge, the answer must so state and will operate as a denial. 
Failure to deny or controvert a particular allegation will be deemed an 
admission of that allegation. The answer must also set forth any 
additional or new matter the respondent believes supports a defense or 
claim of mitigation. Any defense or partial defense not specifically set 
forth in the answer shall be deemed waived, and evidence thereon may be 
refused, except for good cause shown.
    (c) Demand for hearing. If the respondent desires a hearing, a 
written demand for one must be submitted with the answer. Any demand by 
BXA for a hearing must be filed with the administrative law judge within 
30 days after service of the answer. Failure to make a timely written 
demand for a hearing shall be deemed a waiver of the party's right to a 
hearing, except for good cause shown. If no party demands a hearing, the 
matter will go forward in accordance with the procedures set forth in 
Sec. 766.15 of this part.
    (d) English language required. The answer, all other papers, and all 
documentary evidence must be submitted in English, or translations into 
English must be filed and served at the same time.



Sec. 766.7  Default.

    (a) General. Failure of the respondent to file an answer within the 
time provided constitutes a waiver of the respondent's right to appear 
and contest the allegations in the charging letter. In such event, the 
administrative law judge, on BXA's motion and without further notice to 
the respondent, shall find the facts to be as alleged in the charging 
letter and render an initial or

[[Page 429]]

recommended decision containing findings of fact and appropriate 
conclusions of law and issue or recommend an order imposing appropriate 
sanctions. The decision and order shall be subject to review by the 
Under Secretary in accordance with the applicable procedures set forth 
in Sec. 766.21 or Sec. 766.22 of this part.
    (b) Petition to set aside default--(1) Procedure. Upon petition 
filed by a respondent against whom a default order has been issued, 
which petition is accompanied by an answer meeting the requirements of 
Sec. 766.6(b) of this part, the Under Secretary may, after giving all 
parties an opportunity to comment, and for good cause shown, set aside 
the default and vacate the order entered thereon and remand the matter 
to the administrative law judge for further proceedings.
    (2) Time limits. A petition under this section must be made within 
one year of the date of entry of the order which the petition seeks to 
have vacated.



Sec. 766.8  Summary decision.

    At any time after a proceeding has been initiated, a party may move 
for a summary decision disposing of some or all of the issues. The 
administrative law judge may render an initial or recommended decision 
and issue or recommend an order if the entire record shows, as to the 
issue(s) under consideration:
    (a) That there is no genuine issue as to any material fact; and
    (b) That the moving party is entitled to a summary decision as a 
matter of law.



Sec. 766.9  Discovery.

    (a) General. The parties are encouraged to engage in voluntary 
discovery regarding any matter, not privileged, which is relevant to the 
subject matter of the pending proceeding. The provisions of the Federal 
Rules of Civil Procedure relating to discovery apply to the extent 
consistent with this part and except as otherwise provided by the 
administrative law judge or by waiver or agreement of the parties. The 
administrative law judge may make any order which justice requires to 
protect a party or person from annoyance, embarrassment, oppression, or 
undue burden or expense. These orders may include limitations on the 
scope, method, time and place of discovery, and provisions for 
protecting the confidentiality of classified or otherwise sensitive 
information.
    (b) Interrogatories and requests for admission or production of 
documents. A party may serve on any party interrogatories, requests for 
admission, or requests for production of documents for inspection and 
copying, and a party concerned may apply to the administrative law judge 
for such enforcement or protective order as that party deems warranted 
with respect to such discovery. The service of a discovery request shall 
be made at least 20 days before the scheduled date of the hearing unless 
the administrative law judge specifies a shorter time period. Copies of 
interrogatories, requests for admission and requests for production of 
documents and responses thereto shall be served on all parties, and a 
copy of the certificate of service shall be filed with the 
administrative law judge. Matters of fact or law of which admission is 
requested shall be deemed admitted unless, within a period designated in 
the request (at least 10 days after service, or within such additional 
time as the administrative law judge may allow), the party to whom the 
request is directed serves upon the requesting party a sworn statement 
either denying specifically the matters of which admission is requested 
or setting forth in detail the reasons why the party to whom the request 
is directed cannot truthfully either admit or deny such matters.
    (c) Depositions. Upon application of a party and for good cause 
shown, the administrative law judge may order the taking of the 
testimony of any person by deposition and the production of specified 
documents or materials by the person at the deposition. The application 
shall state the purpose of the deposition and set forth the facts sought 
to be established through the deposition.
    (d) Enforcement. The administrative law judge may order a party to 
answer designated questions, to produce specified documents or things or 
to take any other action in response to a proper discovery request. If a 
party does

[[Page 430]]

not comply with such an order, the administrative law judge may make a 
determination or enter any order in the proceeding as the judge deems 
reasonable and appropriate. The judge may strike related charges or 
defenses in whole or in part or may take particular facts relating to 
the discovery request to which the party failed or refused to respond as 
being established for purposes of the proceeding in accordance with the 
contentions of the party seeking discovery. In addition, enforcement by 
a district court of the United States may be sought under section 12(a) 
of the EAA.



Sec. 766.10  Subpoenas.

    (a) Issuance. Upon the application of any party, supported by a 
satisfactory showing that there is substantial reason to believe that 
the evidence would not otherwise be available, the administrative law 
judge will issue subpoenas requiring the attendance and testimony of 
witnesses and the production of such books, records or other documentary 
or physical evidence for the purpose of the hearing, as the judge deems 
relevant and material to the proceedings, and reasonable in scope.
    (b) Service. Subpoenas issued by the administrative law judge may be 
served in any of the methods set forth in Sec. 766.5(b) of this part.
    (c) Timing. Applications for subpoenas must be submitted at least 10 
days before the scheduled hearing or deposition, unless the 
administrative law judge determines, for good cause shown, that 
extraordinary circumstances warrant a shorter time.



Sec. 766.11  Matter protected against disclosure.

    (a) Protective measures. It is often necessary for BXA to receive 
and consider information and documents that are sensitive from the 
standpoint of national security, foreign policy, business 
confidentiality, or investigative concern, and that are to be protected 
against disclosure. Accordingly, and without limiting the discretion of 
the administrative law judge to give effect to any other applicable 
privilege, it is proper for the administrative law judge to limit 
discovery or introduction of evidence or to issue such protective or 
other orders as in the judge's judgment may be consistent with the 
objective of preventing undue disclosure of the sensitive documents or 
information. Where the administrative law judge determines that 
documents containing the sensitive matter need to be made available to a 
respondent to avoid prejudice, the judge may direct BXA to prepare an 
unclassified and nonsensitive summary or extract of the documents. The 
administrative law judge may compare the extract or summary with the 
original to ensure that it is supported by the source document and that 
it omits only so much as must remain classified or undisclosed. The 
summary or extract may be admitted as evidence in the record.
    (b) Arrangements for access. If the administrative law judge 
determines that this procedure is unsatisfactory and that classified or 
otherwise sensitive matter must form part of the record in order to 
avoid prejudice to a party, the judge may provide the parties 
opportunity to make arrangements that permit a party or a representative 
to have access to such matter without compromising sensitive 
information. Such arrangements may include obtaining security 
clearances, obtaining a national interest determination under section 
12(c) of the EAA, or giving counsel for a party access to sensitive 
information and documents subject to assurances against further 
disclosure, including a protective order, if necessary.



Sec. 766.12  Prehearing conference.

    (a) The administrative law judge, on the judge's own motion or on 
request of a party, may direct the parties to participate in a 
prehearing conference, either in person or by telephone, to consider:
    (1) Simplification of issues;
    (2) The necessity or desirability of amendments to pleadings;
    (3) Obtaining stipulations of fact and of documents to avoid 
unnecessary proof; or
    (4) Such other matters as may expedite the disposition of the 
proceedings.
    (b) The administrative law judge may order the conference 
proceedings to be recorded electronically or taken by a

[[Page 431]]

reporter, transcribed and filed with the judge.
    (c) If a prehearing conference is impracticable, the administrative 
law judge may direct the parties to correspond with the judge to achieve 
the purposes of such a conference.
    (d) The administrative law judge will prepare a summary of any 
actions agreed on or taken pursuant to this section. The summary will 
include any written stipulations or agreements made by the parties.



Sec. 766.13  Hearings.

    (a) Scheduling. The administrative law judge, by agreement with the 
parties or upon notice to all parties of not less than 30 days, will 
schedule a hearing. All hearings will be held in Washington, D.C., 
unless the administrative law judge determines, for good cause shown, 
that another location would better serve the interests of justice.
    (b) Hearing procedure. Hearings will be conducted in a fair and 
impartial manner by the administrative law judge, who may limit 
attendance at any hearing or portion thereof to the parties, their 
representatives and witnesses if the judge deems this necessary or 
advisable in order to protect sensitive matter (see Sec. 766.11 of this 
part) from improper disclosure. The rules of evidence prevailing in 
courts of law do not apply, and all evidentiary material deemed by the 
administrative law judge to be relevant and material to the proceeding 
and not unduly repetitious will be received and given appropriate 
weight.
    (c) Testimony and record. Witnesses will testify under oath or 
affirmation. A verbatim record of the hearing and of any other oral 
proceedings will be taken by reporter or by electronic recording, 
transcribed and filed with the administrative law judge. A respondent 
may examine the transcript and may obtain a copy by paying any 
applicable costs. Upon such terms as the administrative law judge deems 
just, the judge may direct that the testimony of any person be taken by 
deposition and may admit an affidavit or declaration as evidence, 
provided that any affidavits or declarations have been filed and served 
on the parties sufficiently in advance of the hearing to permit a party 
to file and serve an objection thereto on the grounds that it is 
necessary that the affiant or declarant testify at the hearing and be 
subject to cross-examination.
    (d) Failure to appear. If a party fails to appear in person or by 
counsel at a scheduled hearing, the hearing may nevertheless proceed, 
and that party's failure to appear will not affect the validity of the 
hearing or any proceedings or action taken thereafter.



Sec. 766.14  Interlocutory review of rulings.

    (a) At the request of a party, or on the judge's own initiative, the 
administrative law judge may certify to the Under Secretary for review a 
ruling that does not finally dispose of a proceeding, if the 
administrative law judge determines that immediate review may hasten or 
facilitate the final disposition of the matter.
    (b) Upon certification to the Under Secretary of the interlocutory 
ruling for review, the parties will have 10 days to file and serve 
briefs stating their positions, and five days to file and serve replies, 
following which the Under Secretary will decide the matter promptly.



Sec. 766.15  Proceeding without a hearing.

    If the parties have waived a hearing, the case will be decided on 
the record by the administrative law judge. Proceeding without a hearing 
does not relieve the parties from the necessity of proving the facts 
supporting their charges or defenses. Affidavits or declarations, 
depositions, admissions, answers to interrogatories and stipulations may 
supplement other documentary evidence in the record. The administrative 
law judge will give each party reasonable opportunity to file rebuttal 
evidence.



Sec. 766.16  Procedural stipulations; extension of time.

    (a) Procedural stipulations. Unless otherwise ordered, a written 
stipulation agreed to by all parties and filed with the administrative 
law judge will modify any procedures established by this part.

[[Page 432]]

    (b) Extension of time. (1) The parties may extend any applicable 
time limitation, by stipulation filed with the administrative law judge 
before the time limitation expires.
    (2) The administrative law judge may, on the judge's own initiative 
or upon application by any party, either before or after the expiration 
of any applicable time limitation, extend the time within which to file 
and serve an answer to a charging letter or do any other act required by 
this part.



Sec. 766.17  Decision of the administrative law judge.

    (a) Predecisional matters. Except for default proceedings under 
Sec. 766.7 of this part, the administrative law judge will give the 
parties reasonable opportunity to submit the following, which will be 
made a part of the record:
    (1) Exceptions to any ruling by the judge or to the admissibility of 
evidence proffered at the hearing;
    (2) Proposed findings of fact and conclusions of law;
    (3) Supporting legal arguments for the exceptions and proposed 
findings and conclusions submitted; and
    (4) A proposed order.
    (b) Decision and order. After considering the entire record in the 
proceeding, the administrative law judge will issue a written decision.
    (1) Initial decision. For proceedings charging violations relating 
to part 760 of the EAR, the decision rendered shall be an initial 
decision. The decision will include findings of fact, conclusions of 
law, and findings as to whether there has been a violation of the EAA, 
the EAR, or any order, license or authorization issued thereunder. If 
the administrative law judge finds that the evidence of record is 
insufficient to sustain a finding that a violation has occurred with 
respect to one or more charges, the judge shall order dismissal of the 
charges in whole or in part, as appropriate. If the administrative law 
judge finds that one or more violations have been committed, the judge 
may issue an order imposing administrative sanctions, as provided in 
part 764 of the EAR. The decision and order shall be served on each 
party, and shall become effective as the final decision of the 
Department 30 days after service, unless an appeal is filed in 
accordance with Sec. 766.21 of this part.
    (2) Recommended decision. For proceedings not involving violations 
relating to part 760 of the EAR, the decision rendered shall be a 
recommended decision. The decision will include recommended findings of 
fact, conclusions of law, and findings as to whether there has been a 
violation of the EAA, the EAR or any order, license or authorization 
issued thereunder. If the administrative law judge finds that the 
evidence of record is insufficient to sustain a recommended finding that 
a violation has occurred with respect to one or more charges, the judge 
shall recommend dismissal of any such charge. If the administrative law 
judge finds that one or more violations have been committed, the judge 
shall recommend an order imposing administrative sanctions, as provided 
in part 764 of the EAR, or such other action as the judge deems 
appropriate. The administrative law judge shall immediately certify the 
record, including the original copy of the recommended decision and 
order, to the Under Secretary for review in accordance with Sec. 766.22 
of this part. The administrative law judge shall also immediately serve 
the recommended decision on all parties. Because of the time limits 
established in the EAA for review by the Under Secretary, service upon 
parties shall be by personal delivery, express mail or other overnight 
carrier.
    (c) Suspension of sanctions. Any order imposing administrative 
sanctions may provide for the suspension of the sanction imposed, in 
whole or in part and on such terms of probation or other conditions as 
the administrative law judge or the Under Secretary may specify. Any 
suspension order may be modified or revoked by the signing official upon 
application of BXA showing a violation of the probationary terms or 
other conditions, after service on the respondent of notice of the 
application in accordance with the service provisions of Sec. 766.3 of 
this part, and with such opportunity for response as the responsible 
signing official in his/her discretion may allow. A copy of any

[[Page 433]]

order modifying or revoking the suspension shall also be served on the 
respondent in accordance with the provisions of Sec. 766.3 of this part.
    (d) Time for decision. Administrative enforcement proceedings not 
involving violations relating to part 760 of the EAR shall be concluded, 
including review by the Under Secretary under Sec. 766.22 of this part, 
within one year of the submission of a charging letter, unless the 
administrative law judge, for good cause shown, extends such period. The 
charging letter will be deemed to have been submitted to the 
administrative law judge on the date the respondent files an answer or 
on the date BXA files a motion for a default order pursuant to 
Sec. 766.7(a) of this part, whichever occurs first.



Sec. 766.18  Settlement.

    (a) Cases may be settled before service of a charging letter. In 
cases in which settlement is reached before service of a charging 
letter, a proposed charging letter will be prepared, and a settlement 
proposal consisting of a settlement agreement and order will be 
submitted to the Assistant Secretary for approval and signature. If the 
Assistant Secretary does not approve the proposal, he/she will notify 
the parties and the case will proceed as though no settlement proposal 
had been made. If the Assistant Secretary approves the proposal, he/she 
will issue an appropriate order, and no action will be required by the 
administrative law judge.
    (b) Cases may also be settled after service of a charging letter. 
(1) If the case is pending before the administrative law judge, the 
judge shall stay the proceedings for a reasonable period of time, 
usually not to exceed 30 days, upon notification by the parties that 
they have entered into good faith settlement negotiations. The 
administrative law judge may, in his/her discretion, grant additional 
stays. If settlement is reached, a proposal will be submitted to the 
Assistant Secretary for approval and signature. If the Assistant 
Secretary approves the proposal, he/she will issue an appropriate order, 
and notify the administrative law judge that the case is withdrawn from 
adjudication. If the Assistant Secretary does not approve the proposal, 
he/she will notify the parties and the case will proceed to adjudication 
by the administrative law judge as though no settlement proposal had 
been made.
    (2) If the case is pending before the Under Secretary under 
Sec. 766.21 or Sec. 766.22 of this part, the parties may submit a 
settlement proposal to the Under Secretary for approval and signature. 
If the Under Secretary approves the proposal, he/she will issue an 
appropriate order. If the Under Secretary does not approve the proposal, 
the case will proceed to final decision in accordance with Sec. 766.21 
or Sec. 766.22 of this part, as appropriate.
    (c) Any order disposing of a case by settlement may suspend the 
administrative sanction imposed, in whole or in part, on such terms of 
probation or other conditions as the signing official may specify. Any 
such suspension may be modified or revoked by the signing official, in 
accordance with the procedures set forth in Sec. 766.17(c) of this part.
    (d) Any respondent who agrees to an order imposing any 
administrative sanction does so solely for the purpose of resolving the 
claims in the administrative enforcement proceeding brought under this 
part. This reflects the fact that BXA has neither the authority nor the 
responsibility for instituting, conducting, settling, or otherwise 
disposing of criminal proceedings. That authority and responsibility are 
vested in the Attorney General and the Department of Justice.
    (e) Cases that are settled may not be reopened or appealed.



Sec. 766.19  Reopening.

    The respondent may petition the administrative law judge within one 
year of the date of the final decision, except where the decision arises 
from a default judgment or from a settlement, to reopen an 
administrative enforcement proceeding to receive any relevant and 
material evidence which was unknown or unobtainable at the time the 
proceeding was held. The petition must include a summary of such 
evidence, the reasons why it is deemed relevant and material, and the 
reasons why it could not have been presented at the time the proceedings 
were held. The administrative law judge will

[[Page 434]]

grant or deny the petition after providing other parties reasonable 
opportunity to comment. If the proceeding is reopened, the 
administrative law judge may make such arrangements as the judge deems 
appropriate for receiving the new evidence and completing the record. 
The administrative law judge will then issue a new initial or 
recommended decision and order, and the case will proceed to final 
decision and order in accordance with Sec. 766.21 or Sec. 766.22 of this 
part, as appropriate.



Sec. 766.20  Record for decision and availability of documents.

    (a) General. The transcript of hearings, exhibits, rulings, orders, 
all papers and requests filed in the proceedings and, for purposes of 
any appeal under Sec. 766.21 of this part or review under Sec. 766.22 of 
this part, the decision of the administrative law judge and such 
submissions as are provided for by Secs. 766.21 and 766.22 of this part, 
will constitute the record and the exclusive basis for decision. When a 
case is settled after the service of a charging letter, the record will 
consist of any and all of the foregoing, as well as the settlement 
agreement and the order. When a case is settled before service of a 
charging letter, the record will consist of the proposed charging 
letter, the settlement agreement and the order.
    (b) Restricted access. On the judge's own motion, or on the motion 
of any party, the administrative law judge may direct that there be a 
restricted access portion of the record for any material in the record 
to which public access is restricted by law or by the terms of a 
protective order entered in the proceedings. A party seeking to restrict 
access to any portion of the record is responsible for submitting, at 
the time specified in Sec. 766.20(c)(2) of this part, a version of the 
document proposed for public availability that reflects the requested 
deletion. The restricted access portion of the record will be placed in 
a separate file and the file will be clearly marked to avoid improper 
disclosure and to identify it as a portion of the official record in the 
proceedings. The administrative law judge may act at any time to permit 
material that becomes declassified or unrestricted through passage of 
time to be transferred to the unrestricted access portion of the record.
    (c) Availability of documents--(1) Scope. (i) For proceedings 
started on or after October 12, 1979, all charging letters, answers, 
initial and recommended decisions, and orders disposing of a case will 
be made available for public inspection in the BXA Freedom of 
Information Records Inspection Facility, U.S. Department of Commerce, 
Room H-6624, 14th Street and Pennsylvania Avenue, N.W., Washington, D.C. 
20230. The complete record for decision, as defined in paragraphs (a) 
and (b) of this section will be made available on request. In addition, 
all decisions of the Under Secretary on appeal pursuant to Sec. 766.22 
of this part and those final orders providing for denial, suspension or 
revocation of export privileges shall be published in the Federal 
Register.
    (ii) For proceedings started before October 12, 1979, the public 
availability of the record for decision will be governed by the 
applicable regulations in effect when the proceedings were begun.
    (2) Timing--(i) Antiboycott cases. For matters relating to part 760 
of the EAR, documents are available immediately upon filing, except for 
any portion of the record for which a request for segregation is made. 
Parties that seek to restrict access to any portion of the record under 
paragraph (b) of this section must make such a request, together with 
the reasons supporting the claim of confidentiality, simultaneously with 
the submission of material for the record.
    (ii) Other cases. In all other cases, documents will be available 
only after the final administrative disposition of the case. In these 
cases, parties desiring to restrict access to any portion of the record 
under paragraph (b) of this section must assert their claim of 
confidentiality, together with the reasons for supporting the claim, 
before the close of the proceeding.



Sec. 766.21  Appeals.

    (a) Grounds. For proceedings charging violations relating to part 
760 of the EAR, a party may appeal to the Under Secretary from an order 
disposing of a

[[Page 435]]

proceeding or an order denying a petition to set aside a default or a 
petition for reopening, on the grounds:
    (1) That a necessary finding of fact is omitted, erroneous or 
unsupported by substantial evidence of record;
    (2) That a necessary legal conclusion or finding is contrary to law;
    (3) That prejudicial procedural error occurred, or
    (4) That the decision or the extent of sanctions is arbitrary, 
capricious or an abuse of discretion. The appeal must specify the 
grounds on which the appeal is based and the provisions of the order 
from which the appeal is taken.
    (b) Filing of appeal. An appeal from an order must be filed with the 
Office of the Under Secretary for Export Administration, Bureau of 
Export Administration, U.S. Department of Commerce, Room H-3898, 14th 
Street and Constitution Avenue, N.W., Washington, D.C. 20230, within 30 
days after service of the order appealed from. If the Under Secretary 
cannot act on an appeal for any reason, the Under Secretary will 
designate another Department of Commerce official to receive and act on 
the appeal.
    (c) Effect of appeal. The filing of an appeal shall not stay the 
operation of any order, unless the order by its express terms so 
provides or unless the Under Secretary, upon application by a party and 
with opportunity for response, grants a stay.
    (d) Appeal procedure. The Under Secretary normally will not hold 
hearings or entertain oral argument on appeals. A full written statement 
in support of the appeal must be filed with the appeal and be 
simultaneously served on all parties, who shall have 30 days from 
service to file a reply. At his/her discretion, the Under Secretary may 
accept new submissions, but will not ordinarily accept those submissions 
filed more than 30 days after the filing of the reply to the appellant's 
first submission.
    (e) Decisions. The decision will be in writing and will be 
accompanied by an order signed by the Under Secretary giving effect to 
the decision. The order may either dispose of the case by affirming, 
modifying or reversing the order of the administrative law judge or may 
refer the case back to the administrative law judge for further 
proceedings.



Sec. 766.22  Review by Under Secretary.

    (a) Recommended decision. For proceedings not involving violations 
relating to part 760 of the EAR, the administrative law judge shall 
immediately refer the recommended decision and order to the Under 
Secretary. Because of the time limits provided under the EAA for review 
by the Under Secretary, service of the recommended decision and order on 
the parties, all papers filed by the parties in response, and the final 
decision of the Under Secretary must be by personal delivery, facsimile, 
express mail or other overnight carrier. If the Under Secretary cannot 
act on a recommended decision and order for any reason, the Under 
Secretary will designate another Department of Commerce official to 
receive and act on the recommendation.
    (b) Submissions by parties. Parties shall have 12 days from the date 
of issuance of the recommended decision and order in which to submit 
simultaneous responses. Parties thereafter shall have eight days from 
receipt of any response(s) in which to submit replies. Any response or 
reply must be received within the time specified by the Under Secretary.
    (c) Final decision. Within 30 days after receipt of the recommended 
decision and order, the Under Secretary shall issue a written order 
affirming, modifying or vacating the recommended decision and order of 
the administrative law judge. If he/she vacates the recommended decision 
and order, the Under Secretary may refer the case back to the 
administrative law judge for further proceedings. Because of the time 
limits, the Under Secretary's review will ordinarily be limited to the 
written record for decision, including the transcript of any hearing, 
and any submissions by the parties concerning the recommended decision.
    (d) Delivery. The final decision and implementing order shall be 
served on the parties and will be publicly available in accordance with 
Sec. 766.20 of this part.
    (e) Appeals. The charged party may appeal the Under Secretary's 
written order within 15 days to the United

[[Page 436]]

States Court of Appeals for the District of Columbia pursuant to 50 
U.S.C. app. Sec. 2412(c)(3).



Sec. 766.23  Related persons.

    (a) General. In order to prevent evasion, certain types of orders 
under this part may be made applicable not only to the respondent, but 
also to other persons then or thereafter related to the respondent by 
ownership, control, position of responsibility, affiliation, or other 
connection in the conduct of trade or business. Orders that may be made 
applicable to related persons include those that deny or affect export 
privileges, including temporary denial orders, and those that exclude a 
respondent from practice before BXA.
    (b) Procedures. If BXA has reason to believe that a person is 
related to the respondent and that an order that is being sought or that 
has been issued should be made applicable to that person in order to 
prevent evasion of the order, BXA shall, except in an ex parte 
proceeding under Sec. 766.24(a) of this part, give that person notice in 
accordance with Sec. 766.5(b) of this part and an opportunity to oppose 
such action. If the official authorized to issue the order against the 
respondent finds that the order should be made applicable to that person 
in order to prevent evasion of the order that official shall issue or 
amend the order accordingly.
    (c) Appeals. Any person named by BXA in an order as related to the 
respondent may file an appeal with the administrative law judge. The 
sole issues to be raised and ruled on in any such appeal are whether the 
person so named is related to the respondent and whether the order is 
justified in order to prevent evasion. The recommended decision and 
order of the administrative law judge shall be reviewed by the Under 
Secretary in accordance with the procedures set forth in Sec. 766.22 of 
this part.



Sec. 766.24  Temporary denials.

    (a) General. The procedures in this section apply to temporary 
denial orders issued on or after July 12, 1985. For temporary denial 
orders issued on or before July 11, 1985, the proceedings will be 
governed by the applicable regulations in effect at the time the 
temporary denial orders were issued. Without limiting any other action 
BXA may take under the EAR with respect to any application, order, 
license or authorization issued under the EAA, BXA may ask the Assistant 
Secretary to issue a temporary denial order on an ex parte basis to 
prevent an imminent violation, as defined in this section, of the EAA, 
the EAR, or any order, license or authorization issued thereunder. The 
temporary denial order will deny export privileges to any person named 
in the order as provided for in Sec. 764.3(a)(2) of the EAR.
    (b) Issuance. (1) The Assistant Secretary may issue an order 
temporarily denying to a person any or all of the export privileges 
described in part 764 of the EAR upon a showing by BXA that the order is 
necessary in the public interest to prevent an imminent violation of the 
EAA, the EAR, or any order, license or authorization issued thereunder.
    (2) The temporary denial order shall define the imminent violation 
and state why it was issued without a hearing. Because all denial orders 
are public, the description of the imminent violation and the reasons 
for proceeding on an ex parte basis set forth therein shall be stated in 
a manner that is consistent with national security, foreign policy, 
business confidentiality, and investigative concerns.
    (3) A violation may be ``imminent'' either in time or in degree of 
likelihood. To establish grounds for the temporary denial order, BXA may 
show either that a violation is about to occur, or that the general 
circumstances of the matter under investigation or case under criminal 
or administrative charges demonstrate a likelihood of future violations. 
To indicate the likelihood of future violations, BXA may show that the 
violation under investigation or charges is significant, deliberate, 
covert and/or likely to occur again, rather than technical or negligent, 
and that it is appropriate to give notice to companies in the United 
States and abroad to cease dealing with the person in U.S.-origin items 
in order to reduce the likelihood that a person under investigation or 
charges continues to export or acquire abroad

[[Page 437]]

such items, risking subsequent disposition contrary to export control 
requirements. Lack of information establishing the precise time a 
violation may occur does not preclude a finding that a violation is 
imminent, so long as there is sufficient reason to believe the 
likelihood of a violation.
    (4) The temporary denial order will be issued for a period not 
exceeding 180 days.
    (5) Notice of the issuance of a temporary denial order on an ex 
parte basis shall be given in accordance with Sec. 766.5(b) of this part 
upon issuance.
    (c) Related persons. A temporary denial order may be made applicable 
to related persons in accordance with Sec. 766.23 of this part.
    (d) Renewal. (1) If, no later than 20 days before the expiration 
date of a temporary denial order, BXA believes that renewal of the 
denial order is necessary in the public interest to prevent an imminent 
violation, BXA may file a written request setting forth the basis for 
its belief, including any additional or changed circumstances, asking 
that the Assistant Secretary renew the temporary denial order, with 
modifications, if any are appropriate, for an additional period not 
exceeding 180 days. BXA's request shall be delivered to the respondent, 
or any agent designated for this purpose, in accordance with 
Sec. 766.5(b) of this part, which will constitute notice of the renewal 
application.
    (2) Non-resident respondents. To facilitate timely notice of renewal 
requests, a respondent not a resident of the United States may designate 
a local agent for this purpose and provide written notification of such 
designation to BXA in the manner set forth in Sec. 766.5(b) of this 
part.
    (3) Hearing. (i) A respondent may oppose renewal of a temporary 
denial order by filing with the Assistant Secretary a written 
submission, supported by appropriate evidence, to be received not later 
than seven days before the expiration date of such order. For good cause 
shown, the Assistant Secretary may consider submissions received not 
later than five days before the expiration date. The Assistant Secretary 
ordinarily will not allow discovery; however, for good cause shown in 
respondent's submission, he/she may allow the parties to take limited 
discovery, consisting of a request for production of documents. If 
requested by the respondent in the written submission, the Assistant 
Secretary shall hold a hearing on the renewal application. The hearing 
shall be on the record and ordinarily will consist only of oral 
argument. The only issue to be considered on BXA's request for renewal 
is whether the temporary denial order should be continued to prevent an 
imminent violation as defined herein.
    (ii) Any person designated as a related person may not oppose 
issuance or renewal of the temporary denial order, but may file an 
appeal in accordance with Sec. 766.2(3)(c) of this part.
    (iii) If no written opposition to BXA's renewal request is received 
within the specified time, the Assistant Secretary may issue the order 
renewing the temporary denial order without a hearing.
    (4) A temporary denial order may be renewed more than once.
    (e) Appeals--(1) Filing. (i) A respondent may, at any time, file an 
appeal of the initial or renewed temporary denial order with the 
administrative law judge.
    (ii) The filing of an appeal shall stay neither the effectiveness of 
the temporary denial order nor any application for renewal, nor will it 
operate to bar the Assistant Secretary's consideration of any renewal 
application.
    (2) Grounds. A respondent may appeal on the grounds that the finding 
that the order is necessary in the public interest to prevent an 
imminent violation is unsupported.
    (3) Appeal procedure. A full written statement in support of the 
appeal must be filed with the appeal together with appropriate evidence, 
and be simultaneously served on BXA, which shall have seven days from 
receipt to file a reply. Service on the administrative law judge shall 
be addressed to the Office of the Administrative Law Judge, U.S. 
Department of Commerce, Room H-6716, 14th Street and Constitution 
Avenue, N.W., Washington, D.C. 20230. Service on BXA shall be as set 
forth in Sec. 766.5(b) of this part. The administrative law judge 
normally will not hold hearings or entertain oral argument on appeals.

[[Page 438]]

    (4) Recommended Decision. Within 10 working days after an appeal is 
filed, the administrative law judge shall submit a recommended decision 
to the Under Secretary, and serve copies on the parties, recommending 
whether the issuance or the renewal of the temporary denial order should 
be affirmed, modified or vacated.
    (5) Final decision. Within five working days after receipt of the 
recommended decision, the Under Secretary shall issue a written order 
accepting, rejecting or modifying the recommended decision. Because of 
the time constraints, the Under Secretary's review will ordinarily be 
limited to the written record for decision, including the transcript of 
any hearing. The issuance or renewal of the temporary denial order shall 
be affirmed only if there is reason to believe that the temporary denial 
order is required in the public interest to prevent an imminent 
violation of the EAA, the EAR, or any order, license or other 
authorization issued under the EAA. The Under Secretary's written order 
is final and is not subject to judicial review, except as provided in 
paragraph (g) of this section.
    (f) Delivery. A copy of any temporary denial order issued or renewed 
and any final decision on appeal shall be published in the Federal 
Register and shall be delivered to BXA and to the respondent, or any 
agent designated for this purpose, and to any related person in the same 
manner as provided in Sec. 766.5 of this part for filing for papers 
other than a charging letter.
    (g) Judicial review. A respondent temporarily denied export 
privileges by order of the Under Secretary may appeal to the United 
States Court of Appeals for the District of Columbia pursuant to 50 
U.S.C. app. Sec. 2412(d)(3).



Sec. 766.25  Administrative action denying permission to apply for or use export licenses.

    (a) General. The Director of the Office of Exporter Services, in 
consultation with the Director of the Office of Export Enforcement, may 
deny permission to apply for or use any license, including any License 
Exception, to any person who has been convicted of a violation of the 
EAA, the EAR, or any order, license or authorization issued thereunder; 
any regulation, license or order issued under the International 
Emergency Economic Powers Act (50 U.S.C. 1701-1706); 18 U.S.C. 793, 794 
or 798; section 4(b) of the Internal Security Act of 1950 (50 U.S.C. 
783(b)), or section 38 of the Arms Export Control Act (22 U.S.C. 2778).
    (b) Procedure. Upon notification that a person has been convicted of 
a violation of one or more of the provisions specified in paragraph (a) 
of this section, the Director of the Office of Exporter Services, in 
consultation with the Director of the Office of Export Enforcement, will 
determine whether to deny permission to apply for or use any export 
license, including any License Exception, to any such person. The 
Director of the Office of Exporter Services will notify each person 
denied under this section by letter stating that permission to apply for 
or use export licenses has been denied.
    (c) Criteria. In determining whether and for how long to deny U.S. 
export privileges to a person previously convicted of one or more of the 
statutes set forth in paragraph (a) of this section, the Director of the 
Office of Exporter Services may take into consideration any relevant 
information, including, but not limited to, the seriousness of the 
offense involved in the criminal prosecution, the nature and duration of 
the criminal sanctions imposed, and whether the person has undertaken 
any corrective measures.
    (d) Duration. Any denial of permission to apply for or use export 
licenses, including any License Exception, under this section shall not 
exceed 10 years from the date of the conviction of the person who is 
subject to the denial.
    (e) Effect. Any person denied permission to apply for and use 
licenses under this section will be considered a ``person denied export 
privileges'' for purposes of Sec. 736.2(b)(4) (General Prohibition 4--
Engage in actions prohibited by a denial order) and Sec. 764.2(k) of the 
EAR.
    (f) Publication. The name and address(es) of any person denied 
permission to apply for or use export licenses under this section will 
be published as described in Supplement No. 2 to part 764 of the EAR, 
noting that such action

[[Page 439]]

was taken pursuant to this section and section 11(h) of the EAA.
    (g) Appeal. An appeal of an action under this section will be 
pursuant to part 756 of the EAR.
    (h) Applicability to related person. The Director of the Office of 
Exporter Services, in consultation with the Director of the Office of 
Export Enforcement, may take action in accordance with Sec. 766.23 of 
this part to make applicable to related persons an order that is being 
sought or that has been issued under this section.



PART 768--FOREIGN AVAILABILITY DETERMINATION PROCEDURES AND CRITERIA--Table of Contents




Sec.
768.1  Introduction.
768.2  Foreign availability described.
768.3  Foreign availability assessment.
768.4  Initiation of an assessment.
768.5  Contents of foreign availability submissions and Technical 
          Advisory Committee certifications.
768.6  Criteria.
768.7  Procedures.
768.8  Eligibility of expedited licensing procedures for non-controlled 
          countries.
768.9  Appeals of negative foreign availability determinations.
768.10  Removal of controls on less sophisticated items.

Supplement No. 1 to Part 768--Evidence of Foreign Availability
Supplement No. 2 to Part 768--Items Eligible For Expedited Licensing 
          Procedures  [Reserved]

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Executive Order 13026 
(November 15, 1996, 61 FR 58767) Notice of August 15, 1995 (60 FR 42767, 
August 17, 1995); and Notice of August 14, 1996 (61 FR 42527).

    Source: 61 FR 12915, Mar. 25, 1996, unless otherwise noted.



Sec. 768.1  Introduction.

    In this part, references to the Export Administration Regulations 
(EAR) are references to 15 CFR chapter VII, subchapter C.
    (a) Authority. Pursuant to sections 5(f) and 5(h) of the Export 
Administration Act (EAA), the Under Secretary of Commerce for Export 
Administration directs the Bureau of Export Administration (BXA) in 
gathering and analyzing all the evidence necessary for the Secretary to 
determine foreign availability.
    (b) Scope. This part applies only to the extent that items are 
controlled for national security purposes. This part does not apply to 
encryption items that were formerly controlled on the U.S. Munitions 
List and that were transferred to the Commerce Control List consistent 
with E.O. 13026 of November 15, 1996 (61 FR 58767) and pursuant to the 
Presidential Memorandum of that date, which shall not be subject to any 
mandatory foreign availability review procedures.
    (c) Types of programs. There are two general programs of foreign 
availability:
    (1) Foreign availability to controlled countries. In this category 
are denied license assessments (see Secs. 768.4(b) and 768.7 of this 
part) and decontrol assessments (see Secs. 768.4(c) and 768.7 of this 
part).
    (2) Foreign availability to non-controlled countries. In this 
category are denied license assessments, decontrol assessments, and 
evaluations of eligibility for expedited licensing (see Sec. 768.8 of 
this part).
    (d) Definitions. The following are definitions of terms used in this 
part 768:
    Allegation. See foreign availability submission.
    Assessment. An evidentiary analysis that BXA conducts concerning the 
foreign availability of a given item based on the assessment criteria, 
data gathered by BXA, and the data and recommendations submitted by the 
Departments of Defense and State and other relevant departments and 
agencies, TAC committees, and industry.
    Assessment criteria. Statutorily established criteria that must be 
assessed for the Secretary to make a determination with respect to 
foreign availability. They are, available-in-fact, from a non-U.S. 
source, in sufficient quantity so as to render the control ineffective, 
and of comparable quality. (See Sec. 768.6 of this part).
    Available-in-fact. An item is available-in-fact to a country if it 
is produced within the country or if it may be obtained by that country 
from a third country. Ordinarily, items will not be considered 
available-in-fact to

[[Page 440]]

non-controlled countries if the items are available only under a 
validated national security license or a comparable authorization from a 
country that maintains export controls on such items cooperatively with 
the United States.
    Claimant. Any party who makes a foreign availability submission, 
excluding TACs.
    Comparable quality. An item is of comparable quality to an item 
controlled under the EAR if it possesses the characteristics specified 
in the Commerce Control List (CCL) for that item and is alike in key 
characteristics that include, but are not limited to: (1) Function; (2) 
technological approach; (3) performance thresholds; (4) maintainability 
and service life; and (5) any other attribute relevant to the purpose 
for which the control was placed on the item.
    Controlled countries. Albania, Armenia, Azerbaijan, Belarus, 
Bulgaria, Cambodia, Cuba, Estonia, Georgia, Kazakhstan, Kyrgystan, Laos, 
Latvia, Lithuania, Moldova, Mongolia, North Korea, Romania, Russia, 
Tajikistan, Turkmenistan, Ukraine, Uzbekistan, Vietnam and the People's 
Republic of China.
    Decontrol. Removal of license requirements under the EAR.
    Decontrol assessment. An assessment of the foreign availability of 
an item to a country or countries for purposes of determining whether 
decontrol is warranted. Such assessments may be conducted after BXA 
receives a foreign availability submission or a TAC certification, or by 
the Secretary's own initiative.
    Denied license assessment. A foreign availability assessment 
conducted as a result of a claimant's allegation of foreign availability 
for an item (or items) that BXA has denied or has issued a letter of 
intent to deny a license. If the Secretary determines that foreign 
availability exists, BXA's approval of a license will be limited to the 
items, countries, and quantities in the allegation.
    Determination. The Secretary's decision that foreign availability 
within the meaning of the EAA does or does not exist. (See Sec. 768.7 of 
this part).
    Expedited licensing procedure eligibility evaluation. An evaluation 
that BXA initiates for the purpose of determining whether an item is 
eligible for the expedited licensing procedure. (See Sec. 768.8 of this 
part).
    Expedited licensing procedures. Under expedited licensing 
procedures, BXA reviews and processes a license application for the 
export of an eligible item to a non-controlled country within statutory 
time limits. Licenses are deemed approved unless BXA denies within the 
statutory time limits (See Sec. 768.8 of this part).
    Foreign availability submission (FAS). An allegation of foreign 
availability a claimant makes, supported by reasonable evidence, and 
submits to BXA. (See Sec. 768.5 of this part).
    Item. Any commodity, software, or technology.
    Items eligible for non-controlled country expedited licensing 
procedures. The items described in Supplement No. 2 to this part 768 are 
eligible for the expedited license procedures (See Sec. 768.8 of this 
part).
    National Security Override (NSO). A Presidential decision to 
maintain export controls on an item notwithstanding its foreign 
availability as determined under the EAA. The President's decision is 
based on his/her determination that the absence of the controls would 
prove detrimental to the national security of the United States. Once 
the President makes such a decision, the President must actively pursue 
negotiations to eliminate foreign availability with the governments of 
the sources of foreign availability. (See Sec. 768.7 of this part).
    Non-controlled countries. Any country not defined as a controlled 
country by this section.
    Non-U.S. source/foreign source. A person located outside the 
jurisdiction of the United States (as defined in part 772 of the EAR).
    Reasonable evidence. Relevant information that is credible.
    Reliable evidence. Relevant information that is credible and 
dependable.
    Secretary. As used in this part, the Secretary refers to the 
Secretary of Commerce or his/her designee.
    Similar quality. An item is of similar quality to an item that is 
controlled

[[Page 441]]

under the EAR if it is substantially alike in key characteristics that 
may include, but are not limited to: (1) Function; (2) technological 
approach; (3) performance thresholds; (4) maintainability and service 
life; and (5) any other attribute relevant to the purpose for which the 
control was placed on the item.
    Sufficient quantity. The amount of an item that would render the 
U.S. export control, or the denial of the license in question, 
ineffective in achieving its purpose. For a controlled country, it is 
the quantity that meets the military needs of that country so that U.S. 
exports of the item to that country would not make a significant 
contribution to its military potential.
    Technical Advisory Committee (TAC). A Committee created under 
section 5(h) of the EAA that advises and assists the Secretary of 
Commerce, the Secretary of Defense, and any other department, agency, or 
official of the Government of the United States to which the President 
delegates authority under the EAA on export control matters related to 
specific areas of controlled items.
    TAC certification. A statement that a TAC submits to BXA, supported 
by reasonable evidence, documented as in a FAS, that foreign 
availability to a controlled country exists for an item that falls 
within the TAC's area of technical expertise.

[61 FR 12915, Mar. 25, 1996, as amended at 61 FR 68585, Dec. 30, 1996]



Sec. 768.2  Foreign availability described.

    (a) Foreign availability. Foreign availability exists when the 
Secretary determines that an item is comparable in quality to an item 
subject to U.S. national security export controls, and is available-in-
fact to a country, from a non-U.S. source, in sufficient quantities to 
render the U.S. export control of that item or the denial of a license 
ineffective. For a controlled country, such control or denial is 
``ineffective'' when maintaining such control or denying a specific 
license would not restrict the availability of items that would make a 
significant contribution to the military potential of the controlled 
country or combination of countries detrimental to the national security 
of the United States (see sections 5(a) and 3(2)(A) of the EAA.)
    (b) Types of foreign availability. There are two types of foreign 
availability:
    (1) Foreign availability to a controlled country; and
    (2) Foreign availability to a non-controlled country.

(Note to paragraph (b) of this section: See Sec. 768.7 of this part for 
delineation of the foreign availability assessment procedures, and 
Sec. 768.6 of this part for the criteria used in determining foreign 
availability)



Sec. 768.3  Foreign availability assessment.

    (a) Foreign availability assessment. A foreign availability 
assessment is an evidentiary analysis that BXA conducts to assess the 
foreign availability of a given item according to the assessment 
criteria, based on data submitted by a claimant, the data gathered by 
BXA, and the data and recommendations submitted by the Departments of 
Defense and State and other relevant departments and agencies, TAC 
committees, and industry. BXA uses the results of the analysis in 
formulating its recommendation to the Secretary on whether foreign 
availability exists for a given item. If the Secretary determines that 
foreign availability exists, the Secretary will decontrol the item for 
national security reasons or approve the license in question if there is 
no foreign policy reason to deny the license, unless the President 
exercises a National Security Override (see Sec. 768.7 of this part). 
The effect of any such determination on the effectiveness of foreign 
policy controls may be considered independent of this part.
    (b) Types of assessments. There are two types of foreign 
availability assessments:
    (1) Denied license assessment; and
    (2) Decontrol assessment.
    (c) Expedited licensing procedures. See Sec. 768.8 of this part for 
the evaluation of eligibility of an item for the expedited licensing 
procedures.

[61 FR 12915, Mar. 25, 1996, as amended at 61 FR 68585, Dec. 30, 1996]



Sec. 768.4  Initiation of an assessment.

    (a) Assessment request. To initiate an assessment, each claimant or 
TAC

[[Page 442]]

must submit a FAS or a TAC Certification to BXA. TACs are authorized to 
certify foreign availability only to controlled countries. Claimants can 
allege foreign availability for either controlled or non-controlled 
countries.
    (b) Denied license assessment. A claimant whose license application 
BXA has denied, or for which it has issued a letter of intent to deny on 
national security grounds, may request that BXA initiate a denied 
license assessment by submitting a Foreign Availability Submission (FAS) 
within 90 days after denial of the license. As part of its submission, 
the claimant must request that the specified license application be 
approved on the grounds of foreign availability. The evidence must 
relate to the particular export as described on the license application 
and to the alleged comparable item. If foreign availability is found, 
the Secretary will approve the license for the specific items, 
countries, and quantities listed on the application. The denied license 
assessment procedure, however, is not intended to result in the removal 
of the U.S. export control on an item by incrementally providing a 
country with amounts that, taken together, would constitute a sufficient 
quantity of an item. The Secretary will not approve on foreign 
availability grounds a denied license if the approval of such license 
would itself render the U.S. export control ineffective in achieving its 
purpose. In the case of a positive determination, the Secretary will 
determine whether a decontrol assessment is warranted. If so, then BXA 
will initiate a decontrol assessment.
    (c) Decontrol assessment. (1) Any claimant may at any time request 
that BXA initiate a decontrol assessment by a FAS to BXA alleging 
foreign availability to any country or countries.
    (2) A TAC may request that BXA initiate a decontrol assessment at 
any time by submitting a TAC Certification to BXA that there is foreign 
availability to a controlled country for items that fall within the area 
of the TAC's technical expertise.
    (3) The Secretary, on his/her own initiative, may initiate a 
decontrol assessment.
    (d) BXA mailing address. All foreign availability submissions and 
TAC certifications should be submitted to: Department of Commerce, 
Bureau of Export Administration, 14th Street and Pennsylvania Avenue, 
NW, Room 3877, Washington, DC 20230.



Sec. 768.5  Contents of foreign availability submissions and Technical Advisory Committee certifications.

    (a) All foreign availability submissions must contain, in addition 
to information on product or technology alleged to be available from 
foreign sources, at least:
    (1) The name of the claimant;
    (2) The claimant's mailing and business address;
    (3) The claimant's telephone number; and
    (4) A contact point and telephone number.
    (b) Foreign availability submissions and TAC certifications should 
contain as much evidence as is available to support the claim, 
including, but not limited to:
    (1) Product names and model designations of the items alleged to be 
comparable;
    (2) Extent to which the alleged comparable item is based on U.S. 
technology;
    (3) Names and locations of the non-U.S. sources and the basis for 
claiming that the item is a non-U.S. source item;
    (4) Key performance elements, attributes, and characteristics of the 
items on which a qualitative comparison may be made;
    (5) Non-U.S. source's production quantities and/or sales of the 
alleged comparable items and marketing efforts;
    (6) Estimated market demand and the economic impact of the control;
    (7) Product names, model designations, and value of U.S. controlled 
parts and components incorporated in the items alleged to be comparable; 
and
    (8) The basis for the claim that the item is available-in-fact to 
the country or countries for which foreign availability is alleged.
    (c) Supporting evidence of foreign availability may include, but is 
not limited to, the following:

[[Page 443]]

    (1) Foreign manufacturers' catalogs, brochures, operation or 
maintenance manuals;
    (2) Articles from reputable trade and technical publications;
    (3) Photographs;
    (4) Depositions based on eyewitness accounts; and
    (5) Other credible evidence.

    Note to paragraph (c) of this section: See Supplement No. 1 to part 
768 for additional examples of supporting evidence.

    (d) Upon receipt of a FAS or TAC certification, BXA will review it 
to determine whether there is sufficient evidence to support the belief 
that foreign availability may exist. If BXA determines the FAS or TAC 
certification is lacking in supporting evidence, BXA will seek 
additional evidence from appropriate sources, including the claimant or 
TAC. BXA will initiate the assessment when it determines that it has 
sufficient evidence that foreign availability may exist. Claimant and 
TAC certified assessments will be deemed to be initiated as of the date 
of such determination.
    (e) Claimants and TACs are advised to review the foreign 
availability assessment criteria described in Sec. 768.6 of this part 
and the examples of evidence described in Supplement No. 1 to part 768 
when assembling supporting evidence for inclusion in the FAS or TAC 
certification.



Sec. 768.6  Criteria.

    BXA will evaluate the evidence contained in a FAS or TAC 
certification and all other evidence gathered in the assessment process 
in accordance with certain criteria that must be met before BXA can 
recommend a positive determination to the Secretary. The criteria are 
defined in Sec. 768.1(d) of this part. In order to initiate an 
assessment, each FAS and TAC certification should address each of these 
criteria. The criteria are statutorily prescribed and are:
    (a) Available-in-fact;
    (b) Non-U.S. source;
    (c) Sufficient quantity; and
    (d) Comparable quality.



Sec. 768.7  Procedures.

    (a) Initiation of an assessment. (1) Once BXA accepts a FAS or TAC 
certification of foreign availability, BXA will notify the claimant or 
TAC that it is initiating the assessment.
    (2) BXA will publish a Federal Register notice of the initiation of 
any assessment.
    (3) BXA will notify the Departments of Defense and State, the 
intelligence community, and any other departments, agencies and their 
contractors that may have information concerning the item on which BXA 
has initiated an assessment. Each such department, agency, and 
contractor shall provide BXA all relevant information concerning the 
item. BXA will invite interested departments and agencies to participate 
in the assessment process (See paragraph (e) of this section).
    (b) Data gathering. BXA will seek and consider all available 
information that bears upon the presence or absence of foreign 
availability, including but not limited to that evidence described in 
Sec. 768.5 (b) and (c) of this part. As soon as BXA initiates the 
assessment, it will seek evidence relevant to the assessment, including 
an analysis of the military needs of a selected country or countries, 
technical analysis, and intelligence information from the Departments of 
Defense and State, and other U.S. agencies. Evidence is particularly 
sought from: industry sources worldwide; other U.S. organizations; 
foreign governments; commercial, academic and classified data bases; 
scientific and engineering research and development organizations; and 
international trade fairs.
    (c) Analysis. BXA will conduct its analysis by evaluating whether 
the reasonable and reliable evidence that is relevant to each of the 
foreign availability criteria provides a sufficient basis to recommend a 
determination that foreign availability does or does not exist.
    (d) Recommendation and determination. (1) Upon completion of each 
assessment, BXA, on the basis of its analysis, will recommend that the 
Secretary make a determination either that there is or that there is not 
foreign availability, whichever the evidence supports. The assessment 
upon which

[[Page 444]]

BXA bases its recommendation will accompany the recommendation to the 
Secretary.
    (2) BXA will recommend on the basis of its analysis that the 
Secretary determine that foreign availability exists to a country when 
the available evidence demonstrates that an item of comparable quality 
is available-in-fact to the country, from non-U.S. sources, in 
sufficient quantity so that continuation of the existing national 
security export control, or denial of the license application in 
question on national security grounds, would be ineffective in achieving 
its purpose. For a controlled country, such control or denial is 
``ineffective'' when comparable items are available-in-fact from foreign 
sources in sufficient quantities so that maintaining such control or 
denying a license would not be effective in restricting the availability 
of items that would make a significant contribution to the military 
potential of any country or combination of countries detrimental to the 
national security of the United States.
    (3) The Secretary will make the determination of foreign 
availability on the basis of the BXA assessment and recommendation; the 
Secretary's determination will take into account the evidence provided 
to BXA, the recommendations of the Secretaries of Defense and State and 
any other interested agencies, and any other information that the 
Secretary considers relevant.
    (4) For all decontrol and denied license assessments (under section 
5(f)(3) of the EAA) initiated by a FAS, the Secretary will make a 
determination within 4 months of the initiation of the assessment and 
will notify the claimant. The Secretary will submit positive 
determinations for review to the appropriate departments and agencies.
    (5) The deadlines for determinations based on self-initiated and 
TAC-initiated assessments are different from the deadlines for claimant-
initiated assessments (see paragraphs (f)(2) and (f)(3) of this 
section).
    (e) Interagency review. BXA will notify all appropriate U.S. 
agencies and Departments upon the initiation of an assessment and will 
invite their participation in the assessment process. BXA will provide 
all interested agencies and departments an opportunity to review source 
material, draft analyses and draft assessments immediately upon their 
receipt or production. For claimant-initiated assessments, BXA will 
provide a copy of all positive recommendations and assessments to 
interested agencies and departments for their review following the 
Secretary's determination of foreign availability. For self-initiated 
and TAC-initiated assessments, BXA will provide all interested agencies 
an opportunity to review and comment on the assessment.
    (f) Notification. (1) No later than 5 months after the initiation of 
an assessment based on a FAS (claimant assessments), the Secretary will 
inform the claimant in writing and will submit for publication in the 
Federal Register a notice that:
    (i) Foreign availability exists, and
    (A) The requirement of a license has been removed or the license 
application in question has been approved; or
    (B) The President has determined that for national security purposes 
the export controls must be maintained or the license application must 
be denied, notwithstanding foreign availability, and that appropriate 
steps to eliminate the foreign availability are being initiated; or
    (C) In the case of an item controlled multilaterally under the 
former COCOM regime, the U.S. Government will conduct any necessary 
consultations concerning the proposed decontrol or approval of the 
license with the former COCOM regime for a period of up to 4 months from 
the date of the publication of the determination in the Federal Register 
(the U.S. Government may remove the license requirement for exports to 
non-controlled countries pending completion of the former COCOM regime 
review process); or
    (ii) Foreign availability does not exist.
    (2) For all TAC certification assessments, the Secretary will make a 
foreign availability determination within 90 days following initiation 
of the assessment. BXA will prepare and submit a report to the TAC and 
to the Congress stating that:

[[Page 445]]

    (i) The Secretary has found foreign availability and has removed the 
license requirement; or
    (ii) The Secretary has found foreign availability, but has 
recommended to the President that negotiations be undertaken to 
eliminate the foreign availability; or
    (iii) The Secretary has not found foreign availability.
    (3) There is no statutory deadline for assessments self-initiated by 
the Secretary or for the resulting determination. However, BXA will make 
every effort to complete such assessments and determinations promptly.
    (g) Foreign availability to controlled countries. When the Secretary 
determines that an item controlled for national security reasons is 
available to a controlled country and the President does not issue a 
National Security Override (NSO), BXA will submit the determination to 
the Department of State, along with a draft proposal for the 
multilateral decontrol of the item or for the former COCOM regime 
approval of the license. The Department of State will submit the 
proposal or the license for former COCOM regime review. The former COCOM 
regime will have up to 4 months for review of the proposal.
    (h) Foreign availability to non-controlled countries. If the 
Secretary determines that foreign availability to non-controlled 
countries exists, the Secretary will decontrol the item for export to 
all non-controlled countries where it is found to be available, or 
approve the license in question, unless the President exercises a 
National Security Override.
    (i) Negotiations to eliminate foreign availability. (1) The 
President may determine that an export control must be maintained 
notwithstanding the existence of foreign availability. Such a 
determination is called a National Security Override (NSO) and is based 
on the President's decision that the absence of the control would prove 
detrimental to the United States national security. Unless extended (as 
described in paragraph (i)(7) of this section), an NSO is effective for 
6 months. Where the President invokes an NSO, the U.S. Government will 
actively pursue negotiations with the government of any source country 
during the 6 month period to eliminate the availability.
    (2) There are two types of National Security Overrides:
    (i) An NSO of a determination of foreign availability resulting from 
an assessment initiated pursuant to section 5(f) of the EAA (claimant 
and self-initiated assessments); and
    (ii) An NSO of a determination of foreign availability resulting 
from an assessment initiated pursuant to section 5(h) of the EAA (TAC-
certification assessments).
    (3) For an NSO resulting from an assessment initiated under section 
5(f) of the EAA, the Secretary of any agency may recommend that the 
President exercise the authority under the EAA to retain the controls or 
deny the license notwithstanding the finding of foreign availability.
    (4) For an NSO resulting from an assessment initiated under section 
5(h) of the EAA, the Secretary of Commerce may recommend that the 
President exercise the authority under the EAA to retain the controls 
notwithstanding the finding of foreign availability.
    (5) Under an NSO resulting from an assessment initiated under 
section 5(f) of the EAA, the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on International Relations of 
the House of Representatives will be notified of the initiation of the 
required negotiations. The notice will include an explanation of the 
national security interest that necessitates the retention of controls.
    (6) Under an NSO resulting from an assessment initiated under 
section 5(f) of the EAA, BXA will publish notices in the Federal 
Register consisting of:
    (i) The Secretary's determination of foreign availability;
    (ii) The President's decision to exercise the NSO;
    (iii) A concise statement of the basis for the President's decision; 
and
    (iv) An estimate of the economic impact of the decision.
    (7) The 6 month effective period for an NSO may be extended up to an 
additional 12 months if, prior to the end of the 6 months, the President 
certifies to Congress that the negotiations are progressing, and 
determines that the absence of the controls would continue to

[[Page 446]]

be detrimental to the United States national security.
    (8) After the conclusion of negotiations, BXA will retain the 
control only to the extent that foreign availability is eliminated. If 
foreign availability is not eliminated, BXA will decontrol the item by 
removing the requirement for a license for the export of the item to the 
destinations covered by the assessment. To the extent that the 
negotiations are successful and the foreign availability is eliminated, 
BXA will remove the license requirement for the export of the item to 
any country that has agreed to eliminate foreign availability.
    (j) Changes in foreign availability. If BXA becomes aware of 
conditions, including new evidence, that affect a previous determination 
that foreign availability exists or does not exist, BXA may review the 
conditions. If BXA finds that the foreign availability previously 
determined no longer exists, or that foreign availability not earlier 
found now does exist, BXA will make a recommendation to the Secretary of 
Commerce for the appropriate changes in the control. The Secretary of 
Commerce will make a determination, and BXA will publish a Federal 
Register notice of the determination.



Sec. 768.8  Eligibility of expedited licensing procedures for non-controlled countries.

    (a) BXA determines the eligibility of an item for expedited 
licensing procedures on the basis of an evaluation of the foreign 
availability of the item. Eligibility is specific to the items and the 
countries to which they are found to be available.
    (b) BXA will initiate an eligibility evaluation:
    (1) On its own initiative;
    (2) On receipt of a FAS; or
    (3) On receipt of a TAC certification.
    (c) Upon initiation of an eligibility evaluation following receipt 
of either a FAS or TAC certification, BXA will notify the claimant or 
TAC of the receipt and initiation of an evaluation and publish a Federal 
Register notice of the initiation of the evaluation.
    (d) The criteria for determining eligibility for expedited licensing 
procedures are:
    (1) The item must be available-in-fact to the specified
    non-controlled country from a foreign source;
    (2) The item must be of a quality similar to that of the U.S.-
controlled item; and
    (3) The item must be available-in-fact to the specified non-
controlled country without effective restrictions.
    (e) Within 30 days of initiation of the evaluation, the Secretary of 
Commerce will make a determination of foreign availability on the basis 
of the BXA evaluation and recommendation, taking into consideration the 
evidence the Secretaries of Defense, State, and other interested 
agencies provide to BXA and any other information that the Secretary 
considers relevant.
    (f) Within 30 days of the receipt of the FAS or TAC certification, 
BXA will publish the Secretary's determination in the Federal Register, 
that the item will or will not be eligible for expedited licensing 
procedures to the stated countries and, where appropriate, amend 
Supplement No. 2 to part 768.
    (g) Following completion of a self-initiated evaluation, BXA will be 
notified of the Secretary's determination and, where appropriate, 
Supplement No. 2 to part 768 will be amended.
    (h) Foreign availability submissions and TAC certifications to 
initiate an expedited licensing procedure evaluation must be clearly 
designated on their face as a request for expedited licensing procedure 
and must specify the items, quantities and countries alleged eligible. 
Submissions and certifications should be sent to: Department of 
Commerce, Bureau of Export Administration, 14th Street and Pennsylvania 
Avenue, NW., Room 3877, Washington, DC 20230.



Sec. 768.9  Appeals of negative foreign availability determinations.

    Appeals of negative determinations will be conducted according to 
the standards and procedures described in part 756 of the EAR. A 
Presidential decision (NSO) to deny a license or continue controls 
notwithstanding a determination of foreign availability is not subject 
to appeal.

[[Page 447]]



Sec. 768.10  Removal of controls on less sophisticated items.

    Where the Secretary has removed national security controls on an 
item for foreign availability reasons, the Secretary will also remove 
controls on similar items that are controlled for national security 
reasons and whose functions, technological approach, performance 
thresholds, and other attributes that form the basis for national 
security export controls do not exceed the technical parameters of the 
item that BXA has decontrolled for foreign availability reasons.

     Supplement No. 1 to Part 768--Evidence of Foreign Availability

    This supplement provides a list of examples of evidence that the 
Bureau of Export Administration (BXA) has found to be useful in 
conducting assessments of foreign availability. A claimant submitting 
evidence supporting a claim of foreign availability should review this 
list for suggestions as evidence is collected. Acceptable evidence 
indicating possible foreign availability is not limited to these 
examples, nor is any one of these examples, usually, in and of itself, 
necessarily sufficient to meet a foreign availability criterion. A 
combination of several types of evidence for each criterion usually is 
required. A Foreign Availability Submission (FAS) should include as much 
evidence as possible on all four of the criteria listed below. BXA 
combines the submitted evidence with the evidence that it collects from 
other sources. BXA evaluates all evidence, taking into account factors 
that may include, but are not limited to: Information concerning the 
source of the evidence, corroborative or contradictory indications, and 
experience concerning the reliability or reasonableness of such 
evidence. BXA will assess all relevant evidence to determine whether 
each of the four criteria has been met. Where possible, all information 
should be in writing. If information is based on third party 
documentation, the submitter should provide such documentation to BXA. 
If information is based on oral statements a third party made, the 
submitter should provide a memorandum of the conversation to BXA if the 
submitter cannot obtain a written memorandum from the source. BXA will 
amend this informational list as it identifies new examples of evidence.
    (a) Examples of evidence of foreign availability:
    The following are intended as examples of evidence that BXA will 
consider in evaluating foreign availability. BXA will evaluate all 
evidence according to the provisions in Sec. 768.7(c) of this part in 
order for it to be used in support of a foreign availability 
determination. This list is illustrative only.
    (1) Available-in-fact:
    (i) Evidence of marketing of an item in a foreign country (e.g., an 
advertisement in the media of the foreign country that the item is for 
sale there);
    (ii) Copies of sales receipts demonstrating sales to foreign 
countries;
    (iii) The terms of a contract under which the item has been or is 
being sold to a foreign country;
    (iv) Information, preferably in writing, from an appropriate foreign 
government official that the government will not deny the sale of an 
item it produces to another country in accordance with its laws and 
regulations;
    (v) Information, preferably in writing, from a named company 
official that the company legally can and would sell an item it produces 
to a foreign country;
    (vi) Evidence of actual shipments of the item to foreign countries 
(e.g., shipping documents, photographs, news reports);
    (vii) An eyewitness report of such an item in operation in a foreign 
country, providing as much information as available, including where 
possible the make and model of the item and its observed operating 
characteristics;
    (viii) Evidence of the presence of sales personnel or technical 
service personnel in a foreign country;
    (ix) Evidence of production within a foreign country;
    (x) Evidence of the item being exhibited at a trade fair in a 
foreign country, particularly for the purpose of inducing sales of the 
item to the foreign country;
    (xi) A copy of the export control laws or regulations of the source 
country, showing that the item is not controlled; or
    (xii) A catalog or brochure indicating the item is for sale in a 
specific country.
    (2) Foreign (non-U.S.) source:
    (i) Names of foreign manufacturers of the item including, if 
possible, addresses and telephone numbers;
    (ii) A report from a reputable source of information on commercial 
relationships that a foreign manufacturer is not linked financially or 
administratively with a U.S. company;
    (iii) A list of the components in the U.S. item and foreign item 
indicating model numbers and their sources;
    (iv) A schematic of the foreign item identifying its components and 
their sources;
    (v) Evidence that the item is a direct product of foreign technology 
(e.g., a patent law suit lost by a U.S. producer, a foreign patent);
    (vi) Evidence of indigenous technology, production facilities, and 
the capabilities at those facilities; or

[[Page 448]]

    (vii) Evidence that the parts and components of the item are of 
foreign origin or are exempt from U.S. licensing requirements by the 
parts and components provision Sec. 732.4 of the EAR.
    (3) Sufficient quantity:
    (i) Evidence that foreign sources have the item in serial 
production;
    (ii) Evidence that the item or its product is used in civilian 
applications in foreign countries;
    (iii) Evidence that a foreign country is marketing in the specific 
country an item of its indigenous manufacture;
    (iv) Evidence of foreign inventories of the item;
    (v) Evidence of excess capacity in a foreign country's production 
facility;
    (vi) Evidence that foreign countries have not targeted the item or 
are not seeking to purchase it in the West;
    (vii) An estimate by a knowledgeable source of the foreign country's 
needs; or
    (viii) An authoritative analysis of the worldwide market (i.e., 
demand, production rate for the item for various manufacturers, plant 
capacities, installed tooling, monthly production rates, orders, sales 
and cumulative sales over 5-6 years).
    (4) Comparable quality:
    (i) A sample of the foreign item;
    (ii) Operation or maintenance manuals of the U.S. and foreign items;
    (iii) Records or a statement from a user of the foreign item;
    (iv) A comparative evaluation, preferably in writing, of the U.S. 
and foreign items by, for example, a western producer or purchaser of 
the item, a recognized expert, a reputable trade publication, or 
independent laboratory;
    (v) A comparative list identifying, by manufacturers and model 
numbers, the key performance components and the materials used in the 
item that qualitatively affect the performance of the U.S. and foreign 
items;
    (vi) Evidence of the interchangeability of U.S. and foreign items;
    (vii) Patent descriptions for the U.S. and foreign items;
    (viii) Evidence that the U.S. and foreign items meet a published 
industry, national, or international standard;
    (ix) A report or eyewitness account, by deposition or otherwise, of 
the foreign item's operation;
    (x) Evidence concerning the foreign manufacturers' corporate 
reputation;
    (xi) Comparison of the U.S. and foreign end item(s) made from a 
specific commodity, tool(s), device(s), or technical data; or
    (xii) Evidence of the reputation of the foreign item including, if 
possible, information on maintenance, repair, performance, and other 
pertinent factors.

  Supplement No. 2 to Part 768--Items Eligible for Expedited Licensing 
                          Procedures [Reserved]



PART 770--INTERPRETATIONS--Table of Contents




Sec.
770.1  Introduction.
770.2  Commodity interpretations.
770.3  Interpretations related to exports of technology and software to 
          destinations in Country Group D:1.
770.4  Interpretations related to chemical mixtures--de minimis 
          exceptions examples.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12924, 3 CFR, 1994 Comp., p. 917; Notice of August 15, 1995 (60 FR 
42767, August 17, 1995).

    Source: 61 FR 12920, Mar. 25, 19 unless otherwise noted.



Sec. 770.1  Introduction.

    In this part, references to the EAR are references to 15 CFR chapter 
VII, subchapter C. This part provides commodity, technology, and 
software interpretations. These interpretations clarify the scope of 
controls where such scope is not readily apparent from the Commerce 
Control List (CCL) (see Supplement No. 1 to part 774 of the EAR) and 
other provisions of the Export Administration Regulations.



Sec. 770.2  Commodity interpretations.

    (a) Interpretation 1: Anti-friction bearing or bearing systems and 
specially designed parts. (1) Anti-friction bearings or bearing systems 
shipped as spares or replacements are classified under Export Control 
Classification Numbers (ECCNs) 2A001, 2A002, 2A003, 2A004, 2A005, and 
2A006 (ball, roller, or needle-roller bearings and parts). This applies 
to separate shipments of anti-friction bearings or bearing systems and 
anti-friction bearings or bearing systems shipped with machinery or 
equipment for which they are intended to be used as spares or 
replacement parts.
    (2) An anti-friction bearing or bearing system physically 
incorporated in a segment of a machine or in a complete machine prior to 
shipment loses its identity as a bearing. In this scenario, the machine 
or segment of machinery containing the bearing is the item subject to 
export control requirements.

[[Page 449]]

    (3) An anti-friction bearing or bearing system not incorporated in a 
segment of a machine prior to shipment, but shipped as a component of a 
complete unassembled (knocked-down) machine, is considered a component 
of a machine. In this scenario, the complete machine is the item subject 
to export license requirements.
    (b) Interpretation 2: Classification of ``parts'' of machinery, 
equipment, or other items--(1) An assembled machine or unit of equipment 
is being exported. In instances where one or more assembled machines or 
units of equipment are being exported, the individual component parts 
that are physically incorporated into the machine or equipment do not 
require a license. The license or general exception under which the 
complete machine or unit of equipment is exported will also cover its 
component parts, provided that the parts are normal and usual components 
of the machine or equipment being exported, or that the physical 
incorporation is not used as a device to evade the requirement for a 
license.
    (2) Parts are exported as spares, replacements, for resale, or for 
stock. In instances where parts are exported as spares, replacements, 
for resale, or for stock, a license is required only if the appropriate 
entry for the part specifies that a license is required for the intended 
destination.
    (c) Interpretation 3: Wire or cable cut to length. (1) Wire or cable 
may be included as a component of a system or piece of equipment, 
whether or not the wire or cable is cut to length and whether or not it 
is fitted with connectors at one or both ends, so long as it is in 
normal quantity necessary to make the original installation of the 
equipment and is necessary to its operation.
    (2) Wire or cable exported as replacement or spares, or for further 
manufacture is controlled under the applicable wire or cable ECCN only. 
This includes wire or cable, whether or not cut to length or fitted with 
connectors at one or both ends.
    (d) Interpretation 4: Telecommunications equipment and systems. 
Control equipment for paging systems (broadcast radio or selectively 
signalled receiving systems) is defined as circuit switching equipment 
in Category 5 of the CCL.
    (e) Interpretation 5: Numerical control systems--(1) Classification 
of ``Numerical Control'' Units. ``Numerical control'' units for machine 
tools, regardless of their configurations or architectures, are 
controlled by their functional characteristics as described in ECCN 
2B001.a. ``Numerical control'' units include computers with add-on 
``motion control boards''. A computer with add-on ``motion control 
boards'' for machine tools may be controlled under ECCN 2B001.a even 
when the computer alone without ``motion control boards'' is not subject 
to licensing requirements under Category 4 and the ``motion control 
boards'' are not controlled under ECCN 2B001.b.
    (2) Export documentation requirement. (i) When preparing a license 
application for a numerical control system, the machine tool and the 
control unit are classified separately. If either the machine tool or 
the control unit requires a license, then the entire unit requires a 
license. If either a machine tool or a control unit is exported 
separately from the system, the exported component is classified on the 
license application without regard to the other parts of a possible 
system.
    (ii) When preparing the Shipper's Export Declaration (SED), a system 
being shipped complete (i.e., machine and control unit), should be 
reported under the Schedule B number for each machine. When either a 
control unit or a machine is shipped separately, it should be reported 
under the Schedule B number appropriate for the individual item being 
exported.
    (f) Interpretation 6: Parts, accessories, and equipment exported as 
scrap. Parts, accessories, or equipment that are being shipped as scrap 
should be described on the SED in sufficient detail to be identified 
under the proper ECCN. When commodities declared as parts, accessories, 
or equipment are shipped in bulk, or are otherwise not packaged, packed, 
or sorted in accordance with normal trade practices, the Customs Officer 
may require evidence that the shipment is not scrap. Such evidence may 
include, but is not limited to, bills of sale, orders and correspondence 
indicating whether the commodities are

[[Page 450]]

scrap or are being exported for use as parts, accessories, or equipment.
    (g) Interpretation 7: Scrap arms, ammunition, and implements of war. 
Arms, ammunition, and implements of war, as defined in the U.S. 
Munitions List, and are under the jurisdiction of the U.S. Department of 
State (22 CFR parts 120 through 130), except for the following, which 
are under the jurisdiction of the Department of Commerce:
    (1) Cartridge and shell cases that have been rendered useless beyond 
the possibility of restoration to their original identity by means of 
excessive heating, flame treatment, mangling, crushing, cutting, or by 
any other method are ``scrap''.
    (2) Cartridge and shell cases that have been sold by the armed 
services as ``scrap'', whether or not they have been heated, flame-
treated, mangled, crushed, cut, or reduced to scrap by any other method.
    (3) Other commodities that may have been on the U.S. Munitions List 
are ``scrap'', and therefore under the jurisdiction of the Department of 
Commerce, if they have been rendered useless beyond the possibility of 
restoration to their original identify only by means of mangling, 
crushing, or cutting. When in doubt as to whether a commodity covered by 
the Munitions List has been rendered useless, exporters should consult 
the Office of Defense Trade Controls, U.S. Department of State, 
Washington, DC 20520, or the Exporter Counseling Division, Office of 
Exporter Services, Room 1099A, U.S. Department of Commerce, Washington, 
DC 20230, before reporting a shipment as metal scrap.
    (h) Interpretation 8: Military automotive vehicles and parts for 
such vehicles--(1) Military automotive vehicles. (i) For purposes of 
U.S. export controls, military automotive vehicles ``possessing or built 
to current military specifications differing materially from normal 
commercial specifications'' may include, but are not limited to, the 
following characteristics:
    (A) Special fittings for mounting ordnance or military equipment;
    (B) Bullet-proof glass;
    (C) Armor plate;
    (D) Fungus preventive treatment;
    (E) Twenty-four volt electrical systems;
    (F) Shielded electrical system (electronic emission suppression); or
    (G) Puncture-proof or run-flat tires.
    (ii) Automotive vehicles fall into two categories.
    (A) Military automotive vehicles on the Munitions List, new and 
used. Automotive vehicles in this category are primarily combat 
(fighting) vehicles, with or without armor and/or armament, ``designed 
for specific fighting function.'' These automotive vehicles are licensed 
for export by the U.S. Department of State (22 CFR parts 120 through 
130).
    (B) Military automotive vehicles not on the U.S. Munitions List, new 
and used. Automotive vehicles in this category are primarily transport 
vehicles designed for non-combat military purposes (transporting cargo, 
personnel and/or equipment, and/or for to wing other vehicles and 
equipment over land and roads in close support of fighting vehicles and 
troops). These automotive vehicles are licensed for export by the U.S. 
Department of Commerce.
    (iii) Parts for military automotive vehicles. Functional parts are 
defined as those parts making up the power train of the vehicles, 
including the electrical system, the cooling system, the fuel system, 
and the control system (brake and steering mechanism), the front and 
rear axle assemblies including the wheels, the chassis frame, springs 
and shock absorbers. Parts specifically designed for military automotive 
vehicles on the Munitions List are licensed for export by the U.S. 
Department of State (22 CFR parts 120 through 130).
    (iv) General instructions. Manufacturers of non-Munitions List 
automotive vehicles and/or parts will know whether their products meet 
the conditions described in this paragraph (h). Merchant exporters and 
other parties who are not sure whether their products (automotive 
vehicles and/or parts) meet these conditions should check with their 
suppliers for the required information before making a shipment under 
general exception or submitting an application to BXA for a license.
    (2) [Reserved]
    (i) Interpretation 9: Aircraft, parts, accessories and components. 
Aircraft,

[[Page 451]]

parts, accessories, and components defined in Categories VIII and IX of 
the Munitions List are under the export licensing authority of the U.S. 
Department of State (22 CFR parts 120 through 130). All other aircraft, 
and parts, accessories and components therefor, are under the export 
licensing authority of the U.S. Department of Commerce. The following 
aircraft, parts, accessories and components are under the licensing 
authority of the U.S. Department of Commerce:
    (1) Any aircraft (except an aircraft that has been demilitarized, 
but including aircraft specified in paragraph (i)(2) of this section) 
that conforms to a Federal Aviation Agency type certificate in the 
normal, utility, acrobatic, transport, or restricted category, provided 
such aircraft has not been equipped with or modified to include military 
equipment, such as gun mounts, turrets, rocket launchers, or similar 
equipment designed for military combat or military training purposes.
    (2) Only the following military aircraft, demilitarized (aircraft 
not specifically equipped, reequipped, or modified for military 
operations):
    (i) Cargo, bearing designations ``C-45 through C-118 inclusive,'' 
and ``C-121'';
    (ii) Trainers, bearing a ``T'' designation and using piston engines;
    (iii) Utility, bearing a ``U'' designation and using piston engines;
    (iv) Liaison, bearing an ``L'' designation; and
    (v) Observation, bearing an ``O'' designation and using piston 
engines.
    (3) All reciprocating engines.
    (4) Other aircraft engines not specifically designed or modified for 
military aircraft.
    (5) Parts, accessories, and components (including propellers), 
designed exclusively for aircraft and engines described in paragraphs 
(i)(1), (i)(2), (i)(3), and (i)(4) of this section.
    (6) General purpose parts, accessories, and components usable 
interchangeably on either military or civil aircraft.
    (j) Interpretation 10: Civil aircraft inertial navigation equipment. 
(1) The Department of Commerce has licensing jurisdiction over exports 
and reexports to all destinations of inertial navigation systems, 
inertial navigation equipment, and specially designed components 
therefor for ``civil aircraft''.
    (2) The Department of State, retains jurisdiction over all software 
and technology for inertial navigation systems and navigation equipment, 
and specially designed components therefor, for shipborne use, 
underwater use, ground vehicle use, spaceborne use or use other than 
``civil aircraft''.
    (k) Interpretation 11: Precursor chemicals. The following chemicals 
are controlled by ECCN 1C350. The appropriate Chemical Abstract Service 
Registry (C.A.S.) number and synonyms, (i.e., alternative names) are 
included to help you determine whether your chemicals are controlled by 
this entry. These chemicals require a license to all countries except 
Argentina, Australia, Austria, Belgium, Canada, Denmark, Czech Republic, 
Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, 
Japan, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, 
Spain, Sweden, Switzerland, and the United Kingdom.

(1) (C.A.S. #1341-49-7) Ammonium hydrogen bifluoride
    Acid ammonium fluoride
    Ammonium bifluoride
    Ammonium difluoride
    Ammonium hydrofluoride
    Ammonium hydrogen bifluoride
    Ammonium hydrogen difluoride
    Ammonium monohydrogen difluoride
(2) (C.A.S. #7784-34-1) Arsenic trichloride
    Arsenic (III) chloride
    Arsenous chloride
    Fuming liquid arsenic
    Trichloroarsine
(3) (C.A.S. #76-93-7) Benzilic acid
    .alpha.,.alpha.-Diphenyl-.alpha.-hydroxyacetic acid
    Diphenylglycolic acid
    .alpha.,.alpha.-Diphenylglycolic acid
    Diphenylhydroxyacetic acid
    .alpha.-Hydroxy-2,2-diphenylacetic acid
    2-Hydroxy-2,2-diphenylacetic acid
    .alpha.-Hydroxy-.alpha.-phenylbenzeneacetic acid
    Hydroxydiphenylacetic acid
(4) (C.A.S. #107-07-3) 2-Chloroethanol
    2-Chloro-1-ethanol
    Chloroethanol
    2-Chloroethyl alcohol
    Ethene chlorohydrin

[[Page 452]]

    Ethylchlorohydrin
    Ethylene chlorhydrin
    Ethylene chlorohydrin
    Glycol chlorohydrin
    Glycol monochlorohydrin
    2-Hydroxyethyl chloride
(5) (C.A.S. #78-38-6) Diethyl ethylphosphonate Ethylphosphonic acid 
diethyl ester
(6) (C.A.S. #15715-41-0) Diethyl methylphosphonite
    Diethoxymethylphosphine
    Diethyl methanephosphonite
    0,0-Diethyl methylphosphonite
    Methyldiethoxyphosphine
    Methylphosphonous acid diethyl ester
(7) (C.A.S. #2404-03-7) Diethyl-N, N-dimethylphosphoro-amidate
    N,N-Dimethyl-O,O'-diethyl phosphoramidate
    Diethyl dimethylphosphoramidate
    Dimethylphosphoramidic acid diethyl ester
(8) (C.A.S. #762-04-9) Diethyl phosphite
    Diethoxyphosphine oxide
    Diethyl acid phosphite
    Diethyl hydrogen phosphite
    Diethyo phosphonate
    Hydrogen diethyl phosphite
(9) (C.A.S. #100-37-8) N, N-Diethylethanolamine
    N,N-Diethyl-2-aminoethanol
    Diethyl (2-hydroxyethyl) amine
    N,N-Diethyl-N-(.beta.-hydroxyethyl) amine
    N,N-Diethyl-2-hydroxyethylamine
    Diethylaminoethanol
    2-(Diethylamino) ethanol
    2-(Diethylamino)ethyl alcohol
    N,N-Diethylmonoethanolamine
    (2-Hydroxyethyl) diethylamine
    2-Hydroxytriethylamine
(10) (C.A.S. #5842-07-9) N,N-Diisopropyl-.beta.-aminoethane thiol
    2-(Diisopropylamino) ethanethiol
    Diisopropylaminoethanethiol
    .beta.-Diisopropylaminoethanethiol
    2-(bis(1-Methylethyl)amino) ethanethiol
(11) (C.A.S. #4261-68-1) N, N-Diisopropyl-.2-aminoethyl chloride 
hydrochloride
(12) (C.A.S. #96-80-0) N,N-Diisopropyl-.beta.-aminoethanol
    N,N-Diisopropyl-2-aminoethanol
    2-(Diisopropylamino) ethanol
    (N,N-Diisopropylamino) ethanol
    2-(Diisopropylamino) ethyl alcohol
    N,N-Diisopropylethanolamine
(13) (C.A.S. #96-79-7) N,N-Diisopropyl-.beta.-aminoethyl chloride
    2-Chloro-N,N-diisopropylethanamine
    1-Chloro-N,N-diisopropylaminoethane
    2-Chloro-N,N-diisopropylethylamine
    N-(2-chloroethyl)-N-(1-methylethyl)-2-propanamine
    N-(2-Chloroethyl) diisopropylamine
    N,N-Diisopropyl-2-chloroethylamine
    1-(Diisopropylamino)-2-cholorethane
    2-(Diisopropylamino)ethyl chloride
    Diisopropylaminoethyl chloride
    .beta.-Diisopropylaminoethyl chloride
(14) (C.A.S. #108-18-9) Diisopropylamine
    N,N-Diisopropylamine
    N-(1-Methylethyl)-2-propanamine
(15) (C.A.S. #6163-75-3) Dimethyl ethylphosphonate
    Dimethyl ethanephosphonate
    Ethylphosphonic acid dimethyl ester
(16) (C.A.S. #756-79-6) Dimethyl methylphosphonate
    Dimethoxymethyl phosphine oxide
    Dimethyl methanephosphonate
    Methanephosphonic acid dimethyl ester
    Methylphosphonic acid dimethyl ester
(17) (C.A.S. #868-85-9) Dimethyl phosphite
    Dimethoxyphosphine oxide
    Dimethyl acid phosphite
    Dimethyl hydrogen phosphite
    Dimethyl phosphonate
    Hydrogen dimethyl phosphite
    Methyl phosphate
(18) (C.A.S. #124-40-3) Dimethylamine
    N-Methyl methanamine
(19) (C.A.S. #506-59-2) Dimethylamine hydrochloride
    Dimethylammonium chloride
    N-Methyl methanamine hydrochloride
(20) (C.A.S. #57856-11-8) O-Ethyl-2-diisoprophylaminoethyl 
methylphosphonite (QL)
    Methylphosphonous acid 2-(bis(1-methylethyl)amino)ethyl ethyl ester
(21) (C.A.S. #1498-40-4) Ethylphosphonous dichloride
    Dichloroethylphosphine
    Ethyl phosphonous dichloride
    Ethyldichlorophosphine
(22) (C.A.S. #430-78-4) Ethylphosphonus difluoride

[[Page 453]]

    Ethyldifluorophosphine
(23) (C.A.S. #1066-50-8) Ethylphosphonyl dichloride
    Dichloroethylphosphine oxide
    Ethanephosphonyl chloride
    Ethylphosphinic dichloride
    Ethylphosphonic acid dichloride
    Ethylphosphonic dichloride
(24) (C.A.S. #753-98-0) Ethylphosphonyl difluoride
    Ethyl difluorophosphite
    Ethyldifluorophosphine oxide
    Ethylphosphonic difluoride
(25) (C.A.S. #7664-39-3) Hydrogen fluoride
    Anhydrous hydrofluoric acid
    Fluorhydric acid
    Fluorine monohydride
    Hydrofluoric acid gas
(26) (C.A.S. #3554-74-3) 3-Hydroxyl-1-methylpiperidine
    3-Hydroxy-N-methylpiperidine
    1-Methyl-3-hydroxypiperidine
    N-Methyl-3-hydroxypiperidine
    1-Methyl-3-piperidinol
    N-Methyl-3-piperidonol
(27) (C.A.S. #76-89-1) Methyl benzilate
    Benzilic acid methyl ester
    .alpha.-Hydroxy-.alpha.-phenylbenzeneacetic acid methyl ester
    Methyl .alpha.-phenylmandelate
    Methyl diphenylglycolate
(28) (C.A.S. #676-83-5) Methylphosphonous dichloride
    Dichloromethylphosphine
    Methyldichlorophosphine
    Methylphosphorus dichloride
(29) (C.A.S. #753-59-3) Methylphosphonous diflouride
    Difluoromethylphosphine
    Methyldifluorophosphine
(30) (C.A.S. #676-97-1) Methylphosphonyl dichloride
    Dichloromethylphosphine oxide
    Methanephosphonodichloridic acid
    Methanephosphonyl chloride
    Methylphosphonic acid dichloride
    Methylphosphonic dichloride
    Methylphosphonodichloridic acid
    Methylphosphonyl chloride
(31) (C.A.S. #676-99-3) Methylphosphonyl difluoride
    Difluoromethylphosphine oxide
    Methyl difluorophosphite
    Methylphosphonic difluoride
(32) (C.A.S. #10025-87-3) Phosphorus oxychloride
    Phosphonyl trichloride
    Phosphoric chloride
    Phosphoric trichloride
    Phosphoroxychloride
    Phosphoroxytrichloride
    Phosphorus chloride oxide
    Phosphorus monoxide trichloride
    Phosphorus oxide trichloride
    Phosphorus oxytrichloride
    Phosphorus trichloride oxide
    Phosphoryl trichloride
    Trichlorophosphine oxide
    Trichlorophosphorus oxide
(33) (C.A.S. #10026-13-8) Phosphorus pentachloride
    Pentachlorophosphorane
    Pentachlorophosphorus
    Phosphoric chloride
    Phosphorus(V) chloride
    Phosphorus perchloride
(34) (C.A.S. #1314-80-3) Phosphorus pentasulfide
    Diphosphorus pentasulfide
    Phosphoric sulfide
    Phosphorus persulfide
    Phosphorus sulfide
(35) (C.A.S. #7719-12-2) Phosphorus trichloride
    Phosphorus chloride
    Trichlorophosphine
(36) C.A.S. #75-97-8) Pinacolone
    tert-Butyl methyl ketone
    2,2-Dimethyl-3-butanone
    3,3-Dimethyl-2-butanone
    2,2-Dimethylbutanone
    3,3-Dimethylbutanone
    1,1-Dimethylethyl methyl ketone
    Methyl tert-butyl ketone
    Pinacolin
    Pinacoline
    1,1,1-Trimethylacetone
(37) (C.A.S. #464-07-3) Pinacolyl alcohol
    tert-Butyl methyl carbinol
    2,2-Dimethyl-3-butanol
    3,3-Dimethyl-2-butanol
    1-Methyl-2,2-dimethylpropanol
(38) (C.A.S. #151-50-8) Potassium cyanide
(39) (C.A.S. #7789-23-3) Potassium fluoride
    Potassium monofluoride
(40) (C.A.S. #7789-29-9) Potassium hydrogen fluoride
    Hydrogen potassium difluoride
    Hydrogen potassium fluoride
    Potassium acid fluoride
    Potassium bifluoride
    Potassium hydrogen difluoride
    Potassium monohydrogen difluoride
(41) (C.A.S. #1619-34-7) 3-Quinuclidinol

[[Page 454]]

    1-Azabicyclo(2.2.2)octan-3-ol
    3-Hydroxyquinuclidine
(42) (C.A.S. #3731-38-2) 3-Quinuclidinone
    1-Azabicyclo(2.2.2)octan-3-one
    3-Oxyquinuclidine
    Quinuclidone
(43) (C.A.S.) #1333-83-1) Sodium bifluoride
    Sodium hydrogen difluoride
    Sodium hydrogen fluoride
(44) (C.A.S. #143-33-9) Sodium cyanide
(45) (C.A.S. #7681-49-4) Sodium fluoride
    Sodium monofluoride
(46) (C.A.S. #1313-82-2) Sodium sulfide
    Disodium monosulfide
    Disodium sulfide
    Sodium monosulfide
    Sodium sulphide
(47) (C.A.S. #10025-67-9) Sulfur Monochloride
(48) (C.A.S. #10545-99-0) Sulfur dicholoride
(49) (C.A.S. #111-48-8) Thiodiglycol
    Bis(2-hydroxyethyl) sulfide
    Bis(2-hydroxyethyl) thioether
    Di(2-hydroxyethyl) sulfide
    Diethanol sulfide
    2,2'-Dithiobis-(ethanol)
    3-Thiapentane-1,5-diol
    2,2'-Thiobisethanol
    2,2'-Thiodiethanol
    Thiodiethylene glycol
    2,2'-Thiodiglycol
(50) C.A.S. #7719-09-7) Thionyl chloride
    Sulfinyl chloride
    Sulfinyl dichloride
    Sulfur chloride oxide
    Sulfur oxychloride
    Sulfurous dichloride
    Sulfurous oxychloride
    Thionyl dichloride
(51) (C.A.S. #102-71-6) Triethanolamine
    Alkanolamine 244
    Nitrilotriethanol
    2,2',2''-Nitrilotriethanol
    2,2',2''-Nitrilotris(ethanol)
    TEA
    TEA (amino alcohol)
    Tri (2-hydroxyethyl) amine
    Triethanolamin
    Tris (.beta.-hydroxyethyl) amine
    Tris (2-hydroxyethyl) amine
    Trolamine
(52) (C.A.S. #637-39-8) Triethanolamine hydrochloride
(53) (C.A.S. #122-52-1) Triethyl phosphite
    Phosphorous acid triethyl ester
    Triethoxyphosphine
    Tris(ethoxy)phosphine
(54) (C.A.S. #121-45-9) Trimethyl phosphite
    Phosphorus acid trimethyl ester
    Trimethoxyphosphine
    (l) Interpretation 12: Computers. (1) Digital computers or computer 
systems classified under ECCN 4A003.a, .b, or .c, that qualify for ``No 
License Required'' (NLR) must be evaluated on the basis of CTP alone, to 
the exclusion of all other technical parameters. Computers controlled in 
this entry for MT reasons are not eligible for License Exception CTP 
regardles of the CTP of the computer. Digital computers or computer 
systems classified under ECCN 4A003.a, .b, or .c that qualify for 
License Exception CTP must be evaluated on the basis of CTP, to the 
exclusion of all other technical parameters, except for parameters of 
Missile Technology concern, or ECCN 4A003.e (equipment performing 
analog-to-digital conversions exceeding the limits in ECCN 3A001.a.5.a). 
This License Exception does not authorize the export or reexport of 
computers controlled for MT purposes regardless of the CTP. Assemblies 
performing analog-to-digital conversions are evaluated under Category 
3--Electronics, ECCN 3A001.a.5.a.
    (2) Related equipment classified under ECCN 4A003.d, .e, .f, or .g 
may be exported or reexported under License Exceptions GBS or CIV. When 
related equipment is exported or reexported as part of a computer 
system, NLR or License Exception CTP is available for the computer 
system and the related equipment, as appropriate.

[61 FR 12920, Mar. 25, 1996, as amended at 61 FR 67450, Dec. 23, 1996]



Sec. 770.3  Interpretations related to exports of technology and software to destinations in Country Group D:1.

    (a) Introduction. This section is intended to provide you additional 
guidance on how to determine whether your technology or software would 
be eligible for a License Exception, may be exported under NLR, or 
require a license, for export to Country Group D:1.
    (b) Scope of licenses. The export of technology and software under a 
license is authorized only to the extent specifically indicated on the 
face of the

[[Page 455]]

license. The only technology and software related to equipment exports 
that may be exported without a license is technology described in 
Secs. 734.7 through 734.11 of the EAR; operating technology and software 
described in Sec. 740.8(a) of the EAR; sales technology described in 
Sec. 740.8(b) of the EAR; and software updates described in 
Sec. 740.8(c) of the EAR.
    (c) Commingled technology and software. (1) U.S.-origin technology 
does not lose its U.S.-origin when it is redrawn, used, consulted, or 
otherwise commingled abroad in any respect with other technology of any 
other origin. Therefore, any subsequent or similar technical data 
prepared or engineered abroad for the design, construction, operation, 
or maintenance of any plant or equipment, or part thereof, which is 
based on or utilizes any U.S.-origin technology, is subject to the EAR 
is the same manner as the original U.S.-origin technology, including 
license requirements, unless the commingled technology is not subject to 
the EAR by reason of the de minimis exclusions described at Sec. 732.4 
of the EAR.
    (2) U.S.-origin software that is incorporated into or commingled 
with foreign-origin software does not lose its U.S.-origin. Such 
commingled software is subject to the EAR is the same manner as the 
original U.S.-origin software, including license requirements, unless 
the commingled software is not subject to the EAR by reason of the de 
minimis exclusions described at Sec. 732.4 of the EAR.
    (d) Certain License Exception. The following questions and answers 
are intended to further clarify the scope of technology and software 
eligible for a License Exception.
    (1)(i) Question 1. (A) Our engineers, in installing or repairing 
equipment, use techniques (experience as well as proprietary knowledge 
of the internal componentry or specifications of the equipment) that 
exceed what is provided in the standard manuals or instructions 
(including training) given to the customer. In some cases, it is also a 
condition of the license that such information provided to the customer 
be constrained to the minimum necessary for normal installation, 
maintenance and operation situations.
    (B) Can we send an engineer (with knowledge and experience) to the 
customer site to perform the installation or repair, under the 
provisions of License Exception for operation technology and software 
described in Sec. 740.12(a) of the EAR, if it is understood that he is 
restricted by our normal business practices to performing the work 
without imparting the knowledge or technology to the customer personnel?
    (ii) Answer 1. Export of technology includes release of U.S.-origin 
data in a foreign country, and ``release'' includes ``application to 
situations abroad of personal knowledge or technical experience acquired 
in the United States.'' As the release of technology in the 
circumstances described here would exceed that permitted under the 
License Exception for operation technology and software described in 
Sec. 740.12(a) of the EAR, a license would be required even though the 
technician could apply the data without disclosing it to the customer.
    (2)(i) Question 2. We plan, according to our normal business 
practices, to train customer engineers to maintain equipment that we 
have exported under a license, License Exception, or NLR. The training 
is contractual in nature, provided for a fee, and is scheduled to take 
place in part in the customer's facility and in part in the U.S. Can we 
now proceed with this training at both locations under a License 
Exception?
    (ii) Answer 2. (A) Provided that this is your normal training, and 
involves technology contained in your manuals and standard instructions 
for the exported equipment, and meets the other requirements of License 
Exception for operation technology and software described in 
Sec. 740.12(a), the training may be provided within the limits of those 
provisions of License Exception TSU. The location of the training is not 
significant, as the export occurs at the time and place of the actual 
transfer or imparting of the technology to the customer's engineers.
    (B) Any training beyond that covered under the provisions of License 
Exception TSU for operation technology and software described in 
Sec. 740.12(a), but specifically represented in your license

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application as required for this customer installation, and in fact 
authorized on the face of the license or a separate technology license, 
may not be undertaken while the license is suspended or revoked.

[61 FR 12920, Mar. 25, 1996, as amended at 61 FR 64286, Dec. 4, 1996]



Sec. 770.4  Interpretations related to chemical mixtures--de minimis exceptions examples.

    (a)(1) Introduction: The following are examples for applying the de 
minimis exceptions for chemical mixtures containing precursor and 
intermediate chemicals controlled under ECCN 1C350.
    (2) In ECCN 1C350, Note 2, paragraphs (c) and (d) within the 
Mixtures Exemptions state that a validated license is required when at 
least one of the listed chemicals constitutes more than 10% or 25%, 
respectively, of the weight of the mixture on a solvent free basis.
    (b)(1) Example One. A mixture contains the following components:
    (i) 90% polymer polyol (a liquid raw material used to make 
polyurethane polymers); and
    (ii) 10% Australia Group (AG)-controlled chemical eligible for 25% 
de minimis exemption.

    Note to paragraph (b) of this section: The polymer does not dissolve 
the AG-controlled chemical.

    (2) In this example, the polymer polyol does not dissolve the AG-
controlled chemical (the only other component of the mixture). 
Therefore, the polyol is NOT considered a solvent, and the concentration 
of the polymer polyol is included in the concentration calculation. As a 
result, the AG-controlled chemical's concentration is 10% when 
calculated on a solvent-free basis (.10/1.00). Accordingly, this 
concentration is below the threshold concentration of 25% applicable to 
specific AG-controlled chemicals under the chemical mixtures rule and 
can be exported under NLR to all destinations except Iran, Sudan, Syria, 
and Country Group E:2 in Supplement No. 1 to part 740 of the EAR.
    (3) To determine the classification of this mixture, it is necessary 
to determine whether the polymer is capable of functioning as a solvent 
for the other components of the mixture. If the polymer polyol is 
capable of functioning as a solvent for the controlled AG chemical, then 
the polymer component is omitted from the concentration calculation. If 
the polymer polyol is not capable of functioning as a solvent for the AG 
chemical, then the polymer component is included in the concentration 
calculation.
    (c)(1) Example Two: An automotive coolant (antifreeze) is a mixture 
of the following components:
    (i) 75% ethylene glycol;
    (ii) 10% additive package; and
    (iii) 15% water.

    Note to paragraph (c) of this section: The ``additive package'' 
contains an AG-controlled chemical that is eligible for the 10% de 
minimis exemption. This chemical is added as a stabilizer and represents 
9% of the total mixture. The remaining components of the additive 
package are various dyes and stabilizers that represent 1% of the total 
mixture. Ethylene glycol serves as the basic functional ingredient that 
prevents the engine block from freezing, and does not dissolve the other 
components of the mixture. The water is added to keep the mixture in 
solution.

    (2) To determine if this mixture requires a license it is necessary 
to calculate the concentration of the AG-controlled chemical on a 
solvent-free basis. Since the water dissolves all of the other 
components of the mixture, water is considered a ``solvent'' and the 
quantity of water present is not included in the calculation of the AG-
chemical concentration. Consequently, the concentration of the AG 
chemical is approximately 11% (.09/.85), and the mixture is classified 
under ECCN 1C350. Accordingly, since this concentration is above the 
threshold concentration of 10% applicable to this category of AG-
controlled chemical under the chemical mixtures rule, a license is 
required to all destinations except AG member countries.
    (d)(1) Example Three. A pesticide formulation consists of an AG-
controlled chemical that is eligible for the 25% de minimis exemption, 
and an active ingredient that is not AG-controlled. The formulation is 
diluted with water to allow safe, effective, and economic application. 
The resulting mixture is 15% AG chemical, 40% active ingredient

[[Page 457]]

and 45% water. Although the water is added as a diluent, it dissolves 
the other components of the mixture.
    (2) Since the water dissolves all components in the mixture, it is 
considered a solvent even though it was added as a diluent. The percent 
concentration of the AG-controlled chemical calculated on a solvent free 
basis is .15/.55 = 27%, and the mixture is therefore classified under 
ECCN 1C350. Accordingly, since this concentration is above the threshold 
concentration of 25% applicable to this category of AG-controlled 
chemicals under the chemical mixtures rule, a license is required to all 
destinations except AG member countries.
    (e)(1) Example Four. A mixture contains the following components:
    (i) 10% water;
    (ii) 22% Chemical A;
    (iii) 21% Chemical B;
    (iv) 20% Chemical C;
    (v) 19% Chemical D; and
    (vi) 8% Chemical E.

    Note to paragraph (e) of this section: The water is added to 
dissolve the other components of the mixture. Chemicals A, B, C, and D 
are AG-controlled chemicals each eligible for 25% de minimis exemption. 
Chemical E is an AG-controlled chemical eligible for 10% de minimis 
exemption.

    (2) In this example, water is considered a solvent since it 
dissolves all components in the mixture. Therefore, the quantity of 
water present in the mixture is not included in calculating the 
concentrations of the controlled chemicals on a solvent-free basis. The 
concentrations of the controlled chemicals are as follows: Chemical A 
24%; Chemical B 23%; Chemical C 22%; Chemical D 21%; Chemical E 9%. It 
is important to note that in this example, even though the cumulative 
amount of the mixture (90%) consists of controlled chemicals, each one 
of the controlled chemicals is below the de minimis level for its 
category. Consequently, this mixture can be exported under NLR to all 
destinations except Iran, Sudan, Syria, and Country Group E:2 in 
Supplement No. 1 to part 740 of the EAR.



PART 772--DEFINITIONS OF TERMS--Table of Contents




    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Executive Order 13026 
(November 15, 1996, 61 FR 58767) Notice of August 15, 1995 (60 FR 42767, 
August 17, 1995); and Notice of August 14, 1996 (61 FR 42527).

    Source: 61 FR 12925, Mar. 25, 1996, unless otherwise noted.
    The following are definitions of terms as used in the Export 
Administration Regulations (EAR). In this part, references to the EAR 
are references to 15 CFR chapter VII, subchapter C. Those terms in 
quotation marks refer to terms used on the Commerce Control List (CCL) 
(Supplement No. 1 to part 774 of the EAR). Parenthetical references 
following the terms in quotation marks (i.e., (Cat 5)) refer to the CCL 
category in which that term is found.
    ``ATM.'' (Cat 5)--See ``Asynchronous Transfer Mode.''
    ``Accuracy.'' (Cat 2 and 6)--``Accuracy'' is usually measured in 
terms of inaccuracy. It is defined as the maximum deviation, positive or 
negative, of an indicated value from an accepted standard or true value.
    ``Active flight control systems.'' (Cat 7)--Function to prevent 
undesirable ``aircraft'' and ``missile'' motions or structural loads by 
autonomously processing outputs from multiple sensors and then providing 
necessary preventive commands to effect automatic control.
    ``Active pixel.'' (Cat 6 and 8)--A maximum (single) element of the 
solid state array that has a photoelectric transfer function when 
exposed to light (electromagnetic) radiation.
    ``Adaptive control.'' (Cat 2)--A control system that adjusts the 
response from conditions detected during the operation (Ref. ISO 2806-
1980).
    Advisory Committee on Export Policy (ACEP). The ACEP voting members 
include the Assistant Secretary of Commerce for Export Administration, 
and Assistant Secretary-level representatives from the Departments of 
State, Defense, Justice (for encryption exports), Energy, and the Arms 
Control and Disarmament Agency. The appropriate representatives of the 
Joint Chiefs of Staff and the Director of the Nonproliferation Center of 
the Central Intelligence Agency are non-voting members. The Assistant 
Secretary of Commerce for Export Administration

[[Page 458]]

is the Chair. Appropriate acting Assistant Secretary, Deputy Assistant 
Secretary or equivalent strength of any agency or department may serve 
in lieu of the Assistant Secretary of the concerned agency or 
department. Such representatives, regardless of rank, will speak and 
vote on behalf of their agencies or departments. The ACEP may invite 
Assistant Secretary-level representatives of other Government agencies 
or departments (other than those identified above) to participate in the 
activities of the ACEP when matters of interest to such agencies or 
departments are under consideration. Decisions are made by majority 
vote.
    ``Aircraft.'' (Cat 7 and 9)--A fixed wing, swivelwing, rotary wing 
(helicopter), tilt rotor or tilt-wing airborne vehicle. (See also 
``civil aircraft''.)
    Airline. Any person engaged primarily in the transport of persons or 
property by aircraft for compensation or hire, pursuant to authorization 
by the U.S. Government or a foreign government.
    ``Angular position deviation.'' (Cat 2)--The maximum difference 
between angular position and the actual, very accurately measured 
angular position after the workpiece mount of the table has been turned 
out of its initial position. (Reference: VDI/VDE 2617, Draft: ``Rotary 
tables on coordinate measuring machines'').
    Applicant. That person who, as the principal party in interest in 
the transaction, has the power and responsibility for determining and 
controlling the sending of the item out of the country and is thus, in 
reality, the exporter. (For additional information see Sec. 748.4 of the 
EAR.) (See also ``U.S. exporter''.)
    ``Assembly.'' (Cat 3 and 4)--A number of electronic components 
(i.e.,''circuit elements'', ``discrete components'', integrated 
circuits, etc.) connected together to perform (a) specific function(s), 
replaceable as an entity and normally capable of being disassembled.

    Notes: 1. ``Circuit element'': a single active or passive functional 
part of an electronic circuit, such as one diode,one transistor, one 
resistor, one capacitor, etc.
    2. ``Discrete component'': a separately packaged ``circuit element'' 
with its own external connections.

    ``Asynchronous transfer mode.'' (ATM) (Cat 5)--A transfer mode in 
which the information is organized into cells; it is asynchronous in the 
sense that the recurrence of cells depends on the required or 
instantaneous bit rate. (CCITT Recommendation L.113)
    Australia Group. The members belonging to this group have agreed to 
adopt controls on dual-use chemicals, i.e., weapons precursors, 
equipment, and biological microorganisms and related equipment in order 
to prevent the proliferation of chemical and biological weapons. Member 
countries as of November 1, 1995 include: Argentina, Australia, Austria, 
Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, 
Greece, Hungary, Iceland, Ireland, Italy, Japan, Luxembourg, the 
Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovak 
Republic, Spain, Sweden, Switzerland, the United Kingdom, and the United 
States. See also Sec. 742.2 of the EAR.
    ``Automatic target tracking.'' (Cat 6)--A processing technique that 
automatically determines and provides as output an extrapolated value of 
the most probable position of the target in real time.
    ``Bandwidth of one voice channel.'' (Cat 5)--In the case of data 
communication equipment designed to operate in one voice channel of 
3,100 Hz, as defined in CCITT Recommendation G.151.
    ``Basic gate propagation delay time.'' (Cat 3)--The propagation 
delay time value corresponding to the basic gate utilized within a 
``family'' of ``monolithic integrated circuits''. This may be specified, 
for a given ``family'', either as the propagation delay time per typical 
gate or as the typical propagation delay time per gate.

    Note: ``Basic gate propagation delay time'' is not to be confused 
with input/output delay time of a complex ``monolithic integrated 
circuit''.

    ``Basic Scientific Research.'' (GTN)--Experimental or theoretical 
work undertaken principally to acquire new knowledge of the fundamental 
principles of phenomena or observable facts, not primarily directed 
towards a specific practical aim or objective.

[[Page 459]]

    ``Beat length.'' (Cat 6)--The distance over which two orthogonally 
polarized signals, initially in phase, must pass in order to achieve a 2 
Pi radian(s) phase difference.
    ``Bias.'' (accelerometer) (Cat 7)--An accelerometer output when no 
acceleration is applied.
    Bill of Lading. The contract of carriage and receipt for items, 
issued by the carrier. It includes an air waybill, but does not include 
an inland bill of lading or a domestic air waybill covering movement to 
port only.
    CCL. See Commerce Control List.
    CCL Group. The Commerce Control List (CCL) is divided into 10 
categories. Each category is subdivided into five groups, designated by 
letters A through E: (A) Equipment, assemblies, and components; (B) 
Test, production, and inspection equipment; (C) Materials; (D) Software; 
and (E) Technology. See Sec. 738.2(b) of the EAR.
    ``CE.''--See ``Computing Element.''
    ``CTP.''--See ``Composite theoretical performance.'' This term may 
also appear without quotation marks.
    ``Camming.'' (axial displacement) (Cat 2)--Axial displacement in one 
revolution of the main spindle measured in a plane perpendicular to the 
spindle faceplate, at a point next to the circumference of the spindle 
faceplate (Ref.: ISO 230 Part 1-1986, paragraph 5.63).
    Canadian airline. Any citizen of Canada who is authorized by the 
Canadian Government to engage in business as an airline. For purposes of 
this definition, a Canadian citizen is:
    (a) A natural person who is a citizen of Canada; or
    (b) A partnership of which each member is such an individual; or
    (c) A Canadian firm incorporated or otherwise organized under the 
laws of Canada or any Canadian province, having a total foreign stock 
interest not greater than 40 percent and having the Chairman or Acting 
Chairman and at least two-thirds of the Directors thereof Canadian 
citizens.
    ``Capable of.'' (MTCR context)--See ``usable in''.
    Category. The Commerce Control List is divided into 10 categories: 
(0) Nuclear Materials, Facilities, and Equipment, and Miscellaneous; (1) 
Materials, Chemicals, ``Microorganisms,'' and Toxins; (2) Materials 
Processing; (3) Electronics; (4) Computers; (5) Telecommunications and 
Information Security; (6) Lasers and Sensors; (7) Navigation and 
Avionics; (8) Marine; and (9) Propulsion Systems, Space Vehicles, and 
Transportation Equipment. See Sec. 738.2(a) of the EAR.
    ``Chemical laser.'' (Cat 6)--A ``laser'' in which the excited 
species is produced by the output energy from a chemical reaction.
    ``Circulation.'' (controlled, anti-torque direction control systems) 
(Cat 7)--Use air blown over aerodynamic surfaces to increase or control 
the forces generated by the surfaces.
    ``Civil aircraft.'' (Cat 7 and 9)--Only those ``aircraft'' listed by 
designation in published airworthiness certification lists by the civil 
aviation authorities to fly commercial civil internal and external 
routes or for legitimate civil, private or business use. (See also 
``aircraft'')
    COCOM (Coordinating Committee on Multilateral Export Controls). A 
multilateral organization that cooperated in restricting strategic 
exports to controlled countries. COCOM was officially disbanded on March 
31, 1994. COCOM members included the NATO countries, except Iceland, 
plus Japan and Australia.
    Commerce Control List (CCL). A list of items under the export 
control jurisdiction of the Bureau of Export Administration, U.S. 
Department of Commerce. Note that certain additional items described in 
part 732 of the EAR are also subject to the EAR. The CCL is found in 
Supplement No. 1 to part 774 of the EAR.
    ``Commingled.'' (Cat 1)--Filament to filament blending of 
thermoplastic fibers and reinforcement fibers in order to produce a 
fiber reinforcement/matrix mix in total fiber form.
    ``Comminution.'' (Cat 1)--A process to reduce a material to 
particles by crushing or grinding.
    Commodity. Any article, material, or supply except technology and 
software. Note that the provisions of the EAR applicable to the control 
of software (e.g. publicly available provisions) are not applicable to 
encryption software.

[[Page 460]]

Encryption software is controlled because, like the items controlled 
under ECCN 5A002, it has a functional capacity to encrypt information on 
a computer system, and not because of any informational or theoretical 
value that such software may reflect, contain or represent, or that its 
export may convey to others abroad.
    ``Common channel signalling.'' (Cat 5)--A signalling method in which 
a single channel between exchanges conveys, by means of labelled 
messages, signalling information relating to a multiplicity of circuits 
or calls and other information such as that used for network management.
    ``Communications channel controller.'' (Cat 5)--The physical 
interface that controls the flow of synchronous or asynchronous digital 
information. It is an assembly that can be integrated into computer or 
telecommunications equipment to provide communications access.
    ``Composite.'' (Cat 1, 6, 8, and 9)--A ``matrix'' and an additional 
phase or additional phases consisting of particles, whiskers, fibers or 
any combination thereof, present for a specific purpose or purposes.
    ``Composite theoretical performance.'' (CTP) (Cat 4)--A measure of 
computational performance given in millions of theoretical operations 
per second (Mtops), calculated using the aggregation of ``computing 
elements (CE)''. (See Category 4, Technical Note.) This term may also 
appear without quotation marks. The formula to calculate the CTP is 
contained in a technical note titled ``Information on How to Calculate 
``Composite Theoretical Performance'' at the end of Category 4 of the 
CCL.
    ``Compound rotary table.'' (Cat 2)--A table allowing the workpiece 
to rotate and tilt about two non-parallel axis that can be coordinated 
simultaneously for ``contouring control''.
    ``Computer using facility.'' (Cat 4)--The end-user's contiguous and 
accessible facilities:
    (a) Housing the ``computer operating area'' and those end-user 
functions that are being supported by the stated application of the 
electronic computer and its related equipment; and
    (b) Not extending beyond 1,500 meters in any direction from the 
center of the ``computer operating area''.

    Note: ``Computer operating area'': the immediate contiguous and 
accessible area around the electronic computer, where the normal 
operating, support and service functions take place.

    ``Computing element.'' (CE) (Cat 4)--The smallest computational unit 
that produces an arithmetic logic result.
    ``Contouring control.'' (Cat 2)--Two or more numerically controlled 
motions operating in accordance with instructions that specify the next 
required position and the required feed rates to that position. These 
feed rates are varied in relation to each other so that a desired 
contour is generated (Ref. ISO/DIS 2806--1980).
    Controlled country. A list of countries designated controlled for 
national security purposes found in Country Group D:1 (see Supplement 
No. 1 to part 740 of the EAR). This list was established under authority 
delegated to the Secretary of Commerce by Executive Order 12214 of May 
2, 1980 pursuant to section 5(b) of the EAA, and including: Albania, 
Armenia, Azerbaijan, Belarus, Bulgaria, Cambodia, the People's Republic 
of China, Estonia, Georgia, Kazakstan, Kyrgyzstan, Laos, Latvia, 
Lithuania, Moldova, Mongolia, Romania, Russia, Tajikstan, Turkmenistan, 
Ukraine, Uzbekistan, and Vietnam. Cuba and North Korea are controlled 
countries, but they are listed in Country Group E:2 (unilateral 
embargoes) rather than Country Group D:1. This definition does not apply 
to part 768 of the EAR (Foreign Availability), which provides a 
dedicated definition.
    Controlled in fact. For purposes of the Special Comprehensive 
License (part 752 of the EAR), controlled in fact is defined as it is 
under the Restrictive Trade Practices or Boycotts (Sec. 760.1(c) of the 
EAR).
    Cooperating country. A country that cooperated with the former COCOM 
member countries in restricting strategic exports in accordance with 
COCOM standards. The ``Cooperating Countries'' are: Austria, Finland, 
Hong Kong, Ireland, Korea (Republic of), New Zealand, Sweden, and 
Switzerland.

[[Page 461]]

    Countries supporting international terrorism. In accordance with 
section 6(j) of the Export Administration Act of 1979, as amended (EAA), 
the Secretary of State has determined that the following countries' 
governments have repeatedly provided support for acts of international 
terrorism: Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria.
    Country Chart. A chart, found in Supplement No. 1 to part 738 of the 
EAR, that contains certain licensing requirements based on destination 
and reason for control. In combination with the CCL, the Country Chart 
indicates when a license is required for any item on the CCL to any 
country in the world under General Prohibition One (Exports and 
Reexports in the Form Received), General Prohibition Two (Parts and 
Components Reexports), and General Prohibition Three (Foreign Produced 
Direct Product Reexports). See part 736 of the EAR.
    Country Groups. For export control purposes, foreign countries are 
separated into five country groups designated by the symbols A, B, C, D, 
and E. (See Supplement No. 1 to part 740 of the EAR for a list of 
countries in each Country Group.)
    ``Critical temperature.'' (Cat 1, 3, and 6)--The ``critical 
temperature'' (sometimes referred to as the transition temperature) of a 
specific ``superconductive'' material is the temperature at which the 
material loses all resistance to the flow of direct electrical current.
    ``Cryptanalysis.'' (Cat 5)--The analysis of a cryptographic system 
or its inputs and outputs to derive confidential variables or sensitive 
data including clear text. (ISO 7498-2-1988(E), paragraph 3.3.18)
    ``Cryptography.'' (Cat 5)--The discipline that embodies principles, 
means and methods for the transformation of data in order to hide its 
information content, prevent its undetected modification or prevent its 
unauthorized use. ``Cryptography'' is limited to the transformation of 
information using one or more ``secret parameters'' (e.g., crypto 
variables) and/or associated key management.

    Note: ``Secret parameter'': a constant or key kept from the 
knowledge of others or shared only within a group.

    Customs officer. The Customs officers in the U.S. Customs Service 
and postmasters unless the context indicates otherwise.
    ``Data signalling rate.'' (Cat 5)--The rate, as defined in ITU 
Recommendation 53-36, taking into account that, for non-binary 
modulation, baud and bit per second are not equal. Bits for coding, 
checking and synchronization functions are to be included.

    Notes: 1. When determining the ``data signalling rate'', servicing 
and administrative channels shall be excluded.
    2. It is the maximum one-way rate, i.e., the maximum rate in either 
transmission or reception.
    (a) Mirrors:
    (1) Mirrors having a single continuous optical reflecting surface 
that is dynamically deformed by the application of individual torques or 
forces to compensate for distortions in the optical waveform incident 
upon the mirror; or
    (2) Mirrors having multiple optical reflecting elements that can be 
individually and dynamically repositioned by the application of torques 
or forces to compensate for distortions in the optical waveform incident 
upon the mirror.
    (b) Deformable mirrors are also known as adaptive optic mirrors.

    ``Datagram.'' (Cat 4 and 5)--A self-contained, independent entity of 
data carrying sufficient information to be routed from the source to the 
destination data terminal equipment without reliance on earlier 
exchanges between this source and destination data terminal equipment 
and the transporting network.
    Defense Trade Control (DTC). The office at the Department of State, 
formerly known as the Office of Munitions Control, responsible for 
reviewing applications to export and reexport items on the U.S. 
Munitions List. (See 22 CFR parts 120 through 130.)
    Denied Persons List. A list, referenced in Supplement No. 2 to part 
764 of the EAR, of specific persons that have been denied export 
privileges, in whole or in part. The full text of each order denying 
export privileges is published in the Federal Register.
    ``Designed or modified.'' (MTCR context)--Equipment, parts, 
components, or ``software'' that, as a result of ``development'', or 
modification, have specified properties that make them fit for a 
particular application. ``Designed

[[Page 462]]

or modified'' equipment, parts, components or ``software'' can be used 
for other applications. For example, a titanium coated pump designed for 
a ``missile'' may be used with corrosive fluids other than propellants.
    ``Development.'' (General Technology Note)--``Development'' is 
related to all stages prior to serial production, such as: design, 
design research, design analyses, design concepts, assembly and testing 
of prototypes, pilot production schemes, design data, process of 
transforming design data into a product, configuration design, 
integration design, layouts.
    ``Diffusion bonding.'' (Cat 1, 2, and 9)--A solid-state molecular 
joining of at least two separate metals into a single piece with a joint 
strength equivalent to that of the weakest material.
    ``Digital computer.'' (Cat 4 and 5)--Equipment that can, in the form 
of one or more discrete variables:
    (a) Accept data;
    (b) Store data or instructions in fixed or alterable (writable) 
storage devices;
    (c) Process data by means of a stored sequence of instructions that 
is modifiable; and
    (d) Provide output of data.

    Note: Modifications of a stored sequence of instructions include 
replacement of fixed storage devices, but not a physical change in 
wiring or interconnections.

    ``Digital transfer rate.'' (Cat 5)--The total bit rate of the 
information that is directly transferred on any type of medium.
    ``Direct-acting hydraulic pressing.'' (Cat 2)--A deformation process 
that uses a fluid-filled flexible bladder in direct contact with the 
workpiece.
    ``Drift rate.'' (gyro) (Cat 7)--The time rate of output deviation 
from the desired output. It consists of random and systematic components 
and is expressed as an equivalent input angular displacement per unit 
time with respect to inertial space.
    Dual use. Items that have both commercial and military or 
proliferation applications. While this term is used informally to 
describe items that are subject to the EAR, purely commercial items are 
also subject to the EAR (see Sec. 734.2(a) of the EAR).
    ``Dynamic adaptive routing.'' (Cat 5)--Automatic rerouting of 
traffic based on sensing and analysis of current actual network 
conditions.

    Note: This does not include cases of routing decisions taken on 
predefined information.

    ``Dynamic signal analyzers.'' (Cat 3)--``Signal analyzers'' that use 
digital sampling and transformation techniques to form a Fourier 
spectrum display of the given waveform including amplitude and phase 
information.
    Effective control. For purposes of the Special Comprehensive License 
(SCL), effective control means the exercise of a right, under a 
contractual agreement between the SCL Holder and the consignee, to 
determine and control the export of items authorized under an SCL.
    ``Electronically steerable phased array antenna.'' (Cat 6)--An 
antenna that forms a beam by means of phase coupling, i.e., the beam 
direction is controlled by the complex excitation coefficients of the 
radiating elements and the direction of that beam can be varied in 
azimuth or in elevation, or both, by application, both in transmission 
and reception, of an electrical signal.
    Encryption items. The phrase encryption items includes all 
encryption commodities, software, and technology that contain encryption 
features and are subject to the EAR. This does not include encryption 
items specifically designed, developed, configured, adapted or modified 
for military applications (including command, control and intelligence 
applications) which are controlled by the Department of State on the 
U.S. Munitions List.
    Encryption object code. Computer programs containing an encryption 
source code that has been compiled into a form of code that can be 
directly executed by a computer to perform an encryption function.
    Encryption software. Computer programs that provide capability of 
encryption functions or confidentiality of information or information 
systems. Such software includes source code, object code, applications 
software, or system software.
    Encryption source code. A precise set of operating instructions to a 
computer that, when compiled, allows for the

[[Page 463]]

execution of an encryption function on a computer.
    ``End-effectors.'' (Cat 2)--``End-effectors'' include grippers, 
``active tooling units'' and any other tooling that is attached to the 
baseplate on the end of a ``robot'' manipulator arm.

    Note: ``Active tooling unit'': a device for applying motive power, 
process energy or sensing to the workpiece.

    ``Equivalent Density.'' (Cat 6)--The mass of an optic per unit 
optical area projected onto the optical surface.
    ``Expert systems.'' (Cat 4)--Systems providing results by 
application of rules to data that are stored independently of the 
``program'' and capable of any of the following:
    (a) Modifying automatically the ``source code'' introduced by the 
user;
    (b) Providing knowledge linked to a class of problems in quasi-
natural language; or
    (c) Acquiring the knowledge required for their development (symbolic 
training).
    Export. Export means an actual shipment or transmission of items out 
of the United States. (See Sec. 734.2(b) of the EAR.)
    Export Administration Act (EAA). Export Administration Act of 1979, 
as amended, effective October 1, 1979.
    Export Administration Regulations (EAR). Regulations set forth in 
parts 730-774, inclusive, of Title 15 of the Code of Federal 
Regulations.
    Export Administration Review Board (EARB). EARB voting members are 
the Secretary of Commerce, the Secretary of State, the Secretary of 
Defense, the Secretary of Energy, the Attorney General (for encryption 
exports), and the Director of the Arms Control and Disarmament Agency. 
The Chairman of the Joint Chiefs of Staff and the Director of Central 
Intelligence are non-voting members. The Secretary of Commerce is the 
Chair of the EARB. No alternate EARB members may be designated, but the 
acting head or deputy head of any agency or department may serve in lieu 
of the head of the concerned agency or department. The EARB may invite 
the heads of other Government agencies or departments (other than those 
identified in this definition) to participate in the activities of the 
EARB when matters of interest to such agencies or departments are under 
consideration. Decisions are made by majority vote.
    Export Control Classification Number (ECCN). The numbers used in 
Supplement No. 1 to part 774 of the EAR and throughout the EAR. The 
Export Control Classification Number consists of a set of digits and a 
letter. Reference Sec. 738.2(c) of the EAR for a complete description of 
each ECCN's composition.
    Export control document. A license; application for license; any and 
all documents submitted in accordance with the requirements of the EAR 
in support of, or in relation to, a license application; application for 
International Import Certificate; International Import Certificate; 
Delivery Verification Certificate or similar evidence of delivery; 
Shipper's Export Declaration (SED) presented in connection with 
shipments to any country; a Dock Receipt or bill of lading issued by any 
carrier in connection with any export subject to the EAR and any and all 
documents prepared and submitted by exporters and agents pursuant to the 
export clearance requirements of part 758 of the EAR; a U.S. exporter's 
report of request received for information, certification, or other 
action indicating a restrictive trade practice or boycott imposed by a 
foreign country against a country friendly to the United States, 
submitted to the U.S. Department of Commerce in accordance with the 
provisions of part 760 of the EAR; Customs Form 7512, Transportation 
Entry and Manifest of Goods, Subject to Customs Inspection and Permit, 
when used for Transportation and Exportation (T.& E.) or Immediate 
Exportation (I.E.); and any other document issued by a U.S. Government 
agency as evidence of the existence of a license for the purpose of 
loading onto an exporting carrier or otherwise facilitating or effecting 
an export from the United States or any reexport of any item requiring a 
license.
    Export of satellites. The term export, as applied to satellites 
controlled by the Department of Commerce, includes the physical movement 
of a satellite from the United States to another country for any 
purpose, or the transfer of registration of a satellite or operational 
control over a satellite from a

[[Page 464]]

person resident in the United States to a person resident in another 
country. Under the Commercial Space Launch Act, a launch of a launch 
vehicle and payload is not an export for purposes of controlling export.
    Exporter. See U.S. exporter.
    Exporting carrier. Any instrumentality of water, land, or air 
transportation by which an export is effected, including any domestic 
air carrier on which any cargo for export is laden or carried.
    ``FMU.''--See ``flexible manufacturing unit''
    ``Family.'' (Cat 3)--Consists of microprocessor or microcomputer 
microcircuits that have:
    (a) The same architecture;
    (b) The same basic instruction set; and
    (c) The same basic technology (e.g., only NMOS or only CMOS).
    ``Fast select.'' (Cat 4 and 5)--A facility applicable to virtual 
calls that allows data terminal equipment to expand the possibility to 
transmit data in call set-up and clearing ``packets'' beyond the basic 
capabilities of a virtual call.

    Note: ``Packet'': a group of binary digits including data and call 
control signals that is switched as a composite whole. The data, call 
control signals, and possible error control information are arranged in 
a specified format.

    ``Fault tolerance.'' (Cat 4)--The capability of a computer system, 
after any malfunction of any of its hardware or ``software'' components, 
to continue to operate without human intervention, at a given level of 
service that provides: continuity of operation, data integrity, and 
recovery of service within a given time.
    ``Fibrous or filamentary materials.'' (Cat 1 and 8)--The term 
``fibrous and filamentary materials'' includes:
    (a) Continuous monofilaments;
    (b) Continuous yarns and rovings;
    (c) Tapes, fabrics, random mats and braids;
    (d) Chopped fibers, staple fibers and coherent fiber blankets;
    (e) Whiskers, either monocrystalline or polycrystalline, of any 
length;
    (f) Aromatic polyimide pulp.
    ``Film type integrated circuit.'' (Cat 3)--An array of ``circuit 
elements'' and metallic interconnections formed by deposition of a thick 
or thin film on an insulating ``substrate''.

    Note: ``Circuit element'': a single active or passive functional 
part of an electronic circuit, such as one diode, one transistor, one 
resistor, one capacitor, etc.

    Firm. A corporation, partnership, limited partnership, association, 
company, trust, or any other kind of organization or body corporate, 
situated, residing, or doing business in the United States or any 
foreign country, including any government or agency thereof.
    ``Fixed.'' (Cat 5)--The coding or compression algorithm cannot 
accept externally supplied parameters (e.g., cryptographic or key 
variables) and cannot be modified by the user.
    ``Flexible manufacturing unit.'' (FMU), (sometimes also referred to 
as `flexible manufacturing system' (FMS) or `flexible manufacturing 
cell' (FMC)) (Cat 2)--An entity that includes a combination of at least:
    (a) A ``digital computer'' including its own ``main storage'' and 
its own ``related equipment''; and
    (b) Two or more of the following:
    (1) A machine tool described in 2B001.c;
    (2) A dimensional inspection machine described in Category 2, or 
another digitally controlled measuring machine controlled by an entry in 
Category 2;
    (3) A ``robot'' controlled by an entry in Category 2 or 8;
    (4) Digitally controlled equipment controlled by 1B003, 2B003, or 
9B001;
    (5) ``Stored program controlled'' equipment controlled by 3B001;
    (6) Digitally controlled equipment controlled by 1B001;
    (7) Digitally controlled electronic equipment controlled by 3A002.
    ``Fluoride fibers.'' (Cat 6)--Fibers manufactured from bulk fluoride 
compounds.
    ``Focal plane array.'' (Cat 6)--A linear or two-dimensional planar 
layer, or combination of planar layers, of individual detector elements, 
with or without readout electronics, that work in the focal plane.

    N.B. This definition does not include a stack of single detector 
elements or any two, three, or four element detectors provided

[[Page 465]]

time delay and integration is not performed within the element.

    Foreign government agency. For the purposes of exemption from 
support documentation (see Sec. 748.9 of the EAR), a foreign government 
agency is defined as follows:
    (a) National governmental departments operated by government-paid 
personnel performing governmental administrative functions; e.g. Finance 
Ministry, Ministry of Defense, Ministry of Health, etc. (municipal or 
other local government entities must submit required support 
documentation); or
    (b) National government-owned public service entities; e.g., 
nationally owned railway, postal, telephone, telegraph, broadcasting, 
and power systems, etc. The term ``foreign government agency'' does not 
include government corporations, quasi-government agencies, and state 
enterprises engaged in commercial, industrial, and manufacturing 
activities, such as petroleum refineries, mines, steel mills, retail 
stores, automobile manufacturing plants, airlines, or steamship lines 
that operate between two or more countries, etc.
    Foreign policy control. A control imposed under the EAR for any and 
all of the following reasons: chemical and biological weapons, nuclear 
nonproliferation, missile technology, regional stability, crime control, 
anti-terrorism, United Nations sanctions, and any other reason for 
control implemented under section 6 of the EAA or other similar 
authority.
    Forwarding agent. The person authorized by an exporter to perform 
for that exporter services to facilitate the export of items. The 
forwarding agent need not be a person regularly engaged in the freight 
forwarding business. The forwarding agent must be designated by the 
exporter in writing in the power-of-attorney set forth on the Shippers' 
Export Declaration or in a general power-of-attorney, or other written 
form, subscribed and sworn to by a duly authorized officer or employee 
of the exporter.
    ``Frequency agility.'' (frequency hopping) (Cat 5)--A form of 
``spread spectrum'' in which the transmission frequency of a single 
communication channel is made to change by discrete steps.
    ``Frequency agility.'' (radar) (Cat 6)--(see ``Radar frequency 
agility'')
    ``Frequency switching time.'' (Cat 3 and 5)--The maximum time (i.e., 
delay), taken by a signal, when switched from one selected output 
frequency to another selected output frequency, to reach:
    (a) A frequency within 100 Hz of the final frequency; or
    (b) An output level within 1 dB of the final output level.
    ``Frequency synthesizer.'' (Cat 3)--Any kind of frequency source or 
signal generator, regardless of the actual technique used, providing a 
multiplicity of simultaneous or alternative output frequencies, from one 
or more outputs, controlled by, derived from or disciplined by a lesser 
number of standard (or master) frequencies.
    ``Gas Atomization.'' (Cat 1)--A process to reduce a molten stream of 
metal alloy to droplets of 500-micrometer diameter or less by a high-
pressure gas stream.
    ``Gateway.'' (Cat 5)--The function, realized by any combination of 
equipment and ``software'', to carry out the conversion of conventions 
for representing, processing or communicating information used on one 
system into the corresponding, but different conventions used in another 
system.
    General prohibitions. The 10 prohibitions found in part 734 of the 
EAR that prohibit certain exports, reexports, and other conduct, subject 
to the EAR, absent a license, License Exception, or determination that 
no license is required (``NLR'').
    ``Generic software.'' (Cat 5)--A set of instructions for a ``stored 
program controlled'' switching system that is the same for all switches 
using that type of switching system.

    Note: The data base portion is not considered to be a part of the 
generic ``software''.

    ``Geographically dispersed.'' (Cat 6)--Sensors are considered 
geographically dispersed when each location is distant from any other 
more than 1,500 m in any direction. Mobile sensors are always considered 
geographically dispersed.
    ``Global interrupt latency time.'' (Cat 4)--The time taken by the 
computer

[[Page 466]]

system to recognize an interrupt due to the event, service the interrupt 
and perform a context switch to an alternate memory-resident task 
waiting on the interrupt.
    Hold Without Action (HWA). License applications may be held without 
action only in the limited circumstances described in Sec. 750.4(c) of 
the EAR.
    ``Hot isostatic densification.'' (Cat 2)--A process of pressurizing 
a casting at temperatures exceeding 375 K (102  deg.C) in a closed 
cavity through various media (gas, liquid, solid particles, etc.) to 
create equal force in all directions to reduce or eliminate internal 
voids in the casting.
    ``Hybrid computer.'' (Cat 4)--Equipment that can:
    (a) Accept data;
    (b) Process data, in both analog and digital representation; and
    (c) Provide output of data.
    ``Hybrid integrated circuit.'' (Cat 3)--Any combination of 
integrated circuit(s), or integrated circuit with ``circuit elements'' 
or ``discrete components'' connected together to perform (a) specific 
function(s), and having all of the following criteria:
    (a) Containing at least one unencapsulated device;
    (b) Connected together using typical IC-production methods;
    (c) Replaceable as an entity; and
    (d) Not normally capable of being disassembled.

    Notes: 1. ``Circuit element'': a single active or passive functional 
part of an electronic circuit, such as one diode, one transistor, one 
resistor, one capacitor, etc.
    2. ``Discrete component'': a separately packaged ``circuit element'' 
with its own external connections.

    ``ISDN.''--See ``Integrated Services Digital Network''.
    ``Image enhancement.'' (Cat 4)--The processing of externally derived 
information-bearing images by algorithms such as time compression, 
filtering, extraction, selection, correlation, convolution or 
transformations between domains (e.g., fast Fourier transform or Walsh 
transform). This does not include algorithms using only linear or 
rotational transformation of a single image, such as translation, 
feature extraction, registration or false coloration.
    ``Information security.'' (Cat 5)--All the means and functions 
ensuring the accessibility, confidentiality or integrity of information 
or communications, excluding the means and functions intended to 
safeguard against malfunctions. This includes ``cryptography'', 
``cryptanalysis'', protection against compromising emanations and 
computer security.

    N.B. ``Cryptanalysis'': the analysis of a cryptographic system or 
its inputs and outputs to derive confidential variables or sensitive 
data, including clear text. (ISO 7498-2-1988 (E), paragraph 3.3.18)

    ``Instantaneous bandwidth.'' (Cat 3)--The bandwidth over which 
output power remains constant within 3 dB without adjustment of other 
operating parameters.
    ``Instrumented range.'' (Cat 6)--The specified unambiguous display 
range of a radar.
    ``Integrated Services Digital Network.'' (ISDN) (Cat 5)--A unified 
end-to-end digital network, in which data originating from all types of 
communication (e.g., voice, text, data, still and moving pictures) are 
transmitted from one port (terminal) in the exchange (switch) over one 
access line to and from the subscriber.
    Intent to Deny (ITD) letter. A letter informing the applicant:
    (a) Of the reason for BXA's decision to deny a license application; 
and
    (b) That the application will be denied 45 days from the date of the 
ITD letter, unless the applicant provides, and BXA accepts, a reason why 
the application should not be denied for the stated reason. See 
Sec. 750.6 of the EAR.
    ``Interconnected radar sensors.'' (Cat 6)--Two or more radar sensors 
are interconnected when they mutually exchange data in real time.
    Intermediate consignee. The intermediate consignee is the bank, 
forwarding agent, or other intermediary (if any) who acts in a foreign 
country as an agent for the exporter, the purchaser, or the ultimate 
consignee, for the purpose of effecting delivery of the items to the 
ultimate consignee.
    ``Intrinsic Magnetic Gradiometer.'' (Cat 6)--A single magnetic field 
gradient

[[Page 467]]

sensing element and associated electronics the output of which is a 
measure of magnetic field gradient. (See also ``Magnetic Gradiometer'')
    ``Isostatic presses.'' (Cat 2)--Equipment capable of pressurizing a 
closed cavity through various media (gas, liquid, solid particles, etc.) 
to create equal pressure in all directions within the cavity upon a 
workpiece or material.
    Item. ``Item'' means ``commodities, software, and technology.'' When 
the EAR intend to refer specifically to commodities, software, or 
technology, the text will use the specific reference.
    Know. See ``knowledge.''
    Knowledge. Knowledge of a circumstance (the term may be a variant, 
such as ``know,'' ``reason to know,'' or ``reason to believe'') includes 
not only positive knowledge that the circumstance exists or is 
substantially certain to occur, but also an awareness of a high 
probability of its existence or future occurrence. Such awareness is 
inferred from evidence of the conscious disregard of facts known to a 
person and is also inferred from a person's willful avoidance of facts. 
This definition does not apply to part 760 of the EAR (Restrictive Trade 
Practices or Boycotts).
    ``Laser.'' (Cat 2, 3, 5, 6, and 9)--An assembly of components that 
produce both spatially and temporally coherent light that is amplified 
by stimulated emission of radiation. See also: ``Chemical laser''; ``Q-
switched laser''; ``Super High Power Laser''; and ``Transfer laser''.
    Law or regulation relating to export control. Any statute, 
proclamation, executive order, regulation, rule, license, or order 
applicable to any conduct involving an export transaction shall be 
deemed to be a ``law or regulation relating to export control.''
    Legible or legibility. Legible and legibility mean the quality of a 
letter or numeral that enables the observer to identify it positively 
and quickly to the exclusion of all other letters or numerals.
    License. Authority issued by the Bureau of Export Administration 
authorizing an export, reexport, or other regulated activity. The term 
``license'' does not include authority represented by a ``License 
Exception.''
    License application; application for license. License application 
and similar wording mean an application to BXA requesting the issuance 
of a license to the applicant.
    License Exception. An authorization described in part 740 of the EAR 
that allows you to export or reexport, under stated conditions, items 
subject to the EAR that otherwise would require a license. Unless 
otherwise indicated, these License Exceptions are not applicable to 
exports under the licensing jurisdiction of agencies other than the 
Department of Commerce.
    Licensee. The person to whom a license has been issued by BXA. See 
Sec. 750.7(c) of the EAR for a complete definition and identification of 
a licensee's responsibilities.
    ``Linearity.'' (Cat 2)--``Linearity'' (usually measured in terms of 
non-linearity) is the maximum deviation of the actual characteristic 
(average of upscale and downscale readings), positive or negative, from 
a straight line so positioned as to equalize and minimize the maximum 
deviations.
    ``Local area network.'' (Cat 4)--A data communication system that:
    (a) Allows an arbitrary number of independent ``data devices'' to 
communicate directly with each other; and
    (b) Is confined to a geographical area of moderate size (e.g., 
office building, plant, campus, warehouse).

    Note: ``Data device'': equipment capable of transmitting or 
receiving sequences of digital information.

    ``MBTR''.--See ``maximum bit transfer rate''.
    MTCR. See Missile Technology Control Regime.
    MTEC. See Missile Technology Export Control Group.
    ``Magnetic Gradiometers.'' (Cat 6)--Are designed to detect the 
spatial variation of magnetic fields from sources external to the 
instrument. They consist of multiple ``magnetometers'' and associated 
electronics the output of which is a measure of magnetic field gradient. 
(See also ``Intrinsic Magnetic Gradiometer''.)
    ``Magnetometers.'' (Cat 6)--Are designed to detect magnetic fields 
from sources external to the instrument.

[[Page 468]]

They consist of a single magnetic field sensing element and associated 
electronics the output of which is a measure of the magnetic field.
    ``Main storage.'' (Cat 4)--The primary storage for data or 
instructions for rapid access by a central processing unit. It consists 
of the internal storage of a ``digital computer'' and any hierarchical 
extension thereto, such as cache storage or non-sequentially accessed 
extended storage.
    ``Matrix.'' (Cat 1, 2, 8, and 9)--A substantially continuous phase 
that fills the space between particles, whiskers or fibers.
    ``Maximum bit transfer rate.'' (MBTR) (Cat 4)--Of solid state 
storage equipment: the number of data bits per second transferred 
between the equipment and its controller. Of a disk drive: the internal 
data transfer rate calculated as follows:

     ``MBTR'' (bits per second)=B x R x T, where:

B=Maximum number of data bits per track available to read or write in a 
          single revolution;
R=Revolutions per second;
T=Number of tracks that can be used or written simultaneously.

    ``Measurement uncertainty.'' (Cat 2)--The characteristic parameter 
that specifies in what range around the output value the correct value 
of the measurable variable lies with a confidence level of 95%. It 
includes the uncorrected systematic deviations, the uncorrected 
backlash, and the random deviations (Ref.: VDI/VDE 2617).
    ``Mechanical alloying.'' (Cat 1)--An alloying process resulting from 
the bonding, fracturing and rebonding of elemental and master alloy 
powders by mechanical impact. Non-metallic particles may be incorporated 
in the alloy by addition of the appropriate powders.
    ``Media access unit.'' (Cat 5)--Equipment that contains one or more 
communication interfaces (``network access controller'', 
``communications channel controller'', modem or computer bus) to connect 
terminal equipment to a network.
    ``Melt Extraction.'' (Cat 1)--A process to ``solidify rapidly'' and 
extract a ribbon-like alloy product by the insertion of a short segment 
of a rotating chilled block into a bath of a molten metal alloy.

    Note: ``Solidify rapidly'': solidification of molten material at 
cooling rates exceeding 1,000 K/sec.

    ``Melt Spinning.'' (Cat 1)--A process to ``solidify rapidly'' a 
molten metal stream impinging upon a rotating chilled block, forming a 
flake, ribbon or rod-like product.

    Note: ``Solidify rapidly'': solidification of molten material at 
cooling rates exceeding 1,000 K/sec.

    ``Microprocessor microcircuit.'' (Cat 3)--A ``monolithic integrated 
circuit'' or ``multichip integrated circuit'' containing an arithmetic 
logic unit (ALU) capable of executing a series of general purpose 
instructions from an external storage.

    N.B. 1: The ``microprocessor microcircuit'' normally does not 
contain integral user-accessible storage, although storage present on-
the-chip may be used in performing its logic function.
    N.B. 2: This definition includes chip sets that are designed to 
operate together to provide the function of a ``microprocessor 
microcircuit''.

    ``Microprogram.'' (Cat 4 and 5)--A sequence of elementary 
instructions, maintained in a special storage, the execution of which is 
initiated by the introduction of its reference instruction into an 
instruction register.
    Missile Technology Control Regime (MTCR). The United States and 
other nations in this multilateral control regime have agreed to 
guidelines for restricting the export and reexport of dual-use items 
that may contribute to the development of missiles. The MTCR Annex lists 
missile-related equipment and technology controlled either by the 
Department of Commerce or by the Department of State's Office of Defense 
Trade Controls (22 CFR parts 120 through 130).
    Missile Technology Export Control Group (MTEC). Chaired by the 
Department of State, the MTEC primarily reviews applications involving 
items controlled for Missile Technology (MT) reasons. The MTEC also 
reviews applications involving items not controlled for MT reasons, but 
destined for a country and/or end-use/end-user of concern.

[[Page 469]]

    ``Missiles.'' (All)--Rocket systems (including ballistic missile 
systems, space launch vehicles, and sounding rockets) and unmanned air 
vehicle systems (including cruise missile systems, target drones, and 
reconnaissance drones) ``capable of'' delivering at least 500 kilograms 
payload to a range of at least 300 kilometers.
    ``Monolithic integrated circuit.'' (Cat 3)--A combination of passive 
or active ``circuit elements'' or both that:
    (a) Are formed by means of diffusion processes, implantation 
processes or deposition processes in or on a single semiconducting piece 
of material, a so-called 'chip';
    (b) Can be considered as indivisibly associated; and
    (c) Perform the function(s) of a circuit.

    Note: ``Circuit element'': a single active or passive functional 
part of an electronic circuit, such as one diode, one transistor, one 
resistor, one capacitor, etc.

    ``Most immediate storage.'' (Cat 4)--The portion of the ``main 
storage'' most directly accessible by the central processing unit:
    (a) For single level ``main storage'', the internal storage; or
    (b) For hierarchical ``main storage'':
    (1) The cache storage;
    (2) The instruction stack; or
    (3) The data stack.
    ``Motion control board.'' (Cat 2)--An electronic ``assembly'' 
specially designed to provide a computer system with the capability to 
coordinate simultaneously the motion of axes of machine tools for 
``contouring control''.
    ``Multichip integrated circuit.'' (Cat 3)--Two or more ``monolithic 
integrated circuits'' bonded to a common ``substrate''.
    ``Multi-data-stream processing.'' (Cat 4)--The ``microprogram'' or 
equipment architecture technique that permits simultaneous processing of 
two or more data sequences under the control of one or more instruction 
sequences by means such as:
    (a) Single Instruction Multiple Data (SIMD) architectures such as 
vector or array processors;
    (b) Multiple Single Instruction Multiple Data (MSIMD) architectures;
    (c) Multiple Instruction Multiple Data (MIMD) architectures, 
including those that are tightly coupled, closely coupled or loosely 
coupled; or
    (d) Structured arrays of processing elements, including systolic 
arrays.
    ``Multilevel security.'' (Cat 5)--A class of system containing 
information with different sensitivities that simultaneously permits 
access by users with different security clearances and need-to-know, but 
prevents users from obtaining access to information for which they lack 
authorization.

    Note: ``Multilevel security'' is computer security and not computer 
reliability that deals with equipment fault prevention or human error 
prevention in general.

    ``Multispectral Imaging Sensors.'' (Cat 6)--Are capable of 
simultaneous or serial acquisition of imaging data from two or more 
discrete spectral bands. Sensors having more than twenty discrete 
spectral bands are sometimes referred to as hyperspectral imaging 
sensors.
    ``N.E.S.'' N.E.S or n.e.s. is an abbreviation meaning ``not 
elsewhere specified''.
    NLR. NLR (``no license required'') is a symbol entered on the 
Shipper's Export Declaration, certifying that no license is required.
    NSG. See Nuclear Suppliers Group.
    NATO (North Atlantic Treaty Organization). A strategic defensive 
organization that consists of the following member nations: Belgium, 
Canada, Denmark, France, Germany, Greece, Iceland, Italy, Luxembourg, 
the Netherlands, Norway, Portugal, Spain, Turkey, the United Kingdom, 
and the United States.
    Net value. The actual selling price, less shipping charges or 
current market price, whichever is the larger, to the same type of 
purchaser in the United States.
    ``Network access controller.'' (Cat 4 and 5)--A physical interface 
to a distributed switching network. It uses a common medium that 
operates throughout at the same ``digital transfer rate'' using 
arbitration (e.g., token or carrier sense) for transmission. 
Independently from any other, it selects data packets or data groups 
(e.g., IEEE 802) addressed to it. It is an assembly that can

[[Page 470]]

be integrated into computer or telecommunications equipment to provide 
communications access.
    ``Neural computer.'' (Cat 4)--A computational device designed or 
modified to mimic the behavior of a neuron or a collection of neurons 
(i.e., a computational device that is distinguished by its hardware 
capability to modulate the weights and numbers of the interconnections 
of a multiplicity of computational components based on previous data).
    ``Noise level.'' (Cat 6)--An electrical signal given in terms of 
power spectral density. The relation between ``noise level'' expressed 
in peak-to-peak is given by S\2\pp=8No(f2-f\1\), 
where Spp is the peak-to-peak value of the signal (e.g., 
nanoteslas), No is the power spectral density (e.g., 
(nanotesla)\2\/Hz) and (f2-f1) defines the 
bandwidth of interest.
    Nuclear Suppliers Group (NSG). The United States and other nations 
in this multilateral control regime have agreed to guidelines for 
restricting the export or reexport of items with nuclear applications. 
As of February 1, 1996, members include: Argentina, Australia, Austria, 
Belgium, Bulgaria, Canada, Czech Republic, Denmark, Finland, France, 
Germany, Greece, Hungary, Ireland, Italy, Japan, Luxembourg, the 
Netherlands, New Zealand, Norway, Poland, Portugal, Republic of Korea, 
Romania, Russia, Slovak Republic, Spain, South Africa, Sweden, 
Switzerland, the United Kingdom, and the United States. See also 
Sec. 742.3 of the EAR.
    ``Numerical control.'' (Cat 2)--The automatic control of a process 
performed by a device that makes use of numeric data usually introduced 
as the operation is in progress (Ref. ISO 2382).
    ``Object code.'' (or object language) (Cat 4)--An equipment 
executable form of a convenient expression of one or more processes 
(``source code'' (or source language)) that has been converted by a 
programming system. (See also ``source code'')
    Office of Foreign Assets Control (FAC) or (OFAC). The office at the 
Department of the Treasury responsible for blocking assets of foreign 
countries subject to economic sanctions, controlling participation by 
U.S. persons, including foreign subsidiaries, in transactions with 
specific countries or nationals of such countries, and administering 
embargoes on certain countries or areas of countries. (See 31 CFR parts 
500 through 590.)
    ``Operate autonomously.'' (Cat 8)--Fully submerged, without snorkel, 
all systems working and cruising at minimum speed at which the 
submersible can safely control its depth dynamically by using its depth 
planes only, with no need for a support vessel or support base on the 
surface, sea-bed or shore, and containing a propulsion system for 
submerged or surface use.
    Operating Committee (OC). The OC voting members include 
representatives of appropriate agencies in the Departments of Commerce, 
State, Defense, Justice (for encryption exports), and Energy and the 
Arms Control and Disarmament Agency. The appropriate representatives of 
the Joint Chiefs of Staff and the Director of the Nonproliferation 
Center of the Central Intelligence Agency are non-voting members. The 
Department of Commerce representative, appointed by the Secretary, is 
the Chair of the OC and serves as the Executive Secretary of the 
Advisory Committee on Export Policy. The OC may invite representatives 
of other Government agencies or departments (other than those identified 
in this definition) to participate in the activities of the OC when 
matters of interest to such agencies or departments are under 
consideration.
    ``Optical amplification.'' (Cat 5)--In optical communications, an 
amplification technique that introduces a gain of optical signals that 
have been generated by a separate optical source, without conversion to 
electrical signals, i.e., using semiconductor optical amplifiers, 
optical fiber luminescent amplifiers.
    ``Optical computer.'' (Cat 4)--A computer designed or modified to 
use light to represent data and whose computational logic elements are 
based on directly coupled optical devices.
    ``Optical fiber preforms.'' (Cat 5 and 6)--Bars, ingots, or rods of 
glass, plastic or other materials that have been specially processed for 
use in fabricating optical fibers. The characteristics

[[Page 471]]

of the preform determine the basic parameters of the resultant drawn 
optical fibers.
    ``Optical integrated circuit.'' (Cat 3)--A ``monolithic integrated 
circuit'' or a ``hybrid integrated circuit'', containing one or more 
parts designed to function as photosensor or photoemitter or to perform 
(an) optical or (an) electro-optical function(s).
    ``Optical switching.'' (Cat 5)--The routing of or switching of 
signals in optical form without conversion to electrical signals.
    ``Overall current density.'' (Cat 3)--The total number of ampere-
turns in the coil (i.e., the sum of the number of turns multiplied by 
the maximum current carried by each turn) divided by the total cross-
section of the coil (comprising the superconducting filaments, the 
metallic matrix in which the superconducting filaments are embedded, the 
encapsulating material, any cooling channels, etc.).
    ``PABX.'' (Cat 5)--(See ``Private automatic branch exchange''.)
    ``Part program.'' (Cat. 2)--An ordered set of instructions that is 
in a language and in a format required to cause operations to be 
effected under automatic control and that is either written in the form 
of a machine program on an input medium or prepared as input data for 
processing in a computer to obtain a machine program (Ref. ISO 2806-
1980).
    ``Peak power.'' (Cat 6)--Energy per pulse in Joule divided by the 
pulse duration in seconds.
    Person. A natural person, including a citizen or national of the 
United States or of any foreign country; any firm; any government, 
government agency, government department, or government commission; any 
labor union; any fraternal or social organization; and any other 
association or organization whether or not organized for profit. This 
definition does not apply to part 760 of the EAR (Restrictive Trade 
Practices or Boycotts).
    ``Personalized smart card.'' (Cat 5)--A smart card containing a 
microcircuit, in accordance with ISO/IEC 7816, that has been programmed 
by the issuer and cannot be changed by the user.
    Port of export. The port where the cargo to be shipped abroad is 
laden aboard the exporting carrier. It includes, in the case of an 
export by mail, the place of mailing.
    ``Positioning accuracy.'' (Cat. 2)--The positioning accuracy of 
``numerically controlled'' machine tools is to be determined and 
presented in accordance with ISO/DIS 230/2, paragraph 2.13, in 
conjunction with the following requirements:
    (a) Test conditions:
    (1) For 12 hours before and during measurements, the machine tool 
and accuracy measuring equipment will be kept at the same ambient 
temperature. During the pre-measurement time the slides of the machine 
will be continuously cycled in the same manner that the accuracy 
measurements will be taken;
    (2) The machine shall be equipped with any mechanical, electronic, 
or software compensation to be exported with the machine;
    (3) Accuracy of measuring equipment for the measurements shall be at 
least four times more accurate than the expected machine tool accuracy;
    (4) Power supply for slide drives shall be as follows:
    (i) Line voltage variation shall exceed 10% of nominal 
rated voltage;
    (ii) Frequency variation shall not exceed 2 Hz of normal 
frequency;
    (iii) Lineouts or interrupted service are not permitted.
    (b) Test programs:
    (1) Feed rate (velocity of slides) during measurement shall be the 
rapid traverse rate;

    Note: In case of machine tools that generate optical quality 
surfaces, the feedrate shall be equal to or less than 50 mm per minute.

    (2) Measurements shall be made in an incremental manner from one 
limit of the axis travel to the other without returning to the starting 
position for each move to the target position;
    (3) Axes not being measured shall be retained at mid travel during 
the test of an axis.
    (c) Presentation of test results: The results of the measurement 
must include:
    (1) Position accuracy (A); and
    (2) The mean reversal error (B).

[[Page 472]]

    ``Power management.'' (Cat 7)--Changing the transmitted power of the 
altimeter signal so that received power at the ``aircraft'' altitude is 
always at the minimum necessary to determine the altitude.
    ``Principal element.'' (Cat 4)--An element is a ``principal 
element'' when its replacement value is more than 35% of the total value 
of the system of which it is an element. Element value is the price paid 
for the element by the manufacturer of the system, or by the system 
integrator. Total value is the normal international selling price to 
unrelated parties at the point of manufacture or consolidation of 
shipment.
    ``Private automatic branch exchange.'' (PABX) (Cat 5)--An automatic 
telephone exchange, typically incorporating a position for an attendant, 
designed to provide access to the public network and serving extensions 
in an institution such as a business, government, public service or 
similar organization.
    ``Production.'' (General Technology Note)--Means all production 
stages, such as: product engineering, manufacture, integration, assembly 
(mounting), inspection, testing, quality assurance.
    Production facility. As defined by 10 CFR 110.2 of the Nuclear 
Regulatory Commission Regulations, production facility means any nuclear 
reactor or plant specially designed or used to produce special nuclear 
material through the irradiation of source material or special nuclear 
material, the separation of isotopes or the chemical reprocessing or 
irradiated source or special nuclear material.
    ``Program.'' (Cat 2, 4, and 5)--A sequence of instructions to carry 
out a process in, or convertible into, a form executable by an 
electronic computer.
    ``Proof test.'' (Cat 5)--On-line or off-line production screen 
testing that dynamically applies a prescribed tensile stress over a 0.5 
to 3 m length of fiber at a running rate of 2 to 5 m/s while passing 
between capstans approximately 150 mm in diameter. The ambient 
temperature is a nominal 293 K (20  deg.C) and relative humidity 40%.

    Note: Equivalent national standards for executing the ``proof test'' 
may be used.

    Publicly available information. Information that is generally 
accessible to the interested public in any form and, therefore, not 
subject to the EAR (See part 732 of the EAR).
    Publicly available technology and software. Technology and software 
that are already published or will be published; arise during, or result 
from fundamental research; are educational; or are included in certain 
patent applications (see Sec. 734.3(b)(3) of the EAR).
    ``Pulse compression.'' (Cat 6)--The coding and processing of a radar 
signal pulse of long time duration to one of short time duration, while 
maintaining the benefits of high pulse energy.
    ``Pulse duration.'' (Cat 6)--Duration of a ``laser'' pulse measured 
at Full Width Half Intensity (FWHI) levels.
    Purchaser. The person abroad who has entered into a transaction with 
the applicant to purchase an item for delivery to the ultimate 
consignee. A bank, freight forwarder, forwarding agent, or other 
intermediary is not a purchaser.
    ``Q-switched laser.'' (Cat 6)--A ``laser'' in which the energy is 
stored in the population inversion or in the optical resonator and 
subsequently emitted in a pulse.
    RWA. See Return Without Action.
    ``Radar frequency agility.'' (Cat 6)--Any technique that changes, in 
a pseudo-random sequence, the carrier frequency of a pulsed radar 
transmitter between pulses or between groups of pulses by an amount 
equal to or larger than the pulse bandwidth.
    ``Radar spread spectrum.'' (Cat 6)--Any modulation technique for 
spreading energy originating from a signal with a relatively narrow 
frequency band, over a much wider band of frequencies, by using random 
or pseudo-random coding.
    ``Range.'' (Cat 8)--Half the maximum distance a submersible vehicle 
can cover.
    Readable or readability. Readable and readability mean the quality 
of a group of letters or numerals being recognized as complete words or 
numbers.
    ``Real-time bandwidth.'' (Cat 3)--For ``dynamic signal analyzers'', 
the widest frequency range that the analyzer can output to display or 
mass storage without causing any discontinuity in the

[[Page 473]]

analysis of the input data. For analyzers with more than one channel, 
the channel configuration yielding the widest ``real-time bandwidth'' 
shall be used to make the calculation.
    ``Real-time Processing.'' (Cat 2 and 4)--The processing of data by a 
computer system providing a required level of service, as a function of 
available resources, within a guaranteed response time, regardless of 
the load of the system, when stimulated by an external event.
    Reasons for Control. Reasons for Control are: Anti-Terrorism (AT), 
Chemical & Biological Weapons (CB), Crime Control (CC), High Performance 
Computer (XP), Missile Technology (MT), National Security (NS), Nuclear 
Nonproliferation (NP), Regional Stability (RS), Short Supply (SS), and 
United Nations sanctions (UN). Items controlled within a particular ECCN 
may be controlled for more than one reason.
    Reexport. ``Reexport'' means an actual shipment or transmission of 
items subject to the EAR from one foreign country to another foreign 
country. For purposes of the EAR, the export or reexport of items 
subject to the EAR that will transit through a country or countries, or 
be transshipped in a country or countries to a new country, or are 
intended for reexport to the new country, are deemed to be exports to 
the new country. (See Sec. 734.2(b)of the EAR.) In addition, for 
purposes of satellites controlled by the Department of Commerce, the 
term ``reexport'' also includes the transfer of registration of a 
satellite or operational control over a satellite from a party resident 
in one country to a party resident in another country.
    Replacement license. An authorization by the Bureau of Export 
Administration revising the information, conditions, or riders stated on 
a license issued by BXA. See Sec. 750.7 of the EAR.
    ``Required.''--As applied to ``software'', refers to only that 
portion of ``software'' that is peculiarly responsible for achieving or 
exceeding the control performance levels, characteristics or function. 
Such ``required'' ``software'' may be shared by different products. 
``Technology'' ``required'' for the ``development'', ``production'', or 
``use'' of a controlled product remains controlled even when applicable 
to a product controlled at a lower level (see the General Technology 
Note).
    ``Resolution.'' (Cat 2)--The least increment of a measuring device; 
on digital instruments, the least significant bit (Ref.: ANSI B-
89.1.12).
    Return Without Action (RWA). An application may be RWA'd for one of 
the following reasons:
    (a) The applicant has requested the application be returned;
    (b) A License Exception applies;
    (c) The items are not under Department of Commerce jurisdiction;
    (d) Required documentation has not been submitted with the 
application; or
    (e) The applicant cannot be reached after several attempts to 
request additional information necessary for processing of the 
application.
    ``Robot.'' (Cat 2 and 8)--A manipulation mechanism, which may be of 
the continuous path or of the point-to-point variety, may use 
``sensors'', and has all the following characteristics:
    (a) Is multifunctional;
    (b) Is capable of positioning or orienting material, parts, tools or 
special devices through variable movements in a three dimensional space;
    (c) Incorporates three or more closed or open loop servo-devices 
that may include stepping motors; and
    (d) Has ``user-accessible programmability'' by means of teach/
playback method or by means of an electronic computer that may be a 
programmable logic controller, i.e., without mechanical intervention.

    Note: This definition does not include the following devices:
    (a) Manipulation mechanisms that are only manually/teleoperator 
controllable;
    (b) Mixed sequence manipulation mechanisms that are automated moving 
devices, operating according to mechanically fixed programmed motions. 
The program is mechanically limited by fixed stops, such as pins or 
cams. The sequence of motions and the selection of paths or angles are 
not variable or changeable by mechanical, electronic or electrical 
means;
    (c) Mechanically controlled variable sequence manipulation 
mechanisms that are automated moving devices, operating according to 
mechanically fixed programmed motions. The program is mechanically 
limited by fixed, but adjustable stops, such as pins or cams. The 
sequence of motions and the selection of paths or angles are variable

[[Page 474]]

within the fixed program pattern. Variations or modifications of the 
program pattern (e.g., changes of pins or exchanges of cams) in one or 
more motion axes are accomplished only through mechanical operations;
    (d) Non-servo-controlled variable sequence manipulation mechanisms 
that are automated moving devices, operating according to mechanically 
fixed programmed motions. The program is variable, but the sequence 
proceeds only by the binary signal from mechanically fixed electrical 
binary devices or adjustable stops;
    (e) Stacker cranes defined as Cartesian coordinate manipulator 
systems manufactured as an integral part of a vertical array of storage 
bins and designed to access the contents of those bins for storage or 
retrieval.

    ``Rotary Atomization.'' (Cat 1)--A process to reduce a stream or 
pool of molten metal to droplets to a diameter of 500 micrometer or less 
by centrifugal force.
    ``Run-out.'' (out-of-true running) (Cat 2)--Radial displacement in 
one revolution of the main spindle measured in a plane perpendicular to 
the spindle axis at a point on the external or internal revolving 
surface to be tested (Ref.: ISO 230 Part 1-1986, paragraph 5.61).
    ``SDH.''--See ``synchronous digital hierarchy'' Sensors (Cat. 6)--
Detectors of a physical phenomenon, the output of which (after 
conversion into a signal that can be interpreted by a controller) is 
able to generate ``programs'' or modify programmed instructions or 
numerical program data. This includes ``sensors'' with machine vision, 
infrared imaging, acoustical imaging, tactile feel, inertial position 
measuring, optical or acoustic ranging or force or torque measuring 
capabilities.
    SNEC. See Subgroup on Nuclear Export Coordination.
    ``SONET.''--See ``synchronous optical network''.
    ``Scale factor.'' (gyro or accelerometer) (Cat 7)--The ratio of 
change in output to a change in the input intended to be measured. Scale 
factor is generally evaluated as the slope of the straight line that can 
be fitted by the method of least squares to input-output data obtained 
by varying the input cyclically over the input range.
    Schedule B numbers. The commodity numbers appearing in the current 
edition of the Bureau of the Census publication, Schedule B Statistical 
Classification of Domestic and Foreign Commodities Exported from the 
United States. (See part 758 of the EAR for information on use of 
Schedule B numbers.)
    ``Settling time.'' (Cat 3)--The time required for the output to come 
within one-half bit of the final value when switching between any two 
levels of the converter.
    Shield. Chaired by the Department of State, the Shield primarily 
reviews applications involving items controlled for Chemical and 
Biological Weapons (CBW) reasons. The Shield also reviews applications 
involving items not controlled for CBW reasons, but destined for a 
country and/or end-use/end-user of concern. See Sec. 750.4 of the EAR.
    ``Signal analyzers.'' (Cat 3)--Apparatus capable of measuring and 
displaying basic properties of the single-frequency components of multi-
frequency signals.
    ``Signal analyzers.'' (dynamic) (Cat 3)--(See ``Dynamic signal 
analyzers''.)
    ``Signal processing.'' (Cat 3, 4 and 5)--The processing of 
externally derived information-bearing signals by algorithms such as 
time compression, filtering, extraction, selection, correlation, 
convolution or transformations between domains (e.g., fast Fourier 
transform or Walsh transform).
    ``Simple educational devices.'' (Cat 3)--Devices designed for use in 
teaching basic scientific principles and demonstrating the operation of 
those principles in educational institutions.
    Single shipment. All items moving at the same time from one exporter 
to one consignee or intermediate consignee on the same exporting 
carrier, even if these items will be forwarded to one or more ultimate 
consignees. Items being transported in this manner shall be treated as a 
single shipment even if the items represent more than one order or are 
in separate containers.
    ``Software.'' (Cat: all)--A collection of one or more ``programs'' 
or ``microprograms'' fixed in any tangible medium of expression.
    ``Source code.'' (or source language) (Cat 4)--A convenient 
expression of one or more processes that may be turned by a programming 
system into equipment executable form (``object code'' (or object 
language)).

[[Page 475]]

    ``Spacecraft.'' (Cat 7 and 9)--Active and passive satellites and 
space probes.
    ``Space qualified.'' (Cat 3 and 6)--Products designed, manufactured 
and tested to meet the special electrical, mechanical or environmental 
requirements for use in the launch and deployment of satellites or high-
altitude flight systems operating at altitudes of 100 km or higher.
    Specially Designated National (SDN). Any person who is determined by 
the Secretary of the Treasury to be a specially designated national for 
any reason under regulations issued by the Office of Foreign Assets 
Control (see 31 CFR parts 500 through 590).
    Specially Designated Terrorist (STN). Any person who is determined 
by the Secretary of the Treasury to be a specially designated terrorist 
under notices or regulations issued by the Office of Foreign Assets 
Control (see 31 CFR chapter V).
    ``Specially designed.'' (MTCR context)--Equipment, parts, components 
or ``software'' that, as a result of ``development'', have unique 
properties that distinguish them for certain predetermined purposes. For 
example, a piece of equipment that is ``specially designed'' for use in 
a ``missile'' will only be considered so if it has no other function or 
use. Similarly, a piece of manufacturing equipment that is ``specially 
designed'' to produce a certain type of component will only be 
considered such if it is not capable of producing other types of 
components.
    ``Specific modulus.'' (Cat 1)--Young's modulus in pascals, 
equivalent to N/m\2\ divided by specific weight in N/m\3\, measured at a 
temperature of (296  2) K ((23  2)  deg.C) and a 
relative humidity of (50  5)%.
    ``Specific tensile strength.'' (Cat 1)--Ultimate tensile strength in 
pascals, equivalent to N/m\2\ divided by specific weight in N/m\3\, 
measured at a temperature of (296  2) K ((23  2) 
 deg.C) and relative humidity of (50  5)%.
    ``Spectral efficiency.'' (Cat 5)--A figure of merit parametrized to 
characterize the efficiency of transmission system that uses complex 
modulation schemes such as QAM (quadrature amplitude modulation), 
Trellis coding, QSPK (Q-phased shift key), etc. It is defined as 
follows:
[GRAPHIC] [TIFF OMITTED] TR25MR96.013

    ``Splat Quenching.'' (Cat 1)--A process to ``solidify rapidly'' a 
molten metal stream impinging upon a chilled block, forming a flake-like 
product.

    Note: ``Solidify rapidly'': solidification of molten material at 
cooling rates exceeding 1,000 K/sec.

    ``Spread spectrum.'' (Cat 5)--The technique whereby energy in a 
relatively narrow-band communication channel is spread over a much wider 
energy spectrum.
    ``Spread spectrum radar.'' (Cat 6)--(see ``Radar spread spectrum'')
    ``Sputtering.'' (Cat 4)--An overlay coating process wherein 
positively charged ions are accelerated by an electric field towards the 
surface of a target (coating material). The kinetic energy of the 
impacting ions is sufficient to cause target surface atoms to be 
released and deposited on the substrate.

    Note: Triode, magnetron or radio frequency sputtering to increase 
adhesion of coating and rate of deposition are ordinary modifications of 
the process.

    ``Stability.'' (Cat 7)--Standard deviation (1 sigma) of the 
variation of a particular parameter from its calibrated value measured 
under stable temperature conditions. This can be expressed as a function 
of time.
    ``Stored program controlled.'' (Cat 2, 3, and 5)--A control using 
instructions stored in an electronic storage that a processor can 
execute in order to direct the performance of predetermined functions.

    Note: Equipment may be ``stored program controlled'' whether the 
electronic storage is internal or external to the equipment.


[[Page 476]]


    Subgroup on Nuclear Export Coordination (SNEC). Chaired by the 
Department of State, the SNEC primarily reviews applications involving 
items controlled for nuclear nonproliferation (NP) reasons. The SNEC 
also reviews applications involving items not controlled for NP reasons, 
but destined for a country and/or end-use/end-user of NP concern.
    Subject to the EAR. A term used in the EAR to describe those 
commodities, Software, technology, and activities over which the Bureau 
of Export Administration (BXA) exercises regulatory jurisdiction under 
the EAR (See Sec. 734.2(a) of the EAR).
    ``Substrate.'' (Cat 3)--A sheet of base material with or without an 
interconnection pattern and on which or within which ``discrete 
components'' or integrated circuits or both can be located.

    Note: ``Discrete component'': a separately packaged ``circuit 
element'' with its own external connections.

    ``Substrate blanks.'' (Cat 6)--Monolithic compounds with dimensions 
suitable for the production of optical elements such as mirrors or 
optical windows.
    ``Superalloys.'' (Cat 2 and 9)--Nickel-, cobalt-, or iron-base 
alloys having strengths superior to any alloys in the AISI 300 series at 
temperatures over 922 K (694 degrees C) under severe environmental and 
operating conditions.
    ``Superconductive.'' (Cat 1, 3, 6, and 8)--Materials, i.e., metals, 
alloys, or compounds that can lose all electrical resistance, i.e., that 
can attain infinite electrical conductivity and carry very large 
electrical currents without Joule heating.

    Note: The ``superconductive'' state of a material is individually 
characterized by a ``critical temperature'', a critical magnetic field 
that is a function of temperature, and a critical current density that 
is a function of both magnetic field and temperature.

    ``Super High Power Laser.'' (SHPL) (Cat 6)--A ``laser'' capable of 
delivering (the total or any portion of) the output energy exceeding 1 
kJ within 50 ms or having an average or CW power exceeding 20 kW.
    ``Superplastic forming.'' (Cat 1 and 2)--A deformation process using 
heat for metals that are normally characterized by low of elongation 
(less than 20%) at the breaking point as determined at room temperature 
by conventional tensile strength testing, in order to achieve 
elongations during processing that are at least 2 times those values.
    ``Swept frequency network analyzers.'' (Cat 3)--Involve the 
automatic measurement of equivalent circuit parameters over a range of 
frequencies, involving swept frequency measurement techniques, but not 
continuous wave point-to-point measurements.
    ``Switch fabric.'' (Cat 5)--That hardware and associated 
``software'' that provides the physical or virtual connection path for 
in-transit message traffic being switched.
    ``Synchronous digital hierarchy.'' (SDH) (Cat 5)--A digital 
hierarchy providing a means to manage, multiplex, and access various 
forms of digital traffic using a synchronous transmission format on 
different types of media. The format is based on the Synchronous 
Transport Module (STM) that is defined by CCITT Recommendation G.703, 
G.707, G.708, G.709 and others yet to be published. The first level rate 
of ``SDH'' is 155.52 Mbits/s.
    ``Synchronous optical network.'' (SONET) (Cat 5)--A network 
providing a means to manage, multiplex and access various forms of 
digital traffic using a synchronous transmission format on fiber optics. 
The format is the North America version of ``SDH'' and also uses the 
Synchronous Transport Module (STM). However, it uses the Synchronous 
Transport Signal (STS) as the basic transport module with a first level 
rate of 51.81 Mbits/s. The SONET standards are being integrated into 
those of ``SDH''.
    ``Systems tracks.'' (Cat 6)--Processed, correlated (fusion of radar 
target data to flight plan position) and updated aircraft flight 
position report available to the Air Traffic Control center controllers.
    ``Systolic array computer.'' (Cat 4)--A computer where the flow and 
modification of the data is dynamically controllable at the logic gate 
level by the user.

[[Page 477]]

    ``Technology.'' (General Technology Note)--Specific information 
necessary for the ``development'', ``production'', or ``use'' of a 
product. The information takes the form of ``technical data'' or 
``technical assistance''. Controlled ``technology'' is defined in the 
General Technology Note and in the Commerce Control List (Supplement No. 
1 to part 774 of the EAR).

    N.B.: Technical assistance--May take forms such as instruction, 
skills training, working knowledge, consulting services.

    Note: ``Technical assistance'' may involve transfer of ``technical 
data''.

    ``Technical data.''--May take forms such as blueprints, plans, 
diagrams, models, formulae, tables, engineering designs and 
specifications, manuals and instructions written or recorded on other 
media or devices such as disk, tape, read-only memories.
    ``Telecommunication transmission equipment.'' (Cat 5)--
    (a) Categorized as follows, or combinations thereof:
    (1) Radio equipment (e.g., transmitters, receivers and 
transceivers);
    (2) Line terminating equipment;
    (3) Intermediate amplifier equipment;
    (4) Repeater equipment;
    (5) Regenerator equipment;
    (6) Translation encoders (transcoders);
    (7) Multiplex equipment (statistical multiplex included);
    (8) Modulators/demodulators (modems);
    (9) Transmultiplex equipment (see CCITT Rec. G701);
    (10) ``Stored program controlled'' digital crossconnection 
equipment;
    (11) ``Gateways'' and bridges;
    (12) ``Media'' access units; and
    (b) Designed for use in single or multi-channel communication via:
    (1) Wire (line);
    (2) Coaxial cable;
    (3) Optical fiber cable;
    (4) Electromagnetic radiation.
    ``Terminal interface equipment.'' (Cat 4)--Equipment at which 
information enters or leaves the telecommunication systems, e.g., 
telephone, data device, computer, facsimile device.
    ``Three dimensional Vector Rate.'' (Cat 4)--The number of vectors 
generated per second that have 10 pixel poly line vectors, clip tested, 
randomly oriented, with either integer or floating point X-Y-Z 
coordinate values (whichever produces the maximum rate).
    ``Tilting spindle.'' (Cat 2)--A tool-handling spindle that alters, 
during the machining process, the angular position of its center line 
with respect to any other axis.
    ``Time constant.'' (Cat 6)--The time taken from the application of a 
light stimulus for the current increment to reach a value of 1-1/e times 
the final value (i.e., 63% of the final value).
    ``Total digital transfer rate.'' (Cat 5)--The number of bits, 
including line coding, overhead and so forth per unit time passing 
between corresponding equipment in a digital transmission system. (See 
also ``digital transfer rate''.)
    Transfer. A transfer to any person of items subject to the EAR 
either within the United States or outside of the United States with the 
knowledge or intent that the items will be shipped, transferred, or 
transmitted to an unauthorized recipient.
    ``Transfer laser.'' (Cat 6)--A ``laser'' in which the lasting 
species is excited through the transfer of energy by collision of a non-
lasing atom or molecule with a lasing atom or molecule species.
    ``Tunable.'' (Cat 6)--The ability of a ``laser'' to produce a 
continuous output at all wavelengths over a range of several ``laser'' 
transitions. A line selectable ``laser'' produces discrete wavelengths 
within one ``laser'' transition and is not considered ``tunable''.
    ``Two dimensional Vector Rate.'' (Cat 4)--The number vectors 
generated per second that have 10 pixel poly line vectors, clip tested, 
randomly oriented, with either integer or floating point X-Y coordinate 
values (whichever produces the maximum rate).
    U.S. exporter. That person who, as the principal party in interest 
in the export transaction, has the power and responsibility for 
determining and controlling the sending of the items out of the United 
States. (See also ``applicant''.)
    U.S. person. (a) For purposes of Sec. 744.6 of the EAR, the term 
U.S. person includes:

[[Page 478]]

    (1) Any individual who is a citizen of the United States, a 
permanent resident alien of the United States, or a protected individual 
as defined by 8 U.S.C. 1324b(a)(3);
    (2) Any juridical person organized under the laws of the United 
States or any jurisdiction within the United States, including foreign 
branches; and
    (3) Any person in the United States.
    (b) See also parts 746 and 760 of the EAR for definitions of ``U.S. 
person'' that are specific to those parts.
    Ultimate consignee. The person located abroad who is the true party 
in interest in actually receiving the export or reexport for the 
designated end-use. (See Sec. 748.4(b)(5) of the EAR.)
    United States. Unless otherwise stated, the 50 States, including 
offshore areas within their jurisdiction pursuant to section 3 of the 
Submerged Lands Act (43 U.S.C. 1311), the District of Columbia, Puerto 
Rico, and all territories, dependencies, and possessions of the United 
States, including foreign trade zones established pursuant to 19 U.S.C. 
81A-81U, and also including the outer continental shelf, as defined in 
section 2(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1331(a)).
    United States airline. Any citizen of the United States who is 
authorized by the U.S. Government to engage in business as an airline. 
For purposes of this definition, a U.S. citizen is:
    (a) An individual who is a citizen of the United States or one of 
its possessions; or
    (b) A partnership of which each member is such an individual; or
    (c) A corporation or association created or organized under the laws 
of the United States, or of any State, Territory, or possession of the 
United States, of which the president and two-thirds of the board of 
directors and other managing officers thereof are such individuals and 
in which at least 75 percent of the voting interest is owned or 
controlled by persons who are citizens of the United States or of one of 
its possessions.
    ``Usable in or Capable of.'' (MTCR context)--Equipment, parts, 
components or ``software'' that are suitable for a particular purpose. 
There is no need for the equipment, parts, components or ``software'' to 
have been configured, modified or specified for the particular purpose. 
For example, any military specification memory circuit would be 
``capable of'' operation in a guidance system.
    ``Use.'' (General Technology Note)--Operation, installation 
(including on-site installation), maintenance (checking), repair, 
overhaul and refurbishing.
    ``User-accessible programmability.'' (Cat 4, 5, and 6)--The facility 
allowing a user to insert, modify, or replace ``programs'' by means 
other than:
    (a) A physical change in wiring or interconnections; or
    (b) The setting of function controls including entry of parameters.
    Utilization facility. (a) As defined by 10 CFR 110.2 of the Nuclear 
Regulatory Commission Regulations, utilization facility means a nuclear 
reactor, other than one that is a production facility, any of the 
following major components of a nuclear reactor: Pressure vessels 
designed to contain the core of a nuclear reactor, other than one that 
is a production facility, and the following major components of a 
nuclear reactor:
    (1) Primary coolant pumps;
    (2) Fuel charging or discharging machines; and
    (3) Control rods.
    (b) Utilization facility does not include the steam turbine 
generator portion of a nuclear power plant.
    ``Vacuum Atomization.'' (Cat 1)--A process to reduce a molten stream 
of metal to droplets of a diameter of 500 micrometer or less by the 
rapid evolution of a dissolved gas upon exposure to a vacuum.
    ``Variable geometry airfoils.'' (Cat 7)--Use trailing edge flaps or 
tabs, or leading edge slats or pivoted nose droop, the position of which 
can be controlled in flight.
    ``Vector Rate.'' (Cat 4)--See: ``Two dimensional Vector Rate''; 
``Three dimensional Vector Rate''.
    You. Any person, including a natural person, including a citizen of 
the United States or any foreign country; any firm; any government, 
government agency, government department, or government commission; any 
labor

[[Page 479]]

union; any fraternal or social organization; and any other association 
or organization whether or not organized for profit.

[61 FR 12925, Mar. 25, 1996, as amended at 61 FR 68586, Dec. 30, 1996]



PART 774--THE COMMERCE CONTROL LIST--Table of Contents




Sec.
774.1  Introduction.
774.2  [Reserved]

Supplement No. 1 to Part 774--The Commerce Control List
Supplement No. 2 to Part 774--General Technology and Software Notes
Supplement No. 3 to Part 774--Cross-Reference List

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 10 
U.S.C. 7420; 10 U.S.C. 7430(e); 18 U.S.C. 2510 et seq.; 22 U.S.C. 287c; 
22 U.S.C. 3201 et seq.; 22 U.S.C. 6004; Sec. 201, Pub. L. 104-58, 109 
Stat. 557 (30 U.S.C. 185(s)); 30 U.S.C. 185(u); 42 U.S.C. 2139a; 42 
U.S.C. 6212; 43 U.S.C. 1354; 46 U.S.C. app. 466c; 50 U.S.C. app. 5; E.O. 
12924, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Executive Order 13026 
(November 15, 1996, 61 FR 58767); Notice of August 15, 1995 (60 FR 
42767, August 17, 1995); and Notice of August 14, 1996 (61 FR 42527).

    Source: 61 FR 12937, Mar. 25, 1996, unless otherwise noted.



Sec. 774.1  Introduction.

    In this part, references to the EAR are references to 15 CFR chapter 
VII, subchapter C. The Bureau of Export Administration (BXA) maintains 
the Commerce Control List (CCL) that includes items (commodities, 
software, and technology) subject to the authority of BXA. The CCL does 
not include those items exclusively controlled for export by another 
department or agency of the U.S. Government. In instances where other 
agencies administer controls over related items, entries in the CCL will 
contain a reference to these controls. Those items subject to the EAR 
but not specified on the CCL are identified by the designator ``EAR99''. 
See Sec. 734.2(a) of the EAR for items that are ``subject to the EAR''. 
You should consult part 738 of the EAR for an explanation of the 
organization of the CCL and its relationship to the Country Chart.
    The CCL is contained in Supplement No. 1 to this part, and 
Supplement No. 2 to this part contains the General Technology and 
Software Notes relevant to entries contained in the CCL.
Sec. 774.2  [Reserved]

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

 Category 0--Nuclear Materials, Facilities & Equipment and Miscellaneous

                 A. Equipment, Assemblies and Components



0A018  Items on the International Munitions List.

License Requirements

Reason for Control: NS, RS, AT, UN

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
RS applies to 0A918.c.....................  RS Column 2                 
AT applies to entire entry................  AT Column 1                 
UN applies to entire entry................  Rwanda                      
                                                                        

License Exceptions

LVS: $5000 for 0A918.a and b; $3000 for 0A918.c; $1500 for 0A918.d 
through .f; and $0 for entire entry for Rwanda
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: 0A918.a, .b, and .c in $ value; 0A18.d, .e, and .f in number
Related Controls: N/A
Related Definitions: N/A
Items: a. Power controlled searchlights and control units therefor, 
designed for military use, and equipment mounting such units; and 
specially designed parts and accessories therefor;
    b. Construction equipment built to military specifications, 
specially designed for airborne transport; and specially designed parts 
and accessories therefor;
    c. Specially designed components and parts for ammunition, except 
cartridge cases, powder bags, bullets, jackets, cores, shells, 
projectiles, boosters, fuses and components, primers, and other 
detonating devices and ammunition belting and linking machines (all of 
which are subject to the export licensing authority of the U.S. 
Department of State, Office of Defense Trade Controls. (See 22 CFR parts 
120 through 130.)
    d. Bayonets;
    e. Muzzle-loading (black powder) firearms;

    Note: Antique small arms dating prior to 1890 and their 
reproductions are not controlled by this ECCN 0A918.

    f. Military helmets, except:
    f.1. Conventional steel helmets other than those described by 
0A918f.2 below.
    f.2. Helmets, made of any material, equipped with communications 
hardware,

[[Page 480]]

optional sights, slewing devices or mechanisms to protect against 
thermal flash or lasers.

    Note: Helmets described in 0A918.f.1 are controlled by 0A988. 
Helmets described in 0A918.f.2 are controlled by the U.S. Department of 
State, Office of Defense Trade Controls (See 22 CFR part 121, Category 
X).



0A980  Horses by sea.

License Requirements

Reason for Control: SS

SS applies to entire entry. For licensing requirements (and possible 
License Exceptions), proceed directly to part 754 of the EAR. The 
Commerce Country Chart is not designed to determine licensing 
requirements for items controlled for SS reasons.

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



0A982  Saps; thumbcuffs, leg irons, shackles, and handcuffs; straight jackets, plastic handcuffs, police helmets and shields; and parts and accessories, n.e.s.

License Requirements

Reason for Control: CC

                                                                        
                Control(s)                          Country Chart       
                                                                        
CC applies to entire entry................  CC Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



0A983  Specially designed implements of torture and thumbscrews; and parts and accessories, n.e.s.

License Requirements

Reason for Control: CC

CC applies to entire entry. A license is required for ALL destinations, 
regardless of end-use. Accordingly, a column specific to this control 
does not appear on the Commerce Country Chart. (See part 742 of the EAR 
for additional information.)

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




0A984  Shotguns, barrel length 18 inches (45.72 cm) inches or over; buckshot shotgun shells; except equipment used exclusively to treat or tranquilize animals, 
          and except arms designed solely for signal, flare, or saluting 
          use; and parts, n.e.s.

License Requirements

Reason for Control: CC, UN

                                                                        
                Control(s)                          Country Chart       
                                                                        
CC applies to shotguns with a barrel                                    
 length over 18 in. (45.72 cm) but less                                 
 than 24 in. (60.96 cm) or buckshot                                     
 shotgun shells controlled by this entry,                               
 regardless of end-user...................  CC Column 1                 
CC applies to shotguns with a barrel                                    
 length over 24 in. (60.96 cm), regardless                              
 of end-user..............................  CC Column 2                 
CC applies to shotguns with a barrel                                    
 length over 24 in. (60.96 cm) if for sale                              
 or resale to police or law enforcement...  CC Column 3                 
UN applies to entire entry................  Rwanda                      
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: This entry does not control shotguns with a barrel 
length of less than 18 inches (45.72 cm). See 22 CFR part 121, Category 
I. These items are subject to the export licensing authority of the 
Department of State, Office of Defense Trade Controls.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




0A985  Optical sighting devices for shotguns controlled by 0A984; discharge type arms (for example, stun guns, shock batons, electric cattle prods, 
          immobilization guns and projectiles, etc.) except equipment 
          used exclusively to treat or tranquilize animals, and except 
          arms designed solely for signal, flare, or saluting use; and 
          parts, n.e.s.

License Requirements

Reason for Control: CC, UN

                                                                        
                Control(s)                          Country Chart       
                                                                        
CC applies to entire entry................  CC Column 1                 
UN applies to entire entry................  Rwanda                      
                                                                        

License Exceptions


[[Page 481]]


LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




0A986  Shotgun shells, except buckshot shotgun shells, and parts.

License Requirements

Reason for Control: UN

UN applies to entire entry. A license is required for items controlled 
by this entry to Cuba, Libya, North Korea and Rwanda. The Commerce 
Country Chart is not designed to determine licensing requirements for 
this entry. See part 746 of the EAR for additional information.

    Note: Exports from the U.S. and transhipments to Iran must be 
licensed by the Department of Treasury, Office of Foreign Assets 
Control. (See Sec. 746.7 of the EAR for additional information on this 
requirement.)

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




0A988  Conventional military steel helmets as described by 0A018.f.1; and machetes.

License Requirements

Reason for Control: UN

UN applies to entire entry. A license is required for items controlled 
by this entry to Cuba, Libya, North Korea and Rwanda. The Commerce 
Country Chart is not designed to determine licensing requirements for 
this entry. See part 746 of the EAR for additional information.

    Note: Exports from the U.S. and transhipments to Iran must be 
licensed by the Department of Treasury, Office of Foreign Assets 
Control. (See to Sec. 746.7 of the EAR for additional information on 
this requirement.)

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

              B. Test, Inspection and Production Equipment




0B001  Valves, specially designed or prepared for gaseous diffusion separation process, that are wholly made of or lined with aluminum, aluminum alloys, nickel, 
          or alloy containing 60 percent by weight or more nickel, 40 mm 
          (1.6 in.) or more in diameter, with bellows seals, and 
          specially designed parts and components therefor.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: (1) This CCL entry controls only a subset of the items 
contained on the corresponding EU List number (e.g., 0B001.b). The items 
not included in this CCL entry are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110.) 
(2) Specially designed or prepared valves for gaseous diffusion 
separation process are also subject to the export licensing authority of 
the Nuclear Regulatory Commission. (See 10 CFR part 110.)
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




0B003  Plants for the production of uranium hexaflouride (UF6) and specially designed or prepared equipment (including UF6 purification 
          equipment), and specially designed parts and accessories 
          therefor.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value

[[Page 482]]

Related Controls: This entry does not control nuclear plants (i.e., fuel 
fabrication facilities, enrichment facilities, reprocessing facilities, 
and heavy water production facilities). Nuclear plants are subject to 
the export licensing authority of the Nuclear Regulatory Commission. 
(See 10 CFR part 110.)
Related Definitions: N/A
Items: a. Plants for the production of UF6;
    b. Equipment and components, as follows, specially designed or 
prepared for UF6 production:
    b.1. Fluorination and hydrofluorination screw and fluid bed reactors 
and flame towers;
    b.2. Distillation equipment for the purification of UF6.




0B008  Reactor and power plant simulators and analytical models for reactor and power plant simulators, models or mock-ups.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: Nuclear equipment is also subject to the export 
licensing authority of the Nuclear Regulatory Commission. (See 10 CFR 
part 110.)
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                              C. Materials



0C006  Nickel powder and porous nickel metal.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilogram
Related Controls: Nickel powders which are specially prepared for the 
manufacture of gaseous diffusion barriers are subject to the export 
licensing authority of the Nuclear Regulatory Commission. (See 10 CFR 
part 110.)
Related Definitions: N/A
Items: a. Powder with a nickel purity content of 99.0% or greater and a 
mean particle size of less than 10 micrometers measured by the American 
Society for Testing and Materials (ASTM) B 330 standard, except 
filamentary nickel powders;
    b. Porous nickel metal produced from materials controlled by 0C006.a 
except single porous nickel metal sheets not exceeding 1000 
cm2 per sheet.

    Note: 0C006.b controls porous metal formed by compacting and 
sintering the material controlled by 0C006.a to form a metal material 
with fine pores interconnected throughout the structure.

                               D. Software



0D001  ``Software'' specially designed or modified for the ``development'', ``production'' or ``use'' of items controlled by 0B001, 0B003, 0B008 or 0C006.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                              E. Technology



0E001  ``Technology'' according to the General Technology Note for the ``development'', ``production'' or ``use'' of items controlled by 0B001, 0B003, 0B008 or 
          0C006.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A

[[Page 483]]

Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



0E018  ``Technology'' for the ``development'', ``production'', or ``use'' of items controlled by 0A018.b through 0A018.e.

License Requirements

Reason for Control: NS, AT, UN

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
UN applies to entire entry................  Rwanda                      
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



0E984  ``Technology'' for the ``development'' or ``production'' of shotguns controlled by 0A984 and buckshot shotgun shells.

License Requirements

Reason for Control: CC, UN

                                                                        
                Control(s)                          Country Chart       
                                                                        
CC applies to ``technology'' for shotguns                               
 with a barrel length over 18 in. (45.72                                
 cm) but less than 24 in. (60.96 cm) and                                
 shotgun shells, regardless of end-user...  CC Column 1                 
CC applies to ``technology'' for shotguns                               
 with a barrel length over 24 in. (60.96                                
 cm), regardless of end-user..............  CC Column 2                 
CC applies to ``technology'' for shotguns                               
 with a barrel length over 24 in. (60.96                                
 cm) if for sale or resale to police or                                 
 law enforcement..........................  CC Column 3                 
UN applies to entire entry................  Rwanda                      
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

EAR99  Items subject to the EAR that are not elsewhere specified in this 
          CCL Category or in any other category in the CCL are 
          designated by the number EAR99.

    Category 1--Materials, Chemicals, ``Microorganisms,'' and Toxins

                 A. Equipment, Assemblies and Components



1A001  Components made from fluorinated compounds.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: a. Seals, gaskets, sealants or fuel bladders specially designed 
for aircraft or aerospace use made from more than 50% of any of the 
materials controlled by 1C009.b or .c;
    b. Piezoelectric polymers and copolymers made from vinylidene 
fluoride:
    b.1. In sheet or film form; and
    b.2. With a thickness exceeding 200 micrometer;
    c. Seals, gaskets, valve seats, bladders or diaphragms made from 
fluoroelastomers containing at least one vinylether monomer, specially 
designed for aircraft, aerospace or missile use.



1A002  ``Composite'' structures or laminates.

License Requirements

Reason for Control: NS, MT, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
MT applies to ``composite'' structures                                  
 that are specially designed for missile                                
 applications (including specially                                      
 designed subsystems and components)......  MT Column 1                 
NP applies to 1A002.b.....................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $1500
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definition: This entry does not control ``composite'' structures 
or laminates made from epoxy resin impregnated carbon ``fibrous or 
filamentary materials'' for the repair of aircraft structures of 
laminates,

[[Page 484]]

provided that the size does not exceed one square meter (1 
m2).
Items: a. Having an organic ``matrix'' and made from materials 
controlled by 1C010.c, .d or .e; or
    b. Having a metal or carbon ``matrix'' and made from:
    b.1. Carbon ``fibrous and filamentary materials'' with:
    b.1.a. A ``specific modulus'' exceeding 10.15 x 106 m; 
and
    b.1.b. A ``specific tensile strength'' exceeding 
17.7 x 104 m; or
    b.2. Materials controlled by 1C010.c.

    Technical Notes: 1. Specific modulus: Young's modulus in pascals, 
equivalent to N/m2 divided by specific weight in N/
m3, measured at a temperature of (2962) K 
((232)  deg.C) and a relative humidity of 
(505)%.
    2. Specific tensile strength: ultimate tensile strength in pascals, 
equivalent to N/m2 divided by specific weight in N/
m3, measured at a temperature of (2962) K 
((232)  deg.C) and a relative humidity of 
(505)%.



1A003  Manufactures of non-fluorinated polymeric substances controlled by 1C008.a, in film, sheet, tape or ribbon form.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $200
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: a. With a thickness exceeding 0.254 mm; or
    b. Coated or laminated with carbon, graphite, metals or magnetic 
substances.



1A102  Resaturated pyrolized carbon-carbon materials designed for systems controlled by 9A004.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $1500
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: (1) See 9A110 for controls on ``composite'' structures 
or laminates usable in missile systems. (2) The corresponding EU number 
contains a reference to 9A104. Items controlled by the EU under 9A104 
are subject to the export licensing authority of the U.S. Department of 
State, Office of Defense Trade Controls (see 22 CFR part 121).
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



1A202  ``Composite'' structures, other than those controlled by 1A002, in the form of tubes with an inside diameter of between 75 mm and 400 mm made with 
          ``fibrous or filamentary materials'' controlled by 1C010.a or 
          .b or 1C210.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1A225  Platinized catalysts specially designed or prepared for promoting the hydrogen isotope exchange reaction between hydrogen and water for the recovery of 
          tritium from heavy water or for the production of heavy water.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

[[Page 485]]




1A226  Specialized packings for use in separating heavy water from ordinary water and made of phosphor bronze mesh (chemically treated to improve wettability) 
          and designed for use in vacuum distillation towers.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1A227  High density (lead glass or other) radiation shielding windows greater than 0.09 m2 on cold area and with a density greater than 3 g/
          cm3 and a thickness of 100 mm or greater; and 
          specially designed frames therefor.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: Nuclear equipment is also subject to the export 
licensing authority of the Nuclear Regulatory Commission. (See 10 CFR 
part 110.)
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1A290  Depleted uranium (any uranium containing less than 0.711% of the isotope U-235) in shipments of more than 1,000 kilograms in the form of shielding 
          contained in X-ray units, radiographic exposure or teletherapy 
          devices, radioactive thermoelectric generators, or packaging 
          for the transportation of radioactive materials.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: (1) This entry does not control depleted uranium in 
fabricated forms for use in munitions. See 22 CFR part 121 for depleted 
uranium subject to the export licensing authority of the U.S. Department 
of State, Office of Defense Trade Controls. (2) All forms of depleted 
uranium not specifically described in this entry, or in the above note, 
are subject to the export licensing authority of the Nuclear Regulatory 
Commission. (See 10 CFR part 110.)
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1A984  Chemical agents, including tear gas formulation containing 1 percent or less of orthochlorobenzalmalononitrile (CS), or 1 percent or less of 
          chloroacetophenone (CN), except in individual containers with 
          a net weight of 20 grams or less; smoke bombs; non-irritant 
          smoke flares, canisters, grenades and charges; other 
          pyrotechnic articles having dual military and commercial use; 
          and fingerprinting powders, dyes and inks.

License Requirements

Reason for Control: CC

                                                                        
                Control(s)                          Country Chart       
                                                                        
CC applies to entire entry................  CC Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1A988   Bulletproof and bullet resistant vests.

License Requirements


[[Page 486]]


Reason for Control: UN
UN applies to entire entry. A license is required for items controlled 
by this entry to Cuba, Libya, North Korea and Rwanda. The Commerce 
Country Chart is not designed to determine licensing requirements for 
this entry. See part 746 of the EAR for additional information.

    Note: Exports from the U.S. and transhipments to Iran must be 
licensed by the Department of the Treasury, Office of Foreign Assets 
Control. (See Sec. 746.7 of the EAR for additional information on this 
requirement.)

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: Bulletproof and bullet resistant vests (body armor) 
are also subject to the export licensing authority of the U.S. 
Department of State, Office of Defense Trade Controls. (See 22 CFR 
121.1, Category X.)
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

              B. Test, Inspection and Production Equipment




1B001   Equipment for the ``production'' of fibers, prepregs, preforms or ``composites'' controlled by 1A002 or 1C010, and specially designed components and 
          accessories therefor.

License Requirements

Reason for Control: NS, MT, NP, AT

                                                                        
                Control(s)                          Country chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
MT applies to entire entry EXCEPT                                       
 1B001.d.4 and .f.........................  MT Column 1                 
NP applies to filament winding machines                                 
 described in 1B001.a that are capable of                               
 winding cylindrical rotors having a                                    
 diameter between 75 mm (3 in) and 400 mm                               
 (16 in) and lengths of 600 mm (24 in) or                               
 greater; AND coordinating and programming                              
 controls and precision mandrels for these                              
 filament winding machines................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A for 1B001.a; $5000 for all other items
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Filament winding machines of which the motions for 
positioning, wrapping and winding fibers are coordinated and programmed 
in three or more axes, specially designed for the manufacture of 
``composite'' structures or laminates from ``fibrous and filamentary 
materials'';
    b. Tape-laying or tow-placement machines of which the motions for 
positioning and laying tape, tows or sheets can be coordinated and 
programmed in two or more axes, specially designed for the manufacture 
of ``composite'' airframe or ``missile'' structures;
    c. Multi-directional, multidimensional weaving machines or 
interlacing machines, including adapters and modification kits, for 
weaving, interlacing or braiding fibers to manufacture ``composite'' 
structures, except textile machinery not modified for the above end-
uses;
    d. Equipment specially designed or adapted for the ``production'' of 
``fibrous or filamentary materials''; as follows:
    d.1. Equipment for converting polymeric fibers (such as 
polyacrylonitrile, rayon, pitch or polycarbosilane) into carbon fibers 
or silicon carbide fibers, including special equipment to strain the 
fiber during heating;
    d.2. Equipment for the chemical vapor deposition of elements or 
compounds on heated filamentary substrates to manufacture silicon 
carbide fibers;
    d.3. Equipment for the wet-spinning of refractory ceramics (such as 
aluminum oxide);
    d.4. Equipment for converting aluminum containing precursor fibers 
into alumina fibers by heat treatment;
    e. Equipment for producing prepregs controlled by 1C010.e by the hot 
melt method;
    f. Non-destructive inspection equipment capable of inspecting 
defects three dimensionally, using ultrasonic or X-ray tomography and 
specially designed for ``composite'' materials;




1B002   Systems and components therefor specially designed for producing metal alloys, metal alloy powder or alloyed materials controlled by 1C002.a.2, 1C002.b, 
          or 1C002.c.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A

[[Page 487]]

Items: The list of items controlled is contained in the ECCN heading.




1B003   Tools, dies, molds or fixtures, for ``superplastic forming'' or ``diffusion bonding'' titanium or aluminum or their alloys, specially designed for the 
          manufacture of equipment described in this entry.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; components in $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Airframe or aerospace structures;
    b. Aircraft or aerospace engines; or
    c. Specially designed components for those structures or engines.




1B018   Equipment on the International Munitions List.

License Requirements

Reason for Control: NS, MT, RS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
MT applies to equipment for the                                         
 ``production'' of rocket propellants.....  MT Column 1                 
RS applies to 1B018.a.....................  RS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000 for 1B018.a for countries WITHOUT an ``X'' in RS Column 2 on 
the Country Chart contained in Supplement No. 1 to part 738 of the EAR; 
$5000 for 1B018.b
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Equipment for the ``production'' of military explosives and 
solid propellants.
    a.1. Complete installations;
    a.2. Specialized components (for example, dehydration presses; 
extrusion presses for the extrusion of small arms, cannon and rocket 
propellants; cutting machines for the sizing of extruded propellants; 
sweetie barrels (tumblers) 6 feet and over in diameter and having over 
500 pounds product capacity; and continuous mixers for solid 
propellants); or
    a.3. Nitrators, continuous types; and
    a.4. Specially designed parts and accessories therefor.
    b. Environmental chambers capable of pressures below 
(10-4) Torr, and specially designed components therefor.




1B101   Equipment, other than that controlled by 1B001, for the production of structural composites and specially designed components and accessories thereof.

License Requirements

Reason for Control: MT, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
NP applies to 1B101.a only................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: Components and accessories controlled by this entry 
include moulds, mandrels, dies, fixtures and tooling for the preform 
processing, curing, casting, sintering or bonding of composite 
structures, laminates and manufactures thereof.
Items: a. Filament winding machines, of which the motions for 
positioning, wrapping and winding fibers can be coordinated and 
programmed in three or more axes, designed for the manufacture of 
``composite'' structures or laminates from ``fibrous or filamentary 
materials''.
    b. Tape-laying machines, of which the motions for positioning and 
laying tape or sheets can be coordinated and programmed in two or more 
axes, designed for the manufacture of ``composite'' airframe or 
``missile'' structures.
    c. Equipment designed or modified for the ``production'' of 
``fibrous or filamentary materials'', as follows:
    c.1. Equipment for converting polymeric fibers (such as 
polyacrylonitrile, rayon, or polycarbosilane) including special 
equipment to strain the fiber during heating;
    c.2. Equipment for the chemical vapor deposition of elements or 
compounds on heated filament substrates; and
    c.3. Equipment for the wet-spinning of refractory ceramics (such as 
aluminum oxide).
    d. Equipment designed or modified for special fiber surface 
treatment or for producing prepregs and preforms, not controlled by 
9A110.


[[Page 488]]


    Note: Equipment covered by 1B101.d includes but is not limited to 
rollers, tension stretchers, coating equipment, cutting equipment, and 
clicker dies.




1B115  Equipment for the ``production'', handling and acceptance testing of propellants or propellant constituents specified in 1C115.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; components in $ value
Related Controls: (1) For other equipment for ``production'', handling, 
mixing, curing, casting, pressing, machining, extruding or acceptance 
testing of solid propellants or propellant constituents, including but 
not limited to: equipment for the ``production'' of atomized or 
spherical metallic powder in a controlled environment; and fluid energy 
mills for grinding or milling ammonium perchlorate, RDX, or HMX; (2) 
Equipment for ``production'', handling, or acceptance testing of liquid 
propellants or propellant constituents; and (3) Specially designed 
components for the items described in 1B115.a is subject to the export 
licensing authority of the Department of State, Office of Defense Trade 
Controls. (See 22 CFR part 121.)
Related Definitions: N/A
Items: a. Batch mixers and continuous mixers, as follows, capable of 
mixing solid propellants or propellant constituents under vacuum in the 
range from 0 kPa to 13.326 kPa, and with temperature control capability 
of the mixing chamber:
    a.1. Batch mixers having:
    a.1.a. A total volumetric capacity of 110 liters (30 gallons) or 
more; and
    a.1.b. At least one mixing/kneading shaft mounted off center;
    a.2. Continuous mixers having:
    a.2.a. Two or more mixing/kneading shafts; and
    a.2.b. Capability to open the mixing chamber.




1B116  Specially designed nozzles for producing pyrolitically derived materials formed on a mold, mandrel or other substrate from precursor gases that decompose 
          in the 1573 K (1300  deg.C) to 3,173 K (2900  deg.C) 
          temperature range at pressures of 130 Pa to 20 kPa.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $1500
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1B201  Filament winding machines, other than those specified in 1B001 or 1B101, in which the motions for positioning, wrapping, and winding fibers are 
          coordinated and programmed in two or more axes, specially 
          designed to fabricate ``composite'' structures or laminates 
          from ``fibrous and filamentary materials'' and capable of 
          winding cylindrical rotors of diameters between 75 mm (3 in.) 
          and 400 mm (16 in.) and lengths of 600 mm (24 in.) or greater; 
          coordinating and programming controls therefor; and precision 
          mandrels therefor.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

[[Page 489]]



1B225  Electrolytic cells for fluorine production with a production capacity greater than 250 g of fluorine per hour.

License Requirements

Reason for Control: NS, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



1B226  Electromagnetic isotope separators designed for, or equipped with, single or multiple ion sources capable of providing a total ion beam current of 50 mA 
          or greater.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: Isotope separators specially designed or prepared for 
separating uranium isotopes are subject to the export licensing 
authority of the Nuclear Regulatory Commission. (See 10 CFR part 110.)
Related Definitions: This entry controls; (a) separators capable of 
enriching stable isotopes; and, (b) seperators with the ion sources and 
collectors both in the magnetic field and those configurations in which 
they are external to the field.
Items: The list of items controlled is contained in the ECCN heading.




1B227  Ammonia synthesis converters or ammonia synthesis units in which the synthesis gas (nitrogen and hydrogen) is withdrawn from an ammonia/hydrogen high-
          pressure exchange column and the synthesized ammonia is 
          returned to that column.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: N/A
Items: The list of items controlled is contained in the ECCN heading.




1B228  Hydrogen-cryogenic distillation columns having all of the following characteristics.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: Heavy water production equipment is also subject to 
the export licensing authority of the Nuclear Regulatory Commission. 
(See 10 CFR part 110.)
Related Definitions: N/A
Items: a. Designed to operate at internal temperatures of 35 K (-238 
deg.C) or less;
    b. Designed to operate at internal pressure of 0.5 to 5 Mpa (5 to 50 
atmospheres);
    c. Constructed of fine-grain stainless steels of the 300 series with 
low sulfur content or equivalent cryogenic and H2-compatible 
materials; and

    Note: Fine-grain stainless steels in this ECCN are defined to be 
fine-grain austenitic stainless steels with an ASTM (or equivalent 
standard) grain size number of 5 or greater.

    d. With internal diameters of 1 m or greater and effective lengths 
of 5 m or greater.




1B229  Water-hydrogen sulfide exchange tray columns constructed from fine carbon steel with a diameter of 1.8 m (6 ft) or greater that can operate at a nominal 
          pressure of 2 MPa (300 psi) or greater, and internal 
          contactors therefor.

License Requirements

Reason for Control: NP, AT

[[Page 490]]



                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: (1) This entry does not control columns specially 
designed or prepared for the production of heavy water controlled on the 
NSG Trigger List (INFCIRC/254/part 2). See 10 CFR part 110 for heavy 
water production equipment subject to the export licensing authority of 
the Nuclear Regulatory Commission.
Related Definition: (1) 1B229 includes internal contactors of the 
columns are segmented trays with an effective assembled diameter of 1.8 
m (6 ft.) or greater, are designed to facilitate countercurrent 
contacting and constructed of materials resistant to corrosion by 
hydrogen sulfide/water mixtures. These may be sieve trays, valve trays, 
bubble cap trays or turbogrid trays. (2) Fine carbon steel in this entry 
is defined to be steel with the austenitic ASTM (or equivalent standard) 
grain size number of 5 or greater. (3) Materials resistant to corrosion 
by hydrogen sulfide/water mixtures in this entry are defined to be 
stainless steels with a carbon content of 0.03% or less.
Items: The list of items controlled is contained in the ECCN heading.




1B230  Pumps circulating solutions of diluted or concentrated potassium amide catalyst in liquid ammonia (KNH2/NH3) having all of the 
          following characteristics.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: Heavy water production equipment is also subject to 
the export licensing authority of the Nuclear Regulatory Commission. 
(See 10 CFR part 110.)
Related Definitions: N/A
Items: a. Airtight (i.e., hermetically sealed);
    b. For concentrated potassium amide solutions (1% or greater), 
operating pressure of 1.5 to 60 MPa (15 to 600 atmospheres [atm]); or 
for dilute potassium amide solution (less than 1%), operating pressure 
of 20 to 60 MPa (200 to 600 atm); and
    c. A capacity greater than 8.5 m3/h (5 cubic feet per 
minute).




1B231  Tritium facilities, plants and equipment.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: This entry does not control tritium, tritium 
compounds, and mixtures containing tritium, or products or devices 
thereof. See 10 CFR part 110 for tritium subject to the export licensing 
authority of the Nuclear Regulatory Commission.
Related Definitions: N/A
Items: a. Facilities or plants for the production, recovery, extraction, 
concentration, or handling of tritium;
    b. Equipment for tritium facilities or plants, as follows:
    b.1. Hydrogen or helium refrigeration units capable of cooling to 23 
K (-250  deg.C) or less, with heat removal capacity greater than 150 
watts; or
    b.2. Hydrogen isotope storage and purification systems using metal 
hydrides as the storage, or purification medium.




1B232  Turboexpanders or turboexpander-compressor sets designed for operation below 35K and a throughput of hydrogen gas of 1000 kg/hr or greater.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.


[[Page 491]]



                              C. Materials




1C001  Materials specially designed for use as absorbers of electromagnetic waves, or intrinsically conductive polymers.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: a. Materials for absorbing frequencies exceeding 
2 x 108 Hz but less than 3 x 1012 Hz, except 
materials as follows:
    a.1. Hair type absorbers, constructed of natural or synthetic 
fibers, with non-magnetic loading to provide absorption;
    a.2. Absorbers having no magnetic loss and whose incident surface is 
non-planar in shape, including pyramids, cones, wedges and convoluted 
surfaces;
    a.3. Planar absorbers:
    a.3.a. Made from:
    a.3.a.1. Plastic foam materials (flexible or non-flexible) with 
carbon-loading, or organic materials, including binders, providing more 
than 5% echo compared with metal over a bandwidth exceeding 
15% of the center frequency of the incident energy, and not 
capable of withstanding temperatures exceeding 450 K (177  deg.C); or
    a.3.a.2. Ceramic materials providing more than 20% echo compared 
with metal over a bandwidth exceeding  15% of the center 
frequency of the incident energy, and not capable of withstanding 
temperatures exceeding 800 K (527  deg.C);

    Technical Note: Absorption test samples for 1C001.a.3.a should be a 
square at least 5 wavelengths of center frequency on a side and 
positioned in the far field of the radiating element.

    a.3.b. Tensile strength less than 7 x 106N/m2; 
and
    a.3.c. Compressive strength less than 14 x 106N/
m2;
    a.4. Planar absorbers made of sintered ferrite, with:
    a.4.a. A specific gravity exceeding 4.4; and
    a.4.b. A maximum operating temperature of 548 K (275  deg.C);

    Note: Nothing in 1C001.a releases magnetic materials to provide 
absorption when contained in paint.

    b. Materials for absorbing frequencies exceeding 
1.5 x 1014 Hz but less than 3.7 x 1014 Hz and not 
transparent to visible light;
    c. Intrinsically conductive polymeric materials with a bulk 
electrical conductivity exceeding 10,000 S/m (Siemens per meter) or a 
sheet (surface) resistivity of less than 100 ohms/square, based on any 
of the following polymers:
    c.1. Polyaniline;
    c.2. Polypyrrole;
    c.3. Polythiophene;
    c.4. Poly phenylene-vinylene;
    c.5. Poly thienylene-vinylene;

    Technical Note: Bulk electrical conductivity and sheet (surface) 
resistivity should be determined using ASTM D-257 or equivalents.




1C002  Metal alloys, metal alloy powder or alloyed materials.

License Requirements

Reason for Control: NS, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
NP applies to 1C002.a.2.c or a.2.d if they                              
 exceed the parameters stated in 1C202....  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definition: This entry does not control metal alloys, metal 
alloy powder or alloyed materials for coating substrates.
Items: a. Metal alloys, as follows:
    a.1. Nickel or titanium-based alloys in the form of aluminides, as 
follows, in crude or semi-fabricated forms:
    a.1.a. Nickel aluminides containing 10 weight percent or more 
aluminum;
    a.1.b. Titanium aluminides containing 12 weight percent or more 
aluminum;
    a.2. Metal alloys, as follows, made from metal alloy powder or 
particulate material controlled by 1C002.b:
    a.2.a. Nickel alloys with:
    a.2.a.1. A stress-rupture life of 10,000 hours or longer at 923 K 
(650  deg.C) and at a stress of 550 MPa; or
    a.2.a.2. A low cycle fatigue life of 10,000 cycles or more at 823 K 
(550  deg.C) at a maximum stress of 700 MPa;
    a.2.b. Niobium alloys with:
    a.2.b.1. A stress-rupture life of 10,000 hours or longer at 1,073 K 
(800  deg.C) and at a stress of 400 MPa; or
    a.2.b.2. A low cycle fatigue life of 10,000 cycles or more at 973 K 
(700  deg.C) at a maximum stress of 700 MPa;
    a.2.c. Titanium alloys with:
    a.2.c.1. A stress-rupture life of 10,000 hours or longer at 723 K 
(450  deg.C) and at a stress of 200 MPa; or

[[Page 492]]

    a.2.c.2. A low cycle fatigue life of 10,000 cycles or more at 723 K 
(450  deg.C) at a maximum stress of 400 MPa;
    a.2.d. Aluminum alloys with a tensile strength of:
    a.2.d.1. 240 MPa or more at 473 K (200  deg.C); or
    a.2.d.2. 415 MPa or more at 298 K (25  deg.C);
    a.2.e. Magnesium alloys with a tensile strength of 345 MPa or more 
and a corrosion rate of less than 1 mm/year in 3% sodium chloride 
aqueous solution measured in accordance with ASTM standard G-31 or 
equivalents;

    Technical Notes: 1. The metal alloys in 1C002.a are those containing 
a higher percentage by weight of the stated metal than of any other 
element.
    2. Stress-rupture life should be measured in accordance with ASTM 
standard E-139 or equivalents.
    3. Low cycle fatigue life should be measured in accordance with ASTM 
Standard E-606 `Recommended Practice for Constant-Amplitude Low-Cycle 
Fatigue Testing' or equivalents. Testing should be axial with an average 
stress ratio equal to 1 and a stress-concentration factor 
(Kt) equal to 1. The average stress is defined as maximum 
stress minus minimum stress divided by maximum stress.

    b. Metal alloy powder or particulate material for materials 
controlled by 1C002.a, as follows:
    b.1. Made from any of the following composition systems:

    Technical Note: X in the following equals one or more alloying 
elements.

    b.1.a. Nickel alloys (Ni-Al-X, Ni-X-Al) qualified for turbine engine 
parts or components, i.e. with less than 3 non-metallic particles 
(introduced during the manufacturing process) larger than 100 micrometer 
in 109 alloy particles;
    b.1.b. Niobium alloys (Nb-Al-X or Nb-X-Al, Nb-Si-X or Nb-X-Si, Nb-
Ti-X or Nb-X-Ti);
    b.1.c. Titanium alloys (Ti-Al-X or Ti-X-Al);
    b.1.d. Aluminum alloys (Al-Mg-X or Al-X-Mg, Al-Zn-X or Al-X-Zn, Al-
Fe-X or Al-X-Fe); or
    b.1.e. Magnesium alloys (Mg-Al-X or Mg-X-Al); and

    Technical Note: X equals one or more alloying elements.

    b.2. Made in a controlled environment by any of the following 
processes:
    b.2.a. ``Vacuum atomization'';
    b.2.b. ``Gas atomization'';
    b.2.c. ``Rotary atomization'';
    b.2.d. ``Splat quenching'';
    b.2.e. ``Melt spinning'' and ``comminution'';
    b.2.f. ``Melt extraction'' and ``comminution''; or
    b.2.g. ``Mechanical alloying'';
    c. Alloyed materials, in the form of uncomminuted flakes, ribbons or 
thin rods produced in a controlled environment by ``splat quenching,'' 
``melt spinning'' or ``melt extraction'', used in the manufacture of 
metal alloy powder or particulate material controlled by 1C002.b;




1C003  Magnetic metals, of all types and of whatever form, having any of the following characteristics.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled:
Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: a. Initial relative permeability 120,000 or more and thickness 
0.05 mm or less;

    Technical Note: Measurement of initial permeability must be 
performed on fully annealed materials.

    b. Magnetostrictive alloys with:
    b.1. A saturation magnetostriction of more than 5 x 10-4; 
or
    b.2. A magnetomechanical coupling factor (k) of more than 0.8; or
    c. Amorphous alloy strips with:
    c.1. A composition having a minimum of 75 weight percent of iron, 
cobalt or nickel; and
    c.2. A saturation magnetic induction (Bs) of 1.6 T or 
more, and:
    c.2.a. A strip thickness of 0.02 mm or less; or
    c.2.b. An electrical resistivity of 2 x 10-4 ohmcm or 
more.




1C004  Uranium titanium alloys or tungsten alloys with a ``matrix'' based on iron, nickel or copper.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: a. A density exceeding 17.5 g/cm3;
    b. An elastic limit exceeding 1,250 MPa;
    c. An ultimate tensile strength exceeding 1,270 MPa; and
    d. An elongation exceeding 8%.

[[Page 493]]




1C005  ``Superconductive'' ``composite'' conductors in lengths exceeding 100 m or with a mass exceeding 100 g.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions:
LVS: $1500
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: a. Multifilamentary ``superconductive'' ``composite'' conductors 
containing one or more niobium-titanium filaments:
    a.1. Embedded in a ``matrix'' other than a copper or copper based 
mixed ``matrix''; or
    a.2. With a cross-section area less than 
0.28 x 10-4mm2 (i.e., 6 micrometer in diameter for 
circular filaments);
    b. ``Superconductive'' ``composite'' conductors consisting of one or 
more ``superconductive'' filaments other than niobium-titanium:
    b.1. With a ``critical temperature'' at zero magnetic induction 
exceeding 9.85 K (-263.31  deg.C) but less than 24 K (-249.16  deg.C);
    b.2. With a cross-section of less than 
0.28 x 10-4mm2; and
    b.3. Which remain in the ``superconductive'' state at a temperature 
of 4.2 K (-268.96  deg.C) when exposed to a magnetic field corresponding 
to a magnetic induction of 12 T.




1C006  Fluids and lubricating materials.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Barrels (55 U.S. gallons/ 209 liters)
Related Controls: N/A
Related Definitions: N/A
Items: a. Hydraulic fluids containing, as their principal ingredients, 
any of the following compounds or materials:
    a.1. Synthetic hydrocarbon oils or silahydrocarbon oils with:
    a.1.a. A flash point exceeding 477 K (204  deg.C);
    a.1.b. A pour point at 239 K (-34  deg.C) or less;
    a.1.c. A viscosity index of 75 or more; and
    a.1.d. A thermal stability at 616 K (343  deg.C); or

    Note: For the purpose of 1C006.a.1, silahydrocarbon oils contain 
exclusively silicon, hydrogen and carbon.

    a.2. Chlorofluorocarbons with:
    a.2.a. No flash point;
    a.2.b. An autogenous ignition temperature exceeding 977 K (704 
deg.C);
    a.2.c. A pour point at 219 K (-54  deg.C) or less;
    a.2.d. A viscosity index of 80 or more; and
    a.2.e. A boiling point at 473 K (200  deg.C) or higher;

    Note: For the purpose of 1C006.a.2, chlorofluorocarbons contain 
exclusively carbon, fluorine and chlorine.

    b. Lubricating materials containing, as their principal ingredients, 
any of the following compounds or materials:
    b.1. Phenylene or alkylphenylene ethers or thio-ethers, or their 
mixtures, containing more than two ether or thio-ether functions or 
mixtures thereof; or
    b.2. Fluorinated silicone fluids with a kinematic viscosity of less 
than 5,000 mm2/s (5,000 centistokes) measured at 298 K (25 
deg.C);
    c. Damping or flotation fluids with a purity exceeding 99.8%, 
containing less than 25 particles of 200 micrometer or larger in size 
per 100 ml and made from at least 85% of any of the following compounds 
or materials:
    c.1. Dibromotetrafluoroethane;
    c.2. Polychlorotrifluoroethylene (oily and waxy modifications only); 
or
    c.3. Polybromotrifluoroethylene;

    Technical Note: For the purpose of 1C006:
    a. Flash point is determined using the Cleveland Open Cup Method 
described in ASTM D-92 or equivalents.
    b. Pour point is determined using the method described in ASTM D-97 
or equivalents.
    c. Viscosity index is determined using the method described in ASTM 
D-2270 or equivalents.
    d. Thermal stability is determined by the following test procedure 
or equivalents: Twenty ml of the fluid under test is placed in a 46 ml 
type 317 stainless steel chamber containing one each of 12.5 mm 
(nominal) diameter balls of M-10 tool steel, 52100 steel and naval 
bronze (60% Cu, 39% Zn, 0.75% Sn). The chamber is purged with nitrogen, 
sealed at atmospheric pressure and the temperature raised to and 
maintained at 6446 K (3716  deg.C) for six 
hours. The specimen will be considered thermally stable if, on 
completion of the above procedure, all of the following conditions are 
met:
    1. The loss in weight of each ball is less than 10 mg/mm2 
of ball surface;
    2. The change in original viscosity as determined at 311 K (38 
deg.C) is less than 25%; and
    3. The total acid or base number is less than 0.40.
    1e. Autogenous ignition temperature is determined using the method 
described in ASTM E-659 or equivalents.




1C007  Ceramic base materials, non-``composite'' ceramic materials, ceramic ``matrix'' ``composite'' materials and precursor materials.

License Requirements

Reason for Control: NS, MT, AT

[[Page 494]]



                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
MT applies to items described in 1C007.d                                
 (dielectric constant less than 6 at                                    
 frequencies from 100Hz to 10,000 MHZ) for                              
 use in missile radomes...................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000, except N/A for 1C007.e
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: a. Base materials of single or complex borides of titanium having 
total metallic impurities, excluding intentional additions, of less than 
5,000 ppm, an average particle size equal to or less than 5 micrometer 
and no more than 10% of the particles larger than 10 micrometer;
    b. Non-``composite'' ceramic materials in crude or semi-fabricated 
form, composed of borides of titanium with a density of 98% or more of 
the theoretical density, except abrasives;
    c. Ceramic-ceramic ``composite'' materials with a glass or oxide-
``matrix'' and reinforced with fibers from any of the following systems:
    c.1. Si-N;
    c.2. Si-C;
    c.3. Si-Al-O-N; or
    c.4. Si-O-N;
    d. Ceramic-ceramic ``composite'' materials, with or without a 
continuous metallic phase, containing finely dispersed particles or 
phases of any fibrous or whisker-like material, where carbides or 
nitrides of silicon, zirconium or boron form the ``matrix'';
    e. Precursor materials (i.e., special purpose polymeric or metallo-
organic materials) for producing any phase or phases of the materials 
controlled by 1C007.c, as follows:
    e.1. Polydiorganosilanes (for producing silicon carbide);
    e.2. Polysilazanes (for producing silicon nitride); or
    e.3. Polycarbosilazanes (for producing ceramics with silicon, carbon 
and nitrogen components).




1C008  Non-fluorinated polymeric substances.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $200
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: a.1. Bismaleimides;
    a.2. Aromatic polyamide-imides;
    a.3. Aromatic polyimides;
    a.4. Aromatic polyetherimides having a glass transition temperature 
(Tg) exceeding 503 K (230  deg.C) as measured by the wet 
method.

    Note: 1C008.a does not control non-fusible compression molding 
powders or molded forms.

    b. Thermoplastic liquid crystal copolymers having a heat distortion 
temperature exceeding 523 K (250  deg.C) measured according to ASTM D-
648, method A, or equivalents, with a load of 1.82 N/mm2 and 
composed of:
    b.1. Either of the following:
    b.1.a. Phenylene, biphenylene or naphthalene; or
    b.1.b. Methyl, tertiary-butyl or phenyl substituted phenylene, 
biphenylene or naphthalene; and
    b.2. Any of the following acids:
    b.2.a. Terephthalic acid;
    b.2.b. 6-hydroxy-2 naphthoic acid; or
    b.2.c. 4-hydroxybenzoic acid;
    c. Polyarylene ether ketones, as follows:
    c.1. Polyether ether ketone (PEEK);
    c.2. Polyether ketone ketone (PEKK);
    c.3. Polyether ketone (PEK);
    c.4. Polyether ketone ether ketone ketone (PEKEKK);
    d. Polyarylene ketones;
    e. Polyarylene sulphides, where the arylene group is biphenylene, 
triphenylene or combinations thereof;
    f. Polybiphenylenethersulphone.




1C009  Unprocessed fluorinated compounds.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: a. Copolymers of vinylidene fluoride having 75% or more beta 
crystalline structure without stretching;
    b. Fluorinated polyimides containing 30% or more of combined 
fluorine;

[[Page 495]]

    c. Fluorinated phosphazene elastomers containing 30% or more of 
combined fluorine.




1C010  ``Fibrous and filamentary materials'' that may be used in organic ``matrix'', metallic ``matrix'' or carbon ``matrix'' ``composite'' structures or 
          laminates.

License Requirements

Reason for Control: NS, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
NP applies to 1C010.a, .b, .c, and e.1....  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $1500, except for 1C010.a, .b, .c and e.1
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: a. Organic ``fibrous and filamentary materials'' (except 
polyethylene) with:
    a.1. A ``specific modulus'' exceeding 12.7 x 10\6\m; and
    a.2. A ``specific tensile strength'' exceeding 23.5 x 10\4\m;
    b. Carbon ``fibrous and filamentary materials'' with:
    b.1. A ``specific modulus'' exceeding 12.7 x 10\6\m; and
    b.2. A ``specific tensile strength'' exceeding 23.5 x 10\4\m;

    Technical Note: Properties for materials described in 1C010.b should 
be determined using Suppliers of Advance Composite Materials Association 
(SACMA) recommended methods SRM 12 to 17, or equivalent tow tests, such 
as Japanese Industrial Standard JIS-R-7601, Paragraph 6.6.2., and based 
on lot average.

    Note: 1C010.b does not control fabric made from ``fibrous or 
filamentary materials'' for the repair of aircraft structures or 
laminates, in which the size of individual sheets does not exceed 50 
cm x 90 cm.

    c. Inorganic ``fibrous or filamentary materials'' with:
    c.1. A ``specific modulus'' exceeding 2.54 x 106 m; and
    c.2. A melting, decomposition or sublimation point exceeding 1,922 K 
(1,649  deg.C) in an inert environment; except

    Note: 1C010.c does not control:
    1. Discontinuous, multiphase, polycrystalline alumina fibers in 
chopped fiber or random mat form, containing 3 weight percent or more 
silica, with a ``specific modulus'' of less than 10 x 10\6\ m;
    2. Molybdenum and molybdenum alloy fibers;
    3. Boron fibers;
    4. Discontinuous ceramic fibers with a melting, decomposition or 
sublimation point lower than 2,043 K (1,770  deg.C) in an inert 
environment.

    d. ``Fibrous or filamentary materials'':
    d.1. Composed of any of the following:
    d.1.a. Polyetherimides controlled by 1C008.a; or
    d.1.b. Materials controlled by 1C008.b, .c, .d, .e, or .f; or
    d.2. Composed of materials controlled by 1C010.d.1.a or .b and 
``commingled'' with other fibers controlled by 1C010.a, b, or c;
    e. Resin- or pitch-impregnated fibers (prepregs), metal or carbon-
coated fibers (preforms) or ``carbon fiber preforms'', as follows:
    e.1. Made from ``fibrous or filamentary materials'' controlled by 
1C010.a, .b, or .c; or
    e.2. Made from organic or carbon ``fibrous or filamentary 
materials'':
    e.2.a. With a ``specific tensile strength'' exceeding 17.7 x 10\4\m;
    e.2.b. With a ``specific modulus'' exceeding 10.15 x 10\6\m;
    e.2.c. Not controlled by 1C010.a or .b; and
    e.2.d. When impregnated with materials controlled by 1C008 or 
1C009.b, or with phenolic or epoxy resins, having a glass transition 
temperature (Tg) exceeding 383 K (110  deg.C).

    Note: 1C010.e does not control epoxy resin matrix impregnated carbon 
``fibrous or filamentary materials'' (prepregs) for the repair of 
aircraft structures or laminates, in which the size of individual sheets 
of prepreg does not exceed 50 cm x 90cm.




1C018  Materials on the International Munitions List.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: Yes for items listed in Advisory Note to 1C018
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: a. Ethyl and Methyl centralites.
    b. NN-Diphenylurea (unsymmetrical diphenylurea).
    c. Methyl-NN-diphenylurea (methyl unsymmetrical diphenylurea).
    d. Ethyl-NN-diphenylurea (ethyl unsymmetrical diphenylurea).
    e. Ethyl phenyl urethane.
    f. Diphenyl urethane.
    g. Diortho tolyl-urethane.
    h. 2-Nitrodiphenylamine.
    i. p-Nitromethylaniline.
    j. 2,2' Dinitropropanol.
    k. Bis(2,2' dinitropropyl) formal and acetal.
    l. 3-Nitraza-1,5 pentane diisocyanate.
    m. Guanidine nitrate.
    n. Hydrogen peroxide in concentrations of 85%.
    o. Charges specially designed for civilian applications, containing 
military explosives, except those items described in 1C992.


[[Page 496]]


    Technical Note: Military high explosives are solid, liquid or 
gaseous substances or mixtures of substances that, in their application 
as primary, booster, or main charges in warheads, demolition and other 
military applications, are required to detonate.

    Advisory Note: Licenses are likely to be approved for export and 
reexport to satisfactory end-users in Country Group D:1 of certain 
explosive substances and mixtures in reasonable quantities for civilian 
or industrial purposes when made into cartridges or charges of an 
exclusively civilian or industrial nature, such as propellants for 
sporting purposes or shooting gallery practice; cartridges for riveting 
guns; and explosive charges for agricultural purposes, public works, 
mines, quarries or oil-well drilling. The following are the substances 
or mixtures to which this procedure applies:
    a. Nitrate-based (40 percent or more) and provided they do not 
contain more than 40 percent nitroglycol/nitroglycerin or no more than 
16 percent TNT;
    b. Nitrocellulose with a nitrogen content of over 12.2 percent;
    c. Nitroglycerin;
    d. Single base nitrocellulose;
    e. Sodium azide and other inorganic azides.



1C101  Materials and devices for reduced observables such as radar reflectivity, ultraviolet/infrared signatures and acoustic signatures other than those 
          controlled by 1C001, usable in ``missiles'' and their 
          subsystems.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: Materials controlled by this entry include: (a) 
structural materials and coatings specially designed for reduced radar 
reflectivity; (b) coatings, including paints, specially designed for 
reduced or tailored reflectivity or emissivity in the microwave, 
infrared or ultraviolet spectra. This entry does not control coatings 
when specially used for the thermal control of satellites.
Items: The list of items controlled is contained in the ECCN heading.



1C107  Graphite and ceramic materials.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: a. Fine grain recrystallized bulk graphites (with a bulk density 
of at least 1.72 g/cm\3\ measured at 288 K (15  deg.C) and having a 
particle size of 100 micrometers or less), pyrolytic, or fibrous 
reinforced graphites usable for rocket nozzles and reentry vehicle nose 
tips; and
    b. Ceramic ``composite'' materials (dielectric constant less than 6 
at frequencies from 100 Hz to 10,000 MHz) for use in radomes, and bulk 
machinable silicon-carbide reinforced unfired ceramic, useable for nose 
tips.



1C115  Propellants and constituent chemicals for propellants.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: The following materials, whether or not encapsulated 
in aluminum, beryllium, magnesium, or zirconium are subject to the 
export licensing authority of the U.S. Department of State, Office of 
Defense Trade Controls: (See 22 CFR part 121, Category V): (a) Spherical 
aluminum powder with particles of uniform diameter 60 x 10-6 
m (60 micrometers) or less and an aluminum content of 97 percent or 
greater; (b) Metal fuels in particle sizes less than 
60 x 10-6m (60 microns), whether spherical, atomized, 
spheroidal, flaked or ground, manufactured from material consisting of 
99 percent or more of: Boron; magnesium; zirconium; alloys of boron, 
magnesium or zirconium; beryllium; or iron powder with average particle 
size of 3 x 10-6 m (3 microns) or less produced by hydrogen 
reduction of iron oxide.
Related Definitions: N/A
Items: a. Fuel substances:
    a.1. Spherical aluminum powder, as follows:
    a.1.a. Spherical aluminum powder with particles of uniform diameter 
less than 500 x 10-6 m (500 micrometers), but greater than 
60 x 10-6 m (60 micrometers), and an aluminum content of 97 
percent by weight or greater;

[[Page 497]]

    a.1.b. Spherical aluminum powder with particles of uniform diameter 
60 x 10-6 m (60 micrometers) or less, and an aluminum content 
of 97 percent by weight or greater, but less than 99 percent;
    a.2. Metal fuels containing beryllium, boron, magnesium, zirconium, 
or alloys of boron, magnesium, or zirconium, as follows:
    a.2.a. Metal fuels in particle sizes less than 500 x 10-6 
m (500 microns), but equal to or greater than 60 x 10-6 m (60 
microns), whether spherical, atomized, spheroidal, flaked or ground, 
consisting of 97 percent by weight or more of beryllium, boron, 
magnesium, zirconium, and alloys of boron, magnesium, or zirconium;
    a.2.b. Metal fuels in particle sizes less than 60 x 10-6 
m (60 microns), whether spherical, atomized, spheroidal, flaked or 
ground, consisting of 97 percent by weight or more, but less than 99 
percent, of beryllium, boron, magnesium, zirconium, and alloys of boron, 
magnesium, or zirconium;
    a.3. Metal fuels in particle sizes less than 500 x 10-6 m 
(500 microns), whether spherical, atomized, spheroidal, flaked or 
ground, consisting of 97 percent by weight or more of alloys of 
beryllium.
    a.4. Liquid oxidizer substances:
    a.4.a. Dinitrogen trioxide;
    a.4.b. Nitrogen dioxide/dinitrogen tetroxide;
    a.4.c. Dinitrogen pentoxide;
    b. Polymeric substances:
    b.1. Carboxy-terminated polybutadiene (CTPB);
    b.2. Commercial grade Hydroxy-terminated polybutadiene (HTPB);

    Note: Military grade (i.e., Hydroxy-terminated polybutadiene (HTPB) 
with a hydroxyl functionality greater than or equal to 2.2 but less than 
or equal to 2.4, a hydroxyl value of less than 0.77 meq/g, and a 
viscosity at 30  deg.C of less than 47 poise) is controlled by the 
Office of Defense Trade Controls, U.S. Department of State (see Category 
V of the USML (22 CFR part 121)).

    b.3. Polybutadiene-acrylic acid (PBAA);
    b.4. Polybutadiene-acrylic acid-acrylonitrile (PBAN).
    c. Other propellant additives and agents:
    c.1. Burning rate modifiers as follows: Butacene;
    c.2. Nitrate esters and nitrated plasticizers as follows:
    c.2.a. Triethylene glycol dinitrate (TEGDN);
    c.2.b. Trimethylolethane trinitrate (TMETN);
    c.2.c. Diethylene glycol dinitrate (DEGDN);
    c.3. Stabilizers, as follows: 2-nitrodiphenylamine.




1C116  Maraging steels (steels generally characterized by high nickel, very low carbon content and the use of substitutional elements or precipitates to produce 
          age-hardening), other than those controlled by 1C216, having 
          an Ultimate Tensile Strength of 1500 MPa or greater measured 
          at 293 K (20  deg.C), in the form of sheet, plate, or tubing 
          with a wall or plate thickness equal to or less than 5.0mm 
          (0.2 inch).

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1C117  Tungsten, molybdenum, and alloys of these metals in the form of uniform spherical or atomized particles of 500 micrometer diameter or less with a purity 
          of 97% or higher for fabrication of rocket motor components; 
          i.e., heat shields, nozzle substrates, nozzle throats, and 
          thrust vector control surfaces.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

[[Page 498]]




1C202  Aluminum and titanium alloys in the form of tubes or cylindrical solid forms (including forgings) with an outside diameter of more than 75 mm (3 inches).

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls:
Related Definition: The phrase ``alloys capable of'' encompasses before 
and after heat treatment.
Items: a. Aluminum alloys capable of an ultimate tensile strength of 460 
MPa (.46 x 109 N/m2) or more at 293 K (20  deg.C);
    b. Titanium alloys capable of an ultimate tensile strength of 900 
MPa (0.9 x 109 N/m2) (130,500 lbs./in\2\) or more 
at 293 K (20  deg.C).




1C210  ``Fibrous and filamentary materials'' not controlled by 1C010.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: See 9A110 for fiber prepregs.
Related Definitions: For the purpose of this entry, the term ``fibrous 
or filamentary materials'' means continuous monofilaments, yarns, 
rovings, tows or tapes.
    Defintions for other terms used in this entry:
Filament or Monofilament is the smallest increment of fiber, usually 
several m in diameter.
Strand is a bundle of filaments (typically over 200) arranged 
approximately parallel.
Roving is a bundle (typically 12-120) of approximately parallel strands.
Yarn is a bundle of twisted strands.
Tow is a bundle of filaments, usually approximately parallel.
Tape is a material constructed of interlaced or unidirectional 
filaments, strands, rovings, tows or yarns, etc., usually preimpregnated 
with resin.
Specific modulus is the Young's modulus in N/m\2\ divided by the 
specific weight in N/m\3\, measured at a temperature of 232 
deg.C and a relative humidity of 505 percent.
Specific tensile strength is the ultimate tensile strength in N/m\2\ 
divided by specific weight in N/m\3\, measured at a temperature of 
232  deg.C and a relative humidity of 505 
percent.
Items: a. Carbon and aramid ``fibrous and filamentary materials'' 
having:
    a.1. A ``specific modulus'' of 12.7 x 10\6\ m or greater; or
    a.2. A ``specific tensile strength'' of 23.5 x 10\4\ m or greater; 
or

    Note: 1C210.a does not include aramid ``fibrous or filamentary 
materials'' having 0.25 percent or more by weight of an ester based 
fiber surface modifier.

    b. Glass ``fibrous and filamentary materials'' having:
    b.1. A ``specific modulus'' of 3.18 x 10\6\ m or greater; and
    b.2. A ``specific tensile strength'' of 7.62 x 10\4\ m or greater; 
or
    c. Thermoset resin impregnated continuous yarns, rovings, tows or 
tapes with a width no greater than 15 mm (prepregs), made from carbon or 
glass ``fibrous or filamentary materials'' described in 1C210.a or .b;

    Note: The resin forms the matrix of the composite.




1C216  Maraging steel capable of an ultimate tensile strength of 2050 MPa (2.050 x 109 N/m2) (300,000 lbs./in\2\) or more at 293 K (20 
          deg.C), except forms in which no linear dimension exceeds 75 
          mm (3 inches).

License Requirements

Reason for Control: NP, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
MT applies to maraging steels controlled                                
 by this entry that also meet the                                       
 specifications of 1C116..................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: The phrase ``maraging steel capable of'' encompasses 
maraging steel before or after heat treatment.
Items: The list of items controlled is contained in the ECCN heading.

[[Page 499]]




1C225  Boron and boron compounds, mixtures, and loaded materials in which the boron-10 isotope is more than 20% by weight of the total boron content.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1C226  Parts made of tungsten, tungsten carbide, or tungsten alloys (greater than 90% tungsten) having a mass greater than 20 kg and a hollow cylindrical 
          symmetry (including cylinder segments) with an inside diameter 
          greater than 100 mm (4 in.), but less than 300 mm (12 in.), 
          except parts specially designed for use as weights or gamma-
          ray collimators.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1C227  Calcium (high purity) containing both less than 1,000 parts per million by weight of metallic impurities other than magnesium and less than 10 parts per 
          million of boron.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1C228  Magnesium (high purity) containing both less than 200 parts per million by weight of metallic impurities other than calcium and less than 10 parts per 
          million of boron.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



1C229  High purity (99.99% or greater) bismuth with very low silver content (less than 10 parts per million).

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



1C230  Beryllium.

License Requirements

Reason for Control: NP, AT

[[Page 500]]



                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: This entry does not control: (a) Metal windows for 
X-ray machines, or for bore-hole logging devices; (b) Oxide shapes in 
fabricated or semi-fabricated forms specially designed for electronic 
component parts or as substrates for electronic circuits; and, (c) Beryl 
(silicate of beryllium and aluminum) in the form of emeralds or 
aquamarines.
Items: a. Beryllium metal;
    b. Alloys containing more than 50% beryllium by weight;
    c. Beryllium compounds;
    d. Manufactures of beryllium metal, alloys, or compounds described 
in 1C230.a, .b, or .c; or
    e. Waste and scrap from beryllium metal, alloys, compounds, or 
manufactures thereof described in 1C230.a, .b, .c or .d.



1C231  Hafnium.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: a. Hafnium metal;
    b. Alloys and compounds of hafnium containing more than 60 percent 
hafnium by weight; or
    c. Manufactures of hafnium metal, alloys, or compounds described in 
1C231.a or .b.



1C232  Helium-3 or helium isotopically enriched in the helium-3 isotope, mixtures containing helium-3, and products or devices containing any of the foregoing, 
          except; a product or device containing less than 1g of helium-
          3.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Liters
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



1C233  Lithium.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies entire entry...................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: a. Lithium enriched in the 6 isotope (6Li) to greater 
than 7.5 atom percent, alloys, compounds or mixtures containing lithium 
enriched in the 6 isotope, and products or devices containing any of the 
foregoing; except thermoluminescent dosimeters.

    Note: The natural occurrence of the 6 isotope in lithium is 7.5 atom 
percent.

    b. [Reserved]



1C234  Zirconium, with a hafnium content of less than 1 part hafnium to 500 parts zirconium by weight.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: Zirconium metal and alloys in the form of tubes or 
assemblies of tubes, specially designed or prepared for use in a reactor 
are subject to the export licensing authority of the Nuclear Regulatory 
Commission. (See 10 CFR part 110.)

[[Page 501]]

This entry does not control zirconium in the form of foil or strip 
having a thickness not exceeding 0.10 mm (0.004 in.).
Items: a. Zirconium metal;
    b. Alloys containing more than 50% zirconium by weight;
    c. Compounds;
    d. Manufactures of zirconium metal, alloys, or compounds described 
in 1C234.a, .b, or .c; or
    e. Waste and scrap from zirconium metal, alloys, compounds, or 
manufactures thereof controlled by 1C234.a, .b, .c, or .d;

    Advisory Note: (Not eligible for License Exception GBS) Licenses are 
likely to be approved for export and reexport to satisfactory end-users 
in Country Group D:1 of the following:
    a. Finished parts made of zirconium metal or alloys, specially 
designed for an identified civil research or power reactor facility, 
provided that:
    a.1. None of the parts contains fissile materials; and
    a.2. The importing country has agreed to the application of the 
Safeguards of the International Atomic Energy Agency (IAEA) in 
connection with the nuclear reactor facility;
    b. Contained zirconium metal, or parts made therefrom, in individual 
shipments not exceeding 100 kg, when intended for use in, or in support 
of, an identified civil research or power reactor facility, in 
connection with which it is contemplated that IAEA Safeguards would be 
applied.

    N.B.: The provisions of this Advisory Note notwithstanding, current 
law prohibits approval to nuclear production or utilization facilities 
in the People's Republic of China.




1C236  Alpha-emitting radionuclides having an alpha half-life of 10 days or greater, but less than 200 years, including compounds and mixtures containing these 
          radionuclides with a total alpha activity of 1 curie per 
          kilogram (37 GBq) or greater; except devices containing less 
          than 3.7 GBq (100 millicuries) of alpha activity per device.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Millicuries
Related Controls: Alpha emitting radionuclides are subject to the export 
licensing authority of the Nuclear Regulatory Commission. (See 10 CFR 
part 110.)
Related Definition: N/A
Items: The list of items controlled is contained in the ECCN heading.




1C237  Radium-226, radium-226 compounds, or mixtures containing radium-226, and products or devices containing any of the foregoing; except medical applicators, 
          or a product or device containing not more than 0.37 GBq (10 
          millicuries) of radium-226 in any form.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: N/A
Items: The list of items controlled is contained in the ECCN heading.



1C238  Chlorine trifluoride (C1F3).

License Requirements

    Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



1C350  Chemicals, that may be used as precursors for toxic chemical agents.

License Requirements

Reason for Control: CB, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
CB applies to entire entry................  CB Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Requirement Notes: 1. Sample Shipments: Certain sample shipments 
of chemicals controlled under ECCN 1C350 may be made without a license, 
as provided by the following:
    a. Chemicals Not Eligible: The following chemicals are not eligible 
for sample shipments: 0-Ethyl-2-diisopropylaminoethyl methylphosphonite 
(QL) (C.A.S. #57856-11-8),

[[Page 502]]

Ethylphosphonyl difluoride (C.A.S. #753-98-0), and Methylphosphonyl 
difluoride (C.A.S. #676-99-3).
    b. Countries Not Eligible: The following countries are not eligible 
to receive sample shipments: Cuba, Iran, Libya, North Korea, Sudan, 
Syria.
    c. Sample Shipments: A license is not required for sample shipments 
when the cumulative total of these shipments does not exceed a 55-gallon 
container or 200 kg of each chemical to any one consignee per calendar 
year. Multiple sample shipments, in any quantity, not exceeding the 
totals indicated in this paragraph may be exported without a license, in 
accordance with the provisions of this Note 1.
    d. The exporter is required to submit a quarterly written report for 
shipments of samples made under this Note 1. The report must be on 
company letterhead stationery (titled ``Report of Sample Shipments of 
Chemical Precursors'' at the top of the first page) and identify the 
chemical(s), Chemical Abstract Service Registry (C.A.S.) number(s), 
quantity(ies), the ultimate consignee's name and address, and the date 
exported. The report must be sent to the U.S. Department of Commerce, 
Bureau of Export Administration, Room 2705, Washington, DC 20230, Attn: 
``Report of Sample Shipments of Chemical Precursors''.
    2. Mixtures: Mixtures controlled by this entry that contain certain 
concentrations of precursor and intermediate chemicals are subject to 
the following licensing requirements:
    a. A license is required, regardless of the concentrations in the 
mixture, for the following chemicals: 0-Ethyl-2-diisopropylaminoethyl 
methylphosphonite (QL) (C.A.S.#57856-11-8), Ethylphosphonyl difluoride 
(C.A.S.#753-98-0) and Methylphosphonyl difluoride (C.A.S.#676-99-3);
    b. A license is required when at least one of the following 
chemicals constitutes more than 10 percent of the weight of the mixture 
on a solvent free basis: Arsenic trichloride (C.A.S.#7784-34-1), 
Benzilic acid (C.A.S.#76-93-7), Diethyl ethylphosphonate (C.A.S.#78-38-
6), Diethyl methylphosphonite (C.A.S.#15715-41-0), Diethyl-N,N-
dimethylphosphoroamidate (C.A.S.#2404-03-7), N,N-Diisopropyl-beta-
aminoethane thiol (C.A.S.#5842-07-9), N,N-Diisopropyl-2-aminoethyl 
chloride hydrochloride (C.A.S.#4261-68-1), N,N-Diisopropyl-beta-
aminoethanol (C.A.S.#96-80-0), N,N-Diisopropyl-beta-aminoethyl chloride 
(C.A.S.#96-79-7), Dimethyl ethylphosphonate (C.A.S.#6163-75-3), Dimethyl 
methylphosphonate (C.A.S.#756-79-6), Ethylphosphonous dichloride 
[Ethylphosphinyl dichloride] (C.A.S.#1498-40-4), Ethylphosphonus 
difluoride [Ethylphosphinyl difluoride] (C.A.S.#430-78-4), 
Ethylphosphonyl dichloride (C.A.S.#1066-50-8), Methylphosphonous 
dichloride [Methylphosphinyl dicloride] (C.A.S.#676-83-5), 
Methylphosphonous difluoride [Methylphosphinyl difluoride] (C.A.S.#753-
59-3), Methylphosphonyl dichloride (C.A.S.#676-97-1), Pinacolyl alcohol 
(C.A.S.#464-07-3), 3-Quinuclidinol (C.A.S.#1619-34-7), and Thiodiglycol 
(C.A.S.#111-48-8); (Related ECCN: 1C995)
    c. A license is required when at least one of all other chemicals in 
the List of Items Controlled constitutes more than 25 percent of the 
weight of the mixture on a solvent free basis (related ECCN: 1C995); and
    d. A license is not required under this entry for mixtures when the 
controlled chemical is a normal ingredient in consumer goods packaged 
for retail sale for personal use. Such consumer goods are controlled by 
ECCN EAR99.
    e. Calculation of concentrations of AG-controlled chemicals.
    1. Usual Commercial Purposes. In calculating the percentage of an AG 
controlled chemical in a mixture (solution), any other chemical must be 
excluded if it was not added for usual commercial purposes, but was 
added for the sole purpose of circumventing the Export Administration 
Regulations.
    2. ``Solvent Free Basis Requirement.'' When calculating the 
percentage, by weight, of components in a chemical mixture, you must 
exclude from the calculation any component of the mixture that acts as a 
solvent.
    3. Solvent--For purposes of this ECCN ``A substance capable of 
dissolving another substance to form a uniformly dispersed mixture 
(solution)''.
     Solvents are liquids at standard temperature and pressure 
(STP).
     In no instance is an AG controlled chemical considered a 
``solvent''.
     All ingredients of mixtures are expressed in terms of 
weight.
     The solvent component of the mixture converts it into a 
solution.
    3. Compounds: A license is not required under this entry for 
chemical compounds created with any chemicals identified in this ECCN 
1C350, unless those compounds are also identified in this entry.
    4. Special Comprehensive License: See part 752 of the EAR for 
eligibility.

    Technical Notes: 1. For purposes of this entry, a ``mixture'' is 
defined as a solid, liquid or gaseous product made up of two or more 
components that do not react together under normal storage conditions.
    2. The scope of this control applicable to Hydrogen Fluoride (Item 
25 in List of Items Controlled) includes its liquid, gaseous, and 
aqueous phases, and hydrates.
    3. All de minimis exclusions of this entry extend to all mixtures 
including those that contain no solvents.
    4. A Solvent is defined as a substance capable of dissolving another 
substance to form a uniformly

[[Page 503]]

dispersed mixture (solution). For examples and clarification of the term 
``solvent free'' basis, see Supplement No. 3 to part 774 of the EAR.

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Liters or kilograms, as appropriate
Related Controls: N/A
Related Definition: See part 770.2(k) of the EAR for synonyms for the 
chemicals listed in this entry.
Items: a. Precursor Chemicals, as follows:
    a.1. (C.A.S. #1341-49-7) Ammonium hydrogen fluoride;
    a.2. (C.A.S. #7784-34-1) Arsenic trichloride;
    a.3. (C.A.S. #76-93-7) Benzilic acid;
    a.4. (C.A.S. #107-07-3) 2-Chloroethanol;
    a.5. (C.A.S. #78-38-6) Diethyl ethylphosphonate;
    a.6. (C.A.S. #15715-41-0) Diethyl methylphosphonite;
    a.7. (C.A.S. #2404-03-7) Diethyl-N,N-dimethylphosphoroamidate;
    a.8. (C.A.S. #762-04-9) Diethyl phosphite;
    a.9. (C.A.S. #100-37-8) N,N-Diethylethanolamine;
    a.10. (C.A.S. #5842-07-9) N,N-Diisopropyl-.beta.-aminoethanethiol;
    a.11. (C.A.S. #4261-68-1) N,N-Diisopropyl-.2.-aminoethyl chloride 
hydrochloride;
    a.12. (C.A.S. #96-80-0) N,N-Diisopropyl-.beta.-aminoethanol;
    a.13. (C.A.S. #96-79-7), N,N-Diisopropyl-.beta.-aminoethyl chloride;
    a.14. (C.A.S. #108-18-9) Diisopropylamine;
    a.15. (C.A.S. #6163-75-3) Dimethyl ethylphosphonate;
    a.16. (C.A.S. #756-79-6) Dimethyl methylphosphonate;
    a.17. (C.A.S. #868-85-9) Dimethyl phosphite (dimethyl hyrogen 
phosphite);
    a.18. (C.A.S. #124-40-3) Dimethylamine;
    a.19. (C.A.S. #506-59-2) Dimethylamine hydrochloride;
    a.20. (C.A.S. #57856-11-8) 0-Ethyl-2-diisopropylaminoethyl 
methylphosphonite (QL);
    a.21. (C.A.S. #1498-40-4) Ethylphosphonous dichloride 
[Ethylphosphinyl dichloride];/c
    a.22. (C.A.S. #430-78-4) Ethylphosphonus difluoride [Ethylphosphinyl 
difluoride];
    a.23. (C.A.S. #1066-50-8) Ethylphosphonyl dichloride;
    a.24. (C.A.S. #753-98-0) Ethylphosphonyl difluoride;
    a.25. (C.A.S. #7664-39-3) Hydrogen fluoride;
    a.26. (C.A.S. #3554-74-3) 3-Hydroxyl-1-methylpiperidine;
    a.27. (C.A.S. #76-89-1) Methyl benzilate;
    a.28. (C.A.S. #676-83-5) Methylphosphonous dichloride 
[Methylphosphinyl dicloride];
    a.29. (C.A.S. #753-59-3) Methylphosphonous difluoride 
[Methylphosphinyl difluoride];
    a.30. (C.A.S. #676-97-1) Methylphosphonyl dichloride;
    a.31. (C.A.S. #676-99-3) Methylphosphonyl difluoride;
    a.32. (C.A.S. #10025-87-3) Phosphorus oxychloride;
    a.33. (C.A.S. #10026-13-8) Phosphorus pentachloride;
    a.34. (C.A.S. #1314-80-3) Phosphorus pentasulfide;
    a.35. (C.A.S. #7719-12-2) Phosphorus trichloride;
    a.36. (C.A.S. #75-97-8) Pinacolone;
    a.37. (C.A.S. #464-07-3) Pinacolyl alcohol;
    a.38. (C.A.S. #151-50-8) Potassium cyanide;
    a.39. (C.A.S. #7789-23-3) Potassium fluoride;
    a.40. (C.A.S. #7789-29-9) Potassium hydrogen fluoride;
    a.41. (C.A.S. #1619-34-7) 3-Quinuclidinol;
    a.42. (C.A.S. #3731-38-2) 3-Quinuclidinone;
    a.43. (C.A.S. #1333-83-1) Sodium bifluoride;
    a.44. (C.A.S. #143-33-9) Sodium cyanide;
    a.45. (C.A.S. #7681-49-4) Sodium fluoride;
    a.46. (C.A.S. #1313-82-2) Sodium sulfide;
    a.47. (C.A.S. #10025-67-9) Sulfur monochloride;
    a.48. (C.A.S. #10545-99-0) Sulfur dichloride;
    a.49. (C.A.S. #111-48-8) Thiodiglycol;
    a.50. (C.A.S. #7719-09-7) Thionyl chloride;
    a.51. (C.A.S. #102-71-6) Triethanolamine;
    a.52. (C.A.S. #637-39-8) Triethanolamine hydrochloride;
    a.53. (C.A.S. #122-52-1) Triethyl phosphite; and
    a.54. (C.A.S. #121-45-9) Trimethyl phosphite.
    b. Reserved.



1C351  Human pathogens, zoonoses, and ``toxins''.

License Requirements

Reason for Control: CB, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
 CB applies to entire entry...............  CB Column 1                 
 AT applies to entire entry...............  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: All vaccines and ``immunotoxins'' are excluded from 
the scope of this entry. See ECCN 1C996.
Related Definition: (1) For the purposes of this entry ``immunotoxin'' 
is defined as an antibody-toxin conjugate intended to destroy specific 
target cells (e.g., tumor cells) that bear antigens homologous to the 
antibody. (2) For the purposes of this entry ``subunit'' is defined as a 
portion of the ``toxin''.
Items: a. Viruses, as follows:
    a.1. Chikungunya virus
    a.2. Congo-Crimean haemorrhagic fever virus;

[[Page 504]]

    a.3. Dengue fever virus;
    a.4. Eastern equine encephalitis virus;
    a.5. Ebola virus;
    a.6. Hantaan virus;
    a.7. Japanese encephalitis virus;
    a.8. Junin virus;
    a.9. Lassa fever virus
    a.10. Lymphocytic choriomeningitis virus;
    a.11. Machupo virus;
    a.12. Marburg virus;
    a.13. Monkey pox virus;
    a.14. Rift Valley fever virus;
    a.15. Tick-borne encephalitis virus (Russian Spring-Summer 
encephalitis virus);
    a.16. Variola virus;
    a.17. Venezuelan equine encephalitis virus;
    a.18. Western equine encephalitis virus;
    a.19. White pox; or
    a.20. Yellow fever virus.
    b. Rickettsiae, as follows:
    b.1. Bartonella quintana (Rochalimea quintana, Rickettsia quintana);
    b.2. Coxiella burnetii;
    b.3. Rickettsia prowasecki; or
    b.4. Rickettsia rickettsii.
    c. Bacteria, as follows:
    c.1. Bacillus anthracis;
    c.2. Brucella abortus;
    c.3. Brucella melitensis;
    c.4. Brucella suis;
    c.5. Burkholderia mallei (Pseudomonas mallei);
    c.6. Burkholderia pseudomallei (Pseudomonas pseudomallei);
    c.7. Chlamydia psittaci;
    c.8. Clostridium botulinum;
    c.9. Francisella tularensis;
    c.10. Salmonella typhi;
    c.11. Shigella dysenteriae;
    c.12. Vibrio cholerae;
    c.13. Yersinia pestis.
    d. ``Toxins'', as follows: and subunits thereof:
    d.1. Botulinum toxins;
    d.2. Clostridium perfringens toxins;
    d.3. Conotoxin;
    d.4. Microcystin (cyanogenosin);
    d.5. Ricin;
    d.6. Saxitoxin;
    d.7. Shiga toxin;
    d.8. Staphylococcus aureus toxins;
    d.9. Tetrodotoxin; or
    d.10. Verotoxin.



1C352  Animal pathogens.

License Requirements

Reason for Control: CB, AT

                                                                        
                Control(s)                          Country chart       
                                                                        
CB applies to entire entry................  CB Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

 Unit: $ value
Related Controls: All vaccines are excluded from the scope of this 
entry. See ECCN 1C996.
Related Definition: N/A
Items: a. Viruses, as follows:
    a.1. African swine fever virus;
    a.2. Avian influenza virus that are;
    a.2.a. Defined in EC Directive 92/40/EC as having high 
pathogenicity, as follows:
    a.2.a.1. Type A viruses with an IVPI (intravenous pathogenicity 
index) in 6 week old chickens of greater than 1.2; or
    a.2.a.2. Type A viruses H5 or H7 subtype for which nucleotide 
sequencing has demonstrated multiple basic amino acids at the cleavage 
site of haemegglutinin.
    a.2.b. Reserved.
    a.3. Bluetongue virus;
    a.4. Foot and mouth disease virus;
    a.5. Goat pox virus;
    a.6. Herpes virus (Aujeszky's disease);
    a.7. Hog cholera virus;
    a.8. Lyssa virus;
    a.9. Newcastle disease virus
    a.10. Peste des petits ruminants virus;
    a.11. Porcine enterovirus type 9;
    a.12. Rinderpest virus;
    a.13. Sheep pox virus;
    a.14. Teschen disease virus;
    a.15. Vesicular stomatitis virus; and
    b. Bacteria, as follows:
    b.1. Mycoplasma mycoides;
    b.2. Reserved.



1C353  Genetically modified ``microorganisms''.

License Requirements

Reason for Control: CB, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
CB applies to entire entry................  CB Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: All vacines are excluded from the scope of this entry. 
See ECCN 1C996.
Related Definition: N/A
Items: a. Genetically modified ``microorganisms'' or genetic elements 
that contain nucleic acid sequences associated with pathogenicity 
derived from organisms identified in ECCNs 1C351.a to .c, 1C352, or 
1C354.
    b. Genetically modified ``microorganisms'' or genetic elements that 
contain nucleic acid sequences coding for any of the ``toxins'', or 
their subunits, controlled by 1C351.,d

[[Page 505]]



1C354  Plant pathogens.

License Requirements

Reason for Control: CB, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
CB applies to entire entry................  CB Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: All vaccines are excluded from the scope of this 
entry. See ECCN 1C996.
Related Definitions: N/A
Items: a. Bacteria, as follows:
    a.1. Xanthonomas albilineas;
    a.2. Xanthonomas campestris pv. citri;
    b. Fungi, as follows:
    b.1. Colletotrichum coffeanum var. virulans;
    b.2. Cochliobolus miyabeanus (Helminthosporium oryzae);
    b.3. Microcyclus ulei (syn. Dothidella ulei);
    b.4. Puccinia graminis (syn. Puccinia graminis f. sp. tritici);
    b.5. Puccinia striiformis (syn. Puccinia glumarum); or
    b.6. Pyricularia grisea/Pyricularia oryzae.




1C980  Inorganic chemicals listed in Supplement No. 1 to part 754 of the EAR that were produced or derived from the Naval Petroleum Reserves (NPR) or became 
          available for export as a result of an exchange of any NPR 
          produced or derived commodities.

License Requirements

Reason for Control: SS

SS applies to entire entry. For licensing requirements (and possible 
License Exceptions) proceed directly to part 754 of the EAR. The 
Commerce Country Chart is not designed to determine licensing 
requirements for items controlled for SS reasons.

List of Items Controlled

Unit: Barrels/Liters
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



1C981  Crude petroleum including reconstituted crude petroleum, tar sands & crude shale oil listed in Supplement No. 1 to part 754 of the EAR.

License Requirements

Reason for Control: SS

SS applies to entire entry. For licensing requirements (and possible 
License Exceptions) proceed directly to part 754 of the EAR. The 
Commerce Country Chart is not designed to determine licensing 
requirements for items controlled for SS reasons.

List of Items Controlled

Unit: Barrels/Liters
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1C982  Other petroleum products listed in Supplement No. 1 to part 754 of the EAR that were produced or derived from the Naval Petroleum Reserves (NPR) or 
          became available for export as a result of an exchange of any 
          NPR produced or derived commodities.

License Requirements

Reason for Control: SS

SS applies to entire entry. For licensing requirements (and possible 
License Exceptions) proceed directly to part 754 of the EAR. The 
Commerce Country Chart is not designed to determine licensing 
requirements for items controlled for SS reasons.

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1C983  Natural gas liquids and other natural gas derivatives listed in Supplement No. 1 to part 754 of the EAR that were produced or derived from the Naval 
          Petroleum Reserves (NPR) or became available for export as a 
          result of an exchange of any NPR produced or derived 
          commodities.

License Requirements

Reason for Control: SS

SS applies to entire entry. For licensing requirements (and possible 
License Exceptions) proceed directly to part 754 of the EAR. The 
Commerce Country Chart is not designed to determine licensing 
requirements for items controlled for SS reasons.

List of Items Controlled

Unit: Barrels/Liters
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

[[Page 506]]




1C984  Manufactured gas and synthetic natural gas (except when commingled with natural gas and thus subject to export authorization from the Department of 
          Energy) listed in Supplement No. 1 to part 754 of the EAR that 
          were produced or derived from the Naval Petroleum Reserves 
          (NPR) or became available for export as a result of an 
          exchange of any NPR produced or derived commodities.

License Requirements

Reason for Control: SS

SS applies to entire entry. For licensing requirements (and possible 
License Exceptions) proceed directly to part 754 of the EAR. The 
Commerce Country Chart is not designed to determine licensing 
requirements for items controlled for SS reasons.

List of Items Controlled

Unit: Millions of cubic feet
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1C988  Western red cedar (thuja plicata), logs and timber, and rough, dressed and worked lumber containing wane listed in Supplement No. 2 to part 754 of the 
          EAR.

License Requirements

Reason for Control: SS

SS applies to entire entry. For licensing requirements (and possible 
License Exceptions) proceed directly to part 754 of the EAR. The 
Commerce Country Chart is not designed to determine licensing 
requirements for items controlled for SS reasons.

List of Items Controlled

Unit: Million board feet scribner
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1C991  Vaccines containing items controlled by ECCNs 1C351, 1C352, 1C353 and 1C354, and immunotoxins.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Related Definitions: For the purposes of this entry ``immunotoxin'' is 
defined as an antibody-toxin conjugate intended to destroy specific 
target cells (e.g., tumor cells) that bear antigens homologous to the 
antibody.
Items: The list of items controlled is contained in the ECCN heading.



1C992  Oil well perforators.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Materials in number
Related Controls: N/A
Related Definitions: N/A
Items: 1a. Shaped charges specially designed for oil well operations, 
utilizing one charge functioning along a single axis, that upon 
detonation produce a hole, and:
    a.1. Contain any formulation of RDX, PYX, PETN, HNS, or HMX; and
    a.2. Have only a uniformly shaped conical liner with an included 
angle of 90 degrees or less; and
    a.3. Have a total explosive mass of no more than 90 grams; and
    a.4. Have a diameter not exceeding three inches.




1C993  Fibrous and filamentary materials, not controlled by 1C010 or 1C210, for use in ``composite'' structures and with a specific modulus of 3.18 x 
          106 m or greater and a specific tensile strength of 
          7.62 x 104 m or greater.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

[[Page 507]]



1C994  Fluorocarbon electronic cooling fluids.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: Fluorocarbon electronic cooling fluids made from at least 85% of 
any of the following:
    a. Monomeric or polymeric forms of perfluoropolyalkylether-friazines 
or perfluoroaliphatic-ethers;
    b. Perfluoroalkylamines; or
    c. Perfluorocycloalkanes or perfluoroalkanes with all of the 
following characteristics:
    c.1. Density of 298K (25  deg.C) of 1.5 g/ml or more;
    c.2. In a liquid state at 273K; (0  deg.C); and
    c.3. Containing 60% or more by weight of fluorine.




1C995  Mixtures containing precursor and intermediate chemicals used in the ``production'' of chemical warfare agents that are not controlled by ECCN 1C350.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definition: For calculation of de minimis quantities of 
controlled chemicals in mixtures, see ECCN 1C350 and [Supplement 3 to 
part 770].
Items: The list of items controlled is contained in the ECCN heading.

                               D. Software




1D001  ``Software'' specially designed or modified for the ``development'', ``production'', or ``use'' of items controlled by 1B001 to 1B003.

License Requirements

Reason for Control: NS, MT, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
MT applies to ``software'' for the                                      
 ``development'', ``production'', or                                    
 ``use'' of items controlled by 1B001 for                               
 MT reasons...............................  MT Column 1                 
NP applies to ``software'' for the                                      
 ``development'', ``production'' or                                     
 ``use'' of items controlled by 1B001 for                               
 NP reasons...............................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: Yes
TSR: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1D002  ``Software'' for the ``development'' of organic matrix, metal matrix or carbon matrix laminates or ``composites''.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
MT applies to ``software'' specially                                    
 designed or modified for the                                           
 ``development'' of ``composites''                                      
 controlled by 1A, 1B or 1C entries for MT                              
 reasons..................................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: Yes
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1D018  ``Software'' specially designed or modified for the ``development'', ``production'', or ``use'' of items controlled by 1B018.

License Requirements


[[Page 508]]


Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
MT applies to ``software'' for the                                      
 ``development'', ``production'', or                                    
 ``use'' of items controlled by 1B018 for                               
 MT reasons...............................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1D101  Other ``software'' not controlled by 1D001, 1D002, 1D103, and 1D018 specially designed for the ``development'', ``production'', or ``use'' of items 
          controlled by 1A, 1B, and 1C for MT reasons.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1D103  ``Software'' specially designed for analysis of reduced observables such as radar reflectivity, ultraviolet/infrared signatures and acoustic signatures.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1D201  ``Software'' specially designed or modified for the ``use'' of items controlled by 1B101 or 1B201 for NP reasons.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1D390  ``Software'' for process control that is specifically configured to control or initiate ``production'' of chemicals controlled by ECCN 1C350.

License Requirements

Reason for Control: CB, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
CB applies to entire entry................  CB Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Items: The list of items controlled is contained in the ECCN heading.




1D993   ``Software'' specially designed for the ``development'', ``production'', or ``use'' of equipment or materials controlled by 1C210.b, 1C993, 1C994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.


[[Page 509]]



                              E. Technology




1E001   ``Technology'' according to the General Technology Note for the ``development'' or ``production'' of items controlled by 1A001.b, 1A001.c, 1A002, 1A003, 
          1A102, 1B or 1C (except 1C980 to 1C984, 1C988 and 1C991 to 
          1C995).

License Requirements

Reason for Control: NS, MT, NP, CB, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to ``technology'' for items                                  
 controlled by 1A001.b and .c, 1A002,                                   
 1A003, 1B001 to 1B003, 1B018, 1B225,                                   
 1C001 to 1C010, 1C018, 1C230, 1C231,                                   
 1C233, or 1C234..........................  NS Column 1                 
MT applies to ``technology'' for items                                  
 controlled by 1A002, 1A102, 1B001, 1B018,                              
 1B101, 1B115, 1B116, 1C001, 1C007, 1C101,                              
 1C107, 1C115 to 1C117, or 1C216 for MT                                 
 reasons..................................  MT Column 1                 
NP applies to ``technology'' for items                                  
 controlled by 1A002, 1B001, 1B101, 1B201,                              
 1B225 to 1B232, 1C001, 1C010, 1C202,                                   
 1C210, 1C216, 1C225 to 1C234, 1C236 to                                 
 1C238 for NP reasons.....................  NP Column 1                 
CB applies to ``technology'' for items                                  
 controlled by 1C351, 1C352, 1C353, or                                  
 1C354....................................  CB Column 1                 
CB applies to ``technology'' for materials                              
 controlled by 1C350......................  CB Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: The corresponding EU number captures controls 
related to 1C235. This EU entry is not contained on the CCL and is 
subject to the export licensing authority of the Nuclear Regulatory 
Commission (See 10 CFR part 110.)
Items: The list of items controlled is contained in the ECCN heading.



1E002   Other ``technology''.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: a. ``Technology'' for the ``development'' or ``production'' of 
polybenzothiazoles or polybenzoxazoles;
    b. ``Technology'' for the ``development'' or ``production'' of 
fluoroelastomer compounds containing at least one vinylether monomer;
    c. ``Technology'' for the design or ``production'' of the following 
base materials or non-``composite'' ceramic materials:
    c.1. Base materials having all the following characteristics:
    c.1.a. Any of the following compositions:
    c.1.a.1. Single or complex oxides of zirconium and complex oxides of 
silicon or aluminium;
    c.1.a.2. Single nitrides of boron (cubic crystalline forms);
    c.1.a.3. Single or complex carbides of silicon or boron; or
    c.1.a.4. Single or complex nitrides of silicon;
    c.1.b. Total metallic impurities, excluding intentional additions, 
of less than:
    c.1.b.1. 1,000 ppm for single oxides or carbides; or
    c.1.b.2. 5,000 ppm for complex compounds or single nitrides; and
    c.1.c.1. Average particle size equal to or less than 5 micrometer 
and no more than 10% of the particles larger than 10 micrometer; or

    N.B.: For zirconia, these limits are 1 micrometer and 5 micrometer 
respectively;

    c.1.c.2.a. Platelets with a length to thickness ratio exceeding 5;
    c.1.c.2.b. Whiskers with a length to diameter ratio exceeding 10 for 
diameters less than 2 micrometer; and
    c.1.c.2.c. Continuous or chopped fibers less than 10 micrometer in 
diameter.
    c.2. Non-``composite'' ceramic materials, except abrasives, composed 
of the materials described in 1E002.c.1;
    d. ``Technology'' for the ``production'' of aromatic polyamide 
fibers;
    e. ``Technology'' for the installation, maintenance or repair of 
materials controlled by 1C001;
    f. ``Technology'' for the repair of ``composite'' structures, 
laminates or materials controlled by 1A002, 1C007.c, or 1C007.d.

    Note: 1E002.f does not control ``technology'' for the repair of 
``civil aircraft'' structures using carbon ``fibrous or filamentary 
materials'' and epoxy resins, contained in aircraft manufacturers' 
manuals.



1E101   ``Technology'' according to the General Technology Note for the ``use'' of items controlled by 1A102, 1B001, 1B101, 1B115, 1B116, 1C001, 1C101, 1C107 or 
          1C115 to 1C117 for MT reasons.

License Requirements

Reason for Control: MT, AT

[[Page 510]]



                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1E103   ``Technology'' (including processing conditions) and procedures for the regulation of temperature, pressures or atmosphere in autoclaves or hydroclaves 
          when used for the ``production'' of ``composites'' or 
          partially processed ``composites''.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1E104   ``Technology'' for producing pyrolytically derived materials formed on a mould, mandrel, or other substrate from precursor gases that decompose at 1,300 
           deg.C to 2,900  deg.C temperature range at pressures of 130 
          Pa (1 mm Hg) to 20 kPa (150 mm Hg).

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: This entry includes ``technology'' for the 
composition of precursor gasses, flow-rates and process control 
schedules and parameters.
Items: The list of items controlled is contained in the ECCN heading.




1E201   ``Technology'' according to the General Technology Note for the ``use'' of items controlled by 1A002, 1A202, 1A225 to 1A227, 1A290, 1B001.a, 1B101, 
          1B201, 1B225 to 1B232, 1C002.a.2.c or a.2.d, 1C010.b, 1C202, 
          1C210, 1C216, 1C225 to 1C239 or 1D201 for NP reasons.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1E202   ``Technology'' according to the General Technology Note for the ``development'' or ``production'' of items controlled by 1A202 or 1A225 to 1A227, or 
          1A290.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1E203  ``Technology'' according to the General Technology Note for the ``development'' of ``software'' controlled by 1D201.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A

[[Page 511]]

TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1E350  ``Technology'' for the ``use'' of chemicals controlled by 1C350 and for facilities designed or intended to produce chemicals controlled by 1C350.

License Requirements

Reason for Control: CB, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
CB applies to entire entry................  CB Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: a. Overall plant design;
    b. Design, specification, or procurement of equipment;
    c. Supervision of construction, installation, or operation of 
complete plant or components thereof;
    d. Training of personnel; and
    e. Consultation on specific problems involving such facilities.




1E351  ``Technology'' for the ``use'' of microbiological materials controlled by 1C351, 1C352, 1C353, or 1C354.

License Requirements

Reason for Control: CB, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
CB applies to entire entry................  CB Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1E391  ``Technology'' for the disposal of chemicals or microbiological materials controlled by 1C350, 1C351, 1C352, 1C353, or 1C354.

License Requirements

Reason for Control: CB, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
CB applies to ``technology'' for the                                    
 disposal of items controlled by 1C351,                                 
 1C352, 1C353, or 1C354...................  CB Column 1                 
CB applies to ``technology'' for the                                    
 disposal of items controlled by 1C350....  CB Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




1E994  ``Technology'' for the ``development'', ``production'', or ``use'' of fibrous and filamentary materials controlled by 1C993 or fluorocarbon electronic 
          cooling fluids controlled by 1C994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

EAR99  Items subject to the EAR that are not elsewhere specified in this 
          CCL Category or in any other category in the CCL are 
          designated by the number EAR99.

                    Category 2--Materials Processing

                 A. Equipment, Assemblies and Components




2A001  Ball bearings or solid roller bearings (except tapered roller bearings) having tolerances specified by the manufacturer in accordance with ABEC 7, ABEC 
          7P, or ABEC 7T or ISO Standard Class 4 or better (or 
          equivalents) and having any of the following characteristics.

License Requirements

Reason for Control: NS, AT

[[Page 512]]



                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: Yes
CIV: Yes

List of Items Controlled

Unit: $ value
Related Controls: Quiet running bearings are subject to the export 
licensing authority of the Department of State, Office of Defense Trade 
Controls. (See 22 CFR part 121, Category VI.)
Related Definitions: (1.) This entry does not control balls with 
tolerance specified by the manufacturer in accordance with ISO 3290 as 
grade 5 or worse. (2.) (a) DN is the product of the bearing bore 
diameter in mm and the bearing rotational velocity in rpm. (b) Operating 
temperatures include those temperatures obtained when a gas turbine 
engine has stopped after operation. (3.) Annular Bearing Engineers 
Committee (ABEC)
Items: a. Rings, balls or rollers made from monel or beryllium;
    b. Manufactured for use at operating temperatures above 573 K (300 
deg.C) either by using special materials or by special heat treatment; 
or
    c. With lubricating elements or component modifications that, 
according to the manufacturer's specifications, are specially designed 
to enable the bearings to operate at speeds exceeding 2.3 million DN.




2A002  Other ball bearings or solid roller bearings (except tapered roller bearings) having tolerances specified by the manufacturer in accordance with ABEC 9, 
          ABEC 9P or ISO Standard Class 2 or better (or equivalents).

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: Yes
CIV: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: (1) This entry does not control balls with 
tolerance specified by the manufacturer in accordance with ISO 3290 as 
grade 5 or worse. (2)(a) DN is the product of the bearing bore diameter 
in mm and the bearing rotational velocity in rpm. (b) Operating 
temperatures include those temperatures obtained when a gas turbine 
engine has stopped after operation. (3) Annular Bearing Engineers 
Committee (ABEC)
Items: The list of items controlled is contained in the ECCN heading.




2A003  Solid tapered roller bearings, having tolerances specified by the manufacturer in accordance with ANSI/AFBMA Class 00 (inch) or Class A (metric) or 
          better (or equivalents) and having either of the following 
          characteristics.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: Yes
CIV: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: (1) This entry does not control balls with 
tolerance specified by the manufacturer in accordance with ISO 3290 as 
grade 5 or worse. (2)(a) DN is the product of the bearing bore diameter 
in mm and the bearing rotational velocity in rpm. (b) Operating 
temperatures include those temperatures obtained when a gas turbine 
engine has stopped after operation. (3) American National Standards 
Institute (ANSI); Anti-Friction Bearing Manufacturers Association 
(AFBMA)
Items: a. With lubricating elements or component modifications that, 
according to the manufacturer's specifications, are specially designed 
to enable the bearings to operate at speeds exceeding 2.3 million DN; or
    b. Manufactured for use at operating temperatures below 219 K (-54 
deg.C) or above 423 K (150  deg.C).




2A004  Gas-lubricated foil bearing manufactured for use at operating temperatures of 561 K (288  deg.C) or higher and a unit load capacity exceeding 1 MPa.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: Yes

[[Page 513]]

CIV: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: (a) DN is the product of the bearing bore diameter 
in mm and the bearing rotational velocity in rpm. (b) Operating 
temperatures include those temperatures obtained when a gas turbine 
engine has stopped after operation.
Items: The list of items controlled is contained in the ECCN heading.



2A005  Active magnetic bearing systems.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: (a) DN is the product of the bearing bore diameter 
in mm and the bearing rotational velocity in rpm. (b) Operating 
temperatures include those temperatures obtained when a gas turbine 
engine has stopped after operation.
Items: The list of items controlled is contained in the ECCN heading.



2A006  Fabric-lined self-aligning or fabric-lined journal sliding bearings manufactured for use at operating temperatures below 219 K(-54  deg.C) or above 423 K 
          (150  deg.C).

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: Yes
CIV: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: (a) DN is the product of the bearing bore diameter 
in mm and the bearing rotational velocity in rpm. (b) Operating 
temperatures include those temperatures obtained when a gas turbine 
engine has stopped after operation.
Items: The list of items controlled is contained in the ECCN heading.



2A225  Crucibles made of materials resistant to liquid actinide metals.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Crucibles with a volume between 150 ml and 8 liters, and made 
of or coated with any of the following materials having a purity of 98% 
or greater:
    a.1. Calcium fluoride (CaF2);
    a.2. Calcium zirconate (metazirconate) (CaZrO3);
    a.3. Cerium sulfide (Ce2S3);
    a.4. Erbium oxide (erbia) (Er2O3);
    a.5. Hafnium oxide (hafnia) (HfO2);
    a.6. Magnesium oxide (MgO);
    a.7. Nitrided niobium-titanium-tungsten alloy (approximately 50% Nb, 
30% Ti, and 20% W);
    a.8. Yttrium oxide (yttria) (Y2O3); or
    a.9. Zirconium oxide (zirconia) (ZrO2);
    b. Crucibles with a volume between 50 ml and 2 liters, and made of 
or lined with tantalum, having a purity of 99.9% or greater;
    c. Crucibles with a volume between 50 ml and 2 liters and made of or 
lined with tantalum (having a purity of 98% or greater) or coated with 
tantalum carbide, nitride, boride (or any combination of these).




2A226  Valves not controlled by 0B001 that are 5 mm (0.2 in.) or greater in nominal size, with a bellows seal, wholly made of or lined with aluminum, aluminum 
          alloy, nickel, or alloy containing 60% or more nickel, either 
          manually or automatically operated.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled


[[Page 514]]


Unit: $ value
Related Controls: Valves are also subject to the export licensing 
authority of the Nuclear Regulatory Commission. (See 10 CFR part 110.)
Related Definition: For valves with different inlet and outlet diameter, 
the nominal size parameter above refers to the smallest diameter.
Items: The list of items controlled is contained in the ECCN heading.




2A290  Generators and other equipment specially designed, prepared, or intended for use with nuclear plants.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: Nuclear equipment is also subject to the export 
licensing authority of the Nuclear Regulatory Commission. (See 10 CFR 
part 110.)
Related Definitions: N/A
Items: a. Generators, turbine-generator sets, steam turbines, heat 
exchangers, and heat exchanger type condensers designed or intended for 
use in a nuclear reactor;
    b. Process control systems intended for use with the equipment 
controlled by 2A290.a.




2A291  Equipment related to nuclear material handling and processing and to nuclear reactors.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: Nuclear equipment is also subject to the export 
licensing authority of the Nuclear Regulatory Commission. (See 10 CFR 
part 110.)
Related Definitions: N/A
Items: a. Process control systems, except those controlled by 2A290.b, 
intended for use with nuclear reactors.
    b. Casks that are specially designed for transportation of high-
level radioactive material and that weigh more than 1,000 kg.
    c. Commodities, parts and accessories specially designed or prepared 
for use with nuclear plants (e.g., snubbers, airlocks, reactor and fuel 
inspection equipment) except items licensed by the Nuclear Regulatory 
Commission, pursuant to 10 CFR part 110.




2A292  Piping, fittings and valves made of, or lined with, stainless steel, copper-nickel alloy or other alloy steel containing 10% or more nickel and/or 
          chromium.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Pressure tubes, pipes, and fittings in kilograms; valves in 
number; parts and accessories in $ value
Related Controls: Piping, fittings, and valves are also subject to the 
export licensing authority of the Nuclear Regulatory Commission. (See 10 
CFR part 110.)
Related Definitions: N/A
Items: a. Pressure tube, pipe, and fittings of 200 mm (8 inches) or more 
inside diameter, and suitable for operation at pressures of 3.4 MPa (500 
psi) or greater;
    b. Pipe valves having all of the following characteristics:
    b.1. A pipe size connection of 8 inches or more inside diameter;
    b.2. Rated at 1,500 psi or more;
    c. Parts, n.e.s.



2A293  Pumps designed to move molten metals by electromagnetic forces.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number

[[Page 515]]

Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




2A993  Explosive detection systems, consisting of an automated device, or combination of devices, with the ability to detect the presence of different types of 
          explosives, in passenger checked baggage, without need for 
          human skill, vigilance, or judgment.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



2A994  Portable electric generators and specially designed parts.

License Requirements

Reason for Control: AT

AT applies to entire entry. A license is required for items controlled 
by this entry to Cuba, Iran, Libya, and North Korea. The Commerce 
Country Chart is not designed to determine licensing requirements for 
this entry. See part 746 of the EAR for additional information.

    Note: Exports from the U.S. and transhipments to Iran must be 
licensed by the Department of Treasury, Office of Foreign Assets 
Control. (See Sec. 742.8 and Sec. 746.7 of the EAR for additional 
information on this requirement.)

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

              B. Test, Inspection and Production Equipment

    Note for Category 2B: 2B001 to 2B009 do not control measuring 
interferometer systems, without closed or open loop feedback, containing 
a ``laser'' to measure slide movement errors of machine-tools, 
dimensional inspection machines or similar equipment.




2B001  ``Numerical control'' units, ``motion control boards'', specially designed for ``numerical control'' applications on machine tools, machine tools, and 
          specially designed components therefore.

License Requirements

Reason for Control: NS, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
NP applies to entire entry................  NP Column 1                 
Except as noted below: 2B001.a and .b                                   
 unless controlled ``software'' in 2D001                                
 or 2D002.b resides therein, 2B001.c.1.b.1                              
 (turning machines only), c.1.b.2,                                      
 c.1.b.3, c.1.b.4, c.1.b.5.b.2 (except bar                              
 machines (Swissturn), limited to                                       
 machining only bar feed through, if                                    
 maximum diameter is equal to or less than                              
 42mm and there is no capability of                                     
 mounting chucks. Machines may have                                     
 drilling and/or milling capabilities for                               
 machining parts with diameters less than                               
 42 mm), c.1.b.6, c.2. and c.4, turning                                 
 machines with capacity 35 mm                                
 in diameter, milling machines with                                     
 greater than 2 meters travel and worse                                 
 than 30 micron accuracy, or crankshaft                                 
 and camshaft grinding machines...........  ............................
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: Yes, for items described in Advisory Note 1
CIV: Yes, for items described in Advisory Note 1

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items:

    Technical Notes: 1. Secondary parallel contouring axes, e.g., the w-
axis on horizontal boring mills or a secondary rotary axis the center 
line of which is parallel to the primary rotary axis, are not counted in 
the total number of contouring axes.

    Note: Rotary axes need not rotate over 360 deg.. A rotary axis can 
be driven by a linear device, e.g., a screw or a rack-and-pinion.

    2. Axis nomenclature shall be in accordance with International 
Standard ISO 841, Numerical Control Machines--Axis and Motion 
Nomenclature.

    a. ``Numerical control'' units for machine tools, as follows, and 
specially designed components therefor:
    a.1. Having more than four interpolating axes that can be 
coordinated simultaneously for ``contouring control''; or
    a.2. Having two, three or four interpolating axes that can be 
coordinated simultaneously for ``contouring control'' and:

[[Page 516]]

    a.2.a. Capable of ``real-time processing'' of data to modify, during 
the machining operation, tool path, feed rate and spindle data by 
either:
    a.2.a.1. Automatic calculation and modification of part program data 
for machining in two or more axes by means of measuring cycles and 
access to source data; or
    a.2.a.2. ``Adaptive control'' with more than one physical variable 
measured and processing by means of a computing model (strategy) to 
change one or more machining instructions to optimize the process; or
    a.2.b. Capable of receiving directly (on-line) and processing 
computer-aided-design (CAD) data for internal preparation of machine 
instructions; or
    a.2.c. Capable, without modification, according to the 
manufacturer's technical specifications, of accepting additional boards 
which would permit an increase above the control levels specified in 
2B001, in the number of interpolating axes that can be coordinated 
simultaneously for ``contouring control'', even if they do not contain 
these additional boards;

    Note: 2B001.a does not control ``numerical control'' units if:
    a. Modified for and incorporated in uncontrolled machines; or
    b. Specially designed for uncontrolled machines.

    b. ``Motion control boards'' specially designed for machine tools 
and having any of the following characteristics:
    b.1. Interpolation in more than four axes;
    b.2. Capable of ``real time processing'' as described in 
2B001.a.2.a; or
    b.3. Capable of receiving and processing CAD data as described in 
2B001.a.2.b;
    c. Machine tools, as follows, for removing or cutting metals, 
ceramics or composites, that, according to the manufacturer's technical 
specifications, can be equipped with electronic devices for simultaneous 
``contouring control'' in two or more axes:
    c.1. Machine tools for turning, grinding, milling or any combination 
thereof that:
    c.1.a. Have two or more axes that can be coordinated simultaneously 
for ``contouring control''; and
    c.1.b. Have any of the following characteristics:
    c.1.b.1. Two or more contouring rotary axes;

    Technical Note: The c-axis on jig grinders used to maintain grinding 
wheels normal to the work surface is not considered a contouring rotary 
axis.

    c.1.b.2. One or more contouring ``tilting spindles'';

    Note: 2B001.c.1.b.2 applies to machine tools for grinding or milling 
only.

    c.1.b.3. ``Camming'' (axial displacement) in one revolution of the 
spindle less (better) than 0.0006 mm total indicator reading (TIR);

    Note: 2B001.c.1.b.3 applies to machine tools for turning only.

    c.1.b.4. ``Run out'' (out-of-true running) in one revolution of the 
spindle less (better) than 0.0006 mm total indicator reading (TIR);
    c.1.b.5. The ``positioning accuracies'', with all compensations 
available, are less (better) than:
    c.1.b.5.a. 0.001 deg. on any rotary axis; or
    c.1.b.5.b.1. 0.004 mm along any linear axis (overall positioning) 
for grinding machines;
    c.1.b.5.b.2. 0.006 mm along any linear axis (overall positioning) 
for turning or milling machines;
    N.B.: 2B001.c.1.b.5 does not control milling or turning machine 
tools with a positioning accuracy along one axis, with all compensations 
available, equal to or greater (worse) than 0.005 mm.

    Technical Note: The positioning accuracy of ``numerically 
controlled'' machine tools is to be determined and presented in 
accordance with ISO/DIS 230/2, paragraph 2.13, in conjunction with the 
requirements below:
    a. Test conditions (paragraph 3):
    1. For 12 hours before and during measurements, the machine tool and 
accuracy measuring equipment will be kept at the same ambient 
temperature. During the premeasurement time the slides of the machine 
will be continuously cycled in the same manner that the accuracy 
measurements will be taken;
    2. The machine shall be equipped with any mechanical, electronic, or 
software compensation to be exported with the machine;
    3. Accuracy of measuring equipment for the measurements shall be at 
least four times more accurate than the expected machine tool accuracy;
    4. Power supply for slide drives shall be as follows:
    a. Line voltage variation shall not exceed 10% of 
nominal rated voltage;
    b. Frequency variation shall not exceed 2 Hz of normal 
frequency;
    c. Lineouts or interrupted service are not permitted.
    b. Test program (paragraph 4):
    1. Feed rate (velocity of slides) during measurement shall be the 
rapid traverse rate;

    Note: In the case of machine tools that generate optical quality 
surfaces, the feedrate shall be equal to or less than 50 mm per minute.
    2. Measurements shall be made in an incremental manner from one 
limit of the axis travel to the other without returning to the starting 
position for each move to the target position;
    3. Axes not being measured shall be retained at mid travel during 
test of an axis.
    c. Presentation of test results (paragraph 2): The results of the 
measurement must include:
    1. Positioning accuracy (A); and
    2. The mean reversal error (B).

    c.1.b.6.a A ``positioning accuracy'' less (better) than 0.007 mm; 
and
    c.1.b.6.b. A slide motion from rest for all slides within 20% of a 
motion command input for inputs of less than 0.5 micrometer;

    Technical Note: Minimum increment of motion test (slide motion from 
rest): The test is conducted only if the machine tool is equipped with a 
control unit the minimum increment of which is less (better) than 0.5 
micrometer. Prepare the machine for testing in accordance with ISO 230.2 
paragraphs 3.1, 3.2, 3.3. Conduct the test on each axis (slide) of the 
machine tool as follows:
    1. Move the axis over at least 50% of the maximum travel in plus and 
minus directions twice at maximum feed rate, rapid traverse rate or jog 
control;
    2. Wait at least 10 seconds;
    3. With manual data input, input the minimum programmable increment 
of the control unit;
    4. Measure the axis movement;
    5. Clear the control unit with the servo null, reset or whatever 
clears any signal (voltage) in the servo loop;

[[Page 517]]

    6. Repeat steps 2 to 5 five times, twice in the same direction of 
the axis travel and three times in the opposite direction of travel for 
a total of six test points;
    7. If the axis movement is between 80% and 120% of the minimum 
programmable input for four of the six test points, the machine is 
controlled. For rotary axes, the measurement is taken 200 mm from the 
center of rotation.

    Note 1: 2B001.c.1 does not control cylindrical external, internal, 
and external-internal grinding machines having all of the following 
characteristics:
    a. Not centerless (shoe-type) grinding machines;
    b. Limited to cylindrical grinding;
    c. A maximum workpiece capacity of 150 mm diameter or length;
    d. Only two axes which can be coordinated simultaneously for 
``contouring control''; and
    e. No contouring c axis.
    Note 2: 2B001.c.1 does not control machines designed specifically as 
jig grinders having both of the following characteristics:
    a. Axes limited to x, y, c and a, where the c-axis is used to 
maintain the grinding wheel normal to the work surface and the a-axis is 
configured to grind barrel cams; and
    b. A spindle ``run out'' not less (not better) than 0.0006 mm.
    Note 3: 2B001.c.1 does not control tool or cutter grinding machines 
having all of the following characteristics:
    a. Shipped as a complete system with ``software'' specially designed 
for the production of tools or cutters;
    b. No more than two rotary axes that can be coordinated 
simultaneously for ``contouring control'';
    c. ``Run out'' (out-of-true running) in one revolution of the 
spindle not less (not better) than 0.0006 mm total indicator reading 
(TIR); and
    d. The ``positioning accuracies'', with all compensations available, 
are not less (not better) than:
    1. 0.004 mm along any linear axis for overall positioning; or
    2. 0.001 deg. on any rotary axis.

    c.2. Electrical discharge machines (EDM) of the wire feed type that 
have five or more axes that can be coordinated simultaneously for 
``contouring control'';
    c.3. Electrical discharge machines (EDM) of the non-wire type that 
have two or more rotary axes that can be coordinated simultaneously for 
``contouring control'';
    c.4. Machine tools for removing metals, ceramics or composites:
    c.4.a. By means of:
    c.4.a.1. Water or other liquid jets, including those employing 
abrasive additives;
    c.4.a.2. Electron beam; or
    c.4.a.3. ``Laser'' beam; and
    c.4.b. Having two or more rotary axes that:
    c.4.b.1. Can be coordinated simultaneously for ``contouring 
control''; and
    c.4.b.2. Have a ``positioning accuracy'' of less (better) than 0.003 
 deg.C.

    Technical Note: Machines capable of being simultaneously coordinated 
for contouring control in two or more rotary axes or one or more 
``tilting spindles'', remain controlled regardless of the number of 
simultaneously coordinated contouring axes that can be controlled by the 
``numerical control'' unit attached to the machine.




2B002  Non-''numerically controlled'' machine tools for generating optical quality surfaces.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: a. Turning machines using a single point cutting tool and having 
all of the following characteristics:
    a.1. Slide ``positioning accuracy'' less (better) than 0.0005 mm per 
300 mm of travel;
    a.2. Bidirectional slide positioning ``repeatability'' less (better) 
than 0.00025 mm per 300 mm of travel;
    a.3. Spindle ``run out'' and ``camming'' less (better) than 0.0004 
mm total indicator reading (TIR);
    a.4. Angular deviation of the slide movement (yaw, pitch and roll) 
less (better) than 2 seconds of arc, TIR, over full travel; and
    a.5. Slide perpendicularity less (better) than 0.001 mm per 300 mm 
of travel;

    Technical Note: The bidirectional slide positioning 
``repeatability'' (R) of an axis is the maximum value of the 
repeatability of positioning at any position along or around the axis 
determined using the procedure and under the conditions specified in 
part 2.11 of ISO 230/2: 1988.

    b. Fly cutting machines having both of the following 
characteristics:
    b.1. Spindle ``run out'' and ``camming'' less (better) than 0.004 mm 
TIR; and
    b.2. Angular deviation of slide movement (yaw, pitch and roll) less 
(better) than 2 seconds of arc, TIR, over full travel.




2B003  ``Numerically controlled'' or manual machine tools specially designed for cutting, finishing, grinding or honing either of the following classes of bevel 
          or parallel axis hardened (Rc = 40 or more) gears, 
          and specially designed components, controls and accessories 
          therefor.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: Yes for 2B003.a
CIV: Yes for 2B003.a

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A

[[Page 518]]

Related Definitions: N/A
Items: a. Hardened bevel gears finished to a quality of better than 
American Gear Manufacturers Association (AGMA) 13 (equivalent to ISO 
1328 class 4); or
    b. Hardened spur, helical and double-helical gears with a pitch 
diameter exceeding 1,250 mm and a face width of 15% of pitch diameter or 
larger finished to a quality of AGMA 14 or better (equivalent to ISO 
1328 class 3).




2B004  Hot ``isostatic presses'' and specially designed dies, molds, components, accessories and controls therefor.

License Requirements

Reason for Control: NS, MT, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
MT applies to entire entry................  MT Column 1                 
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Having a controlled thermal environment within the closed 
cavity and possessing a chamber cavity with an inside diameter of 406 mm 
or more; and
    b. Having:
    b.1. A maximum working pressure exceeding 207 MPa;
    b.2. A controlled thermal environment exceeding 1,773 K (1,500 
deg.C); or
    b.3. A facility for hydrocarbon impregnation and removal of 
resultant gaseous degradation products.

    Technical Note: The inside chamber dimension is that of the chamber 
in which both the working temperature and the working pressure are 
achieved and does not include fixtures. That dimension will be the 
smaller of either the inside diameter of the pressure chamber or the 
inside diameter of the insulated furnace chamber, depending on which of 
the two chambers is located inside the other.




2B005  Equipment specially designed for deposition, processing and in-process control of inorganic overlays, coatings and surface modification, for non-
          electronic substrates, by processes shown in the Table and 
          associated Notes following 2E003.d, and specially designed 
          automated handling, positioning, manipulation and control 
          components therefor.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $1000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. ``Stored program controlled'' chemical vapor deposition (CVD) 
production equipment with both of the following:
    a.1. Process modified for one of the following:
    a.1.a. Pulsating CVD;
    a.1.b. Controlled nucleation thermal decomposition (CNTD); or
    a.1.c. Plasma enhanced or plasma assisted CVD; and
    a.2. Either of the following:
    a.2.a. Incorporating high vacuum (equal to or less than 0.01 Pa) 
rotating seals; or
    a.2.b. Incorporating in situ coating thickness control;
    b. ``Stored program controlled'' ion implantation production 
equipment having beam currents of 5 mA or more;
    c. ``Stored program controlled'' electron beam physical vapor 
deposition (EB-PVD) production equipment incorporating:
    c.1. Power systems rated for over 80 kW;
    c.2. A liquid pool level ``laser'' control system that regulates 
precisely the ingots feed rate; and
    c.3. A computer controlled rate monitor operating on the principle 
of photo-luminescence of the ionized atoms in the evaporant stream to 
control the deposition rate of a coating containing two or more 
elements;
    d. ``Stored program controlled'' plasma spraying production 
equipment having either of the following characteristics:
    d.1. Operating at reduced pressure controlled atmosphere (equal to 
or less than 10 kPa measured above and within 300 mm of the gun nozzle 
exit) in a vacuum chamber capable of evacuation down to 0.01 Pa prior to 
the spraying process; or
    d.2. Incorporating in situ coating thickness control;
    e. ``Stored program controlled'' sputter deposition production 
equipment capable of current densities of 0.1 mA/mm2 or 
higher at a deposition rate of 15 micrometer/hr or more;
    f. ``Stored program controlled'' cathodic arc deposition production 
equipment incorporating a grid of electromagnets for steering control of 
the arc spot on the cathode;
    g. ``Stored program controlled'' ion plating production equipment 
allowing for the in situ measurement of either:

[[Page 519]]

    g.1. Coating thickness on the substrate and rate control; or
    g.2. Optical characteristics.

    Note: 2B005.g does not control standard ion plating coating 
equipment for cutting or machining tools.



2B006  Dimensional inspection or measuring systems or equipment.

License Requirements

Reason for Control: NS, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
NP applies to 2B006.a, b and .c...........  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definition: This entry does not control measuring interferometer 
systems, without closed or open loop feedback, containing a ``laser'' to 
measure slide movement errors of machine tools, dimensional inspection 
machines or similar equipment.
Items: a. Computer controlled, ``numerically controlled'' or ``stored 
program controlled'' dimensional inspection machines, having both of the 
following characteristics:
    a.1. Two or more axes; and
    a.2. A one dimensional length ``measurement uncertainty'' equal to 
or less (better) than (1.25+L/1,000) micrometer tested with a probe with 
an ``accuracy'' of less (better) than 0.2 micrometer (L is the measured 
length in mm);
    b. Linear and angular displacement measuring instruments, as 
follows:
    b.1. Linear measuring instruments having any of the following 
characteristics:
    b.1.a. Non-contact type measuring systems with a ``resolution'' 
equal to or less (better) than 0.2 micrometer within a measuring range 
up to 0.2 mm;
    b.1.b. Linear voltage differential transformer systems with both of 
the following characteristics:
    b.1.b.1. ``Linearity'' equal to or less (better) than 0.1% within a 
measuring range up to 5 mm; and
    b.1.b.2. Drift equal to or less (better) than 0.1% per day at a 
standard ambient test room temperature 1 K; or
    b.1.c. Measuring systems having both of the following 
characteristics:
    b.1.c.1. Containing a ``laser''; and
    b.1.c.2. Maintaining, for at least 12 hours, over a temperature 
range of 1 K around a standard temperature and at a standard 
pressure:
    b.1.c.2.a. A ``resolution'' over their full scale of 0.1 micrometer 
or less (better); and
    b.1.c.2.b. A ``measurement uncertainty'' equal to or less (better) 
than (0.2+L/2,000) micrometer (L is the measured length in mm);
    b.2. Angular measuring instruments having an ``angular position 
deviation'' equal to or less (better) than 0.00025 deg.;

    Note: 2B006.b.2 does not control optical instruments, such as 
autocollimators, using collimated light to detect angular displacement 
of a mirror.

    c. Systems for simultaneous linear-angular inspection of hemishells, 
having both of the following characteristics:
    c.1. ``Measurement uncertainty'' along any linear axis equal to or 
less (better) than 3.5 micrometer per 5 mm; and
    c.2. ``Angular position deviation'' equal to or less (better) than 
0.02 deg.;
    d. Equipment for measuring surface irregularities, by measuring 
optical scatter as a function of angle, with a sensitivity of 0.5 nm or 
less (better);

    Notes: 1. Machine tools that can be used as measuring machines are 
controlled if they meet or exceed the criteria specified for the machine 
tool function or the measuring machine function.
    2. A machine described in 2B006 is controlled if it exceeds the 
control threshold anywhere within its operating range.

    Technical Notes: 1. The probe used in determining the ``measurement 
uncertainty'' of a dimensional inspection system shall be as described 
in VDI/VDE 2617 Parts 2, 3, and 4.
    2. All measurement values in 2B006 represent permissible positive 
and negative deviations from the target value, i.e., not total band.



2B007  ``Robots'', and specially designed controllers and ``end-effectors'' therefor.

License Requirements

Reason for Control: NS, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
NP applies to 2B007.b and .c and to                                     
 specially designed controllers and                                     
 ``endeffectors'' therefor................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000, except 2B007.b and .c
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Capable in real time of full three-dimensional image 
processing or full three-dimensional scene analysis to generate or 
modify ``programs'' or to generate or modify numerical program data;

    Note: The scene analysis limitation does not include approximation 
of the third dimension by viewing at a given angle, or limited grey 
scale interpretation for the perception of depth or texture for the 
approved tasks (2\1/2\ D).


[[Page 520]]


    b. Specially designed to comply with safety standards applicable to 
explosive munitions environments (i.e.) meeting electrical code ratings 
for high explosives); or
    c. Specially designed or rated as radiation hardened to withstand 
greater than 5 x 104 grays(Silicon) (5 x 106 
rad(Silicon)) without operational degradation.



2B008  Assemblies, units or inserts specially designed for machine tools, or for equipment controlled by 2B006 or 2B007.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: This entry does not control measuring interferometer 
systems, without closed or open loop feedback, containing a laser to 
measure slide movement errors of machine-tools, dimensional inspection 
machines or similar equipment.
Items: a. Spindle assemblies, consisting of spindles and bearings as a 
minimal assembly, with radial (``run out'') or axial (``camming'') axis 
motion in one revolution of the spindle less (better) than 0.0006 mm 
total indicator reading (TIR);
    b. Linear position feedback units, e.g., inductive type devices, 
graduated scales, infrared systems or ``laser'' systems, having an 
overall ``accuracy'' less (better) than (800 + (600  x  L  x  
10-3))nm (L equals the effective length in mm);
    c. Rotary position feedback units, e.g., inductive type devices, 
graduated scales, infrared systems or ``laser'' systems, having an 
``accuracy'' less (better) than 0.00025 deg.;
    d. Slide way assemblies consisting of a minimal assembly of ways, 
bed and slide having all of the following characteristics:
    d.1. A yaw, pitch or roll of less (better) than 2 seconds of arc TIR 
(reference: ISO/DIS 230/1) over full travel;
    d.2. A horizontal straightness of less (better) than 2 micrometer 
per 300 mm length; and
    d.3. A vertical straightness of less (better) than 2 micrometer per 
300 mm length;
    e. Single point diamond cutting tool inserts, having all of the 
following characteristics:
    e.1. Flawless and chip-free cutting edge when magnified 400 times in 
any direction;
    e.2. Cutting radius from 0.1 to 5 mm inclusive; and
    e.3. Cutting radius out-of-roundness less (better) than 0.002 mm 
TIR.




2B009  Specially designed printed circuit boards with mounted components, or ``compound rotary tables'' or ``tilting spindles'', capable of upgrading, according 
          to the manufacturer's specifications, ``numerical control'' 
          units, machine tools or feed-back devices to or above the 
          levels specified in ECCNs 2B001, 2B002, 2B003, 2B004, 2B005, 
          2B006, 2B007, or 2B008.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



2B018  Equipment on the International Munitions List.

License Requirements

Reason for Control: NS, MT, RS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
MT applies to specialized machinery,                                    
 equipment, and gear for producing rocket                               
 systems (including ballistic missile                                   
 systems, space launch vehicles, and                                    
 sounding rockets) and unmanned air                                     
 vehicle systems (including cruise missile                              
 systems, target drones, and                                            
 reconnaissance drones) usable in systems                               
 that are controlled for MT reasons                                     
 including their propulsion systems and                                 
 components, and pyrolytic deposition and                               
 densification equipment..................  MT Column 1                 
RS applies to entire entry................  RS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: Yes for Advisory Note in this entry to 2B018
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in Sec. value

[[Page 521]]

Related Controls: N/A
Related Definitions: N/A
Items: Specialized machinery, equipment, gear, and specially designed 
parts and accessories therefor, including but not limited to the 
following, that are specially designed for the examination, manufacture, 
testing, and checking of arms, appliances, machines, and implements of 
war:
    a. Armor plate drilling machines, other than radial drilling 
machines;
    b. Armor plate planing machines;
    c. Armor plate quenching presses;
    d. Centrifugal casting machines capable of casting tubes 6 feet (183 
cm) or more in length, with a wall thickness of 2 inches (5 cm) and 
over;
    e. Gun barrel rifling and broaching machines, and tools therefor;
    f. Gun barrel rifling machines;
    g. Gun barrel trepanning machines;
    h. Gun boring and turning machines;
    i. Gun honing machines of 6 feet (183 cm) stroke or more;
    j. Gun jump screw lathes;
    k. Gun rifling machines;
    l. Gun straightening presses;
    m. Induction hardening machines for tank turret rings and sprockets;
    n. Jigs and fixtures and other metal-working implements or 
accessories of the kinds exclusively designed for use in the manufacture 
of firearms, ordnance, and other stores and appliances for land, sea, or 
aerial warfare;
    o. Small arms chambering machines;
    p. Small arms deep hole drilling machines and drills therefor;
    q. Small arms rifling machines;
    r. Small arms spill boring machines;
    s. Tank turret bearing grinding machines.

    Advisory Note: Licenses are likely to be approved, as administrative 
exceptions, for export and reexport to Country Group D:1 of equipment 
used to determine the safety data of explosives, as required by the 
International Convention on the Transport of Dangerous Goods (C.I.M.) 
articles 3 and 4 in Annex 1 RID, provided that such equipment will be 
used only by the railway authorities of current C.I.M. members, or by 
the Government-accredited testing facilities in those countries, for the 
testing of explosives to transport safety standards, of the following 
description:
    a. Equipment for determining the ignition and deflagration 
temperatures;
    b. Equipment for steel-shell tests;
    c. Drophammers not exceeding 20 kg in weight for determining the 
sensitivity of explosives to shock;
    d. Equipment for determining the friction sensitivity of explosives 
when exposed to charges not exceeding 36 kg in weight.




2B104   Equipment and process controls designed or modified for densification and pyrolysis of structural composite rocket nozzles and reentry vehicle nose 
          tips.

License Requirements

Reason for Control: MT, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
NP applies to 2B104.a.....................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: a. ``Isostatic presses'' other than those controlled by 2B004 
having all of the following characteristics:
    a.1. Capable of achieving a maximum working pressure of 10,000 psi 
(69 MPa) or greater;
    a.2. Designed to achieve and maintain a controlled thermal 
environment of 873 K (600  deg.C) or greater; and
    a.3. Possessing a chamber cavity with an inside diameter of 254 mm 
or greater;
    b. Chemical vapor deposition furnaces designed or modified for the 
densification of carbon-carbon composites.



2B115  Flow forming machines, and specially designed components therefor.

License Requirements

Reason for Control: MT, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
NP applies to 2B115.a.....................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definition: This entry controls only spin-forming machines 
combining the functions of spin-forming and flow-forming.
Items: a. Flow-forming and spin-forming machines, and specially designed 
components therefor, that according to the manufacturer's technical 
specifications, can be equipped with ``numerical control'' units or a 
computer control; and
    b. Having more than two axes that can be coordinated simultaneously 
for ``contouring control''.



2B116  Vibration test systems, equipment, and components therefor.

License Requirements


[[Page 522]]


Reason for Control: MT, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3,000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: NOTE: The term ``digital control'' refers to 
equipment, the functions of which are, partly or entirely, automatically 
controlled by stored and digitally coded electrical signals.
Items: a. Vibration test systems employing feedback or closed loop 
techniques and incorporating a digital controller, capable of vibrating 
a system at 10 g RMS or more over the entire range 20 Hz to 2,000 Hz and 
imparting forces of 50 kN (11,250 lbs.), measured ``bare table'', or 
greater;

    Note: NP controls in 2B116.a apply to electrodynamic vibration test 
systems, employing feedback or closed loop control techniques and 
incorporating a digital controller, capable of vibrating at 10 g RMS or 
more between 20 Hz and 2000 Hz and imparting forces of 50 kN (11,250 
lbs.) measured ``bare table,'' or greater.

    b. Digital controllers, combined with specially designed vibration 
test ``software'', with a real-time bandwidth greater than 5 kHz and 
designed for use with vibration test systems described in 2B116.a;
    c. Vibration thrusters (shaker units), with or without associated 
amplifiers, capable of imparting a force of 50 kN (11,250 lbs.), 
measured ``bare table'', or greater, and usable in vibration test 
systems described in 2B116.a;
    d. Test piece support structures and electronic units designed to 
combine multiple shaker units into a complete shaker system capable of 
providing an effective combined force of 50 kN, measured ``bare table'', 
or greater, and usable in vibration test systems described in 2B116.a.




2B204  ``Isostatic presses,'' not controlled by 2B004 or 2B104, capable of achieving a maximum working pressure of 10,000 psi (69 MPa) or greater and having a 
          chamber cavity with an inside diameter in excess of 152 mm (6 
          inches) and specially designed dies and moulds, and controls 
          therefor.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definition: N/A
Items: The list of items controlled is contained in the ECCN heading.




2B207  ``Robots'', and ``end-effectors'', other than those controlled by 2B007, specially designed to comply with safety standards applicable to handling 
          explosives (i.e., meeting electrical code ratings for high 
          explosives) and specially designed controllers therefor.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




2B215  Flow-forming and spin-forming machines other than those controlled by 2B115, and rotor-forming mandrels.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definition: This entry controls only spin-forming machines 
combining the functions of spin-forming and flow-forming.
Items: a. Having three or more rollers (active or guiding); and
    a.1. According to the manufacturer's technical specifications, can 
be equipped with

[[Page 523]]

``numerical control'' units or a computer control;
    b. Rotor-forming mandrels designed to form cylindrical rotors of 
inside diameter between 75 mm (3 in.) and 400 mm (16 in.).

    Note: This entry includes machines which have only a single roller 
designed to deform metal plus two auxiliary rollers which support the 
mandrel, but do not participate directly in the deformation process.




2B225  Remote manipulators that can be used to provide remote actions in radiochemical separation operations and hot cells.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: Remote manipulators provide translation of human 
operator actions to a remote operating arm and terminal fixture. They 
may be of a `master/slave' type or operated by joystick or keypad.
Items: a. Having a capability of penetrating 0.6 m or more of hot cell 
wall (through-the-wall operation); or
    b. Having a capability of bridging over the top of a hot cell wall 
with a thickness of 0.6 m or more (over-the-wall operation)




2B226  Vacuum and controlled environment (inert gas) induction) furnaces capable of operating above 1,123 K (850'C) and having induction coils 600 mm or less in 
          diameter and designed for power inputs of 5 kW or more, and 
          power supplies specially designed therefor with a specified 
          power output of 5 kW or more.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: This entry does not control furnaces designed for 
semiconductor wafer manufacturing or processing.
Items: The list of items controlled is contained in the ECCN heading.




2B227  Vacuum and controlled atmosphere metallurgical melting and casting furnaces, and specially configured computer control and monitoring systems therefor.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: This entry does not control furnaces designed for 
semiconductor wafer manufacturing or processing.
Items: a. Arc remelt and casting furnaces with consumable electrode 
capacities between 1,000 cm3 and 20,000 cm3, and 
capable of operating with melting temperatures above 1,973 K (1,700 
deg.C);
    b. Electron beam melting and plasma atomization and melting furnaces 
with a power of 50 kW or greater and capable of operating with melting 
temperatures above 1,473 K (1,200  deg.C).




2B228  Rotor fabrication and assembly equipment and bellows-forming mandrels and dies.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: N/A
Items: a. Rotor assembly equipment (e.g., precision mandrels, clamps, 
and shrink fit machines) for assembly of gas centrifuge rotor tube 
sections, baffles, and end caps.
    b. Rotor straightening equipment for alignment of gas centrifuge 
rotor tube sections to a common axis;


[[Page 524]]


    Technical Note: Normally such equipment will consist of precision 
measuring probes linked to a computer that subsequently controls the 
action of, for example, pneumatic rams used for aligning the rotor tube 
sections.

    c. Bellows-forming mandrels and dies for producing single-
convolution bellows (bellows made of high-strength aluminum alloys, 
maraging steel, or high-strength filamentary materials) that have all of 
the following dimensions:
    c.1. 75 mm to 400 mm (3 in. to 6 in.) inside diameter;
    c.2. 12.7 mm (0.5 in) or more in length; and
    c.3. Single convolution depth more than 2 mm (0.08 in.).



2B229  Centrifugal balancing machines, fixed or portable, horizontal or vertical.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Designed for balancing flexible rotors having a length of 600 
mm (24 in.) or more and having all of the following characteristics:
    a.1. A swing or journal diameter of 75 mm (3 in.) or more;
    a.2. Mass capability for 0.9 kg (2 lb.) to 23 kg (50 lb.); and
    a.3. Capable of balancing speed of more than 5,000 rpm;
    b. Designed for balancing hollow cylindrical rotor components, and 
having all of the following characteristics:
    b.1. A journal diameter of 75 mm (3 in.) or more;
    b.2. Mass capability from 0.9 kg (2 lb.) to 23 kg (50 lb.);
    b.3. Capable of balancing to a residual imbalance of 0.010 kg-mm/kg 
per plane or better; and
    b.4. Belt drive type.




2B230  Pressure transducers which are capable of measuring absolute pressure at any point in the range 0 to 13 kPa, with pressure sensing elements made of or 
          protected by nickel, nickel alloys with more than 60% nickel 
          by weight, aluminum or aluminum alloys.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: (1) Pressure transducers are devices that convert 
pressure measurements into an electrical signal. (2) For the purposes of 
this entry, ``accuracy'' includes non-linearity, hysteresis and 
repeatability at ambient temperature.
Items: a. Transducers with a full scale of less than 13 kPa and an 
accuracy of better than 1% of full scale;
    b. Transducers with a full scale of 13 kPa or greater and an 
accuracy of better than 130 Pa.




2B231  Vacuum pumps with an input throat size of 38 cm (15 in.) or greater with a pumping speed of 15,000 liters/second or greater and capable of producing an 
          ultimate vacuum better than 10\4\ Torr (1.33 x 10-4 
          mbar).

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: Vacuum pumps for gaseous diffusion separation process 
are subject to

[[Page 525]]

the export licensing authority of the Nuclear Regulatory Commission. 
(See 10 CFR part 110.)
Related Definition: (1) The ultimate vacuum is determined at the input 
of the pump with the input of the pump blocked off. (2) The pumping 
speed is determined at the measurement point with nitrogen gas or air.
Items: The list of items controlled is contained in the ECCN heading.




2B232  Multistage light gas guns or other high-velocity gun systems (coil, electromagnetic, electrothermal, or other advanced systems) capable of accelerating 
          projectiles to 2 km/s or greater and specialized components 
          therefor.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



2B290  ``Numerically controlled'' machine tools not controlled by 2B001.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in Sec. value
Related Controls: N/A
Related Definition: N/A
Items: a. Turning machines or combination turning/milling machines that 
are capable of machining diameters greater than 2.5 meters.
    b. [Reserved]



2B350  Chemical manufacturing facilities and equipment.

License Requirements

Reason for Control: CB, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
CB applies to entire entry................  CB Column 3                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: The controls in this entry do not apply to equipment 
that is; a.) specially designed for use in civil applications (e.g., 
food processing, pulp and paper processing, or water purification); AND 
b.) inappropriate, by the nature of its design, for use in storing, 
processing, producing or conducting and controlling the flow of chemical 
weapons precursors controlled by 1C350.
Related Definition: For purposes of this entry the term ``chemical 
warfare agents'' are those agents subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls. (See 22 CFR Part 121, Category XIV)
Items: a. Chemical processing equipment described in paragraph a.1 
having any of the flow contact surfaces described in paragraph a.2:
    a.1. Chemical processing equipment, as follows:
    a.1.a. Reaction vessels or reactors, with or without agitators, with 
a total internal (geometric) volume greater than 0.1 m3 (100 
liters) and less than 20 m3 (20,000 liters);
    a.1.b Agitators for use in reaction vessels or reactors described in 
2B350.a.1.a;
    a.1.c. Storage tanks, containers or receivers with a total internal 
(geometric) volume greater than 0.1 m3 (100 1);
    a.1.d. Heat exchangers or condensers with a heat transfer surface 
area less than 20 m2;
    a.1.e. Distillation or absorption columns having a diameter greater 
than 0.1 m;
    a.1.f. Multiple seal valves incorporating a leak detection port, 
bellows-seal valves, non-return (check) valves or diaphragm valves; or
    a.1.g. Multi-walled piping incorporating a leak detection port;
    a.2. Where all surfaces that come into direct contact with the 
chemical(s) being processed or contained are made from any of the 
following materials:
    a.2.a. Nickel, or alloys with more than 40% nickel by weight;
    a.2.b. Alloys with more than 25% nickel and 20% chromium by weight;
    a.2.c. Fluoropolymers;
    a.2.d. Glass or glass-lined (including vitrified or enamelled 
coating);
    a.2.e. Graphite (for heat exchangers or condensers, distillation or 
absorption columns, or multi-walled piping only);

[[Page 526]]

    a.2.f. Tantalum or tantalum alloys;
    a.2.g. Titanium or titanium alloys; or
    a.2.h. Zirconium or zirconium alloys.
    b. Remotely operated filling equipment in which all surfaces that 
come into direct contact with the chemical(s) being processed are made 
from any of the following materials:
    b.1. Nickel, or alloys with more than 40% nickel by weight; or
    b.2. Alloys with more than 25% nickel and 20% chromium by weight.
    c. Multi-seal, canned drive, magnetic, bellows, or diaphragm pumps, 
with manufacturer's specified maximum flow-rate greater than 
0.6m3/h, or vacuum pumps with the manufacturer's specified 
maximum flow-rate greater than 5 m3/h (under standard 
temperature (0  deg.C) and pressure (101.30 kPa) conditions) in which 
all surfaces that come into direct contact with the chemical(s) being 
processed are made from any of the following materials:
    c.1. Nickel, or alloys with more than 40% nickel by weight;
    c.2. Alloys with more than 25% nickel and 20% chromium by weight;
    c.3. Fluoropolymers;
    c.4. Glass or glass-lined (including vitrified or enamelled 
coating);
    c.5. Graphite;
    c.6. Tantalum or tantalum alloys;
    c.7. Titanium or titanium alloys;
    c.8. Zirconium or zirconium alloys;
    c.9. Ceramics; or
    c.10. Ferrosilicon.
    d. Incinerators that are designed to destroy chemical warfare 
agents, or chemical weapons precursors controlled by ECCN 1C350, having 
specially designed waste supply systems, special handling facilities 
with an average combustion chamber temperature greater than 1000  deg.C 
in which all surfaces in the waste supply system that come into direct 
contact with the waste products are made from or lined with any of the 
following materials:
    d.1. Nickel, or alloys with more than 40% nickel by weight;
    d.2. Alloys with more than 25% nickel and 20% chromium by weight; or
    d.3. Ceramics.



2B351  Toxic gas monitoring system; and dedicated detectors therefor.

License Requirements

Reason for Control: CB, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
CB applies to entire entry................  CB Column 3                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: a. Designed for continuous operation and usable for detecting 
chemical warfare agents controlled on the U.S. Munitions List (See 22 
CFR part 121) or chemical weapons precursors controlled by ECCN 1C350, 
or detecting organic compounds containing phosphorus, sulphur, fluorine, 
or chlorine, or their compounds, at a concentration less than 0.3 mg/
m3; and
    b. Designed for the detection of chemical compounds having a 
cholinesterase-inhibiting activity.



2B352  Biological equipment.

License Requirements

Reason for Control: CB, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
CB applies to entire entry................  CB Column 3                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: a. Complete containment facilities at P3 or P4 containment level;

    Technical Note: P3 or P4 (BL3, BL4, L3, L4) containment levels are 
as specified in the WHO Laboratory Biosafety Manual (Geneva, 1983).

    b. Fermenters capable of cultivation of pathogenic micro-organisms, 
viruses or for toxin production, without the propagation of aerosols, 
having a capacity equal to or greater than 100 liters.

    Technical Note: Fermenters include bioreactors, chemostats, and 
continuous-flow systems.

    c. Centrifugal separators capable of the continuous separation of 
pathogenic microorganisms, without the propagation of aerosols, and 
having all of the following characteristics:
    c.1. A flow rate greater than 100 liters per hour;
    c.2. Components of polished stainless steel or titanium;
    c.3. Double or multiple sealing joints within the stream containment 
area;
    c.4. Capable of in situ stream sterilization in a closed state.

    Technical Note: Centifugal separators include decanters.

    d. Cross-flow filtration equipment capable of continuous separation 
of pathogenic microorganisms, viruses, toxins, and cell cultures without 
the propagation of aerosols, having all of the following 
characteristics:

[[Page 527]]

    d.1. Equal to or greater than 5 square meters;
    d.2. Capable of in situ sterilization.
    e. Steam sterilizable freeze-drying equipment with a condenser 
capacity greater than 50 kgs. but less than 1,000 kgs. of ice in 24 
hours.
    f. Equipment that incorporates or is contained in P3 or P4 
containment housing, as follows:
    f.1. Independently ventilated protective full or half suits; and
    f.2. Class III biological safety cabinets or isolators with similar 
performance standards;

    Note: In this entry, isolators include flexible isolators, dry 
boxes, anaerobic chambers and glove boxes.

    g. Chambers designed for aerosol challenge testing with 
microorganisms, viruses, or toxins and having a capacity of 1 
m3 or greater.




2B985  Equipment specially designed for manufacturing shotgun shells; and ammunition hand-loading equipment for both cartridges and shotgun shells.

License Requirements

Reason for Control: UN

UN applies to entire entry. A license is required for items controlled 
by this entry to Cuba, Libya, North Korea and Rwanda. The Commerce 
Country Chart is not designed to determine licensing requirements for 
this entry. See part 746 of the EAR for additional information.

    Note: Exports from the U.S. and transhipments to Iran must be 
licensed by the Department of Treasury, Office of Foreign Assets 
Control. (See to Sec. 746.7 of the EAR for additional information on 
this requirement.)

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




2B991  Numerical control units for machine tools and ``numerically controlled'' machine tools, n.e.s

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: a. ``Numerical control'' units for machine tools:
    a.1. Having four interpolating axes that can be coordinated 
simultaneously for ``contouring control''; or
    a.2. Having two or more axes that can be coordinated simultaneously 
for ``contouring control'' and a minimum programmable increment better 
(less) than 0.001 mm;
    b. ``Numerically controlled'' machine tools that, according to the 
manufacturer's technical specifications, can be equipped with electronic 
devices for simultaneous ``contouring control'' in two or more axes and 
that have both of the following characteristics:
    b.1. Two or more axes that can be coordinated simultaneously for 
contouring control; and
    b.2. ``Positioning accuracies'', with all compensations available:
    b.2.a. Better than 0.020 mm, but no better than 0.004 mm along any 
linear axis (overall positioning) for grinding machines;
    b.2.b. Better than 0.020 mm, but no better than 0.006 mm along any 
linear axis (overall positioning) for milling machines; or
    b.2.c. Better than 0.020 mm, but no better than 0.010 mm along any 
linear axis (overall positioning) for turning machines.




2B992  Manual dimensional inspection machines with two or more axes, and measurement uncertainty equal to or less (better) than (3 + L/300) micrometer in any 
          axes (L measured length in mm).

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled:
Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




2B993  Gearmaking and/or finishing machinery not controlled by 2B003 capable of producing gears to a quality level of better than AGMA 11.

License Requirements


[[Page 528]]


Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled:
Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




2B994  ``Robots'' not controlled by 2B007 or 2B207 that are capable of employing feedback information in real-time processing from one or more sensors to 
          generate or modify ``programs'' or to generate or modify 
          numerical program data.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                         C. Materials [Reserved]

                               D. Software




2D001  ``Software'' specially designed or modified for the ``development'', ``production'' or ``use'' of equipment controlled by 2A001 to 2A007 or 2B001 to 
          2B009.

License Requirements

Reason for Control: NS, MT, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
MT applies to ``software'' for equipment                                
 controlled by 2B004......................  MT Column 1                 
NP applies to ``software'' for equipment                                
 controlled by 2B001, 2B004, 2B006, 2B007                               
 for NP reasons...........................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



2D002  Specific ``software.''

License Requirements

Reason for Control: NS, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
NP applies to 2D002.b.....................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: Sec. value
Related Controls: N/A
Related Definitions: N/A
Items: a. ``Software'' to provide ``adaptive control'' and having both 
of the following characteristics:
    a.1. For ``flexible manufacturing units'' (FMUs) which consist at 
least of equipment described in b.1 and b.2 of the definition of 
``flexible manufacturing unit'' contained in part 772 of the EAR; and
    a.2. Capable of generating or modifying, in ``real time 
processing'', programs or data by using the signals obtained 
simultaneously by means of at least two detection techniques, such as:
    a.2.a. Machine vision (optical ranging);
    a.2.b. Infrared imaging;
    a.2.c. Acoustical imaging (acoustical ranging);
    a.2.d. Tactile measurement;
    a.2.e. Inertial positioning;
    a.2.f. Force measurement;
    a.2.g. Torque measurement;

    Note: 2D002.a does not control ``software'' which only provides 
rescheduling of functionally identical equipment within ``flexible 
manufacturing units'' using pre-stored part programs and a pre-stored 
strategy for the distribution of the part programs.

    b. ``Software'' for electronic devices other than those described in 
2B001.a or b, which provides the ``numerical control'' capability of the 
equipment controlled by 2B001.




2D018   ``Software'' for the ``development'', ``production'' or ``use'' of equipment controlled by 2B018.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 

[[Page 529]]

                                                                        
MT applies to ``software'' for equipment                                
 controlled by 2B018 for MT reasons.......  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




2D101   ``Software'' for the ``development'', ``production'', or ``use'' of items controlled by 2B104, 2B115 or 2B116.

License Requirements

Reason for Control: MT, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




2D201   ``Software'' specially designed for the ``development'', ``production'' or ``use'' of items controlled by 2B204, 2B207, 2B215, 2B227 or 2B229.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




2D290   ``Software'' specially designed or modified for the ``development'', ``production'' or ``use'' of items controlled by 2A290, 2A291 or 2B290.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to ``software'' for equipment                                
 controlled by 2A291 or 2B290.............  NP Column 1                 
NP applies to ``software'' for equipment                                
 controlled by 2A290......................  NP Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




2D992   ``Software'' specially designed for the ``development'' or ``production'' of equipment controlled by 2B992.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




2D993   ``Software'' specially designed for the ``development'', ``production'', or ``use'' of equipment controlled by 2B991, 2B993, or 2B994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

[[Page 530]]




2D994   ``Software'' specially designed for the ``development'' or ``production'' of portable electric generators controlled by 2A994.

License Requirements

Reason for Control: AT

AT applies to entire entry. A license is required for items controlled 
by this entry to Cuba, Iran, Libya, and North Korea. The Commerce 
Country Chart is not designed to determine licensing requirements for 
this entry. See part 746 of the EAR for additional information.

    Note: Exports from the U.S. and transhipments to Iran must be 
licensed by the Department of Treasury, Office of Foreign Assets 
Control. (See Sec. 742.8 and Sec. 746.7 for additional information on 
this requirement.)

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                              E. Technology




2E001   ``Technology'' according to the General Technology Note for the ``development'' of items controlled by 2A (except 2A993 and 2A994) or 2B (except 2B018, 
          2B991 to 2B994) 2D (except 2D018, 2D992 to 2D994)

License Requirements

Reason for Control: NS, MT, NP, CB, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to ``technology'' for items                                  
 controlled by 2A001 to 2A006, 2B001 to                                 
 2B009, 2D001 or 2D002....................  NS Column 1                 
MT applies to ``technology'' for items                                  
 controlled by 2B004, 2B018 or 2B116,                                   
 2D001 or 2D101 for MT reasons............  MT Column 1                 
NP applies to ``technology'' for items                                  
 controlled by 2A292, 2A293, 2B001, 2B004,                              
 2B006, 2B007, 2B104, 2B215, 2B225, 2B226,                              
 2B228, 2B229, 2B231, 2B290, 2D001, 2D002                               
 or 2D201 for NP reasons..................  NP Column 1                 
NP applies to ``technology'' for equipment                              
 controlled by 2A290......................  NP Column 2                 
CB applies to ``technology'' for equipment                              
 controlled by 2B350 to 2B352.............  CB Column 3                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




2E002   ``Technology'' according to the General Technology Note for the ``production'' of items controlled by 2A (except 2A993 and 2A994) or 2B (except 2B018, 
          2B991 to 2B994).

License Requirements

Reason for Control: NS, MT, NP, CB, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to ``technology'' for equipment                              
 controlled by 2A001 to 2A006, 2B001 to                                 
 2B009....................................  NS Column 1                 
MT applies to ``technology'' for equipment                              
 controlled by 2B004, 2B018, and 2B116 for                              
 MT reasons...............................  MT Column 1                 
NP applies to ``technology'' for equipment                              
 controlled by 2A292, 2A293, 2B001, 2B004,                              
 2B006, 2B007, 2B104, 2B215, 2B225, 2B226,                              
 2B228, 2B229, 2B231, 2B290 NP reasons....  NP Column 1                 
NP applies to ``technology'' for equipment                              
 controlled by 2A290......................  NP Column 2                 
CB applies to ``technology'' for equipment                              
 controlled by 2B350 to 2b352.............  CB Column 3                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



2E003  Other ``technology''.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
NP applies to ``technology'' controlled by                              
 2E003.a.1 or a.3.........................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes, except 2E003.a.1, a.3, .b, and .d

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: a. ``Technology'':
    a.1  For the ``development'' of interactive graphics as an 
integrated part in ``numerical control'' units for preparation or 
modification of part programs;

[[Page 531]]

    a.2  For the ``development'' of generators of machine tool 
instructions (e.g., part programs) from design data residing inside 
``numerical control'' units;
    a.3  For the ``development'' of integration ``software'' for 
incorporation of expert systems for advanced decision support of shop 
floor operations into ``numerical control'' units;
    b. ``Technology'' for metal-working manufacturing processes, as 
follows:
    b.1. ``Technology'' for the design of tools, dies or fixtures 
specially designed for the following processes:
    b.1.a. ``Superplastic forming'';
    b.1.b. ``Diffusion bonding'';
    b.1.c. ``Direct-acting hydraulic pressing'';
    b.2. ``Technology'' consisting of process methods or parameters as 
listed below used to control:
    b.2.a. ``Superplastic forming'' of aluminium alloys, titanium alloys 
or ``superalloys'':
    b.2.a.1. Surface preparation;
    b.2.a.2. Strain rate;
    b.2.a.3. Temperature;
    b.2.a.4. Pressure;
    b.2.b. ``Diffusion bonding'' of ``superalloys'' or titanium alloys:
    b.2.b.1. Surface preparation;
    b.2.b.2. Temperature;
    b.2.b.3. Pressure;
    b.2.c. ``Direct-acting hydraulic pressing'' of aluminium alloys or 
titanium alloys:
    b.2.c.1. Pressure;
    b.2.c.2. Cycle time;
    b.2.d. ``Hot isostatic densification'' of titanium alloys, aluminium 
alloys or ``superalloys'':
    b.2.d.1. Temperature;
    b.2.d.2. Pressure;
    b.2.d.3. Cycle time;
    c. ``Technology'' for the ``development'' or ``production'' of 
hydraulic stretch-forming machines and dies therefor, for the 
manufacture of airframe structures;
    d. ``Technology'' for:
    d.1 The application of inorganic overlay coatings or inorganic 
surface modification coatings, specified in column 3 of the following 
Table;
    d.2 To non-electronic substrates, specified in column 2 of the 
following Table;
    d.3 By processes specified in column 1 of the following Table and 
defined in the Technical Note;

                         Category 2E--Materials Processing Table; Deposition Techniques                         
----------------------------------------------------------------------------------------------------------------
          1. Coating Process (1)                     2. Substrate                    3. Resultant Coating       
----------------------------------------------------------------------------------------------------------------
A. Chemical Vapor Deposition (CDV).......  ``Superalloys''.................  Aluminides for internal passages   
                                           Ceramics and Low-expansion        Silicides                          
                                            glasses (14).                    Carbides                           
                                                                             Dielectric layers (15)             
                                           Carbon-carbon, Ceramic, and       Silicides                          
                                            Metal matrix composites.         Carbides                           
                                                                             Refractory metals                  
                                                                             Mixtures thereof (4)               
                                                                             Dielectric layers (15)             
                                                                             Aluminides                         
                                                                             Alloyed aluminides (2)             
                                           Cemented tungsten carbide (16),   Carbides                           
                                            Silicon carbide.                 Tungsten                           
                                                                             Mixtures thereof (4)               
                                                                             Dielectric layers (15)             
                                           Molybdenum and Molybdenum alloys  Dielectric layers (15)             
                                           Beryllium and Beryllium alloys..  Dielectric layers (15)             
                                           Sensor window materials (9).....  Dielectric layers (15)             
B. Thermal-Evaporation Physical Vapor                                                                           
 Deposition (TE-PVD)                                                                                            
  1. Physical Vapor Deposition (PVD):      ``Superalloys''.................  Alloyed silicides                  
   Electron-Beam (EB-PVB).                                                   Alloyed aluminides (2)             
                                                                             MCrAlx (5)                         
                                                                             Modified zirconia (12)             
                                                                             Silicides                          
                                                                             Aluminides                         
                                                                             Mixtures thereof (4)               
                                           Ceramics and Low-expansion        Dielectric layers (15)             
                                            glasses (14).                                                       
                                           Corrosion resistant steel (7)...  MCrAlx (5)                         
                                                                             Modified zirconia (12)             
                                                                             Mixtures thereof (4)               
                                           Carbon-carbon, Ceramic and Metal  Silicides                          
                                            matrix composites.               Carbides                           
                                                                             Refractory metals                  
                                                                             Mixtures thereof (4)               
                                                                             Dielectric layers (15)             

[[Page 532]]

                                                                                                                
                                           Cemented tungsten carbide (16),   Carbides                           
                                            Silicon carbide.                 Tungsten                           
                                                                             Mixtures thereof (4)               
                                                                             Dielectric layers (15)             
                                           Molybdenum and Molybdenum alloys  Dielectric layers (15)             
                                           Beryllium and Beryllium alloys..  Dielectric layers (15)             
                                                                             Borides                            
                                           Sensor window materials (9).....  Dielectric layers (15)             
                                           Titanium alloys (13)............  Borides                            
                                                                             Nitrides                           
  2. Ion assisted resistive heating        Ceramics and Low-expansion        Dielectric layers (15)             
   Physical Vapor Deposition (Ion           glasses (14).                                                       
   Plating).                                                                                                    
                                           Carbon-carbon, Ceramic and Metal  Dielectric layers (15)             
                                            matrix composites.                                                  
                                           Cemented tungsten carbide (16),   Dielectric layers (15)             
                                            Silicon carbide.                                                    
                                           Molybdenum and Molybdenum alloys  Dielectric layers (15)             
                                           Beryllium and Beryllium alloys..  Dielectric layers (15)             
                                           Sensor window materials (9).....  Dielectric layers (15)             
  3. Physical Vapor Deposition: ``laser''  Ceramics and Low-expansion        Silicides                          
   evaporation.                             glasses (14).                    Dielectric layers (15)             
                                           Carbon-carbon, Ceramic and Metal  Dielectric layers (15)             
                                            matrix composites.                                                  
                                           Cemented tungsten carbide (16),   Dielectric layers (15)             
                                            Silicon carbide.                                                    
                                           Molybdenum and Molybdenum alloys  Dielectric layers (15)             
                                           Beryllium and Beryllium alloys..  Dielectric layers (15)             
                                           Sensor window materials (9).....  Dielectric layers (15)             
  4. Physical Vapor Deposition: cathodic   ``Superalloys''.................  Alloyed silicides                  
   arc discharge.                                                            Alloyed aluminides (2)             
                                                                             MCrAlx (5)                         
                                           Polymers (11) and Organic matrix  Borides                            
                                            composites.                      Carbides                           
                                                                             Nitrides                           
C. Pack cementation (see A above for out-                                                                       
 of-pack cementation) (10)...............  Carbon-carbon, Ceramic and Metal                                     
                                            matrix composites..............  Silicides                          
                                                                             Carbides                           
                                                                             Mixtures thereof (4)               
                                           Titanium alloys (13)............  Silicides                          
                                                                             Aluminides                         
                                                                             Alloyed aluminides (2)             
                                           Refractory metals and alloys (8)                                     
D. Plasma spraying.......................  Superalloys.....................  MCrAlx (5)                         
                                                                             Modified zirconia (12)             
                                                                             Mixtures thereof (4)               
                                                                             Abradable                          
                                                                             Nickel-Graphite                    
                                                                             Abradable                          
                                                                             Ni-Cr-Al-                          
                                                                             Bentonite                          
                                                                             Abradable                          
                                                                             Al-Si-Polyester                    
                                                                             Alloyed aluminides (2)             
                                           Aluminum alloys (6).............  MCrAlx (5)                         
                                                                             Modified zirconia (12)             
                                                                             Silicides                          
                                                                             Mixtures thereof (4)               
                                           Refractory metals and alloys (8)  Aluminides                         
                                                                             Silicides                          
                                                                             Carbides                           
                                           Corrosion resistant steel (7)...  Modified zirconia (12)             
                                                                             Mixtures thereof (4)               
                                           Titanium alloys (13)............  Carbides                           
                                                                             Aluminides                         
                                                                             Silicides                          
                                                                             Alloyed aluminides (2)             
                                                                             Abradable                          
                                                                             Nickel-Graphite                    
                                                                             Abradable                          
                                                                             Ni-Cr-Al-                          
                                                                             Bentonite                          
                                                                             Abradable                          
                                                                             Al-Si-Polyester                    

[[Page 533]]

                                                                                                                
E. Slurry Deposition.....................  Refractory metals and alloys (8)  Fused silicides                    
                                                                             Fused aluminides except for        
                                                                              resistance heating elements       
                                           Carbon-carbon, Ceramic and Metal  Silicides                          
                                            matrix composites.               Carbides                           
                                                                             Mixtures thereof (4)               
F. Sputter Deposition....................  ``Superalloys''.................  Alloyed silicides                  
                                                                             Alloyed aluminides (2)             
                                                                             Noble metal modified aluminides (3)
                                                                             MCrAlx (5)                         
                                                                             Modified zirconia (12)             
                                                                             Platinum                           
                                                                             Mixtures thereof (4)               
                                           Ceramics and Low-expansion        Silicides                          
                                            glasses (14).                    Platinum                           
                                                                             Mixtures thereof (4)               
                                                                             Dielectric layers (15)             
                                           Titanium alloys (13)............  Borides                            
                                                                             Nitrides                           
                                                                             Oxides                             
                                                                             Silicides                          
                                                                             Aluminides                         
                                                                             Alloyed aluminides (2)             
                                                                             Carbides                           
                                           Carbon-carbon, Ceramic and Metal  Silicides                          
                                            matrix composites.               Carbides                           
                                                                             Refractory metals                  
                                                                             Mixtures thereof (4)               
                                                                             Dielectric layers (15)             
                                           Cemented tungsten carbide (16),   Carbides                           
                                            Silicon carbide.                 Tungsten                           
                                                                             Mixtures thereof (4)               
                                                                             Dielectric layers (15)             
                                           Molybdenum and Molybdenum alloys  Dielectric layers (15)             
                                           Beryllium and Beryllium alloys..  Borides                            
                                                                             Dielectric layers (15)             
                                           Sensor window materials (9).....  Dielectric layers (15)             
                                           Refractory metals and alloys (8)  Aluminides                         
                                                                             Silicides                          
                                                                             Oxides                             
                                                                             Carbides                           
G. Ion Implantation......................  High temperature bearing steels.  Additions of Chromium, Tantalum, or
                                                                              Niobium (Columbium)               
                                           Titanium alloys (15)............  Borides                            
                                                                             Nitrides                           
                                           Beryllium and Beryllium alloys..  Borides                            
                                           Cemented tungsten carbide (16)..  Carbides                           
                                                                             Nitrides                           
----------------------------------------------------------------------------------------------------------------

                 Notes to Table on Deposition Techniques

    1. The term ``coating process'' includes coating repair and 
refurbishing as well as original coating.
    2. The term ``alloyed aluminide'' coating includes single or 
multiple-step coatings in which an element or elements are deposited 
prior to or during application of the aluminide coating, even if these 
elements are deposited by another coating process. It does not, however, 
include the multiple use of single-step pack cementation processes to 
achieve alloyed aluminides.
    3. The term `noble metal modified aluminide' coating includes 
multiple-step coatings in which the noble metal or noble metals are laid 
down by some other coating process prior to application of the aluminide 
coating.
    4. Mixtures consist of infiltrated material, graded compositions, 
co-deposits and multilayer deposits and are obtained by one or more of 
the coating processes specified in the Table.
    5. MCrAlX refers to a coating alloy where M equals cobalt, iron, 
nickel or combinations thereof and X equals hafnium, yttrium, silicon, 
tantalum in any amount or other intentional additions over 0.01 weight 
percent

[[Page 534]]

in various proportions and combinations, except:
    a. CoCrAlY coatings which contain less than 22 weight percent of 
chromium, less than 7 weight percent of aluminium and less than 2 weight 
percent of yttrium;
    b. CoCrAlY coatings which contain 22 to 24 weight percent of 
chromium, 10 to 12 weight percent of aluminium and 0.5 to 0.7 weight 
percent of yttrium; or
    c. NiCrAlY coatings which contain 21 to 23 weight percent of 
chromium, 10 to 12 weight percent of aluminium and 0.9 to 1.1 weight 
percent of yttrium.
    6. The term ``aluminium alloys'' refers to alloys having an ultimate 
tensile strength of 190 MPa or more measured at 293 K (20  deg.C).
    7. The term `corrosion resistant steel' refers to AISI (American 
Iron and Steel Institute) 300 series or equivalent standard steels.
    8. Refractory metals consist of the following metals and their 
alloys: niobium (columbium), molybdenum, tungsten and tantalum.
    9. Sensor window materials, as follows: alumina, silicon, germanium, 
zinc sulphide, zinc selenide, gallium arsenide and the following metal 
halides: potassium iodide, potassium fluoride, or sensor window 
materials of more than 40 mm diameter for thallium bromide and thallium 
chlorobromide.
    10. ``Technology'' for single-step pack cementation of solid 
airfoils is not controlled by this Category.
    11. Polymers, as follows: polyimide, polyester, polysulfide, 
polycarbonates and polyurethanes.
    12. Modified zirconia refers to additions of other metal oxides, 
e.g., calcia, magnesia, yttria, hafnia, rare earth oxides, etc., to 
zirconia in order to stabilize certain crystallographic phases and phase 
compositions. Thermal barrier coatings made of zirconia, modified with 
calcia or magnesia by mixing or fusion, are not controlled.
    13. Titanium alloys refers to aerospace alloys having an ultimate 
tensile strength of 900 MPa or more measured at 293 K (20  deg.C).
    14. Low-expansion glasses refers to glasses which have a coefficient 
of thermal expansion of 1 x 10-7 K-1 or less 
measured at 293 K (20  deg.C).
    15. Dielectric layers are coatings constructed of multi-layers of 
insulator materials in which the interference properties of a design 
composed of materials of various refractive indices are used to reflect, 
transmit or absorb various wavelength bands. Dielectric layers refers to 
more than four dielectric layers or dielectric/metal composite layers.
    16. Cemented tungsten carbide does not include cutting and forming 
tool materials consisting of tungsten carbide/(cobalt, nickel), titanium 
carbide/(cobalt, nickel), chromium carbide/nickel-chromium and chromium 
arbide/nickel.

            Technical Note to Table on Deposition Techniques

    Processes specified in Column 1 of the Table are defined as follows:
    a. Chemical Vapor Deposition (CVD) is an overlay coating or surface 
modification coating process wherein a metal, alloy, composite, 
dielectric or ceramic is deposited upon a heated substrate. Gaseous 
reactants are decomposed or combined in the vicinity of a substrate 
resulting in the deposition of the desired elemental, alloy or compound 
material on the substrate. Energy for this decomposition or chemical 
reaction process may be provided by the heat of the substrate, a glow 
discharge plasma, or ``laser'' irradiation.

    Note 1: CVD includes the following processes: directed gas flow out-
of-pack deposition, pulsating CVD, controlled nucleation thermal 
decomposition (CNTD), plasma enhanced or plasma assisted CVD processes.
    Note 2: Pack denotes a substrate immersed in a powder mixture.
    Note 3: The gaseous reactants used in the out-of-pack process are 
produced using the same basic reactions and parameters as the pack 
cementation process, except that the substrate to be coated is not in 
contact with the powder mixture.

    b. Thermal Evaporation-Physical Vapor Deposition (TE-PVD) is an 
overlay coating process conducted in a vacuum with a pressure less than 
0.1 Pa wherein a source of thermal energy is used to vaporize the 
coating material. This process results in the condensation, or 
deposition, of the evaporated species onto appropriately positioned 
substrates. The addition of gases to the vacuum chamber during the 
coating process to synthesize compound coatings is an ordinary 
modification of the process. The use of ion or electron beams, or 
plasma, to activate or assist the coating's deposition is also a common 
modification in this technique. The use of monitors to provide in-
process measurement of optical characteristics and thickness of coatings 
can be a feature of these processes. Specific TE-PVD processes are as 
follows:
    1. Electron Beam PVD uses an electron beam to heat and evaporate the 
material which forms the coating;
    2. Resistive Heating PVD employs electrically resistive heating 
sources capable of producing a controlled and uniform flux of evaporated 
coating species;
    3. ``Laser'' Evaporation uses either pulsed or continuous wave 
``laser'' beams to heat the material which forms the coating;
    4. Cathodic Arc Deposition employs a consumable cathode of the 
material which forms the coating and has an arc discharge established on 
the surface by a momentary contact of a ground trigger. Controlled 
motion of arcing erodes the cathode surface creating a highly ionized 
plasma. The anode can be either a cone attached to the periphery of the 
cathode, through an insulator, or the chamber. Substrate biasing is used 
for non line-of-sight deposition.


[[Page 535]]


    Note: This definition does not include random cathodic arc 
deposition with non-biased substrates.

    c. Ion Plating is a special modification of a general TE-PVD process 
in which a plasma or an ion source is used to ionize the species to be 
deposited, and a negative bias is applied to the substrate in order to 
facilitate the extraction of the species to be deposited from the 
plasma. The introduction of reactive species, evaporation of solids 
within the process chamber, and the use of monitors to provide in-
process measurement of optical characteristics and thicknesses of 
coatings are ordinary modifications of the process.
    d. Pack Cementation is a surface modification coating or overlay 
coating process wherein a substrate is immersed in a powder mixture (a 
pack), that consists of:
    1. The metallic powders that are to be deposited (usually aluminum, 
chromium, silicon or combinations thereof);
    2. An activator (normally a halide salt); and
    3. An inert powder, most frequently alumina. The substrate and 
powder mixture is contained within a retort which is heated to between 
1,030 K (757  deg.C) to 1,375 K (1,102  deg.C) for sufficient time to 
deposit the coating.
    e. Plasma Spraying is an overlay coating process wherein a gun 
(spray torch) which produces and controls a plasma accepts powder or 
wire coating materials, melts them and propels them towards a substrate, 
whereon an integrally bonded coating is formed. Plasma spraying 
constitutes either low pressure plasma spraying or high velocity plasma 
spraying carried out underwater.

    Note 1: Low pressure means less than ambient atmospheric pressure.
    Note 2: High velocity refers to nozzle-exit gas velocity exceeding 
750 m/s calculated at 293 K (20  deg.C) at 0.1 MPa.

    f. Slurry Deposition is a surface modification coating or overlay 
coating process wherein a metallic or ceramic powder with an organic 
binder is suspended in a liquid and is applied to a substrate by either 
spraying, dipping or painting, subsequent air or oven drying, and heat 
treatment to obtain the desired coating.
    g. Sputter Deposition is an overlay coating process based on a 
momentum transfer phenomenon, wherein positive ions are accelerated by 
an electric field towards the surface of a target (coating material). 
The kinetic energy of the impacting ions is sufficient to cause target 
surface atoms to be released and deposited on an appropriately 
positioned substrate.

    Note 1: The Table refers only to triode, magnetron or reactive 
sputter deposition which is used to increase adhesion of the coating and 
rate of deposition and to radio frequency (RF) augmented sputter 
deposition used to permit vaporization of non-metallic coating 
materials.
    Note 2: Low-energy ion beams (less than 5 keV) can be used to 
activate the deposition.

    h. Ion Implantation is a surface modification coating process in 
which the element to be alloyed is ionized, accelerated through a 
potential gradient and implanted into the surface region of the 
substrate. This includes processes in which ion implantation is 
performed simultaneously with electron beam physical vapor deposition or 
sputter deposition.

  Accompanying Technical Information to Table on Deposition Techniques

    1. ``Technology'' for pretreatments of the substrates listed in the 
Table, as follows:
    a. Chemical stripping and cleaning bath cycle parameters, as 
follows:
    1. Bath composition;
    a. For the removal of old or defective coating corrosion product or 
foreign deposits;
    b. For preparation of virgin substrates;
    2. Time in bath;
    3. Temperature of bath;
    4. Number and sequences of wash cycles;
    b. Visual and macroscopic criteria for acceptance of the cleaned 
part;
    c. Heat treatment cycle parameters, as follows:
    1. Atmosphere parameters, as follows:
    a. Composition of the atmosphere;
    b. Pressure of the atmosphere;
    2. Temperature for heat treatment;
    3. Time of heat treatment;
    d. Substrate surface preparation parameters, as follows:
    1. Grit blasting parameters, as follows:
    a. Grit composition;
    b. Grit size and shape;
    c. Grit velocity;
    2. Time and sequence of cleaning cycle after grit blast;
    3. Surface finish parameters;
    e. Masking technique parameters, as follows:
    1. Material of mask;
    2. Location of mask;
    2. ``Technology'' for in situ quality assurance techniques for 
evaluation of the coating processes listed in the Table, as follows:
    a. Atmosphere parameters, as follows:
    1. Composition of the atmosphere;
    2. Pressure of the atmosphere;
    b. Time parameters;
    c. Temperature parameters;
    d. Thickness parameters;
    e. Index of refraction parameters;
    3. ``Technology'' for post deposition treatments of the coated 
substrates listed in the Table, as follows:
    a. Shot peening parameters, as follows:
    1. Shot composition;
    2. Shot size;
    3. Shot velocity;
    b. Post shot peening cleaning parameters;
    c. Heat treatment cycle parameters, as follows:
    1. Atmosphere parameters, as follows:
    a. Composition of the atmosphere;
    b. Pressure of the atmosphere;
    2. Time-temperature cycles;

[[Page 536]]

    d. Post heat treatment visual and macroscopic criteria for 
acceptance of the coated substrates;
    4. ``Technology'' for quality assurance techniques for the 
evaluation of the coated substrates listed in the Table, as follows:
    a. Statistical sampling criteria;
    b. Microscopic criteria for:
    1. Magnification;
    2. Coating thickness uniformity;
    3. Coating integrity;
    4. Coating composition;
    5. Coating and substrates bonding;
    6. Microstructural uniformity.
    c. Criteria for optical properties assessment:
    1. Reflectance;
    2. Transmission;
    3. Absorption;
    4. Scatter;
    5. ``Technology'' and parameters related to specific coating and 
surface modification processes listed in the Table, as follows:
    a. For Chemical Vapor Deposition:
    1. Coating source composition and formulation;
    2. Carrier gas composition;
    3. Substrate temperature;
    4. Time-temperature-pressure cycles;
    5. Gas control and part manipulation;
    b. For Thermal Evaporation--Physical Vapor Deposition:
    1. Ingot or coating material source composition;
    2. Substrate temperature;
    3. Reactive gas composition;
    4. Ingot feed rate or material vaporization rate;
    5. Time-temperature-pressure cycles;
    6. Beam and part manipulation;
    7. ``Laser'' parameters, as follows:
    a. Wave length;
    b. Power density;
    c. Pulse length;
    d. Repetition ratio;
    e. Source;
    f. Substrate orientation;
    c. For Pack Cementation:
    1. Pack composition and formulation;
    2. Carrier gas composition;
    3. Time-temperature-pressure cycles;
    d. For Plasma Spraying:
    1. Powder composition, preparation and size distributions;
    2. Feed gas composition and parameters;
    3. Substrate temperature;
    4. Gun power parameters;
    5. Spray distance;
    6. Spray angle;
    7. Cover gas composition, pressure and flow rates;
    8. Gun control and part manipulation;
    e. For Sputter Deposition:
    1. Target composition and fabrication;
    2. Geometrical positioning of part and target;
    3. Reactive gas composition;
    4. Electrical bias;
    5. Time-temperature-pressure cycles;
    6. Triode power;
    7. Part manipulation;
    f. For Ion Implantation:
    1. Beam control and part manipulation;
    2. Ion source design details;
    3. Control techniques for ion beam and deposition rate parameters;
    4. Time-temperature-pressure cycles.
    g. For Ion Plating:
    1. Beam control and part manipulation;
    2. Ion source design details;
    3. Control techniques for ion beam and deposition rate parameters;
    4. Time-temperature-pressure cycles;
    5. Coating material feed rate and vaporization rate;
    6. Substrate temperature;
    7. Substrate bias parameters.



2E018  ``Technology'' for the ``use'' of equipment controlled by 2B018.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
MT applies to ``technology'' for equipment                              
 controlled by 2B018 for MT reasons.......  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




2E101  ``Technology'' according to the General Technology Note for the ``use'' of items or ``software'' controlled by 2B004, 2B104, 2B115, 2B116 or 2D101.

License Requirements

Reason for Control: MT, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
NP applies to 2B004 and 2B104.a...........  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

[[Page 537]]




2E201  ``Technology'' according to the General Technology Note for the ``use'' of items or ``software'' controlled by 2A225, 2A226, 2B001, 2B006, 2B007, 2B204, 
          2B207, 2B215, 2B225 to 2B232 or 2D201 for NP reasons.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




2E290  ``Technology'' according to the General Technology Note for the ``use'' of items controlled by 2A290, 2A291, 2A292, 2A293, 2A294, 29295 and 2B290.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to ``technology'' for equipment                              
 controlled by 2A291 to 2A295 or 2B290....  NP Column 1                 
NP applies to ``technology'' for equipment                              
 controlled by 2A290......................  NP Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



2E301  ``Technology'' for ``use'' of items controlled by 2B350, 2B351 and 2B352.

License Requirements

Reason for Control: CB, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
CB applies to entire entry................  CB Column 3                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The lists of items controlled are contained in the ECCN headings.



2E993  ``Technology'' for the ``use'' of equipment controlled by 2B991, 2B992, 2B993, or 2B994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



2E994  ``Technology'' for the ``use'' of portable electric generators controlled by 2A994.

License Requirements

Reason for Control: AT

AT applies to entire entry. A license is required for items controlled 
by this entry to Cuba, Iran, Libya, and North Korea. The Commerce 
Country Chart is not designed to determine licensing requirements for 
this entry. See part 746 of the EAR for additional information.

    Note: Exports from the U.S. and transshipments to Iran must be 
licensed by the Department of Treasury, Office of Foreign Assets 
Control. (See Sec. 742.8 and Sec. 746.7 of the EAR for additional 
information on this requirement.)

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

EAR99  Items subject to the EAR that are not elsewhere specified in this 
          CCL Category or in any other category in the CCL are 
          designated by the number EAR99.

                      Advisory Notes for Category 2

    Advisory Note 1: Licenses are likely to be approved, as 
administrative exceptions, to satisfactory end-users in the People's 
Republic of China of machine tools for milling controlled by 2B001.c.1 
to civil end-users other

[[Page 538]]

than nuclear and aerospace, provided that they are not controlled by 
2B001.c.1.b.1, c.1.b.4, c.1.b.5, or c.1.b.6.
    Advisory Note 2: Licenses are likely to be approved, as 
administrative exceptions, to satisfactory end-users in Country Group 
D:1 of equipment controlled by 2B006.b.1 to civil end-users not engaged 
in aerospace or nuclear activities.

       Category 3--Electronics Design, Development and Production

                 A. Equipment, Assemblies and Components

    Note 1: The control status of equipment, devices and components 
described in Category 3A, other than those described in 3A001.a.3 to 
a.10, or 3A001.a.12, that are specially designed for or that have the 
same functional characteristics as other equipment are determined by the 
control status of the other equipment.
    Note 2: The control status of integrated circuits described in 
3A001.a.3 to a.9 or 3A001.a.12 that are unalterably programmed or 
designed for a specific function for other equipment is determined by 
the control status of the other equipment.

    N.B.: When the manufacturer or applicant cannot determine the 
control status of the other equipment, the control status of the 
integrated circuits is determined in 3A001.a.3 to a.9 or 3A001.a.12. If 
the integrated circuit is a silicon-based ``microcomputer microcircuit'' 
or a microcontroller microcircuit described in 3A001.a.3 having an 
operand (data) word length of 8 bits or less, the control status of the 
integrated circuit is determined in 3A001.a.3.



3A001  Electronic devices and components.

License Requirements

Reason for Control: NS, MT, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
MT applies to 3A001.a.1.a.................  MT Column 1                 
NP applies to 3A001.e.5...................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $1500: 3A001.c; $3000: 3A001.b.1, b.2, b.3, .d, .e and .f; $5000: 
3A001.a, and .b.4 to b.7
GBS: Yes, except 3A001.a.1, b.1, b.3 to b.7, c to f
CIV: Yes, except 3A001.a.1, a.2, a.5, a.6, a.9, a.10, and a.12, .b, .c, 
.d, .e, and .f

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: a. General purpose integrated circuits, as follows:

    Notes: 1. The control status of wafers (finished or unfinished), in 
which the function has been determined, is to be evaluated against the 
parameters of 3A001.a.
    2. Integrated circuits include the following types:
    ``Monolithic integrated circuits'';
    ``Hybrid integrated circuits'';
    ``Multichip integrated circuits'';
    ``Film type integrated circuits'', including silicon-on-sapphire 
integrated circuits;
    ``Optical integrated circuits''.

    a.1. Integrated circuits, designed or rated as radiation hardened to 
withstand either of the following:
    a.1.a. A total dose of 5 x 10\5\ Rads (Si), or higher; or
    a.1.b. A dose rate upset of 5 x 10\8\ Rads (Si)/s or higher;
    a.2. Integrated circuits described in 3A00l.a.3 to a.10 or 
3A00l.a.12, as follow:
    a.2.a. Rated for operation at an ambient temperature above 398 K 
(+125  deg.C);
    a.2.b. Rated for operation at an ambient temperature below 218 K 
(-55  deg.C); or
    a.2.c. Rated for operation over the entire ambient temperature range 
from 218 K (-55  deg.C) to 398 K (+125  deg.C);

    Note: 3A00l.a.2 does not apply to integrated circuits for civil 
automobile or railway train applications.

    a.3. ``Microprocessor microcircuits'', ``microcomputer 
microcircuits'' and microcontroller microcircuits, having any of the 
following:

    Note: 3A00l.a.3 includes digital signal processors, digital array 
processors and digital coprocessors.

    a.3.a An arithmetic logic unit with an access width of 32 bit or 
more and a ``composite theoretical performance'' (``CTP'') of 80 million 
theoretical operations per second (Mtops) or more;
    a.3.b. Manufactured from a compound semiconductor and operating a 
clock frequency exceeding 40 MHz; or
    a.3.c. More than one data or instruction bus or serial communication 
port for external interconnection in a parallel processor with a 
transfer rate exceeding 2.5 Mbyte/s;
    a.4. Electrically erasable programmable read-only memories 
(EEPROMs), static random-access memories (SRAMs), and storage integrated 
circuits manufactured from a compound semiconductor, as follows:
    a.4.a. Electrically erasable programmable read-only memories 
(EEPROMs) with a storage capacity:
    a.4.a.1. Exceeding 16 Mbit per package for flash memory types; or
    a.4.a.2. Exceeding either of the following limits for all other 
EEPROM types:
    a.4.a.2.a. 4 Mbit per package; or
    a.4.a.2.b. 1 Mbit per package and having a maximum access time of 
less than 80 ns;
    a.4.b. Static random-access memories (SRAMs) with a storage 
capacity:
    a.4.b.1. Exceeding 4 Mbit per package; or
    b.4.b.2. Exceeding 1 Mbit per package and having a maximum access 
time of less than 20 ns;

[[Page 539]]

    a.4.c. Storage integrated circuits manufactured from a compound 
semiconductor;
    a.5. Analog-to-digital and digital-to-analog converter integrated 
circuits, as follows:
    a.5.a. Analog-to-digital converters having any of the following:
    a.5.a.1. A resolution of 8 bits or more, but less than 12 bits, with 
a total conversion time to maximum resolution of less than 10 ns;
    a.5.a.2. A resolution of 12 bits with a total conversion time to 
maximum resolution of less than 200 ns; or
    a.5.a.3. A resolution of more than 12 bits with a total conversion 
time to maximum resolution of less than 2 microseconds;
    a.5.b. Digital-to-analog converters with a resolution of 12 bits or 
more, and a ``settling time'' of less than 10 ns;
    a.6. Electro-optical or ``optical integrated circuits'' for ``signal 
processing'' having all of the following:
    a.6.a. One or more internal ``laser'' diodes;
    a.6.b. One or more internal light detecting elements; and
    a.6.c. Optical waveguides;
    a.7. Field programmable gate arrays having either of the following:
    a.7.a. An equivalent usable gate count of more than 30,000 (2 input 
gates); or
    a.7.b. A typical ``basic gate propagation delay time'' of less than 
0.4 ns;
    a.8. Field programmable logic arrays having either of the following:
    a.8.a. An equivalent usable gate count of more than 30,000 (2 input 
gates); or
    b. A toggle frequency exceeding 133 MHz;
    a.9. Neural network integrated circuits;
    a.10. Custom integrated circuits for which either the function is 
unknown, or the control status of the equipment in which the integrated 
circuits will be used is unknown to the manufacturer, having any of the 
following:
    a.10.a. More than 144 terminals;
    a.10.b. A typical ``basic gate propagation delay time'' of less than 
0.4 ns; or
    a.10.c. An operating frequency exceeding 3 GHz;
    a.11. Digital integrated circuits, other than those described in 
3A001.a.3 to a.l0 or 3A001.a.12, based upon any compound semiconductor 
and having either of the following:
    a.11.a. An equivalent gate count of more than 300 (2 input gates); 
or
    a.11.b. A toggle frequency exceeding 1.2 GHz;
    a.12. Fast Fourier Transform (FFT) processors having any of the 
following characteristics:
    a.12.a. A rated execution time for a 1,024 point complex FFT of less 
than 1 ms;
    a.12.b. A rated execution time for an N-point complex FFT of other 
than 1,024 points of less than N log2 N/10,240 ms, where N is 
the number of points; or
    a.12.c. A butterfly throughput of more than 5.12 MHz;
    b. Microwave or millimeter wave devices:
    b.1. Electronic vacuum tubes and cathodes, as follows:
    (Frequency agile magnetron tubes are subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls. See 22 CFR part 121, Category XI.)

    Note: 3A001.b.1 does not control tubes designed or rated to operate 
in the Standard Civil Telecommunications Bands at frequencies not 
exceeding 31 GHz.

    b.1.a. Traveling wave tubes, pulsed or continuous wave, as follows:
    b.1.a.1 Operating at frequencies higher than 31 GHz;
    b.1.a.2. Having a cathode heater element with a turn on time to 
rated RF power of less than 3 seconds;
    b.1.a.3. Coupled cavity tubes, or derivatives thereof, with an 
``instantaneous bandwidth'' of more than 7% or a peak power exceeding 
2.5 kW;
    b.1.a.4. Helix tubes, or derivatives thereof, with any of the 
following characteristics:
    b.1.a.4.a. An ``instantaneous bandwidth'' of more than one octave, 
and average power (expressed in kW) times frequency (expressed in GHz) 
of more than 0.5;
    b.1.a.4.b. An ``instantaneous bandwidth'' of one octave or less, and 
average power (expressed in kW) times frequency (expressed in GHz) of 
more than 1; or
    b.1.a.4.c. ``Space qualified'';
    b.1.b. Crossed-field amplifier tubes with a gain of more than 17 dB;
    b.1.c. Impregnated cathodes for electronic tubes, with either of the 
following:
    b.1.c.1. Having a turn on time to rated emission of less than 3 
seconds; or
    b.1.c.2. Producing a continuous emission current density at rated 
operating conditions exceeding 5 A/cm2;
    b.2. Microwave integrated circuits or modules containing 
``monolithic integrated circuits'' operating at frequencies exceeding 3 
GHz;

    Note: 3A001.b.2 does not control circuits or modules for equipment 
designed or rated to operate in the Standard Civil Telecommunications 
Bands at frequencies not exceeding 31 GHz.

    b.3. Microwave transistors rated for operation at frequencies 
exceeding 31 GHz;
    b.4. Microwave solid state amplifiers, as follows:
    b.4.a. Operating at frequencies exceeding 10.5 GHz and having an 
``instantaneous bandwidth'' of more than half an octave; or
    b.4.b. Operating at frequencies exceeding 31 GHz;
    b.5. Electronically or magnetically tunable band-pass or band-stop 
filters having more than 5 tunable resonators capable of tuning across a 
1.5:1 frequency band (fmax/fmin) in less than 10 
microseconds with either:

[[Page 540]]

    b.5.a. A band-pass bandwidth of more than 0.5 % of center frequency; 
or
    b.5.b. A band-stop bandwidth of less than 0.5 percent of center 
frequency;
    b.6. Microwave assemblies capable of operating at frequencies 
exceeding 31 GHz;
    b.7. Mixers and converters designed to extend the frequency range of 
equipment described in 3A002.c, 3A002.e or 3A002.f beyond the control 
limits stated therein;
    c. Acoustic wave devices, as follows, and specially designed 
components therefor:
    c.1. Surface acoustic wave and surface skimming (shallow bulk) 
acoustic wave devices (i.e., ``signal processing'' devices employing 
elastic waves in materials), having any of the following:
    c.1.a. A carrier frequency exceeding 2.5 GHz;
    c.1.b. A carrier frequency 2.5 GHz or less, and:
    c.1.b.1. A frequency side-lobe rejection exceeding 55 dB;
    c.1.b.2. A product of the maximum delay time and the bandwidth (time 
in microseconds and bandwidth in MHz) of more than 100; or
    c.1.b.3. A dispersive delay of more than 10 microseconds; or
    c.1.c. A carrier frequency exceeding 1 GHz and a bandwidth of 250 
MHz or more;
    c.2. Bulk (volume) acoustic wave devices (i.e., ``signal 
processing'' devices employing elastic waves) that permit the direct 
processing of signals at frequencies exceeding 1 GHz;
    c.3. Acoustic-optic ``signal processing'' devices employing 
interaction between acoustic waves (bulk wave or surface wave) and light 
waves that permit the direct processing of signals or images, including 
spectral analysis, correlation or convolution;
    d. Electronic devices or circuits containing components, 
manufactured from ``superconductive'' materials specially designed for 
operation at temperatures below the ``critical temperature'' of at least 
one of the ``superconductive'' constituents, with any of the following:
    d.1. Electromagnetic amplification:
    d.1.a. At frequencies equal to or less than 31 GHz with a noise 
figure of less than 0.5 dB; or
    d.1.b. At frequencies exceeding 31 GHz;
    d.2. Current switching for digital circuits using 
``superconductive'' gates with a product of delay time per gate (in 
seconds) and power dissipation per gate (in watts) of less than 
10-14 J; or
    d.3. Frequency selection at all frequencies using resonant circuits 
with Q-values exceeding 10,000;
    e. High energy devices, as follows:
    e.1. Batteries, as follows:

    Note: 3A001.e.1 does not control batteries with volumes equal to or 
less than 27 cm3 (e.g., standard C-cells or R 14 batteries).

    e.1.a. Primary cells and batteries having an energy density 
exceeding 480 Wh/kg and rated for operation in the temperature range 
from below 243 K (-30  deg.C) to above 343 K (70  deg.C);
    e.1.b. Rechargeable cells and batteries having an energy density 
exceeding 150 Wh/kg after 75 charge/discharge cycles at a discharge 
current equal to C/5 hours (C being the nominal capacity in ampere 
hours) when operating in the temperature range from below 253 K (-20 
deg.C) to above 333 K (60  deg.C);

    Technical Note: Energy density is obtained by multiplying the 
average power in watts (average voltage in volts times average current 
in amperes) by the duration of the discharge in hours to 75% of the open 
circuit voltage divided by the total mass of the cell (or battery) in 
kg.

    e.1.c. ``Space qualified'' and radiation hardened photovoltaic 
arrays with a specific power exceeding 160 W/m2 at an 
operating temperature of 301 K (28  deg.C) under a tungsten illumination 
of 1 kW/m2 at 2,800 K (2,527  deg.C);
    e.2. High energy storage capacitors, as follows:
    e.2.a. Capacitors with a repetition rate of less than 10 Hz (single 
shot capacitors) having all of the following:
    e.2.a.1. A voltage rating equal, to or more than 5 kV;
    e.2.a.2. An energy density equal to or more than 250 J/kg; and
    e.2.a.3. A total energy equal to or more than 25 kJ;
    e.2.b. Capacitors with a repetition rate of 10 Hz or more 
(repetition rated capacitors) having all of the following:
    e.2.b.1. A voltage rating equal to or more than 5 kv;
    e.2.b.2. An energy density equal to or more than 50 J/kg;
    e.2.b.3. A total energy equal to or more than 100 J; and
    e.2.b.4. A charge/discharge cycle life equal to or more than 10,000;
    e.3. ``Superconductive'' electromagnets or solenoids specially 
designed to be fully charged or discharged in less than one second, 
having all of the following:
    e.3.a. Energy delivered during the discharge exceeding 10 kJ in the 
first second;
    e.3.b. Inner diameter of the current carrying windings of more than 
250 mm; and
    e.3.c. Rated for a magnetic induction of more than 8 T or ``overall 
current density'' in the winding of more than 300 A/mm2;

    Note: 3A001.e.3. does not control ``superconductive'' electromagnets 
or solenoids specially designed for Magnetic Resonance Imaging (MRI) 
medical equipment.

    e.4. Circuits or systems for electromagnetic energy storage, 
containing components manufactured from ``superconductive'' materials 
specially designed for operation at temperatures below the ``critical 
temperature of at least one of their ``superconductive'' constituents, 
having all of the following:

[[Page 541]]

    e.4.a. Resonant operating frequencies exceeding 1 MHz;
    e.4.b. A stored energy density of 1 MJ/m 3 or more; and
    3.4.c. A discharge time of less than 1 ms; e.5. Flash discharge type 
X-ray systems, and tubes therefor, having all of the following:
    e.5.a. A peak power exceeding 500 MW;
    e.5.b. An output voltage exceeding 500 kV; and
    e.5.c. A pulse width of less than 0.2 microsecond;
    f. Rotary input type shaft absolute position encoders having either 
of the following:
    f.1. A resolution of better than 1 part in 265,000 (18 bit 
resolution) of full scale; or
    f.2. An accuracy better than 2.5 seconds of arc.



3A002  General purpose electronic equipment.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000: 3A002.a, .e, .f, .g; $5000: 3A002.b to d, and 3A002.h
GBS: Yes for 3A002.a.1. 3A002.h and a.2, .b, d.2, as described in 
Advisory Note 1 to Category 3
CIV: Yes for 3A002.h, and a.1, a.2, .b, d.2, as described in Advisory 
Note 1 to Category 3

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: a. Recording equipment, as follows, and specially designed test 
tape therefor:
    a.1. Analog instrumentation magnetic tape recorders, including those 
permitting the recording of digital signals (e.g., using a high density 
digital recording (HDDR) module), having any of the following:
    a.1.a. A bandwidth exceeding 4 MHz per electronic channel or track;
    a.1.b. A bandwidth exceeding 2 MHz per electronic channel or track 
and having more than 42 tracks; or
    a.1.c. A time displacement (base) error, measured in accordance with 
applicable Inter Range Instrumentation Group (IRIG) or Electronic 
Industries Association (EIA) documents, of less than 0.1 
microsecond;
    a.2. Digital video magnetic tape recorders having a maximum digital 
interface transfer rate exceeding 180 Mbit/s, except those specially 
designed for television recording using a signal format as standardized 
or recommended by the International Radio Consultative Committee (CCIR) 
or the International Technical Commission (IEC) for civil television 
applications;
    a.3. Digital instrumentation magnetic tape data recorders employing 
helical scan techniques or fixed head techniques, having either of the 
following characteristics:
    a.3.a. A maximum digital interface transfer rate exceeding 175 
Mbits/s; or
    a.3. b. ``Space qualified'';

    Note: 3A002.a.3 does not control analog magnetic tape recorders 
equipped with HDDR conversion electronics and configured to record only 
digital data.

    a.4. Equipment, with a maximum digital interface transfer rate 
exceeding 175 Mbit/s, designed to convert digital video magnetic tape 
recorders for use as digital instrumentation data recorders;
    a.5. Waveform digitizers and transient recorders with both of the 
following characteristics:
    a.5.a. Digitizing rates equal to or more than 200 million samples 
per second and a resolution of 10 bits or more; and
    a.5.b. A continuous throughput of 2 Gbits/s or more;

    Technical Note: For those instruments with a parallel bus 
architecture, the continuous throughput rates the highest word rate 
multiplied by the number of bits in a word. Continuous throughput is the 
fastest data rate the instrument can output to mass storage without the 
loss of any information while sustaining the sampling rate and analog-
to-digital conversion.

    b. ``Frequency synthesizer'' ``electronic assemblies'' having a 
``frequency switching time'' from one selected frequency to another of 
less than 1 ms;
    c. ``Signal analyzers'', as follows:
    c.1. Capable of analyzing frequencies exceeding 31 GHz;
    c.2. ``Dynamic signal analyzers'' with a ``real-time bandwidth'' 
exceeding 25.6 kHz, except those using only constant percentage 
bandwidth filters (also known as octave or fractional octave filters);
    d. Frequency synthesized signal generators producing output 
frequencies, the accuracy and short term and long term stability of 
which are controlled, derived from or disciplined by the internal master 
frequency, and having any of the following:
    d.1. A maximum synthesized frequency exceeding 31 GHz;
    d.2. A ``frequency switching time'' from one selected frequency to 
another of less than 1 ms; or
    d.3. A single sideband (SSB) phase noise better than 
-(126+20log10F-20 log10f) in dBc/Hz, where F is 
the off-set from the operating frequency in Hz and f is the operating 
frequency in MHz;

    Note: 3A002.d does not control equipment in which the output 
frequency is either produced by the addition or subtraction of two or 
more crystal oscillator frequencies, or by an addition or subtraction 
followed by a multiplication of the result.

    e. Network analyzers with a maximum operating frequency exceeding 31 
GHz;


[[Page 542]]


    Note: 3A002.e does not control ``swept frequency network analyzers'' 
with a maximum operating frequency not exceeding 40 GHz and that do not 
contain a data bus for remote control interfacing.

    f. Microwave test receivers with both of the following:
    f.1. A maximum operating frequency exceeding 31 GHz; and
    f.2. Capable of measuring amplitude and phase simultaneously;
    g. Atomic frequency standards having either of the following 
characteristics:
    g.1. Long term stability (aging) less (better) than 1 x 10 
-11/month; or
    g.2. ``Space qualified'';

    Note: 3A002.g.1 does not control non-``space qualified'' rubidium 
standards.

    h. Emulators for microcircuits controlled by 3A001.a.3 or 3A001.a.9.

    Note: 3A002.h does not control emulators designed for a ``family'' 
that contains at least one device not controlled by 3A001.a.3 or 
3A001.a.9.



3A101  Electronic equipment, devices and components, other than those specified in 3A001.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5,000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: The corresponding EU list number controls analog-to-
digital converters, usable in ``missiles'', designed to meet military 
specifications for ruggedized equipment in 1A101.a. These items are not 
controlled by this CCL entry. These items are subject to the export 
licensing authority of the U.S. Departement of State, Office of Defense 
Trade Controls (See 22 CFR 121.16, Item 14--Category II).
Related Definitions: N/A
Items: a. [Reserved]
    b. Accelerators capable of delivering electromagnetic radiation 
produced by bremsstrahlung from accelerated electrons of 2Mev or 
greater, and systems containing those accelerators, excluding that 
equipment specially designed for medical purposes.



3A201  Electronic components, other than those specified in 3A001.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls:
Related Definition: This entry does not control magnets that are 
specially designed for and exported as parts of medical nuclear magnetic 
resonance (NMR) imaging systems. Such parts may be exported in separate 
shipments from different sources, provided that the related export 
control documents clearly specify that the parts are for medical NMR 
imaging systems that are being exported.
Items: a. Capacitors with the following characteristics:
    a.1. Voltage rating greater than 1.4 kV, energy storage greater than 
10J, capacitance greater than 500 nF and series inductance less than 50 
nH; or
    a.2. Voltage rating greater than 750 V, capacitance greater than 250 
nF and series inductance less than 10 nH;
    b. Superconducting solenoidal electromagnets with all of the 
following characteristics:
    b.1. Capable of creating magnetic fields of more than 2 teslas (20 
kilogauss);
    b.2. With an L/D ratio (length divided by inner diameter) greater 
than 2;
    b.3. With an inner diameter of more than 300 mm; and
    b.4. With a magnetic field uniform to better than 1% over the 
central 50% of the inner volume;
    c. Flash X-ray generators or pulsed electron accelerators with peak 
energy of 500 keV or greater, as follows; except: Accelerators that are 
component parts of devices designed for purposes other than electron 
beam or X-ray radiation (electron microscopy, for example) and those 
designed for medical purposes:
    c.1. Having an accelerator peak electron energy of 500 keV or 
greater but less than 25 MeV and with a figure of merit (K) of 0.25 or 
greater, where K is defined as: K=1.7 x 103V2.65Q, 
where V is the peak electron energy in million electron volts and Q is 
the total accelerated charge in coulombs if the accelerator beam pulse 
duration is less than or equal to 1 microsecond; if the accelerator beam 
pulse duration is greater than 1 microsecond, Q is the maximum 
accelerated charge in 1 microsecond [Q equals the integral of i with 
respect to t, over the lesser of 1 microsecond or the time duration of 
the beam pulse (Q=[integral] idt), where i is beam current in amperes 
and t is time in seconds]; or

[[Page 543]]

    c.2. Having an accelerator peak electron energy of 25 MeV or greater 
and a peak power greater than 50 MW. [Peak power=(peak potential in 
volts) x (peak beam current in amperes)].

    Technical Notes: a. Time duration of the beam pulse - In machines, 
based on microwave accelerating cavities, the time duration of the beam 
pulse is the lesser of 1 microsecond or the duration of the bunched beam 
packet resulting from one microwave modulator pulse.
    b. Peak beam current--In machines based on microwave accelerating 
cavities, the peak beam current is the average current in the time 
duration of a bunched beam packet.



3A202  Oscilloscopes and transient recorders other than those controlled by 3A002.a.5, and specially designed components therefor.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: Specially designed components specified in this 
item are the following, for analog oscilloscopes:
    1. Plug-in units;
    2. External amplifiers;
    3. pre-amplifiers;
    4. Sampling devices;
    5. Cathode ray tubes.
Items: a. Non-modular analog oscilloscopes having a bandwidth of 1 GHz 
or greater;

    Technical Note: ``Bandwidth'' is defined as the band of frequencies 
over which the deflection on the cathode ray tube does not fall below 
70.7% of that at the maximum point measured with a constant input 
voltage to the oscilloscope amplifier.

    b. Modular analog oscilloscope systems having either of the 
following characteristics:
    b.1. A mainframe with a bandwidth of 1 GHz or greater; or
    b.2. Plug-in modules with an individual bandwidth of 4 GHz or 
greater;
    c. Analog sampling oscilloscopes for the analysis of recurring 
phenomena with an effective bandwidth greater than 4 GHz;
    d. Digital oscilloscopes and transient recorders using analog-to-
digital conversion techniques, capable of storing transients by 
sequentially sampling one-shot input signals at successive intervals of 
less than 1 ns (greater than 1 giga-sample per second), digitizing to 8 
bits or greater resolution, and storing 256 or more samples.



3A225  Frequency changers (also known as converters or inverters) or generators, having all of the following characteristics.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: Frequency changers (also known as converters or 
inverters) especially designed or prepared to supply motor stators and 
having the characteristics described in 3A225.b and .d, together with a 
total harmonic distortion of less than 2 percent and an efficiency of 
greater than 80 percent are subject to the export licensing authority of 
the Nuclear Regulatory Commission. (See 10 CFR part 110.)
Related Definition: Motor stators are especially designed or prepared 
ring-shaped stators for high-speed multiphase AC hysteresis (or 
reluctance) motors for synchronous operation within a vacuum in the 
frequency range of 600 Hz to 2,000 Hz, and a power range of 50 VA to 
1,000 VA. The stators consist of multiphase windings on a laminated low-
loss iron core comprising thin layers typically to 2.0 mm (.008 in) 
thick or less.
Items: a. A multisphase output capable of providing power of 40 W or 
more;
    b. Capable of operating in the frequency range between 600 and 2,000 
Hz;
    c. Total harmonic distortion below 10%; and
    d. Frequency control better than 0.1%.



3A226  Direct current high-power supplies capable of continuously producing, over a time period of 8 hours, 100 V or greater with a current output of 500 A or 
          greater and with a current or voltage regulation better than 
          0.1%.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled


[[Page 544]]


Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



3A227  High-voltage direct current power supplies capable of continuously producing, over a time period of 8 hours, 20,000 V or greater with a current output of 
          1 A or greater and with a current or voltage regulation better 
          than 0.1%.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



3A228  Switching devices.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: a. Cold-cathode tubes (including gas krytron tubes and vacuum 
sprytron tubes), whether gas filled or not, operating similarly to a 
spark gap, containing three or more electrodes, and having all of the 
following characteristics:
    a.1. Anode peak voltage rating of 2,500 V or more;
    a.2. Anode peak current rating of 100 A or more; and
    a.3. Anode delay time of 10 microseconds or less;
    b. Triggered spark-gaps having an anode delay time of 15 
microseconds or less and rated for a peak current of 500 A or more;
    c. Modules or assemblies with a fast switching function having all 
of the following characteristics:
    c.1. Anode peak voltage rating greater than 2,000 V;
    c.2. Anode peak current rating of 500 A or more; and
    c.3. Turn-on time of 1 microseconds or less.



3A229  Firing sets and equivalent high-current pulse generators (for detonators controlled by 3A232).

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: a. Explosive detonator firing sets designed to drive multiple 
detonators of the type controlled by ECCN 3A232;
    b. Modular electrical pulse generators (pulsers) designed for 
portable, mobile, or ruggedized use (including xenon flash-lamp drivers) 
having all the following characteristics:
    b.1. Capable of delivering their energy in less than 15 
microseconds;
    b.2. Having an output greater than 100 A; and
    b.3. Having a ``rise time'' of less than 10 microseconds into loads 
of less than 40 ohms.

    Technical Note: ``Rise time'' is defined as the time interval from 
10% to 90% current amplitude when driving a resistive load.

    b.4. Enclosed in a dust-tight enclosure;
    b.5. No dimension greater than 254 mm (10 in.);
    b.6. Weight less than 25 kg (55 lb.); and
    b.7. Specified for use over an extended temperature range (223 K 
[-50  deg.C] to 373 K [100  deg.C]) or specified as suitable for 
aerospace use.




3A230  High-speed pulse generators with output voltages greater than 6 volts into a less than 55 ohm resistive load, and with pulse transition times less than 
          500 picoseconds (defined as the time interval between 10% and 
          90% voltage amplitude).

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions


[[Page 545]]


LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




3A231  Neutron generator systems, including tubes, designed for operation without an external vacuum system, and utilizing electrostatic acceleration to induce 
          a tritium-deuterium nuclear reaction.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number, parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




3A232  Detonators and multipoint initiation systems (exploding bridge wire, slapper, etc.).

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definition: Detonators using only primary explosives, such as 
lead azide, are not controlled by this entry.
Items: a. Electrically driven explosive detonators, as follows:
    a.1. Exploding bridge (EB);
    a.2. Exploding bridge wire (EBW);
    a.3. Slapper;
    a.4. Exploding foil initiators (EFI)
    b. Arrangements using single or multiple detonators designed to 
nearly simultaneously initiate an expolsive surface (over greater than 
5,000 mm\2\) from a single firing signal (with an initiation timing 
spread over the surface of less than 2.5 microseconds).

    Technical Note: The detonators controlled by 3A232 utilize a small 
electrical conductor (bridge, bridgewire, or foil) that explosively 
vaporizes when a fast, high-current electrical pulse is passed through 
it. In nonslapper types, the exploding conductor starts a chemical 
detonation in a contacting high-explosive material such as PETN 
(pentaerythritoltetranitrate). In slapper detonators, the explosive 
vaporization of the electrical conductor drives a flyer or slapper 
across a gap, and the impact of the slapper on an explosive starts a 
chemical detonation. The slapper in some designs is driven by magnetic 
force. The term exploding foil detonator may refer to either an EB or a 
slapper-type detonator. Also, the word initiator is sometimes used in 
place of the word detonator.




3A233  Mass spectrometers capable of measuring ions of 230 atomic mass units or greater and having a resolution of better than 2 parts in 230, and ion sources 
          therefor.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: Specially designed or prepared magnetic or quadruple 
mass spectrometers that have the following characteristics and are 
capable of taking on-line samples of feed, product, or tails from 
UF6 gas streams are subject to the export licensing authority 
of the Nuclear Regulatory Commission. (See 10 CFR part 110.): (a) Unit 
resolution for mass greater than 320; (b) Ion sources that are 
constructed of or lined with nichrome or that are monel or nickel-
plated; (c) Electron bombardment ionization sources; (d) Having a 
collector system suitable for isotopic analysis.
Related Definitions: N/A
Items: a. Inductively coupled plasma mass spectrometers (ICP/MS);
    b. Glow discharge mass spectrometers (GDMS);
    c. Thermal ionization mass spectrometers (TIMS);
    d. Electron bombardment mass spectrometers that have a source 
chamber constructed from, or lined with or plated with materials 
resistent to UF6;
    e. Molecular beam mass spectrometers that:
    e.1. Have a source chamber constructed from, or lined with or plated 
with stainless steel or molybdenum and have a cold trap

[[Page 546]]

capable of cooling to 193 K (-80  deg.C) or less; or
    e.2. Have a source chamber constructed from, or lined with or plated 
with materials resistant to UF6; or
    f. Mass spectrometers equipped with a microfluorination ion source 
designed for use with actinides or actinide fluorides.



3A980  Voice print identification and analysis equipment and parts, n.e.s.

License Requirements

Reason for Control: CC

                                                                        
                Control(s)                          Country Chart       
                                                                        
CC applies to entire entry................  CC Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




3A981  Polygraphs (except biomedical recorders designed for use in medical facilities for monitoring biological and neurophysical responses); fingerprint 
          analyzers, cameras and equipment, n.e.s.; automated 
          fingerprint and identification retrieval systems, n.e.s.; 
          psychological stress analysis equipment; electronic monitoring 
          restraint devices; and specially designed parts and 
          accessories, n.e.s.

License Requirements

Reason for Control: CC

                                                                        
                Control(s)                          Country Chart       
                                                                        
CC applies to entire entry................  CC Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



3A992  Electronic devices and components not controlled by 3A001.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: a. ``Microprocessor microcircuits'', ``microcomputer 
microcircuits'', and microcontroller microcircuits having a clock 
frequency exceeding 25 MHz;
    b. Storage integrated circuits not controlled by 3A001, as follows:
    b.1. Electrical erasable programmable read-only memories (EEPROMs) 
with a storage capacity;
    b.1.a. Exceeding 1 Mbit per package; or
    b.1.b. Exceeding 256 kbit per package and a maximum access time of 
less than 80 ns;
    b.2. Static random access memories (SRAMs) with a storage capacity:
    b.2.a. Exceeding 1 Mbit per package; or
    b.2.b. Exceeding 256 kbit per package and a maximum access time of 
less than 25 ns;
    c. Field programmable logic arrays not controlled by 3A001 having 
either of the following:
    c.1. An equivalent gate count of more than 5,000 (2 input gates); or
    c.2. A toggle frequency exceeding 100 MHz;
    d. Travelling wave tubes, pulsed or continuous wave, not controlled 
by 3A001, as follows:
    d.1. Coupled cavity tubes, or derivatives thereof;
    d.2. Helix tubes, or derivatives thereof, with any of the following:
    d.a.1. An ``instantaneous bandwidth'' of half an octave or more; and
    d.a.2. The product of the rated average output power (expressed in 
kW) and the maximum operating frequency (expressed in GHz) of more than 
0.2;
    d.2.b.1 An ``instantaneous bandwidth'' of less than half an octave; 
and
    d.2.b.2. The product of the rated average output power (expressed in 
kW) and the maximum operating frequency (expressed in GHz) of more than 
0.4;
    e. Flexible waveguides designed for use at frequencies exceeding 40 
GHz;
    f. Surface acoustic wave and surface skimming (shallow bulk) 
acoustic wave devices (i.e., ``signal processing'' devices employing 
elastic waves in materials), not controlled by 3A001, having either of 
the following:
    f.1. A carrier frequency exceeding 1 GHz; or
    f.2. A carrier frequency of 1 GHz or less, and
    f.2.a. A frequency side-lobe rejection exceeding 55 dB;

[[Page 547]]

    f.2.b. A product of the maximum delay time and bandwidth (time in 
microseconds and bandwidth in MHz) of more than 100; or
    f.2.c. A dispersive delay of more than 10 microseconds.
    g. Batteries not controlled by 3A001, as follows:

    Note: 3A992.g does not control batteries with volumes equal to or 
less than 26 cm3 (e.g., standard C-cells or UM-2 batteries).

    g.1. Primary cells and batteries having an energy density exceeding 
350 Wh/kg and rated for operation in the temperature range from below 
243 K (-30  deg.C) to above 343 K (70  deg.C);
    g.2. Rechargeable cells and batteries having an energy density 
exceeding 150 Wh/kg after 75 charge/discharge cycles at a discharge 
current equal to C/5 hours (C being the nominal capacity in ampere 
hours) when operating in the temperature range from below 253 K (-20 
deg.C) to above 333 K (60  deg.C);

    Technical Note: Energy density is obtained by multiplying the 
average power in watts (average voltage in volts times average current 
in amperes) by the duration of the discharge in hours to 75 percent of 
the open circuit voltage divided by the total mass of the cell (or 
battery) in kg.

    g.3. ``Space qualified'' or radiation hardened photovoltaic arrays 
with a specific power exceeding 160 W/m\2\ at an operating temperature 
of 301 K (28  deg.C) under a tungsten illumination of 1 kW/m\2\ at 2,800 
K (2,527  deg.C);
    h. ``Superconductive'' electromagnets or solenoids specially 
designed to be fully charged or discharged in less than one minute, not 
controlled by 3A001, having all of the following:

    Note: 3A992.h does not control ``superconductive'' electromagnets or 
solenoids designed for Magnetic Resonance Imaging (MRI) medical 
equipment.

    h.1. Maximum energy delivered during the discharge divided by the 
duration of the discharge of more than 500 kJ per minute;
    h.2. Inner diameter of the current carrying windings of more than 
250 mm; and
    h.3. Rated for a magnetic induction of more than 8T or ``overall 
current density'' in the winding of more than 300 A/mm \2\.



3A993  Electronic test equipment in Category 3A n.e.s.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $1000 for Syria only
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



3A994  General purpose electronic equipment not controlled by 3A002.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: a. Digital instrumentation magnetic tape data recorders not 
controlled by 3A002 having any of the following characteristics;
    a.1. A maximum digital interface transfer rate exceeding 60 Mbit/s 
and employing helical scan techniques;
    a.2. A maximum digital interface transfer rate exceeding 120 Mbit/s 
and employing fixed head techniques; or
    a.3. ``Space qualified'';
    b. Equipment, not controlled by 3A002, with a maximum digital 
interface transfer rate exceeding 60 Mbit/s, designed to convert digital 
video magnetic tape recorders for use as digital instrumentation data 
recorders;
    c. Hydrogen/hydrogen-isotope thyratrons of ceramic-metal 
construction and rate for a peak current of 500A or more.

              B. Test, Inspection and Production Equipment



3B001  ``Stored program controlled'' equipment for epitaxial growth.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $500
GBS: Yes, except 3B001 .b and .c
CIV: Yes for equipment controlled by 3B001.a as described in Advisory 
Note 1.d

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: a. Capable of producing a layer thickness uniform to less than 
2.5% across a distance of 75 mm or more;
    b. Metal organic chemical vapour deposition (MOCVD) reactors 
specially designed for

[[Page 548]]

compound semiconductor crystal growth by the chemical reaction between 
materials controlled by 3C003 or 3C004;
    c. Molecular beam epitaxial growth equipment using gas sources.



3B002  ``Stored program controlled'' equipment designed for ion implanation, having the following characteristics.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $500
GBS: Yes
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: a. An accelerating voltage exceeding 200 keV;
    b. Specially designed and optimized to operate at accelerating 
voltages of less than 10 keV;
    c. Direct write capability; or
    d. Capable of high energy oxygen implant into a heated semiconductor 
material ``substrate''.



3B003  ``Stored program controlled'' anisotropic plasma dry etching equipment.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $500
GBS: Yes
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: a. With cassette-to-cassette operation and load-locks, and having 
either of the following:
    a.1. Magnetic confinement; or
    a.1. Electron cyclotron resonance (ECR);
    b. Specially designed for equipment controlled by 3B005 and having 
either of the following:
    b.1. Magnetic confinement; or
    b.2. Electron cyclotron resonance (ECR).



3B004  ``Stored program controlled'' plasma enchanced CVD equipment.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $500
GBS: Yes
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: a. With cassette-to-cassette operation and load-locks, and having 
either of the following:
    a.1. Magnetic confinement; or
    a.2. Electron cyclotron resonance (ECR);
    b. Specially designed for equipment controlled by 3B005 and having 
either of the following:
    b.1. Magnetic confinement; or
    b.2. Electron cyclotron resonance (ECR);




3B005  ``Stored program controlled'' automatic loading multi-chamber central wafer handling systems, having interfaces for wafer input and output, to which more 
          than two pieces of semiconductor processing equipment are to 
          be connected, to form an integrated system in a vacuum 
          environment for sequential multiple wafer processing.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $500
GBS: Yes, except when connected with equipment controlled by 3B001.b and 
.c or 3B006
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: This entry does not control automatic robotic wafer 
handling systems not designed to operate in a vacuum environment.
Items: The list of items controlled is contained in the ECCN heading.



3B006  ``Stored program controlled'' lithography equipment.

License Requirements

Reason for Control: NS, AT

[[Page 549]]



                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $500
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: a. Align and expose step and repeat equipment for wafer 
processing using photo-optical or X-ray methods, having either of the 
following:
    a.1. A light source wavelength shorter than 400 nm;
    a.2. Capable of producing a pattern with a minimum resolvable 
feature size of 0.7 micrometers or less when calculated by the following 
formula:
[GRAPHIC] [TIFF OMITTED] TR25MR96.025

where:

MRF is the minimum resolvable feature size; the K factor = 0.7; and 
          wavlength is the exposure light source wavelength;

    b. Equipment specially designed for mask making or semiconductor 
device processing using deflected focussed electron beam, ion beam or 
``laser'' beam, with any of the following:
    b.1. A spot size smaller than 0.2 micrometer;
    b.2. Capable of producing a pattern with a feature size of less than 
1 micrometer; or
    b.3. An overlay accuracy of better than 0.20 micrometer 
(3 sigma).



3B007  Masks or reticles.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $500
GBS: Yes
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: a. For integrated circuits controlled by 3A001;
    b. Multi-layer masks with a phase shift layer.



3B008  ``Stored program controlled'' test equipment, specially designed for testing semiconductor devices and unencapsulated dice.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $500
GBS: Yes
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: a. For testing S-parameters of transistor devices at frequencies 
exceeding 31 GHz;
    b. For testing integrated circuits, capable of performing functional 
(truth table) testing at a pattern rate of more than 40 MHz;

    Note: 3B008.b does not control test equipment specially designed for 
testing:
    1. ``Electronic assemblies'' or a class of ``electronic assemblies'' 
for home or entertainment applications;
    2. Non-controlled electronic components, ``electronic assemblies'' 
or integrated circuits.

    c. For testing microwave integrated circuits at frequencies 
exceeding 3 GHz;

    Note: 3B008.c does not control test equipment specially designed for 
testing microwave integrated circuits operating solely in the Standard 
Civil Telecommunication Bands at frequencies not exceeding 31 GHz.

    d. Electron beam systems designed for operation at or below 3 keV, 
or ``laser'' beam systems, for the non-contactive probing of powered-up 
semiconductor devices, with both of the following:
    d.1. Stroboscopic capability with either beam-blanking or detector 
strobing; and
    d.2. An electron spectrometer for voltage measurement with a 
resolution of less than 0.5 V.

    Note: 3B008.d does not control scanning electron microscopes, except 
when specially designed and instrumented for the non-contactive probing 
of powered-up semiconductor devices.

[[Page 550]]



3B991  Equipment not controlled by 3B001 for the manufacture or testing of electronic components and materials, and specially designed components and 
          accessories therefor.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: a. Equipment specially designed for the manufacture or testing of 
electron tubes, optical elements and specially designed components 
therefor controlled by 3A001;
    b. Equipment specially designed for the manufacture or testing of 
semiconductor devices, integrated circuits and ``assemblies'', as 
follows, and systems incorporating or having the characteristics of such 
equipment:

    Note: 3B991.b also controls equipment used or modified for use in 
the manufacture or testing of other devices, such as imaging devices, 
electro-optical devices, acoustic-wave devices.

    b.1. Equipment for the processing of materials for the manufacture 
of devices and components as specified in the heading of 3B991.b, as 
follows:

    Note: 3B991 does not control quartz furnace tubes, furnace liners, 
paddles, boats (except specially designed caged boats), bubblers, 
cassettes or crucibles specially designed for the processing equipment 
controlled by 3B991.b.1.

    b.1.a. Equipment for producing polycrystalline silicon and materials 
controlled by 3C001;
    b.1.b. Equipment specially designed for purifying or processing III/
V and II/VI semiconductor materials controlled by 3C001, 3C002, 3C003, 
or 3C004, except crystal pullers, for which see 3B991.b.1.c below;
    b.1.c. Crystal pullers and furnaces, as follows:

    Note: 3B991.b.1.c does not control diffusion and oxidation furnaces.

    b.1.c.1. Annealing or recrystallizing equipment other than constant 
temperature furnaces employing high rates of energy transfer capable of 
processing wafers at a rate exceeding 0.005 m2 per minute;
    b.1.c.2. ``Stored programme controlled'' crystal pullers having any 
of the following characteristics:
    b.1.c.2.a. Rechargeable without replacing the crucible container;
    b.1.c.2.b. Capable of operation at pressures above 2.5 x 105 Pa; or
    b.1.c.2.c. Capable of pulling crystals of a diameter exceeding 100 
mm;
    b.1.d. ``Stored program controlled'' equipment for epitaxial growth 
having any of the following characteristics:
    b.1.d.1. Capable of producing a layer thickness uniformity across 
the wafer of equal to or better than +3.5%;
    b.1.d.2. Rotation of individual wafers during processing; or
    b.1.e. Molecular beam epitaxial growth equipment;
    b.1.f. ``Magnetically enhanced'' ``sputtering'' equipment with 
specially designed integral load locks capable of transferring wafers in 
an isolated vacuum environment;
    b.1.g. Equipment specially designed for ion implantation, ion-
enhanced or photo-enhanced diffusion, having any of the following 
characteristics:
    b.1.g.1. Patterning capability;
    b.1.g.2. Accelerating voltage for more than 200 keV; or
    b.1.g.3. Capable of high energy oxygen implant into a heated 
``substrate'';
    b.1.h. ``Stored program controlled'' equipment for the selective 
removal (etching) by means of anisotropic dry methods (e.g., plasma), as 
follows:
    b.1.h.1. Batch types having either of the following:
    b.1.h.1.a. End-point detection, other than optical emission 
spectroscopy types; or
    b.1.h.1.b. Reactor operational (etching) pressure of 26.66 Pa or 
less;
    b.1.h.2. Single wafer types having any of the following:
    b.1.h.2.a. End-point detection, other than optical emission 
spectroscopy types;
    b.1.h.2.b. Reactor operational (etching) pressure of 26.66 Pa or 
less; or
    b.1.h.2.c. Cassette-to-cassette and load locks wafer handling;

    Notes: 1. ``Batch types'' refers to machines not specially designed 
for production processing of single wafers. Such machines can process 
two or more wafers simultaneously with common process parameters, e.g., 
RF power, temperature, etch gas species, flow rates.
    2. ``Single wafer types'' refers to machines specially designed for 
production processing of single wafers. These machines may use automatic 
wafer handling techniques to load a single wafer into the equipment for 
processing. The definition includes equipment that can load and process 
several wafers but where the etching parameters, e.g., RF power or end 
point, can be independently determined for each individual wafer.

    b.1.i. ``Chemical vapor deposition'' (CVD) equipment, e.g., plasma-
enhanced CVD (PECVD) or photo-enhanced CVD, for semiconductor device 
manufacturing, having either of the following capabilities, for 
deposition of oxides, nitrides, metals or polysilicon:
    b.1.i.1. ``Chemical vapor deposition'' equipment operating below 105 
Pa; or

[[Page 551]]

    b.1.i.2. PECVD equipment operating either below 60 Pa (450 
millitorr) or having automatic cassette-to-cassette and load lock wafer 
handling;

    Note: 3B991.b.1.i does not control low pressure ``chemical vapor 
deposition'' (LPCVD) systems or reactive ``sputtering'' equipment.

    b.1.j. Electron beam systems specially designed or modified for mask 
making or semiconductor device processing having any of the following 
characteristics:
    b.1.j.1. Electrostatic beam deflection;
    b.1.j.2. Shaped, non-Gaussian beam profile;
    b.1.j.3. Digital-to-analog conversion rate exceeding 3 MHz;
    b.1.j.4. Digital-to-analog conversion accuracy exceeding 12 bit; or
    b.1.j.5. Target-to-beam position feedback control precision of 1 
micrometer or finer;

    Note: 3B991.b.1.j does not control electron beam deposition systems 
or general purpose scanning electron microscopes.

    b.1.k. Surface finishing equipment for the processing of 
semiconductor wafers as follows:
    b.1.k.1. Specially designed equipment for backside processing of 
wafers thinner than 100 micrometer and the subsequent separation 
thereof; or
    b.1.k.2. Specially designed equipment for achieving a surface 
roughness of the active surface of a processed wafer with a two-sigma 
value of 2 micrometer or less, total indicator reading (TIR);

    Note: 3B991.b.1.k does not control single-side lapping and polishing 
equipment for wafer surface finishing.

    b.1.l. Interconnection equipment which includes common single or 
multiple vacuum chambers specially designed to permit the integration of 
any equipment controlled by 3B991 into a complete system;
    b.1.m. ``Stored program controlled'' equipment using ``lasers'' for 
the repair or trimming of ``monolithic integrated circuits'' with either 
of the following characteristics:
    b.1.m.1. Positioning accuracy less than 1 micrometer; or
    b.1.m.2. Spot size (kerf width) less than 3 micrometer.
    b.2. Masks, mask ``substrates'', mask-making equipment and image 
transfer equipment for the manufacture of devices and components as 
specified in the heading of 3B991, as follows:

    Note: The term ``masks'' refers to those used in electron beam 
lithography, X-ray lithography, and ultraviolet lithography, as well as 
the usual ultraviolet and visible photo-lithography.

    b.2.a. Finished masks, reticles and designs therefor, except:
    b.2.a.1. Finished masks or reticles for the production of 
unembargoed integrated circuits; or
    b.2.a.2. Masks or reticles, having both of the following 
characteristics:
    b.2.a.2.a. Their design is based on geometries of 2.5 micrometer or 
more; and
    b.2.a.2.b. The design does not include special features to alter the 
intended use by means of production equipment or ``software'';
    b.2.b. Mask ``substrates'' as follows:
    b.2.b.1. Hard surface (e.g., chromium, silicon, molybdenum) coated 
``substrates'' (e.g., glass, quartz, sapphire) for the preparation of 
masks having dimensions exceeding 125 mm x 125 mm; or
    b.2.b.2. ``Substrates'' specially designed for X-ray masks;
    b.2.c. Equipment, other than general purpose computers, specially 
designed for computer aided design (CAD) of semiconductor devices or 
integrated circuits;
    b.2.d. Equipment or machines, as follows, for mask or reticle 
fabrication:
    b.2.d.1. Photo-optical step and repeat cameras capable of producing 
arrays larger than 100 mm x 100 mm, or capable of producing a single 
exposure larger than 6 mm x 6 mm in the image (i.e., focal) plane, or 
capable of producing line widths of less than 2.5 micrometer in the 
photoresist on the ``substrate'';
    b.2.d.2. Mask or reticle fabrication equipment using ion or 
``laser'' beam lithography capable of producing line widths of less than 
2.5 micrometer; or
    b.2.d.3. Equipment or holders for altering masks or reticles or 
adding pellicles to remove defects;

    Note: 3B991.b.2.d.1 and b.2.d.2 do not control mask fabrication 
equipment using photo-optical methods which was either commercially 
available before the 1st January, 1980, or has a performance no better 
than such equipment.

    b.2.e. ``Stored program controlled'' equipment for the inspection of 
masks, reticles or pellicles with:
    b.2.e.1. A resolution of 0.25 micrometer or finer; and
    b.2.e.2. A precision of 0.75 micrometer or finer over a distance in 
one or two coordinates of 63.5 mm or more;

    Note: 3B991.b.2.e does not control general purpose scanning electron 
microscopes except when specially designed and instrumented for 
automatic pattern inspection.

    b.2.f. Align and expose equipment for wafer production using photo-
optical methods, including both projection image transfer equipment and 
step and repeat equipment, capable of performing any of the following 
functions:

    Note: 3B991.b.2.f does not control photo-optical contact and 
proximity mask align and expose equipment or contact image transfer 
equipment.

    b.2.f.1. Production of a pattern size of less than 2.5 micrometer;
    b.2.f.2. Alignment with a precision finer than 0.25 
micrometer (3 sigma); or
    b.2.f.3. Machine-to-machine overlay no better than +0.3 micrometer;

[[Page 552]]

    b.2.g. Electron beam, ion beam or X-ray equipment for projection 
image transfer capable of producing patterns less than 2.5 micrometer;

    Note: For focussed, deflected-beam systems (direct write systems), 
see 3B91.b.1.j or b.10.

    b.2.h. Equipment using ``lasers'' for direct write on wafers capable 
of producing patterns less than 2.5 micrometer.
    b.3. ``Stored program controlled'' inspection equipment for the 
automatic detection of defects, errors or contaminants of 0.6 micrometer 
or less in or on processed wafers, ``substrates'', other than printed 
circuit boards or chips, using optical image acquisition techniques for 
pattern comparison;

    Note: 3B991.b.3 does not control general purpose scanning electron 
microscopes, except when specially designed and instrumented for 
automatic pattern inspection.

    b.4. Specially designed ``stored program controlled'' measuring and 
analysis equipment, as follows:
    b.4.a. Specially designed for the measurement of oxygen or carbon 
content in semiconductor materials;
    b.4.b. Equipment for line width measurement with a resolution of 1 
micrometer or finer;
    b.4.c. Specially designed flatness measurement instruments capable 
of measuring deviations from flatness of 10 micrometer or less with a 
resolution of 1 micrometer or finer.
    b.5. Equipment for the assembly of integrated circuits, as follows:
    b.5.a. ``Stored program controlled'' die bonders having all of the 
following characteristics:
    b.5.a.1. Specially designed for ``hybrid integrated circuits'';
    b.5.a.2. X-Y stage positioning travel exceeding 37.5 x 37.5 mm; and
    b.5.a.3. Placement accuracy in the X-Y plane of finer than + 10 
micrometer;
    b.5.b. ``Stored program controlled'' equipment for producing 
multiple bonds in a single operation (e.g., beam lead bonders, chip 
carrier bonders, tape bonders);
    b.5.c. Semi-automatic or automatic hot cap sealers, in which the cap 
is heated locally to a higher temperature than the body of the package, 
specially designed for ceramic microcircuit packages controlled by 3A001 
and that have a throughput equal to or more than one package per minute.

    Note: 3B991.b.5. does not control general purpose resistance type 
spot welders.

    b.6. ``Stored program controlled'' wafer probing equipment having 
any of the following characteristics:
    b.6.a. Positioning accuracy finer than 3.5 micrometer;
    b.6.b. Capable of testing devices having more than 68 terminals; or
    b.6.c. Capable of testing at a frequency exceeding 1 GHz;
    b.7. Test equipment as follows:
    b.7.a. ``Stored program controlled'' equipment specially designed 
for testing discrete semiconductor devices and unencapsulated dice, 
capable of testing at frequencies exceeding 18 GHz;

    Technical Note: Discrete semiconductor devices include photocells 
and solar cells.

    b.7.b. ``Stored program controlled'' equipment specially designed 
for testing integrated circuits and ``assemblies'' thereof, capable of 
functional testing:
    b.7.b.1. At a pattern rate exceeding 20 MHz; or
    b.7.b.2. At a pattern rate exceeding 10 MHz but not exceeding 20 MHz 
and capable of testing packages of more than 68 terminals;

    Note: 3B991.b.7.b. does not control equipment specially designed for 
testing integrated circuits not controlled by 3A001 or 3A991.

    Notes: 1. 3B991.b.7.b does not control test equipment specially 
designed for testing ``assemblies'' or a class of ``assemblies'' for 
home and entertainment applications.
    2. 3B991.b.7.b does not control test equipment specially designed 
for testing electronic components, ``assemblies'' and integrated 
circuits not controlled by 3A001 or 3A991 provided such test equipment 
does not incorporate computing facilities with ``user accessible 
programmability''.

    b.7.c. Equipment specially designed for determining the performance 
of focal-plane arrays at wavelengths of more than 1,200 nm, using 
``stored program controlled'' measurements or computer aided evaluation 
and having any of the following characteristics:
    b.7.c.1. Using scanning light spot diameters of less than 0.12 mm;
    b.7.c.2. Designed for measuring photosensitive performance 
parameters and for evaluating frequency response, modulation transfer 
function, uniformity of responsivity or noise; or
    b.7.c.3. Designed for evaluating arrays capable of creating images 
with more than 32 x 32 line elements;
    b.8. Filters for clean rooms capable of providing an air environment 
of 10 or less particles of 0.3 micrometer or smaller per 0.02832 m 3 and 
filter materials therefor;
    b.9. Electron beam test systems, capable of operating at or below 
3,000 eV, for non-contactive probing of powered-up semiconductor devices 
having any of the following:
    b.9.a. Stroboscopic capability with either beam blanking or detector 
strobing;
    b.9.b. An electron spectrometer for voltage measurements with a 
resolution of less than 0.5 V; or
    b.9.c. Electrical tests fixtures for performance analysis of 
integrated circuits;

    Note: 3B991.b.9 does not control scanning electron microscopes, 
except when specially designed and instrumented for non-contactive 
probing of a powered-up semiconductor device.

    b.10. ``Stored program controlled'' multifunctional focused ion beam 
systems specially designed for manufacturing, repairing, physical layout 
analysis and testing of

[[Page 553]]

masks or semiconductor devices and having either of the following 
characteristics:
    b.10.a. Target-to-beam position feedback control precision of 1 
micrometer or finer; or
    b.10.b. Digital-to-analog conversion accuracy exceeding 12 bit;
    b.11. Particle measuring systems employing ``lasers'' designed for 
measuring particle size and concentration in air having both of the 
following characteristics:
    b.11.a. Capable of measuring particle sizes of 0.2 micrometer or 
less at a flow rate of 0.02832 m3 per minute or more; and
    b.11.b. Capable of characterizing Class 10 clean air or better.

                              C. Materials



3C001  Hetero-epitaxial materials consisting of a ``substrate'' with stacked epitaxially grown multiple layers.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3,000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Silicon;
    b. Germanium; or
    c. III/V compounds of gallium or indium.

    Technical Note: III/V compounds are polycrystalline or binary or 
complex monocrystalline products consisting of elements of groups IIIA 
and VA of Mendeleyev's periodic classification table (gallium arsenide, 
gallium-aluminium arsenide, indium phosphide, etc.).



3C002  Resist materials, and ``substrates'' coated with controlled resists.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: Yes for 3C002.a as described in Advisory Note 1.e
CIV: Yes for 3C002.a as described in Advisory Note 1.e

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Positive resists for semiconductor lithography specially 
adjusted (optimized) for use at wavelengths below 370 nm;
    b. All resists, for use with electron beams or ion beams, with a 
sensitivity of 0.01 microcoulomb/mm2 or better;
    c. All resists, for use with X-rays, with a sensitivity of 2.5 mJ/
mm2 or better;
    d. All resists optimized for surface imaging technologies, including 
silyated resists.

    Technical Note: Silyation techniques are defined as processes 
incorporating oxidation of the resist surface to enhance performance for 
both wet and dry developing.



3C003  Organo-inorganic compounds.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3,000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: This entry controls only compounds whose metallic, 
partly metallic or non-metallic element is directly linked to carbon in 
the organic part of the molecule.
Items: a. Organo-metallic compounds of aluminum, gallium or indium 
having a purity (metal basis) better than 99.999%; or
    b. Organo-arsenic, organo-antimony and organo-phosphorus compounds 
having a purity (inorganic element basis) better than 99.999% percent.



3C004  Hydrides of phosphorus, arsenic or antimony, having a purity better than 99.999%, even diluted in inert gases or hydrogen.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: This entry does not control hydrides containing less 
than 20% molar or more of inert gases or hydrogen.

[[Page 554]]

Items: The list of items controlled is contained in the ECCN heading.

                               D. Software



3D001  ``Software'' specially designed for the ``development'' or ``production'' of equipment controlled by 3A001.a.1.a, 3A001.b to 3A001.f, 3A002, 3A101 or 3B 
          (except 3B991).

License Requirements

Reason for Control: NS, MT, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to ``software'' for equipment                                
 controlled by 3A001.b to 3A001.f, 3A002,                               
 and 3B001 to 3B008.......................  NS Column 1                 
MT applies to ``software'' for equipment                                
 controlled by 3A001.a.1.a or 3A101.......  MT Column 1                 
NP applies to ``software'' for equipment                                
 controlled by 3A001.e.5..................  NP Column 1                 
At applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes, except 3A001.e.5

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



3D002  ``Software'' specially designed for the ``use'' of ``stored program controlled'' items controlled by 3B (except 3B991).

                          License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



3D003  Computer-aided-design (CAD) ``software'' for semiconductor device or integrated circuits, having any of the following.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: (a) This entry does not control ``software'' 
specially designed for schematic entry, logic simulation, placing and 
routing, layout verification or pattern generation tape. (b) Libraries, 
design attributes or associated data for the design of semiconductor 
devices or integrated circuits are considered as ``technology''.
Items: a. Design rules or circuit verification rules;
    b. Simulation of the physically laid out circuits; or
    c. Lithographic processing simulators for design.

    Technical Note: A lithographic processing simulator is a 
``software'' package used in the design phase to define the sequence of 
lithographic, etching and deposition steps for translating masking 
patterns into specific topographical patterns in conductors, dielectrics 
or semiconductor material.



3D101 ``Software'' specially designed for the ``use'' of items controlled by 3A101.b.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A Items: The list of items controlled is 
contained in the ECCN heading.



3D980  ``Software'' specially designed for the ``development'', ``production'', or ``use'' of items controlled by 3A980 and 3A981.

License Requirements

Reason for Control: CC

                                                                        
                Control(s)                          Country Chart       
                                                                        
CC applies to entire entry................  CC Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A

[[Page 555]]

TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




3D994  ``Software'' specially designed for the ``development'', ``production'', or ``use'' of electronic devices or components controlled by 3A992, electronic 
          test equipment controlled by 3A993, general purpose electronic 
          equipment controlled by 3A994, or manufacturing and test 
          equipment controlled by 3B991.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                              E. Technology




3E001 ``Technology'' according to the General Technology Note for the ``development'' or ``production'' of items controlled by 3A (except 3A980, 3A981, and 
3A992 to 3A994), 3B (except 3B991) or 3C.

License Requirements

Reason for Control: NS, MT, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to ``technology'' for items                                  
 controlled by 3A001, 3A002, 3B001 to                                   
 3B008 or 3C001 to 3C004..................  NS Column 1                 
MT applies to ``technology'' for equipment                              
 controlled by 3A001 or 3A101 for MT                                    
 reasons..................................  MT Column 1                 
NP applies to ``technology'' for equipment                              
 controlled by 3A001, 3A201, 3A202, 3A225                               
 to 3A233 for NP reasons..................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes, except 3A001.a.1.a and e.5

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definition: This entry does not control ``technology'' for the 
``development'' or ``production'' of: (a) Microwave transistors 
operating at frequencies below 31 GHz; (b) Integrated circuits 
controlled by 3A001.a.3 to a.12, having both of the following 
characteristics using ``technology'' of one micrometer or more, AND not 
incorporating multi-layer structures. This does not preclude the export 
and reexport of multilayer ``technology'' for devices incorporating a 
maximum of two metal layers and two polysilicon layers.
Items: The list of items controlled is contained in the ECCN heading.




3E002 Other  ``technology'' for the ``development'' or ``production'' of items described in this entry.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: a. Vacuum microelectronic devices;
    b. Hetero-structure semiconductor devices such as high electron 
mobility transistors (HEMT), hetero-bipolar transistors (HBT), quantum 
well or super lattice devices;
    c. ``Superconductive'' electronic devices;
    d. ``Substrates'' of films of diamond for electronic components.




3E101  ``Technology'' according to the General Technology Note for the ``use'' of equipment controlled by 3A001.a.1.a or 3A101.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

[[Page 556]]




3E201  ``Technology'' according to the General Technology Note for the ``use'' of items controlled by 3A001.e.2, e.3, and e.5, 3A201, 3A202, 3A225 to 3A233.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




3E980  ``Technology'' specially designed for ``development'', ``production'', or ``use'' of items controlled by 3A980 and 3A981.

License Requirements

Reason for Control: CC

                                                                        
                Control(s)                          Country Chart       
                                                                        
CC applies to entire entry................  CC Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




3E994  ``Technology'' for the ``development'', ``production'', or ``use'' of electronic devices or components controlled by 3A992, electronic test equipment 
          controlled by 3A993, general purpose electronic equipment 
          controlled by 3A994, or manufacturing and test equipment 
          controlled by 3B991.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

EAR99  Items subject to the EAR that are not elsewhere specified in this 
          CCL Category or in any other category in the CCL are 
          designated by the number EAR99.

                      Advisory Notes for Category 3

    Advisory Note 1: Licenses are likely to be approved, as 
administrative exceptions, for exports to satisfactory end-users in the 
People's Republic of China of:
    a. Analog instrumentation magnetic tape recorders controlled by 
3A002.a.1, provided that all of the following conditions are met:
    1. Bandwidths do not exceed:
    a. 4 MHz per track and have up to 28 tracks; or
    b. 2 MHz per track and have up to 42 tracks;
    2. Tape speed does not exceed 6.1 m/s;
    3. They are not designed for underwater use;
    4. They are not ruggedized for military use; and
    5. Recording density does not exceed 653.2 magnetic flux sine waves 
per mm;
    b. Video magnetic tape recorders specially designed for civil 
television recording;
    c. Instrument ``frequency synthesizers'' or synthesized signal 
generators controlled by 3A002.b or 3A002.d.2, and specially designed 
components or accessories therefor, having:
    1. A synthesized output frequency of 2.6 GHz or less; and
    2. A ``frequency switching time'' of 0.3 ms or more;
    d. Epitaxial reactors controlled by 3B001.a, except those also 
controlled by 3B001.b or 3B001.c;
    e. Positive resists not optimized for photolithography at a 
wavelength of less than 365 nm, provided that they are not controlled by 
3C002.b to 3C002.d.
    Advisory Note 2: Licenses are likely to be approved, as 
administrative exceptions, for exports to satisfactory end-users in 
Country Group D:1 of items controlled by 3A001.a.4.a or a.4.b.
    Advisory Note 3: Licenses are likely to be approved for exports and 
reexports to satisfactory end-uses in Country Group D:1 of items 
controlled by 3A231, including tubes, provided that they are for civil 
use.

    N.B.: The provisions of this Advisory Note notwithstanding, current 
law prohibits approval to nuclear production or utilization facilities 
in the People's Republic of China.

                          Category 4--Computers

    Note 1: Computers, related equipment or ``software'' performing 
telecommunications

[[Page 557]]

or ``local area network'' functions must also be evaluated against the 
performance characteristics in Category 5 (Part I. Telecommunications).

    N.B. 1: Control units that directly interconnect the buses or 
channels of central processing units, ``main storage'' or disk 
controllers, are not regarded as telecommunications equipment described 
in Category 5 (Part I. Telecommunications).
    N.B. 2: For the control status of ``software'' that provides routing 
or switching of ``datagram'' or ``fast select'' packets (i.e., packet by 
packet route selection) or for ``software'' specially designed for 
packet switching, see Category 5 (Part I. Telecommunications).

    Note 2: Computers, related equipment or ``software'' performing 
cryptographic, cryptanalytic, certifiable multi-level security or 
certifiable user isolation functions, or that limit electronmagnetic 
compatibility (EMC), must also be evaluated against the performance 
characteristics in Category 5 (Part II. ``Information Security'').

                 A. Equipment, Assemblies and Components




4A001  Electronic computers and related equipment, and ``electronic assemblies'' and specially designed components therefor.

License Requirements

Reason for Control: NS, MT, AT, NP, XP

                                                                        
                Control(s)                          Country chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
MT applies to 4A001.a.....................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

    NP applies to electronic computers with a CTP greater than 2,000 
Mtops, unless a License Exception is available. See Sec. 742.3(b) of the 
EAR for information on applicable licensing review policies.
    XP applies to electronic computers with a CTP greater than 2,000 
Mtops, unless a License Exception is available. XP controls vary 
according to destination and end-user and end-use. See Sec. 742.12 of 
the EAR for additional information.
    See Sec. 742.12 of the EAR for additional information.
License Exceptions

LVS: $5,000 for 4A001.a; N/A for 4A001.b
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: Equipment designed or rated for transient ionizing 
radiation is subject to the export licensing authority of the U.S. 
Department of State, Office of Defense Trade Controls. (See 22 CFR part 
121, Category XI.)
Related Definitions: N/A
Items: a. Specially designed to have either of the following 
characteristics:
    a.1. Rated for operation at an ambient temperature below 228 K (-45 
deg.C) or above 358 K (85  deg.C);

    Note: The temperature limits in 4A001.a.1. do not apply to computers 
specially designed for civil automobile and railway train applications.

    a.2. Radiation-hardened to exceed any of the following 
specifications:
    a.2.a. Total Dose: 5 x 105 Rads (Si);
    a.2.b. Dose Rate Upset: 5 x 108 Rads (Si)/sec;
    a.2.c. Single Event Upse: 1 x 10-7 Error/bit/day; or
    b. Having characteristics or performing functions exceeding the 
limits in Category 5 (Part II. ``Information Security'').




4A002  ``Hybrid computers'', and ``electronic assemblies'' and specially designed components therefor.

License Requirements

Reason for Control: NS, MT, AT, NP, XP

                                                                        
                Control(s)                          Country chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
MT applies to hybrid computers combined                                 
 with specially designed ``software'', for                              
 modeling, simulation, or design                                        
 integration of complete rocket systems                                 
 and unmanned air vehicle systems that are                              
 usable in systems controlled for MT                                    
 reasons..................................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

    NP applies to hybrid computers with a CTP greater than 2,000 Mtops, 
unless a License Exception is available. See Sec. 742.3(b) of the EAR 
for information on applicable licensing review policies.
    XP applies to hybrid computers with a CTP greater than 2,000 Mtops, 
unless a License Exception is available. XP controls vary according to 
destination and end-user and end-use. See Sec. 742.12 of the EAR for 
additional information.

License Exceptions

LVS: $,5,000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Containing ``digital computers'' controlled by 4A003;
    b. Containing analog-to-digital converters having both of the 
following characteristics:
    b.1. 32 channels or more; and
    b.2. A resolution of 14 bits (plus sign bit) or more with a 
conversion rate of 200,000 conversions/s or more.

[[Page 558]]




4A003  ``Digital computers'', ``electronic assemblies'', and related equipment therefor, and specially designed components therefor.

Reason for Control: NS, MT, CC. AT, NP, XP

                                                                        
                Control(s)                          Country chart       
                                                                        
NS applies to 4A003.b and .c..............  NS Column 1                 
NS applies to 4A003.a, d, .e, .f, and .g..  NS Column 2                 
MT applies to digital computers used as                                 
 ancillary equipment for test facilities                                
 and equipment that are controlled by                                   
 9B005 or 9B006...........................  MT Column 1                 
CC applies to digital computers for                                     
 computerized fingerprint equipment.......  CC Column 1                 
AT applies to entire entry (refer to 4A994                              
 for controls on computers with a CTP  6 but  to 260 Mtops)..  AT Column 1                 
                                                                        

    NP applies to digital computers with a CTP greater than 2,000 Mtops, 
unless a License Exception is available. See Sec. 742.3(b) of the EAR 
for information on applicable licensing review policies.
    XP applies to digital computers with a CTP greater than 2,000 Mtops, 
unless a License Exception is available. XP controls vary according to 
destination and end-user and end-use. See Sec. 742.12 of the EAR for 
additional information.

    Note: For all destinations, except Cuba, Iran, Iraq, Libya, N.Korea, 
Sudan, and Syria, no license is required (NLR) for computers with a CTP 
between 260 and 2,000 Mtops., and for assemblies described in 4A003.c 
that are not capable of exceeding a CTP of 2,000 Mtops in aggregation. 
Computers controlled in this entry for MT reasons are not eligible for 
NLR.

License Exceptions

LVS: $5000
GBS: Yes, for 4A003.d, .e, .f, and .g and specially designed components 
therefor, exported separately or as part of a system
CTP: Yes, for computers controlled by 4A003.a, .b and .c, to the 
exclusion of other technical parameters, with the exception of 
parameters specified as controlled for Missile Technology (MT) concerns 
or 4A003.e (equipment performing analog-to-digital conversions exceeding 
the limits of 3A001.a.5.a). See Sec. 740.7 of the EAR.
CIV: Yes, for 4A003.d (having a 3-D vector rate less than 10 M vectors/
sec), .e, .f and .g

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items:
    Note 1: 4A003 includes vector processors, array processors, digital 
signal processors, logic processors, and equipment for ``image 
enhancement'' or ``signal processing''.
    Note 2: The control status of the ``digital computers'' or related 
equipment described in 4A003 is governed by the control status of other 
equipment or systems provided:
    a. The ``digital computers'' or related equipment are essential for 
the operation of the other equipment or systems;
    b. The ``digital computers'' or related equipment are not a 
``principal element'' of the other equipment or systems; and

    N.B. 1: The control status of ``signal processing'' or ``image 
enhancement'' equipment specially designed for other equipment with 
functions limited to those required for the other equipment is 
determined by the control status of the other equipment even if it 
exceeds the ``principal element'' criterion.
    N.B. 2: For the control status of ``digital computers'' or related 
equipment for telecommunications equipment, see the telecommunications 
entries in Category 5.

    c. The ``technology'' for the ``digital computers'' and related 
equipment is governed by 4E.

    a. Designed or modified for ``fault tolerance'';

    Note: For the purposes of 4A003.a, ``digital computers'' and related 
equipment are not considered to be designed or modified for ``fault 
tolerance'', if they use:
    1. Error detection or correction algorithms in ``main storage'';
    2. The interconnection of two ``digital computers'' so that, if the 
active central processing unit fails, an idling but mirroring central 
processing unit can continue the system's functioning;
    3. The interconnection of two central processing units by data 
channels or by use of shared storage to permit one central processing 
unit to perform other work until the second central processing unit 
fails, at which time the first central processing unit takes over in 
order to continue the system's functioning; or
    4. The synchronization of two central processing units by 
``software'' so that one central processing unit recognizes when the 
other central processing unit fails and recovers tasks from the failing 
unit.

    b. ``Digital computers'' having a ``Composite Theoretical 
Performance'' (``CTP'') exceeding 260 million composite theoretical 
operations per second (Mtops);
    c. ``Electronic assemblies'' specially designed or modified to be 
capable of enhancing performance by aggregation of ``computing 
elements'', so that the ``CTP'' of the aggregation exceeds the limit in 
4A003.b.

    Note 1: 4A003.c applies only to ``electronic assemblies'' and 
programmable interconnections not exceeding the limits in 4A003.b, when 
shipped as unintegrated ``electronic assemblies''. It does not apply to 
``electronic assemblies'' inherently limited by nature of their design 
for use as related equipment controlled by 4A003.d to 4A003.f.
    Note 2: 4A003.c does not control ``electronic assemblies'' specially 
designed for a product or family of products whose maximum configuration 
does not exceed the limits of 4A003.b.

    d. Graphics accelerators or graphics coprocessors exceeding a ``3-D 
Vector Rate'' of 1,600,000;
    e. Equipment performing analog-to-digital conversions exceeding the 
limits in 3A001.a.5;
    f. Equipment containing ``terminal interface equipment'' exceeding 
the limits in 5A001.b.3;

    Note: For the purposes of 4A003.f, ``terminal interface equipment'' 
includes ``local area network'' interfaces, modems and other 
communications interfaces. ``Local area network'' interfaces are 
evaluated as ``network access controllers''.

    g. Equipment, specially designed to provide for the external 
interconnection of ``digital computers'' or associated equipment,

[[Page 559]]

that allows communications at data rates exceeding 80 Mbytes/s.

    Note: 4A003.g does not control internal interconnection equipment 
(e.g., backplanes, buses) or passive interconnection equipment.




4A004  Computers, and specially designed related equipment, ``electronic assemblies'' and components therefor.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5,000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. ``Systolic array computers'';
    b. ``Neural computers''; and
    c. ``Optical computers''.




4A101  Analog computers, ``digital computers'', or digital differential analyzers, other than those controlled by 4A001.a.1, designed or modified for use in 
          missiles, having either of the following characteristics.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: a. Rated for continuous operation at temperatures from below -45 
deg.C to above +55  deg.C; or
    b. Designed as ruggedized or ``radiation hardened''.



4A980  Computers for fingerprint equipment, n.e.s.

License Requirements

Reason for Control: CC

                                                                        
                Control(s)                          Country Chart       
                                                                        
CC applies to entire entry................  CC Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



4A994  Computers, ``electronic assemblies'', and related equipment not controlled by 4A001, 4A002, or 4A003, and specially designed components therefor.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Electronic computers and related equipment, and ``electronic 
assemblies'' and specially designed components therefor, rated for 
operation at an ambient temperature above 343 K (70  deg.C);
    b. ``Digital computers'' having a ``composite theoretical 
performance'' (``CTP'') equal to or greater than 6 million theoretical 
operations per second (Mtops);
    c. ``Assemblies'' not controlled by 4A003 that are specially 
designed or modified to enhance performance by aggregation of 
``computing elements'' (``CEs''), as follows:
    c.1. Designed to be capable of aggregation in configurations of 16 
or more ``computing elements'' (``CEs''); or
    c.2. Having a sum of maximum data rates on all channels available 
for connection to associated processors exceeding 40 million Bytes/s;

    Note 1: 4A994.c applies only to ``electronic assemblies'' and 
programmable interconnections with a ``CTP'' not exceeding the limits in 
4A994.b, when shipped as unintegrated ``electronic assemblies''. It does 
not apply to ``electronic assemblies'' inherently limited by nature of 
their design for use as related equipment controlled by 4A994.
    Note 2: 4A994.c does not control any ``electronic assembly'' 
specially designed for a product or family of products whose maximum 
configuration does not exceed the limits of 4A994.b.

    d. Disk drives and solid state storage equipment:
    d.1. Magnetic, erasable optical or magneto-optical disk drives with 
a ``maximum bit transfer rate'' exceeding 25 million bit/s;

[[Page 560]]

    d.2. Solid state storage equipment, other than ``main storage'' 
(also known as solid state disks or RAM disks), with a ``maximum bit 
transfer rate'' exceeding 36 million bit/s;
    e. Input/output control units designed for use with equipment 
controlled by 4A994.d;
    f. Equipment for ``signal processing'' or ``image enhancement'', not 
controlled by 4A003, having a ``composite theoretical performance'' 
(``CTP'') exceeding 8.5 million theoretical operations per second 
(Mtops);
    g. Graphics accelerators or graphics coprocessors, not controlled by 
4A003, that exceeds a ``3-D vector rate'' of 400,000 or, if supported by 
2-D vectors only, a ``2-D vector rate'' of 600,000;

    Note 1: The provisions of 4A994.g do not apply to work stations 
designed for and limited to:
    a. Graphic arts (e.g., printing, publishing); and
    b. The display of two-dimensional vectors.

    h. Color displays or monitors having more than 120 resolvable 
elements per cm in the direction of the maximum pixel density;

    Note 1: 4A994.h does not control displays or monitors not specially 
designed for electronic computers.
    Note 2: Displays specially designed for air traffic control (ATC) 
systems are treated as specially designed components for ATC systems 
under Category 6.

    i. Equipment containing ``terminal interface equipment'' exceeding 
the limits in 5A991.

    Note: For the purposes of 4A994.i, ``terminal interface equipment'' 
includes ``local area network'' interfaces, modems and other 
communications interfaces. ``Local area network'' interfaces are 
evaluated as ``network access controllers''.

              B. Test, Inspection and Production Equipment



4B994  Equipment for the ``development'' and ``production'' of magnetic and optical storage equipment.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: This entry does not control general-purpose 
sputtering equipment.
Items: a. Equipment specially designed for the application of magnetic 
coating to controlled non-flexible (rigid) magnetic or magneto-optical 
media;
    b. ``Stored program controlled'' equipment specially designed for 
monitoring, grading, exercising or testing controlled rigid magnetic 
media;
    c. Equipment specially designed for the ``production'' or alignment 
of heads or head/disk assemblies for controlled rigid magnetic and 
magneto-optical storage, and electro-mechanical or optical components 
therefor.

                              C. Materials



4C994  Materials specially formulated for and required for the fabrication of head/disk assemblies for controlled magnetic and magneto-optical hard disk drives.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                               D. Software



4D001  ``Software'' specially designed or modified for the ``development'', ``production'' or ``use'' of equipment controlled by 4A001 to 4A004, 4A101, or 
          ``software'' controlled by 4D001 to 4D003.

License Requirements

Reason for Control: NS, MT, CC, AT, NP, XP.

                                                                        
                Control(s)                          Country chart       
                                                                        
NS applies to ``software'' for equipment                                
 controlled by 4A001 to 4A004, 4D001 to                                 
 4D003....................................  NS Column 1                 
MT applies to ``software'' for equipment                                
 controlled by 4A001 to 4A003 or 4A101 for                              
 MT reasons...............................  MT Column 1                 
CC applies to ``software'' for equipment                                
 controlled by 4A003 for CC reasons.......  CC Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

    NP applies to ``software'' for computers with a CTP greater than 
2,000 Mtops, unless a License Exception is available. See Sec. 742.3(b) 
of the EAR for information on applicable licensing review policies.
    XP applies to ``software'' for computers with a CTP greater than 
2,000 Mtops, unless a License Exception is available. See Sec. 742.12

[[Page 561]]

of the EAR for information on applicable licensing review policies.

License Exceptions

CIV: Yes, (see Advisory Notes 2 and 3 to Category 4)
TSR: Yes, except for computers requiring a license.

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



4D002  ``Software'' specially designed or modified to support ``technology'' controlled by 4E001 or 4E002.

License Requirements

Reason for Control: NS, MT, AT, NP, XP.

                                                                        
                Control(s)                          Country chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
MT applies to ``software'' for equipment                                
 controlled by 4A001 to 4A003 or 4A101 for                              
 MT reasons...............................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

    NP applies to ``software'' for computers with a CTP greater than 
2,000 Mtops, unless a License Exception is available. See Sec. 742.3(b) 
of the EAR for information on applicable licensing review policies.
    XP applies to ``software'' for computers with a CTP greater than 
2,000 Mtops, unless a License Exception is available. See Sec. 742.12 of 
the EAR for information on applicable licensing review policies.

License Exceptions

CIV: N/A
TSR: Yes, except ``software'' specifically designed or modified to 
support ``technology'' for computers requiring a license.

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



4D003  Specific ``software'', as described in this entry.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes, except 4D003.c

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Operating system ``software'', ``software'' ``development'' 
tools and compilers specially designed for ``multi-data-stream 
processing'' equipment, in ``source code'';
    b. ``Expert systems'' or ``software'' for ``expert system'' 
inference engines providing both:
    b.1. Time dependent rules; and
    b.2. Primitives to handle the time characteristics of the rules and 
the facts;
    c. ``Software'' having characteristics or performing functions 
exceeding the limits in the ``information security'' entries in Category 
5;
    d. Operating systems specially designed for ``real time processing'' 
equipment that guarantees a ``global interrupt latency time'' of less 
than 20 microseconds.



4D980  ``Software'' specially designed for the ``development'', ``production'', or ``use'' of items controlled by 4A980.

License Requirements

Reason for Control: CC

                                                                        
                Control(s)                          Country Chart       
                                                                        
CC applies to entire entry................  CC Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



4D993  ``Program'' proof and validation ``software'', ``software'' allowing the automatic generation of ``source codes'', and operating systems not controlled 
          by 4D003 that are specially designed for real time processing 
          equipment.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A

[[Page 562]]

Related Definitions: N/A
Items: a. ``Program'' proof and validation ``software'' using 
mathematical and analytical techniques and designed or modified for 
``programs'' having more than 500,000 ``source code'' instructions;
    b. ``Software'' allowing the automatic generation of ``source 
codes'' from data acquired on line from external sensors described in 
the Commerce Control List;
    c. Operating systems not controlled by 4D003 that are specially 
designed for ``real time processing'' equipment that guarantees a 
``global interrupt latency time'' of less than 30 microseconds.



4D994  ``Software'' specially designed or modified for the ``development'', ``production'', or ``use'' of equipment controlled by 4A994, 4B994 and materials 
          controlled by 4C994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                              E. Technology



4E001  ``Technology'' according to the General Technology Note, for the ``development'', ``production'' or ``use'' of equipment controlled by 4A001 to 4A004, 
          4A101 or ``software'' controlled by 4D (except 4A980, 4A993 or 
          4A994).

License Requirements

Reason for Control: NS, MT, CC, AT, NP, XP.

                                                                        
                Control(s)                          Country chart       
                                                                        
NS applies to ``technology'' for equipment                              
 controlled by 4A001 to 4A004, 4D001 to                                 
 4D003....................................  NS Column 1                 
MT applies to ``technology'' for equipment                              
 controlled by 4A001 to 4A003, 4A101 4D001                              
 or 4D002 for MT reasons..................  MT Column 1                 
CC applies to ``technology'' for equipment                              
 controlled by 4A003 for CC reasons.......  CC Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

    NP applies to ``technology'' for computers with a CTP greater than 
2,000 Mtops, unless a License Exception is available. See Sec. 742.3(b) 
of the EAR for information on applicable licensing review policies.
    XP applies to ``technology'' for computers with a CTP greater than 
2,000 Mtops, unless a License Exception is available. See Sec. 742.12 of 
the EAR for information on applicable licensing review policies.

License Exceptions

CIV: N/A
TSR: Yes, except ``technology'' for computers with a CTP > 2,000 Mtops.

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



4E002  Other ``technology''.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: a. ``Technology'' for the ``development'' or ``production'' of 
equipment designed for ``multi-data-stream processing'' where the 
``CTP'' exceeds 120 Mtops;
    b. ``Technology'' ``required'' for the ``development'' or 
``production'' of magnetic hard disk drives with a Maximum Bit Transfer 
Rate (``MBTR'') exceeding 47 Mbits/s.



4E980  ``Technology'' for the ``development'', ``production'', or ``use'' of items controlled by 4A980.

License Requirements

Reason for Control: CC

                                                                        
                Control(s)                          Country Chart       
                                                                        
CC applies to entire entry................  CC Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

[[Page 563]]



4E992  ``Technology'' for the ``development'', ``production'', or ``use'' of equipment controlled by 4A994 and 4B994, materials controlled by 4C994, or 
          ``software'' controlled by 4D992, 4D993, or 4D994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




4E993  ``Technology'' for the ``development'' or ``production'' of graphics accelerators or equipment designed for ``multi-data-stream processing'' and 
          ``technology'' ``required'' for the ``development'' or 
          ``production'' of magnetic hard disk drives.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: a. ``Technology'' for the ``development'' or ``production'' of 
graphics accelerators not controlled by 4A003.d or 4A994.g;
    b. ``Technology'', not controlled by 4E002.a, for the 
``development'' or ``production'' of equipment designed for ``multi-
data-stream processing'';
    c. ``Technology'', not controlled by 4E002.b, ``required'' for the 
``development'' or ``production'' of magnetic hard disk drives with a 
``maximum bit transfer rate'' (``MBTR'') exceeding 11 Mbit/s.

EAR99  Items subject to the EAR that are not elsewhere specified in this 
          CCL Category or in any other category in the CCL are 
          designated by the number EAR99.

                      Advisory Notes for Category 4

    Advisory Note 1: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Romania of the items controlled by Category 4 for national 
security reasons, except:
    a. Computers controlled by 4A001 or 4A002;
    b. ``Digital computers'' controlled by 4A003.b having a ``composite 
theoretical performance (``CPT'') exceeding 100 million theoretical 
operations per second (Mtops);
    c. Computers controlled by 4A004, and specially related equipment, 
``electronic assemblies'' and components therefor;
    d. ``Software'' specially designed and ``technology'' ``required'' 
for the equipment described in this Advisory Note 1 .a, .b, or .c that 
are controlled by 4D or 4E.
    Advisory Note 2: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory end-
users in the People's Republic of China of ``digital computers'', 
specially designed components and related equipment therefor, controlled 
by 4A003.b, .d, .e, .f, or ``software'' controlled by 4D001, provided 
that:
    a. They will be operated by civil end-users for civil applications;
    b. They are exported or reexported as complete systems or 
enhancements to previously exported systems up to the limits in this 
Advisory Note 2.d;
    c. They have been primarily designed and used for non-strategic 
applications;
    d. The ``CTP'' of the ``digital computers'' does not exceed 20 
Mtops;
    e. Equipment containing ``terminal interface equipment'' does not 
exceed:
    1. The limits of Advisory Note 3 to Category 5, Section I 
(Telecommunications);
    2. The limits of 5A002.c.2; or
    3. A ``digital transfer rate'' of 100 Mbits/s on the common media 
for ``network access controllers'' and related equipment controlled by 
5A002.c.3; and
    f. Any controlled ``software'' is the minimum required for the 
``use'' of the approved ``digital computers'' and related equipment.
    Advisory Note 3: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of ``digital computers'', ``electronic 
assemblies'' or related equipment controlled by 4A003, or specially 
designed components therefor, and ``software'' controlled by 4D001, 
provided that:
    a. They will be operated by civil end-users for civil applications;
    b. They have been primarily designed and used for non-strategic 
applications;
    c. They do not exceed any of the following limits:
    1. The ``CTP'' of the ``digital computers'' does not exceed 1,000 
Mtops;
    2. The ``3-D vector rate'' does not exceed 3 million;
    3. The total data transfer rate of equipment controlled by 4A003.g 
does not exceed 400 MB/second;

[[Page 564]]

    d. When exported as enhancements, the enhanced ``digital computer'' 
does not exceed the limit in this Advisory Note 3.c;
    e. Exports of items covered by this Advisory Note 3 shall be subject 
to the following restrictions:
    1. The equipment will be used primarily for the specific non-
strategic application for which the export or reexport has been 
approved; and
    2. The equipment will not be used for the design, ``development'', 
or ``production'' of items controlled for national security reasons; and
    3. The exporter or reexporter shall report promptly any evidence of 
the removal or diversion of the equipment from authorized purposes 
related to the specific license;
    f. For systems where the ``CTP'' exceeds 520 Mtops, the following 
conditions apply:
    1. The licensee or the designated representative of the licensee, 
who must be from a country other than that listed in Country Group D:1, 
must have the right of access to all the equipment and may carry out 
inspections;
    2. The licensee, upon the request of the BXA, must carry out 
inspections to establish that all the equipment and systems exported or 
reexported under the provisions of this Advisory Note:
    a. Are being used for the intended civil purposes; and
    b. Are still located at the installation sites. The licensee shall 
report the findings from the inspection to the BXA (at P.O. Box 273, 
Washington, D.C. 20044) within one month after completing the 
inspection.
    Advisory Note 4: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of equipment controlled by 4A003.g, 
provided that it is exported or reexported for ``use'' in 
interconnecting peripheral equipment to ``digital computers'' not 
controlled by 4A003.b.

    Information on How to Calculate ``Composite Theoretical 
Performance'' (``CTP''):

    Technical Note: ``Composite Theoretical Performance'' (CTP).

                Abbreviations Used in This Technical Note

CE  ``computing element'' (typically an arithmetic logical unit)
FP  floating point
XP  fixed point
t  execution time
XOR  exclusive OR
CPU  central processing unit
TP  theoretical performance (of a single CE)
CTP  ``composite theoretical performance'' (multiple CEs)
R  effective calculating rate
WL  word length
L  word length adjustment
*  multiply

    Execution time `t' is expressed in microseconds, TP and ``CTP'' are 
expressed in Mtops (millions of theoretical operations per second) and 
WL is expressed in bits.

                  Outline of ``CTP'' Calculation Method

    ``CTP'' is a measure of computational performance given in millions 
of theoretical operations per second (Mtops). In calculating the 
``Composite Theoretical Performance'' (``CTP'') of an aggregation of 
``Computing Elements'' (``CEs''), the following three steps are 
required:
    1. Calculate the effective calculating rate (R) for each ``computing 
element'' (``CE'');
    2. Apply the word length adjustment (L) to the effective calculating 
rate (R), resulting in a Theoretical Performance (TP) for each 
``computing element'' (``CE'');
    3. If there is more than one ``computing element'' (``CE''), combine 
the Theoretical Performances (TPs), resulting in a ``Composite 
Theoretical Performance'' (``CTP'') for the aggregation. Details for 
these steps are given in the following section.

    Note 1: For aggregations of multiple ``computing elements'' 
(``CEs'') that have both shared and unshared memory subsystems, the 
calculation of ``CTP'' is completed hierarchically, in two steps: first, 
aggregate the group of ``computing elements'' (``CEs'') sharing memory, 
second calculate the ``CTP'' of the groups using the calculation method 
for multiple ``computing elements'' (``CEs'') not sharing memory.
    Note 2: ``Computing elements'' (``CEs'') that are limited to input/
output and peripheral functions (e.g., disk drive, communication and 
video display controllers) are not aggregated into the ``CTP'' 
calculation.

    The following table shows the method of calculating the ``Effective 
Calculating Rate'' (R) for each ``Computing Element'' (``CE''):
    Step 1: The effective calculating rate R. For Computing Elements 
(CEs) Implementing: Effective calculating Rate, R

    Note: Every ``CE'' must be evaluated independently
    [GRAPHIC] [TIFF OMITTED] TR25MR96.014
    
    If no add is implemented use:
    [GRAPHIC] [TIFF OMITTED] TR25MR96.015
    
    If neither add nor multiply is implemented use the fastest available 
arithmetic operation as follows:
[GRAPHIC] [TIFF OMITTED] TR25MR96.016


[[Page 565]]


    See Notes X and Y.
    [GRAPHIC] [TIFF OMITTED] TR25MR96.017
    
    See Notes X and Y.
    Both FP and XP (R).
    Calculate both Rxp, Rfp.
    For simple logic processors not implementing any of the specified 
arithmetic operations.
[GRAPHIC] [TIFF OMITTED] TR25MR96.018

    Where tlog is the execute time of the XOR, or for logic 
hardware not implementing the XOR, the fastest simple logic operation.
    See Notes X and Z.
    For special logic processors not using any of the specified 
arithmetic or logic operations. R = Rt x WL/64
    Where R is the number of results per second, WL is the number of 
bits upon which the logic operation occurs, and 64 is a factor to 
normalize to a 64 bit operation.

    Note W: For a pipelined ``CE'' capable of executing up to one 
arithmetic or logic operation every clock cycle after the pipeline is 
full, a pipelined rate can be established. The effective calculating 
rate (R) for such a ``CE'' is the faster of the pipelined rate or non-
pipelined execution rate.
    Note X: For a ``CE'' that performs multiple operations of a specific 
type in a single cycle (e.g., two additions per cycle or two identical 
logic operations per cycle), the execution time t is given by:
[GRAPHIC] [TIFF OMITTED] TR25MR96.019

    ``Computing elements'' (``CEs'') that perform different types of 
arithmetic or logic operations in a single machine cycle are to be 
treated as multiple separate ``computing elements'' (``CEs'') performing 
simultaneously (e.g., a ``CE'' performing an addition and a 
multiplication in one cycle is to be treated as two ``CEs'', the first 
performing an addition in one cycle and the second performing a 
multiplication in one cycle).
    If a single ``Computing element'' (``CE'') has both scalar function 
and vector function, use the shorter execution time value.

    Note Y: For the ``CE'' that does not implement FP add or FP 
multiply, but that performs FP divide:
[GRAPHIC] [TIFF OMITTED] TR25MR96.020

    If the ``CE'' implements FP reciprocal, but not FP add, FP multiply 
or FP divide, then:
[GRAPHIC] [TIFF OMITTED] TR25MR96.021

    If the divide is not implemented, the fp reciprocal should be used.
    If none of the specified instructions is implemented, the effective 
floating point (FP) rate is 0.

    Note Z: In simple logic operations, a single instruction performs a 
single logic manipulation of no more than two operands of given lengths. 
In complex logic operations, a single instruction performs multiple 
logic manipulations to produce one or more results from two or more 
operands.

    Rates should be calculated for all supported operand lengths 
considering both pipelined operations (if supported), and non-pipelined 
operations, using the fastest executing instruction for each operand 
length based on:
    1. Pipelined or register-to-register operations. Exclude 
extraordinarily short execution times generated for operations on a 
predetermined operand or operands (for example, multiplication by 0 or 
1). If no register-to-register operations are implemented, continue with 
(2).
    2. The faster of register-to-memory or memory-to-register 
operations; if these also do not exist, then continue with (3).
    3. Memory-to-memory.
    In each case above, use the shortest execution time certified by the 
manufacturer.
    Step 2: TP for each supported operand length WL:
    Adjust the effective rate R (or Rt) by the word length 
adjustment L as follows:
[GRAPHIC] [TIFF OMITTED] TR25MR96.022

    Note: The word length WL used in these calculations is the operand 
length in bits. (If an operation uses operands of different lengths, 
select the largest word length.)

    The combination of a mantissa ALU and an exponent ALU of a floating 
point processor or unit is considered to be one ``computing Element'' 
(``CE'') with a Word Length (WL) equal to the number of bits in the data 
representation (typically 32 or 64) for purposes of the ``Composite 
Theoretical Performance'' (``CTP'') calculations.

[[Page 566]]

    This adjustment is not applied to specialized logic processors that 
do not use XOR instructions. In this case TP = R.
    Select the maximum resulting value of TP for:
    Each XP-only ``CE'' (Rxp);
    Each FP-only ``CE'' (Rfp);
    Each combined FP and XP ``CE'' (R);
    Each simple logic processor not implementing any of the specified 
arithmetic operations; and
    Each special logic processor not using any of the specified 
arithmetic or logic operations.
    Step 3: ``CTP'' for aggregations of ``CEs'', including CPU's:
    For a CPU with a single ``CE'', ``CTP'' = TP (for CEs performing 
both fixed and floating point operations, TP = max (TPfp, 
TPxp)).
    ``CTP'' for aggregations of multiple ``CEs'' operating 
simultaneously is calculated as follows:

    Note 1: For aggregations that do not allow all of the ``CEs'' to run 
simultaneously, the possible combination of ``CEs'' that provides the 
largest ``CTP'' should be used. The TP of each contributing ``CE'' is to 
be calculated at its maximum value theoretically possible before the 
``CTP'' of the combination is derived.

    N.B.: To determine the possible combinations of simultaneously 
operating ``CEs'', generate an instruction sequence that initiates 
operations in multiple ``CEs'', beginning with the slowest ``CE'' (the 
one needing the largest number of cycles to complete its operation) and 
ending with the fastest ``CE''. At each cycle of the sequence, the 
combination of ``CEs'' that are in operation during that cycle is a 
possible combination. The instruction sequence must take into account 
all hardware and/or architectural constraints on overlapping operations.

    Note 2: A single integrated circuit chip or board assembly may 
contain multiple ``CEs''.
    Note 3: Simultaneous operations are assumed to exist when the 
computer manufacturer claims concurrent, parallel or simultaneous 
operation or execution in a manual or brochure for the computer.
    Note 4: ``CTP'' values are not to be aggregated for ``CE''-
combinations (inter)connected by ``Local Area Networks'', Wide Area 
Networks, Input/Output shared connections/devices, I/O controllers and 
any communication interconnection implemented by ``software''.
    Note 5: ``CTP'' values must be aggregated for multiple ``CEs'' 
specially designed to enhance performance by aggregation, operating 
simultaneously and sharing memory,-- or multiple memory/``CE''--
combinations operating simultaneously utilizing specially designed 
hardware. This aggregation does not apply to ``electronic assemblies'' 
controlled by 4A003.c.

    ``CTP'' = TP1 + C2 * TP2 + . . . + 
Cn * TPn, where the TPs are ordered by value, with 
TP1, being the highest, TP2 being the second 
highest, . . . and TPn being the lowest. Ci is a 
coefficient determined by the strength of the interconnection between 
``CEs'', as follows:
    For multiple ``CEs'' operating simultaneously and sharing memory:
    [GRAPHIC] [TIFF OMITTED] TR25MR96.023
    
    Note 1: When the ``CTP'' calculated by the above method does not 
exceed 194 Mtops, the following formula may be used to calculate 
Ci:
[GRAPHIC] [TIFF OMITTED] TR25MR96.024

    where m = the number of ``CEs'' or groups of ``CEs'' sharing access.
    Provided:
    1. The TPi of each ``CE'' or group of ``CEs'' does not 
exceed 30 Mtops;
    2. The ``CEs'' or groups of ``CEs'' share access to main memory 
(excluding cache memory) over a single channel; and
    3. Only one ``CE'' or group of ``CEs'' can have use of the channel 
at any given time.

    N.B.: This does not apply to items controlled under Category 3.

    Note 2: ``CEs'' share memory if they access a common segment of 
solid state memory. This memory may include cache memory, main memory, 
or other internal memory. Peripheral memory devices such as disk drives, 
tape drives, or RAM disks are not included.

    For multiple ``CEs'' or groups of ``CEs'' not sharing memory, 
interconnected by one or more data channels:

Ci=0.75*ki (i=2, . . ., 32) (see NOTE on 
          ki factor)
=0.60*ki (i=33, . . ., 64)
=0.45*ki (i=65, . . ., 256)
=0.30*ki (i>256)

    The value of Ci is based on the number of ``CEs'', not 
the number of nodes.

where ki=min (Si/Kr, 1), and
Kr=normalizing factor of 20 MByte/s.
Si=sum of the maximum data rates (in units of MBytes/s) for 
all data channels connected to the ith ``CE'' or group of 
``CEs'' sharing memory.

    When calculating a Ci for a group of ``CEs'', the number 
of the first ``CE'' in a group determines the proper limit for 
Ci. For example, in an aggregation of groups consisting of 3 
``CEs'' each, the 22nd group will contain ``CE''64, 
``CE''65 and ``CE''66 . The proper limit for 
Ci for this group is 0.60.
    Aggregation (of ``CEs'' or groups of ``CEs'') should be from the 
fastest-to-slowest; i.e.:
    TP1TP2TP3; 
and in the case of TPi=TPi+1, from the 
largest to smallest, i.e.:
    CiCi+1

    Note: The ki factor is not to be applied to ``CEs'' to 2 
to 12 if the TP i / of the ``CE'' or group of ``CEs'' is more than 50 
Mtops; i.e., Ci for ``CEs'' 2 to 12 is 0.75.

         Category 5--Telecommunications and Information Security

    Notice: Category 5 entries are divided into two sections. (I) 
Telecommunications and (II) Information Security.


[[Page 567]]



                          I. Telecommunications

    Notes: 1. The control status of components, ``lasers'', test and 
``production'' equipment, materials and ``software'' therefor that are 
specially designed for telecommunications equipment or systems is 
defined in the telecommunications entries in this Category.
    2. ``Digital computers'', related equipment or ``software'', when 
essential for the operation and support of telecommunications equipment 
described by the telecommunications equipment in this Category, are 
regarded as specially designed components, provided they are the 
standard models customarily supplied by the manufacturer. This includes 
operation, administration, maintenance, engineering or billing computer 
systems.

                 A. Equipment, Assemblies and Components




5A001  Any type of telecommunications equipment having any of the following characteristics, functions or features:

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to 5A001.a.....................  NS Column 1                 
NS applies to 5A001.b., c., d., .e, or .f.  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A for 5A001.a;
$5000 for 5A001.b, .c, .d, and .f;
$3000 for 5A001.e
GBS: Yes, except 5A001.a, b.8, and b.9
CIV: Yes, except 5A001.a, b.8, and b.9

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Any type of telecommunications equipment having any of the 
following characteristics, functions or features:
    a.1. Specially designed to withstand transitory electronic effects 
or electromagnetic pulse arising from a nuclear explosion;
    a.2. Specially hardened to withstand gamma, neutron or ion 
radiation;
    a.3. Specially designed to operate outside the temperature range 
from 218 K (-55  deg.C) to 397 K (124  deg.C).

    Note: 5A001.a.3 applies only to electronic equipment.
    Note: 5A001.a.2 and a.3 do not apply to equipment on board 
satellites.

    b. Telecommunication transmission equipment or systems and specially 
designed components and accessories therefor, having any of the 
characteristics, functions or features:
    Note: Telecommunication transmission equipment:
    a. Categorized as follows, or combinations thereof:
    1. Radio equipment (e.g., transmitters, receivers and transceivers);
    2. Line terminating equipment;
    3. Intermediate amplifier equipment;
    4. Repeater equipment;
    5. Regenerator equipment;
    6. Translation encoders (transcoders);
    7. Multiplex equipment (statistical multiplex included);
    8. Modulators/demodulators (modems);
    9. Transmultiplex equipment (see CCITT Rec. G.7Ol);
    10. ``Stored program controlled'' digital crossconnection equipment;
    11. ``Gateways'' and bridges;
    12. ``Media access units''; and
    b. Designed for use in single or multi-channel communication via:
    1. Wire (line);
    2. Coaxial cable;
    3. Optical fiber cable;
    4. Electromagnetic radiation; or
    5. Underwater acoustic wave propagation.

    b.1. Employing digital techniques, including digital processing of 
analog signals, and designed to operate at a ``digital transfer rate'' 
at the highest multiplex level exceeding 45 Mbit/s or a ``total digital 
transfer rate'' exceeding 90 Mbit/s.

    Note: 5A001.b.1. does not control equipment specially designed to be 
integrated and operated in any satellite system for civil use.

    b.2. Being ``stored program controlled'' digital cross connect 
equipment with a ``digital transfer rate'' exceeding 8.5 Mbit/s per 
port.
    b.3. Being equipment containing:
    b.3.a. Modems using the ``bandwidth of one voice channel'' with a 
``data signalling rate'' exceeding 28,800 bits/s;
    b.3.b. ``Communication channel controllers'' with a digital output 
having a ``data signalling rate'' exceeding 2.1 Mbit/s per channel; or
    b.3.c. ``Network access controllers'' and their related common 
medium having a ``digital transfer rate'' exceeding 156 Mbit/s;

    Note: If any non-controlled equipment contains a ``network access 
controller'', it cannot have any type of telecommunications interface 
except those described in, but not controlled by, 5A001.b.3.

    b.4 Employing a ``laser'' and having any of the following 
characteristics:
    b.4.a. Having a transmission wavelength exceeding 1,000 nm;
    b.4.b. Employing analog techniques and having a bandwidth exceeding 
45 MHz;
    b.4.c. Employing coherent optical transmission or coherent optical 
detection techniques (also called optical heterodyne or homodyne 
techniques);
    b.4.d. Employing wavelength division multiplexing techniques; or
    b.4.e. Performing ``optical amplification''.
    b.5. Radio equipment operating at input or output frequencies 
exceeding:
    b.5.a. 31 GHz for satellite-earth station applications; or
    b.5.b. 26.5 GHz for other applications;

    Note: 5A001.b.5.b. does not control equipment for civil use when 
conforming with an International

[[Page 568]]

Telecommunicatios Union (ITU) allocated band between 26.5 GHz and 31 
GHz.

    b.6. Being radio equipment:
    b.6.a. Employing quadrature-amplitude-modulation (QAM) techniques 
above level 4 if the ``total digital transfer rate'' exceeds 8.5 Mbit/s;
    b.6.b. Employing quadrature-amplitude-modulation (QAM) techniques 
above level 16 if the ``total digital transfer rate'' is equal to or 
less than 8.5 Mbit/s; or
    b.6.c. Employing other digital modulation techniques and having a 
``spectral efficiency'' greater than 3 bit/sec/Hz;

    Note 1: 5A001.b.6 does not control equipment specially designed to 
be integrated and operated in any satellite system for civil use.
    Note 2: 5A001.b.6. does not control radio relay equipment for 
operation in an ITU allocated band:
    a.1. Not exceeding 960 MHz; or
    a.2. With a ``total digital transfer rate'' not exceeding 8.5 Mbit/
s; and
    b. Having a ``spectral efficiency'' not exceeding 4 bit/sec/Hz.

    b.7 Being radio equipment operating in the 1.5 to 87.5 MHz band and 
having either of the following characteristics:
    b.7.a.1. Automatically predicting and selecting frequencies and 
``total digital transfer rates'' per channel to optimize the 
transmission; and
    b.7.a.2. Incorporating a linear power amplifier configuration having 
a capability to support multiple signals simultaneously at an output 
power of 1 kW or more in the 1.5 to 30 Mhz frequency range or 250 W or 
more in the 30 to 87.5 MHz frequency range, over an ``instantaneous 
bandwidth'' of one octave or more and with an output harmonic and 
distortion content of better than -80 dB; or
    b.7.b. Incorporating adaptive techniques providing more than 15 dB 
suppression of an interfering signal.
    b.8. Being radio equipment employing ``spread spectrum'' or 
``frequency agility'' (frequency hopping) techniques having any of the 
following characteristics:
    b.8.a. User programmable spreading codes; or
    b.8.b. A total transmitted bandwidth that is 100 or more times the 
bandwidth of any one information channel and in excess of 50 kHz.
    b.9. Being digitally controlled radio receivers having more than 
1,000 channels, that:
    b.9.a. Search or scan automatically a part of the electromagnetic 
spectrum;
    b.9.b. Identify the received signals or the type of transmitter; and
    b.9.c. Have a ``frequency switching time'' of less than 1 ms;
    b.10. Providing functions of digital ``signal processing'' as 
follows:
    b.10.a. Voice coding at rates less than 2,400 bit/s;
    b.10.b. Employing circuitry that incorporates ``user-accessible 
programmability'' of digital ``signal processing'' circuits exceeding 
the limits of 4A003.b;
    b.11. Being underwater communications systems having any of the 
following characteristics:
    b.11.a. An acoustic carrier frequency outside the range of 20 to 60 
kHz;
    b.11.b. Using an electromagnetic carrier frequency below 30 kHz; or
    b.11.c. Using electronic beam steering techniques.
    c. ``Stored program controlled'' switching equipment and related 
signalling systems having any of the following characteristics, 
functions or features; and specially designed components and accessories 
therefor:

    Note: Statistical multiplexers with digital input and digital output 
that provide switching are treated as ``stored program controlled'' 
switches.

    c.1. ``Common channel signalling'',

    Note: Signalling systems in which the signalling channel is carried 
in and refers to no more than 32 multiplexed channels forming a trunk 
line of no more than 2.1 Mbit/s, and in which the signalling information 
is carried in a fixed, time division multiplexed channel without the use 
of labelled messages, are not considered to be ``common channel 
signalling'' systems.

    c.2. Containing ``Integrated Services Digital Network'' (ISDN) 
functions and having either of the following:
    c.2.a. Switch-terminal (e.g., subscriber line) interfaces with a 
``digital transfer rate'' at the highest multiplex level exceeding 
192,000 bit/s, including the associated signalling channel (e.g., 2B+D); 
or
    c.2.b. The capability that a signalling message received by a switch 
on a given channel that is related to a communication on another channel 
may be passed through to another switch.

    Note: 5A001.c.2. does not preclude:
    a. The evaluation and appropriate actions taken by the receiving 
switch.
    b. Unrelated user message traffic on a D channel of ISDN.

    c.3. Multi-level priority and pre-emption for circuit switching;

    Note: 5A001.c.3. does not control single-level call preemption.

    c.4. ``Dynamic adaptive routing'';
    c.5. Routing or switching of ``datagram'' packets;
    c.6. Routing or switching of ``fast select'' packets;

    Note: The restrictions in 5A001.c.5. and c.6. do not apply to 
networks restricted to using only ``network access controllers'' or to 
``network access controllers'' themselves.

    c.7. Designed for automatic hand-off of cellular radio calls to 
other cellular switches or automatic connection to a centralized 
subscriber data base common to more than one switch;
    c.8. Being packet switches, circuit switches and routers with ports 
or lines exceeding either:
    c.8.a. A ``data signalling rate'' of 64,000 bit/s per channel for a 
``communications channel controller''; or


[[Page 569]]


    Note: 5A001.c.8.a. does not preclude the multiplexing over a 
composite link of communications channels not controlled by 5A001.b.1.

    c.8.b. A ``digital transfer rate'' of 33 Mbit/s for a ``network 
access controller'' and related common media.
    c.9. ``Optical switching'';
    c.10. Employing ``Asynchronous Transfer Mode'' (ATM) techniques;
    c.11. Containing ``stored program controlled'' digital crossconnect 
equipment with ``digital transfer rate'' exceeding 8.5 Mbit/s per port;
    d. Centralized network control having both of the following 
characteristics:
    d.1. Receives data from the nodes; and
    d.2. Processes these data in order to provide control of traffic not 
requiring operator decisions, and thereby performing ``dynamic adaptive 
routing'';

    Note: 5A001.d. does not preclude control of traffic as a function of 
predictable statistical traffic conditions.

    e. Optical fiber communication cables, optical fibers and 
accessories therefor, as follows:
    e.1. Optical fiber or cable of more than 50 m in length having 
either of the following characteristics:
    e.1.a. Designed for single mode operation; or
    e.1.b. For optical fibers, specified by the manufacturer as being 
capable of withstanding a Proof Test tensile stress of 
2 x 109 N/m2 or more;

    Technical Note: Proof Test: On-line or off-line production screen 
testing that dynamically applies a prescribed tensile stress over a 0.5 
to 3 m length of fiber at a running rate of 2 to 5 m/s while passing 
between capstans approximately 150 mm in diameter. The ambient 
temperature is a nominal 293 K (20  deg.C) and relative humidity of 40%.

    N.B.: Equivalent national standards may be used for executing the 
Proof Test.

    e.2. Optical fiber cables and accessories designed for underwater 
use (for fiber-optic hull penetrators or connectors, see 8A002.c);
    f. Phased array antennae, operating above 10.5 GHz, containing 
active elements and distributed components, and designed to permit 
electronic control of beam shaping and pointing, except for landing 
systems with instruments meeting International Civil Aviation 
Organization (ICAO) standards (microwave landing systems (MLS)).



5A101  Telemetering and telecontrol equipment usable for ``missiles''.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



5A980  Communications intercepting devices; and parts and accessories therefor.

License Requirements

Reason for Control:

Controls on equipment described in this entry are maintained in 
accordance with the Omnibus Crime Control and Safe Streets Act of 1968 
(Pub. L. 90-351). A license is required for ALL destinations, regardless 
of end-use. Accordingly, a column specific to this control does not 
appear on the Commerce Country Chart. (See Sec. 742.13 of the EAR for 
additional information on the scope of this control.)

    Note: These items are subject to the United Nations Security Council 
arms embargo against Rwanda described in Sec. 746.8 of the EAR.

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




5A990  Any type of telecommunications equipment, not controlled by 5A001.a, specially designed to operate outside the temperature range from 219 K (-54  deg.C) 
          to 397 K (124  deg.C).

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



5A991  Transmission equipment, not controlled by 5A001.b.

License Requirements


[[Page 570]]


Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Modems using the ``bandwidth of one voice channel'' with a 
``data signalling rate'' exceeding 9,600 bits per second;
    b. ``Communication channel controllers'' with a digital output 
having a ``data signalling rate'' exceeding 64,000 bit/s per channel; or
    c. ``Network access controller'' and their related common medium 
having a ``digital transfer rate'' exceeding 33 Mbit/s.




5A992  Mobile communications equipment, n.e.s., and assemblies and components therefor.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




5A993  Radio relay communications equipment designed for use at frequencies equal to or exceeding 19.7 GHz and assemblies and components therefor, n.e.s.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




5A994  ``Data (message) switching'' equipment or systems designed for ``packet-mode operation'' and assemblies and components therefor, n.e.s.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: Data (message) switching is defined as the technique 
for: (a) Accepting data groups (including messages, packets, or other 
digital or telegraphic information groups transmitted as a composite 
whole); (b) Storing (buffering) data groups as necessary; (c) Processing 
part of all the data groups, as necessary, for the purpose of: (1) 
Control (routing, priority, formatting, code conversion, error control, 
retransmission or journaling); (2) Transmission; or (3) Multiplexing; 
and (d) Retransmitting (processed) data groups when transmission or 
receiving facilities are available.
Items: The list of items controlled is contained in the ECCN heading.

              B. Test, Inspection and Production Equipment



5B001  Equipment, and specially designed components and accessories therefor.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: Yes
CIV: Yes

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definition: This entry does not control optical fibers and 
``optical fiber

[[Page 571]]

preform'' characterization equipment not using semiconductor ``lasers''.
Items: a. Equipment and specially designed components and accessories 
therefor, specially designed for:
    a.1. ``Development'' of equipment, materials, functions, or features 
controlled by 5A001, 5B001, 5C001, 5D001 or 5E001, including measuring 
or test equipment;
    a.2. ``Production'' of equipment, materials, functions, or features 
controlled by 5A001, 5B001, 5C001, 5D001 or 5E001, including measuring, 
test or repair equipment;
    a.3. ``Use'' of equipment, materials, functions, or features 
exceeding any of the least stringent control criteria applicable in 
5A001, 5B001, 5C001, 5D001 or 5E001, including measuring, repair or test 
equipment.
    b. Other equipment as follows:
    b.1. Bit error rate (BER) test equipment designed or modified to 
test the equipment controlled by 5A001.b.1.;
    b.2. Data communication protocol analyzers, testers and simulators 
for functions controlled by 5A001;
    b.3. Stand alone ``stored program controlled'' radio transmission 
media simulators/channel estimators specially designed for testing 
equipment controlled by 5A001.b.5.



5B994  Telecommunications test equipment, n.e.s.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $1,000 for Syria; N/A to Iran
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                              C. Materials




5C001  Preforms of glass or of any other material optimized for the manufacture of optical fibers controlled by 5A001.e.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: Yes
CIV: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                               D. Software



5D001:  Telecommunications ``Software''.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: Yes
TSR: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items:
    a. ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of equipment or materials 
controlled by 5A001, 5B001, or 5C001.
    b. ``Software'' specially designed or modified to support 
``technology'' controlled by 5E001.
    c. Specific ``software'' as follows:
    c.1. ``Generic software'', other than in machine-executable form, 
specially designed or modified for the ``use'' of ``stored program 
controlled'' digital switching equipment or systems;
    c.2. ``Software'', other than in machine-executable form, specially 
designed or modified for the ``use'' of digital cellular radio equipment 
or systems;
    c.3. ``Software'' specially designed or modified to provide 
characteristics, functions or features of equipment controlled by 5A001 
or 5B001;
    c.4. ``Software'' that provides capability of recovering ``source 
code'' of telecommunications ``software'' controlled by this Category.
    c.5. ``Software'' specially designed for the ``development'' or 
``production'' of ``software'' controlled by 5D001;




5D101  ``Software'' designed or modified for the ``development'', ``production'' or ``use'' of items controlled by 5A101.

License Requirements

Reason for Control: MT, AT

[[Page 572]]



                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




5D990  ``Software'' specially designed or modified for the ``development'', ``production'', or ``use'' of equipment controlled by 5A990 and 5A991.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 2                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




5D991  ``Software'' specially designed or modified for the ``development'', ``production'', or ``use'' of telecommunications test equipment controlled by 5B994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




5D992  ``Software'' specially designed or modified for the ``development'', ``production'' or ``use'' of mobile communications equipment controlled by 5A992.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




5D993  ``Software'' specially designed or modified for the ``development'', ``production'' or ``use'' of radio relay communication equipment controlled by 
          5A993.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




5D994  ``Software'' specially designed or modified for the ``development'', ``production'' or ``use'' of data (message) switching equipment controlled by 5A994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                              E. Technology



5E001  Telecommunications ``technology''.

License Requirements

Reason for Control: NS, AT

[[Page 573]]



                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. ``Technology'' according to the General Technology Note for 
the ``development'', ``production'' or ``use'' (excluding operation) of 
equipment, systems, materials or ``software'' controlled by 5A001, 
5B001, 5C001, or 5D001.
    b. Specific technologies, as follows:
    b.1. ``Required'' technology for the ``development'' or 
``production'' of telecommunications equipment specially designed to be 
used on board satellites.
    b.2. ``Technology'' for the ``development'' or ``use'' of laser 
communication techniques with the capability of automatically acquiring 
and tracking signals and maintaining communications through 
exoatmosphere or sub-surface (water) media;
    b.3. ``Technology'' for the processing and application of coatings 
to optical fiber specially designed to make it suitable for underwater 
use;
    b.4. ``Technology'' for the ``development'' or ``production'' of 
equipment employing ``Synchronous Digital Hierarchy'' (SDH) or 
``Synchronous Optical Network'' (SONET) techniques;
    b.5. ``Technology'' for the ``development'' or ``production'' of 
``switch fabric'' exceeding 64,000 bits per second per information 
channel other than for digital cross connect integrated in the switch;
    b.6. ``Technology'' for the ``development'' or ``production'' of 
centralized network control;
    b.7. ``Technology'' for the ``development'' or ``production'' of 
digital cellular radio systems;
    b.8. ``Technology'' for the ``development'' or ``production'' of 
``Integrated Services Digital Network'' (ISDN).
    b.9. ``Technology'' for the ``development'' of QAM techniques, for 
radio equipment, above level 4.



5E101  ``Technology'' according to the General Technology Note for the ``development'', ``production'' or ``use'' of equipment controlled by 5A101 or 
          ``software'' controlled by 5D101.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1 .               
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



5E990  Technology for the ``development'', ``production'' or ``use'' of equipment controlled by 5A990 or 5A991 or ``software'' controlled by 5D990.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



5E991  ``Technology'' for the ``development'', ``production'', or ``use'' of telecommunications test equipment controlled by 5B994, or ``software'' controlled 
          by 5D991.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



5E992  ``Technology'' for the ``development'', ``production'', or ``use'' of mobile communications equipment controlled by 5A992 or ``software'' controlled by 
          5D992.

License Requirements


[[Page 574]]


Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



5E993  ``Technology'' for the ``development'', ``production'', or ``use'' of radio relay communication equipment controlled by 5A993, or ``software'' controlled 
          by 5D993.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



5E994  ``Technology'' for the ``development'', ``production'' or ``use'' of data (message) switching equipment controlled by 5A994, or ``software'' controlled 
          by 5D994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

EAR99  Items subject to the EAR that are not elsewhere specified in this 
          CCL Category or in any other category in the CCL are 
          designated by the number EAR99.

                  Advisory Notes for Telecommunications

    Advisory Note 1: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Estonia, Latvia and Lithuania of equipment or systems 
controlled by 5A001.b, .c, .d, .e, and .f, and test equipment, 
``software'' and ``use'' technology therefor, provided that:
    a. The equipment or systems:
    1. Are designed for and will be used for specific civil 
applications; and
    2. Will be operated in the importing country by a civil end-user who 
has furnished to the supplier a Statement by Ultimate Consignee and 
Purchaser (Form BXA-711), or a statement on company letterhead described 
in Sec. 748.11(e) of the EAR certifying that the equipment or systems 
will used only for the specific end-use;
    b. The information to accompany each application will include:
    1. End-use assurances provided by the importer and backed by the 
importing country;
    2. Acceptance of on-site inspection of the equipment or system by 
the licensee or the designated representative of the licensee from a 
country other than that listed in Country Group D:1;
    3. A full description of the equipment or systems to be provided; 
and
    4. The end-use information clearly stated including the installation 
site and intended application.
    Advisory Note 2: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in the People's Republic of China of the following 
communications, measuring or test equipment:
    a. ``Telecommunications transmission equipment'' controlled by 
5A001.b.1, b.2, b.4 provided that:
    1. It is intended for general commercial traffic in a civil 
communication system;
    2. It is designed for operation at a ``digital transfer rate'' at 
the highest multiplex level of 140 Mbit/s or less and at a ``total 
digital transfer rate'' of 168 Mbit/s or less;

    N.B.: An additional 2 Mbit/s for operation, maintenance and service 
communications may be added to the ``total digital transfer rate'' of 
168 Mbit/s.

    3. For equipment controlled by 5A001.b.4, the transmission 
wavelength must not exceed 1,370 nm and optical fiber must be used as 
the communication medium;
    4. It is to be installed under the supervision of the seller in a 
permanent circuit; and
    5. It is to be operated by the civilian authorities of the importing 
country;

[[Page 575]]

    b. Measuring or test equipment controlled by 5B001.a.3, 5B001.b.1, 
5B001.b.2, that is necessary for the ``use'' (i.e., installation, 
operation and maintenance) of equipment exported under the conditions of 
this Advisory Note, provided that:
    1. It is designed for ``use'' with communication transmission 
equipment operating at a ``digital transfer rate'' of 140 Mbit/s or 
less, and at a ``total digital transfer rate'' of 168 Mbit/s or less; 
and
    2. It will be supplied in the minimum quantity required for the 
transmission equipment eligible for administrative exception treatment.

    N.B. 1: Where possible, built-in test equipment (BITE) will be 
provided for installation or maintenance of transmission equipment 
eligible for administrative exception treatment under this Advisory Note 
rather than individual test equipment.
    N.B. 2: The license application must include the locations of the 
connection points, types of equipment being connected and transmission 
rates.

    Advisory Note 3: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in the People's Republic of China of ``network access 
controllers'' controlled by 5A001.b.3.c, when exported under the 
conditions of Advisory Note 2 to Category 4, with a ``digital transfer 
rate'' not exceeding 100 Mbits/s.
    Advisory Note 4: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in the People's Republic of China of the following, provided 
that the associated multiplex equipment is designed for operation at a 
``digital transfer rate'' at the highest multiplex level of 140 Mbit/s 
or less:
    a. Digital microwave radio relay equipment controlled by 5A001.b.1 
or 5B001.b.6, for fixed civil installations, operating at fixed 
frequencies not exceeding 23.6 GHz, with a ``total digital transfer 
rate'' not exceeding 168 Mbit/s;
    b. Ground communication radio equipment for use with temporarily 
fixed services operated by civil authorities and designed to be used at 
fixed frequencies not exceeding 23.6 GHz;
    c. Radio transmission media simulators/channel estimators controlled 
by 5B001.b.3, designed for testing equipment described in this Advisory 
Note 4.a or .b.
    Advisory Note 5: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in the People's Republic of China of equipment controlled by 
5A001.c.1 or ``software'' for ``common channel signalling'' controlled 
by 5D001.a or 5D001.c.3, provided that:
    a. The ``common channel signalling'' is restricted to quasi-
associated or associated mode of operation according to CCITT Red Book, 
Volume X, fascicle X.1;
    b. No functions, other than those described in the following 
recommendations in the Red Book of CCITT: Q.701 to Q.709, Q.721 to 
Q.725, Q.791 and Q.795, are included;

    N.B.: Only functions described in paragraph 2 of Q.795 are to be 
included. These Q.795 functions may not provide centralized network 
control having all of the following characteristics:
    a. Is based on a network management protocol; and
    b. Does both of the following:
    1. Receives data from the nodes; and
    2. Processes these data in order to:
    a. Control traffic; and
    b. Directionalize paths;
    c. No form of ``Integrated Services Digital Network'' (ISDN) is 
provided;
    d. Equipment or ``software'' is restricted to that necessary for the 
operation within a city or, for ``Private Automatic Branch Exchanges'', 
within a radius of 100 km;

    N.B. 1: Where a recognized city contains more than one subordinate 
entity or city, the larger unified boundary prevails. In no case is the 
boundary larger than that of Beijing.
    N.B. 2: A suburban entity that does not belong to a city, but is 
located within a circle with a diameter of 50 km and with a city in the 
middle, can be considered as part of a city.

    e. No means are provided that will allow ``common channel 
signalling'' via analog transmission links;
    f. All the applicable conditions enumerated in this Advisory Note 
5.a to .e are accomplished by:
    1. Omission or physical removal of equipment or coding;
    2. Over-writing with non-functioning statements; or
    3. Reasonably non-reversible modifications.

    Advisory Note 6: Licenses are likely to be approved, as 
administrative exceptions, for export to satisfactory end-users in the 
People's Republic of China of equipment controlled by 5B001.a.2, as 
follows:
    a. Optical fiber or ``optical fiber preform'' characterization 
equipment using semiconductor ``laser'' with a wavelength not exceeding 
1,370 nm;
    b. Equipment for the manufacture of silica-based ``optical fiber 
preforms'', optical fibers or cables.
    Advisory Note 7: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in the People's Republic of China of test and inspection 
equipment and specially designed components and accessories therefor 
controlled by 5B001.a or 5B001.b and ``software'' and technology for 
such equipment, components and accessories, for the repair of 
telecommunications equipment, provided that:
    a. Such equipment, components, accessories, ``software'' and 
technology:
    1. Are specially designed for repair;
    2. Are to be used to repair controlled equipment authorized for 
export or equipment that is not controlled for national security 
reasons;
    3. Are shipped in reasonable quantities necessary for the types and 
quantities of exported equipment being serviced;
    4. Do not provide local production facilities;
    5. Do not provide for testing of individual electronic components; 
and

[[Page 576]]

    6. Do not include ``software'' in ``source code'' controlled by 
5D001.c.1;
    b. The repair does not upgrade the equipment or ``software'';
    c. All the records of repair activity are kept by a representative 
of the supplier located in a country other than that listed in Country 
Group D:1; and
    d. The information to accompany each license application shall 
include:
    1. A complete list of equipment to be provided; and
    2. A clear identification of the users and their activities.

    N.B.: Nothing in this Advisory Note 7 shall be construed as 
overriding controls in other ECCNs contained in the Commerce Control 
List.

    Advisory Note 8: Licenses are likely to be approved, as 
administrative exceptions, for export to satisfactory end-users in the 
People's Republic of China of ``optical fiber preforms'' controlled by 
5C001, specially designed for the manufacture of silica-based optical 
fibers, provided they are specially designed to produce non-militarized 
silica-based optical fibers that are optimized to operate at a 
wavelength not exceeding 1,370 nm.
    Advisory Note 9: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to the People's 
Republic of China of minimum quantities of semiconductor ``lasers'' 
designed and intended for use with a civil fiber optic communication 
system that would be either not controlled for national security reasons 
or eligible for administrative exceptions treatment under Advisory Note 
2 (Notes for Telecommunications), having an output wavelength not 
exceeding 1,370 nm and a CW power output not exceeding 100 mW.
    Advisory Note 10: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Albania, Bulgaria, the People's Republic of China, 
Mongolia, Romania or Vietnam of telecommunication equipment for optical 
fibers controlled by 5A001.b.4.a, provided that the transmission 
wavelength does not exceed 1,370 nm.
    Advisory Note 11: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Albania, Bulgaria, the People's Republic of China, 
Mongolia, Romania or Vietnam of cables or fibers controlled by 5A001.e, 
provided that:
    a. Quantities are normal for the envisaged end-use; and
    b. They are for a specified civil end-use.
    Advisory Note 12: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Albania, Bulgaria, the People's Republic of China, 
Mongolia, Romania or Vietnam of optical fiber test equipment controlled 
by 5B001.a.3 using a transmission wavelength not exceeding 1,370 nm.
    Advisory Note 13: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of digital radio equipment or systems 
controlled by 5A001.b.1 or 5A001.b.6, provided that:
    a. The equipment or system is intended for general commercial 
international traffic in an international civil telecommunication 
system, one end of which is in a country listed in Country Group A:1;
    b. It is to be installed in a permanent circuit under the 
supervision of the licensee;
    c. No means are to be provided for the transmission of traffic 
between points in a single country listed in Country Group D:1 other 
than Romania;
    d. The ``digital transfer rate'' at the highest multiplex level does 
not exceed 156 Mbit/s;
    e. The equipment does not employ either of the following:
    1. Quadrature Amplitude Modulation (QAM) techniques above level 64; 
or
    2. Other digital modulation techniques with a ``spectral 
efficiency'' exceeding 6 bit/s/Hz;
    f. The equipment is not controlled by 5A001.b.4 or b.7 or by the 
``Information Security'' entries in Category 5;
    g. Spare parts shall remain under the control of the licensee or the 
licensee's designated representative;

    Note: The supervision of the spare parts by the licensee may be 
effected by stock inventory procedures and does not require the 
permanent on-site presence of a representative of the licensee.

    h. The licensee or the licensee's designated representative who 
shall be from a country other than that listed in Country Group D:1, 
shall have the right of access to all the equipment;
    i. There will be no transfer of technology controlled for national 
security reasons;
    j. Supervision of systems installation, operation and maintenance 
shall be performed by the licensee or the licensee's designated 
representative, who shall be from a country other than that listed in 
Country Group D:1, using only personnel from countries other than those 
listed in Country Group D:1;

    N.B. 1: Supervision of maintenance includes preventive maintenance 
at periodic intervals and intervention for major functions.
    N.B. 2: This does not mean that only nationals from the exporting 
country should install the system.

    k. Upon request, the licensee shall carry out an inspection to 
establish that:
    1. The system is being used for the intended civil purpose; and
    2. All the equipment exported under the provisions of this Advisory 
Note is being used for the stated purpose and is still located at the 
installation sites. The licensee shall report the findings from the 
inspection

[[Page 577]]

to the BXA within one month after completing the inspection.
    Advisory Note 14: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Groups D:1 of fiber optic telecommunication 
transmission system or equipment controlled by 5A001.b.1 and 
5A001.b.4.a, fiber optic cables controlled by 5A001.e, or coaxial cable 
telecommunications transmission systems controlled by 5A001.b.1, and the 
test equipment, specially designed components, accessories, ``software'' 
and technology, necessary for the ``use'' thereof, provided that:
    a. They are intended for international telecommunications links 
dedicated to international civil traffic between the following 
locations:
    1.a. From the following countries: Austria, Belgium, the Czech 
Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, 
Ireland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Norway, 
Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, 
Turkey, or the United Kingdom;
    b. To the following cities as listed by country: Albania (Tirana), 
Armenia (Yerevan), Azerbaijan (Baku), Bulgaria (Sophia, Varna), Belarus 
(Minsk), Georgia (Tbilissi), Kazakhstan (Alma-Ata), Kyrgyzstan 
(Bishkek), Moldova (Chisinau), Romania (Bucharest, Constanza), Russia 
(Moscow, Novorossiisk, Rostov-on-Don, St. Petersburg, Volgograd), 
Tajikistan (Dushanbe), Turkmenistan (Ashgabat), Ukraine (Kiev, Odessa, 
Sebastopol), Uzbekistan (Tashkent) or:
    2.a. From the following countries: Australia, Canada, Hong Kong, 
Japan, New Zealand, South Korea, or the United States;
    b. To the following cities as listed by country: People's Republic 
of China (Shanghai, Guangzhou), Russia (Khabarovsk, Nakhodka, 
Vladivostok, Yuzhno-Sadhalinsk), Vietnam (Hanoi, Ho Chi Minh City);

    N.B.: No traffic shall be carried between points in countries listed 
in Country Group D:1, except in Estonia, Latvia, and Lithuania.

    b. [Reserved]
    c. They are designed to operate at a ``digital transfer rate'' at 
the highest multiplex level of 623 Mbit/s or less;
    d. The ``laser'' transmission wavelength does not exceed 1,590 nm;
    e. The equipment, if employing synchronous transmission techniques, 
must conform to one of the approved SONET or SDH standards or 
recommendations (i.e. ANSI or CCITT);
    f. Supervision of systems installation and maintenance of controlled 
transmission equipment must be performed by the licensee or the 
licensee's designated representative, who must be from a country other 
than that listed in Country Group D:1. Any portion of the installation 
of controlled transmission equipment which would require the transfer of 
controlled technology must be performed by the licensee or the 
licensee's designated representative using only personnel from countries 
other than those listed in Country Group D:1;

    N.B. 1: Supervision of maintenance includes preventive maintenance 
at periodic intervals and intervention for major malfunctions.
    N.B. 2: This is not meant to require that only nationals from the 
exporting country should install the system.

    g. Controlled test equipment and controlled spare parts must remain 
under the supervision of the licensee or the licensee's designated 
representative, who shall be from a country other than that listed in 
Country Group D:1;

    N.B.: The supervision of the test equipment and spare parts by the 
licensee may be effected by stock inventory procedures and does not 
require the permanent on-site presence of a representative of the 
licensee.

    h. The licensee or the licensee's designated representative who 
shall be from a country other than that listed in Country Group D:1, 
must have the right of access to all the equipment;
    i. Upon request of the government of the exporting country, the 
licensee must carry out an inspection to establish that:
    1. The system is being used for the intended civil purpose; and
    2. All the equipment exported under the provisions of this Advisory 
Note is being used for the stated end purpose and is still located at 
the installation sites. The licensee shall report the findings from the 
inspection to the BXA (at P.O. Box 273, Washington D.C. 20044) within 
one month after completing the inspection.
    j. The license application must include a system plan containing 
equipment quantities and approximate locations for the proposed system. 
After final installation, unless already provided, the applicant must 
provide to its licensing authorities the final location of the installed 
equipment to the greatest degree of precision available and a map of the 
final cable route.
    Advisory Note 15: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of fiber optic telecommunication 
transmission systems or equipment controlled by 5A001.b.1 and 
5A001.b.4.a, digital radio equipment or systems controlled by 5A001.b.1 
and 5A001.b.6.a, coaxial cable telecommunications transmission equipment 
or systems controlled by 5A001.b.1, or fiber optic cables controlled by 
5A001.e and the test equipment, specially designed components, 
accessories, ``software'' and technology, necessary for the ``use 
thereof, provided that:
    a. They are intended for:

[[Page 578]]

    1. Intra-city or inter-city links within Albania, Armenia, 
Azerbaijan, Bulgaria, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, 
Mongolia, Romania, Russia, Tajikistan, Turkmenistan, Ukraine, 
Uzbekistan, or Vietnam.

    N.B.: Intra-city links provide service within a local service area 
which must not extend beyond a circle with a diameter of 50 km and with 
the city in the middle.

    2. Inter-city links between cities in Albania, Armenia, Azerbaijan, 
Bulgaria, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, 
Romania, Russia, Tajikistan, Turkmenistan, Ukraine, or Uzbekistan;
    b. They are designed to operate at a ``digital transfer rate'' at 
the highest multiplex level of 156 Mbit/s or less;
    c. The ``laser'' transmission wavelength does not exceed 1,590 nm;
    d. The radio transmission system does not employ Quadrature 
Amplitude Modulation (QAM) techniques above level 16;
    e. The equipment or systems are designed and intended to be used for 
fixed civil applications directly connected to the civilian network;
    f. The equipment, if employing synchronous transmission techniques, 
must conform to one of the approved SONET or SDH standards or 
recommendations (i.e., ANSI or CCITT);
    g. Supervision of systems installation and of maintenance of 
controlled transmission equipment must be performed by the licensee or 
the licensee's designated representative, who must be from a country 
other than that listed in Country Group D:1. Any portion of the 
installation of controlled transmission equipment which would require 
the transfer of controlled technology must be performed by the licensee 
or the licensee's designated representative using only personnel from 
countries other than those listed in Country Group D:1;

    N.B. 1: Supervision of maintenance includes preventive maintenance 
at period intervals and intervention for major malfunctions.
    N.B. 2: This is not meant to require that only nationals from the 
exporting country should install the system.

    h. Controlled test equipment and controlled spare parts must remain 
under the supervision of the Country Group A:1 member country licensee;

    N.B.: The supervision of the test equipment and spare parts by the 
licensee may be effected by stock inventory procedures and does not 
require the permanent on-site presence of a representative of the 
licensee.

    i. The Country Group A:1 country licensee or his designated 
representative, who must be from a country other than that listed in 
Country Group D:1, must have the right of access to all the equipment;
    j. Upon request of the government of the exporting country, the 
licensee must carry out an inspection to establish that:
    1. The system is being used for the intended civil purpose; and
    2. All the equipment exported under the provisions of this Advisory 
Note is being used for the stated end purpose and is still located at 
the installation sites. The licensee shall report the findings from the 
inspection to the Bureau of Export Administration within one month after 
completing the inspection.
    k. The license application must include a system plan containing 
equipment quantities and approximate locations for the proposed system. 
After final installation, unless already provided, the applicant must 
provide to its licensing authorities the final location of the installed 
equipment to the greatest degree of precision available and a map of the 
final cable route.
    Advisory Note 16: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of systems or equipment controlled by 
5A001.c.1 or 5A001.c.2, or ``software'' for ``common channel 
signalling'' controlled by 5D001.a or 5D001.c.3, and test equipment, 
specially designed components, accessories and technology necessary for 
the ``use'' thereof, provided that:
    a. They are intended for fiber optic, radio, or coaxial cable 
international telecommunication links fulfilling the provisions of 
Advisory Note l4.a and b.;
    b. The ``common channel signalling'' (CCS) is restricted to 
associated mode of operation. Signalling channels and all related 
traffic channels must be carried on the same transmission system. Only 
international traffic between the locations listed in Advisory Note l4.a 
is permitted (i.e. calls originating in a country listed in Country 
Group D:1 will not be rerouted to any country listed in Country Group 
D:1;
    c. No general service of ``Integrated Service Digital Network'' 
(ISDN) is provided by the country listed in Country Group D:1 gateway 
switch, except:
    1. The ISDN user part (ISP) may be used on the international 
signalling link;
    2. ISDN service may be provided for specified subscribers on the 
Country Group D:1 countries gateway switch;
    d. Supervision of systems installation and of maintenance of 
controlled equipment and ``software'' must be performed by the licensee 
or the licensee's designated representative, who must be from a country 
other than that listed in Country Group D:1. Any portion of the 
installation of controlled equipment and ``software'' that would require 
the transfer of controlled technology must be performed by the licensee 
or the licensee's designated representative using only personnel from 
countries other than those listed in Country Group D:1;


[[Page 579]]


    N.B. 1: Supervision of maintenance includes preventive maintenance 
at periodic intervals and intervention for major malfunctions.
    N.B. 2: This is not meant to require that only nationals from the 
exporting country should install the system.

    e. Controlled test equipment and controlled spare parts must remain 
under the supervision of the Country Group A:1 country licensee;

    N.B: The supervision of the test equipment and spare parts by the 
licensee may be effected by stock inventory procedures and does not 
require the permanent on-site presence of a representative of the 
licensee.

    f. All ``common channel signalling'' equipment including spares, is 
operational in such a form that any removal from or manipulation on the 
end in a country listed in Country Group D:1 is immediately recognized 
(e.g. through remote maintenance and monitoring procedures) by the 
operator (i.e., an operator from one of the countries listed in Advisory 
Note l4.a.1.a or a.2.a);
    g. The licensee or operator (i.e., an operator from one of the 
countries listed in Advisory Note l4.a.1.a or a.2.a) takes immediate 
action to ensure that non-operational equipment is repaired or replaced 
within a week of the failure;
    h. The Country Group A:1 country licensee or the designated 
representative of the licensee, who must be from a country other than 
that listed in Country Group D:1, must have the right of access to all 
the equipment;
    i. Nationals from countries listed in Country Group D:1 are not 
given tools or training allowing them to modify the approved 
configuration or divert equipment or ``software'' to non-approved uses;
    j. Upon request of the government of the exporting country, the 
licensee or operator (i.e., an operator from one of the countries listed 
in Advisory Note l4.a.1.a or a.2.a) must carry out an inspection to 
establish that:
    1. The system is being used for the intended civil purpose; and
    2. All the equipment exported under the provisions of this Advisory 
Note is being used for the stated end purpose and is still located at 
the installation sites. The licensee shall report the findings from the 
inspection to the BXA (at P.O. Box 273, Washington, D.C. 20044) within 
one month after completing the inspection.
    k. The operator (i.e., an operator from one of the countries listed 
in Advisory Note l4.a.1.a or a.2.a) informs the exporting government 
immediately of any sign of misuse or diversion of ``common channel 
signalling'' hardware or ``software'' on the other end of the 
international link, or of any failure of the operator at the other end 
(i.e, the operator from one of the countries) listed in Advisory Note 
l4.a.l.b or a.2.b) to allow the operator to comply with the terms of the 
license;
    l. Contractual agreements between the licensee and the operators on 
both ends of the link require that the operator at the other end of the 
international link (i.e., the operator from one of the countries listed 
in Advisory Note l4.a.1.b or a.2.b) complies fully with all the 
conditions stipulated in the license and that, in the event of failure 
by the latter to comply, the operator who is from one of the countries 
listed in Advisory Note l4.a.l.a or a.2.a will inform the authorities of 
such country and the government of the exporting country.
    Advisory Note 17: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of equipment controlled by 5A001.c.4, 
5A001.c.5 or 5A001.c.6, ``software'' controlled by 5D001.c.3 that 
provides features described in 5A001.c.4, 5A001.c.5, or 5A001.c.6, 
specially designed components and accessories therefor, and test 
equipment, ``software'' and technology necessary for the ``use'' 
thereof, provided that:
    a. The equipment or ``software'' will be used for a specified civil 
end-use by a civil end-user only;
    b. The equipment or ``software'' does not perform circuit switching 
or circuit switching functions;
    c. Supervision of systems installation and of maintenance of 
controlled equipment or ``software'' must be performed by the licensee 
or the licensee's designated representative, who must be from a country 
other than that listed in Country Group D:1. Any portion of the 
installation of controlled equipment or ``software'' that would require 
the transfer of controlled technology must be performed by the licensee 
or the licensee's designated representative using only personnel from 
countries other than those listed in Country Group D:1.

    N.B. 1: Supervision of maintenance includes preventative maintenance 
at periodic intervals and intervention for major malfunctions.
    N.B. 2: This is not meant to require that only exporting country 
should install the system.
    N.B. 3: This does not apply if the equipment or ``software'' is 
designed for installation by the user without further substantial 
support by the supplier.

    d. The Country Group A:1 country licensee or the designated 
representative of the licensee, who must be from a country other than 
that listed in Country Group D:1, must have the right of access to all 
the equipment and may carry out inspections;
    e. Upon request of the government of the exporting country, the 
licensee must carry out an inspection to establish that:
    1. The system is being used for the intended civil purpose; and
    2. All the equipment exported under the provisions of this Advisory 
Note is being used for the stated end purpose and is still located at 
the installation site. The licensee shall report the findings from the 
inspection to the BXA (at P.O. Box 273, Washington,

[[Page 580]]

D.C. 20044) within one month after completing the inspection.
    Advisory Note 18: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of ``software'' controlled by 5D001.c.1, 
and related technology, ``software'' tools and test equipment necessary 
for the ``development'', ``production'' or ``use'' thereof, provided 
that:
    a. The ``software'', technology, ``software'' tools and test 
equipment will be limited to those necessary for problem analysis and 
reporting or for local adaptation of the switching equipment such as for 
subscriber terminal interface, network interface, billing, 
administration or similar adaptations for local civilian 
telecommunications requirements, by a civil end-user;
    b. No ``software'' or technology ``required'' for the 
``development'', ``production'' or ``use'' of functions, features or 
equipment controlled by the telecommunications entries in 5A, 5B or 5E 
of Subcategory I to Category 5 shall be included;

    Note: This Advisory Note does not release from control the 
``software'' in ``source code'' comprising that ``software'' that 
controls the management and execution of programs, commonly referred to 
as the operating system.

    c. Such ``software'', technology, ``software'' tools or test 
equipment do not provide the capability to decompile, disassemble or 
perform similar activities to ``software'' in ``object code'' or similar 
format and thereby reverse-engineer controlled characteristics, 
functions or features;
    d. The licensee or the licensee's designated representative, who 
shall be from a country other than that listed in Country Group D:1, 
shall have the right of access to the site of, and computing equipment 
being used to perform, such adaptations so as to have access to:
    1. The ``software'', technology, ``software'' tools and test 
equipment referred to in this Advisory Note; and
    2. All ``software'' developed or derived from the ``software'' 
technology, ``software'' tools and test equipment licensed under this 
Advisory Note;
    e. Upon request of the BXA, the licensee must carry out an 
inspection to establish that:
    1. The ``software'', technology, ``software'' tools and test 
equipment referred to in this Advisory Note are being used for the 
intended civil purpose; and
    2. All the ``software'', technology, ``software'' tools and test 
equipment exported under the provisions of this Advisory Note are being 
used for the stated end purpose and are still located at the 
installation sites. The licensee shall report the findings from the 
inspection to the Bureau of Export Administration within one month after 
completing the inspection.
    Advisory Note 19: Licenses are likely to be approved, as 
Administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of components, parts and materials, 
controlled for national security reasons by entries on the Commerce 
Control List, necessary for the ``production'' of telecommunication 
equipment or systems, provided that:
    a. The ``production'' equipment and technology for the equipment 
concerned has been previously legally exported;
    b. The quantity of components, parts and materials exported is 
normal for the stated end-use;
    c. Authorization under this Advisory Note will cover a program of 
supplies up to two calendar years for the ``production'' by the same 
licensee of equipment authorized under this Advisory Note 19.a;
    d. No technology or ``software'' ``required'' for ``development'', 
``production'' or ``use'' shall be included;
    e. The components, parts and materials exported will not be 
permitted to exceed the performance threshold or features of the 
equipment previously authorized;
    f. The contract includes explicit conditions to ensure that:
    1. The equipment manufactured with the exported components, parts 
and materials is not exported or reexported, either directly or 
indirectly, to another country listed in Country Group D:1;
    2. The supplier or licensor may appoint a representative who is 
entitled to verify that the ``production'' technology and ``production'' 
equipment or systems serve their intended use;
    3. Any modification of the capabilities or functions of the 
equipment produced must be approved by the supplier or licensor;
    4. The supplier's or licensor's personnel have right of access to 
all the facilities directly involved in the production of the equipment 
or systems;
    5. The equipment or systems produced will be for civil end-use only.
    Advisory Note 20: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to Albania, 
Armenia, Azerbaijan, Bulgaria, Belarus, Estonia, Georgia, Kazakhstan, 
Kyrgyzstan, Latvia, Lithuania, Moldova, Mongolia, the People's Republic 
of China, Romania, Russia, Tajikistan, Turkmenistan, Ukraine, 
Uzbekistan, and Vietnam of telecommunications equipment or systems 
controlled by 5A001.b.1, 5A001.b.7, 5A001.c, 5A001.d or 5A001.e, 
measuring, test or repair equipment controlled by 5B001.a.3 or 5B001.b, 
and specially designed components and accessories, ``software'' and 
technology necessary for the ``use'' thereof, provided that:
    a. Optical fiber telecommunication transmission equipment or 
systems:

[[Page 581]]

    1. Are designed to operate at a ``digital transfer rate'' of 623 
Mbit/s or less at the highest multiplex level; and
    2. Are designed to operate on a ``laser'' transmission wavelength 
not exceeding 1,590 nm.
    b. Digital radio equipment or systems:
    1. Are designed to operate at a ``digital transfer rate'' of 623 
Mbit/s or less at the highest multiplex level;
    2. Do not employ QAM techniques exceeding level 512 or other digital 
modulation techniques having a ``spectral efficiency'' exceeding 9 bit/
s/Hz;
    c. ``CCS'':
    1. Is limited to the associated mode of operation;
    2. Signalling and related speech/data channels are limited to two 
signalling points and must not be routed via different transmission 
media or different routes;

    N.B.: A single route consists of one or more consecutive serial 
connection links that may use different transmission media.

    3. Message Transfer Part (MTP) level 3 signalling routes are limited 
to two signalling points;

    N.B.: MTP Level 3 is found in Q.704 and related recommendations of 
the IT-T Q series for ``CCS''.

    4. For point-to-point inter-city ``CCS'' connectivity between two 
signalling points, where permitted by this Advisory Note 20.c.1, c.2, or 
c.3, the Originating Point Codes (OPC) and Destination Point Codes (DPC) 
for all signalling messages over such signalling links cannot be 
reinstalled or changed following the vendor's initial software 
installation without prior authorization, being available in object code 
only; all compilation mechanisms and administrative tools that allow for 
modification of the Point Codes are removed following installation;
    d. The equipment or systems are designed and intended to be used for 
fixed civil applications directly connected to a civilian network;
    e. The equipment or systems, if employing synchronous transmission 
techniques, conform to one of the ANSI or IT-T approved standards or 
recommendations for ``SONET'' or ``SDH'';
    f. Measuring, test or repair equipment controlled by 5B001.a.3 or 
5B001.b and controlled spare parts remain under the supervision of the 
licensee or the licensee's designated representative;
    g. The licensee or the licensee's designated representative have the 
right of access to all the equipment or systems and may carry out 
inspections;
    h. Upon the request of the BXA, the licensee must carry out 
inspections to establish that:
    1. All the equipment or systems exported under the provisions of 
this Advisory Note are being used for the intended civil purpose; and
    2. Are still located at the installation sites. The licensee shall 
report the findings from the inspection to the BXA (at P.O. Box 273, 
Washington DC 20044) within one month after completing the inspection;
    i. Supervision of systems installation and maintenance of controlled 
transmission equipment is performed by the licensee or the licensee's 
designated representative. Any portion of the installation of controlled 
transmission equipment that would require the transfer of controlled 
technology is performed by the licensee or the licensee's designated 
representative;

    N.B. 1: Supervision of maintenance includes prevention maintenance 
at periodic intervals and intervention for major malfunctions.

    j. License applications to export systems or equipment for ``common 
channel signalling'' identify the intended system routes and locations 
of signalling points.

                        II. Information Security

    Note: The control status of ``information security'' equipment, 
``software'', systems, application specific ``electronic assemblies'', 
modules, integrated circuits, components, or functions is defined in the 
``information security'' entries in this Category even if they are 
components or ``electronic assemblies'' of other equipment.

    Note: ``Information security'' equipment, ``software'', systems, 
application specific ``assemblies'', modules, integrated circuits, 
components, technology or functions that are excepted from control, not 
controlled, or eligible for licensing under an Advisory Note are under 
the licensing jurisdiction of the Department of Commerce. In addition, 
anti-virus software controlled under 5D002.c is also under the licensing 
jurisdiction of the Department of Commerce. For all other items, 
exporters requesting a license from the Bureau of Export Administration 
must provide a statement from the Department of State, Office of Defense 
Trade Controls, verifying that the equipment intended for export is 
under the licensing jurisdiction of the Department of Commerce.

                 A. Equipment, Assemblies and Components



5A002  Systems, Equipment, Application Specific ``Electronic Assemblies'', Modules or Integrated Circuits for ``Information Security'', and Specially Designed 
          Components Therefor

License Requirements

Reason for Control: NS, AT, EI

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

    EI applies only to encryption items transferred from the U.S. 
Munitions List to the Commerce Control List consistent with E.O. 13026 
of November 15, 1996 (61 FR 58767) and

[[Page 582]]

pursuant to the Presidential Memorandum of that date. Refer to 
Sec. 742.15.

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Designed or modified to use ``cryptography'' employing digital 
techniques to ensure ``information security'';
    b. Designed or modified to perform cryptanalytic functions;
    c. Designed or modified to use ``cryptography'' employing analog 
techniques to ensure ``information security'';

    Note: 5A002.c does not control the following:
    1. Equipment using ``fixed'' band scrambling not exceeding 8 bands 
and in which the transpositions change not more frequently than once 
every second;
    2. Equipment using ``fixed'' band scrambling exceeding 8 bands and 
in which the transpositions change not more frequently than once every 
ten seconds;
    3. Equipment using ``fixed'' frequency inversion and in which the 
transpositions change not more frequently than once every second;
    4. Facsimile equipment;
    5. Restricted audience broadcast equipment; and
    6. Civil television equipment;

    d. Designed or modified to suppress the compromising emanations of 
information-bearing signals;

    Note: 5A002.d does not control equipment specially designed to 
suppress emanations for reasons of health and safety.

    e. Designed or modified to use cryptographic techniques to generate 
the spreading code for ``spread spectrum'' or hopping code for 
``frequency agility'' systems;
    f. Designed or modified to provide certified or certifiable 
``multilevel security'' or user isolation at a level exceeding Class B2 
of the Trusted Computer System Evaluation Criteria (TCSEC) or 
equivalent;
    g. Communications cable systems designed or modified using 
mechanical, electrical or electronic means to detect surreptitious 
intrusion.

    Note: 5A002 does not control:
    a. ``Personalized smart cards'' or specially designed components 
therefor, with any of the following characteristics:
    1. Not capable of message traffic encryption or encryption of user-
supplied data or related key management functions therefor; or
    2. When restricted for use in equipment or systems excluded from 
control under the note to 5A002.c, or under paragraphs b through h of 
this note.
    b. Equipment containing ``fixed'' data compression or coding 
techniques;
    c. Receiving equipment for radio broadcast, pay television or 
similar restricted audience television of the consumer type, without 
digital encryption and where digital decryption is limited to the video, 
audio or management functions;
    d. Portable or mobile radiotelephones for civil use (e.g., for use 
with commercial civil cellular radiocommunications systems) that are not 
capable of end-to-end encryption;
    e. Decryption functions specially designed to allow the execution of 
copy-protected ``software'', provided the decryption functions are not 
user-accessible;
    f. Access control equipment, such as automatic teller machines, 
self-service statement printers or point of sale terminals, that 
protects password or personal identification numbers (PIN) or similar 
data to prevent unauthorized access to facilities but does not allow for 
encryption of files or text, except as directly related to the password 
or PIN protection;
    g. Data authentication equipment that calculates a Message 
Authentication Code (MAC) or similar result to ensure no alteration of 
text has taken place, or to authenticate users, but does not allow for 
encryption of data, text or other media other than that needed for the 
authentication;
    h. Cryptographic equipment specially designed and limited for use in 
machines for banking or money transactions, such as automatic teller 
machines, self-service statement printers or point of sale terminals.



5A995:  ``Information security'' equipment, n.e.s.; (e.g., cryptographic, cryptoanalytic, and cryptologic equipment, n.e.s.), and components therefor.

License Requirements

    Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 2                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value

    The list of items controlled is contained in the ECCN heading.

              B. Test, Inspection and Production Equipment



5B002  Information Security--test, inspection and ``production'' equipment.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value

    a. Equipment specially designed for:
    a.1. The ``development'' of equipment or functions controlled by 
5A002, 5B002, 5D002 or 5E002, including measuring or test equipment;
    a.2. The ``production'' of equipment or functions controlled by 
5A002, 5B002, 5D002,

[[Page 583]]

or 5E002, including measuring, test, repair or production equipment;
    b. Measuring equipment specially designed to evaluate and validate 
the ``information security'' functions controlled by 5A002 or 5D002.

                        C. Materials  [Reserved]

                               D. Software



5D002  Information Security ``Software''

License Requirements

Reason for Control: NS, AT, EI

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

    EI controls apply to encryption software transferred from the U.S. 
Munitions List to the Commerce Control List consistent with E.O. 13026 
of November 15, 1996 (61 FR 58767) and pursuant to the Presidential 
Memorandum of that date. Refer to Sec. 742.15 of the EAR.

     Note: Encryption software is controlled because of its functional 
capacity, and not because of any informational value of such software; 
such software is not accorded the same treatment under the EAR as other 
``software''; and for export licensing purposes encryption software is 
treated under the EAR in the same manner as a commodity included in ECCN 
5A002. License Exceptions for commodities are not applicable.
    Note: Encryption software controlled for EI reasons under this entry 
remains subject to the EAR even when made publicly available in 
accordance with part 734 of the EAR, and it is not eligible for the 
General Software Note (``mass market'' treatment under License Exception 
TSU for mass market software). After a one-time BXA review, certain 
encryption software may be released from EI controls and made eligible 
for the General Software Note treatment as well as other provisions of 
the EAR applicable to software. Refer to Sec. 742.15(b)(1) of the EAR, 
and Supplement No. 6 to part 742.

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: 5D002.a controls ``software'' designed or modified 
to use ``cryptography'' employing digital or analog techniques to ensure 
``information security''.
Items: a. ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of equipment or ``software'' 
controlled by 5A002, 5B002 or 5D002.
    b. ``Software'' specially designed or modified to support 
``technology'' controlled by 5E002.
    c. Specific ``software'' as follows:
    c.1. ``Software'' having the characteristics, or performing or 
simulating the functions of the equipment controlled by 5A002 or 5B002;
    c.2. ``Software'' to certify ``software'' controlled by 5D002.c.1;
    c.3. ``Software'' designed or modified to protect against malicious 
computer damage, e.g., viruses;

    Note: 5D002 does not control:
    a. ``Software required'' for the ``use'' of equipment excluded from 
control under the Note to 5A002;
    b. ``Software'' providing any of the functions of equipment excluded 
from control under the Note to 5A002.



5D995  ``Software'', n.e.s., specially designed or modified for the ``development'', ``production'', or use of information security or cryptologic equipment 
          (e.g., equipment controlled by 5A995).

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 2                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value

    The list of items controlled is contained in the ECCN heading.

                              E. Technology



5E002  ``Technology'' according to the General Technology Note for the ``development'', ``production'' or use of equipment controlled by 5A002 or 5B002 or 
          ``software'' controlled by 5D002

License Requirements

Reason for Control: NS, AT, EI

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

    EI controls applies only to encryption technology transferred from 
the U.S. Munitions List consistent with E.O. 13026 of November 15, 1996 
(61 FR 58767) and pursuant to the Presidential Memorandum of that date. 
Refer to Sec. 742.15 of the EAR.

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A

[[Page 584]]

Items: The list of items controlled is contained in the ECCN heading.



5E995  ``Technology'', n.e.s., for the ``development'', ``production'', or ``use'' of ``information security'' or cryptologic equipment (e.g., equipment 
          controlled by 5A995), or software controlled by 5D995.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 2                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A

    The list of items controlled is contained in the ECCN heading.

EAR99  Items subject to the EAR that are not elsewhere specified in this 
          CCL Category or in any other category in the CCL are 
          designated by the number EAR99.

               Advisory Notes For ``Information Security''

    Advisory Note 1: Licenses are likely to be approved, as 
administrative exceptions, for exports and reexports to satisfactory 
end-users in Country Group D:1 of the following cryptographic equipment, 
provided that the equipment is intended for civil use:
    a. Access control equipment, such as automatic teller machines, 
self-service statement printers or point of sale terminals, that 
protects password or personal identification numbers (PIN) or similar 
data to prevent unauthorized access to facilities, but does not allow 
for encryption of files or text, except as directly related to the 
password of PIN protection;
    b. Data authentication equipment that calculates a Message 
Authentication Code (MAC) or similar result to ensure no alteration of 
text has taken place, or to authenticate users, but does not allow for 
encryption of data, text or other media other than that needed for the 
authentication;
    c. Cryptographic equipment specially designed, developed or modified 
for use in machines for banking or money transactions, such as automatic 
teller machines, self-service statement printers, point of sale 
terminals or equipment for the encryption of interbanking transactions, 
and intended for use only in such applications.
    Advisory Note 2: (Eligible for TSR). Licenses are likely to be 
approved, as administrative exceptions, for exports and reexports to 
satisfactory end-users in Country Group D:1 of the following 
cryptographic ``software'':
    a. ``Software'' required for the ``use'' of equipment eligible for 
administrative exceptions treatment under Advisory Note 1 (Notes for 
``Information Security'').
    b. ``Software'' providing any of the functions of equipment eligible 
for administrative exceptions treatment under Advisory Note 1 (Notes for 
``Information Security'').

                           Category 6--Sensors

                 A. Equipment, Assemblies and Components



6A001  Acoustics.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: Yes for 6A001.a.1.b.4 and 6A001.b
CIV: Yes for 6A001.a.1.b.4 and 6A001.b

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Marine acoustic systems, equipment and specially designed 
components therefor, as follows:
    a.1. Active (transmitting or transmitting-and-receiving) systems, 
equipment or specially designed components therefor, as follows:

    Note: 6A001.a.1 does not control:
    a.1.a Depth sounders operating vertically below the apparatus, not 
including a scanning function exceeding 10 deg., and limited 
to measuring the depth of water, the distance of submerged or buried 
objects or fish finding.
    a.1.b. Acoustic beacons, as follows:
    a.1.b.1. Acoustic emergency beacons; or
    a.1.b.2. Pingers specially designed for relocating or returning to 
an underwater position.

    a.1.a. Wide-swath bathymetric survey systems for sea bed topographic 
mapping:
    a.1.a.1. Designed:
    a.1.a.1.a. To take measurements at an angle exceeding 10 deg. from 
the vertical; and
    a.1.a.1.b. To measure depths exceeding 600 m below the water 
surface; and
    a.1.a.2. Designed:
    a.1.a.2.a. To incorporate multiple beams any of which is less than 
2 deg.; or
    a.1.a.2.b. To provide data accuracies of better than 0.5% of water 
depth across the swath averaged over the individual measurements within 
the swath;
    a.1.b. Object detection or location systems having any of the 
following:
    a.1.b.1. A transmitting frequency below 10 kHz;

[[Page 585]]

    a.1.b.2. Sound pressure level exceeding 224 dB (reference 1 
micropascal at 1 m) for equipment with an operating frequency in the 
band from 10 kHz to 24 kHz inclusive;
    a.1.b.3. Sound pressure level exceeding 235 dB (reference 1 
micropascal at 1 m) for equipment with an operating frequency in the 
band between 24 kHz and 30 kHz;
    a.1.b.4. Forming beams of less than 1 deg. on any axis and having an 
operating frequency of less than 100 kHz;
    a.1.b.5. Designed to withstand pressure during normal operation at 
depths exceeding 1,000 m and having transducers:
    a.1.b.5.a. Dynamically compensated for pressure; or
    a.1.b.5.b. Incorporating other than lead zirconate titanate as the 
transduction element; or
    a.1.b.6. Designed to operate with an unambiguous display range 
exceeding 5,120 m;
    a.1.c. Acoustic projectors, including transducers, incorporating 
piezoelectric, magnetostrictive, electrostrictive, electrodynamic or 
hydraulic elements operating individually or in a designed combination, 
having any of the following characteristics:

    Note 1: The control status of acoustic projectors, including 
transducers, specially designed for other equipment is determined by the 
control status of the other equipment.
    Note 2: 6A001.a.1.c does not control electronic sources that direct 
the sound vertically only, or mechanical (e.g., air gun or vapor-shock 
gun) or chemical (e.g., explosive) sources.

    a.1.c.1. An instantaneous radiated acoustic power density exceeding 
0.01 mW/mm \2\/Hz for devices operating at frequencies below 10 kHz;
    a.1.c.2. A continuously radiated acoustic power density exceeding 
0.001 mW/mm \2\/Hz for devices operating at frequencies below 10 kHz;
    a.1.c.3. Designed to withstand pressure during normal operation at 
depths exceeding 1,000 m; or
    a.1.c.4. Side-lobe suppression exceeding 22 dB.

    Technical Note: Acoustic power density is obtained by dividing the 
output acoustic power by the product of the area of the radiating 
surface and the frequency of operation.

    a.1.d. Acoustic systems, equipment and specially designed components 
for determining the position of surface vessels or underwater vehicles 
designed:
    a.1.d.1. To operate at a range exceeding 1,000 m with a positioning 
accuracy of less than 10 m rms (root mean square) when measured at a 
range of 1,000 m; or
    a.1.d.2. To withstand pressure at depths exceeding 1,000 m;

    Note: 6A001.a.1.d.1 includes equipment using coherent ``signal 
processing'' between two or more beacons and the hydrophone unit carried 
by the surface vessel or underwater vehicle, or capable of automatically 
correcting speed-of-sound propagation errors for calculation of a point.

    a.2. Passive (receiving, whether or not related in normal 
application to separate active equipment) systems, equipment or 
specially designed components therefor, as follows:
    a.2.a. Hydrophones (transducers) with any of the following 
characteristics:
    a.2.a.1. Incorporating continuous flexible sensors or assemblies of 
discrete sensor elements with either a diameter or length less than 20 
mm and with a separation between elements of less than 20 mm;
    a.2.a.2. Having any of the following sensing elements:
    a.2.a.2.a. Optical fibers;
    a.2.a.2.b. Piezoelectric polymers; or
    a.2.a.2.c. Flexible piezoelectric ceramic materials;
    a.2.a.3. Hydrophone sensitivity better than--180 dB at any depth 
with no acceleration compensation;
    a.2.a.4. When designed to operate at depths not exceeding 35 m, 
hydrophone sensitivity better than--186 dB with acceleration 
compensation;
    a.2.a.5. When designed for normal operation at depths exceeding 35 m 
hydrophone sensitivity better than--192 dB with acceleration 
compensation;
    a.2.a.6. When designed for normal operation at depths exceeding 100 
m hydrophone sensitivity better than--204 dB; or
    a.2.a.7. Designed for operation at depths exceeding 1,000 m;

    Technical Note: Hydrophone sensitivity is defined as twenty times 
the logarithm to the base 10 of the ratio of rms output voltage to a 1 V 
rms reference, when the hydrophone sensor, without a pre-amplifier, is 
placed in a plane wave acoustic field with an rms pressure of 1 
micropascal. For example, a hydrophone of -160 dB (reference 1 V per 
micropascal) would yield an output voltage of 10-8 V in such 
a field, while one of -180 dB sensitivity would yield only 
10-9 V output. Thus, -160 dB is better than -180 dB.

    a.2.b. Towed acoustic hydrophone arrays with any of the following:
    a.2.b.1. Hydrophone group spacing of less than 12.5 m;
    a.2.b.2. Hydrophone group spacing of 12.5 m to less than 25 m and 
designed or able to be modified to operate at depths exceeding 35 m; or

    Technical Note: ``Able to be modified'' in 6A001.a.2.b.2 means 
having provisions to allow a change of the wiring or interconnections to 
alter hydrophone group spacing or operating depth limits. These 
provisions are: spare wiring exceeding 10% of the number of wires, 
hydrophone group spacing adjustment blocks or internal depth limiting 
devices that are adjustable or that control more than one hydrophone 
group.

    a.2.b.3. Hydrophone group spacing of 25 m or more and designed to 
operate at depths exceeding 100 m;
    a.2.b.4. Heading sensors controlled by 6A001a.2.d;
    a.2.b.5. Non-metallic strength members or longitudinally reinforced 
array hoses;
    a.2.b.6. An assembled array of less than 40 mm in diameter;

[[Page 586]]

    a.2.b.7. Multiplexed hydrophone group signals; or
    a.2.b.8. Hydrophone characteristics specified in 6A001.a.2.a;
    a.2.c. Processing equipment specially designed for towed acoustic 
hydrophone arrays with either of the following:
    a.2.c.1. A Fast Fourier or other transform of 1,024 or more complex 
points in less than 20 ms with no ``user-accessible programmability''; 
or
    a.2.c.2. Time or frequency domain processing and correlation, 
including spectral analysis, digital filtering and beamforming using 
Fast Fourier or other transforms or processes with ``user accessible 
programmability'';
    a.2.d. Heading sensors having an accuracy of better than 
0.5 deg.; and
    a.2.d.1. Designed to be incorporated within the array hosing and to 
operate at depths exceeding 35 m or having an adjustable or removable 
depth sensing device in order to operate at depths exceeding 35 m; or
    a.2.d.2. Designed to be mounted external to the array hosing and 
having a sensor unit capable of operating with 360o roll at depths 
exceeding 35 m;
    b. Terrestrial geophones capable of conversion for use in marine 
systems, equipment or specially designed components controlled by 
6A001.a.2.a;
    c. Correlation-velocity sonar log equipment designed to measure the 
horizontal speed of the equipment carrier relative to the sea bed at 
distances between the carrier and the sea bed exceeding 500 m.



6A002  Optical sensors.

License Requirements

Reason for Control: NS, MT, CC, RS, AT, UN

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
MT applies to optical detectors in                                      
 6A002.a.1, a.3, and a.4 that are                                       
 specially designed or rated as                                         
 electromagnetic (including ``lasers'')                                 
 and ionizedparticle radiation resistant..  MT Column 1                 
RS applies to 6A002.a.1, a.2, a.3 and .c..  RS Column 1                 
CC applies to police-model infrared                                     
 viewers in 6A002.c.......................  CC Column 1                 
AT applies to entire entry................  AT Column 1                 
UN applies to 6A002.a.1, a.2 a.3 and c....  Rwanda                      
                                                                        

License Exceptions

LVS: $3000, except N/A for 6A002.a.1, a.2, a.3, and c
GBS: Yes, for 6A002.a.4
CIV: Yes, for 6A002.a.4

List of Items Controlled

Unit: parts and accessories in $ value
Related Controls: N/A
Related Definitions: Image intensifiers defined in 6A002.a.2 and focal 
plane arrays defined in 6A002.a.3 specially designed, modified, or 
configured for military use and not part of civil equipment are subject 
to the export licensing authority of U.S. Department of State, Office of 
Defense Trade Controls. (See 22 CFR part 121 )
Items: a. Optical detectors, as follows:

    Note: 6A002.a does not control germanium or silicon photodevices.

    a.1. ``Space-qualified'' solid-state detectors having any of the 
following:
    a.1.a.1. A peak response in the wavelength range exceeding 10 nm but 
not exceeding 300nm; and
    a.1.a.2. A response of less than 0.1% relative to the peak response 
at a wavelength exceeding 400 nm;
    a.1.b.1. A peak response in the wavelength range exceeding 900 nm 
but not exceeding 1,200 nm; and
    a.1.b.2. A response ``time constant'' of 95 ns or less; or
    a.1.c. A peak response in the wavelength range exceeding 1,200 nm 
but not exceeding 30,000 nm;
    a.2. Image intensifier tubes and specially designed components 
therefor, as follows:
    a.2.a. Image intensifier tubes having all the following:
    a.2.a.1. A peak response in wavelength range exceeding 400 nm, but 
not exceeding 1,050 nm;
    a.2.a.2. A microchannel plate for electron image amplification with 
a hole pitch (center-to-center spacing) of less than 25 micrometers; and
    a.2.a.3.a. An S-20, S-25 or multialkali photocathode; or
    a.2.a.3.b. A GaAs or GaInAs photocathode;
    a.2.b. Specially designed components as follows:
    a.2.b.1. Fiber optic image inverters;
    a.2.b.2. Microchannel plates having both of the following 
characteristics:
    a.2.b.2.a. 15,000 or more hollow tubes per plate; and
    a.2.b.2.b. Hole pitch (center-to-center spacing) of less than 25 
micrometers; or
    a.2.b.3. GaAs or GaInAs photocathodes;
    a.3. Non-``space-qualified'' ``focal plane arrays'', having any of 
the following:

    Technical Note: Linear or two-dimensional multi-element detector 
arrays are referred to as ``focal plane arrays''.

    a.3.a.1. Individual elements with a peak response within the 
wavelength range exceeding 900 nm, but not exceeding 1,050 nm; and
    a.3.a.2. A response ``time constant'' of less than 0.5 ns;
    a.3.b.1. Individual elements with a peak response in the wavelength 
range exceeding 1,050 nm, but not exceeding 1,200 nm; and
    a.3.b.2. A response ``time constant'' of 95 ns or less; or
    a.3.c. Individual elements with a peak response in the wavelength 
range exceeding 1,200 nm, but not exceeding 30,000 nm;


[[Page 587]]


    Note 1: 6A002.a.3 includes photoconductive arrays and photovoltaic 
arrays.
    Note 2: 6A002.a.3 does not control silicon ``focal plane arrays'', 
multi-element (not to exceed 16 elements) encapsulated photoconductive 
cells or pyroelectric detectors using any of the following:
    a. Lead sulphide;
    b. Triglycine sulphate and variants;
    c. Lead-lanthanum-zirconium titanate and variants;
    d. Lithium tantalate;
    e. Polyvinylidene fluoride and variants;
    f. Strontium barium niobate and variants; or
    g. Lead selenide.

    a.4. Non-``space-qualified'' single-element or non-focal-plane 
multi-element semiconductor photodiodes or phototransistors having both 
of the following:
    a.4.a. A peak response at a wavelength exceeding 1,200 nm, but not 
exceeding 30,000 nm; and
    a.4.b. A response ``time constant'' of 0.5 ns or less;
    b. ``Multispectral Imaging Sensors'' designed for remote sensing 
applications, having either of the following characteristics:
    b.1. An Instantaneous-Field-Of-View (IFOV) of less than 200 
microradians; or
    b.2. Specified for operation in the wavelength range exceeding 400 
nm, but not exceeding 30,000 nm; and
    b.2.a. Providing output imaging data in digital format; and
    b.2.b.1. ``Space-qualified''; or
    b.2.b.2. Designed for airborne operation and using other than 
silicon detectors;
    c. Direct view imaging equipment operating in the visible or 
infrared spectrum, incorporating either of the following:
    c.1. Image intensifier tubes controlled by 6A002.a.2 or
    c.2. ``Focal plane arrays'' controlled by 6A002.a.3;

    Technical Note: Direct view refers to imaging equipment operating in 
the visible or infrared spectrum, that presents a visual image to a 
human observer without converting the image into an electronic signal 
for television display, and that cannot record or store the image 
photographically, electronically, or by any other means.

    Note: 6A002.c does not control the following equipment incorporating 
other than GaAs or GaInAs photocathodes:
    a. Industrial or civilian intrusion alarm, traffic or industrial 
movement control or counting systems;
    b. Medical equipment;
    c. Industrial equipment used for inspection, sorting or analysis of 
the properties of materials;
    d. Flame detectors for industrial furnaces;
    e. Equipment specially designed for laboratory use.

    d. Special support components for optical sensors, as follows:
    d.1. ``Space-qualified'' cryocoolers;
    d.2. Non-``space-qualified'' cryocoolers, with a cooling source 
temperature below 218 K (-55  deg.C), as follows:
    d.2.a. Closed cycle with a specified Mean-Time-To-Failure (MTTF), or 
Mean-Time-Between-Failures (MTBF), exceeding 2,500 hours;
    d.2.b. Joule-Thomson (JT) self-regulating minicoolers with bore 
(outside) diameters of less than 8 mm;
    d.3. Optical sensing fibers:
    d.3.a. Specially fabricated either compositionally or structurally, 
or modified by coating, to be acoustically, thermally, inertially, 
electromagnetically or nuclear radiation sensitive; or
    d.3.b. Modified structurally to have a ``beat length'' of less than 
50 mm (high birefringence).



6A003  Cameras.

License Requirements

Reason for Control: NS, NP, RS, AT, UN

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
NP applies to items controlled in                                       
 paragraphs 6A003.a.2, a.3 and a.4........  NP Column 1                 
RS applies to items controlled in                                       
 6A003.b.3 and b.4........................  RS Column 1                 
AT applies to entire entry................  AT Column 1                 
UN applies to items controlled in                                       
 6A003.b.3 and b.4........................  Rwanda                      
                                                                        

License Exceptions

LVS: $1500, except N/A for 6A003.a.2 through a.5, b.1, b.3 and b.4
GBS: Yes for 6A003.a.1 and a.2 (see Advisory Note 3 to Category 6)
CIV: Yes for 6A003.a.1 and a.2 (see Advisory Note 3 to Category 6)

List of Items Controlled

Unit: Number
Related Controls: Reference ECCNs 8A002.d and .e for cameras specially 
designed for underwater use.
Related Definitions: N/A
Items: a. Instrumentation cameras, as follows:
    a.1. High-speed cinema recording cameras using any film format from 
8 mm to 16 mm inclusive, in which the film is continuously advanced 
throughout the recording period, and that are capable of recording at 
framing rates exceeding 13,150 frames per second;

    Note: 6A003.a.1 does not control cinema recording cameras for normal 
civil purposes.

    a.2. Mechanical high speed cameras, in which the film does not move, 
capable of recording at rates exceeding 1,000,000 frames per second for 
the full framing height of 35 mm film, or at proportionately higher 
rates for lesser frame heights, or at proportionately lower rates for 
greater frame heights;
    a.3. Mechanical or electronic streak cameras with writing speeds 
exceeding 10 mm/microsecond;
    a.4. Electronic framing cameras having a speed exceeding 1,000,000 
frames per second;
    a.5. Electronic cameras having:
    a.5.a. An electronic shutter speed (gating capability) of less than 
1 microsecond per full frame; and
    a.5.b. A read out time allowing a framing rate of more than 125 full 
frames per second;
    b. Imaging cameras, as follows:


[[Page 588]]


    Note: 6A003.b does not control television or video cameras specially 
designed for television broadcasting.

    b.1. Video cameras incorporating solid state sensors, having any of 
the following:
    b.1.a. More than 4 x 10\6\ ``active pixels'' per solid state array 
for monochrome (black and white) cameras;
    b.1.b. More than 4 x 10\6\ ``active pixels'' per solid state array 
for color cameras incorporating three solid state arrays; or
    b.1.c. More than 12 x 10\6\ ``active pixels'' for solid state array 
color cameras incorporating one solid state array;
    b.2. Scanning cameras and scanning camera systems:
    b.2.a. Incorporating linear detector arrays with more than 8,192 
elements per array; and
    b.2.b. Having mechanical scanning in one direction;
    b.3. Incorporating image intensifiers controlled by 6A002.a.2.a;
    b.4. Incorporating focal plane arrays controlled by 6A002.a.3.



6A004  Optics.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: Yes for 6A004.a.1, a.2, a.4, b, d.1.a, e.2, e.4 and .f (See 
Advisory Note 4.1 to Category 6)
CIV: Yes for 6A004.f and items in Advisory Note 4.1 to Category 6

List of Items Controlled

Unit: Equipment in number; cable in meters/feet; components in $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Optical mirrors (reflectors), as follows:
    a.1. ``Deformable mirrors'' with either continuous or multi-element 
surfaces, and specially designed components therefor, capable of 
dynamically repositioning portions of the surface of the mirror at rates 
exceeding 100 Hz;
    a.2. Lightweight monolithic mirrors with an average ``equivalent 
density'' of less than 30 kg/m\2\, and a total weight exceeding 10 kg;
    a.3. Lightweight ``composite'' or foam mirror structures with an 
average ``equivalent density'' of less than 30 kg/m\2\, and a total 
weight exceeding 2 kg;
    a.4. Beam steering mirrors more than 100 mm in diameter or length of 
major axis that maintain a flatness of lambda/2 or better (lambda is 
equal to 663nm) with a control bandwidth exceeding 100 Hz;
    b. Optical components made from zinc selenide (ZnSe) or zinc 
sulphide (ZnS) with transmission in the wavelength range exceeding 3,000 
nm but not exceeding 25,000 nm and either of the following:
    b.1. Exceeding 100 cm \3\ in volume; or
    b.2. Exceeding 80 mm in diameter or length of major axis and 20 mm 
in thickness (depth);
    c. ``Space-qualified'' components for optical systems, as follows:
    c.1. Lightweighted to less than 20% ``equivalent density'' compared 
with a solid blank of the same aperture and thickness;
    c.2. Substrates, substrates with surface coatings (single-layer or 
multi-layer, metallic or dielectric, conducting, semiconducting or 
insulating) or with protective films;
    c.3. Elements or assemblies of mirrors designed to be assembled in 
space into an optical system with a collecting aperture equivalent to or 
larger than a single optic 1 meter in diameter;
    c.4. Manufactured from ``composite'' materials having a coefficient 
of linear thermal expansion equal to or less than 5 x 10-6 in 
any coordinate direction;
    d. Optical filters, as follows:
    d.1. For wavelengths longer than 250 nm, comprised of multi-layer 
optical coatings and having either of the following:
    d.1.a. Bandwidths equal to or less than 1 nm Full Width Half 
Intensity (FWHI) and peak transmission of 90% or more; or
    d.1.b. Bandwidths equal to or less than 0.1 nm FWHI and peak 
transmission of 50% or more;

    Note: 6A004.d.1 does not control optical filters with fixed air gaps 
or Lyot-type filters.

    d.2. For wavelengths longer than 250 nm, and having all of the 
following:
    d.2.a. Tunable over a spectral range of 500 nm or more;
    d.2.b. Instantaneous optical bandpass of 1.25 nm or less;
    d.2.c. Wavelength resettable within 0.1 ms to an accuracy of 1 nm or 
better within the tunable spectral range; and
    d.2.d. A single peak transmission of 91% or more;
    d.3. Optical opacity switches (filters) with a field of view of 
30 deg. or wider and a response time equal to or less than 1 ns;
    e. Optical control equipment, as follows:
    e.1. Specially designed to maintain the surface figure or 
orientation of the ``space-qualified'' components controlled by 
6A004.c.1 or c.3;
    e.2. Having steering, tracking, stabilization or resonator alignment 
bandwidths equal to or more than 100 Hz and an accuracy of 10 
microradians or less;
    e.3. Gimbals having a maximum slew exceeding 5 deg., a bandwidth 
equal to or more than 100 Hz and either of the following:
    e.3.a.1. Exceeding 0.15 m but not exceeding 1 m in diameter or major 
axis length;

[[Page 589]]

    e.3.a.2. Capable of angular accelerations exceeding 2 radians/s\2\; 
and
    e.3.a.3. Having angular pointing errors equal to or less than 200 
microradians; or
    e.3.b.1. Exceeding 1 m in diameter or major axis length;
    e.3.b.2. Capable of angular accelerations exceeding 0.5 radians/
s\2\; and
    e.3.b.3. Having angular pointing errors equal to or less than 200 
microradians;
    e.4. Specially designed to maintain the alignment of phased array or 
phased segment mirror systems consisting of mirrors with a segment 
diameter or major axis length of 1 m or more;
    f. ``Fluoride fiber'' cable, or optical fibers therefor, having an 
attenuation of less than 4 dB/km in the wavelength range exceeding 1,000 
nm but not exceeding 3,000 nm.



6A005  Lasers, components and optical equipment.

License Requirements

Reason for Control: NS, NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
NP applies to 6A005.a.1.c, a.2.a (with an                               
 output power > 40W), a.4.c, a.6, (argon                                
 ion lasers only), c.1.b (with an output                                
 power > 30W), c.2.c.2.a (with an output                                
 power > 40W), c.2.c.2.b (with an output                                
 power > 40W), c.2.d.2.b (with an output                                
 power > 40W), and d.2.c..................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000 for all other items; N/A for NP items
GBS: Yes, for items in Advisory Notes 5.1, 5.2 and 5.3 to Category 6
CIV: Yes, except for 6A005.c.2.a, .d (except d.2.c), .e and for items in 
Advisory Notes 5.1, 5.2 and 5.3 to Category 6

List of Items Controlled

Unit: Equipment in number; parts and accessories in Sec. value
Related Controls: Shared aperture optical elements, capable of operating 
in super-high power laser applications are subject to the export 
licensing authority of the U.S. Department of State, Office of Defense 
Trade Controls. (See 22 CFR part 121, Category XII.)
Related Definitions: 1. Pulsed ``lasers'' include those that run in a 
continuous wave (CW) mode with pulses superimposed. 2. Pulse-excited 
``lasers'' include those that run in a continuously excited mode with 
pulse excitation superimposed. 3. The control status of Raman ``lasers'' 
is determined by the parameters of the pumping source ``lasers''. The 
pumping source ``lasers'' can be any of the ``lasers'' described below.
Items: a. Gas ``lasers'', as follows:
    a.1. Excimer ``lasers'' having any of the following:
    a.1.a. An output wavelength not exceeding 150 nm and:
    a.1.a.1. An output energy exceeding 50 mJ per pulse; or
    a.1.a.2. An average or CW output power exceeding 1 W;
    a.1.b. An output wavelength exceeding 150 nm but not exceeding 190 
nm and:
    a.1.b.1. An output energy exceeding 1.5 J per pulse; or
    a.1.b.2. An average or CW output power exceeding 120 W;
    a.1.c. An output wavelength exceeding 190 nm but not exceeding 360 
nm and:
    a.1.c.1. An output energy exceeding 10 J per pulse; or
    a.1.c.2. An average or CW output power exceeding 500 W; or
    a.1.d. An output wavelength exceeding 360 nm and:
    a.1.d.1. An output energy exceeding 1.5 J per pulse; or
    a.1.d.2. An average or CW output power exceeding 30 W;
    a.2. Metal vapour ``lasers'', as follows:
    a.2.a. Copper (Cu) ``lasers'' with an average or CW output power 
exceeding 20 W;
    a.2.b. Gold (Au) ``lasers'' with an average or CW output power 
exceeding 5 W;
    a.2.c. Sodium (Na) ``lasers'' with an output power exceeding 5 W;
    a.2.d. Barium (Ba) ``lasers'' with an average or CW output power 
exceeding 2 W;
    a.3. Carbon monoxide (CO) ``lasers'' having either:
    a.3.a. An output energy exceeding 2 J per pulse and a pulsed ``peak 
power'' exceeding 5 kW; or
    a.3.b. An average or CW output power exceeding 5 kW;
    a.4. Carbon dioxide (CO2) ``lasers'' having any of the 
following:
    a.4.a. A CW output power exceeding 10 kW;
    a.4.b. A pulsed output with a ``pulse duration'' exceeding 10 
microseconds and:
    a.4.b.1. An average output power exceeding 10 kW; or
    a.4.b.2. A pulsed ``peak power'' exceeding 100 kW; or
    a.4.c. A pulsed output with a ``pulse duration'' equal to or less 
than 10 microseconds and:
    a.4.c.1. A pulse energy exceeding 5 J per pulse and ``peak power'' 
exceeding 2.5 kW; or
    a.4.c.2. An average output power exceeding 2.5 kW;
    a.5. ``Chemical lasers'', as follows:
    a.5.a. Hydrogen Fluoride (HF) ``lasers'';
    a.5.b. Deuterium Fluoride (DF) ``lasers'';
    a.5.c. ``Transfer lasers'':
    a.5.c.1. Oxygen Iodine (O2-I) ``lasers'';
    a.5.c.2. Deuterium Fluoride-Carbon dioxide (DF-CO2) 
``lasers'';

[[Page 590]]

    a.6. Gas discharge and ion ``lasers'', i.e., krypton ion or argon 
ion ``lasers'', as follows:
    a.6.a. An output energy exceeding 1.5 J per pulse and a pulsed 
``peak power'' exceeding 50 W; or
    a.6.b. An average or CW output power exceeding 50 W; or
    a.7. Other gas ``lasers'', except nitrogen ``lasers'', having any of 
the following:
    a.7.a. An output wavelength not exceeding 150 nm and:
    a.7.a.1. An output energy exceeding 50 mJ per pulse and a pulsed 
``peak power'' exceeding 1 W; or
    a.7.a.2. An average or CW output power exceeding 1 W;
    a.7.b. An output wavelength exceeding 150 nm but not exceeding 800 
nm and:
    a.7.b.1. An output energy exceeding 1.5 J per pulse and a pulsed 
``peak power'' exceeding 30 W; or
    a.7.b.2. An average or CW output power exceeding 30 W;
    a.7.c. An output wavelength exceeding 800 nm but not exceeding 1,400 
nm and:
    a.7.c.1. An output energy exceeding 0.25 J per pulse and a pulsed 
``peak power'' exceeding 10 W; or
    a.7.c.2. An average or CW output power exceeding 10 W; or
    a.7.d. An output wavelength exceeding 1,400 nm and an average or CW 
output power exceeding 1 W;
    b. Semiconductor ``lasers'', as follows:

    Technical Note: Semiconductor ``lasers'' are commonly called 
``laser'' diodes.

    Note: The control status of semiconductor ``lasers'' specially 
designed for other equipment is determined by the control status of the 
other equipment.

    b.1. Individual, single-transverse mode semiconductor ``lasers'' 
having:
    b.1.a. An average output power exceeding 100 mW; or
    b.1.b. A wavelength exceeding 1,050 nm;
    b.2. Individual, multiple-transverse mode semiconductor ``lasers'', 
or arrays of individual semiconductor ``lasers'', having:
    b.2.a. An output energy exceeding 500 microjoules per pulse and a 
pulsed ``peak power'' exceeding 10 W;
    b.2.b. An average or CW output power exceeding 10 W; or
    b.2.c. A wavelength exceeding 1,050 nm;
    c. Solid state ``lasers'', as follows:
    c.1. ``Tunable'' ``lasers'' having any of the following:

    Note: 6A005.c.1. includes titanium-sapphire (Ti: 
Al2O3), thulium-YAG (Tm: YAG), thulium-YSGG (Tm: 
YSGG), alexandrite (Cr: BeAl2O4) and color center 
``lasers''.

    c.1.a. An output wavelength less than 600 nm and:
    c.1.a.1. An output energy exceeding 50 mJ per pulse and a pulsed 
``peak power'' exceeding 1 W; or
    c.1.a.2. An average or CW output power exceeding 1 W;
    c.1.b. An output wavelength of 600 nm or more but not exceeding 
1,400 nm and:
    c.1.b.1. An output energy exceeding 1 J per pulse and a pulsed 
``peak power'' exceeding 20 W; or
    c.1.b.2. An average or CW output power exceeding 20 W; or
    c.1.c. An output wavelength exceeding 1,400 nm and:
    c.1.c.1. An output energy exceeding 50 mJ per pulse and a pulsed 
``peak power'' exceeding 1 W; or
    c.1.c.2.An average or CW output power exceeding 1 W;
    c.2. Non-''tunable'' ``lasers'', as follows:
    Note: 6A005.c.2. includes atomic transition solid state ``lasers''.
    c.2.a. Ruby ``lasers'' having an output energy exceeding 20 J per 
pulse;
    c.2.b. Neodymium glass ``lasers'', as follows:
    c.2.b.1. ``Q-switched lasers'' having:
    c.2.b.1.a. An output energy exceeding 20 J but not exceeding 50 J 
per pulse and an average output power exceeding 10 W; or
    c.2.b.1.b. An output energy exceeding 50 J per pulse;
    c.2.b.2. Non-''Q-switched lasers'' having:
    c.2.b.2.a. An output energy exceeding 50 J but not exceeding 100 J 
per pulse and an average output power exceeding 20 W; or
    c.2.b.2.b. An output energy exceeding 100 J per pulse;
    c.2.c. Neodymium-doped (other than glass) ``lasers'', as follows, 
with an output wavelength exceeding 1,000 nm but not exceeding 1,100 nm:

    Note: For Neodymium-doped (other than glass) ``lasers'' having an 
output wavelength not exceeding 1,000 nm or exceeding 1,100 nm, see 
6A005.c.2.d.

    c.2.c.1. Pulse excited, mode-locked, ``Q-switched lasers'' with a 
``pulse duration'' of less than 1 ns and:
    c.2.c.1.a. A ``peak power'' exceeding 5 GW;
    c.2.c.1.b. An average output power exceeding 10 W; or
    c.2.c.1.c. A pulsed energy exceeding 0.1 J;
    c.2.c.2. Pulse-excited, ``Q-switched lasers'', with a pulse duration 
equal to or more than 1 ns, and:
    c.2.c.2.a. A single-transverse mode output with:
    c.2.c.2.a.1. A ``peak power'' exceeding 100 MW;
    c.2.c.2.a.2. An average output power exceeding 20 W; or
    c.2.c.2.a.3. A pulsed energy exceeding 2 J; or
    c.2.c.2.b. A multiple-transverse mode output with:
    c.2.c.2.b.1. A ``peak power'' exceeding 200 MW;
    c.2.c.2.b.2. An average output power exceeding 50 W; or
    c.2.c.2.b.3. A pulsed energy exceeding 2 J;

[[Page 591]]

    c.2.c.3. Pulse-excited, non-``Q-switched lasers'', having:
    c.2.c.3.a. A single-transverse mode output with:
    c.2.c.3.a.1. A ``peak power'' exceeding 500 kW; or
    c.2.c.3.a.2. An average output power exceeding 150 W; or
    c.2.c.3.b. A multiple-transverse mode output with:
    c.2.c.3.b.1. A ``peak power'' exceeding 1 MW; or
    c.2.c.3.b.2. An average power exceeding 500 W;
    c.2.c.4. Continuously excited ``lasers'' having:
    c.2.c.4.a. A single-transverse mode output with:
    c.2.c.4.a.1. A ``peak power'' exceeding 500 kW; or
    c.2.c.4.a.2. An average or CW output power exceeding 150 W; or
    c.2.c.4.b. A multiple-transverse mode output with:
    c.2.c.4.b.1. A ``peak power'' exceeding 1 MW; or
    c.2.c.4.b.2. An average or CW output power exceeding 500 W;
    c.2.d. Other non-''tunable'' ``lasers'', having any of the 
following:
    c.2.d.1. A wavelength less than 150 nm and:
    c.2.d.1.a. An output energy exceeding 50 mJ per pulse and a pulsed 
``peak power'' exceeding 1 W; or
    c.2.d.1.b. An average or CW output power exceeding 1 W;
    c.2.d.2. A wavelength of 150 nm or more but not exceeding 800 nm 
and:
    c.2.d.2.a. An output energy exceeding 1.5 J per pulse and a pulsed 
``peak power'' exceeding 30 W; or
    c.2.d.2.b. An average or CW output power exceeding 30 W;
    c.2.d.3. A wavelength exceeding 800 nm but not exceeding 1,400 nm, 
as follows:
    c.2.d.3.a. ``Q-switched lasers'' with:
    c.2.d.3.a.1. An output energy exceeding 0.5 J per pulse and a pulsed 
``peak power'' exceeding 50 W; or
    c.2.d.3.a.2. An average output power exceeding:
    c.2.d.3.a.2.a. 10 W for single-mode ``lasers'';
    c.2.d.3.a.2.b. 30 W for multimode ``lasers'';
    c.2.d.3.b. Non-``Q-switched lasers'' with:
    c.2.d.3.b.1. An output energy exceeding 2 J per pulse and a pulsed 
``peak power'' exceeding 50 W; or
    c.2.d.3.b.2. An average or CW output power exceeding 50 W; or
    c.2.d.4. A wavelength exceeding 1,400 nm and:
    c.2.d.4.a. An output energy exceeding 100 mJ per pulse and a pulsed 
``peak power'' exceeding 1 W; or
    c.2.d.4.b. An average or CW output power exceeding 1 W;
    d. Dye and other liquid ``lasers'', having any of the following:
    d.1. A wavelength less than 150 nm and:
    d.1.a. An output energy exceeding 50 mJ per pulse and a pulsed 
``peak power'' exceeding 1 W; or
    d.1.b. An average or CW output power exceeding 1 W;
    d.2. A wavelength of 150 nm or more but not exceeding 800 nm and:
    d.2.a. An output energy exceeding 1.5 J per pulse and a pulsed 
``peak power'' exceeding 20 W;
    d.2.b. An average or CW output power exceeding 20 W; or
    d.2.c. A pulsed single longitudinal mode oscillator with an average 
output power exceeding 1 W and a repetition rate exceeding 1 kHz if the 
``pulse duration'' is less than 100 ns;
    d.3. A wavelength exceeding 800 nm but not exceeding 1,400 nm and:
    d.3.a. An output energy exceeding 0.5 J per pulse and a pulsed 
``peak power'' exceeding 10 W; or
    d.3.b. An average or CW output power exceeding 10 W; or
    d.4. A wavelength exceeding 1,400 nm and:
    d.4.a. An output energy exceeding 100 mJ per pulse and a pulsed 
``peak power'' exceeding 1 W; or
    d.4.b. An average or CW output power exceeding 1 W;
    e. Free electron ``lasers'';
    f. Components, as follows:
    f.1. Mirrors cooled either by active cooling or by heat pipe 
cooling;

    Technical Note: Active cooling is a cooling technique for optical 
components using flowing fluids within the subsurface (nominally less 
than 1 mm below the optical surface) of the optical component to remove 
heat from the optic.

    f.2. Optical mirrors or transmissive or partially transmissive 
optical or electro-optical components specially designed for use with 
controlled ``lasers'';
    g. Optical equipment, as follows:
    g.1. Dynamic wavefront (phase) measuring equipment capable of 
mapping at least 50 positions on a beam wavefront with:
    g.1.a. Frame rates equal to or more than 100 Hz and phase 
discrimination of at least 5% of the beam's wavelength; or
    g.1.b. Frame rates equal to or more than 1,000 Hz and phase 
discrimination of at least 20% of the beam's wavelength;
    g.2. ``Laser'' diagnostic equipment capable of measuring ``Super-
High Power Laser'' (SHPL) system angular beam steering errors of equal 
to or less than 10 microradians;
    g.3. Optical equipment, assemblies or components specially designed 
for a phased-array SHPL system for coherent beam combination to an 
accuracy of Lambda/10 at the designed wavelength, or 0.1 micrometer, 
whichever is the smaller;
    g.4. Projection telescopes specially designed for use with SHPL 
systems.

[[Page 592]]



6A006  ``Magnetometers'', ``magnetic gradiometers'', ``intrinsic magnetic gradiometers'' and compensation systems and specially designed components.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $1500
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Sec. value
Related Controls: N/A
Related Definition: This entry does not control instruments specially 
designed for biomagnetic measurements for medical diagnostics, unless 
they incorporate unembedded sensors controlled by 6A006.h.
Items: a. ``Magnetometers'' using ``superconductive'', optically pumped 
or nuclear precession (proton/Overhauser) technology having a ``noise 
level'' (sensitivity) lower (better) than 0.05 nT rms per square root 
Hz;
    b. Induction coil ``magnetometers'' having a ``noise level'' 
(sensitivity) lower (better) than:
    b.1. 0.05 nT rms per square root Hz at frequencies of less than 1 
Hz;
    b.2. 1 x 10-3 nT rms per square root Hz at frequencies of 
1 Hz or more but not exceeding 10 Hz; or
    b.3. 1 x 10-4 nT rms per square root Hz at frequencies 
exceeding 10 Hz;
    c. Fiber optic ``magnetometers'' having a ``noise level'' 
(sensitivity) lower (better) than 1 nT rms per square root Hz;
    d. ``Magnetic gradiometers'' using multiple ``magnetometers'' 
controlled by 6A006.a, .b or .c;
    e. Fiber optic ``intrinsic magnetic gradiometers'' having a magnetic 
gradient field ``noise level'' (sensitivity) lower (better) than 0.3 nT/
m rms per square root Hz;
    f. ``Intrinsic magnetic gradiometers'', using technology other than 
fiber-optic technology, having a magnetic gradient field ``noise level'' 
(sensitivity) lower (better) than 0.015 nT/m rms per square root Hz;
    g. Magnetic compensation systems for magnetic sensors designed for 
operation on mobile platforms;
    h. ``Superconductive'' electromagnetic sensors, containing 
components manufactured from ``superconductive'' materials, as follows:
    h.1. Designed for operation at temperatures below the ``critical 
temperature'' of at least one of their ``superconductive'' constituents 
(including Josephson effect devices or ``superconductive'' quantum 
interference devices (SQUIDS));
    h.2. Designed for sensing electromagnetic field variations at 
frequencies of 1 KHz or less, and:
    h.3. Having any of the following characteristics:
    h.3.a. Incorporating thin-film SQUIDS with a minimum feature size of 
less than 2 micrometers and with associated input and output coupling 
circuits;
    h.3.b. Designed to operate with a magnetic field slew rate exceeding 
1 x 106 magnetic flux quanta per second;
    h.3.c. Designed to function without magnetic shielding in the 
earth's ambient magnetic field; or
    h.3.d. Having a temperature coefficient less (smaller) than 0.1 
magnetic flux quantum/K;



6A007  Gravity meters (gravimeters) and gravity gradiometers.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
MT applies to 6A07.b and c when the                                     
 accuracies in 6A07.b.1 and b.2 are met or                              
 exceeded.................................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: N/A
Items: a. Gravity meters for ground use having a static accuracy of less 
(better) than 10 microgal;

    Note: 6A007.a does not control ground gravity meters of the quartz 
element (Worden) type.

    b. Gravity meters for mobile platforms for ground, marine, 
submersible, space or airborne use having:
    b.1. A static accuracy of less (better) than 0.7 milligal; and
    b.2. An in-service (operational) accuracy of less (better) than 0.7 
milligal with a time-to-steady-state registration of less than 2 minutes 
under any combination of attendant corrective compensations and motional 
influences;
    c. Gravity gradiometers.



6A008  Radar systems, equipment and assemblies and specially designed components therefor.

License Requirements

Reason for Control: NS, MT, AT

[[Page 593]]



                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
MT applies to items that are designed for                               
 airborne applications and that are usable                              
 in systems controlled for MT reasons.....  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: Yes, for 6A008.b, .c, and l.1 only
CIV: Yes, for 6A008.b, .c, and l.1 only

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: This entry does not control: 1.) Secondary 
surveillance radar (SSR); 2.) Car radar designed for collision 
prevention; 3.) Displays or monitors used for Air Traffic Control (ATC) 
having no more than 12 resolvable elements per mm; 4.) Meteorological 
(weather) radar.
Items: a. Operating at frequencies from 40 GHz to 230 GHz and having an 
average output power exceeding 100mW;
    b. Having a tunable bandwidth exceeding 6.25% of the 
center operating frequency;

    Technical Note: The center operating frequency equals one half of 
the sum of the highest plus the lowest specified operating frequencies.

    c. Capable of operating simultaneously on more than two carrier 
frequencies;
    d. Capable of operating in synthetic aperture (SAR), inverse 
synthetic aperture (ISAR) or sidelooking airborne (SLAR) radar mode;
    e. Incorporating ``electronically steerable phased array antennae'';
    f. Capable of heightfinding non-cooperative targets;

    Note: 6A008.f does not control precision approach radar equipment 
(PAR) conforming to ICAO standards;

    g. Designed specially for airborne (balloon or airframe mounted) 
operation and having Doppler signal processing for the detection of 
moving targets;
    h. Employing processing of radar signals using:
    h.1. ``Radar spread spectrum'' techniques; or
    h.2. ``Radar frequency agility'' techniques;
    i. Providing ground-based operation with a maximum ``instrumented 
range'' exceeding 185 km;

    Note: 6A008.i does not control:
    a. Fishing ground surveillance radar;
    b. Ground radar equipment specially designed for enroute air traffic 
control and ``software'' specially designed for ``use'' thereof, 
provided:
    1. It has a maximum ``instrumented range'' of 500 km or less
    2. It is configured so that radar target data can be transmitted 
only one way from the radar site to one or more civil ATC centers;
    3. It contains no provisions for remote control of the radar scan 
rate from the enroute ATC center; and
    4. It is to be permanently installed;

    N.B.: The ``use'' ``software'' must be limited to ``object code'' 
and the minimum amount of ``source code'' necessary for installation, 
operation or maintenance.

    j. ``Laser'' radar or Light Detection and Ranging (LIDAR) equipment, 
having either of the following:
    j.1. ``Space-qualified''; or
    j.2. Employing coherent heterodyne or homodyne detection techniques 
and having an angular resolution of less (better) than 20 microradians;

    Note: 6A008.j does not control LIDAR equipment specially designed 
for surveying or for meteorological observation.

    k. Having signal processing sub-systems using ``pulse compression'' 
with:
    k.1. A ``pulse compression'' ratio exceeding 150; or
    k.2. A pulse width of less than 200 ns;
    l. Having data processing sub-systems with:
    l.1. ``Automatic target tracking'' providing, at any antenna 
rotation, the predicted target position beyond the time of the next 
antenna beam passage;

    Note: 6A008.l.1 does not control conflict alert capability in air 
traffic control systems, or marine or harbor radar.

    l.2. Calculation of target velocity from primary radar having non-
periodic (variable) scanning rates;
    l.3. Processing for automatic pattern recognition (feature 
extraction) and comparison with target characteristic data bases 
(waveforms or imagery) to identify or classify targets; or
    l.4. Superposition and correlation, or fusion, of target data from 
two or more ``geographically dispersed'' and ``interconnected radar'' 
sensors to enhance and discriminate targets.

    Note: 6A008.l.4 does not control systems, equipment and assemblies 
used for marine traffic control.



6A018  Magnetic, pressure, and acoustic underwater detection devices specially designed for military purposes and controls and components therefor.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; components in $ value
Related Controls: N/A
Related Definition: N/A

[[Page 594]]

Items: The list of items controlled is contained in the ECCN heading.




6A102  Radiation hardened detectors, other than those specified in 6A002, for use in protecting against nuclear effects (e.g., electromagnetic pulse (EMP), X-
          rays, combined blast and thermal effects) and usable for 
          ``missiles'', designed or rated to withstand radiation levels 
          which meet or exceed a total irradiation dose of 5 X 
          105 rads (Si).

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Components in number
Related Controls: N/A
Related Definition: In 6A102, a detector is defined as a mechanical, 
electrical, optical or chemical device that automatically identifies and 
records, or registers a stimulus such as an environmental change in 
pressure or temperature, an electrical or electromagnetic signal or 
radiation from a radioactive material.
Items: The list of items controlled is contained in the ECCN heading.




6A107  Specially designed components for gravity meters and gravity gradiometers specified in 6A007.b. and c.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



6A108  Radar systems and tracking systems, other than those controlled by 6A008.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: This entry does not control airborne civil weather 
radar conforming to international standards for civil weather radars 
provided that they do not incorporate any of the following: (a) Phased 
array antennas; (b) Frequency agility; (c) Spread spectrum; or (d) 
Signal processing specially designed for the tracking of vehicles.
Laser radar systems are defined as those that embody specialized 
transmission, scanning, receiving and signal processing techniques for 
utilization of lasers for echo ranging, direction finding and 
discrimination of targets by location, radial speed and body reflection 
characteristics.
    a. Radar and laser radar systems designed or modified for use in 
systems controlled by 9A004 (as provided in the Commerce Control List) 
and 9A104.
    b. Precision tracking systems usable for ``missiles'', as follows:
    b.1. Tracking systems that use a code translator in conjunction with 
either surface or airborne references or navigation satellite systems to 
provide real-time measurements of in-flight position and velocity;
    b.2. Range instrumentation radars including associated optical/
infrared trackers with all of the following capabilities:
    b.2.a. Angular resolution better than 3 milliradians (0.5 mils);
    b.2.b. Range of 30 km or greater, with a range resolution better 
than 10 meters rms; and
    b.2.c. Velocity resolution better than 3 meters per second.




6A202  Photomultiplier tubes with a photocathode area of greater than 20cm2 having an anode pulse rise time of less than 1 ns.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A

[[Page 595]]

CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



6A203  Cameras and components not controlled by ECCN 6A003.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment and components in number; parts and accessories in $ 
value
Related Controls: N/A
Related Definitions: N/A
Items: a. Mechanical rotating mirror cameras, as follows; and specially 
designed components therefor:
    a.1 Framing cameras with recording rates greater than 225,000 frames 
per second;
    a.2. Streak cameras with writing speeds greater than 0.5 mm per 
microsecond;

    Technical Note: Components of such cameras include their 
synchronizing electronics units and rotor assemblies consisting of 
turbines, mirrors and bearings.

    b. Electronic streak and framing cameras and tubes, as follows:
    b.1. Electronic streak cameras capable of 50 ns or less time 
resolution and streak tubes therefor;
    b.2. Electronic (or electrically shuttered) framing cameras capable 
of 50 ns or less frame exposure time;
    b.3. Framing tubes and solid state imaging devices for use with 
cameras described in 6A203.b.2, as follows:
    b.3.a. Proximity focused image intensifier tubes having a 
photocathode deposited on a transparent conductive coating to decrease 
photocathode sheet resistance;
    b.3.b. Gated silicon intensifier target (SIT) vidicon tubes, where a 
fast system allows gating the photoelectrons from the photocathode 
before they impinge on the SIT plate;
    b.3.c. Kerr or pockel cell electro-optical shuttering; or
    b.3.d. Other framing tubes and solid-state imaging devices having a 
fast-image gating time of less than 50 ns specially designed for cameras 
controlled by 6A203.b.2;
    c. Radiation-hardended television cameras, or lenses therefor, 
specially designed or rated as radiation-hardened to withstand greater 
than 5 x 10\4\ grays (Silicon) (5 x 10\6\ rad (Silicon)) without 
operational degradation.



6A205  Lasers, other than those specified in 6A005.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Argon ion lasers with greater than 40 W average output power 
operating at wavelengths between 400 nm and 515 nm;
    b. Tunable pulsed single-mode dye oscillators capable of an average 
power output of greater than 1 W, a repetition rate greater than 1 kHz, 
a pulse less than 100 ns, and a wavelength between 300 nm and 800 nm;
    c. Tunable pulsed dye laser amplifiers and oscillators with an 
average power output of greater than 30 W, a repetition rate greater 
than 1 kHz, a pulse width less than 100 ns, and a wavelength between 300 
nm and 800 nm; except: Single mode oscillators;
    d. Pulsed carbon dioxide lasers with a repetition rate greater than 
250 Hz, an average power output of greater than 500 W, and a pulse of 
less than 200 ns operating at wavelengths between 9,000 nm and 11,000 
nm;

    Note: This specification is not intended to control the higher power 
(typically 1 to 5kW) industrial CO2 lasers used in 
applications such as cutting and welding, as those latter lasers are 
either continuous wave or are pulsed with a pulse width more than 200 
ns.

    e. Para-hydrogen Raman shifters designed to operate at 16 micrometer 
output wavelength and at a repetition rate greater than 250 Hz.




6A225  Velocity interferometers for measuring velocities in excess of 1 km per second during time intervals less than 10 microseconds (e.g. VISAR's, Doppler 
          laser interferometers, DLI's, etc.).

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions


[[Page 596]]


LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



6A226  Pressure sensors.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Manganin gauges for pressures greater than 100 kilobars; or
    b. Quartz pressure transducers for pressures greater than 100 
kilobars.



6A990  Airborne radar equipment, n.e.s., and specially designed components therefor.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



6A992  Gravity meters (gravimeters) for ground use, n.e.s.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Having a static accuracy of less (better) than 100 microgal; 
or
    b. Being of the quartz element (Worden) type.




6A993  ``Magnetometers'', n.e.s., having a ``noise level'' (sensitivity) lower (better) than 1.0 nT rms per square root Hz.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




6A994  Marine or terrestrial acoustic equipment, n.e.s., capable of detecting or locating underwater objects or features or positioning surface vessels or 
          underwater vehicles; and specially designed components, n.e.s.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 2                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

              B. Test, Inspection and Production Equipment



6B004  Optics.

License Requirements

Reason for Control: NS, AT

[[Page 597]]



                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: Yes for Advisory Note 4.2 to Category 6
CIV: Yes for Advisory Note 4.2 to Category 6

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definition: This entry does not control microscopes.

    a. Equipment for measuring absolute reflectance to an accuracy of 
0.1% of the reflectance value;
    b. Equipment other than optical surface scattering measurement 
equipment, having an unobscured aperture of more than 10 cm, specially 
designed for the non-contact optical measurement of a non-planar optical 
surface figure (profile) to an ``accuracy'' of 2 nm or less (better) 
against the required profile.



6B005  Specially designed or modified equipment, including tools, dies, fixtures or gauges, and other specially designed components and accessories therefor.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: Yes
CIV: Yes

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. For the manufacture or inspection of:
    a.1. Free electron ``laser'' magnet wigglers;
    a.2. Free electron ``laser'' photo injectors;
    b. For the adjustment, to required tolerances, of the longitudinal 
magnetic field of free electron ``lasers''.



6B007  Equipment to produce, align and calibrate land-based gravity meters with a static accuracy of better than 0.1 milligal.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



6B008  Pulse radar cross-section measurement systems having transmit pulse widths of 100 ns or less and specially designed components therefor.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



6B108  Systems specially designed for radar cross section measurement usable for ``missiles'' and their subsystems.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                              C. Materials



6C002  Optical sensors.

License Requirements

Reason for Control: NS, AT

[[Page 598]]



                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: Yes for 6C002.c
CIV: Yes for 6C002.c

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: a. Elemental tellurium (Te) of purity levels equal to or more 
than 99.9995%;
    b. Single crystals of cadmium telluride (CdTe) cadmium zinc 
telluride (CdZnTe) or mercury cadmium tellurium (HgCdTe) of any purity 
level, including epitaxial wafers thereof;

    Technical Note: Purity verified in accordance with ASTM F574-83 
standard or equivalents.

    c. ``Optical fiber preforms'' specially designed for the manufacture 
of high birefringence fibers controlled by 6A002.d.3.



6C004  Optics.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $1500
GBS: Yes for 6C004.h and 6C004.a, e.2, and .f as described in Advisory 
Note 4.1 to Category 6
CIV: Yes for 6C004.h and 6C004.a, e.2, and .f as described in Advisory 
Note 4.1 to Category 6

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Zinc selenide (ZnSe) and zinc sulphide (ZnS) ``substrate 
blanks'' produced by the chemical vapor deposition process:
    a.1. Larger than 100 cm3 in volume; or
    a.2. Larger than 80 mm in diameter with a thickness equal to or more 
than 20 mm;
    b. Boules of the following electro-optic materials:
    b.1. Potassium titanyl arsenate (KTA);
    b.2. Silver gallium selenide (AgGaSe2);
    b.3. Thallium arsenic selenide (Tl3AsSe3, also 
known as TAS);
    c. Non-linear optical materials having:
    c.1. Third order susceptibility (chi 3) equal to or less than 1 W/
m2; and
    c.2. A response time of less than 1 ms;
    d. ``Substrate blanks'' of silicon carbide or beryllium beryllium 
(Be/Be) deposited materials exceeding 300 mm in diameter or major axis 
length;
    e. Low optical absorption materials, as follows:
    e.1. Bulk fluoride compounds containing ingredients with a purity of 
99.999% or better; or

    Note: 6C004.e.1 controls fluorides of zirconium or aluminium and 
variants.

    e.2. Bulk fluoride glass made from compounds controlled by 
6C004.e.1;
    f. Glass, including fused silica, phosphate glass, fluorophosphate 
glass, zirconium fluoride (ZrF4) and hafnium fluoride 
(HfF4) with:
    f.1. A hydroxil ion (OH-) concentration of less than 5 ppm;
    f.2. Integrated metallic purity levels of less than 1 ppm; and
    f.3. High homogeneity (index of refraction variance) less than 
5 x 10-6;
    g. Synthetically produced diamond material with an absorption of 
less than 10-5 cm-1 for wavelengths exceeding 200 
nm, but not exceeding 14,000 nm;
    h. ``Optical fiber preforms'' made from bulk fluoride compounds 
containing ingredients with a purity of 99.999% or better, specially 
designed for the manufacture of ``fluoride fibers'' controlled by 
6A004.f.



6C005  Synthetic crystalline ``laser'' host material in unfinished form.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $1500
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: N/A
Related Definitions: N/A
Items: a. Titanium doped sapphire;
    b. Alexandrite.

                               D. Software



6D001  ``Software'' specially designed for the ``development'' or ``production'' of equipment controlled by 6A002, 6A003, 6A004, 6A005, 6A007, 6A008, 6A102, 
          6A108, 6B008 or 6B108.

License Requirements

Reason for Control: NS, MT, NP, RS, AT, UN

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to ``software'' for equipment                                
 controlled by 6A004, 6A005, 6A008 or                                   
 6B008....................................  NS Column 1                 

[[Page 599]]

                                                                        
MT applies to ``software'' for equipment                                
 controlled by 6A002, 6A003, 6A007, 6A008                               
 (that is designed for airborne                                         
 applications and that are usable in                                    
 systems controlled for MT reasons),                                    
 6A102, 6A108 or 6B108 for MT reasons.....  MT Column 1                 
NP applies to ``software'' for equipment                                
 controlled by 6A005 for NP reasons.......  NP Column 1                 
RS applies to ``software'' for equipment                                
 controlled by 6A002 or 6A003 for RS                                    
 reasons..................................  RS Column 1                 
AT applies to entire entry................  AT Column 1                 
UN applies to ``software'' for equipment                                
 controlled by 6A002 or 6A003 for UN                                    
 reasons..................................  Rwanda                      
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



6D002  ``Software'' specially designed for the ``use'' of equipment controlled by 6A002.b, 6A008, or 6B008.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
MT applies to ``software'' for equipment                                
 controlled by 6A008 that is designed for                               
 airborne applications and that are usable                              
 in systems controlled for MT reasons.....  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
CIV: N/A
TSR: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



6D003  Other ``software.''

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
CIV: Yes for 6D003.d.1
TSR: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Acoustics:
    a.1. ``Software'' specially designed for acoustic beam forming for 
the ``real-time processing'' of acoustic data for passive reception 
using towed hydrophone arrays;
    a.2. ``Source code'' for the ``real-time processing'' of acoustic 
data for passive reception using towed hydrophone arrays;
    b. Magnetometers:
    b.1. ``Software'' specially designed for magnetic compensation 
systems for magnetic sensors designed to operate on mobile platforms;
    b.2. ``Software'' specially designed for magnetic anomaly detection 
on mobile platforms;
    c. Gravimeters: ``Software'' specially designed to correct motional 
influences of gravity meters or gravity gradiometers;
    d. Radar:
    d.1. Air Traffic Control ``software'' application ``programs'' 
hosted on general purpose computers located at Air Traffic Control 
centers and capable of any of the following:
    d.1.a. Processing and displaying more than 150 simultaneous ``system 
tracks'';
    d.1.b. Accepting radar target data from more than four primary 
radars; or
    d.1.c. Automatically handing over primary radar target data (if not 
correlated with secondary surveillance radar (SSR) data) from the host 
ATC center to another ATC center;
    d.2. ``Software'' for the design or ``production'' of radomes that:
    d.2.a. Are specially designed to protect the ``electronically 
steerable phased array antennae'' controlled by 6A008.e; and
    d.2.b. Limit the average side-lobe level increase by less than 13 dB 
for frequencies equal to or higher than 2 GHz.



6D102  ``Software'' specially designed for the ``use'' of equipment controlled by 6A002, 6A003, 6A007, 6A102, 6A108 or 6B108.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A

[[Page 600]]

Items: The list of items controlled is contained in the ECCN heading.



6D103  ``Software'' that processes post-flight recorded data obtained from systems controlled by 6A108.b, enabling determination of vehicle position throughout 
          its flight path.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value

    The list of items controlled is contained in the ECCN heading.



6D990  ``Software'' specially designed for the ``development'', ``production'', or ``use'' of equipment controlled by 6A990, 6A992 or 6A993.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



6D994  ``Software'' specially designed for the ``development'', ``production'', or ``use'' of equipment controlled by 6A994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 2                 
                                                                        

License Exceptions

LVS: N/A
CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                              E. Technology



6E001  ``Technology'' according to the General Technology Note for the ``development'' of equipment, materials or ``software'' controlled by 6A (except 6A018 
          6A990, 6A992 to 6A994), 6B, 6C, or 6D (except 6D990 or 6D994).

License Requirements

Reason for Control: NS, MT, NP, RS, CC, AT, UN

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to ``technology'' for items                                  
 controlled by 6A001 to 6A008, 6B004 to                                 
 6B008, 6C002 to 6C005, or 6D001 to 6D003.  NS Column 1                 
MT applies to ``technology'' for items                                  
 controlled by 6A002, 6A007, 6A008, 6A102,                              
 6A107, 6A108, 6B108, 6D001, 6D002, 6D102                               
 or 6D103 for MT reasons..................  MT Column 1                 
NP applies to ``technology'' for equipment                              
 controlled by 6A003, 6A005, 6A202, 6A203,                              
 6A205, 6A225 or 6A226 for NP reasons.....  NP Column 2                 
RS applies to ``technology'' for equipment                              
 controlled by 6A002 or 6A003 for RS                                    
 reasons..................................  RS Column 1                 
CC applies to ``technology'' for equipment                              
 controlled by 6A002 for CC reasons.......  CC Column 1                 
AT applies to entire entry................  AT Column 1                 
UN applies to ``technology'' for equipment                              
 controlled by 6A002 or 6A003 for UN                                    
 reasons..................................  Rwanda                      
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



6E002  ``Technology'' according to the General Technology Note for the ``production'' of equipment or materials controlled by 6A (except 6A018, 6A990, 6A992 to 
          6A994), 6B, or 6C.

License Requirements

Reason for Control: NS, MT, NP, RS, AT, CC, UN

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to ``technology'' for equipment                              
 controlled by 6A001 to 6A008, 6B004 to                                 
 6B008, or 6C002 to 6C005.................  NS Column 1                 

[[Page 601]]

                                                                        
MT applies to ``technology'' for equipment                              
 controlled by 6A002, 6A007, 6A008, 6A102,                              
 6A107, 6A108, or 6B108 for MT reasons....  MT Column 1                 
NP applies to ``technology'' for equipment                              
 controlled by 6A003, 6A005, 6A202, 6A203,                              
 6A205, 6A225 or 6A226 for NP reasons.....  NP Column 1                 
RS applies to ``technology'' for equipment                              
 controlled by 6A002 or 6A003 for RS                                    
 reasons..................................  RS Column 1                 
CC applies to ``technology'' for equipment                              
 controlled by 6A002 for CC reasons.......  CC Column 1                 
AT applies to entire entry................  AT Column 1                 
UN applies to ``technology'' for equipment                              
 controlled by 6A002 or 6A003 for UN                                    
 reasons..................................  Rwanda                      
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



6E003  Other ``technology''.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: a. Optics.
    a.1. Optical surface coating and treatment ``technology'' required 
to achieve uniformity of 99.5% or better for optical coatings 500 mm or 
more in diameter or major axis length and with a total loss (absorption 
and scatter) of less than 5 x 10-3;
    a.2. Optical fabrication technologies, as follows:
    a.2.a. For serially producing optical components at a rate exceeding 
10 m2 of surface area per year on any single spindle and 
with:
    a.2.a.1. An area exceeding 1 m2; and
    a.2.a.2. A surface figure exceeding lambda/10 rms at the designed 
wavelength;
    a.2.b. Single point diamond turning techniques producing surface 
finish accuracies of better than 10 nm rms on non-planar surfaces 
exceeding 0.5 m2;

    Note: See also ECCN 2E003.d in Category 2, Materials Processing.

    b. Lasers.
    b.1. ``Technology'' for optical filters with a bandwidth equal to or 
less than 10 nm, a field of view (FOV) exceeding 40 deg. and a 
resolution exceeding 0.75 line pairs per milliradian;
    b.2. ``Technology'' ``required'' for the ``development'', 
``production'' or ``use'' of specially designed diagnostic instruments 
or targets in test facilities for Super High Power Lasers (SHPL) testing 
or testing or evaluation of materials irradiated by SHPL beams;
    c. Magnetometers. ``Technology'' ``required'' for the 
``development'' or ``production'' of fluxgate ``magnetometers'' or 
fluxgate ``magnetometer'' systems having a noise level:
    c.1. Less than 0.05 nT rms per root Hz at frequencies of less than 1 
Hz; or
    c.2. 1 x 10-3 nT rms per square root Hz at frequencies of 
1 Hz or more.




6E101  ``Technology'' according to the General Technology Note for the ``use'' of equipment or ``software'' controlled in 6A002.a.1, a.3 and a.4, 6A007.b. and 
          .c, 6A008, 6A102, 6A107, 6A108, 6B108, 6D001, 6D002, 6D102 or 
          6D103 for MT reasons.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



6E201  ``Technology'' for the ``use'' of equipment controlled by 6A003, 6A005, 6A202, 6A203, 6A205, 6A225 or 6A226 for NP reasons.

License Requirements

Reason for Control: NP, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NP applies to entire entry................  NP Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

[[Page 602]]



6E990  ``Technology'' for the ``development'', ``production'' or ``use'' equipment controlled by 6A990, 6A992, or 6A993.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



6E994  ``Technology'' for the ``development'', ``production'', or ``use'' of equipment controlled by 6A994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 2                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

EAR99  Items subject to the EAR that are not elsewhere specified in this 
          CCL Category or in any other category in the CCL are 
          designated by the number EAR99.

                      Advisory Notes for Category 6

                                Acoustics

    Advisory Note 1: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory end-
users in Country Group D:1 of equipment controlled by 6A001.a.1.b.4 for 
use in civil research or civil exploration work.

                             Optical Sensors

    Advisory Note 2.1: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory end-
users in the People's Republic of China of image intensifier tubes 
incorporating microchannel-plates, not specially designed for cameras 
controlled by 6A003.

    N.B.: Advisory Note 2.1 does not apply to tubes incorporating a 
gallium arsenide (or similar semiconductor) photocathode.

    Advisory Note 2.2: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory end-
users in Country Group D:1 of reasonable quantities of non-ruggedized 
image intensifier tubes controlled by 6A002.a.2.a.3.a for bona fide 
medical use.

                                 Cameras

    Advisory Note 3: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory end-
users in Country Group D:1 of mechanical framing cameras controlled by 
6A003.a.2 designed for civil purposes (i.e., non-nuclear use) with a 
framing speed of not more than 2 million frames per second.

                                 Optics

    Advisory Note 4.1: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory end-
users in Country Group D:1 of the following items for installation and 
use at ground-based bona fide academic or civilian astronomical research 
sites or in international air- or space-based bona fide academic or 
civilian astronomical research projects. For the end-use stated in this 
Advisory Note, the following limits apply:
    a. One optical mirror controlled by 6A004.a.1;
    b. Three optical mirrors controlled by 6A004.a.2;
    c. Three optical mirrors controlled by 6A004.a.4;
    d. Three optical mirrors controlled by 6A004.b;
    e. Ten optical filters controlled by 6A004.d.1.a;
    f. One piece of optical control equipment controlled by 6A004.e.2 
for each operational mirror;
    g. Four pieces of optical control equipment controlled by 6A004.e.4;
    h. Three ``substrate blanks'' controlled by 6C004.a;
    i. A reasonable quantity of the bulk fluoride glass controlled by 
6C004.e.2;
    j. A reasonable quantity of the materials controlled by 6C004.f.

    N.B.: The quantity limitations listed in Advisory Note 4.1 refer to 
specific projects.

    Advisory Note 4.2: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory end-
users in Country Group D:1 of equipment controlled by 6B004.b for stated 
bona fide civil end-uses.

                                 Lasers

    Advisory Note 5.1: Licenses are likely to be approved, as 
administrative exceptions,

[[Page 603]]

for export and reexport to satisfactory end-users in the People's 
Republic of China of:
    a. ``Tunable'' pulsed flowing-dye ``lasers'' having all of the 
following, and specially designed components therefor:
    1. An output wavelength less than 800 nm;
    2. A ``pulse duration'' not exceeding 100 ns; and
    3. A peak output power not exceeding 15 MW;
    b. CO2 or CO/CO2 ``lasers'' having an output 
wavelength in the range from 9,000 to 11,000 nm and having a pulsed 
output not exceeding 2 J per pulse and a maximum rated average single or 
multimode output power not exceeding 5 kW; or
    c. CO ``lasers'' having a CW maximum rated single or multimode 
output power not exceeding 10 kW.
    Advisory Note 5.2: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory end-
users in Country Group D:1 of ``lasers'', for civil applications, as 
follows:
    a. Neodymium-doped (other than glass), pulse-excited, ``Q-switched 
lasers'' controlled by 6A005.c.2.c.2.b having:
    1. A pulse duration equal to or more than 1 ns; and
    2. A multiple-transverse mode output with a ``peak power'' not 
exceeding 400 MW;
    b. Neodymium-doped (other than glass) ``lasers'' controlled by 
6A005.c.2.c.3.b or 6A005.c.2.c.4.b:
    1. Having:
    a. An output wavelength exceeding 1,000 nm, but not exceeding 1,100 
nm; and
    b. An average or CW output power not exceeding 2 kW; and
    2. Being:
    a. Pulse-excited, non-''Q-switched'' multiple-transverse mode; or
    b. Continuously excited, multiple-transverse mode;
    c. CO2 ``lasers'' controlled by 6A005.a.4:
    1. Being in CW multiple-transverse mode; and
    2. Having a CW output power not exceeding 15 kW.
    d. CO ``lasers'' having a CW maximum rated single or multimode 
output power not exceeding 10 kW.
    Advisory Note 5.3: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory end-
users in Country Group D:1 of optical equipment controlled by 6A005.g 
when intended for use with ``lasers'' that are not controlled or 
controlled ``lasers'' that have been approved for export and reexport.

                                  Radar

    Advisory Note 6: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory end-
users in Country Group D:1 of Air Traffic Control (ATC) ``software'' 
application ``programs'' controlled by 6D03.d.1, provided that:
    a. The number of ``system tracks'' does not exceed 700;
    b. The number of primary radar inputs does not exceed 32; and
    c. The ``software'' is further limited to ``object code'' and the 
minimum amount of ``source code'' necessary for installation, operation 
or maintenance.

                   Category 7--Navigation and Avionics

                A. Equipment, Assemblies, and Components



7A001  Accelerometers designed for use in inertial navigation or guidance systems and having any of the following characteristics, and specially designed 
          components therefor.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
MT applies to entire entry except                                       
 accelerometers that are specially                                      
 designed and developed as Measurement                                  
 While Drilling (MWD) sensors for use in                                
 downhole well service applications.......  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. A ``bias'' ``stability'' of less (better) than 130 micro g 
with respect to a fixed calibration value over a period of one year;
    b. A ``scale factor'' ``stability'' of less (better) than 130 ppm 
with respect to a fixed calibration value over a period of one year; or
    c. Specified to function at linear acceleration levels exceeding 100 
g.



7A002  Gyros having any of the following characteristics, and specially designed components therefor.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A

[[Page 604]]

CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. A ``drift rate'' ``stability'', when measured in a 1 g 
environment over a period of three months and with respect to a fixed 
calibration value, of:
    a.1. Less (better) than 0.1 deg. per hour when specified to function 
at linear acceleration levels below 10 g; or
    a.2. Less (better) than 0.5 deg. per hour when specified to function 
at linear acceleration levels from 10 g to 100 g inclusive; or
    b. Specified to function at linear acceleration levels above 100 g.



7A003  Inertial navigation systems (gimballed and strapdown) and inertial equipment for attitude, guidance or control, having any of the following 
          characteristics, and specially designed components therefor.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: Inertial navigation systems and inertial equipment, 
and specially designed components therefor specifically designed, 
modified or configured for military use are subject to the export 
licensing authority of the U.S. Department of State, Office of Defense 
Trade Controls. (See 22 CFR part 121, Category VIII.)
Related Definitions: N/A
Items: a. For ``aircraft'':
    a.1. Navigation error (free inertial) of 0.8 nautical mile per hour 
(50% Circular Error Probable (CEP)) or less (better) subsequent to 
normal alignment;
    a.2. Not certified for use on ``civil aircraft'' by ``civil aviation 
authorities''; or
    a.3. Specified to function at linear acceleration levels exceeding 
10 g.
    b. [Reserved]




7A004  Gyro-astro compasses, and other devices that derive position or orientation by means of automatically tracking celestial bodies or satellites, with an 
          azimuth accuracy of equal to or less (better) than 5 seconds 
          of arc; and specially designed components therefor.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry except                                       
 specially designed components............  NS Column 2                 
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit:$ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



7A006  Airborne altimeters operating at frequencies other than 4.2 to 4.4 GHz inclusive, having either of the following characteristics, and specially designed 
          components therefor.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry except                                       
 specially designed components............  NS Column 2                 
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: See Category 8 of the Commerce Control List for 
controls on automatic pilots for underwater vehicles, and Category 6 for 
controls on radar. Inertial navigation equipment for ships and 
submersibles is subject to the export licensing authority of the U.S. 
Department of State, Office of Defense Trade Controls. (See 22 CFR part 
121, Category VIII, paragraph (e).)
Related Definitions: N/A
Items: a. ``Power management''; or
    b. Using phase shift key modulation.

[[Page 605]]




7A101  Accelerometers, other than those specified in entry 7A001, with a threshold of 0.05 g or less, or a linearity error within 0.25% of full scale output, or 
          both, that are designed for use in inertial navigation systems 
          or in guidance systems of all types and specially designed 
          components therefor.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry except                                       
 accelerometers that are specially                                      
 designed and developed as Measurement                                  
 While Drilling (MWD) sensors for use in                                
 downhole well service applications.......  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: 7A101 does not specify accelerometers which are 
specially designed and developed as MWD (Measurement While Drilling) 
sensors for use in downhole well service operations.
Items: The list of items is included in the entry heading.




7A102  All types of gyros, other than those specified in 7A002, usable in ``missiles'', with a rated ``drift rate'' ``stability'' of less than 0.5 deg. (1 sigma 
          or rms) per hour in a 1 g environment and specially designed 
          components therefor.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Sec. value
Related Controls: N/A
Related Definitions: (1) Drift rate is defined as the time rate of 
output deviation from the desired output. It consists of random and 
systematic components and is expressed as an equivalent angular 
displacement per unit time with respect to inertial space. (2) Stability 
is defined as standard deviation (1 sigma) of the variation of a 
particular parameter from its calibrated value measured under stable 
temperature conditions. This can be expressed as a function of time.
Items: The list of items controlled is contained in the ECCN heading.




7A103  Instrumentation, navigation equipment and systems, other than those specified in 7A003, and specially designed components therefor.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: (1) Items controlled in 7A103.b in the corresponding 
EU list number are not controlled in this CCL entry. Those items are 
subject to the export licensing jurisdiction of the U.S. Department of 
State, Office of Defense Trade Controls (See 22 CFR part 121, Category 
VIII.e) (2) Inertial navigation systems and inertial equipment, and 
specially designed components therefor specifically designed, modified 
or configured for military use are subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls. (See 22 CFR part 121, Category VIII.)
Related Definitions: N/A
Items: a. Inertial or other equipment using accelerometers or gyros 
specified in 7A001, 7A002, 7A101 or 7A102 and systems incorporating such 
equipment.
    b. [Reserved]




7A104  Gyro-astro compasses and other devices, other than those specified in 7A004, that derive position or orientation by means of automatically tracking 
          celestial bodies or satellites and specially designed 
          components therefor.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A

[[Page 606]]

CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



7A106  Avionics equipment and components usable in missile systems.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: Altimeters for missile systems controlled in the 
corresponding EU list number are subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls. (See 22 CFR part 121, Category VIII, paragraph (e).)
Related Definitions: N/A
Items: a. Terrain contour mapping equipment;
    b. Scene mapping and correlation (both digital and analog) 
equipment;
    c. Doppler navigation radar equipment;
    d. Imaging sensor equipment (active).




7A115  Airborne passive sensors for determining bearing to specific electromagnetic sources (direction finding equipment) or terrain characteristics.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: Airborne passive sensors designed or modified for use 
in missile systems controlled in the corresponding EU list number is 
subject to the export licensing authority of the U.S. Department of 
State, Office of Defense Trade Controls. (See 22 CFR part 121.)
Related Definitions: N/A
Items: a. Scene mapping and correlation (both digital and analog) 
equipment;
    b. Passive interferometer equipment; and,
    c. Imaging sensor equipment (passive).




7A994  Other navigation direction finding equipment, airborne communication equipment, all aircraft, inertial navigation systems not controlled under 7A003 or 
          7A103, and other avionic equipment, including parts and 
          components, n.e.s.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: Global Positioning Satellite receivers having the 
following characteristics are subject to the export licensing authority 
of the U.S. Department of State, Office of Defense Trade Controls (22 
CFR part 121, Category XV): (a) Designed for encryption or decryption 
(e.g., Y-code) or GPS precise positioning service (PPS) signal; (b) 
Designed for producing navigation results above 60,000 feet altitude and 
at 1,000 knots velocity or greater; (c) Specifically designed or 
modified for use with a null-steering antenna or including a null-
steering antenna designed to reduce or avoid jamming signals; or (d) 
Designed or modified for use with unmanned air vehicle systems capable 
of delivering at least a 500 kg payload to a range of at least 300 km. 
(GPS receivers designed or modified for use with military unmanned air 
vehicle systems with less capability are considered to be specially 
designed, modified or configured for military use are controlled by 22 
CFR part 121, Category XV, paragraph (c).
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

              B. Test, Inspection and Production Equipment




7B001  Test, calibration or alignment equipment specially designed for equipment controlled by 7A, except equipment for Maintenance Level I or Maintenance Level 
          II.

License Requirements

Reason for Control: NS, MT, AT

[[Page 607]]



                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: (1) Maintenance Level I: The failure of an inertial 
navigation unit is detected on the aircraft by indications from the 
Control and Display Unit (CDU) or by the status message from the 
corresponding sub-system. By following the manufacturer's manual, the 
cause of the failure may be localized at the level of the malfunctioning 
line replaceable unit (LRU). The operator then removes the LRU and 
replaces it with a spare.
(2) Maintenance Level II: The defective LRU is sent to the maintenance 
workshop (the manufacturer's or that of the operator responsible for 
level II maintenance). At the maintenance workshop, the malfunctioning 
LRU is tested by various appropriate means to verify and localize the 
defective shop replaceable assembly (SRA) module responsible for the 
failure. This SRA is removed and replaced by an operative spare. The 
defective SRA (or possibly the complete LRU) is then shipped to the 
manufacturer. Maintenance Level II does not include the removal of 
controlled accelerometers or gyro sensors from the SRA.
Items: The list of items controlled is contained in the ECCN heading.




7B002  Equipment specially designed to characterize mirrors for ring ``laser'' gyros.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Scatterometers having a measurement accuracy of 10 ppm or less 
(better); or
    b. Profilometers having a measurement accuracy of 0.5 nm (5 
angstrom) or less (better).




7B003  Equipment specially designed for the ``production'' of equipment controlled by 7A, and specially designed components therefor.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Gyro tuning test stations;
    b. Gyro dynamic balance stations;
    c. Gyro run-in/motor test stations;
    d. Gyro evacuation and fill stations;
    e. Centrifuge fixtures for gyro bearings;
    f. Accelerometer axis align stations.




7B101  Equipment specially designed for the ``production'' of equipment controlled by 7A, and specially designed components therefor.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Inertial Measurement Unit (IMU Module) tester;
    b. IMU platform tester;
    c. IMU stable element handling fixture;
    d. IMU platform balance fixture;
    e. Acceleromerter test station.




7B102  Reflectometers specially designed to characterize mirrors, for ``laser'' gyros, having a measurement accuracy of 50 ppm or less (better).

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 

[[Page 608]]

                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




7B994  Other equipment for the test, inspection, or ``production'' of navigation and avionics equipment.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                        C. Materials  [Reserved]

                               D. Software




7D001  ``Software'' specially designed or modified for the ``development'' or ``production'' of equipment controlled by 7A (except 7A994) or 7B (except 7B994).

License Requirements

Reason for Control: NS, MT, RS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to ``software'' for equipment                                
 controlled by 7A001 to 7A004, 7A006,                                   
 7B001, 7B002 or 7B003....................  NS Column 1                 
MT applies to entire entry................  MT Column 1                 
RS applies to ``software'' for inertial                                 
 navigation systems inertial equipment,                                 
 and specially designed components                                      
 therefor, for ``civil aircraft''.........  RS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: (1) The corresponding EU List number controls 
``software'' relating to entries that do not appear on the CCL (e.g., 
7A003.b, 7A005, 7A103.b, 7A105, 7A116, 7A117, 7B103). The ``software'' 
related to these entries is subject to the export licensing authority of 
the U.S. Department of State, Office of Defense Trade Controls. (See 22 
CFR part 121.) (2) ``Software'' for inertial navigation systems and 
inertial equipment, and specially designed components therefor, not for 
use on civil aircraft are subject to the export licensing authority of 
the U.S. Department of State, Office of Defense Trade Controls. (See 22 
CFR part 121, Category VIII, paragraph (e).)
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




7D002  ``Source code'' for the ``use'' of any inertial navigation equipment or Attitude Heading Reference Systems (AHRS) (except gimballed AHRS) including 
          inertial equipment not controlled by 7A003 or 7A004.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: AHRS generally differ from inertial navigation 
systems (INS) in that an AHRS provides altitude heading information and 
normally does not provide the acceleration, velocity and position 
information associated with INS.
Items: The list of items controlled is contained in the ECCN heading.



7D003  Other ``software''.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A

[[Page 609]]

Related Definitions: N/A
Items: a. ``Software'' specially designed or modified to improve the 
operational performance or reduce the navigational error of systems to 
the levels specified in 7A003 or 7A004;
    b. ``Source code'' for hybrid integrated systems that improves the 
operational performance or reduces the navigational error of systems to 
the level specified in 7A003 by continuously combining inertial data 
with any of the following navigation data:
    b.1. Doppler radar velocity;
    b.2. Global Positioning Satellite (GPS) references or;
    b.3. Terrain data base;
    c. ``Source code'' for integrated avionics or mission systems that 
combine sensor data and employ knowledge-based expert systems;
    d. ``Source code'' for the ``development'' of:
    d.1. Digital flight management systems for flight path optimization;
    d.2. Integrated propulsion and flight control systems;
    d.3. Fly-by-wire or fly-by-light control systems;
    d.4. Fault-tolerant or self-reconfiguring ``active flight control 
systems'';
    d.5. Airborne automatic direction finding equipment;
    d.6. Air data systems based on surface static data;
    d.7. Raster-type head-up displays or three dimensional displays.




7D101  ``Software'' specially designed for the ``use'' of equipment controlled by 7A001 to 7A004, 7A006, 7A101 to 7A104, 7A106, 7A115, 7B001, 7B002, 7B003, 
          7B101, or 7B102.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: (1) The corresponding EU List number controls 
``software'' relating to entries that do not appear on the CCL (e.g., 
7A003.b, 7A005, 7A103.b, 7A105, 7A116, 7A117, or 7B103). The 
``software'' related to these entries is subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls. (See 22 CFR part 121.) (2) ``Software'' for inertial 
navigation systems and inertial equipment, and specially designed 
components therefor, not designed for use on civil aircraft by civil 
aviation authorities of a country listed in Country Group A:1 is subject 
to the export licensing authority of the U.S. Department of State, 
Office of Defense Trade Controls. (See 22 CFR part 121, Category VIII.)
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



7D102  Integration ``software'' for the equipment controlled by 7A003 or 7A103.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions:
CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: (1) The corresponding EU List number controls 
``software'' relating to entries that do not appear on the CCL (e.g., 
7A003.b or 7A103.b). The ``software'' related to these entries is 
subject to the export licensing authority of the U.S. Department of 
State, Office of Defense Trade Controls. (See 22 CFR part 121.)
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




7D994  ``Software'', n.e.s., for the ``development'', ``production'', or ``use'' of navigation, airborne communication and other avionics.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.


[[Page 610]]



                              E. Technology




7E001  ``Technology'' according to the General Technology Note for the ``development'' of equipment or ``software'' controlled by 7A (except 7A994), 7B (except 
          7B994), or 7D (except 7D994).

License Requirements

Reason for Control: MT, NS, RS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to ``technology for items                                    
 controlled by 7A001 to 7A004, 7A006,                                   
 7B001 to 7B003, 7D001 to 7D003...........  NS Column 1                 
MT applies to entire entry................  MT Column 1                 
RS applies to ``technology'' for inertial                               
 navigation systems, inertial equipment                                 
 and specially designed components                                      
 therefor, for civil aircraft.............  RS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: The corresponding EU List number controls 
``technology'' relating to entries that do not appear on the CCL (e.g., 
7A003.b, 7A005, 7A103.b, 7A105, 7A116, 7A117, 7B103). The software 
related to these entries is subject to the export licensing authority of 
the U.S. Department of State, Office of Defense Trade Control (see 22 
CFR part 121).
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




7E002  ``Technology'' according to the General Technology Note for the ``production'' of equipment controlled by 7A (except 7A994) or 7B (except 7B994).

License Requirements

Reason for Control: NS, MT, RS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to ``technology'' for equipment                              
 controlled by 7A001 to 7A004, 7A006 or                                 
 7B001 to 7B003...........................  NS Column 1                 
MT applies to entire entry................  MT Column 1                 
RS applies to ``technology'' for inertial                               
 navigation systems, inertial equipment                                 
 and specially designed components                                      
 therefor, for civil aircraft.............  RS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: The corresponding EU List number controls 
``technology'' relating to entries that do not appear on the CCL (e.g., 
7A003.b, 7A005, 7A103.b, 7A105, 7A116, 7A117, 7B103). The software 
related to these entries is subject to the export licensing authority of 
the U.S. Department of State, Office of Defense Trade Controls (see 22 
CFR part 121).
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




7E003  ``Technology'' according to the General Technology Note for the repair, refurbishing or overhaul of equipment controlled by 7A001 to 7A004, except for 
          maintenance ``technology'' directly associated with 
          calibration, removal or replacement of damaged or 
          unserviceable line replaceable units (LRU) and shop 
          replaceable units (SRA) of a ``civil aircraft'' as described 
          in Maintenance Level I or Maintenance Level II.

License Requirements

    Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definition: Refer to the Related Definitions for 7B001
Items: The list of items controlled is contained in the ECCN heading.



7E004  Other ``technology.''

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                 Control(s)                         Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls:
N/A
Related Definitions: N/A
Items: a. ``Technology'' for the ``development'' or ``production'' of:

[[Page 611]]

    a.1. Airborne automatic direction finding equipment operating at 
frequencies exceeding 5 MHz;
    a.2. Air data systems based on surface static data only, i.e., that 
dispense with conventional air data probes;
    a.3. Raster-type head-up displays or three dimensional displays for 
``aircraft'';
    a.4. Inertial navigation systems or gyro-astro compasses containing 
accelerometers or gyros controlled by 7A001 or 7A002;
    b. ``Development'' ``technology'', as follows, for ``active flight 
control systems'' (including fly-by-wire or fly-by-light);
    b.1. Configuration design for interconnecting multiple 
microelectronic processing elements (on-board computers) to achieve 
``real time processing'' for control law implementation;
    b.2. Control law compensation for sensor location or dynamic 
airframe loads, i.e., compensation for sensor vibration environment or 
for variation of sensor location from the center of gravity;
    b.3. Electronic management of data redundancy or systems redundancy 
for fault detection, fault tolerance, fault isolation or 
reconfiguration;

    Note: 7E004.b.3 does not control ``technology'' for the design of 
physical redundancy.

    b.4. Flight controls that permit inflight reconfiguration of force 
and moment controls for real time autonomous air vehicle control;
    b.5. Integration of digital flight control, navigation and 
propulsion control data into a digital flight management system for 
flight path optimization, except ``development'' ``technology'' for 
aircraft flight instrument systems integrated solely for VOR, DME, ILS 
or MLS navigation or approaches;
    b.6. Full authority digital flight control or multi sensor mission 
management systems incorporating knowledge-based expert systems;

    Note: (For ``technology'' for Full Authority Digital Engine Control 
(FADEC), see 9E003.a.10)

    c. ``Technology'' for the ``development'' of helicopter systems, as 
follows:
    c.1. Multi-axis fly-by-wire or fly-by-light controllers that combine 
the functions of at least two of the following into one controlling 
element:
    c.1.a. Collective controls;
    c.1.b. Cyclic controls;
    c.1.c. Yaw controls;
    c.2. ``Circulation-controlled anti-torque or circulation-controlled 
directional control systems'';
    c.3. Rotor blades incorporating ``variable geometry airfoils'' for 
use in systems using individual blade control.



7E101  ``Technology'' according to the General Technology Note for the ``use'' of equipment or ``software'' specified in 7A001 to 7A004, 7A006, 7A101 to 7A104, 
          7A106, 7A115, 7B002, 7B003, 7B101, 7B102, 7D101 or 7D102 for 
          MT reasons.

License Requirements

Reason for Control: MT, RS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
RS applies to ``development'' or                                        
 ``production'' of inertial navigation                                  
 systems, inertial equipment and specially                              
 designed components therefor, for civil                                
 aircraft.................................  RS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: (1) The corresponding EU List number controls 
``technology'' relating to entries that do not appear on the CCL (e.g., 
7A003.b, 7A005, 7A103.b, 7A105, 7A116, 7A117, 7B103). The software 
related to these entries is subject to the export licensing authority of 
the U.S. Department of State, Office of Defense Trade Controls. (See 22 
CFR part 121.) 2.)
``Technology'' for inertial navigation systems and inertial equipment, 
and specially designed components therefor, not for use on civil 
aircraft are subject to the export licensing authority of the U.S. 
Department of State, Office of Defense Trade Controls. (See 22 CFR part 
121, Category VIII.)
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



97E102  ``Technology'' for protection of avionics and electrical subsystems against electromagnetic pulse (EMP) and electromagnetic interference (EMI) hazards 
          from external sources.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A

[[Page 612]]

Related Definitions: N/A
Items: a. Design ``technology'' for shielding systems;
    b. Design ``technology'' for the configuration of hardened 
electrical circuits and subsystems;
    c. Design ``technology'' for the determination of hardening criteria 
of paragraph a and b above.



7E994  ``Technology'', n.e.s., for the ``development'', ``production'', or ``use'' of navigation, airborne communication, and other avionics equipment.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

EAR99  Items subject to the EAR that are not elsewhere specified in this 
          CCL Category or in any other category in the CCL are 
          designated by the number EAR99.

                           Category 8--Marine

                 A. Equipment, Assemblies and Components



8A001  Submersible vehicles or surface vessels.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in Sec. value
Related Controls: See other Categories, as appropriate, within the 
Commerce Control List for controls of equipment for submersible vehicles 
(e.g., for the control status of marine gas turbine engines, see 
Category 9).
Related Definitions: N/A
Items: a. Manned, tethered submersible vehicles designed to operate at 
depths exceeding 1,000 m;
    b. Manned, untethered submersible vehicles:
    b.1. Designed to ``operate autonomously'' and having a lifting 
capacity of:
    b.1.a. 10% or more of their weight in air; and
    b.1.b. 15 kN or more;
    b.2. Designed to operate at depths exceeding 1,000 m; or
    b.2.a. Designed to carry a crew of 4 or more;
    b.2.b. Designed to ``operate autonomously'' for 10 hours or more;
    b.2.c. Having a ``range'' of 25 nautical miles or more; and
    b.2.d. Having a length of 21 m or less;
    c. Unmanned, tethered submersible vehicles designed to operate at 
depths exceeding 1,000 m:
    c.1. Designed for self-propelled maneuver using propulsion motors or 
thrusters controlled by 8A002.a.2; or
    c.2. Having a fiber optic data link;
    d. Unmanned, untethered submersible vehicles:
    d.1. Designed for deciding a course relative to any geographical 
reference without real-time human assistance;
    d.2. Having an acoustic data or command link; or
    d.3. Having a fiber optic data or command link exceeding 1,000 m;
    e. Ocean salvage systems with a lifting capacity exceeding 5 MN for 
salvaging objects from depths exceeding 250 m and having either of the 
following:
    e.1. Dynamic positioning systems capable of position keeping within 
20 m of a given point provided by the navigation system; or
    e.2. Seafloor navigation and navigation integration systems for 
depths exceeding 1,000 m with positioning accuracies to within 10 m of a 
predetermined point;
    f. Surface-effect vehicles (fully skirted variety) with a maximum 
design speed, fully loaded, exceeding 30 knots in a significant wave 
height of 1.25 m (Sea State 3) or more, a cushion pressure exceeding 
3,830 Pa, and a light-ship-to-full-load displacement ratio of less than 
0.70;
    g. Surface-effect vehicles (rigid sidewalls) with a maximum design 
speed, fully loaded, exceeding 40 knots in a significant wave height of 
3.25 m (Sea State 5) or more;
    h. Hydrofoil vessels with active systems for automatically 
controlling foil systems, with a maximum design speed, fully loaded, of 
40 knots or more in a significant wave height of 3.25 m (Sea State 5) or 
more;
    i. Small waterplane area vessels with:
    i.1. A full load displacement exceeding 500 tons with a maximum 
design speed, fully loaded, exceeding 35 knots in a significant

[[Page 613]]

wave height of 3.25 m (Sea State 5) or more; or
    i.2. A full load displacement exceeding 1,500 tons with a maximum 
design speed, fully loaded, exceeding 25 knots in a significant wave 
height of 4 m (Sea State 6) or more.

    Technical Note: A small waterplane area vessel is defined by the 
following formula: waterplane area at an operational design draft less 
than 2 x (displaced volume at the operational design draft)\2/3\.



8A002  Systems or equipment.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 2                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: Yes for 8A002.i.2 as described in Advisory Note to Category 8 and 
8A002.e.2
CIV: Yes for 8A002.i.2 as described in Advisory Note to Category 8 and 
8A002.e.2

List of Items Controlled

Unit: Equipment in number
Related Controls: See other Categories, as appropriate, within the 
Commerce Control List for controls of equipment for submersible vehicles 
(e.g., for underwater communications systems, see Category 5).
Related Definitions: N/A
Items: a. Systems or equipment, specially designed or modified for 
submersible vehicles, designed to operate at depths exceeding 1,000 m, 
as follows:
    a.1. Pressure housings or pressure hulls with a maximum inside 
chamber diameter exceeding 1.5 m;
    a.2. Direct current propulsion motors or thrusters;
    a.3. Umbilical cables, and connectors therefor, using optical fiber 
and having synthetic strength members;
    b. Systems specially designed or modified for the automated control 
of the motion of equipment for submersible vehicles controlled by 8A001 
using navigation data and having closed loop servo-controls to:
    b.1. Enable a vehicle to move within 10 m of a predetermined point 
in the water column;
    b.2. Maintain the position of the vehicle within 10 m of a 
predetermined point in the water column; or
    b.3. Maintain the position of the vehicle within 10 m while 
following a cable on or under the seabed;
    c. Fiber optic hull penetrators or connectors;
    d. Underwater vision systems, as follows:
    d.1.a. Television systems (comprising camera, lights, monitoring and 
signal transmission equipment) having a limiting resolution when 
measured in air of more than 500 lines and specially designed or 
modified for remote operation with a submersible vehicle; or
    d.1.b. Underwater television cameras having a limiting resolution 
when measured in air of more than 700 lines;

    Technical Note: Limiting resolution in television is a measure of 
horizontal resolution usually expressed in terms of the maximum number 
of lines per picture height discriminated on a test chart, using IEEE 
Standard 208/1960 or any equivalent standard.

    d.2. Systems, specially designed or modified for remote operation 
with an underwater vehicle, employing techniques to minimize the effects 
of back scatter, including range-gated illuminators or ``laser'' 
systems;
    d.3. Low light level television cameras specially designed or 
modified for underwater use containing:
    d.3.a. Image intensifier tubes controlled by 6A002.a.2.a; and
    d.3.b. More than 150,000 ``active pixels'' per solid state area 
array;
    e. Photographic still cameras specially designed or modified for 
underwater use, having a film format of 35 mm or larger, and:
    e.1. Annotating the film with data provided by a source external to 
the camera;
    e.2. Having autofocussing or remote focussing specially designed for 
underwater use;
    e.3. Having automatic back focal distance correction; or
    e.4. Having automatic compensation control specially designed to 
permit an underwater camera housing to be usable at depths exceeding 
1,000 m;
    f. Electronic imaging systems, specially designed or modified for 
underwater use, capable of storing digitally more than 50 exposed 
images;
    g. Light systems, as follows, specially designed or modified for 
underwater use:
    g.1. Stroboscopic light systems capable of a light output energy of 
more than 300 J per flash;
    g.2. Argon arc light systems specially designed for use below 1,000 
m;
    h. ``Robots'' specially designed for underwater use, controlled by 
using a dedicated stored program computer, and:
    h.1. Having systems that control the ``robot'' using information 
from sensors that measure force or torque applied to an external object, 
distance to an external object, or tactile sense between the ``robot'' 
and an external object; or
    h.2. Capable of exerting a force of 250 N or more or a torque of 250 
Nm or more and using titanium based alloys or ``fibrous and 
filamentary'' ``composite'' materials in their structural members;
    i. Remotely controlled articulated manipulators specially designed 
or modified for use with submersible vehicles and having either of the 
following characteristics:
    i.1. Having systems that control the manipulator using the 
information from sensors

[[Page 614]]

that measure the torque or force applied to an external object, or 
tactile sense between the manipulator and an external object; or
    i.2. Controlled by proportional master-slave techniques or by using 
a dedicated stored program computer, and having 5 degrees of freedom of 
movement or greater;

    Note: Only functions having proportional control using positional 
feedback or by using a dedicated stored program computer are counted 
when determining the number of degrees of freedom of movement.

    j. Air-independent power systems, as follows, specially designed for 
underwater use:
    j.1. Brayton, Stirling or Rankine cycle engine air independent power 
systems having any of the following:
    j.1.a. Chemical scrubber or absorber systems specially designed to 
remove carbon dioxide, carbon monoxide and particulates from 
recirculated engine exhaust;
    j.1.b. Systems specially designed to use a monoatomic gas;
    j.1.c. Devices or enclosures specially designed for underwater noise 
reduction in frequencies below 10 kHz, or special mounting devices for 
shock mitigation; or
    j.1.d. Systems specially designed:
    j.1.d.1. To pressurize the products of reaction or for fuel 
reformation;
    j.1.d.2. To store the products of the reaction; and
    j.1.d.3. To discharge the products of the reaction against a 
pressure of 100 kPa or more;
    j.2. Diesel cycle engine air independent systems, having all of the 
following:
    j.2.a. Chemical scrubber or absorber systems specially designed to 
remove carbon dioxide, carbon monoxide and particulates from 
recirculated engine exhaust;
    j.2.b. Systems specially designed to use a monoatomic gas;
    j.2.c. Devices or enclosures specially designed for underwater noise 
reduction in frequencies below 10 kHz or special mounting devices for 
shock mitigation; and
    j.2.d. Specially designed exhaust systems that do not exhaust 
continuously the products of combustion;
    j.3. Fuel cell air independent power systems with an output 
exceeding 2 kW having either of the following:
    j.3.a. Devices or enclosures specially designed for underwater noise 
reduction in frequencies below 10 kHz or special mounting devices for 
shock mitigation; or
    j.3.b. Systems specially designed:
    j.3.b.1. To pressurize the products of reaction or for fuel 
reformation;
    j.3.b.2. To store the products of the reaction; and
    j.3.b.3. To discharge the products of the reaction against a 
pressure of 100 kPa or more;
    k. Skirts, seals and fingers, as follows:
    k.1. Designed for cushion pressures of 3,830 Pa or more, operating 
in a significant wave height of 1.25 m (Sea State 3) or more and 
specially designed for surface effect vehicles (fully skirted variety) 
controlled by 8A001.f;
    k.2. Designed for cushion pressures of 6,224 Pa or more, operating 
in a significant wave height of 3.25 m (Sea State 5) or more and 
specially designed for surface effect vehicles (rigid sidewalls) 
controlled by 8A001.g;
    l. Lift fans rated at more than 400 kW specially designed for 
surface effect vehicles controlled by 8A001.f or 8A001.g;
    m. Fully submerged subcavitating or supercavitating hydrofoils 
specially designed for vessels controlled by 8A001.h;
    n. Active systems specially designed or modified to control 
automatically the sea-induced motion of vehicles or vessels controlled 
by 8A001.f, .g, .h or .i;
    o.1. Water-screw propeller or power transmission systems, as 
follows, specially designed for surface effect vehicles (fully skirted 
or rigid sidewall variety), hydrofoils or small waterplane area vessels 
controlled by 8A001.f, .g, .h or .i:
    o.1.a. Supercavitating, super-ventilated, partially-submerged or 
surface piercing propellers rated at more than 7.5 MW;
    o.1.b. Contrarotating propeller systems rated at more than 15 MW;
    o.1.c. Systems employing pre-swirl or post-swirl techniques for 
smoothing the flow into a propeller;
    o.1.d. Light-weight, high capacity (K factor exceeding 300) 
reduction gearing;
    o.1.e. Power transmission shaft systems, incorporating ``composite'' 
material components, capable of transmitting more than 1 MW;
    o.2. Water-screw propeller, power generation or transmission systems 
for use on vessels.
    o.2.a. Controllable-pitch propellers and hub assemblies rated at 
more than 30 MW;
    o.2.b. Internally liquid-cooled electric propulsion engines with a 
power output exceeding 2.5 MW;
    o.2.c. ``Superconductive'' propulsion engines, or permanent magnet 
electric propulsion engines, with a power output exceeding 0.1 MW;
    o.2.d. Power transmission shaft systems, incorporating ``composite'' 
material components, capable of transmitting more than 2 MW;
    o.2.e. Ventilated or base-ventilated propeller systems rated at more 
than 2.5 MW;
    o.3. Noise reduction systems for use on vessels of 1,000 tons 
displacement or more, as follows:
    o.3.a. Noise reduction systems that attenuate at frequencies below 
500 Hz and consist of compound acoustic mounts for the acoustic 
isolation of diesel engines, diesel generator sets, gas turbines, gas 
turbine generator sets, propulsion motors or propulsion reduction gears, 
specially designed for sound or vibration isolation, having an 
intermediate mass

[[Page 615]]

exceeding 30% of the equipment to be mounted;
    o.3.b. Active noise reduction or cancellation systems, or magnetic 
bearings, specially designed for power transmission systems, and 
incorporating electronic control systems capable of actively reducing 
equipment vibration by the generation of anti-noise or anti-vibration 
signals directly to the source;
    p. Pumpjet propulsion systems with a power output exceeding 2.5 MW 
using divergent nozzle and flow conditioning vane techniques to improve 
propulsive efficiency or reduce propulsion-generated underwater-radiated 
noise.



8A018  Items on the International Munitions List.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                          Country chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Closed and semi-closed circuit (rebreathing) apparatus for 
diving and underwater swimming, and specially designed components for 
use in the conversion of open-circuit apparatus to military use;
    b. Naval equipment, as follows:
    b.1. Diesel engines of 1,500 hp and over with rotary speed of 700 
rpm or over specially designed for submarines;
    b.2. Electric motors specially designed for submarines, i.e., over 
1,000 hp, quick reversing type, liquid cooled, and totally enclosed;
    b.3. Nonmagnetic diesel engines, 50 hp and over, specially designed 
for military purposes. (An engine shall be presumed to be specially 
designed for military purposes if it has nonmagnetic parts other than 
crankcase, block, head, pistons, covers, end plates, valve facings, 
gaskets, and fuel, lubrication and other supply lines, or its 
nonmagnetic content exceeds 75 percent of total weight.);
    b.4. Marine boilers designed to have any of the following 
characteristics:
    b.4.a. Heat release rate (at maximum rating) equal to or in excess 
of 190,000 BTU per hour per cubic foot of furnace volume; or
    b.4.b. Ratio of steam generated in pounds per hour (at maximum 
rating) to the dry weight of the boiler in pounds equal to or in excess 
of 0.83;
    b.5. Submarine and torpedo nets; and
    b.6. Components, parts, accessories, and attachments for the above.



8A992  Other underwater camera equipment, n.e.s., other submersible systems, n.e.s.; and specially designed parts therefor.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



8A993  Self-contained underwater breathing apparatus (scuba gear) and related equipment.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 2                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Self-contained underwater breathing apparatus (scuba gear);
    b. Pressure regulators, air cylinders, hoses, valves and backpacks 
for the apparatus described in paragraph 8A993.a;
    c. Life jackets, inflation cartridges, compasses, wetsuits, masks, 
fins, weight belts, and dive computers;
    d. Underwater lights and propulsion equipment;
    e. Air compressors and filtration systems specially designed for 
filling air cylinders; and
    f. Other self-contained underwater breathing apparatus (scuba gear) 
and related equipment, n.e.s.



8A994  Boats, n.e.s., including inflatable boats, marine engines (both inboard and outboard) and submarine engines, n.e.s; and specially designed parts 
          therefor, n.e.s.

License Requirements

Reason for Control: AT

[[Page 616]]



                                                                        
                Control(s)                         Country Chart        
                                                                        
AT applies to entire entry...............  AT Column 2                  
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

              B. Test, Inspection and Production Equipment




8B001  Water tunnels, having a background noise of less than 100 dB (reference 1 microPascal, 1 Hz) in the frequency range from 0 to 500 Hz, designed for 
          measuring acoustic fields generated by a hydro-flow around 
          propulsion system models.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to entire entry...............  NS Column 2                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                              C. Materials



8C001:  Syntactic foam for underwater use.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to entire entry...............  NS Column 2                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definition: Syntactic foam consists of hollow spheres of plastic 
or glass embedded in a resin matrix.
Items: a. Designed for marine depths exceeding 1,000 m; and
    b. With a density less than 561 kg/m3.

                               D. Software




8D001  ``Software'' specially designed or modified for the ``development'', ``production'' or ``use'' of equipment or materials controlled by 8A (except 8A018, 
          8A992 to 8A994), 8B, or 8C.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to entire entry...............  NS Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




8D002  Specific ``software'' specially designed or modified for the ``development'', ``production'', repair, overhaul or refurbishing (re-machining) of 
          propellers specially designed for underwater noise reduction.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to entire entry...............  NS Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




8D992  ``Software'' specially designed or modified for the ``development'', ``production'' or ``use'' of equipment controlled by 8A992.

License Requirements

Reason for Control: AT

[[Page 617]]



                                                                        
                Control(s)                         Country chart        
                                                                        
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




8D993  ``Software'' specially designed or modified for the ``development'', ``production'' or ``use'' of equipment controlled by 8A993 and 8A994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
AT applies to entire entry...............  AT Column 2                  
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                              E. Technology




8E001  ``Technology'' according to the General Technology Note for the ``development'' or ``production'' of equipment or materials controlled by 8A (except 
          8A018, 8A992 to 8A994), 8B, or 8C.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                         Country chart        
                                                                        
NS applies to entire entry...............  NS Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



8E002  Other technology.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                         Country chart        
                                                                        
NS applies to entire entry...............  NS Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: a. ``Technology'' for the ``development'', ``production'', 
repair, overhaul or refurbishing (re-machining) of propellers specially 
designed for underwater noise reduction;
    b. ``Technology'' for the overhaul or refurbishing of equipment 
controlled by 8A001, 8A002.b, .j, .o, or .p.



8E992  ``Technology'' for the ``development'', ``production'' or ``use'' of equipment controlled by 8A992.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



8E993  ``Technology'' for the ``development'', ``production'' or ``use'' of items controlled by 8A993 and 8A994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
AT applies to entire entry...............  AT Column 2                  
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

EAR99  Items subject to the EAR that are not elsewhere specified in this 
          CCL Category or in any other category in the CCL are 
          designated by the number EAR99.

[[Page 618]]

                      Advisory Notes for Category 8

    Advisory Note: Licenses are likely to be approved, as administrative 
exceptions, for export and reexport to satisfactory end-users in Country 
Group D:1 of manipulators, for civil end-uses (e.g., underwater oil, gas 
or mining operations), that are controlled by 8A002.i.2 and have 5 
degrees of freedom of movement.

   Category 9--Propulsion Systems Space Vehicles and Related Equipment

                 A. Equipment, Assemblies and Components



9A001  Aero gas turbine engines incorporating any of the technologies controlled by 9E003.a and described in this entry.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                         Country chart        
                                                                        
NS applies to entire entry...............  NS Column 2                  
MT applies to only to those engines that                                
 meet the characteristics listed in 9A101  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Not certified for the specific ``civil aircraft'' for which 
they are intended;

    Note: For the purpose of the ``civil aircraft'' certification 
process, a limited number of civil certified engines, assemblies or 
components may be authorized for export and reexport to Country Group 
D:1. This limited number is defined as the minimum required (up to 16, 
including spares) for civil certification.

    b. Not certified for civil use by the civil aviation authorities in 
a country listed in Country Group A:1;
    c. Designed to cruise at speeds exceeding Mach 1.2 for more than 
thirty minutes;




9A002  Marine gas turbine engines with an ISO standard continuous power rating of 24,245 kW or more and a specific fuel consumption of less than 0.219 kg/kWh at 
          any point in the power range from 35 to 100%, and specially 
          designed assemblies and components therefor.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to entire entry...............  NS Column 2                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $5000
GBS: Yes, only as described in Advisory Note 1 to Category 9
CIV: Yes, only as described in Advisory Note 1 to Category 9

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definition: The term marine gas turbine engines includes those 
industrial, or aero-derivative, gas turbine engines adapted for marine 
propulsion or shipboard power generation.
Items: The list of items controlled is contained in the ECCN heading.




9A003  Specially designed assemblies and components, incorporating any of the technologies controlled by 9E003.a, for gas turbine engine propulsion systems.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to entire entry...............  NS Column 2                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls:
Related Definition: This entry does not control multiple domed 
combusters operating at average burner outlet temperatures equal to or 
less than 1,813 K (1,540  deg.C).
Items: a. Assemblies and components specially designed for those gas 
turbine engine propulsion systems controlled by 9A001; or
    b. Whose design or production origins are either countries listed in 
Country Group D:1 or unknown to the manufacturer;




9A004   ``Spacecraft'', (not including their payloads) and specially designed components therefor that are not subject to the authority of the Department of 
          State. (See notes.)

License Requirements

Reason for Control: NS, AT, SI.

                                                                        
                Control(s)                         Country chart        
                                                                        
NS applies to entire entry...............  NS Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        


[[Page 619]]

    SI applies to commercial communications satellites controlled by 
9A004.a. See Sec. 742.14 of the EAR for additional information.

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled
Unit: Equipment in number; systems, components, parts and accessories in 
$ value.
Related Controls: (1) The corresponding EU list number controls space 
launch vehicles (not including their payloads) and other ``spacecraft'' 
(not identified in this CCL entry). These items are subject to the 
export licensing authority of the U.S. Department of State, Office of 
Defense Trade Controls (See 22 CFR part 121, Category XV). For the 
control status of products contained in ``spacecraft'' payloads, see the 
appropriate categories of the U.S. Munitions List (USML). (2) For the 
control status of items contained in ``spacecraft'' payloads subject to 
the EAR, see the appropriate entries on the CCL.
Related Definition: Transferring registration or operational control to 
any foreign person of any commercial communications satellite controlled 
by this entry must be authorized on a license issued by the Bureau of 
Export Administration. This requirement applies whether the commercial 
communications satellite is physically located in the United States or 
abroad.
Items: a. Commercial communication satellites;

    Technical Note: Commercial communications satellites are subject to 
Commerce licensing jurisdiction even if they include the individual 
munitions list systems, components, or parts identified in Category 
XV(f) of the USML. In all other cases, these systems, components, or 
parts remain on the USML, except that non-embedded, solid propellant 
orbit transfer engines (``kick motors'') are subject to Commerce 
licensing jurisdiction (and not controlled under the USML) when they are 
to be utilized for the specific commercial communications satellite 
launch, provided the solid propellant ``kick motor'' being utilized is 
not specifically designed or modified for military use or capable of 
being restarted after achievement of mission orbit (such orbit transfer 
engines are always controlled under Category IV of the USML). Technical 
data (as defined in Sec. 120.21 of the International Traffic in Arms 
Regulations (ITAR)) and defense services (as defined in Sec. 120.8 of 
the ITAR) related to the systems, components, or parts referred to in 
Category XV(f) of the USML are always controlled under the USML, even 
when the satellite itself is licensed by the Department of Commerce.

    Note: Military communications satellites or multi-mission 
satellites, including commercial communications satellites having 
additional non-communication mission(s) or payload(s) are under the 
jurisdiction of the Department of State.

    b. [Reserved]
    c. Other ``spacecraft'' not subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls under 22 CFR part 121, Category XV.

    Notes: 1. ECCN 9A004.c includes the international space station 
being developed, launched and operated under the supervision of the U.S. 
National Aeronautics and Space Administration. Exporters requesting a 
license from the Department of Commerce for spacecraft other than the 
international space station or a commercial communications satellite 
specified in 9A004 must provide a statement from the Department of 
State, Office of Defense Trade Controls, verifying that the item 
intended for export is under the licensing jurisdiction of the 
Department of Commerce.
    2. All other spacecraft, including all other satellites not 
controlled under 9A004 and components, parts, accessories, attachments, 
associated equipment, and ground support equipment therefor are subject 
to the export licensing authority of the Department of State.
    3. Items on Category XV(f) of the USML that are included in a 
commercial communications satellite to be exported under a Commerce 
license must be specifically listed on the Commerce license application. 
Such items when not included in a specific commercial communications 
satellite are under the jurisdiction of the Department of State.
    4. Technical data provided to the launch provider (form, fit, 
function, mass, electrical, mechanical, dynamic/environmental, 
telemetry, safety, facility, launch pad access, and launch parameters) 
for commercial communications satellites that describe the interfaces 
for mating of the satellite to the launch vehicle and parameters for 
launch (e.g. orbit, timing) of the satellite, are under Commerce 
jurisdiction. Other technical data and all defense services and 
technical assistance for satellite and/or launch vehicles, including 
compatibility, integration, or processing data are controlled and 
subject to licensing by the Department of State, in accordance with 22 
CFR parts 120 through 130. Approval for such technical assistance will 
require a Technical Assistance Agreement (TAA) and may require U.S. 
Government oversight.
    5. Once a satellite is launched, items remaining unlaunched are 
required to be returned immediately to the United States. If the 
satellite launch is canceled or unduly delayed, the satellite and all 
support equipment must be returned immediately to the United States.
    6. Detailed design, development, production, or manufacturing data 
for all spacecraft, including satellites, regardless of which agency has 
jurisdiction over the export, and all systems components, parts, 
accessories, attachments, and associated equipment (including ground 
support equipment) specifically designed or modified for articles under 
Category XV on the United States Munitions List (including software 
source code and operating algorithms) are subject to licensing by the 
Department of State. This does not include that level of technical data 
(including marketing data) necessary and reasonable for a purchaser to 
have assurance that a U.S.-built item intended to operate in space has 
been designed, manufactured and tested in conformance with specified 
contract requirements (e.g., operational performance, reliability, 
lifetime, product quality, or delivery expectations) as well as data 
necessary for normal in-orbit satellite operations, to evaluate in-orbit 
anomalies, and to operate and maintain associated ground station 
equipment (except encryption hardware).



9A018  Equipment on the International Munitions List.

License Requirements

Reason for Control: NS, RS, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to entire entry...............  NS Column 1                  
RS applies to 9A018.a and b..............  RS Column 2                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $1500
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value

[[Page 620]]

Related Controls: (a) Parachute systems designed for use in dropping 
military equipment, braking military aircraft, slowing spacecraft 
descent, or retarding weapons delivery; AND (b)Instrument flight 
trainers for combat simulation are subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls. (See 22 CFR part 121, Category VIII.)
Related Definition: This entry controls parachute systems designed for 
use in dropping personnel only.
Items: a. Military trainer aircraft bearing ``T'' designations:
    a.1. Using reciprocating engines; or
    a.2. Turbo prop engines with less than 600 horse power (h.p.);
    a.3. T-37 model jet trainer aircraft; and
    a.4. Specially designed component parts.
    b. Vehicles specially designed or modified for military purposes. 
(See part 770 of the EAR, Interpretation 8)
    c. Pressure refuelers, pressure refueling equipment, and equipment 
specially designed to facilitate operations in confined areas; and 
ground equipment, n.e.s, developed specially for military aircraft and 
helicopters, and specially designed parts and accessories, n.e.s.;
    d. Pressurized breathing equipment specially designed for use in 
military aircraft and helicopters;
    e. Military parachutes and complete canopies, harnesses, and 
platforms and electronic release mechanisms therefor, except such types 
as are in normal sporting use;
    f. Military instrument flight trainers, except for combat 
simulation; and components, parts, attachments and accessories specially 
designed for such equipment.




9A101  Lightweight turbojet and turbofan engines (including turbocompound engines) usable in ``missiles'', other than those specified in 9A001, having both the 
          following characteristics.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
MT applies to entire entry...............  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in Sec. value
Related Controls: (1) Items controlled in 9A101.b in the corresponding 
EU List number are not controlled in this CCL entry. Those items are 
subject to the export licensing jurisdiction of the U.S. Department of 
State, Office of Defense Trade Controls (See 22 CFR part 121, Category 
IV, paragraph (h) and Category VIII). (2) Engines designed or modified 
for missiles (except engines for non-military unmanned air vehicles 
[UAVs] or remotely piloted vehicles [RPVs]), regardless of thrust or 
specific fuel consumption, are subject to the export licensing authority 
of the U.S. Department of State, Office of Defense Trade Controls. (See 
22 CFR part 121, Category VIII.)
Related Definitions: N/A
Items: a. Maximum thrust value greater than 1000 N (achieved un-
installed) excluding civil certified engines with a maximum thrust value 
greater than 8,890 N (achieved un-installed); and
    b. [Reserved]
    c. Specific fuel consumption of 0.13kg/N/hr or less (at sea level 
static and standard conditions).




9A106  Systems or components, other than those controlled by 9A006, usable in ``missiles,'' as follows, specially designed for liquid rocket propulsion systems.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $1000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment and components in number; parts and accessories in $ 
value
Related Controls: Items controlled in 9A106.a, .b, and .c in the 
corresponding EU List number are not controlled in this CCL entry. Those 
items are subject to the export licensing jurisdiction of the U.S. 
Department of State, Office of Defense Trade Controls (See 22 CFR part 
121, Category IV, paragraphs (f) and (h).)
Related Definitions: Only the following servo valves and pumps are 
controlled by this entry: (1) Servo valves designed for flow rates of 24 
liters per minute or greater, at an absolute pressure of 7 MPa (1,000 
psi) or greater, have an actuator response time of less than 100 ms; (2) 
Pumps, for liquid propellants, with shaft speeds equal to or greater 
than 8,000 rpm or with discharge pressures equal to or greater than 7 
MPa (1,000 psi).
Items: a-c. [Reserved]
    d. Liquid or slurry propellant (including oxidizers) control systems 
designed or modified to operate in vibration environments of

[[Page 621]]

more than 10 g RMS between 20 Hz and 2,000 Hz, and specially designed 
components therefor.




9A110  Composite structures, laminates, and manufactures thereof, and resin impregnated fiber prepregs and metal coated fiber preforms, therefor, made either 
          with organic matrix or metal matrix utilizing fibrous or 
          filamentary reinforcements having a specific tensile strength 
          greater than 7.62 x 10\4\ m (3 x 10\6\ inches) and a specific 
          modulus greater than 3.18 x 10\6\ m (1.25 x 10\8\ inches).

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $1500
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: The corresponding EU List number includes references 
to items that are not contained on the CCL (e.g., 9A005, 9A007, 9A010, 
9A104, 9A105, 9A106.a, .b, and .c, 9A107, 9A108, 9A116 to 9A119). These 
items are not cross-referenced in the CCL since they are subject to the 
export licensing authority of the U.S. Department of State, Office of 
Defense Trade Controls (see 22 CFR part 121) and do not appear on the 
CCL.
Related Definition: The only resin impregnated fiber prepregs specified 
in entry 9A110 are those using resins with a glass transition 
temperature (Tg), after cure, exceeding 418 K (145  deg.C) as 
determined by ASTM D4065 or national equivalents.
Items: The list of items controlled is contained in the ECCN heading.




9A115  Launch support equipment designed or modified for systems controlled by 9A004 or 9A104.

License Requirements

Reason for Control: MT, UN, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
UN applies to entire entry................  Rwanda                      
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: (1) Items controlled in 9A115.a in the corresponding 
EU List number are not controlled in this CCL entry. Those items are 
subject to the export licensing jurisdiction of the U.S. Department of 
State, Office of Defense Trade Controls (see 22 CFR part 121, Category 
VIII, paragraph (e)). (2) This entry contains references to EU list 
numbers that are not contained on the CCL.
Related Definitions: N/A
Items: a. [Reserved]
    b. Vehicles for transport, handling, control, activation or 
launching.




9A190  Non-military unmanned air vehicle systems (UAVs) and remotely piloted vehicles (RPVs) that are capable of a maximum range of at least 300 kilometers 
          (km), regardless of payload.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
MT applies to entire entry................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




9A980  Nonmilitary mobile crime science laboratories; and parts and accessories, n.e.s.

License Requirements

Reason for Control: CC

                                                                        
                Control(s)                          Country Chart       
                                                                        
CC applies to entire entry................  CC Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

[[Page 622]]




9A990  Diesel engines, n.e.s., for trucks, tractors, and automotive applications of continuous brake horsepower of 400 BHP (298 kW) or greater (performance 
          based on SAE J1349 standard conditions of 100 kPa and 
          25 deg.); pressurized aircraft breathing equipment, n.e.s.; 
          and specially designed parts therefor, n.e.s.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 2                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9A991  ``Aircraft'' and certain gas turbine engines, n.e.s.

License Requirements

Reason for Control: AT, UN

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
UN applies to 9A991.a.....................  Rwanda                      
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: a. Military aircraft, demilitarized (not specifically equipped or 
modified for military operation), as follows:
    a.1. Cargo, ``C-45 through C-118'' inclusive, and ``C-121,''
    a.2. Trainers, bearing a ``T'' designation and using piston engines,
    a.3. Utility, bearing a ``U'' designation and using piston engines,
    a.4. Liaison, bearing an ``L'' designation, and
    a.5. Observation, bearing an ``O'' designation and using piston 
engines;
    b. Other nonmilitary aircraft; and

    Note: Specify make and model of aircraft and type of avionic 
equipment on aircraft.

    c. Aero gas turbine engines not controlled by 9A001 or 9A101, and 
specially designed parts therefor.

    Note: 9A991.c does not control aero gas turbine engines that are 
destined for use in civil ``aircraft'' and that have been in use in bona 
fide civil ``aircraft'' for more than eight years. (See 9A994.)



9A992  Off highway wheel tractors of carriage capacity 9mt (20,000 lbs) or more; and parts and accessories, n.e.s.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in Sec. value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9A993  On-Highway tractors, with single or tandem rear axles rated for 9mt per axel (20,000 lbs.) or greater and specially designed parts.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definition: This entry controls highway tractors only. It does 
not control solid chassis vehicles such as dump trucks, construction 
equipment, or panel/van type trucks.
Items: The list of items controlled is contained in the ECCN heading.



9A994  Aircraft parts and components, n.e.s.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: N/A
GBS: N/A

[[Page 623]]

CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

              B. Test, Inspection and Production Equipment



9B001  Specially designed equipment, tooling or fixtures, as follows, for manufacturing or measuring gas turbine blades, vanes or tip shroud castings.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to entire entry...............  NS Column 2                  
MT applies to entire entry...............  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $5000
GBS: Yes, for 9B001.a, .b, .f and .h
CIV: Yes, for 9B001.a, .b, .f and .h

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Automated equipment using non-mechanical methods for measuring 
airfoil wall thickness;
    b. Tooling, fixtures or measuring equipment for the ``laser'', water 
jet or ECM/EDM hole drilling processes controlled by 9E003.c;
    c. Directional solidification or single crystal casting equipment;
    d. Ceramic cores or shells;
    e. Ceramic core manufacturing equipment or tools;
    f. Ceramic core leaching equipment;
    g. Ceramic shell wax pattern preparation equipment;
    h. Ceramic shell burn out or firing equipment.




9B002  On-line (real time) control systems, instrumentation (including sensors) or automated data acquisition and processing equipment, specially designed for 
          the development of gas turbine engines, assemblies or 
          components incorporating technologies controlled by 9E003.a.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to entire entry...............  NS Column 2                  
MT applies to entire entry...............  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9B003  Equipment specially designed for the production or test of gas turbine brush seals designed to operate at tip speeds exceeding 335 m/s, and specially 
          designed parts or accessories.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to entire entry...............  NS Column 2                  
MT applies to entire entry...............  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9B004  Tools, dies or fixtures for the solid state joining of gas turbine ``superalloy'' or titanium components.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to entire entry...............  NS Column 2                  
MT applies to entire entry...............  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

[[Page 624]]



9B005  On-line (real-time) control systems, instrumentation (including sensors) or automated data acquisition and processing equipment, specially designed for 
          use with wind tunnels or devices.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to entire entry...............  NS Column 2                  
MT applies to entire entry...............  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: Yes

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Wind tunnels designed for speeds of Mach 1.2 or more, except 
those specially designed for educational purposes and having a test 
section size (measured laterally) of less than 250 mm;

    Technical Note: Test section size in 9B005.a means: the diameter of 
the circle, or the side of the square, or the longest side of the 
rectangle at the largest test section location.

    b. Devices for simulating flow-environments at speeds exceeding Mach 
5, including hot-shot tunnels, plasma arc tunnels, shock tubes, shock 
tunnels, gas tunnels and light gas guns;
    c. Wind tunnels or devices, other than two-dimensional sections, 
capable of simulating Reynolds number flows exceeding 25 x 106.




9B006  Specially designed acoustic vibration test equipment capable of producing sound pressure levels of 160 dB or more, (reference to 20 micropascals) with a 
          rated output of 4 kW or more at a test cell temperature 
          exceeding 1273 K (1000  deg.C), and specially designed 
          transducers, strain gauges, accelerometers, thermocouples or 
          quartz heaters therefor.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                         Country chart        
                                                                        
NS applies to entire entry...............  NS Column 2                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions:
LVS: $3000
GBS: Yes
CIV: Yes

List of Items Controlled

    Unit: Number
    Related Controls: N/A
    Related Definitions: N/A
    Items: The list of items controlled is contained in the ECCN 
heading.



9B007  Equipment specially designed for inspecting the integrity of rocket motors using non-destructive test (NDT) techniques other than planar X-ray or basic 
          physical or chemical analysis.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                         Country chart        
                                                                        
NS applies to entire entry...............  NS Column 2                  
MT applies to entire entry...............  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9B008  Transducers specially designed for the direct measurement of the wall skin friction of the test flow with a stagnation temperature exceeding 833 K (560 
          deg.C).

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                         Country chart        
                                                                        
NS applies to entire entry...............  NS Column 2                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




9B009  Tooling specially designed for producing turbine engine powder metallurgy rotor components capable of operating at stress levels of 60% of ultimate 
          tensile strength (UTS) or more and metal temperatures of 873 K 
          (600  deg.C) or more.

License Requirements

Reason for Control: NS, AT

                                                                        
                Control(s)                         Country chart        
                                                                        
NS applies to entire entry...............  NS Column 2                  

[[Page 625]]

                                                                        
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




9B105  Wind tunnels for speeds of Mach 0.9 or more usable for ``missiles'' and their subsystems.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
MT applies to entire entry...............  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9B106  Environmental chambers and anechoic chambers.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
MT applies to entire entry...............  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $3000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Environmental chambers capable of simulating the following 
flight conditions:
    a.1. Vibration environments of 10 g rms or greater between 20 Hz and 
2,000 Hz and imparting forces of 50 kN or greater; and
    a.2. Altitudes of 15,000 m or greater; or
    a.3. Temperature of at least 223 K (-50  deg.C) to 398 K (+ 125 
deg.C)
    b. Anechoic chambers capable of simulating the following flight 
conditions:
    b.1. Acoustic environments at an overall sound pressure level of 140 
dB or greater (referenced to 20 microPa) or with a rated power output of 
4 kW or greater; and
    b.2. Altitudes of 15,000 m or greater; or
    b.3. Temperature of at least 223 K (-50  deg.C) to 398 K (+125 
deg.C).




9B115  Specially designed ``production equipment'' for the systems, sub-systems, and components controlled by 9A004 to 9A009, 9A011, 9A101, 9A104 to 9A109, 
          9A111, 9A116 to 9A119.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
MT applies to entire entry...............  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: This entry contains references to EU list numbers that 
are not contained on the CCL. Though the items controlled by 9A004 to 
9A009, 9A011, 9A101, 9A104 to 9A109, 9A111, 9A116 to 9A119 are not 
subject to the export licensing authority of BXA, the ``production 
equipment'' related to these items are controlled in this entry on the 
CCL.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




9B116  Specially designed ``production facilities'' for the systems, sub-systems, and components controlled by 9A004 to 9A009, 9A011, 9A101, 9A104 to 9A109, 
          9A111, 9A116 to 9A119.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
MT applies to entire entry...............  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: This entry contains references to EU list numbers that 
are not contained on the CCL. Though the items controlled by 9A004 to 
9A009, 9A011, 9A101, 9A104 to 9A109, 9A111, 9A116 to 9A119 are

[[Page 626]]

not subject to the export licensing authority of BXA, the ``production 
facilities'' related to these items are controlled in this entry on the 
CCL.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




9B117  Test benches and test stands for solid or liquid propellant rockets or rocket motors, having either of the following characteristics.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
MT applies to entire entry...............  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. The capacity to handle more than 90 kN (20,000 lbs.) of 
thrust; or
    b. Capable of simultaneously measuring the three axial thrust 
components.




9B994  Vibration test equipment and specially designed parts and components, n.e.s.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                        C. Materials  [Reserved]

                             D. ``Software''




9D001  ``Software'' ``required'' for the ``development'' of equipment or ``technology'' controlled by 9A (except 9A018, 9A990 to 9A994), 9B (except 9B994) or 
          9E003.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to ``software'' for items                                    
 controlled by 9A001 to 9A003, 9B001 to                                 
 9B009, 9E003............................  NS Column 1                  
MT applies to ``software'' for equipment                                
 controlled by 9A001, 9A101, 9A106,                                     
 9A110, 9A115, 9A190, 9B001 to 9B005,                                   
 9B007, 9B105, 9B106, 9B115 to 9B117 for                                
 for MT reasons..........................  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: (1) The corresponding EU List number controls 
``software'' relating to entries that do not appear on the CCL (e.g., 
9A004 to 9A011, 9A104, 9A105, 9A107 to 9A109, 9A111, 9A116 to 9A119). 
The ``software'' related to these entries is subject to the export 
licensing authority of the U.S. Department of State, Office of Defense 
Trade Controls. (See 22 CFR part 121.) (2) ``Software'' ``required'' for 
the ``development'' of equipment controlled by 9A004 is subject to the 
export licensing authority of the U.S. Department of State, Office of 
Defense Trade Controls. (See 22 CFR part 121, Category XV.)
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




9D002  ``Software'' ``required'' for the ``production'' of equipment controlled by 9A (except 9A018, 9A990 to 9A994) or 9B (except 9B994).

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to ``software'' for equipment                                
 controlled by 9A001 to 9A003 or 9B001 to                               
 9B009....................................  NS Column 1                 
MT applies to ``software'' for equipment                                
 controlled by 9A001, 9A101, 9A106, 9A110,                              
 9A115, 9A190, 9B001 to 9B005, 9B007,                                   
 9B105, 9B106, 9B115 to 9B117 for for MT                                
 reasons..................................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

                        List of Items Controlled

Unit: $ value
Related Controls: (1) The corresponding EU List number controls 
``software'' relating to entries that do not appear on the CCL (e.g., 
9A005 to 9A011, 9A104, 9A105, 9A107 to 9A109, 9A111, 9A116 to 9A119). 
The ``software'' related to these entries is subject to the export 
licensing authority of the U.S.

[[Page 627]]

Department of State, Office of Defense Trade Controls. (See 22 CFR part 
121.) (2) ``Software'' ``required'' for the ``production'' of equipment 
controlled by 9A004 is subject to the export licensing authority of the 
U.S. Department of State, Office of Defense Trade Controls. (See 22 CFR 
part 121, Category XV.)
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.




9D003  ``Software'' ``required'' for the ``use'' of full authority digital electronic engine controls (FADEC) for propulsion systems controlled by 9A (except 
          9A018, 9A990 to 9A994) or 9B (except 9B994).

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to ``software'' for ``use'' of                               
 FADEC for equipment controlled by 9A001                                
 to 9A003................................  NS Column 1                  
MT applies to ``software'' required for                                 
 the ``use'' of FADEC for gas turbine                                   
 aero engines controlled by 9A101, 9A106,                               
 9A110, or 9A115.........................  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

Unit: $ value
Related Controls: (1) The corresponding EU List number controls 
``software'' relating to entries that do not appear on the CCL (e.g., 
9A005 to 9A011, 9A105, 9A107 to 9A109, 9A111, 9A116 to 9A119). The 
``software'' related to these entries is subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls (see 22 CFR part 121). (2) ``Software'' ``required'' for 
``use'' of FADEC for equipment controlled by 9A004 is subject to the 
export licensing authority of the U.S. Department of State, Office of 
Defense Trade Controls. (See 22 CFR part 121, Category XV.)
Related Definitions: N/A
Items: a. ``Software'' in digital electronic controls for propulsion 
systems, aerospace test facilities or air breathing aero-engine test 
facilities;
    b. Fault-tolerant ``software'' used in FADEC systems for propulsion 
systems and associated test facilities.



9D004  Other ``software''.

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to entire entry...............  NS Column 1                  
MT applies to entire entry...............  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. ``Software'' specially designed for vibration test equipment 
using real time digital controls with individual exciters (thrusters) 
with a maximum thrust exceeding 50 kN;
    b. 2D or 3D viscous ``software'' validated with wind tunnel or 
flight test data ``required'' for detailed engine flow modelling;
    c. ``Software'' ``required'' for the ``development'' or 
``production'' of real time full authority electronic test facilities 
for engines or components controlled by 9A;
    d. ``Software'' for testing aero gas turbine engines, assemblies or 
components, specially designed to collect, reduce and analyze data in 
real time, and capable of feedback control, including the dynamic 
adjustment of test articles or test conditions, as the test is in 
progress;
    e. ``Software'' specially designed to control directional 
solidification or single crystal casting;
    f. ``Software'' in ``source code,'' ``object code'' or machine code 
``required'' for the ``use'' of active compensating systems for rotor 
blade tip clearance control.

    Note: 9D004.f does not control ``software'' embedded in uncontrolled 
equipment or ``required'' for maintenance activities associated with the 
calibration or repair or updates to the active compensating clearance 
control system.




9D101  ``Software'' specially designed for the ``use'' of items specified in 9A101, 9A106, 9A110, 9A115, 9A190, 9B105, 9B106, 9B116 or 9B117.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
MT applies to entire entry...............  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9D018  ``Software'' for the ``use'' of equipment controlled by 9A018.

License Requirements

Reason for Control: NS, RS, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to entire entry...............  NS Column 1                  
RS applies to 9A018.a and .b.............  RS Column 2                  
AT applies to entire entry...............  AT Column 1                  
                                                                        


[[Page 628]]

License Exceptions

CIV: N/A
TSR: Yes for Australia, Japan, New Zealand, and NATO only

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9D990  ``Software'', n.e.s., for the ``development'' or ``production'' of diesel engines and pressurized aircraft breathing equipment controlled by 9A990.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
AT applies to entire entry...............  AT Column 2                  
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9D991  ``Software'', n.e.s., for the ``development'' or ``production'' of aircraft and aero gas turbine engines controlled by 9A991 or aircraft parts and 
          components controlled by 9A994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9D993  ``Software'' for the ``production'' or ``development'' of off-highway wheel tractors controlled by 9A992 or on-highway tractors controlled by 9A993.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9D994  ``Software'' for the ``development'', ``production'', or ``use'' of equipment controlled by 9B994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                              E. Technology



9E001  ``Technology'' according to the General Technology Note for the ``development'' of equipment or ``software'' controlled by 9A001.c, 9B (except 9B994), or 
          9D (except 9D018, 9D990 to 9D994).

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to ``technology'' for items                                  
 controlled by 9A001.c, 9B001 to 9B009,                                 
 9D001 to 9D004..........................  NS Column 1                  
MT applies to ``technology'' for items                                  
 controlled by 9B001 to 9B005, 9B007,                                   
 9B105, 9B106, 9B115 to 9B117, 9D001 to                                 
 9D004 for MT reasons....................  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: (1) The corresponding EU List number controls 
``software'' relating to entries that do not appear on the CCL (e.g., 
9D103). The ``software'' related to these entries is subject to the 
export licensing authority of the U.S. Department of State, Office of 
Defense Trade Controls

[[Page 629]]

(see 22 CFR part 121). (2) ``Technology'' required for the 
``development'' of equipment controlled by 9A004 is subject to the 
export licensing authority of the U.S. Department of State, Office of 
Defense Trade Controls. (See 22 CFR part 121, Category XV.)
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9E002  ``Technology'' according to the General Technology Note for the ``production'' of equipment controlled by 9A001.c or 9B (except 9B994).

License Requirements

Reason for Control: NS, MT, AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
NS applies to entire entry................  NS Column 1                 
MT applies to ``technology'' for equipment                              
 controlled by 9B001 to 9B005, 9B007,                                   
 9B105, 9B106, 9B115 to 9B117 for MT                                    
 reasons..................................  MT Column 1                 
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: See 1E002.f for controls on ``technology'' for the 
repair of controlled structures, laminates or materials.
Related Definition: Development or production ``technology'' controlled 
by 9E for gas turbine engines remains controlled when used as ``use'' 
``technology'' for repair, rebuild and overhaul. Excluded from control 
are: technology, drawings or documentation for maintenance activities 
directly associated with calibration, removal or replacement of damaged 
or unserviceable line replaceable units, including replacement of whole 
engines or engine modules.
Items: The list of items controlled is contained in the ECCN heading.



9E003  Other ``technology''.

License Requirements

Reason for Control: NS, AT, SI.

                                                                        
                Control(s)                         Country chart        
                                                                        
NS applies to entire entry...............  NS Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

    SI applies to 9E003. a.1. through a.12 and f. See Sec. 742.14 of the 
EAR for additional information.

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A.
    Related Controls: (1) The corresponding EU List number does not 
control technology controlled under 9E003.f. (2) Hot section technology 
specifically designed, modified, or equipped for military uses or 
purposes, or developed principally with U.S. Department of Defense 
funding, is subject to the jurisdiction of the Department of State. (3) 
Technology is subject to the EAR when actually applied to a commercial 
aircraft engine program. Exporters may seek to establish commercial 
application either on a case-by-case basis through submission of 
documentation demonstrating application to a commercial program in 
requesting an export license from Commerce in respect to a specific 
export or, in the case of use for broad categories of aircraft, engines, 
or components, a commodity jurisdiction determination from State.
Items: a. ``Technology'' ``required'' for the ``development'', 
``production'' or overhaul of the following commercial aircraft engines, 
components or systems:
    a.1. Gas turbine blades, vanes or tip shrouds made from 
directionally solidified (DS) or single crystal (CS) alloys having (in 
the 001 Miller Index Direction) a stress-rupture life exceeding 400 
hours at 1,273 K (1,000  deg.C) at a stress of 200 MPa, based on the 
average property values;
    a.2. Multiple domed combustors operating at average burner outlet 
temperatures exceeding 1,643 K (1370  deg.C), or combustors 
incorporating thermally decoupled combustion liners, non-metallic liners 
or non-metallic shells;
    a.3. Components manufactured from organic ``composite'' materials 
designed to operate above 588 K (315  deg.C), or from metal ``matrix'' 
``composite'', ceramic ``matrix'', intermetallic or intermetallic 
reinforced materials controlled by 1A002 or 1C007;
    a.4. Uncooled turbine blades, vanes, tip-shrouds or other components 
designed to operate at gas path temperatures of 1,323 K (1,050  deg.C) 
or more;
    a.5. Cooled turbine blades, vanes or tip-shrouds, other than those 
described in 9E003.a.1, exposed to gas path temperatures of 1,643 K 
(1,370  deg.C) or more;
    a.6. Airfoil-to-disk blade combinations using solid state joining;
    a.7. Gas turbine engine components using ``diffusion bonding'' 
``technology'' controlled by 2E003.b;
    a.8. Damage tolerant gas turbine engine rotating components using 
powder metallurgy materials controlled by 1C002.b;
    a.9. Full authority digital electronic engine controls (FADEC) for 
gas turbine and combined cycle engines and their related diagnostic 
components, sensors and specially designed components;
    a.10. Adjustable flow path geometry and associated control systems 
for:
    a.10.a. Gas generator turbines;
    a.10.b. Fan or power turbines;

[[Page 630]]

    a.10.c. Propelling nozzles;

    Note 1: Adjustable flow path geometry and associated control systems 
do not include inlet guide vanes, variable pitch fans, variable stators 
or bleed valves for compressors.
    Note 2: 9E003.a.10 does not control ``development'' or 
``production'' ``technology'' for adjustable flow path geometry for 
reverse thrust.

    a.11. Rotor blade tip clearance control systems employing active 
compensating casing ``technology'' limited to a design and development 
data base;
    a.12. Gas bearings for gas turbine engine rotor assemblies;
    a.13. Wide chord hollow fan blades without part-span support;

    Note: Also see 9E003.f.

    b. ``Technology'' ``required'' for the ``development'' or 
``production'' of:
    b.1. Wind tunnel aero-models equipped with non-intrusive sensors 
capable of transmitting data from the sensors to the data acquisition 
system;
    b.2. ``Composite'' propeller blades or propfans capable of absorbing 
more than 2,000 kW at flight speeds exceeding Mach 0.55;
    c. ``Technology'' ``required'' for the ``development'' or 
``production'' of gas turbine engine components using ``laser'', water 
jet or ECM/EDM hole drilling processes to produce holes with:
    c.1.a. Depths more than four times their diameter;
    c.1.b. Diameters less than 0.76 mm; and
    c.1.c. Incidence angles equal to or less than 25 deg.; or
    c.2.a. Depths more than five times their diameter;
    c.2.b. Diameters less than 0.4 mm; and
    c.2.c. Incidence angles of more than 25 deg.;

    Technical Note: For the purposes of 9E003.c, incidence angle is 
measured from a plane tangential to the airfoil surface at the point 
where the hole axis enters the airfoil surface.

    d. ``Technology'' ``required'' for the ``development'' or 
``production'' of helicopter power transfer systems or tilt rotor or 
tilt wing ``aircraft'' power transfer systems:
    d.1. Capable of loss-of-lubrication operation for 30 minutes or 
more; or
    d.2. Having an input power-to-weight ratio equal to or more than 
8.87 kW/kg.
    e.1 ``Technology'' for the ``development'' or ``production'' of 
reciprocating diesel engine ground vehicle propulsion systems having all 
of the following:
    e.1.a. A box volume of 1.2 m \3\ or less;
    e.1.b. An overall power output of more than 750 kW based on 80/1269/
EEC, ISO 2534 or national equivalents; and
    e.1.c. A power density of more than 700 kW/m \3\ of box volume;

    Technical Note: Box volume: the product of three perpendicular 
dimensions measured in the following way:
    Length: The length of the crankshaft from front flange to flywheel 
face;
    Width: The widest of the following:
    a. The outside dimension from valve cover to valve cover;
    b. The dimensions of the outside edges of the cylinder heads; or
    c. The diameter of the flywheel housing;
    Height: The largest of the following:
    a. The dimension of the crankshaft center-line to the top plane of 
the valve cover (or cylinder head) plus twice the stroke; or
    b. The diameter of the flywheel housing.

    e.2. ``Technology'' ``required'' for the ``production'' of specially 
designed components, as follows, for ``high output diesel engines'':
    e.2.a. ``Technology'' ``required'' for the ``production'' of engine 
systems having all of the following components employing ceramics 
materials controlled by 1C007:
    e.2.a.1. Cylinder liners;
    e.2.a.2. Pistons;
    e.2.a.3. Cylinder heads; and
    e.2.a.4. One or more other components (including exhaust ports, 
turbocharger, valve guides, valve assemblies or insulated fuel 
injectors);
    e.2.b. ``Technology'' ``required'' for the ``production'' of 
turbocharger systems, with single-stage compressors having all of the 
following:
    e.2.b.1. Operating at pressure ratios of 4:1 or higher;
    e.2.b.2. A mass flow in the range from 30 to 130 kg per minute; and
    e.2.b.3. Variable flow area capability within the compressor or 
turbine sections;
    e.2.c. ``Technology'' ``required'' for the ``production'' of fuel 
injection systems with a specially designed multifuel (e.g., diesel or 
jet fuel) capability covering a viscosity range from diesel fuel (2.5 
cSt at 310.8 K (37.8 deg. C)) down to gasoline fuel (0.5 cSt at 310.8 K 
(37.8 deg. C)), having both of the following:
    e.2.c.1. Injection amount in excess of 230 mm \3\ per injection per 
cylinder;
    e.2.c.2. Specially designed electronic control features for 
switching governor characteristics automatically depending on fuel 
property to provide the same torque characteristics by using the 
appropriate sensors;
    e.3. ``Technology'' ``required'' for the ``development'' or 
``production'' of ``high output diesel engines'' for solid, gas phase or 
liquid film (or combinations thereof) cylinder wall lubrication, 
permitting operation to temperatures exceeding 723 K (450 deg. C), 
measured on the cylinder wall at the top limit of travel of the top ring 
of the piston.
    f. Technology not otherwise controlled in 9E003.a.1. through a.12 
and currently used in the ``development'', ``production'' or overhaul of 
hot section parts and components of civil derivatives of military 
engines controlled on the U.S. Munitions List.



9E018  ``Technology'' for the ``development'', ``production'', or ``use'' of equipment controlled by 9A018.

License Requirements

Reason for Control: NS, RS, AT

[[Page 631]]



                                                                        
                Control(s)                         Country Chart        
                                                                        
NS applies to entire entry...............  NS Column 1                  
RS applies to 9A018.a and .b.............  RS Column 2                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

CIV: N/A
TSR: Yes for Australia, Japan, New Zealand, and NATO only

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9E101  ``Technology'' according to the General Technology Note for the ``development'' or ``production'' of equipment controlled by 9A101, 9A106, 9A110, or 
          9A115.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
MT applies to entire entry...............  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: The corresponding EU List number controls ``software'' 
relating to entries that do not appear on the CCL (e.g., 9A104, 9A105, 
9A107 to 9A109, 9A111, 9A116 to 9A119). The ``software'' related to 
these entries is subject to the export licensing authority of the U.S. 
Department of State, Office of Defense Trade Controls (see 22 CFR part 
121).
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9E102  ``Technology'' according to the General Technology Note for the ``use'' of goods specified in 9A101, 9A106, 9A110, 9B105, 9B106, 9B115, 9B116, 9B117, or 
          9D101.

License Requirements

Reason for Control: MT, AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
MT applies to entire entry...............  MT Column 1                  
AT applies to entire entry...............  AT Column 1                  
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: The corresponding EU List number controls ``software'' 
relating to entries that do not appear on the CCL (e.g., 9A004 to 9A011, 
9A104, 9A105, 9A107 to 9A109, 9A111, 9A116 to 9A119, or 9D103). The 
``software'' related to these entries is subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls (see 22 CFR part 121).
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9E990  ``Technology'', n.e.s., for the ``development'', ``production'', or ``use'' of diesel engines and pressurized aircraft breathing equipment controlled by 
          9A990.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                         Country Chart        
                                                                        
AT applies to entire entry...............  AT Column 2                  
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9E991  ``Technology'', n.e.s., for the ``development'', ``production'', or ``use'' of aircraft and aero gas turbine engines controlled by 9A991 or aircraft 
          parts and components controlled by 9A994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9E993  ``Technology'' for the ``development'', ``production'', or ``use'' of off-highway wheel tractors controlled by 9A992 or on-highway tractors controlled by 
          9A993.

License Requirements

Reason for Control: AT

[[Page 632]]



                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.



9E994  ``Technology'' for ``development'', ``production'', or ``use'' of vibration test equipment controlled by 9B994.

License Requirements

Reason for Control: AT

                                                                        
                Control(s)                          Country Chart       
                                                                        
AT applies to entire entry................  AT Column 1                 
                                                                        

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

EAR99  Items subject to the EAR that are not elsewhere specified in this 
          CCL Category or in any other category in the CCL are 
          designated by the number EAR99.

                      Advisory Notes for Category 9

    Advisory Note 1: Licenses are likely to be approved, as 
administrative exceptions, for export and reexport to satisfactory end-
users in Country Group D:1 of marine gas turbine engines controlled by 
9A002, for installation in civil marine vessels for civil end-use, 
provided that their specific fuel consumption exceeds 0.23 kg/kW-hr. and 
their continuous ISO rating is less than 20,000 kW.

[61 FR 12937, Mar. 25, 1996]

    Editorial Note: For additional Federal Register citations to 
Supplement No. 1 to part 774, see the List of CFR Sections Affected in 
the Finding Aids section of this volume.

   Supplement No. 2 to Part 774--General Technology and Software Notes

    1. General Technology Note. The export of ``technology'' that is 
``required'' for the ``development'', ``production'', or ``use'' of 
items on the Commerce Control List is controlled according to the 
provisions in each Category.
    ``Technology'' ``required'' for the ``development'', ``production'', 
or ``use'' of a controlled product remains controlled even when 
applicable to a product controlled at a lower level.
    License Exception OTS is available for ``technology'' that is the 
minimum necessary for the installation, operation, maintenance 
(checking), and repair of those products that are eligible for License 
Exceptions or that are exported under a license.

    N.B.: This does not allow release under a License Exception of the 
repair ``technology'' controlled by 1E002.e, 1E002.f, 7E003, or 8E002.a.
    N.B.: The 'minimum necessary' excludes ``development'' or 
``production'' technology and permits ``use'' technology only to the 
extent ``required'' to ensure safe and efficient use of the product. 
Individual ECCNs may further restrict export of ``minimum necessary'' 
information.

    II. General Software Note. License Exception TSU (``mass market'' 
software) is available to all destinations, except Cuba, Iran, Iraq, 
Libya, North Korea, Sudan, and Syria, for release of software that is 
generally available to the public by being:
    a. Sold from stock at retail selling points, without restriction, by 
means of:
    1. Over the counter transactions;
    2. Mail order transactions; or
    3. Telephone call transactions; and
    b. Designed for installation by the user without further substantial 
support by the supplier.

    Note: License Exception TSU for mass market software does not apply 
to encryption software controlled for EI reasons under ECCN 5D002. 
Encryption software may become eligible after a one-time BXA review 
according to the provision of Sec. 742.15(b)(1) of the EAR.

[61 FR 12937, Mar. 25, 1996, as amended at 61 FR 65467, Dec. 13, 1996; 
61 FR 68587, Dec. 30, 1996]

                      Supplement No. 3 to Part 774

                             Cross-Reference

------------------------------------------------------------------------
                Old ECCN                             New ECCN           
------------------------------------------------------------------------
                         Sorted by ``OLD'' ECCN                         
                                  CAT 0                                 
------------------------------------------------------------------------
0A18...................................  0A018                          
0A80...................................  0A980                          
0A82...................................  0A982                          
0A82...................................  0A983                          
0A84...................................  0A984                          
0A84...................................  0A985                          
0A86...................................  0A986                          
0A88...................................  0A988                          
0A95...................................  Sec.  746.4(b)(2)(i)           
0A96...................................  EAR99                          
0A98...................................  Sec.  734.3(b)(2)              
0E18...................................  0E018                          
0E84...................................  0E984                          
0E96...................................  EAR99                          
1B16...................................  0B003                          
1C19.b.................................  0C006                          
1D01...................................  0D001                          

[[Page 633]]

                                                                        
1E19...................................  0E001                          
2A19.c.................................  0B001                          
2A50.b.................................  0B008                          
2D19...................................  0D001                          
2D50...................................  0D001                          
2E19...................................  0E001                          
2E50...................................  0E001                          
                                                                        
------------------------------------------------------------------------
                                 CAT 1                                  
                                                                        
------------------------------------------------------------------------
***....................................  1D103                          
***....................................  1E202                          
***....................................  1E203                          
1A01...................................  1A001                          
1A02...................................  1A002                          
1A03...................................  1A003                          
1A22.b.................................  1A102                          
1A27...................................  1C116                          
1A45...................................  1A226                          
1A46...................................  1C202                          
1A47...................................  1C216                          
1A48...................................  1A290                          
1A50...................................  1C226                          
1A84...................................  1A984                          
1A88...................................  1A988                          
1A96...................................  EAR99                          
1B01...................................  1B001                          
1B02...................................  1B002                          
1B03...................................  1B003                          
1B17...................................  1B225                          
1B18...................................  1B018                          
1B21...................................  1B101                          
1B28...................................  1B115                          
1B30.a.................................  1B116                          
1B41...................................  1B201                          
1B42...................................  1B226                          
1B52...................................  1B229                          
1B53...................................  1B228                          
1B54...................................  1B227                          
1B55...................................  1B232                          
1B58...................................  1B231                          
1B59...................................  1B230                          
1B96...................................  EAR99                          
1C01...................................  1C001                          
1C02...................................  1C002                          
1C03...................................  1C003                          
1C05...................................  1C005                          
1C06...................................  1C006                          
1C07...................................  1C007                          
1C08...................................  1C008                          
1C09...................................  1C009                          
1C10...................................  1C010                          
1C18...................................  1C018                          
1C19.a.................................  1C234                          
1C19.c.................................  1C233                          
1C19.d.................................  1C230                          
1C19.e.................................  1A225                          
1C19.f.................................  1C231                          
1C21...................................  1C101                          
1C22...................................  1C117                          
1C27...................................  1C107                          
1C31...................................  1C115                          
1C49...................................  1A225                          
1C50...................................  1C210                          
1C50.c.................................  1A202                          
1C51...................................  1C229                          
1C52...................................  1C227                          
1C53...................................  1C228                          
1C54...................................  1C236                          
1C55...................................  1C232                          
1C56...................................  1C238                          
1C57...................................  1C225                          
1C58...................................  1C237                          
1C60...................................  1C350                          
1C61.a (partial), .b.c (partial), .f...  1C351                          
1C61.a (partial), .c (partial).........  1C352                          
1C61.c.15,c.16, .d.....................  1C354                          
1C61.e.................................  1C353                          
1C80...................................  1C980                          
1C81...................................  1C981                          
1C82...................................  1C982                          
1C83...................................  1C983                          
1C84...................................  1C984                          
1C88...................................  1C988                          
1C91...................................  1C991                          
1C92...................................  1C992                          
1C93...................................  1C993                          
1C94...................................  1C994                          
1C95...................................  1C995                          
1C96...................................  EAR99                          
1CO4...................................  1C004                          
1D01...................................  1D018                          
1D01...................................  1D001                          
1D02...................................  1D002                          
1D23...................................  1D101                          
1D41...................................  1D201                          
1D60...................................  1D390                          
1D93...................................  1D993                          
1D94...................................  1D993                          
1D96...................................  EAR99                          
1E02...................................  1E002                          
1E23...................................  1E001                          
1E23...................................  1E101                          
1E24...................................  1E103                          
1E25...................................  1E104                          
1E40...................................  1E201                          
1E41...................................  1E201                          
1E60...................................  1E001                          
1E60...................................  1E350                          
1E60...................................  1E391                          
1E61...................................  1E001                          
1E61...................................  1E351                          
1E61...................................  1E391                          
1E94...................................  1E994                          
1E96...................................  EAR99                          
2A50.c.................................  1A227                          
                                                                        
----------------------------------------                                
                                 CAT 2                                  
                                                                        
----------------------------------------                                
***....................................  2A993                          
***....................................  2B207                          
1A44...................................  2A225                          
1B30.b.................................  2B104                          
1B50.a.................................  2B226                          
1B50.b.................................  2B227                          
1B51...................................  2B230                          
1B70.a through .d......................  2B350                          
1B70.e.................................  2B351                          
1B71...................................  2B352                          
1D50...................................  2D201                          
1E41...................................  2E201                          
1E70...................................  2E301                          
2A01...................................  2A001                          
2A02...................................  2A002                          
2A03...................................  2A003                          
2A04...................................  2A004                          
2A05...................................  2A005                          
2A06...................................  2A006                          
2A48...................................  2A226                          
2A49...................................  2A290                          
2A50.b.d.f.............................  2A291                          
2A50.e.................................  2B225                          
2A51...................................  2A292                          
2A52...................................  2B231                          
2A53...................................  2A293                          
2A94...................................  2A994                          

[[Page 634]]

                                                                        
2A96...................................  EAR96                          
2B01...................................  2B001                          
2B02...................................  2B002                          
2B03...................................  2B003                          
2B04...................................  2B004                          
2B05...................................  2B005                          
2B06...................................  2B006                          
2B07...................................  2B007                          
2B08...................................  2B008                          
2B09...................................  2B009                          
2B18...................................  2B018                          
2B24...................................  2B104                          
2B41...................................  2B290                          
2B44...................................  2B204                          
2B50...................................  2B115                          
2B50...................................  2B215                          
2B51...................................  2B228                          
2B53...................................  2B229                          
2B85...................................  2B985                          
2B91...................................  2B991                          
2B92...................................  2B992                          
2B93...................................  2B993                          
2B94...................................  2B994                          
2B96...................................  EAR99                          
2D01...................................  2D001                          
2D02...................................  2D002                          
2D18...................................  2D018                          
2D24...................................  2D101                          
2D41...................................  2D290                          
2D49...................................  2D290                          
2D50...................................  2D290                          
2D92...................................  2D994                          
2D93...................................  2D992                          
2D94...................................  2D993                          
2D96...................................  EAR99                          
2E01...................................  2E001                          
2E02...................................  2E002                          
2E03...................................  2E003                          
2E18...................................  2E018                          
2E20...................................  2E201                          
2E24...................................  2E001                          
2E24...................................  2E002                          
2E24...................................  2E101                          
2E40...................................  2E201                          
2E40...................................  2E290                          
2E41...................................  2E001                          
2E41...................................  2E002                          
2E41...................................  2E201                          
2E41...................................  2E290                          
2E44...................................  2E001                          
2E44...................................  2E002                          
2E44...................................  2E201                          
2E44...................................  2E290                          
2E48...................................  2E001                          
2E48...................................  2E002                          
2E48...................................  2E201                          
2E49...................................  2E001                          
2E49...................................  2E002                          
2E49...................................  2E290                          
2E50...................................  2E001                          
2E50...................................  2E002                          
2E50...................................  2E201                          
2E50...................................  2E290                          
2E51...................................  2E001                          
2E51...................................  2E002                          
2E51...................................  2E201                          
2E51...................................  2E290                          
2E52...................................  2E001                          
2E52...................................  2E002                          
2E52...................................  2E201                          
2E53...................................  2E001                          
2E53...................................  2E002                          
2E53...................................  2E201                          
2E53...................................  2E290                          
2E93...................................  2E994                          
2E94...................................  2E993                          
2E96...................................  EAR99                          
3A48...................................  2B232                          
9B26.a.................................  2B116                          
                                                                        
------------------------------------------------------------------------
                                  CAT 3                                 
                                                                        
------------------------------------------------------------------------
2A19.b.................................  3A231                          
3A01...................................  3A001                          
3A02...................................  3A002                          
3A22...................................  3A101                          
3A41...................................  3A201.a                        
3A42...................................  3A201.b                        
3A43...................................  3A228                          
3A44...................................  3A230                          
3A46...................................  3A229                          
3A49...................................  3A232                          
3A50...................................  3A225                          
3A51...................................  3A233                          
3A52...................................  3A202                          
3A53...................................  3A227                          
3A54...................................  3A226                          
3A55...................................  3A201.c                        
3A80...................................  3A980                          
3A81...................................  3A981                          
3A92...................................  3A992                          
3A93...................................  3A993                          
3A94...................................  3A994                          
3A96...................................  EAR99                          
3B01.a.................................  3B001                          
3B01.b.................................  3B002                          
3B01.c.................................  3B003                          
3B01.d.................................  3B004                          
3B01.e.................................  3B005                          
3B01.f.................................  3B006                          
3B01.g.................................  3B007                          
3B01.h.................................  3B008                          
3B91...................................  3B991                          
3B96...................................  EAR99                          
3C01...................................  3C001                          
3C02...................................  3C002                          
3C03...................................  3C003                          
3C04...................................  3C004                          
3C96...................................  EAR99                          
3D02...................................  3D002                          
3D03...................................  3D003                          
3D21...................................  3D001                          
3D22...................................  3D001                          
3D22...................................  3D101                          
3D80...................................  3D980                          
3D94...................................  3D994                          
3D96...................................  EAR99                          
3E02...................................  3E002                          
3E22...................................  3E001                          
3E22...................................  3E101                          
3E40...................................  3E001                          
3E40...................................  3E201                          
3E41...................................  3E201                          
3E80...................................  3E980                          
3E94...................................  3E994                          
3E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 4                                 
                                                                        
------------------------------------------------------------------------
4A01...................................  4A001                          
4A02...................................  4A002                          
4A03...................................  4A003                          
4A04...................................  4A004                          
4A21...................................  4A101                          
4A80...................................  4A980                          
4A94...................................  4A994                          

[[Page 635]]

                                                                        
4A96...................................  EAR99                          
4B94...................................  4B994                          
4B96...................................  EAR99                          
4C94...................................  4C994                          
4C96...................................  EAR99                          
4D01...................................  4D001                          
4D02...................................  4D002                          
4D03...................................  4D003                          
4D21...................................  4D190                          
4D80...................................  4D980                          
4D92...................................  4D994                          
4D93...................................  4D993                          
4D94...................................  4D994                          
4D96...................................  EAR99                          
4E01...................................  4E001                          
4E02...................................  4E002                          
4E80...................................  4E980                          
4E92...................................  4E994                          
4E93...................................  4E993                          
4E94...................................  4E994                          
4E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 5                                 
                                                                        
------------------------------------------------------------------------
2A19.a.................................  Deleted                        
5A01...................................  5A001.a                        
5A02...................................  5A001.b                        
5A03...................................  5A001.c                        
5A04...................................  5A001.d                        
5A05...................................  5A001.e                        
5A06...................................  5A001.f                        
5A11...................................  5A002                          
5A20...................................  5A101                          
5A80...................................  5A980                          
5A90...................................  5A990                          
5A91...................................  5A991                          
5A92...................................  5A992                          
5A93...................................  5A993                          
5A94...................................  5A994                          
5A95...................................  5A995                          
5A96...................................  EAR99                          
5B01...................................  5B001.a                        
5B02...................................  5B001.b                        
5B11...................................  5B002.a.1                      
5B12...................................  5B002.a.2                      
5B13...................................  5B002.b                        
5B94...................................  5B994                          
5B96...................................  EAR99                          
5C01...................................  5C001                          
5C96...................................  EAR99                          
5D01...................................  5D001.a                        
5D02...................................  5D001.b                        
5D03...................................  5D001.c                        
5D11...................................  5D002.a                        
5D12...................................  5D002.b                        
5D13...................................  5D002.c                        
5D20...................................  5D101                          
5D20...................................  5D190                          
5D90...................................  5D990                          
5D91...................................  5D991                          
5D92...................................  5D992                          
5D93...................................  5D993                          
5D94...................................  5D994                          
5D95...................................  5D995                          
5D96...................................  EAR99                          
5E01...................................  5E001.a                        
5E02...................................  5E001.b                        
5E11...................................  5E002                          
5E20...................................  5E101                          
5E90...................................  5E990                          
5E91...................................  5E991                          
5E92...................................  5E992                          
5E93...................................  5E993                          
5E94...................................  5E994                          
5E95...................................  5E995                          
5E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 6                                 
                                                                        
------------------------------------------------------------------------
2A44.a.................................  6A225                          
2A44.b.c...............................  6A226                          
6A01...................................  6A001                          
6A02...................................  6A002                          
6A03...................................  6A003                          
6A04...................................  6A004                          
6A05...................................  6A005                          
6A06...................................  6A006                          
6A07...................................  6A007                          
6A07...................................  6A107                          
6A08...................................  6A008                          
6A18...................................  6A018                          
6A22...................................  6A102                          
6A28...................................  6A108                          
6A29...................................  6A108                          
6A30...................................  6B108                          
6A43...................................  6A203                          
6A44...................................  6A202                          
6A50...................................  6A205                          
6A90...................................  6A990                          
6A92...................................  6A992                          
6A93...................................  6A993                          
6A94...................................  6A994                          
6A96...................................  EAR99                          
6B04...................................  6B004                          
6B05...................................  6B005                          
6B07...................................  6B007                          
6B08...................................  6B008                          
6B96...................................  EAR99                          
6C02...................................  6C002                          
6C04...................................  6C004                          
6C05...................................  6C005                          
6C96...................................  EAR99                          
6D01...................................  6D001                          
6D02...................................  6D002                          
6D03...................................  6D003                          
6D21...................................  6D001                          
6D22...................................  6D102                          
6D29...................................  6D103                          
6D90...................................  6D990                          
6D92...................................  6D990                          
6D93...................................  6D990                          
6D94...................................  6D994                          
6D96...................................  EAR99                          
6E01...................................  6E001                          
6E02...................................  6E002                          
6E03...................................  6E003                          
6E21...................................  6E001                          
6E22...................................  6E002                          
6E23...................................  6E101                          
6E40...................................  6E201                          
6E41...................................  6E001                          
6E41...................................  6E002                          
6E41...................................  6E201                          
6E94...................................  6E994                          
6E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 7                                 
                                                                        
------------------------------------------------------------------------
* * *..................................  7D102                          
7A01...................................  7A001                          
7A02...................................  7A002                          
7A03...................................  7A003                          
7A04...................................  7A004                          
7A06...................................  7A006                          
7A21...................................  7A101                          

[[Page 636]]

                                                                        
7A22...................................  7A102                          
7A23...................................  7A103                          
7A24...................................  7A104                          
7A26...................................  7A106                          
7A27...................................  7A115                          
7A94...................................  7A994                          
7B01...................................  7B001                          
7B02...................................  7B002                          
7B03...................................  7B003                          
7B22.a.................................  7B102                          
7B22.b through .f......................  7B101                          
7B94...................................  7B994                          
7D01...................................  7D001                          
7D02...................................  7D002                          
7D03...................................  7D003                          
7D24...................................  7D001                          
7D24...................................  7D101                          
7D94...................................  7D994                          
7E01...................................  7E001                          
7E02...................................  7E002                          
7E03...................................  7E003                          
7E04...................................  7E004                          
7E21...................................  7E001                          
7E21...................................  7E002                          
7E21...................................  7E101                          
7E22...................................  7E102                          
7E94...................................  7E994                          
                                                                        
------------------------------------------------------------------------
                                 CAT 8                                  
                                                                        
------------------------------------------------------------------------
8A01...................................  8A001                          
8A02...................................  8A002                          
8A18...................................  8A018                          
8A92...................................  8A992                          
8A93...................................  8A993                          
8A94...................................  8A994                          
8A96...................................  EAR99                          
8B01...................................  8B001                          
8B96...................................  EAR99                          
8C01...................................  8C001                          
8C96...................................  EAR99                          
8D01...................................  8D001                          
8D02...................................  8D002                          
8D92...................................  8D992                          
8D93...................................  8D993                          
8D96...................................  EAR99                          
8E01...................................  8E001                          
8E02...................................  8E002                          
8E92...................................  8E992                          
8E93...................................  8E993                          
8E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                 CAT 9                                  
                                                                        
------------------------------------------------------------------------
1A22.a.................................  9A110                          
9A01...................................  9A001                          
9A02...................................  9A002                          
9A03...................................  9A003                          
9A04...................................  9A004                          
9A18...................................  9A018                          
9A21...................................  9A101                          
9A22...................................  9A115                          
9A23...................................  9A106                          
9A24...................................  9A190                          
9A80...................................  9A980                          
9A90...................................  9A990                          
9A91...................................  9A991                          
9A92...................................  9A992                          
9A93...................................  9A993                          
9A94...................................  9A994                          
9A96...................................  EAR99                          
9B01...................................  9B001                          
9B02...................................  9B002                          
9B03...................................  9B003                          
9B04...................................  9B004                          
9B05...................................  9B005                          
9B06...................................  9B006                          
9B07...................................  9B007                          
9B08...................................  9B008                          
9B09...................................  9B009                          
9B21...................................  9B115                          
9B21...................................  9B116                          
9B25...................................  9B105                          
9B26.b.................................  9B106                          
9B27...................................  9B117                          
9B94...................................  9B994                          
9B96...................................  EAR99                          
9D01...................................  9D001                          
9D02...................................  9D002                          
9D03...................................  9D003                          
9D04...................................  9D004                          
9D18...................................  9D018                          
9D24...................................  9D001                          
9D24...................................  9D002                          
9D24...................................  9D101                          
9D90...................................  9D990                          
9D91...................................  9D991                          
9D93...................................  9D993                          
9D94...................................  9D994                          
9D96...................................  EAR99                          
9E01...................................  9E001                          
9E02...................................  9E002                          
9E03...................................  9E003                          
9E18...................................  9E018                          
9E21...................................  9E101                          
9E21...................................  9E102                          
9E90...................................  9E990                          
9E91...................................  9E991                          
9E93...................................  9E993                          
9E94...................................  9E994                          
9E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                          Sorted by ``NEW'' ECCN                        
                                  CAT 0                                 
                                                                        
------------------------------------------------------------------------
0A18...................................  0A018                          
0A80...................................  0A980                          
0A82...................................  0A982                          
0A82...................................  0A983                          
0A84...................................  0A984                          
0A84...................................  0A985                          
0A86...................................  0A986                          
0A88...................................  0A988                          
2A19.c.................................  0B001                          
1B16...................................  0B003                          
2A50.b.................................  0B008                          
1C19.b.................................  0C006                          
1D01...................................  0D001                          
2D19...................................  0D001                          
2D50...................................  0D001                          
1E19...................................  0E001                          
2E19...................................  0E001                          
2E50...................................  0E001                          
0E18...................................  0E018                          
0E84...................................  0E984                          
0A98...................................  Sec.  734.3(b)(2)              
0A95...................................  Sec.  746.4(b)(2)(i)           
0A96...................................  EAR99                          
0E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 1                                 
                                                                        
------------------------------------------------------------------------
1A01...................................  1A001                          
1A02...................................  1A002                          

[[Page 637]]

                                                                        
1A03...................................  1A003                          
1A22.b.................................  1A102                          
1C50.c.................................  1A202                          
1C19.e.................................  1A225                          
1C49...................................  1A225                          
1A45...................................  1A226                          
2A50.c.................................  1A227                          
1A48...................................  1A290                          
1A84...................................  1A984                          
1A88...................................  1A988                          
1B01...................................  1B001                          
1B02...................................  1B002                          
1B03...................................  1B003                          
1B18...................................  1B018                          
1B21...................................  1B101                          
1B28...................................  1B115                          
1B30.a.................................  1B116                          
1B41...................................  1B201                          
1B17...................................  1B225                          
1B42...................................  1B226                          
1B54...................................  1B227                          
1B53...................................  1B228                          
1B52...................................  1B229                          
1B59...................................  1B230                          
1B58...................................  1B231                          
1B55...................................  1B232                          
1C01...................................  1C001                          
1C02...................................  1C002                          
1C03...................................  1C003                          
1CO4...................................  1C004                          
1C05...................................  1C005                          
1C06...................................  1C006                          
1C07...................................  1C007                          
1C08...................................  1C008                          
1C09...................................  1C009                          
1C10...................................  1C010                          
1C18...................................  1C018                          
1C21...................................  1C101                          
1C27...................................  1C107                          
1C31...................................  1C115                          
1A27...................................  1C116                          
1C22...................................  1C117                          
1A46...................................  1C202                          
1C50...................................  1C210                          
1A47...................................  1C216                          
1C57...................................  1C225                          
1A50...................................  1C226                          
1C52...................................  1C227                          
1C53...................................  1C228                          
1C51...................................  1C229                          
1C19.d.................................  1C230                          
1C19.f.................................  1C231                          
1C55...................................  1C232                          
1C19.c.................................  1C233                          
1C19.a.................................  1C234                          
1C54...................................  1C236                          
1C58...................................  1C237                          
1C56...................................  1C238                          
1C60...................................  1C350                          
1C61.a (partial), .b.c (partial), .f...  1C351                          
1C61.a (partial), .c (partial).........  1C352                          
1C61.e.................................  1C353                          
1C61.c.15, c.16, .d....................  1C354                          
1C80...................................  1C980                          
1C81...................................  1C981                          
1C82...................................  1C982                          
1C83...................................  1C983                          
1C84...................................  1C984                          
1C88...................................  1C988                          
1C91...................................  1C991                          
1C92...................................  1C992                          
1C93...................................  1C993                          
1C94...................................  1C994                          
1C95...................................  1C995                          
1D01...................................  1D001                          
1D02...................................  1D002                          
1D01...................................  1D018                          
1D23...................................  1D101                          
* * *..................................  1D103                          
1D41...................................  1D201                          
1D60...................................  1D390                          
1D93...................................  1D993                          
1D94...................................  1D993                          
1E23...................................  1E001                          
1E60...................................  1E001                          
1E61...................................  1E001                          
1E02...................................  1E002                          
1E23...................................  1E101                          
1E24...................................  1E103                          
1E25...................................  1E104                          
1E40...................................  1E201                          
1E41...................................  1E201                          
* * *..................................  1E202                          
* * *..................................  1E203                          
1E60...................................  1E350                          
1E61...................................  1E351                          
1E60...................................  1E391                          
1E61...................................  1E391                          
1E94...................................  1E994                          
1A96...................................  EAR99                          
1B96...................................  EAR99                          
1C96...................................  EAR99                          
1D96...................................  EAR99                          
1E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 2                                 
                                                                        
------------------------------------------------------------------------
2A01...................................  2A001                          
2A02...................................  2A002                          
2A03...................................  2A003                          
2A04...................................  2A004                          
2A05...................................  2A005                          
2A06...................................  2A006                          
1A44...................................  2A225                          
2A48...................................  2A226                          
2A49...................................  2A290                          
2A50.b.d.f.............................  2A291                          
2A51...................................  2A292                          
2A53...................................  2A293                          
* * *..................................  2A993                          
2A94...................................  2A994                          
2B01...................................  2B001                          
2B02...................................  2B002                          
2B03...................................  2B003                          
2B04...................................  2B004                          
2B05...................................  2B005                          
2B06...................................  2B006                          
2B07...................................  2B007                          
2B08...................................  2B008                          
2B09...................................  2B009                          
2B18...................................  2B018                          
1B30.b.................................  2B104                          
2B24...................................  2B104                          
2B50...................................  2B115                          
9B26.a.................................  2B116                          
2B44...................................  2B204                          
* * *..................................  2B207                          
2B50...................................  2B215                          
2A50.e.................................  2B225                          
1B50.a.................................  2B226                          
1B50.b.................................  2B227                          
2B51...................................  2B228                          
2B53...................................  2B229                          
1B51...................................  2B230                          
2A52...................................  2B231                          
3A48...................................  2B232                          
2B41...................................  2B290                          

[[Page 638]]

                                                                        
1B70.a through .d......................  2B350                          
1B70.e.................................  2B351                          
1B71...................................  2B352                          
2B85...................................  2B985                          
2B91...................................  2B991                          
2B92...................................  2B992                          
2B93...................................  2B993                          
2B94...................................  2B994                          
2D01...................................  2D001                          
2D02...................................  2D002                          
2D18...................................  2D018                          
2D24...................................  2D101                          
1D50...................................  2D201                          
2D41...................................  2D290                          
2D49...................................  2D290                          
2D50...................................  2D290                          
2D93...................................  2D992                          
2D94...................................  2D993                          
2D92...................................  2D994                          
2E01...................................  2E001                          
2E24...................................  2E001                          
2E41...................................  2E001                          
2E44...................................  2E001                          
2E48...................................  2E001                          
2E49...................................  2E001                          
2E50...................................  2E001                          
2E51...................................  2E001                          
2E52...................................  2E001                          
2E53...................................  2E001                          
2E02...................................  2E002                          
2E24...................................  2E002                          
2E41...................................  2E002                          
2E44...................................  2E002                          
2E48...................................  2E002                          
2E49...................................  2E002                          
2E50...................................  2E002                          
2E51...................................  2E002                          
2E52...................................  2E002                          
2E53...................................  2E002                          
2E03...................................  2E003                          
2E18...................................  2E018                          
2E24...................................  2E101                          
1E41...................................  2E201                          
2E20...................................  2E201                          
2E40...................................  2E201                          
2E41...................................  2E201                          
2E44...................................  2E201                          
2E48...................................  2E201                          
2E50...................................  2E201                          
2E51...................................  2E201                          
2E52...................................  2E201                          
2E53...................................  2E201                          
2E40...................................  2E290                          
2E41...................................  2E290                          
2E44...................................  2E290                          
2E49...................................  2E290                          
2E50...................................  2E290                          
2E51...................................  2E290                          
2E53...................................  2E290                          
1E70...................................  2E301                          
2E94...................................  2E993                          
2E93...................................  2E994                          
2A96...................................  EAR96                          
2B96...................................  EAR99                          
2D96...................................  EAR99                          
2E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                 CAT 3                                  
                                                                        
------------------------------------------------------------------------
3A01...................................  3A001                          
3A02...................................  3A002                          
3A22...................................  3A101                          
3A41...................................  3A201.a                        
3A42...................................  3A201.b                        
3A55...................................  3A201.c                        
3A52...................................  3A202                          
3A50...................................  3A225                          
3A54...................................  3A226                          
3A53...................................  3A227                          
3A43...................................  3A228                          
3A46...................................  3A229                          
3A44...................................  3A230                          
2A19.b.................................  3A231                          
3A49...................................  3A232                          
3A51...................................  3A233                          
3A80...................................  3A980                          
3A81...................................  3A981                          
3A92...................................  3A992                          
3A93...................................  3A993                          
3A94...................................  3A994                          
3B01.a.................................  3B001                          
3B01.b.................................  3B002                          
3B01.c.................................  3B003                          
3B01.d.................................  3B004                          
3B01.e.................................  3B005                          
3B01.f.................................  3B006                          
3B01.g.................................  3B007                          
3B01.h.................................  3B008                          
3B91...................................  3B991                          
3C01...................................  3C001                          
3C02...................................  3C002                          
3C03...................................  3C003                          
3C04...................................  3C004                          
3D21...................................  3D001                          
3D22...................................  3D001                          
3D02...................................  3D002                          
3D03...................................  3D003                          
3D22...................................  3D101                          
3D80...................................  3D980                          
3D94...................................  3D994                          
3E22...................................  3E001                          
3E40...................................  3E001                          
3E02...................................  3E002                          
3E22...................................  3E101                          
3E40...................................  3E201                          
3E41...................................  3E201                          
3E80...................................  3E980                          
3E94...................................  3E994                          
3A96...................................  EAR99                          
3B96...................................  EAR99                          
3C96...................................  EAR99                          
3D96...................................  EAR99                          
3E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 4                                 
                                                                        
------------------------------------------------------------------------
4A01...................................  4A001                          
4A02...................................  4A002                          
4A03...................................  4A003                          
4A04...................................  4A004                          
4A21...................................  4A101                          
4A80...................................  4A980                          
4A94...................................  4A994                          
4B94...................................  4B994                          
4C94...................................  4C994                          
4D01...................................  4D001                          
4D02...................................  4D002                          
4D03...................................  4D003                          
4D21...................................  4D190                          
4D80...................................  4D980                          
4D93...................................  4D993                          
4D92...................................  4D994                          
4D94...................................  4D994                          
4E01...................................  4E001                          
4E02...................................  4E002                          
4E80...................................  4E980                          

[[Page 639]]

                                                                        
4E93...................................  4E993                          
4E92...................................  4E994                          
4E94...................................  4E994                          
4A96...................................  EAR99                          
4B96...................................  EAR99                          
4C96...................................  EAR99                          
4D96...................................  EAR99                          
4E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 5                                 
                                                                        
------------------------------------------------------------------------
5A01...................................  5A001.a                        
5A02...................................  5A001.b                        
5A03...................................  5A001.c                        
5A04...................................  5A001.d                        
5A05...................................  5A001.e                        
5A06...................................  5A001.f                        
5A11...................................  5A002                          
5A20...................................  5A101                          
5A80...................................  5A980                          
5A90...................................  5A990                          
5A91...................................  5A991                          
5A92...................................  5A992                          
5A93...................................  5A993                          
5A94...................................  5A994                          
5A95...................................  5A995                          
5B01...................................  5B001.a                        
5B02...................................  5B001.b                        
5B11...................................  5B002.a.1                      
5B12...................................  5B002.a.2                      
5B13...................................  5B002.b                        
5B94...................................  5B994                          
5C01...................................  5C001                          
5D01...................................  5D001.a                        
5D02...................................  5D001.b                        
5D03...................................  5D001.c                        
5D11...................................  5D002.a                        
5D12...................................  5D002.b                        
5D13...................................  5D002.c                        
5D20...................................  5D101                          
5D20...................................  5D190                          
5D90...................................  5D990                          
5D91...................................  5D991                          
5D92...................................  5D992                          
5D93...................................  5D993                          
5D94...................................  5D994                          
5D95...................................  5D995                          
5E01...................................  5E001.a                        
5E02...................................  5E001.b                        
5E11...................................  5E002                          
5E20...................................  5E101                          
5E90...................................  5E990                          
5E91...................................  5E991                          
5E92...................................  5E992                          
5E93...................................  5E993                          
5E94...................................  5E994                          
5E95...................................  5E995                          
2A19.a.................................  Deleted                        
5A96...................................  EAR99                          
5B96...................................  EAR99                          
5C96...................................  EAR99                          
5D96...................................  EAR99                          
5E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 6                                 
                                                                        
------------------------------------------------------------------------
6A01...................................  6A001                          
6A02...................................  6A002                          
6A03...................................  6A003                          
6A04...................................  6A004                          
6A05...................................  6A005                          
6A06...................................  6A006                          
6A07...................................  6A007                          
6A08...................................  6A008                          
6A18...................................  6A018                          
6A22...................................  6A102                          
6A07...................................  6A107                          
6A28...................................  6A108                          
6A29...................................  6A108                          
6A44...................................  6A202                          
6A43...................................  6A203                          
6A50...................................  6A205                          
2A44.a.................................  6A225                          
2A44.b.c...............................  6A226                          
6A90...................................  6A990                          
6A92...................................  6A992                          
6A93...................................  6A993                          
6A94...................................  6A994                          
6B04...................................  6B004                          
6B05...................................  6B005                          
6B07...................................  6B007                          
6B08...................................  6B008                          
6A30...................................  6B108                          
6C02...................................  6C002                          
6C04...................................  6C004                          
6C05...................................  6C005                          
6D01...................................  6D001                          
6D21...................................  6D001                          
6D02...................................  6D002                          
6D03...................................  6D003                          
6D22...................................  6D102                          
6D29...................................  6D103                          
6D90...................................  6D990                          
6D92...................................  6D990                          
6D93...................................  6D990                          
6D94...................................  6D994                          
6E01...................................  6E001                          
6E21...................................  6E001                          
6E41...................................  6E001                          
6E02...................................  6E002                          
6E22...................................  6E002                          
6E41...................................  6E002                          
6E03...................................  6E003                          
6E23...................................  6E101                          
6E40...................................  6E201                          
6E41...................................  6E201                          
6E94...................................  6E994                          
6A96...................................  EAR99                          
6B96...................................  EAR99                          
6C96...................................  EAR99                          
6D96...................................  EAR99                          
6E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 7                                 
                                                                        
------------------------------------------------------------------------
7A01...................................  7A001                          
7A02...................................  7A002                          
7A03...................................  7A003                          
7A04...................................  7A004                          
7A06...................................  7A006                          
7A21...................................  7A101                          
7A22...................................  7A102                          
7A23...................................  7A103                          
7A24...................................  7A104                          
7A26...................................  7A106                          
7A27...................................  7A115                          
7A94...................................  7A994                          
7B01...................................  7B001                          
7B02...................................  7B002                          
7B03...................................  7B003                          
7B22.b through .f......................  7B101                          
7B22.a.................................  7B102                          
7B94...................................  7B994                          
7D01...................................  7D001                          
7D24...................................  7D001                          

[[Page 640]]

                                                                        
7D02...................................  7D002                          
7D03...................................  7D003                          
7D24...................................  7D101                          
***....................................  7D102                          
7D94...................................  7D994                          
7E01...................................  7E001                          
7E21...................................  7E001                          
7E02...................................  7E002                          
7E21...................................  7E002                          
7E03...................................  7E003                          
7E04...................................  7E004                          
7E21...................................  7E101                          
7E22...................................  7E102                          
7E94...................................  7E994                          
                                                                        
------------------------------------------------------------------------
                                  CAT 8                                 
                                                                        
------------------------------------------------------------------------
8A01...................................  8A001                          
8A02...................................  8A002                          
8A18...................................  8A018                          
8A92...................................  8A992                          
8A93...................................  8A993                          
8A94...................................  8A994                          
8B01...................................  8B001                          
8C01...................................  8C001                          
8D01...................................  8D001                          
8D02...................................  8D002                          
8D92...................................  8D992                          
8D93...................................  8D993                          
8E01...................................  8E001                          
8E02...................................  8E002                          
8E92...................................  8E992                          
8E93...................................  8E993                          
8A96...................................  EAR99                          
8B96...................................  EAR99                          
8C96...................................  EAR99                          
8D96...................................  EAR99                          
8E96...................................  EAR99                          
                                                                        
------------------------------------------------------------------------
                                  CAT 9                                 
                                                                        
------------------------------------------------------------------------
9A01...................................  9A001                          
9A02...................................  9A002                          
9A03...................................  9A003                          
9A04...................................  9A004                          
9A18...................................  9A018                          
9A21...................................  9A101                          
9A23...................................  9A106                          
1A22.a.................................  9A110                          
9A22...................................  9A115                          
9A24...................................  9A190                          
9A80...................................  9A980                          
9A90...................................  9A990                          
9A91...................................  9A991                          
9A92...................................  9A992                          
9A93...................................  9A993                          
9A94...................................  9A994                          
9B01...................................  9B001                          
9B02...................................  9B002                          
9B03...................................  9B003                          
9B04...................................  9B004                          
9B05...................................  9B005                          
9B06...................................  9B006                          
9B07...................................  9B007                          
9B08...................................  9B008                          
9B09...................................  9B009                          
9B25...................................  9B105                          
9B26.b.................................  9B106                          
9B21...................................  9B115                          
9B21...................................  9B116                          
9B27...................................  9B117                          
9B94...................................  9B994                          
9D01...................................  9D001                          
9D24...................................  9D001                          
9D02...................................  9D002                          
9D24...................................  9D002                          
9D03...................................  9D003                          
9D04...................................  9D004                          
9D18...................................  9D018                          
9D24...................................  9D101                          
9D90...................................  9D990                          
9D91...................................  9D991                          
9D93...................................  9D993                          
9D94...................................  9D994                          
9E01...................................  9E001                          
9E02...................................  9E002                          
9E03...................................  9E003                          
9E18...................................  9E018                          
9E21...................................  9E101                          
9E21...................................  9E102                          
9E90...................................  9E990                          
9E91...................................  9E991                          
9E93...................................  9E993                          
9E94...................................  9E994                          
9A96...................................  EAR99                          
9B96...................................  EAR99                          
9D96...................................  EAR99                          
9E96...................................  EAR99                          
------------------------------------------------------------------------



Parts 775-779 [Reserved]



[[Page 641]]



                              FINDING AIDS




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

  A list of CFR titles, subtitles, chapters, subchapters and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  Redesignation Table
  List of CFR Sections Affected



[[Page 643]]



                    Table of CFR Titles and Chapters




                     (Revised as of January 1, 1997)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
        IV  Miscellaneous Agencies (Parts 400--500)

                          Title 2--[Reserved]

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  General Accounting Office (Parts 1--99)
        II  Federal Claims Collection Standards (General 
                Accounting Office--Department of Justice) (Parts 
                100--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
        IV  Advisory Committee on Federal Pay (Parts 1400--1499)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
       VII  Advisory Commission on Intergovernmental Relations 
                (Parts 1700--1799)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Part 2100)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Part 3202)
     XXIII  Department of Energy (Part 3301)

[[Page 644]]

      XXIV  Federal Energy Regulatory Commission (Part 3401)
      XXVI  Department of Defense (Part 3601)
    XXVIII  Department of Justice (Part 3801)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)
    XXXIII  Overseas Private Investment Corporation (Part 4301)
      XXXV  Office of Personnel Management (Part 4501)
        XL  Interstate Commerce Commission (Part 5001)
       XLI  Commodity Futures Trading Commission (Part 5101)
      XLII  Department of Labor (Part 5201)
     XLIII  National Science Foundation (Part 5301)
       XLV  Department of Health and Human Services (Part 5501)
      XLVI  Postal Rate Commission (Part 5601)
     XLVII  Federal Trade Commission (Part 5701)
    XLVIII  Nuclear Regulatory Commission (Part 5801)
         L  Department of Transportation (Part 6001)
       LII  Export-Import Bank of the United States (Part 6201)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Part 6401)
      LVII  General Services Administration (Part 6701)
     LVIII  Board of Governors of the Federal Reserve System (Part 
                6801)
       LIX  National Aeronautics and Space Administration (Part 
                6901)
        LX  United States Postal Service (Part 7001)
      LXII  Equal Employment Opportunity Commission (Part 7201)
     LXIII  Inter-American Foundation (Part 7301)
       LXV  Department of Housing and Urban Development (Part 
                7501)
      LXVI  National Archives and Records Administration (Part 
                7601)
      LXIX  Tennessee Valley Authority (Part 7901)
      LXXI  Consumer Product Safety Commission (Part 8101)
     LXXIV  Federal Mine Safety and Health Review Commission (Part 
                8401)
     LXXVI  Federal Retirement Thrift Investment Board (Part 8601)
    LXXVII  Office of Management and Budget (Part 8701)

                          Title 6--[Reserved]

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Consumer Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)

[[Page 645]]

        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)
       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy, Department of Agriculture (Parts 
                2900--2999)
       XXX  Office of Finance and Management, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  [Reserved]
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  Cooperative State Research, Education, and Extension 
                Service, Department of Agriculture (Parts 3400--
                3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)

[[Page 646]]

    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Immigration and Naturalization Service, Department of 
                Justice (Parts 1--499)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)
        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Meat and Poultry 
                Inspection, Department of Agriculture (Parts 300--
                599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
        XI  United States Enrichment Corporation (Parts 1100--
                1199)
        XV  Office of the Federal Inspector for the Alaska Natural 
                Gas Transportation System (Parts 1500--1599)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)

[[Page 647]]

        IX  Federal Housing Finance Board (Parts 900--999)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Thrift Depositor Protection Oversight Board (Parts 
                1500--1599)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700-1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--499)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Export Administration, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements

[[Page 648]]

        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  United States Customs Service, Department of the 
                Treasury (Parts 1--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Employment Standards Administration, Department of 
                Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)

[[Page 649]]

        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training, Department of Labor 
                (Parts 1000--1099)

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development, International 
                Development Cooperation Agency (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  United States Information Agency (Parts 500--599)
        VI  United States Arms Control and Disarmament Agency 
                (Parts 600--699)
       VII  Overseas Private Investment Corporation, International 
                Development Cooperation Agency (Parts 700--799)
        IX  Foreign Service Grievance Board Regulations (Parts 
                900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Board for International Broadcasting (Parts 1300--
                1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

[[Page 650]]

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)
        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs and Section 202 Direct Loan Program) 
                (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--999)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)
        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Part 1001)

[[Page 651]]

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--799)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Bureau of Alcohol, Tobacco and Firearms, Department of 
                the Treasury (Parts 1--299)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--199)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Programs, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)
      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Pension and Welfare Benefits Administration, 
                Department of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Minerals Management Service, Department of the 
                Interior (Parts 200--299)

[[Page 652]]

       III  Board of Surface Mining and Reclamation Appeals, 
                Department of the Interior (Parts 300--399)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
        VI  Bureau of Mines, Department of the Interior (Parts 
                600--699)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)
         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)
      XXIX  Presidential Commission on the Assignment of Women in 
                the Armed Forces (Part 2900)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)

[[Page 653]]

        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (Parts 700--799)
        XI  National Institute for Literacy (Parts 1100-1199)
            Subtitle C--Regulations Relating to Education
       XII  National Council on Disability (Parts 1200--1299)

                        Title 35--Panama Canal

         I  Panama Canal Regulations (Parts 1--299)

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
       XIV  Assassination Records Review Board (Parts 1400-1499)

             Title 37--Patents, Trademarks, and Copyrights

         I  Patent and Trademark Office, Department of Commerce 
                (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)

[[Page 654]]

        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--499)
         V  Under Secretary for Technology, Department of Commerce 
                (Parts 500--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--99)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Rate Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--799)
         V  Council on Environmental Quality (Parts 1500--1599)

          Title 41--Public Contracts and Property Management

            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans 
                Employment and Training, Department of Labor 
                (Parts 61-1--61-999)
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System
       201  Federal Information Resources Management Regulation 
                (Parts 201-1--201-99) [Reserved]
            Subtitle F--Federal Travel Regulation System
       301  Travel Allowances (Parts 301-1--301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Parts 303-1--303-2)
       304  Payment from a Non-Federal Source for Travel Expenses 
                (Parts 304-1--304-99)

[[Page 655]]

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Health Care Financing Administration, Department of 
                Health and Human Services (Parts 400--499)
         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 200--499)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10005)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services, 
                General Administration (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  ACTION (Parts 1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)

[[Page 656]]

       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
      XXII  Christopher Columbus Quincentenary Jubilee Commission 
                (Parts 2200--2299)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Transportation (Parts 1--
                199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Department of Defense (Parts 200--299)
         3  Department of Health and Human Services (Parts 300--
                399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)
        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)

[[Page 657]]

        19  United States Information Agency (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        35  Panama Canal Commission (Parts 3500--3599)
        44  Federal Emergency Management Agency (Parts 4400--4499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399)
        54  Defense Logistics Agency, Department of Defense (Part 
                5452)
        57  African Development Foundation (Parts 5700--5799)
        61  General Services Administration Board of Contract 
                Appeals (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Research and Special Programs Administration, 
                Department of Transportation (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Highway Administration, Department of 
                Transportation (Parts 300--399)
        IV  Coast Guard, Department of Transportation (Parts 400--
                499)
         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)

[[Page 658]]

         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            Acts Requiring Publication in the Federal Register
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR



[[Page 659]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of January 1, 1997)

                                                  CFR Title, Subtitle or
                     Agency                               Chapter

ACTION                                            45, XII
Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Commission on Intergovernmental          5, VII
     Relations
Advisory Committee on Federal Pay                 5, IV
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Commodity Credit Corporation                    7, XIV
  Cooperative State Research, Education, and      7, XXXIV
       Extension Service
  Economic Research Service                       7, XXXVII
  Energy, Office of                               7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Finance and Management, Office of               7, XXX
  Food and Consumer Service                       7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Rural Business-Cooperative Service              7, XVIII, XLII
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Alaska Natural Gas Transportation System, Office  10, XV
     of the Federal Inspector
Alcohol, Tobacco and Firearms, Bureau of          27, I
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
Animal and Plant Health Inspection Service        7, III; 9, I

[[Page 660]]

Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Arms Control and Disarmament Agency, United       22, VI
     States
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Assassination Records Review Board                36, XIV
Benefits Review Board                             20, VII
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase From People Who Are
Board for International Broadcasting              22, XIII
Census Bureau                                     15, I
Central Intelligence Agency                       32, XIX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Christopher Columbus Quincentenary Jubilee        45, XXII
     Commission
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Commerce Department                               44, IV
  Census Bureau                                   15, I`
  Economic Affairs, Under Secretary               37, V
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Export Administration, Bureau of                15, VII
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office                     37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology, Under Secretary for                 37, V
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Product Safety Commission                5, LXXI; 16, II
Cooperative State Research, Education, and        7, XXXIV
     Extension Service
Copyright Office                                  37, II
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Customs Service, United States                    19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Intelligence Agency                     32, I

[[Page 661]]

  Defense Logistics Agency                        32, I, XII; 48, 54
  Defense Mapping Agency                          32, I
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Mapping Agency                            32, I
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Affairs, Under Secretary                 37, V
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Elementary and Secondary Education, Office of     34, II
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             5, XXIII; 10, II, III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Enrichment Corporation, United States             10, XI
Environmental Protection Agency                   5, LIV; 40, I
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V
  Management and Budget, Office of                25, III, LXXVII; 48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export Administration, Bureau of                  15, VII
Export-Import Bank of the United States           5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I

[[Page 662]]

  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               4, II
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       11, I
Federal Emergency Management Agency               44, I
  Federal Acquisition Regulation                  48, 44
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II; 49, III
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
Federal Inspector for the Alaska Natural Gas      10, XV
     Transportation System, Office of
Federal Labor Relations Authority, and General    5, XIV; 22, XIV
     Counsel of the Federal Labor Relations 
     Authority
Federal Law Enforcement Training Center           31, VII
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Pay, Advisory Committee on                5, IV
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Property Management Regulations System    41, Subtitle C
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Finance and Management, Office of                 7, XXX
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Fishery Conservation and Management               50, VI
Food and Drug Administration                      21, I
Food and Consumer Service                         7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV
Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Accounting Office                         4, I, II
General Services Administration                   5, LVII
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Property Management Regulations System  41, 101, 105
  Federal Travel Regulation System                41, Subtitle F
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
     of Certain Employees
[[Page 663]]

  Relocation Allowances                           41, 302
  Travel Allowances                               41, 301
Geological Survey                                 30, IV
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Great Lakes Pilotage                              46, III
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Health Care Financing Administration            42, IV
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Health Care Financing Administration              42, IV
Housing and Urban Development, Department of      5, LXV; 24, Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Human Development Services, Office of             45, XIII
Immigration and Naturalization Service            8, I
Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Information Agency, United States                 22, V
  Federal Acquisition Regulation                  48, 19
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Intergovernmental Relations, Advisory Commission  5, VII
     on
Interior Department
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  Minerals Management Service                     30, II
  Mines, Bureau of                                30, VI

[[Page 664]]

  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            43, Subtitle A
  Surface Mining and Reclamation Appeals, Board   30, III
       of
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, Agency for             22, II
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
  International Development, Agency for           22, II; 48, 7
  Overseas Private Investment Corporation         5, XXXIII; 22, VII
International Fishing and Related Activities      50, III
International Investment, Office of               31, VIII
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                5, XXVIII; 28, I
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             4, II
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration and Naturalization Service          8, I
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Benefits Review Board                           20, VII
  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Relations and Cooperative      29, II
       Programs, Bureau of
  Labor-Management Programs, Office of            29, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Pension and Welfare Benefits Administration     29, XXV
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training, Office of    41, 61; 20, IX
       the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Relations and Cooperative        29, II
     Programs, Bureau of
Labor-Management Programs, Office of              29, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II
Management and Budget, Office of                  5, III, LXXVII; 48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II

[[Page 665]]

Micronesian Status Negotiations, Office for       32, XXVII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Mines, Bureau of                                  30, VI
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
National Aeronautics and Space Administration     5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National Archives and Records Administration      5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Bureau of Standards                      15, II
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National and Community Service, Corporation for   45, XXV
National Council on Disability                    34, XII
National Credit Union Administration              12, VII
National Drug Control Policy, Office of           21, III
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 49, V
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Labor Relations Board                    29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI
National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III
     Administration
National Transportation Safety Board              49, VIII
National Weather Service                          15, IX
Natural Resources Conservation Service            7, VI
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Nuclear Regulatory Commission                     5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Offices of Independent Counsel                    28, VI
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Panama Canal Commission                           48, 35
Panama Canal Regulations                          35, I
Patent and Trademark Office                       37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension and Welfare Benefits Administration       29, XXV
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
     Acquisition Regulation
[[Page 666]]

  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Postal Rate Commission                            5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Commission on the Assignment of      32, XXIX
     Women in the Armed Forces
Presidential Documents                            3
Prisons, Bureau of                                28, V
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Refugee Resettlement, Office of                   45, IV
Regional Action Planning Commissions              13, V
Relocation Allowances                             41, 302
Research and Special Programs Administration      49, I
Rural Business-Cooperative Service                7, XVIII, XLII
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV
Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                17, II
Selective Service System                          32, XVI
Small Business Administration                     13, I
Smithsonian Institution                           36, V
Social Security Administration                    20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  22, I
  Federal Acquisition Regulation                  48, 6
Surface Mining and Reclamation Appeals, Board of  30, III
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Depositor Protection Oversight Board       12, XV
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  Coast Guard                                     33, I; 46, I; 49, IV
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II; 49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 49, V
  Research and Special Programs Administration    49, I
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X

[[Page 667]]

Transportation, Office of                         7, XXXIII
Travel Allowances                                 41, 301
Treasury Department                               5, XXI; 17, IV
  Alcohol, Tobacco and Firearms, Bureau of        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs Service, United States                  19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Law Enforcement Training Center         31, VII
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  International Investment, Office of             31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
     Commission
United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
United States Enrichment Corporation              10, XI
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training, Office of the  41, 61; 20, IX
     Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 669]]



                                     

                                     



                           Redesignation Table



----------------------------------------------------------------------------------------------------------------
                                 Present 15 CFR                                                    New 15 CFR   
             Part                 Designation                                           Part      Designation   
----------------------------------------------------------------------------------------------------------------
None                           .................  ..................................  700-767         [Reserved]
368                            (Secs.  368.1-368  U.S. Import Certificate and             768  (Secs.  768.1-768
                                             .4)   Delivery Verification Procedure.                          .4)
369                            (Secs.  369.1-369  Restrictive Trade Practice or           769  (Secs.  769.1-769
                                             .8)   Boycotts.                                                 .8)
370                            (Secs.  370.1-370  Export Licensing General Policy         770  (Secs.  770.1-770
                                            .15)   and Related Information.                                 .15)
371                            (Secs.  371.1-371  General Licenses..................      771  (Secs.  771.1-771
                                            .23)                                                            .23)
372                            (Secs.  372.1-372  Individual Validated Licenses and       772  (Secs.  772.1-772
                                            .13)   Amendments.                                              .13)
373                            (Secs.  373.1-373  Special Licensing Procedures......      773  (Secs.  773.1-773
                                             .8)                                                             .8)
374                            (Secs.  374.1-374  Reexports.........................      774  (Secs.  774.1-774
                                             .9)                                                             .9)
375                            (Secs.  375.1-375  Documentation Requirements........      775  (Secs.  775.1-775
                                             .9)                                                             .9)
376                            (Secs.  376.1-376  Special Commodity Policies and          776  (Secs.  776.1-776
                                            .18)   Provisions.                                              .18)
377                            (Secs.  377.1-377  Short Supply Controls and               777  (Secs.  777.1-777
                                            .15)   Monitoring.                                              .15)
378                            (Secs.  378.1-378  Special Nuclear Controls..........      778  (Secs.  778.1-778
                                             .8)                                                             .8)
379                            (Secs.  379.1-379  Technical Data....................      779  (Secs.  779.1-779
                                            .10)                                                            .10)
380-384                               [Reserved]  ..................................  780-784         [Reserved]
385                            (Secs.  385.1-385  Special Country Policies and            785  (Secs.  785.1-785
                                             .7)   Provisions.                                               .7)
386                            (Secs.  386.1-386  Export Clearance..................      786  (Secs.  786.1-786
                                            .10)                                                            .10)
387                            (Secs.  387.1-387  Enforcement.......................      787  (Secs.  787.1-787
                                            .14)                                                            .14)
388                            (Secs.  388.1-388  Administrative Proceedings........      788  (Secs.  788.1-788
                                            .23)                                                            .23)
389                            (Secs.  389.1-389  Appeals...........................      789  (Secs.  789.1-789
                                             .3)                                                             .3)
390                            (Secs.  390.1-390  General Orders....................      790  (Secs.  790.1-790
                                             .7)                                                             .7)
391                            (Secs.  391.1-391  Foreign Availability Procedures         791  (Secs.  791.1-791
                                             .6)   and Criteria.                                             .6)
392-398                               [Reserved]  ..................................  792-798         [Reserved]
399                            (Secs.  399.1-399  Commodity Control List and Related      799  (Secs.  799.1-799
                                             .2)   Matters.                                                  .2)
----------------------------------------------------------------------------------------------------------------


[[Page 671]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations which were 
made by documents published in the Federal Register since January 1, 
1986, are enumerated in the following list. Entries indicate the nature 
of the changes effected. Page numbers refer to Federal Register pages. 
The user should consult the entries for chapters and parts as well as 
sections for revisions.
For the period before January 1, 1986, see the ``List of CFR Sections 
Affected, 1949-1963, 1964-1972, and 1973-1985'' published in seven 
separate volumes.

                                  1986

15 CFR
                                                                   51 FR
                                                                    Page
Chapter III
Chapter III  Nomenclature changes..................................34586
303.14  (e) revised................................................14980
368  Authority citation revised; section authority citations 
        removed....................................................12838
368.2  (a)(1) revised..............................................12838
    (a)(12)(i)(a) and (b) redesignated as (a)(12)(i) (A) and (B) 
                                                                   30632
369  Authority citation revised; section and supplement authority 
        citations removed..........................................30631
369.2  (e)(2)(i) (a) and (b) redesignated as (e)(2)(i) (A) and (B)
                                                                   30632
370  Section and supplement authority citations removed............30631
370.2  Amended....................................................12841,
18774, 28693, 46852
370.3  (a)(1) introductory text footnote 1 redesignated as 
        footnote 4.................................................12839
370.10  (f)(3) footnote 1 removed..................................12839
370.11  (a) heading footnote 1 redesignated as footnote 7..........12839
    (a)(1)(iii) (a), (b), and (c) and (2)(iii) (a) and (b) 
redesignated as (a)(1)(iii) (A), (B), and (C) and (2)(iii) (A) and 
(B)................................................................30632
    (d) added; eff. 2-2-87.........................................43725
370.13  Heading footnote 1 redesignated as footnote 7..............12839
370.14  Amended....................................................28693
371  Authority citation revised....................................34586
371  Section authority citations removed...........................30631
371.4  (a) heading footnote 1, (1) footnote 2, and (c)(2) footnote 
        3 redesignated as footnote 2, footnote 3, and footnote 4 
                                                                   12839
371.5  (a)(1) footnote 1 redesignated as footnote 5................12839
371.6  (c)(2) footnote 1 redesignated as footnote 6................12839
    (a) and (b)(4) revised; interim................................25684
    (a) and effective date corrected...............................26154
371.8  (b) amended.................................................28693
371.9  (a) introductory text footnote 1 redesignated as footnote 7
                                                                   12839
371.10  (a) introductory text footnote 1 redesignated as footnote 
        8..........................................................12839
371.12  (b) introductory text footnote 1 redesignated as footnote 
        9 and amended; (c) introductory text footnote 2 
        redesignated as footnote 10................................12839
371.16  OMB number.................................................25360
371.17  (f)(1)(i) footnote 3 redesignated as footnote 11...........12839
371.18  (a)(1) footnote 1 redesignated as footnote 12..............12839

[[Page 672]]

371.22  (b) introductory text footnote 1 and (4) footnote 2 
        redesignated as footnote 13 and footnote 14................12839
372  Section authority citations removed...........................30631
372.2  (b)(4) removed..............................................46852
372.6  (d) amended.................................................10366
    (c)(2) revised; eff. 2-2-87....................................43726
372.9  (b) and (c) amended.........................................34587
    (d)(1) text amended; (d)(1) heading and (2) revised; interim 
                                                                   40158
372.11  (h)(1) amended.............................................12839
    (e)(7) revised; (g)(2)(i) removed; (g)(2)(ii) through (iv) 
redesignated as (g)(2)(i) through (iii); (g)(3)(i), (ii), (v), and 
(vi) amended; (h)(4) redesignated as (h)(5) and amended; new 
(h)(4) added; interim..............................................40158
    (e)(2)(ii) and (7) and (g)(3)(iii) amended.....................46852
372.12  Introductory text and (a) revised; (b) and (c) removed; 
        (d), (e), and (f) redesignated as (b), (c), and (d); 
        interim....................................................40158
373  Authority citation revised....................................34586
373  Section and supplement authority citations removed............30631
373.1  (a)(1)(iv) added............................................18774
    (a)(2)(i) introductory text revised............................30633
373.2  (c)(2)(iii) (a), (b), and (c), (iv) (a) through (e), and 
        (v) (a), (b), and (c) redesignated as (c)(2)(iii) (A), 
        (B), and (C), (iv) (A) through (E), and (v) (A), (B), and 
        (C)........................................................30632
373.3  (b)(2), (d)(3)(iii)(D), and (j)(3)(iii) amended.............22504
    (g)(3)(viii) and (j)(3)(iii) amended...........................30633
    (d)(2)(iv) and (4) and (l)(4)(ix) added; eff. in part 2-17-87 
                                                                   45310
373.4  Removed.....................................................46852
373.5  Added; interim...............................................8483
    Heading and (h)(4) corrected....................................9648
    Addition confirmed; OMB number.................................24136
373.7  (b)(4) footnote 4 and (h)(1) (i) and (ii) and (3) 
        introductory text footnotes 5, 6, and 7 redesignated as 
        footnotes 1 through 4......................................12839
    (d)(1)(i) (a), (b), and (c), (ii) (a) through (e), (2)(ii) (a) 
through (d), and (3) (a) and (b) redesignated as (d)(1)(i) (A), 
(B), and (C), (ii) (A) through (E), (2)(ii) (A) through (D), and 
(3) (A) and (B)....................................................30632
    (m)(2)(i) amended; interim.....................................40158
373  Supplement No. 7 added; interim................................8484
    Supplements No. 1 and 4 amended; Supplement No. 8 added........22504
    Supplement No. 1 amended.........................23528, 34587, 45311
    Supplement No. 2 amended.......................................28693
374  Section authority citations removed...........................30631
374.2  Correctly designated........................................37265
374.3  (c)(1)(ii) revised..........................................10366
    (e)(1)(ii) amended.............................................28693
    (e)(1)(i)(D) revised...........................................34588
374.5  (a) amended; (b) heading, introductory text, and (2) 
        revised; interim...........................................40158
375  Section authority citations removed...........................30631
375.1  Table amended........................................10366, 22505
375.2  (b)(1) revised..............................................10366
    (d)(1) footnote 1 removed......................................12839
375.3  (b) footnote 1 revised; (e)(1)(iii) undesignated text and 
        (f)(3) amended.............................................10366
    (i)(1)(i) footnote 1 redesignated as footnote 2................12839
    (b) and (c)(1) amended.........................................22505
    (d)(7) amended.................................................46852
375.4  (c)(3) undesignated text amended............................10366
375.5  (c) amended.................................................10366
    (a) footnote 1 redesignated as footnote 3......................12839
375.7  Redesignated as 375.8.......................................10366
    Added..........................................................10367
375.8  Redesignated as 375.9; new 375.8 redesignated from 375.7....10366
375.9  Redesignated from 375.8.....................................10366

[[Page 673]]

    Introductory text, (a), (b)(3), (c), (e), (f) (1) and (2), and 
(g) amended........................................................10367
    (b)(3) heading revised.........................................10367
    (f) heading footnote 1 and (g)(1) introductory text footnote 2 
redesignated as footnotes 4 and 5..................................12839
    (g)(2)(iii) (a) through (j) redesignated as (g)(2)(iii) (A) 
through (J)........................................................30632
375  Supplement No. 1 amended......................................22505
376  Section authority citations removed...........................30631
376.5  Removed.....................................................34588
376.8  (b)(1) introductory text footnote 1 redesignated as 
        footnote 2.................................................12839
    (b)(1)(i) (a) and (b) redesignated as (b)(1)(i) (A) and (B)....30632
376.9  (b)(1)(iii) (a) through (d), (2)(iii) (a), (b), and (c), 
        (3)(iii) (a) through (d), and (c)(4)(ii) (a), (b), and (c) 
        redesignated as (b)(1)(iii) (A) through (D), (2)(iii) (A), 
        (B), and (C), (3)(iii) (A) through (D), and (c)(4)(ii) 
        (A), (B), and (C)..........................................30632
376.10  Revised.....................................................1493
    (a)(3) existing Note designated as Note 1; (a)(3) Note 2 added
                                                                   44784
376.11  OMB number.................................................16674
376.14  Amended....................................................34588
376.15  Added; interim..............................................8484
377  Authority citation revised....................................12839
    Section and Supplement No. 3 authority citations removed.......30632
377.2  (c)(1)(ii) (a) and (b) and (d)(2)(ii) (a), (b), and (c) 
        redesignated as (c)(1)(ii) (A) and (B) and (d)(2)(ii) (A), 
        (B), and (C)...............................................30632
377.6  (e)(2) footnote 1 redesignated as footnote 2................12839
    (d)(1)(ix) added...............................................20254
    OMB number.....................................................25360
    (g) revised; interim...........................................40159
377.7  OMB number..................................................25360
    (i)(1) revised; interim........................................40159
379  Authority citation revised....................................34586
    Section and supplement authority citations removed.............30631
379.4  (b)(1)(i)(d) footnote 1, (c) introductory text footnote 1, 
        (1)(i) footnotes 1 and 2, (ii) footnote 3, redesignated as 
        footnotes 9, 10, 11, 12, and 13............................12839
    (d) introductory text footnotes 2a and 3a, (5) footnote 4, (7) 
footnote 4, (e)(1) footnote 1, (f)(1) introductory text footnotes 
1 and 2, (2)(i)(a) and (b) and (ii) introductory text footnotes 8, 
9, and 12, (iii) and (iv) footnotes 12 and 13 redesignated as 
footnotes 14 through 24; (f)(2)(ii)(a) and (c) amended.............12840
    (f)(2)(ii)(c) amended..........................................28693
    (b)(1)(i) (a) through (e) and (ii) (a) through (c) 
redesignated as (b)(1)(i) (A) through (E) and (ii) (A) through 
(C); (f)(1) introductory text amended..............................30632
    (f)(1)(i) (a) through (r), (ii) (a) and (b), (2)(i) (a), (b), 
and (c), and (ii) (a), (b), and (c), and (v) (a), (b), and (c) 
redesignated as (f)(1)(i) (A) through (R), (ii) (A) and (B), 
(2)(i) (A), (B), and (C), (ii) (A), (B), and (C), and (v) (A), 
(B), and (C); new (f)(2)(ii) (C) Note and (g) amended..............30632
    (e)(2) amended.................................................34588
    (c)(11) added; (d)(16) introductory text amended; (d)(16) (i) 
and (ii) removed; (d) (13) and (17) revised........................36213
379.5  (e)(1) heading and (2) heading footnote 1, (vii) footnote 
        2, and (2)(x) footnote 3 redesignated as footnotes 25, 26, 
        and 28; (e)(2)(ix) revised.................................12840
    (d)(6) and (f) revised; interim................................40159
379.7  Revised.....................................................40159
379.8  (c)(1) amended; interim.....................................40159
379.9  Redesignated as 379.10; new 379.9 added.....................15316
    (b) corrected..................................................16296
379.10  Redesignated from 379.9....................................15316
379  Supplement No. 4 added........................................36213

[[Page 674]]

385  Authority citation revised.............................20468, 34586
    Section and supplement authority citations removed.............30631
385.1  (a) amended; interim.........................................8484
385.2  (c) amended.................................................19543
385.4  OMB number..................................................19058
    (e) amended....................................................20468
    (d)(2) amended.................................................20469
385.7  Introductory text note added.................................2354
    (a) amended; interim............................................8485
    (a) corrected...................................................9649
386  Authority citation revised....................................34586
    Section authority citations removed............................30631
386.2  (b)(1)(i) (a) and (b) redesignated as (b)(1)(i) (A) and (B)
                                                                   30632
    (d) footnote 3 amended.........................................46852
386.3  (p)(1) introductory text footnote 3 redesignated as 
        footnote 4 and revised.....................................12840
    (p)(3)(ii) (a), (b), and (c) redesignated as (p)(3)(ii) (A), 
(B), and (C).......................................................30632
386.5  (b)(2)(i) (a), (b), and (c) redesignated as (b)(2)(i) (A), 
        (B), and (C)...............................................30632
386.6  (d)(1) and (2)(i)(a) footnote 4 removed; (d)(2)(i)(b) 
        footnote 2 redesignated as foofnote 6......................12840
    (d)(2)(i) (a) and (b), (ii) (a) and (b), (g)(3)(ii) (a), (b), 
and (c), and (iii) (a) through (d) redesignated as (d)(2)(i) (A) 
and (B), (ii) (A) and (B), (g)(3)(ii) (A), (B), and (C), and (iii) 
(A) through (D)....................................................30632
386.7  Heading footnote 1 redesignated as footnote 7...............12840
386.8  (b)(6) heading revised; (b)(6) text amended.................12840
    (b)(1)(iii) (a), (b), and (c) redesignated as (b)(1)(iii) (A), 
(B), and (C).......................................................30632
390  Authority citation revised.....................................2354
    Section authority citations removed............................30632
390.1  (b)(3)(ii) (a), (b), and (c) redesignated as (b)(3)(ii) 
        (A), (B), and (C)..........................................30632
390.5  Added; interim..............................................40159
390.7  Heading revised; existing text designated as (a); (b) and 
        (c) added...................................................2354
399  Authority citation revised....................................34586
399  Section authority citations removed...........................30631
399.1  (f)(3)(i) amended...........................................28693
    (f)(1) revised; eff. 2-2-87....................................43726
399.1  Supplement No. 1, Group 2 amended...........................36214
    Supplement No. 1, Group 3 amended.............................25360,
34588, 36214, 36215
    Supplement No. 1, Group 4 amended.............................20469,
23528, 34588, 36215, 36216
    Supplement No. 1, Group 5 amended..............................1494,
12840, 12841, 16818, 22504, 23528, 23529, 25523, 28693, 34588, 36216, 
36217, 40160, 45311
    Supplement No. 1, Group 7 amended.............................20468,
23530, 28693, 34588
399.2  Supplement No. 1 amended.......................2684, 12841, 37908

                                  1987

15 CFR
                                                                   52 FR
                                                                    Page
Chapter III
302  Removed........................................................5757
303.14  (e) revised.................................................3794
368  Authority citation revised....................................32122
368.2  (a)(4) removed..............................................31754
369  Authority citation revised....................................32122
369  Supplement No. 14 added.......................................17285
370  Authority citation revised....................................32122
370.4  Revised.....................................................28543
370.6  (d) removed.................................................31754
370.11  (c) revised................................................11640
    (a)(2) heading and (i) revised; (c) amended....................31755
370.13  (a) introductory text revised..............................32122

[[Page 675]]

370.14  Heading revised; (a) introductory text and (6), (b) 
        introductory text, and (f)(1)(ii) and (2)(ii) amended; 
        (a)(3) redesignated as (a)(3)(i); new (a)(3) heading and 
        (ii) added.................................................32122
    (a) introductory text and (3)(ii) amended......................32539
371  Authority citation revised..............................2106, 32122
    Export controls continued.......................................2500
371.1  Amended......................................................6138
371.2  (c)(11) amended..............................................2106
371.4  (b)(2) removed..............................................31754
371.5  (d) revised..................................................2106
371.7  (d) added....................................................2106
371.8  Heading and (a) revised; (b) amended........................26954
    (c) revised....................................................29374
    (a) and (b) amended..............................32122, 32539, 39216
    (a) and (c) revised............................................43852
    (a) revised; (b) amended.......................................45619
371.14  Added.......................................................5275
    (c) corrected............................................6649, 10741
    (b) amended...................................................26954,
32539, 39216, 45619
371.16  Introductory text revised...................................2106
371.17  Introductory text, (a)(2) heading, (e), (f) heading, 
        introductory text, (1) (i), (ii), and (iii), and (3)(v) 
        revised; (a)(5) added; (a)(2)(i) introductory text, (f)(1) 
        (iv) and (v), (2) heading, introductory text, (i) and 
        (iii), and (3) (i) and (iii) amended.......................23028
    (a)(2) heading and (i) and (f) introductory text, (2) heading 
and text, and (3)(i) amended.......................................23168
    (a)(2)(i) revised..............................................31754
    (e)(4)(i) amended..............................................44099
371.18  (b) (2) and (3) revised....................................23027
    (a)(1) footnote 12 redesignated as footnote 11.................23029
371.20  Added.......................................................5275
    (a) introductory text amended...........................26954, 32539
371.22  (d)(1) introductory text and (2) revised....................6138
    (b) introductory text footnote 13 and (4) footnote 14 
redesignated as footnotes 12 and 13................................23029
371.23  Added......................................................43852
    (a) revised; (c) amended.......................................48523
371  Supplement No. 1 added.........................................5275
372  Authority citation revised..............................2106, 32122
372.1  (a) and (c) revised; (d) removed; (e) through (h) 
        redesignated as (d) through (g); eff. 1-2-88...............48808
372.2  (b) (1) and (4) revised; (b)(3) amended......................6138
372.4  (c) revised..................................................6138
    (a) (1), (2), (3), and (4), (b) introductory text, (1), (2), 
and (3), and (c) through (h) redesignated as (a)(1)(i), (c), 
(a)(1) (ii) and (iii), (2) introductory text, (i), (ii), and 
(iii), and (d) through (i); new (a) heading and (1)(i) heading 
revised; new (b) added; eff. 1-2-88................................48808
372.8  (c)(3) amended; eff. 1-2-88.................................48809
372.9  (c) revised...................................................664
372.10  Introductory text amended; eff. 1-2-88.....................48809
372.11  (e)(2)(iii) amended; (e)(2)(iv) added.......................6138
    (d)(3) amended..........................................32122, 32539
    (g) and (i) heading revised; (h)(1) amended; (i)(1) heading 
and (2) removed; (i)(1) (i), (ii), and (iii) redesignated as new 
(i) (1), (2), and (3)..............................................34212
372.12  Introductory text amended; eff. 1-2-88.....................48809
372.13  (a) amended; eff. 1-2-88...................................48809
373  Authority citation revised..............................2106, 32122
    Export controls continued.......................................2500
373.1  (a)(1)(iii) revised..........................................2106
373.2  (b)(2) added.................................................6138
    (d)(3) and (e)(4)(ii) revised..................................22632
    (b)(8) amended.................................................23168
373.3  (d)(3)(ii)(E)(3)(iii) amended................................2106
    (f)(5) revised.................................................22632
    (a)(1)(ii) amended.............................................23168
373.7  (b)(7), (d)(1), (2) (i) and (ii) and (3), and (h)(1)(ii) 
        amended.....................................................6138
    (f)(3) revised.................................................22632
    (c)(1) heading and text amended................................23168

[[Page 676]]

    (i)(4) amended.................................................44099
373.8  (a)(2) amended..............................................23168
373  Supplement No. 6 amended.......................................9149
    Supplement No. 4 amended.......................................33920
374  Authority citation revised....................................32122
374.2  (j) revised..................................................3601
    (a)(1) amended..................................................5275
    (a)(4) revised.................................................23029
    (a)(4)(i) amended..............................................23168
    (j) amended.............................................32540, 45619
    (a)(1) revised.................................................36568
    (a)(1) amended.................................................43853
374.3  (e) (3) and (4) amended.....................................31756
    (c)(1)(ii) amended......................................34212, 44103
374.6  Revised......................................................6139
375  Authority citation revised.............................28544, 32122
375.1  Table amended........................................34212, 44103
375.3  (b) and (c)(1) amended......................................34213
    (b) and (c)(1) revised.........................................44103
375.6  (b)(1) amended...............................................3601
    (a) amended; (b)(1) revised; (c) added.........................28544
    (c)(3) amended.................................................44099
375  Supplement No. 1 amended...............................34213, 44103
376  Export controls continued......................................2500
    Authority citation revised.....................................32122
376.8  (b)(1) (ii) and (iii) amended...............................23168
376.12  Revised.....................................................9149
    (a) (2) and (3) revised; (a)(4) and (h) added..................44596
376.14  (a) amended..........................................5532, 11640
376.17  Added........................................................776
376.18  Added......................................................28545
377  Authority citation revised....................................28136
377.1  (b) and (c) (1), (2), (3), and (4) amended..................28136
377.2  (d)(1) and (e) amended......................................28136
377.3  (a)(2), (b) introductory text and (c) introductory text 
        amended....................................................28136
377.4  (c) introductory text, (d)(1) introductory text and (vi), 
        (e), (f) introductory text, and (1)(i), (h) introductory 
        text, and (i) (1) and (2) amended..........................28136
377.6  (d)(2) amended...............................................2106
    (d) introductory text and (3)(ii) introductory text and (e)(2) 
amended; footnotes 1 and 2 redesignated as footnotes 2 and 3.......28137
377.7  (a), (d), (e) introductory text, (1), (4), and (5), (f)(1), 
        (g) introductory text, flush text following (h)(3), (j), 
        and (m) amended............................................28136
    (m) correctly designated.......................................29353
377.8  (b), (f), (g), (h), (i), (j), and (l) amended; (d) revised 
                                                                   28136
377.9  (b) introductory text and (c) amended.......................28136
377.15  (d) amended................................................28136
378  Authority citation revised....................................32122
379  Authority citation revised..............................2106, 32122
    Export controls continued.......................................2500
379.4  (e) (1) and (2) amended......................................2106
    (f)(1) introductory text revised; (f)(1)(i)(P) removed..........2500
    (f)(1) amended..................................................6139
    (b)(5) added; interim..........................................21505
    (d)(18) amended; (d)(19) redesignated as (d)(20); new (d)(19) 
added..............................................................27498
    (d)(19) amended; (d)(20) redesignated as (d)(21); new (d)(20) 
added..............................................................28545
379  Supplement No. 3 amended................................2106, 27506
    Supplement No. 4 amended................................27499, 28545
    Supplements No. 3 and No. 4 amended............................29177
385  Authority citation revised..............................2106, 32122
    Export controls continued.......................................2500
385.1  (b)(2) amended...............................................9151
385.2  (c) removed..................................................2501
385.4  (c)(9) (i) and (iii) amended; (a)(13) added..................2107
    (f) amended.....................................................2501
    (d)(2) amended; (d)(4) redesignated as (d)(5) and revised; new 
(d)(4) added.......................................................23168
    (d)(2) amended.................................................23545
    (e) revised....................................................28551
    (e) redesignated as (e)(1); new (e)(1) heading and (2) added 
                                                                   36756
    (d)(3) revised.................................................45309

[[Page 677]]

    (d)(3)(i)(C) correctly designated..............................46886
385  Supplement No. 2 amended.......................................2107
    Supplement No. 1 amended.......................................27798
386  Authority citation revised..............................2106, 32122
386.1  (c)(2)(i) amended............................................6139
386.3  (r)(2) amended...............................................6139
    (l) removed....................................................31754
386.6  (a)(1)(ii) amended...........................................5275
386.7  Revised.......................................................664
386  Supplement No. 1 revised.......................................6139
387  Authority citation revised..............................2106, 32122
387.13  (c) amended; eff. 1-2-88...................................48809
388  Authority citation revised....................................32122
388.3  (a)(1) footnote 2 amended; eff. 1-2-88......................48809
388.19  (a)(1) amended; eff. 1-2-88................................48809
389  Authority citation revised..............................2106, 32122
389.2  (b)(1) amended........................................6139, 29177
391  Authority citation revised....................................32122
399  Interpretation..................................................405
    Authority citation revised...............................2106, 32122
    Export controls continued.......................................2500
399.1  (f)(1) (iii) and (iv) redesignated as (f)(1) (iv) and (v); 
        new (f)(1)(iii) added......................................29177
    (f)(3)(i) revised..............................................43853
    (h) amended....................................................48810
    Supplement No. 1, Group 0 amended..............................2501,
28546, 43853, 47389
    Supplement No. 1, Group 1 amended..............................2501,
28546, 28547, 43853
    Supplement No. 1, Group 2 amended.............................27501,
27502, 34213, 43853, 45310
    Supplement No. 1, Group 2 corrected............................28640
    Supplement No. 1, Group 3 amended...............................666,
2501, 3602, 6139, 8445, 22632, 27502, 27503, 28546, 28547, 33920, 36756, 
43853, 44099, 45310, 48524
    Supplement No. 1, Group 4 amended.............................23168,
23545, 27503, 27504, 28546, 28548, 33920, 35539, 43853, 45311
    Supplement No. 1, Group 4 corrected.....................28640, 46886
    Supplement No. 1, Group 5 amended...............................666,
2107, 2501, 3602, 5532, 11458, 11641, 13829, 22632, 23169, 23545, 25208, 
27509, 27513, 28246, 28546, 28548, 29177, 29374, 33920, 43853, 44099, 
45311
    Supplement No. 1, Group 5 corrected............................28640
    Supplement No. 1, Group 6 amended..............................6139,
11641, 22632, 23545, 27504, 33920, 43853
    Supplement No. 1, Group 6 corrected............................28640
    Supplement No. 1, Group 7 amended...............................666,
2107, 2501, 11458, 22632, 27504, 27505, 28546, 28550, 28552, 29840, 
31756, 33921, 44102, 48523
    Supplement No. 1, Group 7 corrected............................28640
    Supplement No. 1, Group 8 amended..............................28546
    Supplement No. 1, Group 9 amended.................5533, 29178, 45311
399.2  Supplement No. 1 amended........................2501, 8445, 28552
    Supplement No. 1 corrected.....................................23170

                                  1988

15 CFR
                                                                   53 FR
                                                                    Page
Chapter III
Chapter III  Export controls continued..............................3014
303.1  (a) and (b) amended.........................................52994
303.2  (a) (10), (13), and (14) amended............................52994
303.3  (a) revised.................................................52994
303.5  (b)(7) amended..............................................52994
303.14  (e) revised................................................17925
    (d) (2) and (3) amended; eff. 1-30-89..........................52679
    (a)(1) (i) and (ii) and (b)(3) amended.........................52994
315  Redesignated from Part 615....................................52115
    Authority citation revised.....................................52115
315.1  Amended.....................................................52115
315.2  (b) revised.................................................52115
315.3  Amended.....................................................52115

[[Page 678]]

315.4  (a), (b), and (c) amended...................................52115
315.5  Amended.....................................................52115
368--399 (Subchapter C)  Removed; regulations transferred to 
        Chapter VII................................................37751
368  Redesignated as Part 768......................................37751
369  Redesignated as Part 769......................................37751
370  Redesignated as Part 770......................................37751
370.3  (a)(1)(ii) removed; (a)(1) (iii) through (vii) redesignated 
        as (a)(1) (ii) through (vi)................................12668
370.14  (a) introductory text and (3)(ii) amended...................6143
371  Redesignated as Part 771......................................37751
371.2  (c)(7) revised; footnotes 2 through 13 redesignated as 
        footnotes 4 through 15; new footnotes 2 and 3 added........12668
371.5  Heading revised; (b)(1) amended.............................26048
371.17  (e)(2)(iii) and (f)(1)(iv) amended.........................12669
    (e)(4)(i) amended..............................................18550
    (e)(2)(vi) revised; interim....................................28863
371.22  (c)(2)(i) revised..........................................12669
372  Redesignated as Part 772......................................37751
372.4  (i) (1) and (3) revised; (i)(6) added........................1615
    (i) (1), (3) and (6) correctly designated; (i)(1)(iii) and (6) 
corrected..........................................................16390
372.8  (c)(1) amended..............................................23230
372.9  (f) revised; new (g) added..................................22475
372.11  (h)(5) revised..............................................1616
    (d)(3) amended..................................................6143
    (h)(5) corrected...............................................16390
373  Authority citation revised....................................35800
    Redesignated as Part 773.......................................37751
373.2  (b)(3) amended..............................................12669
373.3  (g)(3)(viii) amended; (b)(1)(i) revised.....................12669
373.7  (b) (1) and (3) amended.....................................12669
    (i)(4) amended.................................................18550
373  Supplement No. 1 amended.....................................12669,
                                                     17021, 27157, 35800
374  Redesignated as Part 774......................................37751
374.2  (a)(1) revised..............................................23607
374.3  (b)(4) added.................................................1616
    (c)(1)(ii) amended.............................................24438
375  Redesignated as Part 775......................................37751
375.1  Table amended..............................................24438,
                                                     25145, 28864, 36272
375.2  (b)(1) amended..............................................24438
375.3  (b) footnote No. 1 amended..................................24438
    (b) amended....................................................25145
    (b) footnote revised...........................................28864
375.6  (c)(3) amended..............................................27158
375.7  Heading and (a) revised; (b) (1), (2), (3), and (4), (c), 
        and (d) amended............................................24438
375.9  Introductory text, (a), (b)(3) heading and text, (c), (e) 
        introductory text, (f), and (g)(1) amended.................24439
375  Supplement No. 1 amended...............................24439, 25145
376  Redesignated as Part 776......................................37751
376.10  (a)(3)(iii)(B) Note 1 amended...............................2583
376.13  (b)(1) revised.............................................18550
377  Redesignated as Part 777......................................37751
378  Redesignated as Part 778......................................37751
378.3  Introductory text amended...................................12669
379  Authority citation revised.............................35460, 35804
    Redesignated as Part 779.......................................37751
379.4  (c) introductory text amended...............................12669
    (f)(3) removed.................................................21990
    (d) introductory text and (1) revised; (d)(20) amended; 
(d)(21) redesignated as (d)(24); new (d) (21), (22), and (23) 
added..............................................................35460
    (d)(20) amended; (d)(21) redesignated as (d)(22); new (d)(21) 
added..............................................................35804
    (f)(1)(i)(Q) revised...........................................36272
379.8  (a)(3) amended..............................................36272
379  Supplement No. 4 amended...............................35461, 35804
    Supplement No. 3 amended.......................................36440
    Supplement No. 4 corrected.....................................38835
385  Redesignated as Part 785......................................37751
385.1  (b)(1) removed; (b)(2) redesignated as (c); (b) revised; 
        interim....................................................28863
385.4  (e)(1) revised; (e)(2) redesignated as (e)(6); new (e) (2) 
        through (5) added..........................................25325
385.6  (a) amended; (b) removed; (c) redesignated as (b)...........12669
386  Redesignated as Part 786......................................37751
386.1  (b)(2)(i) and (c)(2)(i) amended.............................25146

[[Page 679]]

386.2  (d)(2) amended; (d)(3) added; (d)(4) revised; (d)(5) 
        removed....................................................22475
387--390  Redesignated as Parts 787--790...........................37751
390.4  Revised.....................................................20834
391  Redesignated as Part 791......................................37751
391.2  (d)(2)(iii) amended.........................................36008
391  Supplement No. 1 added........................................36008
399  Authority citation revised...................................35460,
                                                            35800, 35804
    Redesignated as Part 799.......................................37751
399.1  Supplement No. 1, Group 0 amended...........................7733,
                                       18272, 26048, 35463, 35800, 36561
    Supplement No. 1, Group 1 amended.............................17021,
                                              26048, 35800, 36561, 36562
    Supplement No. 1, Group 1 corrected............................38835
    Supplement No. 1, Group 2 amended.............................17691,
                                                     26048, 33453, 36561
    Supplement No. 1, Group 3 amended.............................17021,
18272, 26048, 33453, 35463, 35464, 35800-35802, 36561, 36562
    Supplement No. 1, Group 3 corrected............................38835
    Supplement No. 1, Group 4 amended..............................1616,
26048, 33453, 35464, 35465, 35803, 36272, 36561, 36562
    Supplement No. 1, Group 5 amended..............................2583,
2593, 10071, 12669, 16701, 17021, 18273, 21990, 25147, 26048, 27157, 
28865, 33453, 36272, 36440-36448, 36561, 36562
    Supplement No. 1, Group 5 corrected............................3490,
                                                            16254, 38835
    Supplement No. 1, Group 6 amended.............................18273,
                                       26048, 35465, 35804, 36561, 36562
    Supplement No. 1, Group 7 amended...............................108,
17022, 18273, 26048, 35465, 35804, 35805, 36272, 36561, 36562
    Supplement No. 1, Group 8 amended.............................26048,
                                                            35466, 36561
    Supplement No. 1, Group 9 amended.............................17022,
                                                     26048, 33453, 36562
399.2  Supplement No. 1 amended.....................................108,
                                                            12669, 30027
    Supplement No. 1 amended; amendment at 51 FR 37908 eff. 10-27-
86.................................................................35467
Chapter VI
Chapter VI  Chapter removed........................................52115
615  Redesignated as Part 315......................................52115
Chapter VII
Chapter VII  Chapter established; regulations transferred from 
        Chapter III, Subchapter C; nomenclature change.............37751
768--779  Redesignated from Parts 368 through 379 and authority 
        citations revised..........................................37751
771.14  (b) amended................................................45899
771.20  (a) introductory text amended..............................45899
773.3  (f)(3)(v) and (l)(4)(ii) amended; (l)(4)(ii) heading 
        revised....................................................41322
    (d)(4) and (l)(4)(ix) removed..................................43428
773  Supplement No. 1 amended......................................43428
    Supplement No. 8 amended.......................................45899
774.2  (j) amended.................................................45899
775.9  (b) revised.................................................44003
779  Supplement No. 3 amended......................................44855
785--791  Redesignated from Parts 385 through 391 and authority 
        citations revised..........................................37751
785.7  (a) amended.................................................40411
799  Redesignated from Part 399 and authority citation revised.....37751
799.1  Supplement No. 1, Group 5 amended....................40411, 43428
    Supplement No. 1, Group 6 amended..............................40411
    Supplement No. 1, Group 8 amended..............................40411
    Supplement No. 1, Group 0 amended..............................48530
    Supplement No. 1, Group 4 amended..............................51752
799.2  Supplement No. 1 amended....................................43429

[[Page 680]]

                                  1989

15 CFR
                                                                   54 FR
                                                                    Page
Chapter III
350--359 (Subchapter B)  Removed.....................................601
350  Redesignated as Part 700; authority citation revised; 
        nomenclature changes.........................................601
359  Redesignated as Part 705; authority citation revised; 
        nomenclature changes.........................................601
Chapter VII
700--709 (Subchapter A)  Established...............................19355
    Heading added..................................................19355
700  Redesignated from Part 350; authority citation revised; 
        nomenclature changes.........................................601
705  Redesignated from Part 359; authority citation revised; 
        nomenclature changes.........................................601
705.10  (c) revised................................................19355
730--799 (Subchapter C)  Established...............................19355
    Heading added..................................................19355
768.1  (a)(2)(i) heading and introductory text amended.............13055
    (a)(2)(i)(A) amended...........................................13057
769.6  (c)(3) amended..............................................13055
769.8  (b)(2), (c), and undesignated text amended..................13055
769  Supplement No. 15 added.......................................41440
770  Authority citation revised.....................................4005
770.2  Amended..............................................13055, 21937
770.5  Revised.....................................................40861
770.10  Heading, (f) (2), and (3) amended..........................13055
    Heading revised................................................13057
770.11  (d) amended................................................13055
770.13  (m)(2), (4) (i), (ii), and (iii) amended...................13055
770.14  (a)(3)(i) amended..........................................21937
770.15  (a) revised; (c) through (f) redesignated as (d) through 
        (g); new (c) and (h) added; interim.........................4005
771.8  (b) amended.................................................21937
771.14  (d)(3) added...............................................40862
771.18  (b)(1) introductory text, (1)(ii), and (3) revised; 
        interim....................................................19884
771.19  (c) revised................................................27160
771.24  Added......................................................29013
771  Supplement No. 2 added........................................29013
772  Authority citation revised.....................................4005
772.1  (h) revised; interim.........................................4005
772.4  (a)(1), (ii), and (iii) amended..............................6644
772.8  (b)(1) amended...............................................6644
772.10  Revised....................................................42496
772.11  (i)(1) revised; (2) and (3) amended.........................6644
772.12  (a)(3) amended..............................................6644
772.13  (c)(1)(i), and (e)(1) amended...............................6644
772  Supp. 1 revised................................................6644
773.2  (c)(2)(ii)(B) and (C) amended................................6646
    (e)(2)(iii) amended.............................................6644
773.3  (1)(4)(i) amended............................................6644
    (d)(2)(iv), (4), and (1)(4)(ix) removed........................26956
773.7  (d)(1)(ii)(B), (iv)(B), and (2) amended......................6644
773.8  (d)(1) amended..............................................24888
773  Supplement No. 6(c) amended....................................6644
    Supplement No. 5 amended........................................6646
    Supplement No. 5 revised.......................................31813
774  Authority citation revised....................................29012
774.2  (a)(2) revised..............................................18490
    (k) added......................................................28667
    (a)(1) amended.................................................29018
774.3  (a)(2) concluding text and (ii) amended......................6644
    (e)(1)(ii) amended.............................................21938
774.5  (b) introductory text and (1) amended........................6644
774.6  Amended......................................................6644
774  Supplement 1 revised...........................................6645
775.1  Table footnote 1 removed....................................21050
775.3  (b) footnote 1 removed; footnote 1(a) redesignated as 
        footnote 1.................................................21050
    (b), (c)(1), (g)(1)(ii) and (2) (i) and (ii) amended; (c)(3) 
removed............................................................24888
775.9  (e)(3) (i) and (ii) amended..................................6644
    (f)(2) amended.................................................24889
775  Supplement No. 1 amended...............................21050, 24889
776  Authority citation revised....................................52018
776.4  (c)(1) amended...............................................6644
776.9  (b) (1), (2) and (3) amended.................................6644

[[Page 681]]

776.10  (a) revised; (a)(3)(iii)(B) Notes 1 and 2 removed..........35174
776.12  (e)(5) revised.............................................35175
    Heading, introductory text, (a), through (d), (e)(2) (i) 
through (ix), and (3) revised; (e)(2) (x) through (xii) added; (h) 
removed; OMB number; interim.......................................40642
776.18  Amended....................................................35175
776.19  Added; interim..............................................8283
    (a) revised; (b) amended; (g) removed; (f) redesignated as 
(i); new (f), new (g), (h), (j), (k), and (l) added................52018
777  Authority citation revised..............................1350, 13055
777.1  (b), (c) (2), (3), and (4) amended..........................13056
777.2  (d)(1) and (e) amended......................................13056
777.3  (a)(2), (b) introductory text, and (c) introductory text 
        amended....................................................13056
777.4  (c) introductory text, (d)(1) introductory text, (vi), (e), 
        (f) introductory text, (1)(i), (h) introductory text, (i) 
        (1) and (2) amended........................................13056
777.6  (d) introductory text, (1)(i)(B) Note, and (e)(2) 
        introductory text revised; (e)(2) affidavit amended; 
        (d)(1)(x) and (f) added; interim.......................1350-1351
    (a) amended.....................................................6644
    (d) amended....................................................13056
777.7  (a), (d), (e) introductory text, (1), (4), (5), (f)(1), (g) 
        introductory text, (h)(3) and (j) amended..................13056
777.8  (b), (d), (f), (g), (h), (i), (j), and (l) amended..........13056
777.9  (b) introductory text and (c) amended.......................13056
777.15  (d) amended................................................13056
778.2  (a) amended.................................................12594
778.3  Introductory text revised...................................12594
778.6  Removed.....................................................23472
778  Supplement No. 1 amended......................................12594
779.3  Revised.....................................................40646
779.4  (f)(2)(ii)(C) note amended..................................21938
    (d) (2), (23), and (25) correctly designated...................26956
    (d)(25) redesignated as new (d)(26); (d) heading and new (25) 
added..............................................................41056
779.8  (b)(3)(ii) amended..........................................21938
    (b)(3)(i)(D) amended...........................................35175
779  Supplement No. 3 amended.........................8291, 18490, 41056
    Supplement No. 4 corrected (formerly codified at 15 CFR 379) 
                                                                   26956
    Supplement No. 4 amended................................35175, 41057
    Supplement No. 5 added.........................................40648
785.1  (a) amended.................................................16360
785.4  (e) revised; interim.........................................8283
786.1  (c)(2) introductory text....................................13055
786.6  (a)(1)(ii) revised..........................................29018
786.10  Amended....................................................13056
787.12  (a)(1), (b) (1) and (2), and (c) amended...................13056
787.13  (f) (1) and (2), (g)(4) (i) and (ii) amended...............13056
787.14  (a)(1) amended.............................................13056
788  Authority citation revised.....................................4005
788.2  Amended.....................................................13056
788.3  (c) amended.................................................13056
788.17  (a) (2) and (6) and (b) amended............................13056
788.19  (b)(4), (d)(1), and (e)(5) amended; (g) added; interim......4005
    (a)(1), (b)(1), (d)(1), (2) (i), (iii) and (e)(1)(ii) amended 
                                                                   13056
788.20  (c)(1)(i) amended..........................................13056
788.22  (a) introductory text, (b), (c), (d), and (e) amended......13056
788.23  (c) amended; (e) added; interim.............................4006
    Heading, (a), (b), and (c) amended.............................13056
    (a) and (b) amended............................................13057
788  Supplement No. 1 amended...............................13055, 13056
789.1  (b) amended.................................................13057
789.2  (c)(1) amended..............................................13056
    (b)(1) amended.................................................13057
790.1  (h)(3) amended..............................................13057
790.2  (a)(1), (2) (i), (iii), (3) introductory text, (i), (ii), 
        and (iii) amended..........................................13056
791.5  Amended.....................................................13057
799  Regulation at 53 FR 30026 eff. date 8-10-88 (formerly 
        codified as 15 CFR 399).....................................9770

[[Page 682]]

799.1  (a), (f)(1) introductory text and (1)(iv) amended...........13055
    (a), (b), (c) (1) and (2), (d)(1), and (f)(1)(ii) amended......13057
    (h) amended....................................................49970
    Supplement No. 1, Group 0 amended........................8292, 43807
    Supplement No. 1, Group 1 amended........................8292, 41057
    Supplement No. 1, Group 2 amended..............................33877
    Supplement No. 1, Group 3 amended..............................8283,
                                          8292-8293, 18490, 24167, 33877
    Supplement No. 1, Group 4 amended..............................8293,
                          18490, 35176, 40862, 41057-41059, 49970, 53600
    Supplement No. 1, Group 5 amended.........................8283-8284,
8293-8299, 11518, 24889, 30012, 33663, 33877, 35176, 41057, 41059-41066, 
43807-8, 49970, 53600
    Supplement No. 1, Group 6 amended...................8283-8284, 41066
    Supplement No. 1, Group 7 amended.........................8283-8284,
8300, 20783, 35176, 41066-41068, 43808, 52019
    Supplement No. 1, Group 9 amended...............................8285
    Supplement No. 1, Group 0 corrected (formerly codified at 15 
CFR 399)...........................................................26956
    Supplement No. 1, Group 1 corrected (formerly codified at 15 
CFR 399)...........................................................26956
    Supplement No. 1, Group 4 corrected (formerly codified at 15 
CFR 399)...........................................................26956
    Supplement No. 1, Group 5 corrected (formerly codified at 15 
CFR 399)...........................................................26956
    Supplement No. 1, Group 6 corrected (formerly codified at 15 
CFR 399)...........................................................26956
    Supplement No. 1, Group 8 corrected (formerly codified at 15 
CFR 399)...........................................................26956
799.2  Supplement No. 1 amended..............................8285, 52020

                                  1990

15 CFR
                                                                   55 FR
                                                                    Page
Chapter VII
768--799 (Subch. C)  Continued by EO 12720.........................40373
769  Supplement No. 16 added.......................................39265
770  Authority citation revised...................................40824,
                                                     40826, 50316, 51277
770.2  Amended.....................................................40824
770.9  Revised.....................................................40826
770.14  (a) introductory text and (3)(ii) revised..................50316
    (a) introductory text and (3)(ii) revised......................51277
770  Supplement No. 1 amended......................................40826
771  Technical correction..........................................26652
    Authority citation revised....................................40824,
                                       40826, 40828, 49276, 50316, 53490
771.1  Amended.....................................................49276
771.2  (c)(10) amended.............................................25821
    (c)(11) nomenclature change....................................33897
771.4  (b)(3) nomenclature change..................................33897
771.5  (d)(2) nomenclature change..................................33897
    (a), (b) and (c) revised; (f) revised..........................40824
771.7  Removed.....................................................25821
771.14  (b) amended................................................50316
771.16  (b) amended................................................25821
    Introductory text nomenclature change..........................33897
771.17  (e)(4) and (f)(3)(v) removed...............................31576
771.19  (b)(2) introductory text amended...........................40828
771.22  Revised....................................................49276
771.23  (b) and (c) revised; interim................................6792
771.24  (a) and (c) revised........................................25082
    (a) and (b) amended............................................53490
771.25  Added; interim.............................................25085
    (d) and (e) corrected..........................................28865
771.26  Added; interim.............................................26654
    Removed........................................................40826
771  Supplement No. 2 removed......................................25083
772  Authority citation revised...................................46505,
                                                            49276, 50316
772.4  (b)(2)(v) added.............................................31823
    (a)(1)(iv) added; interim; eff. 2-4-91.........................46505
772.8  (c)(1) amended..............................................49278

[[Page 683]]

772.11  (k) and (l) revised; interim; eff. 2-4-91..................46505
    (d)(3) amended.................................................50316
772.12  Heading, (a)(2), (b)(2)(i) and (ii) revised; interim; eff. 
        2-4-91.....................................................46506
772  Supplement No. 1 amended; interim; eff. 2-4-91................46506
773  Authority citation revised...................................47051,
                                                     49276, 51277, 53490
773.1  (a)(1) introductory text, (i), (iv), (2)(i), (2)(ii) 
        nomenclature change........................................33897
773.2  (b)(6) through (8) redesignated as (b)(7) through (9); new 
        (b)(6) added; interim......................................25823
    (b) introductory text amended..................................33897
    (f)(1) revised; interim; eff. 2-7-91...........................47051
773.3  (b)(1)(iv) through (vi) redesignated as (b)(1)(v) through 
        (vii); new (b)(1)(iv) added; interim.......................25823
    (d)(3)(ii)(E)(3) introductory text, (i), (ii), (iii) 
nomenclature change................................................33897
    (h)(1) revised; interim; eff. 2-7-91...........................47051
    (j)(5) amended.................................................49278
773.7  (b)(5) through (7) redesignated as (b)(6) through (8); new 
        (b)(5) added; interim......................................25824
    (b)(7) nomenclature change.....................................33897
    (e) and (k) introductory text revised; interim; eff. 2-7-91....47051
773  Supplement No. 1 amended; interim (ECCN 1355)..........25822, 25824
    Supplement No. 1 amended (ECCN 1075, 1091, 1099, 1206, 1312, 
1522, 1555, 1565, 1672, 1710, 1715, 1781)..........................35839
    Supplement No. 1 amended (ECCN 1565)...........................53490
    Supplement No. 4 amended; interim (ECCN 1355A, 4585B, 4755B) 
                                                                   25824
    Supplement No. 4 amended (ECCN 1355A, 1746A, 1757A)............35839
    Supplement No. 8 amended................................51278, 53490
774  Authority citation revised...................................40826,
                                                     46505, 51277, 53490
774.2  (a)(1) amended..............................................25821
    (l) added; interim.............................................26654
    (a)(4) revised.................................................31576
    (k) introductory text amended..................................53490
    (l) removed....................................................40826
    Footnotes 4 and 5 redesignated as footnotes 5 and 6; (a)(1) 
revised............................................................49278
    (j) amended....................................................51278
774.3  (a)(1) revised..............................................22893
    (a)(3), (b)(3), and (c)(1) revised; interim; eff. 2-4-91.......46506
774.4  Removed.....................................................22893
774.5  (b)(2) amended; interim; eff. 2-4-91........................46507
775  Authority citation revised....................................46505
775.1  Table revised...............................................10050
    Table amended...........................................35896, 36611
    Effective date corrected.......................................38190
    Introductory text designated as (b) and amended; concluding 
text designated as (c); (a) added; interim; eff. 2-4-91............46507
775.2  Heading, (a), (c), and (d)(4) revised; (e) introductory 
        text and (6) amended; (k) added; interim; eff. 2-4-91......46507
775.3  (b) amended.................................................10050
    (b)(3) amended.................................................35896
    (b) amended....................................................36611
    Effective date corrected.......................................38190
    (a)(1), (g), (h) introductory text and (3) through (5) 
revised; (h)(1) amended; interim; eff. 2-4-91......................46508
775.4  (a) revised; interim; eff. 2-4-91...........................46509
775.5  (a) revised; interim; eff. 2-4-91...........................46509
775.7  (a), (b)(1), (3) and (4) revised; interim; eff. 2-4-91......46510
775.8  (a) and (b) revised; interim; eff. 2-4-91...................46511
775.9  (c) amended; (e) and (f) revised; interim; eff. 2-4-91......46511
    (g)(1) introductory text, (2)(ii), (iii)(G) and (H) revised; 
(g)(2)(iii) introductory text republished; interim; eff. 2-4-91....46512

[[Page 684]]

775  Supplement No. 1 amended......................................10050
    Supplement No. 1 amended................................35896, 36611
    Supplement No. 1 effective date corrected......................38190
776.3  Revised.....................................................36272
776.9  (c) removed.................................................10611
776.18  Introductory text amended; (b)(3) added....................13122
    Introductory text revised......................................26657
    Introductory text amended...............................35829, 35839
776.19  (f), (g), and (h) amended; interim.........................10051
777.6  (d)(1)(i)(B) Note, (vi) introductory text (vii) 
        introductory text, and (viii) introductory text amended; 
        (e)(2) and (f)(4)(i) removed; (f)(6) added; (f)(1) 
        revised; (e)(3), (4), and (5), (f)(4)(ii) and (iii) 
        redesignated as (e)(2), (3), and (4), (f)(4)(i) and (ii) 
                                                                   10053
    (d)(2) amended.................................................25821
778  Authority citation revised....................................40826
    Supplement No. 4 added.........................................26657
    Supplement No. 2 amended.......................................40826
779  Authority citation revised....................................40826
779.4  (f)(1) introductory text revised; (f)(1)(i)(R) removed.......3205
    (f) introductory text added; interim...........................26654
    (d)(11) and (f)(1)(i)(Q) amended; (d)(23) removed; (d)(24) 
through (26) redesignated as (d)(23) through (25)..................26657
    (e) heading, (1), and (2) nomenclature change..................33897
    (d)(10) and (12) removed; (d)(11) redesignated as new (d)(10) 
and (d)(13) through (25) redesignated as new (d)(11) through 
(d)(23)............................................................35839
    (f) introductory text removed..................................40826
779.8  (b)(3)(i)(C) amended........................................26657
779  Supplement No. 2 amended (ECCN 1118, 2118)....................13123
    Supplement No. 3 amended.......................................26657
    Supplement No. 3 amended.......................................35829
    Supplement No. 3 amended.......................................35839
    Supplement No. 4 amended (ECCN 1118A, 2118A, 4118B, 1133A,)....13123
    Supplement No. 4 amended; interim (ECCN 1529A, 1568A)..........25086
    Supplement No. 4 amended.......................................26659
    Supplement No. 4 amended (ECCN 4531B, 1564A, 4564B, 1568A).....35829
    Supplement No. 4 amended (ECCN 1522A)..........................35840
785  Authority citation revised....................................40826
785.2  (e) removed..................................................3205
    (a)(1) amended.................................................40826
785.4  (a) heading, introductory text, (1) through (6), (9)(iii), 
        (iv)(B), and (13) nomenclature change; (a)(14) added.......33897
786  Technical correction..........................................26652
    Authority citation revised..............................40826, 49276
786.1  (c)(2)(i)...................................................31577
786.3  (h) revised; interim........................................47049
786.6  (a)(1)(ii) and (c)(2) revised; (a)(2) amended; interim......25086
    (a)(1)(ii) and (c)(2) revised; interim.........................26654
    (a)(1) heading, introductory text, (2), and (c) introductory 
text nomenclature change...........................................33897
    (a)(1)(ii) and (c)(2) revised..................................40826
    (a)(1)(ii) and (2) amended.....................................49278
787  Authority citation revised.............................40826, 46505
787.5  (a)(1) introductory text revised; (a)(2) and (3) amended....31177
787.13  (c) amended; interim................................25086, 26654
    (c) amended....................................................40827
    (c) amended; (e) revised; interim; eff. 2-4-91.................46512
787.15  Added......................................................32388
788.1  Amended; nomenclature change................................31177
788.3  (a)(1) footnote No. 2 amended...............................31177
788.5  Nomenclature change.........................................31177
788.6  (b) amended.................................................31177
788.16  (b)(2) amended; (c) and (e) nomenclature change............31177
788.19  (e)(4) and (5) nomenclature change.........................31177
791  Revised.......................................................32900

[[Page 685]]

    Authority citation revised.....................................40826
791.1  (d) amended.................................................40827
    Authority citation revised..............................40826, 49276
799  Authority citation revised.............................40826, 49276
799.1  (f)(4)(iii) amended..........................................3205
    Technical correction...........................................25773
    (f)(1)(iii) revised............................................31823
    Supplement No. 1, Group 0 amended; interim (ECCN 2018A, 1091A, 
1093A).............................................................25086
    Supplement No. 1, Group 0 amended; interim (ECCN 2018A, 1091A)
                                                                   26655
    Supplement No. 1, Group 0 amended; interim (ECCN 1075A, 1093A, 
1129A).............................................................26659
    Supplement No. 1, Group 0 amended (ECCN 1091A).................26659
    Supplement No. 1, Group 0 amended (ECCN 5091F, 1099A)..........26663
    Supplement No. 1, Group 0 nomenclature change (ECCN 2018A, 
6099G)......................................................33897, 33898
    Supplement No. 1, Group 0 amended (ECCN 1091A, 5091F)..........35830
    Supplement No. 1, Group 0 amended (ECCN 1081A, 1091A)..........35840
    Supplement No. 1, Group 0 amended (ECCN 2018A).................40827
    Supplement No. 1, Group 1 amended (ECCN 1118A, 2118A, 4118B) 
                                                                   13123
    Supplement No. 1, Group 1 amended; interim (ECCN 2118A)........25086
    Supplement No. 1, Group 1 amended; interim (ECCN 2118A, 2120, 
3131A).............................................................26655
    Supplement No. 1, Group 1 nomenclature change (ECCN 2118A, 
6199G)......................................................33897, 33898
    Supplement No. 1, Group 1 amended (ECCN 2118A, 2120A, 3131A) 
                                                                   40827
    Supplement No. 1, Group 2 amended; interim (ECCN 3261A).........6793
    Supplement No. 1, Group 2 amended; interim (ECCN 3261A)........26655
    Supplement No. 1, Group 2 amended (ECCN 1129A, 1203A, 1206A) 
                                                                   26659
    Supplement No. 1, Group 2 nomenclature change (ECCN 6294F, 
6299G)......................................................33897, 33898
    Supplement No. 1, Group 2 amended (ECCN 1205A).................35840
    Supplement No. 1, Group 2 amended (ECCN 3261A).................40827
    Supplement No. 1, Group 3 amended (ECCN 6398G)..................3205
    Supplement No. 1, Group 3 amended; interim (ECCN 1312A, 1353A, 
1361A)..............................................................6793
    Supplement No. 1, Group 3 amended (ECCN 1355A).................25083
    Supplement No. 1, Group 3 amended (ECCN 1302A, 3336A, 1355A, 
1357A, 1362A, 1385A, 1388A)........................................25086
    Supplement No. 1, Group 3 amended; interim (ECCN 1361A)........25087
    Supplement No. 1, Group 3 amended; interim (ECCN 1302A, 2317A, 
2319A, 3336A, 1355A, 1357A, 1385A, 1361A, 1362A, 3362A, 3363A, 
1388A).............................................................26655
    Supplement No. 1, Group 3 amended (ECCN 1305A, 1354A, 1356A, 
1359A, 1360A, 1365A, 1372A)........................................26659
    Supplement No. 1, Group 3 amended (ECCN 4302B,1312A)...........26663
    Supplement No. 1, Group 3 amended (ECCN 5312F, 1353A, 1358A, 
1370A, 1391A,......................................................26664
    Supplement No. 1, Group 3 corrected (ECCN 1385A)...............27760
    Supplement No. 1, Group 3 nomenclature change (ECCN 2317A, 
6399G)......................................................33897, 33898
    Supplement No. 1, Group 3 nomenclature change (ECCN 2317A, 
6394F, 6399G)...............................................33897, 33898
    Supplement No. 1, Group 3 amended (ECCN 5312F, 1364A)..........35830
    Supplement No. 1, Group 3 amended (ECCN 1301A).................35841
    Supplement No. 1, Group 3 amended (ECCN 1310A).................35841

[[Page 686]]

    Supplement No. 1, Group 3 amended (ECCN 1312A, 1355A)..........35841
    Supplement No. 1, Group 3 amended (ECCN 2317A, 2319A, 3336A, 
1355A, 1357A, 1361A, 1362A, 3362A, 3363A, 1385A, 1388A, )..........40827
    Supplement No. 1, Group 4 amended; interim (ECCN 1460A).........6793
    Supplement No. 1, Group 4 amended; interim (ECCN 1418A, 1485A)
                                                                   25086
    Supplement No. 1, Group 4 amended; interim (ECCN 1417A, 1460A)
                                                                   25087
    Supplement No. 1, Group 4 amended; interim (ECCN 2406A, 2409A, 
2410A, 2414A, 1417A, 1418A, 2418A, 1460A, 2460A, 1485A)............26655
    Supplement No. 1, Group 4 amended (ECCN 1425A).................26659
    Supplement No. 1, Group 4 nomenclature change (ECCN 2406A, 
3410A, 1460A, 2460A, 5460F, 6460F, 6490F, 6494F, 6498F, 6499G)....33897, 
                                                                   33898
    Supplement No. 1, Group 4 amended (ECCN 1460A).................35830
    Supplement No. 1, Group 4 amended (ECCN 2406A, 2409A, 2410A, 
2414A, 1417A, 1418A, 2418A, 1460A, 2460A, 1485A)...................40827
    Supplement No. 1, Group 5 corrected (ECCN 1567A)................2281
    Supplement No. 1, Group 5 corrected (ECCN 1565A)..........6726, 7867
    Supplement No. 1, Group 5 amended; interim (ECCN 1501A, 1510A, 
1526A, 1531A, 1532A, 1534A, 1537A, 1545A, 1555A, 1558A, 1559A, 
1564A, 1567A, 1572A, 1585A, 1586A)..................................6793
    Supplement No. 1, Group 5 amended (ECCN 1565A).................12636
    Supplement No. 1, Group 5 amended (ECCN 1564A).................19725
    Supplement No. 1, Group 5 amended (ECCN 1565A, 1567A)..........25083
    Supplement No. 1, Group 5 amended; interim (ECCN 1510A, 1518A, 
1553A).............................................................25086
    Supplement No. 1, Group 5 amended; interim (ECCN 1501A, 1516A, 
1517A, 1522A)......................................................25087
    Supplement No. 1, Group 5 amended; interim (ECCN 1527A, 1529A, 
1531A, 1533A, 1564A, 1565A)........................................25088
    Supplement No. 1, Group 5 amended (ECCN 1568A, 1585A, 1587A, 
1595A).............................................................25089
    Supplement No. 1, Group 5 amended; interim (ECCN 1501A, 1510A, 
1516A, 1517A, 1518A, 1522A, 1527A, 1529A, 1531A, 1533A, 1553A, 
1564A 1565A, 1568A, 1585A, 1587A, 1595A)...........................26655
    Supplement No. 1, Group 5 amended (ECCN 1514A, 1521A, 1532A, 
1544A, 1545A, 1547A, 1559A, 1588A).................................26659
    Supplement No. 1, Group 5 amended (ECCN 1516A, 1518A, 1519A, 
1520A, 1526A, 1527A, 1529A, 4529B, 1531A, 4531B, 1533A, 1537A, 
1541A, 1542A, 5542F, 5559F, 1565A, 6565G, 1567A, 1568A, 4568B, 
5570F, 5584F, 1585A, 4587A)..................................26665-26681
    Supplement No. 1, Group 5 nomenclature change (ECCN 1510A, 
1565A, 6565G, 1567A, 5585C, 6594F, 6598F, 6599G)...................33898
    Supplement No. 1, Group 5 amended (ECCN 1516A, 1519A, 1520A, 
1529A, 1531A, 4531B, 5541F, 5542F, 1558A, 5559F, 1564A, 4564B, 
1565A, 1567A, 1568A, 4568B, 5570F, 5584F)....................35830-35835
    Supplement No. 1, Group 5 amended (ECCN 1510A, 1522A, 1531A, 
1533A, 1548A, 1555A, 1560A, 1561A, 1565A, 1572A, 1573A, 1574A) 
                                                             35844-35852
    Supplement No. 1, Group 5 amended (ECCN 1501A, 1510A, 1516A, 
1517A, 1527A, 1529A, 1531A, 1533A, 1553A, 1564A, 1565A, 1585A, 
1595A).............................................................40827
    Supplement No. 1, Group 6 amended; interim (ECCN 3604A, 3605A)
                                                                    6793

[[Page 687]]

    Supplement No. 1, Group 6 amended; interim (ECCN 3604A, 3609A)
                                                                   25086
    Supplement No. 1, Group 6 amended; interim (ECCN 2603A, 3604A, 
3605A, 3607A, 3608A, 3609A, 2616A).................................26655
    Supplement No. 1, Group 6 amended; interim (ECCN 1635A)........26659
    Supplement No. 1, Group 6 nomenclature change (ECCN 2603A, 
4699G, 6699G)......................................................33898
    Supplement No. 1, Group 6 amended (ECCN 3604A, 3605A, 1631A) 
                                                            35835, 35836
    Supplement No. 1, Group 6 amended (ECCN 1648A, 1661A)..........35841
    Supplement No. 1, Group 6 amended (ECCN 1610A, 1672A)..........35852
    Supplement No. 1, Group 6 amended (ECCN 2603A, 3604A, 3605A, 
3607A, 3608A, 3609A, 2616A)........................................40827
    Supplement No. 1, Group 7 amended; interim (ECCN 1767A).........6793
    Supplement No. 1, Group 7 amended; interim (ECCN 2708A).........6793
    Supplement No. 1, Group 7 amended; interim (ECCN 1763A).........6794
    Supplement No. 1, Group 7 amended; interim (ECCN 1757A)........14090
    Supplement No. 1, Group 7 corrected (ECCN 1757A)...............17530
    Supplement No. 1, Group 7 amended (ECCN 1715A, 1746A, 1763A) 
                                                                   25089
    Supplement No. 1, Group 7 corrected (ECCN 1763A)...............25925
    Supplement No. 1, Group 7 amended; interim (ECCN 2708A, 3709A, 
3711A, 1715A, 1746A, 1763A, )......................................26655
    Supplement No. 1, Group 7 amended (ECCN 1734A, 1749A, 1760A) 
                                                                   26659
    Supplement No. 1, Group 7 amended; interim (ECCN 1763A)........26682
    Supplement No. 1, Group 7 nomenclature change (ECCN 4781B, 
4782B, 4783B, 4784B, 5798F, 6799G).................................33898
    Supplement No. 1, Group 7 amended (ECCN 3712A).................35836
    Supplement No. 1, Group 7 amended (ECCN 1702A, 1755A, 1781A) 
                                                                   35841
    Supplement No. 1, Group 7 amended (ECCN 1710A, 1715A, 1746A, 
1754A, 1757A, 1763A).........................................35853-35856
    Supplement No. 1, Group 7 amended (ECCN 2708A, 3709A, 3711A, 
1715A, 1746A, 1763A)...............................................40827
    Supplement No. 1, Group 8 nomenclature change (ECCN 6899G).....33898
    Supplement No. 1, Group 9 amended (ECCN 4997B, 4998B)..........11362
    Supplement No. 1, Group 9 amended; interim (ECCN 2901A, 2913A)
                                                                   26655
    Supplement No. 1, Group 9 nomenclature change (ECCN 2901A, 
6994F, 5998B, 6998F, 6999G)........................................33898
    Supplement No. 1, Group 9 amended (ECCN 2913A).................34904
    Supplement No. 1, Group 9 amended (ECCN 2901A, 2913A)..........40827
799.2  Amended.....................................................11362
    Supplement No. 1 amended.......................................26682
    Supplement No. 1 amended.......................................49278
    Supplement No. 2 amended (ECCN 1565A)..........................25824

                                  1991

15 CFR
                                                                   56 FR
                                                                    Page
Chapter III
303.2  (a)(13) revised..............................................9621
303.12  (d) removed.................................................9621
303.13  (a) amended.................................................9622
303.14  (a)(1)(i) and (c) revised; (b)(3) and (e) amended...........9622
Chapter IV
400  Revised.......................................................50798
400.1  (c) corrected...............................................56544
400.28  (a)(2) and (3) eff. 3-9-92.................................50798

[[Page 688]]

    (a)(2) and (3) regulation at 56 FR 50798 effective date 
corrected to 4-6-92................................................56544
    (a)(8) corrected...............................................65833
400.31  (a) and (b)(2) corrected...................................56544
400.33  (b)(2) eff. 3-9-92.........................................50798
    (b)(2) regulation at 56 FR 50798 effective date corrected to 
4-6-92.............................................................56544
Chapter VII
700  Authority citation revised.....................................8109
    Schedule I amended..............................................8109
768  Authority citation revised....................................64479
    Technical correction...........................................65930
768.2  (a)(9)(iii) amended.........................................64479
769  Authority citation revised.....................................8274
    Supplement No. 15 amended.......................................8274
770  Authority citation revised................8274, 10761, 13265, 19017
770.2  Amended; interim............................................10761
770.11  (a)(2)(i)(B) amended........................................8274
770.12  Amended.....................................................8274
770.14  (a) introductory text and (3)(ii) amended..................13265
770  Supplement No. 1 amended......................................19017
771  Authority citation revised....................................1485,
                          8274, 13265, 23219, 34021, 40496, 51834, 64479
    Technical correction...........................................65930
771.2  (b)(2)(ii) amended...........................................8274
    (c) introductory text revised; (c)(13) and (14) added; interim
                                                                   40497
771.8  Removed......................................................1485
771.13  (a)(1) and (2) revised......................................8274
771.14  (b) amended................................................13266
771.20  Removed.....................................................1485
771.24  (c) amended.................................................1485
    (a) and (b) amended............................................13266
    (d) removed....................................................64479
771.25  Heading, (a), (b), (d), (e)(1) and (f)(2) amended..........23219
    (b) and (f)(2) amended.........................................51834
771.26  Added......................................................34021
771  Supplement No. 1 removed.......................................1485
772  Authority citation revised....................................3029,
                                                      8274, 55069, 64479
    Technical correction...........................................65930
772.2  (b)(7) added; interim; eff. 1-22-92.........................55069
772.4  (i)(1) introductory text, (i), (ii), (2), and (3) amended 
                                                                    8274
772.8  (d)(2) amended...............................................8274
    (a)(3) revised.................................................64479
772.9  (a) and (b) revised..........................................3029
772.11  (g)(1)(ii) amended..........................................8274
    (h)(2)(i) and (k)(1) amended...................................64479
773  Authority citation revised....................................8274,
                                              13265, 40496, 42653, 64479
    Technical correction...........................................65930
773.2  (b)(6) amended; interim.....................................40497
773.3  (b)(1)(iv) amended; interim.................................40497
    Heading, (h)(2) and (j)(2)(ii) revised; (h)(1) amended; (h)(3) 
removed............................................................64479
773.7  (b)(5) amended; interim.....................................40497
    (d)(1)(iii), (e) and (k) introductory text amended.............64480
773.8  (d)(1) amended..............................................64480
773.9  Added; interim; eff. 1-22-92................................55070
773  Supplement No. 1 amended.......................................8275
    Supplement No. 4 amended (ECCN 1584, 5584F)....................42653
    Supplement No. 8 amended.......................................13266
774  Authority citation revised....................................1485,
                            1487, 3029, 8274, 13265, 34021, 51834, 64479
    Technical correction...........................................65930
774.2  (a)(1) amended...............................................1485
    (k)(3) removed..................................................1487
    (j), (k) introductory text and (2)(i) amended..................13266
    (l) added......................................................34022
    (k) introductory text and (2)(i) amended.......................51834
    (k)(2) revised.................................................64480
774.3  (b)(1) and (2) revised.......................................3029
    (b)(4) amended..................................................8275
    (c)(1)(i)(B) amended; (c)(1)(ii) revised; (d) removed; (e) 
redesignated as (d)................................................64480
775  Authority citation revised.............................19017, 64479
    Technical correction...........................................65930
775.1  (b) table amended...........................................19017
    (b) table amended..............................................64480

[[Page 689]]

775.2  (b)(1) revised; (b)(2), (9) note, (d)(1) through (3), (e) 
        introductory text, (2) through (7), (g) through (i), (j) 
        heading and (1) through (3) amended........................19017
    (b)(1) amended.................................................64480
775.3  (b) republished in part; (b) footnote 1 revised; (e) 
        concluding text, (f) heading, (1), (2), and (3) amended....19017
    (b) amended....................................................25022
    (a)(2) note added; (b) amended; footnote 1 revised.............64480
775.4  (c) concluding text amended.................................19017
    Removed........................................................64480
775.5  (c) amended.................................................19017
775.6  (c) heading and introductory text amended...................19017
775.8  Redesignated as 775.9; new 775.8 added......................19017
775.9  (a) amended; 775.9 redesignated as 775.10; new 775.9 
        redesignated from 775.8....................................19017
775.10  Redesignated from 775.9....................................19017
    Introductory text, (a), (c), (e) introductory text, (f)(1) 
introductory text, (2)(i) and (g)(1) introductory text amended; 
(b)(2) heading and introductory text revised.......................19018
    Introductory text, (a), (b)(3), (c), (e) introductory text, 
(f)(1) introductory text, (2)(i) introductory text, (ii) and 
(g)(1) introductory text amended; (f)(2)(i)(b) redesignated as 
(f)(2)(i)(B).......................................................64480
775  Supplement No. 1 amended........................19018, 25022, 64480
776  Authority citation revised.................1485, 2677, 10761, 40496
776.12  (a)(1)(ii)  amended.........................................1485
776.14  (a) amended................................................25023
776.16  (a) amended................................................25023
776.18  Heading and introductory text revised......................29426
    Removed; interim...............................................40497
776.19  (h) through (l) redesignated as (i) through (m); new (h) 
        added.......................................................2677
    (a)(ii), (i), and (l) removed; (a)(i), (iii), (f), (g), (h), 
(j), (k) and (m) redesignated as (a)(1), (2), (g), (h), (i), (l), 
(m) and (n); (b) and (e) revised; new (f), (j), and (k) added; 
interim............................................................10757
    Removed; interim...............................................40497
776.20  Added; interim.............................................10761
777  Authority citation revised..............................8274, 23220
777.1  (c)(3) amended...............................................8275
777.6  (g) through (i) redesignated as (h) through (j); (d)(1)(xi) 
        and new (g) added; interim.................................23220
778  Authority citation revised....................................10761
    Heading and authority citation revised; interim................40497
778.1  Revised; interim............................................40497
778.2  (a) amended; interim........................................40497
778.3  Introductory text amended; interim..........................40497
778.6  Added; interim..............................................40497
778.7  Revised; interim............................................40498
778.8  Revised; interim............................................40498
778.9  Added; interim..............................................40500
778.10  Added; interim.............................................40500
778  Supplement No. 5 added; interim...............................10762
    Supplement No. 6 added; interim................................40501
779  Authority citation revised................1487, 19017, 29426, 40496
779.4  (d)(17) introductory text revised...........................19019
    (h) amended....................................................25023
    (d)(18) amended; (j) added; interim............................40501
    (f)(1)(ii) through (2)(v)(C) correctly added; CFR correction 
                                                                   49137
779.5  (a)(1) and (2) revised; (a)(3) added........................19019
779.6  (a)(2) and (b) revised.......................................1487
779.8  (c)(2) and (3) revised.......................................1487
779  Supplement No. 4 amended (ECCN 4133B, 4302B, 1361A, 1362A, 
        1460A, 1485A, 1548A, 1561A, 1564A, 1733A, 1763A)...........29426
    Supplement No. 4 amended; interim (ECCN 1501A, 4518B, 1531A, 
1565A, 1568B)......................................................40501
785  Authority citation revised....................................19017

[[Page 690]]

785.2  (a)(1) amended; (c) added...................................19018
785.4  (g)(2) and (3) amended......................................25023
786  Authority citation revised...............................1485, 8274
786.2  (d)(1), (d)(1) footnote 3 and (d)(2) removed; (d)(3) and 
        (4) redesignated as (d)(1) and (2) and revised; OMB number
                                                                    8275
786.3  (p)(1) footnote 4 redesignated as footnote 3; (r)(5) 
        through (7) removed; (r)(8) through (10) redesignated as 
        (r)(5) through (7)..........................................8275
786.6  (a)(1)(ii)  amended..........................................1485
    (d)(1) footnote 5 redesignated as footnote 4; (d)(2)(i)(B) 
footnote 6 and (d)(3) footnote 6 redesignated as footnote 5.........8275
787  Authority citation revised.............................55069, 64479
    Technical correction...........................................65930
787.13  (c) amended; interim; eff. 1-22-92.........................55072
    (e)(2)(ii)(B) and (C) revised..................................64481
799  Authority citation revised....................................1487,
2677, 5650, 8274, 10761, 19017, 21075, 25024, 29426, 40496, 42653, 
42826, 66559
799.1  (f)(3)(i) amended............................................1486
    (m) amended....................................................25023
    Supplement No. 1, Group 0 amended (ECCN 1091A).................19019
    Supplement No. 1, Group 0 amended (ECCN 2018A).................29427
    Supplement No. 1, Group 0 amended (ECCN 4075B).................42653
    Supplement No. 1, Group 0 amended (ECCN 1091A, 5091F, 4094B, 
1099A, 4099B)......................................................42654
    Supplement No. 1, Group 1 amended; interim (ECCN 5129F, 5132F, 
5133F, 5134F, 5135F, 5140F, 5141F, 5165F, 5167F, 5170F).....10762, 10763
    Supplement No. 1, Group 1 amended (ECCN 2118A, 4118B, 4131B, 
4133B).............................................................29427
    Supplement No. 1, Group 1 amended (ECCN 1110A).................42654
    Supplement No. 1, Group 1 amended (ECCN 2120A, 4127B, 1131A, 
3131A).............................................................42655
    Supplement No. 1, Group 2 amended; interim (ECCN 4203B)........21075
    Supplement No. 1, Group 2 amended (ECCN 4203B, 1205A, 3261A) 
                                                                   42655
    Supplement No. 1, Group 2 amended (ECCN 4261B).................42656
    Supplement No. 1, Group 3 amended (ECCN 1361A)..................1486
    Supplement No. 1, Group 3 amended (ECCN 4302B, 1355A, 1357A, 
1361A, 1388A)......................................................19019
    Supplement No. 1, Group 3 amended; interim (ECCN 1357A)........25024
    Supplement No. 1, Group 3 amended (ECCN 4302B, 1385A)..........29427
    Supplement No. 1, Group 3 amended (ECCN 1361A, 1362A)..........29428
    Supplement No. 1, Group 3 amended (ECCN 1312A, 5312F, 4312B, 
3336A, 4337B, 1357A)...............................................42656
    Supplement No. 1, Group 3 amended (ECCN 4360B, 1362A, 4362B, 
3363A, 4363B)......................................................42657
    Supplement No. 1, Group 3 amended (ECCN 1370A, 1391A)..........42658
    Supplement No. 1, Group 4 amended (ECCN 1460A)..................1486
    Supplement No. 1, Group 4 amended (ECCN 1418A).................19019
    Supplement No. 1, Group 4 amended (ECCN 1417A, 1460A, 1485A) 
                                                                   19020
    Supplement No. 1, Group 4 amended (ECCN 1485A).................29428
    Supplement No. 1, Group 5 amended (ECCN 1565A)..................1486
    Supplement No. 1, Group 5 amended; interim (ECCN 1564A).........5650
    Supplement No. 1, Group 5 amended (ECCN 4518B, 4587B)..........19019
    Supplement No. 1, Group 5 amended (ECCN 1501A, 1510A, 1519A, 
1522A).............................................................19020
    Supplement No. 1, Group 5 amended (ECCN 1527A, 1565A, 1568A, 
1585A).............................................................19021

[[Page 691]]

    Supplement No. 1, Group 5 amended (ECCN 1531A, 1568A, 4568B, 
1595A).............................................................29427
    Supplement No. 1, Group 5 amended (ECCN 1501A).................29428
    Supplement No. 1, Group 5 amended (ECCN 1516A, 1517A, 4518B, 
1519A, 1529A, 4529B, 1533A)........................................29429
    Supplement No. 1, Group 5 amended (ECCN 1548A, 1561A, 1564A, 
4564B, 4587B)......................................................29430
    Supplement No. 1, Group 5 amended (ECCN 1502A, 1522A, 1529A, 
5529F, 4530B)......................................................42658
    Supplement No. 1, Group 5 amended (ECCN 1534A, 4538B, 5539F, 
4540B, 5541F, 5542F, 4542B, 4543B).................................42659
    Supplement No. 1, Group 5 amended (ECCN 4546B, 1549A, 1555A, 
5559F, 1560A, 5560F, 1567A)........................................42660
    Supplement No. 1, Group 5 amended (ECCN 1568A, 4569B, 5570F, 
5573F, 5584F, 1585A, 4585B)........................................42661
    Supplement No. 1, Group 5 amended (ECCN 5585C, 4592B, 5592F) 
                                                                   42662
    Supplement No. 1, Group 6 amended (ECCN 3604A).................19021
    Supplement No. 1, Group 6 amended (ECCN 3604A, 4610B, 5611F, 
5612F, 4613B)......................................................42662
    Supplement No. 1, Group 6 amended (ECCN 4635B, 4675B, 4676B, 
4677B, 4678B, 5678F, 4698B)........................................42663
    Supplement No. 1, Group 7 amended (ECCN 4798B, 5798F)...........2677
    Supplement No. 1, Group 7 amended; interim (ECCN 4798B, 5798F)
                                                                   10758
    Supplement No. 1, Group 7 amended; interim (ECCN 5797F)........10763
    Supplement No. 1, Group 7 amended; interim (ECCN 1757A)........11652
    Supplement No. 1, Group 7 amended (ECCN 1763A).................19021
    Supplement No. 1, Group 7 amended (ECCN 1746A).................29427
    Supplement No. 1, Group 7 amended (ECCN 1715A).................29430
    Supplement No. 1, Group 7 amended (ECCN 1733A, 1763A)..........29431
    Supplement No. 1, Group 7 amended (ECCN 3709A, 3711A, 4711B, 
1715A).............................................................42663
    Supplement No. 1, Group 7 amended (ECCN 4715B, 4720B, 4721B, 
1763A, 5763F)......................................................42664
    Supplement No. 1, Group 7 amended; interim (ECCN 4798B)........40502
    Supplement No. 1, Group 9 amended; interim (ECCN 5997F)........10763
    Supplement No. 1 amended; interim..............................40501
    Revised; interim...............................................42826
    (b)(1) amended; interim........................................66559
    Corrected; interim.............................................67171
    Supplement No. 1, Category 1 amended; interim (ECCN 1A22B, 
1A44B, 1A45B, 1A46B, 1B01A, 1B18A, 1B21B, 1B28B, 1C01A, 1C02A, 
1C21B, 1C22B, 1C27B, 1C50E)........................................66559
    Supplement No. 1, Category 1 amended; interim (ECCN 1C07A, 
1C10A).............................................................66560
    Supplement No. 1, Category 2 amended; interim (ECCN 2B41E, 
2B24B, 2B46B)......................................................66559
    Supplement No. 1, Category 2 amended; interim (ECCN 2B01A, 
2B04A, 2B06A)......................................................66560
    Supplement No. 1, Category 3; interim (ECCN 3A41E, 3A42E, 
3A43B).............................................................66559
    Supplement No. 1, Category 3 amended; interim (ECCN 3A01A).....66560
    Supplement No. 1, Category 4 amended; interim (ECCN 4A21B).....66559
    Supplement No. 1, Category 4 amended; interim (ECCN 4A01A).....66560
    Supplement No. 1, Category 6 amended; interim (6A22B, 6A42B, 
6A43B, 6A28B, 6A29B, 6A30B, 6D21B, 6D22B, 6E21B, 6E22B)............66559

[[Page 692]]

    Supplement No. 1, Category 6 amended; interim (ECCN 6A02A, 
6A03A, 6A08A, 6D01A, 6D02A, 6E01A, 6E02A, 6E03A)...................66560
    Supplement No. 1, Category 7 amended; interim (ECCN 7A21B, 
7A22B, 7A23B, 7A24B, 7A25B, 7A26B, 7B22B, 7E21B, 7E22B)............66559
    Supplement No. 1, Category 7 amended; interim (ECCN 7A01A, 
7A02A, 7A03A, 7A04A, 7A05A, 7A06A).................................66560
    Supplement No. 1, Category 7 amended; interim (ECCN 7B02A, 
7E01A, 7E02A)......................................................66561
    Supplement No. 1, Category 9 amended; interim (ECCN 9A21B, 
9A22B, 9B21B, 9B23B, 9B24B, 9B25B, 9B26B, 9B27B, 9E21B)............66559
    Supplement No. 1, Category 9 amended; interim (ECCN 9A01A, 
9B01A, 9B03A, 9B04A, 9B05A, 9B06A, 9B07A, 9E01A)...................66561
    Supplement No. 1, Category 10 heading revised; Note added; 
interim............................................................66561
799.2  Supplement No. 1 amended...............................2677, 8275
    Supplement No. 1 amended; interim..............................10758

                                  1992

15 CFR
                                                                   57 FR
                                                                    Page
Chapter IV
400.45  (a) corrected...............................................2319
Chapter VII
768  Authority citation revised.....................................4555
768.1  (a)(2)(i) amended............................................4556
768.2  (a)(1) and (9)(i) amended....................................4556
769.6  (b)(4) amended...............................................4557
770  Authority citation revised..................................8, 4555
770.1  (b)(1) and (4) amended.......................................4556
770.2  Amended..................................4556, 4557, 41855, 48314
770.3  (a)(1) revised...............................................4558
770.6  (a)(2)(i) amended............................................4556
770.7  (c)(2) amended.........................................4556, 4557
770.9  Amended................................................4556, 4557
770.10  (f)(2) amended..............................................4556
    (f)(2) and (3) amended..........................................4557
770.14  (a)(4) revised..............................................4558
    (a) introductory text and (3)(ii) amended...............19334, 19336
770  Supplement No. 1 amended............................8, 11577. 19806
    Supplement No.2 amended.........................................4558
771  Authority citation revised.....................................4555
771.2  (b)(2)(ii) amended...........................................4556
    (c) introductory text and (i) amended...........................4557
    (c)(11) revised; (c)(12) removed................................4558
    (c)(13)(i)(B) revised; interim.................................26774
    (c)(12) revised...............................................41856
771.3  (a) and (b) amended..........................................4556
771.4  (a)(3) amended...............................................4556
771.5  (a), (b)(2), (c)(1)(i), (3) and (e) amended..................4556
    (a)(1) revised; (a)(2) removed; (a)(3) redesignated as (a)(2); 
new (a)(2)(i) and (c)(1)(i) amended; (c)(3) Example and (d) 
revised.............................................................4558
    (a)(1) amended.................................................41856
771.6  (a) amended............................................4556, 4558
771.14  (b) revised................................................19334
    (b) amended....................................................19336
771.15  (c)(3) amended..............................................4556
771.16  (a) amended.................................................4556
    Introductory text amended.......................................4558
771.18  (b)(1)(i) amended.....................................4556, 4557
771.19  (a), (b)(1)(i) and (2)(i) revised; (c) redesignated as 
        (d); new (c) added.........................................30900
771.22  (b)(8)(ii) amended..........................................4557
    (c)(1)(ii) introductory text amended......................4456, 4557
    (c)(2)(ii) and (iii) amended; (c)(2)(iv) removed................4558
771.23  (c) amended.................................................4556
    (b) and (c) revised.............................................4558
    (d) added......................................................61261
771.24  Removed.....................................................4559
771.25  Heading, (a), (c) and (f)(1) revised; (d) introductory 
        text amended................................................4559
    (b) and (f)(2) amended..................................19335, 19336
    (f)(1) amended.................................................61261
771.27  Added......................................................31659
772  Authority citation revised.....................................4555

[[Page 693]]

772.1  (f) amended..................................................4557
772.2  (b)(4) revised; (b)(7) removed..............................44971
772.4  (e) amended..................................................4556
    (a)(2)(iv) added; (e) revised...................................4559
772.7  (b) amended..................................................4557
772.8  (d)(2) amended...............................................4557
772.9  (c)(1) and (2) amended.......................................4557
772.11  (f)(9) amended..............................................4556
    (d)(2) and (e)(6) revised.......................................4559
772  Supplement No. 1 amended.................................4556, 4559
773  Authority citation revised.....................................4555
773.1  (e) amended..................................................4557
    (a)(1) revised..................................................4559
773.2  (b)(6), (c)(2)(iv)(B) and (f)(1) amended.....................4556
    (a)(1), (b), (c)(2)(iv)(B) and (D) revised......................4560
773.3  (b)(1)(iv) and (i)(2)(i) amended.............................4556
    (b), (e)(1)(iii) and (2)(v) revised; (d)(3)(ii)(E)(3)(i), 
(e)(1)(ix) concluding text and (x) through (xiii) amended; 
(d)(3)(ii)(E)(3)(iii) removed; (e)(1)(xiv) and (xv) added...........4560
    (a)(1)(ii) revised; interim....................................18817
773.5  (c) amended............................................4556, 4557
773.7  (b)(5), (d)(1)(iv)(B)(4), (6), (8), (g)(4), (i)(4), (k) 
        introductory text, (1) and concluding text amended..........4556
    (b) and (d)(1)(iv)(B)(5) revised................................4560
773.9  Revised.....................................................44971
773  Supplement No. 1 and No. 4 revised.............................4561
    Supplement No. 5 amended..................................4556, 4557
    Supplement No. 1 amended........................................4557
    Supplement No. 1 amended; interim..............................18817
    Supplement No. 8 amended.......................................19335
    Supplement No. 1 and No. 4 amended.............................41856
774  Authority citation revised.....................................4555
774.2  (j) amended..................................................4556
    (k)(1)(ii) amended..............................................4557
    (a)(1) amended..................................................4561
    (i) revised; (k)(2) amended; interim...........................18818
    (i)(1), (j), (k) introductory text and (2) amended......19335, 19336
    (m) added; interim.............................................20965
    (a)(1) amended.................................................30900
774.3  (d)(1)(i) revised............................................4561
    (d) removed; interim...........................................18818
774  Supplement No. 1 amended.................................4556, 4561
775  Authority citation revised.....................................4555
775.1  (b) table amended...............................4556, 4561, 19336
775.2  (b)(2) and (e)(2) amended....................................4556
    (e)(2) and (j)(3) amended.......................................4562
775.3  (a)(1), (d)(1), (f)(3), (h)(2) and (i)(1)(i) amended.........4556
    (g)(3)(i) and (ii) amended......................................4562
    (b) amended....................................................19336
775.5  (a)(3) amended...............................................4562
775.6  (a) and (c)(1) amended.......................................4556
    (a) amended.....................................................4562
775.7  (a)(1) introductory text and (b)(1) amended..................4556
    (a)(3) amended..................................................4562
775.8  (a) and (b)(1) amended.......................................4556
    (a), (b)(1) and (2) amended.....................................4562
775.9  (c) amended............................................4556, 4562
775.10  (b)(1)(i), (ii), (b)(2)(i) and (3) amended..................4556
775  Supplement No. 1 amended......................................19336
776  Authority citation amended.....................................4556
776.6  Revised......................................................4562
776.7  Removed......................................................4562
776.8  (a)(2) and (a) concluding text amended.......................4556
    Footnote 2 redesignated as footnote 1; (a)(1) revised...........4562
776.9  (b)(4)(ii) amended...........................................4556
776.10  Revised.....................................................4562
    (a)(1) amended; interim........................................20965
776.11  (a)(2) amended..............................................4556
    Removed.........................................................4563
    Added; interim.................................................20965
776.12  (e)(2)(v) and (vi) amended..................................4556
    (a)(1)(ii) and (b)(2) amended; (b)(4) and (5) revised...........4563
776.14  (a) amended..........................................4563, 41856
776.16  (a) amended...........................................4556, 4557
776.17  Revised.....................................................4563
776.18  Added.......................................................4563
776.20  Removed.....................................................4564
777  Authority citation revised.....................................4556

[[Page 694]]

777.6  (e)(4) amended...............................................4556
778  Authority citation revised..................................8, 4555
778.2  (a) introductory text and (2) amended........................4556
778.7  (c)(1) introductory text and (d)(3)(i) amended...............4557
    (a)(1) revised; (a)(2) removed; (a)(3) redesignated as (a)(2) 
                                                                    4564
    (c)(1)(ii) revised; interim....................................26774
778.8  (a)(2) amended...............................................4556
    (a)(1) introductory text, (i), (ii), (2), (4), (5)(iv)(A) 
introductory text, (5)(v), (c)(1), (d)(3)(iii), (viii), (xi) and 
(4) amended.........................................................4557
    Heading, (a)(3) and (d)(3)(xii) revised.........................4564
    (a)(1) introductory text, (5)(i), (iv)(B) and (v) revised......60124
778.9  (c) amended..................................................4557
    (a)(1) and (b)(1) revised; interim.............................26774
778  Supplement No. 5 amended..........................................8
    Supplement No. 2 amended........................................4564
    Supplement No. 6 revised; interim..............................26774
779  Authority citation revised.....................................4555
779.1  Heading amended; (a) revised; (d) added......................4564
779.2  Introductory text republished in part; footnotes 7 and 8 
        revised.....................................................4564
779.3  Note revised; OMB number.....................................4564
779.4  (b), (e) and (f) revised; (c) and (d) removed; (g), (h) and 
        (i) removed; (j) redesignated as (g)........................4564
    (a) revised....................................................41856
779.5  (a)(2) and (e)(2) revised; (b) and (e)(1)(vii) amended; 
        (e)(3) removed..............................................4566
779.8  (a)(3) amended; (b)(2) removed; (b)(3) and (4) redesignated 
        as (b)(2) and (3); new (b)(2) introductory text, (i) and 
        (3) revised.................................................4566
    (b)(2) revised; interim........................................18819
    (b)(2) introductory text and (b)(2)(i) revised; (b)(3) 
redesignated as (b)(4); new (b)(3) added...........................41856
779.9  Introductory text amended....................................4567
779  Supplement No. 2 amended.......................................4567
    Supplement No. 3 and No. 4 removed..............................4567
785  Authority citation revised........................................8
    Authority citation revised......................................4555
785.1  (a) amended...........................................4557, 31660
    Heading amended................................................11577
785.2  Heading revised; (a)(1) amended.................................9
    Heading and (c) revised.........................................4567
    Heading revised; (a)(1) amended; (d) added.....................11577
    (a)(1) and (c) amended.........................................19806
    (c) revised....................................................61261
785.4  Heading, (a), (d) and (e) revised; (g)(1)(ii) amended........4567
    (d)(5) amended.................................................61262
785.6  (b) amended..................................................4556
    (a) revised.....................................................4571
785.7  (c) amended..................................................4557
    (d) amended.....................................................4571
785  Supplement No. 1 removed.......................................4571
786  Authority citation revised.....................................4555
786.3  (i)(2)(i), (j)(1) and (2) amended............................4556
    (o) amended.....................................................4557
    (j)(2) amended.................................................61262
786.6  (a)(1)(ii) and (c)(2) revised................................4571
    (g)(1)(i) revised..............................................41856
786.7  Introductory text, (e)(1) introductory text and (2) 
        introductory text amended...................................4556
    (a), (b), introductory text, (c)(1) introductory text, (e)(1) 
introductory text, (2) introductory text and (3) introductory text 
amended.............................................................4557
786.8  (b)(9) amended..............................................41856
786.9  (d) amended..................................................4557
    (b) introductory text amended..................................41856
787.14  (a)(1) and (2) amended......................................4557
790  Authority citation revised.....................................4555

[[Page 695]]

790.1  (b)(1)(i) amended............................................4556
790.6  Amended................................................4556, 4572
791  Authority citation revised.....................................4555
791.1  (d) amended..................................................4556
799  Authority citation revised..............................4555, 18820
799.1  (d)(1)(i) revised............................................4572
    Supplement No. 1, Category 1 amended (ECCN 1C60C, 1D60C, 
1E60C, 1E61B, 1E70E)................................................4572
    Supplement No. 1, Category 1 amended; interim (ECCN 1B01A, 
1B18A, 1B19A, 1C18A, 1C19A)........................................18820
    Supplement No. 1, Category 1 amended; interim (ECCN 1B28B).....26994
    Supplement No. 1, Category 1 amended; interim (ECCN 1B70E).....31311
    Supplement No. 1, Category 1 amended; interim (ECCN 1C61B, 
1E60C, 1E61B)......................................................31312
    Supplement No. 1, Category 1 amended; interim (ECCN 1C60C).....60124
    Supplement No. 1, Category 1 amended; interim (ECCN 1C61B).....60125
    Supplement No. 1, Category 1 amended (ECCN 1A02A, 1A49E, 
1B01A, 1B51E, 1C10A)...............................................61262
    Supplement No. 1, Category 1 amended (ECCN 1D93F, 1D94F, 
1E02A, 1E70E, 1E94F, 1E96G)........................................61263
    Supplement No. 1, Category 2 amended (ECCN 2A19A, 2A54B, 
2B01A).............................................................61264
    Supplement No. 1, Category 2 amended (ECCN 2B05A, 2B06A).......61265
    Supplement No. 1, Category 2 amended (ECCN 2B85F)...............4572
    Supplement No. 1, Category 2 amended; interim (ECCN 2A19A, 
2B05A, 2B18A)......................................................18820
    Supplement No. 1, Category 2 amended (ECCN 2B24B, 2B51B, 
2B91F, 2D02A)......................................................61266
    Supplement No. 1, Category 1 amended (ECCN 2D46C, 2D50C, 
2D53C, 2D92F, 2D93F, 2D94F, 2D96G, 2E50C, 2E93F, 2E94F, 2E96G).....61267
    Supplement No. 1, Category 3 amended (ECCN 3A93F)...............4573
    Supplement No. 1, Category 3 amended; interim (ECCN 3B01A).....18820
    Supplement No. 1, Category 3 amended (ECCN 3A22B, 3A51B, 
3B01A, 3D01A, 3D03A, 3D22B, 3D80C).................................61268
    Supplement No. 1, Category 3 amended (ECCN 3D94F, 3D96G).......61269
    Supplement No. 1, Category 3 amended (ECCN 3E01A, 3E02A, 
3E22B, 3E51B, 3E80C, 3E94F, 3E96G).................................61269
    Supplement No. 1, Category 4 amended; interim (ECCN 4A01A).....18820
    Supplement No. 1, Category 4 amended (ECCN 4D01A)..............41856
    Supplement No. 1, Category 4 amended (ECCN 4D02A)..............41857
    Supplement No. 1, Category 4 amended (ECCN 4A01A, 4A02A).......61269
    Supplement No. 1, Category 4 amended (ECCN 4A03A)..............61270
    Supplement No. 1, Category 4 amended (ECCN 4A80C, 4D01A, 
4D02A, 4D03A, 4D21B, 4D80C, 4D94F, 4D96G, 4E01A, 4E02A, 4E21B, 
4E80C, 4E94F, 4E96G)...............................................61271
    Supplement No. 1, Category 4 amended...........................61272
    Supplement No. 1, Category 5 amended (ECCN 5A02A)..............61273
    Supplement No. 1, Category 5 amended (ECCN 5A03A, 5A05A, 
5B01A, 5D01A, 5D02A, 5D03A)........................................61274
    Supplement No. 1, Category 5 amended (ECCN 5A11A, 5D11A, 
5D12A, 5D13A)......................................................61279
    Supplement No. 1, Category 5 amended (ECCN 5E11A, 5A92F, 
5A95F, 5A96G, 5B94F, 5B96G)........................................61280

[[Page 696]]

    Supplement No. 1, Category 5 amended (ECCN 5D91F, 5D92F, 
5D93F, 5D94F, 5D95G, 5D95F, 5D96G, 5E91F, 5E92F, 5E93F, 5E94F, 
5E95F, 5E96G)......................................................61281
    Supplement No. 1, Category 6 amended; interim (ECCN 6A01A, 
6A02A, 6A03A, 6A18A)...............................................18820
    Supplement No. 1, Category 6 amended (ECCN 6A01A, 6A02A, 
6A03A).............................................................61281
    Supplement No. 1, Category 6 amended (ECCN 6A07A, 6A08A, 
6A28B, 6A43B, 6A91F, 6A94F, 6D01A, 6D02A, 6D03A)...................61283
    Supplement No. 1, Category 6 amended (ECCN 6D90F, 6D92F, 
6D93F, 6D94F, 6D96G, 6E02A, 6E03A, 6E90F, 6E92F, 6E93F, 6E94F, 
6E96G).............................................................61284
    Supplement No. 1, Category 6 amended...........................61285
    Supplement No. 1, Category 7 amended (ECCN 7A02A, 7A26B, 
7A94F, 7D94F, 7E94F)...............................................61286
    Supplement No. 1, Category 8 amended; interim (ECCN 8A01A, 
8A02A, 8A18A)......................................................18820
    Supplement No. 1, Category 8 amended (ECCN 8A01A, 8Ao2A, 
8A94F, 8D01A, 8D01A, 8D02A, 8D92F, 8D93F, 8D96G, 8E01A, 8E02A, 
8E92F, 8E93F, 8E96G)...............................................61287
    Supplement No. 1, Category 9 amended (ECCN 9A91F)...............4573
    Supplement No. 1, Category 9 amended; interim (ECCN 9B01A, 
9B06A, 9B26B)......................................................18820
    Supplement No. 1, Category 9 amended; interim (ECCN 9B07A).....18822
    Supplement No. 1, Category 9 amended; interim (ECCN 9A23B).....26994
    Supplement No. 1, Category 9 amended; interim (ECCN 9B07A, 
9B23B, 9B24B, 9B27B, 9D24B, 9E21B).................................26995
    Supplement No. 1, Category 9 amended; interim (ECCN 9A04A).....48314
    Supplement No. 1, Category 9 amended; interim (ECCN 9D01A, 
9D02A, 9E01A, 9E02A)...............................................48315
    Supplement No. 1, Category 9 amended (ECCN 9A90F, 9A94F, 
9B27B, 9D01A, 9D02A, 9D03A, 9D18A, 9D90F, 9D91F, 9D93F, 9D94F, 
9D96G).............................................................61288
    Supplement No. 1, Category 9 amended (ECCN 9E01A, 9E02A, 
9E18A, 9E90F, 9E91F, 9E93F, 9E94F, 9E96G)..........................61289
    Supplement No. 1, Category 10 amended; interim (ECCN 0A18A)....18820
    Supplement No. 1, Category 10 amended (ECCN 0E18A, 0E84C, 
0E96G).............................................................61290
    Supplement No. 2 amended.......................................41857
799.2  Supplement No. 1 amended...............................4556, 4573
    Supplement No. 1 amended.......................................31312

                                  1993

15 CFR
                                                                   58 FR
                                                                    Page
Chapter III
303.10  (c) removed; (d) redesignated as (c).......................21348
303.14  (b)(4) and (d)(2) removed; (d)(3) redesignated as (d)(2); 
        (b)(2), (d)(1), new (d)(2) and (e) amended.................21348
Chapter VII
770  Authority citation revised....................................65540
770.2  Amended...............................................3222, 68741
770.4  Revised......................................................3222
770.10  (a) revised; interim.......................................57551
770.11  (a)(2)(i)(A) amended.......................................36354
770.15  (c) and (h) amended........................................65540
770  Supplement No. 1 amended......................................47053
    Supplement No. 2 removed; interim..............................57551
771  Authority citation revised......................................488
771.3  Revised.....................................................47052
771.4  (b) introductory text amended; (b)(2) added.................47050
771.7  Added.........................................................488
771.14  (d)(3) amended.............................................47050
771.16  (b) revised................................................47050

[[Page 697]]

771.23  (b) amended..................................................486
    Heading and (c) revised........................................64676
771.28  Added......................................................47054
772  Authority citation revised....................................65540
772.1  (g) heading and (1) revised; (g)(2) amended; (h) removed....65541
772.4  (b)(2)(iv)(A), (i)(1) introductory text and (6) amended; 
        (i)(1)(i) revised..........................................36354
773.2  (a)(1) revised; (e)(3) removed; (e)(2)(v) and (4) 
        redesignated as (e)(2)(vi) and (3); new (e)(2)(v) added....68741
773.3  (a)(1)(ii), (d)(3)(iii)(D) and (e)(1)(ix)(I) amended..........486
773.7  (c)(2) heading and text, (d)(1) introductory text, (2)(i) 
        heading and text, (ii) heading, introductory text, (A), 
        (C), (3) introductory text, (iii)(D), (h)(1)(i) and 
        Footnote 2, (ii), (i) heading, introductory text, (1), 
        (2), (4), (6), (k) introductory text and concluding text 
        amended......................................................486
773.8  (a)(2) introductory text and (c)(1) amended...................487
773.9  (a)(2) revised..............................................68741
773  Supplement No. 1 amended......................................52169
774.2  (a)(1) amended..............................................47054
774.5  (a) amended...................................................486
775  Authority citation revised....................................25554
775.1  (b) table amended....................................25554, 47054
775.2  (e)(6) amended..............................................36355
    (b)(1) amended.................................................47054
775.3  (b) revised.................................................25554
    (h)(3) revised.................................................36355
775.6  (d) added...................................................36355
    (c)(2) removed; (c)(3) and (4) redesignated as (c)(2) and (3) 
and revised; (d) added.............................................47052
775.7  (d) redesignated as (e); new (d) added......................36355
775.8  (d) redesignated as (e); new (d) added......................36355
    Heading, (a) and (b)(2) revised; (e) amended...................47054
775.10  (b) through (g) redesignated as (c) through (h); new (b) 
        added......................................................36355
    Introductory text, (a), (c)(2) heading, introductory text, 
(d), (f) introductory text, (g)(1) introductory text, (g)(2)(i) 
introductory text, (ii)(A), and (h)(1) introductory text amended 
                                                                   47054
775  Supplement No. 1 amended...............................25554, 47054
776.8  (b)(1)(ii) and (iii) amended..................................486
776.9  (b)(1)(iii) introductory text and (3)(iii) introductory 
        text amended...............................................33510
776.10  (a)(1) amended...............................................486
776.11  (f)(6)(i)(D) and (ii)(A) revised...........................47055
776.16  Heading revised; (b) added; interim........................57551
777  Authority citation revised......................................488
777.1  (c)(3) amended..............................................36355
777.2  (e) amended.................................................36355
777.4  (d)(1) introductory text, (h) and (i)(2) introductory text 
        amended....................................................36355
777.6  (d) introductory text amended...............................36355
    (d)(3)(ii) amended.............................................47051
777.7  Revised.......................................................489
    (d) amended....................................................36355
778  Authority citation revised....................................52167
    Guidance.......................................................68029
778.9  (a) introductory text revised...............................47051
778  Supplement No. 4 amended; interim.............................52167
779.4  (f)(1)(i), (iii), (2)(i) and (iii) amended....................486
    (f)(1)(i) revised..............................................47055
779.5  (e)(1)(vii) amended...........................................486
    (e)(2) amended...................................................487
    (a)(3) amended.................................................47055
779.8  (b)(4) amended..............................................47051
785.1  (a) revised.................................................47055
785.2  (a)(4) amended..............................................36355
    (a)(1) and (c) amended.........................................47055
    Heading and (a)(3) revised.....................................68741
785.4  (f) removed; (g) redesignated as (f)..........................487
    (d)(1)(vi), (viii) and (ix) amended............................33510
785.6  (b) revised.................................................47052
785.7  (c) amended.................................................33510

[[Page 698]]

    (b) amended....................................................36355
786.1  (a), (c)(1), (2) introductory text, (i) and (iii) amended; 
        (b)(1) Footnote 1, (2)(i) and (c)(3) revised................3222
786.3  (f)(1), (i)(1), (2), (p)(1) introductory text footnote 3, 
        (p)(1)(i) and (ii) revised; (i)(3), (j)(1), (p)(1) 
        introductory text, (r)(1), (3), (4), (6) and (7) amended 
                                                                    3223
786.7  (c)(1) introductory text, (e)(1) introductory text and (i) 
        amended; (e)(1)(ii) and (iii) revised......................33510
786  Supplement No. 1 heading revised...............................3223
787.14  (a)(1) and (2) amended.....................................36355
787.15  (c)(2)(ii) amended.........................................36355
788  Authority citation revised....................................65540
788.19  (g) revised................................................65541
788.20  (c)(1)(i) amended..........................................36355
788.23  (e) revised................................................65541
789  Authority citation revised....................................58483
789.1  (b) amended.................................................58483
789.2  Revised.....................................................58483
790.1  (h)(3) amended..............................................36355
790.8  Added; interim..............................................57552
799  Authority citation revised...............21926, 27932, 59164, 61807
799.1  Regulations at 57 FR 61259 corrected..................6574, 32003
    (h) added......................................................33510
799.1  Supplement No. 1, Category 1 amended (ECCN 1B71E)...........21926
    Supplement No. 1, Category 1 amended (ECCN 1C65E)..............21927
    Supplement No. 1, Category 5 amended; interim (ECCN 5A02A).....27932
    Supplement No. 1, Category 9 amended (ECCN 9A92F and 9A93F)....33510
    Supplement No. 1, Category 7 amended; (ECCN 7A05A, 7A25B, 
7A94F).............................................................34212
    Supplement No. 1, Category 5 amended (ECCN 5A20B)..............47051
    Supplement No. 1, Category 9 amended (ECCN 9A18A)..............47051
    Supplement No. 1, Category 9 amended (ECCN 9A04A)..............47323
    Supplement No. 1, Category 5 amended (ECCN 5A02A)..............48304
    Supplement No. 1, Category 5 Advisory Notes amended............48304
    Supplement No. 1, Category 5 amended (ECCN 5A91F)..............48305
    Supplement No. 1, Category 4 amended; interim (ECCN 4A01A, 
4A02A).............................................................52167
    Supplement No. 1, Category 4 amended; interim (ECCN 4A03A).....52168
    Supplement No. 1, Category 1 amended (ECCN 1E96G)..............52171
    Supplement No. 1, Category 2 amended (ECCN 2E96G)..............52171
    Supplement No. 1, Category 3 amended (ECCN 3A01A and 3A02A)....52171
    Supplement No. 1, Category 3 amended (ECCN 3B01A)..............52174
    Supplement No. 1, Category 3 amended (ECCN 3C02A and 3E01A)....52175
    Supplement No. 1, Category 4 amended (ECCN 4A01A and 4A03A)....52176
    Supplement No. 1, Category 4 amended (ECCN 4E96G)..............52177
    Supplement No. 1, Category 5 amended (ECCN 5A01A, 5A02A).......52179
    Supplement No. 1, Category 5 amended (ECCN 5A03A, 5A04A, 
5A05A).............................................................52180
    Supplement No. 1, Category 5 amended (ECNN 5A06A, 5B01A, 
5B02A, 5C01A and 5E02A)............................................52181
    Supplement No. 1, Category 6 amended (ECCN 6A01A, 6A02A).......52185
    Supplement No. 1, Category 5 amended (ECCN 5A11A)..............52185
    Supplement No. 1, Category 6 amended (ECCN 6A04A, 6A05A, 
6A07A, 6A08A)......................................................52188
    Supplement No. 1, Category 6 amended (ECCN 6B04A, 6C02A, 
6C04A, 6E03A)......................................................52189
    Supplement No. 1, Category 6 amended (ECCN 6E96G)..............52190
    Supplement No. 1, Category 7 amended (ECCN 7E94F)..............52191
    Supplement No. 1, Category 8 amended (ECCN 8E96G)..............52191

[[Page 699]]

    Supplement No. 1, Category 9 amended (ECCN 9E96G)..............52192
    Supplement No. 1, Category 6 amended; interim (ECCN 6A02A, 
6A03A, 6E01A, 6E02A)...............................................57552
    Supplement No. 1, Category 7 amended; interim (ECCN 7A23B, 
7D01A, 7E01A, 7E02A)...............................................57552
    Supplement No. 1, Category 6 amended; interim (ECCN 6D01A, 
6D21B).............................................................57553
    Supplement No. 1, Category 7 amended; interim (ECCN 7A03A, 
7E21B).............................................................57553
    Supplement No. 1, Category 1 amended (ECCN 1C31B)..............59164
    Supplement No. 1, Category 9 amended (ECCN 9A02A, 9A24B, 
9D24B, 9E03A)......................................................59165
    Supplement No. 1, Category 9 amended (ECCN 9E21B)..............59166
    Supplement No. 1, Category 1 amended (ECCN 1C18A); interim.....61808
    Supplement No. 1, Category 4 amended (ECCN 4A03A)..............64676
    Supplement No. 1, Category 4 amended (ECCN 4E96G)..............64677
    Supplement No. 3 amended.......................................52192
799.2  Supplement No. 1 amended....................................57553

                                  1994

15 CFR
                                                                   59 FR
                                                                    Page
Chapter III
303.14  (a)(1)(i), (d)(1) and (2) amended...........................8847
    (e)  amended....................................................8848
Chapter VII
701  Added.........................................................61796
768.2  Footnote 1 amended..........................................67181
770  Authority citation revised................8849, 25305, 50157, 59136
770.2  Amended...............................................8849, 13197
770.11  (a)(2)(i)(A) amended; (a)(2)(i)(B) revised.................59136
770.13  (a) introductory text revised..............................59136
770.14  (a) introductory text and (3)(ii) amended..................30683
    (a)  introductory text amended.................................50157
770  Supplement No. 1 amended................................6524, 25305
771  Authority citation revised...............25305, 40235, 44887, 50157
771.2  (c)(7) revised; interim.....................................10962
    (c)(11)  revised...............................................14361
    (c)(11)  removed...............................................30685
    (c)(6)  added..................................................40236
771.4  Footnotes 4 through 6 redesignated as Footnotes 2 through 
        4; interim.................................................10962
    (b)(3)  revised................................................14362
    (b)(3)  removed................................................30685
771.6  Footnote 8 redesignated as Footnote 5; interim..............10962
771.9  Footnote 9 redesignated as Footnote 6; interim..............10962
771.10  Footnote 10 redesignated as Footnote 7; interim............10962
771.12  Footnotes 11 and 12 redesignated as Footnotes 8 and 9; 
        interim....................................................10962
771.14  (b) amended.........................................30683, 50157
771.17  (a)(4) and (f)(3)(iv) removed; (a)(5) redesignated as 
        (a)(4); (e)(3)(ii), (f)(2)(iii) and (3)(iii) revised; 
        (e)(3)(iii) added; (f)(2)(i) and (ii) amended...............9403
    (e)(2)(vi)  amended............................................67182
771.18  Footnote 13 redesignated as Footnote 10; interim...........10962
    (b)(1)(ii)  revised............................................44887
771.20  Added......................................................15622
    (b)  amended...................................................25305
771.23  (c) amended.........................................15622, 25306
771.24  Added; interim.............................................10962
771.25  (b) and (f)(2) amended.....................................13197
771.27  Removed.....................................................6524
771.28  Removed.....................................................6524
771  Supplement No. 1 added........................................15622
    Supplement  No. 1 amended......................................25306
772  Authority citation revised.......................8849, 25305, 59136
772.1  (h) added....................................................8850
772.4  (a)(1)(iv) revised; interim.................................10963
    (a)(1)(i)  revised; (i)(6) amended.............................59136
772.11  (b)(2)(i) amended; (k)(1) introductory text revised........25306
    (e)(4)  and (5) amended........................................59137
772  Supplement No. 1 amended; interim.............................10963

[[Page 700]]

    Supplement  No. 1 amended......................................59137
773  Authority citation revised.......................8849, 25305, 59136
773.1  (a) removed.................................................30685
773.2  (b)(1) removed..............................................30685
773.3  (h) and (j)(2)(ii) removed; (j)(2)(iii) redesignated as 
        (j)(2)(ii).................................................25306
    (b)(1)  revised; (d)(3)(ii)(E)(3) removed......................30685
773.7  (d)(1)(iii) revised; (e) removed; (k) introductory text 
        amended....................................................25306
    (b),  (d)(1)(ii)(C), (D) and (3)(ii) introductory text 
revised; (d)(1)(ii)(E) removed.....................................30685
773.8  (d)(1) amended..............................................25306
773.9  (l) amended; interim........................................12826
    (a)(1)  and (l) note revised; interim..........................52687
    (l)  amended...................................................59137
773  Supplement No. 1 amended.......................................8850
    Supplement  No. 1 through 4 amended; interim (ECCN 3A52).......10963
    Supplement  No. 8 amended......................................13197
    Supplement  No. 3 amended......................................25306
774  Authority citation revised.............................25305, 59136
774.2  (a)(4) revised...............................................9403
    (i)(3),  (j) and (k)(1) revised; (n) added; interim............10963
    (i)(1),  (j) introductory text, (k) introductory text and (2) 
amended............................................................13197
    (o)  added.....................................................15622
    (i)(5)  amended................................................59137
    (j)  removed...................................................67182
774.3  (c)(1)(ii) revised..........................................25306
775  Authority citation revised.............................25305, 50157
775.1  (b) table amended...........................................25306
    (a)  amended...................................................30683
    (b)  amended...................................................50157
775.2  (b)(1) revised..............................................25306
775.3  (b) introductory text and Footnote 1 revised................25306
    (b)  amended............................................30683, 50157
775.5  Removed.....................................................25306
775.8  Heading and (b)(2) revised; (a) and (e) amended.............25306
775.10  Introductory text, (c)(2) heading and introductory text, 
        (3), (f) introductory text, (g)(1) introductory text, 
        (2)(i) introductory text, (2)(ii) and (h)(1) introductory 
        text revised; (a), (b), (d) and (g) heading amended; 
        Footnote 4 redesignated as Footnote 3......................25307
775  Supplement No. 1 amended........................25308, 30683, 50157
776  Authority citation revised..............................8849, 59136
776.10  (a)(2) revised.............................................25308
776.11  (a) revised.................................................8850
    (f)(6)(i)(D)  and (ii)(A) revised..............................25308
776.12  (e)(5) revised.............................................59137
778  Authority citation revised....................................25305
    Supplement  No. 4 amended......................................67182
778.2  Revised; interim............................................10964
778.3  Revised; interim............................................10964
778.4  Revised; interim............................................10965
778.7  (a)(1) and (d)(1) revised...................................49799
778.8  (a)(1) introductory text, (5)(i), (iv)(B) and (v) revised; 
        interim....................................................12826
    (a)(1),  (5)(i), (iv)(B) and (v) revised; interim..............52687
778.9  (c) revised; interim........................................12826
    (c)  revised; interim..........................................52688
778  Supplement No. 5 amended......................................25308
    Supplement  No. 5 corrected....................................27312
779  Authority citation revised....................................25305
779.1  (b)(1) introductory text amended; (b)(1)(ii) and (c) 
        introductory text revised..................................13449
779.4  Introductory text revised...................................13449
    (f)(1)(i)  and Footnote 10 revised.............................25308
    (a)  revised; (e) removed......................................30685
779.5  (a)(3) amended..............................................25309
779  Supplement No. 2 removed......................................30685
785  Authority citation revised.............................25305, 40235
785.1  Heading and (a) revised......................................6524
785.2  Heading revised; (a)(1) amended..............................6525

[[Page 701]]

    (a)(1),  (b) and (c) revised; (a)(3) removed; (a)(4) 
redesignated as (a)(3).............................................25309
785.4  (a)(2) through (6) revised; (a)(7) removed..................14362
    (a)  removed...................................................30685
    (a)  added.....................................................40236
785  Supplement No. 2 revised......................................14362
    Supplements  No. 1 and 2 removed...............................30685
786.6  (a)(1)(ii) and (c)(2) amended; interim......................10965
    (a)  and (c) introductory text revised.........................30685
787  Authority citation revised....................................25305
787.1  (b)(2) amended..............................................67182
787.13  (c) amended; interim.......................................10965
    (e)(2)(ii)(B)  and (C) revised.................................25309
799  Authority citation revised.......................8849, 25305, 40235
799.1  (b)(4) revised..............................................30685
799.1  Supplement No. 1, Category 4 amended (ECCN 4A01A, 4A02A, 
        4A03A)......................................................8850
    Supplement  No. 1, Category 4 amended...........................8851
    Supplement  No. 1, Category 1 amended; interim (ECCN 1A44B, 
1A45B, 1A46B, 1A47B, 1A48B, 1A49E, 1A50E, 1A51E)...................10965
    Supplement  No. 1, Category 1 amended; interim (ECCN 1B01A, 
1B16A, 1B17A, 1B19A, 1B41B, 1B42B).................................10966
    Supplement  No. 1, Category 1 amended; interim (ECCN 1B50B, 
1B51B, 1B52B, 1B53B, 1B54B, 1B58B, 1B59B, 1B51E)...................10967
    Supplement  No. 1, Category 1 amended; interim (ECCN 1C10A, 
1C19A).............................................................10968
    Supplement  No. 1, Category 1 amended; interim (ECCN 1C49B, 
1C50B, 1C51B, 1C52B, 1C53B, 1C54B, 1C55B, 1C56B, 1C57B, 1C50E, 
1C58B).............................................................10969
    Supplement  No. 1, Category 1 amended; interim (ECCN 1C93F, 
1D01A, 1D41B, 1D50B, 1D93F, 1E01A, 1E19A)..........................10970
    Supplement  No. 1, Categories 1 and 2 amended; interim (ECCN 
1E40B, 1E41B, 1E94F, 2A19A, 2A44B, 2A48B, 2A50B, 2A51B, 2A52B, 
2A53B, 2A54B, 2A55B, 2A49E)........................................10971
    Supplement  No. 1, Category 2 amended; interim (ECCN 2B01A)....10972
    Supplement  No. 1, Category 2 amended; interim (ECCN 2B04A, 
2B06A, 2B07A, 2B08A, 2B09A)........................................10974
    Supplement  No. 1, Category 2 amended; interim (ECCN 2B24B, 
2B40B, 2B41B, 2B44B, 2B46B, 2B50B, 2B51B, 2B53B, 2B54B, 2B41E).....10975
    Supplement  No. 1, Category 2 amended; interim (ECCN 2D01A, 
2D19A, 2D24B, 2D41B, 2D44B, 2D50B, 2D52B, 2D53B, 2D46C, 2D50C, 
2D53C, 2D49E)......................................................10976
    Supplement  No. 1, Category 2 amended; interim (ECCN 2E01A, 
2E02A, 2E03A, 2E19A, 2E24B, 2E40B, 2E41B, 2E44B, 2E48B, 2E50B, 
2E51B, 2E52B, 2E53B, 2E50C, 2E49E).................................10977
    Supplement  No. 1, Category 3 amended; interim (ECCN 3A01A, 
3A41B, 3A42B, 3A43B, 3A44B, 3A46B, 3A48B, 3A49B, 3A50B, 3A51B, 
3A41E, 3A42E, 3A45E, 3A52B, 3A53B, 3A54B, 3A55B, 3A47E, 3A52E).....10978
    Supplement  No. 1, Categories 3 and 4 amended; interim (ECCN 
3D01A, 3D51B, 3E01A, 3E40B, 3E41B, 3E51B, 4D01A, 4D02A, 4E01A).....10981
    Supplement  No. 1, Category 6 amended; interim (ECCN 6A02A, 
6A03A, 6A05A, 6A42A, 6A43B, 6A44B, 6A50B)..........................10982
    Supplement  No. 1, Categories 6 and 9 amended, interim (ECCN 
6E01A, 6E02A, 6E40B, 6E41B, 9B26B).................................10983
    Supplement  No. 3 amended; interim.............................10984
    Supplement  No. 1, Category 9 amended; interim (ECCN 9D24B, 
9E21B).............................................................10984

[[Page 702]]

    Supplement  No. 1, Category 1 amended; interim (ECCN 1B70E)....12826
    Supplement  No. 1, Category 1 amended; interim (ECCN 1C60C, 
1C61B).............................................................12827
    Supplement  No. 1, Category 1 amended; interim (ECCN 1D60C, 
1E60C).............................................................12828
    Supplement  No. 1, Category 1 amended (ECCN 1C18A, 1C93F)......13880
    Supplement  No. 1, Categories 2 and 3 amended (ECCN 3A01A).....25309
    Supplement  No. 1, Category 3 amended (ECCN 3A92F).............25311
    Supplement  No. 1, Category 3 amended (ECCN 3A94F, 3C03A, 
3C04A, 3D94F)......................................................25312
    Supplement  No. 1, Categories 3 and 4 amended (ECCN 3E94F, 
4A03A, 4A94F)......................................................25313
    Supplement  No. 1, Category 4 amended (ECCN 4B01A, 4B02A, 
4B03A, 4B94F, 4B96G, 4C01A, 4C94F, 4C96G, 4D01A, 4D03A)............25314
    Supplement  No. 1, Category 4 amended (ECCN 4D92F, 4D93F, 
4D94F, 4E01A, 4E02A, 4E92F, 4E93F, 4E94F)..........................25315
    Supplement  No. 1, Category 5 amended (ECCN 5A01A, 5A02A)......25316
    Supplement  No. 1, Category 5 amended (ECCN 5D01A, 5D02A)......25317
    Supplement  No. 1, Category 5 amended (ECCN 5D03A, 5E01A, 
5E02A).............................................................25318
    Supplement  No. 1, Categories 5 through 9 amended (ECCN 5A90F, 
5A91F, 5D90F, 5E90F)...............................................25322
    Supplement  No. 1, Category 1 amended (ECCN 1C92F, 1C93F, 
1A96G, 1B96G, 1C94F, 1C96G, 1D93F, 1D94F, 1D96G)...................30686
    Supplement  No. 1, Categories 1 and 2 amended (ECCN 1E02A, 
1E94F, 1E96G, 2A94F, 2A96G, 2B85F, 2B91F, 2B92F, 2B93F, 2B94F, 
2B96G, 2D92F, 2D93F, 2D94F, 2D96G, 2E93F)..........................30687
    Supplement  No. 1, Categories 2, 3 and 4 amended (ECCN 2E94F, 
2E96G, 3A92F, 3A93F, 3A94F, 3A96G, 3B91F, 3B96G, 3C96G, 3D94F, 
3D96G, 3E94F, 3E96G, 4A94F, 4A96G).................................30688
    Supplement  No. 1, Categories 4 and 5 amended (ECCN 4B94F, 
4B96G, 4C94F, 4C96G, 4D92F, 4D93F, 4D94F, 4D96G, 4E92F, 4E93F, 
4E94F, 4E96G, 5A90A)...............................................30689
    Supplement  No. 1, Category 5 amended (ECCN 5A91F, 5A92F, 
5A93F, 5A94F, 5A95F, 5A96G, 5B94F, 5B96G, 5C96G, 5D90F, 5D91F, 
5D92F, 5D93F, 5D94F)...............................................30690
    Supplement  No. 1, Categories 5 and 6 amended (ECCN 5D95F, 
5D96G, 5E90F, 5E91F, 5E92F, 5E93F, 5E94F, 5E95F, 5E96G, 6A90F, 
6A92F, 6A93F, 6A94F, 6A96G, 6B96G, 6C96G)..........................30691
    Supplement  No. 1, Categories 6 and 7 amended (ECCN 6D90F, 
6D92F, 6D93F, 6D94F, 6D96G, 6E90F, 6E92F, 6E93F, 6E94F, 6E96G, 
7A94F, 7B94B, 7D94F, 7E94F)........................................30692
    Supplement  No. 1, Categories 8 and 9 amended (ECCN 8A92F, 
8A93F, 8A94F, 8A96G, 8B96G, 8C96G, 8D92F, 8D93F, 8D96G, 8E92F, 
8E93F, 8E96G, 9A90F, 9A91F, 9A92F, 9A93F)..........................30693
    Supplement  No. 1, Categories 9 and 0 amended (ECCN 9A94F, 
9A96G, 9B94F, 9B96G, 9D90F, 9D91F, 9D93F, 9D94F, 9D96G, 9E90F, 
9E91F, 9E93F, 9E94F, 9E96G, 0A18A).................................30694
    Supplement  No. 1, Category 0 amended (ECCN 0A84C, 0A86F, 
0A95H, 0A96G, 0E18A, 0E84C, 0E96G).................................30695
    Supplement  No. 1, Categories 1, 2, 5 and 6 amended (ECCN 
1A88F, 2B85F, 5A80D, 6A02A)........................................40236
    Supplement  No. 1, Category 6 amended (ECCN 6A03A, 6D21B, 
6E01A, 6E02A)......................................................40237

[[Page 703]]

    Supplement  No. 1, Categories 9 and 10 amended (ECCN 9A22B, 
9A91F, 0A18A, 0A84C, 0A86F, 0A88F).................................40238
    Supplement  No. 1, Category 9 amended (ECCN 9A04A).............47798
    Supplement  No. 1, Category No. 1 amended (ECCN 1A02A, 1A22B, 
1A27B, 1B01A, 1B21B)...............................................49800
    Supplement  No. 1, Category No. 1 amended (ECCN 1C27B, 1C31B, 
1D02A).............................................................49801
    Supplement  No. 1, Categories No. 2 through 5 amended (ECCN 
2B50B, 3A01A, 3A22B, 3D21B, 3E01A, 4A21B, 5A01A, 5D01A, 5D02A, 
5D03A, 5E01A)......................................................49802
    Supplement  No. 1, Categories 5, 6 and 7 amended (ECCN 5A20B, 
6A29B, 7A01A, 7A03A, 7A04A, 7A06A, 7A21B, 7A23B, 7A24B, 7A26B, 
7A27B, 7B03A)......................................................49803
    Supplement  No. 1, Categories No. 7 and 9 amended (ECCN 7B22B, 
7D24B, 9A21B, 9B26B, 9B27B)........................................49804
    Supplement  No. 1, Category No. 1 amended; interim (ECCN 
1B70E, 1B71E, 1C60C, 1D60C); 1B70E removed.........................52688
    Supplement  No. 1, Category No. 1 amended; interim (ECCN 
1E60C).............................................................52689
    Supplement  No. 1, Categories 1, 2 and 3 amended (ECCN 1C10A, 
2D02A, 3A92F)......................................................67182
    Supplement  No. 1, Categories 5 and 6 amended (ECCN SE02A, 
6A02A).............................................................67183
    Supplement  No. 1, Category 6, amended (ECCN 6A03A)............67184
    Supplement  No. 1, Category 6, amended (ECCN 6D93F)............67185
799.2  Supplement No. 1 amended; interim.............10984, 12828, 52688

                                  1995

15 CFR
                                                                   60 FR
                                                                    Page
Chapter VII
771.27  Added; interim.............................................18733
771  Supplement No. 1 revised......................................65528
773.9  (a)(1) revised; (f)(1)(iv), (2)(i)(B), (i)(2)(vii) and (l) 
        amended....................................................54032
776.14  Heading and (a) revised....................................58513
776.19  Added......................................................58513
777.6  (d)(1)(xii) and (k) added...................................15672
778.8  (a)(3) revised..............................................38957
    (a)(1) introductory text, (i), (5)(i), (iv)(B) and (v) revised
                                                                   54032
778.9  (c) revised.................................................54033
778  Supplement No. 3 added........................................54033
    Supplement No. 5 amended.......................................54034
779.2  Amended; interim............................................18733
779.8  (b)(2)(i) through (iv) and (3) amended......................65528
799.1  Supplement No. 2 reinstated; CFR correction.................36638
    Supplement No. 1, Category 1 amended (ECCN 1C61B, 1C91F).......38957
    Supplement No. 1, Category 1 amended (ECCN 1C60C, 1D60C, 
1E60C, 1C95F)......................................................54034
    Supplement No. 2 amended.......................................53698
    Supplement No. 1 Category 10 amended (ECCN 0A82C, 0A83D).......58514
    Supplement No. 1, Category 5 (ECCN 5D13A) amended..............65528
799.2  Supplement No. 1 amended.............................53699, 54035

                                  1996

15 CFR
                                                                   61 FR
                                                                    Page
Chapter III
303  Authority citation revised....................................55884
303.1  (a) amended.................................................55884
303.2  (a)(1) amended; (a)(13) and (b)(3) revised..................55884
    (b)(4) removed; (b)(5) and (6) redesignated as (b)(4) and (5) 
                                                                   55885
303.6  (f) introductory text amended; (f) concluding text removed 
                                                                   55885
303.7  (b) revised.................................................55885
303.8  (c)(2) revised..............................................55885
303.10  Removed....................................................55885
303.11  Removed....................................................55885
303.12  (b)(3) introductory text, (c)(1) and (2) amended...........55885

[[Page 704]]

303.14  (b) heading, (1) and (3) revised; (b)(4) added; 
        (c)(1)(iv), (2) and (e) amended; (c)(3) removed............55885
Chapter IV
400  Notice........................................................53305
Chapter VII
730  Added.........................................................12734
    Compliance date extension......................................55741
    Authority citation revised.....................................68577
730.5  (d) amended; interim........................................68577
732  Added.........................................................12740
    Compliance date extension......................................55741
    Authority citation revised.....................................68577
732.2  (f)(1)(ii) amended..........................................64274
    (b) introductory text and (d) introductory text amended; 
interim............................................................68577
732.3  (f)(1)(ii) amended..........................................64274
    (e)(2) amended; interim........................................68577
732.4  (b)(3)(iii) revised.........................................64274
732.5  (a)(2) revised..............................................64274
734  Added.........................................................12746
    Compliance date extension......................................55741
    Authority citation revised.....................................68577
734.2  (b)(1) and (2) introductory text revised; (b)(9) added; 
        interim....................................................68578
734.3  (b)(3)(i) through (iv) redesignated as (b)(3)(i)(A) through 
        (D); new (b)(3)(ii) added; interim.........................65464
    (b)(3) revised; note added; interim............................68578
734.4  (b) through (f) redesignated as (c) through (g); new (b) 
        and (h) added; interim.....................................54543
    (b) and (h) revised; interim............................65464, 68578
734.5  (c) added; interim..........................................68578
734.7  (b) revised; interim........................................65464
    (b) revised; (c) added; interim................................68578
734.8  (a) amended; interim........................................68579
734.9  Revised; interim............................................68579
734  Supplement No. 1 amended; interim.............................68579
736  Added.........................................................12754
    Compliance date extension......................................55741
    Authority citation revised.....................................68577
736.2  (b)(3)(ii)(A)(1) and (B)(1) revised.........................64274
    (b)(7) revised; interim........................................68579
738  Added.........................................................12756
    Compliance date extension......................................55741
    Authority citation revised.....................................68577
738.2  (d)(2)(i)(A) amended; interim...............................68579
740  Added.........................................................12768
    Compliance date extension......................................55741
    Authority citation revised.....................................68577
740.1  (c) and (d)(1) revised......................................64274
740.2  (a)(5) and (6) revised......................................64274
740.3  Revised.....................................................64274
740.4  Redesignated as 740.8.......................................64274
    Added..........................................................64275
740.5  Redesignated as 740.9.......................................64274
    Added..........................................................64275
740.6  (b)(2)(iii)(A), (B), (C), (iv)(A), (B) and (C) redesignated 
        as (b)(2)(iii)(B), (C), (D), (iv)(B), (C) and (D); new 
        (b)(2)(iii)(A) and new (iv)(A) added; interim..............54543
    Redesignated as 740.10.........................................64274
    Added..........................................................64275
740.7  Redesignated as 740.11......................................64274
    Added..........................................................64276
    (a), (b)(2), (c)(2), (d)(2) and (e) revised....................67449
740.8  Redesignated as 740.12; new 740.8 redesignated from 740.4 
                                                                   64274
    Revised........................................................64277
    Redesignated as 740.9; new 740.8 added; interim................68579
740.9  Redesignated as 740.13; new 740.9 redesignated from 740.5 
                                                                   64274
    Revised........................................................64279
    Redesignated as 740.10; new 740.9 redesignated from 740.8; 
interim............................................................68579
    (c)(3) revised; interim........................................68580
740.10  Redesignated as 740.14; new 740.10 redesignated from 740.6
                                                                   64274
    Revised........................................................64281
    Redesignated as 740.11; new 740.10 redesignated from 740.9; 
interim............................................................68579
740.11  Redesignated as 740.15; new 740.11 redesignated from 740.7
                                                                   64274
    Revised........................................................64282
    Redesignated as 740.12; new 740.11 redesignated from 740.10; 
interim............................................................68579
    (b)(2)(iii) and (iv) revised; interim..........................68580

[[Page 705]]

740.12  Redesignated from 740.8....................................64274
    Revised........................................................64283
    (d)(2) redesignated as (d)(3); new (d)(2) added; interim.......65464
    Redesignated as 740.13; new 740.12 redesignated from 740.11; 
interim............................................................68579
740.13  Redesignated from 740.9....................................64274
    Redesignated as 740.14; new 740.13 redesignated from 740.12; 
interim............................................................68579
    (d)(2) revised; interim........................................68580
740.14  Redesignated from 740.10...................................64274
    Introductory text revised......................................64283
    Redesignated as 740.15; new 740.14 redesignated from 740.13; 
interim............................................................68579
740.15  Redesignated from 740.11...................................64274
    Redesignated as 740.16; new 740.15 redesignated from 740.14; 
interim............................................................68579
740.16  Redesignated from 740.15; interim..........................68579
742  Added.........................................................12786
    Compliance date extension......................................55741
    Authority citation revised.....................................68577
742.4  (a) amended.................................................64283
742.12  (a)(1) and (2) amended.....................................64283
742.14  Added; interim.............................................54543
742.15  Added; interim.............................................65464
    Revised; interim...............................................68580
742  Supplements 4 and 5 added; interim............................65465
    Supplements 4 and 5 revised; interim...........................68582
    Supplement 6 added; interim....................................68583
    Supplement 7 added; interim....................................68584
744  Added.........................................................12802
    Compliance date extension......................................55741
    Authority citation revised.....................................68577
744.2  (c) revised.................................................64284
744.9  Added; interim..............................................68584
746  Added.........................................................12806
    Compliance date extension......................................55741
746.2  (a)(1) revised..............................................64284
746.3  (a)(1) revised..............................................64284
746.4  (b) revised.................................................64284
746.5  (a)(1) and (b)(1) revised...................................64284
748  Added.........................................................12812
    Compliance date extension......................................55741
    Authority citation revised.....................................68577
748.3  (b)(3) added; interim.......................................68585
748  Supplements No. 2 and 5 amended...............................64285
750  Added.........................................................12829
    Compliance date extension......................................55741
    Authority citation revised.....................................68577
750.3  (b)(2)(v) added; interim....................................68585
750.7  (h)(2) revised..............................................64285
752  Added.........................................................12835
    Compliance date extension......................................55741
752.3  (a)(7) and (8) redesignated as (a)(9) and (10); new (a)(7) 
        and new (8) added; interim.................................54543
752.5  (c)(8)(i) introductory text revised.........................64285
754  Added.........................................................12844
    Compliance date extension......................................55741
754.2  (a) and (c)(1)(i) amended; (j) added........................27257
756  Added.........................................................12851
    Compliance date extension......................................55741
758  Added.........................................................12852
    Compliance date extension......................................55741
758.1  (d)(2)(vi) amended..........................................64285
758.3  (d)(2) revised..............................................27257
    (h)(2) introductory text amended; (m)(3)(ii)(C) introductory 
text revised.......................................................64285
758.6  (a)(1)(ii) revised..........................................64285
760  Added.........................................................12862
    Compliance date extension......................................55741
762  Added.........................................................12900
    Compliance date extension......................................55741
762.2  (b)(26) through (34) redesignated as (b)(27) through (35); 
        new (b)(26) added..........................................27258
    (b)(6) through (35) redesignated as (b)(7) through (36); new 
(b)(6) added; interim..............................................65466
764  Added.........................................................12902
    Compliance date extension......................................55741
766  Added.........................................................12907
    Compliance date extension......................................55741
768  Redesignated as Part 768A.....................................12734
    Added..........................................................12915
    Compliance date extension......................................55741
    Authority citation revised.....................................68577
768.1  (b) revised; interim........................................68585
768.3  (a) amended; interim........................................68585
768A  Redesignated from Part 768; nomenclature change; eff. 4-24-
        96; removed; eff. 11-1-96; interim.........................12734

[[Page 706]]

    Removal at 61 FR 12734 eff. 12-31-96...........................55741
769  Redesignated as Part 769A.....................................12734
    Authority citation revised.....................................14244
769  Supplement No. 17 added.......................................14244
769A  Redesignated from Part 769; nomenclature change; eff. 4-24-
        96; removed; eff. 11-1-96; interim.........................12734
    Removal at 61 FR 12734 eff. 12-31-96...........................55741
770  Authority citation revised.....................................2102
    Redesignated as Part 770A......................................12734
    Added..........................................................12920
    Compliance date extension......................................55741
770.2  Amended; interim.............................................2102
    (l) added......................................................67450
770.3  (d)(1)(i)(B), (ii) and (2)(ii) revised......................64286
770A  Redesignated from Part 770; nomenclature change; eff. 4-24-
        96; removed; eff. 11-1-96; interim.........................12734
    Removal at 61 FR 12734 eff. 12-31-96...........................55741
771  Authority citation revised.....................................2102
    Redesignated as Part 771A......................................12734
771.14  (d)(2) amended; interim.....................................2102
771.22  (c)(2)(i) removed; interim..................................2102
771.24  (b) and (c) revised; interim................................3558
771.26  (b) revised; interim........................................2102
771.28  Added; interim..............................................2102
    (a) and (d)(1) amended..........................................5678
771A  Redesignated from Part 771; nomenclature change; eff. 4-24-
        96; removed; eff. 11-1-96; interim.........................12734
    Removal at 61 FR 12734 eff. 12-31-96...........................55741
771A.14  (d)(4) added; interim.....................................54543
771A.25  (d) removed...............................................12734
772  Redesignated as Part 772A.....................................12734
    Added..........................................................12925
    Compliance date extension......................................55741
    Authority citation revised.....................................68577
    Amended; interim...............................................68585
772.11  (k)(1)(i), (ii), (l)(1)(i) and (ii) amended; interim........2103
772A  Redesignated from Part 772; nomenclature change; eff. 4-24-
        96; removed; eff. 11-1-96; interim.........................12734
    Removal at 61 FR 12734 eff. 12-31-96...........................55741
773  Supplement No. 1 amended; interim..............................2103
    Redesignated as Part 773A......................................12734
773A  Redesignated from Part 773; nomenclature change; eff. 4-24-
        96; removed; eff. 11-1-96; interim.........................12734
    Removal at 61 FR 12734 eff. 12-31-96...........................55741
774  Authority citation revised..............................2102, 68577
    Redesignated as Part 774A......................................12734
    Added..........................................................12937
    Compliance date extension......................................55741
774.2  (a)(1), (k)(1)(i) and (m) revised............................2103
774.3  (b)(3)(i) amended; interim...................................2103
    (b)(3)(ii)