[Title 15 CFR ]
[Code of Federal Regulations (annual edition) - January 1, 2004 Edition]
[From the U.S. Government Printing Office]



[[Page 1]]



                    15


          Parts 300 to 799

                         Revised as of January 1, 2004

Commerce and Foreign Trade





          Containing a codification of documents of general 
          applicability and future effect
          As of January 1, 2004
          With Ancillaries
          Published by
          Office of the Federal Register
          National Archives and Records
          Administration

A Special Edition of the Federal Register

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                     U.S. GOVERNMENT PRINTING OFFICE
                            WASHINGTON : 2004



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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                                     5
          Chapter IV--Foreign-Trade Zones Board, Department of 
          Commerce                                                  59
          Chapter VII--Bureau of Industry and Security, 
          Department of Commerce                                    79
  Finding Aids:
      Table of CFR Titles and Chapters........................     779
      Alphabetical List of Agencies Appearing in the CFR......     797
      List of CFR Sections Affected...........................     807

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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 16as of January 1...........
Title 17 through Title 27as of April 1............
Title 28 through Title 41as of July 1.............
Title 42 through Title 50as of October 1..........

    The appropriate revision date is printed on the cover of each 
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LEGAL STATUS

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HOW TO USE THE CODE OF FEDERAL REGULATIONS

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OMB CONTROL NUMBERS

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Federal agencies to display an OMB control number with their information 
collection request.

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Many agencies have begun publishing numerous OMB control numbers as 
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OBSOLETE PROVISIONS

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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, 2001, consult either the List of CFR Sections Affected, 1949-
1963, 1964-1972, 1973-1985, or 1986-2000, published in 11 separate 
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CFR INDEXES AND TABULAR GUIDES

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and Finding Aids. This volume contains the Parallel Table of Statutory 
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the revision dates of the 50 CFR titles.

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in the Code of Federal Regulations.

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                              Raymond A. Mosley,
                                    Director,
                          Office of the Federal Register.

January 1, 2004.

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                               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, 
Subtitle B, 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 
Industry and Security, 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, 2004.

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[[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 Industry and Security, Department of 
  Commerce..................................................         700

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

[[Page 5]]



 CHAPTER III--INTERNATIONAL TRADE ADMINISTRATION, DEPARTMENT OF COMMERCE




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

                 SUBCHAPTER A--MISCELLANEOUS REGULATIONS
Part                                                                Page
301             Instruments and apparatus for educational 
                    and scientific institutions.............           7
302             [Reserved]
303             Watches, watch movements and jewelry program          19
310             Official U.S. Government recognition of and 
                    participation in international 
                    expositions held in the United States...          36
315             Determination of bona fide motor-vehicle 
                    manufacturer............................          41
325             Export trade certificates of review.........          42
335             Imports of worsted wool fabric..............          51
340             Modification of the tariff rate quota 
                    limitation on worsted wool fabric 
                    imports.................................          55

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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 
          subheading 9810.00.60, HTSUS.
301.9 Uses and disposition of instruments entered under subheading 
          9810.00.60, HTSUS.
301.10 Importation of repair components and maintenance tools under 
          HTSUS subheadings 9810.00.65 and 9810.00.67 for instruments 
          previously the subject of an entry liquidated under subheading 
          9810.00.60, HTSUS.

    Authority: Sec. 6(c), Pub. L. 89-651, 80 Stat. 897, 899; Sec. 2402, 
Pub. L. 106-36, 113 Stat. 127, 168.

    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, 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) The Annex D provisions are implemented for U.S. purposes in 
Subchapter X, Chapter 98, Harmonized Tariff Schedule of the United 
States (HTSUS).
    (c) Summary of statutory procedures and requirements. (1) U.S. Note 
1, Subchapter X, Chapter 98, HTSUS, provides, among other things, that 
articles covered by subheadings 9810.00.60 (scientific instruments and 
apparatus), 9810.00.65 (repair components therefor) and 9810.00.67 
(tools for maintaining and testing the above), HTSUS, must be 
exclusively for the use of the institutions involved and not for 
distribution, sale, or other commercial use within five years after 
entry. These articles may be transferred to another qualified nonprofit 
institution, but any commercial use within five years of entry shall 
result in the assessment of applicable duties pursuant to Sec.  
301.9(c).
    (2) An institution wishing to enter an instrument or apparatus under 
tariff subheading 9810.00.60, HTSUS, must file an application with the 
Secretary of the Treasury (U.S. Customs Service) in accordance with the 
regulations in this section. 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) , who 
decides whether or not duty-free entry may be accorded the instrument 
and publishes the decision in the Federal Register. An appeal of the 
final decision may be filed with the U.S. Court of Appeals for the 
Federal Circuit, on questions of law only, within 20 days after 
publication in the Federal Register.
    (3) Repair components for instruments or apparatus admitted duty-
free

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under subheading 9810.00.60, HTSUS require no application and may be 
entered duty-free in accordance with the procedures prescribed in Sec.  
301.10.
    (4) Tools specifically designed to be used for the maintenance, 
checking, gauging or repair of instruments or apparatus admitted under 
subheadings 9810.00.65 and 9810.00.67, HTSUS, 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 U.S. Note 6, Subchapter X, Chapter 98, HTSUS. The 
Secretary of the Treasury has delegated authority to the Assistant 
Secretary for Enforcement, 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 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, as amended at 66 
FR 28832, May 25, 2001]



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 subheading 9810.00.60, HTSUS.
    (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 instruments and apparatus specified in U.S. 
Note 6(a), Subchapter X, Chapter 98, HTSUS. 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. The term 
``instrument'' also covers separable components of an instrument that 
are imported for assembly in the United States in such instrument where 
that instrument, due to its size, cannot feasibly be imported in its 
assembled state. The components, as well as the assembled instrument 
itself, must be classifiable under the tariff provisions listed in U.S. 
Note 6(a), Subchapter X, Chapter 98, HTSUS. See paragraph (k) of this 
section and Sec.  301.3(f). Unless the context indicates otherwise, 
instrument or apparatus shall mean a foreign ``instrument or apparatus'' 
for which duty-free entry is sought under subheading 9810.00.60, HTSUS. 
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 subheading 9813.00.30, 
HTSUS, subject to the provisions of U.S. Note 1(a), Subchapter XIII, 
Chapter 98, HTSUS, and must be exported or destroyed within the time 
period specified in that U.S. Note.
    (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 subheading 9810.00.60, HTSUS shall 
be the subject of a separate application when it is not an accompanying 
accessory. The existing instrument, for which the accessory is being 
purchased, may be domestic or, if foreign, it need not have entered duty 
free under subheading 9810.00.60, HTSUS.
    (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 subheading 9810.00.60, HTSUS 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. The above notwithstanding, separable components of some 
instruments may be eligible for duty-free treatment. See paragraph (f) 
of this section.
    (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

[[Page 10]]

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.
    (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 nanometers'') 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. Performance results on a 
test sample run at the applicant's request may be cited as evidence for 
or against a guaranteed specification.
    (s) Pertinent specifications are those specifications necessary for 
the accomplishment of the specific scientific research 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, characteristics such as size, weight, appearance, durability, 
reliability, complexity (or simplicity), ease of operation, ease of 
maintenance, productivity, versatility, ``state of the art'' design, 
specific design and compatibility with currently owned or ordered 
equipment are not pertinent unless the applicant demonstrates that the 
characteristic is necessary for the accomplishment of its scientific 
purposes.

[47 FR 32517, July 28, 1982; 47 FR 34368, Aug. 9, 1982, as amended at 66 
FR 28832, May 25, 2001]



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 subheading 9810.00.60, HTSUS 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

[[Page 11]]

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 of these copies 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 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) An application for components of an instrument to be assembled 
in the United States as described in Sec.  301.2(f) may be filed 
provided that all of the components for the complete, assembled 
instrument are covered by, and fully described in, the application. See 
also Sec.  301.2(k).
    (g) 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; 
66 FR 28833, May 25, 2001]



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 
subheading 9810.00.60, HTSUS. In making this determination, the 
Commissioner may require applicants to document their eligibility under 
this paragraph;
    (2) Whether the instrument or apparatus falls within the classes of 
instruments eligible for duty-free entry consideration under subheading 
9810.00.60, HTSUS. For eligible classes, see U.S. Note 6(a), Subchapter 
X, Chapter 98, HTSUS; and
    (3) Whether the instrument or apparatus is 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, lease 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, price discount or other 
valuable consideration. Evaluation, modification or testing of the 
foreign instrument, beyond normal, routine acceptance testing and 
calibration, to enhance or expand its capabilities primarily to benefit 
the manufacturer in return for a discount or other valuable 
consideration, may be considered a commercial benefit. 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

[[Page 12]]

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 under 
a claim of subheading 9810.00.60, HTSUS , 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; 66 FR 28833, May 25, 2001]



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

    (a) Public notice and opportunity to present views. (1) Within 5 
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 on the form. Failure to provide the requested 
information on time shall result in a denial of the application without 
prejudice to resubmission pursuant to paragraph (e) of this section.
    (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

[[Page 13]]

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.
    (4) Comments by domestic manufacturers. Comments of domestic 
manufacturers opposing the granting of an application should:
    (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 
issued an 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. The Director, at his discretion, may take into 
account factual information contained in untimely comments.
    (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 inform 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 taken into account by the Director when applications involving 
comparable foreign instruments are received. The provision of general 
comments does not preserve the provider's right to appeal the Director's 
decision.
    (b) Additions to the record. The Director may solicit from the 
applicant, from foreign or domestic manufacturers, their agents, or any 
other person or Government agency considered by the Director to have 
related competence, any additional information the Director considers 
necessary to make a decision. The Director may attach conditions and 
time limitations 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

[[Page 14]]

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 appropriate technical consultants for their advice.
    (3) The technical consultants relied upon for advice include, but 
are not limited to, the National Institutes of Health (delegated the 
function by the Secretary of HHS), the National Institute of Standards 
and Technology 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 brings together 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, 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 adaptation 
of the article at some unspecified future time.
    (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 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

[[Page 15]]

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 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.
    (5) Processing of applications for components. (i) The Director may 
process an application for components which

[[Page 16]]

are to be assembled in the United States into an instrument or apparatus 
which, due to its size, cannot be imported in its assembled state (see 
Sec.  301.2(k)) as if it were an application for the assembled 
instrument. A finding by the Director that no equivalent instrument is 
being manufactured in the United States shall, subject to paragraph 
(d)(5)(ii) of this section, qualify all the associated components, 
provided they are entered within the period established by the Director, 
taking into account both the scientific needs of the importing 
institution and the potential for development of related domestic 
manufacturing capacity.
    (ii) Notwithstanding a finding under paragraph (d)(5)(i) of this 
section that no equivalent instrument is being manufactured in the 
United States, the Director shall disqualify a particular component for 
duty-free treatment if the Director finds that the component is being 
manufactured in the United States.
    (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 it contains any deficiency which, in 
the Director's judgment, prevents a determination on its merits. The 
Director shall state the deficiencies of the application in the DWOP 
letter to the applicant.
    (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) If granted, extensions of time will generally be limited to 30 
days.
    (3) Resubmissions must reference the application number of the 
earlier submission. The resubmission may be made by letter to 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 on the application 
form. 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 made 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. 
Resubmission by fax, e-mail or other electronic means is acceptable 
provided an appropriate return number or address is provided in the 
transmittal. Resubmissions must clearly indicate the date of transmittal 
to the Director.
    (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 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.

[[Page 17]]

    (8) In the event an applicant fails to address the noted 
deficiencies in the response to the DWOP, the Director may deny the 
application.
    (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; 66 FR 28833, May 25, 2001]



Sec.  301.6  Appeals.

    (a) An appeal from a final decision made by the Director under Sec.  
301.5(f) may be taken in accordance with U.S. Note 6(e), Subchapter X, 
Chapter 98, HTSUS, only to the U.S. Court of Appeals for the Federal 
Circuit 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 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 Appeals for the Federal Circuit, Clerk's 
Office, Washington, DC 20439.

[47 FR 32517, July 28, 1982, as amended at 66 FR 28834, May 25, 2001]



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 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.
    (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.

[47 FR 32517, July 28, 1982, as amended at 66 FR 28834, May 25, 2001]

[[Page 18]]



Sec.  301.8  Instructions for entering instruments through U.S. Customs 
under subheading 9810.00.60, HTSUS.

    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 (as defined in 19 CFR 
101.1) that the instrument is entitled to duty-free classification under 
subheading 9810.00.60, HTSUS.
    (2) If no such claim is made the instrument shall be immediately 
classified without regard to subheading 9810.00.60, HTSUS , duty will be 
assessed, and the entry liquidated in the ordinary course.
    (3) If a claim is made for duty-free entry under subheading 
9810.00.60, HTSUS , 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 subheading 9810.00.60, 
HTSUS 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 subheading 
9810.00.60, HTSUS.
    (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, either by delaying importation or by 
placing the instrument in a bonded warehouse or foreign trade zone, 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 subheading 9810.00.60, HTSUS.
    (b) Normal Customs entry requirements. In addition to the entry 
requirements 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 this 
section 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 responsibilities and procedures for processing 
applications pursuant to other sections of these regulations.
    (d) Payment of duties. The importer of record will be billed for 
payment of duties when Customs determines that such payment is due. If a 
refund of a deposit made pursuant to paragraph

[[Page 19]]

(a)(4) of this section is due, the importer should contact Customs 
officials at the port of entry, not the Department of Commerce.

[47 FR 32517, July 28, 1982, as amended at 66 FR 28834, May 25, 2001]



Sec.  301.9  Uses and disposition of instruments entered under subheading 
9810.00.60, HTSUS.

    (a) An instrument granted duty-free entry may be transferred from 
the applicant institution to another eligible institution provided the 
receiving 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 subheading 9810.00.60, HTSUS 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.

[47 FR 32517, July 28, 1982, as amended at 66 FR 28834, May 25, 2001]



Sec.  301.10  Importation of repair components and maintenance tools 

under HTSUS subheadings 9810.00.65 and 9810.00.67 for instruments 
previously the subject of an entry liquidated under subheading 9810.00.60, 
HTSUS.

    (a) An institution owning an instrument that was the subject of an 
entry liquidated duty-free under subheading 9810.00.60, HTSUS, that 
wishes to enter repair components or maintenance tools for that 
instrument may do so without regard to the application procedures 
required for entry under subheading 9810.00.60, HTSUS. The institution 
must certify to Customs officials at the port of entry that such 
components are repair components for that instrument under subheading 
9810.00.65, HTSUS, or that the tools are maintenance tools necessary for 
the repair, checking, gauging or maintenance of that instrument under 
subheading 9810.00.67, HTSUS.
    (b) Instruments entered under subheading 9810.00.60, HTSUS, and 
subsequently returned to the foreign manufacturer for repair, 
replacement or modification are not covered by subheading 9810.00.65 or 
9810.00.67, HTSUS, although they may, upon return to the United States, 
be eligible for a reduced duty payment under subheading 9802.00.40 or 
9802.00.50, HTSUS (covering articles exported for repairs or 
alterations) or may be made the subject of a new application under 
subheading 9810.00.60, HTSUS.

[66 FR 28834, May 25, 2001]

                           PART 302 [RESERVED]



PART 303_WATCHES, WATCH MOVEMENTS AND JEWELRY PROGRAM--Table of Contents




                  Subpart A_Watches and Watch Movements

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.

[[Page 20]]

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

                            Subpart B_Jewelry

303.15 Purpose.
303.16 Definitions and forms.
303.17 Annual jewelry application.
303.18 Sale and transfer of business.
303.19 Issuance and use of production incentive certificates.
303.20 Duty refund.
303.21 Appeals.

    Authority: Pub. L. 97-446, 96 Stat. 2331 (19 U.S.C. 1202, note); 
Pub. L. 103-465, 108 Stat. 4991; Pub. L. 94-241, 90 Stat. 263 (48 U.S.C. 
1681, note); Pub. L. 106-36, 113 Stat. 127, 167.

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

    Editorial Note: Nomenclature changes to Part 303 appear at 68 FR 
56555, Oct. 1, 2003.



                  Subpart A_Watches and Watch Movements



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 Homeland Security. 
The Secretaries are authorized to issue regulations necessary to carry 
out their duties under Headnote 6 and may

[[Page 21]]

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, 
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 is a watch firm not affiliated through ownership or 
control with any other watch duty-refund recipient. In assessing whether 
persons or parties are affiliated, the Secretaries will consider the 
following factors, among others: stock ownership; corporate or family 
groupings; franchise or joint venture agreements; debt financing; and 
close supplier relationships. The Secretaries may not find that control 
exists on the basis of these factors unless the relationship has the 
potential to affect decisions concerning production, pricing, or cost. 
Also, no watch duty-refund recipient may own or control more than one 
jewelry duty-refund recipient. A new entrant is a new watch 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 an amount equal to 65% 
of the contribution and benefit base for Social Security as defined in 
the Social Security Act for the year in which the wages were earned, 
paid to permanent residents of the territories employed in a firm's 91/5 
watch and watch movement assembly operations, plus wages paid for the 
repair of non-91/5 watches up to an amount equal to 50% of the firm's 
total creditable wages, and for wages paid for the complete assembly of 
watches in the insular possession, with the exception of the movement, 
only in situations where the desired movement can not be purchased in an 
unassembled condition. Excluded, however, are wages paid to any outside 
consultants or other professional personnel, such as lawyers and 
accountants, or to those persons not involved in the day-to-day assembly 
operations or servicing and maintenance of equipment and fixtures 
necessary for the assembly or manufacturing operations or

[[Page 22]]

administrative work and security activities directly related to the 
operations of the company, such as gardeners or construction workers, 
and for the repair of non-91/5 watches and movements to the extent that 
such wages exceed the foregoing percentage. 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 Bureau of Customs and Border Protection but do not include, for 
purposes of the duty refund, watches that are completely assembled in 
the insular possessions, with the exception of a desired movement if the 
movement cannot be purchased in an unassembled condition; contains 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 
Departments have determined not to involve substantial and meaningful 
work in the territories (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.)
    (16) Permanent resident means a person with one residence which is 
in the insular possessions or a person with one or more residences 
outside the insular possessions who meets criteria that include 
maintaining his or her domicile in the insular possessions, residing 
(i.e., be physically present for at least 183 days per year) and working 
in the territory at a program company, and maintaining his or her 
primary office for day-to-day work in the insular possessions.
    (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 and by producers who wish to receive the duty refund in 
installments on a biannual basis.
    (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 
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

[[Page 23]]

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)[hairsp](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, 
55885, Oct. 30, 1996; 65 FR 8049, Feb. 17, 2000; 66 FR 34812, July 2, 
2001; 67 FR 77408, Dec. 18, 2002; 68 FR 56555, Oct. 1, 2003]



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 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%

[[Page 24]]

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 Bureau of Customs and Border Protection;
    (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, including documentation on 
the purchase of any preassembled movements, which demonstrate that such 
movements could not have been purchased from the vendor in an 
unassembled condition, and records on the sales of insular watches and 
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 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; 68 FR 56556, Oct. 1, 2003]



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 Bureau of Customs and Border Protection, or verified by other 
means satisfctory to the Secretaries, 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

[[Page 25]]

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;
    (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

[[Page 26]]

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; 63 FR 5888, Feb. 5, 1998]



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 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. Bureau of Customs and Border Protection 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:

[[Page 27]]

    (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 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

[[Page 28]]

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]



Sec. Sec.  303.10-303.11  [Reserved]



Sec.  303.12  Issuance and use of production incentive certificates.

    (a) Issuance of certificates. (1) The total annual amount of the 
Certificate of Entitlement, Form ITA-360, may be divided and issued on a 
biannual basis. The first portion of the total annual certificate amount 
will be based on reported duty-free shipments and creditable wages paid 
during the first six months of the calendar year, using the formula in 
Sec.  303.14(c). The Departments require the receipt of the data by July 
31 for each producer who wishes to receive an interim duty refund 
certificate. The interim duty refund certificate will be issued on or 
before August 31 of the same calendar year in which the wages were 
earned unless the Departments have unresolved questions. The process of 
determining the total annual amount of the duty refund will remain the 
same. The completed annual application (Form ITA-334P) shall be received 
by the Departments on or before January 31 and the annual verification 
of data and the calculation of each producer's total annual duty refund, 
based on the verified data, will continue to take place in February. 
Once the calculations for each producer's duty refund has been 
completed, the portion of the duty refund that has already been issued 
to each producer will be deducted from the total amount of each 
producer's annual duty refund amount. The duty refund certificate will 
continue to be issued by March 1 unless the Departments have unresolved 
questions.
    (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 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.

[[Page 29]]

    (2) Regulations issued by the Bureau of Customs and Border 
Protection, U.S. Department of Homeland Security, govern the refund of 
duties under Pub. L. 97-446, as amended by Public Law 103-465. If the 
Departments receive information from the Bureau of Customs and Border 
Protection 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; 66 FR 34812, July 
2, 2001]



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]



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

[[Page 30]]

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 an 
amount equal to 65% of the contribution and benefit base for Social 
Security as defined in the Social Security Act for the year in which the 
wages were earned, 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 $500 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. Applications from new firms are invited 
for any unused portion of any territorial share.
    (e) Territorial shares. The shares of the total duty exemption are 
1,866,000 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. 30, 1996; 63 FR 49667, 
Sept. 17, 1998; 65 FR 8049, Feb. 17, 2000]



                            Subpart B_Jewelry

    Source: 64 FR 67150, Dec. 1, 1999, unless otherwise noted.

[[Page 31]]



Sec.  303.15  Purpose.

    (a) This subpart implements the responsibilities of the Secretaries 
of Commerce and the Interior (``the Secretaries'') under Pub. L. 106-36, 
enacted 25 June 1999 which substantially amended Pub. L. 97-446, enacted 
12 January 1983, amended by Pub. L. 89-805, enacted 10 November 1966, 
amended by Pub. L. 94-88, enacted 8 August 1975, amended by Pub. L. 94-
241, enacted 24 March 1976, and amended by Pub. L. 103-465, enacted 8 
December 1994.
    (b) The amended law provides for the issuance of certificates to 
insular jewelry producers who have met the requirements of the laws and 
regulations, entitling the holder (or any transferee) to obtain refunds 
of duties on watches and watch movements and parts (except discrete 
watch cases) 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 duty-free 
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. However, the law 
specifies that watch producer benefits are not to be diminished as a 
consequence of extending the duty refund to jewelry manufacturers. In 
the event that the amount of the calculated duty refunds for watches and 
jewelry exceeds the total aggregate annual amount that is available, the 
watch producers shall receive their calculated amounts and the jewelry 
producers would receive amounts proportionately reduced from the 
remainder. Refund requests are governed by regulations issued by the 
Department of Homeland Security (see 19 CFR 7.4).
    (c) Section 2401(a) of Pub. L. 106-36 and additional U.S. note 5 to 
chapter 91 of the HTSUS authorize the Secretaries to issue regulations 
necessary to carry out their duties. The Secretaries may cancel or 
restrict the certificate of any insular manufacturer found violating the 
regulations.



Sec.  303.16  Definitions and forms.

    (a) Definitions. For purposes of the subpart, unless the context 
indicates otherwise:
    (1) Act means Pub. L. 97-446, enacted 12 January 1983 (19 U.S.C. 
1202), 96 Stat. 2329, as amended by Pub. L. 103-465, enacted on 8 
December 1994, 108 Stat. 4991 and, as amended by Pub. L. 106-36, enacted 
on 25 June 1999.
    (2) Secretaries means the Secretary of Commerce and the Secretary of 
the 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 transfer of a business means the sale or transfer of 
control, whether temporary or permanent, over a firm which is eligible 
for a jewelry program duty-refund to any other firm, corporation, 
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 a jewelry company which has requested in writing 
to the Secretaries permission to participate in the program. In addition 
to any other information required by the Secretaries, new firm requests 
shall include a representation that the company agrees to abide by the 
laws and regulations of the program, an outline of the company's 
anticipated economic contribution to the territory (including the number 
of employees) and a statement as to whether the company is affiliated by 
ownership or control with any other watch or jewelry company in the 
insular possessions. The Secretaries will then review the request and 
make a decision based on the information provided and the economic 
contribution to the territory. A new jewelry firm may not be affiliated 
through ownership or control with any other jewelry duty-refund 
recipient. In assessing whether persons or parties are affiliated, the 
Secretaries will consider the following factors, among others: stock 
ownership; corporate or family groupings; franchise or joint venture

[[Page 32]]

agreements; debt financing; and close supplier relationships. The 
Secretaries may not find that control exists on the basis of these 
factors unless the relationship has the potential to affect decisions 
concerning production, pricing, or cost. Also, no jewelry duty-refund 
recipient may own or control more than one watch duty-refund recipient.
    (6) Jewelry producer means a company, located in one of the insular 
territories (see paragraph (a)(8) of this section), that produces 
jewelry provided for in heading 7113, HTSUS, which meets all the Bureau 
of Customs and Border Protection requirements for duty-free entry set 
forth in General Note 3(a)(iv), HTSUS, and 19 CFR 7.3, and has 
maintained its eligibility for duty refund benefits by complying with 
these regulations.
    (7) Unit of jewelry means a single article, pair (example: earrings, 
cufflinks), subassembly or component which is contained in HTSUS heading 
7113.
    (8) Territories, territorial and insular possessions refers to the 
insular possessions of the United States (i.e., the U.S. Virgin Islands, 
Guam, American Samoa and the Northern Mariana Islands).
    (9) Creditable wages means all wages, up to an amount equal to 65% 
of the contribution and benefit base for Social Security as defined in 
the Social Security Act for the year in which the wages were earned, 
paid to permanent residents of the territories employed in the firm's 
manufacture of HTSUS heading 7113 articles of jewelry which are a 
product of the insular possessions and have met the Bureau of Customs 
and Border Protection's criteria for duty-free entry into the United 
States, plus any wages paid for the repair of non-insular HTSUS heading 
7113 jewelry up to an amount equal to 50 percent of the firm's total 
creditable wages. Excluded, however, are wages paid for outside 
consultants or other professional personnel, such as lawyers and 
accountants, or those persons not involved in the day-to-day assembly 
operations or servicing and maintenance of equipment and fixtures 
necessary for the assembly or manufacturing operations or the 
administrative work and security activities directly related to the 
operations of the company, such as gardeners or construction workers, 
plus any wages paid for the assembly of dutiable jewelry or for the 
repair of dutiable jewelry to the extent that such wages exceed the 
percentage set forth above. No more than two insular producers may have 
their wages credited for their portion of the wages paid for work on a 
single piece of jewelry which entered the U.S. free of duty under the 
program. Wages paid by the two producers will be credited proportionally 
provided both producers demonstrate to the satisfaction of the 
Secretaries that they worked on the same piece of jewelry, the jewelry 
received duty-free treatment into the U.S., and the producers maintained 
production and payroll records sufficient for the Departments' 
verification of the creditable wage portion (see Sec.  303.17(b)). Wages 
paid to persons engaged in production of jewelry that has entered the 
U.S. both duty-free and duty-paid may be credited proportionately 
provided the firm maintains production and payroll records adequate for 
the Departments' verification of the creditable wages portion (see Sec. 
303.17(b)).
    (10) Dutiable jewelry includes jewelry which does not meet the 
requirements for duty-free entry under General Note 3(a)(iv), HTSUS, and 
19 CFR 7.3, contains any material which is the product of any country 
with respect to which Column 2 rates of duty apply or is ineligible for 
duty-free treatment pursuant to other laws or regulations.
    (11) Permanent resident means a person with one residence which is 
in the insular possessions or a person with one or more residences 
outside the insular possessions who meets criteria that include 
maintaining his or her domicile in the insular possessions, residing 
(i.e., be physically present for at least 183 days per year) and working 
in the territory at a program company, and maintaining his or her 
primary office for day-to-day work in the insular possessions.
    (b) Forms. (1) ITA--334P ``Annual Application for License to Enter 
Watches and Watch Movements into the Customs Territory of the United 
States.'' The Director shall issue instructions for jewelry 
manufacturers on the completion of the relevant portions of the

[[Page 33]]

form. The form must be completed annually by all jewelry producers 
desiring to receive a duty refund and, with special instructions for its 
completion, by producers who wish to receive the total annual amount of 
the duty refund in installments on a biannual basis.
    (2) ITA--360P ``Certificate of Entitlement to Secure the Refund of 
Duties on Watches and Watch Movements.'' This document authorizes a 
territorial jewelry 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.
    (3) 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. 303.19(c)).

(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) (2) 
and (3) were approved under control number 0625-0134)

[64 FR 67150, Dec. 1, 1999, as amended at 65 FR 8049, Feb. 17, 2000; 66 
FR 34812, July 2, 2001; 67 FR 77409, Dec. 18, 2202]



Sec.  303.17  Annual jewelry application.

    (a) Form 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 duty refund shall be made to producers 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, but not limited to:
    (1) Work sheets used to answer all questions on the application 
form, as specified by the instructions;
    (2) Original records from which such data are derived;
    (3) Records pertaining to ownership and control of the company;
    (4) Records pertaining to all duty-free and dutiable shipments of 
HTSUS 7113 jewelry, including Customs entry documents, or the 
certificate of origin for the shipment, or, if a company did not receive 
such documents from Customs, a certification from the consignee that the 
jewelry shipment received duty-free treatment, or a certification from 
the producer, if the producer can attest that the jewelry shipment 
received duty-free treatment;
    (5) Records pertaining to corporate income taxes, gross receipts 
taxes and excise taxes paid by each producer in the territories;
    (6) Customs, bank, payroll, and production records;
    (7) Records on purchases of components and sales of jewelry, 
including proof of payment; and
    (8) Any other records in the possession of the parent or affiliated 
companies outside the territory pertaining to any aspect of the 
producer's jewelry operations.
    (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, the Secretaries shall determine which data will be 
used.
    (d) Records subject to the requirements of paragraph (b) of this 
section, shall be retained for a period of two years following their 
creation.

[49 FR 17740, Apr. 25, 1984, as amended at 66 FR 34813, July 2, 2001]



Sec.  303.18  Sale or transfer of business.

    (a) The sale or transfer of a business together with its duty refund 
entitlement shall be permitted with prior

[[Page 34]]

written notification to the Departments. Such notification shall be 
accompanied by certifications and representations, as appropriate, that:
    (1) The transferee is neither directly nor indirectly affiliated 
with any other territorial duty refund jewelry recipient in any 
territory;
    (2) The transferee will not modify the jewelry operations in a 
manner that will significantly diminish its economic contributions to 
the territory.
    (b) 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 (a) of this section have been or 
are being met.
    (c) Any transferee who is either unwilling or unable to make the 
certifications and representations specified in paragraph (a) of this 
section shall secure the Departments' approval in advance of the sale or 
transfer of the business. The request for approval shall specify which 
of the certifications specified in paragraph (a) 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.



Sec.  303.19  Issuance and use of production incentive certificates.

    (a) Issuance of certificates. (1) The total annual amount of the 
Certificate of Entitlement, Form ITA-360, may be divided and issued on a 
biannual basis. The first portion of the total annual certificate amount 
will be based on reported duty-free shipments and creditable wages paid 
during the first six month of the calendar year, using the formula in 
Sec.  303.20(b). The Departments require the receipt of the data by July 
31 for each producer who wishes to receive an interim duty refund 
certificate. The interim duty refund certificate will be issued on or 
before August 31 of the same year in which the wages were earned unless 
the Departments have unresolved questions. The process of determining 
the total annual amount of the duty refund will remain the same. The 
completed annual application (Form ITA-334P) shall be received by the 
Departments on or before January 31 and the annual verification of data 
and calculation of each producer's total annual duty refund, based on 
the verified data, will continue to take place in February. Once the 
calculations for each producer's duty refund has been completed, the 
portion of the duty refund that has already been issued to each producer 
will be deducted from the total amount of each producer's annual duty 
refund amount. The duty refund certificate will continue to be issued by 
March 1 unless the Departments have unresolved questions.
    (2) Certificates shall not be issued to more than one jewelry 
company in the territories owned or controlled by the same corporate 
entity.
    (b) Security 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 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 Department of Commerce 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 paragraph (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. 303.16(b)(3)) and the instructions on the form). 
After authentication by the Department of Commerce, Form ITA-361P may be 
used to obtain duty refunds on watch movements, watches, and parts 
therefor. Duties on watch cases 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

[[Page 35]]

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 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 Bureau of Customs and Border 
Protection, U.S. Department of Homeland Security, govern the refund of 
duties under 19 CFR 7.4. If the Departments receive information from the 
Bureau of Customs and Border Protection that a producer has made 
unauthorized use of any official form, they may cancel the affected 
certificate.
    (3) The territorial 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) of this section).
    (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.  303.21 of this part.

[49 FR 17740, Apr. 25, 1984, as amended at 66 FR 34813, July 2, 2001]



Sec.  303.20  Duty refund.

    (a) Territorial jewelry producers are entitled to duty refund 
certificates only for jewelry that they produce which is provided for in 
heading 7113, HTSUS, is a product of a territory and otherwise meets the 
requirements for duty-free entry under General Note 3 (a)(iv), HTSUS, 
and 19 CFR 7.3.
    (1) An article of jewelry is considered to be a product of a 
territory if:
    (i) The article is wholly the growth or product of the territory; or
    (ii) The article became a new and different article of commerce as a 
result of production or manufacture performed in the territories.
    (2) Two-year exception. Any article of jewelry provided for in 
heading 7113, HTSUS, entered or withdrawn from warehouse for consumption 
during the two-year period beginning August 9, 1999, that is assembled 
in a territory shall be considered a product of the insular possessions. 
At the expiration of the two-year period, only jewelry which satisfies 
either of the criteria set forth in paragraph (a)(1) of this section 
shall be considered a product of an insular possession.
    (b) 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 free of duty into the United 
States 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.  303.17(c).



Sec.  303.21  Appeals.

    (a) Any official decision or action relating 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

[[Page 36]]

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, DC 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 or 
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, certified or express mail.



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.



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\

[[Page 37]]

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 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:


[[Page 38]]


    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.)
    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,

[[Page 39]]

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]



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

[[Page 40]]

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 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.

[[Page 41]]

    (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 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

[[Page 42]]

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 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.

[[Page 43]]

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. 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--

[[Page 44]]

    (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 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

[[Page 45]]

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, 
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.

[[Page 46]]

    (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 
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

[[Page 47]]

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, 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

[[Page 48]]

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 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.

[[Page 49]]

    (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, 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

[[Page 50]]

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 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.

[[Page 51]]

    (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--
    (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.



PART 335_IMPORTS OF WORSTED WOOL FABRIC--Table of Contents




Sec.
335.1 Purpose.
335.2 Definitions.
335.3 Applications to receive allocation.
335.4 Allocation.
335.5 Licenses.
335.6 Surrender, reallocation and license utilization requirement.
335.7 Modifications of the limitation.

    Authority: Title V Pub. L. 106-200, 114 Stat. 299; Presidential 
Proclamation 7383 (December 1, 2000).

    Source: 66 FR 6461, Jan. 22, 2001, unless otherwise noted.



Sec.  335.1  Purpose.

    This part sets forth regulations regarding the issuance and effect 
of licenses for the allocation of Worsted Wool Fabric under the Tariff 
Rate

[[Page 52]]

Quotas established by Section 501 of the Act.



Sec.  335.2  Definitions.

    For purposes of these regulations and the forms used to implement 
them:
    The Act means the Trade and Development Act of 2000 (Public Law No. 
106-200, 114 Stat 251).
    The Department means the United States Department of Commerce.
    HTS means the Harmonized Tariff Schedule of the United States.
    Imports subject to Tariff Rate Quotas are defined by date of 
presentation as defined in 19 CFR 132.1(d) and 19 CFR 132.11(a).
    Licensee means an applicant for an allocation of the Tariff Rate 
Quotas that receives an allocation and a license.
    Production means cutting and sewing garments in the United States.
    Tariff Rate Quota or Quotas means the temporary duty reduction 
provided under Section 501 of the Act for limited quantities of fabrics 
of worsted wool with average diameters greater than 18.5 micron, 
certified by the importer as suitable for use in making suits, suit-type 
jackets, or trousers (HTS heading 9902.51.11), and for limited 
quantities of fabrics of worsted wool with average diameters of 18.5 
microns or less, certified by the importer as suitable for use in making 
suits, suit-type jackets, or trousers (HTS heading 9902.51.12).
    Tariff Rate Quota Year means a calendar year for which the Tariff 
Rate Quotas are in effect.
    Worsted Wool Fabric means fabric containing at least 85 percent by 
weight worsted wool.
    Worsted Wool Suits means men's and boys' worsted wool suits, 
containing at least 85 percent by weight worsted wool fabric.
    Worsted Wool Suit-Type Jackets mean men's and boys' worsted wool 
suit-type jackets, containing at least 85 percent by weight worsted wool 
fabric.
    Worsted Wool Trousers means men's and boys' worsted wool trousers, 
containing at least 85 percent by weight worsted wool fabric.



Sec.  335.3  Applications to receive allocation.

    (a) In each year prior to a Tariff Rate Quota Year, the Department 
will cause to be published a Federal Register notice soliciting 
applications to receive an allocation of the Tariff Rate Quotas.
    (b) An application for a Tariff Rate Quota allocation must be 
received, or postmarked by the U.S. Postal Service, within 30 calendar 
days after the date of publication of the Federal Register notice 
soliciting applications.
    (c) During the calendar year of the date of the application, an 
applicant must have cut and sewed in the United States all three of the 
following apparel products: Worsted Wool Suits, Worsted Wool Suit-Type 
Jackets, and Worsted Wool Trousers. The applicant may either have cut 
and sewn these products on its own behalf or had another person cut and 
sew the products on the applicant's behalf, provided the applicant owned 
the fabric at the time it was cut and sewn. The application must contain 
a statement to this effect.
    (d) An applicant must provide the following information in the 
format set forth in the application form provided by the Department:
    (1) Identification. Applicant's name, address, telephone number, fax 
number, and federal tax identification number; name of person submitting 
the application, and title, or capacity in which the person is acting 
for the applicant.
    (2) Production. Name and address of each plant or location where 
Worsted Wool Suits, Worsted Wool Suit-Type Jackets, and Worsted Wool 
Trousers were cut and sewn by the applicant and the name and address of 
all plants or locations that cut and sewed such products on behalf of 
the applicant. Production data, including the following: the quantity 
and value of the Worsted Wool Suits, Worsted Wool Suit-Type Jackets, and 
Worsted Wool Trousers cut and sewn in the United States by applicant, or 
on behalf of applicant, from fabric owned by applicant. This data must 
indicate actual production (not estimates) of Worsted Wool Suits, 
Worsted Wool Suit-Type Jackets and Worsted Wool Trousers containing at

[[Page 53]]

least 85 percent worsted wool fabric by weight with an average diameter 
of 18.5 microns or less. This data must also indicate actual production 
(not estimates) of Worsted Wool Suits, Worsted Wool Suit-Type Jackets 
and Worsted Wool Trousers containing at least 85 percent worsted wool 
fabric by weight with average diameter greater than 18.5 microns. 
Production data must be provided for the first six months of the year of 
the application. This data will be annualized for the purpose of making 
Tariff Rate Quota allocations.
    (3) 2000 Production Data. For applications for the 2001 Tariff Rate 
Quota Year, if production data is not available by micron count, the 
following method of estimating micron count will be accepted: To 
estimate production of Worsted Wool Suits, Worsted Wool Suit-Type 
Jackets and Worsted Wool Trousers made from worsted wool fabric with 
average diameter 18.5 microns or less, use a value of $8.50 per square 
meter (f.o.b. plant) or more for such garments made from domestic fabric 
and $12.50 per square meter (c.i.f. duty paid landed value) or more for 
such garments made from imported fabric. To estimate production of such 
garments made from worsted wool fabric with average diameter greater 
than 18.5 microns, use a value of less than $8.50 per square meter 
(f.o.b. plant) for such garments made from domestic fabric and less than 
$12.50 (c.i.f. duty paid landed value) per square meter for such 
garments made from imported fabric.
    (4) Worsted Wool Fabric. Data indicating the quantity and value of 
the Worsted Wool Fabric used in reported production.
    (5) Certification. A statement by the applicant (if a natural 
person), or on behalf of applicant, by an employee, officer or agent, 
with personal knowledge of the matters set out in the application, 
certifying that the information contained therein is complete and 
accurate, signed and sworn before a Notary Public, and acknowledging 
that false representations to a federal agency may result in criminal 
penalties under federal law.
    (e) Confidentiality. Any business confidential information provided 
pursuant to this section that is marked business confidential will be 
kept confidential and protected from disclosure to the full extent 
permitted by law.
    (f) Record Retention: The applicant shall retain records 
substantiating the information provided in Sec.  335.3(d)(2), (3), and 
(4) for a period of 3 years and the records must be made available upon 
request by an appropriate U.S. government official.



Sec.  335.4  Allocation.

    (a) Each Tariff Rate Quota (HTS 9902.51.11 and HTS 9902.51.12) will 
be allocated separately. Allocation will be based on an applicant's 
Worsted Wool Suit production, on a weighted average basis, and the 
proportion of imported Worsted Wool Fabric consumed in the production of 
Worsted Wool Suits.
    (b) For the purpose of calculating allocations, Worsted Wool Suit 
production will be increased by the percentage of imported fabric 
consumed in the production of Worsted Wool Suits to total fabric 
consumed in this production. For example, if an applicant uses 30 
percent imported fabric in the production of Worsted Wool Suits, that 
applicant's production level will be increased by 30 percent.
    (c) The Department will cause to be published in the Federal 
Register its determination to allocate the Tariff Rate Quotas and will 
notify applicants of their respective allocation as soon as possible. 
Promptly thereafter, the Department will issue licenses.



Sec.  335.5  Licenses.

    (a) Each Licensee will receive a license, which will include a 
unique control number. The license is subject to the surrender and 
reallocation provisions in Sec.  335.6.
    (b) A license may be exercised only for fabric entered for 
consumption, or withdrawn from warehouse for consumption, during the 
Tariff Rate Quota Year specified in the license. A license will be 
debited on the basis of date of entry for consumption or withdrawal from 
warehouse for consumption.
    (c) A Licensee may import fabric certified by the importer as 
suitable for use in making suits, suit-type jackets, or trousers under 
the appropriate Tariff Rate Quota as specified in the license (i.e., 
under the Tariff Rate Quota

[[Page 54]]

for fabric of worsted wool with average fiber diameters greater than 
18.5 micron or the Tariff Rate Quota for fabric of worsted wool with 
average fiber diameters of 18.5 micron or less) up to the quantity 
specified in the license subject to the Tariff Rate Quota duty rate. 
Only a Licensee or an importer authorized by a Licensee will be 
permitted to import fabric under the Tariff Rate Quotas and to receive 
the Tariff Rate Quota duty rate.
    (d) The term of a license shall be the Tariff Rate Quota Year for 
which it is issued. Fabric may be entered or withdrawn from warehouse 
for consumption under a license only during the term of that license. 
The license cannot be used for fabric entered or withdrawn from 
warehouse for consumption after December 31 of the year of the term of 
the license.
    (e) The importer of record of fabric entered or withdrawn from 
warehouse for consumption under a license must be the Licensee or an 
importer authorized by the Licensee to act on its behalf. If the 
importer of record is the Licensee, the importer must possess the 
license at the time of filing the entry summary or warehouse withdrawal 
for consumption (Customs Form 7501).
    (f) A Licensee may only authorize an importer to import fabric under 
the license on its behalf by making such an authorization in writing or 
by electronic notice to the importer and providing a copy of such 
authorization to the Department. A Licensee may only withdraw 
authorization from an importer by notifying the importer, in writing or 
by electronic notice, and providing a copy to the Department.
    (g) The written authorization must include the unique number of the 
license, must specifically cover the type of fabric imported, and must 
be in the possession of the importer at the time of filing the entry 
summary or warehouse withdrawal for consumption (Customs Form 7501), or 
its electronic equivalent, in order for the importer to obtain the 
applicable Tariff Rate Quota duty rate.
    (h) It is the responsibility of the Licensee to safeguard the use of 
the license issued. The Department and the U.S. Customs Service will not 
be liable for any unauthorized or improper use of the license.



Sec.  335.6  Surrender, reallocation and license utilization requirement.

    (a) Not later than September 30 of each Tariff Rate Quota Year, a 
Licensee that will not import the full quantity granted in a license 
during the Tariff Rate Quota Year shall surrender the allocation that 
will not be used to the Department for purposes of reallocation through 
a written or electronic notice to the Department, including the license 
control number and the amount being surrendered. The surrender shall be 
final, and shall apply only to that Tariff Rate Quota Year.
    (b) For purposes of this section, ``unused allocation'' means the 
amount by which the quantity set forth in a license, including any 
additional amount received pursuant to paragraph (d) of this section, 
exceeds the quantity entered under the license, excluding any amount 
surrendered pursuant to paragraph (a) of this section.
    (c) The Department will notify Licensees of any amount surrendered 
and the application period for requests for reallocation. A Licensee 
that has imported, or intends to import, a quantity of Worsted Wool 
Fabric exceeding the quantity set forth in its license may apply to 
receive additional allocation from the amount to be reallocated. The 
application shall state the maximum amount of additional allocation the 
applicant will be able to use.
    (d) The amount surrendered will be reallocated to Licensees that 
have applied for reallocation. The entire amount surrendered will be 
reallocated pro-rata among applicants based on the applicant's share of 
the annual allocation, but will not exceed the amount set forth in the 
reallocation application as the maximum amount able to be used.
    (e) A Licensee whose unused allocation in a Tariff Rate Quota Year 
exceeds five percent of the quantity set forth in its license shall be 
subject to having its allocation reduced in the subsequent Tariff Rate 
Quota Year. The subsequent Tariff Rate Quota Year allocation will be 
reduced from the quantity such Licensee would otherwise have received by 
a quantity equal

[[Page 55]]

to 25 percent of its unused allocation from the prior year. A Licensee 
whose unused allocation in two consecutive Tariff Rate Quota Years 
exceeds five percent of the quantity set forth in its license shall have 
its allocation reduced in the subsequent Tariff Rate Quota Year by a 
quantity equal to 50 percent of its unused allocation from the prior 
year.
    (f) No penalty will be imposed under paragraph (e) of this section 
if the Licensee demonstrates to the satisfaction of the Department that 
the unused allocation resulted from breach by a carrier of its contract 
of carriage, breach by a supplier of its contract to supply the fabric, 
act of God, or force majeure.



Sec.  335.7  Modifications of the limitation.

    In the event the limitation on the quantity of imports of Worsted 
Wool Fabric under the Tariff Rate Quotas is increased, the increase will 
be allocated on the same basis as the rest of the Tariff Rate Quotas. 
Licenses will be issued or adjusted accordingly.



PART 340_MODIFICATION OF THE TARIFF RATE QUOTA LIMITATION ON WORSTED 
WOOL FABRIC IMPORTS--Table of Contents




Sec.
340.1 Purpose.
340.2 Definitions.
340.3 Requests for modification.
340.4 Comments regarding requested modification.
340.5 Requests for modification and comments.
340.6 Requests for additional information.
340.7 Determination.

    Authority: Pub. L. 106-200, 114 Stat. 299; Presidential Proclamation 
7383 (December 1, 2000).

    Source: 66 FR 6463, Jan. 22, 2001, unless otherwise noted.



Sec.  340.1  Purpose.

    This part sets forth regulations regarding the procedures for 
considering requests to modify the limitations on the quantity of 
imports of fabrics of worsted wool under the Tariff Rate Quotas 
established by Section 501 of the Act. Section 504 of the Act requires 
annual consideration of such requests made by U.S. manufacturers of 
certain apparel products made of Worsted Wool Fabrics and grants the 
authority to modify the limitations.



Sec.  340.2  Definitions.

    For purposes of these regulations and the forms used to implement 
them:
    The Act means the Trade and Development Act of 2000 (Public Law No. 
106-200, 114 Stat 251).
    The Department means the United States Department of Commerce.
    HTS means the Harmonized Tariff Schedule of the United States.
    Imports subject to Tariff Rate Quotas are defined by date of 
presentation as defined in 19 CFR 132.1(d) and 19 CFR 132.11(a).
    Production means cutting and sewing garments in the United States.
    Tariff Rate Quota or Quotas means the temporary duty reduction 
provided under Section 501 of the Act for limited quantities of fabrics 
of worsted wool with average diameters greater than 18.5 micron, 
certified by the importer as suitable for use in making suits, suit-type 
jackets, or trousers (HTS heading 9902.51.11), and for limited 
quantities of fabrics of worsted wool with average diameters of 18.5 
microns or less, certified by the importer as suitable for use in making 
suits, suit-type jackets, or trousers (HTS heading 9902.51.12).
    Tariff Rate Quota Year means a calendar year for which the Tariff 
Rate Quotas are in effect.
    Worsted Wool Fabric means fabric containing at least 85 percent by 
weight worsted wool.
    Worsted Wool Suits means men's and boys' worsted wool suits, 
containing at least 85 percent by weight worsted wool fabric.
    Worsted Wool Suit-Type Jackets mean men's and boys' worsted wool 
suit-type jackets, containing at least 85 percent by weight worsted wool 
fabric.
    Worsted Wool Trousers means men's and boys' worsted wool trousers, 
containing at least 85 percent by weight worsted wool fabric.



Sec.  340.3  Requests for modification.

    (a) On an annual basis, the Department will cause to be published a 
Federal Register notice soliciting requests from U.S. manufacturers of

[[Page 56]]

Worsted Wool Suits, Worsted Wool Suit-Type Jackets, and Worsted Wool 
Trousers to modify the limitations on the quantity of imports of fabrics 
of worsted wool under the Tariff Rate Quotas. Requests must be received, 
or postmarked, on a date no later than 15 calendar days after the date 
of the Federal Register notice.
    (b) A request shall include:
    (1) The name, address, telephone number, fax number, and Internal 
Revenue Service number of the requester;
    (2) The relevant worsted wool apparel product(s) manufactured by the 
person(s), that is, Worsted Wool Suits, Worsted Wool Suit-Type Jackets, 
or Worsted Wool Trousers;
    (3) The modification requested, including the amount of the 
modification and the limitation that is the subject of the request (HTS 
heading 9902.51.11 and/or 9902.51.12); and
    (4) A statement of the basis for the request, including all relevant 
facts and circumstances.
    (c) A request should include the following information for each 
limitation that is the subject of the request, to the extent available:
    (1) A list of suppliers from which the requester purchased 
domestically produced Worsted Wool Fabric during the 12 months preceding 
the request, the dates of such purchases, the quantity purchased, the 
quantity of imported Worsted Wool Fabric purchased, the countries of 
origin of the imported Worsted Wool Fabric purchased, the average price 
paid per square meter of the domestically produced Worsted Wool Fabric 
purchased, and the average price paid per square meter of the imported 
Worsted Wool Fabric purchased;
    (2) A list of domestic Worsted Wool Fabric producers that declined, 
on request, to sell Worsted Wool Fabric to the requester during the 12 
months preceding the request, indicating the product requested, the date 
of the order, the price quoted, and the reason for the refusal;
    (3) The requester's domestic production and sales for the most 
recent six month period for which such data is available and the 
comparable six month period in the previous year, for each of the 
following products: Worsted Wool Suits, Worsted Wool Suit-Type Jackets, 
or Worsted Wool Trousers;
    (4) Evidence that the requester lost production or sales due to an 
inadequate supply of domestically-produced Worsted Wool Fabric on a cost 
competitive basis; and
    (5) Other evidence of the inability of domestic producers of Worsted 
Wool Fabric to supply domestically produced Worsted Wool Fabric to the 
requester.



Sec.  340.4  Comments regarding requested modification.

    (a) If the Department receives a request or requests from a U.S. 
manufacturer under Sec.  340.3, the Department will cause to be 
published in the Federal Register a notice summarizing the request or 
requests and soliciting comments from any interested person, including 
U.S. manufacturers of Worsted Wool Fabric, wool yarn, wool top and wool 
fiber, regarding the requested modification. Comments must be received, 
or postmarked, on a date not later than 20 calendar days after the date 
of the Federal Register notice.
    (b) If the person submitting comments is a domestic producer of 
Worsted Wool Fabric, comments should include, to the extent available, 
the following information for each limitation with respect to which 
comments are being made:
    (1) A list of domestic manufacturers of Worsted Wool Suits, Suit-
Type Jackets, or Trousers for whom orders were filled during the twelve 
months prior to the submission of the comments, the date of such orders, 
the total quantity ordered and supplied in square meters of domestically 
produced Worsted Wool Fabric and of imported Worsted Wool Fabric, and 
the average price received per square meter of domestically produced 
Worsted Wool Fabric and of imported Worsted Wool Fabric for such orders.
    (2) A list of all requests to purchase Worsted Wool Fabric during 
the twelve months prior to the submission of the comments that were 
rejected by the person submitting the comments, indicating the dates of 
the requests, the quantity requested, the price quoted, and the reasons 
why the request was rejected;

[[Page 57]]

    (3) Data indicating increase and/or decrease in production and sales 
for the most recent six month period for which data is available and the 
comparable six month period in the previous year of domestically-
produced Worsted Wool Fabrics used in the production of Worsted Wool 
Suits, Suit-Type Jackets and Trousers.
    (4) Evidence of lost sales due to the temporary duty reductions on 
certain Worsted Wool Fabric under the Tariff Rate Quotas; and
    (5) Other evidence of the ability of domestic producers of Worsted 
Wool Fabric to meet the needs of the manufacturers of Worsted Wool 
Suits, Suit-Type Jackets and Trousers in terms of quantity, variety, and 
other relevant factors.



Sec.  340.5  Requests for modification and comments.

    (a) Requests for modification and comments must be accompanied by a 
statement by the person submitting the request or comments (if a natural 
person), or an employee, officer or agent of the legal entity submitting 
the request or comments, with personal knowledge of the matters set 
forth therein, certifying that the information contained therein is 
complete and accurate, signed and sworn before a Notary Public, and 
acknowledging that false representations to a federal agency may result 
in criminal penalties under federal law.
    (b) Any business confidential information provided pursuant to this 
section that is marked business confidential will be kept confidential 
and protected from disclosure to the full extent permitted by law. To 
the extent business confidential information is provided, a non-
confidential submission shall also be provided, in which business 
confidential information is summarized or, if necessary, deleted.



Sec.  340.6  Requests for additional information.

    The Department may request additional information from any 
manufacturer of Worsted Wool Suits, Suit-Type Jackets and Trousers, or 
manufacturer of Worsted Wool Fabric, wool yarn and wool top and fiber 
concerning information relevant to modifying the limitations.



Sec.  340.7  Determination.

    (a) Based on information obtained, including information on market 
conditions obtained pursuant to the monitoring required under Section 
504(a) of the Act, the Department shall consider the following United 
States market conditions as required by Section 504(b)(2) of the Act:
    (1) Increases or decreases in sales of the domestically-produced 
Worsted Wool Fabrics used in the manufacture of Worsted Wool Suits, 
Suit-Type Jackets and Trousers;
    (2) Increases or decreases in domestic production of such Worsted 
Wool Fabrics;
    (3) Increases or decreases in domestic production and consumption of 
Worsted Wool Suits, Suit-Type Jackets and Trousers;
    (4) The ability of domestic producers of Worsted Wool Fabrics to 
meet the needs of domestic manufacturers of Worsted Wool Suits, Suit-
Type Jackets and Trousers in terms of quantity and the ability to meet 
market demands for the apparel items;
    (5) Evidence that domestic manufacturers of Worsted Wool Fabrics 
used in the manufacture of Worsted Wool Suits, Suit-Type Jackets and 
Trousers have lost sales due to the temporary duty reductions on certain 
fabrics of worsted wool under the Tariff Rate Quota;
    (6) Evidence that domestic manufacturers of Worsted Wool Suits, 
Suit-Type Jackets and Trousers have lost sales due to the inability to 
purchase adequate supplies of worsted wool fabrics on a cost competitive 
basis; and
    (7) Price per square meter of imports and domestic sales of Worsted 
Wool Fabrics.
    (b) Not later than 30 calendar days after the end of the comment 
period provided for in Sec.  340.4(a), and on the basis of its 
consideration of the market conditions set forth in paragraph (a) of 
this section and other relevant factors, and using the facts available, 
the Department will determine whether the limitations on the quantity of 
imports under the Tariff Rate Quotas should be

[[Page 58]]

modified and recommend to the President that appropriate modifications 
be made. Consistent with section 504(b)(3)(B) of the Act, such 
modification shall not exceed 1,000,000 square meter equivalents for 
each of the Tariff Rate Quotas.

[[Page 59]]



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




  --------------------------------------------------------------------
Part                                                                Page
400             Regulations of the Foreign-Trade Zones Board          61

[[Page 61]]



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 normally apply to 
foreign goods in zones. The Board can deny or limit the

[[Page 62]]

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.
    (b) Board means the Foreign-Trade Zones Board, which consists of the 
Secretary of the Department of Commerce (chairman) and the Secretary of 
the Treasury, or their designated alternates.
    (c) Customs Service means the United States Customs Service of the 
Department of the Treasury.
    (d) Executive Secretary is the Executive Secretary of the Foreign-
Trade Zones Board.
    (e) 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.
    (f) 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.
    (g) 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.
    (h) Port Director is normally the director of Customs for the 
Customs jurisdictional area in which the zone is located.
    (i) 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).
    (j) 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.
    (k) 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.
    (l) 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.
    (m) State includes any state of the United States, the District of 
Columbia, and Puerto Rico.
    (n) Subzone means a special-purpose zone established as an adjunct 
to a zone project for a limited purpose.
    (o) 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.
    (p) 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.
    (q) Zone operator is a corporation, partnership, or person that 
operates a zone or subzone under the terms of an agreement with the zone 
grantee or an intermediary entity, with the concurrence of the Port 
Director.
    (r) Zone project means the zone plan, including all of the zone and 
subzone sites that the Board authorizes a single grantee to establish.
    (s) Zone site means the physical location of a zone or subzone.

[[Page 63]]

    (t) Zone user is a party using a zone under agreement with the zone 
grantee or operator.

[62 FR 53534, Oct. 15, 1997]



                   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 determination of the Board 
will be based on the unanimous vote of the members (or alternate 
members) of the Board.
    (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.

[56 FR 50798, Oct. 8, 1991, as amended at 62 FR 53535, Oct. 15, 1997



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 in various sections of this part, including 
Sec. Sec.  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);

[[Page 64]]

    (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 Sec. Sec.  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 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

[[Page 65]]

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 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

[[Page 66]]

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 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;

[[Page 67]]

    (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 local community map 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 8 
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)

[56 FR 50798, Oct. 8, 1991, as amended at 62 FR 53535, Oct. 15, 1997]



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 
Sec. Sec.  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
    (x) Economic impact of the operation on the area;
    (4) Reason operation cannot be conducted within a general-purpose 
zone;

[[Page 68]]

    (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 Port 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)

[56 FR 50798, Oct. 8, 1991, as amended at 62 FR 53535, Oct. 15, 1997]



Sec.  400.27  Procedure for processing application.

    (a) In general. This section outlines the procedure followed in 
processing applications submitted under Sec. Sec.  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 Sec. Sec.  400.22-400.24, 400.25, 400.26, 400.32, and 
other applicable provisions of this part.

[[Page 69]]

    (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 Sec. Sec.  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 the Commissioner of Customs and the Port Director, or a 
designee;
    (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 review. 
The Port Director, or a designee, in accordance with agency regulations 
and directives, will submit a technical report 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 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 adviser shall be notified when necessary for further 
comments, which shall be submitted within 45 days after notification.

[[Page 70]]

    (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 Sec. Sec.  
400.31(b)(1)(i) and 400.31(b)(1)(ii);
    (B) An evaluation of the economic factors enumerated in Sec. Sec.  
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 Port 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 of the 
determination that the application or request can be processed under 
Sec.  400.26(c).
    (2) The Port Director shall provide the decision as to concurrence 
within 20 days after being notified of the request or application.

[56 FR 50798, Oct. 8, 1991, as amended at 62 FR 53535, Oct. 15, 1997]



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

[[Page 71]]

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 Port 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 
Port Director.
    (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

[[Page 72]]

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, as amended at 62 
FR 53535, Oct. 15, 1997]



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.         $3,200
 400.21(a)(2)).................................................
(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.



         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/

[[Page 73]]

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.
    (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

[[Page 74]]

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 Sec. Sec.  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 Sec. Sec.  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 Port 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:
    (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

[[Page 75]]

    (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.

[56 FR 50798, Oct. 8, 1991, as amended at 62 FR 53535, Oct. 15, 1997]



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 Port 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.

[56 FR 50798, Oct. 8, 1991, as amended at 62 FR 53535, Oct. 15, 1997]



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 Port 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 Port 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 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

[[Page 76]]

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 Port 
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.

[56 FR 50798, Oct. 8, 1991, as amended at 62 FR 53535, Oct. 15, 1997]



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 Port 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 77]]

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

[56 FR 50798, Oct. 8, 1991, as amended at 62 FR 53535, Oct. 15, 1997]



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 Port 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 Port 
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 Port 
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, as amended at 62 
FR 53535, Oct. 15, 1997]



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 Port 
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 Port 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)

[56 FR 50798, Oct. 8, 1991, as amended at 62 FR 53535, Oct. 15, 1997]



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 Sec. Sec.  
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

[[Page 78]]

give appropriate notice of their proposals in local newspapers. The 
Board, the 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 79]]



  CHAPTER VII--BUREAU OF INDUSTRY AND SECURITY, DEPARTMENT OF COMMERCE




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


  Editorial Note: Nomenclature changes to chapter VII appear at 67 FR 
20632, Apr. 26, 2002.

       SUBCHAPTER A--NATIONAL SECURITY INDUSTRIAL BASE REGULATIONS
Part                                                                Page
700             Defense priorities and allocations system...          81
701             Reporting of offsets agreements in sales of 
                    weapon systems or defense-related items 
                    to foreign countries or foreign firms...         106
702-704         [Reserved]
705             Effect of imported articles on the national 
                    security................................         108
706-709         [Reserved]

          SUBCHAPTER B--CHEMICAL WEAPONS CONVENTION REGULATIONS
710             General information and overview of the 
                    Chemical Weapons Convention Regulations 
                    (CWCR)..................................         113
711             General information regarding declaration, 
                    reporting and notification requirements.         119
712             Activities involving Schedule 1 chemicals...         121
713             Activities involving Schedule 2 chemicals...         127
714             Activities involving Schedule 3 chemicals...         135
715             Activities involving Unscheduled Discrete 
                    Organic Chemicals (UDOCs)...............         140
716             Initial and routine inspections of declared 
                    facilities..............................         142
717             Clarification of possible non-compliance 
                    with the Convention; challenge 
                    inspection procedures...................         175
718             Confidential business information...........         177
719             Enforcement.................................         180
720             Denial of export privileges.................         189
721             Inspection of records and recordkeeping.....         191
722             Interpretations [Reserved]

[[Page 80]]

723-729         [Reserved]

             SUBCHAPTER C--EXPORT ADMINISTRATION REGULATIONS
730             General information.........................         193
732             Steps for using the EAR.....................         202
734             Scope of the Export Administration 
                    regulations.............................         217
736             General prohibitions........................         233
738             Commerce Control List overview and the 
                    country chart...........................         238
740             License exceptions..........................         248
742             Control policy--CCL based controls..........         288
743             Special Reporting...........................         332
744             Control policy: end-user and end-use based..         334
745             Chemical Weapons Convention requirements....         354
746             Embargoes and other special controls........         358
748             Applications (classification, advisory, and 
                    license) and documentation..............         367
750             Application processing, issuance or and 
                    denial..................................         400
752             Special comprehensive license...............         411
754             Short supply controls.......................         427
756             Appeals.....................................         440
758             Export clearance requirements...............         441
760             Restrictive trade practices or boycotts.....         450
762             Recordkeeping...............................         516
764             Enforcement and protective measures.........         520
766             Administrative enforcement proceedings......         528
768             Foreign availability determination 
                    procedures and criteria.................         542
770             Interpretations.............................         552
772             Definitions of terms........................         560
774             The Commerce Control List...................         585
775-799         [Reserved]

[[Page 81]]



       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 Priorities and allocations in a national emergency.
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_National emergency Preparedness and Critical Items

700.30 Priorities and allocations in a national emergency.
700.31 Metalworking machines.

Subpart G [Reserved]

                 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 may 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--Approved Programs and Delegate Agencies
Appendix I to Part 700--Form BIS-999-Request for Special Priorities 
          Assistance

    Authority: Titles I and VII of the Defense Production Act of 1950, 
as amended (50 U.S.C. app. 2061 et seq.), Title VI of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5195 et 
seq.), and Executive Order 12919, 59 FR 29525, 3 CFR, 1994 Comp., p. 
901; Section 18 of the Selective Service Act of 1948 (50 U.S.C. App. 
468), 10 U.S.C. 2538, 50 U.S.C. 82, and Executive Order 12742, 56 FR 
1079, 3 CFR, 1991 Comp., p. 309; and Executive Order 12656, 53 FR 226, 3 
CFR, 1988 Comp., p. 585.

    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

[[Page 82]]

priority performance of contracts and orders necessary or appropriate to 
promote the national defense over other contracts or orders; to allocate 
materials, services, 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, equipment, and services in order to assure domestic energy 
supplies for national defense needs.
    (b) Section 18 of the Selective Service Act of 1948 (50 U.S.C. app. 
468) (Selective Service Act) authorizes the President to place an order 
with a supplier for any articles or materials required for the exclusive 
use of the U.S. armed forces whenever the President determines that in 
the interest of national security, prompt delivery of the articles and 
materials is required. The supplier must give precedence to the order so 
as to deliver the articles or materials in a required time period. 10 
U.S.C. 2538, and 50 U.S.C. 82, provide similar authority specifically 
for Department of Defense procurement, but only in time of war or when 
war is imminent.
    (c) Section 602(b) of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act (42 U.S.C. 5195a(b)) provides that the terms 
``national defense'' and ``defense'' as used in the Defense Production 
Act includes ``emergency preparedness activities'' conducted pursuant to 
Title VI of the Stafford Act. The definition of ``national defense'' in 
Section 702(13) of the Defense Production Act provides that this term 
includes ``emergency preparedness activities'' conducted pursuant to 
Title VI of the Stafford Act.
    (d) The Defense Priorities and Allocations System (DPAS) regulation 
implements the priorities and allocations authority of the Defense 
Production Act and as this authority pertains to Title VI of the 
Stafford Act, and the priorities authority of the Selective Service Act 
and related statutes, all with respect to industrial resources. The DPAS 
ensures the timely availability of industrial resources for approved 
programs and provides an operating system to support rapid industrial 
response to a national emergency.
    (e) 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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31921, June 11, 1998]



                           Subpart B_Overview



Sec.  700.2  Introduction.

    (a) Certain national defense and energy programs (including 
emergency preparedness activities) are approved for priorities and 
allocations support. For example, military aircraft production, 
ammunition, and certain programs which maximize domestic energy supplies 
are ``approved programs.'' A complete list of currently approved 
programs is provided at Schedule 1 to this part.
    (b) The Department of Commerce administers the DPAS to ensure the 
timely delivery of industrial items to meet approved program 
requirements.
    (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 II. They set 
forth the authorities delegated and those retained by Commerce.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31921, June 11, 1998]



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

[[Page 83]]

indicate which approved 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 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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31921, June 11, 1998]



Sec.  700.4  Priorities and allocations in a national emergency.

    (a) In the event of a national emergency, special rules may be 
established as needed to supplement this part, thus ensuring rapid 
industrial response and the timely availability of critical industrial 
items and facilities to meet the urgent national defense requirements, 
including domestic emergency preparedness requirements, of approved 
programs.
    (b) The special rules established in response to the emergency may 
include provisions for the taking of certain emergency official actions 
and the allocation of critical and scarce materials and facilities.

[63 FR 31921, June 11, 1998]



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 and the Selective 
Service Act and related statutes. 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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31921, June 11, 1998]

[[Page 84]]



                          Subpart C_Definitions



Sec.  700.8  Definitions.

    In addition to the definitions provided in Section 702 of the 
Defense Production Act (excepting the definition of ``industrial 
resources'') and Section 602(a) of the Stafford Act, the following 
definitions pertain to all sections of this part:
    Approved program--a program determined as necessary or appropriate 
for priorities and allocations support to promote the national defense 
by the Secretary of Defense, the Secretary of Energy, or the Director, 
Federal Emergency Management Agency, under the authority of the Defense 
Production Act, the Stafford Act, and Executive Order 12919, or the 
Selective Service Act and related statutes and Executive Order 12742.
    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.
    Delegate Agency. A government agency authorized by delegation from 
the Department of Commerce to place priority ratings on contracts or 
orders needed to support approved programs.
    Defense Production Act. the Defense Production Act of 1950, as 
amended (50 U.S.C. App. 2061, et seq.).
    Industrial resources--all materials, services, and facilities, 
including construction materials, the authority for which has not been 
delegated to other agencies under Executive Order 12919. This term also 
includes the term ``item'' as defined and used in this part.
    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.
    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.
    Official action. An action taken by Commerce under the authority of 
the Defense Production Act, the Selective Service Act and related 
statutes, 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, or legal successor or 
representative thereof; or any authorized State or local government or 
agency thereof; and for purposes of administration of this part, 
includes the United States Government and any authorized foreign 
government or agency thereof, delegated authority as provided in this 
part.
    Production equipment. Any item of capital equipment used in 
producing materials or furnishing services that has a unit acquisition 
cost of $2,500 or 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 approved program issued in accordance with the provisions 
of this regulation.

[[Page 85]]

    Selective Service Act and related statutes--Section 18 of the 
Selective Service Act of 1948 (50 U.S.C. app. 468), 10 U.S.C. 2538, and 
50 U.S.C. 82.
    Set-aside. The amount of an item for which a supplier must reserve 
order book space in anticipation of the receipt of rated orders.
    Stafford Act--Title VI (Emergency Preparedness) of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act, as amended (42 
U.S.C. 5195 et seq.).

[49 FR 30414, July 30, 1984; 49 FR 50172, Dec. 27, 1984. Redesignated at 
54 FR 601, Jan. 9, 1989, as amended at 63 FR 31921, June 11, 1998]



                     Subpart D_Industrial Priorities



Sec.  700.10  Delegation of authority.

    (a) The priorities and allocations authorities of the President 
under Title I of the Defense Production Act with respect to industrial 
resources have been delegated to the Secretary of Commerce under 
Executive Order 12919 of June 3, 1994 (59 FR 29525). The priorities 
authorities of the President under the Selective Service Act and related 
statutes with respect to industrial resources have also been delegated 
to the Secretary of Commerce under Executive Order 12742 of January 8, 
1991 (56 FR 1079).
    (b) Within the Department of Commerce, these responsibilities have 
been assigned to the Office of Strategic Industries and Economic 
Security. The Department of Commerce has authorized the Delegate 
Agencies to assign priority ratings to orders for items needed for 
approved programs. Copies of these Delegations of Authority are provided 
at Appendix II. They set forth the authorities delegated and those 
retained by Commerce.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31922, June 11, 1998]



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 approved program is being supported by a rated order. The 
list of approved 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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31922, June 11, 1998]



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'', ``basic ordering agreement'', ``prime vendor 
contract'', or similar procurement document 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, such as ``calls'', ``requisitions'', and 
``delivery orders''. These purchase orders 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 
procurement document;

[[Page 86]]

    (c) The written signature on a manually placed order, or the digital 
signature or name on an electronically placed order, of an individual 
authorized to sign rated orders for the person placing the order. The 
signature or use of the name certifies that the rated order is 
authorized under this part and that the requirements of this part 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).

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31922, June 11, 1998]



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.
    (4) If a person is unable to fill all the rated orders of equal 
priority status received on the same day, the person must accept, based 
upon the earliest delivery dates, only those orders which can be filled, 
and reject the other orders. For example, a person must accept order A 
requiring delivery on December 15 before accepting order B requiring 
delivery on December 31. However, the person must offer to accept the 
rejected orders based on the earliest delivery dates 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 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 or the Selective Service Act and related statutes [See 
Sec.  700.75].
    (d) Customer notification requirements. (1) A person must accept or 
reject a rated order in writing or electronically within fifteen (15) 
working days after receipt of a DO rated order and within ten (10) 
working days after receipt of a DX rated order. If the order is 
rejected, the person must give reasons in writing (not electronically) 
for the rejection.

[[Page 87]]

    (2) If a person has accepted a rated order and subsequently finds 
that shipment or performance will be delayed, the person must notify the 
customer immediately, give the reasons for the delay, and advise of a 
new shipment or performance date. If notification is given verbally, 
written or electronic confirmation must be provided within five (5) 
working days.

(The information collection requirements in paragraphs (d)(1) and (d)(2) 
are approved by the Office of Management and Budget under OMB control 
number 0694-0053.)

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31922, June 11, 1998]



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 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) Conflicting rated orders. (1) If a person finds that delivery or 
performance against any accepted rated orders conflicts with the 
delivery or performance against other accepted rated orders of equal 
priority status, the person shall give preference to the conflicting 
orders in the sequence in which they are to be delivered or performed 
(not to the receipt dates). If the conflicting rated orders are 
scheduled to be delivered or performed on the same day, the person shall 
give preference to those orders which have the earliest receipt dates.
    (2) If a person is unable to resolve rated order delivery or 
performance conflicts under this section, the person should promptly 
seek special priorities assistance as provided in Sec. Sec.  700.50 
through 700.54. If the person's customer objects to the rescheduling of 
delivery or performance of a rated order, the customer should promptly 
seek special priorities assistance as provided in Sec. Sec.  700.50 
through 700.54. For any rated order against which delivery or 
performance will be delayed, the person must notify the customer as 
provided in Sec.  700.13(d)(2).
    (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).

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31922, June 11, 1998]



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:

[[Page 88]]

    (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.



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. 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).
    (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).
    (d) Combining rated and unrated orders. (1) A person may combine 
rated and unrated order quantities on one purchase order provided that:
    (i) The rated quantities are separately and clearly identified; and
    (ii) The four elements of a rated order, as required by Sec.  
700.12, are included on the order with the statement required in Sec.  
700.12(d) modified to read in substance:

    This purchase order contains rated order quantities 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) only as it pertains to the rated quantities.

    (2) A supplier must accept or reject the rated portion of the 
purchase order as provided in Sec.  700.13 and give preferential 
treatment only to the rated quantities as required by this part.

[[Page 89]]

This part may not be used to give preferential treatment to the unrated 
portion of the order.
    (3) 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 $50,000, or one half of the Federal Acquisition Regulation 
(FAR) Simplified Acquisition Threshold (see FAR 2.101), whichever amount 
is larger, provided that delivery can be obtained in a timely fashion 
without the use of the priority rating.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31923, June 11, 1998]



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 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.]
    (v) Any items related to the development of chemical or biological 
warfare capabilities or the production of chemical or biological 
weapons, unless such development or production has been authorized by 
the President or the Secretary of Defense.
    (b) Jurisdictional limitations. (1) The priorities and allocations 
authority for certain items has been delegated under Executive Orders 
12919 and 12742, other executive order, or Interagency Memoranda of 
Understanding to other agencies. Unless otherwise agreed to by the 
concerned agencies, the provisions of this part are not applicable to 
these items which include:
    (i) Food resources, food resource facilities, and the domestic 
distribution of farm equipment and commercial fertilizer (Department of 
Agriculture--see Attachment A to DPAS Delegation 1 in Appendix II to 
part 700 concerning combat rations);
    (ii) All forms of energy, including radioisotopes, stable isotopes, 
source material, and special nuclear material produced in Government-
owned plants or facilities operated by or for the Department of Energy 
(Department of Energy);
    (iii) Health resources (Department of Health and Human Services);
    (iv) All forms of civil transportation (Department of 
Transportation);
    (v) Water resources (Department of Defense/U.S. Army Corps of 
Engineers);
    (vi) Communications services (National Communications System under 
Executive Order 12472 of April 3, 1984); and
    (vii) Mineral resources and mineral processing facilities 
(Department of the Interior/U.S. Geological Survey--see Memorandum of 
Understanding Between Interior and Commerce in DPAS Appendix III to part 
700).

[[Page 90]]

    (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 III.
    (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:

Copper raw materials
Crushed stone
Gravel
Sand
Scrap
Slag
Steam heat, central
Waste paper

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31923, June 11, 1998]



           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, equipment, and services (related to the 
production of materials or equipment, or the installation, repair, or 
maintenance of equipment) by submitting DOE Form PR 437 to the 
Department of Energy. Blank applications and further information may be 
obtained from the U.S. Department of Energy, Office of Clearance and 
Support, Field/Headquarters Support Division, Forrestal Building, 1000 
Independence Avenue, S.W., Washington, D.C. 20585; Attn.: PR-132.
    (b) On receipt of the application, the Department of Energy will:
    (1) Determine if the project maximizes domestic energy supplies; and
    (2) Find whether the materials, equipment, or services 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, equipment, or 
services 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 
materials, equipment, or services 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 materials, 
equipment, or services 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.

[[Page 91]]

    (f) Schedule I includes a list of approved 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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31923, June 11, 1998]



      Subpart F_National Emergency Preparedness and Critical Items

    Source: 63 FR 31923, June 11, 1998, unless otherwise noted.



Sec.  700.30  Priorities and allocations in a national emergency.

    (a) In the event of a national emergency, special rules may be 
established as needed to supplement this part, thus ensuring rapid 
industrial response and the timely availability of critical industrial 
items and facilities to meet the urgent national defense requirements, 
including domestic emergency preparedness requirements, of approved 
programs.
    (1) Emergency official actions. (i) As needed, this part may be 
supplemented to include additional definitions to cover civilian 
emergency preparedness industrial items, support for essential civilian 
programs, and provisions for the taking of certain emergency official 
actions under sections Sec. Sec.  700.60 through 700.63.
    (ii) Emergency official actions may include:
    (A) Controlling inventories of critical and scarce defense and/or 
emergency preparedness items;
    (B) Restricting the purchase, use, or distribution of critical and 
scarce defense and/or emergency preparedness items, or the use of 
production or distribution facilities, for non-essential purposes; and
    (C) Converting the production or distribution of non-essential items 
to the production or distribution of critical and scarce defense and/or 
emergency preparedness items.
    (2) Allocation of critical and scarce items and facilities. (i) As 
needed, this part may be supplemented to establish special rules for the 
allocation of scarce and critical items and facilities to ensure the 
timely availability of these items and facilities for approved programs, 
and to provide for an equitable and orderly distribution of requirements 
for such items among all suppliers of the items. These rules may provide 
for the allocation of individual items or they may be broad enough to 
direct general industrial activity as required in support of emergency 
requirements.
    (ii) Allocation rules (i.e., controlled materials programs) were 
established in response to previous periods of national security 
emergency such as World War II and the Korean Conflict. The basic 
elements of the controlled materials programs were the set-aside (the 
amount of an item for which a producer or supplier must reserve order 
book space in anticipation of the receipt of rated orders), the 
production directive (requires a producer to supply a specific quantity, 
size, shape, and type of an item within a specific time period), and the 
allotment (the maximum quantity of an item authorized for use in a 
specific program or application). These elements can be used to assure 
the availability of any scarce and critical item for approved programs. 
Currently, a set-aside applies only to metalworking machines (see Sec.  
700.31).
    (3) In the event that certain critical items become scarce, and 
approved program requirements for these items cannot be met without 
creating a significant dislocation in the civilian market place so as to 
create appreciable hardship, Commerce may establish special rules under 
section 101(b) of the Defense Production Act to control the general 
distribution of such items in the civilian market.
    (b) Regional Emergency Coordinators. (1) If due to a catastrophic 
national security emergency event, communications with Commerce 
headquarters in Washington, D.C. are severed, DPAS Emergency Delegation 
1 will provide authority to the Regional Emergency Coordinators (REC) 
located in the Standard Federal Region Council cities (Boston, New York, 
Philadelphia, Atlanta, Dallas, Kansas City, Chicago, Denver, San 
Francisco, and Seattle) to represent the Secretary of Commerce,

[[Page 92]]

and as necessary, act for the Secretary to carry out the emergency 
industrial production and distribution control functions of Commerce as 
set forth in this part, in any supplement thereto, or other applicable 
authority. See DPAS Emergency Delegation 1 for further information about 
the authority and duties of the RECs, and the effective date of the 
Delegation.
    (2) If DPAS Emergency Delegation 1 is implemented due to a 
catastrophic national security emergency event, requests for special 
priorities assistance under Sec. Sec.  700.50 through 700.55 should be 
filed with the nearest Regional Emergency Coordinator located in one of 
the Standard Federal Region Council cities as provided in DPAS 
Delegation 1.



Sec.  700.31  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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989. 
Further redesignated at 63 FR 31924, June 11, 1998]

Subpart G [Reserved]



                 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 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 BIS-999 (OMB control number 0694-
0057) to the local contract administration representative. Form BIS-999 
may be obtained from the Delegate Agency representative or from the 
Department of

[[Page 93]]

Commerce. A sample Form BIS-999 is attached at Appendix I.

[49 FR 30414, July 30, 1984; 49 FR 50171, Dec. 27, 1984. Redesignated at 
54 FR 601, Jan. 9, 1989, as amended at 63 FR 31924, June 11, 1998]



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;
    (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:

[[Page 94]]

    (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 may 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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31924, June 11, 1998]



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 
approved 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 Public 
Works and Government Services Canada 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 supplier's vendor to fill the order, they should contact 
the Canadian Public Works and Government Services Canada 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 Public Works 
and Government Services Canada 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 Public Works and Government Services Canada. 
Public Works and Government Services Canada 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 BIS-999. Commerce will

[[Page 95]]

forward appropriate requests to the Canadian Public Works and Government 
Services Canada.
    (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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31924, June 11, 1998]



                       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, the Selective Service Act and related statutes, this 
regulation, or an official action. 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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31924, June 11, 1998]

[[Page 96]]



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, the Selective Service Act and 
related statutes, 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, the Selective Service Act and related 
statutes, 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, the Selective 
Service Act and related statutes, 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, the Selective Service Act and related statutes, 
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 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

[[Page 97]]

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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31924, June 11, 1998]



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, the Selective Service Act and related statutes, 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 Chief Counsel for Industry and 
Security, 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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31924, June 11, 1998; 67 FR 45633, July 10, 2002]



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, the 
Selective Service Act and related statutes, 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, the Selective Service Act 
and related statutes, 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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31924, June 11, 1998]



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, the priorities provisions of the 
Selective Service Act and related statutes, this part, or an official 
action, is a crime and upon conviction, a person may be punished by fine 
or imprisonment, or both. The maximum penalty provided by the Defense 
Production Act is a $10,000 fine, or one year in prison, or both. The 
maximum penalty provided by the Selective Service Act and related 
statutes is a $50,000 fine, or three years in prison, or both.
    (b) 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.
    (c) 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 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.

[[Page 98]]

    (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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31924, June 11, 1998]



Sec.  700.75  Compliance conflicts.

    If compliance with any provision of the Defense Production Act, the 
Selective Service Act and related statutes, 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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31924, June 11, 1998]



             Subpart K_Adjustments, Exceptions, and Appeals



Sec.  700.80  Adjustments or exceptions.

    (a) A person may submit a request to the Office of Strategic 
Industries and Economic Security, 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, the Selective Service Act and related statutes, 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 Strategic Industries and Economic Security.
    (d) A decision of the Office of Strategic Industries and Economic 
Security under this section may be appealed to the Assistant Secretary 
for Export Administration, U.S. Department of Commerce. (For information 
on the appeal procedure, see Sec.  700.81.)

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31924, 31925, June 11, 1998]



Sec.  700.81  Appeals.

    (a) Any person who has had a request for adjustment or exception 
denied by the Office of Strategic Industries and Economic Security under 
Sec.  700.80, may appeal to the Assistant Secretary for Export 
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 Export Administration, Bureau of Industry and Security, 
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 Strategic Industries and Economic Security. 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.

[[Page 99]]

    (d) In addition to the written materials submitted in support of an 
appeal, an appellant may request, in writing, an opportunity for an 
informal hearing. This request may be granted or denied at the 
discretion of the Assistant Secretary for Export Administration.
    (e) When a hearing is granted, the Assistant Secretary for Export 
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 Export 
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 Export Administration.
    (h) The decision of the Assistant Secretary for Export 
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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31925, June 11, 1998]



                   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 0694-0053) 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, the Selective Service Act 
and related statutes, 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.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31924, 31925, June 11, 1998]



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

[[Page 100]]

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, 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) 482-3634 or FAX: (202) 482-5650.

[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 
amended at 63 FR 31925, June 11, 1998]

     Schedule I to Part 700--Approved Programs and Delegate Agencies

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

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

[[Page 101]]

 
        G3................................  Foreign nations (other     Do.
                                             than Canada) production
                                             and construction.
    Co-Production:
        J1................................  F-16 Co-Production        Departments of Commerce and Defense.
                                             Program.
Atomic energy programs:
    E1....................................  Construction............  Department of Energy.
    E2....................................  Operations--including      Do.
                                             maintenance, repair,
                                             and operating supplies
                                             (MRO).
    E3....................................  Privately owned            Do.
                                             facilities.
Domestic energy programs:
    F1....................................  Exploration, production,  Department of Energy.
                                             refining, and
                                             transportation.
    F2....................................  Conservation............   Do.
    F3....................................  Construction, repair,      Do.
                                             and maintenance.
Other defense, energy, and related
 programs:
    H1....................................  Certain combined orders   Department of Commerce.
                                             (see section 700.17(c)).
    H5....................................  Private domestic           Do.
                                             production.
    H6....................................  Private domestic           Do.
                                             construction.
    H7....................................  Maintenance, repair, and   Do.
                                             operating supplies
                                             (MRO).
    H8....................................  Designated Programs.....   Do.
    K1....................................  Federal supply items....  General Services Administration.
    N1....................................  Emergency preparedness    Federal Emergency Management
                                             activities.               Agency.TNOTE\1\ Department of
                                                                       Defense includes: Armed Services--Army,
                                                                       Navy (including Marines and Coast Guard),
                                                                       and Air Force; Component Agencies,
                                                                       including Defense Logistics Agency,
                                                                       National Security Agency, Defense
                                                                       Advanced Research Projects Agency,
                                                                       Defense Information Systems Agency,
                                                                       Defense Nuclear Agency, Defense Mapping
                                                                       Agency, and On-Site Inspection Agency;
                                                                       and Associated Agencies, including
                                                                       Central Intelligence Agency and National
                                                                       Aeronautics and Space Administration.
----------------------------------------------------------------------------------------------------------------


[63 FR 31925, June 11, 1998]

[[Page 102]]

  Appendix I to Part 700--Form BIS-999--Request for Special Priorities 
                               Assistance
[GRAPHIC] [TIFF OMITTED] TR11JN98.008


[[Page 103]]


[GRAPHIC] [TIFF OMITTED] TR11JN98.009


[[Page 104]]


[GRAPHIC] [TIFF OMITTED] TR11JN98.010


[[Page 105]]


[GRAPHIC] [TIFF OMITTED] TR11JN98.011


[[Page 106]]



[63 FR 31926, June 11, 1998]



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.



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 
Industry and Security 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

[[Page 107]]

(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 Industry and Security, Room 3878, 14th Street and 
Pennsylvania Avenue, N.W., Washington DC 20230. The first industry 
reports should be submitted to the Bureau of Industry and Security 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 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 Industry 
and Security, 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;

[[Page 108]]

    (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, BIS 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 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.
705.11 Determination by the President and adjustment of imports.
705.12 Disposition of an investigation and report to the Congress.

    Authority: Sec. 232, Trade Expansion Act of 1962, as amended (19 
U.S.C. 1862).

    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.

    (a) 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.
    (b) The Secretary shall immediately provide notice to the Secretary 
of Defense of any investigation initiated under this part.

[47 FR 14693, Apr. 6, 1982. Redesignated at 54 FR 601, Jan. 9, 1989, and 
amended at 63 FR 31623, June 10, 1998]



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

[[Page 109]]

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 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 1 copy shall be filed with the Director, 
Office of Strategic Industries and Economic Security, 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.

[47 FR 14693, Apr. 6, 1982. Redesignated at 54 FR 601, Jan. 9, 1989, and 
amended at 63 FR 31623, June 10, 1998; 65 FR 62600, Oct. 19, 2000]



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

[[Page 110]]

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 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 Industry and SecurityFreedom of Information Records Inspection 
Facility, Room H-4525, 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, appropriate officers of 
the United States or their designees, as shall be determined. The 
Department shall also consult with the Secretary of Defense regarding 
the methodological and policy questions raised in the investigation. 
Upon the request of the Secretary, the Secretary of Defense shall 
provide the Secretary with an assessment of the defense requirements of 
the article in question. Communications received from agencies of the 
U.S. government or foreign governments will not be made available for 
public inspection.
    (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; 63 FR 31623, June 10, 1998]



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

[[Page 111]]

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;
    (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 Industry and 
Security Freedom of Information Records Inspection Facility, Room H-
4525, 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; 63 FR 31623, June 10, 1998]



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.
    (b) The Secretary shall report to the President the findings of the 
investigation and a recommendation for action or inaction within 270 
days after beginning an investigation under this part.
    (c) An Executive Summary of the Secretary's report to the President 
of an investigation, excluding any classified or proprietary 
information, shall be published in the Federal Register. Copies of the 
full report, excluding any classified or proprietary information, will 
be available for public inspection and copying in the Bureau of Industry 
and Security Freedom of Information Records Inspection Facility, Room H-
4525, U.S. Department of Commerce, 14th Street, N.W., Washington, D.C. 
20230; tel. (202) 482-5653.

[63 FR 31623, June 10, 1998]



Sec.  705.11  Determination by the President and adjustment of imports.

    (a) Upon the submission of a report to the President by the 
Secretary under Sec.  705.10(b) of this part, in which the Department 
has found that an article is being imported into the United States in 
such quantities or under such circumstances as to threaten to impair the 
national security, the President is required by Section 232(c) of the 
Trade Expansion Act of 1962, as amended (19 U.S.C. 1862(c)) to take the 
following action

[[Page 112]]

    (1) Within 90 days after receiving the report from the Secretary, 
the President shall determine:
    (i) Whether the President concurs with the Department's finding; and
    (ii) If the President concurs, the nature and duration of the action 
that must be taken to adjust the imports of the article and its 
derivatives so that the such imports will not threaten to impair the 
national security.
    (2) If the President determines to take action under this section, 
such action must be taken no later than fifteen (15) days after making 
the determination.
    (3) By no later than thirty (30) days after making the 
determinations under paragraph (a)(1) of this section, the President 
shall submit to the Congress a written statement of the reasons why the 
President has decided to take action, or refused to take action.
    (b) If the action taken by the President under this section is the 
negotiation of an agreement to limit or restrict the importation into 
the United States of the article in question, and either no such 
agreement is entered into within 180 days after making the determination 
to take action, or an executed agreement is not being carried out or is 
ineffective in eliminating the threat to the national security, the 
President shall either:
    (1) Take such other action as deemed necessary to adjust the imports 
of the article so that such imports will not threaten to impair the 
national security. Notice of any such additional action taken shall be 
published in the Federal Register; or
    (2) Not take any additional action. This determination and the 
reasons on which it is based, shall be published in the Federal 
Register.

[63 FR 31623, June 10, 1998]



Sec.  705.12  Disposition of an investigation and report to the Congress.

    (a) Upon the disposition of each request, application, or motion 
made under this part, a report of such disposition shall be submitted by 
the Secretary to the Congress and published in the Federal Register.
    (b) As required by Section 232(e) of the Trade Expansion Act of 
1962, as amended (19 U.S.C. 1862(c)), the President shall submit to the 
Congress an annual report on the operation of this part.

[63 FR 31623, June 10, 1998]

                        PARTS 706	709 [RESERVED]

[[Page 113]]



          SUBCHAPTER B_CHEMICAL WEAPONS CONVENTION REGULATIONS





PART 710_GENERAL INFORMATION AND OVERVIEW OF THE CHEMICAL WEAPONS 
CONVENTION REGULATIONS (CWCR)--Table of Contents




Sec.
710.1 Definitions of terms used in the Chemical Weapons Convention 
          Regulations (CWCR).
710.2 Scope of the CWCR.
710.3 Purposes of the Convention and CWCR.
710.4 Overview of scheduled chemicals and examples of affected 
          industries.
710.5 Authority.
710.6 Relationship between the Chemical Weapons Convention Regulations 
          and the Export Administration Regulations.

Supplement No. 1 to Part 710--States Parties to the Convention on the 
          Prohibition of the Development, production, Stockpiling and 
          Use of Chemical Weapons and on Their Destruction

    Authority: 22 U.S.C. 6701 et seq.; E.O. 13128, 64 FR 36703.

    Source: 64 FR 73764, Dec. 30, 1999, unless otherwise noted.



Sec.  710.1  Definitions of terms used in the Chemical Weapons Convention 
Regulations (CWCR).

    The following are definitions of terms used in the CWCR (parts 710 
through 722 of this subchapter, unless otherwise noted):
    Act (The): Means the Chemical Weapons Convention Implementation Act 
of 1998 (22 U.S.C. 6701 et seq.).BIS
    Bureau of Industry and Security (BIS). Means the Bureau of Industry 
and Security of the United States Department of Commerce (formerly the 
Bureau of Export Administration).
    By-product. Means any chemical substance or mixture produced without 
a separate commercial intent during the manufacture, processing, use or 
disposal of another chemical substance or mixture.
    Chemical Weapon. Means the following, together or separately:
    (1) A toxic chemical and its precursors, except where intended for 
purposes not prohibited under the Chemical Weapons Convention (CWC), 
provided that the type and quantity are consistent with such purposes;
    (2) A munition or device, specifically designed to cause death or 
other harm through the toxic properties of those toxic chemicals 
specified in paragraph (1) of this definition, which would be released 
as a result of the employment of such munition or device; or
    (3) Any equipment specifically designed for use directly in 
connection with the employment of munitions or devices specified in 
paragraph (2) of this definition.
    Chemical Weapons Convention (CWC or Convention). Means the 
Convention on the Prohibition of the Development, Production, 
Stockpiling and Use of Chemical Weapons and on Their Destruction, and 
its annexes opened for signature on January 13, 1993.
    Chemical Weapons Convention Regulations (CWCR). Means the 
regulations contained in 15 CFR parts 710 through 722.
    Consumption. Consumption of a chemical means its conversion into 
another chemical via a chemical reaction. Unreacted material must be 
accounted for as either waste or as recycled starting material.
    Declaration or report form. Means a multi-purpose form due to BIS 
regarding activities involving Schedule 1, Schedule 2, Schedule 3, or 
unscheduled discrete organic chemicals. Declaration forms will be used 
by facilities that have data declaration obligations under the CWCR and 
are ``declared'' facilities whose facility-specific information will be 
transmitted to the OPCW. Report forms will be used by entities that are 
``undeclared'' facilities or trading companies that have limited 
reporting requirements for only export and import activities under the 
CWCR and whose facility-specific information will not be transmitted to 
the OPCW. Information from declared facilities, undeclared facilities 
and trading companies will also be used to compile U.S. national 
aggregate figures on the production, processing, consumption, export and 
import of specific chemicals.

[[Page 114]]

See also related definitions of declared facility, undeclared facility 
and report.
    Declared facility or plant site. Means a facility or plant site 
required to complete data declarations of activities involving Schedule 
1, Schedule 2, Schedule 3, or unscheduled discrete organic chemicals 
above specified threshold quantities. Only certain declared facilities 
and plant sites are subject to routine inspections under the CWCR. Plant 
sites that produced either Schedule 2 or Schedule 3 chemicals for CW 
purposes at any time since January 1, 1946, are also ``declared'' plant 
sites. However, such plant sites are not subject to routine inspection 
if they are not subject to declaration requirements because of past 
production, processing or consumption of Scheduled or unscheduled 
discrete organic chemicals above specified threshold quantities.
    Discrete organic chemical. Means any chemical belonging to the class 
of chemical compounds consisting of all compounds of carbon, except for 
its oxides, sulfides, and metal carbonates, identifiable by chemical 
name, by structural formula, if known, and by Chemical Abstract Service 
registry number, if assigned.
    Domestic transfer. Means, with regard to declaration requirements 
for Schedule 1 and chemicals under the CWCR, any movement of any amount 
of Schedule 1 chemical outside the geographical boundary of a facility 
in the United States to another destination in the United States, for 
any purpose. Domestic transfer includes movement between two divisions 
of one company or a sale from one company to another. Note that any 
movement to or from a facility outside the United States is considered 
an export or import for reporting purposes, not a domestic transfer.
    EAR. Means the Export Administration Regulations (15 CFR parts 730 
through 799).
    Explosive. Means a chemical (or a mixture of chemicals) that is 
included in Class 1 of the United Nations Organization hazard 
classification system.
    Facility. Means any plant site, plant or unit.
    Facility agreement. Means a written agreement or arrangement between 
a State Party and the Organization relating to a specific facility 
subject to on-site verification pursuant to Articles IV, V, and VI of 
the Convention.
    Host Team. Means the U.S. Government team that accompanies the 
inspection team from the Organization for the Prohibition of Chemical 
Weapons during a CWC inspection for which the regulations in this 
subchapter apply.
    Host Team Leader. Means the representative from the Department of 
Commerce who heads the U.S. Government team that accompanies the 
Inspection Team during a CWC inspection for which the regulations in 
this subchapter apply.
    Hydrocarbon. Means any organic compound that contains only carbon 
and hydrogen.
    Impurity. Means a chemical substance unintentionally present with 
another chemical substance or mixture.
    Inspection Team. Means the group of inspectors and inspection 
assistants assigned by the Director-General of the Technical Secretariat 
to conduct a particular inspection.
    ITAR. Means the International Traffic in Arms Regulations (22 CFR 
parts 120 through 130).
    Organization for the Prohibition of Chemical Weapons (OPCW). Means 
the international organization, located in The Hague, the Netherlands, 
that administers the CWC.
    Person. Means any individual, corporation, partnership, firm, 
association, trust, estate, public or private institution, any State or 
any political subdivision thereof, or any political entity within a 
State, any foreign government or nation or any agency, instrumentality 
or political subdivision of any such government or nation, or other 
entity located in the United States.
    Plant. Means a relatively self-contained area, structure or building 
containing one or more units with auxiliary and associated 
infrastructure, such as:
    (1) Small administrative area;
    (2) Storage/handling areas for feedstock and products;
    (3) Effluent/waste handling/treatment area;
    (4) Control/analytical laboratory;

[[Page 115]]

    (5) First aid service/related medical section; and
    (6) Records associated with the movement into, around, and from the 
site, of declared chemicals and their feedstock or product chemicals 
formed from them, as appropriate.
    Plant site. Means the local integration of one or more plants, with 
any intermediate administrative levels, which are under one operational 
control, and includes common infrastructure, such as:
    (1) Administration and other offices;
    (2) Repair and maintenance shops;
    (3) Medical center;
    (4) Utilities;
    (5) Central analytical laboratory;
    (6) Research and development laboratories;
    (7) Central effluent and waste treatment area; and
    (8) Warehouse storage.
    Precursor. Means any chemical reactant which takes part, at any 
stage in the production, by whatever method, of a toxic chemical. The 
term includes any key component of a binary or multicomponent chemical 
system.
    Processing. Means a physical process such as formulation, extraction 
and purification in which a chemical is not converted into another 
chemical.
    Production. Means the formation of a chemical through chemical 
reaction.
    Purposes not prohibited by the CWC. Means the following:
    (1) Any peaceful purpose related to an industrial, agricultural, 
research, medical or pharmaceutical activity or other activity;
    (2) Any purpose directly related to protection against toxic 
chemicals and to protection against chemical weapons;
    (3) Any military purpose of the United States that is not connected 
with the use of a chemical weapon and that is not dependent on the use 
of the toxic or poisonous properties of the chemical weapon to cause 
death or other harm; or
    (4) Any law enforcement purpose, including any domestic riot control 
purpose and including imposition of capital punishment.
    Report. Means information due to BIS on exports and imports of 
Schedule 1, Schedule 2 or Schedule 3 chemicals above applicable 
thresholds. Such information is included in the national aggregate 
declaration transmitted to the OPCW. Facility-specific information is 
not included in the national aggregate declaration. Note: This 
definition does not apply to parts 719 and 720 (see Sec.  719.1) of this 
subchapter.
    Schedules of Chemicals. Means specific lists of toxic chemicals, 
groups of chemicals, and precursors contained in the CWC. See 
Supplements No. 1 to parts 712 through 714 of this subchapter.
    State Party. Means a country for which the CWC is in force. See 
Supplement No. 1 to this part.
    Storage. For purposes of Schedule 1 chemical reporting, means any 
quantity that is not accounted for under the categories of production, 
export, import, consumption or domestic transfer.
    Synthesis. Means production of a chemical from its reactants.
    Technical Secretariat. Means the organ of the OPCW charged with 
carrying out administrative and technical support functions for the 
OPCW, including carrying out the verification measures delineated in the 
CWC.
    Toxic Chemical. Means any chemical which, through its chemical 
action on life processes, can cause death, temporary incapacitation, or 
permanent harm to humans or animals. The term includes all such 
chemicals, regardless of their origin or of their method of production, 
and regardless of whether they are produced in facilities, in munitions, 
or elsewhere. Toxic chemicals that have been identified for the 
application of verification measures are in schedules contained in 
Supplements No. 1 to parts 712 through 714 of this subchapter.
    Trading company. Means any person involved in the export and/or 
import of scheduled chemicals in amounts greater than specified 
thresholds, but not in the production, processing or consumption of such 
chemicals in amounts greater than threshold amounts requiring 
declaration. If such persons exclusively export or import scheduled 
chemicals in amounts greater than specified thresholds, they are subject 
to reporting requirements but are not subject to routine inspections.

[[Page 116]]

    Transfer. See domestic transfer.
    Undeclared facility or plant site. Means a facility or plant site 
that is not subject to declaration requirements because of past or 
anticipated production, processing or consumption involving scheduled or 
unscheduled discrete organic chemicals above specified threshold 
quantities. However, such facilities and plant sites may have a 
reporting requirement for exports or imports of such chemicals.
    Unit. Means the combination of those items of equipment, including 
vessels and vessel set up, necessary for the production, processing or 
consumption of a chemical.
    United States. Means the several States of the United States, the 
District of Columbia, and the commonwealths, territories, and 
possessions of the United States, and includes all places under the 
jurisdiction or control of the United States, including any of the 
places within the provisions of paragraph (41) of section 40102 of Title 
49 of the United States Code, any civil aircraft of the United States or 
public aircraft, as such terms are defined in paragraphs (1) and (37), 
respectively, of section 40102 of Title 49 of the United States Code, 
and any vessel of the United States, as such term is defined in section 
3(b) of the Maritime Drug Enforcement Act, as amended (section 1903(b) 
of Title 46 App. of the United States Code).
    United States National Authority (USNA). Means the Department of 
State serving as the national focal point for the effective liaison with 
the Organization for the Prohibition of Chemical Weapons and other 
States Parties to the Convention and implementing the provisions of the 
Chemical Weapons Convention Implementation Act of 1998 in coordination 
with an interagency group designated by the President consisting of the 
Secretary of Commerce, Secretary of Defense, Secretary of Energy, the 
Attorney General, and the heads of other agencies considered necessary 
or advisable by the President, or their designees. The Secretary of 
State is the Director of the USNA.
    Unscheduled chemical. Means a chemical that is not contained in 
Schedule 1, Schedule 2, or Schedule 3 (see Supplements No. 1 to parts 
712 through 714 of this subchapter).
    Unscheduled Discrete Organic Chemical (UDOC). Means any ``discrete 
organic chemical'' that is not contained in the Schedules of Chemicals 
(see Supplements No. 1 to parts 712 through 714 of this subchapter) and 
subject to the declaration requirements of part 715 of this subchapter. 
Unscheduled discrete organic chemicals subject to declaration under this 
subchapter are those produced by synthesis that are isolated for use or 
sale as a specific end-product.
    You. The term ``you'' or ``your'' means any person (see also 
definition of ``person''). With regard to the declaration and reporting 
requirements of the CWCR, ``you'' refers to persons that have an 
obligation to report certain activities under the provisions of the 
CWCR.

[64 FR 73764, Dec. 30, 1999, as amended at 67 FR 20631, Apr. 26, 2002]



Sec.  710.2  Scope of the CWCR.

    The Chemical Weapons Convention Regulations (parts 710 through 722 
of this subchapter), or CWCR, implement certain obligations of the 
United States under the Convention on the Prohibition of the 
Development, Production, Stockpiling and Use of Chemical Weapons and on 
Their Destruction, known as the CWC or Convention.
    (a) Persons and facilities subject to the CWCR. (1) The CWCR 
declaration, reporting, and inspection requirements apply to all persons 
and facilities located in the United States, except U.S. Government 
facilities as follows:
    (i) Department of Defense facilities;
    (ii) Department of Energy facilities; and
    (iii) Facilities of other U.S. Government agencies that notify the 
USNA of their decision to be excluded from the CWCR.
    (2) For purposes of this subchapter, ``United States Government 
facilities'' are those facilities owned and operated by a U.S. 
Government agency (including those operated by contractors to the 
agency), and those facilities leased to and operated by a U.S. 
Government agency (including those operated by contractors to the 
agency). ``United States Government facilities'' does not

[[Page 117]]

include facilities owned by a U.S. Government agency and leased to a 
private company or other entity such that the private company or entity 
may independently decide for what purposes to use the facilities.
    (b) Activities subject to the CWCR. The CWCR compel data 
declarations and reports from facilities subject to the CWCR (parts 710 
through 722 of this subchapter) on activities, including production, 
processing, consumption, exports and imports, involving chemicals 
further described in parts 712 through 715 of this subchapter. These 
regulations do not apply to activities involving inorganic chemicals 
other than those listed in the Schedules of Chemicals or to other 
specifically exempted unscheduled discrete organic chemicals. In 
addition, these regulations set forth procedures for routine inspections 
of ``declared'' facilities by teams of international inspectors in part 
716 of this subchapter, and set forth clarification procedures and 
procedures for challenge inspections (see part 717) that could be 
requested at any facility or location in the United States subject to 
the CWCR. Finally, the CWCR restrict certain imports of Schedule 1 and 2 
chemicals into the United States from non-States Parties and prohibit 
imports of Schedule 1 chemicals except for research, medical, 
pharmaceutical, or protective purposes.



Sec.  710.3  Purposes of the Convention and CWCR.

    (a) Purposes of the Convention. (1) The Convention imposes upon the 
United States, as a State Party, certain declaration, inspection, and 
other obligations. In addition, the United States and other States 
Parties to the Convention undertake never under any circumstances to:
    (i) Develop, produce, otherwise acquire, stockpile, or retain 
chemical weapons, or transfer, directly or indirectly, chemical weapons 
to anyone;
    (ii) Use chemical weapons;
    (iii) Engage in any military preparations to use chemical weapons; 
or
    (iv) Assist, encourage or induce, in any way, anyone to engage in 
any activity prohibited by the Convention.
    (2) One objective of the Convention is to assure States Parties that 
lawful activities of chemical producers and users are not converted to 
unlawful activities related to chemical weapons. To achieve this 
objective and to give States Parties a mechanism to verify compliance, 
the Convention requires the United States and all other States Parties 
to submit declarations concerning chemical production, consumption, 
processing and other activities, and to permit international inspections 
within their borders.
    (b) Purposes of the Chemical Weapons Convention Regulations. To 
fulfill the United States' obligations under the Convention, the CWCR 
(parts 710 through 722 of this subchapter) prohibit certain activities, 
and compel the submission of information from all facilities in the 
United States, except for Department of Defense and Department of Energy 
facilities and facilities of other U.S. Government agencies that notify 
the USNA of their decision to be excluded from the CWCR on activities, 
including exports and imports of scheduled chemicals and certain 
information regarding unscheduled discrete organic chemicals as 
described in parts 712 through 715 of this subchapter. U.S. Government 
facilities are those owned by or leased to the U.S Government, including 
facilities that are contractor-operated. The CWCR also require access 
for on-site inspections and monitoring by the OPCW, as described in 
parts 716 and 717 of this subchapter.



Sec.  710.4  Overview of scheduled chemicals and examples of affected 
industries.

    The following provides examples of the types of industries that may 
be affected by the CWCR (parts 710 through 722 of this subchapter). 
These examples are not exhaustive, and you should refer to parts 712 
through 715 of this subchapter to determine your obligations.
    (a) Schedule 1 chemicals are listed in Supplement No. 1 to part 712 
of this subchapter. Schedule 1 chemicals have little or no use in 
industrial and agricultural industries, but may have limited use for 
research, pharmaceutical,

[[Page 118]]

medical, public health, or protective purposes.
    (b) Schedule 2 chemicals are listed in Supplement No. 1 to part 713 
of this subchapter. Although Schedule 2 chemicals may be useful in the 
production of chemical weapons, they also have legitimate uses in areas 
such as:
    (1) Flame retardant additives and research;
    (2) Dye and photographic industries (e.g., printing ink, ball point 
pen fluids, copy mediums, paints, etc.);
    (3) Medical and pharmaceutical preparation (e.g., anticholinergics, 
arsenicals, tranquilizer preparations);
    (4) Metal plating preparations;
    (5) Epoxy resins; and
    (6) Insecticides, herbicides, fungicides, defoliants, and 
rodenticides.
    (c) Schedule 3 chemicals are listed in Supplement No. 1 to part 714 
of this subchapter. Although Schedule 3 chemicals may be useful in the 
production of chemical weapons, they also have legitimate uses in areas 
such as:
    (1) The production of:
    (i) Resins;
    (ii) Plastics;
    (iii) Pharmaceuticals;
    (iv) Pesticides;
    (v) Batteries;
    (vi) Cyanic acid;
    (vii) Toiletries, including perfumes and scents;
    (viii) Organic phosphate esters (e.g., hydraulic fluids, flame 
retardants, surfactants, and sequestering agents); and
    (2) Leather tannery and finishing supplies.
    (d) Unscheduled discrete organic chemicals are used in a wide 
variety of commercial industries, and include acetone, benzoyl peroxide 
and propylene glycol.



Sec.  710.5  Authority.

    The CWCR (parts 710 through 722 of this subchapter) implement 
certain provisions of the Chemical Weapons Convention under the 
authority of the Chemical Weapons Convention Implementation Act of 1998 
(Act), the National Emergencies Act, the International Emergency 
Economic Powers Act (IEEPA), as amended, and the Export Administration 
Act of 1979, as amended, by extending verification and trade restriction 
requirements under Article VI and related parts of the Verification 
Annex of the Convention to U.S. persons. In Executive Order 13128 of 
June 25, 1999, the President delegated authority to the Department of 
Commerce to promulgate regulations to implement the Act, and consistent 
with the Act, to carry out appropriate functions not otherwise assigned 
in the Act but necessary to implement certain reporting, monitoring and 
inspection requirements of the Convention and the Act.



Sec.  710.6  Relationship between the Chemical Weapons Convention 
Regulations and the Export Administration Regulations.

    Certain obligations of the U.S. government under the CWC pertain to 
exports. These obligations are implemented in the Export Administration 
Regulations (EAR) (15 CFR parts 730 through 799) and the International 
Traffic in Arms Regulations (ITAR) (22 CFR parts 120 through 130). See 
in particular Sec.  742.18 and part 745 of the EAR, and Export Control 
Classification Numbers 1C350, 1C351 and 1C355 of the Commerce Control 
List (Supplement No. 1 to part 774 of the EAR).

 Supplement No. 1 to Part 710--States Parties to The Convention on The 
  Prohibition of The Development, Production, Stockpiling, and Use of 
                Chemical Weapons and on Their Destruction

             List of States Parties as of December 30, 1999

Albania
Algeria
Argentina
Armenia
Australia
Austria
Bahrain
Bangladesh
Belarus
Belgium
Benin
Bolivia
Bosnia-Herzegovina
Botswana
Brazil
Brunei Darussalam
Bulgaria
Burkina Faso
Burundi
Cameroon

[[Page 119]]

Canada
Chile
China*
Cook Islands
Costa Rica
Cote d'Ivoire (Ivory Coast)
Croatia
Cuba
Cyprus
Czech Republic
Denmark
Ecuador
El Salvador
Equatorial Guinea
Ethiopia
Estonia
Fiji
Finland
France
Gambia
Georgia
Germany
Ghana
Greece
Guinea
Guyana
Holy See
Hungary
Iceland
India
Indonesia
Iran
Ireland
Italy
Japan
Jordan
Kenya
Korea (Republic of)
Kuwait
Laos (P.D.R.)
Latvia
Lesotho
Liechtenstein
Lithuania
Luxembourg
Macedonia
Malawi
Maldives
Mali
Malta
Mauritius
Mauritania
Mexico
Moldova (Republic of)
Monaco
Mongolia
Morocco
Namibia
Nepal
Netherlands
New Zealand
Nicaragua
Niger
Nigeria
Norway
Oman
Pakistan
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russian Federation
Saint Lucia
Saudi Arabia
Senegal
Seychelles
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Sudan
Suriname
Swaziland
Sweden
Switzerland
Tajikistan
Tanzania, United Republic of
Togo
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Ukraine
United Kingdom
United States
Uruguay
Uzbekistan
Venezuela
Vietnam
Zimbabwe
*For CWC States Parties purposes, China includes Hong Kong and Macau.



PART 711_GENERAL INFORMATION REGARDING DECLARATION, REPORTING AND 
NOTIFICATION REQUIREMENTS--Table of Contents




Sec.
711.1 Overview of declaration, reporting, and notification requirements.
711.2 Who submits declarations, reports, and notifications.
711.3 Assistance in determining your obligations.
711.4 Declaration and reporting of activities occurring prior to 
          December 30, 1999.
711.5 Numerical precision of submitted data.
711.6 Where to obtain forms.

    Authority: 22 U.S.C. 6701 et seq.; E.O. 13128, 64 FR 36703.

    Source: 64 FR 73768, Dec. 30, 1999, unless otherwise noted.

[[Page 120]]



Sec.  711.1  Overview of declaration, reporting, and notification requirements.

    Parts 712 through 715 of the CWCR (parts 710 through 722 of this 
subchapter) describe the declaration, notification and reporting 
requirements for Schedules 1, 2 and 3 chemicals and for unscheduled 
discrete organic chemicals (UDOCs). For each type of chemical, the 
Convention requires an initial declaration and subsequent annual 
declarations. If, after reviewing parts 712 through 715 of this 
subchapter, you determine that you have declaration, notification or 
reporting requirements, you may obtain the appropriate forms by 
contacting the Bureau of Industry and Security (see Sec.  711.6).



Sec.  711.2  Who submits declarations, reports, and notifications.

    The owner, operator, or senior management official of a facility 
subject to declaration, report, or notification requirements under the 
CWCR (parts 710 through 722 of this subchapter) is responsible for the 
submission of all required documents in accordance with all applicable 
provisions of the CWCR.



Sec.  711.3  Assistance in determining your obligations.

    (a) Determining if your chemical is subject to declaration, 
reporting or notification requirements.
    (1) If you need assistance in determining if your chemical is 
classified as a Schedule 1, Schedule 2, or Schedule 3 chemical, or is an 
unscheduled discrete organic chemical, submit your written request for a 
chemical determination to BIS. Such requests may be faxed to (703) 235-
1481, e-mailed to [email protected], or mailed to Information Technology Team, 
Bureau of Industry and Security, U.S. Department of Commerce, 1555 
Wilson Boulevard, Suite 710, Arlington, Virginia 22209-2405. Your 
request should include the information noted in paragraph (a)(2) of this 
section to ensure an accurate determination. Also include any additional 
information that you feel is relevant to the chemical or process 
involved (see part 718 of this subchapter for provisions regarding 
treatment of confidential business information). If you are unable to 
provide all of the information required in paragraph (a)(2) of this 
section, you should include an explanation identifying the reasons or 
deficiencies that preclude you from supplying the information. If BIS 
cannot make a determination based upon the information submitted, BIS 
will return the request to you and identify the additional information 
that is necessary to complete a chemical determination.
    (2) Include the following information in each chemical determination 
request:
    (i) Date of request;
    (ii) Company name and complete street address;
    (iii) Point of contact;
    (iv) Phone and fax number of contact;
    (v) E-mail address of contact, if you want an acknowledgment of 
receipt sent via e-mail;
    (vi) Chemical Name;
    (vii) Structural formula of the chemical, if the chemical is not 
specifically identified by name and chemical abstract service registry 
number in Supplements No. 1 to parts 712 through 714 of the CWCR; and
    (viii) Chemical Abstract Service registry number, if assigned.
    (b) Other inquiries. If you need assistance in interpreting the 
provisions of this subchapter or need assistance with other CWC-related 
issues, and you require a response from BIS in writing, submit a 
detailed request to BIS that explains your question, issue, or request. 
Send the request to the address or fax included in paragraph (a) of this 
section, or e-mail the request to [email protected].
    (c) BIS response to your request. BIS will respond in writing to 
your chemical determination request submitted under paragraph (a) of 
this section within 10 working days of receipt of the request. BIS will 
respond to other inquiries about industry obligations under the CWCR in 
a timely manner.
    (d) Other BIS contact information. (1) Declaration and report 
requirements. For questions on declaration or report requirements, or 
help in completing forms, you may also contact BIS's Information 
Technology Team (ITT) by phone at (703) 235-1335.

[[Page 121]]

    (2) Inquiries regarding inspections and facility agreements. For 
questions regarding inspections and facility agreements, contact BIS's 
Inspection Management Team (IMT) by phone at (202) 482-6114 or fax (202) 
482-4744.



Sec.  711.4  Declaration and reporting of activities occurring prior 
to December 30, 1999.

    (a) Facilities subject to the CWCR are required to prepare and 
submit declarations and reports, to the extent that the necessary 
information and records are available, on activities occurring prior to 
December 30, 1999. Willful failure or refusal to submit such 
declarations and reports constitutes a violation under part 719 of this 
subchapter. Declarations and reports are not required if records and 
information necessary to prepare them are not available for one or more 
of the following reasons:
    (1) The necessary information was not collected, or the necessary 
records were not kept, because no regulatory requirement to do so was in 
effect prior to December 30, 1999 and at the time of the activity;
    (2) The information, though collected at the time of the activity, 
was discarded prior to December 30, 1999 in accordance with normal 
business practices; or
    (3) The current custodian of the records or information is no longer 
affiliated with a facility subject to the CWCR due to changes in 
ownership or control of that facility which took place prior to December 
30, 1999.
    (b) If partial information is available, facilities are required to 
provide whatever information is available, on the appropriate forms, 
with a notation on Form A indicating that complete information is not 
available.
    (c) This Sec.  711.4 applies only to initial declarations and 
reports, and to annual declarations and reports for calendar years 1997, 
1998, and 1999.



Sec.  711.5  Numerical precision of submitted data.

    Numerical information submitted in declarations and reports is to be 
provided per applicable rounding rules in each part (i.e., parts 712 
through 715 of this subchapter) with a precision equal to that which can 
be reasonably provided using existing documentation, equipment, and 
measurement techniques.



Sec.  711.6  Where to obtain forms.

    Forms to complete declarations and reports required by the CWCR may 
be obtained by contacting: Information Technology Team, Bureau of 
Industry and Security, U.S. Department of Commerce, 1555 Wilson Blvd., 
Suite 710, Arlington, VA 22209-2405, Telephone: (703) 235-1335. Forms 
may also be downloaded from the Internet at www.cwc.gov.



PART 712_ACTIVITIES INVOLVING SCHEDULE 1 CHEMICALS--Table of Contents




Sec.
712.1 Round to zero rule that applies to activities involving Schedule 1 
          chemicals.
712.2 Prohibitions involving imports of Schedule 1 chemicals.
712.3 Initial and annual declaration requirements for facilities engaged 
          in the production of Schedule 1 chemicals for purposes not 
          prohibited by the CWC.
712.4 New Schedule 1 production facility.
712.5 Advance notification and annual report of all exports and imports 
          of Schedule 1 chemicals to, or from, other States' Parties.
712.6 Frequency and timing of declarations, reports and notifications.
712.7 Amended declaration or report.

Supplement No. 1 to Part 712--Schedule 1 Chemicals

    Authority: 22 U.S.C. 6701 et seq.; 50 U.S.C. 1601 et seq.; 50 U.S.C. 
1701 et seq.; E.O. 12938 (59 FR 59099; 3 CFR, 1994 Comp., p. 950), as 
amended by E.O. 13094 (63 FR 40803; 3 CFR, 1998 Comp., p. 200); E.O. 
13128, 64 FR 36703.

    Source: 64 FR 73769, Dec. 30, 1999, unless otherwise noted.



Sec.  712.1  Round to zero rule that applies to activities involving 
Schedule 1 chemicals.

    (a) See Sec.  711.6 of this subchapter for information on obtaining 
the forms you will need to declare and report activities involving 
Schedule 1 chemicals.
    (b) Facilities that produce, export or import mixtures containing 
less than 0.5% aggregate quantities of Schedule 1 chemicals as 
unavoidable by-products or impurities may round to zero and are not 
subject to the provisions of this

[[Page 122]]

part 712. Schedule 1 content may be calculated by volume or weight, 
whichever yields the lesser percent. Note that such mixtures may be 
subject to regulatory requirements of other federal agencies.



Sec.  712.2  Prohibitions involving imports of Schedule 1 chemicals.

    (a) You may not import any Schedule 1 chemical unless:
    (1) The import is from a State Party;
    (2) The import is for research, medical, pharmaceutical, or 
protective purposes;
    (3) The import is in types and quantities strictly limited to those 
that can be justified for such purposes; and
    (4) You have notified BIS 45 calendar days prior to the import 
pursuant to Sec.  712.5.
    (b)(1) The provisions of paragraph (a) of this section do not apply 
to the retention, ownership, possession, transfer, or receipt of a 
Schedule 1 chemical by a department, agency, or other entity of the 
United States, or by a person described in paragraph (b)(2) of this 
section, pending destruction of the Schedule 1 chemical;
    (2) A person referred to in paragraph (b)(1) of this section is:
    (i) Any person, including a member of the Armed Forces of the United 
States, who is authorized by law or by an appropriate officer of the 
United States to retain, own, possess transfer, or receive the Schedule 
1 chemical; or
    (ii) In an emergency situation, any otherwise non-culpable person if 
the person is attempting to seize or destroy the Schedule 1 chemical.

    Note to Sec.  712.2: For specific provisions relating to the prior 
notification of exports of all Schedule 1 chemicals, see Sec.  742.18 of 
the Export Administration Regulations (EAR) (15 CFR parts 730 through 
799). For specific provisions relating to license requirements for 
exports of Schedule 1 chemicals, see Sec. Sec.  742.2 and 742.18 of the 
EAR for Schedule 1 chemicals subject to the jurisdiction of the 
Department of Commerce and see the International Traffic in Arms 
Regulations (22 CFR parts 120 through 130) for Schedule 1 chemicals 
subject to the jurisdiction of the Department of State.



Sec.  712.3  Initial and annual declaration requirements for facilities 

engaged in the production of Schedule 1 chemicals for purposes not 
prohibited by the CWC.

    (a) Declaration requirements. (1) Initial declaration. You must 
complete the forms specified in paragraph (b)(1) of this section, 
providing a current technical description of your facility or its 
relevant parts, if you produced Schedule 1 chemicals at your facility in 
excess of 100 grams aggregate in any one of the calendar years 1997, 
1998, or 1999. Note: Do not include production data in your initial 
declaration. Such information should be included in your annual 
declaration on past activities. See paragraph (a)(2) of this section.
    (2) Annual declaration on past activities. You must complete the 
forms specified in paragraph (b)(2) of this section if you produced at 
your facility in excess of 100 grams aggregate of Schedule 1 chemicals 
in the previous calendar year, beginning with calendar year 1997. As a 
declared Schedule 1 facility, in addition to declaring the production of 
each Schedule 1 chemical that comprises your aggregate production of 
Schedule 1 chemicals, you must also declare the total amount of each 
Schedule 1 chemical used (consumed) and stored at your facility, and 
domestically transferred from your facility during the previous calendar 
year, whether or not you produced that Schedule 1 chemical at your 
facility.
    (3) Annual declaration on anticipated activities. You must complete 
the forms specified in paragraph (b)(3) of this section if you 
anticipate that you will produce at your facility more than 100 grams 
aggregate of Schedule 1 chemicals in the next calendar year. If you are 
not already a declared facility, you must complete an initial 
declaration (see paragraph (a)(1) of this section) 200 calendar days 
before commencing operations or increasing production which will result 
in production of more than 100 grams aggregate of Schedule 1 chemicals 
(see Sec.  712.4).
    (b) Declaration forms to be used. (1) Initial declaration. (i) You 
must complete the Certification Form, Form 1-1 and Form A if you 
produced at your facility in excess of 100 grams aggregate of Schedule 1 
chemicals in calendar year

[[Page 123]]

1997, 1998, or 1999. You must provide a detailed current technical 
description of your facility or its relevant parts including a narrative 
statement, a detailed diagram of the declared areas in the facility, and 
an inventory of equipment in the declared area.
    (ii) If you plan to change the technical description of your 
facility from your initial declaration completed and submitted pursuant 
to paragraph (a)(1) of this section and Sec.  712.6, you must notify BIS 
200 calendar days prior to the change. Such notifications must be made 
through an amended declaration by completing a Certification Form, Form 
1-1 and Form A, including the new description of the facility. See Sec.  
712.7 for additional instructions on amending Schedule 1 declarations.
    (2) Annual declaration on past activities. If you are subject to the 
declaration requirement of paragraph (a)(2) of this section, you must 
complete the Certification Form and Forms 1-1, 1-2, 1-2A, 1-2B, and Form 
A if your facility was involved in the production of Schedule 1 
chemicals in the previous calendar year, beginning with calendar year 
1997. Form B is optional.
    (3) Annual declaration on anticipated activities. If you anticipate 
that you will produce at your facility in excess of 100 grams aggregate 
of Schedule 1 chemicals in the next calendar year you must complete the 
Certification Form and Forms 1-1, 1-4, and Form A. Form B is optional.
    (c) Quantities to be declared. If you produced in excess of 100 
grams aggregate of Schedule 1 chemicals in the previous calendar year, 
you must declare the entire quantity of such production, rounded to the 
nearest gram. You must also declare the quantity of any Schedule 1, 
Schedule 2 or Schedule 3 precursor chemical used to produce the declared 
Schedule 1 chemical, rounded to the nearest gram. You must further 
declare the quantity of each Schedule 1 chemical consumed or stored by, 
or domestically transferred from, your facility, whether or not the 
Schedule 1 chemical was produced by your facility, rounded to the 
nearest gram. In calculating the amount of Schedule 1 chemical you 
produced, consumed or stored, count only the amount of the Schedule 1 
chemical(s) in a mixture, not the total weight of the mixture (i.e., do 
not count the weight of the solution, solvent, or container).

    Note to Sec.  712.3(c):
    Schedule 1 reaction intermediates which exist or might exist during 
the course of synthesis to produce non-scheduled chemicals and which 
cannot be isolated using available technology should not be declared if 
the reaction is allowed to go to completion, completely consuming the 
real or hypothetical intermediates.

    (d) ``Declared'' Schedule 1 facilities and routine inspections. Only 
facilities that produced in excess of 100 grams aggregate of Schedule 1 
chemicals in calendar year 1997 or 1998, or during the previous calendar 
year, or that anticipate producing in excess of 100 grams aggregate of 
Schedule 1 chemicals during the next calendar year are considered 
``declared'' Schedule 1 facilities for the years declared. A 
``declared'' Schedule 1 facility is subject to initial and routine 
inspection by the OPCW (see part 716 of this subchapter).
    (e) Approval of declared Schedule 1 production facilities. 
Facilities that submit declarations pursuant to this section are 
considered approved Schedule 1 production facilities for purposes of the 
CWC, unless otherwise notified by BIS within 30 days of receipt by BIS 
of an annual declaration on past activities or annual declaration on 
anticipated activities (see paragraphs (a)(2) and (a)(3) of this 
section). If your facility does not produce more than 100 grams 
aggregate of Schedule 1 chemicals, no approval by BIS is required.



Sec.  712.4  New Schedule 1 production facility.

    (a) Establishment of a new Schedule 1 production facility. (1) If 
your facility was not declared under Sec.  712.3 in a previous calendar 
year, and you intend to begin production of Schedule 1 chemicals at your 
facility in quantities greater than 100 grams aggregate per year for 
research, medical, or pharmaceutical purposes, you must provide an 
initial declaration (a current detailed technical description of your 
facility) to BIS at least 200 calendar days in advance of commencing 
such production. Such facilities are considered ``new Schedule 1 
production facilities'' and

[[Page 124]]

are subject to an initial inspection within 200 calendar days of 
submitting an initial declaration.
    (2) New Schedule 1 production facilities that submit an initial 
declaration pursuant to paragraph (a)(1) of this section are considered 
approved Schedule 1 production facilities for purposes of the CWC, 
unless otherwise notified by BIS within 30 days of receipt by BIS of 
that initial declaration.
    (b) Types of declaration forms required. If your new Schedule 1 
production facility will produce in excess of 100 grams aggregate of 
Schedule 1 chemicals, you must complete the Certification Form, Form 1-1 
and Form A. You must also provide a detailed technical description of 
the new facility or its relevant parts, including a detailed diagram of 
the declared areas in the facility, and an inventory of equipment in the 
declared areas.
    (c) Two hundred days after a new Schedule 1 production facility 
submits its initial declaration, it is subject to the annual declaration 
requirements of Sec.  712.3(a)(2) and (a)(3).



Sec.  712.5  Advance notification and annual report of all exports 1 
and imports of Schedule 1 chemicals to, or from, other States Parties.
---------------------------------------------------------------------------

    \1\ Effective May 18, 1999, these advance notification and annual 
report requirements for exports are set forth in parts 742 and 745 of 
the Export Administration Regulations (EAR) (15 CFR parts 742 and 745).
---------------------------------------------------------------------------

    Pursuant to the Convention, the United States is required to notify 
the OPCW not less than 30 days in advance of every export or import of a 
Schedule 1 chemical, in any quantity, to or from another State Party. In 
addition, the United States is required to provide a report of all 
exports and imports of Schedule 1 chemicals to or from other States 
Parties during each calendar year. If you plan to export or import any 
quantity of a Schedule 1 chemical from or to your declared facility, 
undeclared facility or trading company, you must notify BIS in advance 
of the export or import and complete an annual report of exports and 
imports that actually occurred during the previous calendar year. The 
United States will transmit to the OPCW the advance notifications and a 
detailed annual declaration of each actual export or import of a 
Schedule 1 chemical from/to the United States. Note that the 
notification and annual report requirements of this section do not 
relieve you of any requirement to obtain a license from the Department 
of Commerce for the export of Schedule 1 chemicals subject to the Export 
Administration Regulations (15 CFR parts 730 through 799) or from the 
Department of State for the export of Schedule 1 chemicals subject to 
the International Traffic in Arms Regulations (22 CFR parts 120 through 
130). Only facilities that produce in excess of 100 grams aggregate of 
Schedule 1 chemicals annually are ``declared'' facilities and are 
subject to routine inspections pursuant to part 716 of this subchapter.
    (a) Advance notification of exports and imports. (1) You must notify 
BIS at least 45 calendar days prior to exporting or importing any 
quantity of a Schedule 1 chemical listed in Supplement No. 1 to this 
part to or from another State Party. Note that notifications for exports 
may be sent to BIS prior to or after submission of a license application 
to BIS for Schedule 1 chemicals subject to the EAR and controlled under 
ECCNs 1C350 or 1C351 or to the Department of State for Schedule 1 
chemicals controlled under the ITAR. Such notices must be submitted 
separately from license applications.
    (i) Notifications should be on company letterhead or must clearly 
identify the reporting entity by name of company, complete address, name 
of contact person and telephone and fax numbers, along with the 
following information:
    (A) Chemical name;
    (B) Structural formula of the chemical;
    (C) Chemical Abstract Service (CAS) Registry Number;
    (D) Quantity involved in grams;
    (E) Planned date of export or import;
    (F) Purpose (end-use) of export or import (i.e., research, medical, 
pharmaceutical, or protective purpose);
    (G) Name(s) of exporter and importer;
    (H) Complete street address(es) of exporter and importer;
    (I) U.S. export license or control number, if known; and

[[Page 125]]

    (J) Company identification number, once assigned by BIS.
    (ii) Send the notification by fax to (703) 235-1481 or to the 
following address for mail and courier deliveries:
    Information Technology Team, Bureau of Industry and Security, 
Department of Commerce, 1555 Wilson Boulevard, Suite 710, Arlington, VA 
22209-2405, Attn: ``Advance Notification of Schedule 1 Chemical [Export] 
[Import].''
    (iii) Upon receipt of the notification, BIS will inform the exporter 
of the earliest date the shipment may occur under the notification 
procedure. To export the Schedule 1 chemical subject to an export 
license requirement either under the EAR or the ITAR, the exporter must 
have applied for and been granted a license (see Sec. Sec.  742.2 and 
742.18 of the EAR, or the ITAR at 22 CFR parts 120 through 130).
    (b) Annual report requirements for exports and imports of Schedule 1 
chemicals. Any person subject to the CWCR that exported or imported any 
quantity of Schedule 1 chemical to or from another State Party during 
the previous calendar year, beginning with calendar year 1997, has a 
reporting requirement under this section.
    (1) Annual report on exports and imports. Declared and undeclared 
facilities, trading companies, and any other person subject to the CWCR 
that exported or imported any quantity of a Schedule 1 chemical to or 
from another State Party in a previous calendar year, beginning with 
calendar year 1997, must submit an annual report on exports and imports.

    Note to paragraph (b)(1):
    The U.S. Government will not submit to the OPCW company-specific 
information relating to the export or import of Schedule 1 chemicals 
contained in reports. The U.S. Government will add all export and import 
information contained in reports to establish the U.S. national 
aggregate declaration on exports and imports.

    (2) Report forms to submit. (i) Declared Schedule 1 facilities. (A) 
If your facility declared production of a Schedule 1 chemical and you 
also exported or imported any amount of that same Schedule 1 chemical, 
you may report the export or import by:
    (1) Submitting, along with your declaration, Form 1-3 for that same 
Schedule 1 chemical to be reported. Attach Form A, as appropriate; Form 
B is optional; or
    (2) Submitting, separately from your declaration, a Certification, 
Form 1-1, and a Form 1-3 for each Schedule 1 chemical to be reported. 
Attach Form A, as appropriate; Form B is optional.
    (B) If your facility declared production of a Schedule 1 chemical 
and exported or imported any amount of a different Schedule 1 chemical, 
you may report the export or import by:
    (1) Submitting, along with your declaration, a Form 1-3 for each 
Schedule 1 chemical to be reported. Attach Form A, as appropriate; Form 
B is optional; or
    (2) Submitting, separately from your declaration, a Certification 
Form, Form 1-1, and a Form 1-3 for each Schedule 1 chemical to be 
reported. Attach Form A, as appropriate; Form B is optional.
    (ii) If you are an undeclared facility, trading company, or any 
other person subject to the CWCR, and you exported or imported any 
amount of a Schedule 1 chemical, you must submit a Certification Form, 
Form 1-1, and a Form 1-3 for each Schedule 1 chemical to be reported. 
Attach Form A, as appropriate; Form B is optional.
    (c) Paragraph (a) of this section does not apply to the activities 
and persons set forth in Sec.  712.2(b).



Sec.  712.6  Frequency and timing of declarations, reports and notifications.

    Declarations, reports and notifications required under this part 
must be postmarked by the appropriate date identified in Table 1 of this 
section. Required declarations, reports and notifications include:
    (a) Initial declaration (technical description);
    (b) Annual declaration on past activities (production during the 
previous calendar year, beginning with 1997);
    (c) Annual report on exports and imports from trading companies, 
facilities and other persons (during the previous calendar year, 
beginning with 1997);

[[Page 126]]

    (d) Annual declaration on anticipated activities (production in the 
next calendar year, beginning in calendar year 2000 for production 
anticipated for calendar year 2001);
    (e) Advance notification of any export to or import from another 
State Party; and
    (f) Initial declaration of a new Schedule 1 production facility.

     Table 1 to Sec.   712.6--Deadlines for Submission of Schedule 1
                              Declarations
------------------------------------------------------------------------
      Declarations and
        notifications           Applicable forms          Due dates
------------------------------------------------------------------------
Initial Declaration--         Certification, 1-1,   March 30, 2000.
 Declared facility             A, B (optional).
 (technical description).
Annual Declaration on Past    Certification, 1-1,   For 1997, 1998, and
 Activities (previous          1-2, 1-2A, 1-2B, 1-   1999 March 30,
 calendar year, starting       3 (if also exported   2000. Thereafter,
 with 1997)--Declared          or imported), A (as   February 28.
 facility (past production).   appropriate), B
                               (optional).
Annual report on exports and  Certification, 1-1,   For 1997, 1998, and
 imports (previous calendar    1-3, A (as            1999 March 30,
 year, starting with 1997)     appropriate), B       2000. Thereafter,
 (facility, trading company,   (optional).           February 28.
 other persons).
Annual Declaration on         Certification, 1-1,   August 3 of each
 Anticipated Activities        1-4, A (as            year prior to the
 (next calendar year).         appropriate), B       calendar year in
                               (optional).           which anticipated
                                                     activities will
                                                     take place,
                                                     beginning in
                                                     calendar year 2000.
Advance Notification of any   Notify on             45 calendar days
 export to or import from      letterhead. See       prior to the export
 another State Party.          Sec.   712.5 of       or import.
                               this subchapter.
Initial Declaration of a new  Certification, 1-1,   200 calendar days
 Schedule 1 facility.          A (as appropriate),   before commencing
                               B (optional).         such production.
------------------------------------------------------------------------



Sec.  712.7  Amended declaration or report.

    (a) You must submit an amended declaration or report for changes to 
previously submitted information on chemicals, activities and end-use 
purposes or the addition of new chemicals, activities and end-use 
purposes.
    (b) For declared Schedule 1 facilities, changes that may affect 
verification activities, such as changes of owner or operator, company 
name, address, or inspection point of contact, require an amended 
declaration. Non-substantive typographical errors and changes to the 
declaration point of contact do not require submission of an amended 
declaration or report and may be corrected in subsequent declarations or 
reports.
    (c) For undeclared Schedule 1 facilities, trading companies and 
other persons, changes that do not directly affect the purpose of the 
Convention, such as changes to a company name, address, point of 
contact, or non-substantive typographical errors, do not require 
submission of an amended report and may be corrected in subsequent 
reports.
    (d) If you are required to submit an amended declaration or report 
pursuant to paragraph (a) or (b) of this section, you must complete and 
submit a new Certification Form and the specific form(s) being amended 
(e.g., annual declaration on past activities, annual declaration on 
anticipated activities). Only complete that portion of each form that 
corrects the previously submitted information.
           Supplement No. 1 to Part 712--Schedule 1 Chemicals

------------------------------------------------------------------------
                                                          (CAS registry
                                                             number)
------------------------------------------------------------------------
A. Toxic chemicals:
    (1) O-Alkyl (<=C10, incl. cycloalkyl) alkyl (Me,
     Et, n-Pr or i-Pr)-phosphonofluoridates
        e.g. Sarin: O-Isopropyl                               (107-44-8)
         methylphosphonofluoridate....................
        Soman: O-Pinacolyl methylphosphonofluoridate..         (96-64-0)
    (2) O-Alkyl (<=C10, incl. cycloalkyl) N,N-dialkyl          (77-81-6)
     (Me, Et, n-Pr or i-Pr) phosphoramidocyanidates
     e.g. Tabun: O-Ethyl N,N-dimethyl
     phosphoramidocyanidate...........................
    (3) O-Alkyl (H or <=C10, incl. cycloalkyl) S-2-         (50782-69-9)
     dialkyl (Me, Et, n-Pr or i-Pr)-aminoethyl alkyl
     (Me, Et, n-Pr or i-Pr) phosphonothiolates and
     corresponding alkylated or protonated salts e.g.
     VX: O-Ethyl S-2-diisopropylaminoethyl methyl
     phosphonothiolate................................

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    (4) Sulfur mustards:
        2-Chloroethylchloromethylsulfide..............       (2625-76-5)
        Mustard gas: Bis(2-chloroethyl)sulfide........        (505-60-2)
        Bis(2-chloroethylthio)methane.................      (63869-13-6)
        Sesquimustard: 1,2-Bis(2-                            (3563-36-8)
         chloroethylthio)ethane.......................
        1,3-Bis(2-chloroethylthio)-n-propane..........      (63905-10-2)
        1,4-Bis(2-chloroethylthio)-n-butane...........     (142868-93-7)
        1,5-Bis(2-chloroethylthio)-n-pentane..........     (142868-94-8)
        Bis(2-chloroethylthiomethyl)ether.............      (63918-90-1)
        O-Mustard: Bis(2-chloroethylthioethyl)ether...      (63918-89-8)
    (5) Lewisites:
        Lewisite 1: 2-Chlorovinyldichloroarsine.......        (541-25-3)
        Lewisite 2: Bis(2-chlorovinyl)chloroarsine....      (40334-69-8)
        Lewisite 3: Tris(2-chlorovinyl)arsine.........      (40334-70-1)
    (6) Nitrogen mustards:
        HN1: Bis(2-chloroethyl)ethylamine.............        (538-07-8)
        HN2: Bis(2-chloroethyl)methylamine............         (51-75-2)
        HN3: Tris(2-chloroethyl)amine.................        (555-77-1)
    (7) Saxitoxin.....................................      (35523-89-8)
    (8) Ricin.........................................       (9009-86-3)
    B. Precursors:
    (9) Alkyl (Me, Et, n-Pr or i-Pr)                          (676-99-3)
     phosphonyldifluorides e.g. DF:
     Methylphosphonyldifluoride.......................
    (10) O-Alkyl (H or <=C10, incl. cycloalkyl) O-2-        (57856-11-8)
     dialkyl (Me, Et, n-Pr or i-Pr)-aminoethyl alkyl
     (Me, Et, N-Pr or i-Pr) phosphonites and
     corresponding alkylated or protonated salts e.g.
     QL: O-Ethyl O-2-diisopropylaminoethyl
     methylphosphonite................................
    (11) Chlorosarin: O-Isopropyl                            (1445-76-7)
     methylphosphonochloridate........................
    (12) Chlorosoman: O-Pinacolyl                            (7040-57-5)
     methylphosphonochloridate........................
------------------------------------------------------------------------
Notes to Supplement No. 1:
Note 1: Note that the following Schedule 1 chemicals are controlled for
  export purposes under the Export Administration Regulations (see part
  774 of the EAR, the Commerce Control List): 0-Ethyl-2-
  diisopropylaminoethyl methylphosphonite (QL) (C.A.S. 57856-11-
  8), Ethylphosphonyl difluoride (C.A.S. 753-98-0),
  Methylphosphonyl difluoride (C.A.S. 676-99-3), Saxitoxin
  (35523-89-8), Ricin (9009-86-3).
Note 2: All Schedule 1 chemicals not listed in Note 1 to this Supplement
  are controlled for export purposes by the Office of Defense Trade
  Control of the Department of State under the International Traffic in
  Arms Regulations (22 CFR parts 120 through 130).



PART 713_ACTIVITIES INVOLVING SCHEDULE 2 CHEMICALS--Table of Contents




Sec.
713.1 Prohibition on imports of Schedule 2 chemicals from non-States 
          Parties.
713.2 Declaration on past production of Schedule 2 chemicals for 
          chemical weapons purposes.
713.3 Initial and annual declaration requirements for plant sites that 
          produce, process or consume Schedule 2 chemicals in excess of 
          specified thresholds.
713.4 Initial and annual declaration and reporting requirements for 
          exports and imports of Schedule 2 chemicals.
713.5 Advance declaration requirements for additionally planned 
          production, processing or consumption of Schedule 2 chemicals.
713.6 Frequency and timing of declarations and reports.
713.7 Amended declaration or report.

Supplement No. 1 to Part 713--Schedule 2 Chemicals

    Authority: 22 U.S.C. 6701 et seq.; 50 U.S.C. 1601 et seq.; 50 U.S.C. 
1701 et seq; E.O. 12938 (59 FR 59099; 3 CFR, 1994 Comp., p. 950), as 
amended by E.O. 13094 (63 FR 40803; 3 CFR, 1998 Comp., p. 200); E.O. 
13128, 64 FR 36703.

    Source: 64 FR 73722, Dec. 30, 1999, unless otherwise noted.



Sec.  713.1  Prohibition on imports of Schedule 2 chemicals from non-States 
Parties.

    (a) See Sec.  711.6 of this subchapter for information on obtaining 
the forms you will need to declare and report activities involving 
Schedule 2 chemicals. You may not import any Schedule 2 chemical (see 
Supplement No. 1 to this part) on or after April 29, 2000, from any 
destination other than a State Party to the Convention. See Supplement 
No. 1 to part 710 of this subchapter for a list of States that are party 
to the Convention.

    Note to paragraph (a).
    See Sec.  742.18 of the Export Administration Regulations (15 CFR 
part 742) for prohibitions that apply to exports of Schedule 2 chemicals 
on or after April 29, 2000 to non-States Parties and for End-Use 
Certificate requirements for exports of Schedule 2 chemicals prior to 
April 29, 2000 to such destinations.

    (b) Paragraph (a) of this section does not apply to:

[[Page 128]]

    (1) The transfer or receipt of a Schedule 2 chemical from a non-
State Party by a department, agency, or other entity of the United 
States, or by any person, including a member of the Armed Forces of the 
United States, who is authorized by law, or by an appropriate officer of 
the United States to transfer or receive the Schedule 2 chemical; or
    (2) Mixtures containing Schedule 2 chemicals, if the concentration 
of each Schedule 2 chemical in the mixture is 10% or less by weight. 
Note, however, that such mixtures may be subject to regulatory 
requirements of other federal agencies.



Sec.  713.2  Declaration on past production of Schedule 2 chemicals 
for chemical weapons purposes.

    You must complete the Certification Form and Forms 2-1, 2-2, 2-4, 
Form A, if you produced at your plant site any quantity of a Schedule 2 
chemical at any time since January 1, 1946, for chemical weapons 
purposes. Form B is optional. You must declare the total quantity of 
such a chemical produced, rounded to the nearest kilogram. Note that you 
are not subject to routine inspection unless you are a declared facility 
pursuant to Sec.  713.3.



Sec.  713.3  Initial and annual declaration requirements for plant sites 

that produce, process or consume Schedule 2 chemicals in excess of 
specified thresholds.

    (a) Declaration of production, processing or consumption of Schedule 
2 chemicals for purposes not prohibited by the CWC.
    (1) Quantities of production, processing or consumption that trigger 
declaration requirements. You must complete the forms specified in 
paragraph (b) of this section if you have been or will be involved in 
the following activities:
    (i) Initial declaration. You produced, processed or consumed at one 
or more plants on your plant site during any of the calendar years 1994, 
1995, or 1996, a Schedule 2 chemical in excess of the following 
declaration threshold quantities:
    (A) 1 kilogram of chemical BZ: 3-Quinuclidinyl benzilate (see 
Schedule 2, paragraph A.3 included in Supplement No. 1 to this part);
    (B) 100 kilograms of chemical PFIB: 1,1,3,3,3-Pentafluoro-
2(trifluoromethyl)-1-propene or 100 kilograms of chemical Amiton: 0,0-
Diethyl S-[2-(diethylamino) ethyl] phosphorothiolate and corresponding 
alkylated or protonated salts (see Schedule 2, paragraphs A.1 and A.2 
included in Supplement No. 1 to this part); or
    (C) 1 metric ton of any chemical listed in Schedule 2, Part B (see 
Supplement No. 1 to this part).

    Note to paragraph (a)(1)(i).
    To determine whether you have an initial declaration requirement for 
Schedule 2 activities, you must determine whether you produced, 
processed or consumed a Schedule 2 chemical above the applicable 
threshold quantity at one or more plants on your plant site in calendar 
years 1994, 1995, or 1996. For example, if you determine that one plant 
on your plant site produced greater than 1 kilogram of the chemical BZ 
in calendar year 1995, and no plants on your plant site produced, 
processed or consumed any Schedule 2 chemical above the applicable 
threshold quantity in calendar years 1994 or 1996, you have an initial 
declaration requirement under this paragraph. You must submit three 
Forms 2-3--one for each of the calendar years 1994, 1995, and 1996--and 
complete question 2-3.1 on each of the forms to declare production data 
on BZ for calendar years 1994, 1995 and 1996. For calendar year 1995, 
you would declare the quantity of BZ actually produced. For calendar 
years 1994 and 1996, you would declare ``0'' production quantity. Since 
the plant site did not engage in any other declarable activity (i.e., 
consumption, processing), you would leave blank questions 2-3.2 and 2-
3.3 on Form 2-3 for calendar years 1994, 1995, and 1996. Note that 
declaring a ``0'' quantity for production in 1994 and 1996, as opposed 
to leaving the question blank, permits BIS to distinguish the activity 
that triggered the initial declaration requirement for each year from 
activities that were not declarable during that period.

    (ii) Annual declaration on past activities. You produced, processed 
or consumed at one or more plants on your plant site during any of the 
previous three calendar years, a Schedule 2 chemical in excess of the 
applicable declaration threshold quantity specified in paragraphs 
(a)(1)(i)(A) through (C) of this section.

    Note to paragraph (a)(1)(ii).
    To determine whether you have an annual declaration on past 
activities requirement for Schedule 2 chemicals, you must determine 
whether you

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produced, processed or consumed a Schedule 2 chemical above the 
applicable threshold quantity at one or more plants on your plant site 
in any one of the three previous calendar years. For example, for the 
1997 declaration period, if you determine that one plant on your plant 
site produced greater than 1 kilogram of the chemical BZ in calendar 
year 1995, and no plants on your plant site produced, processed or 
consumed any Schedule 2 chemical above the applicable threshold quantity 
in calendar years 1996 or 1997, you still have a declaration requirement 
under this paragraph for the previous calendar year (1997). However, you 
must only declare on Form 2-3 (question 2-3.1), production data for 
calendar year 1997. You would declare ``0'' production quantity because 
you did not produce BZ above the applicable threshold quantity in 
calendar year 1997. Since the plant site did not engage in any other 
declarable activity (i.e., consumption, processing) in the 1995-1997 
declaration period, you would leave blank questions 2-3.2 and 2-3.3 on 
Form 2-3. Note that declaring a ``0'' production quantity for 1997, as 
opposed to leaving the question blank, permits BIS to distinguish the 
activity that triggered the declaration requirement from activities that 
were not declarable during that period.

    (iii) Annual declaration on anticipated activities. You anticipate 
that you will produce, process or consume at one or more plants on your 
plant site during the next calendar year, starting with activities 
anticipated for calendar year 2001, a Schedule 2 chemical in excess of 
the applicable declaration threshold quantity set forth in paragraphs 
(a)(1)(i)(A) through (C) of this section.
    (2) Mixtures containing a Schedule 2 chemical. (i)The quantity of a 
Schedule 2 chemical contained in a mixture must be counted when 
determining the total quantity of a Schedule 2 chemical produced, 
processed, or consumed at your plant only if the concentration of the 
Schedule 2 chemical in the mixture is 30% or more by volume or by 
weight, whichever yields the lesser percent.
    (ii) Counting the amount of the Schedule 2 chemical in a mixture. If 
your mixture contains 30% or more concentration of a Schedule 2 
chemical, you must count only the amount (weight) of the Schedule 2 
chemical in the mixture, not the total weight of the mixture.
    (iii) Determining declaration requirements for production, 
processing and consumption. You must include the amount (weight) of a 
Schedule 2 chemical in a mixture when determining the total production, 
total processing, or total consumption of that Schedule 2 chemical at a 
plant on your plant site. If the total amount of the produced, processed 
or consumed Schedule 2 chemical exceeds the applicable declaration 
threshold set forth in paragraphs (a)(1)(i)(A) through (C) of this 
section, you have a declaration requirement. For example, if during 
calendar year 1997, a plant on your plant site produced a mixture 
containing 300 kilograms of thiodiglycol in a concentration of 32% and 
also produced 800 kilograms of thiodiglycol, that plant produced 1100 
kilograms and exceeded the declaration threshold of 1 metric ton for 
that Schedule 2 chemical. You must declare past production of 
thiodiglycol at that plant site for calendar year 1997. If, on the other 
hand, a plant on your plant site processed a mixture containing 300 
kilograms of thiodiglycol in a concentration of 25% and also processed 
800 kilograms of thiodiglycol in other than mixture form, the total 
amount of thiodiglycol processed at that plant for CWCR purposes would 
be 800 kilograms and would not trigger a declaration requirement. This 
is because the concentration of thiodiglycol in the mixture is less than 
30% and therefore did not have to be ``counted'' and added to the other 
800 kilograms of processed thiodiglycol at that plant.
    (b) Types of declaration forms to be used. (1) Initial declaration. 
You must complete the Certification Form and Forms 2-1, 2-2, 2-3, 2-3A, 
and Form A if you produced, processed or consumed at one or more plants 
on your plant site a Schedule 2 chemical in excess of the applicable 
declaration threshold quantity specified in paragraphs (a)(1)(i)(A) 
through (C) of this section during any of the three calendar years 1994, 
1995, or 1996. Form B is optional. If you are subject to initial 
declaration requirements, you must include data for each of the calendar 
years 1994, 1995, and 1996.
    (2) Annual declaration on past activities. You must complete the 
Certification Form and Forms 2-1, 2-2, 2-3, 2-3A, and Form A if one or 
more plants on your plant site produced, processed or consumed more than 
the applicable

[[Page 130]]

threshold quantity of a Schedule 2 chemical described in paragraphs 
(a)(1)(i)(A) through (C) of this section in any of the three previous 
calendar years. Form B is optional. If you are subject to annual 
declaration requirements, you must include data for the previous 
calendar year only.
    (3) Annual declaration on anticipated activities. You must complete 
the Certification Form and Forms 2-1, 2-2, 2-3, 2-3A, 2-3C, and Form A 
if you plan to produce, process, or consume at any plant on your plant 
site a Schedule 2 chemical above the applicable threshold quantity set 
forth in paragraphs (a)(1)(i)(A) through (C) of this section during the 
following calendar year, beginning with activities planned for calendar 
year 2001. Form B is optional.
    (c) Quantities to be declared. (1) Production, processing and 
consumption of a Schedule 2 chemical above the declaration threshold--
(i) Initial declaration. If you are required to complete forms pursuant 
to paragraph (a)(1)(i) of this section, you must declare the aggregate 
quantity resulting from each type of activity (production, processing or 
consumption) from each plant on your plant site that exceeds the 
applicable threshold quantity for that Schedule 2 chemical for each of 
the calendar years 1994, 1995, and 1996. Do not aggregate amounts of 
production, processing or consumption from plants on the plant site that 
did not individually produce, process or consume a Schedule 2 chemical 
in amounts greater than the applicable threshold levels. For those years 
in which you produced, processed or consumed the declared chemical below 
the declaration threshold, you declare ``0'' only for the declared 
activities.
    (ii) Annual declaration on past activities. If you are required to 
complete forms pursuant to paragraph (a)(1)(ii) of this section, you 
must declare the aggregate quantity resulting from each type of activity 
(production, processing or consumption) from each plant on your plant 
site that exceeds the applicable threshold quantity for that Schedule 2 
chemical. Do not aggregate amounts of production, processing or 
consumption from plants on the plant site that did not individually 
produce, process or consume a Schedule 2 chemical in amounts greater 
than the applicable threshold levels. If in the previous calendar year 
you produced, processed or consumed below the declaration threshold, but 
your declaration requirement is triggered because of activities 
occurring in an earlier year, you declare ``0'' only for the declared 
activities.
    (2) Rounding. For the chemical BZ, report quantities to the nearest 
hundredth of a kilogram (10 grams). For PFIB and the Amiton family, 
report quantities to the nearest 1 kilogram. For all other Schedule 2 
chemicals, report quantities to the nearest 10 kilograms.
    (d) ``Declared'' Schedule 2 plant sites. A plant site that comprises 
at least one plant that produced, processed or consumed a Schedule 2 
chemical above the applicable threshold quantity set forth in paragraphs 
(a)(1)(i)(A) through (C) of this section during any of the previous 
three calendar years or is anticipated to produce, process or consume a 
Schedule 2 chemical above the applicable threshold quantity in the next 
calendar year is a ``declared'' plant site. A plant site that submitted 
an initial declaration for activities that occurred in 1994, 1995, or 
1996 is a ``declared'' Schedule 2 plant site for those years.
    (e) Declared Schedule 2 plant sites subject to routine inspections. 
A ``declared'' Schedule 2 plant site is subject to initial and routine 
inspection by the Organization for the Prohibition of Chemical Weapons 
if it produced, processed or consumed in any of the three previous 
calendar years, or is anticipated to produce, process or consume in the 
next calendar year, in excess of ten times the applicable declaration 
threshold quantity set forth in paragraphs (a)(1)(i)(A) through (C) of 
this section (see part 716 of this subchapter). A plant site that 
submitted an initial declaration for calendar years 1994, 1995, and 
1996, and exceeded the applicable inspection threshold is also subject 
to an initial inspection.



Sec.  713.4  Initial and annual declaration and reporting requirements 
for exports and imports of Schedule 2 chemicals.

    (a) Declarations and reports of exports and imports of Schedule 2 
chemicals.

[[Page 131]]

    (1) Declarations. A Schedule 2 plant site that is declared because 
it produced, processed or consumed a Schedule 2 chemical above the 
applicable threshold quantity, and also exported from or imported to the 
plant site that same Schedule 2 chemical above the applicable threshold 
quantity, must submit export and import information as part of its 
declaration.

    Note to paragraph (a)(1):
    A declared Schedule 2 plant site may need to declare exports or 
imports of Schedule 2 chemicals that it produced, processed or consumed 
above the applicable threshold quantity and also report exports or 
imports of different Schedule 2 chemicals that it did not produce, 
process or consume above the applicable threshold quantities.

    (2) Reports. A declared plant site that does not meet the 
description of paragraph (a)(1) of this section, and an undeclared plant 
site or a trading company or any other person subject to the CWCR must 
submit a report if it exported or imported a Schedule 2 chemical above 
the applicable threshold quantity.

    Note to paragraph (a)(2):
    The U.S. Government will not submit to the OPCW company-specific 
information relating to the export or import of Schedule 2 chemicals 
contained in reports. The U.S. Government will add all export and import 
information contained in reports to export and import information 
contained in declarations to establish the U.S. national aggregate 
declaration on exports and imports.
    Note to paragraphs (a)(1) and (2):
    Declared and undeclared plant sites must count, for declaration or 
report purposes, all exports from and imports to the entire plant site, 
not only from or to individual plants on the plant site.

    (b) Quantities of exports or imports that trigger a declaration or 
report requirement. (1) You have a declaration or report requirement and 
must complete the forms specified in paragraph (d) of this section if 
you exported or imported a Schedule 2 chemical in excess of the 
following threshold quantities:
    (i) 1 kilogram of chemical BZ: 3-Quinuclidinyl benzilate (See 
Schedule 2, paragraph A.3 included in Supplement No. 1 to this part);
    (ii) 100 kilograms of chemical PFIB: 1,1,3,3,3-Pentafluoro-
2(trifluoromethyl)-1-propene or 100 kilograms of Amiton : O,O Diethyl S-
[2(diethylamino)ethyl] phosphorothiolate and corresponding alkylated or 
protonated salts (see Schedule 2, paragraphs A.1 and A.2 included in 
Supplement No.1 to this part);
    (iii) 1 metric ton of any chemical listed in Schedule 2, Part B (see 
Supplement No.1 to this part).
    (2) Mixtures containing a Schedule 2 chemical. The quantity of a 
Schedule 2 chemical contained in a mixture must be counted for the 
declaration or reporting of an export or import only if the 
concentration of the Schedule 2 chemical in the mixture is 30% or more 
by volume or by weight, whichever yields the lesser percent.

    Note 1 to paragraph (b)(2).
    See Sec.  713.3(a)(2)(ii) for information on counting amounts of 
Schedule 2 chemicals contained in mixtures and determining declaration 
and report requirements.
    Note 2 to paragraph (b)(2).
    The ``30% and above'' mixtures rule applies only for declaration and 
report purposes. This rule does not apply for purposes of determining 
whether the export of your mixture to a non-State Party requires an End-
Use Certificate or for determining whether you need an export license 
from the Department of Commerce (see Sec. Sec.  742.2, 742.18 and 745.2 
of the Export Administration Regulations) or from the Department of 
State (see the International Traffic in Arms Regulations (22 CFR parts 
120 through 130).

    (c) Declaration and report requirements. (1) Initial declaration. A 
plant site described in paragrpah (a)(1) of this section that has an 
initial declaration requirement for production, processing, or 
consumption of a Schedule 2 chemical must also declare the export or 
import of that same Schedule 2 chemical if the amount exported or 
imported in 1994, 1995 or 1996 exceeded the applicable threshold 
quantity set forth in paragraph (b)(1)(i) through (iii) of this section. 
For the initial declaration, the plant site must only declare the export 
or import information for any of the calendar years (1994, 1995 and/or 
1996) in which the export or import exceeded the applicable threshold 
quantity.
    (2) Initial report on exports and imports. Declared plant sites 
described in paragraph (a)(2) of this section, undeclared plant sites, 
trading companies or any other person subject to the CWCR that exported 
or imported a Schedule 2

[[Page 132]]

chemical in 1996 in excess of the applicable threshold quantity set 
forth in paragraph (b) of this section, must submit an initial report on 
exports or imports for calendar year 1996.
    (3) Annual declaration on past activities. A plant site described in 
paragraph (a)(1) that has an annual declaration requirement for 
production, processing, or consumption of a Schedule 2 chemical for the 
previous calendar year, beginning in 1997, must also declare the export 
and/or import of that same Schedule 2 chemical if the amount exceeded 
the applicable threshold quantity set forth in paragraph (b). The plant 
site must declare the export or import information for that same 
Schedule 2 chemical as part of its annual declaration of past 
activities.
    (4) Annual report on exports and imports. Declared plant sites 
described in paragraph (a)(2), and undeclared plant sites, trading 
companies or any other person subject to the CWCR that exported or 
imported a Schedule 2 chemical in a previous calendar year, beginning in 
1997, in excess of the applicable threshold quantity set forth in 
paragraphs (b)(1) (i) through (iii) must submit an annual report on 
exports or imports.
    (d) Types of declaration and report forms to be used. (1) Initial 
declaration. If you are a declared Schedule 2 plant site as described in 
paragraph (a)(1), you must complete Form 2-3B in addition to the forms 
required by Sec.  713.3(b)(1). You must complete the forms for each 
declared Schedule 2 chemical and for each of the calendar years 1994, 
1995, and 1996, in which the export or import exceeded the applicable 
threshold quantity.
    (2) Initial report on exports and imports. (i) If you are a declared 
plant site as described in paragraph (a)(2), you may fulfill your 
reporting requirements by:
    (A) Submitting, along with your initial declaration, a Form 2-3B for 
each Schedule 2 chemical you exported or imported above the applicable 
threshold quantity. Attach Form A, as appropriate; Form B is optional.
    (B) Submitting, separately from your initial declaration, a 
Certification Form, Form 2-1, and Form 2-3B for each Schedule 2 chemical 
you exported or imported above the applicable threshold quantity. Attach 
Form A, as appropriate; Form B is optional.
    (ii) If you are an undeclared plant site or trading company, you 
must complete the Certification Form, Form 2-1, and Form 2-3B for each 
Schedule 2 chemical you exported or imported above the applicable 
threshold quantity. Attach Form A, as appropriate; Form B is optional.
    (3) Annual declaration on past activities. If you are a declared 
Schedule 2 plant site as described in paragraph (a)(1), you must 
complete Form 2-3B, in addition to the forms required by Sec.  
713.3(b)(2), for each declared Schedule 2 chemical exported or imported 
above the applicable threshold quantity in the previous calendar year.
    (4) Annual report on exports and imports. (i) If you are a declared 
plant site as described in paragraph (a)(2), you may fulfill your annual 
reporting requirements by:
    (A) Submitting, along with your annual declaration on past 
activities, a Form 2-3B for each Schedule 2 chemical you exported or 
imported above the applicable threshold quantity. Attach Form A, as 
appropriate; Form B is optional.
    (B) Submitting, separately from your annual declaration on past 
activities, a Certification Form, Form 2-1, and Form 2-3B for each 
Schedule 2 chemical you exported or imported above the applicable 
threshold quantity. Attach Form A, as appropriate; Form B is optional.
    (ii) If you are an undeclared plant site, trading company or any 
other person subject to the CWCR, you must complete the Certification 
Form, Form 2-1, and Form 2-3B for each Schedule 2 chemical you exported 
or imported above the applicable threshold quantity. Attach Form A, as 
appropriate; Form B is optional.
    (e) Quantities to be declared. (1) Calculations. If you exported 
from or imported to your plant site, trading company, or other location 
more than the applicable threshold quantity of a Schedule 2 chemical, 
you must declare or report all exports and imports by destination, and 
indicate the total amount exported to or imported from each destination. 
Only indicate the total annual quantity exported to or

[[Page 133]]

imported from a specific destination if the total annual quantity to or 
from that destination is more than 1% of the applicable threshold (i.e., 
more than 10 grams of BZ, 1 kilogram of PFIB and Amiton and 
corresponding alkylated or protonated salts, or 10 kilograms of all 
other Schedule 2 chemicals). However, in determining whether your total 
exports and imports worldwide for the year in question trigger a 
declaration or report requirement, you must include all exports and 
imports, including exports and imports falling within the 1% exemption 
in your calculation.
    (2) Rounding. For purposes of declaring or reporting exports and 
imports of a Schedule 2 chemical, you must total all exports and imports 
per calendar year per recipient or source destination and then round as 
follows: for the chemical BZ, the total quantity for each destination 
should be reported to the nearest hundredth of a kilogram (10 grams); 
for PFIB and Amiton and corresponding alkylated or protonated salts, the 
quantity for each destination should be reported to the nearest 1 
kilogram; and for all other Schedule 2 chemicals, the total quantity for 
each destination should be reported to the nearest 10 kilograms.



Sec.  713.5  Advance declaration requirements for additionally planned 
production, processing, or consumption of Schedule 2 chemicals.

    (a) Declaration requirements for additionally planned activities. 
(1) You must declare additionally planned production, processing, or 
consumption of Schedule 2 chemicals after the annual declaration on 
anticipated activities for the next calendar year has been delivered to 
BIS if:
    (i) You plan that a previously undeclared plant on your plant site 
under Sec.  713.3(a)(1)(iii) will produce, process, or consume a 
Schedule 2 chemical above the applicable declaration threshold;
    (ii) You plan to produce, process, or consume at a plant declared 
under Sec.  713.3(a)(1)(iii) an additional Schedule 2 chemical above the 
applicable declaration threshold;
    (iii) You plan an additional activity (production, processing, or 
consumption) at your declared plant above the applicable declaration 
threshold for a chemical declared under Sec.  713.3(a)(1)(iii);
    (iv) You plan to increase the production, processing, or consumption 
of a Schedule 2 chemical by a plant declared under Sec.  
713.3(a)(1)(iii) from the amount exceeding the applicable declaration 
threshold to an amount exceeding the applicable inspection threshold 
(see Sec.  716.1(b)(2));
    (v) You plan to change the starting or ending date of anticipated 
production, processing, or consumption declared under Sec.  
713.3(a)(1)(iii) by more than three months; or
    (vi) You plan to increase your production, processing, or 
consumption of a Schedule 2 chemical by a declared plant site by 20 
percent or more above that declared under Sec.  713.3(a)(1)(iii).
    (2) If you must submit a declaration on additionally planned 
activities because you plan to engage in any of the activities listed in 
paragraphs (a)(1) (i) through (vi) of this section, you should also 
declare changes to your declaration relating to the following 
activities. You do not have to submit an additionally planned 
declaration if you are only changing the following non-quantitative 
activities:
    (i) Changes to the plant's production capacity;
    (ii) Changes or additions to the product group codes for the plant 
site or the plant(s);
    (iii) Changes to the plant's activity status (i.e., dedicated, 
multipurpose, or other status);
    (iv) Changes to the plant's multipurpose activities;
    (v) Changes to the plant site's status relating to domestic transfer 
of the chemical;
    (vi) Changes to the plant site's purposes for which the chemical 
will be produced, processed or consumed; or
    (vii) Changes to plant site's status relating to exports of the 
chemical or the addition of new countries for export (not to exceed 10 
countries).
    (b) Declaration forms to be used. If you are required to declare 
additionally planned activities pursuant to paragraph (a) of this part, 
you must complete the Certification Form and Forms 2-1, 2-2, 2-3, and 2-
3C as appropriate. Such forms are due to BIS at

[[Page 134]]

least 15 days prior to beginning the additional activity.



Sec.  713.6  Frequency and timing of declarations and reports.

    Declarations and reports required under this part must be postmarked 
by the appropriate date identified in Table 1 of this section. Required 
declarations and reports include:
    (a) Declaration on past production of Schedule 2 chemicals for 
chemical weapons (CW) purposes since January 1, 1946;
    (b) Initial declaration (production, processing, consumption, 
export, or import of Schedule 2 chemicals during calendar years 1994, 
1995, and 1996);
    (c) Initial report on exports and imports from trading companies, 
plant sites and other persons (during calendar year 1996);
    (d) Annual declaration on past activities (production, processing, 
consumption, export or import of Schedule 2 chemicals during the 
previous calendar year, beginning with 1997);
    (e) Annual report on exports and imports from trading companies, 
plant sites and other persons (during the previous calendar year, 
beginning with 1997); and
    (f) Annual declaration on anticipated activities (production, 
processing or consumption during the next calendar year, beginning in 
calendar year 2000 for activities anticipated for calendar year 2001).

     Table 1 to Sec.   713.6--Deadlines for Submission of Schedule 2
                              Declarations
------------------------------------------------------------------------
        Declarations            Applicable forms          Due dates
------------------------------------------------------------------------
Initial Declaration (for      Certification, 2-1,   March 30, 2000.
 calendar years 1994, 1995,    2-2, 2-3, 2-3A, 2-
 and 1996)--Declared plant     3B (if also
 site (production,             exported or
 processing, consumption,      imported), A (as
 exports and imports).         appropriate), B
                               (optional).
Initial Report on Exports     Certification, 2-1,   March 30, 2000.
 and Imports (for calendar     2-3B, A (as
 year 1996)--Plant site,       appropriate), B
 trading company, other        (optional).
 persons.
Annual Declaration on Past    Certification , 2-1,  For 1997, 1998, and
 Activities (previous          2-2, 2-3 2-3A, 2-3B   1999. Thereafter,
 calendar year, starting       (if also exported     February 28, March
 with 1997)--Declared plant    or imported), A (as   30, 2000.
 site (production,             appropriate), B
 processing, consumption,      (optional).
 exports and imports).
Annual Report on Exports and  Certification, 2-1,   For 1997, 1998, and
 Imports (previous calendar    2-3B, A (as           1999. Thereafter,
 year, starting with 1997)--   appropriate), B       February 28, March
 Plant site, trading           (optional).           30, 2000.
 company, other persons.
Annual Declaration on         Certification, 2-1,   September 3 of each
 Anticipated Activities        2-2, 2-3, 2-3A, 2-    year prior to the
 (next calendar year).         3C, A (as             calendar year in
                               appropriate), B       which anticipated
                               (optional).           activities will
                                                     take place,
                                                     beginning in
                                                     calendar year 2000.
Declaration on Additionally   Certification, 2-1,   15 calendar days
 Planned Activities--          2-3C, A (as           before the
 (production, processing and   appropriate), B       additionally
 consumption).                 (optional).           planned activity
                                                     begins.
Declaration on Past           Certification, 2-1,   March 30, 2000.
 Production of Schedule 2      2-2, 2-4 A (as
 Chemicals for CW Purposes.    appropriate), B
                               (optional).
------------------------------------------------------------------------



Sec.  713.7  Amended declaration or report.

    (a) You must submit an amended declaration or report for changes to 
previously submitted information on chemicals, activities and end-use 
purposes or the addition of new chemicals, activities and end-use 
purposes.
    (b) For declared plant sites subject to inspection, changes that may 
affect verification activities, such as changes of owner or operator, 
company name, address, or inspection point of contact require an amended 
declaration.
    (c) For declared plant sites not subject to inspection, undeclared 
plant sites, trading companies, and other persons, changes that do not 
directly affect the purpose of the Convention, such as changes to a 
company name, address, declaration point of contact, or non-substantive 
typographical errors, do not require submission of an amended 
declaration or report and may be corrected in subsequent declarations or 
reports.

[[Page 135]]

    (d) If you are required to submit an amended declaration or report 
pursuant to paragraph (a) or (b) of this section, you must complete and 
submit a new Certification Form and the specific form(s) being amended 
(e.g., annual declaration on past activities). Only complete that 
portion of each form that corrects the previously submitted information.

           Supplement No. 1 to Part 713--Schedule 2 Chemicals

A. Toxic chemicals:
    (1) Amiton: O,O-Diethyl S-[2-(diethylamino)ethyl]          (78-53-5)
     phosphorothiolate and corresponding alkylated or
     protonated salts.................................
    (2) PFIB: 1,1,3,3,3-Pentafluoro-2-                        (382-21-8)
     (trifluoromethyl)-1-propene......................
    (3) BZ: 3-Quinuclidinyl benzilate.................       (6581-06-2)
B. Precursors:
    (4) Chemicals, except for those listed in Schedule        (676-97-1)
     1, containing a phosphorus atom to which is
     bonded one methyl, ethyl or propyl (normal or
     iso) group but not further carbon atoms, e.g.
     Methylphosphonyl dichloride......................
    Dimethyl methylphosphonate........................        (756-79-6)
    Exemption: Fonofos: O-Ethyl S-phenyl                      (944-22-9)
     ethylphosphono-thiolothionate....................
    (5) N,N-Dialkyl (Me, Et, n-Pr or i-Pr)
     phosphoramidic dihalides
    (6) Dialkyl (Me, Et, n-Pr or i-Pr) N,N-dialkyl
     (Me, Et, n-Pr or i-Pr)-phosphoramidates
    (7) Arsenic trichloride...........................       (7784-34-1)
    (8) 2,2-Diphenyl-2-hydroxyacetic acid.............         (76-93-7)
    (9) Quinuclidine-3-ol.............................       (1619-34-7)
    (10) N,N-Dialkyl (Me, Et, n-Pr or i-Pr) aminoethyl-
     2-chlorides and corresponding protonated salts
    (11) N,N-Dialkyl (Me, Et, n-Pr or i-Pr)
     aminoethane-2-ols and corresponding protonated
     salts
    Exemptions: N,N-Dimethylaminoethanol and                  (108-01-0)
     corresponding protonated salts...................
    N,N-Diethylaminoethanol and corresponding                 (100-37-8)
     protonated salts.................................
    (12) N,N-Dialkyl (Me, Et, n-Pr or i-Pr)
     aminoethane-2-thiols and corresponding protonated
     salts
    (13) Thiodiglycol: Bis(2-hydroxyethyl) sulfide....        (111-48-8)
    (14) Pinacolyl alcohol: 3,3-Dimethylbutane-2-ol...        (464-07-3)
------------------------------------------------------------------------



PART 714_ACTIVITIES INVOLVING SCHEDULE 3 CHEMICALS--Table of Contents




Sec.
714.1 Declaration on past production of Schedule 3 chemicals for 
          chemical weapons purposes.
714.2 Initial and annual declaration requirements for plant sites that 
          produce a Schedule 3 chemical in excess of 30 metric tons.
714.3 Initial and annual reporting requirements for exports and imports 
          of Schedule 3 chemicals.
714.4 Advance declaration requirements for additionally planned 
          production of a Schedule 3 chemical.
714.5 Frequency and timing of declarations.
714.6 Amended declaration or report.

Supplement No. 1 to Part 714--Schedule 3 Chemicals

    Authority: 22 U.S.C. 6701 et seq.; E.O. 13128, 64 FR 36703.

    Source: 64 FR 73777, Dec. 30, 1999, unless otherwise noted.



Sec.  714.1  Declaration on past production of Schedule 3 chemicals for 
chemical weapons purposes.

    (a) See Sec.  711.6 of this subchapter for information on obtaining 
the forms you will need to declare and report activities involving 
Schedule 3 chemicals.
    (b) You must complete the Certification Form, Forms 3-1, 3-2, 3-4, 
Form A if you produced at one or more plants on your plant site any 
quantity of a Schedule 3 chemical at any time since January 1, 1946, for 
chemical weapons purposes. Form B is optional. You must declare the 
total quantity of such chemical produced, rounded to the nearest tenth 
of a metric ton (or 100 kilograms). You are not subject to routine 
inspection unless you are a declared facility pursuant to Sec.  714.2.



Sec.  714.2  Initial and annual declaration requirements for plant 
sites that produce a Schedule 3 chemical in excess of 30 metric tons.

    (a) Declaration of production of Schedule 3 chemicals for purposes 
not prohibited by the CWC. (1) Production quantities that trigger the 
declaration requirement. You must complete the appropriate forms 
specified in paragraph (b) of this section if you have produced or 
anticipate producing a Schedule 3 chemical as follows:

[[Page 136]]

    (i) Initial declaration. You produced at one or more plants on your 
plant site in excess of 30 metric tons of any single Schedule 3 chemical 
during calendar year 1996.
    (ii) Annual declaration on past activities. You produced at one or 
more plants on your plant site in excess of 30 metric tons of any single 
Schedule 3 chemical during the previous calendar year, beginning with 
1997.
    (iii) Annual declaration on anticipated activities. You anticipate 
that you will produce at one or more plants on your plant site in excess 
of 30 metric tons of any single Schedule 3 chemical in the next calendar 
year.
    (2) Mixtures containing a Schedule 3 chemical. (i) The quantity of a 
Schedule 3 chemical contained in a mixture must be counted for 
declaration purposes only if the concentration of the Schedule 3 
chemical in the mixture is 80% or more by volume or by weight, whichever 
yields the lesser percent.
    (ii) Counting the amount of the Schedule 3 chemical in a mixture. If 
your mixture contains 80% or more concentration of a Schedule 3 
chemical, you must count only the amount (weight) of the Schedule 3 
chemical in the mixture, not the total weight of the mixture.
    (b) Types of declaration forms to be used. (1) Initial declaration. 
You must complete the Certification Form and Forms 3-1, 3-2, 3-3, and 
Form A if you produced at one or more plants on your plant site in 
excess of 30 metric tons of any single Schedule 3 chemical during 
calendar year 1996. Form B is optional.
    (2) Annual declaration on past activities. You must complete the 
Certification Form and Forms 3-1, 3-2, 3-3, and Form A if one or more 
plants on your plant site produced in excess of 30 metric tons of any 
single Schedule 3 chemical during the previous calendar year, beginning 
with production during calendar year 1997. Form B is optional.
    (3) Annual declaration on anticipated activities. You must complete 
the Certification Form, and Forms 3-1 and 3-3 if you anticipate that you 
will produce at one or more plants on your plant site in excess of 30 
metric tons of any single Schedule 3 chemical in the next calendar year.
    (c) Quantities to be declared. (1) Production of a Schedule 3 
chemical in excess of 30 metric tons. If your plant site is subject to 
the declaration requirements of paragraph (a) of this section, you must 
declare the range within which the production at your plant site falls 
(30 to 200 metric tons, 200 to 1,000 metric tons, etc.) as specified on 
Form 3-3. When specifying the range of production for your plant site, 
you must aggregate the production quantities of all plants on the plant 
site that produced the Schedule 3 chemical in amounts greater than 30 
metric tons. You must complete a separate Form 3-3 for each Schedule 3 
chemical for which production at your plant site exceeds 30 metric tons.
    (2) Rounding. To determine the production range into which your 
plant site falls, add all the production of the declared Schedule 3 
chemical during the calendar year from all plants on your plant site 
that produced the Schedule 3 chemical in amounts exceeding 30 metric 
tons, and round to the nearest ten metric tons.
    (d) ``Declared'' Schedule 3 plant sites. A plant site that comprises 
at least one plant that produced in excess of 30 metric tons of a 
Schedule 3 chemical during the previous calendar year, or that you 
anticipate will produce more than 30 metric tons of a Schedule 3 
chemical in the next calendar year, is a ``declared'' Schedule 3 plant 
site. A plant site that submitted an initial declaration for 1996 and/or 
annual declaration on past activities for 1997 or 1998 is a ``declared'' 
Schedule 3 plant site for the years declared.
    (e) Routine inspections of declared Schedule 3 plant sites. A 
``declared'' Schedule 3 plant site is subject to routine inspection by 
the Organization for the Prohibition of Chemical Weapons (see part 716 
of this subchapter) if the declared plants on your plant site produced 
during the previous calendar year or you anticipate they will produce 
during the next calendar year in excess of 200 metric tons aggregate of 
any Schedule 3 chemical. A plant site that submitted an initial 
declaration for 1996 and/or an annual declaration on past activities for 
1997 or 1998, and exceeded the inspection threshold, is also subject to 
a routine inspection.

[[Page 137]]



Sec.  714.3  Initial and annual report requirements for exports and 
imports of Schedule 3 chemicals.

    (a) Any person subject to the CWCR that exported from or imported to 
the United States a Schedule 3 chemical in excess of 30 metric tons in 
any calendar year, beginning with calendar year 1996, has a reporting 
requirement under this section.
    (1) Initial report on exports and imports. Declared plant sites, 
undeclared plant sites, trading companies, and any other person subject 
to the CWCR that exported from or imported to the United States in 
excess of 30 metric tons of a Schedule 3 chemical in calendar year 1996 
must submit an initial report on exports and imports.
    (2) Annual report on exports and imports. Declared plant sites, 
undeclared plant sites, trading companies, and any other person subject 
to the CWCR that exported from or imported to the United States in 
excess of 30 metric tons of a Schedule 3 chemical in a previous calendar 
year, beginning with calendar year 1997, must submit an annual report on 
exports and imports.

    Note 1 to paragraphs (a)(1) and (a)(2).
    Declared and undeclared plant sites must count, for report purposes, 
all exports from and imports to the entire plant site, not only from or 
to individual plants on the plant site.
    Note 2 to paragraphs (a)(1) and (a)(2):
    The U.S. Government will not submit to the OPCW company-specific 
information relating to the export or import of Schedule 3 chemicals 
contained in reports. The U.S. Government will add all export and import 
information contained in reports to establish the U.S. national 
aggregate declaration on exports and imports.

    (3) Mixtures containing a Schedule 3 chemical. The quantity of a 
Schedule 3 chemical contained in a mixture must be counted for reporting 
an export or import only if the concentration of the Schedule 3 chemical 
in the mixture is 80% or more by volume or by weight, whichever yields 
the lesser percent. For reporting purposes, only count the weight of the 
Schedule 3 chemical in the mixture, not the entire weight of the 
mixture.

    Note to paragraph (a)(3).
    The ``80% and above'' mixtures rule applies only for report 
purposes. This rule does not apply for purposes of determining whether 
the export of your mixture to a non-State Party requires an End-Use 
Certificate or for determining whether you need an export license from 
the Department of Commerce (see Sec. Sec.  742.2, 742.18 and 745.2 of 
the Export Administration Regulations) or from the Department of State 
(see the International Traffic in Arms Regulations (22 C.F.R. 120 
through 130)).

    (b) Types of forms to be used. (1) Declared Schedule 3 plant sites. 
(i) If your plant site is declared for production of a Schedule 3 
chemical (and has completed questions 3-3.1 and 3-3.2 on Form 3-3) and 
you also exported or imported that same Schedule 3 chemical in excess of 
30 metric tons, you may report the export or import by:
    (A) Completing question 3-3.3 on Form 3-3 on your declaration for 
that same Schedule 3 chemical to be reported; or
    (B) Submitting, separately from your declaration, a Certification 
Form, Form 3-1, and a Form 3-3 for each Schedule 3 chemical to be 
reported, completing only question 3-3.3. Attach Form A, as appropriate; 
Form B is optional.
    (ii) If your plant site declared production of a Schedule 3 chemical 
and exported or imported a different Schedule 3 chemical in excess of 30 
metric tons, you may report the export or import by:
    (A) Submitting, along with your declaration, a Form 3-3 for each 
Schedule 3 chemical to be reported, completing only question 3-3.3. 
Attach Form A, as appropriate; Form B is optional; or
    (B) Submitting, separately from your declaration, a Certification 
Form, Form 3-1 and a Form 3.3 for each Schedule 3 chemical to be 
reported, completing only question 3-3.3. Attach Form A, as appropriate; 
Form B is optional.
    (2) If you are an undeclared plant site or trading company, or any 
other person subject to the CWCR, you must submit a Certification Form, 
Form 3-1, and a Form 3-3 for each Schedule 3 chemical to be reported, 
completing only question 3-3.3. Attach Form A, as appropriate; Form B is 
optional.
    (c) Quantities to be reported. (1) Calculations. If you exported 
from or imported to your plant site or trading company more than 30 
metric tons of a Schedule 3 chemical in the previous

[[Page 138]]

calendar year, you must report all exports and imports of that chemical 
by destination, and indicate the total amount exported to or imported 
from each destination. Only indicate the total annual quantity exported 
to or imported from a specific destination if the total annual quantity 
to or from that destination is more than 1% of the applicable threshold 
(i.e., more than 0.3 metric tons). However, in determining whether your 
total exports and imports worldwide for the year in question trigger a 
report requirement, you must include all exports and imports, including 
exports and imports falling within the 1% exemption in your calculation.
    (2) Rounding. For purposes of reporting exports and imports of a 
Schedule 3 chemical, you must total all exports and imports per calendar 
year per recipient or source destination and then round to the nearest 
0.1 metric tons.

    Note to Sec.  714.3: Under the Convention, the United States is 
obligated to provide the OPCW a national aggregate annual declaration of 
the quantities of each Schedule 3 chemical exported and imported. The 
U.S. Government will not submit your company-specific information 
relating to the export or import of a Schedule 3 chemical reported under 
this Sec.  714.3. The U.S. Government will add all export and import 
information submitted by various facilities under this section to 
produce a national aggregate annual declaration of destination-by-
destination trade for each Schedule 3 chemical.



Sec.  714.4  Advance declaration requirements for additionally planned 
production of Schedule 3 chemicals.

    (a) Declaration requirements. (1) You must declare additionally 
planned production of Schedule 3 chemicals after the annual declaration 
on anticipated activities for the next calendar year has been delivered 
to BIS if:
    (i) You plan that a previously undeclared plant on your plant site 
under Sec.  714.2(a)(1)(iii) will produce a Schedule 3 chemical above 
the declaration threshold;
    (ii) You plan to produce at a plant declared under Sec.  
714.2(a)(1)(iii) an additional Schedule 3 chemical above the declaration 
threshold;
    (iii) You plan to increase the production of a Schedule 3 chemical 
by declared plants on your plant site from the amount exceeding the 
applicable declaration threshold to an amount exceeding the applicable 
inspection threshold (see Sec.  716.1(b)(3)); or
    (iv) You plan to increase the aggregate production of a Schedule 3 
chemical at a declared plant site to an amount above the upper limit of 
the range previously declared under Sec.  714.2(a)(1)(iii).
    (2) If you must submit a declaration on additionally planned 
activities because you plan to engage in any of the activities listed in 
paragraphs (a)(1)(i) through (iv) of this section, you should also 
declare any changes to the anticipated purposes of production or product 
group codes. You do not have to submit a declaration on additionally 
planned activities if you are only changing your purposes of production 
or product group codes.
    (b) Declaration forms to be used. If you are required to declare 
additionally planned activities pursuant to paragraph (a) of this 
section, you must complete the Certification Form and Forms 3-1, 3-2, 
and 3-3 as appropriate. Such forms are due to BIS at least 15 days in 
advance of the beginning of the additional or new activity.



Sec.  714.5  Frequency and timing of declarations.

    Declarations and reports required under this part must be postmarked 
by the appropriate date identified in Table 1 of this section. Required 
declarations and reports include:
    (a) Declaration on past production of any amount of Schedule 3 
chemicals for chemical weapons (CW) purposes since January 1, 1946;
    (b) Initial declaration (production of Schedule 3 chemicals during 
calendar year 1996);
    (c) Initial report on exports and imports from trading companies, 
plant sites and other persons (during calendar year 1996);
    (d) Annual declaration on past activities (production of Schedule 3 
chemicals during the previous calendar year, beginning with 1997);
    (e) Annual report on exports and imports from trading companies, 
plant sites and other persons (during the previous calendar year, 
beginning with 1997); and

[[Page 139]]

    (f) Annual declaration on anticipated activities (production during 
the next calendar year, beginning in calendar year 2000 for activities 
anticipated for calendar year 2001).

     Table 1 to Sec.   714.5--Deadlines for Submission of Schedule 3
                              Declarations
------------------------------------------------------------------------
        Declarations            Applicable forms          Due dates
------------------------------------------------------------------------
Initial Declaration (for      Certification, 3-1,   March 30, 2000.
 calendar year 1996)--         3-2, 3-3 (if also
 Declared plant site           exported or
 (production).                 imported), A (as
                               appropriate), B
                               (optional).
Initial Report on Exports     Certification, 3-1,   March 30, 2000.
 and Imports (for calendar     3-3.3 and 3-3.4, A
 year 1996)--Plant site,       (as appropriate), B
 trading company, other        (optional).
 persons.
Annual Declaration on Past    Certification, 3-1,   For 1997, 1998, and
 Activities (previous          3-2, 3-3 (if also     1999, March 30,
 calendar year, starting       exported or           2000. Thereafter,
 with 1997)--Declared plant    imported), A (as      February 28.
 site (production).            appropriate), B
                               (optional).
Annual Report on Exports and  Certification, 3-1,   For 1997, 1998, and
 Imports (previous calendar    3-3.3 and 3-3.4, A    1999, March 30,
 year, starting with 1997)--   (as appropriate), B   2000. Thereafter,
 Plant site, trading           (optional).           February 28.
 company, other persons.
Annual Declaration on         Certification, 3-1,   September 3 of each
 Anticipated Activities        3-3.1 and 3-3.2, A    year prior to the
 (Production) (next calendar   (as appropriate), B   calendar year in
 year).                        (optional).           which anticipated
                                                     activities will
                                                     take place,
                                                     beginning in
                                                     calendar year 2000.
Declaration on Additionally   Certification, 3-1,   15 calendar days
 Planned Activities.           3-3.1 and 3-3.2, A    before the
                               (as appropriate), B   additionally
                               (optional).           planned activity
                                                     begins.
Declaration on Past           Certification, 3-1,   March 30, 2000.
 Production of Schedule 3      3-2, 3-4, A (as
 Chemicals for CW Purposes.    appropriate), B
                               (optional).
------------------------------------------------------------------------



Sec.  714.6  Amended declaration or report.

    (a) You must submit an amended declaration or report for changes to 
previously submitted information on chemicals, activities and end-use 
purposes or the addition of new chemicals, activities and end-use 
purposes.
    (b) For declared plant sites subject to inspection, changes that may 
affect verification activities, such as changes of owner or operator, 
company name, address, or inspection point of contact, require an 
amended declaration.
    (c) For declared plant sites not subject to inspection, undeclared 
plant sites, trading companies, and other persons, changes that do not 
directly affect the purpose of the Convention, such as changes to a 
company name, address, declaration point of contact, or non-substantive 
typographical errors, do not require submission of an amended 
declaration or report and may be corrected in subsequent declarations or 
reports.
    (d) If you are required to submit an amended declaration or report 
pursuant to paragraph (a) or (b) of this section, you must complete and 
submit a new Certification Form and the specific form(s) being amended 
(e.g., annual declaration on past activities). Only complete that 
portion of each form that corrects the previously submitted information.

           Supplement No. 1 to Part 714--Schedule 3 Chemicals

------------------------------------------------------------------------
 
------------------------------------------------------------------------
A. Toxic chemicals:
    (1) Phosgene: Carbonyl dichloride.................         (75-44-5)
    (2) Cyanogen chloride.............................        (506-77-4)
    (3) Hydrogen cyanide..............................         (74-90-8)
    (4) Chloropicrin: Trichloronitromethane...........         (76-06-2)
B. Precursors:
    (5) Phosphorus oxychloride........................      (10025-87-3)
    (6) Phosphorus trichloride........................       (7719-12-2)
    (7) Phosphorus pentachloride......................      (10026-13-8)
    (8) Trimethyl phosphite...........................        (121-45-9)
    (9) Triethyl phosphite............................        (122-52-1)
    (10) Dimethyl phosphite...........................        (868-85-9)
    (11) Diethyl phosphite............................        (762-04-9)

[[Page 140]]

 
    (12) Sulfur monochloride..........................      (10025-67-9)
    (13) Sulfur dichloride............................      (10545-99-0)
    (14) Thionyl chloride.............................       (7719-09-7)
    (15) Ethyldiethanolamine..........................        (139-87-7)
    (16) Methyldiethanolamine.........................        (105-59-9)
    (17) Triethanolamine..............................        (102-71-6)
------------------------------------------------------------------------
Note to Supplement No. 1: Refer to Supplement No. 1 to part 774 of the
  Export Administration Regulations (the Commerce Control List), ECCN
  1C355, Related Controls for chemicals controlled under the
  International Traffic in Arms Regulations (22 CFR parts 120 through
  130).



PART 715_ACTIVITIES INVOLVING UNSCHEDULED DISCRETE ORGANIC CHEMICALS 
(UDOCs)--Table of Contents




Sec.
715.1 Initial and annual declaration requirements for production by 
          synthesis of unscheduled discrete organic chemicals (UDOCs).
715.2 Frequency and timing of declarations.
715.3 Amended declaration.

Supplement No. 1 to Part 715--Definition of an Unscheduled Discrete 
          Organic Chemical
Supplement No. 2 to Part 715--Examples of Unscheduled Discrete Organic 
          Chemicals (UDOCs) and UDOC Production

    Authority: 22 U.S.C. 6701 et seq.; E.O. 13128, 64 FR 36703.

    Source: 64 FR 73780, Dec. 30, 1999, unless otherwise noted.



Sec.  715.1  Initial and annual declaration requirements for production 
by synthesis of unscheduled discrete organic chemicals (UDOCs).

    (a) See Sec.  711.6 of this subchapter for information on obtaining 
the forms you will need to declare production of unscheduled discrete 
organic chemicals. Declaration of production by synthesis of UDOCs for 
purposes not prohibited by the CWC. (1) Production quantities that 
trigger the declaration requirement. You must complete the forms 
specified in paragraph (b) of this section if your plant site produced 
by synthesis:
    (i) In excess of 200 metric tons aggregate of all UDOCs (including 
all UDOCs containing the elements phosphorus, sulfur or fluorine, 
referred to as ``PSF-chemicals'') in calendar year 1996 (for the initial 
declaration) or the previous calendar year beginning with 1997 (for an 
annual declaration); or
    (ii) In excess of 30 metric tons of an individual PSF-chemical at 
one or more plants in calendar year 1996 (for the initial declaration) 
or in the previous calendar year beginning with 1997 (for an annual 
declaration).
    (2) UDOCs subject to declaration requirements under this part. (i) 
UDOCs subject to declaration requirements under this part are those 
produced by synthesis that have been isolated for:
    (A) Use; or
    (B) Sale as a specific end product.
    (ii) Exemptions. (A) Polymers and oligomers consisting of two or 
more repeating units which are formed by the chemical reaction of 
monomeric or polymeric substances;
    (B) Chemicals and chemical mixtures produced through a biological or 
biomediated process;
    (C) Products from the refining of crude oil, including sulfur-
containing crude oil;
    (D) Metal carbides (i.e., chemicals consisting only of metal and 
carbon); and
    (E) UDOCs produced by synthesis that are ingredients or by-products 
in foods designed for consumption by humans and/or animals.

    Note to Paragraph (a)(2):
    See Supplement No. 2 to this part for examples of UDOCs subject to 
the declaration requirements of this part, and for examples of 
activities that are not considered production by synthesis.

    (3) Exemptions for UDOC plant sites. UDOC plant sites that 
exclusively produced hydrocarbons or explosives are exempt from UDOC 
declaration requirements. For the purposes of this part, the following 
definitions apply for hydrocarbons and explosives:
    (i) Hydrocarbon means any organic compound that contains only carbon 
and hydrogen; and
    (ii) Explosive means a chemical (or a mixture of chemicals) that is 
included in Class 1 of the United Nations Organization hazard 
classification system.
    (b) Types of declaration forms to be used. (1) Initial declaration. 
You must complete the Certification Form and

[[Page 141]]

Form UDOC (consisting of two pages). Attach Form A as appropriate; Form 
B is optional.
    (2) Annual declaration on past activities. You must complete the 
Certification Form and Form UDOC (consisting of two pages). Attach Form 
A as appropriate; Form B is optional.
    (c) ``Declared'' UDOC plant sites. A plant site that produced by 
synthesis in excess of 200 metric tons aggregate of all UDOCs (including 
all PSF-chemicals), or that comprises at least one plant that produced 
by synthesis in excess of 30 metric tons of an individual PSF-chemical 
during the previous year, is a ``declared'' UDOC plant site. A plant 
site that submitted an initial declaration for 1996 and/or annual 
declaration on past activities for 1997 or 1998 is a ``declared'' UDOC 
plant site for the years declared.
    (d) Routine inspections of declared UDOC plant sites. A ``declared'' 
UDOC plant site is subject to routine inspection by the Organization for 
the Prohibition of Chemical Weapons (see part 716 of this subchapter) if 
it produced by synthesis during the previous calendar year more than 200 
metric tons aggregate of UDOCs. A plant site that submitted an initial 
declaration for 1996 and/or annual declaration on past activities for 
1997 or 1998, and exceeded the inspection threshold, is also subject to 
a routine inspection.



Sec.  715.2  Frequency and timing of declarations.

    Declarations required under this part must be postmarked by the 
appropriate dates identified in Table 1 of this section. Required 
declarations include:
    (a) Initial declaration (production during calendar year 1996).
    (b) Annual declaration on past activities (production during the 
previous calendar year, beginning with 1997).

  Table 1 to Sec.   715.2--Deadlines for Submission of Declarations for
         Unscheduled Discrete Organic Chemical (UDOC) Facilities
------------------------------------------------------------------------
          Declarations             Applicable forms        Due dates
------------------------------------------------------------------------
Initial Declaration (calendar     Certification,      March 30, 2000.
 year 1996)--Declared plant site.  UDOC, A (as
                                   appropriate), B
                                   (optional).
Annual Declaration on Past        Certification,      For 1997, 1998,
 Activities (previous calendar     UDOC, A (as         and 1999 March
 year, starting with 1997)--       appropriate), B     30, 2000.
 Declared plant site.              (optional).         Thereafter,
                                                       February 28.
------------------------------------------------------------------------



Sec.  715.3  Amended declaration.

    (a) Amended declarations are required to correct certain 
inaccuracies in a previously submitted declaration. These amended 
declarations are necessary to change a production range above the amount 
originally declared, or the production of a PSF-chemical above 30 metric 
tons by a plant not previously counted as a PSF-plant.
    (b) Changes that do not directly affect the purpose of the 
Convention, such as changes to a company name, address, point of 
contact, or non-substantive typographical errors, do not require 
submission of an amended declaration and may be corrected in subsequent 
declarations.
    (c) If you are required to submit an amended declaration pursuant to 
paragraph (a) of this section, you must complete and submit a new 
Certification Form and the specific form(s) being amended (e.g., annual 
declaration on past activities). Only complete that portion of each form 
that amends the previously submitted information.

  Supplement No. 1 to Part 715--Definition of an Unscheduled Discrete 
                            Organic Chemical

    Unscheduled discrete organic chemical means any chemical: (1) 
belonging to the class of chemical compounds consisting of all compounds 
of carbon except for its oxides, sulfides and metal carbonates 
identifiable by chemical name, by structural formula, if known, and by 
Chemical Abstract Service registry number, if assigned; and (2) that is 
not contained in the Schedules of Chemicals (see Supplements No. 1 to 
parts 712 through 714 of this subchapter). Unscheduled discrete organic 
chemicals subject to declaration under this part are those produced by 
synthesis that are isolated for use or sale as a specific end-product.

    Note: Carbon oxides consist of chemical compounds that contain only 
the elements

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carbon and oxygen and have the chemical formula 
CxOy, where x and y denote integers. The two most 
common carbon oxides are carbon monoxide (CO) and carbon dioxide 
(CO2). Carbon sulfides consist of chemical compounds that 
contain only the elements carbon and sulfur, and have the chemical 
formula CaSb, where a and b denote integers. The 
most common carbon sulfide is carbon disulfide (CS2). Metal 
carbonates consist of chemical compounds that contain a metal (i.e., the 
Group I Alkalis, Groups II Alkaline Earths, the Transition Metals, or 
the elements aluminum, gallium, indium, thallium, tin, lead, bismuth or 
polonium), and the elements carbon and oxygen. Metal carbonates have the 
chemical formula Md(CO3)e, where d and 
e denote integers and M represents a metal. Common metal carbonates are 
sodium carbonate (Na2CO3) and calcium carbonate 
(CaCO3). In addition, metal carbides or other compounds 
consisting of only a metal, as described above, and carbon (e.g., 
calcium carbide (CaC2)), are exempt from declaration 
requirements (see Sec.  715.1(a)(2)(ii)(D) of this part).

 Supplement No. 2 to Part 715--Examples of Unscheduled Discrete Organic 
                  Chemicals (UDOCs) and UDOC Production

    (1) Examples of UDOCs not subject to declaration include:
    (i) UDOCs produced coincidentally as by-products that are not 
isolated for use or sale as a specific end product, and are routed to, 
or escape from, the waste stream of a stack, incinerator, or waste 
treatment system or any other waste stream;
    (ii) UDOCs, contained in mixtures, which are produced coincidentally 
and not isolated for use or sale as a specific end-product;
    (iii) UDOCs produced by recycling (i.e., involving one of the 
processes listed in paragraph (3) of this supplement) of previously 
declared UDOCs;
    (iv) UDOCs produced by the mixing (i.e., the process of combining or 
blending into one mass) of previously declared UDOCs; and
    (v) Intermediate UDOCs used in a single or multi-step process to 
produce another declared UDOC.
    (2) Examples of UDOCs that you must declare under part 715 include, 
but are not limited to, the following, unless they are not isolated for 
use or sale as a specific end product:
    (i) Acetophenone (CAS  98-86-2);
    (ii) 6-Chloro-2-methyl aniline (CAS  87-63-8);
    (iii) 2-Amino-3-hydroxybenzoic acid (CAS  548-93-6); and
    (iv) Acetone (CAS  67-64-1).
    (3) Examples of activities that are not considered production by 
synthesis under part 715 and, thus, the end products resulting from such 
activities would not be declared under part 715, are as follows:
    (i) Fermentation;
    (ii) Extraction;
    (iii) Purification;
    (iv) Distillation; and
    (v) Filtration.



PART 716_INITIAL AND ROUTINE INSPECTIONS OF DECLARED FACILITIES--Table of Contents




Sec.
716.1 General information on the conduct of initial and routine 
          inspections.
716.2 Purposes and types of inspections of declared facilities.
716.3 Consent to inspections; warrants for inspections.
716.4 Scope and conduct of inspections.
716.5 Notification, duration and frequency of inspections.
716.6 Facility agreements.
716.7 Samples.
716.8 On-site monitoring of Schedule 1 facilities.
716.9 Report of inspection-related costs.

Supplement No. 1 to Part 716--Notification, Duration, and Frequency of 
          Inspections
Supplement No. 2 to Part 716--Schedule 1 Model Facility Agreement
Supplement No. 3 to Part 716--Schedule 2 Model Facility Agreement

    Authority: 22 U.S.C. 6701 et seq.; E.O. 13128, 64 FR 36703.

    Source: 64 FR 73782, Dec. 30, 1999, unless otherwise noted.



Sec.  716.1  General information on the conduct of initial and routine 
inspections.

    This part provides general information about the conduct of initial 
and routine inspections of declared facilities subject to inspection 
under CWC Verification Annex Part VI (E), Part VII(B), Part VIII(B) and 
Part IX(B). See part 717 of this subchapter for provisions concerning 
challenge inspections.
    (a) Overview. Each State Party to the CWC, including the United 
States, has agreed to allow certain inspections of declared facilities 
by inspectors employed by the Organization for the Prohibition of 
Chemical Weapons (OPCW) to ensure that activities are consistent with 
obligations under the Convention.

[[Page 143]]

The Department of Commerce is responsible for leading, hosting and 
escorting inspections of all facilities subject to the provisions of 
this subchapter (see Sec.  710.2 of this subchapter).
    (b) Declared facilities subject to initial and routine inspections. 
(1) Schedule 1 facilities. (i) Your declared facility is subject to 
inspection if it produced in excess of 100 grams aggregate of Schedule 1 
chemicals in the previous calendar year or anticipates producing in 
excess of 100 grams aggregate of Schedule 1 chemicals during the next 
calendar year.
    (ii) If you are a new Schedule 1 production facility pursuant to 
Sec.  712.4 of this subchapter, your facility is subject to an initial 
inspection within 200 days of submitting an initial declaration.
    (iii) If your declared facility submitted an annual declaration on 
past activities for calendar year 1997 or 1998, you are subject to an 
initial inspection.

    Note to paragraph (b)(1):
    All Schedule 1 facilities submitting a declaration are subject to 
inspection.

    (2) Schedule 2 plant sites. (i) Your declared plant site is subject 
to inspection if at least one plant on your plant site produced, 
processed or consumed, in any of the three previous calendar years, or 
you anticipate that at least one plant on your plant site will produce, 
process or consume in the next calendar year, any Schedule 2 chemical in 
excess of the following:
    (A) 10 kg of chemical BZ: 3-Quinuclidinyl benzilate (see Schedule 2, 
Part A, paragraph 3 in Supplement No. 1 to part 713 of this subchapter);
    (B) 1 metric ton of chemical PFIB: 1,1,3,3,3-Pentafluoro-
2(trifluoromethyl)-1-propene or any chemical belonging to the Amiton 
family (see Schedule 2, Part A, paragraphs 1 and 2 in Supplement No. 1 
to part 713 of this subchapter); or
    (C) 10 metric tons of any chemical listed in Schedule 2, Part B (see 
Supplement No. 1 to part 713 of this subchapter).
    (ii) If your declared plant site submitted an initial declaration 
for calendar years 1994, 1995 and 1996, and at least one plant on your 
plant site produced a Schedule 2 chemical during any one of those three 
years in excess of the applicable inspection threshold quantity set 
forth in paragraphs (b)(2)(i)(A) through (C) of this section, you are 
subject to an initial inspection.

    Note to paragraph (b)(2):
    The applicable inspection threshold quantity for Schedule 2 plant 
sites is ten times higher than the applicable declaration threshold 
quantity. Only declared plant sites, comprising at least one declared 
plant that exceeds the applicable inspection threshold quantity, are 
subject to inspection.

    (3) Schedule 3 plant sites. (i) Your declared plant site is subject 
to inspection if the declared plants on your plant site produced during 
the previous calendar year, or you anticipate will produce in the next 
calendar year, in excess of 200 metric tons aggregate of any Schedule 3 
chemical (see Supplement No. 1 to part 714 of this subchapter).
    (ii) If your declared plant site submitted an initial declaration 
for calendar year 1996 and/or annual declaration on past activities for 
calendar year 1997 or 1998, and exceeded the inspection threshold set 
forth in paragraph (b)(3)(i) of this section, you are subject to a 
routine inspection.

    Note to paragraph (b)(3):
    The methodology for determining a declarable and inspectable plant 
site is different. A Schedule 3 plant site that submits a declaration is 
subject to inspection only if the aggregate production of a Schedule 3 
chemical at all declared plants on the plant site exceeds 200 metric 
tons.

    (4) Unscheduled discrete organic chemical plant sites. (i) Your 
declared plant site is subject to inspection if it produced by synthesis 
more than 200 metric tons aggregate of unscheduled discrete organic 
chemicals during the previous calendar year.
    (ii) If your declared plant site submitted an initial declaration 
for calendar year 1996 and/or annual declaration on past activities for 
calendar year 1997 or 1998, and exceeded the inspection threshold set 
forth in paragraph (b)(4)(i) of this section, you are subject to a 
routine inspection.

    Note 1 to paragraph (b)(4):
    You must include amounts of unscheduled discrete organic chemicals 
containing phosphorus, sulfur or fluorine in the calculation of your 
plant site's aggregate production of unscheduled discrete organic 
chemicals.

[[Page 144]]

    Note 2 to paragraph (b)(4):
    All UDOC plant sites that submit a declaration based on Sec.  
715.1(a)(i) of this subchapter are subject to a routine inspection.

    (c) Responsibilities of the Department of Commerce. As the host and 
escort for the international Inspection Team for all inspections of 
facilities subject to the provisions of this subchapter under this part, 
the Department of Commerce will: lead on-site inspections; provide Host 
Team notification to the facility of an impending inspection; take 
appropriate action to obtain an administrative warrant in the event the 
facility does not consent to the inspection; dispatch an advance team to 
the vicinity of the site to provide administrative and logistical 
support for the impending inspection and, upon request, to assist the 
facility with inspection preparation; escort the Inspection Team on-site 
throughout the inspection process; assist the Inspection Team with 
verification activities; negotiate the development of a site-specific 
facility agreement, if appropriate, during an initial inspection of a 
facility (see Sec.  716.6); and ensure that an inspection adheres to the 
Convention, the Act and any warrant issued thereunder, and a site-
specific facility agreement, if concluded.



Sec.  716.2  Purposes and types of inspections of declared facilities.

    (a) Schedule 1 facilities. (1) Purposes of inspections. The aim of 
inspections of Schedule 1 facilities is to verify that:
    (i) The facility is not used to produce any Schedule 1 chemical, 
except for the declared Schedule 1 chemicals;
    (ii) The quantities of Schedule 1 chemicals produced, processed or 
consumed are correctly declared and consistent with needs for the 
declared purpose; and
    (iii) The Schedule 1 chemical is not diverted or used for purposes 
other than those declared.
    (2) Types of inspections. (i) Initial inspections. During initial 
inspections of declared Schedule 1 facilities, in addition to the 
verification activities listed in paragraph (a)(1) of this section, the 
Host Team and the Inspection Team will draft site-specific facility 
agreements (see Sec.  716.6) for the conduct of routine inspections.
    (ii) Routine inspections. During routine inspections of declared 
Schedule 1 facilities, the verification activities listed in paragraph 
(a)(1) of this section will be carried out pursuant to site-specific 
facility agreements (Sec.  716.6) developed during the initial 
inspections and concluded between the U.S. Government and the OPCW 
pursuant to the Convention.
    (b) Schedule 2 plant sites. (1) Purposes of inspections. (i) The 
general aim of inspections of declared Schedule 2 plant sites is to 
verify that activities are in accordance with obligations under the 
Convention and consistent with the information provided in declarations. 
Particular aims of inspections of declared Schedule 2 plant sites are to 
verify:
    (A) The absence of any Schedule 1 chemical, especially its 
production, except if in accordance with the provisions of the 
Convention;
    (B) Consistency with declarations of levels of production, 
processing or consumption of Schedule 2 chemicals; and
    (C) That Schedule 2 chemicals are not diverted to activities 
prohibited under the Convention.
    (ii) During initial inspections, inspectors shall collect 
information to determine the frequency and intensity of subsequent 
inspections by assessing the risk to the object and purpose of the 
Convention posed by the relevant chemicals, the characteristics of the 
plant site and the nature of the activities carried out there. The 
inspectors will take the following criteria into account, inter alia:
    (A) The toxicity of the scheduled chemicals and of the end-products 
produced with them, if any;
    (B) The quantity of the scheduled chemicals typically stored at the 
inspected site;
    (C) The quantity of feedstock chemicals for the scheduled chemicals 
typically stored at the inspected site;
    (D) The production capacity of the Schedule 2 plants; and
    (E) The capability and convertibility for initiating production, 
storage and filling of toxic chemicals at the inspected site.
    (2) Types of inspections. (i) Initial inspections. During initial 
inspections of

[[Page 145]]

declared Schedule 2 plant sites, in addition to the verification 
activities listed in paragraph (b)(1) of this section, the Host Team and 
the Inspection Team will generally draft site-specific facility 
agreements for the conduct of routine inspections (see Sec.  716.6).
    (ii) Routine inspections. During routine inspections of declared 
Schedule 2 plant sites, the verification activities listed in paragraph 
(b)(1) of this section will be carried out pursuant to any appropriate 
site-specific facility agreements developed during the initial 
inspections (see Sec.  716.6), and concluded between the U.S. Government 
and the OPCW pursuant to the Convention and the Act.
    (c) Schedule 3 plant sites. (1) Purposes of inspections. The general 
aim of inspections of declared Schedule 3 plant sites is to verify that 
activities are consistent with the information provided in declarations. 
The particular aim of inspections is to verify the absence of any 
Schedule 1 chemical, especially its production, except in accordance 
with the Convention.
    (2) Routine inspections. During routine inspections of declared 
Schedule 3 plant sites, in addition to the verification activities 
listed in paragraph (c)(1) of this section, the Host Team and the 
Inspection Team may draft site-specific facility agreements for the 
conduct of subsequent routine inspections (see Sec.  716.6). Although 
the Convention does not require facility agreements for declared 
Schedule 3 plant sites, the owner, operator, occupant or agent in charge 
of a plant site may request one. The Host Team will not seek a facility 
agreement if the owner, operator, occupant or agent in charge of the 
plant site does not request one. Subsequent routine inspections will be 
carried out pursuant to site-specific facility agreements, if 
applicable.
    (d) Unscheduled Discrete Organic Chemicals plant sites. Declared 
unscheduled discrete organic chemical (UDOC) plant sites will be subject 
to inspection beginning April 29, 2000.
    (1) Purposes of inspections. The general aim of inspections of 
declared UDOC plant sites is to verify that activities are consistent 
with the information provided in declarations. The particular aim of 
inspections is to verify the absence of any Schedule 1 chemical, 
especially its production, except in accordance with the Convention.
    (2) Routine inspections. During routine inspections of declared UDOC 
plant sites, in addition to the verification activities listed in 
paragraph (d)(1) of this section, the Host Team and the Inspection Team 
may develop draft site-specific facility agreements for the conduct of 
subsequent routine inspections (see Sec.  716.6). Although the 
Convention does not require facility agreements for declared UDOC plant 
sites, the owner, operator, occupant or agent in charge of a plant site 
may request one. The Host Team will not seek a facility agreement if the 
owner, operator, occupant or agent in charge of the plant site does not 
request one. Subsequent routine inspections will be carried out pursuant 
to site-specific facility agreements, if applicable.



Sec.  716.3  Consent to inspections; warrants for inspections.

    (a) The owner, operator, occupant or agent in charge of a facility 
may consent to an initial or routine inspection. The individual giving 
consent on behalf of the facility represents that he or she has the 
authority to make this decision for the facility.
    (b) In instances where consent is not provided by the owner, 
operator, occupant or agent in charge for an initial or routine 
inspection, the Department of Commerce intends to seek administrative 
warrants as provided by the Act.



Sec.  716.4  Scope and conduct of inspections.

    (a) General. Each inspection shall be limited to the purposes 
described in Sec.  716.2 and shall be conducted in the least intrusive 
manner, consistent with the effective and timely accomplishment of its 
purpose as provided in the Convention.
    (b) Scope. (1) Description of inspections. During inspections, 
inspectors will receive a pre-inspection briefing from facility 
representatives; visually inspect the facilities or plants producing 
scheduled chemicals or UDOCs, which may include storage areas, feed 
lines, reaction vessels and ancillary

[[Page 146]]

equipment, control equipment, associated laboratories, first aid or 
medical sections, and waste and effluent handling areas, as necessary to 
accomplish their inspection; examine relevant records; and may take 
samples as provided by the Convention, the Act and consistent with the 
requirements set forth by the Director of the United States National 
Authority (USNA) at 22 CFR part 103, and the facility agreement, if 
applicable.
    (2) Scope of consent. When an owner, operator, occupant, or agent in 
charge of a facility consents to an initial or routine inspection, he or 
she is consenting to provide access to the Inspection Team and Host Team 
to any area of the facility, any item located on the facility, 
interviews with facility personnel, and any records necessary for the 
Inspection Team to complete its mission. When consent is granted for an 
inspection, the owner, operator, occupant, or agent in charge agrees to 
provide the same degree of access provided for under section 305 of the 
Act. The determination of whether the Inspection Team's request to 
inspect any area, building, item or record is reasonable is the 
responsibility of the Host Team Leader.
    (c) Pre-inspection briefing. Upon arrival at the inspection site and 
before commencement of the inspection, facility representatives will 
provide to the Inspection Team and Host Team a pre-inspection briefing 
on the facility, the activities carried out there, safety measures, and 
administrative and logistical arrangements necessary for the inspection, 
which may be aided with the use of maps and other documentation as 
deemed appropriate by the facility. The time spent for the briefing will 
be limited to the minimum necessary and may not exceed three hours.
    (1) The pre-inspection briefing will address:
    (i) Plant site safety and alarms;
    (ii) Activities, business and manufacturing operations;
    (iii) Physical layout;
    (iv) Delimitation of declared facility;
    (v) Scheduled chemicals/chemistries (declared and undeclared);
    (vi) Process flow;
    (vii) Units specific to declared operations; and
    (viii) Administrative and logistic information.
    (2) The pre-inspection briefing may also address, inter alia:
    (i) Introduction of key facility personnel;
    (ii) Management, organization and history;
    (iii) Confidential business information concerns;
    (iv) Types and location of records/documents;
    (v) Data declaration updates/revisions;
    (vi) Draft facility agreement, if applicable; and
    (vii) Proposed inspection plan.
    (d) Visual plant inspection. The Inspection Team may visually 
inspect the declared plant or facility and other areas of the plant site 
or facility as agreed by the Host Team Leader after consulting with the 
facility representative.
    (e) Records review. The facility must have available for the 
Inspection Team to review, on the inspection site, access to all 
supporting materials and documentation used by the facility to prepare 
declarations and to comply with the CWCR (see Sec. Sec.  721.1 and 721.2 
of this subchapter). Such access may be to paper copies or via 
electronic remote access by computer during the inspection period or as 
otherwise agreed upon by the Inspection Team and Host Team Leader.
    (f) Effect of facility agreements. Routine inspections at facilities 
for which the United States has concluded a facility agreement with the 
OPCW will be conducted in accordance with the facility agreement. The 
existence of a facility agreement does not in any way limit the right of 
the owner, operator, occupant, or agent in charge of the facility to 
withhold consent to an inspection request.
    (g) Hours of inspections. Consistent with the provisions of the 
Convention, the Host Team will ensure, to the extent possible, that each 
inspection is commenced, conducted, and concluded during ordinary 
working hours, but no

[[Page 147]]

inspection shall be prohibited or otherwise disrupted from commencing, 
continuing or concluding during other hours.
    (h) Health and safety regulations and requirements. In carrying out 
their activities, the Inspection Team and Host Team shall observe 
federal, state, and local health and safety regulations and health and 
safety requirements established at the inspection site, including those 
for the protection of controlled environments within a facility and for 
personal safety. Such health and safety regulations and requirements 
will be set forth in, but will not necessarily be limited to, the 
facility agreement, if applicable.
    (i) Preliminary factual findings. Upon completion of an inspection, 
the Inspection Team will meet with the Host Team and facility personnel 
to review the written preliminary findings of the Inspection Team and to 
clarify ambiguities. The Host Team will discuss the preliminary findings 
with the facility, and the Host Team Leader will take into consideration 
the facility's input when providing official comment on the preliminary 
findings to the Inspection Team. This meeting will be completed not 
later than 24 hours after the completion of the inspection.



Sec.  716.5  Notification, duration and frequency of inspections.

    (a) Notification. (1)(i) Content of notice. Inspections of 
facilities may be made only upon issuance of written notice by the 
United States National Authority (USNA) to the owner and to the 
operator, occupant or agent in charge of the premises to be inspected. 
The Department of Commerce will also provide a separate Host Team 
notification to the inspection point of contact identified in 
declarations submitted by the facility. If the United States is unable 
to provide actual written notice to the owner, operator, or agent in 
charge, the Department of Commerce, or if the Department of Commerce is 
unable, the Federal Bureau of Investigation, may post notice prominently 
at the facility to be inspected. The notice shall include all 
appropriate information provided by the OPCW to the USNA concerning:
    (A) The type of inspection;
    (B) The basis for the selection of the facility or location for the 
type of inspection sought;
    (C) The time and date that the inspection will begin and the period 
covered by the inspection; and
    (D) The names and titles of the inspectors.
    (ii) In addition to appropriate information provided by the OPCW in 
its notification to the USNA, the Department of Commerce's Host Team 
notification will request that the facility indicate whether it will 
consent to an inspection, and will state whether an advance team is 
available to assist the site in preparation for the inspection. If an 
advance team is available, facilities that request advance team 
assistance are not required to reimburse the U.S. Government for costs 
associated with these activities. If a facility does not agree to 
provide consent to an inspection within four hours of receipt of the 
Host Team notification, BIS intends to seek an administrative warrant.
    (iii) The following table sets forth the notification procedures for 
inspection:

                       Table to Sec.   716.5(a)(1)
------------------------------------------------------------------------
           Activity                  Agency action       Facility action
------------------------------------------------------------------------
(A) OPCW notification of        (1) U.S. National       (i)Acknowledge
 inspection.                     Authority transmits     receipt of fax.
                                 actual written notice
                                 and inspection
                                 authorization to the
                                 owner and operator,
                                 occupant, or agent in
                                 charge via facsimile
                                 within 6 hours.
                                (2) Upon notification   (i) Indicates
                                 from the U.S.           whether it
                                 National Authority,     grants consent.
                                 BIS immediately        (ii) May request
                                 transmits Host Team     advance team
                                 notification via        support. No
                                 facsimile to the        requirement for
                                 inspection point of     reimbursement
                                 contact to ascertain    of U.S.
                                 whether the facility    Government's
                                 (1) grants consent      services.
                                 and (2) requests
                                 assistance in
                                 preparing for the
                                 inspection. In
                                 absence of consent
                                 within four hours of
                                 transmission, BIS
                                 intends to seek an
                                 administrative
                                 warrant.

[[Page 148]]

 
(B) Preparation for inspection  (1) BIS advance team    (i) If advance
                                 arrives in the          team support is
                                 vicinity of the         provided,
                                 facility to be          facility works
                                 inspected 1-2 days      with the
                                 after OPCW              advance team on
                                 notification for        inspection-
                                 logistical and          related issues.
                                 administrative
                                 preparations.
------------------------------------------------------------------------

    (2) Timing of notice. (i) Schedule 1 facilities. For declared 
Schedule 1 facilities, the Technical Secretariat will notify the USNA of 
an initial inspection not less than 72 hours prior to arrival of the 
inspection team in the United States, and will notify the USNA of a 
routine inspection not less than 24 hours prior to arrival of the 
Inspection Team in the United States. The USNA will provide written 
notice to the owner and to the operator, occupant or agent in charge of 
the premises within six hours of receiving notification from the OPCW 
Technical Secretariat or as soon as possible thereafter. The Department 
of Commerce will provide Host Team notice to the inspection point of 
contact of the facility as soon as possible after the OPCW notifies the 
USNA of the inspection.
    (ii) Schedule 2 plant sites. For declared Schedule 2 plant sites, 
the Technical Secretariat will notify the USNA of an initial or routine 
inspection not less than 48 hours prior to arrival of the Inspection 
Team at the plant site to be inspected. The USNA will provide written 
notice to the owner and to the operator, occupant or agent in charge of 
the premises within six hours of receiving notification from the OPCW 
Technical Secretariat or as soon as possible thereafter. The Department 
of Commerce will provide Host Team notice to the inspection point of 
contact at the plant site as soon as possible after the OPCW notifies 
the USNA of the inspection.
    (iii) Schedule 3 and unscheduled discrete organic chemical plant 
sites. For declared Schedule 3 and unscheduled discrete organic chemical 
plant sites, the Technical Secretariat will notify the USNA of an 
initial or routine inspection not less than 120 hours prior to arrival 
of the Inspection Team at the plant site to be inspected. The USNA will 
provide written notice to the owner and to the operator, occupant or 
agent in charge of the premises within six hours of receiving 
notification from the OPCW Technical Secretariat or as soon as possible 
thereafter. The Department of Commerce will provide Host Team notice to 
the inspection point of contact of the plant site as soon as possible 
after the OPCW notifies the USNA of the inspection.
    (b) Period of inspections. (1) Schedule 1 facilities. For a declared 
Schedule 1 facility, the Convention does not specify a maximum duration 
for an initial inspection. The estimated period of routine inspections 
will be as stated in the facility agreement, unless extended by 
agreement between the Inspection Team and the Host Team Leader. The Host 
Team Leader will consult with the inspected facility on any request for 
extension of an inspection prior to making an agreement with the 
Inspection Team. Activities involving the pre-inspection briefing and 
preliminary findings are in addition to inspection activities. See Sec.  
716.4 (c) and (i) for a description of these activities.
    (2) Schedule 2 plant sites. For declared Schedule 2 plant sites, the 
maximum duration of initial and routine inspections shall be 96 hours, 
unless extended by agreement between the Inspection Team and the Host 
Team Leader. The Host Team Leader will consult with the inspected plant 
site on any request for extension of an inspection prior to making an 
agreement with the Inspection Team. Activities involving the pre-
inspection briefing and preliminary findings are in addition to 
inspection activities. See Sec.  716.4 (c) and (i) for a description of 
these activities.
    (3) Schedule 3 and discrete organic chemical plant sites. For 
declared Schedule 3 or unscheduled discrete organic chemical plant 
sites, the maximum duration of initial and routine inspections shall be 
24 hours, unless extended by agreement between the Inspection Team and 
the Host Team Leader. The

[[Page 149]]

Host Team Leader will consult with the inspected plant site on any 
request for extension of an inspection prior to making an agreement with 
the Inspection Team. Activities involving the pre-inspection briefing 
and preliminary findings are in addition to inspection activities. See 
Sec.  716.4 (c) and (i) for a description of these activities.
    (c) Frequency of inspections. The frequency of inspections is as 
follows:
    (1) Schedule 1 facilities. As provided by the Convention, the 
frequency of inspections at declared Schedule 1 facilities is determined 
by the OPCW based on the risk to the object and purpose of the 
Convention posed by the quantities of chemicals produced, the 
characteristics of the facility and the nature of the activities carried 
out at the facility. The frequency of inspections will be stated in the 
facility agreement.
    (2) Schedule 2 plant sites. As provided by the Convention and the 
Act, the maximum number of inspections at declared Schedule 2 plant 
sites is 2 per calendar year per plant site. The OPCW will determine the 
frequency of routine inspections for each declared Schedule 2 plant site 
based on the inspectors' assessment of the risk to the object and 
purpose of the Convention posed by the relevant chemicals, the 
characteristics of the plant site, and the nature of the activities 
carried out there. The frequency of inspections will be stated in the 
facility agreement, if applicable.
    (3) Schedule 3 plant sites. As provided by the Convention, no 
declared Schedule 3 plant site may receive more than two inspections per 
calendar year and the combined number of inspections of Schedule 3 and 
unscheduled discrete organic chemical plant sites in the United States 
may not exceed 20 per calendar year.
    (4) Unscheduled Discrete Organic Chemical plant sites. As provided 
by the Convention, no declared UDOC plant site may receive more than two 
inspections per calendar year and the combined number of inspections of 
Schedule 3 and unscheduled discrete organic chemical plant sites in the 
United States may not exceed 20 per calendar year.



Sec.  716.6  Facility agreements.

    (a) Description and requirements. A facility agreement is a site-
specific agreement between the U.S. Government and the OPCW. Its purpose 
is to define procedures for inspections of a specific declared facility 
that is subject to inspection because of the type or amount of chemicals 
it produces, processes or consumes.
    (1) Schedule 1 facilities. The Convention requires that facility 
agreements be concluded between the United States and the OPCW for all 
declared Schedule 1 facilities.
    (2) Schedule 2 plant sites. The USNA will ensure that such facility 
agreements are concluded with the OPCW unless the owner, operator, 
occupant or agent in charge of the plant site and the OPCW Technical 
Secretariat agree that such a facility agreement is not necessary.
    (3) Schedule 3 and unscheduled discrete organic chemical plant 
sites. If the owner, operator, occupant or agent in charge of a declared 
Schedule 3 or unscheduled discrete organic chemical plant site requests 
a facility agreement, the USNA will ensure that a facility agreement for 
such a plant site is concluded with the OPCW.
    (b) Notification; negotiation of draft and final facility 
agreements; and conclusion of facility agreements. Prior to the 
development of a facility agreement, the Department of Commerce shall 
notify the owner, operator, occupant, or agent in charge of the 
facility, and if the owner, operator, occupant or agent in charge so 
requests, the notified person may participate in preparations with 
Department of Commerce representatives for the negotiation of such an 
agreement. During the initial inspection of a declared facility, the 
Inspection Team and the Host Team will negotiate a draft facility 
agreement. To the maximum extent practicable consistent with the 
Convention, the owner and the operator, occupant or agent in charge of 
the facility may observe facility agreement negotiations between the 
U.S. Government and OPCW. As a general rule, BIS will consult with the 
affected facility on the contents of the agreements and take facility 
comments into consideration during negotiations. The Department

[[Page 150]]

of Commerce will participate in the negotiation of, and approve, all 
final facility agreements with the OPCW. Facilities will be notified of 
and have the right to observe final facility agreement negotiations 
between the United States and OPCW to the maximum extent practicable, 
consistent with the Convention. Prior to the conclusion of a final 
facility agreement, the affected facility will have an opportunity to 
comment on the facility agreement. BIS will give consideration to such 
comments prior to approving final facility agreements with the OPCW. The 
United States National Authority shall ensure that facility agreements 
for Schedule 1, Schedule 2, Schedule 3 and unscheduled discrete organic 
chemical facilities are concluded, as appropriate, with the OPCW in 
coordination with the Department of Commerce.
    (c) Format and content. Schedule 1 and Schedule 2 model facility 
agreements are included in Supplement No. 2 and Supplement No. 3 to this 
part. These model facility agreements implement the general provisions 
of the Convention pertaining to inspections, including health and safety 
procedures, confidentiality of information, media and public relations, 
information about the facility, inspection equipment, pre-inspection 
activities, conduct of the inspection (including access to and 
inspection of areas, buildings and structures, access to and inspection 
of records and documentation, arrangements for interviews of facility 
personnel, photographs, sampling, and measurements), and logistical 
arrangements for the inspectors, such as communications and lodging. 
Attachments to the facility agreements will provide site-specific 
information such as working hours, special safety and health procedures, 
as well as site-specific agreements as to documents and records to be 
provided, specific areas of a facility to be inspected, site diagrams, 
sampling, photography, interview procedures, use of inspection 
equipment, procedures for protection of confidential business 
information, and administrative arrangements.
    (d) Further information. For further information about facility 
agreements, please write or call: Inspection Management Team, Bureau of 
Industry and Security, U.S. Department of Commerce, 14th Street and 
Pennsylvania Avenue, N.W., Room 6087B, Washington, D.C. 20230-0001, 
Telephone: (202) 482-6114.



Sec.  716.7  Samples.

    The owner, operator, occupant or agent in charge of a facility must 
provide a sample as provided for in the Convention and consistent with 
requirements set forth by the Director of the United States National 
Authority in 22 CFR part 103.



Sec.  716.8  On-site monitoring of Schedule 1 facilities.

    Declared Schedule 1 facilities are subject to verification by 
monitoring with on-site instruments as provided by the Convention. For 
facilities subject to the CWCR, however, such monitoring is not 
anticipated. The U.S. Government will ensure that any monitoring that 
may be requested by the OPCW is carried out pursuant to the Convention 
and U.S. law.



Sec.  716.9  Report of inspection-related costs.

    Pursuant to section 309(b)(5) of the Act, any facility that has 
undergone any inspections pursuant to this subchapter during a given 
calendar year must report to BIS within 90 days of an inspection on its 
total costs related to that inspection. Although not required, such 
reports should identify categories of costs separately if possible, such 
as personnel costs (production-line, administrative, legal), costs of 
producing records, and costs associated with shutting down chemical 
production or processing during inspections, if applicable. This 
information should be reported to BIS on company letterhead at the 
address given in Sec.  716.6(d), with the following notation: ``Attn: 
Report of inspection-related costs.''

[[Page 151]]

 Supplement No. 1 to Part 716--Notification, Duration and Frequency of 
                               Inspections

----------------------------------------------------------------------------------------------------------------
                                                                                                  Unscheduled
                                      Schedule 1          Schedule 2          Schedule 3       discrete organic
                                                                                                   chemicals
----------------------------------------------------------------------------------------------------------------
Notice of initial or routine      24 hours prior to   48 hours prior to   120 hours prior to  120 hours prior to
 inspection to USNA.               arrival at the      arrival at the      arrival at the      arrival at the
                                   point of entry.     plant site.         plant site.         plant site.
Duration of inspection..........  As specified in     96 hours..........  24 hours..........  24 hours.
                                   facility
                                   agreement.
Maximum number of inspections...  Determined by OPCW  2 per calendar      2 per calendar      2 per calendar
                                   based on            year per plant      year per plant      year per plant
                                   characteristics     site.               site.               site.
                                   of facility and
                                   the nature of the
                                   activities
                                   carried out at
                                   the facility.
                                 ---------------------
Notification of challenge               12 hours prior to arrival of inspection team at the point of entry.
 inspection to USNA*.
                                 ---------------------
Duration of Challenge                                                84 hours.
 inspection*.
----------------------------------------------------------------------------------------------------------------
*See part 717 of this subchapter.

    Supplement No. 2 to Part 716--Schedule 1 Model Facility Agreement

    Draft Model Agreement specifying the general form and content for 
facility agreements to be concluded pursuant to Verification Annex, Part 
VI, paragraph 31 (other facilities).
    Facility Agreement between the Organization for the Prohibition of 
Chemical Weapons and the Government of the United States of America 
Regarding On-site Inspections at the ------ Facility Located at the ----
------.
    The Organization for the Prohibition of Chemical Weapons, 
hereinafter referred to as ``Organization'', and the Government of the 
United States of America, hereinafter referred to as ``inspected State 
Party'', both constituting the Parties to this Agreement, have agreed on 
the following arrangements in relation to the conduct of inspections 
pursuant to paragraph 3 of Article VI of the Convention on the 
Prohibition of the Development, Production, Stockpiling and Use of 
Chemical Weapons and on Their Destruction, hereinafter referred to as 
``Convention'', at ------ (insert name of the facility, its precise 
location, including the address), declared under paragraphs 7 and 8 of 
Article VI, hereinafter referred to as ``facility''.

                      Section 1. General Provisions

    1. The purpose of this Agreement is to facilitate the implementation 
of the provisions of the Convention in relation to inspections conducted 
at the facility pursuant to paragraph 3 of Article VI of the Convention 
and in accordance with the obligations of the inspected State Party and 
the Organization under the Convention.
    2. Nothing in this Agreement shall be applied or interpreted in a 
way that is contradictory to the provisions of the Convention, including 
paragraph 1 of Article VII.1 In case of inconsistency between 
this Agreement and the Convention, the Convention shall prevail.
---------------------------------------------------------------------------

    \1\ Each State Party shall, in accordance with its constitutional 
processes, adopt the necessary measures to implement its obligations 
under this Convention.
---------------------------------------------------------------------------

    3. The Parties have agreed to apply for planning purposes the 
general factors contained in Attachment 1.
    4. The frequency and intensity of inspections at the facility are 
given in Part B of Attachment 1 and reflect the risk assessment of the 
Organization conducted pursuant to paragraphs 23 or 30 of Part VI of the 
Verification Annex, whichever applies.
    5. The inspection team shall consist of no more than ---- persons.
    6. The language for communication between the inspection team and 
the inspected State Party during inspections shall be English.
    7. In case of any development due to circumstances brought about by 
unforeseen events or acts of nature, which could affect inspection 
activities at the facility, the inspected State Party shall notify the 
Organization and the inspection team as soon as practically possible.
    8. In case of need for the urgent departure, emergency evacuation or 
urgent travel of inspector(s) from the territory of the inspected State 
Party, the inspection team leader shall inform the inspected State Party 
of such a need. The inspected State Party shall arrange without undue 
delay such departure, evacuation or travel. In all cases, the inspected 
State Party shall determine the means of transportation and routes to be

[[Page 152]]

taken. The costs of such departure, evacuation or travel of inspectors 
shall be borne by the Organization.
    9. Inspectors shall wear identification badges at all times when on 
the premises of the facility.

                      Section 2. Health and Safety

    1. Health and safety matters during inspections are governed by the 
Convention, the Organization's Health and Safety Policy and Regulations, 
and applicable national, local and facility safety and environmental 
regulations. The specific arrangements for implementing the relevant 
provisions of the Convention and the Organization's Health and Safety 
Policy in relation to inspections at the facility are contained in 
Attachment 2.
    2. Pursuant to paragraph 1 of this section, all applicable health 
and safety regulations relevant to the conduct of the inspection at the 
facility are listed in Attachment 2 and shall be made available for use 
by the inspection team at the facility.
    3. In case of the need to modify any health-and safety-related 
arrangements at the facility contained in Attachment 2 to this Agreement 
bearing on the conduct of inspections, the inspected State Party shall 
notify the Organization. Any such modification shall apply provisionally 
until the inspected State Party and the Organization have reached 
agreement on this issue. In case no agreement has been reached by the 
time of the completion of the inspection, the relevant information may 
be included in the preliminary factual findings. Any agreed modification 
shall be recorded in Attachment 2 to this Agreement in accordance with 
paragraph 2 of Section 13 of this Agreement.
    4. In the course of the pre-inspection briefing the inspection team 
shall be briefed by the representatives of the facility on all health 
and safety matters which, in the view of those representatives, are 
relevant to the conduct of the inspection at the facility, including:
    (a) The health and safety measures at the Schedule 1 facilities to 
be inspected and the likely risks that may be encountered during the 
inspection;
    (b) Any additional health and safety measures or regulations that 
need to be observed at the facility;
    (c) Procedures to be followed in case of an accident or in case of 
other emergencies, including a briefing on emergency signals, routes and 
exits, and the location of emergency meeting points and medical 
facilities; and
    (d) Specific inspection activities which must be limited within 
particular areas at the facility, and in particular within those 
Schedule 1 facilities to be inspected under the inspection mandate, for 
reasons of health and safety.
    Upon request, the inspection team shall certify receipt of any such 
information if it is provided in written form.
    5. During the course of an inspection, the inspection team shall 
refrain from any action which by its nature could endanger the safety of 
the team, the facility, or its personnel or could cause harm to the 
environment. Should the inspected State Party refuse certain inspection 
activities, it may explain the circumstances and safety considerations 
involved, and shall provide alternative means for accomplishing the 
inspection activities.
    6. In the case of emergency situations or accidents involving 
inspection team members while at the facility, the inspection team shall 
comply with the facility's emergency procedures and the inspected State 
Party shall to the extent possible provide medical and other assistance 
in a timely and effective manner with due regard to the rules of medical 
ethics if medical assistance is requested. Information on medical 
services and facilities to be used for this purpose is contained in Part 
D of Attachment 2. If the Organization undertakes other measures for 
medical support in regard to inspection team members involved in 
emergency situations or accidents, the inspected State Party will render 
assistance to such measures to the extent possible. The Organization 
will be responsible for the consequences of such measures.
    7. The inspected State party shall, to the extent possible, assist 
the Organization in carrying out any inquiry into an accident or 
incident involving a member of the inspection team.
    8. If, for health and safety reasons given by the inspected State 
Party, health and safety equipment of the inspected State Party is 
required to be used by the inspection team, the cost so incurred shall 
be borne by the inspected State Party.
    9. The inspection team may use its own approved health and safety 
equipment. If the inspected State Party determines it to be necessary, 
the inspected State Party shall conduct a fit test on masks brought with 
the inspection team. If the inspected State Party so requests on the 
basis of confirmed contamination or hazardous waste requirements or 
regulations, any such piece of equipment involved in the inspection 
activities will be left at the facility at the end of the inspection. 
The inspection team reserves the right to destroy equipment left at the 
facility or witness its destruction by agreed procedures. The inspected 
State Party will reimburse the Organization for the loss of the 
inspection team's equipment.
    10. In accordance with the Organization's Health and Safety Policy, 
the inspected State Party may provide available data based on detection 
and monitoring, to the agreed extent necessary to satisfy concerns

[[Page 153]]

that may exist regarding the health and safety of the inspection team.

                       Section 3. Confidentiality

    1. Matters related to confidentiality are governed by the 
Convention, including its Confidentiality Annex and paragraph 1 of 
Article VII, and the Organization's Policy on Confidentiality. The 
specific arrangements for implementing the provisions of the Convention 
and the Organization's Policy on Confidentiality in relation to the 
protection of confidential information at the facility are contained in 
Attachment 3.
    2. Upon request, the inspected State Party will procure a container 
to be placed under joint seal to maintain documents that the inspection 
team, inspected State Party, or the facility representative decides to 
keep as reference for future inspections. The inspected State Party 
shall be reimbursed by the Organization for the purchase of such 
container.
    3. All documents, including photographs, provided to the inspection 
team will be controlled as follows:
    (a) Information to be taken off-site. Information relevant to the 
finalization of the preliminary factual findings that the inspected 
State Party permits the inspection team to take off-site will be marked 
and numbered by the inspected State Party. In accordance with the 
inspected State Party's Procedures for Information Control, markings on 
the information will clearly state that the inspection team may take it 
off-site and will contain a classification pursuant to the 
Organization's Policy on Confidentiality at a level requested by the 
inspected State Party. The representative of the facility will 
acknowledge the release of such information in writing prior to 
disclosure to the inspection team.
    (b) Information restricted for use on-site. Information that the 
inspected State Party permits the inspection team to use on-site during 
inspections but not take off-site will be marked and numbered by the 
inspected State Party. In accordance with the inspected State Party's 
Procedures for Information Control, markings on the information will 
clearly restrict its use on-site and will contain a classification 
pursuant to the Organization's Policy on Confidentiality at a level 
requested by the inspected State Party. The representative of the 
facility will acknowledge the release of such information in writing 
prior to disclosure to the inspection team. Upon conclusion of the 
inspection, the inspection team shall return the information to the 
inspected State Party, and the facility representative shall acknowledge 
receipt in writing. If so requested by the inspection team, the 
information can be placed in the joint sealed container for future 
reference.
    (c) Information restricted for use on-site and requiring direct 
supervision. Information that the inspected State Party permits the 
inspection team to use on-site only under direct supervision of the 
inspected State Party or the representative of the inspected facility 
will be marked and numbered by the inspected State Party. In accordance 
with the inspected State Party's Procedures for Information Control, 
markings on the information will clearly restrict its use on-site under 
direct supervision and will contain a classification pursuant to the 
Organization's Policy on Confidentiality at a level requested by the 
inspected State Party. The representative of the facility will 
acknowledge the release of such information in writing prior to 
disclosure to the inspection team. The inspection team shall return the 
information to the inspected State Party immediately upon completion of 
review and the facility representative shall acknowledge receipt in 
writing. If so requested by the inspection team, the information can be 
placed in the joint sealed container for future reference.

                  Section 4. Media and Public Relations

    1. Inspection team media and public relations are governed by the 
Organization's Media and Public Relations Policy. The specific 
arrangements for the inspection team's contacts with the media or the 
public, if any, in relation to inspections of the facility are contained 
in Attachment 4.

                     Section 5. Inspection Equipment

    1. As agreed between the inspected State Party and the Organization, 
the approved equipment listed in Part A of Attachment 5 and with which 
the inspected State Party has been given the opportunity to familiarize 
itself will, at the discretion of the Organization and on a routine 
basis, be used specifically for the Schedule 1 inspection. The equipment 
will be used in accordance with the Convention, the relevant decisions 
taken by the Conference of States Parties, and any agreed procedures 
contained in Attachment 5.
    2. The provisions of paragraph 1 above are without prejudice to 
paragraphs 27 to 29 of Part II of the Verification Annex.
    3. The items of equipment available on-site, not belonging to the 
Organization, which the inspected State Party has volunteered to provide 
to the inspection team upon its request for use on-site during the 
conduct of inspections, together with any procedures for the use of such 
equipment, if required, any requested support which can be provided, and 
conditions for the provision of equipment are listed in Part B of 
Attachment 5. Prior to any use of such equipment, the inspection team 
may confirm that the performance characteristics of such equipment are 
consistent with those for similar Organization-approved equipment, or, 
with respect to items of equipment which are not

[[Page 154]]

on the list of Organization-approved equipment, are consistent with the 
intended purpose for using such equipment.2
---------------------------------------------------------------------------

    \2\ i.e. The inspection team may confirm that the performance 
characteristics of such equipment meet the technical requirements 
necessary to support the inspection task intended to be accomplished.
---------------------------------------------------------------------------

    4. Requests from the inspection team for the inspected State Party 
during the inspection to provide equipment mentioned in paragraph 3 
above shall be made in writing by an authorized member of the inspection 
team using the form contained in Attachment 5. The same procedure will 
also apply to other requests of the inspection team in accordance with 
paragraph 30 of Part II of the Verification Annex.
    5. Agreed procedures for the decontamination of any equipment are 
contained in Part C of Attachment 5.
    6. For the purpose of verification, the list of agreed on-site 
monitoring instruments, if any, as well as agreed conditions, procedures 
for use, maintenance, repair, modification, replacement and provisions 
for the inspected State Party's support, if required, installation 
points, and security measures to prevent tampering with such on-site 
monitoring instruments are contained in Part D of Attachment 5.

                  Section 6. Pre-Inspection Activities

    1. The inspection team shall be given a pre-inspection briefing by 
the representatives of the facility in accordance with paragraph 37 of 
Part II of the Verification Annex. The pre-inspection briefing shall 
include:
    (a) Information on the facility as described in Attachment 6;
    (b) Health and safety specifications described in Section 2 above 
and detailed in Attachment 2;
    (c) Any changes to the above-mentioned information since the last 
inspection; and
    (d) Information on administrative and logistical arrangements 
additional to those contained in Attachment 10, if any, that shall apply 
during the inspection, as contained in Section 10.
    2. Any information about the facility that the inspected State Party 
has volunteered to provide to the inspection team during the pre-
inspection briefing with indications as to which information may be 
transferred off-site is referenced in Part B of Attachment 6.

                  Section 7. Conduct of the Inspection

                        7.1 Standing Arrangements

    1. The inspection period shall begin immediately upon completion of 
the pre-inspection briefing unless agreed otherwise. Upon completion of 
the pre-inspection briefing, the inspected State Party may, on a 
voluntary basis, provide a site tour at the request of the inspection 
team. Arrangements for the conduct of a site tour, if any, are contained 
in Attachment 7.
    2. Upon conclusion of the pre-inspection briefing, the inspection 
team leader shall provide to the designated representative of the 
inspected State Party a preliminary inspection plan to facilitate the 
conduct of the inspection.
    3. Before commencement of inspection activities, the inspection team 
leader shall inform the representative of the inspected State Party 
about the initial steps to be taken in implementing the inspection plan. 
The plan will be adjusted by the inspection team as circumstances 
warrant throughout the inspection process in consultation with the 
inspected State Party as to its implementability in regard to paragraph 
40 of Part II of the Verification Annex.
    4. The activities of the inspection team shall be so arranged as to 
ensure the timely and effective discharge of its functions and the least 
possible inconvenience to the inspected State Party and disturbance to 
the facility inspected. The inspection team shall avoid unnecessarily 
hampering or delaying the operation of a facility and avoid affecting 
safety. In particular, the inspection team shall not operate the 
facility. If the inspection team considers that, to fulfil the mandate, 
particular operations should be carried out in the facility, it shall 
request the designated representative of the facility to have them 
performed.
    5. At the beginning of the inspection, the inspection team shall 
have the right to confirm the precise location of the facility utilizing 
visual and map reconnaissance, a site diagram, or other suitable 
techniques.
    6. The inspection team shall, upon request of the inspected State 
Party, communicate with the personnel of the facility only in the 
presence of or through a representative of the inspected State Party.
    7. The inspected State Party shall, upon request, provide a 
securable work space for the inspection team, including adequate space 
for the storage of equipment. The inspection team shall have the right 
to seal its work space. For ease of inspection, the inspected State 
Party will work with the facility representative to provide work space 
at the facility, if possible.

                   7.2 Access to the Declared Facility

    1. The object of the inspection shall be the declared Schedule 1 
facility as referenced in Attachment 6.
    2. Pursuant to paragraph 45 of Part II of the Verification Annex, 
the inspection team shall have unimpeded access to the declared facility 
in accordance with the relevant Articles and Annexes of the Convention 
and Attachments 6, 8, and 9.

[[Page 155]]

        7.3 Access to and Inspection of Documentation and Records

    1. The agreed list of the documentation and records to be routinely 
made available for inspection purposes to the inspection team by the 
inspected State Party during an inspection, as well as arrangements with 
regard to access to such records for the purpose of protecting 
confidential information, are contained in Attachment 8. Such 
documentation and records will be provided to the inspection team upon 
request.
    2. Only those records placed in the custody of the inspection team 
that are attached to the preliminary factual findings in accordance with 
Section 3 may leave the premises. Those records placed in the custody of 
the inspection team that are not attached to the preliminary factual 
findings must be retained in the inspection team's on-site container or 
returned to the inspected State Party.

                        7.4 Sampling and Analysis

    1. Without prejudice to paragraphs 52 to 58 of Part II of the 
Verification Annex, procedures for sampling and analysis for 
verification purposes are contained in Attachment 9.
    2. Sampling and analysis, for inspection purposes, may be carried 
out to fulfill the inspection mandate. Each such sample will be split 
into a minimum of four parts at the request of the inspection team in 
accordance with Part C of Attachment 9. One part shall be analyzed in a 
timely manner on-site. The second part of the split sample may be 
controlled by the inspection team for future reference and, if 
necessary, analysis off-site at laboratories designated by the 
Organization. That part of the sample may be destroyed at any time in 
the future upon the decision of the inspection team but in any case no 
later than 60 days after it was taken. The third part may be retained by 
the inspected State Party. The fourth part may be retained by the 
facility.
    3. Pursuant to paragraph 52 of the Part II of the Verification 
Annex, representatives of the inspected State Party or facility shall 
take samples at the request of the inspection team in the presence of 
inspectors. The inspected State Party will inform the inspection team of 
the authorized facility representative's 3 determination of 
whether the sample shall be taken by representatives of the facility or 
the inspection team or other individuals present. If inspectors are 
granted the right to take samples themselves in accordance with 
paragraph 52 of Part II of the Verification Annex, the relevant advance 
agreement between the inspection team and the inspected State Party 
shall be in writing. The representatives of the inspected State Party or 
of the inspected facility shall have the right to be present during 
sampling. Agreed conditions and procedures for such sample collection 
are contained in Part B of Attachment 9 to this Agreement.
---------------------------------------------------------------------------

    \3\ The authorized facility representative is the owner or the 
operator, occupant or agent in charge of the premises being inspected.
---------------------------------------------------------------------------

    4. Facility sampling equipment shall as a rule be used for taking 
samples required for the purposes of the inspection. This is without 
prejudice to the right of the inspection team pursuant to paragraph 27 
of Part II of the Verification Annex to use its own approved sampling 
equipment in accordance with paragraph 1 of Section 5 and Parts A and B 
of Attachment 5 to this Agreement.
    5. Should the inspection team request that a sample be taken and the 
inspected State Party be unable to accede or agree to the request, the 
inspected State Party will make every reasonable effort to satisfy the 
inspection team's concerns by other means to enable the inspection team 
to fulfil its mandate. The inspected State Party will provide a written 
explanation for its inability to accede or agree to the request. Any 
such response shall be supported by relevant document(s). The 
explanation of the inspected State Party shall be included in the 
preliminary factual findings.
    6. In accordance with paragraph 53 of Part II of the Verification 
Annex, where possible, the analysis of samples shall be performed on-
site and the inspection team shall have the right to perform on-site 
analysis of samples using approved equipment brought by it for the 
splitting, preparation, handling, analysis, integrity and transport of 
samples. The assistance that will be provided by the inspected State 
Party and the analysis procedures to be followed are contained in Part D 
of Attachment 9 to this Agreement.
    7. The inspection team may request the inspected State Party to 
perform the analysis in the inspection team's presence. The inspection 
team shall have the right to be present during any sampling and analysis 
conducted by the inspected State Party.
    8. The results of such analysis shall be reported in writing as soon 
as possible after the sample is taken.
    9. The inspection team shall have the right to request repeat 
analysis or clarification in connection with ambiguities.
    10. If at any time, and for any reason, on-site analysis is not 
possible, the inspection team has the right to have sample(s) analyzed 
off-site at Organization-designated laboratories. In selecting such 
designated laboratories for the off-site analysis, the Organization will 
give due regard to requirements of the inspected State Party.
    11. Transportation of samples will be in accordance with the 
procedures outlined in Part E of Attachment 9.
    12. If at any time, the inspected State Party or facility 
representative determines

[[Page 156]]

that inspection team on-site analysis activities are not in accordance 
with the facility agreement or agreed analysis procedures, or otherwise 
pose a threat to safety or environmental regulations or laws, the 
inspected State Party, in consultation with the facility representative, 
will cease these on-site activities pending resolution. If both parties 
cannot agree to proceed with the analysis, the inspection team will 
document this in its preliminary factual findings.
    13. Conditions and procedures for the disposal of hazardous 
materials generated during sampling and on-site analysis during the 
inspection are contained in Part F of Attachment 9 to this Agreement.

                     7.5 Arrangements for Interviews

    1. The inspection team shall have the right, subject to applicable 
United States legal protections for individuals, to interview any 
facility personnel in the presence of representatives of the inspected 
State Party with the purpose of establishing relevant facts in 
accordance with paragraph 46 of Part II of the Verification Annex and 
inspected State Party's policy and procedures. Agreed procedures for 
conducting interviews are contained in Attachment 11.
    2. The inspection team will submit to the inspected State Party 
names and/or positions of those desired for interviews. The requested 
individual(s) will be made available to the inspection team no later 
than 24 hours after submission of the formal request, unless agreed 
otherwise. The inspection team may also be requested to submit questions 
in writing prior to conducting interviews. The specific timing and 
location of interviews will be determined with the facility in 
coordination with the inspected State Party and consistent with adequate 
notification of the interviewees, and minimizing the operation impacts 
on the facility and individuals to be interviewed.
    3. The inspected State Party may recommend to the inspection team 
that interviews be conducted in either ``panel'' or individual formats. 
At a minimum, interviews will be conducted with a member of the facility 
staff and an inspected State Party representative. Legal counsel may 
also be required to be present by the inspected State Party. The 
interview may be interrupted for consultation between the interviewee, 
the facility representative, the inspected State Party representative, 
and legal counsel.
    4. The inspected State Party will have the right to restrict the 
content of interviews to information directly related to the mandate or 
purpose of the inspection.
    5. Outside the interview process and in discharging their functions, 
inspectors shall communicate with personnel of the facility only through 
the representative(s) of the inspected State Party.

                           7.6 Communications

    1. In accordance with paragraph 44 of Part II of the Verification 
Annex, the inspection team shall have the right to communicate with the 
headquarters of the Technical Secretariat. For this purpose they may use 
their own, duly certified approved equipment, in accordance with 
paragraph 1 of Section 5. The representative of the inspected facility 
retains the right to control the use of communications equipment in 
specific areas, buildings, or structures if such use would be 
incompatible with applicable safety or fire regulations.
    2. In case the inspection team and the inspected State Party agree 
to use any of the inspected State Party's communications equipment, the 
list of such equipment and the provisions for its use are contained in 
Part B of Attachment 5 to this Agreement.
    3. The agreed means of communication between inspection team sub-
teams in accordance with paragraph 44 of Part II of the Verification 
Annex are contained in Part E of Attachment 5.

                             7.7 Photographs

    1. In accordance with the provisions of paragraph 48 of Part II of 
the Verification Annex, the Confidentiality Annex and inspected State 
Party's policy and procedures, the inspection team shall have the right 
to have photographs taken at their request by the representatives of the 
inspected State Party or the inspected facility. One camera of the 
instant development type furnished by the inspection team or the 
inspected State Party shall be used for taking identical photographs in 
sequence. Cameras furnished by the inspection team will remain either in 
their work space or equipment storage area except when carried by 
inspection team members for a specific inspection activity. Cameras will 
only be used for specified inspection purposes. Personal cameras are not 
allowed to be taken to the facility.
    2. Pursuant to the Confidentiality Annex, the inspected State Party, 
in consultation with the facility representative, shall have the right 
to determine that contents of the photographs conform to the stated 
purpose of the photographs. The inspection team shall determine whether 
photographs conform to those requested and, if not, repeat photographs 
shall be taken. Photographs that do not meet the satisfaction of both 
sides will be destroyed by the inspected State Party in the presence of 
the inspection team. The inspection team, the inspected State Party and 
the facility, if so requested, shall each retain one copy of every 
photograph. The copies shall be signed, dated, and classified, in 
accordance with Section 3, and note the location and subject of the 
photograph and carry the same identification

[[Page 157]]

number. Agreed procedures for photography are contained in Attachment 
12.
    3. The representative of the inspected facility has the right to 
object to the use of photographic equipment in specific areas, buildings 
or structures if such use would be incompatible with safety or fire 
regulations given the characteristics of the chemicals stored in the 
area in question. Restrictions for use are contained in Parts A and/or B 
of Attachment 5 to this Agreement. If the objection is raised due to 
safety concerns, the inspected State Party will, if possible, furnish 
photographic equipment that meets the regulations. If the use of 
photographic equipment is not permissible at all in specific areas, 
buildings or structures for the reasons stated above, the inspected 
State Party shall provide a written explanation of its objection to the 
inspection team leader. The explanation, along with the inspection team 
leader's comments will be included in the inspection team's preliminary 
factual findings.

                            Section 8. Visits

    1. This section applies to visits conducted pursuant to paragraphs 
15 and 16 of Part III of the Verification Annex.
    2. The size of a team on such a visit shall be kept to the minimum 
number of personnel necessary to perform the specific tasks for which 
the visit is being conducted and shall in any case not exceed the size 
of inspection team referenced in paragraph 5 of Section 1.
    3. The duration of the visit pursuant to this Section shall be 
limited to the minimum time required to perform the specific tasks 
relating to monitoring systems for which the visit is being conducted 
and in any case shall not exceed the estimated period of inspection 
referenced in Part B of Attachment 1 of this Agreement.
    4. Access provided to the monitoring systems during the visit shall 
be limited to that required to perform the specific tasks for which the 
visit is being conducted, unless otherwise agreed to with the inspected 
State Party.
    5. General arrangements and notifications for a visit shall be the 
same as for the conduct of an inspection.

             Section 9. Debriefing and Preliminary Findings

    1. In accordance with paragraph 60 of Part II of the Verification 
Annex, upon completion of an inspection the inspection team shall meet 
with representatives of the inspected State Party and the personnel 
responsible for the inspection site to review the preliminary findings 
of the inspection team and to clarify any ambiguities. The inspection 
team shall provide to the representatives of the inspected State Party 
its preliminary findings in written form according to a standardized 
format, together with a list of any samples and copies of written 
information and data gathered and other material to be taken off-site. 
The document shall be signed by the head of the inspection team. In 
order to indicate that he has taken notice of the contents of the 
document, the representative of the inspected State Party shall 
countersign the document. The meeting shall be completed not later than 
24 hours after the completion of the inspection.
    2. The document on preliminary findings shall also include, inter 
alia, the list of results of analysis, if conducted on-site, records of 
seals, results of inventories, copies of photographs to be retained by 
the inspection team, and results of specified measurements. It will be 
prepared in accordance with the preliminary findings format referenced 
in Annex 5. Any substantive changes to this format will be made only 
after consultation with the inspected State Party.
    3. Before the conclusion of the debriefing, the inspected State 
Party may provide comments and clarifications to the inspection team on 
any issue related to the conduct of the inspection. The inspection team 
shall provide to the representative of the inspected State Party its 
preliminary findings in written form sufficiently prior to the 
conclusion of the debriefing to permit the inspected State Party to 
prepare any comments and clarifications. The inspected State Party's 
written comments and clarifications shall be attached to the document on 
preliminary findings.
    4. The inspection team shall depart from the site upon the 
conclusion of the meeting on preliminary findings.

                 Section 10. Administrative Arrangements

    1. The inspected State Party shall provide or arrange for the 
provision of the amenities listed in detail in Attachment 10 to the 
inspection team throughout the duration of the inspection. The inspected 
State Party shall be reimbursed by the Organization for such costs 
incurred by the inspection team, unless agreed otherwise.
    2. Requests from the inspection team for the inspected State Party 
to provide or arrange amenities shall be made in writing by an 
authorized member of the inspection team 4 using the form 
contained in Attachment 10. Requests shall be made as soon as the need 
for amenities has been identified. The provision of such requested 
amenities shall be certified in writing by the authorized member of the 
inspection team. Copies of all such certified requests shall be kept by 
both parties.
---------------------------------------------------------------------------

    \4\ The name of the authorized member(s) of the inspection team 
should be communicated to the inspected State Party no later than at the 
Point of Entry.

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

[[Page 158]]

    3. The inspection team has the right to refuse extra amenities that 
in its view are not needed for the conduct of the inspection.

                         Section 11. Liabilities

    1. Any claim by the inspected State Party against the Organization 
or by the Organization against the inspected State Party in respect of 
any alleged damage or injury resulting from inspections at the facility 
in accordance with this Agreement, without prejudice to paragraph 22 of 
the Confidentiality Annex, shall be settled in accordance with 
international law and, as appropriate, with the provisions of Article 
XIV of the Convention.

                    Section 12. Status of Attachments

    1. The Attachments form an integral part of this Agreement. Any 
reference to the Agreement includes the Attachments. However, in case of 
any inconsistency between this Agreement and any Attachment, the 
sections of the Agreement shall prevail.

            Section 13. Amendments, Modifications and Updates

    1. Amendments to the sections of this Agreement may be proposed by 
either Party and shall be agreed to and enter into force under the same 
conditions as provided for under paragraph 1 of Section 15.
    2. Modifications to the Attachments of this Agreement, other than 
Attachment 1 and Part B of Attachment 5, may be agreed upon at any time 
between the representative of the Organization and the representative of 
the inspected State Party, each being specifically authorized to do so. 
The Director-General shall inform the Executive Council about any such 
modifications. Each Party to this Agreement may revoke its consent to a 
modification not later than four weeks after it had been agreed upon. 
After this time period the modification shall take effect.
    3. The inspected State Party will update Part A of Attachment 1 and 
Part B of Attachment 5 and Attachment 6 as necessary for the effective 
conduct of inspections. The Organization will update Part B of 
Attachment 1 and Annex 5, subject to paragraph 2 of Section 9, as 
necessary for the effective conduct of inspections.

                   Section 14. Settlement of Disputes

    1. Any dispute between the Parties that may arise out of the 
application or interpretation of this Agreement shall be settled in 
accordance with Article XIV of the Convention.

                      Section 15. Entry Into Force

    1. This Agreement shall enter into force after approval by the 
Executive Council and signature by the two Parties. If the inspected 
State Party has additional internal requirements, it shall so notify the 
Organization in writing by the date of signature. In such cases, this 
Agreement shall enter into force on the date that the inspected State 
Party gives the Organization written notification that its internal 
requirements for entry into force have been met.

                  Section 16. Duration and Termination

    1. This Agreement shall cease to be in force when, as determined by 
the Executive Council, the provisions of paragraphs 3 and 8 of Article 
VI and Part VI of the Verification Annex no longer apply to this 
facility.
    Done at ---- in ---- copies, in English, each being equally 
authentic.\5\
---------------------------------------------------------------------------

    \5\ The language(s) to be chosen by the inspected State Party from 
the languages of the Convention shall be the same as the language(s) 
referred to in paragraph 6 of Section 1 of this Agreement.
---------------------------------------------------------------------------

                               Attachments

    The following attachments shall be completed where applicable.
Attachment 1: General Factors for the Conduct of Inspections
Attachment 2: Health and Safety Requirements and Procedures
Attachment 3: Specific Arrangements in Relation to the Protection of 
Confidential Information at the Facility
Attachment 4: Arrangements for the Inspection Team's Contacts with the 
Media or the Public
Attachment 5: Inspection Equipment
Attachment 6: Information on the Facility Provided in Accordance with 
Section 6
Attachment 7: Arrangements for Site Tour
Attachment 8: Records Routinely Made Available to the Inspection Team at 
the Facility
Attachment 9: Sampling and Analysis for Verification Purposes
Attachment 10: Administrative Arrangements
Attachment 11: Agreed Procedures for Conducting Interviews
Attachment 12: Agreed Procedures for Photography

      Attachment 1--General Factors for the Conduct of Inspections

    Part A. To Be Provided and Updated by the inspected State Party:

    1. Schedule 1 facility(s) working hours, if applicable: 
6----hrs to ----hrs (local time) (days)
---------------------------------------------------------------------------

    \6\ All references to time use a 24 hour clock.
---------------------------------------------------------------------------

    2. Working days: --------------------
    3. Holidays or other non-working days:
________________________________________________________________________
________________________________________________________________________

[[Page 159]]

    4. Inspection activities which could/could not 7 be 
supported during non-working hours with notation of times and 
activities:
---------------------------------------------------------------------------

    \7\ Choose one option.
---------------------------------------------------------------------------

________________________________________________________________________
________________________________________________________________________
    5. Any other factors that could adversely affect the effective 
conduct of inspections:
    (a) inspection requests:
    Should the facility withhold consent to an inspection, the inspected 
State Party shall take all appropriate action under its law to obtain a 
search warrant from a United States magistrate judge. Upon receipt of a 
warrant, the inspected State Party will accede to the Organization's 
request to conduct an inspection. Such inspection will be carried out in 
accordance with the terms and conditions of the warrant.
    (b) other:
________________________________________________________________________
    6. Other: notification procedures are contained in Annex 6.
    Part B. To Be Provided and Updated by the Organization:
    1. Inspection frequency: ----------------
    2. Inspection intensity:
    (a) maximum estimated period of inspection (for planning purposes): 
--------
    (b) approximate inspection team size: ----
    (c) estimated volume and weight of equipment to be brought on-site: 
--------

                              Attachment 2

              Health and Safety Requirements and Procedures

    Part A. Basic Principles:
    1. Applicable health and safety regulations of the Organization, 
with agreed variations from strict implementation, if any:
________________________________________________________________________
________________________________________________________________________
    2. Health and safety regulations applicable at the facility:
    (a) federal regulations:
________________________________________________________________________
________________________________________________________________________
    (b) state regulations:
________________________________________________________________________
________________________________________________________________________
    (c) local regulations:
________________________________________________________________________
________________________________________________________________________
    (d) facility regulations:
________________________________________________________________________
________________________________________________________________________
    3. Health and safety requirements and regulations agreed between the 
inspected State Party and the Organization:
________________________________________________________________________
________________________________________________________________________
    Part B. Detection and Monitoring:
    1. Applicable specific safety standards for workplace chemical 
exposure limits and/or concentrations which should be observed during 
the inspection, if any:
________________________________________________________________________
________________________________________________________________________
    2. Procedures for detection and monitoring in accordance with the 
Organization's Health and Safety Policy, including data to be collected 
by, or provided to, the inspection team:
________________________________________________________________________
________________________________________________________________________
    Part C. Protection:
    1. Protective equipment to be provided by the Organization and 
agreed procedures for equipment certification and use, if required:
________________________________________________________________________
________________________________________________________________________
    2. Protective equipment to be provided by the inspected State Party, 
and agreed procedures, personnel training, and personnel qualification 
tests and certification required; and agreed procedures for use of the 
equipment:
________________________________________________________________________
________________________________________________________________________
    Part D. Medical Requirements:
    1. Applicable medical standards of the inspected State Party and, in 
particular, the inspected facility:
________________________________________________________________________
________________________________________________________________________
    2. Medical screening procedures for members of the inspection team:
________________________________________________________________________
________________________________________________________________________
    3. Agreed medical assistance to be provided by the inspected State 
Party:
________________________________________________________________________
________________________________________________________________________
    4. Emergency medical evacuation procedures:
________________________________________________________________________
________________________________________________________________________
    5. Agreed additional medical measures to be taken by the inspection 
team:
________________________________________________________________________
________________________________________________________________________
    6. Procedures for emergency response to chemical casualties of the 
inspection team:
________________________________________________________________________
________________________________________________________________________
    Part E. Modification of Inspection Activities:
    1. Modification of inspection activities due to health and safety 
reasons, and agreed alternatives to accomplish the inspection goals:
________________________________________________________________________
________________________________________________________________________

  Attachment 3--Specific Arrangements in Relation to the Protection of 
                Confidential Information at the Facility

    Part A. Inspected State Party's Procedures for Designating and 
Classifying Documents Provided to the Inspection Team: See Annex 3 for 
the Organization's Policy on Confidentiality and Annex 7 for the 
inspected State Party's Procedures for Information Control.

[[Page 160]]

    Part B. Specific Procedures for Access by the Inspection Team to 
Confidential Areas or Materials:
________________________________________________________________________
________________________________________________________________________
    Procedures in Relation to the Certification by the Inspection Team 
of the Receipt of Any Documents Provided by the Inspected Facility:
________________________________________________________________________
________________________________________________________________________
    Part C. Storage of Confidential Documents at the Inspected Facility:
    1. Procedures in relation to the storage of confidential documents 
or use of a dual control container on-site, if applicable: Information 
under restrictions provided for in the Confidentiality Annex and as such 
to be kept in the dual control container under joint seal shall be 
available to the inspection team leader and/or an inspector designated 
by him from the beginning of the pre-inspection briefing until the end 
of the debriefing upon completion of the inspection. If copies of 
information under dual control are permitted to be attached to the 
preliminary factual findings by the inspected State Party, they shall be 
made by the inspected State Party and retained under dual control until 
the debriefing. Should the medium on which such information is recorded 
become unusable, it shall be replaced without delay by the 
representative of the inspected State Party.
________________________________________________________________________
________________________________________________________________________
    2. The dual control container will be placed
________________________________________________________________________
    3. Information meeting the strict requirements for restriction 
pursuant to the Confidentiality Annex, and to be maintained in the dual 
control container located at the inspected facility between inspections 
is listed below:

----------------------------------------------------------------------------------------------------------------
                                                                                                  Reasons for
           Reference                 Type of data       Recorded media          Volume           restrictions/
                                                                                                    remarks
----------------------------------------------------------------------------------------------------------------
                                 ...................  ..................  ..................  ..................
                                 ...................  ..................  ..................  ..................
                                 ...................  ..................  ..................  ..................
----------------------------------------------------------------------------------------------------------------

    Part D. Procedures for the Removal Off-Site of Any Written 
Information, Data, and Other Material Gathered by the Inspection Team:
________________________________________________________________________
________________________________________________________________________
    Part E. Procedures for Providing the Representatives of the 
inspected State Party with Copies of Written Information, Inspector's 
Notebooks, Data and Other Material Gathered by the Inspection Team:
________________________________________________________________________
________________________________________________________________________
    Part F. Other Arrangements, If Any:
    1. Unless specified otherwise, all facility information shall be 
returned to the inspected State Party at the completion of the 
inspection. No copies of facility information shall be made in any 
manner by the inspection team or the Organization.
    2. Facility information shall not be released to the public, other 
States Parties, or the media without the specific permission of the 
inspected State Party, after consultation with the facility.
    3. Facility information shall not be transmitted, copied or retained 
electronically without the specific permission of the inspected State 
Party after consultation with the facility. All transmissions of 
information off-site shall be done in the presence of the inspected 
State Party.
    4. Information not relevant to the purpose of the inspection will be 
purged from documents, photographs, etc. prior to release to the 
inspection team.

 Attachment 4--Arrangements for the Inspection Team's Contacts with the 
                           Media or the Public

________________________________________________________________________
________________________________________________________________________

                   Attachment 5--Inspection Equipment

    Part A: List of Equipment:

----------------------------------------------------------------------------------------------------------------
                                                            Agreed procedures for use
                                --------------------------------------------------------------------------------
                                      Nature of                                                 Alternative for
  Item of approved inspection      restrictions(s)       Indication of     Special handling   meeting inspection
           equipment               (location, time,   reason(s) (safety,      or storage      requirement(s), if
                                  periods, etc.), if   confidentiality,      requirements     so required by the
                                         any                 etc.)                              inspection team
----------------------------------------------------------------------------------------------------------------
                                 ...................  ..................  ..................
                                 ...................  ..................  ..................
----------------------------------------------------------------------------------------------------------------

    Part B. Equipment which the inspected State Party Has Volunteered to 
Provide:
      
      

[[Page 161]]



----------------------------------------------------------------------------------------------------------------
                                                                Support to be provided,    Conditions (timing,
          Item of equipment              Procedures for use           if required             costs, if any)
----------------------------------------------------------------------------------------------------------------
                                      ........................  .......................  .......................
----------------------------------------------------------------------------------------------------------------

    Part C. Procedures for the Decontamination of Equipment:

------------------------------------------------------------------------
            Item of equipment                    Procedures for use
------------------------------------------------------------------------
                                           .............................
                                           .............................
------------------------------------------------------------------------

    Part D. Agreed On-Site Monitoring Instruments:
________________________________________________________________________
________________________________________________________________________
    Part E. Means of Communication between Inspection Team Sub-Teams:
________________________________________________________________________
________________________________________________________________________

   Request for and Certification of Equipment Available on Site To Be 
          Provided in Accordance With Paragraph 3 of Section 5

Date:___________________________________________________________________
Facility:_______________________________________________________________
Inspection number:______________________________________________________
Name of the authorized member of the inspection team:
________________________________________________________________________
Type and number of item(s) of equipment requested:
________________________________________________________________________
________________________________________________________________________
Approval of the request by inspected State Party:
________________________________________________________________________
Comments on the request by the inspected State Party:
________________________________________________________________________
________________________________________________________________________
Indication of the costs, if any, for the use of the equipment requested/
volunteered:
________________________________________________________________________
________________________________________________________________________
Certification of the authorized member of the inspection team that the 
requested item(s) of equipment have been provided:
________________________________________________________________________
Comments, if any, by the authorized member of the inspection team in 
regard to the equipment provided:
________________________________________________________________________
________________________________________________________________________
Name and signature of the authorized member of the inspection team:
________________________________________________________________________
Name and signature of the representative of the inspected State Party:
________________________________________________________________________

 Attachment 6--Information on the Facility Provided in Accordance With 
                                Section 6

    Part A. Topics of Information for the Pre-Inspection Briefing:
________________________________________________________________________
________________________________________________________________________
    1. Specification of the elements constituting the declared facility, 
including their physical location(s) (i.e., detail the areas, equipment, 
and computers), with indications as to which information may be 
transferred off-site:
________________________________________________________________________
________________________________________________________________________
    2. Procedures for unimpeded access within the declared facility: 
8
---------------------------------------------------------------------------

    \8\ List the areas, equipment, and computers, if any, that are not 
relevant to the inspection mandate or that contain confidential business 
information that does not need to be divulged in order to comply with 
the inspection mandate.
---------------------------------------------------------------------------

________________________________________________________________________
________________________________________________________________________
    3. Other:
________________________________________________________________________
________________________________________________________________________
    Part B. Any Information about the Facility that the inspected State 
Party Volunteers to Provide to the Inspection Team during the Pre-
Inspection Briefing with Indications as to which May Be Transferred Off-
Site:
________________________________________________________________________
________________________________________________________________________

                Attachment 7--Arrangements for Site Tour

    The inspected State Party may provide a site tour at the request of 
the inspection team. The inspected State Party may provide explanations 
to the inspection team during the site tour.
________________________________________________________________________
________________________________________________________________________

Attachment 8--Records Routinely Made Available to the Inspection Team at 
             the Facility (i.e., Identify Records and Data)

________________________________________________________________________
________________________________________________________________________

[[Page 162]]

      Attachment 9--Sampling and Analysis for Verification Purposes

    Part A. Agreed Sampling Points Chosen with Due Consideration to 
Existing Sampling Points Used by the Facility(s) Operator(s):
________________________________________________________________________
    Part B. Procedures for Taking Samples:
________________________________________________________________________
    Part C. Procedures for Sample Handling and Sample Splitting:
________________________________________________________________________
    Part D. Procedures for On-Site Sample Analysis, If Any:
________________________________________________________________________
________________________________________________________________________
    Part E. Procedures for Off-Site Analysis, If Any:
________________________________________________________________________
    Part F. Procedures for Transporting Samples:
________________________________________________________________________
    Part G. Arrangements in Regard to the Payment of Costs Associated 
with the Disposal or Removal by the inspected State Party of Hazardous 
Waste Generated during Sampling and On-Site Analysis during the 
Inspection:
________________________________________________________________________

               Attachment 10--Administrative Arrangements

    Part A. The Amenities Detailed Below Shall Be Provided to the 
Inspection Team by the inspected State Party, Subject to Payment as 
Indicated in Part B Below:
    1. International and local official communication (telephone, fax), 
including calls/faxes between site and headquarters:
________________________________________________________________________
 2. Vehicles:___________________________________________________________
    3. Working room, including adequate space for the storage of 
equipment:
________________________________________________________________________
 4. Lodging:____________________________________________________________
 5. Meals:______________________________________________________________
 6. Medical care:_______________________________________________________
    7. Interpretation Services:
 (a) number of interpreters:____________________________________________
 (b) estimated interpretation time:_____________________________________
 (c) languages:_________________________________________________________
    8. Other:
________________________________________________________________________
________________________________________________________________________
    Part B. Distribution of Costs for Provision of Amenities by the 
inspected State Party (check one option for each amenity provided as 
appropriate):

----------------------------------------------------------------------------------------------------------------
                                               To be paid by the      To be paid by the
                    To be paid directly by    inspection team on    inspected State Party
 Paragraphs 1-8 in  the Organization after       behalf of the         and subsequently      To be paid by the
   Part A above         the inspection        Organization during     reimbursed by the    inspected State Party
                                             the in-country period       Organization
----------------------------------------------------------------------------------------------------------------
                1   ......................  ......................  .....................  .....................
                2   ......................  ......................  .....................  .....................
                3   ......................  ......................  .....................  .....................
                4   ......................  ......................  .....................  .....................
                5   ......................  ......................  .....................  .....................
                6   ......................  ......................  .....................  .....................
                7   ......................  ......................  .....................  .....................
                8   ......................  ......................  .....................  .....................
----------------------------------------------------------------------------------------------------------------

    Part C. Other Arrangements. 1. Number of sub-teams (consisting of no 
less than two inspectors per sub-team) to be accommodated: ------

  Request for and Certification of Amenities To Be Provided or Arranged

Date:___________________________________________________________________
Facility:_______________________________________________________________
Inspection number:______________________________________________________
Category of amenities requested:________________________________________
________________________________________________________________________
Description of amenities requested:_____________________________________
________________________________________________________________________
Approval of the request by the inspected State Party:
________________________________________________________________________
Comments on the request by the inspected State Party:
________________________________________________________________________
________________________________________________________________________
Indication of the costs for the amenities requested:
________________________________________________________________________
________________________________________________________________________
Certification of the authorized member of the inspection team that the 
requested amenities have been provided:
________________________________________________________________________
Comments by the authorized member of the inspection team in regard to 
the quality of the amenities provided:
________________________________________________________________________
________________________________________________________________________
Name and signature of the authorized member of the inspection team:
________________________________________________________________________
Name and signature of the representative of the inspected State Party:
________________________________________________________________________

[[Page 163]]

       Attachment 11--Agreed Procedures for Conducting Interviews

________________________________________________________________________
________________________________________________________________________

            Attachment 12--Agreed Procedures for Photography

________________________________________________________________________
________________________________________________________________________

                                 Annexes

    Note: These annexes, inter alia, can be attached if requested by the 
inspected State Party.

Annex 1: Organization's Media and Public Relations Policy
Annex 2: Organization's Health and Safety Policy and Regulations
Annex 3: Organization's Policy on Confidentiality
Annex 4: Facility Declaration
Annex 5: Preliminary and Final Inspection Report Formats
Annex 6: Inspected State Party's Procedures for Inspection Notification
Annex 7: Inspected State Party's Procedures for Information Control

    Supplement No. 3 to Part 716--Schedule 2 Model Facility Agreement

Draft Facility Agreement between the Organization for the Prohibition of 
  Chemical Weapons and the Government of the United States of America 
   Regarding On-Site Inspections at the ------ Schedule 2 Plant Site 
                         Located at ------------

    The Organization for the Prohibition of Chemical Weapons, 
hereinafter referred to as ``Organization,'' and the Government of the 
United States of America, hereinafter referred to as ``inspected State 
Party,'' both constituting the Parties to this Agreement, have agreed on 
the following arrangements in relation to the conduct of inspections 
pursuant to paragraph 4 of Article VI of the Convention on the 
Prohibition of the Development, Production, Stockpiling and Use of 
Chemical Weapons and on their Destruction, hereinafter referred to as 
``the Convention,'' at (insert name of the plant site, its precise 
location, including the address), declared under paragraphs 7 and 8 of 
Article VI, hereinafter referred to as ``plant site'':

                      Section 1. General Provisions

    1. The purpose of this Agreement is to facilitate the implementation 
of the provisions of the Convention in relation to inspections conducted 
at the plant site pursuant to paragraph 4 of Article VI of the 
Convention, and in accordance with the obligations of the inspected 
State Party and the Organization under the Convention.
    2. Nothing in this Agreement shall be applied or interpreted in a 
way that is contradictory to the provisions of the Convention, including 
paragraph 1 of Article VII.1 In case of inconsistency between 
this Agreement and the Convention, the Convention shall prevail.
---------------------------------------------------------------------------

    \1\ Each State Party shall, in accordance with its constitutional 
processes, adopt the necessary measures to implement its obligations 
under this Convention.
---------------------------------------------------------------------------

    3. The Parties have agreed to apply for planning purposes the 
general factors contained in Attachment 1.
    4. The frequency and intensity of inspections at the plant site are 
given in Part B of Attachment 1 and reflect the risk assessment of the 
Organization conducted pursuant to paragraphs 18, 20 and 24 of Part VII 
of the Verification Annex.
    5. The inspection team shall consist of no more than ---- persons.
    6. The language for communication between the inspection team and 
the inspected State Party during inspections shall be English.
    7. The period of inspection shall not last more than ninety-six (96) 
hours, unless an extension has been agreed to by the inspected State 
Party and the inspection team.
    8. In case of any development due to circumstances brought about by 
unforeseen events or acts of nature, which could affect inspection 
activities at the plant site, the inspected State Party shall notify the 
Organization and the inspection team as soon as practically possible.
    9. In case of need for the urgent departure, emergency evacuation or 
urgent travel of inspector(s) from the territory of the inspected State 
Party, the inspection team leader shall inform the inspected State Party 
of such a need. The inspected State Party shall arrange without undue 
delay such departure, evacuation or travel. In all cases, the inspected 
State Party shall determine the means of transportation and routes to be 
taken. The costs of such departure, evacuation or travel of inspectors 
shall be borne by the Organization.
    10. Inspectors shall wear identification badges at all times when on 
the premises of the plant site.

                      Section 2. Health and Safety

    1. Health and safety matters during inspections are governed by the 
Convention, the Organization's Health and Safety Policy and Regulations, 
and applicable national, local and plant site safety and environmental 
regulations. The specific arrangements for implementing the relevant 
provisions of the Convention and the Organization's Health and Safety 
Policy in relation to inspections

[[Page 164]]

at the plant site are contained in Attachment 2.
    2. Pursuant to paragraph 1 of this section, all applicable health 
and safety regulations relevant to the conduct of the inspection at the 
plant site are listed in Attachment 2 and shall be made available for 
use by the inspection team at the plant site.
    3. In case of the need to modify any health-and safety-related 
arrangements at the plant site contained in Attachment 2 to this 
Agreement bearing on the conduct of inspections, the inspected State 
Party shall notify the Organization. Any such modification shall apply 
provisionally until the inspected State Party and the Organization have 
reached agreement on this issue. In case no agreement has been reached 
by the time of the completion of the inspection, the relevant 
information may be included in the preliminary factual findings. Any 
agreed modification shall be recorded in Attachment 2 to this Agreement 
in accordance with paragraph 2 of Section 12 of this Agreement.
    4. In the course of the pre-inspection briefing the inspection team 
shall be briefed by the representatives of the plant site on all health 
and safety matters which, in the view of those representatives, are 
relevant to the conduct of the inspection at the plant site, including:
    (a) the health and safety measures at the Schedule 2 plant(s) to be 
inspected and the likely risks that may be encountered during the 
inspection;
    (b) any additional health and safety or regulations that need to be 
observed at the plant site;
    (c) procedures to be followed in case of an accident or in case of 
other emergencies, including a briefing on emergency signals, routes and 
exits, and the location of emergency meeting points and medical 
facilities; and
    (d) specific inspection activities which must be limited within 
particular areas at the plant site, and in particular within those 
Schedule 2 plant(s) to be inspected under the inspection mandate, for 
reasons of health and safety.
    Upon request, the inspection team shall certify receipt of any such 
information if it is provided in written form.
    5. During the course of an inspection, the inspection team shall 
refrain from any action which by its nature could endanger the safety of 
the team, the plant site, or its personnel or could cause harm to the 
environment. Should the inspected State Party refuse certain inspection 
activities, it may explain the circumstances and safety considerations 
involved, and shall provide alternative means for accomplishing the 
inspection activities.
    6. In the case of emergency situations or accidents involving 
inspection team members while at the plant site, the inspection team 
shall comply with the plant site's emergency procedures and the 
inspected State Party shall to the extent possible provide medical and 
other assistance in a timely and effective manner with due regard to the 
rules of medical ethics if medical assistance is requested. Information 
on medical services and facilities to be used for this purpose is 
contained in Part D of Attachment 2. If the Organization undertakes 
other measures for medical support in regard to inspection team members 
involved in emergency situations or accidents, the inspected State Party 
will render assistance to such measures to the extent possible. The 
Organization will be responsible for the consequences of such measures.
    7. The inspected State party shall, to the extent possible, assist 
the Organization in carrying out any inquiry into an accident or 
incident involving a member of the inspection team.
    8. If, for health and safety reasons given by the inspected State 
Party, health and safety equipment of the inspected State Party is 
required to be used by the inspection team, the cost so incurred shall 
be borne by the inspected State Party.
    9. The inspection team may use its own approved health and safety 
equipment. If the inspected State Party determines it to be necessary, 
the inspected State Party shall conduct a fit test on masks brought with 
the inspection team. If the inspected State Party so requests on the 
basis of confirmed contamination or hazardous waste requirements or 
regulations, any such piece of equipment involved in the inspection 
activities will be left at the plant site at the end of the inspection. 
The inspection team reserves the right to destroy equipment left at the 
plant site or witness its destruction by agreed procedures. The 
inspected State Party will reimburse the Organization for the loss of 
the inspection team's equipment.
    10. In accordance with the Organization's Health and Safety Policy, 
the inspected State Party may provide available data based on detection 
and monitoring, to the agreed extent necessary to satisfy concerns that 
may exist regarding the health and safety of the inspection team.

                       Section 3. Confidentiality

    1. Matters related to confidentiality are governed by the 
Convention, including its Confidentiality Annex and paragraph 1 of 
Article VII, and the Organization's Policy on Confidentiality. The 
specific arrangements for implementing the provisions of the Convention 
and the Organization's Policy on Confidentiality in relation to the 
protection of confidential information at the plant site are contained 
in Attachment 3.
    2. Upon request, the inspected State Party will procure a container 
to be placed under joint seal to maintain documents that the

[[Page 165]]

inspection team, inspected State Party, or the plant site representative 
decides to keep as reference for future inspections. The inspected State 
Party shall be reimbursed by the Organization for the purchase of such 
container.
    3. All documents, including photographs, provided to the inspection 
team will be controlled as follows:
    (a) Information to be taken off-site. Information relevant to the 
finalization of the preliminary factual findings that the inspected 
State Party permits the inspection team to take off-site will be marked 
and numbered by the inspected State Party. In accordance with the 
inspected State Party's Procedures for Information Control, markings on 
the information will clearly state that the inspection team may take it 
off-site and will contain a classification pursuant to the 
Organization's Policy on Confidentiality at a level requested by the 
inspected State Party. The representative of the plant site will 
acknowledge the release of such information in writing prior to 
disclosure to the inspection team.
    (b) Information restricted for use on-site. Information that the 
inspected State Party permits the inspection team to use on-site during 
inspections but not take off-site will be marked and numbered by the 
inspected State Party. In accordance with the inspected State Party's 
Procedures for Information Control, markings on the information will 
clearly restrict its use on-site and will contain a classification 
pursuant to the Organization's Policy on Confidentiality at a level 
requested by the inspected State Party. The representative of the plant 
site will acknowledge the release of such information in writing prior 
to disclosure to the inspection team. Upon conclusion of the inspection, 
the inspection team shall return the information to the inspected State 
Party, and the plant site representative shall acknowledge receipt in 
writing. If so requested by the inspection team, the information can be 
placed in the joint sealed container for future reference.
    (c) Information restricted for use on-site and requiring direct 
supervision. Information that the inspected State Party permits the 
inspection team to use on-site only under direct supervision of the 
inspected State Party or the representative of the inspected plant site 
will be marked and numbered by the inspected State Party. In accordance 
with the inspected State Party's Procedures for Information Control, 
markings on the information will clearly restrict its use on-site under 
direct supervision and will contain a classification pursuant to the 
Organization's Policy on Confidentiality at a level requested by the 
inspected State Party. The representative of the plant site will 
acknowledge the release of such information in writing prior to 
disclosure to the inspection team. The inspection team shall return the 
information to the inspected State Party immediately upon completion of 
review and the plant site representative shall acknowledge receipt in 
writing. If so requested by the inspection team, the information can be 
placed in the joint sealed container for future reference.

                  Section 4. Media and Public Relations

    1. Inspection team media and public relations are governed by the 
Organization's Media and Public Relations Policy. The specific 
arrangements for the inspection team's contacts with the media or the 
public, if any, in relation to inspections of the plant site are 
contained in Attachment 4.

                     Section 5. Inspection Equipment

    1. As agreed between the inspected State Party and the Organization, 
the approved equipment listed in Part A of Attachment 5 and with which 
the inspected State Party has been given the opportunity to familiarize 
itself will, at the discretion of the Organization and on a routine 
basis, be used specifically for the Schedule 2 inspection. The equipment 
will be used in accordance with the Convention, the relevant decisions 
taken by the Conference of States Parties, and any agreed procedures 
contained in Attachment 5.
    2. The provisions of paragraph 1 above are without prejudice to 
paragraphs 27 to 29 of Part II of the Verification Annex.
    3. The items of equipment available on-site and not belonging to the 
Organization which the inspected State Party has volunteered to provide 
to the inspection team upon its request for use on-site during the 
conduct of inspections, together with any procedures for the use of such 
equipment, if required, any requested support which can be provided, and 
conditions for the provision of equipment are listed in Part B of 
Attachment 5. Prior to any use of such equipment, the inspection team 
may confirm that the performance characteristics of such equipment are 
consistent with those for similar Organization-approved equipment, or--
with respect to items of equipment which are not on the list of 
Organization-approved equipment--are consistent with the intended 
purpose for using such equipment.\2\
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    \2\ I.e., the inspection team may confirm that the performance 
characteristics of such equipment meet the technical requirements 
necessary to support the inspection task intended to be accomplished.
---------------------------------------------------------------------------

    4. Requests from the inspection team for the inspected State Party 
during the inspection to provide equipment mentioned in paragraph 3 
above shall be made in writing by an authorized member of the inspection 
team using the form contained in Attachment 5. The same procedure will 
also apply to other requests of the inspection team in

[[Page 166]]

accordance with paragraph 30 of Part II of the Verification Annex.
    5. Agreed procedures for the decontamination of any equipment are 
contained in Part C of Attachment 5.

                  Section 6. Pre-Inspection Activities

    1. The inspection team shall be given a pre-inspection briefing by 
the representatives of the plant site in accordance with paragraph 37 of 
Part II of the Verification Annex. The pre-inspection briefing shall 
include:
    (a) information on the plant site as described in Attachment 6;
    (b) health and safety specifications described in Section 2 above 
and detailed in Attachment 2;
    (c) any changes to the above-mentioned information since the last 
inspection; and
    (d) information on administrative and logistical arrangements 
additional to those contained in Attachment 11, if any, that shall apply 
during the inspection, as contained in Section 9.
    2. Any information about the plant site that the inspected State 
Party has volunteered to provide to the inspection team during the pre-
inspection briefing with indications as to which information may be 
transferred off-site is referenced in Part B of Attachment 6.

                  Section 7. Conduct of the Inspection

                        7.1 Standing Arrangements

    1. The inspection period shall begin immediately upon completion of 
the pre-inspection briefing unless agreed otherwise.
    2. Upon conclusion of the pre-inspection briefing, the inspection 
team leader shall provide to the designated representative of the 
inspected State Party a preliminary inspection plan to facilitate the 
conduct of the inspection.
    3. Arrangements for the conduct of a site tour, if any, are 
contained in Attachment 7 to this Agreement.
    4. Before commencement of inspection activities, the inspection team 
leader shall inform the representative of the inspected State Party 
about the initial steps to be taken in implementing the inspection plan. 
The plan will be adjusted by the inspection team as circumstances 
warrant throughout the inspection process in consultation with the 
inspected State Party as to its implementability in regard to paragraph 
40 of Part II of the Verification Annex.\3\
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    \3\ The activities of the inspection team shall be so arranged as to 
ensure the timely and effective discharge of its functions and the least 
possible inconvenience to the inspected State Party and disturbance to 
the plant site inspected. The inspection team shall avoid unnecessarily 
hampering or delaying the operation of the plant site and avoid 
affecting its safety. In particular, the inspection team shall not 
operate the plant site. If the inspection team considers that, to fulfil 
the mandate, particular operations should be carried out at the plant 
site, it shall request the designated representative of the plant site 
to have them performed.
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    5. The inspection team leader shall inform the representative of the 
inspected State Party during the inspection in a timely manner about 
each subsequent step to be taken by the inspection team in implementing 
the inspection plan. Without prejudice to paragraph 40 of Part II of the 
Verification Annex, this shall be done in time to allow the inspected 
State Party to arrange for the necessary measures to be taken to provide 
access and support to the inspection team as appropriate without causing 
unnecessary delay in the conduct of inspection activities.
    6. At the beginning of the inspection, the inspection team shall 
have the right to confirm the precise location of the plant site 
utilizing visual and map reconnaissance, a site diagram, or other 
suitable techniques.
    7. The inspection team shall, upon request of the inspected State 
Party, communicate with the personnel of the plant site only in the 
presence of or through a representative of the inspected State Party.
    8. The inspected State Party shall, upon request, provide a 
securable work space for the inspection team, including adequate space 
for the storage of equipment. The inspection team shall have the right 
to seal its work space. For ease of inspection, the inspected State 
Party will work with the plant site representative to provide work space 
at the plant site, if possible.

     7.2 Access to and Inspection of Areas, Buildings and Structures

    1. The focus of the inspection shall be the declared Schedule 2 
plant(s) within the declared plant site as referenced in Attachment 8. 
If the inspection team requests access to other parts of the plant site, 
access to these areas shall be granted in accordance with the obligation 
to provide clarification pursuant to paragraph 51 of Part II and 
paragraph 25 of Part VII of the Verification Annex, and in accordance 
with Attachment 8.
    2. Pursuant to paragraph 45 of Part II of the Verification Annex, 
the inspection team shall have unimpeded access to the declared Schedule 
2 plant(s) in accordance with the relevant Articles and Annexes of the 
Convention and Attachments 8, 9, and 10. Areas of the declared plant(s) 
likely to be inspected are mentioned in paragraph 28 of Part VII of the 
Verification Annex. Pursuant to Section C of Part X of the Verification 
Annex, the inspection team shall have managed access to

[[Page 167]]

the other areas of the plant site. Procedures for access to these areas 
are contained in Attachment 8.

        7.3 Access to and Inspection of Documentation and Records

    1. The agreed list of the documentation and records to be routinely 
made available for inspection purposes, mentioned in paragraph 26 of 
Part VII of the Verification Annex, to the inspection team by the 
inspected State Party during an inspection, as well as arrangements with 
regard to access to such records for the purpose of protecting 
confidential information, are contained in Attachment 9. Such 
documentation and records will be provided upon request.
    2. Only those records placed in the custody of the inspection team 
that are attached to the preliminary factual findings in accordance with 
Section 3 may leave the premises. Those records placed in the custody of 
the inspection team that are not attached to the preliminary factual 
findings must be retained in the on-site container or returned to the 
inspected State Party.

                        7.4 Sampling and Analysis

    1. Without prejudice to paragraphs 52 to 58 of Part II of the 
Verification Annex, procedures for sampling and analysis for 
verification purposes as mentioned in paragraph 27 of Part VII of the 
Verification Annex are contained in Attachment 10 of this Agreement.
    2. Sampling and analysis, for inspection purposes, may be carried 
out to check whether undeclared scheduled chemicals are detected. Each 
such sample will be split into a minimum of four parts at the request of 
the inspection team in accordance with Part C of Attachment 10. One part 
shall be analyzed in a timely manner on-site. The second part of the 
split sample may be controlled by the inspection team for future 
reference and, if necessary, analysis off-site at laboratories 
designated by the Organization. That part of the sample may be destroyed 
at any time in the future upon the decision of the inspection team but 
in any case no later than 60 days after it was taken. The third part may 
be retained by the inspected State Party. The fourth part may be 
retained by the plant site.
    3. Pursuant to paragraph 52 of the Part II of the Verification 
Annex, representatives of the inspected State Party or plant site shall 
take samples at the request of the inspection team in the presence of 
inspectors. The inspected State Party will inform the inspection team of 
the authorized plant site representative's \4\ determination of whether 
the sample shall be taken by representatives of the plant site or the 
inspection team or other individuals present. If inspectors are granted 
the right to take samples themselves in accordance with paragraph 52 of 
Part II of the Verification Annex, the relevant advance agreement 
between the inspection team and the inspected State Party shall be in 
writing. The representatives of the inspected State Party and the 
inspected plant site shall have the right to be present during sampling. 
Agreed conditions and procedures for such sample collection are 
contained in Part B of Attachment 10 to this Agreement.
---------------------------------------------------------------------------

    \4\ The authorized plant site representative is the owner or the 
operator, occupant or agent in charge of the premises being inspected.
---------------------------------------------------------------------------

    4. Plant site sampling equipment shall as a rule be used for taking 
samples required for the purposes of the inspection. This is without 
prejudice to the right of the inspection team pursuant to paragraph 27 
of Part II of the Verification Annex to use its own approved sampling 
equipment in accordance with paragraph 1 of Section 5 and Parts A and B 
of Attachment 5 to this Agreement.
    5. Should the inspection team request that a sample be taken and the 
inspected State Party be unable to accede or agree to the request, the 
inspected State Party will make every reasonable effort to satisfy the 
inspection team's concerns by other means to enable the inspection team 
to fulfil its mandate. The inspected State Party will provide a written 
explanation for its inability to accede or agree to the request. Any 
such response shall be supported by relevant document(s). The 
explanation of the inspected State Party shall be included in the 
preliminary factual findings.
    6. In accordance with paragraph 53 of Part II of the Verification 
Annex, where possible, the analysis of samples shall be performed on-
site and the inspection team shall have the right to perform on-site 
analysis of samples using approved equipment brought by it for the 
splitting, preparation, handling, analysis, integrity and transport of 
samples. The assistance that will be provided by the inspected State 
Party and the analysis procedures to be followed are contained in Part D 
of Attachment 10 to this Agreement.
    7. The inspection team may request the inspected State Party to 
perform the analysis in the inspection team's presence. The inspection 
team shall have the right to be present during any sampling and analysis 
conducted by the inspected State Party.
    8. The results of such analysis shall be reported in writing as soon 
as possible after the sample is taken.
    9. The inspection team shall have the right to request repeat 
analysis or clarification in connection with ambiguities.

[[Page 168]]

    10. If at any time, and for any reason, on-site analysis is not 
possible, the inspection team has the right to have sample(s) analyzed 
off-site at Organization-designated laboratories. In selecting such 
designated laboratories for the off-site analysis, the Organization will 
give due regard to requirements of the inspected State Party.
    11. Transportation of samples will be in accordance with the 
procedures outlined in Part E of Attachment 10.
    12. If at any time, the inspected State Party or plant site 
representative determines that inspection team on-site analysis 
activities are not in accordance with the facility agreement or agreed 
analysis procedures, or otherwise pose a threat to safety or 
environmental regulations or laws, the inspected State Party, in 
consultation with the plant site representative, will cease these on-
site analysis activities pending resolution. If both parties cannot 
agree to proceed with the analysis, the inspection team will document 
this in its preliminary factual findings.
    13. Conditions and procedures for the disposal of hazardous 
materials generated during sampling and on-site analysis during the 
inspection are contained in Part F of Attachment 10 to this Agreement.

                     7.5 Arrangements for Interviews

    1. The inspection team shall have the right, subject to applicable 
United States legal protections for individuals, to interview any plant 
site personnel in the presence of representatives of the inspected State 
Party with the purpose of establishing relevant facts in accordance with 
paragraph 46 of Part II of the Verification Annex and inspected State 
Party's policy and procedures. Agreed procedures for conducting 
interviews are contained in Attachment 12.
    2. The inspection team will submit to the inspected State Party 
names and/or positions of those desired for interviews. The requested 
individual(s) will be made available to the inspection team no later 
than 24 hours after submission of the formal request, unless agreed 
otherwise. The inspection team may also be requested to submit questions 
in writing prior to conducting interviews. The specific timing and 
location of interviews will be determined with the plant site in 
coordination with the inspected State Party and consistent with adequate 
notification of the interviewees, and minimizing the operation impacts 
on the plant site and individuals to be interviewed.
    3. The inspected State Party may recommend to the inspection team 
that interviews be conducted in either ``panel'' or individual formats. 
At a minimum, interviews will be conducted with a member of the plant 
site staff and an inspected State Party representative. Legal counsel 
may also be required to be present by the inspected State Party. The 
interview may be interrupted for consultation between the interviewee, 
the plant site representative, the inspected State Party representative, 
and legal counsel.
    4. The inspected State Party will have the right to restrict the 
content of interviews to information directly related to the mandate or 
purpose of the inspection.
    5. Outside the interview process and in discharging their functions, 
inspectors shall communicate with personnel of the plant site only 
through the representative(s) of the inspected State Party.

                           7.6 Communications

    1. In accordance with paragraph 44 of Part II of the Verification 
Annex, the inspection team shall have the right to communicate with the 
headquarters of the Technical Secretariat. For this purpose they may use 
their own, duly certified approved equipment, in accordance with 
paragraph 1 of Section 5. The representative of the inspected plant site 
retains the right to control the use of communications equipment in 
specific areas, building or structures if such use would be incompatible 
with applicable safety or fire regulations.
    2. In case the inspection team and the inspected State Party agree 
to use any of the inspected State Party's communications equipment, the 
list of such equipment and the provisions for its use are contained in 
Part B of Attachment 5 to this Agreement.
    3. The agreed means of communication between inspection team sub-
teams in accordance with paragraph 44 of Part II of the Verification 
Annex are contained in Part D of Attachment 5.

                             7.7 Photographs

    1. In accordance with the provisions of paragraph 48 of Part II of 
the Verification Annex, the Confidentiality Annex and inspected State 
Party's policy and procedures, the inspection team shall have the right 
to have photographs taken at their request by the representatives of the 
inspected State Party or the inspected plant site. One camera of the 
instant development type furnished by the inspection team or the 
inspected State Party shall be used for taking identical photographs in 
sequence. Cameras furnished by the inspection team will remain either in 
their work space or equipment storage area except when carried by 
inspection team members for a specific inspection activity. Cameras will 
only be used for specified inspection purposes. Personal cameras are not 
allowed to be taken to the plant site.
    2. Pursuant to the Confidentiality Annex, the inspected State Party, 
in consultation with the plant site representative, shall have the right 
to determine that contents of the photographs conform to the stated 
purpose of the photographs. The inspection team

[[Page 169]]

shall determine whether photographs conform to those requested and, if 
not, repeat photographs shall be taken. Photographs that do not meet the 
satisfaction of both sides will be destroyed by the inspected State 
Party in the presence of the inspection team. The inspection team, the 
inspected State Party and the plant site, if so requested, shall each 
retain one copy of every photograph. The copies shall be signed, dated, 
and classified, in accordance with Section 3, and note the location and 
subject of the photograph and carry the same identification number. 
Agreed procedures for photography are contained in Attachment 13.
    3. The representative of the inspected plant site has the right to 
object to the use of photographic equipment in specific areas, buildings 
or structures if such use would be incompatible with safety or fire 
regulations given the characteristics of the chemicals stored in the 
area in question. Restrictions for use are contained in Parts A and/or B 
of Attachment 5 to this Agreement. If the objection is raised due to 
safety concerns, the inspected State Party will, if possible, furnish 
photographic equipment that meets the regulations. If the use of 
photographic equipment is not permissible at all in specific areas, 
buildings or structures for the reasons stated above, the inspected 
State Party shall provide a written explanation of its objection to the 
inspection team leader. The explanation, along with the inspection team 
leader's comments will be included in the inspection team's preliminary 
factual findings.

             Section 8. Debriefing and Preliminary Findings

    1. In accordance with paragraph 60 of Part II of the Verification 
Annex, upon completion of an inspection the inspection team shall meet 
with representatives of the inspected State Party and the personnel 
responsible for the inspection site to review the preliminary findings 
of the inspection team and to clarify any ambiguities. The inspection 
team shall provide to the representatives of the inspected State Party 
its preliminary findings in written form according to a standardized 
format, together with a list of any samples and copies of written 
information and data gathered and other material to be taken off-site. 
The document shall be signed by the head of the inspection team. In 
order to indicate that he has taken notice of the content of this 
document, the representative of the inspected State Party shall 
countersign the document. The meeting shall be completed not later than 
24 hours after the completion of the inspection.
    2. The document on preliminary findings shall also include, inter 
alia, the list of results of analysis, if conducted on-site, records of 
seals, and copies of photographs to be retained by the inspection team. 
It will be prepared in accordance with the preliminary findings format 
referenced in Annex 5. Any substantive changes to this format will be 
made only after consultation with the inspected State Party.
    3. Before the conclusion of the debriefing, the inspected State 
Party may provide comments and clarifications to the inspection team on 
any issue related to the conduct of the inspection. The inspection team 
shall provide to the representative of the inspected State Party its 
preliminary findings in written form sufficiently prior to the 
conclusion of the debriefing to permit the inspected State Party to 
prepare any comments and clarifications. The inspected State Party's 
written comments and clarifications shall be attached to the document on 
preliminary findings.
    4. The inspection team shall depart from the site upon the 
conclusion of the meeting on preliminary findings.

                 Section 9. Administrative Arrangements

    1. The inspected State Party shall provide or arrange for the 
provision of the amenities listed in detail in Attachment 11 to the 
inspection team in a timely manner throughout the duration of the 
inspection. The inspected State Party shall be reimbursed by the 
Organization for such costs incurred by the inspection team, unless 
agreed otherwise.
    2. Requests from the inspection team for the inspected State Party 
to provide or arrange amenities shall be made in writing by an 
authorized member of the inspection team \5\ using the form contained in 
Attachment 11. Requests shall be made as soon as the need for amenities 
has been identified. The provision of such requested amenities shall be 
certified in writing by the authorized member of the inspection team. 
Copies of all such certified requests shall be kept by both parties.
---------------------------------------------------------------------------

    \5\ The name of the authorized member(s) of the inspection team 
should be communicated to the inspected State Party no later than at the 
Point of Entry.
---------------------------------------------------------------------------

    3. The inspection team has the right to refuse extra amenities that 
in its view are not needed for the conduct of the inspection.

                         Section 10. Liabilities

    1. Any claim by the inspected State Party against the Organization 
or by the Organization against the inspected State Party in respect of 
any alleged damage or injury resulting from inspections at the plant 
site in accordance with this Agreement, without prejudice to paragraph 
22 of the Confidentiality Annex, shall be settled in accordance with 
international law and, as appropriate, with the provisions of Article 
XIV of the Convention.

[[Page 170]]

                    Section 11. Status of Attachments

    1. The Attachments form an integral part of this Agreement. Any 
reference to the Agreement includes the Attachments. However, in case of 
any inconsistency between this Agreement and any Attachment, the 
sections of the Agreement shall prevail.

            Section 12. Amendments, Modifications and Updates

    1. Amendments to the sections of this Agreement may be proposed by 
either Party and shall be agreed to and enter into force under the same 
conditions as provided for under paragraph 1 of Section 14.
    2. Modifications to the Attachments of this Agreement, other than 
Attachment 1 and Part B of Attachment 5, may be agreed upon at any time 
between the representative of the Organization and the representative of 
the inspected State Party, each being specifically authorized to do so. 
The Director-General shall inform the Executive Council about any such 
modifications. Each Party to this Agreement may revoke its consent to a 
modification not later than four weeks after it had been agreed upon. 
After this time period the modification shall take effect.
    3. The inspected State Party will update Part A of Attachment 1 and 
Part B of Attachment 5, and Attachment 6 as necessary for the effective 
conduct of inspections. The Organization will update Part B of 
Attachment 1 and Annex 5, subject to paragraph 2 of Section 8, as 
necessary for the effective conduct of inspections.

                   Section 13. Settlement of Disputes

    1. Any dispute between the Parties that may arise out of the 
application or interpretation of this Agreement shall be settled in 
accordance with Article XIV of the Convention.

                      Section 14. Entry into Force

    1. This Agreement shall enter into force after approval by the 
Executive Council and signature by the two Parties. If the inspected 
State Party has additional internal requirements, it shall so notify the 
Organization in writing by the date of signature. In such cases, this 
Agreement shall enter into force on the date that the inspected State 
Party gives the Organization written notification that its internal 
requirements for entry into force have been met.

                  Section 15. Duration and Termination.

    1. This Agreement shall cease to be in force when the provisions of 
paragraph 12 of Part VII of the Verification Annex no longer apply to 
this plant site, except if the continuation of the Agreement is agreed 
by mutual consent of the Parties.

    Done at ------ in ------ copies, in English, each being equally 
authentic.\6\
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    \6\ The language(s) to be chosen by the inspected State Party from 
the languages of the Convention shall be the same as the language(s) 
referred to in paragraph 6 of Section 1 of this Agreement.
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                               Attachments

    The following attachments shall be completed where applicable.

Attachment 1: General Factors for the Conduct of Inspections
Attachment 2: Health and Safety Requirements and Procedures
Attachment 3: Specific Arrangements in Relation to the Protection of 
Confidential Information at the Plant Site
Attachment 4: Arrangements for the Inspection Team's Contacts with the 
Media or the Public
Attachment 5: Inspection Equipment
Attachment 6: Information on the Plant Site Provided in Accordance with 
Section 6
Attachment 7: Arrangements for Site Tour
Attachment 8: Access to the Plant Site in Accordance with Section 7.2.
Attachment 9: Records Routinely Made Available to the Inspection Team at 
the Plant Site
Attachment 10: Sampling and Analysis for Verification Purposes
Attachment 11: Administrative Arrangements
Attachment 12: Agreed Procedures for Conducting Interviews
Attachment 13: Agreed Procedures for Photography

      Attachment 1--General Factors for the Conduct of Inspections

    Part A. To Be Provided and Updated by the inspected State Party:
    1. Plant site: --------
    (a) working hours: 7 -------- hrs to -------- hrs (local 
time) (days)
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    \7\ All references to time use a 24 hour clock.
---------------------------------------------------------------------------

(b) working days:_______________________________________________________
(c) holidays or other non-working days:_________________________________
________________________________________________________________________
    2. Schedule 2 plant(s):
    (a) working hours, if applicable: -------- hrs to -------- hrs 
(days)
(b) working days:_______________________________________________________
(c) holidays or other non-working days:_________________________________
________________________________________________________________________
    3. Inspection activities which could/could not 8 be 
supported during non-working hours with notation of times and 
activities:
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    \8\ Choose one option.
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________________________________________________________________________
    4. Any other factors that could adversely affect the effective 
conduct of inspections:
    (a) inspection requests:

[[Page 171]]

    Should the plant site withhold consent to an inspection, the 
inspected State Party shall take all appropriate action under its law to 
obtain a search warrant from a United States magistrate judge. Upon 
receipt of a warrant, the inspected State Party will accede to the 
Organization's request to conduct an inspection. Such inspection will be 
carried out in accordance with the terms and conditions of the warrant.
    (b) other:
________________________________________________________________________
________________________________________________________________________
    5. Other: Notification procedures are contained in Annex 6.
    Part B. To Be Provided and Updated by the Organization:
1. Inspection frequency:________________________________________________
    2. Inspection intensity:
(a) maximum estimated period of inspection (for planning purposes): 
9____________________________________________________________
---------------------------------------------------------------------------

    \9\ Any figure indicated is without prejudice to paragraph 29 of 
Part VII of the Verification Annex.
---------------------------------------------------------------------------

(b) approximate inspection team size:___________________________________
(c) estimated volume and weight of equipment to be brought on-site:_____

       Attachment 2--Health and Safety Requirements and Procedures

    Part A. Basic Principles:
    1. Applicable health and safety regulations of the Organization, 
with agreed variations from strict implementation, if any:
________________________________________________________________________
    2. Health and safety regulations applicable at the plant site:
    (a) federal regulations:
________________________________________________________________________
    (b) state regulations:
________________________________________________________________________
    (c) local regulations:
________________________________________________________________________
    (d) plant site regulations:
________________________________________________________________________
    3. Health and safety requirements and regulations agreed between the 
inspected State Party and the Organization:
________________________________________________________________________
    Part B. Detection and Monitoring:
    1. Applicable specific safety standards for workplace chemical 
exposure limits and/or concentrations which should be observed during 
the inspection, if any:
________________________________________________________________________
    2. Procedures, if any, for detection and monitoring in accordance 
with the Organization's Health and Safety Policy, including data to be 
collected by, or provided to, the inspection team:
________________________________________________________________________
    Part C. Protection:
    1. Protective equipment to be provided by the Organization and 
agreed procedures for equipment certification and use, if required:
________________________________________________________________________
    2. Protective equipment to be provided by the inspected State Party, 
and agreed procedures, personnel training, and personnel qualification 
tests and certification required; and agreed procedures for use of the 
equipment:
________________________________________________________________________
    Part D. Medical Requirements:
    1. Applicable medical standards of the inspected State Party and, in 
particular, the inspected plant site:
________________________________________________________________________
    2. Medical screening procedures for members of the inspection team:
________________________________________________________________________
    3. Agreed medical assistance to be provided by the inspected State 
Party:
________________________________________________________________________
    4. Emergency medical evacuation procedures:
________________________________________________________________________
    5. Agreed additional medical measures to be taken by the inspection 
team:
________________________________________________________________________
    6. Procedures for emergency response to chemical casualties of the 
inspection team:
________________________________________________________________________
    Part E. Modification of Inspection Activities:
    1. Modification of inspection activities due to health and safety 
reasons, and agreed alternatives to accomplish the inspection goals:
________________________________________________________________________

  Attachment 3--Specific Arrangements in Relation to the Protection of 
               Confidential Information at the Plant Site

    Part A. Inspected State Party's Procedures for Designating and 
Classifying Documents Provided to the Inspection Team:
    See Annex 3 for the Organization's Policy on Confidentiality and 
Annex 7 for the inspected State Party's Procedures for Information 
Control.
    Part B. Specific Procedures for Access by the Inspection Team to 
Confidential Areas or Materials:
________________________________________________________________________
    Part C. Procedures in Relation to the Certification by the 
Inspection Team of the Receipt of Any Documents Provided by the 
Inspected Plant Site:
________________________________________________________________________
________________________________________________________________________
    Part D. Storage of Confidential Documents at the Inspected Plant 
Site:
    1. Procedures in relation to the storage of confidential documents 
or use of a dual control container on-site, if applicable:
    Information under restrictions provided for in the Confidentiality 
Annex and as such to be kept in the dual control container under joint 
seal shall be available to the inspection team leader and/or an 
inspector designated

[[Page 172]]

by him from the beginning of the pre-inspection briefing until the end 
of the debriefing upon completion of the inspection in accordance with 
Section 3. If copies of information under dual control are permitted to 
be attached to the preliminary factual findings by the inspected State 
Party, they shall be made by the inspected State Party and retained 
under dual control until the debriefing. Should the medium on which such 
information is recorded become unusable, it shall be replaced without 
delay by the representative of the inspected State Party.
 2. The dual control container will be placed___________________________
________________________________________________________________________
    3. Information meeting the strict requirements for restriction 
pursuant to the Confidentiality Annex, and to be maintained in the dual 
control container located at the inspected plant site between 
inspections is listed below:

----------------------------------------------------------------------------------------------------------------
                                                                                                  Reasons for
            Reference                Type of data       Recorded media          Volume           restrictions/
                                                                                                    remarks
----------------------------------------------------------------------------------------------------------------
 
 
 
----------------------------------------------------------------------------------------------------------------

    Part E. Procedures for the Removal Off-Site of Any Written 
Information, Data, and Other Materials Gathered by the Inspection Team:
________________________________________________________________________
    Part F. Procedures for Providing the Representatives of the 
inspected State Party with Copies of Written Information, Inspector's 
Notebooks, Data and Other Material Gathered by the Inspection Team:
________________________________________________________________________
    Part G. Other Arrangements, If Any:
    1. Unless specified otherwise, all plant site information shall be 
returned to the inspected State Party at the completion of the 
inspection. No copies of plant site information shall be made in any 
manner by the inspection team or the Organization.
    2. Plant site information shall not be released to the public, other 
States Parties, or the media without the specific permission of the 
inspected State Party, after consultation with the plant site.
    3. Plant site information shall not be transmitted, copied or 
retained electronically without the specific permission of the inspected 
State Party after consultation with the plant site. All transmissions of 
information off-site shall be done in the presence of the inspected 
State Party.
    4. Information not relevant to the purpose of the inspection will be 
purged from documents, photographs, etc. prior to release to the 
inspection team.

 Attachment 4--Arrangements for the Inspection Team's Contacts with the 
                           Media or the Public

                   Attachment 5--Inspection Equipment

    Part A: List of Equipment:

----------------------------------------------------------------------------------------------------------------
                                  Agreed procedures
                                       for use
                                --------------------    Indication of                           Alternative for
  Item of approved inspection         Nature of       reason(s) (safety,   Special handling   meeting inspection
           equipment               restrictions(s)     confidentiality,       or storage      requirement(s), if
                                  (location, time,          etc.)            requirements     so required by the
                                 periods, etc.), if                                             inspection team
                                         any
----------------------------------------------------------------------------------------------------------------
 
 
----------------------------------------------------------------------------------------------------------------

    Part B. Equipment which the inspected State Party Has Volunteered to 
Provide:

----------------------------------------------------------------------------------------------------------------
                                                                Support to be provided,    Conditions (timing,
          Item of equipment               Procedures for use          if required             costs, if any)
----------------------------------------------------------------------------------------------------------------
 
 
----------------------------------------------------------------------------------------------------------------

    Part C. Procedures for the Decontamination of Equipment:

[[Page 173]]



------------------------------------------------------------------------
      Item of equipment                    Procedures for use
------------------------------------------------------------------------
 
 
------------------------------------------------------------------------

    Part D. Means of Communication between Inspection Team Sub-Teams:
________________________________________________________________________

   Request for and Certification of Equipment Available on Site To Be 
          Provided in Accordance With Paragraph 3 of Section 5

Date:___________________________________________________________________
Plant Site:_____________________________________________________________
Inspection number:______________________________________________________
Name of the authorized member of the inspection team:___________________
Type and number of item(s) of equipment requested:______________________
Approval of the request by inspected State Party:_______________________
Comments on the request by the inspected State Party:___________________
Indication of the costs, if any, for the use of the equipment requested/
volunteered:
________________________________________________________________________
Certification of the authorized member of the inspection team that the 
requested item(s) of equipment have been provided:
________________________________________________________________________
Comments, if any, by the authorized member of the inspection team in 
regard to the equipment provided:
________________________________________________________________________
Name and signature of the authorized member of the inspection team:_____
________________________________________________________________________
Name and signature of the representative of the inspected State Party:__
________________________________________________________________________

Attachment 6--Information on the Plant Site Provided in Accordance With 
                                Section 6

Part A. Topics of Information for the Pre-Inspection Briefing:
________________________________________________________________________
    Part B. Any Information about the Plant Site that the inspected 
State Party Volunteers to Provide to the Inspection Team during the Pre-
Inspection Briefing and which May Be Transferred Off-Site:
________________________________________________________________________

                Attachment 7--Arrangements for Site Tour

    The inspected State Party, in consultation with the plant site, may 
provide a site tour at the request of the inspection team. Such tour 
shall take no more than 2 hours. If a site tour is conducted, the 
inspected State Party may provide explanations to the inspection team 
during the site tour.

  Attachment 8--Access to the Plant Site in Accordance With Section 7.2

    Part A. Areas of the Declared Plant Site to which Inspectors Are 
Granted Access (i.e., detail the areas, equipment, and computers):
    1. Declared Plant:10,11
---------------------------------------------------------------------------

    \10\ Plant means a relatively self-contained area, structure or 
building containing one or more units with auxiliary and associated 
infrastructure, such as:
    11 Areas to be inspected may include:
    (a) small administrative section;
    (b) storage/handling areas for feedstock and products;
    (c) effluent/waste handling/treatment area;
    (d) control/analytical laboratory;
    (e) first aid service/related medical section;
    (f) records associated with the movement into, around and from the 
site, of declared chemicals and their feedstock or product chemicals 
formed from them, as appropriate.
    (a) areas where feed chemicals (reactants) are delivered or stored;
    (b) areas where manipulative processes are performed upon the 
reactants prior to addition to the reaction vessels;
    (c) feed lines as appropriate from the areas referred to in 
subparagraph (a) or subparagraph (b) to the reaction vessels together 
with any associated valves, flow meters, etc.;
    (d) the external aspect of the reaction vessels and ancillary 
equipment;
    (e) lines from the reaction vessels leading to long-or short-term 
storage or to equipment further processing the declared Schedule 2 
chemicals;
    (f) control equipment associated with any of the items under 
subparagraphs (a) to (e);
    (g) equipment and areas for waste and effluent handling;
    (h) equipment and areas for disposition of chemicals not up to 
specification.
---------------------------------------------------------------------------

    2. Declared Plant Site: 12
---------------------------------------------------------------------------

    \12\ Plant Site means the local integration of one or more plants, 
with any intermediate administrative levels, which are under one 
operational control, and includes common infrastructure, such as:
    (a) administration and other offices;
    (b) repair and maintenance shops;
    (c) medical center;
    (d) utilities;
    (e) central analytical laboratory;
    (f) research and development laboratories;
    (g) central effluent and waste treatment area; and
    (h) warehouse storage.

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

[[Page 174]]

    Part B. Arrangements with Regard to the Scope of the Inspection 
Effort in Agreed Areas Referenced in Part A: 13
---------------------------------------------------------------------------

    \13\ List the areas, equipment, and computers, if any, that are not 
relevant to the inspection mandate or that contain confidential business 
information that does not need to be divulged in order to comply with 
the inspection mandate.
---------------------------------------------------------------------------

________________________________________________________________________

Attachment 9--Records Routinely Made Available to the Inspection Team at 
                      the Plant Site: 14
---------------------------------------------------------------------------

    \14\ Some illustrative examples of records and data to be detailed 
are given below. The actual list will be dependent on the specifics of 
the inspection site. Information about the format and language in which 
records are kept at the plant site should be mentioned. It is understood 
that confidential information not related to the implementation of the 
Convention, such as prices, will be excluded by the State Party from 
scrutiny.
    (a) inventory and accountancy records in relation to the production, 
processing or consumption of the declared Schedule 2 chemicals and their 
storage or transportation on to or off the site;
    (b) operational records for the unit(s) producing, processing or 
consuming Schedule 2 chemicals (units) (batch cards, log books);
    (c) Schedule 2 plant(s) dispatch records within the plant site and 
off-site dispatches;
    (d) Schedule 2 plant(s) maintenance schedule records;
    (e) Schedule 2 plant(s) waste disposal records;
    (f) Schedule 2 plant(s) (unit) calibration records;
    (g) Schedule 2 plant(s) sales reports, as appropriate;
    (h) sales or transfers, whether to another industry, trader, or 
other destination, and if possible, of final product types;
    (i) data on direct exports/imports and to/from which States;
    (j) other shipments, including specification of these other 
purposes; and (k) other.
---------------------------------------------------------------------------

     Attachment 10--Sampling and Analysis for Verification Purposes

    Part A. Agreed Sampling Points Chosen with Due Consideration to 
Existing Sampling Points Used by the Plant(s) Operator(s):
________________________________________________________________________
    Part B. Procedures for Taking Samples:
________________________________________________________________________
    Part C. Procedures for Sample Handling and Sample Splitting:
________________________________________________________________________
    Part D. Procedures for Sample Analysis:
________________________________________________________________________
    Part E. Procedures for Transporting Samples:
________________________________________________________________________
    Part F. Arrangements in Regard to the Payment of Costs Associated 
with the Disposal or Removal by the inspected State Party of Hazardous 
Waste Generated during Sampling and On-Site Analysis during the 
Inspection:
________________________________________________________________________

               Attachment 11--Administrative Arrangements

    Part A. The Amenities Detailed Below Shall Be Provided to the 
Inspection Team by the inspected State Party, Subject to Payment as 
Indicated in Part B Below:

1. International and local official communication (telephone, fax), 
including calls/faxes between site and headquarters:
________________________________________________________________________
2. Vehicles:____________________________________________________________
3. Working room, including adequate space for the storage of equipment:
________________________________________________________________________
4. Lodging:_____________________________________________________________
5. Meals:_______________________________________________________________
6. Medical care:________________________________________________________
7. Interpretation Services:
(a) number of interpreters:_____________________________________________
(b) estimated interpretation time:______________________________________
(c) languages:__________________________________________________________
8. Other:
________________________________________________________________________
    Part B. Distribution of Costs for Provision of Amenities by the 
inspected State Party (check one option for each amenity provided as 
appropriate):

----------------------------------------------------------------------------------------------------------------
                                             To be paid by the       To be paid by the
                  To be paid directly by    inspection team on     inspected State Party
 Paragraphs 1-8   the Organization after       behalf of the         and subsequently        To be paid by the
in Part A above       the inspection        Organization during      reimbursed by the     inspected State Party
                                           the in-country period       Organization
----------------------------------------------------------------------------------------------------------------
             1
             2
             3
             4
             5
             6
             7
             8
----------------------------------------------------------------------------------------------------------------


[[Page 175]]

    Part C. Other Arrangements.
    1. Number of sub-teams (consisting of no less than two inspectors 
per sub-team) to be accommodated: ------------

  Request for and Certification of Amenities to be Provided or Arranged

Date:___________________________________________________________________
Plant site:_____________________________________________________________
Inspection number:______________________________________________________
Category of amenities requested:________________________________________
Description of amenities requested:_____________________________________
Approval of the request by the inspected State Party:___________________
Comments on the request by the inspected State Party:
________________________________________________________________________
Indication of the costs for the amenities requested:____________________
Certification of the authorized member of the inspection team that the 
requested amenities have been provided:
________________________________________________________________________
Comments by the authorized member of the inspection team in regard to 
the quality of the amenities provided:
________________________________________________________________________
Name and signature of the authorized member of the inspection team:
________________________________________________________________________
Name and signature of the representative of the inspected State Party:
________________________________________________________________________

       Attachment 12--Agreed Procedures for Conducting Interviews

________________________________________________________________________
________________________________________________________________________

            Attachment 13--Agreed Procedures for Photography

                                 Annexes

  Note: These annexes, inter alia, can be attached if requested by the 
                          inspected State Party

Annex 1: Organization's Media and Public Relations Policy
Annex 2: Organization's Health and Safety Policy and Regulations
Annex 3: Organization's Policy on Confidentiality
Annex 4: Plant Site Declaration
Annex 5: Preliminary and Final Inspection Report Formats
Annex 6: Inspected State Party's Procedures for Inspection Notification
Annex 7: Inspected State Party's Procedures for Information Control



PART 717_CLARIFICATION OF POSSIBLE NON-COMPLIANCE WITH THE CONVENTION; 
CHALLENGE INSPECTION PROCEDURES--Table of Contents




Sec.
717.1 Clarification procedures; challenge inspection requests pursuant 
          to Article IX of the Convention.
717.2 Challenge inspections.
717.3 Samples.
717.4 Report of inspection-related costs.

    Authority: 22 U.S.C. 6701 et seq., 2681; E.O. 13128, 64 FR 36703.

    Source: 64 FR 73801, Dec. 30, 1999, unless otherwise noted.



Sec.  717.1  Clarification procedures; challenge inspection requests 
pursuant to Article IX of the Convention.

    (a) Article IX of the Convention sets forth procedures for 
clarification, between States Parties, of issues about compliance with 
the Convention. If States Parties are unable to resolve such issues 
through consultation between themselves or through the Organization for 
the Prohibition of Chemical Weapons (OPCW), a State Party may request 
the OPCW to conduct an on-site challenge inspection of any facility or 
location in the territory or in any other place under the jurisdiction 
or control of any other State Party. Such an on-site challenge 
inspection request shall be for the sole purpose of clarifying and 
resolving any questions concerning possible non-compliance with the 
Convention.
    (b) Any person or facility subject to the CWCR (parts 710 through 
722 of this subchapter) must, within five working days, provide 
information required by the Department of Commerce pursuant to an 
Article IX clarification request from another State Party, or the OPCW, 
concerning possible non-compliance with the reporting, declaration, 
notification, or inspection requirements set forth in parts 712 through 
716 of this subchapter.



Sec.  717.2  Challenge inspections.

    Any person or facility subject to the CWCR (see Sec.  710.2 of this 
subchapter), whether or not required to submit declarations or reports, 
may be subject to

[[Page 176]]

a challenge inspection by the OPCW concerning possible non-compliance 
with the requirements of the Convention. The Department of Commerce will 
host and escort the international Inspection Team for all challenge 
inspections of persons or facilities subject to the CWCR concerning 
possible non-compliance with the requirements set forth in parts 712 
through 716 of this subchapter.
    (a) Warrants. In instances where consent is not provided by the 
owner, operator, occupant or agent in charge of the facility or 
location, the Department of Commerce will assist the Department of 
Justice in seeking a criminal warrant as provided by the Act. The 
existence of a facility agreement does not in any way limit the right of 
the operator of the facility to withhold consent to a challenge 
inspection request.
    (b) Notification of challenge inspection. Challenge inspections may 
be made only upon issuance of written notice by the United States 
National Authority (USNA) to the owner and to the operator, occupant or 
agent in charge of the premises. The Department of Commerce will provide 
Host Team notification to the inspection point of contact if such 
notification is deemed appropriate. If the United States is unable to 
provide actual written notice to the owner, operator, or agent in 
charge, the Department of Commerce, or if the Department of Commerce is 
unable, another appropriate agency, may post notice prominently at the 
plant, plant site or other facility or location to be inspected.
    (1) Timing. The OPCW will notify the USNA of a challenge inspection 
not less than 12 hours before the planned arrival of the Inspection Team 
at the U.S. point of entry. Written notice will be provided to the owner 
and to the operator, occupant, or agent in charge of the premises at any 
appropriate time determined by the USNA after receipt of notification 
from the OPCW Technical Secretariat.
    (2)(i) Content of notice. The notice shall include all appropriate 
information provided by the OPCW to the United States National Authority 
concerning:
    (A) The type of inspection;
    (B) The basis for the selection of the facility or locations for the 
type of inspection sought;
    (C) The time and date that the inspection will begin and the period 
covered by the inspection;
    (D) The names and titles of the inspectors; and
    (E) All appropriate evidence or reasons provided by the requesting 
State Party for seeking the inspection.
    (ii) In addition to appropriate information provided by the OPCW in 
its notification to the USNA, the Department of Commerce's Host Team 
notification to the facility or plant site will state whether an advance 
team is available to assist the site in preparation for the inspection. 
If an advance team is available, facilities that request advance team 
assistance are not required to reimburse the U.S. Government for costs 
associated with these activities.
    (c) Period of inspection. Challenge inspections will not exceed 84 
hours, unless extended by agreement between the Inspection Team and the 
Host Team Leader.
    (d) Scope and conduct of inspections. (1) General. Each inspection 
shall be limited to the purposes described in this section and conducted 
in the least intrusive manner, consistent with the effective and timely 
accomplishment of its purpose as provided in the Convention.
    (2) Scope of inspections. If an owner, operator, occupant, or agent 
in charge of a facility or location consents to a challenge inspection, 
the inspection will be conducted in accordance with the provisions of 
Article IX and applicable provisions of the Verification Annex of the 
Convention. If consent is not granted, the inspection will be conducted 
in accordance with a criminal warrant, as provided by the Act, and in 
accordance with the provisions of Article IX and applicable provisions 
of the Verification Annex of the Convention. A challenge inspection will 
also be conducted in accordance with a facility agreement, if a facility 
agreement has been concluded for the subject facility, to the extent the 
terms of the facility agreement are relevant to the challenge inspection 
request.

[[Page 177]]

    (3) Hours of inspections. Consistent with the provisions of the 
Convention, the Host Team will ensure, to the extent possible, that each 
inspection is commenced, conducted, and concluded during ordinary 
working hours, but no inspection shall be prohibited or otherwise 
disrupted from commencing, continuing or concluding during other hours.
    (4) Health and safety regulations and requirements. In carrying out 
their activities, the Inspection Team and Host Team shall observe 
federal, state, and local health and safety regulations and health and 
safety requirements established at the inspection site, including those 
for the protection of controlled environments within a facility and for 
personal safety.



Sec.  717.3  Samples.

    The owner, operator, occupant or agent in charge of a facility or 
location must provide a sample, as provided for in the Convention and 
consistent with requirements set forth by the Director of the United 
States National Authority in 22 CFR part 103.



Sec.  717.4  Report of inspection-related costs.

    Pursuant to section 309(b)(5) of the Act, any facility that has 
undergone any inspections pursuant to this subchapter during a given 
calendar year must report to BIS within 90 days of an inspection on its 
total costs related to that inspection. Although not required, such 
reports should identify categories of costs separately if possible, such 
as personnel costs (production-line, administrative, legal), costs of 
producing records, and costs associated with shutting down chemical 
production or processing during inspections, if applicable. This 
information should be reported to BIS on company letterhead at the 
address given in Sec.  716.6(d) of this subchapter, with the following 
notation:

    ``ATTN: Report of Inspection-related Costs.''



PART 718_CONFIDENTIAL BUSINESS INFORMATION--Table of Contents




Sec.
718.1 Definition.
718.2 Identification of confidential business information.
718.3 Disclosure of confidential business information.

Supplement No. 1 to Part 718--Confidential Business Information Declared 
          or Reported

    Authority: 22 U.S.C. 6701 et seq.; E.O. 13128, 64 FR 36703.

    Source: 64 FR 73802, Dec. 30, 1999, unless otherwise noted.



Sec.  718.1  Definition.

    The Chemical Weapons Convention Implementation Act of 1998 (``the 
Act'') defines confidential business information as information included 
in categories specifically identified in sections 103(g)(1) and 
304(e)(2) of the Act and other trade secrets as follows:
    (a) Financial data;
    (b) Sales and marketing data (other than shipment data);
    (c) Pricing data;
    (d) Personnel data;
    (e) Research data;
    (f) Patent data;
    (g) Data maintained for compliance with environmental or 
occupational health and safety regulations;
    (h) Data on personnel and vehicles entering and personnel passenger 
vehicles exiting the facility;
    (i) Any chemical structure;
    (j) Any plant design, process, technology or operating method;
    (k) Any operating requirement, input, or result that identifies any 
type or quantity of chemicals used, processed or produced;
    (l) Any commercial sale, shipment or use of a chemical; or
    (m) Information that qualifies as a trade secret under 5 U.S.C. 
552(b)(4) (Freedom of Information Act), provided such trade secret is 
obtained from a U.S. person or through the U.S. Government.

[[Page 178]]



Sec.  718.2  Identification of confidential business information.

    (a) General. Certain confidential business information submitted to 
BIS in declarations and reports does not need to be specifically 
identified and marked by the submitter, as described in paragraph (b) of 
this section. Other confidential business information submitted to BIS 
in declarations and reports and confidential business information 
provided to the Host Team during inspections must be identified by the 
inspected facility so that the Host Team can arrange appropriate marking 
and handling.
    (b) Confidential business information contained in declarations and 
reports. (1) BIS has identified those data fields on the declaration and 
report forms that request ``confidential business information'' as 
defined by the Act. These data fields are identified in the table 
provided in Supplement No. 1 to this part.
    (2) You must specifically identify in a cover letter submitted with 
your declaration or report any additional information on a declaration 
or report form (i.e., information not provided in one of the data fields 
listed in the table included in Supplement No. 1 to this part), 
including information provided in attachments to Form A or Form B, that 
you believe is confidential business information, as defined by the Act, 
and must describe how disclosure would likely result in competitive 
harm.

    Note to paragraph (b):
    BIS has also determined that descriptions of Schedule 1 facilities 
submitted with Initial Declarations as attachments to Form A contain 
confidential business information, as defined by the Act.

    (c) Confidential business information contained in notifications. 
Information contained in advance notifications of exports and imports of 
Schedule 1 chemicals is not subject to the confidential business 
information provisions of the Act. You must identify information in your 
notifications of Schedule 1 imports that you consider to be privileged 
and confidential, and describe how disclosure would likely result in 
competitive harm. See Sec.  718.3(b) for provisions on disclosure to the 
public of such information by the U.S. Government.
    (d) Confidential business information related to inspections 
disclosed to, reported to, or otherwise acquired by, the U.S. 
Government. (1) During inspections, certain confidential business 
information, as defined by the Act, may be disclosed to the Host Team. 
Facilities being inspected are responsible for identifying confidential 
business information to the Host Team, so that if it is disclosed to the 
Inspection Team, appropriate marking and handling can be arranged, in 
accordance with the provisions of the Convention (see Sec.  
718.3(c)(1)(ii)). Confidential business information not related to the 
purpose of an inspection or not necessary for the accomplishment of an 
inspection, as determined by the Host Team, may be removed from sight, 
shrouded, or otherwise not disclosed.
    (2) Before or after inspections, confidential business information 
related to an inspection that is contained in any documents or that is 
reported to, or otherwise acquired by, the U.S. Government, such as 
facility information for pre-inspection briefings, facility agreements, 
and inspection reports, must be identified by the facility so that it 
may be appropriately marked and handled. If the U.S. Government creates 
derivative documents from such documents or reported information, they 
will also be marked and handled as confidential business information.



Sec.  718.3  Disclosure of confidential business information.

    (a) General. Confidentiality of information will be maintained by 
BIS consistent with the non-disclosure provisions of the Act, the Export 
Administration Regulations (15 CFR parts 730 through 799), the 
International Traffic in Arms Regulations (22 CFR parts 120 through 
130), and applicable exemptions under the Freedom of Information Act, as 
appropriate.
    (b) Disclosure of confidential business information contained in 
notifications. Information contained in advance notifications of exports 
and imports of Schedule 1 chemicals is not subject to the confidential 
business information provisions of the Act. Disclosure of such 
information will be in accordance with the provisions of the relevant

[[Page 179]]

statutory and regulatory authorities as follows:
    (1) Exports of Schedule 1 chemicals. Confidentiality of all 
information contained in these notifications will be maintained 
consistent with the non-disclosure provisions of the Export 
Administration Regulations (15 CFR parts 730 through 799), the 
International Traffic in Arms Regulations (22 CFR parts 120 through 
130), and applicable exemptions under the Freedom of Information Act, as 
appropriate; and
    (2) Imports of Schedule 1 chemicals. Confidentiality of information 
contained in these notifications will be maintained pursuant to 
applicable exemptions under the Freedom of Information Act.
    (c) Disclosure of confidential business information pursuant to 
Sec.  404(b) of the Act. (1) Disclosure to the Organization for the 
Prohibition of Chemical Weapons (OPCW). (i) As provided by Section 
404(b)(1) of the Act, the U.S. Government will disclose or otherwise 
provide confidential business information to the Technical Secretariat 
of the OPCW or to other States Parties to the Convention, in accordance 
with provisions of the Convention, particularly with the provisions of 
the Annex on the Protection of Confidential Information (Confidentiality 
Annex).
    (ii) Convention provisions. (A) The Convention provides that States 
Parties may designate information submitted to the Technical Secretariat 
as confidential, and requires the OPCW to limit access to, and prevent 
disclosure of, information so designated, except that the OPCW may 
disclose certain confidential information submitted in declarations to 
other States Parties if requested. The OPCW has developed a 
classification system whereby States Parties may designate the 
information they submit in their declarations as ``restricted,'' 
``protected,'' or ``highly protected,'' depending on the sensitivity of 
the information. Other States Parties are obligated, under the 
Convention, to store and restrict access to information which they 
receive from the OPCW in accordance with the level of confidentiality 
established for that information.
    (B) OPCW inspectors are prohibited, under the terms of their 
employment contracts and pursuant to the Confidentiality Annex of the 
Convention, from disclosing to any unauthorized persons, for five years 
after termination of their employment, any confidential information 
coming to their knowledge or into their possession in the performance of 
their official duties.
    (iii) U.S. Government designation of information to the Technical 
Secretariat. It is the policy of the U.S. Government to designate all 
facility information it provides to the Technical Secretariat in 
declarations, reports and Schedule 1 notifications as ``protected.'' It 
is the policy of the U.S. Government to designate confidential business 
information that it discloses to Inspection Teams during inspections as 
``protected'' or ``highly protected,'' depending on the sensitivity of 
the information. The Technical Secretariat is responsible for storing 
and limiting access to any confidential business information contained 
in a document according to its established procedures.
    (2) Disclosure to Congress. Section 404(b)(2) of the Act provides 
that the U.S. Government must disclose confidential business information 
to any committee or subcommittee of Congress with appropriate 
jurisdiction upon the written request of the chairman or ranking 
minority member of such committee or subcommittee. No such committee or 
subcommittee, and no member and no staff member of such committee or 
subcommittee, may disclose such information or material except as 
otherwise required or authorized by law.
    (3) Disclosure to other Federal agencies for law enforcement actions 
and disclosure in enforcement proceedings under the Act. Section 
404(b)(3) of the Act provides that the U.S. Government must disclose 
confidential business information to other Federal agencies for 
enforcement of the Act or any other law, and must disclose such 
information when relevant in any proceeding under the Act. Disclosure 
will be made in such manner as to preserve confidentiality to the extent 
practicable without impairing the proceeding. Section 719.14(b) of this 
subchapter provides that all hearings will be closed, unless the 
Administrative Law Judge for good cause shown determines otherwise.

[[Page 180]]

Section 719.20 of this subchapter provides that parties may request that 
the administrative law judge segregate and restrict access to 
confidential business information contained in material in the record of 
an enforcement proceeding.
    (4) Disclosure to the public; national interest determination. 
Section 404(c) of the Act provides that confidential business 
information, as defined by the Act, that is in the possession of the 
U.S. Government, is exempt from public disclosure in response to a 
Freedom of Information Act request, except when such disclosure is 
determined to be in the national interest.
    (i) National interest determination. The United States National 
Authority (USNA), in coordination with the CWC interagency group, shall 
determine on a case-by-case basis if disclosure of confidential business 
information in response to a Freedom of Information Act request is in 
the national interest.
    (ii) Notification of intent to disclose pursuant to a national 
interest determination. The Act provides for notification to the 
affected person of intent to disclose confidential business information 
based on the national interest, unless such notification of intent to 
disclose is contrary to national security or law enforcement needs. If, 
after coordination with the agencies that constitute the CWC interagency 
group, the USNA does not determine that such notification of intent to 
disclose is contrary to national security or law enforcement needs, the 
USNA will notify the person that submitted the information and the 
person to whom the information pertains of the intent to disclose the 
information.

Supplement No. 1 to Part 718--Confidential Business Information Declared 
                               or Reported

------------------------------------------------------------------------
                                                  Fields containing
                                                confidential business
                                                     information
------------------------------------------------------------------------
Schedule 1 Forms:
    Certification Form....................  None.
    Form 1-1..............................  None.
    Form 1-2..............................  All fields.
    Form 1-2A.............................  All fields.
    Form 1-2B.............................  All fields.
    Form 1-3..............................  All fields.
    Form 1-4..............................  All fields.
Schedule 2 Forms:
    Certification Form....................  None.
    Form 2-1..............................  None.
    Form 2-2..............................  Questions 2-2.8.
    Form 2-3..............................  All fields.
    Form 2-3A.............................  All fields.
    Form 2-3B.............................  All fields.
    Form 2-3C.............................  All fields.
    Form 2-4..............................  All fields.
Schedule 3 Forms:
    Certification Form....................  None.
    Form 3-1..............................  None.
    Form 3-2..............................  None.
    Form 3-3..............................  All fields.
    Form 3-4..............................  All fields.
Unscheduled Discrete Organic Chemicals
 Forms:
    Certification Form....................  None.
    Form UDOC.............................  None.
Forms A and B and attachments (all          Case-by-case; must be
 Schedules and UDOCs).                       identified by submitter.
------------------------------------------------------------------------
* This table lists those data fields on the Declaration and Report Forms
  that request ``confidential business information'' (CBI) as defined by
  the Act (sections 103(g) and 304(e)(2)). As provided by section 404(a)
  of the Act, CBI is exempt from disclosure in response to a Freedom of
  Information Act (FOIA) request under sections 552(b)(3) and 552(b)(4)
  (5 U.S.C.A. 552(b)(3)-(4)), unless a determination is made, pursuant
  to section 404(c) of the Act, that such disclosure is in the national
  interest. Other FOIA exemptions to disclosure may also apply. You must
  identify CBI provided in Form A and/or Form B attachments, and provide
  the reasons supporting your claim of confidentiality, except that
  Schedule 1 facility technical descriptions submitted with initial
  declarations are always considered to include CBI. If you believe that
  information you are submitting in a data field marked ``none'' in the
  Table is CBI, as defined by the Act, you must identify the specific
  information and provide the reasons supporting your claim of
  confidentiality in a cover letter.



PART 719_ENFORCEMENT--Table of Contents




Sec.
719.1 Scope and definitions.
719.2 Violations of the Act subject to administrative and criminal 
          enforcement proceedings.
719.3 Violations of the IEEPA subject to judicial enforcement 
          proceedings.
719.4 Violations and sanctions under the Act not subject to proceedings 
          under this subchapter.
719.5 Initiation of administrative proceedings.
719.6 Request for hearing and answer.
719.7 Representation.
719.8 Filing and service of papers other than the NOVA.
719.9 Summary decision.
719.10 Discovery.
719.11 Subpoenas.
719.12 Matters protected against disclosure.
719.13 Prehearing conference.
719.14 Hearings.
719.15 Procedural stipulations.
719.16 Extension of time.
719.17 Post-hearing submissions.
719.18 Decisions.
719.19 Settlement.
719.20 Record for decision.

[[Page 181]]

719.21 Payment of final assessment.
719.22 Reporting a violation.

    Authority: 22 U.S.C. 6701 et seq.; 50 U.S.C. 1601 et seq.; 50 U.S.C. 
1701 et seq.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 
13128, 64 FR 36703.

    Source: 64 FR 73804, Dec. 30, 1999, unless otherwise noted.



Sec.  719.1  Scope and definitions.

    (a) Scope. This part 719 describes the various sanctions that apply 
to violations of the Act and this subchapter. It also establishes 
detailed administrative procedures for certain violations of the Act. 
The three categories of violations are as follows:
    (1) Violations of the Act subject to administrative and criminal 
enforcement proceedings. This CWCR sets forth in Sec.  719.2 violations 
for which the statutory basis is the Act. The Department of Commerce 
investigates these violations and, for administrative proceedings, 
prepares charges, provides legal representation to the U.S. Government, 
negotiates settlements, and makes recommendations to officials of the 
Department of State with respect to the initiation and resolution of 
proceedings. The administrative procedures applicable to these 
violations are found in Sec. Sec.  719.5 through 719.22 of this part. 
The Department of State gives notice of initiation of administrative 
proceedings and issues orders imposing penalties pursuant to 22 CFR part 
103, subpart C.
    (2) Violations of the International Emergency Economic Powers Act 
(IEEPA) subject to judicial enforcement proceedings. Section 719.3 sets 
forth violations of the Chemical Weapons Convention for which the 
statutory basis is the IEEPA. The Department of Commerce refers these 
violations to the Department of Justice for civil or criminal judicial 
enforcement.
    (3) Violations and sanctions under the Act not subject to 
proceedings under this subchapter. Section 719.4 sets forth violations 
and sanctions under the Act that are not violations of this subchapter 
and that are not subject to proceedings under this subchapter. This 
section is included solely for informational purposes. The Department of 
Commerce may assist in investigations of these violations, but has no 
authority to initiate any enforcement action under this subchapter.

    Note to paragraph (a):
    This part 719 does not apply to violations of the export 
requirements imposed pursuant to the Chemical Weapons Convention and set 
forth in the Export Administration Regulations (EAR) (15 CFR parts 730 
through 799) and in the International Traffic in Arms Regulations (ITAR) 
(22 CFR parts 120 through 130).

    (b) Definitions. The following are definitions of terms as used only 
in parts 719 and 720. For definitions of terms applicable to parts 710 
through 722 of this subchapter, see part 710 of this subchapter.
    The Act. The Chemical Weapons Convention Implementation Act of 1998 
(22 U.S.C. 6701-6777).
    Assistant Secretary for Export Enforcement. The Assistant Secretary 
for Export Enforcement, Bureau of Industry and Security, United States 
Department of Commerce.
    Final decision. A decision or order assessing a civil penalty, or 
otherwise disposing of or dismissing a case, which is not subject to 
further administrative review, but which may be subject to collection 
proceedings or judicial review in an appropriate Federal court as 
authorized by law.
    IEEPA. The International Emergency Economic Powers Act, as amended 
(50 U.S.C. 1701-1706).
    Office of Chief Counsel. The Office of Chief Counsel for Industry 
and Security, United States Department of Commerce.
    Report. For purposes of parts 719 and 720 of this subchapter, the 
term ``report'' means any declaration, report, or notification required 
under parts 712 through 715 of this subchapter.
    Respondent. Any person named as the subject of a letter of intent to 
charge, or a Notice of Violation and Assessment (NOVA) and proposed 
order.
    Under Secretary for Industry and Security. The Under Secretary for 
Industry and Security, U.S. Department of Commerce, who shall 
concurrently hold the title of Under Secretary for Export 
Administration.

[64 FR 73804, Dec.30, 1999, as amended at 67 FR 20631, Apr. 26, 2002; 67 
FR 45633, July 10, 2002]

[[Page 182]]



Sec.  719.2  Violations of the Act subject to administrative and criminal 
enforcement proceedings.

    (a) Violations. (1) Refusal to permit entry or inspection. No person 
may willfully fail or refuse to permit entry or inspection, or disrupt, 
delay or otherwise impede an inspection, authorized by the Act.
    (2) Failure to establish or maintain records. No person may 
willfully fail or refuse:
    (i) To establish or maintain any record required by the Act or this 
subchapter; or
    (ii) To submit any report, notice, or other information to the 
United States Government in accordance with the Act or this subchapter; 
or
    (iii) To permit access to or copying of any record that is exempt 
from disclosure under the Act or this subchapter.
    (b) Civil penalties. (1) Civil penalty for refusal to permit entry 
or inspection. Any person that is determined to have willfully failed or 
refused to permit entry or inspection, or to have disrupted, delayed or 
otherwise impeded an authorized inspection, as set forth in paragraph 
(a)(1) of this section, shall pay a civil penalty in an amount not to 
exceed $25,000 for each violation. Each day the violation continues 
constitutes a separate violation.
    (2) Civil penalty for failure to establish or maintain records. Any 
person that is determined to have willfully failed or refused to 
establish or maintain any record or submit any report, notice, or other 
information required by the Act or this subchapter, or to permit access 
to or copying of any record exempt from disclosure under the Act or this 
subchapter as set forth in paragraph (a)(2) of this section, shall pay a 
civil penalty in an amount not to exceed $5,000 for each violation.
    (c) Criminal penalty. Any person that knowingly violates the Act by 
willfully failing or refusing to permit entry or inspection authorized 
by the Act; or by willfully disrupting, delaying or otherwise impeding 
an inspection authorized by the Act; or by willfully failing or refusing 
to establish or maintain any required record, or to submit any required 
report, notice, or other information; or by willfully failing or 
refusing to permit access to or copying of any record exempt from 
disclosure under the Act or CWCR, shall, in addition to or in lieu of 
any civil penalty that may be imposed, be fined under Title 18 of the 
United States Code, be imprisoned for not more than one year, or both.
    (d) Denial of export privileges. Any person in the United States or 
any U.S. national may be subject to a denial of export privileges after 
notice and opportunity for hearing pursuant to part 720 of this 
subchapter if that person has been convicted under Title 18, section 229 
of the United States Code.



Sec.  719.3  Violations of the IEEPA subject to judicial enforcement 
proceedings.

    (a) Violations. (1) Import restrictions involving Schedule 1 
chemicals. Except as otherwise provided in Sec.  712.1 of this 
subchapter, no person may import any Schedule 1 chemical (See Supplement 
No. 1 to part 712 of this subchapter) unless:
    (i) The import is from a State Party;
    (ii) The import is for research, medical, pharmaceutical, or 
protective purposes;
    (iii) The import is in types and quantities strictly limited to 
those that can be justified for such purposes; and
    (iv) The importing person has notified the Department of Commerce 45 
calendar days prior to the import pursuant to Sec.  712.4 of this 
subchapter.
    (2) Import restrictions involving Schedule 2 chemicals. Except as 
otherwise provided in Sec.  713.1 of this subchapter, no person may, on 
or after April 29, 2000, import any Schedule 2 chemical (see Supplement 
No. 1 to part 713 of this subchapter) from any destination other than a 
State Party.
    (b) Civil penalty. A civil penalty not to exceed $11,000 may be 
imposed in accordance with this part on any person for each violation of 
this section.1
---------------------------------------------------------------------------

    \1\ The maximum civil penalty allowed under the International 
Emergency Economic Powers Act is $11,000 for any violation committed on 
or after October 23, 1996 (15 CFR 6.4(a)(3)).
---------------------------------------------------------------------------

    (c) Criminal penalty. Whoever willfully violates paragraph (a)(1) or 
(2) of this section shall, upon conviction, be fined not more than 
$50,000, or, if a natural person, imprisoned for not more

[[Page 183]]

than ten years, or both; and any officer, director, or agent of any 
corporation who knowingly participates in such violation may be punished 
by like fine, imprisonment, or both.2
---------------------------------------------------------------------------

    \2\ Alternatively, sanctions may be imposed under 18 U.S.C. 3571, a 
criminal code provision that establishes a maximum criminal fine for a 
felony that is the greatest of: (1) the amount provided by the statute 
that was violated; (2) an amount not more than $250,000 for an 
individual, or not more than $500,000 for an organization; or (3) an 
amount based on gain or loss from the offense.
---------------------------------------------------------------------------



Sec.  719.4  Violations and sanctions under the Act not subject to 
proceedings under this subchapter.

    (a) Criminal penalties for development or use of a chemical weapon. 
Any person who violates 18 U.S.C. 229 shall be fined, or imprisoned for 
any term of years, or both. Any person who violates 18 U.S.C. 299 and by 
whose action the death of another person is the result shall be punished 
by death or imprisoned for life.
    (b) Civil penalty for development or use of a chemical weapon. The 
Attorney General may bring a civil action in the appropriate United 
States district court against any person who violates 18 U.S.C. 229 and, 
upon proof of such violation by a preponderance of the evidence, such 
person shall be subject to pay a civil penalty in an amount not to 
exceed $100,000 for each such violation.
    (c) Criminal forfeiture. (1) Any person convicted under section 
229A(a) of Title 18 of the United States Code shall forfeit to the 
United States irrespective of any provision of State law:
    (i) Any property, real or personal, owned, possessed, or used by a 
person involved in the offense;
    (ii) Any property constituting, or derived from, and proceeds the 
person obtained, directly or indirectly, as the result of such 
violation; and
    (iii) Any of the property used in any manner or part, to commit, or 
to facilitate the commission of, such violation.
    (2) In lieu of a fine otherwise authorized by section 229A(a) of 
Title 18 of the United States Code, a defendant who derived profits or 
other proceeds from an offense may be fined not more than twice the 
gross profits or other proceeds.
    (d) Injunction. (1) The United States may, in a civil action, obtain 
an injunction against:
    (i) The conduct prohibited under section 229 or 229C of Title 18 of 
the United States Code; or
    (ii) The preparation or solicitation to engage in conduct prohibited 
under section 229 or 229D of Title 18 of the United States Code.
    (2) In addition, the United States may, in a civil action, restrain 
any violation of section 306 or 405 of the Act, or compel the taking of 
any action required by or under the Act or the Convention.



Sec.  719.5  Initiation of administrative proceedings.

    (a) Request for Notice of Violation and Assessment (NOVA). The 
Director of the Office of Export Enforcement, Bureau of Industry and 
Security, may request that the Secretary of State initiate an 
administrative enforcement proceeding under this Sec.  719.5 and 22 CFR 
103.7. If the request is in accordance with applicable law, the 
Secretary of State will initiate an administrative enforcement 
proceeding by issuing a NOVA. The Office of Chief Counsel shall serve 
the NOVA as directed by the Secretary of State.
    (b) Letter of intent to charge. The Director of the Office of Export 
Enforcement, Bureau of Industry and Security, may notify a respondent by 
letter of the intent to charge. This letter of intent to charge will 
advise a respondent that the Department of Commerce has conducted an 
investigation and intends to recommend that the Secretary of State issue 
a NOVA. The letter of intent to charge will be accompanied by a draft 
NOVA and proposed order, and will give the respondent a specified period 
of time to contact BIS to discuss settlement of the allegations set 
forth in the draft NOVA. An administrative enforcement proceeding is not 
initiated by a letter of intent to charge. If the respondent does not 
contact BIS within the specified time, or if the respondent requests it, 
BIS will make its request for initiation of an administrative 
enforcement proceeding to the Secretary

[[Page 184]]

of State in accordance with paragraph (a) of this section.
    (c) Content of NOVA. The NOVA shall constitute a formal complaint, 
and will set forth the basis for the issuance of the proposed order. It 
will set forth the alleged violation(s) and the essential facts with 
respect to the alleged violation(s), reference the relevant statutory, 
regulatory or other provisions, and state the amount of the civil 
penalty to be assessed. The NOVA will inform the respondent of the right 
to request a hearing pursuant to Sec.  719.6, inform the respondent that 
failure to request such a hearing shall result in the proposed order 
becoming final and unappealable on signature of the Secretary of State, 
and provide payment instructions. A copy of the regulations that govern 
the administrative proceedings will accompany the NOVA.
    (d) Proposed order. A proposed order shall accompany every NOVA, 
letter of intent to charge, and draft NOVA. It will briefly set forth 
the substance of the alleged violation(s) and the statutory, regulatory 
or other provisions violated. It will state the amount of the civil 
penalty to be assessed.
    (e) Notice. Notice of the intent to charge or of the initiation of 
formal proceedings shall be given to the respondent (or respondent's 
agent for service of process, or attorney) by sending relevant 
documents, via first class mail, facsimile, or by personal delivery.



Sec.  719.6  Request for hearing and answer.

    (a) Time to answer. If the respondent wishes to contest the NOVA and 
proposed order issued by the Secretary of State, the respondent must 
request a hearing in writing within 15 days from the date of the NOVA. 
If the respondent requests a hearing, the respondent must answer the 
NOVA within 30 days from the date of the request for hearing. The 
request for hearing and answer must be filed with the Administrative Law 
Judge (ALJ), along with a copy of the NOVA and proposed order, and 
served on the Office of Chief Counsel, and any other address(es) 
specified in the NOVA, in accordance with Sec.  719.8.
    (b) Content of answer. The respondent's answer must be responsive to 
the NOVA and proposed order, and must fully set forth the nature of the 
respondent's defense(s). The answer must specifically admit or deny each 
separate allegation in the NOVA; if the respondent is without knowledge, 
the answer will 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) English required. The request for hearing, answer, and all other 
papers and documentary evidence must be submitted in English.
    (d) Waiver. The failure of the respondent to file a request for a 
hearing and an answer within the times provided constitutes a waiver of 
the respondent's right to appear and contest the allegations set forth 
in the NOVA and proposed order. If no hearing is requested and no answer 
is provided, the proposed order will be signed and become final and 
unappealable.



Sec.  719.7  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. The U.S. Government will be represented by the Office 
of Chief Counsel. A respondent personally, or through counsel or other 
representative who has the power of attorney to represent the 
respondent, shall file a notice of appearance with the ALJ, or, in cases 
where settlement negotiations occur before any filing with the ALJ, with 
the Office of Chief Counsel.

[[Page 185]]



Sec.  719.8  Filing and service of papers other than the NOVA.

    (a) Filing. All papers to be filed with the ALJ shall be addressed 
to ``CWC Administrative Enforcement Proceedings'' at the address set 
forth in the NOVA, or such other place as the ALJ may designate. Filing 
by United States mail (first class postage prepaid), by express or 
equivalent parcel delivery service, via facsimile, or by hand delivery, 
is acceptable. Filing from a foreign country shall be by airmail or via 
facsimile. A copy of each paper filed shall be simultaneously served on 
all parties.
    (b) Service. Service shall be made by United States mail (first 
class postage prepaid), by express or equivalent parcel delivery 
service, via facsimile, or by hand delivery of one copy of each paper to 
each party in the proceeding. The Department of State is a party to 
cases under this subchapter, but will be represented by the Office of 
Chief Counsel. Therefore, service on the government party in all 
proceedings shall be addressed to Office of Chief Counsel for Industry 
and Security, U.S. Department of Commerce, 14th Street and Constitution 
Avenue, N.W., Room H-3839, Washington, D.C. 20230, or faxed to (202) 
482-0085. Service on a respondent shall be to the address to which the 
NOVA and proposed order was sent, or to such other address as the 
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. Refusal by the person to be served, or by the 
person's agent or attorney, of service of a document or other paper will 
be considered effective service of the document or other paper as of the 
date of such refusal.
    (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 NOVA and proposed order, filed and 
served on the parties.
    (e) Computation of time. In computing any period of time prescribed 
or allowed by this part, 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 7 days or less.

[64 FR 73804, Dec. 30, 1999, as amended at 67 FR 45633, July 10, 2002]



Sec.  719.9  Summary decision.

    The ALJ may render a summary decision disposing of all or part of a 
proceeding on the motion of any party to the proceeding, provided that 
there is no genuine issue as to any material fact and the party is 
entitled to summary decision as a matter of law.



Sec.  719.10  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 ALJ or 
by waiver or agreement of the parties. The ALJ 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, including Confidential Business 
Information (CBI) as defined by the Act.
    (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 ALJ for such enforcement 
or protective order

[[Page 186]]

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 ALJ 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 
ALJ. 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 ALJ 
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 ALJ 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 ALJ 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 not 
comply with such an order, the ALJ may make a determination or enter any 
order in the proceeding as the ALJ deems reasonable and appropriate. The 
ALJ 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 any district court of the United 
States in which venue is proper may be sought as appropriate.



Sec.  719.11  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 ALJ may issue 
subpoenas to any person 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 ALJ deems 
relevant and material to the proceedings, and reasonable in scope. 
Witnesses shall be paid the same fees and mileage that are paid to 
witnesses in the courts of the United States. In case of contempt, 
challenge or refusal to obey a subpoena served upon any person pursuant 
to this paragraph, any district court of the United States, in which 
venue is proper, has jurisdiction to issue an order requiring any such 
person to comply with such subpoena. Any failure to obey such order of 
the court is punishable by the court as a contempt thereof.
    (b) Service. Subpoenas issued by the ALJ may be served by any of the 
methods set forth in Sec.  719.8(b).
    (c) Timing. Applications for subpoenas must be submitted at least 10 
days before the scheduled hearing or deposition, unless the ALJ 
determines, for good cause shown, that extraordinary circumstances 
warrant a shorter time.



Sec.  719.12  Matters protected against disclosure.

    (a) Protective measures. The ALJ may limit discovery or introduction 
of evidence or issue such protective or other orders as in the ALJ's 
judgment may be needed to prevent undue disclosure of classified or 
sensitive documents or information, including Confidential Business 
Information as defined by the Act. Where the ALJ determines that 
documents containing classified or sensitive matter must be made 
available to a party in order to avoid prejudice, the ALJ may direct the 
other party to prepare an unclassified and nonsensitive summary or 
extract of the documents. The ALJ may compare the extract or summary 
with the original to ensure that it is supported by the source document 
and that it omits

[[Page 187]]

only so much as must remain undisclosed. The summary or extract may be 
admitted as evidence in the record.
    (b) Arrangements for access. If the ALJ determines that the summary 
procedure outlined in paragraph (a) of this section is unsatisfactory, 
and that classified or otherwise sensitive matter must form part of the 
record in order to avoid prejudice to a party, the ALJ 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 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.  719.13  Prehearing conference.

    (a) On the ALJ's own motion, or on request of a party, the ALJ 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 ALJ may order the conference proceedings to be recorded 
electronically or taken by a reporter, transcribed and filed with the 
ALJ.
    (c) If a prehearing conference is impracticable, the ALJ may direct 
the parties to correspond with the ALJ to achieve the purposes of such a 
conference.
    (d) The ALJ 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.  719.14  Hearings.

    (a) Scheduling. Upon receipt of a written and dated request for a 
hearing, the ALJ shall, by agreement with all the parties or upon notice 
to all parties of at least 30 days, schedule a hearing. All hearings 
will be held in Washington, D.C., unless the ALJ determines, for good 
cause shown, that another location would better serve the interest of 
justice.
    (b) Hearing procedure. Hearings will be conducted in a fair and 
impartial manner by the ALJ. All hearings will be closed, unless the ALJ 
for good cause shown determines otherwise. The rules of evidence 
prevailing in courts of law do not apply, and all evidentiary material 
deemed by the ALJ to be relevant and material to the proceeding and not 
unduly repetitious will be received and given appropriate weight, except 
that any evidence of settlement which would be excluded under Rule 408 
of the Federal Rules of Evidence is not admissible. Witnesses will 
testify under oath or affirmation, and shall be subject to cross-
examination.
    (c) Testimony and record. (1) A verbatim record of the hearing and 
of any other oral proceedings will be taken by reporter or by electronic 
recording, and filed with the ALJ. If any party wishes to obtain a 
written copy of the transcript, that party shall pay the costs of 
transcription. The parties may share the costs if both wish a 
transcript.
    (2) Upon such terms as the ALJ deems just, the ALJ 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. 
The party's failure to appear will not affect the validity of the 
hearing or any proceeding or action taken thereafter.



Sec.  719.15  Procedural stipulations.

    Unless otherwise ordered and subject to Sec.  719.16, a written 
stipulation agreed to by all parties and filed with the ALJ will modify 
the procedures established by this part.

[[Page 188]]



Sec.  719.16  Extension of time.

    The parties may extend any applicable time limitation by stipulation 
filed with the ALJ before the time limitation expires, or the ALJ may, 
on the ALJ's own initiative or upon application by any party, either 
before or after the expiration of any applicable time limitation, extend 
the time, except that the requirement that a hearing be demanded within 
15 days, and the requirement that a final agency decision be made within 
30 days, may not be modified.



Sec.  719.17  Post-hearing submissions.

    All parties shall have the opportunity to file post-hearing 
submissions that may include findings of fact and conclusions of law, 
supporting evidence and legal arguments, exceptions to the ALJ's rulings 
or to the admissibility of evidence, and proposed orders and 
settlements.



Sec.  719.18  Decisions.

    (a) Initial decision. After considering the entire record in the 
case, the ALJ will issue an initial decision based on a preponderance of 
the evidence. The decision will include findings of fact, conclusions of 
law, and a decision based thereon as to whether the respondent has 
violated the Act If the ALJ finds that the evidence of record is 
insufficient to sustain a finding that a violation has occurred with 
respect to one or more allegations, the ALJ shall order dismissal of the 
allegation(s) in whole or in part, as appropriate. If the ALJ finds that 
one or more violations have been committed, the ALJ shall issue an order 
imposing administrative sanctions.
    (b) Factors considered in assessing penalties. In determining the 
amount of a civil penalty, the ALJ shall take into account the nature, 
circumstances, extent and gravity of the violation(s), and, with respect 
to the respondent, the respondent's ability to pay the penalty, the 
effect of a civil penalty on the respondent's ability to continue to do 
business, the respondent's history of prior violations, the respondent's 
degree of culpability, the existence of an internal compliance program, 
and such other matters as justice may require.
    (c) Certification of initial decision. The ALJ shall immediately 
certify the initial decision and order to the Executive Director of the 
Office of Legal Adviser, U.S. Department of State, 2201 C Street, N.W., 
Room 5519, Washington, D.C. 20520, to the Office of Chief Counsel at the 
address in Sec.  719.8, and to the respondent, by personal delivery or 
overnight mail.
    (d) Review of initial decision. The initial decision shall become 
the final agency decision and order unless, within 30 days, the 
Secretary of State modifies or vacates it, with or without conditions, 
in accordance with 22 CFR 103.8.



Sec.  719.19  Settlement.

    (a) Settlements before issuance of a NOVA. When the parties have 
agreed to a settlement of the case, the Director of the Office of Export 
Enforcement will recommend the settlement to the Secretary of State, 
forwarding a proposed settlement agreement and order, which, in 
accordance with 22 CFR 103.9(a), the Secretary of State will sign if the 
recommended settlement is in accordance with applicable law.
    (b) Settlements following issuance of a NOVA. The parties may enter 
into settlement negotiations at any time during the time a case is 
pending before the ALJ. If necessary, the parties may extend applicable 
time limitations or otherwise request that the ALJ stay the proceedings 
while settlement negotiations continue. When the parties have agreed to 
a settlement of the case, the Office of Chief Counsel will recommend the 
settlement to the Secretary of State, forwarding a proposed settlement 
agreement and order, which, in accordance with 22 CFR 103.9(b), the 
Assistant Secretary will sign if the recommended settlement is in 
accordance with applicable law.
    (c) Settlement scope. 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 the government officials involved 
have neither the authority nor the responsibility for initiating, 
conducting, settling, or otherwise disposing of criminal proceedings.

[[Page 189]]

That authority and responsibility are vested in the Attorney General and 
the Department of Justice.
    (d) Finality. Cases that are settled may not be reopened or 
appealed.



Sec.  719.20  Record for decision.

    (a) The record. The transcript of hearings, exhibits, rulings, 
orders, all papers and requests filed in the proceedings, and, for 
purposes of any appeal under Sec.  719.18 or under 22 CFR 103.8, the 
decision of the ALJ and such submissions as are provided for under Sec.  
719.18 or 22 CFR 103.8 will constitute the record and the exclusive 
basis for decision. When a case is settled, the record will consist of 
any and all of the foregoing, as well as the NOVA or draft NOVA, 
settlement agreement, and order.
    (b) Restricted access. On the ALJ's own motion, or on the motion of 
any party, the ALJ 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, prior to the close of the proceeding, for 
submitting a version of the document(s) 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 ALJ 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. All NOVAs and draft NOVAs, 
answers, settlement agreements, decisions and orders disposing of a case 
will be made available for public inspection in the BIS 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.
    (2) Timing. The record for decision will be available only after the 
final administrative disposition of a case. Parties may seek to restrict 
access to any portion of the record under paragraph (b) of this section.



Sec.  719.21  Payment of final assessment.

    (a) Time for payment. Full payment of the civil penalty must be made 
within 30 days of the date upon which the final order becomes effective, 
or within the time specified in the order. Payment shall be made in the 
manner specified in the NOVA.
    (b) Enforcement of order. The government party may, through the 
Attorney General, file suit in an appropriate district court if 
necessary to enforce compliance with a final order issued under these 
CWCR (this subchapter). This suit will include a claim for interest at 
current prevailing rates from the date payment was due or ordered.
    (c) Offsets. The amount of any civil penalty imposed by a final 
order may be deducted from any sum(s) owed by the United States to a 
respondent.



Sec.  719.22  Reporting a violation.

    If a person learns that a violation of the Convention, the Act, or 
this subchapter has occurred or may occur, that person may notify: 
Office of Export Enforcement, Bureau of Industry and Security, 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.



PART 720_DENIAL OF EXPORT PRIVILEGES--Table of Contents




Sec.
720.1 Denial of export privileges for convictions under 18 U.S.C. 229.
720.2 Initiation of administrative action denying export privileges.
720.3 Final decision on administrative action denying export privileges.
720.4 Effect of denial.

    Authority: 22 U.S.C. 6701 et seq.; E.O. 13128, 64 FR 36703.

    Source: 64 FR 73809, Dec. 30, 1999, unless otherwise noted.

[[Page 190]]



Sec.  720.1  Denial of export privileges for convictions under 18 U.S.C. 229.

    Any person in the United States or any U.S. national may be denied 
export privileges after notice and opportunity for hearing if that 
person has been convicted under Title 18, Section 229 of the United 
States Code of knowingly:
    (a) Developing, producing, otherwise acquiring, transferring 
directly or indirectly, receiving, stockpiling, retaining, owning, 
possessing, or using, or threatening to use, a chemical weapon; or
    (b) Assisting or inducing, in any way, any person to violate 
paragraph (a) of this section, or attempting or conspiring to violate 
paragraph (a) of this section.



Sec.  720.2  Initiation of administrative action denying export privileges.

    (a) Notice. BIS will notify any person convicted of Section 229, 
Title 18, United States Code, of BIS's intent to deny that person's 
export privileges. The notification letter shall reference the person's 
conviction, specify the number of years for which BIS intends to deny 
export privileges, set forth the statutory and regulatory authority for 
the action, state whether the denial order will be standard or non-
standard pursuant to Supplement No. 1 to Part 764 of the Export 
Administration Regulations (15 CFR parts 730 through 799), and provide 
that the person may request a hearing before the Administrative Law 
Judge within 30 days from the date of the notification letter.
    (b) Waiver. The failure of the notified person to file a request for 
a hearing within the time provided constitutes a waiver of the person's 
right to contest the denial of export privileges that BIS intends to 
impose.
    (c) order of Assistant Secretary. If no hearing is requested, the 
Assistant Secretary for Export Enforcement will order that export 
privileges be denied as indicated in the notification letter.



Sec.  720.3  Final decision on administrative action denying export privileges.

    (a) Hearing. Any hearing that is granted by the ALJ shall be 
conducted in accordance with the procedures set forth in Sec.  719.14 of 
this subchapter.
    (b) Initial decision and order. After considering the entire record 
in the proceeding, the ALJ will issue an initial decision and order, 
based on a preponderance of the evidence. The ALJ may consider factors 
such as the seriousness of the criminal offense that is the basis for 
conviction, the nature and duration of the criminal sanctions imposed, 
and whether the person has undertaken any corrective measures. The ALJ 
may dismiss the proceeding if the evidence is insufficient to sustain a 
denial of export privileges, or may issue an order imposing a denial of 
export privileges for the length of time the ALJ deems appropriate. An 
order denying export privileges may be standard or non-standard, as 
provided in Supplement No. 1 to part 764 of the Export Administration 
Regulations (15 CFR parts 730 through 799). The initial decision and 
order will be served on each party, and will be published in the Federal 
Register as the final decision of the Department of Commerce 30 days 
after service, unless an appeal is filed in accordance with paragraph 
(c) of this section.
    (c) Grounds for appeal. (1) A party may, within 30 days of the ALJ's 
initial decision and order, petition the Under Secretary for Export 
Administration for review of the initial decision and order. A petition 
for review must be filed with the Office of Under Secretary for Export 
Administration, Department of Commerce, 14th Street and Constitution 
Avenue, N.W., Washington, D.C. 20230, and shall be served on the Office 
of Chief Counsel for Industry and Security or on the respondent. 
Petitions for review may be filed only on one or more of the following 
grounds:
    (i) That a necessary finding of fact is omitted, erroneous or 
unsupported by substantial evidence of record;
    (ii) That a necessary legal conclusion or finding is contrary to 
law;
    (iii) That prejudicial procedural error occurred; or
    (iv) That the decision or the extent of sanctions is arbitrary, 
capricious or an abuse of discretion.
    (2) The appeal must specify the grounds on which the appeal is based 
and the provisions of the order from which the appeal was taken.

[[Page 191]]

    (d) Appeal procedure. The Under Secretary for Export Administration 
normally will not hold hearings or entertain oral arguments 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 Under Secretary's decision will be in writing and 
will be accompanied by an order signed by the Under Secretary for Export 
Administration giving effect to the decision. The order may either 
dispose of the case by affirming, modifying or reversing the order of 
the ALJ, or may refer the case back to the ALJ for further proceedings. 
Any order that imposes a denial of export privileges will be published 
in the Federal Register.

[64 FR 73809, Dec. 30, 1999, as amended at 67 FR 45633, July 10, 2002]



Sec.  720.4  Effect of denial.

    Any person denied export privileges pursuant to this part shall be 
considered a ``person denied export privileges'' for purposes of the 
Export Administration Regulations (15 CFR parts 730 through 799). The 
name and address of the denied person will be published on the Denied 
Persons List found in Supplement 2 to part 764 of the Export 
Administration Regulations (15 CFR parts 730 through 799).



PART 721_INSPECTION OF RECORDS AND RECORDKEEPING--Table of Contents




Sec.
721.1 Inspection of records.
721.2 Recordkeeping.
721.3 Destruction or disposal of records.

    Authority: 22 U.S.C. 6701 et seq.; E.O. 13128, 64 FR 36703.

    Source: 64 FR 73810, Dec. 30, 1999, unless otherwise noted.



Sec.  721.1  Inspection of records.

    Upon request by the Department of Commerce or any other agency of 
competent jurisdiction, you must permit access to and copying of any 
record relating to compliance with the requirements of this subchapter. 
This requires that you make available the equipment and, if necessary, 
knowledgeable personnel for locating, reading, and reproducing any 
record.



Sec.  721.2  Recordkeeping.

    (a) General. Each facility required to submit a declaration, report 
or notification under parts 712 through 715 of this subchapter must 
retain all supporting materials and documentation used by a unit, plant, 
facility and plant site to prepare such declaration, report or 
notification to determine production, processing, consumption, export or 
import of chemicals.
    (b) Five year retention period. All supporting materials and 
documentation required to be kept under paragraph (a) of this section 
must be retained for five years from the due date of the applicable 
declaration, report, or notification, or for five years from the date of 
submission of the applicable declaration, report or notification, 
whichever is later. Due dates for declarations, reports and 
notifications are provided in parts 712 through 715 of this subchapter.
    (c) Location of records. If a facility is subject to inspection 
under part 716 of this subchapter, records retained under this section 
must be maintained at the facility or must be accessible electronically 
at the facility for purposes of inspection of the facility by Inspection 
Teams. If a facility is not subject to inspection under part 716 of this 
subchapter, records retained under this section may be maintained either 
at the facility subject to a declaration, report, or notification 
requirement, or at a remote location, but all records must be accessible 
to any authorized agent, official or employee of the U.S. Government 
under Sec.  721.1.
    (d) Reproduction of original records. (1) You may maintain 
reproductions instead of the original records provided all of the 
requirements of paragraph (b) of this section are met.
    (2) If you must maintain records under this part, you may use any 
photostatic, miniature photographic, micrographic, automated archival 
storage, or other process that completely,

[[Page 192]]

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:
    (i) The system must be capable of reproducing all records on paper.
    (ii) 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 (unless blank) of paper documents in 
legible form.
    (iii) 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.
    (iv) The system must preserve the initial image (including both 
obverse and reverse sides, unless blank, 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.
    (v) You must establish written procedures to identify the 
individuals who are responsible for the operation, use and maintenance 
of the system.
    (vi) You must keep a record of where, when, by whom, and on what 
equipment the records and other information were entered into the 
system.
    (3) Requirements applicable to a system based on digital images. For 
systems based on the storage of digital images, the system must provide 
accessibility to any digital image in the system. The system must be 
able to locate and reproduce all records according to the same criteria 
that would have been used to organize the records had they been 
maintained in original form.
    (4) Requirements applicable to a system based on photographic 
processes. For systems based on photographic, photostatic, or miniature 
photographic processes, the records must be maintained according to an 
index of all records in the system following the same criteria that 
would have been used to organize the records had they been maintained in 
original form.



Sec.  721.3  Destruction or disposal of records.

    If the Department of Commerce or other authorized U.S. 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 requesting entity.

                   PART 722_INTERPRETATIONS [RESERVED]

    Note: This part is reserved for interpretations of parts 710 through 
721 and also for applicability of decisions by the Organization for the 
Prohibition of Chemical Weapons (OPCW).

                        PARTS 723	729 [RESERVED]

[[Page 193]]



             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 Industry and Security 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; 30 U.S.C. 185(s), 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. 11912, 41 FR 15825, 3 CFR, 1976 Comp., p. 114; E.O. 
12002, 42 FR 35623, 3 CFR, 1977 Comp., p.133; E.O. 12058, 43 FR 20947, 3 
CFR, 1978 Comp., p. 179; E.O. 12214, 45 FR 29783, 3 CFR, 1980 Comp., p. 
256; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12854, 58 
FR 36587, 3 CFR, 1993 Comp., p. 179; E.O. 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; E.O. 12981, 60 FR 62981, 3 CFR, 1995 
Comp., p. 419; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp. p. 219; E.O. 
13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; Notice of November 12, 
1998, 63 FR 63589, 3 CFR, 1998 Comp., p. 305; Notice of August 10, 1999, 
64 FR 44101, 3 CFR, 1999 Comp., p. 302.

    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 Industry 
and Security (BIS) 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 
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

[[Page 194]]

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 
BIS.
    (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 
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

[[Page 195]]

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 BIS 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 BIS.



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 BIS 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 BIS 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 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 Sec. Sec.  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

[[Page 196]]

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. BIS 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 BIS 
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 BIS, 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 Industry and Security is organized.

    Functionally, the Bureau of Industry and Security is divided into 
two branches, Export Administration and Export Enforcement. Also, BIS 
manages a number of Technical Advisory Committees consisting of industry 
and government representatives which advise and assist BIS 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

[[Page 197]]

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 BIS'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. (1) The Technical Advisory 
Committees (TACs) provide advice and assistance to BIS from U.S. 
industry regarding the creation and implementation of export controls. 
For further information regarding establishment of TACs and other 
information, see Supplement No. 2 to part 730. Existing TACs include the 
following:
    (i) The Information Systems TAC;
    (ii) The Materials TAC;
    (iii) The Materials Processing Equipment TAC;
    (iv) The Regulations and Procedures TAC;

[[Page 198]]

    (v) The Sensors and Instrumentation TAC; and
    (vi) The Transportation and Related Equipment TAC.
    (2) For more information. For information on attending a TAC meeting 
or on becoming a TAC member, please contact Ms. Lee Ann Carpenter, 
Director, TAC Unit, OAS-EA/BIS, Room 3886C, U.S. Department of Commerce, 
Washington, DC 20230; Telephone number: (202) 482-2583. FAX number: 
(202) 501-8024.

[61 FR 12734, Mar. 25, 1996, as amended at 62 FR 25452, May 9, 1997]



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 BIS, 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 Industry and 
Security 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.................................  Sec.  Sec.   748.13 and
                                             762.2(b) of the EAR.
0694-0017.................................  Sec.   748.10 of the EAR.
0694-0021.................................  Sec.  Sec.   748.11 and
                                             762.2(b) of the EAR.
0694-0023.................................  Sec.  Sec.   740.3(d) and
                                             740.4(c) of the EAR.
0694-0025.................................  Sec.  Sec.   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.................................  Sec.  Sec.   740.7(b) and
                                             762.2(b) of the EAR.
0694-0038.................................  Sec.   758.6(e)(2) of the
                                             EAR.
0694-0040.................................  Sec.  Sec.   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.................................  Sec.  Sec.   762.2(b) and
                                             764.5 of the EAR.
0694-0064.................................  Sec.  Sec.   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.................................  Sec.  Sec.   748.10 and
                                             762.2(b) of the EAR.
0694-0094.................................  Part 758 of the EAR of the
                                             EAR.
0694-0095.................................  Sec.  Sec.   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.................................  Sec.  Sec.   752.15(b),
                                             758.6, and 762.2(b) of the
                                             EAR.
0694-0102.................................  Sec.  Sec.   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.................................  Sec.  Sec.   740.1(d),
                                             740.3(a)(3), 752.7(b), Sec.
                                               752.15(a) of the EAR.
                                            Sec.  Sec.   754.2(h) and
                                             (i), 754.4(c) 758.1, Sec.
                                             Sec.   758.2(m) and 758.3
                                             of the EAR.
0607-0152.................................  Sec.  Sec.   740.1(d),
                                             740.3(a)(3), 752.7(b), Sec.
                                              Sec.   752.15(a) of the
                                             EAR.
                                            Sec.  Sec.   754.2(h) and
                                             (i), 754.4(c), 758.1, Sec.
                                             Sec.   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.
    (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

[[Page 199]]

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, BIS 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 BIS 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 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

[[Page 200]]

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 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.

[[Page 201]]

    (3)(i) Requests for records should be addressed to: Bureau of 
Industry and Security, 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.

                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.

[[Page 202]]

    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.

     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.

[61 FR 12734, Mar. 25, 1996, as amended at 65 FR 38149, June 19, 2000]



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 or Automated Export 
          System record, Destination Control Statements, and 
          recordkeeping.
732.6 Steps for other requirements.

Supplement No. 1 to Part 732--Decision Tree
Supplement No. 2 to Part 732--Am I subject to the EAR?
Supplement No. 3 to Part 732--BIS's ``Know Your Customer'' Guidance and 
          Red Flags

    Authority: 50 U.S.C. app. 2401 et seq.; 50 USC 1701 et seq.; E.O. 
13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 
3 CFR, 2001 Comp., p. 783; Notice of August 7, 2003, 66 FR 47833, August 
11, 2003.

    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. A flow chart describing these steps is 
contained in Supplement No. 1 to part 732. 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 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.

[[Page 203]]

    (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, and Libya. 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 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, and Libya), 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.

[[Page 204]]

    (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.

[61 FR 12740, Mar. 25, 1996, as amended at 62 FR 25453, May 9, 1997; 65 
FR 38150, June 19, 2000]



Sec.  732.2  Steps regarding scope of the EAR.

    Steps 1 though 6 are designed to aid you in determining the scope of 
the EAR. A flow chart describing these steps is contained in Supplement 
No. 2 to part 732.
    (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 if you are not a U.S. person subject to General Prohibition 
Seven. If you are a U.S. person, go to Step 15 at Sec.  732.3(j) of this 
part. If you are a U.S. person and General Prohibition Seven concerning 
proliferation activity of U.S. persons does not apply, then you may 
proceed with the export or reexport of your publicly available 
technology or software. Note that all U.S. persons are subject to the 
provisions of General Prohibition Seven.

[[Page 205]]

    (2) If your technology or software is not publicly available and you 
are exporting from the United States, skip to 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 and 
not currently in the United States. Note that the following encryption 
items are subject to the EAR even if they incorporate less than the de 
minimis level of U.S. content: encryption items controlled for ``EI'' 
reasons under ECCN 5A002, 5D002 or 5E002 on the Commerce Control List 
(Supplement No. 1 to Part 774 of the EAR) and mass market encryption 
commodities and software, described in the Cryptography Note (Note 3) in 
Category 5--Part 2 (``Information Security'') of the Commerce Control 
List, that have not been reviewed by BIS and released from the ``EI'' 
and ``NS'' controls of ECCN 5A002 or 5D002 in accordance with the 
requirements described in Sec.  742.15(b)(2) of the EAR. Exporters may, 
as part of a review request, ask that certain 5A002 and 5D002 parts, 
components and software also be made eligible for de minimis treatment 
(see Sec.  734.4(b) of the EAR). The review of de minimis eligibility 
will take into account U.S. national security interests.
    (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 BIS 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 6 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

[[Page 206]]

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, 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 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 publicly available.)

[61 FR 12740, Mar. 25, 1996, as amended at 61 FR 64274, Dec. 4, 1996; 61 
FR 68577, Dec. 30, 1996; 62 FR 25453, May 9, 1997; 63 FR 50520, Sept. 
22, 1998; 65 FR 38150, June 19, 2000; 65 FR 62604, Oct. 19, 2000; 67 FR 
38860, June 6, 2002]



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 BIS, 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 BIS. 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

[[Page 207]]

from BIS, and BIS has a duty to provide that classification to you. For 
further information on how to obtain classification assistance from BIS, 
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 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, and Libya; 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 and Rwanda, and 
Serbia and Montenegro the Country Chart provides for certain license 
requirements, and part

[[Page 208]]

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 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 under 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 foreign-made items that incorporate U.S.-origin items controlled 
for ``EI'' reasons under ECCN 5A002, 5D002 or 5E002 on the Commerce 
Control List (Supplement No.1 to Part 774 of the EAR) are subject to the 
EAR even if they incorporate less than the de minimis level of U.S. 
content. However, exporters may, as part of a review request, ask that 
certain 5A002 and 5D002 parts, components and software also be made 
eligible for de minimis treatment (see Sec.  734.4(b) of the EAR).
    (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, 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

[[Page 209]]

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). It is 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 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 BIS, 
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) Under License Exception TSU (Sec.  740.13 of the EAR), 
operational technology and software (OTS), sales technology (STS), and 
software updates (SUD) overcome General Prohibition Five (End-Use and 
End-User) (Sec.  736.2(b)(5) of the EAR) if all terms and conditions of 
these provisions are met by the exporter or reexporter.
    (i) Step 14: Embargoed countries and special destinations. If your 
destination for any item is Cuba, Iran, Iraq, Libya or Rwanda you must 
consider the requirements of parts 742 and 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.

[[Page 210]]

    (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.
    (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 BIS 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 Bureau of Customs and Border 
Protection with the appropriate Shipper's Export Declaration or 
Automated Export System record, 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; 62 FR 25453, May 9, 1997; 63 FR 50520, Sept. 
22, 1998; 65 FR 38150, June 19, 2000; 65 FR 62604, Oct. 19, 2000; 67 FR 
38860, June 6, 2002; 67 FR 54952, Aug. 27, 2002; 67 FR 70546, Nov. 25, 
2002; 68 FR 50472, Aug. 21, 2003]



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

[[Page 211]]

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 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.
    (iv) If you are exporting under License Exceptions GBS, CIV, LVS, 
CTP, TSR, or GOV, you should review Sec.  743.1 of the EAR to determine 
the applicability of certain reporting requirements.
    (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 BIS, 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; 63 
FR 2456, Jan. 15, 1998]

[[Page 212]]



Sec.  732.5  Steps regarding Shipper's Export Declaration or Automated 
Export System record, Destination Control Statements, and recordkeeping.

    (a) Step 27: Shipper's Export Declaration (SED) or Automated Export 
System (AES) record. Exporters or agents authorized to complete the 
Shipper's Export Declaration (SED), or to file SED information 
electronically using the Automated Export System (AES), should review 
Sec.  758.1 of the EAR to determine when an SED is required and what 
export control information should be entered on the SED or AES record. 
More detailed information about how to complete an SED or file the SED 
information electronically using AES may be found in the Bureau of 
Census Foreign Trade Statistics Regulations (FTSR) at 15 CFR part 30. 
Reexporters and firms exporting from abroad may skip Steps 27 through 29 
and proceed directly to Sec.  732.6.
    (1) Entering license authority. You must enter the correct license 
authority for your export on the SED or AES record (License number, 
License Exception symbol, or No License Required designator ``NLR'') as 
appropriate. See Sec.  758.1(g) of the EAR and 15 CFR 30.7(m) of the 
FTSR.
    (i) License number and expiration date. If you are exporting under 
the authority of a license, you must enter the license number on the SED 
or AES record. The expiration date must be entered on paper versions of 
the SED only.
    (ii) License Exception. If you are exporting under the authority of 
a License Exception, you must enter the correct License Exception symbol 
(e.g., LVS, GBS, CIV) on the SED or AES record. See Sec.  740.1 and 
Sec.  740.2 of the EAR.
    (iii) NLR. If you are exporting items for which no license is 
required, you must enter the designator NLR. You should use the NLR 
designator in two circumstances: first, when the items to be exported 
are subject to the EAR but not listed on the Commerce Control List (CCL) 
(i.e., items that are classified as EAR99), and second, when the items 
to be exported are listed on the CCL but do not require a license. Use 
of the NLR designator is also a representation that no license is 
required under any of the General Prohibitions set forth in part 736 of 
the EAR.
    (2) Item description. You must enter an item description identical 
to the item description on the license when a license is required, or 
enter an item description sufficient in detail to permit review by the 
U.S. Government and verification of the Schedule B Number (or Harmonized 
Tariff Schedule number) for License Exception shipments or shipments for 
which No License is Required (NLR). See Sec.  758.1(g) of the EAR; and 
15 CFR 30.7(l) of the FTSR.
    (3) Entering the ECCN. You must enter the correct Export Control 
Classification Number (ECCN) on the SED or AES record for all licensed 
and License Exception shipments, and ``No License Required'' (NLR) 
shipments of items having a reason for control other than anti-terrorism 
(AT). The only exception to this requirement would be the return of 
unwanted foreign origin items, meeting the provisions of License 
Exception TMP, under Sec.  740.9(b)(3). See Sec.  758.1(g) of the EAR.
    (b) Step 28: Destination Control Statement. The Destination Control 
Statement (DCS) must be entered on the invoice and on the bill of 
lading, air waybill, or other export control document that accompanies 
the shipment from its point of origin in the United States to the 
ultimate consignee or end-user abroad. The person responsible for 
preparation of those documents is responsible for entry of the DCS. The 
DCS is required for all exports from the United States of items on the 
Commerce Control List and is not required for items classified as EAR99, 
unless the export may be made under License Exception BAG or GFT (see 
part 740 of the EAR). Reexporters should review Sec.  752.15 of the EAR 
for DCS requirements when using a Special Comprehensive License; 
otherwise, DCS requirements do not apply to reexports. See Sec.  758.6 
of the EAR.
    (c) Step 29: Recordkeeping. Records of transactions subject to the 
EAR must be maintained for five years in accordance with the 
recordkeeping provisions of part 762 of the EAR.

[65 FR 42568, July 10, 2000]

[[Page 213]]



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.  758.4 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.  758.1 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.

[61 FR 12740, Mar. 25, 1996, as amended at 65 FR 42568, July 10, 2000]

[[Page 214]]

                        Supplement 1 to Part 732
[GRAPHIC] [TIFF OMITTED] TR09MY97.000


[62 FR 25454, May 9, 1997]

[[Page 215]]

                        Supplement 2 to Part 732
      [GRAPHIC] [TIFF OMITTED] TR09MY97.001
      

[62 FR 25455, May 9, 1997]

[[Page 216]]

Supplement No. 3 to Part 732--BIS'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) BIS 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 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 BIS 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 BIS in the form of an application for a license or in 
such other form as BIS 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. BIS 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

[[Page 217]]

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.

[61 FR 12740, Mar. 25, 1996. Redesignated and amended at 62 FR 25453, 
25456, May 9, 1997]



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.
734.5 Activities of U.S. and foreign persons subject to the EAR.
734.6 Assistance available from BIS 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. 
12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13020, 61 FR 54079, 
3 CFR, 1996 Comp. p. 219; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, August 22, 2001; Notice of November 9, 
2001, 66 FR 56965, November 13, 2001.

    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 
BIS exercises regulatory jurisdiction under the EAR.

[[Page 218]]

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 BIS 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 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 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.
    (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

[[Page 219]]

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 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, electro-
magnetic, photo optical, 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. See Sec. 740.13(e) of the EAR for 
notification requirements for exports or reexports of encryption source 
code and object code software considered to be publicly available 
consistent with the provisions of Sec.  734.3(b)(3) of the EAR.
    (iii) Subject to the General Prohibitions described in part 736 of 
the EAR, such precautions for Internet transfers of products eligible 
for export under Sec.  740.17 (b)(2) of the EAR (encryption software 
products, certain encryption source code and general purpose encryption 
toolkits) shall include such measures as:
    (A) The access control system, either through automated means or 
human intervention, checks the address of every system outside of the 
U.S. or Canada requesting or receiving a transfer and verifies such 
systems do not have a domain name or Internet address of a foreign 
government end-user (e.g., ``.gov,'' ``.gouv,'' ``.mil'' or similar 
addresses);
    (B) 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 Regulations, and anyone receiving such a transfer cannot 
export the software without a license or other authorization; and
    (C) Every party requesting or receiving a transfer of such software 
must acknowledge affirmatively that the software is not intended for use 
by a government end-user, as defined in part 772, and he or she 
understands the cryptographic software is subject to export controls 
under the Export Administration Regulations and anyone receiving the 
transfer cannot export the software without a license or other 
authorization. BIS will consider acknowledgments in electronic form 
provided they

[[Page 220]]

are adequate to assure legal undertakings similar to written 
acknowledgments.

[61 FR 12746, Mar. 25, 1996, as amended at 61 FR 68578, Dec. 30, 1996; 
63 FR 50520, Sept. 22, 1998; 64 FR 13339, Mar. 18, 1999; 65 FR 2496, 
Jan. 14, 2000; 67 FR 38860, June 6, 2002]



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 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). 
BIS 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

[[Page 221]]

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 and mass market encryption software with symmetric key length 
exceeding 64-bits controlled under ECCN 5D992, 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 greater than the 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; 62 FR 25456, May 9, 1997; 67 FR 38860, June 
6, 2002]



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 190,000 MTOPS containing 
U.S.-origin controlled semiconductors (other than memory circuits) 
classified under ECCN 3A001 to Computer Tier 3; or exceeding 28,000 
MTOPS containing U.S.-origin controlled semiconductors (other than 
memory circuits) classified under ECCN 3A001 or high speed interconnect 
devices (ECCN 4A994.j) to Computer Tier 4 countries described in Sec.  
742.12 of the EAR.
    (b) There is no de minimis level for foreign-made items that 
incorporate U.S.-origin items controlled for ``EI'' reasons under ECCN 
5A002, 5D002 or 5E002 on the Commerce Control List (Supplement No. 1 to 
part 774 the EAR). However, exporters may, as part of an encryption 
review request, ask that software controlled for EI reasons under ECCN 
5D002 and eligible for export under the ``retail'' or ``source code'' 
provisions of license exception ENC, and parts and components controlled 
under ECCN 5A002, be made eligible for de minimis treatment. The review 
of de minimis eligibility will take U.S. national security interests 
into account. Other encryption items controlled for NS or AT reasons 
under ECCNs 5D002, 5A992, 5D992, and 5E992 are not eligible for de 
minimis treatment, unless exporters have complied with the applicable 
notification or review requirements described in Sec.  740.13(e), Sec.  
742.15(b)(1), and Sec.  742.15(b)(2) of the EAR. Encryption items 
controlled by ECCN 5A992, 5D992, or 5E992 and described in Sec.  
742.15(b)(3) of the EAR are not subject to these notification or review 
requirements.
    (c) Except as provided in paragraph (a) and (b) of this section for 
certain computers and items controlled for EI reasons, the following 
reexports are not subject to the EAR when made to either an embargoed 
country listed in part 746 of the EAR or to a terrorist-supporting 
country listed in Country Group E:1 (see Supplement No. 1 to part 740 of 
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.

[[Page 222]]

    (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 reexports 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; 62 FR 25456, May 
9, 1997; 63 FR 50520, Sept. 22, 1998; 64 FR 13339, Mar. 18, 1999; 64 FR 
42011, Aug. 3, 1999; 65 FR 2496, Jan. 14, 2000; 65 FR 60854, Oct. 13, 
2000; 65 FR 62604, Oct. 19, 2000; 66 FR 42109, Aug. 10, 2001; 67 FR 
10610, 10613, Mar. 8, 2002; 67 FR 38860, June 6, 2002; 68 FR 35784, June 
17, 2003]



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 nuclear explosive devices, chemical or biological weapons, missile 
technology as described in Sec.  744.6 of the EAR, and the proliferation 
of chemical weapons as described in part 745 of the EAR.
    (b) Activities of U.S. or foreign persons prohibited by any order 
issued under the EAR, including a Denial 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; 
64 FR 27141, May 18, 1999; 64 FR 47105, Aug. 30, 1999]



Sec.  734.6  Assistance available from BIS 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 BIS 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

[[Page 223]]

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, BIS 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 BIS licensing or other 
requirements you may ask BIS 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)).
    (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 and mass market encryption software with 
symmetric key length exceeding 64-bits controlled under ECCN 5D992 
remain subject to the EAR. See Sec.  740.13(e) of the EAR for certain 
exports and reexports under license exception.

[61 FR 12746, Mar. 25, 1996, as amended at 61 FR 65464, Dec. 13, 1996; 
61 FR 68578, Dec. 30, 1996; 65 FR 2496, Jan. 14, 2000; 67 FR 38861, June 
6, 2002]



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

[[Page 224]]

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.  734.11(b) 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 (Supplement No. 1 to Part 774 of the EAR) or to mass market 
encryption software with symmetric key length exceeding 64-bits 
controlled under ECCN 5D992. See Sec.  740.13(e) of the EAR for certain 
exports and reexports under license exception.
    (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.  734.11 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 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(b) 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,

[[Page 225]]

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; 
62 FR 25456, May 9, 1997; 65 FR 2496, Jan. 14, 2000; 67 FR 38861, June 
6, 2002]



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 or to mass market encryption software with 
symmetric key length exceeding 64-bits controlled under ECCN 5D992. See 
Sec.  740.13(e) of the EAR for certain exports and reexports under 
license exception.

[67 FR 38861, June 6, 2002]



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.



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

[[Page 226]]

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 BIS 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 
(Sec. Sec.  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 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

[[Page 227]]

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(a) 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(a)(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(a)(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 
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?

[[Page 228]]

    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(a) 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 Industry 
and Security, 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, 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

[[Page 229]]

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 
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

[[Page 230]]

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 BIS concludes in a classification letter to 
be sufficiently low so as not to subject it to the EAR?
    Answer: In response to classification requests, BIS 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 BIS.

                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 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

[[Page 231]]

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; 
62 FR 25456, May 9, 1997]

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 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) or 
under NLR for items classified as EAR99.
    (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 would require a license from BIS 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.

    Note to paragraph (a)--
    U.S. origin peripheral or accessory devices that are merely rack 
mounted with or cable connected into

[[Page 232]]

foreign equipment are not deemed to be incorporated components even 
though intended for use with products made abroad. Rather, such items 
are treated as U.S. items that retain their identity and remain subject 
to the EAR.

    (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 BIS 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 historic and estimated future 
software sales in units and value along with the rationale and basis for 
those estimates in the report. Unlike parts incorporated into 
commodities, the cost of U.S. software code will be attributed or 
allocated to the future sales of foreign-made software incorporating the 
U.S. code, to determine the percentage of U.S. controlled content. In 
making this calculation for foreign-made software, you must make an 
estimate of future software sales of that foreign software if it is 
commingled with or incorporated with the U.S. code. The value of the 
U.S. code commingled with or incorporated into the foreign made software 
shall be divided by the total selling price of all foreign-made software 
units already sold, plus the total selling price of all foreign-made 
software units estimated for future sales.
    (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 BIS 
concerning your report within thirty days after filing the report with 
BIS, 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 BIS. BIS may contact you concerning your report to 
inquire of you further or to indicate that BIS does not accept the 
assumptions or rationale for your calculations. If you receive such a 
contact or communication from BIS, you may not rely upon the de minimis 
exclusions for software and technology in Sec.  734.4 of this part until 
BIS 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

[[Page 233]]

the person BIS may contact concerning your report.

[61 FR 12746, Mar. 25, 1996, as amended at 62 FR 25456, May 9, 1997]



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. 
12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13020, 61 FR 54079, 
3 CFR, 1996 Comp. p. 219; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of 
November 9, 2001, 66 FR 56965, 3 CFR, 2001 Comp., p. 917; Notice of 
August 14, 2002, 67 FR 53721, August 16, 2002.



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 Industry and Security (BIS) or

[[Page 234]]

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 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 in part 740 of the EAR 
supersedes General Prohibition Two 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, 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, as 
defined in paragraph (o)(3)(i) of Supplement No. 2 to part 748 of the 
EAR, or as a precondition for the use of License Exception TSR at 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

[[Page 235]]

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:
    (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. 
Orders denying export privileges are published in the Federal Register 
when they are issued and are the legally controlling documents in 
accordance with their terms. BIS also maintains compilations of persons 
denied export privileges on a Web site and as a supplement to the 
unofficial edition of the EAR available by subscription from the 
Government Printing Office. BIS may, on an exceptional basis, authorize 
activity otherwise prohibited by a denial order. See Sec.  764.3(a)(2) 
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 
or 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 General Prohibition Six are described in 
part 746 of the EAR, on Embargoes and Other Special Controls. Unless a 
License Exception or other authorization is authorized in part 746 of 
the EAR, the License Exceptions described in part 740 of the EAR are not 
available to overcome this general prohibition.
    (7) General Prohibition Seven--Support of proliferation activities 
(U.S. person proliferation activity)--(i) Support of proliferation 
activities (U.S. person proliferation activity). (A) 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 BIS, 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.
    (B) If you are a U.S. person as that term is defined in Sec.  
744.6(c) of the EAR, you may not export a Schedule 1 chemical listed in 
Supplement No. 1 to Part 745 without first complying with the provisions 
of Sec. Sec.  742.18 and 745.1 of the EAR.
    (C) If you are a U.S. person as that term is defined in Sec.  
744.6(c) of the EAR, you may not export a Schedule 3 chemical listed in 
Supplement No. 1 to Part 745 to a destination not listed in Supplement 
No. 2 to Part 745 without complying with the End-Use Certificate 
requirements in Sec.  745.2 of the EAR that

[[Page 236]]

apply to Schedule 3 chemicals controlled for CW reasons in ECCN 1C350, 
ECCN 1C355, or ECCN 1C395.
    (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 or reexport 
an item through or transit through a country listed in paragraph 
(b)(8)(ii) of this section unless a License Exception or license 
authorizes such an export or reexport directly to such a country of 
transit, or unless such an export or reexport is eligible to such a 
country of transit without a license.
    (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.
    (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; 62 FR 25456, May 9, 1997; 64 FR 27141, May 18, 
1999; 64 FR 47105, Aug. 30, 1999; 65 FR 14859, Mar. 20, 2000; 65 FR 
38150, June 19, 2000; 66 FR 49523, Sept. 28, 2001; 67 FR 37981, May 31, 
2002; 67 FR 54953, Aug. 27, 2002]

              Supplement No. 1 to Part 736--General Orders

    General Order No. 1 of September 16, 1998; Establishing a 24-month 
validity period on reexport authorizations issued without a validity 
period and revoking those exceeding that period.
    (a) Reexport authorizations issued within 24-months of the General 
Order. All reexport authorizations issued with no validity period within 
the 24-months preceding September 16, 1998 shall be deemed to have an 
expiration date which shall be the date 24-months from the date of 
issuance of the reexport authorization or November 16, 1998, whichever 
is longer.
    (b) Reexport authorizations issued before the 24-month period 
preceding the General Order. For reexport authorizations issued with no 
validity period before the 24-month period preceding September 16, 1998:
    (1) Effective September 16, 1998, all such outstanding reexport 
authorizations for terrorist-supporting countries (see parts 742 and 746 
of the EAR) are revoked.
    (2) Effective November 16, 1998, all other such outstanding reexport 
authorizations are revoked.
    (c) Extensions. If necessary, you may request extensions of such 
authorizations according to procedures set forth in Sec.  750.7(g) of 
the EAR.
    (d) Specific Notice from BIS. If you have received, or should you 
receive, specific notice from BIS with regard to a reexport 
authorization covered by this General Order, informing you of a 
revocation, suspension, or revision (including validity period) of any 
such reexport authorization, then the terms of that specific notice will 
be controlling.
    (e) Definition of ``authorization''. The term ``authorization'' as 
used in this General Order encompasses the range of reexport 
authorizations granted by BIS, which includes licenses, individual 
letters, and other types of notifications.
    General Order No. 2 [Reserved]
    General Order No. 3 of December 7, 2000; Imposition of license 
requirements and prohibition on use of any License Exceptions for 
exports and reexports of items subject to the EAR that are listed on the 
Commerce Control List to Shaykh Hamad bin Ali bin Jaber Al-Thani and 
entities related to or controlled by him, as follows: Gulf Falcon

[[Page 237]]

Group, Ltd. located in Doha, Qatar; Air Gulf Falcon located in Sharjah, 
United Arab Emirates; Falcon Aircraft Maintenance Center located in 
Sharjah, United Arab Emirates; and Falcon Air Leasing located in 
Sharjah, United Arab Emirates.
    (a) License requirements. Effective December 7, 2000, a license is 
required for all items subject to the EAR that are listed on the 
Commerce Control List destined to or for: Shaykh Hamad bin Ali bin Jaber 
Al-Thani and entities related to or controlled by him, as follows: Gulf 
Falcon Group, Ltd. located in Doha, Qatar; Air Gulf Falcon located in 
Sharjah, United Arab Emirates; Falcon Aircraft Maintenance Center 
located in Sharjah, United Arab Emirates; and Falcon Air Leasing located 
in Sharjah, United Arab Emirates.
    (b) License Exceptions. No License Exceptions are available for 
exports or reexports to the entities described in paragraph (a) of this 
General Order.
    (c) Licensing policy. Items will be reviewed on a case-by-case basis 
to determine whether there is a risk of diversion contrary to United 
Nations sanctions or U.S. law.

[63 FR 49426, Sept. 16, 1998, as amended at 65 FR 76562, Dec. 7, 2000]

           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 BIS 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 BIS 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 BIS on the representation, express or implied, that such 
person, through personal acquaintance or otherwise, possesses special 
influence over any officer or employee of BIS;
    (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 BIS'' and ``appear before BIS'' include:
    (A) The submission on behalf of another of applications for export 
licenses or other documents required to be filed with BIS, or the 
execution of the same;
    (B) Conferences or other communications on behalf of another with 
officers or employees of BIS for the purpose of soliciting or expediting 
approval by BIS 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 BIS;
    (C) Participating on behalf of another in any proceeding pending 
before BIS; 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

[[Page 238]]

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; 30 U.S.C. 185(s), 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; Sec. 901-911, Pub. L. 106-387; Sec. 221, Pub. L. 107-56; 
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 
44025, 3 CFR, 2001 Comp., p. 783; Notice of August 7, 2003, 68 FR 47833, 
August 11, 2003.

    Source: 61 FR 12756, 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 
Industry and Security (BIS) 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 BIS. 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. BIS 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
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

[[Page 239]]

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., 3 A001). 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).
    (iii) The last digit within each entry (e.g., 3A001) is used for the 
sequential numbering of ECCNs to differentiate between entries on the 
CCL.
    (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
CW Chemical Weapons Convention
EI Encryption Items
FC Firearms Convention
MT Missile Technology
NS National Security
NP Nuclear Nonproliferation
RS Regional Stability
SS Short Supply
XP Computers
SI Significant Items

    (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 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 term ``Yes'' (followed in some 
instances

[[Page 240]]

by the scope of Yes) appears next to each available ECCN-driven License 
Exception. The term ``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. The list of License Exceptions 
contained within each ECCN is not an all-exclusive list. Other License 
Exceptions, not based on particular ECCNs, may be available. Consult 
part 740 of the EAR to determine eligibility for non-ECCN-driven License 
Exceptions.
    (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; 
62 FR 25456, May 9, 1997; 64 FR 17970, Apr. 13, 1999; 27141, May 18, 
1999]



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.
    (i) 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.
    (ii) ECCNs 0A982, 0A985, 0A988, 0A989, 0A999, 0B986, 0B999, 0D999, 
0E982, 1A999, 1B999, 1C355, 1C995, 1C998, 1C999, 1D999, 2A994, 2A999, 
2B999, 2D994, 2E994, 3A999, and 6A999. 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 241]]

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.

[61 FR 12756, Mar. 25, 1996, as amended at 63 FR 42228, Aug. 7, 1998; 65 
FR 55178, Sept. 13, 2000]



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 that General Prohibitions Four 
through Ten do not apply to your proposed transaction and that any 
applicable notification or review requirements described in Sec.  
742.15(b)(1) and (b)(2) of the EAR have been met for certain encryption 
items controlled under ECCNs 5A992, 5D992 and 5E992, you may effect your 
shipment using the symbol ``NLR''. Proceed to parts 758 and 762 of

[[Page 242]]

the EAR for information on export clearance procedures and recordkeeping 
requirements. Note that although you may stop after determining a 
license is required based on the first Reason for Control, it is best to 
work through each applicable Reason for Control. A full analysis of 
every possible licensing requirement based on each applicable Reason for 
Control is required to determine the most advantageous License Exception 
available for your particular transaction and, if a license is required, 
ascertain the scope of review conducted by BIS on your license 
application.
    (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.

[61 FR 12756, Mar. 25, 1996, as amended at 67 FR 38861, June 6, 2002]

[[Page 243]]

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

                                                                                      [Reason for control]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                   Chemical and biological          Nuclear       National  security   Missile       Regional        Firearms           Crime control           Anti-terrorism
                                           weapons             nonproliferation  --------------------   tech         stability      convention -------------------------------------------------
           Countries           --------------------------------------------------                    ------------------------------------------
                                  CB 1      CB 2      CB 3      NP 1      NP 2      NS 1      NS 2      MT 1      RS 1      RS 2       FC 1       CC 1      CC 2      CC 3      AT 1      AT 2
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Afghanistan...................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Albania.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Algeria.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Andorra.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Angola \1\....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Antigua and Barbuda...........        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Argentina.....................        X   ........  ........  ........  ........        X         X         X         X         X          X          X   ........        X   ........  ........
Armenia.......................        X         X         X         X   ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Australia.....................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........  ........  ........  ........  ........  ........
Austria.......................        X   ........  ........  ........  ........        X   ........        X         X         X   ..........        X   ........        X   ........  ........
Azerbaijan....................        X         X         X         X   ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Bahamas, The..................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Bahrain.......................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Bangladesh....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Barbados......................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Belarus.......................        X         X         X   ........  ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Belgium.......................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........  ........  ........  ........  ........  ........
Belize........................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Benin.........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Bhutan........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Bolivia.......................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Bosnia and Herzegovina........        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Botswana......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Brazil........................        X         X   ........  ........  ........        X         X         X         X         X          X          X   ........        X   ........  ........
Brunei........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Bulgaria......................        X   ........  ........  ........  ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Burkina Faso..................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Burma.........................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Burundi.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Cambodia......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Cameroon......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Canada........................        X   ........  ........  ........  ........  ........  ........  ........  ........  ........         X    ........  ........  ........  ........  ........
Cape Verde....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Central African Republic......        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Chad..........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Chile.........................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
China.........................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Colombia......................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Comoros.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Congo.........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Costa Rica....................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........

[[Page 244]]

 
Cote d'Ivoire.................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Croatia.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Cuba..........................                  See part 746 of the EAR to determine whether a license is required in order to export or reexport to this destination.
Cyprus........................        X   ........  ........  ........  ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Czech Republic................        X   ........  ........  ........  ........        X         X         X         X   ........  ..........  ........  ........  ........  ........  ........
Denmark.......................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........  ........  ........  ........  ........  ........
Djibouti......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Dominica......................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Dominican Republic............        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Ecuador.......................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Egypt.........................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
El Salvador...................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Equatorial Guinea.............        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Eritrea.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Estonia.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Ethiopia......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Fiji..........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X         X         X   ........  ........
Finland.......................        X   ........  ........  ........  ........        X   ........        X         X         X   ..........        X   ........        X   ........  ........
France........................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........  ........  ........  ........  ........  ........
Gabon.........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Gambia, The...................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Georgia.......................        X         X         X         X   ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Germany.......................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........  ........  ........  ........  ........  ........
Ghana.........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Greece........................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........  ........  ........  ........  ........  ........
Grenada.......................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Guatemala.....................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Guinea........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Guinea-Bissau.................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Guyana........................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Haiti.........................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Honduras......................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Hong Kong.....................        X         X   ........        X   ........        X   ........        X         X         X   ..........        X   ........        X   ........  ........
Hungary.......................        X   ........  ........  ........  ........        X         X         X         X   ........  ..........  ........  ........  ........  ........  ........
Iceland.......................        X   ........  ........        X   ........        X         X         X         X   ........  ..........  ........  ........  ........  ........  ........
India.........................        X         X         X         X         X         X         X         X         X         X   ..........        X   ........        X   ........  ........
Indonesia.....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Iran..........................                  See part 746 of the EAR to determine whether a license is required in order to export or reexport to this destination.
Iraq \1\......................                  See part 746 of the EAR to determine whether a license is required in order to export or reexport to this destination.
Ireland.......................        X   ........  ........  ........  ........        X   ........        X         X         X   ..........        X   ........        X   ........  ........
Israel........................        X         X         X         X         X         X         X         X         X         X   ..........        X   ........        X   ........  ........
Italy.........................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........  ........  ........  ........  ........  ........

[[Page 245]]

 
Jamaica.......................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Japan.........................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........  ........  ........  ........  ........  ........
Jordan........................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Kazakhstan....................        X         X         X   ........  ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Kenya.........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Kiribati......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Korea, North..................        X         X         X         X         X         X         X         X         X         X   ..........        X         X         X         X         X
Korea, South..................        X   ........  ........  ........  ........        X   ........        X         X         X   ..........        X   ........        X   ........  ........
Kuwait........................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Kyrgyzstan....................        X         X         X         X   ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Laos..........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Latvia........................        X         X   ........  ........  ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Lebanon.......................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Lesotho.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Liberia.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Libya.........................                  See part 746 of the EAR to determine whether a license is required in order to export or reexport to this destination.
Liechtenstein.................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Lithuania.....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Luxembourg....................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........  ........  ........  ........  ........  ........
FYROM (Macedonia).............        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Macau.........................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Madagascar....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Malawi........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Malaysia......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Maldives......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Mali..........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Malta.........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Marshall Islands..............        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Mauritania....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Mauritius.....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Mexico........................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Micronesia....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Moldova.......................        X         X         X         X   ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Monaco........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Mongolia......................        X         X         X         X   ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Morocco.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Mozambique....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Namibia.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Nauru.........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Nepal.........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Netherlands...................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........  ........  ........  ........  ........  ........
New Zealand...................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........  ........  ........  ........  ........  ........
Nicaragua.....................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Niger.........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Nigeria.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Norway........................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........  ........  ........  ........  ........  ........
Oman..........................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Pakistan......................        X         X         X         X         X         X         X         X         X         X   ..........        X   ........        X   ........  ........
Palau.........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Panama........................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........

[[Page 246]]

 
Papua New Guinea..............        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Paraguay......................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Peru..........................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Philippines...................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Poland........................        X   ........  ........  ........  ........        X         X         X         X   ........  ..........  ........  ........  ........  ........  ........
Portugal......................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........  ........  ........  ........  ........  ........
Qatar.........................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Romania.......................        X   ........  ........  ........  ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Russia........................        X         X         X   ........  ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Rwanda \1\....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X         X         X   ........  ........
St. Kitts and Nevis...........        X         X         X         X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
St. Lucia.....................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
St. Vincent and Grenadines....        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
San Marino....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Sao Tome and Principe.........        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Saudi Arabia..................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Senegal.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Seycheles.....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Sierra Leone..................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Singapore.....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Slovakia......................        X   ........  ........  ........  ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Slovenia......................        X         X   ........  ........  ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Solomon Islands...............        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Somalia.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
South Africa..................        X         X   ........  ........  ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Spain.........................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........  ........  ........  ........  ........  ........
Sri Lanka.....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Sudan.........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X         X         X
Suriname......................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Swaziland.....................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Sweden........................        X   ........  ........  ........  ........        X   ........        X         X         X   ..........        X   ........        X   ........  ........
Switzerland...................        X   ........  ........  ........  ........        X   ........        X         X         X   ..........        X   ........        X   ........  ........
Syria.........................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X         X   ........
Taiwan........................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Tajikistan....................        X         X         X         X   ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Tanzania......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Thailand......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Togo..........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Tonga.........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Trinidad and Tobago...........        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Tunisia.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Turkey........................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........  ........  ........  ........  ........  ........

[[Page 247]]

 
Turkmenistan..................        X         X         X         X   ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Tuvalu........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Uganda........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Ukraine.......................        X         X         X   ........  ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
United Arab Emirates..........        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
United Kingdom................        X   ........  ........  ........  ........        X   ........        X         X   ........  ..........  ........  ........  ........  ........  ........
Uruguay.......................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Uzbekistan....................        X         X         X         X   ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Vanuatu.......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Vatican City..................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Venezuela.....................        X         X   ........        X   ........        X         X         X         X         X          X          X   ........        X   ........  ........
Vietnam.......................        X         X         X         X   ........        X         X         X         X         X   ..........        X         X   ........  ........  ........
Western Sahara................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Western Samoa.................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Yemen.........................        X         X         X         X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Yugoslavia (Serbia and                X         X   ........        X   ........        X         X         X         X         X   ..........        X         X         X   ........  ........
 Montenegro), Federal Republic
 of...........................
Zaire.........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Zambia........................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
Zimbabwe......................        X         X   ........        X   ........        X         X         X         X         X   ..........        X   ........        X   ........  ........
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ This country is subject to United Nations Sanctions. See part 746 of the EAR for additional OFAC licensing requirements that may apply to your proposed transaction.


[64 FR 17970, Apr. 13, 1999, as amended at 64 FR 28908, May 28, 1999; 64 
FR 42011, Aug. 3, 1999; 64 FR 60340, Nov. 5, 1999; 65 FR 38150, June 19, 
2000; 65 FR 60854, Oct. 13, 2000; 66 FR 12846, Mar. 1, 2001; 66 FR 
18402, Apr. 9, 2001; 66 FR 49523, Sept. 28, 2001; 67 FR 10613, Mar. 8, 
2002; 67 FR 11897, Mar. 18, 2002; 67 FR 37981, May 31, 2002; 67 FR 
55596, Aug. 29, 2002; 67 FR 70546, Nov. 25, 2002; 68 FR 60289, Oct. 22, 
2003]

[[Page 248]]



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 (KMI).
740.9 Temporary imports, exports, and reexports (TMP).
740.10 Servicing and replacement of parts and equipment (RPL).
740.11 Governments, international organizations, and international 
          inspections under the Chemical Weapons Convention (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).
740.17 Encryption commodities and software (ENC).
740.18 Agricultural commodities (AGR).

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
Supplement No. 3 to Part 740--License Exception ENC Country Group

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; Sec. 
901-911, Pub. L. 106-387; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 
228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of 
August 7, 2003, 68 FR 47833, August 11, 2003.

    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 Prohibition One, Two, Three, 
or Eight, as indicated under one or more of the Export Control 
Classification Numbers (ECCNs) in the Commerce Control List (CCL) in 
Supplement No. 1 to part 774 of the EAR and items subject to the EAR 
that would require a license based on the embargo policies described in 
part 746 of the EAR. If your export or reexport is subject to General 
Prohibition Six for embargoed destinations, refer to part 746 of the EAR 
to determine the availability of any License Exceptions. Special 
commodity controls apply to short supply items. License 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 to General 
Prohibition Five, consult part 744 of the EAR. If your export or 
reexport is subject to General Prohibitions Four, Seven, 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 or Automated Export System (AES) 
record. You must enter on any required Shipper's Export Declaration 
(SED) or Automated Export System (AES) record the correct License 
Exception symbol (e.g., LVS, GBS, CIV) and the correct Export Control 
Classification Number (ECCN) (e.g., 4A003, 5A002) for all shipments of 
items exported under a License Exception. Items temporarily in the 
United States meeting the provisions of License Exception TMP, under 
Sec.  740.9(b)(3), are excepted from this requirement. See Sec.  758.1 
of the EAR for Shipper's Export Declaration or Automated Export System 
(AES) requirements.
    (e) Destination Control Statement. You may be required to enter an 
appropriate Destination Control Statement

[[Page 249]]

on commercial documents in accordance with Destination Control Statement 
requirements of Sec.  758.6 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; 62 
FR 25457, May 9, 1997; 65 FR 42568, July 10, 2000; 66 FR 36680, July 12, 
2001; 66 FR 42109, Aug. 10, 2001; 68 FR 50472, Aug. 21, 2003]



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 or reexport is subject to one of the ten General 
Prohibitions, is not eligible for a License Exception, and has not been 
authorized by BIS.
    (3) 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.  740.11(b)(2)(ii) of this part, Governments 
(GOV)).
    (4) The commodity you are shipping is a specially designed crime 
control and detection instrument or equipment 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.  740.14(e) of this part (shotguns and shotgun shells).
    (5) The item is controlled for missile technology (MT) reasons, 
except that the items described in ECCNs 6A008, 7A001, 7A002, 7A004, 
7A101, 7A102, 7A103, 7A104, 7B001, 7D001, 7D002, 7D003, 7D101, 7D102, 
7E003, or 7E101, may be exported as part of a manned aircraft, land 
vehicle or marine vehicle or in quantities appropriate for replacement 
parts for such applications under Sec.  740.9(a)(2)(ii) (License 
Exception TMP for kits consisting of replacement parts), Sec.  740.10 
(License Exception RPL), Sec.  740.13 (License Exception TSU), or Sec.  
740.15(c) (License Exception AVS for equipment and spare parts for 
permanent use on a vessel or aircraft).
    (6) The export or reexport is to an embargoed destination (Cuba, 
Iran, Iraq, and Libya), unless a license exception or portion thereof is 
specifically listed in the license exceptions paragraph pertaining to a 
particular embargoed country in part 746 of the EAR.
    (7) ``Space qualified'' items. Commodities defined in ECCNs 
3A001.b.8 (Traveling Wave Tube Amplifiers (TWTAs) exceeding 18 GHz), 
6A002.e, 6A008.j.1, or 6A998.b; ``software'' for commodities defined in 
ECCNs 3A001.b.8 (Traveling Wave Tube Amplifiers (TWTAs) exceeding 18 
GHz), 6A002.e, 6A008.j.1, or 6A998.b and controlled under ECCNs 3D001 
(Traveling Wave Tube Amplifiers (TWTAs) exceeding 18 GHz), 6D001, 6D002, 
6D104, 6D991; and ``technology'' for commodities defined in ECCNs 
3A001.b.8 (Traveling Wave Tube Amplifiers (TWTAs) exceeding 18 GHz), 
6A002.e, 6A008.j.1, or 6A998.b and controlled under ECCNs 3E001, 6E001, 
6E002, 6E101, 6E102, 6E991.
    (8) The item is controlled under ECCNs 2A983, 2D983 or 2E983 and the 
License Exception is other than:
    (i) RPL, under the provisions of Sec.  740.10, including Sec.  
740.10(a)(3)(v), which prohibits exports and reexports of replacement 
parts to countries in Country Group E:1 (see Supplement 1 to part 740));
    (ii) GOV, restricted to eligibility under the provisions of Sec.  
740.11(b)(2)(ii); or
    (iii) TSU, under the provisions of Sec.  740.13(a) and (c).
    (b) All License Exceptions are subject to revision, suspension, or 
revocation, in whole or in part, without notice. It may be necessary for 
BIS 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.
    (c) BIS may by informing the exporter, suspend or revoke any License 
Exception in order to comply with U.S. Wassenaar obligations. In 
addition, BIS

[[Page 250]]

may inform an exporter, that before using any License Exception, a 
notice be submitted with BIS concerning the proposed export.

[61 FR 12768, Mar. 25, 1996, as amended at 61 FR 64274, Dec. 4, 1996; 62 
FR 25457, May 9, 1997; 63 FR 2456, Jan. 15, 1998; 64 FR 13339, Mar. 18, 
1999; 66 FR 36680, July 12, 2001; 67 FR 59725, Sept. 23, 2002; 68 FR 
16211, Apr. 3, 2003]



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 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.

[[Page 251]]

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.
    (5) Exports of encryption items. For components or spare parts 
controlled for ``EI'' reasons under ECCN 5A002, exports under this 
License Exception must be destined to support an item previously 
authorized for export.
    (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.
    (f) Reporting requirements. See Sec.  743.1 of the EAR for reporting 
requirements for exports of certain commodities under License Exception 
LVS.

[61 FR 64274, Dec. 4, 1996, as amended at 63 FR 2456, Jan. 15, 1998; 63 
FR 50520, Sept. 22, 1998]



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

    License Exception GBS authorizes exports and reexports to Country 
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. See Sec.  743.1 of the 
EAR for reporting requirements for exports of certain commodities under 
License Exception GBS.

[63 FR 2456, Jan. 15, 1998]



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, except North 
Korea. (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. See Sec.  
743.1 of the EAR for reporting requirements for exports of certain 
commodities under License Exception CIV.

[61 FR 64275, Dec. 4, 1996, as amended at 63 FR 2456, Jan. 15, 1998; 65 
FR 38150, June 19, 2000]



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

[[Page 252]]

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 BIS 
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 BIS 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, including communications via facsimile, 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 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) Reporting requirements. See Sec.  743.1 of the EAR for reporting 
requirements for exports of certain items under License Exception TSR. 
Note that reports are not required for release of technology or source 
code subject to the EAR to foreign nationals in the U.S. under the 
provisions of License Exception TSR.

[61 FR 64275, Dec. 4, 1996, as amended at 63 FR 50520, Sept. 22, 1998; 
63 FR 55019, Oct. 14, 1998]



Sec.  740.7  Computers (CTP).

    (a) Scope. License Exception CTP authorizes exports and reexports of 
computers, including ``electronic assemblies'' and specially designed 
components therefor controlled by ECCN 4A003, exported or reexported 
separately or as part of a system for consumption in Computer Tier 
countries as provided by this section. When evaluating your computer to 
determine License Exception CTP eligibility, use the CTP parameter to 
the exclusion of other technical parameters for computers classified 
under ECCN 4A003.a or .b, and ``electronic assemblies'' under ECCN 
4A003.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).
    (b) Restrictions. (1) Related equipment controlled under 4A003.d and 
.g may not be exported or reexported under

[[Page 253]]

this License Exception when exported or reexported separately from 
eligible computers authorized under this License Exception.
    (2) 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 that commercial consignees 
described in Supplement No. 3 to part 742 of the EAR are prohibited only 
from giving such nationals user-accessible programmability.
    (3) Computers eligible for License Exception CTP may not be 
reexported or retransferred without prior authorization from BIS, 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 of the EAR. 
Additionally, the end-use and end-user restrictions in paragraph (d)(3) 
of this section must be conveyed to any consignee in Computer Tier 3.
    (4) 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.
    (c) Computer Tier 1--(1) Eligible countries. The countries that are 
eligible to receive exports under this License Exception include Antigua 
and Barbuda, Argentina, Australia, Austria, Bahamas, Barbados, 
Bangladesh, Belgium, Belize, Benin, Bhutan, Bolivia, Botswana, Brazil, 
Brunei, Burkina Faso, Burma, Burundi, Cameroon, Cape Verde, Central 
African Republic, Chad, Czech Republic, Chile, Colombia, Congo, Costa 
Rica, Cote d'Ivoire, Cyprus, Denmark, Dominica, Dominican Republic, 
Ecuador, El Salvador, Equatorial Guinea, Eritrea, Estonia, Ethiopia, 
Fiji, Gabon, Finland, France, Gambia (The), Germany, Ghana, Greece, 
Grenada, Guatemala, Guinea, Guinea-Bissau, Guyana, Haiti, Honduras, Hong 
Kong, Hungary, Iceland, Indonesia, Ireland, Italy, Jamaica, Japan, 
Kenya, Kiribati, Korea (Republic of), Lesotho, Liberia, Liechtenstein, 
Lithuania, Luxembourg, Madagascar, Malawi, Malaysia, Maldives, Mali, 
Malta, Marshall Islands, Mauritius, Mexico, Micronesia (Federated States 
of), Monaco, Mozambique, Namibia, Nauru, Nepal, Netherlands, New 
Zealand, Nicaragua, Niger, Nigeria, Norway, Palau, Panama, Papua New 
Guinea, Paraguay, Peru, Philippines, Poland, Portugal, Romania, Rwanda, 
St. Kitts & Nevis, St. Lucia, St. Vincent and Grenadines, Sao Tome & 
Principe, San Marino, Senegal, Seychelles, Sierra Leone, Singapore, 
Slovakia, Slovenia, Solomon Islands, Somalia, South Africa, Spain, Sri 
Lanka, Surinam, Swaziland, Sweden, Switzerland, Taiwan, Tanzania, Togo, 
Tonga, Thailand, Trinidad and Tobago, Turkey, Tuvalu, Uganda, United 
Kingdom, Uruguay, Vatican City, Venezuela, Western Sahara, Western 
Samoa, Zaire, Zambia, and Zimbabwe. As of May 2, 2002, Latvia is a 
Computer Tier 1 country.
    (2) Eligible commodities. All computers, including electronic 
assemblies and specially designed components therefor are eligible for 
License Exception CTP to Tier 1 destinations, subject to the 
restrictions in paragraph (b) of this section.
    (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, Georgia, 
India, Israel, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Laos, Latvia, 
Lebanon, Macau, Macedonia (The Former Yugoslav Republic of), Mauritania, 
Moldova, Mongolia, Morocco, Oman, Pakistan, Qatar, Russia, Saudi Arabia, 
Tajikistan, Tunisia, Turkmenistan, Ukraine, United Arab Emirates, 
Uzbekistan, Vanuatu, Vietnam, Yemen, and Federal Republic of Yugoslavia 
(Serbia and Montenegro). As of May 2, 2002, Latvia is moved to Computer 
Tier 1.
    (2) Eligible commodities. All computers, including electronic 
assemblies and specially designed components therefor having a CTP less 
than or equal to 190,000 MTOPS are eligible for License Exception CTP to 
Tier 3 destinations, subject to the restrictions in paragraphs (b) and 
(d)(3) of this section.

[[Page 254]]

    (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 nuclear, chemical, biological, or missile end-users and end-uses 
subject to license requirements under Sec.  744.2, Sec.  744.3, Sec.  
744.4, and Sec.  744.5 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 these end-users and end-uses in eligible countries 
are strictly prohibited without prior authorization.
    (e) Reporting requirements. See Sec.  743.1 of the EAR for reporting 
requirements of certain items under License Exception CTP.

[67 FR 10610, 10614, Mar. 8, 2002]



Sec.  740.8  Key management infrastructure (KMI).

    (a) Scope. License Exception KMI authorizes the export and reexport 
of certain encryption software and equipment.
    (b) Eligible commodities and software. (1) Recovery encryption 
commodities and software of any key length controlled under ECCNs 5A002 
and 5D002 that have been classified after a technical review through a 
classification request. Key escrow and key recovery commodities and 
software must meet the criteria identified in Supplement No. 4 to part 
742 of the EAR.
    (2) For such classification requests, indicate ``License Exception 
KMI'' in block 9 on Form BIS-748P. Submit the original request to BIS in 
accordance with Sec.  748.3 of the EAR and send a copy of the request 
to:

 Attn: KMI Encryption Request Coordinator, 9800 Savage Road, Suite 6131, 
Fort Meade, MD 20755-6000.

    (c) Eligible destinations. License Exception KMI is available for 
all destinations, except destinations in Country Group E:1 (see 
Supplement No. 1 to this part).
    (d) Reporting requirements. (1) You must provide semiannual reports 
to BIS 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 February 1 and no later 
than August 1 of any given year.

[61 FR 68579, Dec. 30, 1996, as amended at 63 FR 50520, Sept. 22, 1998; 
63 FR 72159, Dec. 31, 1998; 65 FR 2496, Jan. 14, 2000; 66 FR 42109, Aug. 
10, 2001]



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 BIS.
    (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 
tools of trade (commodities and software) for use by the exporter or 
employees of the exporter in a lawful enterprise or undertaking of the 
exporter. Eligible tools of trade may include, but are not limited to, 
such equipment and software as is necessary to commission or service 
goods, provided that the equipment or software is appropriate for this

[[Page 255]]

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 tools of trade must remain under the effective control 
of the exporter or the exporter's employee (see part 772 of the EAR for 
a definition of ``effective control''). All tools of trade 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 (see Supplement No.1 to part 740) or 
Sudan. For exports under this License Exception of laptops, handheld 
devices and other computers and equipment loaded with encryption 
commodities or software, refer to item interpretation 13 in Sec.  770.2 
of the EAR.
    (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.  
740.10(a) of this part).
    (iii) Exhibition and demonstration. You may export or reexport under 
this provision commodities and software for exhibition or demonstration 
in all countries except countries listed in Country Group E:1 (see 
Supplement No. 1 to this part) 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 (see part 772 of 
the EAR for a definition of ``effective control''). 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 BIS. However, before or after an exhibition or 
demonstration, pending movement to another site, return to the United 
States or the foreign reexporter, or BIS 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 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 may be exported or reexported to 
all destinations under this section, except Country Group E:2, Sudan or 
Syria.
    (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), 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

[[Page 256]]

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, or Sudan (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 Industry and Security, 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.)
    (ix) Temporary exports to a U.S. subsidiary, affiliate or facility 
in Country Group B. (A) Components, parts, tools or test equipment 
exported by a U.S. person to its subsidiary, affiliate or facility in a 
country listed in Country Group B (see Supplement No. 1 to this part) 
that is owned or controlled by the U.S. person, if the components, part, 
tool or test equipment is to be used for manufacture, assembly, testing, 
production or modification, provided that no components, parts, tools or 
test equipment or the direct product of such components, parts, tools or 
test equipment are transferred or reexported to a country other than the 
United States from such subsidiary, affiliate or facility without prior 
authorization by BIS.
    (B) For purposes of this paragraph (a)(2)(ix), U.S. person is 
defined as follows: an individual who is a citizen of the United States, 
an individual who is a lawful permanent resident as defined by 8 U.S.C. 
1101(a)(2) or an individual who is a protected individual as defined by 
8 U.S.C. 1324b(a)(3). U.S. person also means any juridical person 
organized under the laws of the United States, or any jurisdiction 
within the United States (e.g., corporation, business association, 
partnership, society, trust, or any other entity, organization or group 
that is incorporated to do business in the United States).
    (3) Special restrictions. (i) Destinations. (A) No commodity or 
software may be exported or reexported under paragraph (a) of this 
section to Country Group E:2 (see Supplement No. 1 to this part) except 
as permitted by paragraph (a)(2)(viii) of this section (news media). 
These destination restrictions apply to temporary exports to and for use 
on any vessel, aircraft or territory under the ownership, control, 
lease, or charter by any country in Country Group E:2, or any national 
thereof.
    (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

[[Page 257]]

    (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 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 BIS 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. BIS 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 BIS-748P, Multipurpose 
Application, 90 days prior to the expiration of the 12 month period. The 
request must be sent to BIS 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 BIS approves the extension 
request, the exporter will receive authorization for a one-time 
extension not to exceed six months. BIS 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.

[[Page 258]]

    (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.
    (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 or Sudan under 
this section.
    (iii) The following may not be exported in transit from the United 
States under this paragraph (b)(1):
    (A) Commodities shipped to the United States under an International 
Import Certificate, Form BIS-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 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 or Sudan (see Supplement No. 1 to 
part 740); or

[[Page 259]]

    (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 or Libya.
    (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 or Libya; 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 this 
paragraph (c) authorize exports and reexports to eligible countries of 
beta test software intended for distribution to the general public.
    (2) Eligible countries. Encryption software controlled under ECCN 
5D002 is not eligible for export or reexport to Cuba, Iran, Iraq, Libya, 
North Korea, Sudan or Syria under the provisions of this paragraph (c). 
All other beta test software is eligible for export or reexport to all 
destinations, except Cuba, Iran, Iraq, Libya, and Sudan under the 
provisions of this paragraph (c).
    (3) Eligible 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 (c). Encryption 
software controlled for ``EI'' reasons under ECCN 5D002 is eligible for 
export and reexport under this paragraph (c), provided that the exporter 
has submitted the information described in paragraph (c)(8) of this 
section by the time of export. Final encryption products produced by the 
testing consignee are subject to any applicable provisions in Sec.  
742.15(b)(2) of the EAR (for mass market encryption commodities and 
software with symmetric key length exceeding 64-bits) or Sec.  740.17 of 
the EAR (License Exception ENC), including review and reporting 
requirements.
    (4) Conditions for use. Exports or reexports of beta test software 
programs under the provisions of this paragraph (c) must meet all of the 
following conditions:
    (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 (see Supplement 2 to part 774 of the EAR) or the 
Cryptography Note in Category 5, Part 2 (``Information Security'') of 
the Commerce Control List (see Supplement No.1 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 exporting or reexporting any 
eligible software under this paragraph (c), 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 beta test software that was exported or reexported to them 
under the provisions of this paragraph (c).

[[Page 260]]

    (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.
    (8) Notification and reporting of beta test encryption software. (i) 
Notification. For beta test encryption software eligible under this 
license exception, you must submit to BIS, by the time of export, the 
information described in paragraphs (a) through (e) of Supplement 6 to 
part 742 of the EAR. Submit your notification by email to BIS at 
[email protected], and provide a copy of the notification to the ENC 
Encryption Request Coordinator at [email protected].
    (ii) Reporting. For beta test encryption software eligible under 
this license exception, the exporter must submit the names and addresses 
of the testing consignees (except names and addresses of individual 
consumers) and the name and version of the beta software consistent with 
Sec.  740.17(e)(5) of the EAR.

[61 FR 64277, Dec. 4, 1996. Redesignated at 61 FR 68579, Dec. 30, 1996, 
as amended at 61 FR 68580, Dec. 30, 1996; 62 FR 25457, May 9, 1997; 63 
FR 50521, Sept. 22, 1998; 65 FR 38150, June 19, 2000; 65 FR 42568, July 
10, 2000; 65 FR 62604, Oct. 19, 2000; 66 FR 42109, Aug. 10, 2001; 67 FR 
38861, June 6, 2002; 68 FR 35784, June 17, 2003]



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.  740.9(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 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.

[[Page 261]]

    (iii) No parts may be exported to any destination, except the 
countries listed in Supplement No. 3 to Part 744 of the EAR (Countries 
Not Subject to Certain Nuclear End-Use Restrictions in Sec.  744.2(a)) 
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 countries in Country 
Group E:1 (see Supplement No. 1 to this part) (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) No replacement parts may be exported to countries in Country 
Group E:1 if the commodity to be repaired is explosives detection 
equipment controlled under ECCN 2A983 or related software controlled 
under ECCN 2D983.
    (vi) 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 and North Korea. Commodities and software legally 
exported or reexported to a consignee in Country Group D:1 (except the 
People's Republic of China (PRC) and North Korea) (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 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) Terrorist supporting countries. No repaired commodity or 
software may be exported or reexported to countries in Country Group E:1 
(see Supplement No. 1 to this part).

[[Page 262]]

    (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 BIS.
    (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 BIS.
    (D) No shipment may be made to countries in Country Group E:1 (see 
Supplement No. 1 to this part), 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 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.
    (c) Special recordkeeping requirements: ECCNs 2A983 and 2D983. (1) 
In addition to any other recordkeeping requirements set forth elsewhere 
in the EAR, exporters are required to maintain records, as specified in 
this section, for any items exported or reexported pursuant to License 
Exception RPL to repair or service previously legally exported or 
reexported items controlled under ECCNs 2A983 and 2D983. The following 
information must be specially maintained for each such export or 
reexport transaction:
    (i) A description of the equipment replaced, repaired or serviced;
    (ii) The type of repair or service;
    (iii) Certification of the destruction or return of equipment 
replaced;
    (iv) Location of the equipment replaced, repaired or serviced;
    (v) The name and address of who received the items for replacement, 
repair or service;
    (vi) Quantity of items shipped; and
    (vii) Country of ultimate destination.
    (2) Records maintained pursuant to this section may be requested at 
any time by an appropriate BIS official as set forth in Sec.  762.7 of 
the EAR.

[61 FR 64279, Dec. 4, 1996. Redesignated at 61 FR 68579, Dec. 30, 1996, 
and amended at 63 FR 50522, Sept. 22, 1998; 65 FR 38150, June 19, 2000; 
65 FR 42568, July 10, 2000; 66 FR 42110, Aug. 10, 2001; 67 FR 55598, 
Aug. 29, 2002; 68 FR 16211, Apr. 3, 2003]

[[Page 263]]



Sec.  740.11  Governments, international organizations, and international 
inspections under the Chemical Weapons Convention (GOV).

    This License Exception authorizes exports and reexports for 
international nuclear safeguards; U.S. government agencies or personnel, 
and agencies of cooperating governments; and international inspections 
under the Chemical Weapons Convention.
    (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:
    (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) The following items controlled for national security (NS) 
reasons under Export Control Classification Numbers (ECCNs) identified 
on the Commerce Control List may not be exported or reexported under 
this License Exception to destinations other than Austria, Belgium, 
Canada, Denmark, Finland, France, Germany, Greece, Ireland, Italy, 
Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the United 
Kingdom: 1C001, 5A001.b.5, 6A001.a.1.b.1 object detection and location 
systems having a sound pressure level exceeding 210 dB (reference 1 
[mu]Pa at 1 m) for equipment with an operating frequency in the band 
from 30 Hz to 2 kHz inclusive, 6A001.a.2.a.1, 6A001.a.2.a.2, 
6A001.a.2.a.4, 6A001.a.2.a.5, 6A001.a.2.b, 6A001.a.2.e, 6A002.a.1.c, 
6A008.l.3, 6B008, 8A001.b, 8A001.d, 8A002.o.3.b; and
    (i) ``Composite'' structures or laminates controlled by 1A002.a, 
having an organic ``matrix'' and made from materials listed under 
1C010.c or 1C010.d; and
    (ii) ``Digital'' computers controlled by 4A003.b and having a CTP 
exceeding 190,000 MTOPS; and
    (iii) ``Electronic assemblies'' controlled by 4A003.c and capable of 
enhancing performance by aggregation of ``computing elements'' so that 
the CTP of the aggregation exceeds 190,000 MTOPS; and
    Note to paragraph 740.11(a)(2)(iii):
    Nationals of countries in Country Group E:1 may not physically or 
computationally access computers that have been enhanced by ``electronic 
assemblies'', which have been exported or reexported under License 
Exception GOV and have been used to enhance

[[Page 264]]

such computers by aggregation of ``computing elements'' so that the CTP 
of the aggregation exceeds the CTP parameter set forth in ECCN 4A003.b. 
of the Commerce Control List in Supplement No. 1 to part 774 of the EAR, 
without prior authorization from the Bureau of Industry and Security.

    (iv) Processing equipment controlled by 6A001.a.2.c and specially 
designed for real time application with towed acoustic hydrophone 
arrays; and
    (v) Processing equipment, specially designed for real time 
application bottom or bay cable systems controlled; by 6A001.a.2.f; and
    (vi) ``Software'', as follows:
    (A) Controlled by 4D001, specially designed for the ``development'' 
or ``production'' of ``digital computers'' controlled by 4A003.b and 
having a CTP exceeding 190,000 MTOPS; and
    (B) Controlled by 5D001.a, specially designed for the 
``development'' or ``production'' of equipment, functions or features 
controlled by 5A001.b.5; and
    (C) Controlled by 6D001 for items controlled by 6A008.l.3 or 6B008; 
and
    (D) Controlled by 6D003.a; and
    (E) Controlled by 7D003.a or 7D003.b; and
    (F) Controlled by 8D001, specially designed for the ``development'' 
or ``production'' of equipment controlled by 8A001.b, 8A001.d, or 
8A002.o.3.b; and
    (G) Controlled by 9D001, specially designed or modified for the 
``development'' of ``technology'' controlled by 9E003.a.1 or 
9E003.a.3.a.
    (3) No encryption items controlled for EI reasons under ECCNs 5A002, 
5D002, or 5E002 may be exported under the provisions of this paragraph 
(a).
    (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) (A) 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 items described in paragraph (a) to Supplement No. 1 
of this section:
    (B) Reporting requirements. See Sec.  743.1 of the EAR for reporting 
requirements for exports of certain items under this paragraph 
(b)(2)(iii).
    (iv) (A) Diplomatic and consular missions of a cooperating 
government. This License Exception is available for all items consigned 
to and for the official use of 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 items described in paragraph (b) 
of Supplement No. 1 of this section.
    (B) Reporting requirements. See Sec.  743.1 of the EAR for reporting 
requirements for exports of certain items under this paragraph 
(b)(2)(iv).
    (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

[[Page 265]]

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.
    (c) International inspections under the Chemical Weapons Convention 
(CWC or Convention).
    (1) The provisions of this paragraph (c) authorize exports and 
reexports to the Organization for the Prohibition of Chemical Weapons 
(OPCW) and exports and reexports by the OPCW for official international 
inspection and verification use under the terms of the Convention. The 
OPCW is an international organization that establishes and administers 
an inspection and verification regime under the Convention designed to 
ensure that certain chemicals and related facilities are not diverted 
from peaceful purposes to non-peaceful purposes. These provisions 
authorize exports and reexports for official OPCW use of the following:
    (i) Commodities and software consigned to the OPCW at its 
headquarters in The Hague for official international OPCW use for the 
monitoring and inspection functions set forth in the Convention, and 
technology relating to the maintenance, repair, and operation of such 
commodities and software. The OPCW must maintain effective control of 
such commodities, software and technology.
    (ii) Controlled technology relating to the training of the OPCW 
inspectorate.
    (iii) Controlled technology relating to a CWC inspection site, 
including technology released as a result of:
    (A) Visual inspection of U.S.-origin equipment or facilities by 
foreign nationals of the inspection team;
    (B) Oral communication of controlled technology to foreign nationals 
of the inspection team in the U.S. or abroad; and
    (C) The application to situations abroad of personal knowledge or 
technical experience acquired in the U.S.
    (2) Exclusions. The following items may not be exported or 
reexported under the provisions of this paragraph (c):
    (i) Computers with a Composite Theoretical Performance (CTP) greater 
than 190,000 MTOPS. In addition, computers eligible for this provision 
of License Exception GOV may not be accessed either physically or 
computationally by nationals of Cuba, Iran, Iraq, Libya, North Korea, 
Sudan, or Syria. No MTOPS limit applies to exports or reexports to 
countries in Tier 1 (see Sec.  740.7(b)(1) of the EAR).
    (ii) Inspection samples collected in the U.S. pursuant to the 
Convention; and
    (iii) Commodities and software that are no longer in OPCW official 
use. Such items must be disposed of in accordance with the EAR.
    (3) Confidentiality. The application of the provisions of this 
paragraph (c) is subject to the condition that the confidentiality of 
business information is strictly protected in accordance with applicable 
provisions of the EAR and other U.S. laws regarding the use and 
retransfer of U.S. goods and services.

  Supplement No. 1 to Sec.  740.11--Additional Restrictions on Use of 
                          License Exception Gov

    (a) Items for official use within national territory by agencies of 
a Cooperating Government. License Exception GOV 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:
    (1) Items identified on the Commerce Control List as controlled for 
national security (NS) reasons under Export Control Classification 
Numbers (ECCNs) as follows for export or reexport to destinations other 
than Austria, Belgium, Canada, Denmark, Finland, France, Germany, 
Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, 
Sweden, or the United Kingdom: 1C001, 5A001.b.5, 6A001.a.1.b.1 object 
detection and location systems having a sound pressure level exceeding 
210 dB (reference 1 [mu]Pa at 1 m) for equipment with an operating 
frequency in the band from 30 Hz to 2 kHz inclusive, 6A001.a.2.a.1, 
6A001.a.2.a.2, 6A001.a.2.a.4, 6A001.a.2.a.5, 6A001.a.2.b, 6A001.a.2.e, 
6A002.a.1.c, 6A008.l.3, 6B008, 8A001.b, 8A001.d, 8A002.o.3.b; and
    (i) ``Composite'' structures or laminates controlled by 1A002.a, 
having an organic ``matrix'' and made from materials listed under 
1C010.c or 1C010.d; and
    (ii)-(iii) [Reserved]
    (iv) Processing equipment controlled by 6A001.a.2.c and specially 
designed for real time application with towed acoustic hydrophone 
arrays; and
    (v) Processing equipment, specially designed for real time 
application bottom or bay cable systems controlled by 6A001.a.2.f;

[[Page 266]]

and
    (vi) ``Software'', as follows:
    (A) Controlled by 4D001, specially designed for the ``development'' 
or ``production'' of ``digital computers'' controlled by 4A003.b and 
having a CTP exceeding 190,000 MTOPS; and
    (B) Controlled by 5D001.a, specially designed for the 
``development'' or ``production'' of equipment, functions or features 
controlled by 5A001.b.5; and
    (C) Controlled by 6D001 for items controlled by 6A008.l.3 or 6B008; 
and
    (D) Controlled by 6D003.a; and
    (E) Controlled by 7D003.a or 7D003.b; and
    (F) Controlled by 8D001, specially designed for the ``development'' 
or ``production'' of equipment controlled by 8A001.b, 8A001.d, or 
8A002.o.3.b; and
    (G) Controlled by 9D001, specially designed or modified for the 
``development'' of ``technology'' controlled by 9E003.a.1 or 
9E003.a.3.a.
    (vii) ``Technology'', as follows:
    (A) Controlled by 1E001 for items controlled by 1A002.a as described 
by paragraph (a)(1)(i) of this Supplement, or 1C001; and
    (B) Controlled by 4E001, specially designed for the ``development'' 
or ``production'' of ``digital computers'' controlled by 4A003.b and 
having a CTP exceeding 190,000 MTOPS; and
    (C) Controlled by 5E001.a for the ``development'' or ``production'' 
of digitally controlled radio receivers controlled by 5A001.b.5; or 
5D001.a for ``software'' specially designed for the ``development'' or 
``production'' of digitally controlled radio receivers controlled by 
5A001.b.5; and
    (D) Controlled by 6E001 for the ``development'' of equipment or 
``software'' in 6A001.a.1.b.1, 6A001.a.2.a.1, 6A001.a.2.a.2, 
6A001.a.2.a.4, 6A001.a.2.a.5, 6A001.a.2.b, 6A001.a.2.c, 6A001.a.2.e, 
6A001.a.2.f, 6A002.a.1.c, 6A008.l.3, or 6B008, as described in paragraph 
(a)(1) of this Supplement; and
    (E) Controlled by 6E002 for the ``production'' of equipment 
controlled by 6A001.a.1.b.1, 6A001.a.2.a.1, 6A001.a.2.a.2, 
6A001.a.2.a.4, 6A001.a.2.a.5, 6A001.a.2.b, 6A001.a.2.c, 6A001.a.2.e, 
6A001.a.2.f, 6A002.a.1.c, 6A008.l.3, or 6B008, as described in paragraph 
(a)(1) of this Supplement; and
    (F) Controlled by 8E001 for items controlled by 8A001.b, 
8A002.o.3.b, or 8A001.d; and
    (G) Controlled by 9E001 for items controlled by 9D001; and
    (H) [Reserved]
    (I) Controlled by 9E003.a.1; and
    (J) Controlled by 9E003.a.3.a;
    (2) Items identified on the Commerce Control List as controlled for 
missile technology (MT), chemical and biological warfare (CB), or 
nuclear nonproliferation (NP) reasons;
    (3) Regional stability items controlled under Export Control 
Classification Numbers (ECCNs) 6A002.a.1.c, 6E001 technology according 
to the General Technology Note for the ``development'' of equipment in 
6A002.a.1.c, and 6E002 technology according to the General Technology 
Note for the ``production'' of equipment in 6A002.a.1.c; or
    (4) Encryption items controlled for EI reasons as described in the 
Commerce Control List.
    (b) Diplomatic and consular missions of a cooperating government. 
License Exception GOV is available for all items consigned to and for 
the official use of 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:
    (1) Items identified on the Commerce Control List as controlled for 
national security (NS) reasons under Export Control Classification 
Numbers (ECCNs) as follows for export or reexport to destinations other 
than Austria, Belgium, Canada, Denmark, Finland, France, Germany, 
Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, 
Sweden, or the United Kingdom: 1C001, 5A001.b.5, 6A001.a.1.b.1 object 
detection and location systems having a sound pressure level exceeding 
210 dB (reference 1 [mu]Pa at 1 m) for equipment with an operating 
frequency in the band from 30 Hz to 2 kHz inclusive, 6A001.a.2.a.1, 
6A001.a.2.a.2, 6A001.a.2.a.4, 6A001.a.2.a.5, 6A001.a.2.b, 6A001.a.2.e, 
6A002.a.1.c, 6A008.l.3, 6B008, 8A001.b, 8A001.d, 8A002.o.3.b; and
    (i) ``Composite'' structures or laminates controlled by 1A002.a, 
having an organic ``matrix'' and made from materials listed under 
1C010.c or 1C010.d; and
    (ii)-(iii) [Reserved]
    (iv) Processing equipment controlled by 6A001.a.2.c and specially 
designed for real time application with towed acoustic hydrophone 
arrays; and
    (v) Processing equipment, specially designed for real time 
application bottom or bay cable systems controlled by 6A001.a.2.f; and
    (vi) ``Software'', as follows:
    (A) Controlled by 4D001, specially designed for the ``development'' 
or ``production'' of ``digital computers'' controlled by 4A003.b and 
having a CTP exceeding 190,000 MTOPS; and
    (B) Controlled by 5D001.a, specially designed for the 
``development'' or ``production'' of equipment, functions or features 
controlled by 5A001.b.5; and
    (C) Controlled by 6D001 for items controlled by 6A008.l.3 or 6B008; 
and
    (D) Controlled by 6D003.a; and
    (E) Controlled by 7D003.a or 7D003.b; and
    (F) Controlled by 8D001, specially designed for the ``development'' 
or ``production'' of equipment controlled by 8A001.b, 8A001.d, or 
8A002.o.3.b; and

[[Page 267]]

    (G) Controlled by 9D001, specially designed or modified for the 
``development'' of ``technology'' controlled by 9E003.a.1 or 
9E003.a.3.a.
    (vii) ``Technology'', as follows:
    (A) Controlled by 1E001 for items controlled by 1A002.a as described 
by paragraph (a)(1)(i) of this Supplement, or 1C001; and
    (B) Controlled by 4E001, specially designed for the ``development'' 
or ``production'' of ``digital computers'' controlled by 4A003.b and 
having a CTP exceeding 190,000 MTOPS; and
    (C) Controlled by 5E001.a for the ``development'' or ``production'' 
of digitally controlled radio receivers controlled by 5A001.b.5; or 
5D001.a for ``software'' specially designed for the ``development'' or 
``production'' of digitally controlled radio receivers controlled by 
5A001.b.5; and
    (D) Controlled by 6E001 for the ``development'' of equipment or 
``software'' in 6A001.a.1.b.1, 6A001.a.2.a.1, 6A001.a.2.a.2, 
6A001.a.2.a.4, 6A001.a.2.a.5, 6A001.a.2.b, 6A001.a.2.c, 6A001.a.2.e, 
6A001.a.2.f, 6A002.a.1.c, 6A008.l.3, or 6B008, as described in paragraph 
(a)(1) of this Supplement; and
    (E) Controlled by 6E002 for the ``production'' of equipment 
controlled by 6A001.a.1.b.1, 6A001.a.2.a.1, 6A001.a.2.a.2, 
6A001.a.2.a.4, 6A001.a.2.a.5, 6A001.a.2.b, 6A001.a.2.c, 6A001.a.2.e, 
6A001.a.2.f, 6A002.a.1.c, 6A008.l.3, or 6B008, as described in paragraph 
(a)(1) of this Supplement; and
    (F) Controlled by 8E001 for items controlled by 8A001.b, 
8A002.o.3.b, or 8A001.d; and
    (G) Controlled by 9E001 for items controlled by 9D001; and
    (H) [Reserved]
    (I) Controlled by 9E003.a.1; and
    (J) Controlled by 9E003.a.3.a;
    (2) Items identified on the Commerce Control List as controlled for 
missile technology (MT), chemical and biological warfare (CB), or 
nuclear nonproliferation (NP) reasons;
    (3) Regional stability items controlled under Export Control 
Classification Numbers (ECCNs) 6A002.a.1.c, 6E001 technology according 
to the General Technology Note for the ``development'' of equipment in 
6A002.a.1.c, and 6E002 technology according to the General Technology 
Note for the ``production'' of equipment in 6A002.a.1.c; or
    (4) Encryption items controlled for EI reasons as described in the 
Commerce Control List.

[61 FR 64281, Dec. 4, 1996. Redesignated at 61 FR 68579, Dec. 30, 1996, 
as amended at 61 FR 68580, Dec. 30, 1996; 62 FR 25457, May 9, 1997; 63 
FR 2456, Jan. 15, 1998; 63 FR 42228, Aug. 7, 1998; 63 FR 50522, Sept. 
22, 1998; 63 FR 55019, Oct. 14, 1998; 64 FR 27141, May 18, 1999; 64 FR 
40108, July 23, 1999; 64 FR 42012, Aug. 3, 1999; 65 FR 43132, July 12, 
2000; 65 FR 60855, Oct. 13, 2000; 67 FR 10614, 10610, Mar. 8, 2002; 68 
FR 10589, 10590, Mar. 5, 2003; 68 FR 68979, Dec. 10, 2003]



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 BIS. (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

[[Page 268]]

    (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 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 (BIS-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 or reexports 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

[[Page 269]]

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 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; 
62 FR 25458, May 9, 1997]



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); ``mass market'' software subject to the General Software 
Note; and encryption source code (and corresponding object code) that 
would be considered publicly available under Sec.  734.3(b)(3) of the 
EAR. Note that encryption software subject to the EAR is not subject to 
the General Software Note (see paragraph (d)(2) of this section).
    (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.

[[Page 270]]

    (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 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 
Industry and Security.

    (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).\1\
---------------------------------------------------------------------------

    \1\ ``Mass market'' software may fall under the classification of 
``general use'' software for export clearance purposes. Exporters should 
consult the Census Bureau FTSR for possible SED or AES requirements.
---------------------------------------------------------------------------

    (2) Exclusions. The provisions of this paragraph (d) are not 
available for encryption software controlled for ``EI'' reasons under 
ECCN 5D002 or for encryption software with symmetric key length 
exceeding 64-bits that qualifies as mass market encryption software 
under the criteria in the Cryptography Note (Note 3) of Category 5, Part 
2, of the Commerce Control List (Supplement No. 1 to Part 774 of the 
EAR). (Once such mass market encryption software has been reviewed by 
BIS and released from ``EI'' and ``NS'' controls pursuant to Sec.  
742.15(b)(2) of the EAR, it is controlled under ECCN 5D992 and is thus 
outside the scope of License Exception TSU.) See Sec.  742.15(b)(2) of 
the EAR for exports and reexports of mass market encryption products 
controlled under ECCN 5D992.
    (3) Provisions and destinations--
    (i) Destinations. ``Mass market'' software is available to all 
destinations except destinations in Country Group E:1 (see Supplement 
No. 1 to this part).
    (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.
    (e) Encryption source code (and corresponding object code). (1) 
Scope. The provisions of paragraph (e) of this section authorize exports 
and reexports, without review, of encryption source code controlled 
under ECCN 5D002 that would be considered publicly available

[[Page 271]]

under Sec.  734.3(b)(3) of the EAR, and corresponding object code 
resulting from the compiling of such source code.
    (2) Eligible Software. Encryption source code is eligible for export 
and reexport under License Exception TSU, provided that it would be 
considered publicly available under Sec.  734.3(b)(3) of the EAR. Such 
encryption source code is eligible for License Exception TSU even if it 
is subject to an express agreement for the payment of a licensing fee or 
royalty for commercial production or sale of any product developed using 
the source code. Corresponding object code resulting from the compiling 
of such source code is also eligible for License Exception TSU treatment 
if such object code would also be considered publicly available under 
Sec.  734.3(b)(3) of the EAR.
    (3) Restrictions. Encryption software controlled under ECCN 5D002 
that would not be considered publicly available, but which incorporates 
or is specially designed to use encryption software that would be 
considered publicly available, is not eligible for export or reexport 
under this paragraph (e).
    (4) Country restrictions. You may not knowingly export or reexport 
source code, corresponding object code or products developed with this 
source code to Cuba, Iran, Iraq, Libya, North Korea, Sudan or Syria.
    (5) Notification requirement. You must provide BIS written 
notification of the Internet location (e.g., URL or Internet address) of 
the source code or a copy of the source code by the time of export. 
Submit the notification by email to BIS at [email protected], and 
provide a copy of the notification to the ENC Encryption Request 
Coordinator at [email protected].
    (6) ``Knowledge'' of a prohibited export or reexport. Posting of 
source code or corresponding object code on the Internet (e.g., FTP or 
World Wide Web site) where it may be downloaded by anyone would not 
establish ``knowledge'' of a prohibited export or reexport. See Sec.  
740.13(e)(4) of the EAR for prohibited knowing exports to Cuba, Iran, 
Iraq, Libya, North Korea, Sudan and Syria. In addition, such posting 
would not trigger ``red flags'' necessitating the affirmative duty to 
inquire under the ``Know Your Customer'' guidance provided in Supplement 
No. 3 to part 732 of the EAR.
    (f) Special recordkeeping requirements: ECCNs 2D983 and 2E983. In 
addition to any other recordkeeping requirements set forth elsewhere in 
the EAR, exporters are required to maintain records, as specified in 
this paragraph, when exporting operation software or technology 
controlled under ECCNs 2D983 and 2E983, respectively, under License 
Exception TSU. Records maintained pursuant to this section may be 
requested at any time by an appropriate BIS official as set forth in 
Sec.  762.7 of the EAR. The following information must be specially 
maintained for each export or reexport transaction, under License 
Exception TSU, of operation software and technology controlled by ECCNs 
2D983 and 2E983:
    (1) A description of the software or technology exported or 
reexported, including the ECCN, as identified on the CCL;
    (2) A description of the equipment for which the software or 
technology is intended to be used, including the ECCN, as indentified on 
the CCL;
    (3) The intended end-use of the software or technology;
    (4) The name and address of the end-user;
    (5) The quantity of software shipped; and
    (6) The location of the equipment for which the software or 
technology is intended to be used, including the country of destination.

[61 FR 64283, Dec. 4, 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; 62 FR 25458, May 9, 1997; 65 FR 2496, Jan. 14, 2000; 65 
FR 62604, Oct. 19, 2000; 66 FR 42110, Aug. 10, 2001; 67 FR 38862, June 
6, 2002; 68 FR 16211, Apr. 3, 2003; 68 FR 50472, Aug. 21, 2003]



Sec.  740.14  Baggage (BAG).

    (a) Scope. This License Exception authorizes individuals leaving the 
United States either temporarily (i.e., traveling) or longer-term (i.e., 
moving) and crew members of exporting or reexporting carriers to take to 
any destination, as personal baggage, the classes of commodities and 
software described in this section.

[[Page 272]]

    (b) Eligibility. Individuals leaving the United States may export or 
reexport any of the following commodities or software for personal use 
of the individuals or members of their immediate families traveling with 
them to any destination or series of destinations. Individuals leaving 
the United States temporarily (i.e., traveling) must bring back items 
exported and reexported under this License Exception unless they consume 
the items abroad or are otherwise authorized to dispose of them under 
the EAR. Crew members may export or 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 or 
members of the household being moved. For special provisions regarding 
encryption commodities and software subject to EI controls, see 
paragraph (f) of this section.
    (c) Limits on eligibility. The export of any commodity or software 
is 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) 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 traveling with them, 
or by the crew members of exporting carriers;
    (3) Not intended for sale or other disposal; 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), encryption items 
(EI) 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, EI or NP 
may not be exported under this License Exception as unaccompanied 
baggage to Country Groups D:1, D:2, D:3, D:4, or E:1. (See Supplement 
No. 1 of this part).
    (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

[[Page 273]]

be exported permanently under this License Exception. All shotguns and 
unused shotgun shells must be returned to the United States. Note that 
since certain countries may require an Import Certificate or a U.S. 
export license before allowing the import of a shotgun, you should 
determine the import requirements of your country of destination in 
advance.
    (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)).
    (f) Special provisions: encryption commodities and software subject 
to EI controls on the Commerce Control List. (1) A U.S. citizen or 
permanent resident alien of the United States as defined by 8 U.S.C. 
1101(a)(20) may use this license exception to export or reexport 
encryption commodities and software to any destination not in Country 
Group E:1 of Supplement No. 1 of this part.
    (2) A person other than a U.S. citizen or permanent resident alien 
of the United States as defined by 8 U.S.C. 1101(a)(20) (except a 
national of a country listed in Country Group E:1 of Supplement No. 1 of 
this part who is not a U.S. citizen or permanent resident alien of the 
United States) may also use this license exception to export or reexport 
encryption commodities and software to any destination not in Country 
Group E:1 of Supplement No. 1 of this part.

[61 FR 12768, Mar. 25, 1996. Redesignated at 61 FR 64274, Dec. 4, 1996. 
Redesignated at 61 FR 68579, Dec. 30, 1996, and amended at 62 FR 25458, 
May 9, 1997; 63 FR 50522, Sept. 22, 1998; 64 FR 17973, Apr. 13, 1999; 68 
FR 35784, June 17, 2003]



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 a destination in Country Group E:1 (see Supplement No. 1 to 
this part) 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 a destination in Country 
Group E:1 (see Supplement No. 1 to this part); 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 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

[[Page 274]]

any destination, except to a destination in Country Group E:1 (see 
Supplement No. 1 to this part) (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 a destination in Country Group E:1 (see Supplement No. 1 to this 
part), 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 a destination in 
Country Group E:1 (see Supplement No. 1 to this part).
    (vi) Place of registration. The place of registration is not changed 
to a destination in Country Group E:1 (see Supplement No. 1 to this 
part).
    (vii) No transfer of technology. No technology is transferred to a 
national of a destination in Country Group E:1 (see Supplement No. 1 to 
this part), 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 a destination in Country Group E:1 
(see Supplement No. 1 to this part).
    (ix) Flight number. The aircraft does not fly under a flight number 
issued to a national of a destination in Country Group E:1 (see 
Supplement No. 1 to this part) 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 
a vessel of any registry, except a vessel registered in Country Group 
D:1 (see Supplement No. 1 to part 740), Cuba, 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 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,

[[Page 275]]

or Libya, 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 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 Sec. Sec.  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) 
or Automated Export System (AES) record is filed in accordance with the 
requirements of the Foreign Trade Statistics Regulations (15 CFR part 
30), except that an SED or AES record is not required when any of the 
commodities, other than fuel, is exported by U.S. airlines to their own 
aircraft abroad for their own 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 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 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) 
or Automated Export System (AES) record is filed in accordance with the 
requirements of the Foreign Trade Statistics Regulations (15 CFR part 
30), except that an SED or AES record 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 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;

[[Page 276]]

    (iii) Food stores;
    (iv) Slop chest articles;
    (v) Saloon stores or supplies; and
    (vi) Equipment and spare parts.

[61 FR 12678, Mar. 25, 1996. Redesignated and amended at 61 FR 64274, 
64283, Dec. 4, 1996. Redesignated at 61 FR 68579, Dec. 30, 1996; 65 FR 
38150, June 19, 2000; 66 FR 42110, Aug. 10, 2001; 68 FR 50472, Aug. 21, 
2003]



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 NP, CB, 
MT, SI, or CC 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 (National Security) (see 
Supplement No. 1 to part 740), other than Cambodia, Laos, or North Korea 
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 are 
eligible except those controlled for nuclear nonproliferation reasons or 
missile technology 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) Reexports to Sudan of items controlled by ECCNs 2A994; 3A992.a; 
5A991.f; 5A992; 6A991; 6A998; 7A994; 8A992.d, .e, .f, and .g; 9A990.a 
and .b; and 9A991.d and .e. In addition, items in these ECCNs are not 
counted as controlled U.S. content for purposes of determining license 
requirements for U.S. parts, components, and materials incorporated in 
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.
    (j) Reexports of items controlled by NP Column 1 (see Supplement No. 
1 to part 774 of the EAR) to, among, and from countries described in 
Country Group A:4 (see Supplement No. 1 to part 740), except:
    (1) Reexports from countries that are not identified in Country 
Group A:1 of

[[Page 277]]

items that are controlled for NS reasons to destinations in Country 
Group D:1; and
    (2) Reexports to destinations in Country Group E:2 and Country Group 
D:2.

[61 FR 12768, Mar. 25, 1996. Redesignated at 61 FR 64274, Dec. 4, 1996. 
Redesignated at 61 FR 68579, Dec. 30, 1996, and amended at 62 FR 25458, 
May 9, 1997; 63 FR 42228, Aug. 7, 1998; 65 FR 38150, June 19, 2000; 65 
FR 60855, Oct. 13, 2000; 67 FR 10614, Mar. 8, 2002]



Sec.  740.17  Encryption commodities and software (ENC).

    License Exception ENC authorizes the export and reexport of 
encryption items controlled under ECCN 5A002, 5D002 or 5E002, and 
``information security'' test, inspection, and production equipment 
controlled under ECCN 5B002. Encryption items exported and reexported 
under License Exception ENC remain subject to ``EI'' controls. No 
encryption items may be exported or reexported, under this license 
exception, to countries listed in Country Group E:1 of Supplement No. 1 
to this Part--this includes exports and reexports (as defined in Sec.  
734.2 of the EAR) of encryption source code and technology to nationals 
of these countries. Review and reporting requirements apply to certain 
exports under this license exception (paragraph (d) of this section 
describes how to submit encryption items for review; paragraph (e) of 
this section describes which exports are subject to reporting 
requirements). Certain exports and reexports to government end-users are 
authorized under paragraphs (a) and (b)(3) of this section. Section 
772.1 of the EAR defines the term ``government end-user'' as it applies 
to encryption items. Section 742.15 of the EAR describes the license 
requirements and policies that apply to exports and reexports of 
encryption items.
    (a) Exports and reexports to countries listed in Supplement 3 to 
this part. Encryption items controlled under ECCN 5A002, 5D002 or 5E002 
(except cryptanalytic items as defined in Part 772 of the EAR), and 
``information security'' test, inspection, and production equipment 
controlled under ECCN 5B002, are authorized for immediate export and 
reexport to government and non-government end-users located in the 
countries listed in Supplement 3 to this part 740, subject to the review 
requirements described in paragraph (d) of this section. Cryptanalytic 
items are authorized to non-government end-users, only, under this 
paragraph (a). Encryption items and ``information security'' test, 
inspection, and production equipment may also be exported or reexported 
to any destination eligible under this license exception for the 
internal use of foreign subsidiaries or offices of firms, organizations 
and governments headquartered in Canada or in countries listed in 
Supplement 3 to this part 740. (Note that License Exception ENC 
prohibits exports and reexports of encryption source code and technology 
to nationals of countries listed in Country Group E:1 of Supplement No. 
1 to this part.) Before you export an item for the first time under this 
license exception, you must submit to BIS and the ENC Encryption Request 
Coordinator a review request for that item, as described in paragraph 
(d) of this section. See paragraph (e) of this section for applicable 
semi-annual reporting requirements.
    (b) Exports and reexports to all other eligible countries. (1) 
Encryption items for U.S. subsidiaries. Exports and reexports of 
encryption items controlled under ECCN 5A002, 5D002 or 5E002 and 
``information security'' test, inspection, and production equipment 
controlled under ECCN 5B002, are authorized under this license 
exception, without review, to foreign subsidiaries of U.S. companies for 
any end-use not prohibited elsewhere in the EAR. This paragraph (b)(1) 
also authorizes exports and reexports by U.S. companies and their 
subsidiaries of any such items (including encryption source code and 
technology), to foreign nationals working as contractors, interns or 
employees of said U.S. companies and their subsidiaries, provided that 
the items are for internal company use, including the development of new 
products. (Note that License Exception ENC prohibits exports and 
reexports of encryption source code and technology to nationals of 
countries listed in Country Group E:1 of Supplement No. 1 to this part). 
All items produced or developed by U.S. subsidiaries with encryption

[[Page 278]]

commodities, software and technology exported under this paragraph 
(b)(1) are subject to the EAR and require review and authorization 
before any sale or retransfer outside of the U.S. company.
    (2) Encryption commodities and software to non-government end-users. 
Thirty days after registration of a completed review request by BIS 
(``registration'' is defined in Sec.  750.4(a)(2) of the EAR), 
encryption commodities, software and components controlled under ECCN 
5A002 or 5D002 (except such items which provide an open cryptographic 
interface, as defined in part 772 of the EAR), and ``information 
security'' test, inspection, or production equipment controlled under 
ECCN 5B002, are authorized for export or reexport to any individual, 
commercial firm or other non-government end-user located outside the 
countries listed in Supplement 3 to this part 740. The thirty days may 
not include any time that your review request was on hold without 
action. To request authorization under the provisions of this paragraph 
(b)(2), you must submit to BIS and the ENC Encryption Request 
Coordinator a review request as described in paragraph (d) of this 
section. See paragraph (e) of this section for applicable semi-annual 
reporting requirements. Encryption commodities and software eligible for 
export or reexport under this paragraph (b)(2) include, but are not 
limited to, the following:
    (i) Network infrastructure products, such as high end routers or 
switches designed for large volume communications, and specially 
designed software, parts, and components thereof (including commodities 
and software which activate or enable cryptographic functionality in 
network infrastructure products that would otherwise remain disabled);
    (ii) Encryption source code that would not be considered publicly 
available for export or reexport under License Exception TSU. (You may 
immediately export and reexport such encryption source code under 
License Exception ENC, provided that you have submitted a review 
request, including a copy of your source code, to BIS and the ENC 
Encryption Request Coordinator. Note that License Exception ENC 
prohibits exports and reexports of encryption source code to countries 
listed in Country Group E:1 of Supplement No. 1 to this part, or to 
nationals of these countries.);
    (iii) General purpose toolkits;
    (iv) Cryptanalytic items (as defined in part 772 of the EAR);
    (v) Commodities, software and components not otherwise authorized 
for export as mass market or retail.
    (3) Retail encryption commodities, software and components to 
government and non-government end-users. Thirty days after registration 
of a completed review request by BIS (``registration'' is defined in 
Sec.  750.4(a)(2) of the EAR), retail encryption commodities, software 
and components controlled under ECCN 5A002 or 5D002 are authorized for 
export and reexport to any individual, commercial firm or other non-
government end-user located outside the countries listed in Supplement 3 
to this part 740. The thirty days may not include any time that your 
review request was on hold without action. Once BIS has completed its 
review and authorizes your encryption commodities, software, and 
components for export or reexport as retail encryption items under 
License Exception ENC, you may also export or reexport these items to 
government end-users. To request authorization under the provisions of 
this paragraph (b)(3), you must submit to BIS and the ENC Encryption 
Request Coordinator a review request as described in paragraph (d) of 
this section. See paragraph (e) of this section for applicable semi-
annual reporting requirements.
    (i) Retail eligibility criteria. Retail encryption commodities and 
software are products and components:
    (A) Generally available to the public by means of any of the 
following:
    (1) Are sold in tangible form through retail outlets independent of 
the manufacturer;
    (2) Are specially designed for individual consumer use; or
    (3) Are sold or will be sold in large volume, without restriction, 
through mail order transactions, electronic transactions, or telephone 
call transactions; and
    (B) Meeting all of the following:

[[Page 279]]

    (1) The cryptographic functionality cannot be easily changed by the 
user;
    (2) Substantial support is not required for installation and use; 
and
    (3) The cryptographic functionality has not been modified or 
customized to customer specification.
    (ii) Additional types of retail encryption products. The following 
products will also be considered to be retail encryption products:
    (A) Encryption commodities and software (including key management 
products) with key lengths not exceeding 64 bits for symmetric 
algorithms, 1024 bits for asymmetric key exchange algorithms, and 160 
bits for elliptic curve algorithms. (You may immediately export or 
reexport such encryption commodities and software as retail items upon 
submitting a completed review request to BIS and the ENC Encryption 
Request Coordinator, in accordance with the requirements described in 
paragraph (d) of this section);
    (B) Encryption products and network-based applications that provide 
equivalent functionality to other mass market or retail encryption 
commodities and software (refer to the Cryptography Note (Note 3) to 
part II of Category 5 of the CCL for the definition of mass market 
encryption commodities and software);
    (C) Encryption products that are limited to allowing foreign-
developed cryptographic products to operate with U.S. products (e.g. 
signing). No review of the foreign-developed cryptography is required;
    (D) Encryption commodities and software that activate or enable 
cryptographic functionality in retail encryption products which would 
otherwise remain disabled.
    (iii) Examples of eligible retail encryption products: Subject to 
the retail eligibility criteria in paragraph (b)(3)(i) of this section, 
retail encryption items include, but are not limited to, the following:
    (A) General purpose operating systems that do not qualify as mass 
market;
    (B) Non-programmable encryption chips, and chips that are 
constrained by design for retail products;
    (C) Retail networking products, such as low-end routers, firewalls, 
and virtual private networking (VPN) equipment designed for small office 
or home use;
    (D) Desktop applications (e.g. e-mail, browsers, games, word 
processing, database, financial applications or utilities) that do not 
qualify as mass market;
    (E) Programmable database management systems and associated 
application servers;
    (F) Low-end servers and application-specific servers (including 
client-server applications, e.g. Secure Socket Layer (SSL)-based web 
applications and applets, servers, and portals);
    (G) Network and security management products designed for, bundled 
with, or pre-loaded on single CPU computers, low-end servers or retail 
networking products; and
    (H) Short-range wireless components and software that do not qualify 
as mass market. Commodities and software that would not otherwise be 
controlled under Category 5 (telecommunications and ``information 
security'') of the Commerce Control List, but which are controlled under 
ECCN 5A002 or 5D002 only because they incorporate components or software 
that provide short-range wireless encryption functions (e.g., with an 
operating range typically not exceeding 100 meters), may be exported or 
reexported under the retail provisions of License Exception ENC, without 
review or reporting.
    (4) Reviews for de minimis eligibility: Items controlled for ``EI'' 
reasons under ECCN 5A002, 5D002 or 5E002 are not eligible for de minimis 
treatment under Sec.  734.4 of the EAR. However, exporters may, as part 
of a review request, ask that U.S.-origin retail encryption software 
controlled under ECCN 5D002 and U.S.-origin parts and components 
controlled under ECCN 5A002, that are incorporated in foreign-made 
items, be made eligible for de minimis treatment. The review of de 
minimis eligibility for such items will take U.S. national security 
interests into account.
    (c) Reexports and transfers. U.S. or foreign distributors, resellers 
or other entities who are not original manufacturers of encryption 
commodities and software are permitted to use License Exception ENC only 
in instances where

[[Page 280]]

the export or reexport meets the applicable terms and conditions of this 
section. Transfers of encryption items listed in paragraph (b) of this 
section to government end-users, or for government end-uses, within the 
same country are prohibited, unless otherwise authorized by license or 
license exception. Foreign products developed with or incorporating 
U.S.-origin encryption source code, components or toolkits remain 
subject to the EAR, but do not require review (for encryption reasons) 
by BIS. These products can be exported or reexported under License 
Exception ENC without notification and without further authorization 
(for encryption reasons) from BIS. Such products include foreign-
developed products that are designed to operate with U.S. products 
through a cryptographic interface.
    (d) Review requirement. (1) Review request procedures. To request 
review of your encryption products under License Exception ENC, you must 
submit to BIS and to the ENC Encryption Request Coordinator the 
information described in paragraphs (a) through (e) of Supplement 6 to 
part 742 of the EAR (Guidelines for Submitting Review Requests for 
Encryption Items). Review requests must be submitted on Form BIS-748P 
(Multipurpose Application), or its electronic equivalent, as described 
in Sec.  748.3 of the EAR. To ensure that your review request is 
properly routed, insert the phrase ``License Exception ENC'' in Block 9 
(Special Purpose) of the application form and place an ``X'' in the box 
marked ``Classification Request'' in Block 5 (Type of Application)--
Block 5 does not provide a separate item to check for the submission of 
encryption review requests. Failure to properly complete these items may 
delay consideration of your review request. Review requests that are not 
submitted electronically to BIS should be mailed to the address 
indicated in Sec.  748.2(c) of the EAR. See paragraph (e)(5)(ii) of this 
section for the mailing address for the ENC Encryption Request 
Coordinator. BIS will notify you if there are any questions concerning 
your request for review under License Exception ENC (e.g., because of 
missing or incomplete support documentation). Once your review has been 
completed, BIS will notify you in writing concerning the eligibility of 
your products for export or reexport, under the provisions of this 
license exception. BIS reserves the right to suspend your eligibility to 
export and reexport under License Exception ENC and to return your 
review request without action, if you have not met the review 
requirements. You may not export or reexport retail encryption 
commodities, software and components under this license exception to 
government end-users headquartered outside of Canada and the countries 
listed in Supplement 3 to this part 740, unless you have received prior 
authorization from BIS.
    (2) Grandfathering. Encryption commodities, software, parts or 
components (except cryptanalytic items) previously approved for export 
may be exported or reexported without further review to government and 
non-government end-users in countries listed in Supplement 3 to this 
part 740, and to any non-government end-user outside the countries 
listed in Supplement 3 to this part 740 (except items which provide an 
open cryptographic interface as defined in part 772 of the EAR). This 
includes products approved under a license, an Encryption Licensing 
Arrangement, or classified as eligible to use License Exception ENC 
(except for those products that were authorized only for export to U.S. 
subsidiaries) prior to October 19, 2000. Encryption technology 
previously approved for export under a license or an Encryption 
Licensing Arrangement may be exported or reexported to government and 
non-government end-users in countries listed in Supplement 3 to this 
part 740.
    (3) Key length increases. Exporters may increase the key lengths of 
products previously classified and continue to export these products 
under the applicable provisions of License Exception ENC, without 
further review, upon certification to BIS and the ENC Encryption Request 
Coordinator in accordance with paragraph (d)(3)(ii) of this section. No 
other change in cryptographic functionality is allowed under License 
Exception ENC.
    (i) Any product previously classified as ECCN 5A002 or 5D002 (except 
encryption items that provide an open

[[Page 281]]

cryptographic interface, as defined in Sec.  772.1 of the EAR) may, with 
any upgrade to the key length used for confidentiality or key exchange 
algorithms, be exported or reexported under License Exception ENC to any 
non-government end-user without an additional review. A license is 
required to export or reexport items that provide an open cryptographic 
interface to end-users located outside the countries listed in 
Supplement 3 to this part 740. In addition, products previously reviewed 
by BIS that were determined to be eligible as ``retail'' under this 
license exception may be exported or reexported to government end-users, 
without additional review. For products not previously determined to be 
eligible as retail products, another review is required to determine 
their eligibility as ``retail'' products under paragraph (b)(3) of this 
section.
    (ii) Exporters must certify to BIS, in a letter from a corporate 
official, that the only change to the encryption product is the key 
length for confidentiality or key exchange algorithms and that there is 
no other change in cryptographic functionality. Certifications must 
include the original authorization number issued by BIS and the date of 
issuance. BIS must receive this certification prior to any export of an 
upgraded encryption product. The certification should be sent to BIS and 
a copy of the certification should be sent to the ENC Encryption Request 
Coordinator at the mailing address indicated in paragraph (e)(5) of this 
section.
    (e) Reporting requirements. (1) Semi-annual reporting requirement. 
Semi-annual reporting is required for exports and reexports under this 
license exception. Certain encryption items and transactions are 
excluded from this reporting requirement (see paragraph (e)(4) of this 
section). For instructions on how to submit your reports, see paragraph 
(e)(5) of this section.
    (2) General information required. Exporters must include all of the 
following applicable information in their reports:
    (i) For items exported to a distributor or other reseller, including 
subsidiaries of U.S. firms, the name and address of the distributor or 
reseller, the item and the quantity exported and, if collected by the 
exporter as part of the distribution process, the end-user's name and 
address;
    (ii) For items exported through direct sale, the name and address of 
the recipient, the item, and the quantity exported (except for retail 
products, if the end-user is an individual consumer);
    (iii) For exports of ECCN 5E002 items to be used for technical 
assistance that are not released by Sec.  744.9 of the EAR, the name and 
address of the end-user; and
    (iv) The authorization number and the name of the item(s) exported.
    (3) Information on foreign manufacturers and products that use 
encryption items. For direct sales or transfers, under License Exception 
ENC, of encryption components, source code, general purpose toolkits, 
equipment controlled under ECCN 5B002, technology, or items that provide 
an open cryptographic interface to foreign developers or manufacturers 
when intended for use in foreign products developed for commercial sale, 
you must submit the names and addresses of the manufacturers using these 
encryption items and, if you know when the product is made available for 
commercial sale, a non-proprietary technical description of the foreign 
products for which these encryption items are being used (e.g., 
brochures, other documentation, descriptions or other identifiers of the 
final foreign product; the algorithm and key lengths used; general 
programming interfaces to the product, if known; any standards or 
protocols that the foreign product adheres to; and source code, if 
available).
    (4) Exclusions from reporting requirements. Reporting is not 
required for the following items and transactions:
    (i) Any encryption item to U.S. subsidiaries for internal company 
use;
    (ii) Encryption commodities or software with a symmetric key length 
not exceeding 64 bits;
    (iii) Retail products exported to individual consumers;
    (iv) Encryption items exported via free or anonymous download;
    (v) Encryption items from or to a U.S. bank, financial institution 
or their subsidiaries, affiliates, customers

[[Page 282]]

or contractors for banking or financial operations;
    (vi) Items that incorporate components limited to providing short-
range wireless encryption functions;
    (vii) Retail operating systems, or desktop applications (e.g. e-
mail, browsers, games, word processing, data base, financial 
applications or utilities) designed for, bundled with, or pre-loaded on 
single CPU computers, laptops or hand-held devices;
    (viii) Client Internet appliance and client wireless LAN cards;
    (ix) Foreign products developed by bundling or compiling of source 
code.
    (5) Submission requirements. You must submit the reports required 
under this section, semi-annually, to BIS, unless otherwise provided in 
this paragraph (e)(5). For exports occurring between January 1 and June 
30, a report is due no later than August 1 of that year. For exports 
occurring between July 1 and December 31, a report is due no later than 
February 1 the following year. These reports must be provided in 
electronic form to BIS. Recommended file formats for electronic 
submission include spreadsheets, tabular text or structured text. 
Exporters may request other reporting arrangements with BIS to better 
reflect their business models. Reports may be sent electronically to BIS 
at [email protected] (with a copy to the ENC Encryption Request 
Coordinator at [email protected]), or disks and CDs containing the reports 
may be mailed to the following addresses:

(i) Department of Commerce, Bureau of Industry and Security, Office of 
    Strategic Trade and Foreign Policy Controls, 14th Street and 
    Pennsylvania Ave., NW., Room 2705, Washington, DC 20230, Attn: 
    Encryption Reports.
(ii) A copy of the report should be sent to: Attn: ENC Encryption 
    Request Coordinator, 9800 Savage Road, Suite 6131, Ft. Meade, MD 
    20755-6000.

[67 FR 38862, June 6, 2002, as amended at 68 FR 35785, June 17, 2003]



Sec.  740.18  Agricultural commodities (AGR).

    (a) Eligibility requirements. License Exception AGR permits the 
export of agricultural commodities to Cuba, as well as the reexport of 
U.S. origin agricultural commodities to Cuba, provided your transaction 
meets all of the following criteria:
    (1) The commodity meets the definition of ``agricultural 
commodities'' in part 772 of the EAR;
    (2) The commodity is EAR99. You must have an official commodity 
classification of EAR99 from BIS for fertilizers, western red cedar and 
live horses before you submit a notification under this license 
exception. See Sec.  748.3 of the EAR for information on how to submit a 
commodity classification request;
    (3) The export or reexport is made pursuant to a written contract, 
except for donations and commercial samples which are not subject to 
this contract requirement;
    (4) The export or reexport is made within 12 months of the signing 
of the contract or within 12 months of notification that no objections 
were raised (if no contract is required). In the case of multiple 
partial shipments, all such shipments must be made within the 12 months 
of the signing of the contract or within 12 months of notification that 
no objections were raised (if no contract is required); and
    (5) You notify BIS prior to exporting or reexporting according to 
the procedures set forth in paragraph (c) of this section. If you intend 
to engage in multiple shipments during the one-year period after the 
signing of the contract, you need only notify BIS prior to the first 
shipment.
    (b) Restrictions. (1) No export or reexport to any individual or 
entity designated as a Specially Designated Terrorist or Foreign 
Terrorist Organization may be made under License Exception AGR (see part 
744 of the EAR).
    (2) No export or reexport to or for use in biological, chemical, 
nuclear warfare or missile proliferation activities may be made under 
License Exception AGR (see part 744 of the EAR).
    (3) No U.S.-owned or controlled foreign firm may export from abroad 
to Cuba a foreign produced agricultural commodity containing more than 
10% U.S.-origin content. Such U.S.-owned or controlled foreign firms 
require a specific license from BIS as well as the Department of the 
Treasury's Office of Foreign Assets Control (OFAC). Transactions not 
subject to the EAR (under

[[Page 283]]

10% U.S.-origin content) require a license from OFAC.
    (c) Prior notification. (1) General requirement. You must notify BIS 
prior to any export or reexport (or prior to the first of multiple 
shipments) under License Exception AGR.
    (2) Procedures. You must provide prior notification of exports and 
reexports under License Exception AGR by submitting a completed 
Multipurpose Application Form (BIS-748P) or its electronic equivalent. 
The following blocks must be completed, as appropriate, on the 
Multipurpose Application Form: Blocks 1, 2, 3, 4, 5 (by marking box 5 
``Other''), 14, 16, 17, 18, 19, 21, 22 (a), (e), (f), (g), (h), (i), 
(j), 23, and 25 according to the instructions described in Supplement 
No. 1 to part 748 of the EAR. If your commodity is fertilizer, western 
red cedar or live horses, you must confirm that BIS has previously 
classified your commodity as EAR99 by placing the Commodity 
Classification Automatic Tracking System (CCATS) number in block 22(d). 
BIS will not initiate the registration of an AGR notification unless all 
requested information on the Multipurpose Application form is complete.
    (3) Action by BIS. Within two business days of the registration of 
the AGR notification, BIS will refer the notification for interagency 
review, or if necessary return the notification without action (e.g., if 
the information provided is incomplete). Registration is defined as the 
point at which the notification is entered into BIS's electronic system.
    (4) Review by other departments or agencies. The Departments of 
Defense, State, and other agencies, as appropriate, may review the AGR 
notification. BIS must receive department or agency objections within 
nine business days of the referral. Unlike the provisions described in 
Sec.  750.4(b) of the EAR, there are no provisions for stopping the 
processing time of the AGR notification. If, within 11 business days 
after the date of registration, any reviewing agency provides a written 
objection that the recipient may promote international terrorism or the 
transaction raises nonproliferation concerns, you may not use License 
Exception AGR. In such cases, BIS will notify you that a license is 
required for the export or reexport. BIS will then process the AGR 
notification as a license application in accordance with the provisions 
described in Sec.  750.4 of the EAR, and the licensing policies set 
forth in the EAR. At this time, BIS may request additional information. 
When BIS confirms that no agency has raised an objection within eleven 
business days (as described in paragraph (c)(5) of this section), you 
may proceed with the transaction provided that you satisfy all other 
requirements of License Exception AGR, including the requirement to have 
a written contract prior to any shipment (unless a donation or 
commercial sample). (Note that the fact that you have been advised that 
no agency has objected to the transaction does not exempt you from other 
licensing requirements under the EAR, such as those based on knowledge 
of a prohibited end-use or end-user as referenced in general prohibition 
five (part 736 of the EAR) and set forth in part 744 of the EAR.)
    (5) Status of pending AGR notification requests. You must contact 
BIS's System for Tracking Export License Applications (``STELA'') at 
(202) 482-2752 for status of your pending AGR notification. (See Sec.  
750.5 of the EAR for procedures to access information on STELA.) STELA 
will provide the date of registration of the AGR notification. If no 
department or agency objection is raised within 11 business days, STELA 
will, on the twelfth business day following the date of registration, 
provide you with confirmation of that fact. You may not proceed with 
your shipment unless you confirm with STELA that no objection has been 
raised. BIS will subsequently issue written confirmation to you. If an 
objection is raised, STELA will indicate that a license is required. The 
AGR notification will then be processed as a license application. In 
addition, BIS may provide notice of an objection by telephone, fax, 
courier service, or other means.
    (d) Donations. (1) Donations of agricultural commodities are 
eligible for export and reexport to Cuba under License Exception AGR, 
provided the transaction meets the requirements

[[Page 284]]

and procedures of this license exception (except the written contract 
requirement).
    (2) Donations of food items to non-governmental organizations (NGOs) 
and individuals in Cuba may also be eligible for License Exception GFT. 
See Sec.  740.12 for eligibility requirements of gift parcels and 
humanitarian donations under License Exception GFT.

[66 FR 36681, July 12, 2001]

              Supplement No. 1 to Part 740--Country Groups

                                                 Country Group A
----------------------------------------------------------------------------------------------------------------
                                                                           Missile
                                                                         technology     Australia      Nuclear
                         Country                                           control        group       suppliers
                                                                           regime                       group
                                                                [A:1]         [A:2]         [A:3]         [A:4]
---------------------------------------------------------
Argentina...............................................  ............            X             X             X
Australia...............................................            X             X             X             X
Austria \1\.............................................  ............            X             X             X
Belarus.................................................  ............  ............  ............            X
Belgium.................................................            X             X             X             X
Brazil..................................................  ............            X   ............            X
Bulgaria................................................  ............  ............            X             X
Canada..................................................            X             X             X             X
Cyprus..................................................  ............  ............            X             X
Czech Republic..........................................  ............            X             X             X
Denmark.................................................            X             X             X             X
Finland \1\.............................................  ............            X             X             X
France..................................................            X             X             X             X
Germany.................................................            X             X             X             X
Greece..................................................            X             X             X             X
Hong Kong \1\...........................................  ............  ............  ............  ............
Hungary.................................................  ............            X             X             X
Iceland.................................................  ............            X             X   ............
Ireland \1\.............................................  ............            X             X             X
Italy...................................................            X             X             X             X
Japan...................................................            X             X             X             X
Kazakhstan..............................................  ............  ............  ............            X
Korea, South \1\........................................  ............            X             X             X
Latvia..................................................  ............  ............  ............            X
Luxembourg..............................................            X             X             X             X
Netherlands.............................................            X             X             X             X
New Zealand \1\.........................................  ............            X             X             X
Norway..................................................            X             X             X             X
Poland..................................................  ............            X             X             X
Portugal................................................            X             X             X             X
Romania.................................................  ............  ............            X             X
Russia..................................................  ............            X   ............            X
Slovakia................................................  ............  ............            X             X
Slovenia................................................  ............  ............  ............            X
South Africa............................................  ............            X   ............            X
Spain...................................................            X             X             X             X
Sweden \1\..............................................  ............            X             X             X
Switzerland \1\.........................................  ............            X             X             X
Turkey..................................................            X             X             X             X
Ukraine.................................................  ............            X   ............            X
United Kingdom..........................................            X             X             X             X
United States...........................................            X             X             X             X
----------------------------------------------------------------------------------------------------------------
\1\ Cooperating Countries.


[[Page 285]]

[GRAPHIC] [TIFF OMITTED] TR25MR96.009


    Editorial Note 1: At 64 FR 60341, Nov. 5, 1999, Supplement No. 1 to 
part 740 is amended by removing ``Serbia and Montenegro'' from the list 
of ``Country Group B'' countries and by adding in alphabetical order, 
``Kosovo (Serbian province of)'' and ``Montenegro''. Changes to this 
illustration are effective Nov. 5, 1999.

[[Page 286]]


    Editorial Note 2: At 65 FR 14859, Mar. 20, 2000, Supplement No. 1 to 
part 740, Country Group B, is amended by revising ``Antiqua'' to read 
``Antigua''. Changes to this illustration are effective Mar. 20, 2000.

    Editorial Note 3: At 66 FR 12847, Mar. 1, 2001, Supplement No. 1 to 
part 740, Country Group B, was amended by removing ``Kosovo (Serbian 
province of)'' and ``Montenegro'' and by adding ``Yugoslavia (Serbia and 
Montenegro), Federal Republic of''. Changes to this illustration are 
effective Mar. 1, 2001.
[GRAPHIC] [TIFF OMITTED] TR25MR96.010


                                        Country Group D
----------------------------------------------------------------------------------------------------------------
                                       [D: 1]  National                      [D: 3]  Chemical   [D: 4]  Missile
               Country                     Security      [D: 2]  Nuclear      &  Biological        Technology
----------------------------------------------------------------------------------------------------------------
Afghanistan.........................  .................  .................                 X   .................
Albania.............................                 X   .................  .................  .................
Algeria.............................  .................  .................  .................  .................
Andorra.............................  .................  .................  .................  .................
Angola..............................  .................  .................  .................  .................
Armenia.............................                 X   .................                 X   .................
Azerbaijan..........................                 X   .................                 X   .................
Bahrain.............................  .................  .................                 X                  X
Belarus.............................                 X   .................                 X   .................
Bulgaria............................                 X   .................                 X   .................
Burma...............................  .................  .................                 X   .................
Cambodia............................                 X   .................  .................  .................
China (PRC).........................                 X   .................                 X   X[hairsp][hairsp]
                                                                                                            \1\
Comoros.............................  .................  .................  .................  .................
Cuba................................  .................                 X                  X   .................
Djibouti............................  .................  .................  .................  .................
Egypt...............................  .................  .................                 X                  X
Estonia.............................                 X   .................  .................  .................
Georgia.............................                 X   .................                 X   .................
India...............................  .................                 X                  X   X[hairsp][hairsp]
                                                                                                            \1\
Iran................................  .................                 X                  X   X[hairsp][hairsp]
                                                                                                            \1\
Iraq................................  .................                 X                  X                  X
Israel..............................  .................                 X                  X                  X
Jordan..............................  .................  .................                 X                  X
Kazakhstan..........................                 X   .................                 X   .................
Korea, North........................  .................                 X                  X   X[hairsp][hairsp]
                                                                                                            \1\
Kuwait..............................  .................  .................                 X                  X
Kyrgyzstan..........................                 X   .................                 X   .................
Laos................................                 X   .................  .................  .................
Latvia..............................                 X   .................  .................  .................
Lebanon.............................  .................  .................                 X                  X
Libya...............................  .................                 X                  X                  X
Lithuania...........................                 X   .................  .................  .................
Macau...............................                 X   .................                 X                  X
Micronesia, Federated States of.....  .................  .................  .................  .................
Moldova.............................                 X   .................                 X   .................
Mongolia............................                 X   .................                 X   .................
Oman................................  .................  .................                 X                  X
Pakistan............................  .................                 X                  X   X[hairsp][hairsp]
                                                                                                            \1\
Qatar...............................  .................  .................                 X                  X
Romania.............................                 X   .................  .................  .................
Russia..............................                 X   .................                 X   .................
Saudi Arabia........................  .................  .................                 X                  X
Syria...............................  .................  .................                 X                  X
Taiwan..............................  .................  .................                 X   .................
Tajikstan...........................                 X   .................                 X   .................

[[Page 287]]

 
Turkmenistan........................                 X   .................                 X   .................
Ukraine.............................                 X   .................                 X   .................
United Arab Emirates................  .................  .................                 X                  X
Uzbekistan..........................                 X   .................                 X   .................
Vanuatu.............................  .................  .................  .................  .................
Vietnam.............................                 X   .................                 X   .................
Yemen...............................  .................  .................                 X                  X
----------------------------------------------------------------------------------------------------------------
\1\ Certain Missile Technology projects have been identified in the following countries:
 China--M Series Missiles CSS-2.
 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.
 Korea, North--No Dong I, Scud Development Project.
 Pakistan--Half Series Missiles.

                             Country Group E

                             Country Group E
------------------------------------------------------------------------
                                                     [E:1]       [E:2]
                                                   Terrorist  unilateral
                     Country                      supporting    embargo
                                                   countries      \1\
------------------------------------------------------------------------
Cuba............................................          X           X
Iran............................................          X   ..........
Iraq............................................          X   ..........
Korea, North....................................          X   ..........
Libya...........................................          X           X
Sudan...........................................          X   ..........
Syria...........................................          X   ..........
------------------------------------------------------------------------
\1\ In addition to the controls of the EAR that the Bureau of Industry
  and Security administers, note that the Treasury Department's Office
  of Foreign Assets Control administers:
(a) A comprehensive embargo against Cuba, Iran, Iraq, Libya, Sudan, and
  the Taliban and areas of Afghanistan controlled by the Taliban;
(b) A ban on arms and specified items destined to the National Union for
  the Total Independence of Angola (UNITA) located in Angola; and
(c) An embargo against certain individuals and entities, e.g., Specially
  Designated Terrorists (SDT). (Note: The Department of State also
  imposes sanctions on certain individuals and entities, please consult
  with the Department of State for further information concerning these
  controls.)


[61 FR 12768, Mar. 25, 1996, as amended at 62 FR 6686, Feb. 12, 1997; 62 
FR 25458, May 9, 1997; 62 FR 42048, Aug. 5, 1997; 63 FR 37769, July 14, 
1998; 64 FR 28908, May 28, 1999; 65 FR 38151, June 19, 2000; 66 FR 
18402, Apr. 9, 2001; 66 FR 42110, Aug. 10, 2001; 66 FR 49524, Sept. 28, 
2001; 67 FR 37982, May 31, 2002; 67 FR 55598, Aug. 29, 2002; 68 FR 
16146, Apr. 2, 2003; 68 FR 60289, Oct. 22, 2003]

 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

    Supplement No. 3 to Part 740--License Exception ENC Country Group

Austria
Australia
Belgium

[[Page 288]]

Czech Republic
Denmark
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Japan
Luxembourg
Netherlands
New Zealand
Norway
Poland
Portugal
Spain
Sweden
Switzerland
United Kingdom

[65 FR 62607, Oct. 19, 2000]



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: hot section technology for the development, 
          production or overhaul of commercial aircraft engines, 
          components, and systems.
742.15 Encryption items.
742.16 [Reserved]
742.17 Exports of firearms to OAS member countries.
742.18 Chemical Weapons Convention (CWC or Convention).
742.19 Anti-terrorism: North Korea.

Supplement No. 1 to Part 742--Nonproliferation of Chemical and 
          Biological Weapons
Supplement No. 2 to Part 742--Anti-Terrorism Controls: Iran, North 
          Korea, 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 Escrow or Key Recovery Products 
          Criteria
Supplement No. 5 to Part 742--Checklist on Encryption and Other 
          ``Information Security'' Functions
Supplement No. 6 to Part 742-- Guidelines for Submitting Review Requests 
          for Encryption Items
Supplement No. 7 to Part 742 [Reserved]

    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; Sec. 901-
911, Pub. L. 106-387; Sec. 221, Pub. L. 107-56; E.O. 12058, 43 FR 20947, 
3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., 
p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 
61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 
2001 Comp., p. 783; Notice of November 9, 2001, 66 FR 56965, 3 CFR, 2001 
Comp., p. 917; Notice of August 14, 2002, 67 FR 53721, August 16, 2002.

    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 devices. 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

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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, 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, 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, 
North Korea, 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 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, and Iraq, 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 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.  742.2(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.

[61 FR 12786, Mar. 25, 1996, as amended at 62 FR 25458, May 9, 1997; 65 
FR 38151, June 19, 2000]

[[Page 290]]



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. (See also Sec.  742.18 
of this part for license requirements pursuant to the Chemical Weapons 
Convention).
    (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, including 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 (ECCNs 1E001 and 1E351) 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 identified 
in ECCN 1C350.a, .b, .c, or .d, except as specified in License 
Requirements 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.
    (C) This licensing requirement does not apply to any of the 
following medical, analytical, diagnostic, and food testing kits that 
consist of pre-packaged materials of defined composition that are 
specifically developed, packaged, and marketed for diagnostic, 
analytical, or public health purposes:
    (1) Test kits containing no more than 300 grams of any chemical 
controlled by ECCN 1C350.b or .c (CB-controlled chemicals also 
identified as Schedule 2 or 3 chemicals under the CWC) that are destined 
for export or reexport to CWC States Parties (destinations listed in 
Supplement No. 2 to Part 745 of the EAR). Such test kits are controlled 
by ECCN 1C395 for CB and CW reasons, to States not Party to the CWC 
(destinations not listed in Supplement No. 2 to part 745 of the EAR), 
and for AT reasons.
    (2) Test kits that contain no more than 300 grams of any chemical 
controlled by ECCN 1C350.d (CB-controlled chemicals not also identified 
as Schedule 1, 2, or 3 chemicals under the CWC). Such test kits are 
controlled by ECCN 1C995 for AT reasons.
    (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 (ECCNs 1E001 and 1E351) for the production and/or 
disposal of chemical precursors described in ECCN 1C350, and technology 
(ECCNs 1E001 and 1E350) involving the following for facilities designed 
or intended to produce chemicals described in 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 ECCN 2B350 or 2B351 on the 
CCL, and valves controlled by ECCN 2A226 or ECCN 2A292 having the 
characteristics of those described in 2B350.g, which can be used in the 
production of chemical weapons precursors or chemical warfare agents;
    (ii) Equipment and materials identified in ECCN 2B352, which can be 
used in the production of biological agents;

[[Page 291]]

    (iii) Medical products identified in ECCN 1C991.d;
    (iv) Technology identified in ECCN 2E001, 2E002, or 2E301 for:
    (A) The development, production, or use of items controlled by ECCN 
2B350, 2B351, or 2B352; or
    (B) The development or production of valves controlled by ECCN 2A226 
or 2A292 having the characteristics of those described in ECCN 2B350.g; 
and
    (v) Technology identified in ECCN 2E201 or 2E290 for the use of 
valves controlled by ECCN 2A226 or 2A292 having the characteristics of 
those described in 2B350.g.
    (4) A license is required, to States not Party to the CWC 
(destinations not listed in Supplement No. 2 to Part 745 of the EAR), 
for mixtures controlled by 1C395.a and test kits controlled by 1C395.b.
    (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, 
stockpiling or use of chemical or biological weapons. When an export or 
reexport is deemed to make such a material contribution, the license 
will be denied. When an export or reexport is intended to be used in a 
chemical weapons or biological weapons program, or for chemical or 
biological weapons terrorism purposes, it is deemed to make a material 
contribution. The factors listed in paragraph (b)(2) of this section are 
among those that will be considered to determine what action should be 
taken on license applications for these items.
    (2) The following factors are among those that will be considered to 
determine what action should be taken on license applications for the 
items described in paragraph (a) of this section:
    (i) The specific nature of the end-use, including the 
appropriateness of the stated end-use;
    (ii) The significance of the export and reexport in terms of its 
potential contribution to the design, development, production, 
stockpiling, or use of chemical or biological weapons;
    (iii) The nonproliferation credentials of the importing country, 
including the importing country's chemical and biological capabilities 
and objectives;
    (iv) The risk that the items will be diverted for use in a chemical 
weapons or biological weapons program, or for chemical weapons or 
biological weapons terrorism purposes;
    (v) The reliability of the parties to the transaction, including 
whether:
    (A) An export or reexport license application involving any such 
parties has previously been denied;
    (B) Any such parties have been engaged in clandestine or illegal 
procurement activities;
    (C) The end-user is capable of securely handling and storing the 
items to be exported or reexported;
    (vi) Relevant information about proliferation and terrorism 
activities, including activities involving the design, development, 
production, stockpiling, or use of chemical or biological weapons by any 
parties to the transaction;
    (vii) The types of assurances or guarantees against the design, 
development, production, stockpiling, or use of chemical or biological 
weapons that are given in a particular case, including any relevant 
assurances provided by the importing country or the end-user;
    (viii) The applicability of other multilateral export control or 
nonproliferation agreements (e.g., the Chemical Weapons Convention and 
the Biological and Toxin Weapons Convention) to the transaction; and
    (ix) The existence of a pre-existing contract.
    (3) BIS 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 license for reasons other than short supply; and
    (ii) 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

[[Page 292]]

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.

[61 FR 12786, Mar. 25, 1996, as amended at 62 FR 25458, May 9, 1997; 63 
FR 42228, Aug. 7, 1998; 64 FR 27142, May 18, 1999; 64 FR 28909, May 28, 
1999; 66 FR 49524, Sept. 28, 2001; 67 FR 37982, May 31, 2002; 67 FR 
55598, Aug. 29, 2002; 68 FR 34529, June 10, 2003; 68 FR 67031, Dec. 1, 
2003]



Sec.  742.3  Nuclear nonproliferation.

    (a) License requirements. Section 309(c) of the Nuclear Non-
Proliferation Act of 1978 requires BIS 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 
Sec. Sec.  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;
    (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;

[[Page 293]]

    (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, BIS 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 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

[[Page 294]]

Country Group D:1 (see Supplement No. 1 to part 740 of the EAR) is to 
approve applications when BIS 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 BIS 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'' 
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

[[Page 295]]

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. BIS 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 1B117 
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.

[61 FR 12786, Mar. 25, 1996, as amended at 68 FR 16147, Apr. 2, 2003]



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, .c, or .e; 6A003.b.3 and b.4; 6A008.j.1; 
6A998.b; 6D001 (only ``software'' for the ``development'' or 
``production'' of items in 6A002.a.1, a.2, a.3, .c; 6A003.b.3 and .b.4; 
or 6A008.j.1); 6D002 (only ``software'' for the ``use'' of items in 
6A002.a.1, a.2, a.3, .c; 6A003.b.3 and .b.4; or 6A008.j.1); 6D991 (only 
``software'' for the ``development,'' ``production,'' or ``use'' of 
equipment controlled by 6A002.e or 6A998.b); 6E001 (only ``technology'' 
for ``development'' of items in 6A002.a.1, a.2, a.3, and .c or .e, 
6A003.b.3 and b.4, or 6A008.j.1); 6E002 (only ``technology'' for 
``production'' of items in 6A002.a.1, a.2, a.3, .c, or .e, 6A003.b.3 or 
b.4, or 6A008.j.1); 6E991 (only ``technology'' for the ``development,'' 
ldquo;production,'' or ``use'' of equipment controlled by 6A998.b); 
7D001 (only ``software'' for ``development'' or ``production'' of items 
in 7A001, 7A002, or 7A003); 7E001 (only ``technology'' 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); 7E101 (only ``technology'' for the ``use'' of inertial 
navigation systems, inertial equipment, and specially designed 
components 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), The Czech Republic, Hungary, Iceland, New 
Zealand and

[[Page 296]]

Poland for items described on the CCL under ECCNs 2A983, 2D983 and 
2E983, and 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.
    (3) For terrorist-designated countries, the applicable licensing 
policies are found in parts 742 and 746 of the EAR.
    (c) Contract sanctity date: March 21, 2003. This contract sanctity 
date applies only to items controlled under ECCNs 2A983, 2D983 and 2E983 
destined for countries not listed in Country Group E (Supplement 1 to 
part 740). See parts 742 and 746 for the contract sanctity requirements 
applicable to exports and reexports to countries listed in Country Group 
E.
    (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.

[61 FR 12786, Mar. 25, 1996, as amended at 63 FR 2458, Jan. 15, 1998; 67 
FR 11897, Mar. 18, 2002; 67 FR 59725, Sept. 23, 2002; 68 FR 16211, Apr. 
3, 2003]



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 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: 
0A978, 0A979, 0A984, 0A987, 0E984, 1A984, 1A985, 3A980, 3A981, 3D980, 
3E980, 4A003 (for fingerprint computers only), 4A980, 4D001 (for 
fingerprint computers only), 4D980, 4E001 (for fingerprint computers 
only), 4E980, 6A002 (for 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 greater than or equal to 24 
inches, identified in ECCN 0A984 on the CCL under CC Column 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 part 
738 of the EAR).
    (3) Shotguns with barrel length greater than or equal to 24 inches, 
identified in ECCN 0A984 on the CCL under CC Column 3 in the Country 
Chart column of the ``License Requirements'' section only if for sale or 
resale to police or law enforcement entities in countries listed in CC 
Column 3 (Supplement No. 1 part 738 of the EAR).
    (4) Certain crime control items require a license to all 
destinations, except Canada. These items are identified under ECCNs 
0A982, 0A985, and 0E982. Controls for these items appear in each ECCN; a 
column specific to these controls does not appear in the Country Chart 
(Supplement No. 1 to part 738 of the EAR).
    (5) See Sec.  742.11 of the EAR for further information on items 
controlled under ECCN 0A983, which require a license to all 
destinations, including Canada.
    (b) Licensing policy. Applications for items controlled under this 
section will generally be considered favorably on a case-by-case basis 
unless there is civil

[[Page 297]]

disorder in the country or region or unless there is evidence that the 
government of the importing country may have violated internationally 
recognized human rights. The judicious use of export controls is 
intended to deter the development of a consistent pattern of human 
rights abuses, distance the United States from such abuses and avoid 
contributing to civil disorder in a country or region.
    (c) Contract sanctity. Contract sanctity date: August 22, 2000. 
Contract sanctity applies only to items controlled under ECCNs 0A982, 
0A985 and 0E982 destined for countries not listed in CC Column 1 of the 
Country Chart (Supplement No. 1 to part 738 of the EAR).
    (d) U.S. controls. Although the United States seeks cooperation from 
like-minded countries in maintaining controls on crime control and 
detection items, at this time these controls are maintained only by the 
United States.

[65 FR 55178, Sept. 13, 2000]



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 Commerce 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; 3A992.a; 5A991.g; 5A992; 
6A991; 6A998; 7A994; 8A992.d, .e, .f, and .g; 9A990.a and .b; and 
9A991.d and .e. 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 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, BIS 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)(44) 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 BIS is required.
    (b) Licensing policy. (1) The Iran-Iraq Arms Non-Proliferation Act 
of October 23, 1992, requires BIS 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

[[Page 298]]

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 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.

[61 FR 12786, Mar. 25, 1996, as amended at 63 FR 42228, Aug. 7, 1998; 64 
FR 27142, May 18, 1999; 65 FR 34075, May 26, 2000; 66 FR 36682, July 12, 
2001; 68 FR 16212, Apr. 3, 2003]



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, BIS 
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)(44) 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, except that parts and components 
intended to ensure the safety of civil aviation and the safe operation 
of commercial passenger aircraft will be reviewed on a case-by-case 
basis, with a presumption of approval. These are items controlled to any 
destination for national security and missile technology reasons and 
items controlled to Syria for anti-terrorism purposes. Such items 
contain an NS Column 1, NS Column 2, MT Column 1, or AT Column 1 in the 
Country Chart column of the ``License Requirements'' section of an

[[Page 299]]

ECCN on the CCL. Note that, consistent with the general rule that 
applies to computing U.S. parts and components content incorporated into 
foreign made products, all aircraft-related items that require a license 
to Syria will be included as controlled U.S. content, except for ECCNs 
6A998, 7A994, and 9A991.d, for purposes of such licensing 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) Explosives detection equipment controlled under ECCN 2A983.
    (vii) ``Software'' (ECCN 2D983) specially designed or modified for 
the ``development'', ``production'' or ``use'' of explosives detection 
equipment controlled by 2A983.
    (viii) ``Technology'' (ECCN 2E983) specially designed or modified 
for the ``development'', ``production'' or ``use'' of explosives 
detection equipment controlled by 2A983.
    (ix) Commercial charges and devices controlled under ECCN 1C992.
    (x) Ammonium nitrate, including certain fertilizers containing 
ammonium nitrate, controlled under ECCN 1C997.
    (xi) Technology for the production of Chemical Weapons Convention 
(CWC) Schedule 2 and 3 chemicals controlled under ECCN 1E355.
    (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 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.

[61 FR 12786, Mar. 25, 1996, as amended at 62 FR 25459, May 9, 1997; 63 
FR 42228, Aug. 7, 1998; 64 FR 27142, May 18, 1999; 64 FR 47667, Sept. 1, 
1999; 64 FR 50248, Sept. 16, 1999; 66 FR 36682, July 12, 2001; 68 FR 
16212, Apr. 3, 2003]



Sec.  742.10  Anti-terrorism: Sudan.

    (a) License requirements. (1) If AT column 1 or AT column 2 
1 of the Country

[[Page 300]]

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 Commerce 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; 3A992.a; 5A991.g; 5A992; 
6A991; 6A998; 7A994; 8A992.d, .e, .f, and .g; 9A990.a and .b; and 
9A991.d and .e. 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.
    (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, BIS 
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)(44) 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:
    (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) Explosives detection equipment controlled under ECCN 2A983.
    (vii) ``Software'' (ECCN 2D983) specially designed or modified for 
the ``development'', ``production'' or ``use'' of explosives detection 
equipment controlled by 2A983.

[[Page 301]]

    (viii) ``Technology'' (ECCN 2E983) specially designed or modified 
for the ``development'', ``production'' or ``use'' of explosives 
detection equipment controlled by 2A983.
    (ix) Commercial charges and devices controlled under ECCN 1C992.
    (x) Technology for the production of Chemical Weapons Convention 
(CWC) Schedule 2 and 3 chemicals controlled under ECCN 1E355.
    (xi) Ammonium nitrate, including certain fertilizers containing 
ammonium nitrate, controlled under ECCN 1C997.
    (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.

[61 FR 12786, Mar. 25, 1996, as amended at 63 FR 42228, Aug. 7, 1998; 64 
FR 27142, May 18, 1999; 64 FR 47667, Sept. 1, 1999; 65 FR 14859, Mar. 
20, 2000; 65 FR 34075, May 26, 2000; 66 FR 36682, July 12, 2001; 68 FR 
16212, Apr. 3, 2003]



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.

[[Page 302]]

Licenses are required under this section for ECCN's having an ``XP'' 
under ``Reason for Control'', unless a License Exception is available 
(see part 740 of the EAR). Post-shipment verification reporting or 
Wassenaar reporting may be required when exporting or reexporting ``XP'' 
items under the authorization of a License Exception (See 743.1 of the 
EAR for Wassenaar reporting requirements and paragraph (b)(3)(iv) of 
this section for post-shipment verification requirements). 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 list of ECCNs 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 section 742.3 of 
the EAR. The license requirements described in this section 742.12 are 
not reflected on the Country Chart (Supplement No. 1 to part 738 of the 
EAR). Three Computer Country Tiers have been established for the 
purposes of these controls. Countries included in Computer Tiers 1 and 3 
are listed in License Exception CTP in section 740.7 of the EAR. As of 
January 19, 2001 there is no longer a Computer Tier 2, and countries 
that were in Tier 2 are incorporated into Computer Tier 1. Computer Tier 
4 consists of Cuba, Iran, Iraq, Libya, North Korea, Sudan, and Syria.
    (3) Exporters must keep accurate records of each export to non-
Wassenaar member countries (see Supplement No. 1 to part 743 of the EAR) 
of a computer with a CTP greater than 75,000 MTOPS. These records must 
be submitted semiannually to BIS and must contain the information as 
described in Sec.  743.1 of the EAR.
    (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 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 BIS will depend on the 
country of destination, and the end-use or end-user of the export. BIS 
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) [Reserved]
    (3) Computer Tier 3. (i) License requirement. (A) A license is 
required to export or reexport computers to countries in Computer Tier 3 
to nuclear, chemical, biological, or missile end-users and end-uses and 
military end-users and end-uses subject to license requirements under 
Sec.  744.2, Sec.  744.3, Sec.  744.4, Sec.  744.5, and Sec.  744.12 of 
the EAR in Computer Tier 3 countries.
    (B) A license is required to export or reexport computers with a CTP 
greater than 190,000 MTOPS to a country in Computer Tier 3.

    Note to paragraph (b)(3)(i) of this section:
    Exporters are required to obtain a People's Republic of China (PRC) 
End-User Certificate before exporting computers described by paragraph 
(b)(3)(i) of this section to the PRC, regardless of value. (See Sec.  
748.10(c)(3) of the EAR for information on obtaining the PRC End-User 
Certificate.)

    (ii) Licensing policy for nuclear, chemical, biological, or missile 
end-users and end-uses and military end-users and end-uses. License 
applications for exports and reexports to nuclear, chemical, biological, 
or missile end-users and end-

[[Page 303]]

uses and military end-users and end-uses subject to license requirements 
under Sec.  744.2, Sec.  744.3, Sec.  744.4, Sec.  744.5, and Sec.  
744.12 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-users and end-uses. License 
applications for exports and reexports to other end-uses and end-users 
located in Computer Tier 3 countries will generally be approved, except 
there is a presumption of denial for all applications for exports and 
reexports of high performance computers destined to Indian and Pakistani 
entities determined to be involved in nuclear, missile, or military 
activities included in Supplement No. 4 to part 744 (Entity List). All 
license applications for exports and reexports to India and Pakistan not 
meeting these criteria for presumption of denial will be considered on a 
case-by-case basis under other licensing policies set forth in the EAR 
applicable to such computers.
    (iv) Post-shipment verification. This section outlines special post-
shipment reporting requirements for exporters of certain computers to 
destinations in Computer Tier 3. Post-shipment reports must be submitted 
in accordance with the provisions of this paragraph (b)(3)(iv), and all 
relevant records of such exports must be kept in accordance with part 
762 of the EAR.
    (A) Exporters must file post-shipment reports for high performance 
computer exports, as well as exports of items used to enhance previously 
exported or reexported computers, where the CTP is greater than 190,000 
MTOPS.
    (B) Information that must be included in each post-shipment report. 
No later than the last day of the month following the month in which the 
export takes place, the exporter must submit the following information 
to BIS at the address listed in paragraph (b)(3)(iv)(C) of this section:
    (1) Exporter name, address, and telephone number;
    (2) License number;
    (3) Date of export;
    (4) End-user name, point of contact, address, telephone number;
    (5) Carrier;
    (6) Air waybill or bill of lading number;
    (7) Commodity description, quantities--listed by model numbers, 
serial numbers, and CTP level in MTOPS; and
    (8) Certification line for exporters to sign and date. The exporter 
must certify that the information contained in the report is accurate to 
the best of his or her knowledge.

    Note to paragraph (b)(3)(iv)(B) of this section:
    Exporters are required to provide the PRC End-User Certificate 
Number to BIS as part of their post-shipment report (see paragraph 
(b)(3)(iv) of this section). When providing the PRC End-User Certificate 
Number to BIS, you must identify the transaction in the post shipment 
report to which that PRC End-User Certificate Number applies.

    (C) Mailing address. A copy of the post-shipment report[s] required 
under paragraph (b)(3)(iv)(A) of this section shall be delivered to one 
of the following addresses. Note that BIS will not accept reports sent 
C.O.D.
    (1) For deliveries by U.S. postal service: U.S. Department of 
Commerce, Bureau of Industry and Security, P.O. Box 273, Washington, 
D.C. 20044, Attn: Office of Enforcement Analysis HPC Team, Room 4065.
    (2) For courier deliveries: U.S. Department of Commerce, Office of 
Enforcement Analysis HPC Team, 14th Street and Constitution Ave., NW, 
Room 4065, Washington, DC 20230.

[[Page 304]]

    (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.  742.19(b).
    (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. 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; 63 
FR 2458, Jan. 15, 1998; 63 FR 5451, Feb. 3, 1998; 63 FR 63143, Nov. 12, 
1998; 63 FR 64324, Nov. 19, 1998; 64 FR 2431, Jan. 14, 1999; 64 FR 
42012, Aug. 3, 1999; 65 FR 12922, Mar. 10, 2000; 65 FR 38151, June 19, 
2000; 65 FR 60855, Oct. 13, 2000; 66 FR 5446, Jan. 19, 2001; 67 FR 
10615, 10610, Mar. 8, 2002; 67 FR 13567, Mar. 25, 2002]



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: hot section technology for the development, 
production or overhaul of commercial aircraft engines, components, and systems.

    (a) License requirement. Licenses are required for all destinations, 
except Canada, for ECCNs having an ``SI'' under the ``Reason for 
Control'' paragraph. These items include 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, foreign policy

[[Page 305]]

controls apply to 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 these 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.
    (d) [Reserved]

[64 FR 13339, Mar. 18, 1999]



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 U.S. national 
security, foreign policy and law enforcement interests. The United 
States has a critical interest in ensuring that important and sensitive 
information of the public and private sector is protected. Consistent 
with our international obligations as a member of the Wassenaar 
Arrangement, the United States has a responsibility to maintain control 
over the export and reexport of encryption items. As the President 
indicated in Executive Order 13026 and in his Memorandum of November 15, 
1996, exports and reexports of encryption software, like exports and 
reexports of encryption hardware, are 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 or reexport 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) Licensing requirements and policy--(1) Encryption items 
controlled under ECCN 5A002, 5D002, or 5E002. (i) Licensing 
requirements. A license is required to export or reexport encryption 
items (``EI'') controlled under ECCN 5A002, 5D002 or 5E002 to all 
destinations, except Canada. Refer to part 740 of the EAR, for license 
exceptions that apply to certain encryption items, and to Sec.  772.1 of 
the EAR for definitions of encryption items and terms. Exporters must 
submit applications to obtain authorization under a license or an 
Encryption Licensing Arrangement for exports and reexports of encryption 
items that are not eligible for a license exception.
    (ii) Licensing policy. Applications will be reviewed on a case-by-
case basis by BIS, in conjunction with other agencies, to determine 
whether the export or reexport is consistent with U.S. national security 
and foreign policy interests. Exports of encryption items to 
governments, or Internet and telecommunications service providers for 
the provision of services specific to governments, may be favorably 
considered for civil uses, e.g., social or financial services to the 
public; civil justice; social insurance, pensions and retirement; taxes 
and communications between governments and their citizens. Encryption 
Licensing Arrangements may be authorized for exports and reexports of 
unlimited quantities of encryption items to all destinations, except 
countries listed in Country Group E:1 of Supplement No. 1 to part 740. 
Encryption Licensing Arrangements, including those which authorize 
exports and reexports of encryption technology to strategic partners (as 
defined in Sec.  772.1 of the EAR) of U.S. companies, are valid for four 
years and may require reporting. Applicants seeking authorization for 
Encryption Licensing Arrangements must specify the sales territory and 
class of end-user on their license applications.
    (2) Encryption items controlled under ECCN 5A992, 5D992, or 5E992. 
(i) Licensing requirements. Items controlled under

[[Page 306]]

ECCN 5A992, 5D992 or 5E992 are controlled for anti-terrorism (AT) 
reasons to countries listed in AT column 1 or AT column 2, as 
applicable, of the Commerce Country Chart (Supplement No. 1 to Part 738 
of the EAR). A license also may be required to certain destinations or 
persons for other reasons specified elsewhere in the EAR (e.g., 
embargoes). In addition, these encryption items are subject to the 
notification or review requirements described in paragraph (b)(1) and 
(b)(2) of this section, unless specifically excluded by paragraph (b)(3) 
of this section.
    (ii) Licensing policy. Applications will be reviewed on a case-by-
case basis by BIS, in conjunction with other agencies, to determine 
whether the export or reexport is consistent with U.S. national security 
and foreign policy interests. BIS does not authorize Encryption 
Licensing Arrangements for exports and reexports of encryption items to 
any of the countries listed in Country Group E:1 of Supplement No. 1 to 
Part 740 of the EAR.
    (b) Notification and review requirements for encryption items 
controlled under ECCN 5A992, 5D992 or 5E992. You may export and reexport 
encryption commodities, software and technology controlled under ECCN 
5A992, 5D992 or 5E992 without a license (NLR: No License Required) to 
most destinations, in accordance with paragraph (a)(2) of this section, 
provided that you have met the notification and review requirements 
described in paragraphs (b)(1) and (b)(2) of this section. Certain 
encryption items controlled under ECCN 5A992, 5D992 or 5E992 may be 
exported or reexported without notification or review--these items are 
identified in paragraph (b)(3) of this section. In addition, no post-
shipment reporting is required for encryption items controlled under 
ECCN 5A992, 5D992, or 5E992. See Sec.  732.5 of the EAR for Shipper's 
Export Declaration (SED), Destination Control Statements (DCS), and 
recordkeeping requirements for items exported and reexported without a 
license (NLR).
    (1) Notification requirement for specified encryption items. You may 
export or reexport encryption items controlled under ECCN 5A992, 5D992 
or 5E992 and identified in paragraphs (b)(1)(i) and (b)(1)(ii) of this 
section to most destinations without a license (NLR: No License 
Required), provided that you have submitted to BIS, by the time of 
export, the information described in paragraphs (a) through (e) of 
Supplement No. 6 of this part. For notifications submitted under 
paragraph (b)(1)(i) of this section, you must also provide specific 
information describing how your products qualify for mass market 
treatment under the criteria in the Cryptography Note (Note 3) of 
Category 5, Part 2, of the Commerce Control List (Supplement No. 1 to 
part 774 of the EAR). If you are unsure as to whether your encryption 
items are eligible for export or reexport under this paragraph (b)(1), 
you should submit a request, to BIS and to the ENC Encryption Request 
Coordinator, for a review of your encryption items pursuant to the 
requirements of paragraph (b)(2) of this section (for mass market 
encryption commodities and software), or under the provisions of License 
Exception ENC (see Sec.  740.17 of the EAR). The following encryption 
items controlled by ECCN 5A992, 5D992, or 5E992 are eligible for export 
or reexport without a license, to most destinations, with notification 
only:
    (i) Up to (and including) 64-bit mass market encryption commodities 
and software;
    (ii) Encryption items (including key management products and company 
proprietary implementations) with key lengths not exceeding 56 bits for 
symmetric algorithms, 512 bits for asymmetric key exchange algorithms, 
and 112 bits for elliptic curve algorithms;
    (2) Review requirement for mass market encryption commodities and 
software exceeding 64 bits: Mass market encryption commodities and 
software employing a key length greater than 64 bits for the symmetric 
algorithm (including such products previously reviewed by BIS and 
exported under ECCN 5A002 or 5D002) remain subject to the EAR and 
require review by BIS, prior to export or reexport under this paragraph 
(b)(2). Encryption commodities and software that are not eligible as 
retail items under License Exception ENC do not qualify for mass market 
treatment (see

[[Page 307]]

Sec.  740.17(b)(3) of the EAR for retail product eligibility under 
License Exception ENC.)
    (i) Procedures for requesting review. To request review of your mass 
market encryption products, you must submit to BIS and the ENC 
Encryption Request Coordinator the information described in paragraphs 
(a) through (e) of Supplement 6 to this part 742, and you must include 
specific information describing how your products qualify for mass 
market treatment under the criteria in the Cryptography Note (Note 3) of 
Category 5, Part 2 (``Information Security''), of the Commerce Control 
List (Supplement No. 1 to Part 774 of the EAR). Review requests must be 
submitted on Form BIS-748P (Multipurpose Application), or its electronic 
equivalent, as described in Sec.  748.3 of the EAR. To ensure that your 
review request is properly routed, insert the phrase ``Mass market 
encryption'' in Block 9 (Special Purpose) of the application form and 
place an ``X'' in the box marked ``Classification Request'' in Block 5 
(Type of Application)--Block 5 does not provide a separate item to check 
for the submission of encryption review requests. Failure to properly 
complete these items may delay consideration of your review request. 
Review requests that are not submitted electronically to BIS should be 
mailed to the address indicated in Sec.  748.2(c) of the EAR. 
Submissions to the ENC Encryption Request Coordinator should be directed 
to the mailing address indicated in Sec.  740.17(e)(5)(ii) of the EAR. 
BIS will notify you if there are any questions concerning your request 
for review (e.g., because of missing or incomplete support 
documentation).
    (ii) Action by BIS. Once BIS has completed its review, you will 
receive written confirmation concerning the eligibility of your items 
for export or reexport as mass market encryption commodities or software 
controlled under ECCN 5A992 or 5D992. If, during the course of its 
review, BIS determines that your encryption items do not qualify for 
mass market treatment under the EAR, or are otherwise controlled under 
ECCN 5A002, 5B002, 5D002 or 5E002, BIS will notify you and will review 
your commodities or software for eligibility under License Exception ENC 
(see Sec.  740.17 of the EAR for review and reporting requirements for 
encryption items under License Exception ENC). BIS reserves the right to 
suspend your eligibility to export and reexport under the provisions of 
this paragraph (b)(2) and to return review requests, without action, if 
the requirements for review have not been met.
    (iii) Exports and reexports to government and non-government end-
users. Immediately upon registration by BIS of your completed review 
request (``registration'' is defined in Sec.  750.4(a)(2) of the EAR), 
you may export or reexport mass market encryption commodities and 
software exceeding 64 bits, under ECCNs 5A992 and 5D992, without a 
license (NLR: No License Required) to government and non-government end-
users located in the countries listed in Supplement 3 to part 740 of the 
EAR. These mass market encryption products also may be exported or 
reexported, without a license (NLR), to most destinations (except those 
that require a license for AT reasons or for reasons described elsewhere 
in the EAR) for the internal use of foreign subsidiaries or offices of 
firms, organizations and governments headquartered in Canada or in 
countries listed in Supplement 3 to part 740 of the EAR. Thirty days 
after BIS registers your review request, you may export or reexport 
these mass market encryption products, without a license, to government 
and non-government end-users located in most destinations outside the 
countries listed in Supplement 3 to part 740 of the EAR (certain 
destinations and persons may require a license for AT reasons or for 
reasons specified elsewhere in the EAR), unless otherwise notified by 
BIS (e.g., because of missing or incomplete support documentation, or 
conversion to License Exception ENC review). The thirty days may not 
include any time that your review request was on hold without action. 
See Sec.  772.1 of the EAR for the definition of ``government end-user'' 
as it applies to encryption items.
    (3) Exclusions from notification and review requirements. The 
following items

[[Page 308]]

and transactions do not require notification or review prior to export 
or reexport. However, a license may be required to export or reexport 
these items to certain destinations for AT reasons or for reasons set 
forth elsewhere in the EAR (e.g., embargoes).
    (i) Encryption items for U.S. subsidiaries. Encryption items 
controlled under ECCN 5A992, 5D992, or 5E992 that are exported to 
foreign subsidiaries of U.S. companies (as defined in Sec.  772.1 of the 
EAR) for any end-use, including the development of new products, that is 
not prohibited elsewhere in the EAR. All items produced or developed by 
U.S. subsidiaries with encryption commodities, software and technology 
exported under this paragraph are subject to the EAR and require review 
and authorization before any sale or retransfer outside of the U.S. 
company.
    (ii) Mass market short-range wireless commodities or software. Mass 
market commodities or software that would not otherwise be controlled 
under Category 5 (telecommunications and ``information security'') of 
the Commerce Control List, but which are controlled under ECCN 5A992 or 
5D992 only because they incorporate components or software that provide 
short-range wireless encryption functions (e.g., wireless products with 
an operating range typically not exceeding 100 meters).
    (iii) Items with limited cryptographic functionality. Encryption 
items controlled under ECCN 5A992, 5D992, or 5E992 for which the use of 
cryptography is limited to cryptographic functions that are not 
controlled for ``EI'' reasons under the EAR (e.g. items with 
cryptographic functions limited to authentication or digital signature, 
execution of copy protected software, and ``finance specific'' items 
specially designed and limited for banking use or money transactions). 
These items are described in the Related Controls paragraph and the 
Technical Notes under ECCN 5A002 on the Commerce Control List 
(Supplement No. 1 to part 774 of the EAR), which are cross-referenced 
under ECCNs 5D002 and 5E002.
    (4) Commodities and software that activate or enable cryptographic 
functionality. Commodities, software, and components that allow the end-
user to activate or enable cryptographic functionality in encryption 
products which would otherwise remain disabled, are controlled according 
to the functionality of the activated encryption product. The 
notification and review requirements enumerated in this paragraph (b) of 
this section apply to commodities, software and components which 
activate cryptographic functionality in encryption products controlled 
under ECCNs 5A992 and 5D992. (See Sec.  740.17 of the EAR for review and 
reporting requirements for commodities, software and components that 
enable cryptographic functionality in encryption products controlled 
under ECCNs 5A002 and 5D002.) This paragraph (b)(4) does not authorize 
the export or reexport of any activated encryption product. Separate 
review or authorization of the enabled encryption product is required.
    (5) Examples of mass market encryption products. Subject to the 
requirements of the Cryptography Note (Note 3) in Category 5, Part 2, of 
the Commerce Control List, mass market encryption products include, but 
are not limited to, general purpose operating systems and desktop 
applications (e.g. e-mail, browsers, games, word processing, database, 
financial applications or utilities) designed for, bundled with, or pre-
loaded on single CPU computers, laptops, or hand-held devices; 
commodities and software for client Internet appliances and client 
wireless LAN devices; home use networking commodities and software (e.g. 
personal firewalls, cable modems for personal computers, and consumer 
set top boxes); portable or mobile civil telecommunications commodities 
and software (e.g. personal data assistants (PDAs), radios, or cellular 
products); and commodities and software exported via free or anonymous 
downloads.

[67 FR 38865, June 6, 2002, as amended at 68 FR 35785, June 17, 2003]



Sec.  742.16  [Reserved]



Sec.  742.17  Exports of firearms to OAS member countries.

    (a) License requirements. BIS maintains a licensing system for the 
export of shotguns and related items to all OAS member countries. This 
action is based on the Organization of American

[[Page 309]]

States (OAS) Model Regulations for the Control of the International 
Movement of Firearms, their Parts and Components and Munitions (OAS 
Model Regulations) which were developed to assist OAS member countries 
to implement the Inter-American Convention Against the Illicit 
Manufacturing of and Trafficking in Firearms, Ammunition, Explosives, 
and Other Related Materials (Firearms Convention).1 Items 
subject to these controls are identified by ``FC Column 1'' in the 
``License Requirements'' section of their Export Control Classification 
Number (ECCN) on the Commerce Control List (CCL). If ``FC Column 1'' of 
the Commerce Country Chart (Supplement No. 1 to part 738 of the EAR) is 
indicated for a particular country, a license is required for export to 
that destination. Licenses will generally be issued on an Import 
Certificate or equivalent official document, satisfactory to BIS, issued 
by the government of the importing country is also required for the 
export of such items to OAS member countries.
---------------------------------------------------------------------------

    \1\ Status of Convention as of April 13, 1999 had not entered into 
force.
---------------------------------------------------------------------------

    (b) Licensing policy. Applications supported by an Import 
Certificate or equivalent official document issued by the government of 
the importing country for such items will generally be approved, except 
there is a policy of denial for applications to export items linked to 
such activities as drug trafficking, terrorism, and transnational 
organized crime.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications under this Sec.  742.17.
    (d) OAS Model Regulations. The OAS Model Regulations on which 
regulations are based are designed by OAS member countries to combat 
illicit manufacturing of and trafficking in firearms, ammunition, 
explosives, and other related materials in North and South America 
because of their links to such activities as drug trafficking, 
terrorism, and transnational organized crime.
    (e) OAS member countries to which firearms controls under this 
section apply. The OAS member countries include: Antigua and Barbuda, 
Argentina, the Bahamas, Barbados, Belize, Bolivia, Brazil, Canada, 
Chile, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El 
Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, 
Nicaragua, Panama, Paraguay, Peru, St. Kitts and Nevis, Saint Lucia, 
Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, the 
United States, Uruguay, and Venezuela.
    (f) Items/Commodities. Items requiring a license under this section 
are ECCNs 0A984 (shotguns with a barrel length 18 inches or over and 
related parts, and buckshot shotgun shells), 0A986 (shotgun shells, and 
related parts) and 0A987 (optical sighting devices). (See Supplement No. 
1 to Part 774 of the EAR.)
    (g) Validity period for licenses. Although licenses generally will 
be valid for a period of two years, your ability to ship items that 
require an Import Certificate or equivalent official document under this 
section may be affected by the validity of the Import Certificate or 
equivalent official document (see Sec.  748.14(f) of the EAR).

[64 FR 17973, Apr. 13, 1999]



Sec.  742.18  Chemical Weapons Convention (CWC or Convention).

    States that are parties to the Convention on the Prohibition of the 
Development, Production, Stockpiling and Use of Chemical Weapons and on 
Their Destruction, also known as the Chemical Weapons Convention (CWC or 
Convention), undertake never to develop, produce, acquire, stockpile, 
transfer, or use chemical weapons. As a State Party to the Convention, 
the United States is subjecting certain toxic chemicals and their 
precursors listed in Schedules within the Convention to trade 
restrictions. Trade restrictions include: a prohibition on the export of 
Schedule 1 chemicals to States not Party to the CWC; a prohibition on 
the reexport of Schedule 1 chemicals to all destinations (both States 
Parties to the CWC and States not Party to the CWC); license 
requirements for the export of Schedule 1 chemicals to all States 
Parties; a prohibition on the export of Schedule 2 chemicals to States 
not Party to the CWC; and an End-Use Certificate requirement for exports 
of Schedule 3

[[Page 310]]

chemicals to States not Party to the CWC. Exports of CWC chemicals that 
do not require a license for CW reasons (e.g., exports and reexports of 
Schedule 2 and Schedule 3 chemicals to States Parties to the CWC) may 
require a license for other reasons set forth in the EAR. (See, in 
particular, the license requirements in Sec.  742.2 of the EAR that 
apply to exports and reexports of precursor chemicals controlled by ECCN 
1C350, for CB reasons. Also note the end-use and end-user restrictions 
in part 744 of the EAR and the restrictions that apply to embargoed 
countries in part 746 of the EAR.)
    (a) License requirements. (1) Schedule 1 chemicals and mixtures 
controlled under ECCN 1C350 or ECCN 1C351. A license is required for CW 
reasons to export or reexport Schedule 1 chemicals and mixtures 
controlled under ECCN 1C350.a or Schedule 1 chemicals controlled under 
ECCN 1C351.d.5 or d.6 to all destinations including Canada. CW applies 
to 1C351.d.5 for ricin in the form of Ricinus Communis 
AgglutininII (RCAII), which is also known as ricin 
D or Ricinus Communis LectinIII (RCLIII), and 
Ricinus Communis LectinIV (RCLIV), which is also 
known as ricin E. CW applies to 1C351.d.6 for saxitoxin identified by 
C.A.S. 35523-89-8. (Note that the advance notification 
procedures and annual reporting requirements described in Sec.  745.1 of 
the EAR also apply to exports of Schedule 1 chemicals.)
    (2) Schedule 2 and 3 chemicals and mixtures controlled under ECCN 
1C350, ECCN 1C355, or ECCN 1C395. (i) States Parties to the CWC. Neither 
a license nor an End-Use Certificate is required for CW reasons to 
export or reexport Schedule 2 or 3 chemicals and mixtures controlled 
under ECCN 1C350, ECCN 1C355, or ECCN 1C395 to States Parties to the CWC 
(destinations listed in Supplement No. 2 to part 745 of the EAR).
    (ii) States not Party to the CWC. (A) Schedule 2 chemicals. A 
license is required for CW reasons to export or reexport Schedule 2 
chemicals and mixtures controlled under ECCN 1C350.b, ECCN 1C355.a, or 
ECCN 1C395 to States not Party to the CWC (destinations not listed in 
Supplement No. 2 to part 745 of the EAR).
    (B) Schedule 3 chemicals. (1) Exports. A license is required for CW 
reasons to export Schedule 3 chemicals and mixtures controlled under 
ECCN 1C350.c, ECCN 1C355.b, or ECCN 1C395.b to States not Party to the 
CWC (destinations not listed in Supplement No. 2 to Part 745 of the 
EAR), unless the exporter obtains from the consignee an End-Use 
Certificate (issued by the government of the importing country) prior to 
exporting the Schedule 3 chemicals and submits it to BIS in accordance 
with the procedures described in Sec.  745.2 of the EAR. Note, however, 
that obtaining an End-Use Certificate does not relieve the exporter from 
the responsibility of complying with other license requirements set 
forth elsewhere in the EAR.
    (2) Reexports. (i) Reexports from States Parties to the CWC. Neither 
a license nor an End-Use Certificate is required for CW reasons to 
reexport Schedule 3 chemicals and mixtures controlled under ECCN 
1C350.c, ECCN 1C355.b, or ECCN 1C395.b from States Parties to the CWC 
(destinations listed in Supplement No. 2 to part 745 of the EAR) to 
States not Party to the CWC. However, a license may be required for 
other reasons set forth elsewhere in the EAR. In addition, reexports of 
Schedule 3 chemicals may be subject to an End-Use Certificate 
requirement by governments of other countries when the chemicals are 
destined for States not Party to the CWC.
    (ii) Reexports from States not Party to the CWC. A license is 
required for CW reasons to reexport Schedule 3 chemicals and mixtures 
controlled under ECCN 1C350.c, ECCN 1C355.b, or ECCN 1C395.b from a 
State not Party to the CWC (a destination not listed in Supplement No. 2 
to part 745 of the EAR) to any other State not Party to the CWC.
    (C) Technology controlled under ECCN 1E355. A license is required 
for CW reasons to export or reexport technology controlled under ECCN 
1E355 to all States not Party to the CWC (destinations not listed in 
Supplement No. 2 to part 745 of the EAR), except for Israel and Taiwan.
    (b) Licensing policy. (1) Schedule 1 chemicals and mixtures. (i) 
Exports to States Parties to the CWC. Applications

[[Page 311]]

to export Schedule 1 chemicals and mixtures controlled under ECCN 
1C350.a or Schedule 1 chemicals controlled under ECCN 1C351.d.5 or d.6 
to States Parties to the CWC (destinations listed in Supplement No. 2 to 
part 745 of the EAR) generally will be denied, unless all of the 
following conditions are met:
    (A) The chemicals are destined only for purposes not prohibited 
under the CWC (i.e., research, medical, pharmaceutical, or protective 
purposes);
    (B) The types and quantities of chemicals are strictly limited to 
those that can be justified for those purposes;
    (C) The Schedule 1 chemicals were not previously imported into the 
United States (this does not apply to Schedule 1 chemicals imported into 
the United States prior to April 29, 1997, or imported into the United 
States directly from the same State Party to which they now are to be 
returned, i.e., exported); and
    (D) The aggregate amount of Schedule 1 chemicals in the country of 
destination at any given time is equal to or less than one metric ton 
and receipt of the proposed export will not cause the country of 
destination to acquire or to have acquired one metric ton or more of 
Schedule 1 chemicals in any calendar year.
    (ii) Exports to States not Party to the CWC. Applications to export 
Schedule 1 chemicals and mixtures controlled under ECCN 1C350.a or 
Schedule 1 chemicals controlled under ECCN 1C351.d.5 or d.6 to States 
not Party to the CWC (destinations not listed in Supplement No. 2 to 
part 745 of the EAR) generally will be denied, consistent with U.S. 
obligations under the CWC to prohibit exports of these chemicals to 
States not Party to the CWC.
    (iii) Reexports. Applications to reexport Schedule 1 chemicals and 
mixtures controlled under ECCN 1C350.a or Schedule 1 chemicals 
controlled under ECCN 1C351.d.5 or d.6 generally will be denied to all 
destinations (including both States Parties to the CWC and States not 
Party to the CWC).
    (2) Schedule 2 chemicals and mixtures. Applications to export or 
reexport Schedule 2 chemicals and mixtures controlled under ECCN 
1C350.b, ECCN 1C355.a, or ECCN 1C395 to States not Party to the CWC 
(destinations not listed in Supplement No. 2 to part 745 of the EAR) 
generally will be denied, consistent with U.S. obligations under the CWC 
to prohibit exports of these chemicals to States not Party to the CWC.
    (3) Schedule 3 chemicals and mixtures. (i) Exports. Applications to 
export Schedule 3 chemicals and mixtures controlled under ECCN 1C350.c, 
ECCN 1C355.b, or ECCN 1C395.b to States not Party to the CWC 
(destinations not listed in Supplement No. 2 to part 745 of the EAR) 
generally will be denied.
    (ii) Reexports from States not Party to the CWC. Applications to 
reexport Schedule 3 chemicals and mixtures controlled under ECCN 
1C350.c, ECCN 1C355.b, or ECCN 1C395.b from a State not Party to the CWC 
(a destination not listed in Supplement No. 2 to part 745 of the EAR) to 
any other State not Party to the CWC generally will be denied.
    (4) Technology controlled under ECCN 1E355. Exports and reexports of 
technology controlled under ECCN 1E355 will be reviewed on a case-by-
case basis.
    (c) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.

[67 FR 37982, May 31, 2002]



Sec.  742.19  Anti-terrorism: North Korea.

    (a) License requirements. (1) All items on the Commerce Control List 
(CCL) (i.e., with a designation other than EAR 99) require a license for 
export or reexport to North Korea, except ECCNs 0A988 and 0A989. This 
includes all items controlled for AT reasons, including any item on the 
CCL containing AT column 1 or AT column 2 in the Country Chart column of 
the License Requirements section of an ECCN; and ECCNS 0A986, 0A999, 
0B986, 0B999, 0D999, 1A999, 1B999, 1C995, 1C999, 1D999, 2A994, 2B994, 
2C994, 2A999, 2B999, 3A999, and 6A999.
    (2) The Secretary of State has designated North Korea as a country 
whose Government has repeatedly provided support for acts of 
international terrorism.

[[Page 312]]

    (3) In support of U.S. foreign policy on terrorism-supporting 
countries, BIS 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 paragraph (c)(6) through (c)(45) to all end-
users, are controlled to North Korea 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).)
    (b) Licensing policy. (1) Applications for export and reexport to 
all end-users in North Korea of the following items will generally be 
denied:
    (i) Items controlled for chemical and biological weapons 
proliferation reasons to any destination. These items 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) Items controlled for missile proliferation reasons to any 
destination. These items have an MT Column 1 in the Country Chart column 
of the ``License Requirements'' section of an ECCN on the CCL.
    (iii) Items controlled for nuclear weapons proliferation reasons to 
any destination. These items contain NP Column 1 or NP Column 2 in the 
Country Chart column of the ``License Requirements'' section of an ECCN 
on the CCL.
    (iv) Items controlled for national security reasons to any 
destination. These items contain NS Column 1 or NS Column 2 in the 
Country Chart column of the ``License Requirements'' section of an ECCN 
on the CCL.
    (v) Military-related items controlled for national security reasons 
to any destination. These items contain NS Column 1 in the Country Chart 
column of the ``License Requirements'' section in an ECCN on the CCL and 
are controlled by equipment or material entries ending in the number 
``18.''
    (vi) All aircraft (powered and unpowered), helicopters, engines, and 
related spare parts and components. Such items contain an NS Column 1, 
NS Column 2, MT Column 1, or AT Column 1 in the Country Chart column of 
the ``License Requirements'' section of an ECCN on the CCL.
    (vii) Cryptographic, cryptoanalytic, and crypto-logic items 
controlled 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.
    (viii) Submersible systems controlled under ECCN 8A992.
    (ix) Scuba gear and related equipment controlled under ECCN 8A992.
    (x) Pressurized aircraft breathing equipment controlled under ECCN 
9A991.
    (xi) Explosives detection equipment controlled under ECCN 2A983.
    (xii) ``Software'' (ECCN 2D983) specially designed or modified for 
the ``development'', ``production'' or ``use'' of explosives detection 
equipment controlled by 2A983.
    (xiii) ``Technology'' (ECCN 2E983) specially designed or modified 
for the ``development'', ``production'' or ``use'' of explosives 
detection equipment controlled by 2A983.
    (xiv) Commercial charges and devices controlled under ECCN 1C992.
    (xv) Computer numerically controlled machine tools controlled under 
ECCN 2B991.
    (xvi) Aircraft skin and spar milling machines controlled under ECCN 
2B991.
    (xvii) Semiconductor manufacturing equipment controlled under ECCN 
3B991.
    (xviii) Digital computers with a CTP above 2000.
    (xix) Microprocessors with a CTP of 550 or above.
    (xx) Ammonium nitrate, including certain fertilizers containing 
ammonium nitrate, controlled under ECCN 1C997.

[[Page 313]]

    (xxi) Technology for the production of Chemical Weapons Convention 
(CWC) Schedule 2 and 3 Chemicals controlled under ECCN 1E355.
    (2) Applications for export and reexport to North Korea 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) Applications for export and reexport to North Korea of items 
described in paragraphs (c)(12), (c)(24), (c)(34), (c)(37), (c)(38), and 
(c)(45) of Supplement No. 2 to part 742 will generally be denied if the 
export or reexport is destined to nuclear end-users or nuclear end-uses. 
Applications for non-nuclear end-users or for non-nuclear end-uses, 
excluding items described in (c)(24)(iv)(A) of Supplement No. 2 to part 
742, will be considered on a case-by-case basis.
    (4) License applications for items reviewed under section 6(a) 
controls will also be reviewed to determine the applicability of section 
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 North Korea, including its military logistics capability, 
or could enhance North Korea'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.

[65 FR 38151, June 19, 2000, as amended at 66 FR 36682, July 12, 2001; 
68 FR 16212, Apr. 3, 2003]

     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 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.)

[[Page 314]]

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 ECCNs 1C351, 1C352, 1C353, 1C354, and 2B352; and
    (iii) Technology (for the development, production, and use of 
equipment described in ECCNs 1C351, 1C352, 1C353, 1C354, 2B350, 2B351, 
and 2B352) described in ECCNs 2E001, 2E002, and 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.

[61 FR 12786, Mar. 25, 1996, as amended at 62 FR 25459, May 9, 1997]

   Supplement No. 2 to Part 742--Anti-Terrorism Controls: Iran, North 
   Korea, 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. BIS 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 
EAA section 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.
    (3) Items controlled for anti-terrorism reasons under section 6(a) 
to Iran, North Korea, 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)(44) of this Supplement; for North Korea, 
items in paragraph (c)(6) through (c)(45) of this Supplement; for Sudan, 
items in paragraphs (c)(6) through (c)(14), and (c)(16) through (c)(44) 
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)(44) of this Supplement.
    (c) The license requirements and licensing policies for items 
controlled for anti-terrorism reasons to Iran, Syria, Sudan, and North 
Korea are generally described in Sec. Sec.  742.8, 742.9, 742.10, and 
742.19 of this part, respectively. This Supplement provides guidance on 
licensing policies for Iran, North Korea, Syria, and Sudan and related 
contract sanctity dates that may be available for transactions 
benefitting from pre-existing contracts involving Iran, Syria, and 
Sudan. 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, 12959 and 13059 of 
March 15, 1995, May 6, 1995 and August 19,

[[Page 315]]

1997, 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)(42) 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)(42) 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 unless 
otherwise specified in paragraphs (c)(2) through (c)(42) of this 
Supplement. 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).
    (iv) North Korea. Applications for all end-users in North Korea of 
such equipment will generally be denied.
    (2) All items subject to chemical and biological weapons 
proliferation controls. Applications for all end-users in Iran, North 
Korea, 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, North Korea, 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 unless otherwise 
specified in paragraphs (c)(2) through (c)(42) of this Supplement. 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 unless otherwise specified in paragraphs (c)(2) through (c)(42) of 
this Supplement. No contract sanctity date is available.
    (iv) North Korea. Applications for all end-users in North Korea will 
generally be denied.
    (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 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).
    (iv) North Korea. Applications for all end-users in North Korea will 
generally be denied.
    (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.

[[Page 316]]

    (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 9A991.d: 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 ECCN 9A991.d: August 28, 1991.
    (iii) Sudan. Applications for all end-users in Sudan will generally 
be denied. Contract sanctity date: January 19, 1996.
    (iv) North Korea. Applications for all end-users in North Korea will 
generally be denied.
    (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.
    (iv) North Korea. Applications for military end-users or for 
military end-uses in North Korea will generally be denied. Applications 
for non-military end-users or for non-military end-uses in North Korea 
will be considered on a case-by-case basis.
    (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.
    (iv) North Korea. Applications for military end-users or for 
military end-uses in North Korea will generally be denied. Applications 
for non-military end-users or for non-military end-uses in North Korea 
will be considered on a case-by-case basis.
    (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.
    (iii) North Korea. Applications for military end-users or for 
military end-uses in North Korea will generally be denied. Applications 
for non-military end-users or for non-military end-uses in North Korea 
will be considered on a case-by-case basis.
    (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).
    (iv) North Korea. Applications for all end-users in North Korea of 
any such equipment will generally be denied.

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    (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.
    (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 of such equipment will generally be denied. 
Applications for non-military end-users or for non-military end-uses in 
Sudan of such equipment 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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses in North Korea of such equipment will generally be 
denied. Applications for non-military end-users or for non-military end-
uses in North Korea will be considered on a case-by-case basis.
    (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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses, or for nuclear end-users or nuclear end-uses, in 
North Korea of such equipment will generally be denied. Applications for 
non-military end-users or for non-military end-uses, or for non-nuclear 
end-users or non-nuclear end-uses, in North Korea will be considered on 
a case-by-case basis.
    (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 of such equipment 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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses in North Korea of such equipment will generally be 
denied. Applications for non-military end-users or for non-military end-
uses in North Korea will be considered on a case-by-case basis.

[[Page 318]]

    (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 (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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses in North Korea of such equipment of these items will 
generally be denied. Applications for non-military end-users or for non-
military end-uses in North Korea of such equipment will be considered on 
a case-by-case basis.
    (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) North Korea. Applications for military end-users or for 
military end-uses in North Korea of such equipment will generally be 
denied. Applications for non-military end-users or for non-military end-
uses in North Korea of such equipment will be considered on a case-by-
case basis.
    (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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses in North Korea of these items will generally be 
denied. Applications for non-military end-users or for non-military end-
uses in North Korea of these items will be considered on a case-by-case 
basis.
    (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

[[Page 319]]

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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses in North Korea of these items will generally be 
denied. Applications for non-military end-users or for non-military end-
uses in North Korea of these items will be considered on a case-by-case 
basis.
    (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).
    (iv) North Korea. Applications for all end-users in North Korea of 
such equipment will generally be denied.
    (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 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).
    (iv) North Korea. Applications for all end-users in North Korea of 
such equipment will generally be denied.
    (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.
    (iii) North Korea. Applications for all end-users in North Korea of 
such equipment will generally be denied.
    (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.
    (iii) North Korea. Applications for all end-users in North Korea of 
such equipment will generally be denied.
    (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.

[[Page 320]]

    (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).
    (iv) North Korea. Applications for all end-users in North Korea of 
such equipment will generally be denied.
    (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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses in North Korea 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.
    (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.
    (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).
    (iv) North Korea.
    (A) Computers with a CTP above 2000 MTOPS: Applications for all end-
users will generally be denied.
    (B) Computers with a CTP at or below 2000 MTOPS: Applications for 
military end-users or for military end-uses, or for nuclear end-users or 
nuclear end-uses, will generally be denied. Applications for non-
military end-users or for non-military end-uses, or for non-nuclear end-
users or non-nuclear end-uses, will be considered on a case-by-case 
basis.
    (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;

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    (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).
    (v) North Korea. Applications for military end-users or for military 
end-uses in North Korea 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.
    (26) Microprocessors.
    (i) Operating at a clock speed over 25 MHz.
    (A) Iran. Applications for all end-users in Iran of these items will 
generally be denied.
    (1) 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.
    (2) Contract sanctity dates for all other microprocessors for all 
end-users: August 28, 1991.
    (B) 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.
    (1) Contract sanctity date for microprocessors that were subject to 
national security controls on August 28, 1991: see paragraph (c)(1)(ii) 
of this Supplement.
    (2) Contract sanctity date for all other microprocessors: August 28, 
1991.
    (C) 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).
    (ii) With a CTP of 550 MTOPS or above.
    (A) North Korea. Applications for all end-users in North Korea of 
these items will generally be denied.
    (B) [Reserved]
    (27) Semiconductor manufacturing equipment. For Iran, Syria, Sudan, 
or North Korea 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 semiconductor manufacturing 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 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).

[[Page 322]]

    (iv) North Korea. Applications for all end-users in North Korea of 
such equipment will generally be denied.
    (28) Software specially designed for the computer-aided design
    (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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses in North Korea 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.
    (29) Packet switches. Equipment described in ECCN 5A991.c.
    (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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses in North Korea 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.
    (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 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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses in North Korea of such software will generally be 
denied. Applications for non-military end-users

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or for non-military end-uses will be considered on a case-by-case basis.
    (31) Gravity meters having static accuracy of less (better) than 100 
microgal, or gravity meters of the quartz element (worden) type.
    (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 
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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses in North Korea 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.
    (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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses in North Korea 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.
    (33) Fluorocarbon compounds described in ECCN 1C006.d 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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses in North Korea 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.

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    (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 ECCN 
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 ECCN 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 ECCN 1C210 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 high strength organic and 
inorganic fibers (kevlar) described in ECCN 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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses, or for nuclear end-users or nuclear end-uses, in 
North Korea of such equipment will generally be denied. Applications for 
non-military end-users or for non-military end-uses, or for non-nuclear 
end-users or non-nuclear end-uses, in North Korea will be considered on 
a case-by-case basis.
    (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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses in North Korea 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.
    (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).
    (iv) North Korea. Applications for all end-users in North Korea of 
such equipment will generally be denied.

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    (37) Manual dimensional inspection machines described in ECCN 2B996.
    (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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses, or for nuclear end-users or nuclear end-uses, in 
North Korea of such equipment will generally be denied. Applications for 
non-military end-users or for non-military end-uses, or for non-nuclear 
end-users or non-nuclear end-uses, in North Korea will be considered on 
a case-by-case basis.
    (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 were subject to national security controls on August 
28, 1991: see paragraphs (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).
    (iv) North Korea. Applications for military end-users or for 
military end-uses, or for nuclear end-users or nuclear end-uses, in 
North Korea of such equipment will generally be denied. Applications for 
non-military end-users or for non-military end-uses, or for non-nuclear 
end-users or non-nuclear end-uses, in North Korea will be considered on 
a case-by-case basis.
    (39) Explosives detection equipment described in ECCN 2A983.
    (i) Explosives detection equipment described in ECCN 2A983, 
controlled prior to April 3, 2003 under ECCN 2A993.
    (A) Iran. Applications for all end-users in Iran of these items will 
generally be denied. Contract sanctity date: January 19, 1996.
    (B) Syria. Applications for all end-users in Syria of these items 
will generally be denied. Contract sanctity date: January 19, 1996.
    (C) Sudan. Applications for all end-users in Sudan of these items 
will generally be denied. Contract sanctity date: January 19, 1996.
    (D) North Korea. Applications for all end-users in North Korea of 
these items will generally be denied.
    (ii) Explosives detection equipment described in ECCN 2A983, not 
controlled prior to date April 3, 2003 under ECCN 2A993.
    (A) Iran. Applications for all end-users in Iran of these items will 
generally be denied. Contract sanctity date for reexports by non-U.S. 
persons: March 21, 2003.
    (B) Syria. Applications for all end-users in Syria of these items 
will generally be denied. Contract sanctity date: March 21, 2003.
    (C) Sudan. Applications for all end-users in Sudan of these items 
will generally be denied. Contract sanctity date for reexports by non-
U.S. persons: March 21, 2003.
    (D) North Korea. Applications for all end-users in North Korea of 
these items will generally be denied. Contract sanctity date: March 21, 
2003.
    (40) ``Software'' described in ECCN 2D983 specially designed or 
modified for the ``development'', ``production'' or ``use'' of 
explosives detection equipment.
    (i) Iran. Applications for all end-users in Iran of these items will 
generally be denied.

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Contract sanctity date for reexports by non-U.S. persons: March 21, 
2003.
    (ii) Syria. Applications for all end-users in Syria of these items 
will generally be denied. Contract sanctity date: March 21, 2003.
    (iii) Sudan. Applications for all end-users in Sudan of these items 
will generally be denied. Contract sanctity date for reexports by non-
U.S. persons: March 21, 2003.
    (iv) North Korea. Applications for all end-users in North Korea of 
these items will generally be denied. Contract sanctity date: March 21, 
2003.
    (41) ``Technology'' described in ECCN 2E983 specially designed or 
modified for the ``development'', ``production'' or ``use'' of 
explosives detection equipment.
    (i) Iran. Applications for all end-users in Iran of these items will 
generally be denied. Contract sanctity date for reexports by non-U.S. 
persons: March 21, 2003.
    (ii) Syria. Applications for all end-users in Syria of these items 
will generally be denied. Contract sanctity date: March 21, 2003.
    (iii) Sudan. Applications for all end-users in Sudan of these items 
will generally be denied. Contract sanctity date for reexports by non-
U.S. persons: March 21, 2003.
    (iv) North Korea. Applications for all end-users in North Korea of 
these items will generally be denied. Contract sanctity date: March 21, 
2003.
    (42) Production technology controlled under ECCN 1C355 on the CCL.
    (i) Iran. Applications for all end-users in Iran of these items will 
generally be denied.
    (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.
    (iii) Sudan. Applications for all end-users in Sudan of these items 
will generally be denied.
    (iv) North Korea. Applications for military end-users or for 
military end-uses in North Korea 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.
    (43) Commercial Charges and devices controlled under ECCN 1C992 on 
the CCL.
    (i) Iran. Applications for all end-users in Iran of these items will 
generally be denied.
    (ii) Syria. Applications for all end-users in Syria of these items 
will generally be denied.
    (iii) Sudan. Applications for all end-users in Sudan of these items 
will generally be denied.
    (iv) North Korea. Applications for all end-users in North Korea of 
these items will generally be denied.
    (44) Ammonium nitrate, including certain fertilizers containing 
ammonium nitrate, under ECCN 1C997 on the CCL.
    (i) Iran. Applications for all end-users in Iran of these items will 
generally be denied.
    (ii) Syria. Applications for all end-users in Syria of these items 
will generally be denied. Contract sanctity date: June 15, 2001.
    (iii) Sudan. Applications for all end-users in Sudan of these items 
will generally be denied.
    (iv) North Korea. Applications for all end-users in North Korea of 
these items will generally be denied. Contract sanctity date: June 15, 
2001.
    (45) Specific processing equipment, materials and software 
controlled under ECCNs 0A999, 0B999, 0D999, 1A999, 1C999, 1D999, 2A999, 
2B999, 3A999, and 6A999 on the CCL.
    (i) North Korea. Applications for military end-users or for military 
end-uses, or for nuclear end-users or nuclear end-uses, in North Korea 
of such equipment will generally be denied. Applications for non-
military end-users or for non-military end-uses, or for non-nuclear end-
users or non-nuclear end-uses, in North Korea will be considered on a 
case-by-case basis.
    (ii) [Reserved]

[65 FR 38152, June 19, 2000, as amended at 66 FR 36682, July 12, 2001; 
68 FR 16212, Apr. 3, 2003]

  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 BIS 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 Industry and Security (BIS) 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 BIS as a 
condition of issuing the license. BIS 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).

[[Page 327]]

    (2) There will be no reexport or intra-country transfer of the 
computer without prior written authorization from BIS.
    (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 BIS.
    (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;
    (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 BIS, 
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.

[[Page 328]]

    (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 BIS.
    (22) Generally, remote terminals will not be allowed outside the 
computer using facility without prior authorization by BIS. If 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 BIS. 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.

[[Page 329]]

    (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:
    (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 BIS. 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

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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 Recoverable Feature

    (1) The key(s) or other material/information required to decrypt 
ciphertext shall be accessible through a key recoverable 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 frequency of at least once every three 
hours, 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 recoverable 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 recoverable 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).

                        Interoperability Feature

    (6) The product's cryptographic functions may:
    (i) Interoperate with other key recoverable products that meet these 
criteria, and shall not interoperate with products whose key recovery 
feature has been altered, bypassed, disabled, or otherwise rendered 
inoperative;
    (ii) Send information to non-key recoverable products only when 
assured access is permitted to the key(s) or other material/information 
needed to decrypt ciphertext generated by the key recoverable product. 
Otherwise, key length is restricted to less than or equal to 56-bit DES 
or equivalent.
    (iii) Receive information from non-key recoverable products with a 
key length restricted to less than or equal to 56-bit DES or equivalent.

            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 accessible to 
government officials under proper legal authority.

[63 FR 50523, Sept. 22, 1998, as amended at 63 FR 72164, Dec. 31, 1998]

    Supplement No. 5 to Part 742--Checklist on Encryption and Other 
                   ``Information Security'' Functions

    1. Does your product perform ``cryptography'', or otherwise contain 
any parts or components that are capable of performing any of the 
following ``information security'' functions?
    (Mark with an ``X'' all that apply)
a. ---- encryption
b. ---- decryption only (no encryption)
c. ---- key management/public key infrastructure (PKI)
d. ---- authentication (e.g., password protection, digital signatures)
e. ---- copy protection
f. ---- anti-virus protection
g. ---- other (please
    explain) :--------------------
h. ---- NONE/NOT APPLICABLE
    2. For items with encryption, decryption and/or key management 
functions (1.a, 1.b, 1.c above):
    a. What symmetric algorithms and key lengths (e.g., 56-bit DES, 112/
168-bit Triple-DES, 128/256-bit AES/Rijndael) are implemented or 
supported?
    b. What asymmetric algorithms and key lengths (e.g., 512-bit RSA/
Diffie-Hellman, 1024/2048-bit RSA/Diffie-Hellman) are implemented or 
supported?
    c. What encryption protocols (e.g., SSL, SSH, IPSEC or PKCS 
standards) are implemented or supported?
    d. What type of data is encrypted?
    3. For products that contain an ``encryption component'', can this

[[Page 331]]

encryption component be easily used by another product, or else 
accessed/re-transferred by the end-user for cryptographic use?

[68 FR 35785, June 17, 2003]

Supplement No. 6 to Part 742--Guidelines for Submitting Review Requests 
                          for Encryption Items

    Review requests for encryption items must be submitted on Form BIS-
748P (Multipurpose Application), or its electronic equivalent, and 
supported by the documentation described in this Supplement, in 
accordance with the procedures described in Sec.  748.3 of the EAR. To 
ensure that your review request is properly routed, insert the phrase 
``Mass market encryption'' or ``License Exception ENC'' (whichever is 
applicable) in Block 9 (Special Purpose) of the application form and 
place an ``X'' in the box marked ``Classification Request'' in Block 5 
(Type of Application)--Block 5 does not provide a separate item to check 
for the submission of encryption review requests. Failure to properly 
complete these items may delay consideration of your review request. BIS 
recommends that review requests be delivered via courier service to: 
Bureau of Industry and Security, U.S. Department of Commerce, 14th 
Street and Pennsylvania Ave., NW., Room 2705, Washington, DC 20230. For 
electronic submissions via SNAP, you may fax a copy of the support 
documents to BIS at (202) 219-9179 or -9182 or you may deliver the 
documents via courier service to: Bureau of Industry and Security, 
Information Technology Controls Division, Room 2625, 14th Street and 
Pennsylvania Ave., NW. Washington, DC 20230. In addition, you must send 
a copy of your review request and all support documents to: Attn: ENC 
Encryption Request Coordinator, 9800 Savage Road, Suite 6131, Fort 
Meade, MD 20755-6000. For all review requests of encryption items, you 
must provide brochures or other documentation or specifications related 
to the technology, commodity or software, relevant product descriptions, 
architecture specifications, and as necessary for the review, source 
code. You also must indicate whether there have been any prior reviews 
of the product, if such reviews are applicable to the current 
submission. In addition, you must provide the following information in a 
cover letter accompanying your review request:
    (a) State the name of the encryption item being submitted for 
review;
    (b) State that a duplicate copy has been sent to the ENC Encryption 
Request Coordinator;
    (c) For review requests for a commodity or software, provide the 
following information:
    (1) Description of all the symmetric and asymmetric encryption 
algorithms and key lengths and how the algorithms are used. Specify 
which encryption modes are supported (e.g., cipher feedback mode or 
cipher block chaining mode).
    (2) State the key management algorithms, including modulus sizes, 
that are supported.
    (3) For products with proprietary algorithms, include a textual 
description and the source code of the algorithm.
    (4) Describe the pre-processing methods (e.g., data compression or 
data interleaving) that are applied to the plaintext data prior to 
encryption.
    (5) Describe the post-processing methods (e.g., packetization, 
encapsulation) that are applied to the cipher text data after 
encryption.
    (6) State the communication protocols (e.g., X.25, Telnet or TCP) 
and encryption protocols (e.g., SSL, IPSEC or PKCS standards) that are 
supported.
    (7) Describe the encryption-related Application Programming 
Interfaces (APIs) that are implemented and/or supported. Explain which 
interfaces are for internal (private) and/or external (public) use.
    (8) Describe whether the cryptographic routines are statically or 
dynamically linked, and the routines (if any) that are provided by 
third-party modules or libraries. Identify the third-party manufacturers 
of the modules or toolkits.
    (9) For commodities or software using Java byte code, describe the 
techniques (including obfuscation, private access modifiers or final 
classes) that are used to protect against decompilation and misuse.
    (10) State how the product is written to preclude user modification 
of the encryption algorithms, key management and key space.
    (11) For products that qualify as ``retail'', explain how the 
product meets the listed criteria in Sec.  740.17(b)(3) of the EAR.
    (12) For products which incorporate an open cryptographic interface 
as defined in part 772 of the EAR, describe the Open Cryptographic 
Interface.
    (d) For review requests regarding components, provide the following 
additional information:
    (1) Reference the application for which the components are used in, 
if known;
    (2) State if there is a general programming interface to the 
component;
    (3) State whether the component is constrained by function; and
    (4) Identify the encryption component and include the name of the 
manufacturer, component model number or other identifier.
    (e) For review requests for source code, provide the following 
information:
    (1) If applicable, reference the executable (object code) product 
that was previously reviewed;
    (2) Include whether the source code has been modified, and the 
technical details on how the source code was modified; and

[[Page 332]]

    (3) Include a copy of the sections of the source code that contain 
the encryption algorithm, key management routines and their related 
calls.
    (f) For step-by-step instructions and guidance on submitting review 
requests for encryption items, visit our webpage at www.bis.doc.gov/
Encryption and click on the navigation button labeled ``Guidance''.

[67 FR 38868, June 6, 2002]

                 Supplement No. 7 to Part 742 [Reserved]



PART 743_SPECIAL REPORTING--Table of Contents




Sec.
743.1 Wassenaar Arrangement.
743.2 [Reserved]

Supplement No. 1 to Part 743-- Wassenaar Arrangement Member Countries

    Authority: 50 U.S.C. app. 2401 et seq; Pub.L. 106-508; 50 U.S.C. 
1701 et seq; E.O. 13206, 66 FR 18397, April 9, 2001.

    Source: 63 FR 2458, Jan. 15, 1998, unless otherwise noted.



Sec.  743.1  Wassenaar Arrangement.

    (a) Scope. This section outlines special reporting requirements for 
exports of certain commodities, software and technology controlled under 
the Wassenaar Arrangement. Such reports must be submitted to BIS 
semiannually in accordance with the provisions of paragraph (f) of this 
section, and records of all exports subject to the reporting 
requirements of this section must be kept in accordance with part 762 of 
the EAR. This section does not require reports for reexports.
    Note to paragraph (a) of this section:
    For purposes of part 743, the term ``you'' has the same meaning as 
the term ``exporter'', as defined in part 772 of the EAR.
    (b) Requirements. You must submit two (2) copies of each report 
required under the provisions of this section and maintain accurate 
supporting records (see Sec.  762.2(b) of the EAR) for all exports of 
items specified in paragraph (c) of this section for the following:
    (1) Exports authorized under License Exceptions GBS, CIV, TSR, LVS, 
CTP, and the cooperating government portions (Sec. Sec.  
740.11(b)(2)(iii) and 740.11(b)(2)(iv) of the EAR) of GOV (see part 740 
of the EAR). Note that exports of technology and source code under 
License Exception TSR to foreign nationals located in the U.S. should 
not be reported; and
    (2) Exports authorized under the Special Comprehensive License 
procedure (see part 752 of the EAR).
    (c) Items for which reports are required. (1) You must submit 
reports to BIS under the provisions of this section only for exports of 
items controlled under the following ECCNs:
    (i) Category 1: 1A002; 1C007.c and .d; 1C010.c and .d; 1D002 for 
``development'' of 1A002, 1C007.c and .d, and 1C010.c and .d; 1E001 for 
``development'' and ``production'' of 1A002, 1C007.c and .d, and 1C010.c 
and .d ; 1E002.e and .f;
    (ii) Category 2: 2D001 (certain items only; see Note to this 
paragraph), 2E001 (certain items only; see Note to this paragraph), and 
2E002 (certain items only; see Note to this paragraph);
    Note to paragraph (c)(1)(ii): Reports for 2D001, for ``software'', 
other than that controlled by 2D002, specially designed for the 
``development'' or ``production'' of the equipment in 2B003 or 2B001.a 
or .b (changing 6 [mu]m to 5.1 [mu]m in 2B001.a.1 and 2B001.b.1.a; and 
adding ``a positioning accuracy with ``all compensations available'' 
equal to or less (better) than 5.1 [mu]m along any linear axis'' to the 
existing text for 2B001.b.2) of the Commerce Control List (CCL).
    Reports for 2E001, are for ``technology'' according to the General 
Technology Note for ``development'' of ``software'' as described in this 
paragraph for 2D001, or for the equipment in 2B003 or 2B001.a or .b 
(changing 6[mu]m to 5.1[mu]m in 2B001.a.1 and 2B001.b.1.a; and adding 
``a positioning accuracy with ``all compensations available'' equal to 
or less (better) than 5.1 [mu]m along any linear axis'' to the existing 
text for 2B001.b.2) of the CCL.
    Reports for 2E002, are for ``technology'' according to the General 
Technology Note for ``production'' of the equipment in 2B003 or 2B001.a 
or .b (changing 6 [mu]m to 5.1 [mu]m in 2B001.a.1 and 2B001.b.1.a; and 
adding ``a positioning accuracy with ``all compensations available'' 
equal to or less (better) than 5.1 [mu]m along any linear axis'' to the 
existing text for 2B001.b.2) of the CCL.

    (iii) Category 3: 3A002.g.2, 3B001.a.2, 3D001 for ``development'' or 
``production'' of 3A002.g.2 or 3B001.a.2, and 3E001 for ``development'' 
or ``production'' of 3A002.g.2 or 3B001.a.2;
    (iv) Category 4: 4A001.a.2; 4D001 (see paragraph (c)(2) of this 
section); and 4E001 (see paragraph (c)(2) of this section);
    (v) Category 5: 5A001.b.3 or b.5; 5B001.a (items specially designed 
for 5A001.b.3

[[Page 333]]

or b.5); 5D001.a (specially designed for the ``development'' or 
``production'' of equipment, function, or features in 5A001.b.3 or b.5) 
and 5D001.b (specially designed or modified to support ``technology'' 
under 5E001.a); and 5E001.a (for the ``development'' or ``production'' 
of equipment, function, features, or ``software'' in 5A001.b.3 or b.5, 
5B001.a, 5D001.a and .b);
    (vi) Category 6: 6A001.a.1.b (changing 10 kHz to 5 kHz and adding 
the text ``or a sound pressure level exceeding 224 dB (reference 1 
[mu]Pa at 1 m) for equipment with an operating frequency in the band 
from 5kHz to 10 kHz inclusive'' to the existing text in 6A001.a.1.b.1) , 
and .a.2.d; 6A002.b; 6A004.c and d; 6A006.g (excluding compensators 
which provide only absolute values of the earth's magnetic field as 
output (i.e., the frequency bandwidth of the output extends from DC to 
at least 0.8 Hz) and h; 6A008.d, .h, and .k; 6D001 (for 6A004.c and .d 
and 6A008.d, .h, and .k); 6D003.a; 6E001 (for equipment and software 
listed in this paragraph); and 6E002 (for equipment listed in this 
paragraph);
    (vii) Category 8: 8A001.c; 8A002.b (for 8A001.c), .h, .j, .o.3, and 
.p; 8D001 (for commodities listed in this paragraph); 8D002; 8E001 (for 
commodities listed in this paragraph); and 8E002.a; and
    (viii) Category 9: 9B001.b.
    (2) Reports for ``software'' controlled by 4D001(that is specially 
designed), and ``technology'' controlled by 4E001 (according to the 
General Technology Note in Supplement No. 2 to part 774 of the EAR) are 
required for the ``development'' or ``production'' of computers 
controlled under 4A001.a.2, or for the ``development'' or ``production'' 
of ``digital computers'' having a CTP exceeding 75,000 MTOPS. For the 
calculation of CTP, see the Technical Note for Category 4 in the 
Commerce Control List (Supplement No. 2 to part 774 of the EAR).
    (d) Country Exceptions. You must report each export subject to the 
provisions of this section, except for exports to Wassenaar member 
countries, as identified in Supplement No. 1 to part 743.
    (e) Information that must be included in each report. (1) Each 
report submitted to BIS for items other than those identified in 
paragraph (e)(2) of this section must include the following information 
for each export during the time periods specified in paragraph (f) of 
this section:
    (i) Export Control Classification Number and paragraph reference as 
identified on the Commerce Control List;
    (ii) Number of units in the shipment; and

    Note to paragraph (e)(1)(ii):
    For exports of technology for which reports are required under Sec.  
743.1(c) of this section, the number of units in the shipment should be 
reported as one (1) for the initial export of the technology to a single 
ultimate consignee. Additional exports of the technology must be 
reported only when the type or scope of technology changes or exports 
are made to other ultimate consignees. Additionally, do not report the 
release of technology or source code subject to the EAR to foreign 
nationals in the U.S.
    (iii) Country of ultimate destination.
    (2) [Reserved]
    (f) Frequency and timing of reports. You must submit reports subject 
to the provisions of this section semiannually. The reports must be 
labeled with the exporting company's name and address at the top of each 
page and must include for each such export all the information specified 
in paragraph (e) of this section. The reports shall cover exports made 
during six month time periods spanning from January 1 through June 30 
and July 1 through December 31.
    (1) The first report must be submitted to and received by BIS no 
later than August 1, 1998 for the partial reporting period beginning 
January 15, 1998 and ending June 30, 1998. Thereafter, reports are due 
according to the provisions of paragraphs (f)(2) and (f)(3) of this 
section.
    (2) Reports for the reporting period ending June 30 must be 
submitted to and received by BIS no later than August 1.
    (3) Reports for the reporting period ending December 31 must be 
submitted to and received by BIS no later than February 1.
    (g) Mailing address and facsimile number: (1) Two (2) copies of 
reports required under this section shall be delivered to one of the 
following addresses. BIS will not accept reports sent C.O.D.

[[Page 334]]

    (i) For deliveries by U.S. postal service:

Bureau of Industry and Security, U.S. Department of Commerce, P.O. Box 
273, Attn: ``Wassenaar Reports'', Washington, D.C. 20044

    (ii) For courier deliveries:

Bureau of Industry and Security, U.S. Department of Commerce, Attn: 
``Wassenaar Reports'', Room 2705, 14th Street and Pennsylvania Ave., 
N.W., Washington, D.C. 20230

    (2) Reports may also be sent by facsimile to: (202) 482-3345, Attn: 
``Wassenaar Reports''.
    (h) Contacts. General information concerning the Wassenaar 
Arrangement and reporting obligations thereof is available from the 
Office of Strategic Trade and Foreign Policy Controls, Tel. (202) 482-
0092, Fax: (202) 482-4094.

[63 FR 2458, Jan. 15, 1998, as amended at 63 FR 55020, Oct. 14, 1998; 63 
FR 72165, Dec. 31, 1998; 64 FR 3214, Jan. 21, 1999; 64 FR 40110, July 
23, 1999; 64 FR 47105, Aug. 30, 1999; 65 FR 12922, Mar. 10, 2000; 65 FR 
34075, May 26, 2000; 65 FR 42568, July 10, 2000; 65 FR 60856, Oct. 13, 
2000; 66 FR 461, Jan. 3, 2002; 67 FR 10615, 10610, Mar. 8, 2002; 68 FR 
10591, Mar. 5, 2003; 68 FR 68980, Dec. 10, 2003]



Sec.  743.2  [Reserved]

  Supplement No. 1 to Part 743--Wassenaar Arrangement Member Countries

Argentina
Australia
Austria
Belgium
Bulgaria
Canada
Czech Republic
Denmark
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Japan
Luxembourg
Netherlands
New Zealand
Norway
Poland
Portugal
Romania
Russia
Slovakia
South Korea
Spain
Sweden
Switzerland
Turkey
Ukraine
United Kingdom
United States

[63 FR 55020, Oct. 14, 1998]



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.
744.10 Restrictions on certain entities in Russia.
744.11 [Reserved]
744.12 Restrictions on exports and reexports to persons designated in or 
          pursuant to Executive Order 13224 (Specially Designated Global 
          Terrorist) (SDGT).
744.13 Restrictions on exports and reexports to persons designated 
          pursuant to Executive Order 12947 (Specially Designated 
          Terrorist) (SDT).
744.14 Restrictions on exports and reexports to designated Foreign 
          Terrorist Organizations (FTOs).
744.15 Restrictions on exports and reexports to persons named in General 
          Orders.
744.16 Restrictions on exports and reexports by U.S. persons to 
          specially designated persons on the list of Specially 
          Designated Nationals identified by the bracketed suffix 
          initials [FRYM].
744.17 Restrictions on certain exports and reexports of general purpose 
          microprocessors for ``military end-uses'' and to ``military 
          end-users.''

Supplement No. 1 to Part 744--Military End-Use Examples for Sec.  744.17
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)
Supplement No. 4 to Part 744--Entity List


[[Page 335]]


    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; Sec. 901-911, Pub. L. 106-387; 
Sec. 221, Pub. L. 107-56; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 
179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 
FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 12947, 60 FR 5079, 3 CFR, 1995 
Comp., p. 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 
13099, 63 FR 45167, 3 CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 44025, 
3 CFR 2001 Comp., p. 783; E.O. 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 
786; Notice of November 9, 2001, 66 FR 56965, 3 CFR, 2001 Comp., p. 917; 
Notice of August 7, 2003, 66 FR 47833, August 11, 2003.

    Source: 61 FR 12802, Mar. 25, 1996, unless otherwise noted.



Sec.  744.1  General provisions.

    (a)(1) 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 
Five (End-use/End-users) and Nine (Orders, Terms, and Conditions), 
unless authorized by BIS. 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 activities 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. 
Section 744.9 prohibits U.S. persons from providing technical assistance 
to certain foreign persons seeking to develop or manufacture certain 
encryption commodities or software. Section 744.10 prohibits exports and 
reexports of any item subject to the EAR to Russian entities, included 
in Supplement No. 4 of this part. Sections 744.12, 744.13 and 744.14 
prohibit exports and reexports of any item subject to the EAR to persons 
designated as Specially Designated Global Terrorists, Specially 
Designated Terrorists, or Foreign Terrorist Organizations, respectively. 
Section 744.15 describes restrictions on exports and reexports to 
persons named in general orders. Section 744.16 prohibits exports and 
reexports by U.S. persons of items subject to the EAR to persons 
designated pursuant to Executive Order 13088, as amended by Executive 
Order 13192, including Slobodan Milosevic, his close associates, and 
persons determined to be under open indictment by the International 
Criminal Tribunal for the former Yugoslavia. 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.
    (2) If controls set forth under more than one section of part 744 
apply to a person, the license requirements for such a person will be 
determined based on the requirements of all applicable sections of part 
744, and license applications will be reviewed under all applicable 
licensing policies.
    (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.
    (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.
    (c) A list of entities is included in Supplement No. 4 to this part 
744 of the EAR (Entity List). Exporters are hereby informed that these 
entities are ineligible to receive any items subject to the EAR without 
a license to the extent specified in the supplement. No License 
Exceptions are available for exports or reexports to listed entities of 
specified items, except License Exceptions for items listed in Sec.  
740.2(a)(5) of the EAR destined to listed Indian or Pakistani entities 
intended to ensure

[[Page 336]]

the safety of civil aviation and safe operation of commercial passenger 
aircraft.

[61 FR 12802, Mar. 25, 1996, as amended at 62 FR 51370, Oct. 1, 1997; 63 
FR 64324, Nov. 19, 1998; 66 FR 50091, Oct. 1, 2001; 68 FR 34194, June 6, 
2003]



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 Sec. Sec.  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 
BIS. BIS 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 BIS 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 by a written

[[Page 337]]

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.  740.13(a) and 
(b)), but only to and for use in countries listed in Supplement No. 3 to 
Part 744 of the EAR (Countries Not Subject to Certain Nuclear End-Use 
Restrictions in Sec.  744.2(a)). Notwithstanding the provisions of Part 
740 of the EAR, the provisions of Sec.  740.13(a) and (b) will only 
overcome General Prohibition Five for countries listed in Supplement No. 
3 to Part 744 of the EAR.
    (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; 62 
FR 25459, May 9, 1997; 67 FR 55598, Aug. 29, 2002]



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 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 338]]

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 BIS. BIS 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.

[61 FR 12802, Mar. 25, 1996, as amended at 62 FR 25459, May 9, 1997]



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 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 BIS. BIS 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 339]]

    (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.

[61 FR 12802, Mar. 25, 1996, as amended at 62 FR 25459, May 9, 1997]



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 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.

[61 FR 12802, Mar. 25, 1996, as amended at 62 FR 25459, May 9, 1997]



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 BIS, export, reexport, or transfer to or in any country any 
item where that person knows that such items:
    (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 BIS, 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

[[Page 340]]

transfer without being the actual exporter or reexporter.
    (2) Other activities unrelated to exports. No U.S. person shall, 
without a license from BIS:
    (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 BIS, 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 BIS. BIS 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 nuclear explosive devices, chemical 
or biological weapons, or of missiles.

[61 FR 12802, Mar. 25, 1996, as amended at 62 FR 25459, May 9, 1997]



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 Country Group D:1 (excluding 
the PRC and Romania), (see Supplement No. 1 to part 740) provided

[[Page 341]]

that such commodities are 6 all of the following:
---------------------------------------------------------------------------

    \6\ Where a license is required, see Sec. Sec.  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, 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) 
or Automated Export System (AES) record is filed in accordance with the 
requirements of the Foreign Trade Statistics Regulations (15 CFR part 
30), except that an SED or AES record is not required when any of the 
commodities, other than fuel, is exported by U.S. airlines to their own 
aircraft abroad for their own 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 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, 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) 
or Automated Export System (AES) record is filed in accordance with the 
requirements of the Foreign Trade Statistics Regulations (15 CFR part 
30), except that an SED or AES record 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.

[61 FR 12802, Mar. 25, 1996, as amended at 65 FR 38160, June 19, 2000; 
68 FR 50472, Aug. 21, 2003]



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, 6A998, 7A001, 
7A002, 7A003, 7A004, 7A006, 7A101,

[[Page 342]]

7A102, 7A103, 7A104, 7A994, 9A001, 9A003, 9A018.a, 9A101, and 9A991.

[61 FR 12802, Mar. 25, 1996, as amended at 63 FR 42229, Aug. 7, 1998]



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 authorization 
from BIS, 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. Technical assistance may be exported 
immediately to nationals of the countries listed in Supplement 3 to part 
740 of the EAR (except for technical assistance to government end-users 
for cryptanalytic items) provided the exporter has submitted to BIS a 
completed classification request by the time of export. Note that this 
prohibition does 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 or in the work of groups or bodies engaged in standards 
development, 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, as amended at 65 FR 62609, Oct. 19, 2000]



Sec.  744.10  Restrictions on certain entities in Russia.

    (a) General prohibition. Certain entities in Russia are included in 
Supplement No. 4 to this part 744 (Entity List). (See also Sec.  
744.1(c) of the EAR.) Exporters are hereby informed that these entities 
are ineligible to receive any items subject to the EAR without a 
license.
    (b) Exceptions. No License Exceptions apply to the prohibition 
described in paragraph (a) of this section.
    (c) License review standards. Applications to export or reexport 
items subject to the EAR to these entities will be reviewed with a 
presumption of denial.

[64 FR 14605, Mar. 26, 1999]



Sec.  744.11  [Reserved]



Sec.  744.12  Restrictions on exports and reexports to persons designated 

in or pursuant to Executive Order 13224 (Specially Designated Global 
Terrorist) (SDGT).

    BIS maintains restrictions on exports and reexports to persons 
designated in or pursuant to Executive Order 13224 of September 23, 2001 
(Blocking Property and Prohibiting Transactions with Persons Who Commit, 
Threaten to Commit, or Support Terrorism). These persons include 
individuals and entities listed in the Annex to Executive Order 13224, 
as well as persons subsequently designated by the Secretary of State or 
Secretary of the Treasury pursuant to criteria set forth in the Order. 
Pursuant to Executive Order 13224, the Department of the Treasury's 
Office of Foreign Assets Control (OFAC) maintains 31 CFR part 594, the 
Global Terrorism Sanctions Regulations. OFAC announces the names of 
persons designated pursuant to Executive Order 13224 in the Federal 
Register and includes such persons in Appendix A to 31 CFR Chapter V, 
which lists persons subject to various sanctions programs administered 
by OFAC. The Department of State also announces the names of foreign

[[Page 343]]

persons designated pursuant to Executive Order 13224 in the Federal 
Register. All persons designated in or pursuant to Executive Order 13224 
are identified in Appendix A to 31 CFR Chapter V by the bracketed 
initials [SDGT] and are also known as Specially Designated Global 
Terrorists (SDGTs).
    (a) License requirement(s). (1) A license requirement applies to the 
export or reexport to an SDGT of any item subject to the EAR.
    (2) To avoid duplication, U.S. persons are not required to seek 
separate authorization for an export or reexport to an SDGT of an item 
subject to both the EAR and OFAC's regulatory authority pursuant to 
Executive Order 13224. Therefore, if OFAC authorizes an export from the 
United States or an export or reexport by a U.S. person to an SDGT, no 
separate authorization from BIS is necessary.
    (3) U.S. persons must seek authorization from BIS for the export or 
reexport to an SDGT of any item subject to the EAR that is not subject 
to OFAC's Global Terrorism Sanctions Regulations in 31 CFR part 594.
    (4) Non-U.S. persons must seek authorization from BIS for any export 
from abroad or reexport to an SDGT of any item subject to the EAR.
    (5) Any export or reexport to an SDGT of any item subject to both 
the EAR and OFAC's regulatory authority pursuant to Executive Order 
13224 and not authorized by OFAC is a violation of the EAR.
    (6) Any export or reexport by a U.S. person to an SDGT of any item 
subject to the EAR that is not subject to regulation by OFAC and not 
authorized by BIS is a violation of the EAR. Any export from abroad or 
reexport by a non-U.S. person to an SDGT of any item subject to the EAR 
and not authorized by BIS is a violation of the EAR.
    (7) These licensing requirements supplement any other requirements 
set forth elsewhere in the EAR.
    (b) Exceptions. No License Exceptions or other BIS authorization are 
available for any export or reexport to an SDGT of any item subject to 
the EAR.
    (c) Licensing policy. Applications for licenses for the export or 
reexport to an SDGT of any item subject to the EAR generally will be 
denied. You should consult with OFAC concerning transactions subject to 
OFAC licensing requirements.
    (d) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.
    Note to Sec.  744.12: This section does not implement, construe, or 
limit the scope of any criminal statute, including (but not limited to) 
18 U.S.C. 2339B(a)(1) and 2339A, and does not excuse any person from 
complying with any criminal statute, including (but not limited to) 18 
U.S.C. 2339B(a)(1) and 18 U.S.C. 2339A.

[68 FR 34194, June 6, 2003]



Sec.  744.13  Restrictions on exports and reexports to persons designated 
pursuant to Executive Order 12947 (Specially Designated Terrorist) (SDT).

    Consistent with the purpose of Executive Order 12947 of January 23, 
1995, BIS maintains restrictions on exports and reexports to Specially 
Designated Terrorists (SDTs). Executive Order 12947 prohibits 
transactions by U.S. persons with terrorists who threaten to disrupt the 
Middle East peace process. Pursuant to the Executive Order, the 
Department of the Treasury, Office of Foreign Assets Control (OFAC), 
maintains 31 CFR part 595, the Terrorism Sanctions Regulations. In 
Appendix A to 31 CFR Chapter V, pursuant to 31 CFR part 595, these 
Specially Designated Terrorists are identified by the bracketed suffix 
initials [SDT]. The requirements set forth below further the objectives 
of Executive Order 12947.
    (a) License requirement(s). (1) A license requirement applies to the 
export or reexport to an SDT of any item subject to the EAR.
    (2) To avoid duplication, U.S. persons are not required to seek 
separate authorization for an export or reexport to an SDT of an item 
subject both to the EAR and to OFAC's Terrorism Sanctions Regulations in 
31 CFR part 595. Therefore, if OFAC authorizes an export or reexport of 
an item by a U.S. person to a SDT, no separate authorization from BIS is 
necessary.
    (3) U.S. persons must seek authorization from BIS for the export or 
reexport to an SDT of an item subject to the EAR but not subject to 
OFAC's

[[Page 344]]

Terrorism Sanctions Regulations in 31 CFR part 595.
    (4) Non-U.S. persons must seek authorization from BIS for the export 
from abroad or reexport to an SDT of any item subject to the EAR.
    (5) Any export or reexport to an SDT by a U.S. person of any item 
subject both to the EAR and OFAC's Terrorism Sanctions Regulations in 31 
CFR part 595 and not authorized by OFAC is a violation of the EAR.
    (6) Any export or reexport by a U.S. person to an SDT of any item 
subject to the EAR that is not subject to OFAC's Terrorism Sanctions 
Regulations in 31 CFR part 595 and not authorized by BIS is a violation 
of the EAR. Any export from abroad or reexport by a non-U.S. person to 
an SDT of any item subject to the EAR and not authorized by BIS is a 
violation of the EAR.
    (7) These licensing requirements supplement any other requirements 
set forth elsewhere in the EAR.
    (b) Exceptions. No License Exceptions or other BIS authorization are 
available for export or reexport to an SDT of any item subject to the 
EAR.
    (c) Licensing policy. Applications for licenses for the export or 
reexport to an SDT of any item subject to the EAR generally will be 
denied. You should consult with OFAC concerning transactions subject to 
OFAC licensing requirements.
    (d) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.
    Note to Sec.  744.13: This section does not implement, construe, or 
limit the scope of any criminal statute, including (but not limited to) 
18 U.S.C. 2339B(a)(1) and 2339A, and does not excuse any person from 
complying with any criminal statute, including (but not limited to) 18 
U.S.C. 2339B(a)(1) and 18 U.S.C. 2339A.

[68 FR 34194, June 6, 2003]



Sec.  744.14  Restrictions on exports and reexports to designated 
Foreign Terrorist Organizations (FTOs).

    Consistent with the objectives of section 219 of the Immigration and 
Nationality Act, as amended (INA) (8 U.S.C. 1189), and section 303 of 
the Antiterrorism and Effective Death Penalty Act 1996, as amended 
(Anti-Terrorism Act) (18 U.S.C. 2339B) (Public Law 104-132. 110 Stat. 
1214-1319), BIS maintains restrictions on exports and reexports to 
organizations designated as Foreign Terrorist Organizations (FTOs) 
pursuant to section 219 of the INA. The Department of the Treasury, 
Office of Foreign Assets Control, maintains 31 CFR part 597, the Foreign 
Terrorist Organizations Sanctions Regulations, requiring U.S. financial 
institutions to block all financial transactions involving assets of 
designated FTOs within the possession or control of such U.S. financial 
institutions. Section 303 of the Anti-Terrorism Act prohibits persons 
within the United States or subject to U.S. jurisdiction from knowingly 
providing material support or resources to a designated FTO and makes 
violations punishable by criminal penalties under title 18, United 
States Code. These designated FTOs are listed in Appendix A to 31 CFR 
Chapter V and identified by the bracketed initials [FTO]. A designation 
of a foreign organization determined to meet the criteria of section 219 
of the INA takes effect upon publication in the Federal Register by the 
Secretary of State, or the Secretary's designee.
    (a) License requirement(s). (1) A license requirement applies to the 
export or reexport to an FTO of any item subject to the EAR.
    (2) U.S. persons must seek authorization from BIS for the export or 
reexport to an FTO of any item subject to the EAR.
    (3) Non-U.S. persons must seek authorization from BIS for the export 
from abroad or reexport to an FTO of any item subject to the EAR.
    (4) Any export or reexport to an FTO by any person of any item 
subject to the EAR and not authorized by BIS is a violation of the EAR.
    (5) These licensing requirements supplement any other requirements 
set forth elsewhere in the EAR.
    (b) Exceptions. No License Exceptions or other BIS authorization for 
items described by paragraph (a) of this section are available for 
exports or reexports to FTOs.
    (c) Licensing policy. Applications for exports and reexports to FTOs 
of all items identified by paragraph (a) of

[[Page 345]]

this section will generally be denied, to the extent they constitute 
material support or resources, as defined in 18 U.S.C. 2339A(b).
    (d) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.
    (e) FTOs also designated as SDTs or SDGTs. In cases in which an FTO 
is also an SDT, as described in Sec.  744.13, or an SDGT, as described 
in Sec.  744.12, the license requirements and licensing policy set forth 
in Sec.  744.13 or Sec.  744.12 will apply.
    Note to Sec.  744.14: This section does not implement, construe, or 
limit the scope of any criminal statute, including (but not limited to) 
18 U.S.C. 2339B(a)(1) and 2339A, and does not excuse any person from 
complying with any criminal statute, including (but not limited to) 18 
U.S.C. 2339B(a)(1) and 18 U.S.C. 2339A.

[68 FR 34195, June 6, 2003]



Sec.  744.15  Restrictions on exports and reexports to persons named 
in General Orders.

    Supplement No. 1 to part 736 of the EAR names certain persons 
(individuals and other legal entities) subject to special restrictions 
with respect to exports and reexports subject to the EAR. You may not 
violate any order issued under or made a part of the EAR, per General 
Prohibition nine of part 736 of the EAR.

[65 FR 76562, Dec. 7, 2000]



Sec.  744.16  Restrictions on exports and reexports by U.S. persons 

to specially designated persons on the list of Specially Designated 
Nationals identified by the bracketed suffix initials [FRYM].

    BIS maintains restrictions on exports and reexports of any item 
subject to the EAR by U.S. persons to persons designated pursuant to 
Executive Order 13088 of June 9, 1998, as amended by Executive Order 
13192 of January 17, 2001 (Executive Order 13088, as amended). These 
designated persons include individuals listed in the Annex to Executive 
Order 13192, as well as persons designated by the Secretary of the 
Treasury, in consultation with the Secretary of State pursuant to that 
order (e.g., the former President of the Federal Republic of Yugoslavia, 
Slobodan Milosevic; his close associates; persons determined to be under 
open indictment by the International Criminal Tribunal for the former 
Yugoslavia; and persons determined to have sought, or to be seeking, to 
maintain or reestablish illegitimate control over the political 
processes or economic resources of the Federal Republic of Yugoslavia 
(Serbia and Montenegro)). Persons designated pursuant to Executive Order 
13088, as amended, are included on the list of Specially Designated 
Nationals maintained by the Department of the Treasury's Office of 
Foreign Assets Control (OFAC) and identified by the bracketed suffix 
initials [FRYM]. The requirements set forth in this section further the 
objectives of Executive Order 13088, as amended.
    (a) License requirements. (1) A license is required for all exports 
and reexports of any item subject to the EAR by a U.S. person to a 
person on the list of Specially Designated Nationals maintained by OFAC 
and identified by the bracketed initials [FRYM].
    (2) A U.S. person may also be required to seek separate 
authorization from OFAC for an export or reexport to a designated person 
identified by the bracketed initials [FRYM].
    (b) License policy. Applications for exports and reexports of any 
item subject to the EAR by a U.S. person to a Specially Designated 
National identified by the bracketed initials [FRYM] will be reviewed 
with a general policy of denial.

[66 FR 12847, Mar. 1, 2001]



Sec.  744.17  Restrictions on certain exports and reexports of general 
purpose microprocessors for ``military end-uses'' and to ``military end-users.''

    (a) General prohibition. In addition to the license requirements for 
anti-terrorism reasons set forth in part 742 of the EAR, you may not 
export or reexport commodities described in ECCN 3A991.a.1 on the CCL 
(``microprocessor microcircuits'', ``microcomputer microcircuits'', and 
microcontroller microcircuits having a ``composite theoretical 
performance'' (``CTP'') of 6,500

[[Page 346]]

million theoretical operations per second (MTOPS) or more and an 
arithmetic logic unit with an access width of 32 bit or more), without a 
license if, at the time of the export or reexport, you know, have reason 
to know, or are informed by BIS that the item will be or is intended to 
be used for a ``military end-use,'' as defined in paragraph (d) of this 
section, in Country Group D:1 (see Supplement No. 1 to part 740 of the 
EAR); or by a ``military end-user,'' as defined in paragraph (e) of this 
section, in Country Group D:1. This license requirement does not apply 
to exports or reexports of items for the official use by personnel and 
agencies of the U.S. Government or agencies of a cooperating government. 
See Sec.  740.11(b)(3) of the EAR for definitions of ``agency of the 
U.S. Government'' and ``agency of a cooperating government''.
    (b) Additional prohibition on exporters or reexporters informed by 
BIS. BIS 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 items described in ECCN 3A991.a.1 to 
specified end-users, because BIS has determined that there is an 
unacceptable risk of diversion to the uses or users 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 
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) License review standards. There is a presumption of denial for 
applications to export or reexport items subject to this section.
    (d) Military end-use. In this section, the phrase ``military end-
use'' means incorporation into: a military item described on the U.S. 
Munitions List (USML) (22 CFR part 121, International Traffic in Arms 
Regulations) or the International Munitions List (IML) (as set out on 
the Wassenaar Arrangement website at http://www.wassenaar.org); 
commodities listed under ECCN's ending in ``A018'' on the Commerce 
Control List (CCL) in Supplement No. 1 to part 774 of the EAR; or any 
item that is designed for the ``use'', ``development'', ``production'', 
or deployment of military items described on the USML, the IML, or 
commodities listed under ECCN's ending in ``A018'' on the CCL. 
Supplement No. 1 of this part lists examples of `military end-use.'
    (e) Military end-user. In this section, the term ``military end-
user'' means the national armed services (army, navy, marine, air force, 
or coast guard), as well as the national guard and national police, 
government intelligence or reconnaissance organizations, or any person 
or entity whose actions or functions are intended to support ``military 
end-uses'' as defined in paragraph (d) of this section.
    (f) Exceptions. No License Exceptions apply to the prohibitions 
described in paragraphs (a) and (b) of this section.

[68 FR 1797, Jan. 14, 2003]

Supplement No. 1 to Part 744--Military End-Use Examples for Sec.  744.17

    (a) Examples of military end-uses (as described in Sec.  744.17 (d) 
of this part) of general-purpose microprocessors classified as ECCN 
3A991.a.1 includes employing such microprocessors in the ``use'', 
``development'', ``production'', or deployment of:
    (1) Cruise missiles;
    (2) Electronic suites of military aircraft and helicopters;
    (3) Radar for searching, targeting, or tracking systems;
    (4) Command/control/communications or navigation systems;
    (5) Unmanned aerial vehicles capable of performing military 
reconnaissance, surveillance, or combat support;
    (6) Rocket or missile systems;
    (7) Electronic or information warfare systems; or
    (8) Intelligence, reconnaissance, or surveillance systems suitable 
for supporting military operations.
    (b) [Reserved]

[68 FR 1797, Jan. 14, 2003]

[[Page 347]]

                 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
Austria
Belgium
Canada
Denmark
Finland
France
Germany
Greece
Iceland
Ireland
Italy (includes San Marino and Holy See)
Japan
Luxembourg
Netherlands
New Zealand
Norway
Portugal
Spain
Sweden
Turkey
United Kingdom

[61 FR 12802, Mar. 25, 1996, as amended at 62 FR 25459, May 9, 1997; 66 
FR 18402, Apr. 9, 2001]

[[Page 348]]

                Supplement No. 4 to Part 744--Entity List

----------------------------------------------------------------------------------------------------------------
                                                              License         License review    Federal Register
            Country                      Entity             requirement           policy            citation
----------------------------------------------------------------------------------------------------------------
This Supplement lists certain entities subject to license requirements for specified items under this part 744
 of the EAR. License requirements for these entities includes exports and reexports, unless otherwise stated.
 This list of entities is revised and updated on a periodic basis in this Supplement by adding new or amended
 notifications and deleting notifications no longer in effect.
----------------------------------------------------------------------------------------------------------------
CHINA, PEOPLE'S REPUBLIC OF....  13 Institute, China     For all items      See Sec.           66 FR 24265, May
                                  Academy of Launch       subject to the     744.3(d) of this   14, 2001.
                                  Vehicle Technology,     EAR.               part.
                                  (CALT), aka 713
                                  Institute or Beijing
                                  Institute of Control
                                  Devices.
                                 33 Institute, aka       For all items      See Sec.           66 FR 24266, May
                                  Beijing Institute of    subject to the     744.3(d) of this   14, 2001.
                                  Automatic Control       EAR having a       part.
                                  Equipment.              classification
                                                          other than EAR99
                                                          or a
                                                          classification
                                                          where the third
                                                          through fifth
                                                          digits of the
                                                          ECCN are
                                                          ``999'', e.g.,
                                                          XX999.
                                 35 Institute, aka       For all items      See Sec.           66 FR 24266, May
                                  Beijing Huahang Radio   subject to the     744.3(d) of this   14, 2001.
                                  Measurements Research   EAR having a       part.
                                  Institute.              classification
                                                          other than EAR99
                                                          or a
                                                          classification
                                                          where the third
                                                          through fifth
                                                          digits of the
                                                          ECCN are
                                                          ``999'', e.g.,
                                                          XX999.
                                 54th Research           For all items      See Sec.           66 FR 24266, May
                                  Institute of China,     subject to the     744.3(d) of this   14, 2001.
                                  aka Communication,      EAR having a       part.
                                  Telemetry and           classification
                                  Telecontrol Research    other than EAR99
                                  Institute (CTI).        or a
                                                          classification
                                                          where the third
                                                          through fifth
                                                          digits of the
                                                          ECCN are
                                                          ``999'', e.g.,
                                                          XX999.
                                 Baotou Guanghua         For all items      See Sec.           66 FR 24266, May
                                  Chemical Industrial     subject to the     744.2(d) of this   14, 2001.
                                  Corporation, 202        EAR having a       part.
                                  Factory Baotou, Inner   classification
                                  Mongolia.               other than EAR99.
                                 Beijing Aerospace       For all items      See Sec.   744.3   64 FR May 28,
                                  Automatic Control       subject to the     of this part.      1999.
                                  Institute, 51 Yong      EAR having a
                                  Ding Road Beijing.      classification
                                                          other than EAR99.
                                 Beijing Institute of    For all items      See Sec.   744.3   64 FR May 28,
                                  Structure and           subject to the     of this part.      1999.
                                  Environmental           EAR having a
                                  Engineering, a.k.a.,    classification
                                  Beijing Institute of    other than EAR99.
                                  Strength and
                                  Environmental
                                  Engineering, No. 36
                                  Wanyuan Road Beijing.
                                 Beijing Power           For all items      See Sec.           66 FR 24266, May
                                  Machinery Institute.    subject to the     744.3(d) of this   14, 2001.
                                                          EAR.               part.
                                 Beijing University of   For all items      See Sec.           66 FR 24266, May
                                  Aeronautics and         subject to the     744.3(d) of this   14, 2001.
                                  Astronautics (BUAA).    EAR.               part.

[[Page 349]]

 
                                 Chinese Academy of      For all items      Case-by-case       62 FR 35334, 6/30/
                                  Engineering Physics     subject to the     basis.             97; 66 FR 24266,
                                  (aka Ninth Academy,     EAR.                                  May 14, 2001.
                                  including the
                                  Southwest Institutes
                                  of: Applied
                                  Electronics, Chemical
                                  Materials, Electronic
                                  Engineering,
                                  Explosives and
                                  Chemical Engineering,
                                  Environmental
                                  Testing, Fluid
                                  Physics, General
                                  Designing and
                                  Assembly, Machining
                                  Technology,
                                  Materials, Nuclear
                                  Physics and Chemistry
                                  (aka China Academy of
                                  Eng[ineering] Physics
                                  [CAEP]'s 902
                                  Institute, Mianyang),
                                  Structural Mechanics;
                                  Research and
                                  Applications of
                                  Special Materials
                                  Factory; Southwest
                                  Computing Center (all
                                  of preceding located
                                  in or near Mianyang,
                                  Sichuan Province);
                                  Institute of Applied
                                  Physics and
                                  Computational
                                  Mathematics, Beijing;
                                  and High Power Laser
                                  Laboratory, Shanghai).
                                 China Aerodynamics      For all items      See Sec.   744.3   64 FR May 28,
                                  Research and            subject to the     of this part.      1999.
                                  Development Center      EAR having a
                                  (CARDC) Sichuan         classification
                                  Province.               other than EAR99.
                                 First Department,       For all items      See Sec.           66 FR 24266, May
                                  China Academy of        subject to the     744.3(d) of this   14, 2001.
                                  Launch Vehicle          EAR.               part.
                                  Technology, (CALT).
                                 Northwest Institute of  For all items      See Sec.   744.2   64 FR May 28,
                                  Nuclear Technology,     subject to the     of this part.      1999.
                                  in the Science          EAR.
                                  Research, Xi'an,
                                  Shaanxi.
                                 Northwestern            For all items      See Sec.           66 FR 24266, May
                                  Polytechnical           subject to the     744.3(d) of this   14, 2001.
                                  University.             EAR having a       part.
                                                          classification
                                                          other than EAR99
                                                          or a
                                                          classification
                                                          where the third
                                                          through fifth
                                                          digits of the
                                                          ECCN are
                                                          ``999'', e.g.,
                                                          XX999.
                                 Shanghai Academy of     For all items      See Sec.   744.3   64 FR May 28,
                                  Spaceflight             subject to the     of this part.      1999.
                                  Technology, Shanghai,   EAR having a
                                  Spaceflight Tower 222   classification
                                  Cao Xi Road Shanghai,   other than EAR99.
                                  20023.
                                 Shanghai Institute of   For all items      See Sec.   744.3   64 FR May 28,
                                  Space Power-Sources,    subject to the     of this part.      1999.
                                  Shanghai, 388 Cang Wu   EAR having a
                                  Rd Shanghai.            classification
                                                          other than EAR99.
                                 Southwest Research      For all items      See Sec.           66 FR 24267, May
                                  Institute of            subject to the     744.3(d) of this   14, 2001.
                                  Electronics             EAR having a       part.
                                  Technology, Chengdu.    classification
                                                          other than EAR99
                                                          or a
                                                          classification
                                                          where the third
                                                          through fifth
                                                          digits of the
                                                          ECCN are
                                                          ``999'', e.g.,
                                                          XX999.
                                 Xian Research           For all items      See Sec.           66 FR 24267, May
                                  Institute of            subject to the     744.3(d) of this   14, 2001.
                                  Navigation Technology.  EAR having a       part.
                                                          classification
                                                          other than EAR99.
                                 Xiangdong Machinery     For all items      See Sec.           66 FR 24267, May
                                  Factory.                subject to the     744.3(d) of this   14, 2001.
                                                          EAR.               part.

[[Page 350]]

 
INDIA..........................  Bharat Dynamics         For all items      Case-by-case for   63 FR 64322, 11/
                                  Limited.                subject to the     all items listed   19/98
                                                          EAR.               on the CCL.       65 FR 14444, 03/
                                                                             Presumption of     17/00
                                                                             approval for      [66 FR 50091, 10/
                                                                             EAR99 items.       01/01]
                                 The following           For all items      Case-by-case for   63 FR 64322, 11/
                                  subordinates of         subject to the     all items listed   19/98
                                  Defense Research and    EAR.               on the CCL.       65 FR 14444, 03/
                                  Development                                Presumption of     17/00
                                  Organization (DRDO).                       approval for      [66 FR 50091, 10/
                                 Armament Research and                       EAR99 items.       1/01]
                                  Development
                                  Establishment (ARDE).
                                 Defense Research and
                                  Development Lab
                                  (DRDL), Hyderabad.
                                 Missile Research and
                                  Development Complex.
                                 Solid State Physics
                                  Laboratory.
                                 The following           For all items      Case-by-case for   63 FR 64322, 11/
                                  Department of Atomic    subject to the     all items listed   19/98
                                  Energy entities.        EAR.               on the CCL.       65 FR 14444, 03/
                                 Bhabha Atomic Research                      Presumption of     17/00
                                  Center (BARC).                             approval for      [66 FR 50091, 10/
                                 Indira Gandhi Atomic                        EAR99 items.       1/01]
                                  Research Center
                                  (IGCAR).
                                 Indian Rare Earths....
                                 Nuclear reactors
                                  (including power
                                  plants), fuel
                                  reprocessing and
                                  enrichment
                                  facilities, heavy
                                  water production
                                  facilities and their
                                  collocated ammonia
                                  plants.
                                 Indian Space Research   For all items      Case-by-case for   63 FR 64322, 11/
                                  Organization (ISRO)     subject to the     all items listed   19/98
                                  headquarters in         EAR.               on the CCL.       65 FR 14444, 03/
                                  Bangalore, and the                         Presumption of     17/00
                                  following subordinate                      approval for      [66 FR 50092, 10/
                                  entities.                                  EAR99 items.       1/01]
                                 ISRO Telemetry,
                                  Tracking and Command
                                  Network (ISTRAC).
                                 ISRO Inertial Systems
                                  Unit (IISU),
                                  Thiruvananthapuram.
                                 Liquid Propulsion
                                  Systems Center.
                                 Solid Propellant Space
                                  Booster Plant (SPROB).
                                 Space Applications
                                  Center, (SAC),
                                  Ahmadabad.
                                 Sriharikota Space
                                  Center (SHAR).
                                 Vikram Sarabhai Space
                                  Center (VSSC),
                                  Thiruvananthapuram.
ISRAEL.........................  Ben Gurion University,   For computers     Case-by-case       62 FR 4910, 2/3/
                                  Israel.                 above the Tier 3   basis.             97
                                                          level described                      65 FR 12919, 3/10/
                                                          in Sec.                               00.
                                                          742.12(b)(3)(i)(
                                                          B).
                                 Nuclear Research        For all items      Case-by-case       62 FR 35334, 6/30/
                                  Center at Negev         subject to the     basis.             97.
                                  Dimona, Israel.         EAR.
PAKISTAN.......................  Abdul Qader Khan        For all items      Case-by-case for   63 FR 64322, 11/
                                  Research                subject to the     all items listed   19/98
                                  Laboratories, a.k.a.    EAR.               on the CCL.       65 FR 14444, 03/
                                  Khan Research                              Presumption of     17/00
                                  Laboratories (KRL),                        approval for      [66 FR 50092, 10/
                                  a.k.a. Engineering                         EAR99 items.       1/01]
                                  Research Laboratories
                                  (ERL), Kahuta.
                                 Al Technique            For all items      Case-by-case for   63 FR 64322, 11/
                                  Corporation of          subject to the     all items listed   19/98
                                  Pakistan, Ltd.          EAR.               on the CCL.       65 FR 14444, 03/
                                                                             Presumption of     17/00
                                                                             approval for      [66 FR 50092, 10/
                                                                             EAR99 items.       1/01]

[[Page 351]]

 
                                 Allied Trading Co.....  For all items      Case-by-case for   63 FR 64322, 11/
                                                          subject to the     all items listed   19/98
                                                          EAR.               on the CCL.       65 FR 14444, 03/
                                                                             Presumption of     17/00
                                                                             approval for      [66 FR 50092, 10/
                                                                             EAR99 items.       1/01]
                                 ANZ Importers and       For all items      Case-by-case for   63 FR 64322, 11/
                                  Exporters, Islamabad.   subject to the     all items listed   19/98
                                                          EAR.               on the CCL.       65 FR 14444, 03/
                                                                             Presumption of     17/00
                                                                             approval for      [66 FR 50092, 10/
                                                                             EAR99 items.       1/01]
                                 Defence Science and     For all items      Case-by-case for   63 FR 64322, 11/
                                  Technology              subject to the     all items listed   19/98
                                  Organization (DESTO),   EAR.               on the CCL.       65 FR 14444, 03/
                                  Rawalpindi.                                Presumption of     17/00
                                                                             approval for      [66 FR 50092, 10/
                                                                             EAR99 items.       1/01]
                                 High Technologies,      For all items      Case-by-case for   63 FR 64322, 11/
                                  Ltd., Islamabad.        subject to the     all items listed   19/98
                                                          EAR.               ion the CCL.      65 FR 14444, 03/
                                                                             Presumption of     17/00
                                                                             approval for      [66 FR 50092, 10/
                                                                             EAR99 items.       1/01]
                                 Karachi CBW Research    For all items      Case-by-case for   63 FR 64322, 11/
                                  Institute, University   subject to the     all items listed   19/98
                                  of Karachi's Husein     EAR.               on the CCL.       [66 FR 50092, 10/
                                  Ebrahim Jamal                              Presumption of     1/01]
                                  Research Institute of                      approval for
                                  Chemistry (HEJRIC).                        EAR99 items.
                                 Lastech Associates,     For all items      Case-by-case for   63 FR 64322, 11/
                                  Islamabad.              subject to the     all items listed   19/98
                                                          EAR.               on the CCL.       65 FR 14444, 03/
                                                                             Presumption of     17/00
                                                                             approval for      [66 FR 50092, 10/
                                                                             EAR99 items.       1/01]
                                 Machinery Master        For all items      Case-by-case for   63 FR 64322, 11/
                                  Enterprises,            subject to the     all items listed   19/98
                                  Islamabad.              EAR.               on the CCL.       65 FR 14444, 03/
                                                                             Presumption of     17/00
                                                                             approval for      [66 FR 50092, 10/
                                                                             EAR99 items.       1/01]
                                 Maple Engineering Pvt.  For all items      Case-by-case for   63 FR 64322, 11/
                                  Ltd. Consultants,       subject to the     all items listed   19/98
                                  Importers and           EAR.               on the CCL.       65 FR 14444, 03/
                                  Exporters.                                 Presumption of     17/00
                                                                             approval for      [66 FR 50092, 10/
                                                                             EAR99 items.       1/01]
                                 Orient Importers and    For all items      Case-by-case for   63 FR 64322, 11/
                                  Exporters, Islamabad.   subject to the     all items listed   19/98
                                                          EAR.               on the CCL.       65 FR 14444, 03/
                                                                             Presumption of     17/00
                                                                             approval for      [66 FR 50092, 10/
                                                                             EAR99 items.       1/01]
                                 Pakistan Atomic Energy  For all items      Case-by-case for   63 FR 64322, 11/
                                  Commission (PAEC),      subject to the     all items listed   19/98
                                  and the following       EAR.               on the CCL.       65 FR 14444, 03/
                                  subordinate entities.                      Presumption of     17/00
                                 National Development                        approval for      [66 FR 50093, 10/
                                  Complex (NDC).                             EAR99 items.       1/01]
                                 Nuclear reactors
                                  (including power
                                  plants), fuel
                                  reprocessing and
                                  enrichment
                                  facilities, all
                                  uranium processing,
                                  conversion and
                                  enrichment
                                  facilities, heavy
                                  water production
                                  facilities and any
                                  collocated ammonia
                                  plants.
                                 Pakistan Institute for
                                  Nuclear Science and
                                  Technology (PINSTECH).
                                 People's Steel Mills,   For all items      Case-by-case for   63 FR 64322, 11/
                                  Karachi.                subject to the     all items listed   19/98
                                                          EAR.               on the CCL.       65 FR 14444, 03/
                                                                             Presumption of     17/00
                                                                             approval for      [66 FR 50093, 10/
                                                                             EAR99 items.       1/01]

[[Page 352]]

 
                                 Prime International...  For all items      Case-by-case for   63 FR 64322, 11/
                                                          subject to the     all items listed   19/98
                                                          EAR.               on the CCL.       65 FR 14444, 03/
                                                                             Presumption of     17/00
                                                                             approval for      [66 FR 50093, 10/
                                                                             EAR99 items.       1/01]
                                 Space and Upper         For all items      Case-by-case for   63 FR 64322, 11/
                                  Atmospheric Research    subject to the     all items listed   19/98
                                  Commission (SUPARCO).   EAR.               on the CCL.       65 FR 14444, 03/
                                                                             Presumption of     17/00
                                                                             approval for      [66 FR 50093, 10/
                                                                             EAR99 items.       1/01]
                                 Technical Services,     For all items      Case-by-case for   63 FR 64322, 11/
                                  Islamabad.              subject to the     all items listed   19/98
                                                          EAR.               on the CCL.       65 FR 14444, 03/
                                                                             Presumption of     17/00
                                                                             approval for      [66 FR 50093, 10/
                                                                             EAR99 items.       1/01]
                                 The Tempest Trading     For all items      Case-by-case for   63 FR 64322, 11/
                                  Company, Islamabad.     subject to the     all items listed   19/98
                                                          EAR.               on the CCL.       65 FR 14444, 03/
                                                                             Presumption of     17/00
                                                                             approval for      [66 FR 50093, 10/
                                                                             EAR99 items.       1/01]
                                 Unique Technical        For all items      Case-by-case for   63 FR 64322, 11/
                                  Promoters.              subject to the     all items listed   19/98
                                                          EAR.               on the CCL.       65 FR 14444, 03/
                                                                             Presumption of     17/00
                                                                             approval for      [66 FR 50093, 10/
                                                                             EAR99 items.       1/01]
                                 Wah Chemical Product    For all items      Case-by-case for   63 FR 64322, 11/
                                  Plant.                  subject to the     all items listed   19/98
                                                          EAR.               on the CCL.       [66 FR 50093, 10/
                                                                             Presumption of     1/01]
                                                                             approval for
                                                                             EAR99 items.
                                 Wah Munitions Plant,    For all items      Case-by-case for   63 FR 64322, 11/
                                  a.k.a. Explosives       subject to the     all items listed   19/98
                                  Factory, Pakistan       EAR.               on the CCL.       65 FR 14444, 03/
                                  Ordnance Factories                         Presumption of     17/00
                                  (POF).                                     approval for      [66 FR 50093, 10/
                                                                             EAR99 items.       1/01]
RUSSIA.........................  All-Russian Scientific  For all items      Case-by-case       62 FR 35334, 6/30/
                                  Research Institute of   subject to the     basis.             97
                                  Technical Physics,      EAR.                                 66 FR 24267, May
                                  (aka VNIITF,                                                  14, 2001.
                                  Chelyabinsk-70, All-
                                  Russian Research
                                  Institute of
                                  Technical Physics,
                                  ARITP, Russian
                                  Federal Nuclear
                                  Center) located in
                                  either Snezhinsk or
                                  Kremlev (Sarov).
                                 All-Union Scientific    For all items      Case-by-case       62 FR 35334, 6/30/
                                  Research Institute of   subject to the     basis.             97
                                  Experimental Physics,   EAR.                                 66 FR 24267, May
                                  (aka VNIIEF, Arzamas-                                         14, 2001.
                                  16, Russian Federal
                                  Nuclear Center, All
                                  Russian Research
                                  Institute of
                                  Experimental Physics,
                                  ARIEP, Khariton
                                  Institute) located in
                                  either Snezhinsk or
                                  Kremlev (Sarov).
                                 Baltic State Technical  For all items      Presumption of     63 FR 40363, 7/29/
                                  University, 1/21, 1-    subject to the     denial.            98.
                                  ya Krasnoarmeiskaya     EAR (see Sec.
                                  Ul., 198005, St.        744.10 of the
                                  Petersburg.             EAR).
                                 Europalace 2000,        For all items      Presumption of     63 FR 40363, 7/29/
                                  Moscow.                 subject to the     denial.            98.
                                                          EAR (see Sec.
                                                          744.10 of the
                                                          EAR).
                                 Glavkosmos, 9           For all items      Presumption of     63 FR 40363, 7/29/
                                  Krasnoproletarskaya     subject to the     denial.            98.
                                  St., 103030 Moscow..    EAR (see Sec.
                                                          744.10 of the
                                                          EAR).

[[Page 353]]

 
                                 Grafit (aka State       For all items      Presumption of     63 FR 40363, 7/29/
                                  Scientific Research     subject to the     denial.            98.
                                  Institute of Graphite   EAR (see Sec.
                                  or NIIGRAFIT), 2        744.10 of the
                                  Ulitsa Elektrodnaya,    EAR).
                                  111524, Moscow.
                                 Medeleyev University    For all items      Presumption of     64 FR 14606 March
                                  of Chemical             subject to the     denial.            26, 1999.
                                  Technology of Russia    EAR (see Sec.
                                  (including at 9         744.10 of the
                                  Miusskaya Sq. Moscow    EAR).
                                  125047, Russia).
                                 Ministry for Atomic     For all items      Case-by-case       62 FR 35334, 6/30/
                                  Power of Russia (any    subject to the     basis.             97
                                  entities, institutes,   EAR.                                 66 FR 24267, May
                                  or centers associated                                         14, 2001.
                                  with) located in
                                  either Snezhinsk or
                                  Kremlev (Sarov).
                                 Moscow Aviation         For all items      Presumption of     64 FR 14606 March
                                  Institute (MAI)         subject to the     denial.            26, 1999.
                                  (including at 4         EAR (see Sec.
                                  Volokolamskoye          744.10 of the
                                  Shosse, Moscow          EAR).
                                  125871, Russia).
                                 MOSO Company, Moscow..  For all items      Presumption of     63 FR 40363, 7/29/
                                                          subject to the     denial.            98.
                                                          EAR (see Sec.
                                                          744.10 of the
                                                          EAR).
                                 The Scientific          For all items      Presumption of     64 FR 14606 March
                                  Research and Design     subject to the     denial.            26, 1999.
                                  Institute of Power      EAR (see Sec.
                                  Technology (a.k.a.      744.10 of the
                                  NIKIET, Research and    EAR).
                                  Development Institute
                                  of Power Engineering
                                  (RDIPE), and ENTEK)
                                  (including at 101000,
                                  P.O. Box 788, Moscow,
                                  Russia).
----------------------------------------------------------------------------------------------------------------


[[Page 354]]


[63 FR 64325, Nov. 19, 1998, as amended at 63 FR 65552, Nov. 27, 1998; 
64 FR 14606, Mar. 26, 1999; 64 FR 28910, May 28, 1999; 65 FR 14446, Mar. 
17, 2000; 65 FR 45843, July 26, 2000; 65 FR 60856, Oct. 13, 2000; 66 FR 
24265, May 14, 2001; 66 FR 50091, Oct. 1, 2001; 66 FR 65836, Dec. 21, 
2001]



PART 745_CHEMICAL WEAPONS CONVENTION REQUIREMENTS--Table of Contents




Sec.
745.1 Advance notification and annual report of all exports of Schedule 
          1 chemicals to other States Parties.
745.2 End-Use Certificate reporting requirements under the Chemical 
          Weapons Convention.

Supplement No. 1 to Part 745--Schedules of Chemicals
Supplement No. 2 to Part 745--States Parties to the Convention on the 
          Prohibition of the Development, Production, Stockpiling, and 
          Use of Chemical Weapons and on Their Destruction
Supplement No. 3 to Part 745--Foreign Government Agencies Responsible 
          for Issuing End-Use Certificates Pursuant to Sec.  745.2

    Authority: 50 U.S.C. 1701 et seq.; E.O. 12938, 59 FR 59099, 3 CFR, 
1994 Comp., p. 950; Notice of November 9, 2000, 65 FR 68063, 3 CFR, 2000 
Comp. p. 408.

    Source: 64 FR 27143, May 18, 1999, unless otherwise noted.



Sec.  745.1  Advance notification and annual report of all exports of 
Schedule 1 chemicals to other States Parties.

    Pursuant to the Convention, the United States is required to notify 
the Organization for the Prohibition of Chemical Weapons (OPCW) not less 
than 30 days in advance of every export of a Schedule 1 chemical, in any 
quantity, to another State Party. In addition, the United States is 
required to provide a report of all exports of Schedule 1 chemicals to 
other States Parties during each calendar year. If you plan to export 
any quantity of a Schedule 1 chemical controlled under the EAR and 
licensed by the Department of Commerce or controlled under the 
International Traffic in Arms Regulations (ITAR) and licensed by the 
Department of State, you are required under this section to notify the 
Department of Commerce in advance of this export. You are also required 
to provide an annual report of exports that actually occurred during the 
previous calendar year. The United States will transmit the advance 
notifications and an aggregate annual report to the OPCW of exports of 
Schedule 1 chemicals from the United States. Note that the notification 
and annual report requirements of this section do not relieve the 
exporter of any requirement to obtain a license from the Department of 
Commerce for the export of Schedule 1 chemicals subject to the EAR or 
from the Department of State for the export of Schedule 1 chemicals 
subject to the ITAR.
    (a) Advance notification of exports. You must notify BIS at least 45 
calendar days prior to exporting any quantity of a Schedule 1 chemical 
listed in Supplement No. 1 to this part to another State Party. This is 
in addition to the requirement to obtain an export license under the EAR 
for chemicals controlled by ECCN 1C350 or 1C351 for any reason for 
control, or from the Department of State for Schedule 1 chemicals 
controlled under the ITAR. Note that such notifications may be sent to 
BIS prior to or after submission of a license application to BIS for 
Schedule 1 chemicals controlled subject to the EAR and under ECCNs 1C350 
or 1C351 or to the Department of State for Schedule 1 chemicals 
controlled on the ITAR. Such notices must be submitted separately from 
license applications.
    (1) Such notification should be on company letterhead or must 
clearly identify the reporting entity by name of company, complete 
address, name of contact person and telephone and fax numbers, along 
with the following information:
    (i) Common Chemical Name;
    (ii) Structural formula of the chemical;
    (iii) Chemical Abstract Service (CAS) Registry Number;
    (iv) Quantity involved in grams;
    (v) Planned date of export;
    (vi) Purpose (end-use) of export;
    (vii) Name of recipient;
    (viii) Complete street address of recipient;
    (ix) Export license or control number, if known; and

[[Page 355]]

    (x) Company identification number, once assigned by BIS.
    (2) Send the notification by fax to (703) 235-1481 or to the 
following address, for mail and courier deliveries: Information 
Technology Team, Department of Commerce, Bureau of Industry and 
Security, 1555 Wilson Boulevard, Suite 710, Arlington, VA 22209. Attn: 
``Advance Notification of Schedule 1 Chemical Export''.
    (3) Upon receipt of the notification, BIS will inform the exporter 
of the earliest date the shipment may occur under the notification 
procedure. To export the Schedule 1 chemical, the exporter must have 
applied for and been granted a license (see Sec. Sec.  742.2 and 742.18 
of the EAR, or the ITAR at 22 CFR part 121.
    (b) Annual report of exports. (1) You must report all exports of any 
quantity of a Schedule 1 chemical to another State Party during the 
previous calendar year, starting with exports taking place during 
calendar year 1997. Reports for exports during calendar years 1997 and 
1998 are due to the Department of Commerce August 16, 1999. Thereafter, 
annual reports of exports are due on February 13 of the following 
calendar year. The report should be on company letterhead or must 
clearly identify the reporting entity by name of company, complete 
address, name of contact person and telephone and fax numbers along with 
the following information for each export:
    (i) Common Chemical Name;
    (ii) Structural formula of the chemical;
    (iii) CAS Registry Number;
    (iv) Quantity involved in grams;
    (v) Date of export;
    (vi) Export license number;
    (vii) Purpose (end-use) of export;
    (viii) Name of recipient;
    (ix) Complete address of recipient, including street address, city 
and country; and (x) Company identification number, once assigned by 
BIS.
    (2) The report must be signed by a responsible party, certifying 
that the information provided in the annual report is, to the best of 
his/her knowledge and belief, true and complete.
    (3) Send the report by fax to (703) 235-1481 or to the following 
address, for mail and courier deliveries: Information Technology Team, 
Department of Commerce, Bureau of Industry and Security, 1555 Wilson 
Boulevard, Suite 710, Arlington, VA 22209. Attn: ``Annual Report of 
Schedule 1 Chemical Export''.

[64 FR 27143, May 18, 1999, as amended at 64 FR 28909, May 28, 1999; 65 
FR 12923, Mar. 10, 2000]



Sec.  745.2  End-Use Certificate reporting requirements under the 
Chemical Weapons Convention.

    Note: The End-Use Certificate requirement of this section does not 
relieve the exporter of any requirement to obtain a license from the 
Department of Commerce for the export of Schedule 3 chemicals subject to 
the Export Administration Regulations or from the Department of State 
for the export of Schedule 3 chemicals subject to the International 
Traffic in Arms Regulations.
    (a)(1) No U.S. person, as defined in Sec.  744.6(c) of the EAR, may 
export from the United States any Schedule 3 chemical identified in 
Supplement No. 1 to this part to countries not party to the Chemical 
Weapons Convention (destinations not listed in Supplement No. 2 to this 
part) unless the U.S. person obtains from the consignee an End-Use 
Certificate issued by the government of the importing destination. This 
Certificate must be issued by the foreign government's agency 
responsible for foreign affairs or any other agency or department 
designated by the importing government for this purpose. Supplement No. 
3 to this part includes foreign authorized agencies responsible for 
issuing End-Use Certificates pursuant to this section. Additional 
foreign authorized agencies responsible for issuing End-Use Certificates 
will be included in Supplement No. 3 to this part when known. End-Use 
Certificates may be issued to cover aggregate quantities against which 
multiple shipments may be made to a single consignee. An End-Use 
Certificate covering multiple shipments may be used until the aggregate 
quantity is shipped. End-Use Certificates must be submitted separately 
from license applications.
    (2) Submit a copy of the End-Use Certificate to the Department of 
Commerce by fax at (703) 235-1481 or to the following address no later 
than 7 days after the date of export, for mail and

[[Page 356]]

courier deliveries: Information Technology Team, Department of Commerce, 
Bureau of Industry and Security, 1555 Wilson Boulevard, Suite 710, 
Arlington, VA 22209. Attn: CWC End-Use Certificate Report.
    (b) The End-Use Certificate described in paragraph (a) of this 
section must state the following:
    (1) That the chemicals will be used only for purposes not prohibited 
under the Chemical Weapons Convention;
    (2) That the chemicals will not be transferred to other end-user(s) 
or end-use(s);
    (3) The types and quantities of chemicals;
    (4) Their specific end-use(s); and
    (5) The name(s) and complete address(es) of the end-user(s).

[64 FR 27143, May 18, 1999, as amended at 64 FR 49381, Sept. 13, 1999; 
66 FR 49525, Sept. 28, 2001]

          Supplement No. 1 to Part 745--Schedules of Chemicals

------------------------------------------------------------------------
                                                         C.A.S. Registry
                                                               No.
------------------------------------------------------------------------
                               Schedule 1
------------------------------------------------------------------------
A. Toxic chemicals:
    (1) O-Alkyl (<=C10, incl. cycloalkyl) alkyl (Me,
     Et, n-Pr or i-Pr)-phosphonofluoridates
        e.g. Sarin: O-Isopropyl                                 107-44-8
         methylphosphonofluoridate....................
        Soman: O-Pinacolyl methylphosphonofluoridate..           96-64-0
    (2) O-Alkyl (<=C10, incl. cycloalkyl) N,N-dialkyl
     (Me, Et, n-Pr or i-Pr) phosphoramidocyanidates
        e.g. Tabun: O-Ethyl N,N-dimethyl                         77-81-6
         phosphoramidocyanidate.......................
    (3) O-Alkyl (H or <=C10, incl. cycloalkyl) S-2-
     dialkyl (Me, Et, n-Pr or i-Pr)-aminoethyl alkyl
     (Me, Et, n-Pr or i-Pr) phosphonothiolates and
     corresponding alkylated or protonated salts
        e.g. VX: O-Ethyl S-2-diisopropylaminoethyl            50782-69-9
         methyl phosphonothiolate.....................
    (4) Sulfur mustards:
        2-Chloroethylchloromethylsulfide..............         2625-76-5
        Mustard gas: Bis(2-chloroethyl)sulfide........          505-60-2
        Bis(2-chloroethylthio)methane.................        63869-13-6
        Sesquimustard: 1,2-Bis(2-                              3563-36-8
         chloroethylthio)ethane.......................
        1,3-Bis(2-chloroethylthio)-n-propane..........        63905-10-2
        1,4-Bis(2-chloroethylthio)-n-butane...........       142868-93-7
        1,5-Bis(2-chloroethylthio)-n-pentane..........       142868-94-8
        Bis(2-chloroethylthiomethyl)ether.............        63918-90-1
        O-Mustard: Bis(2-chloroethylthioethyl)ether...        63918-89-8
    (5) Lewisites:
        Lewisite 1: 2-Chlorovinyldichloroarsine.......          541-25-3
        Lewisite 2: Bis(2-chlorovinyl)chloroarsine....        40334-69-8
        Lewisite 3: Tris(2-chlorovinyl)arsine.........        40334-70-1
    (6) Nitrogen mustards:
        HN1: Bis(2-chloroethyl)ethylamine.............          538-07-8
        HN2: Bis(2-chloroethyl)methylamine............           51-75-2
        HN3: Tris(2-chloroethyl)amine.................          555-77-1
    (7) Saxitoxin.....................................        35523-89-8
    (8) Ricin.........................................         9009-86-3
    B. Precursors:....................................
    (9) Alkyl (Me, Et, n-Pr or i-Pr)
     phosphonyldifluorides
        e.g. DF: Methylphosphonyldifluoride...........          676-99-3
    (10) O-Alkyl (H or <=C10, incl. cycloalkyl) O-2-
     dialkyl (Me, Et, n-Pr or i-Pr)-aminoethyl alkyl
     (Me, Et, n-Pr or i-Pr) phosphonites and
     corresponding alkylated or protonated salts
        e.g. QL: O-Ethyl O-2-diisopropylaminoethyl            57856-11-8
         methylphosphonite............................
    (11) Chlorosarin: O-Isopropyl                              1445-76-7
     methylphosphonochloridate........................
    (12) Chlorosoman: O-Pinacolyl                              7040-57-5
     methylphosphonochloridate........................
                               Schedule 2
------------------------------------------------------------------------
A. Toxic chemicals:
    (1) Amiton: O,O-Diethyl S-[2-(diethylamino)ethyl]            78-53-5
     phosphorothiolate and corresponding alkylated or
     protonated salts.................................
    (2) PFIB: 1,1,3,3,3-Pentafluoro-2-                          382-21-8
     (trifluoromethyl)-1-propene......................
    (3) BZ: 3-Quinuclidinyl benzilate.................         6581-06-2
B. Precursors:
    (4) Chemicals, except for those listed in Schedule
     1, containing a phosphorus atom to which is
     bonded one methyl, ethyl or propyl (normal or
     iso) group but not further carbon atoms,
        e.g. Methylphosphonyl dichloride..............          676-97-1
        Dimethyl methylphosphonate....................          756-79-6
        Exemption: Fonofos: O-Ethyl S-phenyl                    944-22-9
         ethylphosphono-thiolothionate................

[[Page 357]]

 
    (5) N,N-Dialkyl (Me, Et, n-Pr or i-Pr)
     phosphoramidic dihalides
    (6) Dialkyl (Me, Et, n-Pr or i-Pr) N,N-dialkyl
     (Me, Et, n-Pr or i-Pr)-phosphoramidates
    (7) Arsenic trichloride                                    7784-34-1
    (8) 2,2-Diphenyl-2-hydroxyacetic acid                        76-93-7
    (9) Quinuclidine-3-ol                                      1619-34-7
    (10) N,N-Dialkyl (Me, Et, n-Pr or i-Pr) aminoethyl-
     2-chlorides and corresponding protonated salts
    (11) N,N-Dialkyl (Me, Et, n-Pr or i-Pr)
     aminoethane-2-ols and corresponding protonated
     salts
        Exemptions: N,N-Dimethylaminoethanol and                108-01-0
         corresponding protonated salts...............
        N,N-Diethylaminoethanol and corresponding               100-37-8
         protonated salts.............................
    (12) N,N-Dialkyl (Me, Et, n-Pr or i-Pr)
     aminoethane-2-thiols and corresponding protonated
     salts
        (13) Thiodiglycol: Bis(2-hydroxyethyl)sulfide.          111-48-8
        (14) Pinacolyl alcohol: 3,3-Dimethylbutane-2-           464-07-3
         ol...........................................
                               Schedule 3
------------------------------------------------------------------------
A. Toxic chemicals:
    (1) Phosgene: Carbonyl dichloride.................           75-44-5
    (2) Cyanogen chloride.............................          506-77-4
    (3) Hydrogen cyanide..............................           74-90-8
    (4) Chloropicrin: Trichloronitromethane...........           76-06-2
B. Precursors:
    (5) Phosphorus oxychloride........................        10025-87-3
    (6) Phosphorus trichloride........................         7719-12-2
    (7) Phosphorus pentachloride......................        10026-13-8
    (8) Trimethyl phosphite...........................          121-45-9
    (9) Triethyl phosphite............................          122-52-1
    (10) Dimethyl phosphite...........................          868-85-9
    (11) Diethyl phosphite............................          762-04-9
    (12) Sulfur monochloride..........................        10025-67-9
    (13) Sulfur dichloride............................        10545-99-0
    (14) Thionyl chloride.............................         7719-09-7
    (15) Ethyldiethanolamine..........................          139-87-7
    (16) Methyldiethanolamine.........................          105-59-9
    (17) Triethanolamine..............................          102-71-6
------------------------------------------------------------------------

 Supplement No. 2 to Part 745--States Parties to the Convention on the 
  Prohibition of the Development, Production, Stockpiling, and Use of 
                Chemical Weapons and on Their Destruction

               List of States Parties as of April 1, 2003

Albania
Algeria
Andorra
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Belarus
Belgium
Benin
Bolivia
Bosnia-Herzegovina
Botswana
Brazil
Brunei Darussalam
Bulgaria
Burkina Faso
Burundi
Cameroon
Canada
Chile
China*
---------------------------------------------------------------------------

    * For CWC purposes only, China includes Hong Kong.
---------------------------------------------------------------------------

Colombia
Cook Islands
Costa Rica
Cote d'Ivoire (Ivory Coast)
Croatia
Cuba
Cyprus
Czech Republic
Denmark
Dominica
Ecuador
El Salvador
Equatorial Guinea
Eritrea
Estonia
Ethiopia
Fiji
Finland
France
Gabon
Gambia
Georgia
Germany
Ghana
Greece
Guatemala
Guinea
Guyana
Holy See
Hungary
Iceland
India
Indonesia
Iran
Ireland
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kiribati
Kenya
Korea (Republic of)
Kuwait
Laos (P.D.R.)
Latvia
Lesotho
Liechtenstein
Lithuania
Luxembourg

[[Page 358]]

Macedonia
Malawi
Malaysia
Maldives
Mali
Malta
Mauritius
Mauritania
Mexico
Micronesia
Moldova (Republic of)
Monaco
Mongolia
Morocco
Mozambique
Namibia
Nauru
Nepal
Netherlands
New Zealand
Nicaragua
Niger
Nigeria
Norway
Oman
Pakistan
Palau
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Poland
Portugal
Qatar
Romania
Russian Federation
Saint Lucia
Saint Vincent and the Grenadines
Samoa
San Marino
Saudi Arabia
Senegal
Seychelles
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Sudan
Suriname
Swaziland
Sweden
Switzerland
Tajikistan
Tanzania
Thailand
The United Arab Emirates
Togo
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
Uganda
United Kingdom
Ukraine
United States
Uruguay
Uzbekistan
Venezuela
Vietnam
Yemen
Yugoslavia (Federal Republic of)
Zambia
Zimbabwe

[64 FR 27143, May 18, 1999, as amended at 64 FR 49381, Sept. 13, 1999; 
66 FR 49525, Sept. 28, 2001; 67 FR 37983, May 31, 2002; 68 FR 34529, 
June 10, 2003]

 Supplement No. 3 to Part 745--Foreign Authorized Agencies Responsible 
        for Issuing End-Use Certificates Pursuant to Sec.  745.2

Israel
Chemical, Environment Technology Administration, Ministry of Industry & 
          Trade, 30 Agron Street, Jerusalem 94190, Israel
Contact: Josef Dancona, Deputy Director, Telephone: 972-2-6220193, Fax: 
          972-2-6241987
Taiwan \1\
---------------------------------------------------------------------------

    \1\ Two of the three offices (Export Processing Zone Administration 
and the Science-Based Industrial Park Administration) are in special 
economic zones and are responsible for the activity in their respective 
zones.
---------------------------------------------------------------------------

Board of Foreign Trade, Ministry of Economic Affairs, 1 Hukou St., 
          Taipei, Tel: (02) 2351-0271, Fax: (02) 2351-3603
Export Processing Zone Administration, Ministry of Economic Affairs, 600 
          Chiachang Rd., Nantze, Kaohsiung, Tel: (07) 361-1212, Fax: 
          (07) 361-4348
Science-Based Industrial Park Administration, National Science Council, 
          Executive Yuan, 2 Hsin-an Rd., Hsinchu, Tel: (03) 577-3311, 
          Fax: (03) 577-6222

[64 FR 27143, May 18, 1999, as amended at 64 FR 43982, Sept. 13, 1999]



PART 746_EMBARGOES AND OTHER SPECIAL CONTROLS--Table of Contents




Sec.
746.1 Introduction.
746.2 Cuba.
746.3 Iraq.
746.4 Libya.
746.5-746.6 [Reserved]
746.7 Iran.
746.8 Rwanda.
746.9 [Reserved]

Supplement No. 1 to Part 746--Special Sanctions on Angola Administered 
          by the Office of Foreign Assets Control
Supplement Nos. 2-3 to Part 746 [Reserved]


[[Page 359]]


    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; Sec. 901-911, Publ. L. 106-387; Sec. 221, 
Publ. L. 107-56; E.O. 12854, 58 FR 36587, 3 CFR 1993 Comp., p. 614; E.O. 
12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 13222, 3 CFR, 2001 
Comp., p. 783; Notice of August 14, 2002, 67 FR 53721, August 16, 2002.

    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 U.S. government 
policies. Two categories of controls are included in this part.
    (a) Comprehensive controls. This part contains or refers to all the 
BIS licensing requirements, licensing policies, and License Exceptions 
for countries subject to general embargoes, currently Cuba, Libya, Iran 
and Iraq. This part is the focal point for all the EAR requirements for 
transactions involving these countries.
    (1) Cuba and Libya. All the items on the Commerce Control List (CCL) 
require a license to Cuba or Libya. 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 or Libya. 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 BIS 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 controls that apply to Rwanda are 
supplemental to the controls described in the Country Chart in part 738 
of the EAR. 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 
the Office of Defense Trade Controls in the Department of State. 
Comprehensive embargoes and supplemental controls implemented by BIS 
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 BIS 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.

[61 FR 12806, Mar. 25, 1996, as amended at 62 FR 25459, May 9, 1996; 65 
FR 38160, June 19, 2000; 67 FR 70546, Nov. 25, 2002]



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 or reexport 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 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.  740.9(a)(2)(viii) of the EAR).
    (ii) Operation technology and software (TSU) for legally exported 
commodities (see Sec.  740.13(a) of the EAR).
    (iii) Sales technology (TSU) (see Sec.  740.13(b) of the EAR).

[[Page 360]]

    (iv) Software updates (TSU) for legally exported software (see Sec.  
740.13(c) of the EAR).
    (v) Parts (RPL) for one-for-one replacement in certain legally 
exported commodities (see Sec.  740.10(a) of the EAR).
    (vi) Baggage (BAG) (see Sec.  740.14 of the EAR).
    (vii) Governments and international organizations (GOV) (see Sec.  
740.11 of the EAR).
    (viii) Gift parcels and humanitarian donations (GFT) (see Sec.  
740.12 of the EAR).
    (ix) Items in transit (TMP) from Canada through the U.S. (see Sec.  
740.9(b)(1)(iv) of the EAR).
    (x) Aircraft and vessels (AVS) for certain aircraft on temporary 
sojourn (see Sec.  740.15(a) of the EAR).
    (xi) Permissive reexports of certain spare parts in foreign-made 
equipment (see Sec.  740.16(h) of the EAR).
    (xii) Exports of agricultural commodities, classified as EAR99, 
under License Exception Agricultural Commodities (AGR) and certain 
reexports of U.S. origin agricultural commodities, classified as EAR99, 
under License Exception AGR (see Sec.  740.18 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 and Medical Devices. Applications to export medicines 
and medical devices as defined in part 772 of the EAR 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. 2 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 
medicines or medical devices 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 U.S.-origin parts, 
components and materials, in which case the application will be reviewed 
under the licensing

[[Page 361]]

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 as a humanitarian donation under License Exception GFT (Sec.  
740.12 of the EAR) or License Exception AGR (Sec.  740.18 of the EAR).
    (4) Applications for licenses may be approved, on a case-by-case 
basis, for certain exports to Cuba intended to provide support for the 
Cuban people, as follows:
    (i) Applications for licenses for exports of certain commodities and 
software may be approved to human rights organizations, or to 
individuals and non-governmental organizations that promote independent 
activity intended to strengthen civil society in Cuba when such exports 
do not give rise to U.S. national security or counter-terrorism 
concerns. Examples of such commodities include fax machines, copiers, 
computers (e.g., 486-level/CTP of 24.8 MTOPS or less), business/office 
software, document scanning equipment, printers, typewriters, and other 
office or office communications equipment. Applicants may donate or sell 
the commodities or software to be exported. Reexport to other end-users 
or end-uses is not authorized.
    (ii) Commodities and software may be approved for export to U.S. 
news bureaus in Cuba whose primary purpose is the gathering and 
dissemination of news to the general public. In addition to the examples 
of commodities and software listed in paragraph (b)(4)(i) of this 
section, certain telecommunications equipment necessary for the 
operation of news organizations (e.g., 33M bit/s data signaling rate or 
less) may be approved for export to U.S. news bureaus.
    (iii) Exports of agricultural items, which are outside the scope of 
agricultural commodities as defined in part 772 of the EAR, such as 
insecticides, pesticides and herbicides, as well as agricultural 
commodities not eligible for License Exception AGR, require a license 
and will be reviewed on a case-by-case basis.
    (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) Definitions. For purposes of this section, ``U.S. person'' means 
any person subject to the jurisdiction of the United States, as 
described in Sec.  515.329 of the Cuban Assets Control Regulations (31 
CFR 515.329).
    (e) 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. OFAC's Terrorism List Government Sanctions 
Regulations in 31 CFR part 596 prohibit U.S. persons from engaging in a 
financial transaction with the government of a designated state sponsor 
of international terrorism without OFAC authorization. The Department of 
State also implements sanctions on countries that are designated state 
sponsors of international terrorism. Exporters and reexporters should 
consult with those agencies for further guidance on these related 
controls.

[61 FR 12802, Mar. 25, 1996, as amended at 61 FR 64284, Dec. 4, 1996; 62 
FR 9364, Mar. 3, 1997; 62 FR 25459, May 9, 1997; 64 FR 25808, May 13, 
1999; 66 FR 36682, July 12, 2001]



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. Please note that such applications will generally be denied by 
OFAC, absent a published policy stating otherwise. Under the EAR, you 
need a license to export or reexport to Iraq any item on the CCL 
containing a CB Column 1, CB

[[Page 362]]

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, 
1C997, 5A980, 0A980, 0A982, 0A983, 0A985, and 0E982; however, to avoid 
duplication, an authorization from OFAC constitutes authorization under 
the EAR, and no separate BIS authorization is necessary. No person may 
export or reexport any item subject to both the EAR and OFAC's Iraqi 
Sanctions Regulations without prior OFAC authorization. Exports and 
reexports subject to the EAR that are not subject to the Iraqi Sanctions 
Regulations may require authorization from BIS.
    (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.  740.14 of the EAR).
    (ii) Governments and international organizations (GOV) (see Sec.  
740.11 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; 62 
FR 25460, May 9, 1997; 66 FR 36682, July 12, 2001]



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 BIS have 
allocated licensing responsibility as follows: OFAC licenses direct 
exports and transshipments to Libya; BIS 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 or software. Issuance of an OFAC license also constitutes 
authorization under the EAR, and no license from BIS is necessary. 
Exports and reexports subject to the EAR that are not subject to the 
Libyan Sanctions Regulations continue to require authorization from BIS.
    (b) License requirements.
    (1) Exports. OFAC and BIS 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 BIS License Exception or other BIS 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 BIS License Exceptions:
    (i) Baggage (BAG) (see Sec.  740.14 of the EAR).
    (ii) Governments and international organizations (GOV) (see Sec.  
740.11 of the EAR).
    (iii) Gift parcels (GFT) (see Sec.  740.12(a) of the EAR).
    (2) Reexports. You will need a license from BIS 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 BIS to reexport all items 
subject to the EAR (see part 734 of the EAR) to Libya, except:

[[Page 363]]

    (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.  740.9(a)(2)(viii) of the EAR).
    (B) Operation technology and software (TSU) for legally exported 
commodities (see Sec.  740.13(a) of the EAR).
    (C) Sales technology (TSU) (see Sec.  740.13(b) of the EAR).
    (D) Software updates (TSU) for legally exported software (see Sec.  
740.13(c) of the EAR).
    (E) Parts (RPL) for one-for-one replacement in certain legally 
exported commodities (Sec.  740.10(a) of the EAR).
    (F) Baggage (BAG) (Sec.  740.14 of the EAR).
    (G) Aircraft and vessels (AVS) for vessels only (see Sec.  740.15 
(c)(1) of the EAR), and temporary reexports of foreign registered 
aircraft (see Sec.  740.15 (a)(4) of the EAR).
    (H) Governments and international organizations (GOV) (see Sec.  
740.11 of the EAR).
    (I) Gift parcels and humanitarian donations (GFT) (see Sec.  740.12 
of the EAR).
    (J) Permissive reexports of certain spare parts in foreign-made 
equipment (see Sec.  740.16(h) 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 BIS 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 BIS 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 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,

[[Page 364]]

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) of this section, licenses will generally be issued for 
items not included in paragraphs (c)(2) (iv) through (vii) of this 
section 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
    (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 9A990.b, 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.
    (d) 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.
    (e) Related controls. OFAC administers broad economic sanctions on 
Libya, and restricts participation by U.S. persons in transactions with

[[Page 365]]

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; 62 
FR 25460, May 9, 1997; 63 FR 42229, Aug. 7, 1998; 64 FR 49383, Sept. 13, 
1999]



Sec.  746.5--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.) BIS 
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. 
Exports and reexports subject to the EAR that are not subject to the 
Iranian Transactions Regulations may require authorization from BIS.
    (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) BIS 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 paragraph 
(a)(2)(i) of this section, except for ECCNs 2A994; 3A992.a; 5A991.g; 
5A992; 6A991; 6A998; 7A994; 8A992.d, .e, .f, and .g; 9A990.a and .b; and 
9A991.d and .e. 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) BIS authorization. To avoid duplication, exporters or 
reexporters are not required to seek separate authorization from BIS 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 BIS 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 acts of international 
terrorism. For anti-terrorism controls, see Sec.  742.8 of the EAR and 
Supplement 2 to part 742.

[61 FR 12806, Mar. 25, 1996, as amended at 63 FR 42229, Aug. 7, 1998; 65 
FR 34075, May 26, 2000; 66 FR 36683, July 12, 2001]



Sec.  746.8  Rwanda.

    (a) Introduction. In addition to the controls on Rwanda reflected on 
the Country Chart in Supplement 1 to part

[[Page 366]]

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 mat[eacute]riel 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 ``018'', and items 
described by ECCNs 0A978; 0A979; 0A982; 0A984; 0A986; 0A988; 0B986; 
0E982; 1A005; 5A980; 6A002.a.1, a.2, a.3, and .c; 6A003.b.3 and b.4; 
6E001; 6E002; and 9A991.a.
    (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).

[61 FR 12806, Mar. 25, 1996, as amended at 63 FR 42229, Aug. 7, 1998; 65 
FR 55179, Sept. 13, 2000]



Sec.  746.9  [Reserved]

 Supplement 1 to Part 746--Special Sanctions on Angola Administered by 
                  the Office of Foreign Assets Control

    (a) Angola. BIS 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 Secretary of the Treasury, in the following schedule:
    (i) Airports:
    (A) Luanda; or

[[Page 367]]

    (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 BIS. In addition, all other items controlled on the CCL to 
Angola continue to require a license from BIS.

               Supplement Nos. 2-3 to Part 746 [Reserved]



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 request, advisory opinions, and encryption review 
          requests.
748.4 Basic guidance related to applying for a license.
748.5 Parties to the transaction.
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 (DV).
748.14 Import certificate for firearms destined for Organization of 
          American States member countries.

Supplement No. 1 to Part 748--BIS-748P, BIS-748P-A; Item Appendix, and 
          BISXA-748P-B; End-User Appendix; Multipurpose Application 
          Instructions
Supplement No. 2 to Part 748--Unique License Application Requirements
Supplement No. 3 to Part 748--BIS-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
Supplement No. 6 to Part 748--Authorities Issuing Import Certificates 
          Under the Firearms Convention [Reserved]

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 
August 22, 2001.

    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, 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 BIS-
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) BIS responses. BIS 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 BIS.
    (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 BIS offices:

[[Page 368]]

                       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 BIS 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 Industry and Security, 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 Industry and Security, U.S. Department of 
Commerce, 14th Street and Pennsylvania Avenue N.W., Room 2705, 
Washington, D.C. 20044, Attn: ``Application Enclosed''. BIS will not 
accept applications sent C.O.D.



Sec.  748.3  Classification requests, advisory opinions, and encryption 
review requests.

    (a) Introduction. In light of your responsibility to classify your 
item, you may ask BIS to provide you with the correct Export Control 
Classification Number (ECCN) to the paragraph (or subparagraph if 
appropriate). BIS 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, BIS will advise you 
whether a license is required, or likely to be granted, for a particular 
transaction. Note that these responses do not bind BIS 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''. The encryption requirements in the 
EAR require that certain encryption items be reviewed by BIS in order 
for them to be eligible for export or reexport under License Exception 
ENC (see Sec.  740.17 of the EAR) or to be released from ``EI'' controls 
(see Sec.  742.15(b)(2) of the EAR). BIS makes its determination based 
on the submission of a review request prepared in accordance with the 
instructions in Supplement No. 6 to Part 742 of the EAR. A review of the 
questions provided in Supplement No. 5 to part 742 of the EAR may assist 
in determining whether you must submit an encryption review request (see 
paragraph (d) of this section) for your particular item.
    (b) Classification requests. You must submit your Classification 
Request using Form BIS-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 BIS 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 six items. 
Exceptions may be granted by BIS 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 in sufficient technical 
detail to enable classification by BIS.
    (2) When submitting a Classification Request, you must complete 
Blocks 1 through 5, 14, 22 (a), (b), (c), (d), and (i), 24, and 25 on 
Form BIS-748P. You must provide a recommended classification in Block 
22(a) and explain the basis for your recommendation based on the 
technical parameters specified in the appropriate ECCN in Block 24. If 
you are unable to determine a recommended classification for your item, 
include an explanation in Block 24, identifying the ambiguities or 
deficiencies that precluded you from making a recommended 
classification.
    (c) Advisory Opinions. Advisory Opinions must be submitted in 
writing to the address listed in Sec.  748.2(c) of the

[[Page 369]]

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 BIS 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 BIS to verify the correct classification.
    (d) Review requests for encryption items. A Department of Commerce 
review of encryption items transferred from the U.S. Munitions List 
consistent with Executive Order 13026 of November 15, 1996 (3 CFR, 1996 
Comp., p. 228) and pursuant to the Presidential Memorandum of that date 
may be required to determine eligibility under License Exception ENC or 
for release from ``EI'' controls. Refer to Supplement No. 5 to part 742 
of the EAR for questions that provide initial guidance in determining 
whether you must submit an encryption review request for your item. 
Refer to Supplement No. 6 to part 742 of the EAR for a complete list of 
technical information that is required for encryption review requests. 
Refer also to Sec.  742.15(b) of the EAR for instructions regarding mass 
market encryption commodities and software. Refer to Sec.  740.17 of the 
EAR for the provisions of License Exception ENC.

[61 FR 12812, Mar. 25, 1996, as amended at 61 FR 68585, Dec. 30, 1996; 
62 FR 25461, May 9, 1997; 65 FR 62609, Oct. 19, 2000; 67 FR 38868, June 
6, 2002; 68 FR 35785, June 17, 2003]



Sec.  748.4  Basic guidance related to applying for a license.

    (a) License applicant. (1) Export transactions. Only a person in the 
United States may apply for a license to export items from the United 
States. The applicant must be the exporter, who is the U.S. principal 
party in interest with the authority to determine and control the 
sending of items out of the United States, except for Encryption License 
Arrangements (ELA) (see Sec.  750.7(d) of the EAR). See definition of 
``exporter'' in part 772 of the EAR.
    (2) Routed export transactions. The U.S. principal party in interest 
or the duly authorized U.S. agent of the foreign principal party in 
interest may apply for a license to export items from the United States. 
Prior to submitting an application, the agent that applies for a license 
on behalf of the foreign principal party in interest must obtain a power 
of attorney or other written authorization from the foreign principal 
party in interest. See Sec.  758.3(b) and (d) of the EAR.
    (3) Reexport transactions. The U.S. or foreign principal party in 
interest, or the duly authorized U.S. agent of the foreign principal 
party in interest, may apply for a license to reexport controlled items 
from one country to another. Prior to submitting an application, an 
agent that applies for a license on behalf of a foreign principal party 
in interest must obtain a power-of-attorney or other written 
authorization from the foreign principal party in interest, unless there 
is a preexisting relationship by ownership, control, position of 
responsibility or affiliation. See power-of-attorney requirements in 
paragraph (b)(2) of this section.
    (b) Disclosure of parties on license applications and the power of 
attorney. (1) Disclosure of parties. License applicants must disclose 
the names and addresses of all parties to a transaction. When the 
applicant is the U.S. agent of the

[[Page 370]]

foreign principal party in interest, the applicant must disclose the 
fact of the agency relationship, and the name and address of the agent's 
principal. If there is any doubt about which persons should be named as 
parties to the transaction, the applicant should disclose the names of 
all such persons and the functions to be performed by each in Block 24 
(Additional Information) of the BIS-748P Multipurpose Application form. 
Note that when the foreign principal party in interest is the ultimate 
consignee or end-user, the name and address need not be repeated in 
Block 24. See ``Parties to the transaction'' in Sec.  748.5.
    (2) Power of attorney or other written authorization--(i) 
Requirement. An agent must obtain a power of attorney or other written 
authorization from the principal party in interest, unless there is a 
preexisting relationship by ownership, control, position of 
responsibility or affiliation, prior to preparing or submitting an 
application for a license, when acting as either:
    (A) An agent, applicant, licensee and exporter for a foreign 
principal party in interest in a routed transaction; or
    (B) An agent who prepares an application for export on behalf of a 
U.S. principal party in interest who is the actual applicant, licensee 
and exporter in an export transaction.
    (ii) Application. When completing the BIS-748P Multipurpose 
Application Form, Block 7 (documents on file with applicant) must be 
marked ``other'' and Block 24 (Additional information) must be marked 
``748.4(b)(2)'' to indicate that the power of attorney or other written 
authorization is on file with the agent. See Sec.  758.3(d) for power of 
attorney requirement, and see also part 762 of the EAR for recordkeeping 
requirements.
    (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.
    (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 BIS when you submit your license 
application.
    (2) Licenses for items previously exported. You may not submit a 
license application to BIS 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 BIS.
    (g) Resubmission. If a license application is returned without 
action to you by BIS or your application represents a transaction 
previously denied by BIS, and you want to resubmit the license 
application, a new license application must be completed in accordance 
with

[[Page 371]]

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 BIS'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 BIS, 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 BIS. 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 part. The envelope 
containing your license application should be labeled ``Attn: Exporter 
Counseling Division, Emergency Handling Request Enclosed''.
    (3) Review of emergency handling requests. BIS views an emergency as 
an unforeseeable situation over which you have no control. On the day of 
receipt, BIS 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 BIS 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.

[61 FR 12812, Mar. 25, 1996, as amended at 65 FR 42569, July 10, 2000]



Sec.  748.5  Parties to the transaction.

    The following parties may be entered on the BIS-748P Multipurpose 
Application Form or electronic equivalent. The definitions, which also 
appear in part 772 of the EAR, are set out here for your convenience to 
assist you in filling out your application correctly.
    (a) Applicant. The person who applies for an export or reexport 
license, and who has the authority of a principal party in interest to 
determine and control the export or reexport of items. See Sec.  
748.4(a) and definition of ``exporter'' in part 772 of the EAR.
    (b) Other party authorized to receive license. The person authorized 
by the applicant to receive the license. If a person and address is 
listed in Block 15 of the BIS-748P Multipurpose Application Form or the 
electronic equivalent, the Bureau of Industry and Security will send the 
license to that person instead of the applicant. Designation of another 
party to receive the license does

[[Page 372]]

not alter the responsibilities of the applicant, licensee or exporter.
    (c) Purchaser. The person abroad who has entered into the 
transaction to purchase an item for delivery to the ultimate consignee. 
In most cases, the purchaser is not a bank, forwarding agent, or 
intermediary. The purchaser and ultimate consignee may be the same 
entity.
    (d) Intermediate consignee. The person that acts as an agent for a 
principal party in interest and takes possession of the items for the 
purpose of effecting delivery of the items to the ultimate consignee. 
The intermediate consignee may be a bank, forwarding agent, or other 
person who acts as an agent for a principal party in interest.
    (e) Ultimate consignee. The principal party in interest located 
abroad who receives the exported or reexported items. The ultimate 
consignee is not a forwarding agent or other intermediary, but may be 
the end-user.
    (f) End-user. The person abroad that receives and ultimately uses 
the exported or reexported items. The end-user is not a forwarding agent 
or intermediary, but may be the purchaser or ultimate consignee.

[65 FR 42569, July 10, 2000]



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 BIS-748P, Multipurpose 
Application (revised June 15, 1996 or later), and Form BIS-748P-A, Item 
Appendix, and Form BIS-748P-B, End-User Appendix. Facsimiles or copies 
of these forms are not acceptable. Instructions for preparing Form BIS-
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 BIS when 
processing applications, and by applicants when communicating with BIS 
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 BIS 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, 
BIS 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 BIS, 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 BIS, 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

[[Page 373]]

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 BIS. An authorization to submit applications 
electronically may be limited or withdrawn by BIS at any time. There are 
no prerequisites for obtaining permission to submit electronically or 
limitations in terms of country eligibility. However, BIS 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 BIS 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, BIS will 
provide you with language for a number of required certifications. Once 
you have completed the necessary certifications, you may be approved by 
BIS 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 BIS to submit applications electronically for the 
company will be assigned a personal identification number (``PIN'') 
telephonically by BIS. A PIN will be assigned to you only if your 
company has certified to BIS 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 BIS 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 BIS at (202) 482-0436. You must confirm this 
notification in writing within two business days to BIS at the address 
provided in Sec.  748.2(c) of this part.
    (B) Your company is responsible for immediately notifying BIS 
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, BIS 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 BIS 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

[[Page 374]]

PIN holder. Electronic submission of a license application will be 
considered complete upon the transmittal of the application to BIS or to 
an entity under contract to receive such applications for BIS.
    (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 BIS 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 BIS and 
follow the instructions provided by BIS. Your company should conduct 
periodic reviews to ensure that PINs are held only by individuals whose 
current responsibilities make it necessary and appropriate 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.
    (q) Exports of chemicals controlled for CW reasons by ECCN 1C350 to 
countries not listed in Supplement No. 2 to part 745 of the EAR.

[61 FR 12812, Mar. 25, 1996, as amended at 64 FR 27146, May 18, 1999]



Sec.  748.9  Support documents for license applications.

    (a) Exemptions. If you plan to submit a license application 
involving one of the following situations and your item is not a 
firearms item destined for an OAS member country, no support 
documentation is required. Simply submit the license application. If 
your item is a firearms item (Reason for Control identified as ``FC'' on 
the Commerce Control List, Supplement No. 1 to part 774 of the EAR) 
destined for an OAS member country, proceed to Sec.  748.14 of this 
part.
    (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

[[Page 375]]


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.
    (7) The license application is submitted to export or reexport 
software or technology.
    (8) The license application is submitted to export or reexport 
encryption items controlled under ECCNs 5A002, 5B002, 5D002 and 5E002.
    (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 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. Read the remainder of this section beginning 
with paragraph (c) of this section, then proceed to Sec.  748.11 of the 
EAR.
    (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:
    (A) 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
    (B) The End-User is not a Chinese entity.
    (ii) If no, your transaction may require a Statement by Ultimate 
Consignee and Purchaser. Read the remainder of this section beginning 
with

[[Page 376]]

paragraph (c) of this section, then proceed to Sec.  748.11 of the EAR.
    (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 applicant receives the manually-
signed original within 60 days from the date the original is signed by 
the ultimate consignee.
    (d) Exceptions to obtaining the required support document. BIS 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 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 BIS within one year from the 
date that the first license application supported by the same Import or 
End-Use Certificate was submitted to BIS.
    (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 BIS. The license application covering 
the transaction discloses all facts pertaining to the transaction.

[[Page 377]]

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 BIS. 
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 BIS 
of any change in the facts contained in the support document that comes 
to your attention.
    (h) Effect on license application review. BIS 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. BIS 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 BIS 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 BIS. If an 
applicant is requested by a foreign importer to return an unused or 
partially used Import or End-User Certificate submitted to BIS 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 BIS at the address listed in Sec.  748.2(c). BIS 
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, BIS will return the certificate to 
you. You

[[Page 378]]

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 
BIS. The copies must be retained on file along with your correspondence 
in accordance with the recordkeeping provisions in part 762 of the EAR.

[61 FR 12812, Mar. 25, 1996, as amended at 62 FR 25461, May 9, 1997; 63 
FR 50525, Sept. 22, 1998; 64 FR 2431, Jan. 14, 1999; 64 FR 17973, Apr. 
13, 1999]



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 BIS. 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 commodities on your license application are controlled for 
national security (NS) reasons, except for items controlled under ECCN 
5A002 or 5B002;
    (2) The ultimate destination is a country listed in Sec.  
748.9(b)(2) of this part.
    (3) Your transaction involves an export to the People's Republic of 
China (PRC) of a computer, regardless of dollar value, that requires a 
license application.
    (4) Your license application involves the export of commodities and 
software classified in a single entry on the CCL, the total value of 
which exceeds $5,000. Note that this $5,000 threshold does not apply to 
exports to the People's Republic of China of computers subject to the 
provisions of Sec.  748.10(b)(3).
    (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;
    (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 BIS 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 BIS 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

[[Page 379]]

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 BIS, through a U.S. 
Foreign Commercial Service office, or in a sealed envelope to you marked 
``To be opened by BIS 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 BIS 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 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. BIS 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 BIS, 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.

[61 FR 12812, Mar. 25, 1996, as amended at 62 FR 25461, May 9, 1997; 63 
FR 50525, Sept. 22, 1998; 64 FR 2431, Jan. 14, 1999; 65 FR 12923, Mar. 
10, 2000; 65 FR 60856, Oct. 13, 2000; 66 FR 5447, Jan. 19, 2001; 66 FR 
6465, Jan. 22, 2001; 67 FR 10615, Mar. 8, 2002]



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-

[[Page 380]]

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 BIS-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 BIS-711, only one Form BIS-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 BIS-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 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 BIS-711. Instructions on 
completing Form BIS-711 are contained in Supplement No. 3 to this part. 
The ultimate consignee and purchaser may sign a legible copy of Form 
BIS-711. It is not necessary to require your ultimate consignee and 
purchaser sign an original Form BIS-711, provided all information 
contained on the copy is legible.
    (e) Instructions for completing the statement on letterhead. 
Information in

[[Page 381]]

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 
two years 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.].
    (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 
Industry and Security, 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 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

[[Page 382]]

U.S. Export Administration Regulations.
    (iii) We understand that acceptance of this statement as a support 
document cannot be construed as an authorization by BIS 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.

[61 FR 12812, Mar. 25, 1996, as amended at 62 FR 25461, May 9, 1997; 65 
FR 42568, July 10, 2000]



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.
    (b) Reexports. If a support document would be required for an export 
from the United States, 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 BIS, 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, BIS 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

[[Page 383]]

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 BIS 
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 BIS. (i) Single transaction request. Where a single 
transaction is involved, BIS 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, BIS will advise 
you by letter.
    (ii) Multiple transactions request. Where multiple transactions are 
involved, BIS will advise you by letter of the action taken on the 
exception request. The letter will contain any conditions or 
restrictions that BIS 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 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, BIS 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.

[61 FR 12812, Mar. 25, 1996, as amended at 62 FR 25461, May 9, 1997]



Sec.  748.13  Delivery Verification (DV).

    (a) Scope. (1) BIS may request the licensee 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 BIS 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

[[Page 384]]

this instance, the licensee must send a letter to BIS 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 BIS, 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 BIS 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 BIS 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 BIS 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 BIS and, upon request, make available all information and 
records, including correspondence, regarding the attempt to obtain the 
DV.

[61 FR 12812, Mar. 25, 1996, as amended at 62 FR 25461, May 9, 1997]



Sec.  748.14  Import Certificate for firearms destined for Organization 
of American States member countries.

    (a) Scope. Consistent with the OAS Model Regulations, BIS requires 
from all OAS member countries an Import Certificate issued by the 
government of the importing country for items classified as ECCNs 0A984, 
0A986, or 0A987. For those OAS member countries that have not yet 
established or implemented an Import Certificate procedure, BIS will 
accept an equivalent official document (e.g., import license or letter 
of authorization) issued by the government of the importing country as 
supporting documentation for the export of firearms. This section 
describes the requirements for Import Certificates or official 
equivalents in support of license applications submitted to BIS for 
firearms items that are identified by ``FC Column 1'' in the ``License 
Requirements'' section of the Commerce Control List.
    (b) Import Certificate Procedure. An Import Certificate or 
equivalent official document must be obtained from the government of the 
importing OAS member country for firearms items classified as ECCNs 
0A984, 0A986, or 0A987. Except as provided by Sec.  748.9(a) of the EAR, 
the applicant must obtain and retain on file either the original or 
certified copy of the Import Certificate, or an original or certified 
copy of

[[Page 385]]

equivalent official document issued by the government of the importing 
country in support of any license application for export of firearms 
items classified as 0A984, 0A986, or 0A987. All the recordkeeping 
provisions of Sec.  762.2 of the EAR apply to this requirement. The 
applicant must clearly note the number and date of the Import 
Certificate or equivalent official document on all export license 
applications (BIS Form 748P, Multipurpose Application Form, Block 13) 
supported by that Certificate or equivalent official document. The 
applicant must also indicate in Block 7 of the application that the 
Certificate or equivalent official document has been received and will 
be retained on file. However, the applicant may submit an application 
before obtaining the original or certified copy of the Import 
Certificate, or the official original or certified copy of the 
equivalent document, provided that:
    (1) The applicant has received a facsimile of the Import Certificate 
or equivalent official document at the time the license application is 
filed; and
    (2) The applicant states on the application that a facsimile of the 
Import Certificate or equivalent official document has been received and 
that no shipment will be made against the license prior to obtaining the 
original or certified copy of the Import Certificate or the original or 
certified copy of the equivalent official document issued by the 
importing country and retaining it on file. Generally, BIS will not 
consider any license application for the export of firearms items if the 
application is not supported by an Import Certificate or its official 
equivalent. If the government of the importing country will not issue an 
Import Certificate or its official equivalent, the applicant must supply 
the information described in paragraphs (g)(2)(i) and (g)(2)(vi) through 
(viii) of this section on company letterhead.
    (c) Countries to which firearms controls apply. The firearms 
controls apply to all OAS member countries: Antigua and Barbuda, 
Argentina, the Bahamas, Barbados, Belize, Bolivia, Brazil, Canada, 
Chile, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El 
Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, 
Nicaragua, Panama, Paraguay, Peru, St. Kitts and Nevis, Saint Lucia, 
Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, the 
United States, Uruguay, and Venezuela.
    (d) Items/Commodities. An Import Certificate or equivalent official 
document is required for items controlled under Export Control 
Classification Numbers (ECCNs) 0A984, 0A986, or 0A987.
    (e) Use of the Import Certificate. An Import Certificate or 
equivalent official document can only be used to support one BIS Form-
748P, Multipurpose Application. The BIS Form-748P, Multipurpose 
Application, must include the same items as those listed on the Import 
Certificate or the equivalent official document.
    (f) Validity period. Import Certificates or equivalent official 
documents issued by an OAS member country will be valid for a period of 
one year or less. Although licenses generally are valid for two years, 
your ability to ship may be affected by the validity of the Import 
Certificate or equivalent official document.
    (g) How to obtain an Import Certificate for firearms items destined 
to OAS member countries. (1) Applicants must request that the importer 
(e.g., ultimate consignee or purchaser) obtain the Import Certificate or 
an equivalent official document from the government of the importing 
country, and that it be issued covering the quantities and types of 
items that the applicant intends to export. Upon receipt of the Import 
Certificate or its official equivalent, the importer must provide the 
original or a certified copy of the Import Certificate or the original 
or a certified copy of the equivalent official document to the 
applicant. The applicant shall obtain the required documents prior to 
submitting a license application, except as provided in paragraphs 
(b)(1) and (b)(2) of this section.
    (2) The Import Certificate or its official equivalent must contain 
the following information:
    (i) Applicant's name and address. The applicant may be either the 
exporter, supplier, or order party.
    (ii) Import Certificate Identifier/Number.

[[Page 386]]

    (iii) Name of the country issuing the certificate or unique country 
code.
    (iv) Date the Import Certificate was issued, in international date 
format (e.g., 24/12/98 (24 December 1998), or 3/1/99 (3 January 1999)).
    (v) Name of the agency issuing the certificate, address, telephone 
and facsimile numbers, signing officer name, and signature.
    (vi) Name of the importer, address, telephone and facsimile numbers, 
country of residence, representative's name if commercial or government 
body, citizenship, and signature.
    (vii) Name of the end-user(s), if known and different from the 
importer, address, telephone and facsimile numbers, country of 
residence, representative's name if commercial (authorized distributor 
or reseller) or government body, citizenship, and signature. Note that 
BIS does not require the identification of each end-user when the 
firearms items will be resold by a distributor or reseller if unknown at 
the time of export.
    (viii) Description of the items approved for import including a 
technical description and total quantity of firearms, parts and 
components, ammunition and parts.

    Note to paragraph (g)(2)(viii): You must furnish the consignee with 
a detailed technical description of each item to be given to the 
government for its use in issuing the Import Certificate. For example, 
for shotguns, provide the type, barrel length, overall length, number of 
shots, the manufacturer's name, the country of manufacture, and the 
serial number for each shotgun. For ammunition, provide the caliber, 
velocity and force, type of bullet, manufacturer's name and country of 
manufacture.

    (ix) Expiration date of the Import Certificate in international date 
format (e.g., 24/12/98) or the date the items must be imported, 
whichever is earlier.
    (x) Name of the country of export (i.e., United States).
    (xi) Additional information. Certain countries may require the 
tariff classification number, by class, under the Brussels Convention 
(Harmonized Tariff Code) or the specific technical description of an 
item. For example, shotguns may need to be described in barrel length, 
overall length, number of shots, manufacturer's name and country of 
manufacture. The technical description is not the Export Control 
Classification Number (ECCN).
    (h) Where to obtain Import Certificates. See Supplement No. 6 to 
this part for a list of the OAS member countries' authorities 
administering the Import Certificate System.
    (i) Alterations. After an Import Certificate or official equivalent 
document is used to support the issuance of a license, no corrections, 
additions, or alterations may be made on the Certificate by any person. 
If you desire to explain any information contained on the Import 
Certificate or official equivalent document, you may attach a signed 
statement to the Import Certificate or official equivalent.
    (j) Request for return of Import Certificates. A U.S. exporter may 
be requested by a foreign importer to return an unused Import 
Certificate. Refer to Sec.  748.9(j) of this part for procedures and 
recordkeeping requirements for returning an Import Certificate retained 
by the applicant.

[64 FR 17973, Apr. 13, 1999]

 Supplement No. 1 to Part 748--BIS-748P, BIS-748P-A; Item Appendix, and 
  BIS-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. Enter only one typed 
line of text per Block or line. 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., 022-
358-0-123456F). If you are completing this form to request 
classification of your item, you must complete Blocks 1 through 5, 14, 
22 (a), (b), (c), (d), and (i), 24, and 25 only.
    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

[[Page 387]]

the Box labeled ``Export'' with an (X). Reexport. If the items are 
located outside the United States, mark the Box labeled ``Reexport'' 
with an (X). Classification. If you are requesting BIS to classify your 
item against the Commerce Control List (CCL), mark the Box labeled 
``Classification Request'' with an (X). Encryption Review. If you are 
requesting encryption review under License Exception ENC (Sec.  740.17 
of the EAR) or ``mass market'' encryption provisions (Sec.  742.15(b)(2) 
of the EAR), mark the Box labeled ``Classification Request'' with an 
(X). Special Comprehensive License. If you are submitting a Special 
Comprehensive License application in accordance with the procedures 
described in part 752 of the EAR, mark the Box labeled ``Special 
Comprehensive License'' with an (X).
    Block 6: Documents 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 block 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 (RWA), provide the Application 
Control Number. This does not apply to applications returned without 
being registered.
    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 modification that is not excepted in Sec.  750.7(c) of the EAR, 
to the license as originally approved, enter the original license number 
and complete Blocks 12 through 25, where applicable. Include 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. Provide a complete street address. 
P.O. Boxes are not acceptable. 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 Employee 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 BIS 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 complete name 
and address. If your proposed transaction does not involve a separate 
purchaser, leave Block 16 blank.
    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, enter the complete name and address. If your proposed 
transaction does not involve use of an intermediate consignee, enter 
``None''. If your proposed transaction involves more than one 
intermediate consignee, provide the same information in Block 24 for 
each additional intermediate consignee.
    Block 18: Ultimate Consignee. This Block must be completed if you 
are submitting a license application. Enter the ultimate consignee's 
complete name, street address, city,

[[Page 388]]

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 item for the end-
use designated in Block 21. Refer to Sec.  748.5(e) of this part for a 
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-user and end-use is 
clearly identified in Block 21 or in the 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. 
Provide a complete street address, P.O. Boxes are not acceptable. 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, use Form BIS-748P-B to identify each 
additional end-user. 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. Provide a complete street address, 
P.O. Boxes are not acceptable. 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.
    Block 21. Specific End-Use: This Block must be completed if you are 
submitting a license application. 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 BIS-748P-A or B. Be specific--vague descriptions 
such 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). If you wish to export, reexport, or have BIS classify more than one 
item, use Form BIS-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 BIS to classify your item, provide a recommended classification 
for the item in this Block.
    (b) CTP. You must complete this Block only 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.
    (c) Model Number. Enter the correct model number for the item.
    (d) CCATS Number. If you have received a classification for this 
item from BIS, provide the CCATS number shown on the classification 
issued by BIS.
    (e) Quantity. Identify the quantity to be exported or reexported, in 
terms of the ``Unit'' identified for the ECCN entered in Block 22(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 BIS. If an item 
is licensed in terms of ``$ value'', the unit of quantity commonly used 
in the trade must also be shown on the license application. This Block 
may be left blank on license applications only if the ``Unit'' for the 
ECCN entered in Block 22(a) is shown as ``N/A'' on the CCL.
    (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 BIS 
classify, if different from the applicant.
    (j) Technical Description. Provide a description of the item(s) you 
wish to export, reexport, or have BIS classify. Provide details when 
necessary to identify the specific

[[Page 389]]

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 of 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 from the original 
application.
    If you are requesting BIS 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 have not identified a recommended classification in Block 
22(a), you must state the reason you cannot determine the appropriate 
classification, identifying anything in the regulations that you believe 
precluded you from determining the correct classification.
    If additional space is necessary, use Block 24 on Form BIS-748P-A or 
B.
    Block 25: You, as the applicant or duly authorized agent of the 
applicant, must manually sign in this Block. Rubber-stamped or 
electronic signatures are not acceptable. 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. Type both your name and 
title in the space provided.

[61 FR 12812, Mar. 25, 1996, as amended at 62 FR 25462, May 9, 1997; 68 
FR 35786, June 17, 2003]

  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 BIS-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 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.

[[Page 390]]

    (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 BIS;
    (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.  740.12(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.  740.9(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 
described in Sec.  742.3 of the EAR, or any other item (except those 
controlled for short supply reasons) where the item is intended for a 
nuclear end-use, prior to submitting a license application, you must 
obtain a signed written statement from the end-user 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 BIS 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 7, 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 
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.

[[Page 391]]

    (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 BIS 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;
    (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.
    (i) Parts, components, and materials incorporated abroad into 
foreign-made products. BIS 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 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

[[Page 392]]

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):
    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

[[Page 393]]

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), upon request, you must provide BIS a copy of the written 
letter from the ultimate consignee assuring that, unless prior 
authorization is obtained from BIS, the consignee will not knowingly 
reexport the technology to any destination, or export the direct product 
of the technology, directly or indirectly, to a country listed in 
Country Group D:1 or E:2 (see Supplement No. 2 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 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

[[Page 394]]

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 BIS, 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 Industry and Security 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 Industry and Security.
    (q) Chemicals controlled for CW reasons under ECCN 1C350. In 
addition to any supporting documentation required by part 748, you must 
also obtain from your consignee an End-Use Certificate for the export of 
chemicals controlled for CW reasons by ECCN 1C350 (except 1C350.a.20., 
a.24, and a.31) to non-States Parties (destinations not listed in 
Supplement No. 2 to part 745 of the EAR). See Sec.  745.2 of the EAR. In 
addition to the End-Use Certificate, you may still be required to obtain 
a Statement by Ultimate Consignee and Purchaser (Form BIS-711P) as 
support documentation. Consult Sec. Sec.  748.9 and 748.11 of the EAR.
    (r) Encryption review requests. Enter, in Block 9 (Special Purpose) 
of the BIS-748P, ``License Exception ENC'' if you are submitting an 
encryption review request for License Exception ENC (Sec.  740.17 of the 
EAR) or ``mass market encryption'' if you are submitting an encryption 
review request under the mass market encryption provisions (Sec.  
742.15(b)(2) of the EAR). If you seek an encryption review for another 
reason, enter ``encryption--other''.

[61 FR 12812, Mar. 25, 1996, as amended at 61 FR 64285, Dec. 4, 1996; 62 
FR 25462, May 9, 1997; 63 FR 42229, Aug. 7, 1998; 64 FR 27146, May 18, 
1999; 64 FR 47105, Aug. 30, 1999; 68 FR 35786, June 17, 2003]

 Supplement No. 3 to Part 748--BIS-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.)

[[Page 395]]

    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 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.

[61 FR 12812, Mar. 25, 1996, as amended at 65 FR 42568, July 10, 2000]

     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, Strategic Trade Policy and Operations,         IC/DV
                                     Industry & Procurement Infrastructure Division,
                                     Department of Defence, Campbell Park 4-1-53, Canberra
                                     ACT 2600 Phone: +61 (0)2 6266 3717, Fax: +61 (0)2 6266
                                     2997
Austria...........................  Bundesministerium fur Handel Gewerbe und Industrie       IC/DV
                                     Landstr. Haupstr. 55-57, Vienna 1031
Belgium...........................  Ministere Des Affaires Economiques, Administration Des   IC/DV
                                     Relations Economiques Rue General Leman, 60 1040
                                     Bruxelles Phone: 02/206.58.16, Fax: 02/230.83.22
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: 651-97-355,    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 Bhawan,  Indian IC
                                     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 No.  Indian IC
                                     224, ``B'' Wing Sena Bhawan, New Delhi 110011
                                    For computers and related electronic items:
                                     Department of Electronics, Lok Nayak Bhawan, New Delhi  Indian IC
                                     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 or: Dogana Italiana (of the town where import
                                     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

[[Page 396]]

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


[61 FR 12812, Mar. 25, 1996, as amended at 62 FR 25463, May 9, 1997; 64 
FR 47105, Aug. 30, 1999]

   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 BIS 
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 BIS-
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

[[Page 397]]

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 BIS 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 BIS-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. (see 10 CFR part 110). You will need to submit 
in quadruplicate a completed Form BIS-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 BIS-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 BIS-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 Industry and Security, 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 BIS 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 BIS 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 BIS. 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, BIS 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

[[Page 398]]

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 BIS 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 BIS 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 BIS at the address listed 
in paragraph (a)(2)(i) of this supplement.
    (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 BIS is required for 
the purchaser or transferee to resell or again transfer the items. 
However, where BIS 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 BIS.
    (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 BIS together with an explanatory letter giving the U.S. 
International Import Certificate number, date issued, and location of 
issuing office. BIS 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 BIS 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 BIS 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.

[[Page 399]]

    (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.  740.9(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 
BIS-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 Industry and Security.
    (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 
BIS 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 BIS-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 BIS; 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 BIS-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 BIS-647P must be 
presented, in duplicate, to a U.S. customs office. The U.S. customs 
office will certify Form BIS-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 BIS-
647P together with an explanatory letter requesting a Delivery 
Compliance Notice, to BIS at the address listed in (a)(2)(i) of this 
supplement.

[[Page 400]]

    (ii) BIS 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 BIS. 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 BIS 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) BIS 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 ``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 BIS-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; 62 
FR 25463, May 9, 1997]

 Supplement No. 6 to Part 748--Authorities Issuing Import Certificates 
                Under the Firearms Convention [Reserved]

[Status of Convention as of April 13, 1999 had not entered into force.]

[64 FR 17974, Apr. 13, 1999]



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 BIS 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. 
13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 
3 CFR, 2001 Comp., p. 783; Notice of August 7, 2003, 66 FR 47833, August 
11, 2003.

    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 Industry and 
Security's (BIS) process for reviewing your application for a license 
and the applicable processing times for various types of applications. 
Information related to the issuance, denial, revocation, or suspension 
of a license or license application is provided along with the 
procedures on obtaining a duplicate or replacement license, the transfer 
of a license and shipping tolerances available on licenses. This part 
also contains instructions on obtaining the status of any pending 
application.

[62 FR 25463, May 9, 1997]



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

[[Page 401]]

(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 BIS and other government 
agencies and departments.

    (a) Review by BIS. In reviewing specific license applications, BIS 
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, BIS will consider the reliability of 
each party to the transaction and review any available intelligence 
information. To the maximum extent possible, BIS will make licensing 
decisions without referral of license applications to other agencies, 
however, BIS 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, BIS 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 BIS 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 and with 
controls related to encryption items;
    (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; 
63 FR 50525, Sept. 22, 1998]



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 BIS'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 BIS. Registration is defined as the point at 
which the application is entered into BIS's electronic license 
processing system. If your application contains deficiencies that 
prevent BIS from registering your application, BIS will attempt to 
contact you to correct the deficiencies, however, if BIS 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

[[Page 402]]

the returned license application. If a license application is 
registered, but BIS 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. BIS may request 
applicants to 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 BIS 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
    (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;

[[Page 403]]

    (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, BIS 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.
    (d) Review by other agencies and/or interagency groups. (1) Within 
10 days of receipt of a referral the reviewing agency must advise BIS of 
any information not contained in the referral as described in paragraph 
(c)(5) of this section. BIS 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 BIS 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

[[Page 404]]

deemed to have no objection to the final decision of BIS.
    (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 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.

[61 FR 12829, Mar. 25, 1996, as amended at 62 FR 25463, May 9, 1997]



Sec.  750.5  Status of pending applications and other requests.

    (a) Information available. You may contact BIS 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 BIS'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 application pending at BIS. Press ``0'' on your keypad for online 
instructions or ``9'' for the letter ``Z''. 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 BIS'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.

[61 FR 12829, Mar. 25, 1996, as amended at 62 FR 25463, May 9, 1997]

[[Page 405]]



Sec.  750.6  Denial of license applications.

    (a) Intent to deny notification. If BIS intends to deny your license 
application, BIS 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 BIS to reconsider the license application;
    (5) The name of the BIS 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, 
BIS 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 BIS, a license is issued as described in paragraph (b) of 
this section.
    (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) or Automated 
Export System (AES) record and any other export control documents, and 
in communicating with the Department of Commerce concerning the license.
    (c) Changes to the license. (1) The following non-material changes 
do not require submission of a ``Replacement'' license or any other 
notification to BIS. (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):
    (i) Decrease in unit price or total value;
    (ii) Increase in price or quantity if permitted under the shipping 
tolerances in Sec.  750.11 of this part;
    (iii) 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.;
    (iv) 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;
    (v) 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;
    (vi) 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:
    (A) 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;

[[Page 406]]

    (B) The shipment is moving on a through bill of lading;
    (C) 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;
    (D) The carrier retains custody of the shipment until it is 
delivered to the ultimate consignee; and
    (E) The original bill of lading or air waybill first issued at the 
port of export is delivered with the shipment to the ultimate consignee;
    (vii) Change in address of purchaser or ultimate consignee if the 
new address is located within the same country shown on the license; or
    (viii) 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.
    (2)(i) For Encryption Licensing Arrangements issued by BIS for 
exports and reexports of items controlled under ECCN 5A002, 5B002, and 
5D002, and for encryption commodities and software 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, you must by letter to BIS a request 
for approval of any additional country of destination.
    (ii) Letters requesting changes pursuant to paragraph (c)(2)(i) of 
this section should be made by the license holder on company letterhead, 
clearly identifying the original license number and the requested 
change. In addition, requests for changes to State licenses or other 
authorizations must be accompanied by a copy of the original State 
license or authorization. The requested changes may not take effect 
until approved in writing by BIS. Send requests for changes to the 
following address: Office of Strategic Trade, Bureau of Industry and 
Security, U.S. Department of Commerce, Room 2705, 14th Street and 
Pennsylvania Ave., NW, Washington, DC 20230, Attn: Encryption Division.
    (d) Responsibility of the licensee. The person to whom a license is 
issued is the licensee. In export transactions, the exporter must be the 
licensee, and the exporter-licensee is responsible for the proper use of 
the license, and for all terms and conditions of the license, except to 
the extent that certain terms and conditions are directed toward some 
other party to the transaction. In the case of Encryption License 
Agreements (ELA), the licensee may not necessarily be the exporter or 
reexporter. In this case, the authorized user of the ELA is responsible 
for proper use of the license, and for all terms and conditions of the 
license, except to the extent that certain terms and conditions are 
directed toward some other party to the transaction. In reexport or 
routed export transactions, a U.S. agent acting on behalf of a foreign 
principal party in interest may be the licensee; in these cases, both 
the agent and the foreign principal party in interest, on whose behalf 
the agent has acted, are responsible for the use of the license, and for 
all terms and conditions of the license, except to the extent that 
certain terms and conditions are directed toward some other party to the 
transaction. It is the licensee's responsibility to communicate the 
specific license conditions to the parties to whom those conditions 
apply. In addition, when required by the license, the licensee is 
responsible for obtaining written acknowledgment(s) of receipt of the 
conditions from the party(ies) to whom those conditions apply.
    (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.
    (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

[[Page 407]]

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 BIS. Exceptions from the 24-month validity period include, license 
applications reviewed and approved as an ``emergency'' (see Sec.  748.4 
(h) 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. BIS 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.  
748.4(h) 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, BIS 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.
    (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.

[[Page 408]]

    (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 BIS 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 BIS 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) Terminating license conditions. Exporters or reexporters who 
have shipped under licenses with conditions that would not apply to an 
export under a License Exception or if no license was required, and 
foreign consignees who have agreed to such conditions, are no longer 
bound by these conditions when the licensed items become eligible for a 
License Exception or can be exported or reexported without a license. 
Items that become eligible for a License Exception are subject to the 
terms and conditions of the applicable License Exception and to the 
restrictions in Sec.  740.2 of the EAR. Items that become eligible for 
export without a license remain subject to the EAR and any export, 
reexport, or disposition of such items may only be made in accordance 
with the requirements of the EAR. Termination of license conditions does 
not relieve an exporter or reexporter of its responsibility for 
violations that occurred prior to the availability of a License 
Exception or prior to the removal of license requirements.
    (j) 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; 62 
FR 25463, May 9, 1997; 63 FR 50525, Sept. 22, 1998; 64 FR 47106, Aug. 
30, 1999; 65 FR 42569, July 10, 2000; 68 FR 50473, Aug. 21, 2003]



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. BIS'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 BIS 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 BIS 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 BIS 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 BIS 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, BIS 
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 BIS at the address listed in

[[Page 409]]

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 BIS. Note that if 
shipment was made against the original license, those shipments must 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. BIS 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 BIS. BIS 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. BIS 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 BIS, 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

[[Page 410]]

    (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 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 BIS, you must retain the license(s) pending notification by 
BIS of the action taken. If the request is approved, you must forward 
the license(s) to the transferee and the validated letter received from 
BIS authorizing the transfer. If the transfer request is not approved, 
the license(s) must either be returned to BIS 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 BIS for additional information, after obtaining 
the necessary information you may resubmit your request.

[61 FR 12829, Mar. 25, 1996, as amended at 62 FR 25463, May 9, 1997]



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

[[Page 411]]

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 $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.

[[Page 412]]

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.
752.17 BIS mailing addresses.

Supplement No. 1 to Part 752--Instructions for Completing Form BIS-748P, 
          Multipurpose Application for Requests for Special 
          Comprehensive Licenses
Supplement No. 2 to Part 752--Instructions for Completing Form BIS-748P-
          A, Item Annex
Supplement No. 3 to Part 752--Instructions for Completing Form BIS-752, 
          Statement by Consignee in Support of Special Comprehensive 
          License
Supplement No. 4 to Part 752--Instructions for Completing Form BIS-752-
          A, Reexport Territories
Supplement No. 5 to Part 752--Instructions for Completing Form BIS-748-B 
          End-User Appendix

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
13020, 61 FR 54079, 3 CFR, 1996 Comp. p. 219; E.O. 13222, 66 FR 44025, 3 
CFR, 2001 Comp., p. 783; Notice of August 7, 2003, 66 FR 47833, August 
11, 2003.

    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 736 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 Industry and 
Security (BIS) 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 BIS-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. BIS 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), BIS will provide 
you guidance on which elements you must implement.

[61 FR 12835, Mar. 25, 1996, as amended at 62 FR 25463, May 9, 1997]



Sec.  752.2  Eligible activities.

    (a) Possible authorizations. Under the SCL, BIS 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:

[[Page 413]]

    (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 BIS under the 
SCL on a case-by-case basis.
    (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, 1C991, 
1E001, 1E350, 1E351, 2B352, 2E001, 2E002, and 2E301 on the CCL 
controlled for CB reasons;
    (3) Items controlled by ECCNs 1C350, 1C995, 1D390, 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) Items controlled for EI reasons on the CCL;
    (6) Maritime (civil) nuclear propulsion systems or associated design 
or production software and technology identified in Sec.  744.5 of the 
EAR;
    (7) Communications intercepting devices controlled by ECCN 5A980 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 BIS 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.

[61 FR 12835, Mar. 25, 1996, as amended at 61 FR 54543, Oct. 21, 1996; 
62 FR 25463, May 9, 1997; 63 FR 42229, Aug. 7, 1998; 63 FR 50525, Sept. 
22, 1998; 64 FR 13339, Mar. 18, 1999]



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 BIS 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, BIS must determine your reliability 
as a potential SCL holder. BIS 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 BIS at the 
address, phone, or telefacsimile

[[Page 414]]

numbers included in Sec.  752.17 of this part.
    (2) Criteria for determining eligibility. BIS 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.
    (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 BIS pre-license checks, or extensive experience as a 
consignee under any license issued by BIS;
    (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 BIS to determine the 
reliability and eligibility of a proposed consignee. BIS may, based upon 
any negative information on the proposed consignees, deny a proposed 
consignee.
    (c) Step Three: Prepare your documentation. Complete Form BIS-748P, 
Multipurpose Application, Form BIS-748P-A, Item Appendix, Form BIS-748P-
B, End-User Appendix, an ICP, a comprehensive narrative statement, Form 
BIS-752, Statement by Consignee in Support of Special Comprehensive 
License, Form BIS-752-A, Reexport Territories, and all applicable 
certifications. Submit this documentation to BIS at one of the addresses 
included in Sec.  752.17 of this part.
    (1) Form BIS-748P, Multipurpose Application, and Form BIS-748P-A, 
Item Appendix. You must complete Form BIS-748P and Form 748P-A according 
to the instructions found in Supplement Nos. 1 and 2 of this part.
    (2) Form BIS-748P-B, End-User Appendix. You must identify end-users 
on Form BIS-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 BIS, an ICP that incorporates all applicable elements 
listed in Sec.  752.11 of this part and any additional elements as 
required by BIS 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

[[Page 415]]

that you and your consignees must implement.
    (5) Form BIS-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 BIS-752 for each 
proposed consignee on your SCL application. See Supplement No. 3 to this 
part for instructions on completing Form BIS-752. Form BIS-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.
    (6) Form BIS-752-A, Reexport Territories. You must complete Form 
BIS-752-A, and attach it to the appropriate Form BIS-752, whenever 
Blocks 8B, 8C, 8E, and/or 8F are selected on Form BIS-752. See the 
instruction found in Supplement No. 3 to this part. Form BIS-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 BIS-752. Each consignee 
must certify that:
    (i) They will implement, upon approval of the SCL by BIS, an ICP 
that incorporates all applicable elements listed in Sec.  752.11 of this 
part and any additional elements as required by BIS 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 BIS, 
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 BIS-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 BIS-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 Industry and 
Security.

    (ii) Chemicals and chemical equipment certification. If you are 
requesting authority to export chemicals or chemical equipment eligible 
for the SCL, you must obtain a signed written statement on company 
letterhead from the proposed consignee(s) and end-user(s) (except those 
located in Country Group A:3) (see Supplement No. 1 to part 740 of the 
EAR) certifying the following:

    No chemicals or chemical 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 Industry and Security, and in no case will the 
items be retransferred, resold, or reexported to a party who is not the 
end-user.

    (iii) Nuclear nonproliferation certification. If you are requesting 
the export or reexport under the EAR of items controlled for nuclear 
nonproliferation reasons described in Sec.  744.2(a) of the EAR, prior 
to submitting an SCL application, you must obtain a signed written 
statement on company letterhead from the proposed consignee(s) and end-
user(s) 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 BIS prior to 
transferring or reexporting the items, unless they

[[Page 416]]

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; 62 
FR 25463, May 9, 1997]



Sec.  752.6  Reexports.

    (a) Authorized reexports. All consignees may reexport items without 
approval from BIS under any one of the 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 BIS through validation of 
Form BIS-752 and/or Form BIS-752-A according to the terms stated on the 
Form BIS-752 or BIS-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 BIS:
    (1) Transferring, reselling, or reexporting under your SCL any 
chemicals or chemical equipment 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 BIS. 
Either the SCL holder or the consignee through the SCL holder must 
submit the sourcing request for reexport of items on Form BIS-752.

[61 FR 12835, Mar. 25, 1996, as amended at 62 FR 25464, May 9, 1997]



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 BIS-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 
or Automated Export System record 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).''

[61 FR 12835, Mar. 25, 1996, as amended at 68 FR 50473, Aug. 21, 2003]

[[Page 417]]



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 BIS. To approve an SCL, BIS 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, BIS 
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.
    (b) Elements of review. To permit BIS to make such judgments, BIS 
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 BIS 
cannot verify that an appropriate ICP will be implemented upon approval 
of the SCL by BIS, 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. BIS 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, BIS may review the application for up to two weeks to 
determine whether the SCL application is complete. When all 
documentation requirements are met, BIS 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 BIS at least 30 days prior to the expiration of your SCL. If 
approved, Form BIS-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 BIS-748P by completing Blocks 
1, 2, 3, and 4. In addition, mark ``Special Comprehensive License'' in 
Block 5, place an ``x'' in ``Letter of Explanation'' in Block 6, and 
mark ``other'' in Block 8. 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 BIS-748P and a statement on your 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

[[Page 418]]

this part for procedures on changed circumstances).
    (3) Support documentation--(i) General information. BIS will 
validate all approved support documentation with the Department of 
Commerce seal and date of validation.
    (ii) Form BIS-752, Form BIS-752-A, and Form BIS-748P-B. With the 
approved SCL, you will receive two validated copies of each approved 
Form BIS-752, Statement by Consignee in Support of Special Comprehensive 
License and, if applicable, Form BIS-752-A, Reexport Territories, and 
Form BIS-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 BIS-752 that includes each of the following elements:
    (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. BIS 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 BIS. 
Such special conditions will be listed on your SCL or in a letter from 
BIS 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 BIS 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) BIS 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 BIS-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 BIS-752-A.
    (c) Return without action. BIS 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. 
BIS may return your entire application or merely documents pertaining to 
a specific consignee request.

[61 FR 12835, Mar. 25, 1996, as amended at 62 FR 25464, May 9, 1997]



Sec.  752.10  Changes to the SCL.

    (a) General information. Certain changed circumstances regarding the

[[Page 419]]

SCL require prior approval from BIS before you make such changes, while 
others require only notification to BIS. Changes and notifications of 
license holder information must be initiated by submitting Form BIS-
748P. Changes and notifications of consignee information must be 
initiated by submitting Form BIS-752.
    (b) Changes requiring prior written approval from BIS. The following 
circumstances require prior written approval by BIS. Such requests must 
be submitted by the SCL holder, and changes are not effective until BIS 
approves the request. Upon approval of a change described in this 
paragraph, BIS 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 BIS Form 
BIS-748P, Multipurpose Application, for any change in the name of the 
SCL holder company. Complete Blocks 1, 2, 3, and 4. Mark ``Special 
Comprehensive License'' in Block 5, and ``other'' in Block 8. In Block 
9, include your SCL number. Briefly indicate the purpose of the change 
in Block 24 (i.e., a change in company name). Enter the new information 
in the relevant Blocks, and complete Block 25. The SCL holder must send 
a copy of the validated Form BIS-748P to each approved consignee, and 
advise them to attach the copy of the validated form to their validated 
Form BIS-752.
    (2) Change in consignee name or address. You must submit to BIS Form 
BIS-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 3, mark 
``change an existing consignee'' and provide the new consignee 
information in Block 4. In Block 9, explain change of address from 
``Address A'' to ``Address B''. Also, complete Block 10 and the SCL 
holder signature Block information.
    (3) Addition of new consignee. You must submit to BIS Form BIS-752 
for requests to add consignees to an SCL. Complete Form BIS-752 in 
accordance with the instruction in Supplement No. 3 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 
BIS-752 is not required if the proposed new consignee is a foreign 
government agency and the items will not be reexported. If Form BIS-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 BIS Form BIS-
752 and Form BIS-752-A to add a country to a consignee's approved 
reexport territory. Upon approval of change in reexport territory, BIS 
will return to the SCL holder two validated copies of Form BIS-752 and 
Form BIS-752-A, Reexport Territories, along with any special conditions 
that may have been imposed.
    (i) Form BIS-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 Block 10 and the SCL holder 
signature block information.
    (ii) Form BIS-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, BIS will send you a 
validated Form BIS-748P and, if applicable, Form BIS-748P-A. The SCL 
holder must send a copy of each validated form to all applicable 
consignees and attach a copy to their Form BIS-752.
    (i) Adding one item. You must submit to BIS Form BIS-748P to request 
the addition of a single item to your SCL. Complete Blocks 1, 2, 3, and 
4. Mark an ``x'' in the ``Special Comprehensive License'' box in Block 
5, and ``other'' in Block 8. Include your SCL number in Block 9. In 
Block 24, enter ``add ECCN''. Complete items (a) and (j) in Block 22 and 
in Block 25.

[[Page 420]]

    (ii) More than one item. You must submit to BIS Form BIS-748P and 
Form BIS-748P-A to request to add more than one item to your SCL. 
Complete Form BIS-748P according to the instructions in paragraph 
(b)(5)(i) of this section. In Block 24, insert the phrase ``add ECCNs on 
attached From BIS 748P-A. Complete Block 1 on Form BIS-748P-A by 
including the ``Application Control Number'' (found on Form BIS-748P). 
Complete Block 21 and 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 add end-users. You must submit to BIS Form BIS-752 
and Form BIS-748P-B to add or change end-users to consignee 
authorizations. When you request multiple ``types of requests'' (i.e., 
additions or changes) on a single Form BIS-752; you must specify in 
Block 9, the type of request for each end-user. Example: end-user XXX is 
to be ``added'' and end-user AAA is to be ``changed'' from ``end-user 
AAA'' to ``end-user ABA''.
    (i) Form BIS-752. On Form BIS-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 insert the phrase ``To add an end-
user'' or the phrase ``To change an end-user''. Complete Block 10 and 
include the SCL holder signature block information.
    (ii) Form BIS-748P-B. On Form BIS-748-B, complete Blocks 1 and 19. 
In Block 21, cite the end-user requirement or condition (i.e., end-user 
XXX is requested in compliance with Sec.  752.5(c)(8)(ii) of this part, 
which requires prior authorization to reexport chemicals under the SCL). 
Also, list the items (by ECCN and by description) that each end-user 
will receive and for what purpose, if approved by BIS.
    (c) Changes that do not require prior approval from BIS. The 
following changes regarding your SCL do not require prior approval from 
BIS, however, such changes must be submitted on the appropriate forms no 
later than 30 days after the change has occurred. BIS 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 BIS Form BIS-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 ``other'' in Block 8. In Block 9, include your SCL number. 
Briefly indicate the purpose of the change in Block 24. Enter the new 
information in the relevant Blocks. Complete Block 25. The SCL holder 
must send a copy of the validated Form BIS-748P to each approved 
consignee, and advise each approved consignee to attach the copy of the 
validated form to their validated Form BIS-752.
    (2) Deletion of consignees. You must submit to BIS Form BIS-752 if 
you remove a consignee from your SCL. Complete Block 3.C. Indicate your 
consignee number in Block 4 and your SCL case number in Block 5. Explain 
the reason for the action in Block 9. Complete Block 10 and the SCL 
holder signature information. 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 BIS of changes in ownership 
or control by submitting to BIS Form BIS-748P. Complete Blocks 1, 2, 3 
and 4, mark ``Special Comprehensive License'' in Block 5. Mark and ``x'' 
in ``other'' in Block 8 and indicate the SCL number in Block 9. Include 
the SCL holder information number 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 BIS of changes in ownership or 
control of the consignee company by submitting to BIS Form BIS-752. 
Complete Block 1. Mark and ``x'' in ``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 
Block 10 and the SCL holder signature block information.

[[Page 421]]

    (iii) Transfers and SCLs after control changes. Note that under 
Sec.  750.10(a) of the EAR you may not transfer a license--including a 
Special Comprehensive License--except with the prior written approval of 
BIS. In addition, BIS reserves the right to modify, revoke, or suspend 
an SCL in the event of a change in control of the previously approved 
SCL holder or consignee(s). In reviewing requests to transfer an SCL or 
consignee authority under an SCL and in reviewing changes in control of 
an SCL holder or approved consignee, BIS will consider the reliability 
of the new parties.
    (4) Remove reexport territories. If you remove a country from a 
consignee's approved reexport territory, you must submit to BIS Form 
BIS-752 and Form BIS-752-A. You cannot add and delete countries on the 
same forms. Upon review of the change in reexport territory, BIS will 
return to the SCL holder two validated copies of Form BIS-752 and Form 
BIS-752-A.
    (i) Form BIS-752. Complete Block 1. 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. Complete Block 
10 and the SCL holder signature block information.
    (ii) Form BIS-752-A. Complete Blocks 1, 2, 3, and 5. Mark each 
country that you are removing from the reexport territory with an ``x''. 
Mark an ``x'' in ``Other Specify'' and insert ``delete''.
    (5) Remove items from your SCL. The following procedures apply if 
you remove an item from your SCL. After review of the change by BIS, BIS 
will send you a validated Form BIS-748P and Form BIS-748P-A, if 
applicable. The SCL holder must send a copy of each validated form to 
all applicable consignees and attach a copy to their BIS-752.
    (i) Removing one item. You must submit to BIS Form BIS-748P if you 
remove a single item from your SCL. Complete Blocks 1, 2, 3 and 5. Mark 
``Special Comprehensive License'' in Block 5 and mark ``other'' in Block 
8. Include your SCL number in Block 9. State ``delete ECCN'' in Block 
24. Complete items (a) and (j) in Block 22 and Block 25.
    (ii) Removing more than one item. You must submit to BIS Form BIS-
748P and Form BIS 748P-A if you remove more than one item from your SCL. 
Complete Form BIS-748P according to the instructions in paragraph 
(a)(5)(i) of this section, except in Block 24, state ``delete ECCNs on 
attached BIS-748P-A''. Complete Form BIS 748P-A by including the 
``application control number'' (found on Form BIS-748P) in Block 1. 
Complete 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 BIS Form BIS-
752 if you remove end-users from consignee authorizations. (Use Form 
BIS-748P-B, if additional space is needed.) After review by BIS, BIS 
will return to the SCL holder two validated copies of Form BIS-752 and 
Form BIS-748P-B, which will include any special instructions that may be 
necessary. You must send one copy of Forms BIS-752 and BIS-748P to the 
relevant consignee.
    (i) Form BIS-752. On Form BIS-752, complete Block 1 and 3.B, 
``change an existing consignee''. Include the consignee number in Block 
4. Include the SCL case number in Block 5. In Block 9, include the 
phrase ``to remove an end-user(s)'' followed by the name/address 
information. Complete Block 10 and the SCL holder signature Block 
information.
    (ii) Form BIS-748P-B. If there was not enough space on Form BIS-752, 
Block 9, you may continue the information on Form BIS-748P-B, in Block 
24. Complete the information in Block 1. Do not complete Block 19. Block 
19 is only used to add end-users.
    (d) Changes made by BIS. If BIS revises or adds an ECCN to the CCL, 
or a country's eligibility already covered by the SCL changes, BIS 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.

[62 FR 25464, May 9, 1997]



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

[[Page 422]]

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 BIS 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. BIS 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;
    (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 
Sec. Sec.  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 BIS 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) The customer or purchasing agent is reluctant to offer 
information

[[Page 423]]

about the end-use (or end-user) of a product.
    (B) 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.
    (C) 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.
    (D) The customer has little or no business background. For example, 
financial information unavailable from normal commercial sources and 
corporate principals unknown by trade sources.
    (E) The customer is willing to pay cash for a very expensive item 
when the terms of the sale call for financing.
    (F) The customer is unfamiliar with the product's performance 
characteristics but still wants the product.
    (G) Routine installation, training or maintenance services are 
declined by the customer.
    (H) Delivery dates are vague, or deliveries are planned for out-of-
the-way destinations.
    (I) A freight forwarding firm is listed as the product's final 
destination.
    (J) The shipping route is abnormal for the product and destination.
    (K) Packaging is inconsistent with the stated method of shipment or 
destination.
    (L) When questioned, the buyer is evasive or unclear about whether 
the purchased product is for domestic use, export, or reexport.
    (M) Customer uses only a ``P.O. Box'' address or has facilities that 
appear inappropriate for the items ordered.
    (N) 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).
    (O) 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 Sec. Sec.  742.2 and 744.4 of the EAR;

[61 FR 12835, Mar. 25, 1996, as amended at 62 FR 25466, May 9, 1997]



Sec.  752.12  Recordkeeping requirements.

    (a) SCL holder and consignees. In addition to the recordkeeping 
requirements 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) SCL holder. The SCL holder is responsible for complying with the 
special reporting requirements for exports of certain commodities, 
software and technology under the Wassenaar Arrangement as described in 
Sec.  743.1 of the EAR.
    (c) 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;

[[Page 424]]

    (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.

[61 FR 12835, Mar. 25, 1996, as amended at 66 FR 461, Jan. 3, 2002]



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 BIS 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 BIS-752 an alternative 
arrangement for BIS 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 BIS.
    (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. BIS may conduct system reviews of 
the SCL holder as well as any consignee. Generally, BIS 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. BIS may conduct special 
unannounced system reviews if BIS has reason to believe an SCL holder or 
consignee has improperly used or has failed to comply with the SCL.
    (b) Other reviews. BIS 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, BIS 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 BIS on the consignee's 
validated Form BIS-752.



Sec.  752.15  Export clearance.

    (a) Shipper's Export Declaration (SED) or Automated Export System 
(AES) record. The SED or AES record covering an export made under an SCL 
must be prepared in accordance with requirements of the Foreign Trade 
Statistics Regulations (15 CFR part 30) and Sec.  758.1 of the EAR.
    (1) Item descriptions. Item descriptions on the SED or AES record 
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 respective SED or AES record.
    (3) SCL number. The SED or AES record 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.
    (b) Destination control statement. The SCL holder and consignees 
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 BIS. 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 BIS on a case-by-case basis.

[61 FR 12835, Mar. 25, 1996, as amended at 62 FR 25466, May 9, 1997; 65 
FR 42570, July 10, 2000; 68 FR 50473, Aug. 21, 2003]

[[Page 425]]



Sec.  752.16  Administrative actions.

    (a)(1) If BIS 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, BIS 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 BIS;
    (vi) Restrict parties to whom consignees may sell under the SCL; and
    (vii) Require that an SCL holder provide an audit report to BIS of 
selected consignees or overseas operations.
    (2) Whenever necessary to protect the national interest of the U.S., 
BIS 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  BIS mailing addresses.

    You should use the following addresses when submitting to BIS 
applications, reports, documentation, or other requests required in this 
part 752: Bureau of Industry and Security, 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 Industry and 
Security, 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 BIS-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 chose 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 of the EAR.
    Block 5: Type of Application. Enter an ``x'' in the Special 
Comprehensive License box.
    Block 6: Documents Submitted with Application. Enter an ``x'' in the 
appropriate boxes to indicate which forms are attached.
    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 when 
requesting changes to an approved SCL.
    Block 10: Resubmission Application Control Number. Leave blank.
    Block 11: Replacement License Number. This Block should be completed 
by previous special license holders. If you have had a special license 
in the past, enter that license number (i.e., V , SS , 
DL , or SF ). A new SCL number will be 
assigned upon approval of your SCL application.
    Block 12: Items Previously Exported. Leave blank.
    Block 13: Import/End-User Certificate. Leave blank.
    Block 14: Applicant. Complete according to the instructions in 
Supplement No. 1 to part 748 of the EAR.
    Block 15: Other Party Authorized to Receive License. Complete, if 
applicable, according to the instructions in Supplement No. 1 to part 
748 of the EAR.
    Block 16: Purchaser. Leave blank.
    Block 17: Intermediate Consignee. Leave blank.
    Block 18: Ultimate Consignee. Leave blank.
    Block 19: End-User. Leave blank.
    Block 20: Original Ultimate Consignee. Leave blank.
    Block 21: Specific End-Use. Leave blank.

[[Page 426]]

    Block 22: For one item, complete sub-blocks (a) through (j). For 
multiple items, complete Form BIS 748P-A.
    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.
    Block 25: Signature. Complete according to the instructions in 
Supplement No. 1 to part 748 of the EAR.

[62 FR 25466, May 9, 1997]

Supplement No. 2 to Part 752--Instructions for Completing Form BIS-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 BIS-748P.
    Block 2: Subtotal. Leave blank.
    Block 21: Continuation of Specific End-Use Information. Complete as 
necessary to fully describe the transaction(s).
    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''.

[61 FR 12835, Mar. 25, 1996, as amended at 62 FR 25466, May 9, 1997]

 Supplement No. 3 to Part 752--Instructions on Completing Form BIS-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 Form BIS-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 Post Office (P.O.) Box alone is NOT acceptable, 
but may be included in this 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 BIS-752 will be returned without action.
    Block 5: Exporter Information. Enter the complete address of the 
exporter. Leave the SCL Case No. box blank for new applications and 
enter the SCL Case No. for ``change'' actions.
    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 BIS-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 Relationships.
    (i) Item (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 by including the appropriate letter 
choice(s) from the following: (a) manufacturer, (b) distributor, (c) 
assembler, (d) sales agent, (e) warehouse, (f) service facility, or (g) 
other. For other, provide an explanation in Block 9.
    (ii) Item (b): Indicate the relationship between your company and 
the applicant's company by providing the appropriate letter choice(s) 
from the following: (a) wholly-owned subsidiary, (b) independent 
company, (c) joint venture company, (d) controlled-in-fact affiliate, 
(e) contractor/subcontractor, or (f) other. For other, provide an 
explanation in Block 9.
    (iii) Item (c): Enter the number of years of relationship between 
your company and the applicant company.
    (iv) Item (d): Enter the estimated dollar volume of sales or other 
transactions with the SCL holder during the last twelve month period 
before submission of the application for an SCL.
    (v) Item (e): Enter an estimated dollar volume proposed under this 
application for the validity period of the SCL.
    Block 8: Disposition or Use of Items.
    (i) Item (a): Complete this Block if your company is requesting 
involvement in end-user activities that involves importing items

[[Page 427]]

for the company's own use (e.g., as capital equipment).
    (ii) Item (b): Complete this Block if your company is requesting 
involvement in end-user activities that incorporates items received 
under the SCL into a new end-product that results 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 BIS-752-A, Reexport Territories.
    (iii) Item (c): Complete this Block if your company is requesting 
authorization to reexport items for service and/or repair. Complete and 
attach Form BIS-752-A. If you plan to reexport to end-users that require 
prior approval by BIS, also complete and attach Form BIS-748P-B, End-
User Appendix.
    (iv) Item (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 BIS, complete and attach Form BIS-748P-B, End-User 
Appendix.
    (v) Item (e): Complete this Block if your company plans to reexport. 
Complete and attach Form BIS-752-A. If you plan to reexport to end-users 
that require prior approval by BIS, complete and attach Form BIS-748P-B, 
End-User Appendix.
    (vi) Item (f): This item should be completed for ``other'' 
activities that are not defined in Block 8 paragraphs (a) through (e). 
Describe the proposed activities fully in Block 9 or in a letter 
submitted with this Form, and complete and submit Form BIS-752-A, 
indicating the countries to which the products derived from these 
activities will be exported.
    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 BIS. Indicate the license 
and consignee numbers.
    Block 10: Signature of Official of Ultimate Consignee. Include an 
original signature. The authority to sign Form BIS-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 their signature. All copies must be 
co-signed by the applicant in the SCL holder signature block and 
submitted with the application to BIS.

[62 FR 25466, May 9, 1997, as amended at 65 FR 42568, July 10, 2000]

 Supplement No. 4 to Part 752--Instructions for Completing Form BIS-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 No. 
from the relevant Form BIS-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 BIS-752 Question No. Mark an ``x'' in the 
box next to each country you wish to select. See Sec.  752.4 of this 
part for countries that are not eligible for the SCL. You may request a 
country that is not included on Form BIS-752-A by marking an ``x'' in 
the ``other'' box and including the country name.

[62 FR 25467, May 9, 1997]

 Supplement No. 5 to Part 752--Instructions for Completing Form BIS-748-
                          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 No. 
from the relevant Form BIS-748P.
    Block 19: End-user. Enter each end-user's complete name, street 
address, city, country, postal code and telephone or facsimile number. 
Post Office (P.O.) Boxes are not acceptable.
    Block 21: Continuation of Specific End-Use Information. Include any 
additional information that may help BIS 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. Enter the 
consignee name and complete address of the consignee responsible for the 
end-user(s) (i.e., recordkeeping and ICP screening, etc.).

[62 FR 25467, May 9, 1997]



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.

[[Page 428]]

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); 30 U.S.C. 185(s), 185(u); 42 U.S.C. 
6212; 43 U.S.C. 1354; 46 U.S.C. app. 466c; E.O. 11912, 41 FR 15825, 3 
CFR, 1976 Comp., p. 114; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 
783; Notice of August 7, 2003, 66 FR 47833, August 11, 2003.

    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).

[[Page 429]]



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 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) BIS will approve applications to export 
crude oil for the following kinds of transactions if BIS 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 BIS, 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) BIS 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 BIS determines that 
the proposed export is consistent with the national interest and the 
purposes of the Energy Policy and Conservation Act (EPCA). Although BIS 
will consider all applications for approval, generally, the following 
kinds of transactions will be among those that BIS 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

[[Page 430]]

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.
    (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 
Industry and Security 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 BIS 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 BIS 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

[[Page 431]]

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) BIS 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 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 BIS, 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) BIS will approve license applications subject to the following 
conditions:
    (i) You must provide BIS 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 BIS 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 BIS-748 to the 
following address: Office of Exporter Services, ATTN: Short Supply 
Program--Petroleum, Bureau of Industry and Security, 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 BIS 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;

[[Page 432]]

    (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) BIS will adhere to the following procedures for licensing 
exports of California heavy crude oil:
    (i) BIS will issue licenses for approved applications in the order 
in which the applications are received (date-time stamped upon receipt 
by BIS), 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) BIS will approve only one application per month for each 
company and its affiliates.
    (iii) BIS 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 BIS 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) BIS 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) BIS 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 BIS by January 15 of 
the carry-forward year.
    (vi) BIS 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) BIS 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 BIS with a certified statement confirming the date and 
quantity of California heavy crude oil exported.
    (ii) Must submit to BIS, 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 BIS.
    (7) BIS will allow a 10 percent tolerance on the unshipped balance 
based upon the volume of barrels it has authorized. BIS will allow a 25 
percent shipping tolerance on the total dollar value of the license. See 
Sec.  750.11 of the

[[Page 433]]

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 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 BIS.
    (1) The requirements and restrictions described in Sec. Sec.  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) or 
Automated Export System (AES) record the letter code ``SS-SPR'' or the 
equivalent code as set forth in Appendix C to 15 CFR part 30.
    (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 Sec. Sec.  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) or 
Automated Export System (AES) record the letter code ``SS-SAMPLE'' or 
the equivalent code as set forth in Appendix C to 15 CFR part 30.
    (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.

[[Page 434]]

    (2) Shipper's Export Declaration or Automated Export System. In 
addition to the requirements of paragraph (j)(1) of this section, for 
each export under License Exceptions TAPS, the exporter must file with 
BIS a Shipper's Export Declaration (SED) or Automated Export System 
(AES) record covering the export not later than 21 days after the export 
has occurred. The SED or AES record shall be sent to the following 
address: Director, Deemed Exports and Short Supply Division, Office of 
Strategic Trade and Foreign Policy Controls, Bureau of Industry and 
Security, PO Box 273, U.S. Department of Commerce, Washington, DC 20044.
    (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:
    (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; 68 
FR 50473; Aug. 21, 2003]



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) BIS 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) BIS will consider, on a case-by-case basis, applications for 
licenses to export unprocessed western red cedar harvested from Federal 
or State lands

[[Page 435]]

under harvest contracts entered into prior to October 1, 1979.
    (3) BIS 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 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 Sec. Sec.  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) or 
Automated Export System (AES) record the letter code ``SS-WRC''.
    (d) License Applications. (1) Applicants requesting to export 
unprocessed western red cedar must submit a properly completed Form BIS-
748P, Multipurpose License Form, other documents as may be required by 
BIS, 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 BIS-748P, ``Various'' may be 
entered when there is more than one purchaser or ultimate consignee.
    (3) For each Form BIS-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 of Automated Export 
System record.
    (4) A shipping tolerance of 5 percent in cubic feet or board feet 
scribner is allowed on the un-shipped balance of a

[[Page 436]]

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 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.

[61 FR 12844, Mar. 25, 1996, as amended at 68 FR 50473, Aug. 21, 2003]



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 BIS, 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 BIS-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 BIS 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 Industry and Security, U.S. 
Department

[[Page 437]]

of Commerce, P.O. Box 273, Washington, D.C. 20044.

[61 FR 12844, Mar. 25, 1996, as amended at 62 FR 25467, May 9, 1997]



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 BIS requesting the monitoring 
of exports, or the imposition of export controls, or both, with respect 
to such materials.
    (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 Industry and Security, U.S. Department of 
Commerce, P.O. Box 273, Washington, D.C. 20044.

[61 FR 12844, Mar. 25, 1996, as amended at 62 FR 25467, May 9, 1997]

     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.

[[Page 438]]

 
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.
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 BIS-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

[[Page 439]]

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 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.

[[Page 440]]

    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.
    (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, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Notice of August 10, 
1999, 64 FR 44101 (August 13, 1999).

    Source: 61 FR 12851, Mar. 25, 1996, unless otherwise noted.



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 Industry and Security (BIS) 
may appeal to the Under Secretary for reconsideration of that 
administrative 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 BIS at any time.)
    (2) Denial or probation orders, civil penalties, sanctions, or other 
actions under parts 764 and 766 of the EAR, except that, an appeal from 
an action taken under Sec.  766.25 shall be subject to the appeals 
procedures described in this part 756.
    (b) Definitions. [Reserved]

[61 FR 12851, Mar. 25, 1996, as amended at 62 FR 25467, May 9, 1997; 65 
FR 14863, Mar. 20, 2000]



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 BIS 
official the authority to review and decide the appeal. In addition, the 
Under Secretary may designate any BIS 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 
Industry and Security, U.S. Department of Commerce, Room 3898, 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.

[[Page 441]]

    (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 relevant and material to the proceeding, and not unduly repetitious, 
will be received and considered.
    (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 BIS 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 BIS 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.

[61 FR 12851, Mar. 25, 1996, as amended at 62 FR 25467, May 9, 1997; 65 
FR 14860, Mar. 20, 2000]



PART 758_EXPORT CLEARANCE REQUIREMENTS--Table of Contents




Sec.
758.1 The Shipper's Export Declaration (SED) or Automated Export System 
          (AES) record.
758.2 Automated Export System (AES).
758.3 Responsibilities of parties to the transaction.
758.4 Use of export license.
758.5 Conformity of documents and unloading of items.
758.6 Destination control statement.

[[Page 442]]

758.7 Authority of the Office of Export Enforcement, the Bureau of 
          Industry and Security, Customs offices and Postmasters in 
          clearing shipments.
758.8 Return or unloading of cargo at direction of BIS, 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. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 7, 2003, 
66 FR 47833, August 11, 2003.

    Source: 61 FR 12852, Mar. 25, 1996, unless otherwise noted.



Sec.  758.1  The Shipper's Export Declaration (SED) or Automated Export 
System (AES) record.

    (a) The Shipper's Export Declaration (SED) or Automated Export 
System (AES) record. The SED (Form 7525-V, Form 7525-V-Alt, or Automated 
Export System record) is used by the Bureau of Census to collect trade 
statistics and by the Bureau of Industry and Security for export control 
purposes. The SED or AES record collects basic information such as the 
names and addresses of the parties to a transaction; the Export Control 
Classification Number (ECCN) (when required), the Schedule B number or 
Harmonized Tariff Schedule number, the description, quantity and value 
of the items exported; and the license authority for the export. The SED 
or the AES electronic equivalent is a statement to the United States 
Government that the transaction occurred as described.
    (b) When an SED or AES record is required. Except when the export of 
items subject to the EAR is to take place electronically or in an 
otherwise intangible form, you must file an SED or AES record with the 
United States Government for items subject to the EAR, including exports 
by U.S. mail, in the following situations:
    (1) For all exports of items subject to the EAR that are destined to 
Cuba, Iran, Iraq, Libya, North Korea, Sudan, or Syria, regardless of 
value (see 15 CFR 30.55);
    (2) For all exports subject to the EAR that require a license 
regardless of value, or destination;
    (3) For all exports of commodities and mass market software subject 
to the EAR when the value of the commodities or mass market software 
classified under a single Schedule B Number (or Harmonized Tariff 
Schedule number) is over $2,500, except as exempted by the Foreign Trade 
Statistics Regulations (FTSR) in 15 CFR part 30 and referenced in 
paragraph (c) of this section; or
    (4) For all exports of items subject to the EAR that will be 
transshipped through Canada to a third destination, where the export 
would require an SED or AES record or license if shipped directly to the 
final destination from the United States (see 15 CFR 30.58(c) of the 
FTSR).

    Note to paragraph (b):
    In addition to the Shipper's Export Declaration for exports, the 
Bureau of Census Foreign Trade Statistics Regulations provide for a 
specific Shipper's Export Declaration for In-Transit Goods (Form 7513). 
See 15 CFR 30.3 and 30.8 of the FTSR.

    (c) Exemptions. A complete list of exemptions from the SED or AES 
filing requirement is set forth in the FTSR. Some of these FTSR 
exemptions have elements in common with certain EAR License Exceptions. 
An FTSR exemption may be narrower than a License Exception. The 
following references are provided in order to direct you to the FTSR 
exemptions that relate to EAR License Exceptions:
    (1) License Exception Baggage (BAG), as set forth in Sec.  740.14 of 
the EAR. See 15 CFR 30.56 of the FTSR;
    (2) License Exception Gift Parcels and Humanitarian Donations (GFT), 
as set forth in Sec.  740.12 of the EAR. See 15 CFR 30.55(g) of the 
FTSR;
    (3) License Exception Aircraft and Vessels (AVS), as set forth in 
Sec.  740.15 of the EAR. See 15 CFR 30.55(l) of the FTSR;
    (4) License Exception Governments and International Organizations 
(GOV), as set forth in Sec.  740.11 of the EAR. See 15 CFR 30.53 of the 
FTSR;
    (5) License Exception Technology and Software Under Restriction 
(TSR), as set forth in Sec.  740.6 of the EAR. See 15 CFR 30.55(n) of 
the FTSR; or
    (6) License Exception Temporary Imports, Exports, and Reexports 
(TMP) ``tools of trade'', as set forth in Sec.  740.9(a)(2)(i) of the 
EAR. See 15 CFR 30.56(b) of the FTSR.
    (d) Notation on export documents for exports exempt from SED or AES 
record

[[Page 443]]

requirements. When an exemption from filing the Shipper's Export 
Declaration or Automated Export System record applies, the export 
authority (License Exception or NLR) of all the items must be entered on 
the loading document (e.g., Cargo Declaration, manifest, bill of lading, 
(master) air waybill) by the person responsible for preparing the 
document. This requirement is intended to parallel the Bureau of Census 
requirement, so that notations as to the basis for the SED exemption and 
the license authority are entered in the same place and manner (see 15 
CFR 30.21 of the FTSR for detailed requirements). The loading document 
must be available for inspection by government officials, along with the 
items, prior to lading on the carrier.
    (e) Signing the Shipper's Export Declaration or transmitting data 
via AES. The person who signs the SED must be in the United States at 
the time of signing. The person who transmits data via AES must be a 
certified AES participant in accordance with 15 CFR 30.60 of the FTSR. 
The person who signs the SED or transmits data via AES, whether exporter 
(U.S. principal party in interest) or agent, is responsible for the 
truth, accuracy, and completeness of the SED or AES record, except 
insofar as that person can demonstrate that he or she reasonably relied 
on information furnished by others.
    (f) The SED or AES record is an export control document. The SED or 
AES record is a statement to the U.S. Government. The SED or AES record 
is an export control document as defined in part 772 of the EAR. False 
statements made thereon may be a violation of Sec.  764.2(g) of the EAR. 
When an SED or AES record is presented to the U.S. Government, the 
signer or filer of the SED or AES record represents the following:
    (1) Export of the items described on the SED or AES record is 
authorized under the terms and conditions of a license issued by BIS; is 
in accordance with the terms and conditions of a License Exception; is 
authorized under ``NLR'' as no license is required for the shipment; or 
is not subject to the EAR;
    (2) Statements on the SED or AES record are in conformity with the 
contents of any license issued by BIS, with the possible exception of 
the exporter block in routed transactions; and
    (3) All information shown on the SED or AES record is true, 
accurate, and complete.
    (g) Export control information on the SED or AES record. For each 
item on the SED or AES record, you must show the license authority 
(License number, License Exception, or No License Required (NLR)), the 
Export Control Classification Number (ECCN) (when required), and the 
item description in the designated blocks. The item description must be 
stated in Commerce Control List terms. If those terms are inadequate to 
meet Census Bureau requirements, the FTSR requires that you give enough 
additional detail to permit verification of the Schedule B Number (or 
Harmonized Tariff Schedule number). The FTSR also requires separate 
descriptions of items for each Schedule B classification (or Harmonized 
Tariff Schedule number). See 15 CFR 30.6 (separate SED or AES records), 
Sec.  30.7(l) (description of items) and Sec.  30.9 (separation of items 
on the SED) of the FTSR.
    (1) Exports under a license. When exporting under the authority of a 
license, you must enter on the SED or AES record the license number and 
expiration date (the expiration date is only required on paper versions 
of the SED), the ECCN, and an item description identical to the item 
description on the license.
    (2) Exports under a License Exception. You must enter on any 
required SED or AES record the ECCN and the correct License Exception 
symbol (e.g., LVS, GBS, CIV) for the License Exception(s) under which 
you are exporting. Items temporarily in the United States meeting the 
provisions of License Exception TMP, under Sec.  740.9(b)(3), are 
excepted from this requirement. See also Sec.  740.1(d) of the EAR.
    (3) No License Required (NLR) exports. You must enter on any 
required SED or AES record the ``NLR'' designation when the items to be 
exported are subject to the EAR but not listed on the Commerce Control 
List (i.e., items are classified as EAR99), and when the items to be 
exported are listed on the

[[Page 444]]

CCL but do not require a license. In addition, you must enter the 
correct ECCN on any required SED or AES record for all items being 
exported under the NLR provisions that have a reason for control other 
than anti-terrorism (AT). The designator ``TSPA'' may be used, but is 
not required, when the export consists of technology or software outside 
the scope of the EAR. See Sec.  734.7 through Sec.  734.11 of the EAR 
for TSPA information.
    (h) Power of attorney or other written authorization. In a ``power 
of attorney'' or other written authorization, authority is conferred 
upon an agent to perform certain specified acts or kinds of acts on 
behalf of a principal.
    (1) An agent must obtain a power of attorney or other written 
authorization in the following circumstances:
    (i) An agent that represents a foreign principal party in interest 
in a routed transaction must obtain a power of attorney or other written 
authorization that sets forth his authority; and
    (ii) An agent that applies for a license on behalf of a principal 
party in interest must obtain a power of attorney or other written 
authorization that sets forth the agent's authority to apply for the 
license on behalf of the principal.

    Note to paragraph (h)(1):
    The Bureau of Census Foreign Trade Statistics Regulations impose 
additional requirements for a power of attorney or other written 
authorization. See 15 CFR 30.4(e) of the FTSR.

    (2) This requirement for a power of attorney or other written 
authorization is a legal requirement aimed at ensuring that the parties 
to a transaction negotiate and understand their responsibilities. The 
absence of a power of attorney or other written authorization does not 
prevent BIS from using other evidence to establish the existence of an 
agency relationship for purposes of imposing liability.
    (i) Submission of the SED or AES record. The SED or AES record must 
be submitted to the U.S. Government in the manner prescribed by the 
Bureau of Census Foreign Trade Statistics Regulations (15 CFR part 30).

[65 FR 42570, July 10, 2000, as amended at 67 FR 70546, Nov. 25, 2002; 
68 FR 50473, Aug. 21, 2003]



Sec.  758.2  Automated Export System (AES).

    The Census Bureau's Foreign Trade Statistics Regulations (FTSR) (15 
CFR Part 30) contain provisions for filing Shipper's Export Declarations 
(SEDs) electronically using the Automated Export System (AES). In order 
to use AES, you must apply directly to the Census Bureau for 
certification and approval through a Letter of Intent (see 15 CFR 
30.60(b) and Appendix A to part 30 of the FTSR). Three AES filing 
options are available for transmitting shipper's export data. Option 1 
is the standard paper filing of the SED, while the other two options are 
electronic. Option 2 requires the electronic filing of all information 
required for export prior to export (15 CFR 30.61(a) and 30.63); Option 
4 is available only for approved filers (approval by Census Bureau, 
Bureau of Customs and Border Protection, BIS and other agencies) and 
requires no information to be transmitted prior to export, with complete 
information transmitted within 10 working days of exportation (15 CFR 
30.61(b) and 30.62).
    (a) Census' Option 4 application process. Exporters, or agents 
applying on behalf of an exporter, may apply for Option 4 filing 
privileges by submitting a Letter of Intent to the Census Bureau in 
accordance with 15 CFR 30.60(b) and 30.62 of the FTSR. The Census Bureau 
will distribute the Letter of Intent to BIS and other agencies 
participating in the Option 4 approval process. Any agency may notify 
Census that an applicant has failed to meet its acceptance standards, 
and the Census Bureau will provide a denial letter to the applicant 
naming the denying agency. If the Census Bureau receives neither 
notification of denial, nor a request for an extension from the agency 
within 30 days of the date of referral of the letter of intent to the 
agency, the applicant is deemed to be approved by that agency. See 15 
CFR 30.62(b) of the FTSR.
    (b) BIS Option 4 application process. When AES filers wish to use 
Option 4 for exports of items that require a BIS license, those filers 
must seek separate approval directly from BIS by completing a 
questionnaire and certification. (Separate BIS approval is not

[[Page 445]]

required for the use of Option 4 in connection with exports that do not 
require a BIS license.) The questionnaire and certification should be 
mailed to: U.S. Department of Commerce, Bureau of Industry and Security, 
The Office of Enforcement Analysis, 14th & Pennsylvania Avenue, N.W., 
Room 4065, Washington, D.C. 20230.
    (1) Questionnaire. The following questions must be answered based on 
your experiences over the past five years. If the answer to either of 
the questions is ``yes'', it must be followed with a full explanation. 
Answering ``yes'' to either of the questions will not automatically 
prevent your participation in Option 4. BIS will consider the facts of 
each case and any remedial action you have taken to determine whether 
your reliability is sufficient to participate in this program.
    (i) Have you been charged with, convicted of, or penalized for, any 
violation of the EAR or any statute described in Sec.  766.25 of the 
EAR?
    (ii) Have you been notified by any government official of competent 
authority that you are under investigation for any violation of the EAR 
or any statute described in Sec.  766.25 of the EAR?
    (2) Certification. Each applicant must submit a signed certification 
as set forth in this paragraph. The certification will be subject to 
verification by BIS.

    I (We) certify that I (we) have established adequate internal 
procedures and safeguards to comply with the requirements set forth in 
the U.S. Department of Commerce Export Administration Regulations (EAR) 
and Foreign Trade Statistics Regulations (FTSR). These procedures and 
safeguards include means for:
    (i) Making a proper determination as to whether a license is 
required for a particular export;
    (ii) Receipt of notification of approval of the export license, if 
required, before the export is made;
    (iii) Compliance with all the terms and conditions of the license, 
License Exception, or NLR provisions of the EAR as applicable;
    (iv) Return of revoked or suspended licenses to BIS in accordance 
with Sec.  750.8(b) of the EAR, if requested;
    (v) Compliance with the destination control statement provisions of 
Sec.  758.6 of the EAR;
    (vi) Compliance with the prohibition against export transactions 
that involve persons who have been denied U.S. export privileges; and
    (vii) Compliance with the recordkeeping requirements of part 762 of 
the EAR.
    I (we) agree that my (our) office records and physical space will be 
made available for inspection by the Bureau of the Census, BIS, or the 
U.S. Customs Service, upon request.

    (c) BIS Option 4 evaluation criteria. BIS will consider the grounds 
for denial of Option 4 filing status set forth in 15 CFR 30.62(b)(2) of 
the FTSR, as well as the additional grounds for denial set forth in this 
paragraph.
    (1) Applicants have not been approved for Option 4 filing privileges 
by the Census Bureau or other agency;
    (2) Applicants are denied persons; or
    (3) Exports are destined to a country in Country Group E:1 
(Supplement No.1 to part 740 of the EAR).
    (d) Contacts for assistance. (1) For additional information on the 
AES in general, please contact: Chief Foreign Trade Division, U.S. 
Census Bureau, (301) 457-2255, facsimile: (301) 457-2645.
    (2) For information about BIS's Option 4 approval process to use AES 
Option 4 for items subject to the EAR, contact: Director, Office of 
Enforcement Analysis, Bureau of Industry and Security, (202) 482-4255, 
facsimile: (202) 482-0971.

[65 FR 42571, July 10, 2000, as amended at 67 FR 54953, Aug. 27, 2002; 
68 FR 50473, Aug. 21, 2003]



Sec.  758.3  Responsibilities of parties to the transaction.

    All parties that participate in transactions subject to the EAR must 
comply with the EAR. Parties are free to structure transactions as they 
wish, and to delegate functions and tasks as they deem necessary, as 
long as the transaction complies with the EAR. However, acting through a 
forwarding or other agent, or delegating or redelegating authority, does 
not in and of itself relieve anyone of responsibility for compliance 
with the EAR.
    (a) Export transactions. The U.S. principal party in interest is the 
exporter, except in certain routed transactions. The exporter must 
determine licensing authority (License, License Exception, or NLR), and 
obtain the appropriate license or other authorization. The exporter may 
hire forwarding or other agents to perform various tasks, but

[[Page 446]]

doing so does not necessarily relieve the exporter of compliance 
responsibilities.
    (b) Routed export transactions. All provisions of the EAR, including 
the end-use and end-user controls found in part 744 of the EAR, and the 
General Prohibitions found in part 736 of the EAR, apply to routed 
export transactions. The U.S. principal party in interest is the 
exporter and must determine licensing authority (License, License 
Exception, or NLR), and obtain the appropriate license or other 
authorization, unless the U.S. principal party in interest obtains from 
the foreign principal party in interest a writing wherein the foreign 
principal party in interest expressly assumes responsibility for 
determining licensing requirements and obtaining license authority, 
making the U.S. agent of the foreign principal party in interest the 
exporter for EAR purposes. One writing may cover multiple transactions 
between the same principals. See Sec.  748.4(a)(3) of the EAR.

    Note to paragraph (b):
    For statistical purposes, the Foreign Trade Statistics Regulations 
(15 CFR part 30) have a different definition of ``exporter'' from the 
Export Administration Regulations. Under the FTSR the ``exporter'' will 
always be the U.S. principal party in interest. For purposes of 
licensing responsibility under the EAR, the U.S. agent of the foreign 
principal party in interest may be the ``exporter'' in a routed 
transaction.

    (c) Information sharing requirements. In routed export transactions 
where the foreign principal party in interest assumes responsibility for 
determining and obtaining licensing authority, the U.S. principal party 
in interest must, upon request, provide the foreign principal party in 
interest and its forwarding or other agent with the correct Export 
Control Classification Number (ECCN), or with sufficient technical 
information to determine classification. In addition, the U.S. principal 
party in interest must provide the foreign principal party in interest 
or the foreign principal's agent any information that it knows will 
affect the determination of license authority, see Sec.  758.1(g) of the 
EAR.
    (d) Power of attorney or other written authorization. In routed 
export transactions, a forwarding or other agent that represents the 
foreign principal party in interest, or who applies for a license on 
behalf of the foreign principal party in interest, must obtain a power 
of attorney or other written authorization from the foreign principal 
party in interest to act on its behalf. See Sec.  748.4(b)(2) and Sec.  
758.1(h) of the EAR.

[65 FR 42572, July 10, 2000]



Sec.  758.4  Use of export license.

    (a) License valid for shipment from any port. An export license 
issued by BIS authorizes exports from any port of export in the United 
States unless the license states otherwise. Items that leave the United 
States at one port, cross adjacent foreign territory, and reenter the 
United States at another port before being exported to a foreign 
country, are treated as exports from the last U.S. port of export.
    (b) Shipments against expiring license. Any item requiring a license 
that has not departed from the final U.S. port of export by midnight of 
the expiration date on an export license may not be exported under that 
license unless the shipment meets the requirements of paragraphs (b)(1) 
or (2) of this section.
    (1) BIS grants an extension; or
    (2) Prior to midnight on the date of expiration on the license, the 
items:
    (i) Were laden aboard the vessel;
    (ii) 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
    (iii) The vessel was expected to be at the pier for loading before 
the license expired, but exceptional and unforseen circumstances delayed 
it, and BIS or the U.S. Customs Service makes a judgment that undue 
hardship would result if a license extension were required.
    (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 and value as described on 
the license, to the same consignee and destination under the same 
license. If an item is to be reshipped to any person other than the 
original consignee, the shipment is considered a new export and requires 
a new license. Before

[[Page 447]]

reshipping, satisfactory evidence of the original export and of the 
delivery failure, together with a satisfactory explanation of the 
delivery failure, must be submitted by the exporter to the following 
address: Operations Division, Bureau of Industry and Security, U.S. 
Department of Commerce, Room 2705, 14th Street & Pennsylvania Avenue, 
NW., Washington, DC 20230.

[65 FR 42572, July 10, 2000]



Sec.  758.5  Conformity of documents and unloading of items.

    (a) Purpose. The purpose of this section 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 items are unloaded 
in a country other than that of the ultimate consignee as stated on the 
export license.
    (b) Conformity of documents. When a license is issued by BIS, the 
information entered on related export control documents (e.g., the SED 
or AES record, bill of lading or air waybill) must be consistent with 
the license.
    (c) Issuance of the bill of lading or air waybill. (1) Ports in the 
country of the ultimate consignee. No person may issue a bill of lading 
or air waybill that provides for delivery of licensed items to any 
foreign port located outside the country of the intermediate or the 
ultimate consignee named on the BIS license and Shipper's Export 
Declaration (SED) or AES electronic equivalent.
    (2) Optional ports of unloading. (i) Licensed items. No person may 
issue a bill of lading or air waybill that provides for delivery of 
licensed items to optional ports of unloading unless all the optional 
ports are within the country of ultimate destination or are included on 
the BIS license and SED or AES electronic equivalent.
    (ii) Unlicensed items. For shipments of items that do not require a 
license, the exporter may designate optional ports of unloading on the 
SED or AES electronic equivalent and other export control documents, so 
long as the optional ports are in countries to which the items could 
also have been exported without a license. See also 15 CFR 30.7(h) of 
the FTSR.
    (d) Delivery of items. No person may deliver items to any country 
other than the country of the intermediate or ultimate consignee named 
on the BIS license and SED or AES record without prior written 
authorization from BIS, except for reasons beyond the control of the 
carrier (such as acts of God, perils of the sea, damage to the carrier, 
strikes, war, political disturbances or insurrection).
    (e) Procedures for unscheduled unloading. (1) Unloading in country 
where no license is required. When items are unloaded in a country to 
which the items could be exported without a license issued by BIS, no 
notification to BIS is required. However, any persons disposing of the 
items must continue to comply with the terms and conditions of any 
License Exception, and with any other relevant provisions of the EAR.
    (2) Unloading in a country where a license is required. (i) When 
items are unloaded in a country to which the items would require a BIS 
license, no person may effect delivery or entry of the items into the 
commerce of the country where unloaded without prior written approval 
from BIS. The carrier, in ensuring that the items do not enter the 
commerce of the country, may have to place the items in custody, or 
under bond or other guaranty. In addition, the carrier must inform the 
exporter and BIS of the unscheduled unloading in a time frame that will 
enable the exporter to submit its report within 10 days from the date of 
unscheduled unloading. The exporter must within 10 days of the 
unscheduled unloading report the facts to and request authorization for 
disposition from BIS using either: mail, fax, or E-mail. The report to 
BIS must include:
    (A) A copy of the manifest of the diverted cargo;
    (B) Identification of the place of unloading;
    (C) Statement that explains why the unloading was necessary; and
    (D) A proposal for disposition of the items and a request for 
authorization for such disposition from BIS.
    (ii) Contact information. U.S. Department of Commerce, Bureau of 
Industry and Security, Office of Exporter Services, Room 1093, 14th and 
Pennsylvania Avenue, NW, Washington, DC 20230; phone number 202-482-
0436; facsimile

[[Page 448]]

number 202-482-3322; and E-Mail address: [email protected].

[65 FR 42573, July 10, 2000]



Sec.  758.6  Destination control statement.

    The Destination Control Statement (DCS) must be entered on the 
invoice and on the bill of lading, air waybill, or other export control 
document that accompanies the shipment from its point of origin in the 
United States to the ultimate consignee or end-user abroad. The person 
responsible for preparation of those documents is responsible for entry 
of the DCS. The DCS is required for all exports from the United States 
of items on the Commerce Control List that are not classified as EAR99, 
unless the export may be made under License Exception BAG or GFT (see 
part 740 of the EAR). At a minimum, the DCS must state: ``These 
commodities, technology or software were exported from the United States 
in accordance with the Export Administration Regulations. Diversion 
contrary to U.S. law is prohibited.''

[65 FR 42573, July 10, 2000]



Sec.  758.7  Authority of the Office of Export Enforcement, the Bureau 

of Industry and Security, Customs offices and Postmasters in clearing 
shipments

    (a) Actions to assure compliance with the EAR. Officials of BIS, 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 BIS 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 BIS 
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 AES record, or if there is no SED or AES record, 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 BIS. 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 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

[[Page 449]]

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 
to the Office of Export Enforcement are authorized to detain any 
shipment held for review of the SED or AES record, or if there is no SED 
or AES record, 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 BIS 
personnel an adequate opportunity to examine the shipment, 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.

[[Page 450]]

    (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.

[61 FR 12852, Mar. 25, 1996, as amended at 62 FR 25469, May 9, 1997; 68 
FR 50474, Aug. 21, 2003]



Sec.  758.8  Return or unloading of cargo at direction of BIS, 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, BIS, 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 BIS. 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 BIS, 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 
BIS. 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, AES 
records, and manifests, or any applicable rules and regulations of the 
Bureau of Customs and Border Protection or Bureau of Immigration and 
Customs Enforcement.

[68 FR 50474, Aug. 21, 2003]



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 451]]

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, 59 FR 43437, 3 CFR, 1994 Comp., p. 917; Notice of August 10, 
1999, 64 FR 44101, 3 CFR, 1999 Comp., p. 302.

    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 452]]

                  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 453]]

    (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 454]]

 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

[[Page 455]]

    (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

[[Page 456]]

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.

[[Page 457]]

    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 any of the 
prohibitions under Sec.  760.2. 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 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 be taken with intent to comply with Y's boycott.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34945, June 1, 2000]



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 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,

[[Page 461]]

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(d) 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 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

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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 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 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

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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 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 a request for a vessel eligibility certificate to be 
furnished by the steamship line is not a prohibited condition. (See 
Supplement No. 1 to this part, paragraph (I)(B), ``Shipping 
Certificate''.)
    (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

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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; 
however, A submits a bid without taking exception to the boycott 
conditions. A's bid makes no commitment regarding not dealing with 
certain companies.
    At the point when A submits its bid without taking exception to the 
boycott request in Y's tender, A has agreed to refuse to do business 
with blacklisted persons, because the terms of Y's tender require A to 
agree to refuse to do business.
    (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, 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

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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 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

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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.

     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

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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
    (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

[[Page 468]]

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 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

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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.
    (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.


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    (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.

    (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;

[[Page 471]]

    (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.
    (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

[[Page 472]]

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 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 United States.

           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

[[Page 473]]

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 boycott condition 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) 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 not implement the letter of credit with a prohibited 
condition, and may accept only a positive certificate of origin as 
satisfactory documentation. (See Sec.  760.3(c) on ``Import and Shipping 
Document Requirements.'')
    (vii) [Reserved]
    (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 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: Examples (ix) and (x) do 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.

[[Page 474]]

    (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.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34945, June 1, 2000]



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-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. However, A may not furnish 
negative certifications regarding

[[Page 475]]

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 into 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, 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

[[Page 476]]

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.
    (vi) Boycotting country Y orders goods from A, a U.S. manufacturer. 
The order specifies that goods shipped by A ``must not be shipped on 
vessels blacklisted by country Y''.
    A may not agree to comply with this condition because it is not a 
restriction limited to the use of carriers of the boycotted country.

    (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 and nationality of the carrier;
    (iii) The route of the shipment;
    (iv) The name, residence, or address of the supplier of the 
shipment;
    (v) The name, residence, or address of the provider of other 
services.
    (2) Such information must be stated in positive, non-blacklisting, 
non-exclusionary terms except for information with respect to the names 
or nationalities 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.

  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.
    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 the goods specify the country of origin of 
the goods.
    A may furnish the information.
    (iii) [Reserved]
    (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.
    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.''
    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.
    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

[[Page 477]]

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.

    (d) Unilateral and specific 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 a not insignificant part of the services be performed 
within the boycotting country. With respect to goods, the items, in the 
normal course of business, must be 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.
    (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

[[Page 478]]

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.
    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

[[Page 479]]

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.

                                 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

[[Page 480]]

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 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.

[[Page 481]]

                  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.)

    (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

[[Page 482]]

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 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,

[[Page 483]]

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.

 Example 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.

    (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.

[[Page 484]]

    (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.
    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

[[Page 485]]

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 
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 whom 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

[[Page 486]]

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 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 January 18, 1978.
    (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

[[Page 487]]

such limited circumstances, the exception would be available only to 
firms resident in a boycotting country before January 18, 1978.
    (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 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

[[Page 488]]

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.

             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.

[[Page 489]]

    (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 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 (d) of this section on ``Compliance 
With Unilateral and Specific 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

[[Page 490]]

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.

                   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 Within Boycotting Country

    (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,

[[Page 491]]

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.
    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.

[[Page 492]]

    (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.
    (xii) 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.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34946, June 1, 2000]



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 violate or evade the 
provisions of this part.
    (b) The exceptions set forth in Sec.  760.3(a) through (i) 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 18, 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 18, 
1978 is presumed not to constitute evasion if the provision had been 
customarily used by that person prior to January 18, 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

[[Page 493]]

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. A receives a request for a 
negative certificate of origin from a new customer. A is aware that 
furnishing such certificates are prohibited; therefore, A arranges to 
have all future shipments run through a foreign corporation in a third 
country which will affix the necessary negative certificate 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 calculators to distributor 
B in country C for a number of years and routinely supplies positive 
certificates of origin. A receives an order from country Y which 
requires negative certificates of origin. A arranges to make all future 
sales to distributor B in country C. A knows B will step in and make the 
sales to Y which A 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 January 18, 1978, A, a 
U.S. company, insists that its suppliers sign contracts which provide 
that even after title passes from the supplier to A, the supplier will 
bear the risk

[[Page 494]]

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 January 18, 1978.
    A's action is presumed not to constitute evasion, because use of 
this contractual arrangement was customary for A prior to January 18, 
1978.
    (xii) A, a U.S. company, has a contract to supply automobile sub-
assembly units to boycotting country Y. Shortly after January 18, 1978, 
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 any 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 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 
advises B of the boycott condition and suggests to B that the 
beneficiary should be changed to C, a shell corporation in non-
boycotting country M. The beneficiary is changed accordingly.
    The actions of both A and B constitute evasion of this part, because 
the arrangement is a device to mask prohibited activities.
    (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 A's 
action is part of a device to mask prohibited activity by both parties.
    (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.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34947, June 1, 2000]



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

[[Page 495]]

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 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,

[[Page 496]]

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 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 6098, 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 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

[[Page 497]]

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 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 BIS-621P, Report of Restrictive 
Trade Practice or Boycott Request Single Transaction (revised 10-89)) or 
on a multiple transaction form (Form BIS-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 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

[[Page 498]]

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 BIS 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.
    (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

[[Page 499]]

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.
    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

[[Page 500]]

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, 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 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 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.

[[Page 501]]

    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 
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 
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.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34948, June 1, 2000]

              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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

                            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

[[Page 502]]

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.
    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(c) for compliance with the import and shipping 
document requirements of a boycotting country. See Sec.  760.3(c) 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 this 
part 760. See Sec.  760.2(f), 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(c) 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 non-blacklisted 
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) 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). See also part A., ``Permissible Furnishing of 
Information,'' of Supplement No. 5 to this part.
    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) 
for compliance with the import and shipping document requirements of a 
boycotting country. See Sec.  760.3(c)(1)(v) 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 this

[[Page 503]]

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).
    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 this part 
760. See Sec.  760.2(f), 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), 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) 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).

                         II. Contractual Clauses

    The new contractual requirements and the Department's interpretation 
of the applicability of part 760 thereto are as follows:
    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 this 
part 760. See Sec.  760.2(a)(5) 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 this part 760. See Sec.  760.2(a)(5) 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) 
for compliance with the import requirements of a boycotting country. See 
Sec.  760.3(a) and example (ii) thereunder.
    The Department notes that 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) and examples (i) and (ii) thereunder, and Sec.  760.3(a) 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.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34948, June 1, 2000]

[[Page 504]]

              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
    (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, receipts of requests 
for such shipping and insurance certificates from Saudi Arabia are 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 
receipts of requests for such certifications are 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.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34949, June 1, 2000]

              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

[[Page 505]]

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 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) 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 ``(i) * * * acquired without reference 
to a specific order from or transaction with a person outside the United 
States; and (ii) * * * further manufactured, incorporated into, refined 
into, 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.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34949, June 1, 2000]

              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

[[Page 506]]

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 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(g), 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.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34949, June 1, 2000]

              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

[[Page 507]]

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(a)). 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 obligation in selecting the goods. However, the 
freight forwarder would have to report a request to furnish a 
certificate that the goods do not originate in or contain components 
from a boycotted country. See Sec.  760.5, examples (xii)-(xvii).
    (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.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34949, June 1, 2000]

              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

[[Page 508]]

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(d). 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 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 
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.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34949, June 1, 2000]

              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)(3).
    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.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34950, June 1, 2000]

              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

[[Page 509]]

country as defined in Sec.  760.3(g), 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 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

[[Page 510]]

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.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34950, June 1, 2000]

              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 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.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34950, June 1, 2000]

              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

[[Page 511]]

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(b)(6)).

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34950, June 1, 2000]

              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 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 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.

[[Page 512]]

    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.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34950, June 1, 2000]

              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(d), 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 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(d) 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 Additional Contractual Language

    The Office of Antiboycott Compliance has learned of the introduction 
of a 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 [Name 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

[[Page 513]]

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.
    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(d). 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.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34950, June 1, 2000]

              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 ``Agreements 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

[[Page 514]]

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.  
760.5(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 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

[[Page 515]]

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 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.

[61 FR 12862, Mar. 25, 1996, as amended at 65 FR 34950, June 1, 2000]

              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

[[Page 516]]

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 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.

[[Page 517]]

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. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 14, 
2002, 67 FR 53721, August 16, 2002.

    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 Sec. Sec.  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 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.  740.10(c), Servicing and replacement of parts and 
equipment (RPL);
    (5) Sec.  740.13(f), Technology and software--unrestricted (TSU);
    (6) Sec.  742.12(a)(3), High Performance Computers;
    (7) Supplement No. 3 to part 742 High Performance Computers, 
Safeguards and Related Information;
    (8) Sec.  742.15;
    (9) Sec.  740.7, Humanitarian donations (NEED);
    (10) Sec.  748.4(a), Disclosure and substantiation of facts on 
license applications;

[[Page 518]]

    (11) Sec.  748.6, General instructions for license applications;
    (12) Sec.  748.9, Support documents for license applications;
    (13) Sec.  748.10, Import and End-user Certificates;
    (14) Sec.  748.11, Statement by Ultimate Consignee and Purchaser;
    (15) Sec.  748.13, Delivery Verification (DV);
    (16) Sec.  748.2(c), Obtaining forms; mailing addresses;
    (17) Sec.  750.7, Issuance of license and acknowledgment of 
conditions;
    (18) Sec.  750.8, Revocation or suspension of license;
    (19) Sec.  750.9, Duplicate licenses;
    (20) Sec.  750.10, Transfer of licenses for export;
    (21) Sec.  752.7, Direct shipment to customers;
    (22) Sec.  752.9, Action on SCL applications;
    (23) Sec.  752.10, Changes to the SCL;
    (24) Sec.  752.11, Internal Control Programs;
    (25) Sec.  752.12, Recordkeeping requirements;
    (26) Sec.  752.13, Inspection of records;
    (27) Sec.  752.14, System reviews;
    (28) Sec.  752.15, Export clearance;
    (29) Sec.  754.2(j)(3), Recordkeeping requirements for deep water 
ballast exchange.
    (30) Sec.  754.4, Unprocessed western red cedar;
    (31) Sec.  758.1(h), Record and proof of agent's authority;
    (32) Sec.  758.1 and Sec.  758.2, Shipper's Export Declaration or 
Automated Export System record;
    (33) Sec.  758.6, Destination control statements;
    (34) Sec.  760.6, Restrictive Trade Practices and Boycotts;
    (35) Sec.  762.2, Records to be retained;
    (36) Sec.  764.2, Violations;
    (37) Sec.  764.5, Voluntary self-disclosure; and
    (38) Sec.  766.10, Subpoenas;
    (39) Sec.  743.1, Wassenaar reports;
    (40) Sec.  748.14, Exports of firearms;
    (41) Sec.  745.1, Annual reports;
    (42) Sec.  745.2, End-use certificates; and
    (43) Sec.  758.2(c), Assumption writing.

[61 FR 12900, Mar. 25, 1996, as amended at 61 FR 27258, May 31, 1996; 61 
FR 65466, Dec. 13, 1996; 64 FR 17974, Apr. 13, 1999; 65 FR 14860, Mar. 
20, 2000; 65 FR 42573, July 10, 2000; 68 FR 16213, Apr. 3, 2003]



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) Packing 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]

[61 FR 12900, Mar. 25, 1996, as amended at 62 FR 25469, May 9, 1997]



Sec.  762.4  Original records required.

    The regulated person must maintain the original records in the form 
in which that person receives or creates

[[Page 519]]

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 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

[[Page 520]]

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 Sec. Sec.  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 Industry 
and Security 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 BIS 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 Industry and Security, 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 requiring persons to appear and 
testify, or produce 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 Industry and Security, 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.

[61 FR 12900, Mar. 25, 1996, as amended at 65 FR 42573, July 10, 2000]



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

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 14, 
2002, 67 FR 53721, August 16, 2002.

    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,

[[Page 521]]

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 
Industry and Security (BIS). 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 BIS 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, 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 or reexport 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 or reexported.
    (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 BIS, 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 BIS 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

[[Page 522]]

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 BIS, 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.

[61 FR 12902, Mar. 25, 1996, as amended at 62 FR 25469, May 9, 1997]



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.
    (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 BIS may be excluded by order from any or all such activities 
before BIS.
    (b) Criminal.\2\ (1) General. Except as provided in paragraph (b)(2) 
of this section, whoever knowingly violates or

[[Page 523]]

conspires to or attempts to violate the EAA, EAR, or any order or 
license issued thereunder, shall be fined not more than five times the 
value of the exports or reexports 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 items involved is, any controlled country or any 
country to which exports or reexports 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 or reexport 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 or reexport of any items to a controlled country and who, 
with knowledge that such export or reexport 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 or reexports 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 the intent to export or 
reexport 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 so exported or reexported, 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-

[[Page 524]]

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 BIS 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.)

[61 FR 12902, Mar. 25, 1996, as amended at 62 FR 25469, May 9, 1997]



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 Industry and Security,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 Industry and Security, 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.
    (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. BIS 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

[[Page 525]]

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 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

[[Page 526]]

maintained 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) 565-
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) 767-9299
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) 251-9103
Special Agent in Charge, Miami Field Office, Office of Export 
Enforcement, 200 East Las 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) 370-0826
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;

[[Page 527]]

    (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 BIS 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 BIS in accordance with the 
provisions of part 748 of the EAR. If the applicant 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.

[61 FR 12902, Mar. 25, 1996, as amended at 62 FR 25469, May 9, 1997]



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. BIS 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. BIS 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. (1) Orders denying export privileges may be 
``standard'' or ``non-standard.'' This Supplement specifies terms of the 
standard order denying export privilege with respect to denial orders 
issued after March 25, 1996. 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. 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 Sec.  764.2(k) of this part). BIS provides lists of denied 
persons on a Web site and as a supplement to the unofficial edition of 
the EAR available by subscription from the Government Printing Office.
    (2) Each denial order shall include:
    (i) The name and address of any denied persons and any related 
persons subject to the denial order;
    (ii) The basis for the denial order, such as final decision 
following charges of violation,

[[Page 528]]

settlement agreement, section 11(h) of the EAA, or temporary denial 
order request;
    (iii) 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
    (iv) 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.
    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 denial order terms. The following are the standard 
terms for imposing periods of export denial. Some orders also contain 
other terms, such as those that impose civil penalties, or that suspend 
all or part of the penalties or period of denial.
    ``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 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 [DATE].''

[61 FR 12902, Mar. 25, 1996, as amended at 67 FR 54953, Aug. 27, 2002]



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.

[[Page 529]]

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 export privileges.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 14, 
2002, 67 FR 53721, August 16, 2002.

    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 Industry and Security.BIS
    Bureau of Industry and Security (BIS). Bureau of Industry and 
Security, U.S. Department of Commerce (formerly the Bureau of Export 
Administration) 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. BIS 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

[[Page 530]]

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, who shall concurrently hold the 
title of Under Secretary for Industry and Security.

[61 FR 12907, Mar. 25, 1996, as amended at 67 FR 20631, Apr. 26, 2002]



Sec.  766.3  Institution of administrative enforcement proceedings.

    (a) Charging letters. The Director of the Office of Export 
Enforcement 1 (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 BIS. 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. 
BIS 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

[[Page 531]]

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. BIS will 
be represented by the Office of Chief Counsel for Industry and Security, 
U.S. Department of Commerce.

[61 FR 12907, Mar. 25, 1996, as amended at 67 FR 45633, July 10, 2002]



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 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 BIS shall be addressed to 
the Chief Counsel for Industry and Security, 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.

[61 FR 12907, Mar. 25, 1996, as amended at 67 FR 45633, July 10, 2002]



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

[[Page 532]]

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 
BIS 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 BIS'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 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

[[Page 533]]

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 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 BIS 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 BIS 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

[[Page 534]]

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 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

[[Page 535]]

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.
    (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

[[Page 536]]

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 BIS 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 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 BIS 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

[[Page 537]]

brought under this part. This reflects the fact that BIS 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 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 Sec. Sec.  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 BIS 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

[[Page 538]]

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 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 
Industry and Security, 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

[[Page 539]]

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 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 BIS.
    (b) Procedures. If BIS 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, BIS 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 BIS 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 
BIS may take under the EAR with respect to any application, order, 
license or authorization issued under the EAA, BIS 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 BIS 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

[[Page 540]]

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, BIS 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, BIS 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 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, BIS believes that renewal of the 
denial order is necessary in the public interest to prevent an imminent 
violation, BIS 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. BIS'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 BIS 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 BIS'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 BIS'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.

[[Page 541]]

    (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 BIS, 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 BIS 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.
    (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 BIS 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 export privileges.

    (a) General. The Director of the Office of Exporter Services, in 
consultation with the Director of the Office of Export Enforcement, may 
deny the export privileges of 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 such person export privileges, including but 
not limited to applying for, obtaining, or using any license, License 
Exception, or export control document; or participating in or benefiting 
in any way from any export or export-related transaction subject to the 
EAR. Before taking action to deny a person export privileges under this 
section, the Director of the Office of Exporter Services will provide 
the person written notice of the proposed action and an opportunity to 
comment through a written

[[Page 542]]

submission, unless exceptional circumstances exist. In reviewing the 
response, the Director of the Office of Exporter Services will consider 
any relevant or mitigating evidence why these privileges should not be 
denied. Upon final determination, the Director of the Office of Exporter 
Services will notify by letter each person denied export privileges 
under this section.
    (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 export privileges 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 export privileges 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 orders denying export privileges under this 
section are published in the Federal Register when issued, and, for the 
convenience of the public, information about those orders may be 
included in compilations maintained by BIS on a Web site and as a 
supplement to the unofficial edition of the EAR available by 
subscription from the Government Printing Office.
    (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.

[61 FR 12907, Mar. 25, 1996, as amended at 65 FR 14863, Mar. 20, 2000; 
67 FR 54953, Aug. 27, 2002]



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 Industry and Security (BIS) 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

[[Page 543]]

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 Sec. Sec.  768.4(b) and 768.7 of 
this part) and decontrol assessments (see Sec. Sec.  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 BIS conducts concerning the 
foreign availability of a given item based on the assessment criteria, 
data gathered by BIS, 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 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, Kyrgyzstan, 
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 BIS 
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 BIS has denied or has issued a letter of 
intent to deny a license. If the Secretary determines that foreign 
availability exists, BIS'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 BIS initiates for the purpose of determining whether an item is 
eligible for the expedited licensing procedure. (See Sec.  768.8 of this 
part).

[[Page 544]]

    Expedited licensing procedures. Under expedited licensing 
procedures, BIS 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 BIS 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 BIS. (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 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 BIS, 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; 
62 FR 25469, May 9, 1997]



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:

[[Page 545]]

    (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 BIS 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 
BIS, and the data and recommendations submitted by the Departments of 
Defense and State and other relevant departments and agencies, TAC 
committees, and industry. BIS 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 must submit a FAS or a TAC Certification to BIS. 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 
BIS has denied, or for which it has issued a letter of intent to deny on 
national security grounds, may request that BIS 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 BIS 
will initiate a decontrol assessment.
    (c) Decontrol assessment. (1) Any claimant may at any time request 
that BIS initiate a decontrol assessment by a FAS to BIS alleging 
foreign availability to any country or countries.
    (2) A TAC may request that BIS initiate a decontrol assessment at 
any time by submitting a TAC Certification to BIS 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) BIS mailing address. All foreign availability submissions and 
TAC certifications should be submitted to: Department of Commerce, 
Bureau of Industry and Security, 14th Street and

[[Page 546]]

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:
    (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, BIS will review it 
to determine whether there is sufficient evidence to support the belief 
that foreign availability may exist. If BIS determines the FAS or TAC 
certification is lacking in supporting evidence, BIS will seek 
additional evidence from appropriate sources, including the claimant or 
TAC. BIS 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.

    BIS 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 BIS 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 BIS accepts a FAS or TAC 
certification of foreign availability, BIS will notify

[[Page 547]]

the claimant or TAC that it is initiating the assessment.
    (2) BIS will publish a Federal Register notice of the initiation of 
any assessment.
    (3) BIS 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 BIS 
has initiated an assessment. Each such department, agency, and 
contractor shall provide BIS all relevant information concerning the 
item. BIS will invite interested departments and agencies to participate 
in the assessment process (See paragraph (e) of this section).
    (b) Data gathering. BIS 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 BIS 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. BIS 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, BIS, 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 BIS bases its recommendation will accompany the 
recommendation to the Secretary.
    (2) BIS 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 BIS assessment and recommendation; the 
Secretary's determination will take into account the evidence provided 
to BIS, 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. BIS will notify all appropriate U.S. 
agencies and Departments upon the initiation of an assessment and will 
invite their participation in the assessment process. BIS will provide 
all interested agencies and departments an opportunity to review source 
material, draft analyses and

[[Page 548]]

draft assessments immediately upon their receipt or production. For 
claimant-initiated assessments, BIS 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, BIS 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. BIS will prepare and submit a report to the TAC and 
to the Congress stating that:
    (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, BIS 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), BIS 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.

[[Page 549]]

    (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, BIS 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 be 
detrimental to the United States national security.
    (8) After the conclusion of negotiations, BIS will retain the 
control only to the extent that foreign availability is eliminated. If 
foreign availability is not eliminated, BIS 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, 
BIS 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 BIS becomes aware of 
conditions, including new evidence, that affect a previous determination 
that foreign availability exists or does not exist, BIS may review the 
conditions. If BIS finds that the foreign availability previously 
determined no longer exists, or that foreign availability not earlier 
found now does exist, BIS 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 BIS will publish a Federal 
Register notice of the determination.



Sec.  768.8  Eligibility of expedited licensing procedures for 
non-controlled countries.

    (a) BIS 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) BIS 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, BIS 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

[[Page 550]]

    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 BIS evaluation and recommendation, taking into consideration the 
evidence the Secretaries of Defense, State, and other interested 
agencies provide to BIS and any other information that the Secretary 
considers relevant.
    (f) Within 30 days of the receipt of the FAS or TAC certification, 
BIS 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, BIS 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 Industry and Security, 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.



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 BIS 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 Industry and Security (BIS) 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. BIS 
combines the submitted evidence with the evidence that it collects from 
other sources. BIS 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. BIS 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 BIS. 
If information is based on oral statements a third party made, the 
submitter should provide a memorandum of the conversation to BIS if the 
submitter cannot obtain a written memorandum from the source. BIS 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 BIS will 
consider in evaluating foreign availability. BIS will evaluate all 
evidence according to the provisions in Sec.  768.7(c) of this part in 
order for it to be used

[[Page 551]]

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
    (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.

[[Page 552]]

  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 Item interpretations.
770.3 Interpretations related to exports of technology and software to 
          destinations in Country Group D:1.

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 7, 2003, 
66 FR 47833, August 11, 2003.



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  Item 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.
    (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''

[[Page 553]]

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) or 
Automated Export System (AES) record, 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 or AES record 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 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 identity 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;

[[Page 554]]

    (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 BIS for a license.
    (2) [Reserved]
    (i) Interpretation 9: Aircraft, parts, accessories and components. 
Aircraft, 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''.

[[Page 555]]

    (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 or not your chemicals are 
controlled by this entry.

(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
    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

[[Page 556]]

    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
    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-piperidinol
(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

[[Page 557]]

    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
    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[dprime]-Nitrilotriethanol
    2,2',2[dprime]-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

[[Page 558]]

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.
    (m) Interpretation 13: Encryption commodities and software 
controlled for EI reasons. Encryption commodities and software 
controlled for EI reasons under ECCNs 5A002 and 5D002 may be pre-loaded 
on a laptop, handheld device or other computer or equipment and exported 
under the tools of trade provision of License Exception TMP or the 
personal use exemption under License Exception BAG, subject to the terms 
and conditions of such License Exceptions. This provision replaces the 
personal use exemption of the International Traffic and Arms Regulations 
(ITAR) that existed for such software prior to December 30, 1996. 
Neither License Exception TMP nor License Exception BAG contains a 
reporting requirement. Like other ``information security'' ``software'', 
components, ``electronic assemblies'' or modules, the control status of 
encryption commodities and software is determined in Category 5, part 2 
even if they are bundled, commingled or incorporated in a computer or 
other equipment. However, commodities and software specially designed 
for medical end-use that incorporate an item in Category 5, part 2 are 
not controlled in Category 5, part 2. See Note 1 to Category 5, part 2 
(``Information Security'') of Supplement No. 1 to Part 774 (the Commerce 
Control List) of the EAR.
    (n) Interpretation 14: Encryption commodity and software reviews. 
Review of encryption commodities or software is required to determine 
the eligibility of certain encryption items under License Exception ENC 
(see Sec.  740.17 of the EAR) or to release certain encryption items 
from ``EI'' controls (see Sec.  742.15(b)(2) of the EAR). Note that 
subsequent bundling, patches, upgrades or releases, including name 
changes, may be exported or reexported under the applicable provisions 
of the EAR without further review as long as the functional encryption 
capacity of the originally reviewed product has not been modified or 
enhanced. This interpretation does not extend to products controlled 
under a different category on the CCL.

[61 FR 12920, Mar. 25, 1996, as amended at 61 FR 67450, Dec. 23, 1996; 
62 FR 6686, Feb. 12, 1997; 62 FR 25469, 25470, May 9, 1997; 63 FR 50525, 
Sept. 22, 1998; 65 FR 62609, Oct. 19, 2000; 66 FR 49525, Sept. 28, 2001; 
67 FR 38868, June 6, 2002; 68 FR 35786, June 17, 2003; 68 FR 50474, Aug. 
21, 2003]



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 license. The only technology and software related to 
equipment exports that may be exported without a license is technology 
described in Sec. Sec.  734.7 through 734.11 of the EAR; operating 
technology and software described in Sec.  740.13(a) of the EAR; sales 
technology described in Sec.  740.13(b) of the EAR; and software updates 
described in Sec.  740.13(c) of the EAR.
    (c) Commingled technology and software. (1) U.S.-origin technology 
does not lose its U.S.-origin when it is

[[Page 559]]

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 in 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 in Sec.  734.4 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 in Sec.  734.4 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 TSU for operation technology and 
software described in Sec.  740.13(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 TSU for operation technology and software described in 
Sec.  740.13(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 TSU for operation technology and software described in Sec.  
740.13(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.  
740.13(a), but specifically represented in your license 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; 62 
FR 25470, May 9, 1997; 65 FR 14860, Mar. 20, 2000]

[[Page 560]]



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. 
13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 7, 2003, 
66 FR 47833, August 11, 2003.

    Source: 61 FR 12925, Mar. 25, 1996, unless otherwise noted.



Sec.  772.1  Definitions of terms as used in the Export Administration 
Regulations (EAR).

    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. If a term is used in only one 
Export Control Classification Number (ECCN) on the CCL, then that term 
will not appear in this part, but will be defined in the Related 
Definitions paragraph in the List of Items Controlled Section of that 
ECCN.
    AES. See ``Automated Export System.''
    ``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 minimum (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 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.
    AES. See ``Automated Export System.''
    Agricultural commodities. Agricultural commodities include food 
(including processed food); feed; fish; shellfish and fish products; 
beer, wine and spirits; livestock; fiber including cotton, wool and 
other fibers; tobacco and tobacco products; wood and wood products; 
seeds; fertilizer and organic fertilizer; reproductive materials such as 
fertilized eggs, embryos and semen. For the purposes of the EAR, 
agricultural commodities do not include furniture made from wood; 
clothing manufactured from plant or animal materials; agricultural 
equipment (whether hand tools or motorized equipment); pesticides, 
insecticides, or herbicides; or cosmetics (unless derived entirely from 
plant materials).

    Note 1: This definition of agricultural commodities includes 
fertilizer and organic fertilizer, as listed in section 775 of the 2001 
Agriculture, Rural Development, Food and Drug Administration, and 
Related Agencies Appropriations Act (Act) (Public Law 106-

[[Page 561]]

387) and commodities listed in section 102 of the Agricultural Trade Act 
of 1978 (7 U.S.C. 5602) as incorporated in section 902 of the Act, as 
well as commodities determined by the Department of Agriculture to fall 
within the scope of section 102 of the 1978 Agricultural Trade Act.
    Note 2: For purposes of License Exception AGR (see Sec.  740.18 of 
the EAR), agricultural commodities also include vitamins, minerals, food 
additives and dietary supplements, and bottled water. These items do not 
fall within the scope of section 102 of the 1978 Agricultural Trade Act, 
but are treated as agricultural commodities for the purposes of License 
Exception AGR.
    Note 3: For purposes of License Exception AGR and export license 
applications to Iran, Sudan and Libya under the licensing procedures set 
forth in the appropriate regulations promulgated and administered by 
Treasury's Office of Foreign Assets Control, agricultural commodities 
only include those that are classified as EAR99.

    ``Aircraft.'' (Cat 1, 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.
    ``All compensations available.'' (Cat 2) means after all feasible 
measures available to the manufacturer to minimize all systematic 
positioning errors for the particular machine-tool model are considered.
    ``Allocated by the ITU''. (Cat 3 and Cat 5 part 1)--The allocation 
of frequency bands according to the ITU Radio Regulations (Edition 1998) 
for primary, permitted and secondary services.
    N.B. Additional and alternative allocations are not included.
    ``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. The person who applies for an export or reexport license, 
and who has the authority of a principal party in interest to determine 
and control the export or reexport of items. See Sec.  748.4 of the EAR 
and definition for ``exporter'' in this part of the EAR.
    ``Asymmetric algorithm.'' (Cat 5) means a cryptographic algorithm 
using different, mathematically-related keys for encryption and 
decryption.
    Technical Note: A common use of ``asymmetric algorithms'' is key 
management.
    ``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.
    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 October 1996 include: Argentina, Australia, Austria, 
Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, 
Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea (South), 
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.
    Automated Export System (AES). AES is a nationwide system 
operational at all ports and for all methods of transportation through 
which export shipment data required by multiple agencies is filed 
electronically to Customs, using the efficiencies of Electronic Data 
Interchange (EDI). AES provides an alternative to filing paper Shipper's 
Export Declarations (SEDs), so that export information is collected 
electronically and edited immediately. For more information about AES, 
visit the Bureau of Census website at: http://www.customs.ustreas.gov/
impoexpo/abaesint.htm
    ``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.
    Bank. Means any of the following:

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    (a) Bank, savings association, credit union, bank holding company, 
bank or savings association service corporation, Edge Act corporation, 
Agreement corporation, or any insured depository institution, which is 
organized under the laws of the United States or any State and regulated 
or supervised by a Federal banking agency or a State bank supervisor; or
    (b) A company organized under the laws of a foreign country and 
regulated or supervised by a foreign bank regulatory or supervisory 
authority which engages in the business of banking, including without 
limitation, foreign commercial banks, foreign merchant banks and other 
foreign institutions that engage in banking activities usual in 
connection with the business of banking in the countries where such 
foreign institutions are organized or operating; or
    (c) An entity engaged in the business of providing clearing or 
settlement services, that is, or whose members are, regulated or 
supervised by a Federal banking agency, a State bank supervisor, or a 
foreign bank regulatory or supervisory authority; or
    (d) A branch or affiliate of any of the entities listed in 
paragraphs (a), (b), or (c) of this definition, regulated or supervised 
by a Federal banking agency, a State bank supervisor or a foreign bank 
regulatory or supervisory authority; or
    (e) An affiliate of any of the entities listed in paragraph (a), 
(b), (c), or (d) of this definition, engaged solely in the business of 
providing data processing services to a bank or financial institution, 
or a branch of such an affiliate.
    ``Basic gate propagation delay time.'' (Cat 3) The propagation delay 
time value corresponding to the basic gate used in a ``monolithic 
integrated circuit.'' For a `family' of ``monolithic integrated 
circuits'', this may be specified either as the propagation delay time 
per typical gate within the given `family' or as the typical propagation 
delay time per gate within the given `family'.
    Technical Notes: 1. ``Basic gate propagation delay time'' is not to 
be confused with the input/output delay time of a complex ``monolithic 
integrated circuit.''
    2. `Family' consists of all integrated circuits to which all of the 
following are applied as their manufacturing methodology and 
specifications except their respective functions:
    a. The common hardware and software architecture;
    b. The common design and process technology; and
    c. The common basic characteristics.
    ``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.
    ``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.
    Business Unit. As applied to encryption items, means a unit of a 
business which, whether or not separately incorporated, has:
    (a) A distinct organizational structure which does not overlap with 
other business units of the same business;
    (b) A distinct set of accounts; and
    (c) Separate facilities for purchase, sale, delivery, and production 
of goods and services.
    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 
the letters A through E: (A) Equipment, assemblies and components; (B) 
Test, inspection and production 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).

[[Page 563]]

    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''.
    ``Carbon fiber preforms.'' (Cat 1) means an ordered arrangement of 
uncoated or coated fibers intended to constitute a framework of a part 
before the ``matrix'' is introduced to form a ``composite.''
    Category. The Commerce Control List (CCL) is divided into ten 
categories: (0) Nuclear Materials, Facilities and Equipment, and 
Miscellaneous; (1) Materials, Chemicals, ``Microorganisms'', and Toxins; 
(2) Materials Processing; (3) Electronics Design, Development and 
Production; (4) Computers; (5) Telecommunications and Information 
Security; (6) Sensors; (7) Navigation and Avionics; (8) Marine; (9) 
Propulsion Systems, Space Vehicles, and Related 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.
    Chemical Weapons Convention (CWC). Means ``The Convention on the 
Prohibition of the Development, Production, Stockpiling and Use of 
Chemical Weapons and on Their Destruction'', opened for signature on 
January 13, 1993.
    ``Circulation-controlled, anti-torque or circulation-controlled 
direction control systems'' (Cat 7)--Control systems using air blown 
over aerodynamic surfaces to increase or control the forces generated by 
the surfaces.
    ``Civil aircraft''. (Cat 1, 7, and 9)--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 Industry and Security, 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. 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.
    ``Composite''. (Cat 1, 2, 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.

[[Page 564]]

    ``Composite theoretical performance''. (CTP) (Cat 3 and 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''.
    ``Computing element''. (CE) (Cat 4)--The smallest computational unit 
that produces an arithmetic or 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.
    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.
    ``Cryptanalytic items''. Systems, equipment, applications, specific 
electronic assemblies, modules and integrated circuits designed or 
modified to perform cryptanalytic functions, software having the 
characteristics of cryptanalytic hardware or performing cryptanalytic 
functions, or technology for the development, production or use

[[Page 565]]

of cryptanalytic commodities or software.
    Notes: 1. Cryptanalytic functions may include cryptanalysis, which 
is 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).
    2. Functions specially designed and limited to protect against 
malicious computer damage or unauthorized system intrusion (e.g., 
viruses, worms and trojan horses) are not construed to be cryptanalytic 
functions.
    ``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) means 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.
    Note: When determining the ``data signalling rate'', servicing and 
administrative channels shall be excluded.
    Technical Note: It is the maximum one-way rate, i.e., the maximum 
rate in either transmission or reception.
    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.)
    ``Deformable mirrors.'' (Cat 6) (also known as adaptive optic 
mirrors) means mirrors having:
    a. A single continuous optical reflecting surface which is 
dynamically deformed by the application of individual torques or forces 
to compensate for distortions in the optical waveform incident upon the 
mirror; or
    b. 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.
    ``Depleted uranium.'' (Cat 0) means uranium depleted in the isotope 
235 below that occurring in nature.
    ``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 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, perform all of the following:
    (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. (See 
also ``total digital transfer rate'')
    ``Direct-acting hydraulic pressing''. (Cat 2)--A deformation process 
that uses a fluid-filled flexible bladder in direct contact with the 
workpiece.

[[Page 566]]

    ``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. You maintain effective control over an item when 
you either retain physical possession of the item, or secure the item in 
such an environment as a hotel safe, a bonded warehouse, or a locked or 
guarded exhibition facility. Retention of effective control over an item 
is a condition of certain temporary exports and reexports.
    ``Effective Gram.'' (of ``special fissile material'') (Cat 0 and 1) 
means:
    a. For plutonium isotopes and uranium-233, the isotope weight in 
grams;
    b. For uranium enriched 1 percent or greater in the isotope uranium-
235, the element weight in grams multiplied by the square of its 
enrichment expressed as a decimal weight fraction;
    c. For uranium enriched below 1 percent in the isotope uranium-235, 
the element weight in grams multiplied by 0.0001.
    ``Electronic assembly.'' (Cat 3, 4, and 5) means 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.
    Technical 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.
    ``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 (both 
in transmission and reception) in azimuth or in elevation, or both, by 
application of an electrical signal.
    ``Encryption component''. Any encryption commodity or software 
(except source code), including encryption chips, integrated circuits, 
application specific encryption toolkits, or executable or linkable 
modules that alone are incapable of performing complete cryptographic 
functions, and is designed or intended for use in or the production of 
another encryption item.
    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 licensing arrangement. A license that allows the export 
of specified products to specified destinations in unlimited quantities. 
In certain cases, exports are limited to specified end-users for 
specified end-uses. Generally, reporting of all sales of the specified 
products is required at six month intervals. This includes sales made 
under distribution arrangements and distribution and warehousing 
agreements that were previously issued by the Department of State for 
encryption items.
    Encryption object code. Computer programs containing an encryption 
source code that has been compiled into a

[[Page 567]]

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 execution of an encryption 
function on a computer.
    ``End-effectors''. (Cat 2)--``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.
    End-user. The person abroad that receives and ultimately uses the 
exported or reexported items. The end-user is not a forwarding agent or 
intermediary, but may be the purchaser or ultimate consignee.
    ``Equivalent Density''. (Cat 6)--The mass of an optic per unit 
optical area projected onto the optical surface.
    ``Expert systems''. (Cat 4 and 7)--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; Delivery Verification Certificate or 
similar evidence of delivery; Shipper's Export Declaration (SED) or 
Automated Export System (AES) record 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

[[Page 568]]

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.
    Exporter. The person in the United States who has the authority of a 
principal party in interest to determine and control the sending of 
items out of the United States. Note that the Foreign Trade Statistics 
Regulations have a different definition for the term ``exporter''. Under 
the FTSR, the ``exporter'' is the U.S. principal party in interest (see 
Foreign Trade Statistics Regulations title 15 part 30).
    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.
    ``FADEC.'' See ``full authority digital engine control.''
    ``FMU''--See ``flexible manufacturing unit''
    ``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.
    Financial Institution. As applied to encryption items, means any of 
the following:
    (a) A broker, dealer, government securities broker or dealer, self-
regulatory organization, investment company or investment adviser, which 
is regulated or supervised by the Securities and Exchange Commission or 
a self-regulatory organization that is registered with the Securities 
and Exchange Commission; or
    (b) A broker, dealer, government securities broker or dealer, 
investment company, investment adviser, or entity that engages in 
securities activities that, if conducted in the United States, would be 
described by the definition of the term ``self-regulatory organization'' 
in the Securities Exchange Act of 1934, which is organized under the 
laws of a foreign country and regulated or supervised by a foreign 
securities authority; or
    (c) A U.S. board of trade that is designated as a contract market by 
the Commodity Futures Trading Commission or a futures commission 
merchant that is regulated or supervised by the Commodity Futures 
Trading Commission; or
    (d) A U.S. entity engaged primarily in the business of issuing a 
general purpose charge, debit, or stored value card, or a branch of, or 
affiliate controlled by, such an entity; or
    (e) A branch or affiliate of any of the entities listed in 
paragraphs (a), (b), or (c) of this definition regulated or supervised 
by the Securities and Exchange Commission, the Commodity Futures Trading 
Commission, or a foreign securities authority; or
    (f) An affiliate of any of the entities listed in paragraph (a), 
(b), (c), or (e), of this definition engaged solely in the business of 
providing data processing services to one or more bank or financial 
institutions, or a branch of such an affiliate; or
    (g) A company organized and regulated under the laws of any of the 
United States and its branches and affiliates whose primary and 
predominant business activity is the writing of insurance or the 
reinsuring of risks; or

[[Page 569]]

a company organized and regulated under the laws of a foreign country 
and its branches and affiliates whose primary and predominant business 
activity is the writing of insurance or the reinsuring of risks.
    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.
    ``Flight control optical sensor array.'' (Cat 7) is a network of 
distributed optical sensors, using ``laser'' beams, to provide real-time 
flight control data for on-board processing.
    ``Flight path optimization.'' (Cat 7) is a procedure that minimizes 
deviations from a four-dimensional (space and time) desired trajectory 
based on maximizing performance or effectiveness for mission tasks.
    ``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 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.
    Foreign Terrorist Organizations (FTO). Any organization that is 
determined by the Secretary of the Treasury to be a foreign terrorist 
organization under notices or regulations issued by the Office of 
Foreign Assets Control (see 31 CFR chapter V).
    Forwarding agent. The person in the United States who is authorized 
by a principal party in interest to perform the services required to 
facilitate the export of the items from the United States. This may 
include air couriers

[[Page 570]]

or carriers. In routed export transactions, the forwarding agent and the 
exporter may be the same for compliance purposes under the EAR.
    ``Fractional bandwidth''. (Cat 3)--The ``instantaneous bandwidth'' 
divided by the center frequency, expressed as a percentage.
    ``Frequency hopping''. (Cat 5 part 1 and 5 part 2)--A form of 
``spread spectrum'' in which the transmission frequency of a single 
communication channel is made to change by a random or pseudo-random 
sequence of discrete steps.
    ``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.
    ``Full Authority Digital Engine Control.'' (``FADEC'') (Cat 7 and 9) 
means an electronic control system for gas turbine or combined cycle 
engines utilizing a digital computer to control the variables required 
to regulate engine thrust or shaft power output throughout the engine 
operating range from the beginning of fuel metering to fuel shutoff.
    ``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.
    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'').
    ``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.
    ``Government end-user (as applied to encryption items)''. A 
government end-user is any foreign central, regional or local government 
department, agency, or other entity performing governmental functions; 
including governmental research institutions, governmental corporations 
or their separate business units (as defined in part 772 of the EAR) 
which are engaged in the manufacture or distribution of items or 
services controlled on the Wassenaar Munitions List, and international 
governmental organizations. This term does not include: utilities 
(including telecommunications companies and Internet service providers); 
banks and financial institutions; transportation; broadcast or 
entertainment; educational organizations; civil health and medical 
organizations; retail or wholesale firms; and manufacturing or 
industrial entities not engaged in the manufacture or distribution of 
items or services controlled on the Wassenaar Munitions List.
    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;

[[Page 571]]

    (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.
    ``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 and 5)--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.
    Intent to Deny (ITD) letter. A letter informing the applicant:
    (a) Of the reason for BIS'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 BIS 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 person that acts as an agent for a 
principal party in interest for the purpose of effecting delivery of 
items to the ultimate consignee. The intermediate consignee may be a 
bank, forwarding agent, or other person who acts as an agent for a 
principal party in interest.
    ``Intrinsic Magnetic Gradiometer''. (Cat 6)--A single magnetic field 
gradient 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.''

[[Page 572]]

    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 Industry and Security 
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 BIS 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 BIS. 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. 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.: ISO 10360-2 or 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.

[[Page 573]]

    ``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.
    Medical devices. For purposes of the EAR, medical devices are 
``devices'' as defined in section 201 of the Federal Food, Drug, and 
Cosmetic Act (21 U.S.C. 321) including medical supplies, instruments, 
equipment, equipped ambulances, institutional washing machines for 
sterilization, and vehicles with medical testing equipment. Note that 
certain component parts and spares to be exported for incorporation into 
medical devices are on the Commerce Control List. Only items meeting the 
definition of ``medical device'' and that are classified as EAR99 are 
eligible for export to Iran, Libya and Sudan under the licensing 
procedures set forth in the appropriate regulations promulgated and 
administered by Treasury's Office of Foreign Assets Control.
    Medicines. Medicines means ``drug'' as defined in section 201 of the 
Federal Food, Drug and Cosmetic Act (21 U.S.C. 321). For purposes of the 
EAR, medicines includes prescription and over the counter medicines for 
humans and animals. Note that certain medicines, such as vaccines and 
immunotoxins, are on the Commerce Control List. Only items meeting the 
definition of ``medicine'' and that are classified as EAR99 are eligible 
for export to Iran, Libya and Sudan under the licensing procedures set 
forth in the appropriate regulations promulgated and administered by 
Treasury's Office of Foreign Assets Control.
    ``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.
    Microcomputer microcircuit. (Cat 3) means 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 internal storage, on data contained in the internal 
storage.
    Technical Note 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.
    Technical Note 2: The internal storage may be augmented by an 
external storage.
    Note: This definition includes chip sets which are designed to 
operate together to provide the function of a ``microprocessor 
microcircuit.''
    ``Microorganisms.'' (Cat 1 and 2) means bacteria, viruses, 
mycoplasms, rickettsiae, chlamydiae or fungi, whether natural, enhanced 
or modified, either in the form of isolated live cultures or as material 
including living material which has been deliberately inoculated or 
contaminated with such cultures.
    ``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

[[Page 574]]

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.
    ``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.
    ``Monospectral imaging sensors.'' (Cat 6) are capable of acquisition 
of imaging data from one discrete spectral band.
    ``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 entred on the 
Shipper's Export Declaration or an Automated Export System record 
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.
    ``Natural uranium.'' (Cat 0) means uranium containing the mixtures 
of isotopes occurring in nature.
    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.
    ``Neural computer''. (Cat 4)--A computational device designed or 
modified to mimic the behavior of a neuron or a

[[Page 575]]

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-
f1), 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 reactor.'' (Cat 0 and 2) includes the items within or 
attached directly to the reactor vessel, the equipment which controls 
the level of power in the core, and the components which normally 
contain, come into direct contact with or control the primary coolant of 
the reactor core.
    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. 
Members include: Argentina, Australia, Austria, Belarus, Belgium, 
Brazil, Bulgaria, Canada, Cyprus, Czech Republic, Denmark, Finland, 
France, Germany, Greece, Hungary, Ireland, Italy, Japan, Kazakhstan, 
Latvia, Luxembourg, the Netherlands, New Zealand, Norway, Poland, 
Portugal, Republic of Korea, Romania, Russia, Slovak Republic, Slovenia, 
Spain, South Africa, Sweden, Switzerland, Turkey, Ukraine, 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 9)--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.)
    ``Open cryptographic interface''. A mechanism which is designed to 
allow a customer or other party to insert cryptographic functionality 
without the intervention, help or assistance of the manufacturer or its 
agents, e.g., manufacturer's signing of cryptographic code or 
proprietary interfaces. If the cryptographic interface implements a 
fixed set of cryptographic algorithms, key lengths or key exchange 
management systems, that cannot be changed, it will not be considered an 
``open'' cryptographic interface. All general application programming 
interfaces (e.g., those that accept either a cryptographic or non-
cryptographic interface but do not themselves maintain any cryptographic 
functionality) will not be considered ``open'' cryptographic interfaces.
    ``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

[[Page 576]]

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 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.
    Order Party. The 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.
     Organization for the Prohibition of Chemical Weapons (OPCW). Means 
the international organization, located in The Hague, Netherlands, that 
administers the Chemical Weapons Convention.
    Other party authorized to receive license. The person authorized by 
the applicant to receive the license. If a person and address is listed 
in Block 15 of the BIS-748P Multipurpose Application Form, the Bureau of 
Industry and Security will send the license to that person instead of 
the applicant. Designation of another party to receive the license does 
not alter the responsibilities of the applicant, licensee or exporter.
    ``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.).
    ``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).
    ``Payload'' (MTCR). The total mass that can be carried or delivered 
by the specified rocket system or unmanned aerial vehicle (UAV) system 
that is not used to maintain flight.

    Note: The particular equipment, subsystems, or components to be 
included in the payload depends on the type and configuration of the 
vehicle under consideration.

                            Technical Notes:

    a. Ballistic Missiles
    1. ``Payload'' for systems with separating re-entry vehicles (RVs) 
includes:
    i. The RVs, including:
    A. Dedicated guidance, navigation, and control equipment;
    B. Dedicated countermeasures equipment;
    ii. Munitions of any type (e.g., explosive or non-explosive);
    iii. Supporting structures and deployment mechanisms for the 
munitions (e.g. hardware used to attach to, or separate the RV from, the 
bus/post-boost vehicle) that can be removed without violating the 
structural integrity of the vehicle;
    iv. Mechanisms and devices for safing, arming, fuzing, or firing;
    v. Any other countermeasures equipment (e.g., decoys, jammers, or 
chaff dispensers) that separate from the RV bus/post-boost vehicle;
    vi. The bus/post-boost vehicle or attitude control/velocity trim 
module not including systems/subsystems essential to the operation of 
other stages.
    2. ``Payload'' for systems with non-separating re-entry vehicles 
includes:
    i. Munitions of any type (e.g., explosive or non-explosive);
    ii. Supporting structures and deployment mechanisms for the 
munitions that can be removed without violating the structural integrity 
of the vehicle;
    iii. Mechanisms and devices for safing, arming, fuzing or firing;

[[Page 577]]

    iv. Any countermeasures equipment (e.g., decoys, jammers, or chaff 
dispensers) that can be removed without violating the structural 
integrity of the vehicle.
    b. Space Launch Vehicles--``Payload'' includes:
    1. Satellites (single or multiple);
    2. Satellite-to-launch vehicle adapters including, if applicable, 
apogee/perigee kick motors or similar maneuvering systems;
    c. Sounding Rockets--``Payload'' includes:
    1. Equipment required for a mission, such as data gathering, 
recording or transmitting devices for mission-specific data;
    2. Recovery equipment (e.g., parachutes) that can be removed without 
violating the structural integrity of the vehicle.
    d. Cruise Missiles--``Payload'' includes:
    1. Munitions of any type (e.g., explosive or non-explosive);
    2. Supporting structures and mechanisms for the munitions that can 
be removed without violating the structural integrity of the vehicle;
    3. Mechanisms and devices for safing, arming, fuzing or firing;
    4. Countermeasures equipment (e.g., decoys, jammers or chaff 
dispensers) that can be removed without violating the structural 
integrity of the vehicle;
    5. Signature alteration equipment that can be removed without 
violating the structural integrity of the vehicle;
    e. Other UAVs--``Payload'' includes:
    1. Munitions of any type (e.g., explosive or non-explosive);
    2. Mechanisms and devices for safing, arming, fuzing or firing;
    3. Countermeasures equipment (e.g., decoys, jammers or chaff 
dispensers) that can be removed without violating the structural 
integrity of the vehicle;
    4. Signature alteration equipment that can be removed without 
violating the structural integrity of the vehicle;
    5. Equipment required for a mission such as data gathering, 
recording or transmitting devices for mission-specific data;
    6. Recovery equipment (e.g., parachutes) that can be removed without 
violating the structural integrity of the vehicle.
    ``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 which has been programmed for a specific application and 
cannot be reprogrammed for any other application 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 (1988), 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;

[[Page 578]]

    (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).
    ``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.
    ``Previously separated.'' (Cat 1) The application of any process 
intended to increase the concentration of the controlled isotope.
    ``Primary flight control.'' (Cat 7) ``Aircraft'' stability or 
maneuvering control using force/moment generators, i.e., aerodynamic 
control surfaces or propulsive thrust vectoring.
    ``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.
    Principal parties in interest. Those persons in a transaction that 
receive the primary benefit, monetary or otherwise, of the transaction. 
Generally, the principals in a transaction are the seller and the buyer. 
In most cases, the forwarding or other agent is not a principal party in 
interest.
    ``Production''. (General Technology Note) (All Categories)--Means 
all production stages, such as: product engineering, manufacture, 
integration, assembly (mounting), inspection, testing, quality 
assurance.
    ``Production equipment''. (MTCR context)--Tooling, templates, jigs, 
mandrels, moulds, dies, fixtures, alignment mechanisms, test equipment, 
other machinery and components therefor, limited to those specially 
designed or modified for ``development'' or for one or more phases of 
``production''.
    Production. (General Technology Note)--Means all production stages, 
such as: product engineering, manufacture, integration, assembly 
(mounting), inspection, testing, quality assurance.
    ``Program.'' (Cat 2, 4, 5, and 6)--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 to 
purchase an item for delivery to the ultimate consignee. In most cases, 
the purchaser is not a bank, forwarding agent, or intermediary. The 
purchaser and ultimate consignee may be the same entity.
    ``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

[[Page 579]]

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.
    ``Range'' (MTCR). The maximum distance that the specified rocket 
system or unmanned aerial vehicle (UAV) system is capable of traveling 
in the mode of stable flight as measured by the projection of its 
trajectory over the surface of the Earth.

                            Technical Notes:

    a. The maximum capability based on the design characteristics of the 
system, when fully loaded with fuel or propellant, will be taken into 
consideration in determining range.
    b. The range for both rocket systems and UAV systems will be 
determined independently of any external factors such as operational 
restrictions, limitations imposed by telemetry, data links or other 
external constraints.
    c. For rocket systems, the range will be determined using the 
trajectory that maximizes range, assuming ICAO standard atmosphere with 
zero wind.
    d. For UAV systems, the range will be determined for a one-way 
distance using the most fuel-efficient flight profile (e.g., cruise 
speed and altitude), assuming ICAO standard atmosphere with zero wind.
    ``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 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, 4, 6, and 7)--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.
    Recoverable commodities and software. As applied to encryption 
items, means any of the following:
    (a) A stored data product containing a recovery feature that, when 
activated, allows recovery of the plaintext of encrypted data without 
the assistance of the end-user; or
    (b) A product or system designed such that a network administrator 
or other authorized persons who are removed from the end-user can 
provide law enforcement access to plaintext without the knowledge or 
assistance of the end-user. This includes, for example, products or 
systems where plaintext exists and is accessible at intermediate points 
in a network or infrastructure system, enterprise-controlled recovery 
systems, and products which permit recovery of plaintext at the server 
where a system administrator controls or can provide recovery of 
plaintext across an enterprise.
    Note to this definition: ``Plaintext'' indicates that data that is 
initially received by or presented to the recoverable product before 
encryption takes place.
    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

[[Page 580]]

country to a party resident in another country.
    Replacement license. An authorization by the Bureau of Industry and 
Security revising the information, conditions, or riders stated on a 
license issued by BIS. See Sec.  750.7 of the EAR.
    ``Required''. (General Technology Note)(Cat 4, 5, 6, and 9)--As 
applied to ``technology'' or ``software'', refers to only that portion 
of ``technology'' or ``software'' which is peculiarly responsible for 
achieving or exceeding the controlled performance levels, 
characteristics or functions. Such ``required'' ``technology'' or 
``software'' may be shared by different products. For example, assume 
product ``X'' is controlled if it operates at or above 400 MHz and is 
not controlled if it operates below 400 MHz. If production technologies 
``A'', ``B'', and ``C'' allow production at no more than 399 MHz, then 
technologies ``A'', ``B'', and ``C'' are not ``required'' to produce the 
controlled product ``X''. If technologies ``A'', ``B'', ``C'', ``D'', 
and ``E'' are used together, a manufacturer can produce product ``X'' 
that operates at or above 400 MHz. In this example, technologies ``D'' 
and ``E'' are ``required'' to make the controlled product and are 
themselves controlled under the General Technology Note. (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 pro gram mabil ity'' 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) Fixed 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 
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.
    ``Routed export transaction''. A transaction where the foreign 
principal party in interest authorizes a U.S. forwarding or other agent 
to facilitate export of items from the United States.

[[Page 581]]

    ``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).
    ``SHPL.'' (Cat 6) is equivalent to ``Super High Power Laser'', see 
definition for ``super high power laser.''
    SNEC. See Subgroup on Nuclear Export Coordination.
    ``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, 5, and 6)--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).
    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, 5, 6, 7, and 9)--A 
convenient expression of one or more processes that may be turned by a 
programming system into equipment executable form (``object code'' (or 
object language)).
    ``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.
    ``Special fissile material.'' (Cat 0) means plutonium-239, uranium-
233, ``uranium enriched in the isotopes 235 or 233'', and any material 
containing the foregoing.
    Note: As defined by 10 CFR 110.2 of the Nuclear Regulatory 
Commission Regulations, ``Special fissile material'' means: plutonium, 
uranium-233 or uranium enriched above 0.711 percent by weight in the 
isotope uranium-235.
    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 (SDT). 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

[[Page 582]]

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'')
    ``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.
    Strategic partner (of a U.S. company). As applied to encryption 
items, means a foreign-based entity that:
    (a) Has a business need to share the proprietary information with 
one or more U.S. companies; and
    (b) Is contractually bound to the U.S. company (e.g., has an 
established pattern of continuing or recurring contractual relations).
    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 Industry and Security (BIS) 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.

[[Page 583]]

    ``Superalloy''. (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 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.
    ``Symmetric algorithm''. (Cat 5, Part II) A cryptographic algorithm 
using an identical key for both encryption and decryption. A common use 
of ``symmetric algorithms'' is confidentiality of data.
    ``System 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.
    ``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.
    ``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).
    ``Time-modulated ultra-wideband''. (Cat 5 part 1 and Cat 5 part 2) 
The technique in which very short precisely time-controlled RF pulses 
are modulated in accordance with communications data by shifting pulse 
positions (usually called Pulse Position Modulation, PPM) channelized or 
scrambled in accordance with pseudo-random noise codes by PPM, then 
transmitted and received in the direct pulse form without using any 
carrier frequencies, consequently having extremely low power density 
over ultra-wide frequency bands. It is also known as Impulse Radio.
    ``Total control of flight.'' (Cat 7) means an automated control of 
``aircraft'' state variables and flight path to meet mission objectives 
responding to real time changes in data regarding objectives, hazards or 
other ``aircraft.''

[[Page 584]]

    ``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''.)
    ``Toxins.'' (Cat 1 and 2) means toxins in the form of deliberately 
isolated preparations or mixtures, no matter how produced, other than 
toxins present as contaminants of other materials such as pathological 
specimens, crops, foodstuffs or seed stocks of ``microorganisms.''
    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''.
    U.S. Person. (a) For purposes of Sec. Sec.  744.6, 744.10, 744.11, 
744.12, 744.13 and 744.14 of the EAR, 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.
    (b) See also Sec.  740.9 and parts 746 and 760 of the EAR for 
definitions of ``U.S. person'' that are specific to those parts.
    U.S. subsidiary. As applied to encryption items, means
    (a) A foreign branch of a U.S. company; or
    (b) A foreign subsidiary or entity of a U.S. entity in which:
    (1) The U.S. entity beneficially owns or controls (whether directly 
or indirectly) 25 percent or more of the voting securities of the 
foreign subsidiary or entity, if no other persons owns or controls 
(whether directly or indirectly) an equal or larger percentage; or
    (2) The foreign entity is operated by the U.S. entity pursuant to 
the provisions of an exclusive management contract; or
    (3) A majority of the members of the board of directors of the 
foreign subsidiary or entity also are members of the comparable 
governing body of the U.S. entity; or
    (4) The U.S. entity has the authority to appoint the majority of the 
members of the board of directors of the foreign subsidiary or entity; 
or
    (5) The U.S. entity has the authority to appoint the chief operating 
officer of the foreign subsidiary or entity.
    Ultimate consignee. The principal party in interest located abroad 
who receives the exported or reexported items. The ultimate consignee is 
not a forwarding agent or other intermediary, but may be the end-user.
    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

[[Page 585]]

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''. (All categories and 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 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; 
62 FR 6686, Feb. 12, 1997; 62 FR 25470, May 9, 1997; 63 FR 50525, Sept. 
22, 1998; 63 FR 72166, Dec. 31, 1998; 64 FR 1122, Jan. 8, 1999; 64 FR 
5932, Feb. 8, 1999; 64 FR 13339, Mar. 18, 1999; 64 FR 27146, May 18, 
1999; 65 FR 2501, Jan. 14, 2000; 65 FR 34075, May 26, 2000; 65 FR 42573, 
July 10, 2000; 65 FR 43133, July 12, 2000; 65 FR 62609, Oct. 19, 2000; 
66 FR 18402, Apr. 9, 2001; 66 FR 36683, July 12, 2001; 66 FR 36910, July 
16, 2001; 66 FR 461, Jan. 3, 2002; 67 FR 38869, June 6, 2002; 67 FR 
54953, Aug. 27, 2002; 67 FR 55599, Aug. 29, 2002; 68 FR 10591, Mar. 5, 
2003; 68 FR 34195, June 6, 2003; 68 FR 50474, Aug. 21, 2003; 68 FR 
54656, Sept. 18, 2003; 68 FR 60289, Oct. 22, 2003; 68 FR 68980, Dec. 10, 
2003]

    Editorial Note: At 66 FR 36910, July 16, 2001, Sec.  772.1 was 
amended by revising the phrase ``Cat. 1 and 7'' to read ``All 
Categories'' in the definition for ``Production''. However, this phrase 
does not exist in this definition in the 2001 edition of the volume.



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--Statement of Understanding

    Source: 61 FR 12937, Mar. 25, 1996, unless otherwise noted.

    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; 30 U.S.C. 185(s), 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; Sec. 901-911, Pub. L. 106-387; Sec. 221, Pub. L. 107-56; 
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 
44025, 3 CFR, 2001 Comp., p. 783; Notice of August 7, 2003, 68 FR 47833, 
August 11, 2003.

[[Page 586]]



Sec.  774.1  Introduction.

    In this part, references to the EAR are references to 15 CFR chapter 
VII, subchapter C. The Bureau of Industry and Security (BIS) maintains 
the Commerce Control List (CCL) that includes items (commodities, 
software, and technology) subject to the authority of BIS. 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, and Equipment [and 
                          Miscellaneous Items]

                  A. Systems, Equipment and Components

0A001 ``Nuclear reactors'', i.e., reactors capable of operation so as to 
          maintain a controlled, self-sustaining fission chain reaction, 
          and equipment and components specially designed or prepared 
          for use in connection with a ``nuclear reactor'', including 
          (see List of Items Controlled).

License Requirements

Reason for Control:
Control(s): Items described in 0A001 are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110)

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: N/A.
Related Controls: N/A
Related Definitions: N/A
Items: a. Pressure vessels, i.e. metal vessels as complete units or X 
parts therefor, which are specially designed or prepared to contain the 
core of a ``nuclear reactor'' and are capable of withstanding the 
operating pressure of the primary coolant, including the top plate for a 
reactor pressure vessel;
    b. Fuel element handling equipment, including reactor fuel charging 
and discharging machines;
    c. Control rods specially designed or prepared for the control of 
the reaction rate in a ``nuclear reactor'', including the neutron 
absorbing part and the support or suspension structures therefore, and 
control rod guide tubes;
    d. Electronic controls for controlling the power levels in ``nuclear 
reactors'', including reactor control rod drive mechanisms and radiation 
detection and measuring instruments to determine neutron flux levels;
    e. Pressure tubes specially designed or prepared to contain fuel 
elements and the primary coolant in a ``nuclear reactor'' at an 
operating pressure in excess of 5.1 MPa;
    f. Tubes or assemblies of tubes, made from zirconium metal or alloy 
in which the ratio of hafnium to zirconium is less than 1:500 parts by 
weight, specially designed or prepared for use in a ``nuclear reactor'';
    g. Coolant pumps specially designed or prepared for circulating the 
primary coolant of ``nuclear reactors'';
    h. Internal components specially designed or prepared for the 
operation of a ``nuclear reactor'', including core support structures, 
thermal shields, baffles, core grid plates and diffuser plates;
    i. Heat exchangers.

0A002 Power generating or propulsion equipment specially designed for 
          use with space, marine or mobile ``nuclear reactors''. (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.)

0A018 Items on the International Munitions List.

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
LVS: $5000 for 0A018.a and .b, $3000 for 0A018.c, $1500 for 0A018.d 
through .f, $0 for Rwanda
GBS: N/A
CIV: N/A

List of Items Controlled


[[Page 587]]


Unit: 0A018.a, .b, and .c in $ value; 0A018.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 0A018.

    f. Military helmets, except:
    f.1. Conventional steel helmets other than those described by 
0A018.f.2 of this entry.
    f.2. Helmets, made of any material, equipped with communications 
hardware, optional sights, slewing devices or mechanisms to protect 
against thermal flash or lasers.

    Note: Helmets described in 0A018.f.1 are controlled by 0A988. 
Helmets described in 0A018.f.2 are controlled by the U.S. Department of 
State, Office of Defense Trade Controls (See 22 CFR part 121, Category 
X).

0A978 Saps.

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.

0A979 Police helmets and shields; 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: $ value
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

0A980 Horses by sea.

License Requirements

Reason for Control: SS
Control(s): 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 Restraint devices, including thumbcuffs, leg irons, shackles, and 
          handcuffs; straight jackets, plastic handcuffs; and parts and 
          accessories, n.e.s.

License Requirements

Reason for Control: CC
Control(s)
CC applies to entire entry. A license is required for ALL destinations, 
except Canada, 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.

0A983 Specially designed implements of torture and thumbscrews; and 
          parts and accessories, n.e.s.

License Requirements

Reason for Control: CC
Control(s): CC applies to entire entry. A license is required for ALL 
destinations, regardless of end-use. Accordingly, a column

[[Page 588]]

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, FC, UN.

------------------------------------------------------------------------
                Control(s)                         Country chart
------------------------------------------------------------------------
FC applies to entire entry...............  FC Column 1.
CC applies to shotguns with a barrel       CC Column 1.
 length greater than or equal to 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 applies to shotguns with a barrel       CC Column 2.
 length greater than or equal to 24 in.
 (60.96 cm), regardless of end-user.
CC applies to shotguns with a barrel       CC Column 3.
 length greater than or equal to 24 in.
 (60.96 cm) if for sale or resale to
 police or law enforcement.
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.) 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 Discharge type arms (for example, stun guns, shock batons, 
          electric cattle prods, immobilization guns and projectiles) 
          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)
------------------------------------------------------------------------
CC applies to entire entry. A license is required for ALL destinations,
 except Canada, 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.)
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: 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: AT, FC, UN.

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
AT applies to entire entry. A license is required for items controlled
 by this entry to North Korea for anti-terrorism reasons. The Commerce
 Country Chart is not designed to determine AT licensing requirements
 for this entry. See Sec.   742.19 of the EAR for additional
 information.
FC applies to entire entry..............  FC Column 1.
UN applies to entire entry. A license is required for items controlled
 by this entry to Rwanda. The Commerce Country Chart is not designed to
 determine licensing requirements for this entry. See part 746 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

0A987 Optical sighting devices for firearms (including shotguns 
          controlled by 0A984); and parts, n.e.s.
License Requirements

Reason for Control: FC, CC, UN.

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
FC applies to optical sights for          FC Column 1.
 firearms, including shotguns described
 in ECCN 0A984, and related parts.
CC applies to entire entry..............  CC Column 1.
UN applies to entire entry..............  Rwanda.
------------------------------------------------------------------------


0A988 Conventional military steel helmets as described by 0A018.f.1; and 
          machetes.


[[Page 589]]


License Requirements

Reason for Control: UN.
Control(s): UN applies to entire entry. A license is required for 
conventional military steel helmets as described by 0A018.f.1 to Rwanda. 
A license is required for machetes to 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


0A999 Specific Processing Equipment, as Follows (See List of Items 
          Controlled).

License Requirements

Reason for Control: AT.
Control(s).
    Country Chart.
    AT applies to entire entry. A license is required for items 
controlled by this entry to North Korea for anti-terrorism reasons. The 
Commerce Country Chart is not designed to determine AT licensing 
requirements for this entry. See Sec.  742.19 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:
    a. Ring Magnets;
    b. Reserved.

              B. Test, Inspection and Production Equipment

0B001 Plant for the separation of isotopes of ``natural uranium'' and 
          ``depleted uranium'', ``special fissile materials'' and 
          ``other fissile materials'', and specially designed or 
          prepared equipment and components therefor, as follows (see 
          List of Items Controlled).

License Requirements

Reason for Control:
Control(s): Items described in 0B001 are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110).

License Exceptions,

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: ``Materials resistant to corrosion by 
UF6'' may be copper, stainless steel, aluminum, aluminum 
oxide, aluminum alloys, nickel or alloy containing 60 weight percent or 
more nickel and UF6-resistant fluorinated hydrocarbon 
polymers, as appropriate for the type of separation process.
Items: a. Plant specially designed for separating isotopes of ``natural 
uranium'' and ``depleted uranium'', ``special fissile materials'' and 
``other fissile materials'', as follows:

    a.1. Gaseous diffusion separation plant;
    a.2. Gas centrifuge separation plant;
    a.3. Aerodynamic separation plant;
    a.4. Chemical exchange separation plant;
    a.5. Ion-exchange separation plant;
    a.6. Atomic vapor ``laser'' isotopic separation plant;
    a.7. Molecular ``laser'' isotopic separation plant;
    a.8. Plasma separation plant;
    a.9. Electro magnetic separation plant;
    b. Equipment and components, specially designed or prepared for 
gaseous diffusion separation process, as follows:
    b.1. Bellow valves made of or protected by materials resistant to 
UF6 (e.g., aluminum, aluminum alloys, nickel or alloy 
containing 60 weight percent or more nickel), with a diameter of 40 mm 
to 1500 mm;
    b.2.a. Compressors (positive displacement, centrifugal and axial 
flowtypes) or gas blowers with a suction volume capacity of 1 
m3/min or more of UF6, and discharge pressure up 
to 666.7 kPa, made of or protected by materials resistant to 
UF6 (e.g. aluminum, aluminum alloys, nickel or alloy 
containing 60 weight percent or more nickel);
    b.2.b. Rotary shaft seals for compressors or blowers specified in 
0B001.b.2.a. and designed for a buffer gas in-leakage rate of less than 
1,000 cm3/min.;
    b.3. Gaseous diffusion barriers made of porous metallic, polymer or 
ceramic materials resistant to corrosion by UF6 with a pore 
size of 10 to 100 nm, a thickness of 5 mm or less, and, for tubular 
forms, a diameter of 25 mm or less;

[[Page 590]]

    b.4. Gaseous diffuser housings made of or protected by materials 
resistant to corrosion by UF6;
    b.5. Heat exchangers made of aluminum, copper, nickel, or alloys 
containing more than 60 weight percent nickel, or combinations of these 
metals as clad tubes, designed to operate at sub-atmospheric pressure 
with a leak rate that limits the pressure rise to less than 10 Pa per 
hour under a pressure differential of 100 kPa;
    c. Equipment and components, specially designed or prepared for gas 
centrifuge separation process, as follows:
    c.1. Gas centrifuges;
    c.2. Complete rotor assemblies consisting of one or more rotor tube 
cylinders;
    c.3. Rotor tube cylinders with a thickness of 12 mm or less, a 
diameter of between 75 mm and 400 mm, made from any of the following 
high strength-to-density ratio materials:
    c.3.a. Maraging steel capable of an ultimate tensile strength of 
2,050 MPa or more;
    c.3.b. Aluminum alloys capable of an ultimate tensile strength of 
460 MPa or more; or
    c.3.c. ``Fibrous or filamentary materials'' with a ``specific 
modulus'' of more than 3.18 x 106 m and a ``specific tensile 
strength'' greater than 76.2 x 103 m;
    c.4. Magnetic suspension bearings consisting of an annular magnet 
suspended within a housing made of UF6 resistant materials 
(e.g. aluminum, aluminum alloys, nickel or alloy containing 60 weight 
percent or more nickel) containing a damping medium and having the 
magnet coupling with a pole piece or second magnet fitted to the top cap 
of the rotor;
    c.5. Specially prepared bearings comprising a pivot-cup assembly 
mounted on a damper;
    c.6. Rings or bellows with a wall thickness of 3 mm or less and a 
diameter of between 75 mm and 400 mm and designed to give local support 
to a rotor tube or to join a number together, made from any of the 
following high strength-to-density ratio materials;
    c.6.a. Maraging steel capable of an ultimate tensile strength of 
2050 MPa or more;
    c.6.b. Aluminum alloys capable of an ultimate tensile strength of 
460 MPa or more; or
    c.6.c. ``Fibrous or filamentary materials'' with a ``specific 
modulus'' of more than 3.18 x 106 m and a ``specific tensile 
strength'' greater than 76.2 x 103 m;''.
    c.7. Baffles of between 75 mm and 400 mm diameter for mounting 
inside a rotor tube, made from any of the following high strength-to-
density ratio materials:
    c.7.a. Maraging steel capable of an ultimate tensile strength of 
2050 MPa or more;
    c.7.b. Aluminum alloys capable of an ultimate tensile strength of 
460 MPa or more; or
    c.7.c. ``Fibrous or filamentary materials'' with a ``specific 
modulus'' of more than 3.18 x 106 m and a ``specific tensile 
strength'' greater than 76.2 x 103 m;''.
    c.8. Top and bottom caps of between 75 mm and 400 mm diameter to fit 
the ends of a rotor tube, made from any of the following high strength-
to-density ratio materials:
    c.8.a. Maraging steel capable of an ultimate tensile strength of 
2050 MPa or more; or
    c.8.b. Aluminum alloys capable of an ultimate tensile strength of 
460 MPa or more;
    c.8.c. ``Fibrous or filamentary materials'' with a ``specific 
modulus'' of more than 3.18 x 106 m and a ``specific tensile 
strength'' greater than 76.2 x 103 m.
    c.9. Molecular pumps comprised of cylinders having internally 
machined or extruded helical grooves and internally machined bores;
    c.10. Ring-shaped motor stators for multiphase AC hysteresis (or 
reluctance) motors for synchronous operation within a vacuum in the 
frequency range of 600 to 2,000 Hz and a power range of 50 to 1,000 
Volt-Amps;
    c.11. Frequency changers (converters or inverters) specially 
designed or prepared to supply motor stators for gas centrifuge 
enrichment, having all of the following characteristics, and specially 
designed components therefor:
    c.11.a. Multiphase output of 600 to 2000 Hz;
    c.11.b. Frequency control better than 0.1%;
    c.11.c. Harmonic distortion of less than 2%; and
    c.11.d. An efficiency greater than 80%;
    c.12. Centrifuge housing/recipients to contain the rotor tube 
assembly of a gas centrifuge, consisting of a rigid cylinder of wall 
thickness up to 30 mm with precision machined ends and made of or 
protected by UF6 resistant materials;
    c.13. Scoops consisting of tubes of up to 12 mm internal diameter 
for the extraction of UF6 gas from within a centrifuge rotor 
tube by a Pitot tube action, made of or protected by UF6 
resistant materials;
    d. Equipment and components, specially designed or prepared for 
aerodynamic separation process, as follows:
    d.1. Separation nozzles consisting of slit-shaped, curved channels 
having a radius of curvature less than 1 mm and having a knife-edge 
contained within the nozzle which separates the gas flowing through the 
nozzle into two streams;
    d.2. Tangential inlet flow-driven cylindrical or conical tubes 
(vortex tubes), made of or protected by UF6 resistant 
materials with a diameter of between 0.5 cm and 4 cm and a length to 
diameter ratio of 20:1 or less and with one or more tangential inlets;
    d.3. Compressors (positive displacement, centrifugal and axial flow 
types) or gas blowers with a suction volume capacity of 2 m3/
min, made of or protected by materials resistant to UF6 
(e.g., aluminum, aluminum alloys, nickel or alloy containing 60 weight 
percent or more nickel), and rotary shaft seals therefor;

[[Page 591]]

    d.4. Aerodynamic separation element housings, made of or protected 
by materials resistant to UF6 to contain vortex tubes or 
separation nozzles;
    d.5. Heat exchangers made of aluminum, copper, nickel, or alloy 
containing more than 60 weight percent nickel, or combinations of these 
metals as clad tubes, designed to operate at pressures of 600 kPa or 
less;
    d.6. Bellows valves made of or protected by UF6 resistant 
materials with a diameter of 40 to 1500 mm;
    d.7. Process systems for separating UF6 from carrier gas 
(hydrogen or helium) to 1 ppm UF6 content or less, including:
    d.7.a. Cryogenic heat exchangers and cryoseparators capable of 
temperatures of -120[deg] C or less;
    d.7.b. Cryogenic refrigeration units capable of temperatures of -
120[deg] C or less;
    d.7.c. Separation nozzle or vortex tube units for the separation of 
UF6 from carrier gas;
    d.7.d. UF6 cold traps capable of temperatures of -20[deg] 
C or less;
    e. Equipment and components, specially designed or prepared for 
chemical exchange separation process, as follows:
    e.1. Fast-exchange liquid-liquid centrifugal contactors with stage 
residence time of 30 seconds or less and resistant to concentrated 
hydrochloric acid (e.g., made of or lined with suitable plastic 
materials such as fluorocarbon polymers or lined with glass);
    e.2. Fast-exchange liquid-liquid pulse columns with stage residence 
time of 30 seconds or less and resistant to concentrated hydrochloric 
acid (e.g., made of or lined with suitable plastic materials such as 
fluorocarbon polymers or lined with glass);
    e.3. Electrochemical reduction cells designed to reduce uranium from 
one valence state to another;
    e.4. Electrochemical reduction cells feed equipment to take 
U+4 from the organic stream and, for those parts in contact 
with the process stream, made of or protected by suitable materials 
(e.g., glass, fluorocarbon polymers, polyphenyl sulphate, polyether 
sulfone and resin-impregnated graphite);
    e.5. Feed preparation systems for producing high purity uranium 
chloride solution consisting of dissolution, solvent extraction and/or 
ion exchange equipment for purification and electrolytic cells for 
reducing the uranium U+6 or U+4 to U+3;
    e.6. Uranium oxidation systems for oxidation of U+3 to 
U+4;
    f. Equipment and components, specially designed or prepared for ion-
exchange separation process, as follows:
    f.1. Fast reacting ion-exchange resins, pellicular or porous macro-
reticulated resins in which the active chemical exchange groups are 
limited to a coating on the surface of an inactive porous support 
structure, and other composite structures in any suitable form, 
including particles or fibers, with diameters of 0.2 mm or less, 
resistant to concentrated hydrochloric acid and designed to have an 
exchange rate half-time of less than 10 seconds and capable of operating 
at temperatures in the range of 100[deg] C to 200[deg] C;
    f.2. Ion exchange columns (cylindrical) with a diameter greater than 
1000 mm, made of or protected by materials resistant to concentrated 
hydrochloric acid (e.g., titanium or fluorocarbon plastics) and capable 
of operating at temperatures in the range of 100[deg] C to 200[deg] C 
and pressures above 0.7 MPa;
    f.3. Ion exchange reflux systems (chemical or electrochemical 
oxidation or reduction systems) for regeneration of the chemical 
reducing or oxidizing agents used in ion exchange enrichment cascades;
    g. Equipment and components, specially designed or prepared for 
atomic vapor ``laser'' isotopic separation process, as follows:
    g.1. High power electron beam guns with total power of more than 50 
kW and strip or scanning electron beam guns with a delivered power of 
more than 2.5 kW/cm for use in uranium vaporization systems;
    g.2. Trough shaped crucibles and cooling equipment made of or 
protected by materials resistant to heat and corrosion of molten uranium 
or uranium alloy's (e.g., tantalum, yttria-coated graphite, graphite 
coated with other rare earth oxides or mixtures thereof);
    N.B: See also 2A225.
    g.3. Product and tails collector systems made of or lined with 
materials resistant to the heat and corrosion of uranium vapor, such as 
yttria-coated graphite or tantalum;
    g.4. Separator module housings (cylindrical or rectangular vessels) 
for containing the uranium metal vapor source, the electron beam gun and 
the product and tails collectors;
    g.5. ``Lasers'' or ``laser'' systems for the separation of uranium 
isotopes with a spectrum frequency stabilizer for operation over 
extended periods of time;
    N.B.: See also 6A005 and 6A205.
    h. Equipment and components, specially designed or prepared for 
molecular ``laser'' isotopic separation process, as follows:
    h.1. Supersonic expansion nozzles for cooling mixtures of 
UF6 and carrier gas to 150 K or less and made from 
UF6 resistant materials;
    h.2. Uranium fluoride (UF5) product collectors consisting 
of filter, impact, or cyclone-type collectors or combinations thereof, 
and made of UF5/UF6 resistant materials (e.g. 
aluminum, aluminum alloys, nickel or alloys containing 60 weight percent 
of nickel and UF6 resistant fully fluorinated hydrocarbon 
polymers);
    h.3. Equipment for fluorinating UF5 to UF6;
    h.4. Compressors made of or protected by materials resistant to 
UF6 (e.g., aluminum,

[[Page 592]]

aluminum alloys, nickel or alloy containing 60 weight percent or more 
nickel), and rotary shaft seals therefor;
    h.5. Process systems for separating UF6 from carrier gas 
(e.g., nitrogen or argon) including:
    h.5.a. Cryogenic heat exchangers and cryoseparators capable of 
temperatures of -120 [deg]C or less;
    h.5.b. Cryogenic refrigeration units capable of temperatures of -120 
[deg]C or less;
    h.5.c. UF6 cold traps capable of temperatures of -20 [deg]C or less;
    h.6. ``Lasers'' or ``laser'' systems for the separation of uranium 
isotopes with a spectrum frequency stabilizer for operation over 
extended periods of time;
    N.B.: See also 6A005 and 6A205.
    i. Equipment and components, specially designed or prepared for 
plasma separation process, as follows:
    i.1. Product and tails collectors made of or protected by materials 
resistant to the heat and corrosion of uranium vapor such as yttria-
coated graphite or tantalum;
    i.2. Radio frequency ion excitation coils for frequencies of more 
than 100 kHz and capable of handling more than 40 kW mean power;
    i.3. Microwave power sources and antennae for producing or 
accelerating ions, with an output frequency greater than 30 GHz and mean 
power output greater than 50 kW;
    i.4. Uranium plasma generation systems;
    i.5. Liquid uranium metal handling systems consisting of crucibles, 
made of or protected by suitable corrosion and heat resistant materials 
(e.g., tantalum, yttria-coated graphite, graphite coated with other rare 
earth oxides or mixtures thereof), and cooling equipment for the 
crucibles;
    N.B.: See also 2A225.
    i.6. Separator module housings (cylindrical) for containing the 
uranium plasma source, radio-frequency drive coil and the product and 
tails collectors and made of a suitable non-magnetic material (e.g. 
stainless steel);
    j. Equipment and components, specially designed or prepared for 
electromagnetic separation process, as follows:
    j.1. Ion sources, single or multiple, consisting of a vapor source, 
ionizer, and beam accelerator made of suitable materials (e.g., 
graphite, stainless steel, or copper) and capable of providing a total 
ion beam current of 50 mA or greater;
    j.2. Ion collector plates for collection of enriched or depleted 
uranium ion beams, consisting of two or more slits and pockets and made 
of suitable non-magnetic materials (e.g., graphite or stainless steel);
    j.3. Vacuum housings for uranium electromagnetic separators made of 
non-magnetic materials (e.g. graphite or stainless steel) and designed 
to operate at pressures of 0.1 Pa or lower;
    j.4. Magnet pole pieces with a diameter greater than 2 m;
    j.5. High voltage power supplies for ion sources, having all of the 
following characteristics:
    j.5.a. Capable of continuous operation;
    j.5.b. Output voltage of 20,000 V or greater;
    j.5.c. Output current of 1 A or greater;
    j.5.d. Voltage regulation of better than 0.01% over a period of 8 
hours;
    N.B.: See also 3A227.
    j.6. Magnet power supplies (high power, direct current) having all 
of the following characteristics:
    j.6.a. Capable of continuous operation with a current output of 500 
A or greater at a voltage of 100 V or greater;
    j.6.b. Current or voltage regulation better than 0.01% over a period 
of 8 hours.
    N.B.: See also 3A226.

0B002 Specially designed or prepared auxiliary systems, equipment and 
          components, as follows, (see List of Items Controlled) for 
          isotope separation plant specified in 0B001, made of or 
          protected by UF6 resistant materials.

License Requirements

Reason for Control:
Control(s): Items described in 0B002 are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110)

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: a. Feed autoclaves, ovens or systems used for passing 
UF6 to the enrichment process;

    b. Desublimers or cold traps, used to remove UF6 from the 
enrichment process for subsequent transfer upon heating;
    c. Product and tails stations for transferring UF6 into 
containers;
    d. Liquefaction or solidification stations used to remove 
UF6 from the enrichment process by compressing and converting 
UF6 to a liquid or solid form;
    e. Piping systems and header systems specially designed for handling 
UF6 within gaseous diffusion, centrifuge or aerodynamic 
cascades made of or protected by UF6 resistant materials;
    f.1. Vacuum manifolds or vacuum headers having a suction capacity of 
5 m\3\/minute or more; or
    f.2. Vacuum pumps specially designed for use in UF6 
bearing atmospheres;
    g. UF6 mass spectrometers/ion sources specially designed 
or prepared for taking on-line

[[Page 593]]

samples of feed, product or tails from UF6 gas streams and 
having all of the following characteristics:
    g.1. Unit resolution for mass of more than 320 amu;
    g.2. Ion sources constructed of or lined with nichrome or monel, or 
nickel plated;
    g.3. Electron bombardment ionization sources; and
    g.4. Collector system suitable for isotopic analysis.

0B003 Plant for the conversion of uranium and equipment specially 
          designed or prepared therefor, as follows (see List of Items 
          Controlled).

License Requirements

Reason for Control
Control(s)
    Items described in 0B003 are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110).
License Exceptions
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items:

    a. Systems for the conversion of uranium ore concentrates to 
UO3;
    b. Systems for the conversion of UO3 to UF6;
    c. Systems for the conversion of UO3 to UO2;
    d. Systems for the conversion of UO2 to UF4;
    e. Systems for the conversion of UF4 to UF6;
    f. Systems for the conversion of UF4 to uranium metal;
    g. Systems for the conversion of UF6 to UO2;
    h. Systems for the conversion of UF6 to UF4;
    i. Systems for the conversion of UO2 to UCl4.

0B004 Plant for the production of heavy water, deuterium or deuterium 
          compounds, and specially designed or prepared equipment and 
          components therefor, as follows (see List of Items 
          Controlled).

License Requirements

Reason for Control:

Control(s): Items described in 0B004 are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110)

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: a. Plant for the production of heavy water, deuterium or 
deuterium compounds, as follows:

    a.1. Hydrogen sulphide-water exchange plants;
    a.2. Ammonia-hydrogen exchange plants;
    a.3. Hydrogen distillation plants;
    b. Equipment and components, as follows, designed for:
    b.1. Hydrogen sulphide-water exchange process:
    b.1.a. Tray exchange towers;
    b.1.b. Hydrogen sulphide gas compressors;
    b.2. Ammonia-hydrogen exchange process:
    b.2.a. High-pressure ammonia-hydrogen exchange towers;
    b.2.b. High-efficiency stage contactors;
    b.2.c. Submersible stage recirculation pumps;
    b.2.d. Ammonia crackers designed for pressures of more than 3 MPa;
    b.3. Hydrogen distillation process:
    b.3.a. Hydrogen cryogenic distillation towers and cold boxes 
designed for operation below 35 K (-238[deg] C);
    b.3.b. Turboexpanders or turboexpander-compressor sets designed for 
operation below 35 K (-238[deg] C);
    b.4. Heavy water concentration process to reactor grade level (99.75 
weight percent deuterium oxide):
    b.4.a. Water distillation towers containing specially designed 
packings;
    b.4.b. Ammonia distillation towers containing specially designed 
packings;
    b.4.c. Catalytic burners for conversion of fully enriched deuterium 
to heavy water;
    b.4.d. Infrared absorption analyzers capable of on-line hydrogen-
deuterium ratio analysis where deuterium concentrations are equal to or 
more than 90 weight percent.

0B005 Plant specially designed for the fabrication of ``nuclear 
          reactor'' fuel elements and specially designed equipment 
          therefor.

License Requirements

Reason for Control:
Control(s): Items described in 0B005 are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110)

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: N/A

[[Page 594]]

Related Controls: N/A
Related Definitions: A plant for the fabrication of ``nuclear reactor'' 
fuel elements includes equipment which: (a) Normally comes into direct 
contact with or directly processes or controls the production flow of 
nuclear materials; (b) Seals the nuclear materials within the cladding; 
(c) Checks the integrity of the cladding or the seal; and (d) Checks the 
finish treatment of the solid fuel
Items: The List of Items Controlled is contained in the ECCN heading

0B006 Plant for the reprocessing of irradiated ``nuclear reactor'' fuel 
          elements, and specially designed or prepared equipment and 
          components therefor, including (see List of Items Controlled).

License Requirements

Reason for Control:
Control(s): Items described in 0B006 are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110)

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items: a. Fuel element chopping or shredding machines, i.e. remotely 
operated equipment to cut, chop, shred or shear irradiated ``nuclear 
reactor'' fuel assemblies, bundles or rods;

    b. Dissolvers, critically safe tanks (e.g. small diameter, annular 
or slab tanks) specially designed or prepared for the dissolution of 
irradiated ``nuclear reactor'' fuel, which are capable of withstanding 
hot, highly corrosive liquids, and which can be remotely loaded and 
maintained;
    c. Counter-current solvent extractors and ion-exchange processing 
equipment specially designed or prepared for use in a plant for the 
reprocessing of irradiated ``natural uranium'', ``depleted uranium'' or 
``special fissile materials'' and ``other fissile materials'';
    d. Process control instrumentation specially designed or prepared 
for monitoring or controlling the reprocessing of irradiated ``natural 
uranium'', ``depleted uranium'' or ``special fissile materials'' and 
``other fissile materials'';
    e. Holding or storage vessels specially designed to be critically 
safe and resistant to the corrosive effects of nitric acid;

    Note: Critically safe tanks may have the following features:

    1. Walls or internal structures with a boron equivalent of at least 
two percent;
    2. A maximum diameter or 175 mm for cylindrical vessels; or
    3. A maximum width of 75 mm for either a slab or annular vessel.
    f. Complete systems specially designed or prepared for the 
conversion of plutonium nitrate to plutonium oxide;
    g. Complete systems specially designed or prepared for the 
production of plutonium metal.

    Note: Plant for the reprocessing of irradiated ``nuclear reactor'' 
fuel elements includes equipment and components which normally come into 
direct contact with and directly control the irradiated fuel and the 
major nuclear material and fission product processing streams.


0B986 Equipment specially designed for manufacturing shotgun shells; and 
          ammunition hand-loading equipment for both cartridges and 
          shotgun shells.

License Requirements

Reason for Control: AT, UN.
Control(s): AT applies to entire entry. A license is required for items 
controlled by this entry to North Korea for anti-terrorism reasons. The 
Commerce Country Chart is not designed to determine AT licensing 
requirements for this entry. See Sec.  742.19 of the EAR for additional 
information.
    UN applies to entire entry. A license is required for items 
controlled by this entry to Rwanda. The Commerce Country Chart is not 
designed to determine licensing requirements for this entry. See part 
746 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

0B999 Specific Processing Equipment, as Follows (See List of Items 
          Controlled).

License Requirements

Reason for Control: AT.
Control(s).
    Country Chart.
    AT applies to entire entry. A license is required for items 
controlled by this entry to North Korea for anti-terrorism reasons. The 
Commerce Country Chart is not designed to determine AT licensing 
requirements for

[[Page 595]]

this entry. See Sec.  742.19 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:
    a. Hot cells;
    b. Glove boxes suitable for use with radioactive materials.

                              C. Materials

0C001 ``Natural uranium'' or ``depleted uranium'' or thorium in the form 
          of metal, alloy, chemical compound or concentrate and any 
          other material containing one or more of the foregoing.

License Requirements

Reason for Control:
Control(s): Items described in 0C001 are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110)

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: N/A
Related Controls: (1) See also 1A290. (2) This entry does not control: 
(a) Four grams or less of ``natural uranium'' or ``depleted uranium'' 
when contained in a sensing component in instruments (see 10 CFR part 
110); or (b) ``Depleted uranium'' specially fabricated for the following 
civil non-nuclear applications: Shielding; Packaging; Ballasts; or 
Counter-weights
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading

0C002 ``Special fissile materials'' and ``other fissile materials''; 
          except, four ``effective grams'' or less when contained in a 
          sensing component in instruments.

License Requirements

Reason for Control:
Control(s): Items described in 0C002 are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110)

License Exceptions

LVS: N/A
GBS: N/A
CIV: 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

0C004 Deuterium, heavy water, deuterated paraffins and other compounds 
          of deuterium, and mixtures and solutions containing deuterium, 
          in which the isotopic ratio of deuterium to hydrogen exceeds 
          1:5000.

License Requirements

Reason for Control:
Control(s): Items described in 0C004 are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110)

License Exceptions

LVS: N/A
GBS: N/A
CIV: 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

0C005 Graphite, nuclear-grade, having a purity level of less than 5 
          parts per million ``boron equivalent'' and with a density 
          greater than 1.5 g/cm \3\.

License Requirements

Reason for Control:
Control(s): Items described in 0C005 are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110)

License Exceptions

LVS: N/A
GBS: N/A
CIV: 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

0C006 Nickel powder or porous nickel metal, specially prepared for the 
          manufacture of gaseous diffusion barriers, as follows (see 
          List of Items Controlled).

License Requirements

Reason for Control:
Control(s): Items described in 0C006 are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110)

License Exceptions

LVS: N/A
GBS: N/A

[[Page 596]]

CIV: N/A

List of Items Controlled

Unit: N/A
Related Controls: See also 1C240
Related Definitions: N/A
Items: a. Powder with a nickel purity content of 99.9 weight percent or 
more and a mean particle size of less than 10 micrometers measured by 
American Society for Testing and Materials (ASTM) B330 standard and a 
high degree of particle size uniformity; or

    b. Porous nickel metal produced from materials specified in 0C006.a.

0C201 Specially prepared compounds or powders, other than nickel, 
          resistant to corrosion by UF6 (e.g. aluminum oxide 
          and fully fluorinated hydrocarbon polymers), for the 
          manufacture of gaseous diffusion barriers, having a purity of 
          99.9 weight percent or more and a mean particle size of less 
          than 10 micrometers measured by American Society for Testing 
          and Materials (ASTM) B330 standard and a high degree of 
          particle size uniformity.

License Requirements

Reason for Control:
Control(s): Items described in 0C201 are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110)

License Exceptions

LVS: N/A
GBS: N/A
CIV: 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

                               D. Software

0D001 ``Software'' specially designed or modified for the 
          ``development'', ``production'', or ``use'' of items described 
          in 0A001, 0A002, 0B (except 0B986 and 0B999), or 0C.
License Requirements
Reason for Control
Control(s) 
    ``Software'' for items described in 0A001, 0B001, 0B002, 0B003, 
0B004, 0B005, 0B006, 0C001, 0C002, 0C004, 0C005, 0C006, or 0C201 is 
subject to the export licensing authority of the Nuclear Regulatory 
Commission (see 10 CFR part 110).
    ``Software'' for items described in 0A002 is subject to the export 
licensing authority of the U.S. Department of State, Office of Defense 
Trade Controls (see 22 CFR part 121).
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.

0D999 Specific Software, as Follows (See List of Items Controlled).

License Requirements

Reason for Control: AT.
Control(s).
    Country Chart.
    AT applies to entire entry. A license is required for items 
controlled by this entry to North Korea for anti-terrorism reasons. The 
Commerce Country Chart is not designed to determine AT licensing 
requirements for this entry. See Sec.  742.19 of the EAR for additional 
information.
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 for neutronic calculations/modeling;
    b. Software for radiation transport calculations/modeling;
    c. Software for hydrodynamic calculations/modeling.

                              E. Technology

0E001 ``Technology,'' according to the Nuclear Technology Note, for the 
          ``development'', ``production'', or ``use'' of items described 
          in 0A001, 0A002, 0B (except 0B986 and 0B999), 0C, or 0D001.
License Requirements
Reason for Control
Control(s) 
    ``Technology'' for items described in 0A001, 0B001, 0B002, 0B003, 
0B004, 0B005, 0B006, 0C001, 0C002, 0C004, 0C005, 0C006, 0C201, or 0D001 
(applies to ``software'' in 0D001 for all items except those described 
in 0A002) is subject to the export licensing authority of the Department 
of Energy (see 10 CFR part 810).
    ``Technology'' for items described in 0A002 and 0D001 (applies to 
``software'' in 0D001 for items described in 0A002 only) is subject to 
the export licensing authority of the U.S. Department of State, Office 
of Defense Trade Controls (see 22 CFR part 121).
License Exceptions
CIV: N/A
TSR: N/A
List of Items Controlled
Unit: N/A

[[Page 597]]

Related Controls: N/A
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, UN, AT.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 1.
UN applies to entire entry..............  Rwanda.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

License Exceptions
CIV: N/A
TSR: Yes, except N/A for Rwanda

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

0E982 ``Technology'' exclusively for the ``development'' or 
          ``production'' of equipment controlled by 0A982 or 0A985.

License Requirements
Reason for Control: CC
Control(s)
CC applies to ``technology'' for items controlled by 0A982 or 0A985. A 
license is required for ALL destinations, except Canada, 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

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.

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         CC Column 1.
 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 applies to ``technology'' for         CC Column 2.
 shotguns with a barrel length over 24
 in. (60.96 cm), regardless of end-user.
CC applies to ``technology'' for         CC Column 3.
 shotguns with a barrel length over 24
 in. (60.96 cm) if for sale or resale
 to police or law enforcement.
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'' & ``Toxins''

                  A. Systems, Equipment and Components

1A001 Components made from fluorinated compounds, as follows (see List 
          of Items Controlled).

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: Items specially designed or modified for missiles or 
for items on the U.S. Munitions List 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:
    a. Seals, gaskets, sealants or fuel bladders specially designed for 
``aircraft'' or aerospace use made from more than 50% by weight of any 
of the materials controlled by 1C009.b or 1C009.c;
    b. Piezoelectric polymers and copolymers made from vinylidene 
fluoride materials controlled by 1C009.a:
    b.1. In sheet or film form; and
    b.2. With a thickness exceeding 200 [mu]m

[[Page 598]]

    c. Seals, gaskets, valve seats, bladders or diaphragms made from 
fluoroelastomers containing at least one vinylether group as a 
constitutional unit, specially designed for ``aircraft'', aerospace or 
missile use.

1A002 ``Composite'' structures or laminates, having any of the following 
          (see List of Items Controlled).

License Requirements
Reason for Control: NS, NP, AT.

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 2.
NP applies to 1A002.b.1 in the form of    NP Column 1.
 tubes with an inside diameter between
 75 mm and 400 mm.
1 AT applies to entire entry............  AT Column 1.
------------------------------------------------------------------------

    License Requirement Notes:
    See Sec.  743.1 of the EAR for reporting requirements for exports 
under License Exceptions.

License Exceptions 

LVS: $1,500; N/A for NP; N/A for ``composite'' structures or laminates 
controlled by 1A002.a, having an organic ``matrix'' and made from 
materials controlled by 1C010.c or 1C010.d.
GBS: N/A
CIV: N/A

List of Items Controlled
Unit: Kilograms.
Related Controls: (1) See ECCNs 1E001 (``development'' and 
``production'') and 1E201 (``use'') for technology for items controlled 
by this entry. (2) Also see ECCNs 1A202, 1C010, 1C210, 9A010, and 9A110. 
(3) ``Composite'' structures specially designed for missile applications 
(including specially designed subsystems and components) are controlled 
by ECCN 9A110. (4) ``Composite'' structures or laminates specially 
designed or prepared for use in separating uranium isotopes are subject 
to the export licensing authority of the Nuclear Regulatory Commission 
(see 10 CFR part 110).
Related Definitions: N/A.
Items:
    a. An organic ``matrix'' and made from materials controlled by 
1C010.c, 1C010.d or 1C010.e; or
    Note: 1A002.a does not control finished or semifinished items 
specially designed for purely civilian applications as follows:
    a. Sporting goods;
    b. Automotive industry;
    c. Machine tool industry; and
    d. Medical applications.
    b. A metal or carbon ``matrix'' and made from:
    b.1. Carbon ``fibrous or filamentary materials'' with:
    b.1.a. A ``specific modulus'' exceeding 10.15 x 10\6\ m; and
    b.1.b. A ``specific tensile strength'' exceeding 17.7 x 10\4\ m; or
    b.2. Materials controlled by 1C010.c.
    Note: 1A002.b does not control finished or semifinished items 
specially designed for purely civilian applications as follows:
    a. Sporting goods;
    b. Automotive industry;
    c. Machine tool industry; and
    d. Medical applications.
    Technical Notes: (1) Specific modulus: Young's modulus in pascals, 
equivalent to N/m\2\ divided by specific weight in N/m\3\, 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/m\2\ divided by specific weight in 
N/m\3\, measured at a temperature of (2962) K 
((232) [deg]C) and a relative humidity of (505)%.
    Note: 1A002 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, provided that the 
size does not exceed one square meter (1 m\2\).

1A003 Manufactures of non-fluorinated polymeric substances controlled by 
          1C008.a.3 in film, sheet, tape or ribbon form with either of 
          the following characteristics (see List of Items Controlled).

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: This entry does not control manufactures when coated 
or laminated with copper and designed for the production of electronic 
printed circuit boards
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

1A004 Protective and detection equipment and components, not specially 
          designed for military use. (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.)

1A005 Body armor, and specially designed components therefor, not 
          manufactured to military standards or specifications, nor to 
          their equivalents in performance.


[[Page 599]]


License Requirements
Reason for Control: NS, UN, AT.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 2.
UN applies to entire entry..............  Rwanda.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

License Exceptions
LVS: N/A
GBS: Yes, except UN
CIV: N/A

 List of Items Controlled

Unit: $ value
Related Controls: (1) Bulletproof and bullet resistant vests (body 
armor) NIJ levels III and IV, are subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls. (See 22 CFR part 121.) (2) This entry does not control 
individual suits of body armor and accessories therefor, when 
accompanying their users for his/her own personal protection. (3) This 
entry does not control body armor designed to provide frontal protection 
only from both fragment and blast from non-military explosive devices
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading

1A101 Devices for reduced observables such as radar reflectivity, 
          ultraviolet/infrared signatures and acoustic signatures, for 
          applications 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: $ value
Related Controls: See also 1C101. For commodities that meet the 
definition of defense articles under 22 CFR 120.3 of the International 
Traffic in Arms Regulations (ITAR), see also 22 CFR 121.16, Item 17-
Category II of the (ITAR), which describes similar commodities under the 
jurisdiction of the Department of State, Directorate of Defense Trade 
Control.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

1A102 Resaturated pyrolized carbon-carbon components designed for 
          ``missiles''. (These items are subject to the export licensing 
          authority of the U.S. Department of State, Directorate of 
          Defense Trade Controls. See 22 CFR part 121.)

1A202 Composite structures, other than those controlled by 1A002, in the 
          form of tubes and having both of the following characteristics 
          (see List of Items Controlled).

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) See ECCNs 1E201 (``use'') and 1E202 
(``development'' and ``production'') for technology for items controlled 
by this entry. (2) Also see ECCNs 1A002, 1C010, 1C210, 9A010, and 9A110. 
(3) ``Composite'' structures specially designed or prepared for use in 
separating uranium isotopes are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110).
Related Definitions: N/A
Items:

    a. An inside diameter of between 75 mm and 400 mm; and
    b. Made with any of the ``fibrous or filamentary materials'' 
specified in 1C010.a or .b or 1C210.a or with carbon prepreg materials 
specified in 1C210.c.

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: (1) See ECCNs 1E201 (``use'') and 1E202 
(``development'' and ``production'') for technology for items controlled 
by this entry. (2) Equipment specially designed or prepared for the 
production of

[[Page 600]]

heavy water is 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.

1A226 Specialized packings, which may be used in separating heavy water 
          from ordinary water, having both of the following 
          characteristics (see List of Items Controlled).

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) See ECCNs 1E201 (``use'') and 1E202 
(``development'' and ``production'') for technology for items controlled 
by this entry. (2) Equipment specially designed or prepared for the 
production of heavy water is subject to the export licensing authority 
of the Nuclear Regulatory Commission (see 10 CFR part 110).
Related Definitions: N/A
Items:

    a. Made of phosphor bronze mesh chemically treated to improve 
wettability; and
    b. Designed to be used in vacuum distillation towers.

1A227 High-density (lead glass or other) radiation shielding windows, 
          having all of the following characteristics (see List of Items 
          Controlled), 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: (1) See ECCNs 1E201 (``use'') and 1E202 
(``development'' and ``production'') for technology for items controlled 
by this entry. (2) Equipment specially designed or prepared for nuclear 
reactors and reprocessing facilities is subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110).
Related Definitions: In 1A227.a, the term ``cold area'' means the 
viewing area of the window exposed to the lowest level of radiation in 
the design application.
Items:
    a. A ``cold area'' greater than 0.09 m\2\;
    b. A density greater than 3 g/cm\3\; and
    c. A thickness of 100 mm or greater.

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 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: 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) Depleted uranium that is 
not fabricated for use in munitions or fabricated into commodities 
solely to take advantage of its high density (e.g., aircraft, ship, or 
other counterweights) or in the forms listed in this entry are subject 
to the export licensing authority of the Nuclear Regulatory Commission. 
(See 10 CFR part 110.) (3) See also 0C001
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; and other pyrotechnic articles having dual 
          military and commercial use.

License Requirements

Reason for Control: CC

[[Page 601]]



 
                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.

1A985 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.

1A999 Specific Processing Equipment, n.e.s., as Follows (See List of 
          Items Controlled).

License Requirements
Reason for Control: AT.
Control(s).
    Country Chart.
    AT applies to entire entry. A license is required for items 
controlled by this entry to North Korea for anti-terrorism reasons. The 
Commerce Country Chart is not designed to determine AT licensing 
requirements for this entry. See Sec.  742.19 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:
    a. Radiation detection, monitoring and measurement equipment, 
n.e.s.;
    b. Radiographic detection equipment such as x-ray converters, and 
storage phosphor image plates.

              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       MT Column 1
 1B001.d.4 and .f.
NP applies to filament winding machines  NP Column 1
 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.
AT applies to entire entry.............  AT Column 1
 

License Exceptions

LVS: N/A for MT and for 1B001.a; $5,000 for all other items
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: (1) See ECCN 1D001 for software for items controlled 
by this entry and see ECCNs 1E001 (``development'' and ``production'') 
and 1E101 (``use'') for technology for items controlled by this entry. 
(2) Also see ECCNs 1B101 and 1B201.
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 or filamentary materials'';
    b. Tape-laying or tow-placement machines of which the motions for 
positioning and laying tape, tows or sheets are coordinated and 
programmed in two or more axes, specially designed for the manufacture 
of ``composite'' airframe or ``missile'' structures;
    c. Multidirectional, multidimensional weaving machines or 
interlacing machines, including adapters and modification kits, for 
weaving, interlacing or braiding fibers to manufacture ``composite'' 
structures;

    Technical Note: For the purposes of 1B001.c the technique of 
interlacing includes knitting.
    Note: 1B001.c does not control textile machinery not modified for 
the above end-uses.

[[Page 602]]

    d. Equipment specially designed or adapted for the production of 
reinforcement fibers, 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 Equipment for Producing Metal Alloys, Metal Alloy Powder or 
          Alloyed Materials, Specially Designed to Avoid Contamination 
          and Specially Designed for Use in One of the Processes 
          Specified in 1C002.c.2

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
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 (see List of Items 
          Controlled).

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: For specially designed production equipment of 
systems, sub-systems and components controlled by 9A005 to 9A009, 9A011, 
9A101, 9A105 to 9A109, 9A111, and 9A116 to 9A120 usable in ``missiles'', 
see 9B115.
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, UN

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 1.
MT applies to equipment for the           MT Column 1.
 ``production'' of rocket propellants.
RS applies to 1B018.a...................  RS Column 2.
AT applies to entire entry..............  AT Column 1.
UN applies to entire entry..............  Rwanda.
------------------------------------------------------------------------

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; N/A for Rwanda.
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, fibers, prepregs or 
          preforms as follows (see List of Items

[[Page 603]]

          Controlled); and specially designed components and accessories 
          therefor.

License Requirements

Reason for Control: MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.
NP applies to filament winding machines  NP Column 1.
 described in 1B101.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 to coordinating
 and programming controls and precision
 mandrels for these filament winding
 machines.
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: See ECCN 1D101 for software for items controlled by 
this entry and see ECCNs 1E001 (``development'' and ``production'') and 
1E101 (``use'') for technology for items controlled by this entry. Also 
see 1B201.
Related Definitions: Examples of components and accessories for the 
machines controlled by this entry are molds, mandrels, dies, fixtures 
and tooling for the preform pressing, 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 to fabricate composite 
structures or laminates from fibrous or filamentary materials, and 
coordinating and programming controls;

    b. Tape-laying machines of which the motions for positioning and 
laying tape and sheets can be coordinated and programmed in two or more 
axes, designed for the manufacture of composite airframe and ``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 provision 
to strain the fiber during heating;
    c.2. Equipment for the 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 controlled by 9A110.

    Note: Equipment covered in 1B101.d includes but is not limited to, 
rollers, tension stretchers, coating equipment, cutting equipment and 
clicker dies.

1B102 Metal powder ``production equipment,'' other than that specified 
          in 1B002, and components as follows (see List of Items 
          Controlled).

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.) See also 1B115.b.
Related Definitions: N/A
Items:

    a. Metal power ``production equipment usable for the ``production,'' 
in a controlled environment, of spherical or atomized materials 
specified in 1C011.a, 1C011.b, 1C111.a.1, 1C111.a.2, or on the U.S. 
Munitions List.
    b. Specially designed components for ``production equipment'' 
specified in 1B002 or 1B102.a.
    Note: 1B102 includes:
    a. Plasma generators (high frequency arc-jet) usable for obtaining 
sputtered or spherical metallic powders with organization of the process 
in an argon-water environment;
    b. Electroburst equipment usable for obtaining sputtered or 
spherical metallic powders with organization of the process in an argon-
water environment;
    c. Equipment usable for the ``production'' of spherical aluminum 
powders by powdering a melt in an inert medium (e.g., nitrogen).

1B115 ``Equipment, other than that controlled in 1B002 or 1B102, for the 
          ``production'' of propellant or propellant constituents, 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: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
    Unit: Equipment in number; components in $ value

[[Page 604]]

    Related Controls: For the control of batch mixers, continuous mixers 
and fluid energy mills, see 1B117, 1B118 and 1B119.
    Related Definitions: N/A
    Items:
    a. ``Production equipment'' for the ``production'', handling or 
acceptance testing of liquid propellants or propellant constituents 
controlled by 1C011.a, 1C011.b, 1C111 or on the U.S. Munitions List;
    b. ``Production equipment,'' for the production, handling, mixing, 
curing, casting, pressing, machining, extruding or acceptance testing of 
solid propellants or propellant constituents described in 1C011.a, 
1C011.b or 1C111, or on the U.S. Munitions List.
    Note: 1B115.b does not control batch mixers, continuous mixers or 
fluid energy mills. For the control of batch mixers, continuous mixers 
and fluid energy mills see 1B117, 1B118, and 1B119.
    Note 1: [Reserved]
    Note 2: 1B115 does not control equipment for the ``production,'' 
handling and acceptance testing of boron carbide.

1B116 Specially designed nozzles for producing pyrolitically derived 
          materials formed on a mold, mandrel or other substrate from 
          precursor gases which decompose in the 1,573 K (1,300 [deg]C) 
          to 3,173 K (2,900 [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: 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

1B117 ``Batch mixers with provision for mixing under vacuum in the range 
          from zero to 13.326 kPa and with temperature control 
          capability of the mixing chamber and having all of the 
          following characteristics (see List of Items Controlled), 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: N/A
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. A total volumetric capacity of 110 liters (30 gallons) or more; 
and
    b. At least one mixing/kneading shaft mounted off center.

1B118 Continuous mixers with provision for mixing under vacuum in the 
          range from zero to 13.326 kPa and with temperature control 
          capability of the mixing chamber and having all of the 
          following characteristics (see List of Items Controlled), 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: N/A
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. Two or more mixing/kneading shafts; and
    b. Capability to open the mixing chamber.

1B119 Fluid energy mills usable for grinding or milling propellant or 
          propellant constituents specified in 1C011.a, 1C011.b or 
          1C111, or on the U.S. Munitions List, 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: N/A
GBS: N/A
CIV: N/A


[[Page 605]]


List of Items Controlled

Unit: Equipment in number; components in $ value
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 controlled by ECCN 
          1B001 or 1B101, and related equipment, as follows (see List of 
          Items Controlled).

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: See ECCN 1D201 for software for items controlled by 
this entry and see ECCNs 1E001 (``development'' and ``production'') and 
1E201 (``use'') for technology for items controlled by this entry. Also 
see ECCN 1E203 for technology for the ``development'' of software 
controlled by ECCN 1D201.
Related Definitions: N/A
Items:

     a. Filament winding machines having all of the following 
characteristics:
     a.1. Having motions for positioning, wrapping, and winding fibers 
coordinated and programmed in two or more axes;
     a.2. Specially designed to fabricate composite structures or 
laminates from ``fibrous or filamentary materials''; and
     a.3. Capable of winding cylindrical rotors of diameter between 75 
mm (3 in.) and 400 mm (16 in.) and lengths of 600 mm (24 in.) or 
greater;
     b. Coordinating and programming controls for filament winding 
machines controlled by 1B201.a;
     c. Precision mandrels for filament winding machines controlled by 
1B201.a.

1B225 Electrolytic cells for fluorine production with a production 
          capacity greater than 250 g of fluorine per hour.

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: See ECCNs 1E001 (``development'' and ``production'') 
and 1E201 (``use'') for technology for items controlled by this entry.
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: (1) Electromagnetic isotope separators specially 
designed or prepared for use in separating uranium isotopes are subject 
to the export licensing authority of the Nuclear Regulatory Commission 
(see 10 CFR part 110). (2) See ECCNs 1E001 (``development'' and 
``production'') and 1E201 (``use'') for technology for items controlled 
by this entry.
Related Definitions: N/A
ECCN Controls: This entry includes separators capable of enriching 
stable isotopes and separators 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

[[Page 606]]

GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: (1) Equipment specially designed or prepared for the 
production of heavy water is subject to the export licensing authority 
of the Nuclear Regulatory Commission (see 10 CFR part 110). (2) See 
ECCNs 1E001 (``development'' and ``production'') and 1E201 (``use'') for 
technology for items controlled by this entry.
Related Definitions: 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 (see List of Items Controlled).

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) Equipment specially designed or prepared for the 
production of heavy water is subject to the export licensing authority 
of the Nuclear Regulatory Commission (see 10 CFR part 110). (2) See 
ECCNs 1E001 (``development'' and ``production'') and 1E201 (``use'') for 
technology for items controlled by this entry.
Related Definitions: ``Fine-grain stainless steels'' in this entry are 
defined to be fine-grain austenitic stainless steels with an ASTM (or 
equivalent standard) grain size number of 5 or greater
Items: a. Designed to operate with internal temperatures of 35 K (-238 
[deg]C) or less;

    b. Designed to operate at an 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 sulphur content or equivalent cryogenic and H2-
compatible materials; and
    d. With internal diameters of 1 m or greater and effective lengths 
of 5 m or greater.

1B229 Water-hydrogen sulphide exchange tray columns and ``internal 
          contactors'', as follows (see List of Items Controlled). 

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) Equipment specially designed or prepared for the 
production of heavy water is subject to the export licensing authority 
of the Nuclear Regulatory Commission (see 10 CFR part 110). (2) See 
ECCNs 1E001 (``development'' and ``production'') and 1E201 (``use'') for 
technology for items controlled by this entry.
Related Definitions: The ``internal contactors'' controlled by 1B229.b 
are segmented trays that have an effective assembled diameter of 1.8 m 
(6 ft.) or greater, are designed to facilitate countercurrent 
contacting, and are constructed of stainless steels with a carbon 
content of 0.03% or less. These may be sieve trays, valve trays, bubble 
cap trays, or turbogrid trays.
Items:

    a. Water-hydrogen sulphide exchange tray columns, having all of the 
following characteristics:
    a.1. Can operate at pressures of 2 MPa or greater;
    a.2. Constructed of carbon steel having an austenitic ASTM (or 
equivalent standard) grain size number of 5 or greater; and
    a.3. With a diameter of 1.8 m (6 ft.) or greater;
    b. ``Internal contactors'' for the water-hydrogen sulphide exchange 
tray columns controlled by 1B229.a.

1B230 Pumps capable of circulating solutions of concentrated or dilute 
          potassium amide catalyst in liquid ammonia (KNH2/
          NH3), having all of the following characteristics 
          (see List of Items Controlled).

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) Equipment specially designed or prepared for the 
production of heavy water is subject to the export licensing authority 
of the Nuclear Regulatory Commission (see 10 CFR part 110). (2) See

[[Page 607]]

ECCNs 1E001 (``development'' and ``production'') and 1E201 (``use'') for 
technology for items controlled by this entry.
Related Definitions: N/A
Items:

    a. Airtight (i.e., hermetically sealed);
    b. A capacity greater than 8.5 m\3\/h; and
    c. Either of the following characteristics:
    c.1. For concentrated potassium amide solutions (1% or greater), an 
operating pressure of 1.5 to 60 MPa (15-600 atmospheres); or
    c.2. For dilute potassium amide solutions (less than 1%), an 
operating pressure of 20 to 60 MPa (200-600 atmospheres).

1B231 Tritium facilities or plants, and equipment therefor, as follows 
          (see List of Items Controlled).

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) Tritium, tritium compounds, and mixtures 
containing tritium are subject to the export licensing authority of the 
Nuclear Regulatory Commission (see 10 CFR part 110). (2) See ECCNs 1E001 
(``development'' and ``production'') and 1E201 (``use'') for technology 
for items controlled by this entry.
Related Definitions: N/A
Items: a. Facilities or plant for the production, recovery, extraction, 
concentration, or handling of tritium;

    b. Equipment for tritium facilities or plant, as follows:
    b.1. Hydrogen or helium refrigeration units capable of cooling to 23 
K (-250 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 having both of the 
          following characteristics (see List of Items Controlled). 

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) Equipment specially designed or prepared for the 
production of heavy water is subject to the export licensing authority 
of the Nuclear Regulatory Commission (see 10 CFR part 110). (2) See 
ECCNs 1E001 (``development'' and ``production'') and 1E201 (``use'') for 
technology for items controlled by this entry.
Related Definitions: N/A
Items:

    a. Designed for operation with an outlet temperature of 35 K (-238 
[deg]C) or less; and
    b. Designed for a throughput of hydrogen gas of 1,000 kg/h or 
greater.

1B233 Lithium isotope separation facilities or plants, and equipment 
          therefor, as follows (see List of Items Controlled). 

License Requirements

Reason for Control: NP, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart
------------------------------------------------------------------------
  Facilities and plants described in 1B233.a are subject to the export
  licensing authority of the Nuclear Regulatory Commission (see 10 CFR
                               part 110).
NP applies to 1B233.b..................  NP Column 1.
AT applies to 1B233.b..................  AT Column 1.
------------------------------------------------------------------------

                           License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: See ECCN 1E001 (``development'' and ``production'') 
and ECCN 1E201 (``use'') for technology for items described in this 
entry.
Related Definitions: N/A
Items:

    a. Facilities or plants for the separation of lithium isotopes;
    b. Equipment for the separation of lithium isotopes, as follows:
    b.1. Packed liquid-liquid exchange columns specially designed for 
lithium amalgams;
    b.2. Mercury and/or lithium amalgam pumps;
    b.3. Lithium amalgam electrolysis cells;
    b.4. Evaporators for concentrated lithium hydroxide solution.

1B999 Specific Processing Equipment, n.e.s., as Follows (See List of 
          Items Controlled).

License Requirements

Reason for Control: AT.
Control(s).
    Country Chart.

[[Page 608]]

    AT applies to entire entry. A license is required for items 
controlled by this entry to North Korea for anti-terrorism reasons. The 
Commerce Country Chart is not designed to determine AT licensing 
requirements for this entry. See Sec.  742.19 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: See also 1B001, 1B101, 1B201, 1B225 and 1D999.
Related Definitions: N/A.
Items:
    a. Electrolytic cells for flourine production, n.e.s.;
    b. Particle accelerators;
    c. Industrial process control hardware/systems designed for power 
industries, n.e.s.;
    d. Freon and chilled water cooling systems capable of continuous 
cooling duties of 100,000 BTU/hr (29.3 kW) or greater;
    e. Equipment for the production of structural composites, fibers, 
prepregs and preforms, n.e.s.

                              C. Materials

    Technical Note: Metals and alloys: Unless provision to the contrary 
is made, the words ``metals'' and ``alloys'' in 1C001 to 1C012 cover 
crude and semi-fabricated forms, as follows:

    Crude forms: Anodes, balls, bars (including notched bars and wire 
bars), billets, blocks, blooms, brickets, cakes, cathodes, crystals, 
cubes, dice, grains, granules, ingots, lumps, pellets, pigs, powder, 
rondelles, shot, slabs, slugs, sponge, sticks;
    Semi-fabricated forms (whether or not coated, plated, drilled or 
punched):
    a. Wrought or worked materials fabricated by rolling, drawing, 
extruding, forging, impact extruding, pressing, graining, atomizing, and 
grinding, i.e.: angles, channels, circles, discs, dust, flakes, foils 
and leaf, forging, plate, powder, pressings and stampings, ribbons, 
rings, rods (including bare welding rods, wire rods, and rolled wire), 
sections, shapes, sheets, strip, pipe and tubes (including tube rounds, 
squares, and hollows), drawn or extruded wire;
    b. Cast material produced by casting in sand, die, metal, plaster or 
other types of molds, including high pressure castings, sintered forms, 
and forms made by powder metallurgy.
    The object of the control should not be defeated by the export of 
non-listed forms alleged to be finished products but representing in 
reality crude forms or semi-fabricated forms.

1C001 Materials specially designed for use as absorbers of 
          electromagnetic waves, or intrinsically conductive polymers, 
          as follows (see List of Items Controlled).

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: N/A
GBS: N/A
CIV: N/A

List of Items Controlled
Unit: Kilograms.
Related Controls: See also 1C101.
Related Definitions: N/A.
Items:
    a. Materials for absorbing frequencies exceeding 2x10\8\ Hz but less 
than 3x10\12\ Hz.
    Note 1: 1C001.a does not control:
    a. Hair type absorbers, constructed of natural or synthetic fibers, 
with non-magnetic loading to provide absorption;
    b. Absorbers having no magnetic loss and whose incident surface is 
non-planar in shape, including pyramids, cones, wedges and convoluted 
surfaces;
    c. Planar absorbers, having all of the following characteristics:
    1. Made from any of the following:
    a. 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
    b. 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. Note 1.c.1 
should be a square at least 5 wavelengths of the center frequency on a 
side and positioned in the far field of the radiating element.
    2. Tensile strength less than 7x10\6\ N/m\2\; and
    3. Compressive strength less than 14x10\6\ N/m\2\;
    d. Planar absorbers made of sintered ferrite, having:
    1. A specific gravity exceeding 4.4; and
    2. A maximum operating temperature of 548 K (275 [deg]C).
    Note 2: Nothing in Note 1 releases magnetic materials to provide 
absorption when contained in paint.

[[Page 609]]

    b. Materials for absorbing frequencies exceeding 1.5x10\14\ Hz but 
less than 3.7x10\14\ 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; or
    c.5. Poly thienylene-vinylene.
    Technical Note: Bulk electrical conductivity and sheet (surface) 
resistivity should be determined using ASTM D-257 or national 
equivalents.

1C002 Metal alloys, metal alloy powder and alloyed materials, as follows 
          (see List of Items Controlled).

License Requirements
Reason for Control: NS, NP, AT.

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 2.
NP applies to 1C002.b.3 or b.4 if they    NP Column 1.
 exceed the parameters stated in 1C202.
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

License Exceptions

LVS: $3,000; N/A for NP
GBS: N/A
CIV: N/A

List of Items Controlled
Unit: Kilograms.
Related Controls: (1) See ECCNs 1E001 (``development'' and 
``production'') and 1E201 (``use'') for technology for items controlled 
by this entry. (2) Also see ECCN 1C202. (3) Aluminum alloys and titanium 
alloys in physical forms and finished products specially designed or 
prepared for use in separating uranium isotopes are subject to the 
export licensing authority of the Nuclear Regulatory Commission (see 10 
CFR part 110).
Related Definition: N/A.
Items:
    Note: 1C002 does not control metal alloys, metal alloy powder or 
alloyed materials for coating substrates.
    Technical Note 1: The metal alloys in 1C002 are those containing a 
higher percentage by weight of the stated metal than of any other 
element.
    Technical Note 2: Stress-rupture life should be measured in 
accordance with ASTM standard E-139 or national equivalents.
    Technical Note 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 national 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.
    a. Aluminides, as follows:
    a.1. Nickel aluminides containing a minimum of 15 weight percent 
aluminum, a maximum of 38 weight percent aluminum and at least one 
additional alloying element;
    a.2. Titanium aluminides containing 10 weight percent or more 
aluminum and at least one additional alloying element;
    b. Metal alloys, as follows, made from material controlled by 
1C002.c:
    b.1. Nickel alloys with:
    b.1.a. A stress-rupture life of 10,000 hours or longer at 923 K (650 
[deg]C) at a stress of 676 MPa; or
    b.1.b. A low cycle fatigue life of 10,000 cycles or more at 823 K 
(550 [deg]C) at a maximum stress of 1,095 MPa;
    b.2. Niobium alloys with:
    b.2.a. A stress-rupture life of 10,000 hours or longer at 1,073 K 
(800 [deg]C) at a stress of 400 MPa; or
    b.2.b. A low cycle fatigue life of 10,000 cycles or more at 973 K 
(700 [deg]C) at a maximum stress of 700 MPa;
    b.3. Titanium alloys with:
    b.3.a. A stress-rupture life of 10,000 hours or longer at 723 K (450 
[deg]C) at a stress of 200 MPa; or
    b.3.b. A low cycle fatigue life of 10,000 cycles or more at 723 K 
(450 [deg]C) at a maximum stress of 400 MPa;
    b.4 Aluminum alloys with a tensile strength of:
    b.4.a. 240 MPa or more at 473 K (200 [deg]C); or
    b.4.b. 415 MPa or more at 298 K (25 [deg]C);
    b.5. Magnesium alloys with:
    b.5.a. A tensile strength of 345 MPa or more; and
    b.5.b. A corrosion rate of less than 1 mm/year in 3% sodium chloride 
aqueous solution measured in accordance with ASTM standard G-31 or 
national equivalents;
    c. Metal alloy powder or particulate material, having all of the 
following characteristics:
    c.1. Made from any of the following composition systems:
    Technical Note: X in the following equals one or more alloying 
elements.
    c.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 [mu] in 
10\9\ alloy particles;
    c.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);
    c.1.c. Titanium alloys (Ti-Al-X or Ti-X-Al);
    c.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

[[Page 610]]

    c.1.e. Magnesium alloys (Mg-Al-X or Mg-X-Al); and
    c.2. Made in a controlled environment by any of the following 
processes:
    c.2.a. ``Vacuum atomization'';
    c.2.b. ``Gas atomization'';
    c.2.c. ``Rotary atomization'';
    c.2.d. ``Splat quenching'';
    c.2.e. ``Melt spinning'' and ``comminution'';
    c.2.f. ``Melt extraction'' and ``comminution''; or
    c.2.g. ``Mechanical alloying'';
    d. Alloyed materials, having all the following characteristics:
    d.1. Made from any of the composition systems specified in 
1C002.c.1;
    d.2. In the form of uncomminuted flakes, ribbons or thin rods; and
    d.3. Produced in a controlled environment by any of the following:
    d.3.a. ``Splat quenching'';
    d.3.b. ``Melt spinning''; or
    d.3.c. ``Melt extraction''.

1C003 Magnetic metals, of all types and of whatever form, having any of 
          the characteristics (see List of Items Controlled).

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 of 120,000 or more and a 
thickness of 0.05 mm or less;

    Technical Note: Measurement of initial permeability must be 
performed on fully annealed materials.

    b. Magnetostrictive alloys, having any of the following 
characteristics:
    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 or nanocrystalline alloy strips, having all of the 
following characteristics:
    c.1. A composition having a minimum of 75 weight percent of iron, 
cobalt or nickel;
    c.2. A saturation magnetic induction (Bs) of 1.6 T or 
more; and
    c.3. Any of the following:
    c.3.a. A strip thickness of 0.02 mm or less; or
    c.3.b. An electrical resistivity of 2 x 10 -4; ohm cm or 
more.

    Technical Note: Nanocrystalline materials in 1C003.c are those 
materials having a crystal grain size of 50 nm or less, as determined by 
X-ray diffraction.

1C004 Uranium titanium alloys or tungsten alloys with a ``matrix'' based 
          on iron, nickel or copper, having all of the characteristics 
          (see List of Items Controlled).

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 880 MPa;
    c. An ultimate tensile strength exceeding 1,270 MPa; and
    d. An elongation exceeding 8%.

1C005 ``Superconductive'' ``composite'' conductors in lengths exceeding 
          100 m or with a mass exceeding 100 g, as follows (see List of 
          Items Controlled).

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. Having a cross-section area less than 0.28 x 10-4 
mm2 (6 [mu]m in diameter for circular filaments);

[[Page 611]]

    b. ``Superconductive'' ``composite'' conductors consisting of one or 
more ``superconductive'' filaments other than niobium-titanium, having 
all of the following:
    b.1. 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. A cross-section area less than 0.28 x 10-4 
mm2; and
    b.3. Remaining 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, as follows (see List of Items 
          Controlled).

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 1C006.d
CIV: Yes for 1C006.d

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 silahydrocarbon oils, having all of the following:
    Technical Note: For the purpose of 1C006.a.1, silahydrocarbon oils 
contain exclusively silicon, hydrogen and carbon.
    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
    a.2. Chlorofluorocarbons, having all of the following:
    Technical Note: For the purpose of 1C006.a.2, chlorofluorocarbons 
contain exclusively carbon, fluorine and chlorine.
    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;
    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 [mu]m 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;
    d. Fluorocarbon electronic cooling fluids, having all of the 
following characteristics:
    d.1. Containing 85% by weight or more of any of the following, or 
mixtures thereof:
    d.1.a. Monomeric forms of perfluoropolyalkylether-triazines or 
perfluoroaliphatic-ethers;
    d.1.b. Perfluoroalkylamines;
    d.1.c. Perfluorocycloalkanes; or
    d.1.d. Perfluoroalkanes;
    d.2. Density at 298 K (25 [deg]C) of 1.5 g/ml or more;
    d.3. In a liquid state at 273 K (0 [deg]C); and
    d.4. Containing 60% or more by weight of fluorine.
    Technical Note: For the purpose of 1C006:
    a. Flash point is determined using the Cleveland Open Cup Method 
described in ASTM D-92 or national equivalents;
    b. Pour point is determined using the method described in ASTM D-97 
or national equivalents;
    c. Viscosity index is determined using the method describe in ASTM 
D-2270 or national equivalents;
    d. Thermal stability is determined by the following test procedure 
or national 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 644  6 K (371  6 [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;
    e. Autogenous ignition temperature is determined using the method 
described in ASTM E-659 or national equivalents.

1C007 Ceramic base materials, non-``composite'' ceramic materials, 
          ceramic-``matrix'' ``composite'' materials and precursor 
          materials, as follows (see List of Items Controlled).


[[Page 612]]


License Requirements

Reason for Control: NS, MT, AT

 
               Control(s)                         Country Chart
 
NS applies to entire entry.............  NS Column 2.
MT applies to items in 1C007.d and .f    MT Column 1.
 when the dielectric constant is less
 than 6 at frequencies from 100 Hz to
 10,000 MHz for use in missile radomes.
AT applies to entire entry.............  AT Column 1.
 

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

LVS: $5000, except N/A for MT and for 1C007.e
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms.
Related Controls: See also 1C107.
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 [mu]m and no 
more than 10% of the particles larger than 10 [mu]m;
    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;
    Note: 1C007.b does not control abrasives.
    c. Ceramic-ceramic ``composite'' materials with a glass or oxide-
``matrix'' and reinforced with fibers having all the following:
    c.1 Made from any of the following materials:
    c.1.a. Si-N;
    c.1.b. Si-C;
    c.1.c. Si-Al-O-N; or
    c.1.d. Si-O-N; and
    c.2. Having a ``specific tensile strength'' exceeding 12.7 x 10\3\ 
m;
    d. Ceramic-ceramic ``composite'' materials, with or without a 
continuous metallic phase, incorporating particles, whiskers or fibers, 
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);
    e.3. Polycarbosilazanes (for producing ceramics with silicon, carbon 
and nitrogen components);
    f. Ceramic-ceramic ``composite'' materials with an oxide or glass 
``matrix'' reinforced with continuous fibers from any of the following 
systems:
    f.1. Al2O3; or
    f.2. Si-C-N.
    Note: 1C007.f does not control ``composites'' containing fibers from 
these systems with a fiber tensile strength of less than 700 MPa at 
1,273 K (1,000 [deg]C) or fiber tensile creep resistance of more than 1% 
creep strain at 100 MPa load and 1,273 K (1,000 [deg]C) for 100 hours.

1C008 Non-fluorinated polymeric substances, as follows (see List of 
          Items Controlled).

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. Non-fluorinated polymeric substances, as follows:

    a.1. Bismaleimides;
    a.2. Aromatic polyamide-imides;
    a.3. Aromatic polyimides;
    a.4. Aromatic polyetherimides having a glass transition temperature 
(Tg) exceeding 513 K (240[deg] C) determined using the dry 
method described in ASTM D 3418;

    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 national equivalents, with a load of 1.82 N/
mm2 and composed of:
    b.1. Any 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;

[[Page 613]]

    e. Polyarylene sulphides, where the arylene group is biphenylene, 
triphenylene or combinations thereof;
    f. Polybiphenylenethersulphone.

    Technical Note: The glass transition temperature (Tg) for 
1C008 materials is determined using the method described in ASTM D 3418 
using the dry method.

1C009 Unprocessed fluorinated compounds, as follows (see List of Items 
          Controlled).

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 10% by weight or more of 
combined fluorine;
    c. Fluorinated phosphazene elastomers containing 30% by weight or 
more of combined fluorine.

1C010 ``Fibrous or filamentary materials'' which may be used in organic 
          ``matrix'', metallic ``matrix'' or carbon ``matrix'' 
          ``composite'' structures or laminates, as follows (see List of 
          Items Controlled).

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 (aramid ``fibrous  NP Column 1
 or filamentary materials'', .b (carbon
 ``fibrous and filamentary
 materials''), and e.1 for ``fibrous
 and filamentary materials'' that meet
 or exceed the control criteria of ECCN
 1C210.
AT applies to entire entry.............  AT Column 1
 

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

LVS: $1500, N/A for NP
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: (1) See ECCNs 1E001 (``development'' and 
``production'') and 1E201 (``use'') for technology for items controlled 
by this entry. (2) Also see ECCNs 1C210 and 1C990. (3) See also 9C110 
for material not controlled by 1C010.e, as defined by notes 1 or 2.
Related Definitions: (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 ((23+2) 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) C) and a relative humidity of (505)%
Items: a. Organic ``fibrous or filamentary materials'', having all of 
the following:

    a.1. A specific modulus exceeding 12.7 x 106 m; and
    a.2. A specific tensile strength exceeding 23.5 x 104 m;

    Note: 1C010.a does not control polyethylene.

    b. Carbon ``fibrous or filamentary materials'', having all of the 
following:
    b.1. A specific modulus exceeding 12.7 x 106 m; and
    b.2. A specific tensile strength exceeding 23.5 x 104 m;

    Technical Note: Properties for materials described in 1C010.b should 
be determined using SACMA recommended methods SRM 12 to 17, or national 
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'', having all of the 
following:
    c.1. A specific modulus exceeding 2.54 x 106 m; and
    c.2. A melting, softening, decomposition or sublimation point 
exceeding 1,922 K (1,649 [deg]C) in an inert environment;

    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 10x106 m;
    2. Molybdenum and molybdenum alloy fibers;
    3. Boron fibers;
    4. Discontinuous ceramic fibers with a melting, softening, 
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:

[[Page 614]]

    d.1.a. Polyetherimides controlled by 1C008.a; or
    d.1.b. Materials controlled by 1C008.b to 1C008.f; or
    d.2. Composed of materials controlled by 1C010.d.1.a or 1C010.d.1.b 
and ``commingled'' with other fibers controlled by 1C010.a, 1C010.b or 
1C010.c;
    e. Resin-impregnated 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, 1C010.b or 1C010.c;
    e.2. Made from organic or carbon ``fibrous or filamentary 
materials'':
    e.2.a. With a ``specific tensile strength'' exceeding 
17.7x104 m;
    e.2.b. With a ``specific modulus'' exceeding 10.15x106 m;
    e.2.c. Not controlled by 1C010.a or 1C010.b; and
    e.2.d. When impregnated with materials controlled by 1C008 or 
1C009.b, having a glass transition temperature (Tg) exceeding 
383 K (110 [deg]C) or with phenolic or epoxy resins, having a glass 
transition temperature (Tg) equal to or exceeding 418 K (145 
[deg]C).

    Notes: 1C010.e does not control:

    1. 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 90 cm;
    2. Prepregs when impregnated with phenolic or epoxy resins having a 
glass transition temperature (Tg) less than 433 K (160 
[deg]C) and a cure temperature lower than the glass transition 
temperature.

    Technical Note: The glass transition temperature (Tg) for 
1C010.e materials is determined using the method described in ASTM D 
3418 using the dry method. The glass transition temperature for phenolic 
and epoxy resins is determined using the method described in ASTM D 4065 
at a frequency of 1 Hz and a heating rate of 2 K per minute using the 
dry method.

1C011 Metals and compounds, as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, MT, AT

 
               Control(s)                         Country Chart
 
NS applies to entire entry.............  NS Column 1
MT applies to 1C011.a and .b...........  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: N/A.
Related Controls: 1.) See also 1C111. 2.) Items controlled by 1C011.a, 
and metal fuels in particle form, whether spherical, atomized, 
spheroidal, flaked or ground, manufactured from material consisting of 
99 percent or more of items controlled by 1C011.b. 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:
    a. Metals in particle sizes of less than 60 [mu]m whether spherical, 
atomized, spheroidal, flaked or ground, manufactured from material 
consisting of 99% or more of zirconium, magnesium and alloys of these;
    Technical Note: The natural content of hafnium in the zirconium 
(typically 2% to 7%) is counted with the zirconium.
    Note: The metals or alloys listed in 1C011. a are controlled whether 
or not the metals or alloys are encapsulated in aluminum, magnesium, 
zirconium or beryllium.
    b. Boron or boron carbide of 85% purity or higher and a particle 
size of 60 [mu]m or less;
    Note: The metals or alloys listed in 1C011.b are controlled whether 
or not the metals or alloys are encapsulated in aluminum, magnesium, 
zirconium or beryllium.
    c. Guanidine nitrate;
    d. Nitroguanidine (NQ) (CAS 556-88-7).

1C012 Materials, as Follows (See List of Items Controlled)

License Requirements

Reason for Control:
Control(s): Items described in 1C012 are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110)

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: N/A.
Related Controls: N/A.
Related Definitions: These materials are typically used for nuclear heat 
sources.
Items:
    a. Plutonium in any form with a plutonium isotopic assay of 
plutonium-238 of more than 50% by weight;
    Note: 1C012.a does not control:
    1. Shipments with a plutonium content of 1 g or less;
    2. Shipments of 3 ``effective grams'' or less when contained in a 
sensing component in instruments.
    b. Previously separated neptunium-237 in any form.
    Note: 1C012.b does not control shipments with a neptunium-237 
content of 1 g or less.


[[Page 615]]


1C018 Commercial charges and devices containing energetic materials on 
          the International Munitions List.

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

LVS: $3000, except N/A for Rwanda
GBS: Yes for items listed in Advisory Note to 1C018, except N/A for 
Rwanda
CIV: N/A

List of Items Controlled

    Unit: Number.
    Related Controls: (1) Explosive devices or charges that utilize USML 
controlled energetic materials (See 22 CFR 121.1, Category V) are 
subject to the licensing authority of the U.S. Department of State, 
Office of Defense Trade Controls if they have been specifically 
designed, developed, configured, adapted, or modified for a military 
application. (2) With the exception of slurries, cutters and severing 
tools, if the USML controlled materials utilized in devices and charges 
controlled by this entry can be easily extracted without destroying the 
device or charge, then they are subject to the export licensing 
authority of the U.S. Department of State, Office of Defense Trade 
Controls. (3) Commercial prefabricated slurries and emulsions containing 
greater than 35% of USML controlled energetic materials are subject to 
the export licensing authority of the U.S. Department of State, Office 
of Defense Trade Control. (4) The individual USML controlled energetic 
materials, even when compounded with other materials, remain subject to 
the export licensing authority of the Department of State when not 
incorporated into explosive devices or charges controlled by this entry 
or 1C992. (5) See also ECCNs 1C011, 1C111, and 1C239 for additional 
controlled energetic materials.
    Related Definitions: (1) For purposes of this entry, the term 
``controlled materials'' means controlled energetic materials (see ECCNs 
1C011, 1C111, 1C239 and 22 CFR 121.1, Category V). (2) For purposes of 
this entry, the mass of aluminum powder, potassium perchlorate, and any 
of the substances listed in the note to the USML (see 22 CFR Part 
121.12) (such as ammonium pictrate, black powder, etc.) contained in 
commercial explosive devices and in the charges are omitted when 
determining the total mass of controlled material.
    Items:
    a. 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 controlled materials;
    a.2. Have a uniform shaped conical liner with an included angle of 
90 degrees or less;
    a.3. Have more than 0.090 kg but not more that 2.0 kg of controlled 
materials; and
    a.4. Have a diameter not exceeding 4.5 inches.

    b. Detonating cord or shock tubes containing greater than 0.064 kg 
per meter (300 grains per foot), but not more than 0.1 kg per meter (470 
grains per foot) of controlled materials;
    c. Cartridge power devices containing greater than 0.70 kg, but not 
more than 1.0 kg of controlled materials;
    d. Detonators (electric or nonelectric) and assemblies thereof 
containing greater than 0.01 kg, but not more than 0.1 kg of controlled 
materials;
    e. Igniters containing greater than 0.01 kg, but not more than 0.1 
kg of controlled materials;
    f. Oil well cartridges containing greater than 0.015 kg, but not 
more than 0.1 kg of controlled materials;
    g. Commercial cast or pressed boosters containing greater than 1.0 
kg, but not more than 5.0 kg of controlled materials;
    h. Commercial prefabricated slurries and emulsions containing 
greater than 10 kg and less than or equal to thirty-five percent by 
weight of USML controlled materials;
    i. Cutters and severing tools containing greater than 3.5 kg, but 
not more than 10 kg of controlled materials;
    j. Pyrotechnic devices when designed exclusively for commercial 
purposes (e.g., theatrical stages, motion picture special effects, and 
fireworks displays), and containing greater than 3.0 kg, but not more 
than 5.0 kg of controlled materials; or
    k. Other commercial explosive devices and charges, not controlled by 
1C018.a through g above, when used for commercial applications and 
containing greater than 1.0 kg but not more than 5.0 kg of controlled 
materials.

1C101 Materials for reduced observables such as radar reflectivity, 
          ultraviolet/infrared signatures and acoustic signatures (i.e., 
          stealth technology), other than those controlled by 1C001, for 
          applications 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


[[Page 616]]


List of Items Controlled

Unit: $ value
Related Controls: (1) Materials controlled by this entry include 
structural materials and coatings (including paints), specially designed 
for reduced or tailored reflectivity or emissivity in the microwave, 
infrared or ultraviolet spectra. (2) This entry does not control 
coatings (including paints) when specially used for the thermal control 
of satellites. (3) For commodities that meet the definition of defense 
articles under 22 CFR 120.3 of the International Traffic in Arms 
Regulations (ITAR), see 22 CFR 121.16, Item 17-Category II of the 
(ITAR), which describes similar commodities under the jurisdiction of 
the Department of State, Directorate of Defense Trade Control.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

1C102 Resaturated pyrolized carbon-carbon materials designed for space 
          launch vehicles specified in 9A004 or sounding rockets 
          specified in 9A104. (These items are subject to the export 
          licensing authority of the U.S. Department of State, 
          Directorate of Defense Trade Controls. See 22 CFR part 121.)

1C107 Graphite and ceramic materials, other than those controlled by 
          1C007, as follows (see List of Items Controlled).

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: (1) See also OC005 and 1C004. (2) For commodities that 
meet the definition of defense articles under 22 CFR 120.3 of the ITAR, 
see 22 CFR 121.16, Item 8-Category II of the International Traffic in 
Arms Regulations (ITAR), which describes similar commodities under the 
jurisdiction of the Department of State, Directorate of Defense Trade 
Control.
Related Definitions: N/A
Items:

    a. Fine grain recrystallized bulk graphites with a bulk density of 
1.72 g/cm \3\ or greater, measured at 288 K (15 [deg]C), and having a 
particle size of 100 micrometers or less, usable for rocket nozzles and 
reentry vehicle nose tips as follows:
    a.1. Cylinders having a diameter of 120 mm or greater and a length 
of 50 mm or greater;
    a.2. Tubes having an inner diameter of 65 mm or greater and a wall 
thickness of 25 mm or greater and a length of 50 mm or greater;
    a.3. Blocks having a size of 120 mm x 120 mm x 50 mm or greater.
    b. Pyrolytic or fibrous reinforced graphites, usable for rocket 
nozzles and reentry vehicle nose tips;
    c. Ceramic composite materials (dielectric constant less than 6 at 
frequencies from 100 Hz to 10 GHz), for use in ``missile'' radomes; and
    d. Bulk machinable silicon-carbide reinforced unfired ceramic, 
usable for nose tips.

1C111 Propellants and constituent chemicals for propellants, other than 
          those specified in 1C011, as follows (see List of Items 
          Controlled).

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: Butacene as defined by 1C111.c.1 is subject to the 
export licensing authority of the U.S. Department of State, Office of 
Defense Trade Controls (See 22 CFR 121.12.b(6), other ferrocene 
derivatives)
    Related Definitions: N/A.
    Items: a. Propulsive substances:
    a.1. Spherical aluminum powder, other than that specified on the 
U.S. Munitions List, with particles of uniform diameter of less than 200 
micrometer and an aluminum content of 97% by weight or more, if at least 
10 percent of the total weight is made up of particles of less than 63 
micrometer, according to ISO 2591:1988 or national equivalents such as 
JIS Z8820.
    Technical Note: A particle size of 63 micrometer (ISO R-565) 
corresponds to 250 mesh (Tyler) or 230 mesh (ASTM standard E-11).
    a.2. Metal fuels, other than that controlled by the U.S. Munitions 
List, in particle sizes of less than z60 x 10-6 m (60 
micrometers), whether spherical, atomized, spheroidal, flaked or ground, 
consisting 97% by weight or more of any of the following:
    a.2.a Zirconium;
    a.2.b Beryllium;
    a.2.c Magnesium; or
    a.2.d Alloys of the metals specified by a.2.a to a.2.c above.

[[Page 617]]

    Technical Note: The natural content of hafnium in the zirconium 
(typically 2% to 7%) is counted with the zirconium.
    a.3. Liquid oxidizers, as follows:
    a.3.a. Dinitrogen trioxide;
    a.3.b. Nitrogen dioxide/dinitrogen tetroxide;
    a.3.c. Dinitrogen pentoxide;
    a.3.d.. Mixed Oxides of Nitrogen (MON)
    Technical Note: Mixed Oxides of Nitrogen (MON) are solutions of 
Nitric Oxide (NO) in Dinitrogen Tetroxide/Nitrogen Dioxide 
(N2O4/NO2) that can be used in missile 
systems. There are a range of compositions that can be denoted as MONi 
or MONij, where i and j are integers representing the percentage of 
Nitric Oxide in the mixture (e.g., MON3 contains 3% Nitric Oxide, MON25 
25% Nitric Oxide. An upper limit is MON40, 40% by weight).
    b. Polymeric substances:
    b.1. Carboxy-terminated polybutadiene (CTPB);
    b.2. Hydroxy-terminated polybutadiene (HTPB), other than that 
controlled by the U.S. Munitions List;
    b.3. Polybutadiene-acrylic acid (PBAA);
    b.4. Polybutadiene-acrylic acid-acrylonitrile (PBAN);
    c. Other propellant additives and agents:
    c.1. Butacene ;
    c.2. Triethylene glycol dinitrate (TEGDN);
    c.3. 2-Nitrodiphenylamine;
    c.4. Trimethylolethane trinitrate (TMETN);
    c.5. Diethylene glycol dinitrate (DEGDN).

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) having an ultimate 
          tensile strength of 1,500 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 mm.

License Requirements

Reason for Control: MT, NP, AT

 
               Control(s)                         Country Chart
 
MT applies to entire entry.............  MT Column 1
NP applies to items that meet or exceed  NP Column 1
 the parameters of 1C216.
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) See ECCNs 1E001 (``development'' and 
``production'') and 1E101 (``use'') for technology for items controlled 
by this entry. (2) Also see ECCN 1C216. (3) Maraging steel, in physical 
forms and finished products and specially designed or prepared for use 
in separating uranium isotopes, is 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.

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 greater 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.

1C118 Titanium-stabilized duplex stainless steel (Ti-DSS), having all of 
          the following characteristics (see List of Items Controlled).

License Requirements

Reason for Control: MT, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.
1AT 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. Having all of the following characteristics:
    a.1. Containing 17.0-23.0 weight percent chromium and 4.5-7.0 weight 
percent nickel;
    a.2. Having a titanium content of greater than 0.10 weight percent; 
and

[[Page 618]]

    a.3. A ferritic-austenitic microstructure (also referred to as a 
two-phase microstructure) of which at least 10 percent is austenite by 
volume (according to ASTM E-1181-87 or national equivalents), and
    b. Having any of the following forms:
    b.1. Ingots or bars having a size of 100 mm or more in each 
dimension;
    b.2. Sheets having a width of 600 mm or more and a thickness of 3 mm 
or less; or
    b.3. Tubes having an outer diameter of 600 mm or more and a wall 
thickness of 3 mm or less.

1C202 Alloys, other than those controlled by 1C002.a.2.c or .d, as 
          follows (see List of Items Controlled).

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) See ECCNs 1E001 (``development'' and 
``production'') and 1E201 (``use'') for technology for items controlled 
by this entry. (2) Also see ECCN 1C002. (3) Aluminum alloys and titanium 
alloys, in physical forms and finished products and specially designed 
or prepared for use in separating uranium isotopes, are subject to the 
export licensing authority of the Nuclear Regulatory Commission (see 10 
CFR part 110).
Related Definitions: The phrase ``capable of'' refers to aluminum alloys 
and titanium alloys either before or after heat treatment.
Items:

    a. Aluminum alloys having both of the following characteristics:
    a.1. ``Capable of'' an ultimate tensile strength of 460 MPa or more 
at 293 K (20 [deg]C); and
    a.2. In the form of tubes or cylindrical solid forms (including 
forgings) with an outside diameter of more than 75 mm;
    b. Titanium alloys having both of the following characteristics:
    b.1. ``Capable of'' an ultimate tensile strength of 900 MPa or more 
at 293 K (20 [deg]C); and
    b.2. In the form of tubes or cylindrical solid forms (including 
forgings) with an outside diameter of more than 75 mm.

1C210 ``Fibrous or filamentary materials'' or prepregs, other than those 
          controlled by 1C010.a, .b or .e, as follows (see List of Items 
          Controlled).

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) See ECCNs 1E001 (``development'' and 
``production'') and 1E201 (``use'') for technology for items controlled 
by this entry. (2) Also see ECCNs 1C010 and 1C990.
Related Definitions: For the purpose of this entry, the term ``fibrous 
          or filamentary materials'' is restricted to continuous 
          ``monofilaments'', ``yarns'', ``rovings'', ``tows'', or 
          ``tapes''. Definitions for other terms used in this entry:

    Filament or Monofilament is the smallest increment of fiber, usually 
several [mu]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/m2 divided 
by the specific weight in N/m3, measured at a temperature of 
(296  2) K ((23  2) [deg]C) 
and a relative humidity of 50  5 percent.
    Specific tensile strength is the ultimate tensile strength in N/
m2 divided by specific weight in N/m3, measured at 
a temperature of (296  2) K ((23  2) [deg]C) and a relative humidity of 50  5 percent.
Items: a. Carbon or aramid ``fibrous or filamentary materials'' having a 
``specific modulus'' of 12.7 x 106 m or greater or a 
``specific tensile strength'' of 235 x 103 m or greater 
except Aramid ``fibrous or filamentary materials'' having 0.25 percent 
or more by weight of an ester based fiber surface modifier;

    b. Glass ``fibrous or filamentary materials'' having a ``specific 
modulus'' of 3.18 x 106 m or greater and a ``specific tensile 
strength'' of 76.2 x 103 m or greater; or
    c. Thermoset resin impregnated continuous ``yarns'', ``rovings'', 
``tows'' or ``tapes'' with a width no greater than 15 mm

[[Page 619]]

(prepregs), made from carbon or glass ``fibrous or filamentary 
materials'' controlled by 1C210.a or .b.

    Technical Note: The resin forms the matrix of the composite.

1C216 Maraging steel, other than that controlled by 1C116, ``capable 
          of'' an ultimate tensile strength of 2,050 MPa or more, at 293 
          K (20 [deg]C).

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) See ECCNs 1E001 (``development'' and 
``production'') and 1E201 (``use'') for technology for items controlled 
by this entry. (2) Also see ECCN 1C116. (3) Maraging steel, in physical 
form and finished products specially designed or prepared for use in 
separating uranium isotopes, is subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110).
Related Definitions: The phrase ``capable of'' in the ECCN heading 
refers to maraging steel either before or after heat treatment.
ECCN Controls: This entry does not control forms in which all linear 
dimensions are 75 mm or less.
Items: The list of items controlled is contained in the ECCN heading.

1C225 Boron enriched in the boron-10 (10B) isotope to greater 
          than its natural isotopic abundance, as follows: elemental 
          boron, compounds, mixtures containing boron, manufactures 
          thereof, waste or scrap of any of the foregoing.

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 ECCNs 1E001 (``development'' and ``production'') 
and 1E201 (``use'') for technology for items controlled by this entry.
Related Definitions: In this entry, mixtures containing boron include 
boron-loaded materials.
Items:
    Technical Note: The natural isotopic abundance of boron-10 is 
approximately 18.5 weight percent (20 atom percent).
    The list of items controlled is contained in the ECCN heading.

1C226 Tungsten, tungsten carbide, and alloys containing more than 90% 
          tungsten by weight, having both of the following 
          characteristics (see List of Items Controlled).

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 ECCNs 1E001 (``development'' and ``production'') 
and 1E201 (``use'') for technology for items controlled by this entry.
Related Definitions: N/A
ECCN Controls: This entry does not control manufactures specially 
designed as weights or gamma-ray collimators.
Items:

    a. In forms with a hollow cylindrical symmetry (including cylinder 
segments) with an inside diameter between 100 and 300 mm; and
    b. A mass greater than 20 kg.

1C227 Calcium having both of the following characteristics (see List of 
          Items Controlled).

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 ECCNs 1E001 (``development'' and ``production'') 
and 1E201 (``use'') for technology for items controlled by this entry.

[[Page 620]]

Related Definitions: N/A
Items:

    a. Containing less than 1,000 parts per million by weight of 
metallic impurities other than magnesium; and
    b. Containing less than 10 parts per million by weight of boron.

1C228 Magnesium having both of the following characteristics (see List 
          of Items Controlled).

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: See ECCNs 1E001 (``development'' and ``production'') 
and 1E201 (``use'') for technology for items controlled by this entry.
Related Definitions: N/A
Items:

    a. Containing less than 200 parts per million by weight of metallic 
impurities other than calcium; and
    b. Containing less than 10 parts per million by weight of boron.

1C229 Bismuth having both of the following characteristics (see List of 
          Items Controlled)

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 ECCNs 1E001 (``development'' and ``production'') 
and 1E201 (``use'') for technology for items controlled by this entry.
Related Definitions: N/A
Items:

    a. A purity of 99.99% or greater by weight; and
    b. Containing less than 10 parts per million by weight of silver.

1C230 Beryllium metal, alloys containing more than 50% beryllium by 
          weight, beryllium compounds, manufactures thereof, and waste 
          or scrap of any of the foregoing.

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 ECCNs 1E001 (``development'' and ``production'') 
and 1E201 (``use'') for technology for items controlled by this entry.
Related Definitions: N/A
ECCN Controls: This entry does not control the following:
    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;
    c. Beryl (silicate of beryllium and aluminum) in the form of 
emeralds or aquamarines.
    Items: The list of items controlled is contained in the ECCN 
heading.

1C231 Hafnium metal, hafnium alloys and compounds containing more than 
          60% hafnium by weight, manufactures thereof, and waste or 
          scrap of any of the foregoing.

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 ECCNs 1E001 (``development'' and ``production'') 
and 1E201 (``use'') for technology for items controlled by this entry.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.


[[Page 621]]


1C232 Helium-3 (3He), mixtures containing helium-3, and 
          products or devices containing any of the foregoing.

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: See ECCNs 1E001 (``development'' and ``production'') 
and 1E201 (``use'') for technology for items controlled by this entry.
Related Definitions: N/A
ECCN Controls: This entry does not control a product or device 
containing less than 1 g of helium-3.
Items: The list of items controlled is contained in the ECCN heading.

1C233 Lithium enriched in the lithium-6 (6 Li) isotope to 
          greater than its natural isotopic abundance, and products or 
          devices containing enriched lithium, as follows: elemental 
          lithium, alloys, compounds, mixtures containing lithium, 
          manufactures thereof, and waste or scrap of any of the 
          foregoing. 

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) See ECCNs 1E001 (``development'' and 
``production'') and 1E201 (``use'') for technology for items controlled 
by this entry. (2) Facilities or plants specially designed or prepared 
for the separation of lithium isotopes are subject to the export 
licensing authority of the Nuclear Regulatory Commission (see 10 CFR 
part 110).
Related Definitions: The natural isotopic abundance of lithium-6 is 
approximately 6.5 weight percent (7.5 atom percent).
ECCN Controls: This entry does not control thermoluminescent dosimeters.
Items: The list of items controlled is contained in the ECCN heading.

1C234 Zirconium with a hafnium content of less than 1 part hafnium to 
          500 parts zirconium by weight, as follows: metal, alloys 
          containing more than 50% zirconium by weight, compounds, 
          manufactures thereof, and waste or scrap of any of the 
          foregoing.

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) See ECCNs 1E001 (``development'' and 
``production'') and 1E201 (``use'') for technology for items controlled 
by this entry. (2) 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).
Related Definitions: N/A
ECCN Controls: This entry does not control zirconium in the form of foil 
having a thickness of 0.10 mm (0.004 in.) or less.
Items: The list of items controlled is contained in the ECCN heading.

1C235 Tritium, tritium compounds, mixtures containing tritium in which 
          the ratio of tritium to hydrogen atoms exceeds 1 part in 
          1,000, and products or devices containing any of the 
          foregoing.

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) See ECCNs 1E001 (``development'' and 
``production'') and 1E201 (``use'') for technology for items controlled 
by this entry. (2) Also see ECCN 1B231. (3) Tritium that is byproduct 
material (e.g., produced in a nuclear reactor) is subject to the export 
licensing authority of the Nuclear Regulatory Commission (see 10 CFR 
part 110).
Related Definitions: N/A

[[Page 622]]

ECCN Controls: (1) This entry does not control tritium, tritium 
compounds, and mixtures that are byproduct material (e.g., produced in a 
nuclear reactor)--such materials are subject to the licensing 
jurisdiction of the Nuclear Regulatory Commission (see Related Controls 
paragraph for this entry). (2) This entry does not control a product or 
device containing less than 1.48 x 103 GBq (40 Ci) of 
tritium.
Items: The list of items controlled is contained in the ECCN heading.

1C236 Alpha-emitting radionuclides having an alpha half-life of 10 days 
          or greater, but less than 200 years, in the following forms 
          (see List of Items Controlled).

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: Gigabecquerels
Related Controls: (1) See ECCNs 1E001 (``development'' and 
``production'') and 1E201 (``use'') for technology for items controlled 
by this entry. (2) Certain alpha-emitting radionuclides are subject to 
the export licensing authority of the Nuclear Regulatory Commission (see 
10 CFR part 110).
Related Definitions: N/A
ECCN Controls: This entry does not control a product or device 
containing less than 3.7 GBq (100 millicuries) of alpha activity.
Items:

    a. Elemental;
    b. Compounds having a total alpha activity of 37 GBq/kg (1 Ci/kg) or 
greater;
    c. Mixtures having a total alpha activity of 37 GBq/kg (1 Ci/kg) or 
greater;
    d. Products or devices containing any of the items in 1C236.a, .b., 
or .c.

1C237 Radium-226 (226Ra), radium-226 alloys, radium-226 
          compounds, mixtures containing radium-226, manufactures 
          thereof, and products or devices containing any of the 
          foregoing.

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: Gigabecquerels
Related Controls: See ECCNs 1E001 (``development'' and ``production'') 
and 1E201 (``use'') for technology for items controlled by this entry.
Related Definitions: N/A
ECCN Controls: This entry does not control the following:
    a. Medical applicators;
    b. A product or device containing less than 0.37 GBq (10 
millicuries) of radium-226.
Items: The list of items controlled is contained in the ECCN heading.

1C238 Chlorine trifluoride (ClF3).

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 ECCNs 1E001 (``development'' and ``production'') 
and 1E201 (``use'') for technology for items controlled by this entry.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

1C239 High explosives, other than those controlled by the U.S. Munitions 
          List, or substances or mixtures containing more than 2% by 
          weight thereof, with a crystal density greater than 1.8 g/
          cm3 and having a detonation velocity greater than 
          8,000 m/s.

License Requirements

Reason for Control:

 
               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) See ECCNs 1E001 (``development'' and 
``production'') and 1E201 (``use'') for technology for items controlled 
by this entry. (2) High explosives for military use are subject to the 
export licensing authority of the U.S. Department of State,

[[Page 623]]

Office of Defense Trade Controls (see 22 CFR part 121.12).
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

1C240 Nickel powder or porous nickel metal, other than those described 
          in 0C006, as follows (see List of Items Controlled). 

License Requirements

Reason for Control:

 
               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) See ECCNs 1E001 (``development'' and 
``production'') and 1E201 (``use'') for technology for items controlled 
by this entry. (2) Nickel powder and porous nickel metal, specially 
designed or prepared for use in separating uranium isotopes, are subject 
to the export licensing authority of the Nuclear Regulatory Commission 
(see 10 CFR part 110).
Related Definitions: N/A
ECCN Controls: This entry does not control the following:
    a. Filamentary nickel powders;
    b. Single porous nickel sheets with an area of 1,000 cm2 
per sheet or less.
Items:

    a. Nickel powder having both of the following characteristics:
    a.1. A nickel purity content of 99.0% or greater by weight; and
    a.2. A mean particle size of less than 10 micrometers measured by 
American Society for Testing and Materials (ASTM) B330 standard;
    b. Porous nickel metal produced from materials controlled by 
1C240.a.
    Technical Note: 1C240.b refers to porous metal formed by compacting 
and sintering the materials in 1C240.a to form a metal material with 
fine pores interconnected throughout the structure.

1C350 Chemicals that may be used as precursors for toxic chemical 
          agents.

                          License Requirements

Reason for Control: CB, CW, AT

 
                Control(s)                          Country Chart
 
CB applies to entire entry................  CB Column 2
 

    CW applies to 1C350.a, .b, and .c. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled for CW 
reasons. A license is required, for CW reasons, to export or reexport 
Schedule 1 chemicals and mixtures identified in 1C350.a to all 
destinations, including Canada. A license is required, for CW reasons, 
to export or reexport Schedule 2 chemicals and mixtures identified in 
1C350.b to States not Party to the CWC (destinations not listed in 
Supplement No. 2 to part 745 of the EAR). A license is required, for CW 
reasons, to export Schedule 3 chemicals and mixtures identified in 
1C350.c to States not Party to the CWC, unless an End-Use Certificate 
issued by the government of the importing country has been obtained by 
the exporter prior to export. A license is required, for CW reasons, to 
reexport Schedule 3 chemicals and mixtures identified in 1C350.c from a 
State not Party to the CWC to any other State not Party to the CWC. (See 
Sec.  742.18 of the EAR for license requirements and policies for toxic 
and precursor chemicals controlled for CW reasons. See Sec.  745.2 of 
the EAR for End-Use Certificate requirements that apply to exports of 
Schedule 3 chemicals to countries not listed in Supplement No. 2 to part 
745 of the EAR.) AT applies to entire entry. The Commerce Country Chart 
is not designed to determine licensing requirements for items controlled 
for AT reasons in 1C350. A license is required, for AT reasons, to 
export or reexport items controlled by 1C350 to Cuba, Iran, Iraq, Libya, 
North Korea, Sudan, and Syria. (See Part 742 of the EAR for additional 
information on the AT controls that apply to Iran, North Korea, Sudan, 
and Syria. See Part 746 of the EAR for additional information on the 
comprehensive trade sanctions that apply to Cuba, Iran, Iraq, and 
Libya.)
    License Requirement Notes:
    1. SAMPLE SHIPMENTS: Subject to the following requirements and 
restrictions, 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 a single chemical to any one consignee during a 
calendar year. A consignee that receives a sample shipment under this 
exclusion may not resell, transfer, or reexport the sample shipment, but 
may use the sample shipment for any other legal purpose unrelated to 
chemical weapons.
    a. Chemicals Not Eligible:
    A. CWC Schedule 1 chemicals (all destinations). The CWC Schedule 1 
chemicals and mixtures identified in 1C350.a are not eligible for sample 
shipment to any destination without a license.
    B. CWC Schedule 2 chemicals (States not Party to the CWC). No CWC 
Schedule 2 chemical or mixture identified in 1C350.b is eligible for 
sample shipment to States not Party to

[[Page 624]]

the CWC (destinations not listed in Supplement No. 2 to part 745 of the 
EAR) without a license.
    b. Countries Not Eligible: The following countries are not eligible 
to receive sample shipments of any chemicals controlled by this ECCN 
without a license: Cuba, Iran, Iraq, Libya, North Korea, Sudan, Syria.
    c. Sample shipments that require an End-Use Certificate for CW 
reasons: No CWC Schedule 3 chemical or mixture identified in 1C350.c is 
eligible for sample shipment to States not Party to the CWC 
(destinations not listed in Supplement No. 2 to Part 745 of the EAR) 
without a license, unless an End-Use Certificate issued by the 
government of the importing country is obtained by the exporter prior to 
export (see Sec.  745.2 of the EAR for End-Use Certificate 
requirements).
    d. Sample shipments that require a license for reasons set forth 
elsewhere in the EAR: Sample shipments, as described in this Note 1, may 
require a license for reasons set forth elsewhere in the EAR. See, in 
particular, the end-use/end-user restrictions in Part 744 of the EAR, 
and the restrictions that apply to embargoed countries in Part 746 of 
the EAR.
    e. Quarterly report requirement. 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 Industry and Security, P.O. Box 273, 
Washington, DC 20044, Attn: ``Report of Sample Shipments of Chemical 
Precursors''.
    2. MIXTURES:
    a. Mixtures that contain precursor chemicals identified in ECCN 
1C350, in concentrations that are below the levels indicated in 1C350.a 
through .d, are controlled by ECCN 1C395 or 1C995 and are subject to the 
license requirements specified in those ECCNs.
    b. A license is not required for mixtures controlled under this ECCN 
when the controlled chemical in the mixture is a normal ingredient in 
consumer goods packaged for retail sale for personal use. Such consumer 
goods are classified as EAR99.
    c. A license is not required for mixtures containing less than 0.5% 
aggregate quantities, by weight, of the CWC Schedule 1 chemicals 
controlled by 1C350.a as unavoidable by-products or impurities. Such 
mixtures are classified as EAR99. All other mixtures containing these 
Schedule 1 chemicals are controlled by ECCN 1C350.a.
    Note to Mixtures: Calculation of concentrations of controlled 
chemicals:
    a. Exclusion. No chemical may be added to the mixture (solution) for 
the sole purpose of circumventing the Export Administration Regulations;
    b. Percent Weight Calculation. When calculating the percentage, by 
weight, of components in a chemical mixture, include all components of 
the mixture, including those that act as solvents.
    3. COMPOUNDS: Compounds created with any chemicals identified in 
this ECCN 1C350 may be shipped NLR (No License Required), without 
obtaining an End-Use Certificate, unless those compounds are also 
identified in this entry or require a license for reasons set forth 
elsewhere in the EAR.
    4. TESTING KITS: Certain medical, analytical, diagnostic, and food 
testing kits containing small quantities of chemicals identified in this 
ECCN 1C350, except chemicals identified as Schedule 1 chemicals under 
the CWC, are excluded from the scope of this ECCN and are controlled 
under ECCN 1C395 or ECCN 1C995. (Note that replacement reagents for such 
kits are controlled by this ECCN 1C350 if the reagents contain at least 
one of the precursor chemicals identified in 1C350 in concentrations 
equal to or greater than the control levels for mixtures indicated in 
1C350.)
    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 (see 
1C350.d.7 in the List of Items Controlled) includes its liquid, gaseous, 
and aqueous phases, and hydrates.

                           License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

                        List of Items Controlled

    Unit: Liters or kilograms, as appropriate.
    Related Controls: 1C350.a controls certain CWC Schedule 1 chemicals 
(see Sec.  742.18 of the EAR). The U.S. Government must provide advance 
notification and annual reports to the OPCW of all exports of Schedule 1 
chemicals. See Sec. Sec.  742.18 and 745.1 of the EAR for notification 
and annual report requirements. See 22 CFR part 121, Category XIV and 
Sec.  121.7 for additional CWC Schedule 1 chemicals controlled by the 
Department of State. Also see ECCNs 1C355, 1C395, and 1C995.
    Related Definitions: See Sec.  770.2(k) of the EAR for synonyms for 
the chemicals listed in this entry.
    Items:
    a. Australia Group-controlled precursor chemicals also identified as 
Schedule 1 chemicals under the CWC, as follows, and

[[Page 625]]

mixtures containing any amount of the following chemicals, except 
mixtures that contain less than 0.5% aggregate quantities (by weight) of 
these chemicals as unavoidable by-products or impurities (i.e., the 
Schedule 1 chemicals are not intentionally produced or added):
    a.1. (C.A.S. 57856-11-8) 0-Ethyl-2-diisopropylaminoethyl 
methyl phosphonite (QL);
    a.2. (C.A.S. 753-98-0) Ethyl phosphonyl difluoride;
    a.3. (C.A.S. 676-99-3) Methyl phosphonyl difluoride.
    b. Australia Group-controlled precursor chemicals also identified as 
Schedule 2 chemicals under the CWC, as follows, and mixtures in which at 
least one of the following chemicals constitutes 30 percent or more of 
the weight of the mixture:
    b.1. (C.A.S. 7784-34-1) Arsenic trichloride;
    b.2. (C.A.S. 76-93-7) Benzilic acid;
    b.3. (C.A.S. 78-38-6) Diethyl ethylphosphonate;
    b.4. (C.A.S. 15715-41-0) Diethyl methylphosphonite;
    b.5. (C.A.S. 2404-03-7) Diethyl-N,N-
dimethylphosphoroamidate;
    b.6. (C.A.S. 5842-07-9) N,N-Diisopropyl-beta-aminoethane 
thiol;
    b.7. (C.A.S. 4261-68-1) N,N-Diisopropyl-beta-aminoethyl 
chloride hydrochloride;
    b.8. (C.A.S. 96-80-0) N,N-Diisopropyl-beta-aminoethanol;
    b.9. (C.A.S. 96-79-7), N,N-Diisopropyl-beta-aminoethyl 
chloride;
    b.10. (C.A.S. 6163-75-3) Dimethyl ethylphosphonate;
    b.11. (C.A.S. 756-79-6) Dimethyl methylphosphonate;
    b.12. (C.A.S. 1498-40-4) Ethyl phosphonous dichloride 
[Ethyl phosphinyl dichloride];
    b.13. (C.A.S. 430-78-4) Ethyl phosphonus difluoride [Ethyl 
phosphinyl difluoride];
    b.14. (C.A.S. 1066-50-8) Ethyl phosphonyl dichloride;
    b.15. (C.A.S. 676-83-5) Methyl phosphonous dichloride 
[Methyl phosphinyl dichloride];
    b.16. (C.A.S. 753-59-3) Methyl phosphonous difluoride 
[Methyl phosphinyl difluoride];
    b.17. (C.A.S. 676-97-1) Methyl phosphonyl dichloride;
    b.18. (C.A.S. 464-07-3) Pinacolyl alcohol;
    b.19. (C.A.S. 1619-34-7) 3-Quinuclidinol;
    b.20. (C.A.S. 111-48-8) Thiodiglycol.
    c. Australia Group-controlled precursor chemicals also identified as 
Schedule 3 chemicals under the CWC, as follows, and mixtures in which at 
least one of the following chemicals constitutes 30 percent or more of 
the weight of the mixture:
    c.1. (C.A.S. 762-04-9) Diethyl phosphite;
    c.2. (C.A.S. 868-85-9) Dimethyl phosphite (dimethyl 
hydrogen phosphite);
    c.3. (C.A.S. 10025-87-3) Phosphorus oxychloride;
    c.4. (C.A.S. 10026-13-8) Phosphorus pentachloride;
    c.5. (C.A.S. 7719-12-2) Phosphorus trichloride;
    c.6. (C.A.S. 10025-67-9) Sulfur monochloride;
    c.7. (C.A.S. 10545-99-0) Sulfur dichloride;
    c.8. (C.A.S. 7719-09-7) Thionyl chloride;
    c.9. (C.A.S. 102-71-6) Triethanolamine;
    c.10. (C.A.S. 122-52-1) Triethyl phosphite;
    c.11. (C.A.S. 121-45-9) Trimethyl phosphite.
    d. Other Australia Group-controlled precursor chemicals not also 
identified as Schedule 1, 2, or 3 chemicals under the CWC, as follows, 
and mixtures in which at least one of the following chemicals 
constitutes 30 percent or more of the weight of the mixture:
    d.1. (C.A.S. 1341-49-7) Ammonium hydrogen fluoride;
    d.2. (C.A.S. 107-07-3) 2-Chloroethanol;
    d.3. (C.A.S. 100-37-8) N,N-Diethylaminoethanol;
    d.4. (C.A.S. 108-18-9) Di-isopropylamine;
    d.5. (C.A.S. 124-40-3) Dimethylamine;
    d.6. (C.A.S. 506-59-2) Dimethylamine hydrochloride;
    d.7. (C.A.S. 7664-39-3) Hydrogen fluoride;
    d.8. (C.A.S. 3554-74-3) 3-Hydroxyl-1-methylpiperidine;
    d.9. (C.A.S. 76-89-1) Methyl benzilate;
    d.10. (C.A.S. 1314-80-3) Phosphorus pentasulfide;
    d.11. (C.A.S. 75-97-8) Pinacolone;
    d.12. (C.A.S. 151-50-8) Potassium cyanide;
    d.13. (C.A.S. 7789-23-3) Potassium fluoride;
    d.14. (C.A.S. 7789-29-9) Potassium bifluoride;
    d.15. (C.A.S. 3731-38-2) 3-Quinuclidone;
    d.16. (C.A.S. 1333-83-1) Sodium bifluoride;
    d.17. (C.A.S. 143-33-9) Sodium cyanide;
    d.18. (C.A.S. 7681-49-4) Sodium fluoride;
    d.19. (C.A.S. 1313-82-2) Sodium sulfide;
    d.20. (C.A.S. 637-39-8) Triethanolamine hydrochloride.

1C351 Human and zoonotic pathogens and ``toxins'', as follows (see List 
          of Items Controlled).

License Requirements

Reason for Control: CB, CW, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
CB applies to entire entry.............  CB Column 1
------------------------------------------------------------------------

    CW applies to 1C351.d.5 and d.6 and a license is required for CW 
reasons for all destinations, including Canada, as follows: CW applies 
to 1C351.d.5 for ricin in the form of (1) Ricinus Communis AgglutininII 
(RCAII), also known as ricin D or Ricinus Communis LectinIII (RCLIII); 
and (2) Ricinus Communis LectinIV (RCLIV), also known as ricin E. CW 
applies to 1C351d.6 for saxitoxin identified by C.A.S. 35523-
89-8. See Sec.  742.18 of the EAR for

[[Page 626]]

licensing information pertaining to chemicals subject to restriction 
pursuant to the Chemical Weapons Convention (CWC). The Commerce Country 
Chart is not designed to determine licensing requirements for items 
controlled for CW reasons.

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: Certain forms of ricin and saxitoxin in 1C351.d.5. and 
d.6 are CWC Schedule 1 chemicals (see Sec.  742.18 of the EAR). The U.S. 
Government must provide advance notification and annual reports to the 
OPCW of all exports of Schedule 1 chemicals. see Sec.  745.1 of the EAR 
for notification procedures. see 22 CFR part 121, Category XIV and Sec.  
121.7 for additional CWC Schedule 1 chemicals controlled by the 
Department of State. All vaccines and ``immunotoxins'' are excluded from 
the scope of this entry. Certain medical products and diagnostic and 
food testing kits that contain biological toxins controlled under 
paragraph (d) of this entry, with the exception of toxins controlled for 
CW reasons under d.5 and d.6, are excluded from the scope of this entry. 
Vaccines, ``immunotoxins'', certain medical products, and diagnostic and 
food testing kits excluded from the scope of this entry are controlled 
under ECCN 1C991. For the purposes of this entry, only saxitoxin is 
controlled under paragraph d.6; other members of the paralytic shellfish 
poison family (e.g. neosaxitoxin) are classified as EAR99.
Related Definitions: 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;
    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; or
    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 (Cyanginosin);
    d.5. Ricin;
    d.6. Saxitoxin;
    d.7. Shiga toxin;
    d.8. Staphylococcus aureus toxins;
    d.9. Tetrodotoxin;
    d.10. Verotoxin;
    d.11. Aflatoxins;
    d.12. Abrin;
    d.13. Cholera toxin;
    d.14. Diacetoxyscirpenol toxin;
    d.15. T-2 toxin;
    d.16. HT-2 toxin;
    d.17. Modeccin toxin;
    d.18. Volkensin toxin; or
    d.19. Viscum Album Lectin 1 (Viscumin).

1C352 Animal pathogens, as follows (see List of Items Controlled).

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

[[Page 627]]

Related Controls: All vaccines are excluded from the scope of this 
entry. See also 1C991.
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 (O.J. L.16 23.1.92 p.19) 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 haemagglutinin;
    a.3. Bluetongue virus;
    a.4. Foot and mouth disease virus;
    a.5. Goat pox virus;
    a.6. Porcine herpes virus (Aujeszky's disease);
    a.7. Swine fever virus (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 (swine vesicular disease virus);
    a.12. Rinderpest virus;
    a.13. Sheep pox virus;
    a.14. Teschen disease virus;
    a.15. Vesicular stomatitis virus;
    b. Bacteria, as follows:
    b.1. Mycoplasma mycoides.
    b.2. Reserved.

1C353 Genetic elements and genetically modified organisms, as follows 
          (see List of Items Controlled).

                          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: Vaccines that contain genetic elements or genetically 
modified organisms identified in this entry are controlled by ECCN 
1C991.
    Related Definitions: N/A.
    Items:

    a. Genetic elements, as follows:
    a.1. Genetic elements that contain nucleic acid sequences associated 
with the pathogenicity of microorganisms controlled by 1C351.a. to .c, 
1C352, or 1C354;
    a.2. Genetic elements that contain nucleic acid sequences coding for 
any of the ``toxins'' controlled by 1C351.d or ``subunits of toxins'' 
thereof.
    Technical Note: Genetic elements include, inter alia, chromosomes, 
genomes, plasmids, transposons, and vectors, whether genetically 
modified or unmodified.
    b. Genetically modified organisms, as follows:
    b.1. Genetically modified organisms that contain nucleic acid 
sequences associated with the pathogenicity of microorganisms controlled 
by 1C351.a. to .c, 1C352, or 1C354;
    b.2. Genetically modified organisms that contain nucleic acid 
sequences coding for any of the ``toxins'' controlled by 1C351.d or 
``subunits of toxins'' thereof.

1C354 Plant pathogens, as follows (see List of Items Controlled).

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 also 1C991
Related Definitions: N/A
Items: a. Bacteria, as follows:

    a.1. Xanthomonas albilineans;
    a.2. Xanthomonas campestris pv. citri including strains referred to 
as Xanthomonas campestris pv. citri types A,B,C,D,E or otherwise 
classified as Xanthomonas citri, Xanthomonas campestris pv. aurantifolia 
or Xanthomonas campestris pv. citrumelo;
    b. Fungi, as follows:
    b.1. Colletotrichum coffeanum var. virulans (Colletotrichum 
kahawae);
    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);
    b.6. Magnaporthe grisea (pyricularia grisea/pyricularia oryzae).

1C355 Chemical Weapons Convention (CWC) Schedule 2 and 3 chemicals and 
          families of chemicals not controlled by ECCN 1C350 or by the 
          Department of State under the ITAR.

                          License Requirements

    Reason for Control: CW, AT
Control(s)

[[Page 628]]

    CW applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled for CW 
reasons. A license is required to export or reexport CWC Schedule 2 
chemicals and mixtures identified in 1C355.a to States not Party to the 
CWC (destinations not listed in Supplement No. 2 to part 745). A license 
is required to export CWC Schedule 3 chemicals and mixtures identified 
in 1C355.b to States not Party to the CWC, unless an End-Use Certificate 
issued by the government of the importing country is obtained by the 
exporter, prior to export. A license is required to reexport CWC 
Schedule 3 chemicals and mixtures identified in 1C355.b from a State not 
Party to the CWC to any other State not Party to the CWC. (See Sec.  
742.18 of the EAR for license requirements and policies for toxic and 
precursor chemicals controlled for CW reasons.)
    AT applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled for AT 
reasons in 1C355. A license is required, for AT reasons, to export or 
reexport items controlled by 1C355 to Cuba, Iran, Iraq, Libya, North 
Korea, Sudan, and Syria. (See Part 742 of the EAR for additional 
information on the AT controls that apply to Iran, North Korea, Sudan, 
and Syria. See Part 746 of the EAR for additional information on the 
comprehensive trade sanctions that apply to Cuba, Iran, Iraq, and 
Libya.)
    License Requirements Notes:
    1. MIXTURES:
    a. Mixtures containing toxic and precursor chemicals identified in 
ECCN 1C355, in concentrations that are below the control levels 
indicated in 1C355.a and .b, are controlled by ECCN 1C995 and are 
subject to the license requirements specified in that ECCN.
    b. Mixtures containing chemicals identified in this entry are not 
controlled by ECCN 1C355 when the controlled chemical is a normal 
ingredient in consumer goods packaged for retail sale for personal use 
or packaged for individual use. Such consumer goods are classified as 
EAR99.
    Note to Mixtures: Calculation of concentrations of CW-controlled 
chemicals:
    a. Exclusion. No chemical may be added to the mixture (solution) for 
the sole purpose of circumventing the Export Administration Regulations;
    b. Percent Weight Calculation. When calculating the percentage, by 
weight, of components in a chemical mixture, include all components of 
the mixture, including those that act as solvents.
    2. COMPOUNDS: Compounds created with any chemicals identified in 
this ECCN 1C355 may be shipped NLR (No License Required), without 
obtaining an End-Use Certificate, unless those compounds are also 
identified in this entry or require a license for reasons set forth 
elsewhere in the EAR.
    Technical Notes: 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.

                           License Exceptions

    LVS: N/A.
    GBS: N/A.
    CIV: N/A.

                        List of Items Controlled

    Unit: Liters or kilograms, as appropriate.
    Related Controls: See also ECCNs 1C350, 1C351, 1C395, and 1C995. See 
Sec. Sec.  742.18 and 745.2 of the EAR for End-Use Certification 
requirements. See 22 CFR part 121, Category XIV and Sec.  121.7 for 
chloropicrin (trichloronitromethane) (C.A.S. 76-06-2) (Schedule 3). 
Mixtures containing chloropicrin (trichloronitromethane) that have been 
transferred to the Department of Commerce from the Department of State 
through a commodity jurisdiction determination are controlled under this 
entry.
    Related Definitions: N/A.
    Items:
    a. CWC Schedule 2 chemicals and mixtures containing Schedule 2 
chemicals:
    a.1. Toxic chemicals, as follows, and mixtures containing toxic 
chemicals:
    a.1.a. PFIB: 1,1,3,3,3-Pentafluoro-2-(trifluoromethyl)-1-propene 
(C.A.S. 382-21-8) and mixtures in which PFIB constitutes more than 1 
percent of the weight of the mixture;
    a.1.b. [Reserved].
    a.2. Precursor chemicals, as follows, and mixtures in which at least 
one of the following precursor chemicals constitutes more than 10 
percent of the weight of the mixture:
    a.2.a. FAMILY: Chemicals except for those listed in Schedule 1, 
containing a phosphorus atom to which is bonded one methyl, ethyl, or 
propyl (normal or iso) group with no additional carbon atoms in the 
structure;
    Note: 1C355.a.2.a does not control Fonofos: O-Ethyl S-phenyl 
ethylphosphonothiolothionate (C.A.S. 944-22-9).
    a.2.b. FAMILY: N,N-Dialkyl (Me, Et, n-Pr or i-Pr) phosphoramidic 
dihalides;
    a.2.c. FAMILY: Dialkyl (Me, Et, n-Pr or i-Pr) N,N-dialkyl (Me, Et, 
n-Pr, or i-Pr)-phosphoramidates;
    a.2.d. FAMILY: N,N-Dialkyl (Me, Et, n-Pr or i-Pr) aminoethyl-2-
chlorides and corresponding protonated salts;
    a.2.e. FAMILY: N,N-Dialkyl (Me, Et, n-Pr or i-Pr) aminoethane-2-ols 
and corresponding protonated salts;
    Note: 1C355.a.2.e. does not control N,N-Dimethylaminoethanol and 
corresponding protonated salts (C.A.S. 108-01-0) or N,N-
Diethylaminoethanol and corresponding protonated salts (C.A.S. 100-37-
8).

[[Page 629]]

    a.2.f. FAMILY: N,N-Dialkyl (Me, Et, n-Pr or i-Pr) aminoethane-2-
thiols and corresponding protonated salts.
    b. CWC Schedule 3 chemicals and mixtures containing Schedule 3 
chemicals:
    b.1. Toxic chemicals, as follows, and mixtures in which at least one 
of the following toxic chemicals constitutes 30 percent or more of the 
weight of the mixture:
    b.1.a. Phosgene: Carbonyl dichloride (C.A.S. 75-44-5);
    b.1.b. Cyanogen chloride (C.A.S. 506-77-4);
    b.1.c. Hydrogen cyanide (C.A.S. 74-90-8).
    b.2. Precursor chemicals, as follows, and mixtures in which at least 
one of the following precursor chemicals constitutes 30 percent or more 
of the weight of the mixture:
    b.2.a. Ethyldiethanolamine (C.A.S. 139-87-7);
    b.2.b. Methyldiethanolamine (C.A.S. 105-59-9).
    b.3. Mixtures containing chloropicrin (trichloronitromethane)(C.A.S. 
76-06-2), transferred from the Department of State (see Related 
Controls).

1C395 Mixtures and Medical, Analytical, Diagnostic, and Food Testing 
          Kits Not Controlled by ECCN 1C350, as follows (See List of 
          Items Controlled).

                          License Requirements

Reason for Control: CB, CW, AT

 
                Control(s)                          Country Chart
 
 
 

    CB applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled for CB 
reasons in 1C395. A license is required, for CB reasons, to export or 
reexport mixtures controlled by 1C395.a and test kits controlled by 
1C395.b to States not Party to the CWC (destinations not listed in 
Supplement No. 2 to part 745 of the EAR).
    CW applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled for CW 
reasons. A license is required for CW reasons, as follows, to States not 
Party to the CWC (destinations not listed in Supplement No. 2 to Part 
745 of the EAR): (1) Exports and reexports of mixtures controlled by 
1C395.a, (2) exports and reexports of test kits controlled by 1C395.b 
that contain CWC Schedule 2 chemicals controlled by ECCN 1C350, (3) 
exports of test kits controlled by 1C395.b that contain CWC Schedule 3 
chemicals controlled by ECCN 1C350, except that a license is not 
required, for CW reasons, to export test kits containing CWC Schedule 3 
chemicals if an End-Use Certificate issued by the government of the 
importing country is obtained by the exporter prior to export, and (4) 
reexports from States not Party to the CWC of test kits controlled by 
1C395.b that contain CWC Schedule 3 chemicals. (See Sec.  742.18 of the 
EAR for license requirements and policies for toxic and precursor 
chemicals controlled for CW reasons.)
    AT applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled for AT 
reasons in 1C395. A license is required, for AT reasons, to export or 
reexport items controlled by 1C395 to Cuba, Iran, Iraq, Libya, North 
Korea, Sudan, and Syria. (See Part 742 of the EAR for additional 
information on the AT controls that apply to Iran, North Korea, Sudan, 
and Syria. See Part 746 of the EAR for additional information on the 
comprehensive trade sanctions that apply to Cuba, Iran, Iraq, and 
Libya.)
    License Requirement Notes:
    1. 1C395.b does not control mixtures that contain precursor 
chemicals identified in ECCN 1C350.b or .c in concentrations below the 
control levels for mixtures indicated in 1C350.b or .c. 1C395.a and 
1C995.a.1 and a.2.a control such mixtures, unless they are consumer 
goods as described in License Requirements Note 2 of this ECCN.
    2. This ECCN does not control mixtures when the controlled chemicals 
are normal ingredients in consumer goods packaged for retail sale for 
personal use. Such consumer goods are classified as EAR99.

                           License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

                        List of Items Controlled

    Unit: $ value
    Related Controls: 1. ECCN 1C350 controls mixtures containing 30 
percent or higher concentrations, by weight, of any single CWC Schedule 
2 chemical identified in ECCN 1C350.b; ECCN 1C995 controls such mixtures 
containing concentrations of 10 percent or less. 2. ECCN 1C995 controls 
``medical, analytical, diagnostic, and food testing kits'' (as defined 
in the Related Definitions paragraph of this ECCN) that contain 
precursor chemicals listed in 1C350.d. ECCN 1C350 controls any such kits 
that contain CWC Schedule 1 chemicals listed in 1C350.a or testing kits 
in which the amount of any single chemical listed in 1C350.b, .c, or .d 
exceeds 300 grams by weight.
    Related Definitions: For the purpose of this entry, ``medical, 
analytical, diagnostic, and food testing kits'' are pre-packaged 
materials of defined composition that are specifically developed, 
packaged and marketed for medical, analytical, diagnostic, or public 
health purposes. Replacement reagents for medical, analytical, 
diagnostic, and food

[[Page 630]]

testing kits described in 1C395.b are controlled by ECCN 1C350 if the 
reagents contain at least one of the precursor chemicals identified in 
that ECCN in concentrations equal to or greater than the control levels 
for mixtures indicated in 1C350.b. or .c.
    Items:
    a. Mixtures containing more than 10 percent, but less than 30 
percent, by weight of any single CWC Schedule 2 chemical identified in 
ECCN 1C350.b (For controls on other mixtures containing these chemicals, 
see Note 1 in the Related Controls paragraph of this ECCN.).
    b. ``Medical, analytical, diagnostic, and food testing kits'' (as 
defined in the Related Definitions for this ECCN) that contain CWC 
Schedule 2 or 3 chemicals controlled by ECCN 1C350.b or .c in an amount 
not exceeding 300 grams per chemical. (For controls on other such test 
kits containing these and other controlled chemicals, see Note 2 in the 
Related Controls paragraph of this ECCN.)

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
Control(s): 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
Control(s): 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
Control(s): 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
Control(s): 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

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
Control(s): SS applies to entire entry. For licensing requirements (and 
possible License

[[Page 631]]

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
Control(s): 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

1C990 Fibrous and filamentary materials, not controlled by 1C010 or 
          1C210, for use in ``composite'' structures and with a specific 
          modulus of 3.18x10 \6\ m or greater and a specific tensile 
          strength of 7.62x10 \4\ 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

1C991 Vaccines, immunotoxins, medical products, diagnostic and food 
          testing kits, as follows (see List of Items controlled).

License Requirements

Reason for Control: CB, AT.

------------------------------------------------------------------------
               Control(s)                         Country Chart
------------------------------------------------------------------------
CB applies to 1C991.d..................  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: $ value.
Related Controls: Medical products containing ricin or saxitoxin, as 
follows, are controlled for CW reasons under ECCN 1C351:
    (1) Ricinus Communis AgglutininII (RCAII), 
also known as ricin D, or Ricinus Communis LectinIII 
(RCLIII);
    (2) Ricinus Communis LectinIV (RCLIV), also 
known as ricin E; or
    (3) Saxitoxin identified by C.A.S. 35523-89-8.
Related Definitions: For the purpose 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. For the purpose of this entry, ``medical products'' are: (1) 
pharmaceutical formulations designed for human administration in the 
treatment of medical conditions, (2) prepackaged for distribution as 
medical products, and (3) approved by the U.S. Food and Drug 
Administration to be marketed as medical products. For the purpose of 
this entry, ``diagnostic and food testing kits'' are specifically 
developed, packaged and marketed for diagnostic or public health 
purposes. Biological toxins in any other configuration, including bulk 
shipments, or for any other end-uses are controlled by ECCN 1C351. For 
the purpose of this entry, ``vaccine'' is defined as a medicinal (or 
veterinary) product in a pharmaceutical formulation, approved by the 
U.S. Food and Drug Administration or the U.S. Department of Agriculture 
to be marketed as a medical (or veterinary) product or for use in 
clinical trials, that is intended to stimulate a protective 
immunological response in humans or animals in order to prevent disease 
in those to whom or to which it is administered.
Items:
    a. Vaccines against items controlled by ECCN 1C351, 1C352, 1C353, or 
1C354;
    b. Immunotoxins containing items controlled by 1C351.d;
    c. Medical products containing botulinum toxins controlled by ECCN 
1C351.d.1;
    d. Medical products containing items controlled by ECCN 1C351.d, 
except botulinum toxins controlled by ECCN 1C351.d.1 and items 
controlled for CW reasons under 1C351.d.5 or .d.6; and
    e. Diagnostic and food testing kits containing items controlled by 
ECCN 1C351.d,

[[Page 632]]

except items controlled for CW reasons under ECCN 1C351.d.5 or .d.6.

1C992 Commercial charges and devices containing energetic materials, 
          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: Commercial charges and devices containing USML 
controlled energetic materials that exceed the quantities noted or that 
are not covered by this entry are controlled under 1C018.
    Related Definitions: (1) Items controlled by this entry 1C992 are 
those materials not subject to the licensing authority of the U.S. 
Department of State, Office of Defense Trade Controls (see 22 CFR part 
121) or controlled by ECCN 1C018. (2) For purposes of this entry, the 
term ``controlled materials'' means controlled energetic materials (see 
ECCNs 1C011, 1C111, 1C239 and 22 CFR 121.1, Category V). (3) The 
individual USML controlled energetic materials, even when compounded 
with other materials, remain subject to the export licensing authority 
of the Department of State when not incorporated into explosive devices 
or charges controlled by this entry. (4) Commercial prefabricated 
slurries and emulsions containing greater than 35% of USML controlled 
energetic materials are subject to the export licensing authority of the 
U.S. Department of State, Office of Defense Trade Control. (5) For 
purposes of this entry, the mass of aluminum powder, potassium 
perchlorate, and any of the substances listed in the note to the USML 
(see 22 CFR 121.12) (such as ammonium pictrate, black powder, etc.) 
contained in commercial explosive devices and in the charges are omitted 
when determining the total mass of controlled material.
    Items:
    a. 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 controlled materials;
    a.2. Have only a uniform shaped conical liner with an included angle 
of 90 degrees or less;
    a.3. Contain more than 0.010 kg but less than or equal to 0.090 kg 
of controlled materials; and
    a.4. Have a diameter not exceeding 4.5 inches;

    b. Shaped charges specially designed for oil well operations 
containing less than or equal to 0.010 kg of controlled materials;
    c. Detonation cord or shock tubes containing less than or equal to 
0.064 kg per meter (300 grains per foot) of controlled materials;
    d. Cartridge power devices, that contain less than or equal to 0.70 
kg of controlled materials in the deflagration material;
    e. Detonators (electric or nonelectric) and assemblies thereof, that 
contain less than or equal to 0.01 kg of controlled materials;
    f. Igniters, that contain less than or equal to 0.01 kg of 
controlled materials;
    g. Oil well cartridges, that contain less than or equal to 0.015 kg 
of controlled energetic materials;
    h. Commercial cast or pressed boosters containing less than or equal 
to 1.0 kg of controlled materials;
    i. Commercial prefabricated slurries and emulsions containing less 
than or equal to 10.0 kg and less than or equal to thirty-five percent 
by weight of USML controlled materials;
    j. Cutters and severing tools containing less than or equal to 3.5 
kg of controlled materials;
    k. Pyrotechnic devices when designed exclusively for commercial 
purposes (e.g., theatrical stages, motion picture special effects, and 
fireworks displays) and containing less than or equal to 3.0 kg of 
controlled materials; or
    l. Other commercial explosive devices and charges not controlled by 
1C992.a through .k containing less than or equal to 1.0 kg of controlled 
materials.

    Note: 1C992.l includes automotive safety devices; extinguishing 
systems; cartridges for riveting guns; explosive charges for 
agricultural, oil and gas operations, sporting goods, commercial mining, 
or public works purposes; and delay tubes used in the assembly of 
commercial explosive devices.

1C995 Mixtures not controlled by ECCN 1C350, ECCN 1C355 or ECCN 1C395 
          that contain chemicals controlled by ECCN 1C350 or ECCN 1C355 
          and medical, analytical, diagnostic, and food testing kits not 
          controlled by ECCN 1C350 or ECCN 1C395 that contain chemicals 
          controlled by ECCN 1C350.d, as follows (see List of Items 
          controlled).

                          License Requirements

Reason for Control: AT

 
                Control(s)                          Country Chart
 
 
 

    AT applies to entire entry. The Commerce Country Chart is not 
designed to determine licensing requirements for items controlled

[[Page 633]]

for AT reasons in 1C995. A license is required, for AT reasons, to 
export or reexport items controlled by 1C995 to Cuba, Iran, Iraq, Libya, 
North Korea, Sudan, and Syria. (See Part 742 of the EAR for additional 
information on the AT controls that apply to Iran, North Korea, Sudan, 
and Syria. See Part 746 of the EAR for additional information on the 
comprehensive trade sanctions that apply to Cuba, Iran, Iraq, and 
Libya.)
    License Requirement Notes:
    1. This ECCN does not control mixtures containing less than 0.5% of 
any single toxic or precursor chemical controlled by ECCN 1C350.b, .c, 
or .d or ECCN 1C355 as unavoidable by-products or impurities. Such 
mixtures are classified as EAR99.
    2 1C995.c does not control mixtures that contain precursor chemicals 
identified in 1C350.d in concentrations below the control levels for 
mixtures indicated in 1C350.d. 1C995.a.2.b controls such mixtures, 
unless they are consumer goods as described in License Requirements Note 
3 of this ECCN.
    3. This ECCN does not control mixtures when the controlled chemicals 
are normal ingredients in consumer goods packaged for retail sale for 
personal use. Such consumer goods are classified as EAR99.

                           License Exceptions

    LVS: N/A
    GBS: N/A
    CIV: N/A

                        List of Items Controlled

    Unit: $ value
    Related Controls: 1. ECCN 1C350 controls mixtures containing 30 
percent or higher concentrations of any single CWC Schedule 2 chemical 
identified in ECCN 1C350.b. ECCN 1C395 controls mixtures containing 
concentrations of more than 10 percent, but less than 30 percent, of any 
single CWC Schedule 2 chemical identified in ECCN 1C350.b. 2. ECCN 1C350 
controls mixtures containing chemicals identified in ECCN 1C350.c or .d 
that exceed the concentration levels indicated in 1C995.a.2. 3. ECCN 
1C355 controls mixtures containing chemicals identified in ECCN 1C355 
that exceed the concentration levels indicated in 1C995.b. 4. ECCN 1C395 
controls ``medical, analytical, diagnostic, and food testing kits'' (as 
defined in the Related Definitions paragraph of this ECCN) that contain 
CWC Schedule 2 or 3 chemicals listed in 1C350.b or .c. ECCN 1C350 
controls any such kits that contain CWC Schedule 1 chemicals listed in 
1C350.a or testing kits in which the amount of any single chemical 
listed in 1C350.b, .c, or .d exceeds 300 grams by weight.
    Related Definitions: For the purpose of this entry, ``medical, 
analytical, diagnostic, and food testing kits'' are pre-packaged 
materials of defined composition that are specifically developed, 
packaged and marketed for medical, analytical, diagnostic, or public 
health purposes. Replacement reagents for medical, analytical, 
diagnostic, and food testing kits described in 1C995.c are controlled by 
ECCN 1C350 if the reagents contain at least one of the precursor 
chemicals identified in that ECCN in concentrations equal to or greater 
than the control levels for mixtures indicated in 1C350.d.
    Items:
    a. Mixtures containing the following concentrations of precursor 
chemicals controlled by ECCN 1C350 (For controls on other mixtures 
containing these chemicals, see Notes 1 and 2 in the Related Controls 
paragraph of this ECCN.):
    a.1. Mixtures containing 10 percent or less, by weight, of any 
single CWC Schedule 2 chemical controlled by ECCN 1C350.b;
    a.2. Mixtures containing less than 30 percent, by weight, of:
    a.2.a. Any single CWC Schedule 3 chemical controlled by ECCN 
1C350.c; or
    a.2.b. Any single precursor chemical controlled by ECCN 1C350.d.
    b. Mixtures containing the following concentrations of toxic or 
precursor chemicals controlled by ECCN 1C355 (For controls on other 
mixtures containing these chemicals, see Note 3 in the Related Controls 
paragraph of this ECCN.):
    b.1. Mixtures containing the following concentrations of CWC 
Schedule 2 chemicals controlled by ECCN 1C355.a:
    b.1.a. Mixtures containing 1 percent or less, by weight, of any 
single CWC Schedule 2 chemical controlled by ECCN 1C355.a.1 (i.e., 
mixtures containing PFIB); or
    b.1.b. Mixtures containing 10 percent or less, by weight, of any 
single CWC Schedule 2 chemical controlled by 1C355.a.2;
    b.2. Mixtures containing less than 30 percent, by weight, of any 
single CWC Schedule 3 chemical controlled by ECCN 1C355.b.
    c. ``Medical, analytical, diagnostic, and food testing kits'' (as 
defined in the Related Definitions for this ECCN) that contain precursor 
chemicals controlled by ECCN 1C350.d in an amount not exceeding 300 
grams per chemical. (For controls on other such test kits containing 
these and other controlled chemicals, see Note 4 in the Related Controls 
paragraph of this ECCN.)

1C996 Hydraulic fluids containing synthetic hydrocarbon oils, having all 
          the following characteristics (see List of Items Controlled).

License Requirements
Reason for Control:AT

 
               Control(s)                         Country Chart
 
AT applies to entire entry.............  AT Column 1
 

License Exceptions
LVS: N/A

[[Page 634]]

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. A flash point exceeding 477 K (204[deg] C);
    b. A pour point at 239 K (-34[deg] C) or less;
    c. A viscosity index of 75 or more; and
    d. A thermal stability at 616 K (343[deg] C).

1C997 Ammonium Nitrate, Including Fertilizers and Fertilizer Blends 
          Containing More Than 15% by Weight Ammonium Nitrate, Except 
          Liquid Fertilizers (Containing Any Amount of Ammonium Nitrate) 
          or Dry Fertilizers Containing Less Than 15% by Weight Ammonium 
          Nitrate

License Requirements
Reason for Control: AT.


------------------------------------------------------------------------
                Control(s)                          Country chart
------------------------------------------------------------------------
AT applies to entire entry................  AT Column 1 and Iraq
------------------------------------------------------------------------


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.

1C999 Specific Materials, n.e.s., as Follows (See List of Items 
          Controlled).

License Requirements

Reason for Control: AT.
Control(s).
    Country Chart.
    AT applies to entire entry. A license is required for items 
controlled by this entry to North Korea for anti-terrorism reasons. The 
Commerce Country Chart is not designed to determine AT licensing 
requirements for this entry. See Sec.  742.19 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: See also 1C236.
Related Definitions: N/A.
Items:
    a. Hardened steel and tungsten carbide precision ball bearings (3mm 
or greater diameter);
    b. 304 and 316 stainless steel plate, n.e.s.;
    c. Monel plate;
    d. Tributyl phosphate;
    e. Nitric acid in concentrations of 20 weight percent or greater;
    f. Flourine;
    g. Alpha-emitting radionuclides, n.e.s.

1D001 ``Software'' specially designed or modified for the 
          ``development'', ``production'' or ``use'' of equipment 
          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       MT Column 1
 ``development'', ``production'', or
 ``use'' of items controlled by 1B001
 for MT reasons.
NP applies to ``software'' for the       NP Column 1
 ``development'', ``production'' or
 ``use'' of items controlled by 1B001
 for NP reasons.
AT applies to entire entry.............  AT Column 1
 

License Exceptions

CIV: Yes, except N/A for MT
TSR: Yes, except N/A for MT

List of Items Controlled

Unit: $ value
Related Controls: (1) See ECCNs 1E101 (``use'') and 1E102 
(``development'' and ``production'' ) for technology for items 
controlled by this entry. (2) Also see ECCNs 1D101 and 1D102.
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, AT

 
               Control(s)                         Country chart
 
NS applies to entire entry.............  NS Column 1
AT applies to entire entry.............  AT Column 1
 

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under Exceptions.

License Exceptions

CIV: Yes
TSR: Yes

List of Items Controlled

Unit: $ value
Related Controls: ``Software'' for items controlled by 1A102 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

[[Page 635]]

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

Reason for Control: NS, MT, AT, UN.

------------------------------------------------------------------------
                Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry...............  NS Column 1.
MT applies to ``software'' for the         MT Column 1.
 ``development'', ``production'', or
 ``use'' of items controlled by 1B018 for
 MT reasons.
AT applies to entire entry...............  AT Column 1.
UN applies to entire entry...............  Rwanda.
------------------------------------------------------------------------

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 ``Software'' specially designed or modified for the ``use'' of 
          commodities controlled by 1B101, 1B102, 1B115, 1B117, 1B118, 
          or 1B119.

License Requirements

Reason for Control: MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.
NP applies to ``software'' for the       NP Column 1.
 ``use'' of items controlled by 1B101.a.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: See ECCNs 1E101 (``use'') and 1E102 (``development'' 
and ``production'') for technology for items controlled by this entry.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

1D103 ``Software'' specially designed for reduced observables such as 
          radar reflectivity, ultraviolet/infrared signatures and 
          acoustic signatures, for applications usable in ``missiles'' 
          or 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

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: (1) This entry includes ``software'' specially 
designed for analysis of signature reduction. (2) For software that 
meets the definition of defense articles under 22 CFR 120.3 of the 
International Traffic in Arms Regulations (ITAR), see 22 CFR 121.16, 
Item 17-Category II of the (ITAR), which describes similar software that 
are under the jurisdiction of the Department of State, Directorate of 
Defense Trade Control.
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 1B201.

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: See ECCNs 1E201 (``use'') and 1E203 (``development'' 
and ``production'') for technology for items controlled by this entry.
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 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
Related Controls: N/A

[[Page 636]]

Related Definitions: N/A
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 or 1C990.

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

1D999 Specific Software, n.e.s., as Follows (See List of Items 
          Controlled).

License Requirements

Reason for Control: AT.
Control(s).
    Country Chart.
    AT applies to entire entry. A license is required for items 
controlled by this entry to North Korea for anti-terrorism reasons. The 
Commerce Country Chart is not designed to determine AT licensing 
requirements for this entry. See Sec.  742.19 of the EAR for additional 
information.
License Exceptions

CIV: N/A
TSR: N/A
List of Items Controlled

Unit: $ value.
Related Controls: See also 1B999.
Related Definitions: N/A.
Items:
    a. Software specially designed for industrial process control 
hardware/systems controlled by 1B999, n.e.s.;
    b. Software specially designed for equipment for the production of 
structural composites, fibers, prepregs and preforms controlled by 
1B999, n.e.s.

                              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, 1A005, 1A101, 1B, or 1C 
          (except 1C355, 1C980 to 1C984, 1C988, 1C990, 1C991, 1C992, and 
          1C995).

License Requirements

Reason for Control: NS, MT, NP, CB, AT

 
              Control(s)                          Country chart
 
NS applies to ``technology'' for items  NS Column 1
 controlled by 1A001.b and .c, 1A002,
 1A003, 1A005, 1B001 to 1B003, 1B018,
 1C001 to 1C010, or 1C018.
MT applies to ``technology'' 1 for      MT Column
 items controlled by 1A101, 1B001,
 1B101, 1B102, 1B115 to 1B119, 1C001,
 1C007, 1C011, 1C101, 1C102, 1C107,
 1C111, 1C116, 1C117, or 1C118 for MT
 reasons.
NP applies to ``technology'' for items  NP Column 1
 controlled by 1A002, 1B001, 1B101,
 1B201, 1B225 to 1B233, 1C002, 1C010,
 1C116, 1C202, 1C210, 1C216, 1C225 to
 1C240 for NP reasons.
CB applies to ``technology'' for items  CB Column 1
 controlled by 1C351, 1C352, 1C353, or
 1C354.
CB applies to ``technology'' for        CB Column 2
 materials controlled by 1C350.
AT applies to entire entry............  AT Column 1
 

    License Requirements Note: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions
CIV: N/A
TSR: Yes, except for the following:

    (1) Items controlled for MT reasons; or
    (2) Exports and reexports to destinations outside of Austria, 
Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, 
Italy, Japan, Luxembourg, the Netherlands, Portugal, Spain, Sweden, or 
the United Kingdom of ``technology'' for the ``development'' or 
``production'' of the following:
    (a) Items controlled by 1C001; or
    (b) Items controlled by 1A002.a which are composite structures or 
laminates having an organic ``matrix'' and being made from materials 
listed under 1C010.c or 1C010.d.

List of Items Controlled

Unit: N/A
Related Controls: (1) Also see ECCNs 1E101, 1E201, and 1E202. (2) 
``Technology'' for lithium isotope separation (see related ECCN 1B233) 
and ``technology'' for items described in ECCN 1C012 are subject to the 
export licensing authority of the Nuclear Regulatory Commission (see 10 
CFR part 110). (3) ``Technology'' for items described in ECCN 1A102 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.

1E002 Other ``technology'', as follows (see List of Items Controlled).


[[Page 637]]


License Requirements

Reason for Control: NS, MT, AT

 
               Control(s)                         Country Chart
 
NS applies to entire entry.............  NS Column 1
MT applies to 1E002.e..................  MT Column 1
AT applies to entire entry.............  AT Column 1
 

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

CIV: N/A
TSR: Yes, except for 1E002.e

List of Items Controlled

Unit: N/A.
Related Controls: See also 1E102, 1E202, and 1E101 for ``technology'' 
related to 1E002.e.
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 of 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 aluminum;
    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. Being any of the following:
    c.1.c.1. Zirconia with an average particle size equal to or less 
than 1 [mu]m and no more than 10% of the particles larger than 5 [mu]m;
    c.1.c.2. Other base materials with an average particle size equal to 
or less than 5 [mu]m and no more than 10% of the particles larger than 
10 [mu]m; or
    c.1.c.3. Having all of the following:
    c.1.c.3.a. Platelets with a length to thickness ratio exceeding 5;
    c.1.c.3.b. Whiskers with a length to diameter ratio exceeding 10 for 
diameters less than 2 [mu]m; and
    c.1.c.3.c. Continuous or chopped fibers less than 10 [mu]m in 
diameter;
    c.2. Non-``composite'' ceramic materials composed of the materials 
described in 1E002.c.1;
    Note: 1E002.c.2 does not control technology for the design or 
production of abrasives.
    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'', in accordance with the General Technology Note, 
          for the ``use'' of commodities and software controlled by 
          1A101, 1A102, 1B001, 1B101, 1B102, 1B115 to 1B119, 1C001, 
          1C007, 1C011, 1C101, 1C107, 1C111, 1C116, 1C117, 1C118, 1D001, 
          1D101, or 1D103.

License Requirements

Reason for Control: MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.
NP applies to ``technology'' for items   NP Column 1.
 controlled by 1B001, 1B101, 1C116,
 1D001, and 1D101 for NP reasons.
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: ``Technology'' for items controlled by 1A102 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.

1E102 ``Technology'' according to the General Technology Note for the 
          ``development'' of software controlled by 1D001, 1D101 or 
          1D103.

License Requirements

Reason for Control: MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.
NP applies to ``technology'' for items   NP Column 1.
 controlled by 1D001 and 1D101 for NP
 reasons.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

License Exceptions

CIV: N/A

[[Page 638]]

TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: This entry includes databases specially designed for 
analysis of signature reduction.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

1E103 ``Technical data'' (including processing conditions) and 
          procedures for the regulation of temperature, pressure or 
          atmosphere in autoclaves or hydroclaves, when used for the 
          ``production'' of ``composites'' or partially processed 
          ``composites'', usable for equipment or materials specified in 
          1C007, 1C102, 1C107, 1C116, 1C117, 1C118, 9A110, and 9C110.

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: See also 1E203
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

1E104 ``Technology'' for the ``production'' of pyrolytically derived 
          materials formed on a mold, mandrel or other substrate from 
          precursor gases which decompose in the 1,573 K (1,300 [deg]C) 
          to 3,173 K (2,900 [deg]C) temperature range at pressures of 
          130 Pa (1 mm Hg) to 20 kPa (150 mm Hg), including 
          ``technology'' for the composition of precursor gases, flow-
          rates and process control schedules and parameters.

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.

1E201 ``Technology'' according to the General Technology Note for the 
          ``use'' of items controlled by 1A002, 1A202, 1A225 to 1A227, 
          1B201, 1B225 to 1B232, 1B233.b, 1C002.a.2.c or .d, 1C010.a, 
          1C010.b, 1C010.e.1, 1C202, 1C210, 1C216, 1C225 to 1C240 or 
          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
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 goods controlled by 1A202 
          or 1A225 to 1A227.

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'' or ``production'' 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
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A

[[Page 639]]

Items: The list of items controlled is contained in the ECCN heading.

1E350 ``Technology'' according to the ``General Technology Note'' 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: The list of items controlled is contained in the ECCN heading.

1E351 ``Technology'' according to the ``General Technology Note'' 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     CB Column 1
 disposal of items controlled by 1C351,
 1C352, 1C353, or 1C354.
CB applies to ``technology'' for the     CB Column 2
 disposal of items controlled by 1C350.
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.

1E355 Technology for the production of Chemical Weapons Convention (CWC) 
          Schedule 2 and 3 chemicals, as follows (see List of Items 
          Controlled):
License Requirements
Reason for Control: CW, AT.

 
               Control(s)                         Country Chart
 
CW applies to entire entry. A license
 is required for CW reasons to CWC non-
 States Parties (destinations not
 listed in Supplement No. 2 to part
 745), except for Israel and Taiwan.
 See Sec.   742.18 of the EAR. The
 Commerce Country Chart is not designed
 to determine licensing requirements
 for items controlled for CW reasons.
AT applies to the entire entry.........  AT Column 1
 

License Exceptions
TSR: N/A.
CIV: N/A.
List of Items Controlled
    Unit: N/A.
    Related Controls: N/A.
    Related Definitions: N/A.
    Items:
    a. Technology for the production of the following CWC Schedule 2 
toxic chemicals:
    a.1. PFIB: 1,1,3,3,3-Pentafluoro-2-(trifluoromethyl)-1-propene (382-
21-8);
    a.2. [Reserved]
    b. Technology for the production of the following CWC Schedule 3 
toxic chemicals CWC:
    b.1. Phosgene: Carbonyl dichloride (75-44-5);
    b.2. Cyanogen chloride (506-77-4);
    b.3. Hydrogen cyanide (74-90-8).


1E994 ``Technology'' for the ``development'', ``production'', or ``use'' 
          of fibrous and filamentary materials controlled by 1C990.

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 controlled by this 
          CCL Category or in any other category in the CCL are 
          designated by the number EAR99.

                    Category 2--Materials Processing

    Note: For quiet running bearings, see the U.S. Munitions List.

[[Page 640]]

                  A. Systems, Equipment and Components

2A001 Anti-friction bearings and bearing systems, as follows, (see List 
          of Items Controlled) 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: $3000
GBS: Yes, for 2A001.a and 2A001.b
CIV: Yes, for 2A001.a and 2A001.b

List of Items Controlled

Unit: $ value.
Related Controls: (1) See also 2A991. (2) 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.)
Related Definitions: Annular Bearing Engineers Committee (ABEC).
Items:
    Note: 2A001 does not control balls with tolerance specified by the 
manufacturer in accordance with ISO 3290 as grade 5 or worse.
    a. Ball bearings and solid roller bearings having all tolerances 
specified by the manufacturer in accordance with ISO 492 Tolerance Class 
4 (or ANSI/ABMA Std 20 Tolerance Class ABEC-7 or RBEC-7, or other 
national equivalents), or better, and having both ringsand rolling 
elements (ISO 5593) made from monel or beryllium;
    Note: 2A001.a does not control tapered roller bearings.
    b. Other ball bearings and solid roller bearings having all 
tolerances specified by the manufacturer in accordance with ISO 492 
Tolerance Class 2 (or ANSI/ABMA Std 20 Tolerance Class ABEC-9 or RBEC-9, 
or other national equivalents), or better;
    Note: 2A001.b does not control tapered roller bearings.
    c. Active magnetic bearing systems using any of the following:
    c.1. Materials with flux densities of 2.0 T or greater and yield 
strengths greater than 414 MPa;
    c.2. All-electromagnetic 3D homopolar bias designs for actuators; or
    c.3. High temperature (450 K (177oC) and above) position sensors.

2A225 Crucibles made of materials resistant to liquid actinide metals, 
          as follows (see List of Items Controlled).

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: See ECCNs 2E001 (``development''), 2E002 
(``production''), and 2E201 (``use'') for technology for items 
controlled under this entry.
Related Definitions: N/A
Items:

    a. Crucibles having both of the following characteristics:
    a.1. A volume of between 150 cm 3 and 8,000 cm 
3; and
    a.2. Made of or coated with any of the following materials, having a 
purity of 98% or greater by weight:
    a.2.a. Calcium fluoride (CaF2);
    a.2.b. Calcium zirconate (metazirconate) (CaZrO3);
    a.2.c. Cerium sulphide (Ce2S3);
    a.2.d. Erbium oxide (erbia) (Er2O3);
    a.2.e. Hafnium oxide (hafnia) (HfO2);
    a.2.f. Magnesium oxide (MgO);
    a.2.g. Nitrided niobium-titanium-tungsten alloy (approximately 50% 
Nb, 30% Ti, 20% W);
    a.2.h. Yttrium oxide (yttria) (Y2O3); or
    a.2.i. Zirconium oxide (zirconia) (ZrO2);
    b. Crucibles having both of the following characteristics:
    b.1. A volume of between 50 cm3 and 2,000 cm3; 
and
    b.2. Made of or lined with tantalum, having a purity of 99.9% or 
greater by weight;
    c. Crucibles having all of the following characteristics:
    c.1. A volume of between 50 cm3 and 2,000 cm3;
    c.2. Made of or lined with tantalum, having a purity of 98% or 
greater by weight; and
    c.3. Coated with tantalum carbide, nitride, boride, or any 
combination thereof.

2A226 Valves having all of the following characteristics (see List of 
          Items Controlled).

License Requirements

Reason for Control: NP, CB, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NP applies to entire entry.............  NP Column 1.
CB applies to valves that also meet or   CB Column 3.
 exceed the technical parameters in
 2B350.g.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

License Exceptions

LVS: N/A

[[Page 641]]

GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: (1) See ECCNs 2E001 (``development''), 2E002 
(``production''), and 2E201 (``use'') for technology for items 
controlled under this entry. (2) Also see ECCNs 2A292 and 2B350.g. (3) 
Valves specially designed or prepared for certain nuclear uses are 
subject to the export licensing authority of the Nuclear Regulatory 
Commission (see 10 CFR part 110).
Related Definitions: For valves with different inlet and outlet 
diameters, the ``nominal size'' in 2A226 refers to the smallest 
diameter.
Items:

    a. A ``nominal size'' of 5 mm or greater;
    b. Having a bellows seal; and
    c. Wholly made of or lined with aluminum, aluminum alloy, nickel, or 
nickel alloy containing more than 60% nickel by weight.

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: (1) See ECCN 2D290 for software for items controlled 
under this entry. (2) See ECCNs 2E001 (``development''), 2E002 
(``production''), and 2E290 (``use'') for technology for items 
controlled under this entry. (3) Also see ECCN 2A291. (4) Certain 
nuclear equipment specially designed or prepared for use in nuclear 
plants is 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, except items controlled by 2A290, 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 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: Equipment in number; parts and accessories in $ value
Related Controls: (1) See ECCN 2D290 for software for items controlled 
under this entry. (2) See ECCNs 2E001 (``development''), 2E002 
(``production''), and 2E290 (``use'') for technology for items 
controlled under this entry. (3) Also see ECCN 2A290. (4) Certain 
equipment specially designed or prepared for use in a nuclear reactor or 
in nuclear material handling is subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110). 
(5) Nuclear radiation detection and measurement devices specially 
designed or modified for military purposes are subject to the export 
licensing authority of the Department of State (see 22 CFR parts 120 
through 130).
Related Definitions: N/A
Items:

    a. Process control systems intended for use with nuclear reactors.
    b. Simulators specially designed for ``nuclear reactors''.
    c. Casks that are specially designed for transportation of high-
level radioactive material and that weigh more than 1,000 kg.
    d. Commodities, parts and accessories specially designed or prepared 
for use with nuclear plants (e.g., snubbers, airlocks, pumps, reactor 
fuel charging and discharging equipment, containment equipment such as 
hydrogen recombiner and penetration seals, and reactor and fuel 
inspection equipment, including ultrasonic or eddy current test 
equipment).
    e. Radiation detectors and monitors specially designed for detecting 
or measuring ``special nuclear material'' (as defined in 10 CFR part 
110) or for nuclear reactors.
    Technical Notes: 1. 2A291.e does not control neutron flux detectors 
and monitors. These are subject to the export licens ing authority of 
the Nuclear Regulatory Commission, pursuant to 10 CFR part 110.
    2. 2A291.e does not control general purpose radiation detection 
equipment, such as geiger counters and dosimeters. These items are 
controlled by ECCN 1A999.

2A292 Piping, fittings and valves made of, or lined with, stainless 
          steel, copper-nickel

[[Page 642]]

          alloy or other alloy steel containing 10% or more nickel and/
          or chromium.

License Requirements

Reason for Control: NP, CB, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NP applies to entire entry.............  NP Column 2.
CB applies to valves that meet or        CB Column 3.
 exceed the technical parameters
 described in 2B350.g.
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: (1) See ECCN 2D290 for software for items controlled 
          under this entry. (2) See ECCNs 2E001 (``development''), 2E002 
          (``production''), and 2E290 (``use'') for technology for items 
          controlled under this entry. (3) Also see ECCN 2A226. (4) 
          Piping, fittings, and valves specially designed or prepared 
          for certain nuclear uses are 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 in.) 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 200 mm (8 in.) or more inside 
diameter; and
    b.2. Rated at 10.3 MPa (1,500 psi) or more.

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 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: Equipment in number
Related Controls: (1) See ECCN 2D290 for software for items controlled 
under this entry. (2) See ECCNs 2E001 (``development''), 2E002 
(``production''), and 2E290 (``use'') for technology for items 
controlled under this entry. (3) Pumps for use in liquid-metal-cooled 
reactors 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.

2A983 Explosives or detonator detection equipment, both bulk and trace 
          based, consisting of an automated device, or combination of 
          devices for automated decision making to detect the presence 
          of different types of explosives, explosive residue, or 
          detonators; and parts and components, n.e.s.

License Requirements

Reason for Control: RS, AT

 
               Control(s)                          Country chart
 
RS applies to entire entry                RS 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: Equipment in number
Related Controls: N/A
Related Definitions: (1) For the purpose of this entry, automated 
decision making is the ability of the equipment to detect explosives or 
detonators at the design or operator-selected level of sensitivity and 
provide an automated alarm when explosives or detonators at or above the 
sensitivity level are detected. This entry does not control equipment 
that depends on operator interpretation of indicators such as inorganic/
organic color mapping of the items(s) being scanned.
    (2) Explosives and detonators include commercial charges and devices 
controlled by 1C018 and 1C992 and energetic materials controlled by 
ECCNs 1C011, 1C111, 1C239 and 22 CFR 121.1 Category V.
Items:

    Note: Explosives or detonation detection equipment in 2A983 includes 
equipment for screening people, documents, baggage, other personal 
effects, cargo and/or mail.

    a. Explosives detection equipment for automated decision making to 
detect and identify bulk explosives utilizing, but not limited to, x-ray 
(e.g., computed tomography, dual energy, or coherent scattering), 
nuclear (e.g., thermal neutron analysis, pulse fast neutron analysis, 
pulse fast neutron transmission spectroscopy, and gamma resonance 
absorption), or electromagnetic techniques (e.g., quadropole resonance 
and dielectrometry).
    b. Explosives detection equipment for automated decision making to 
detect and

[[Page 643]]

identify the presence of explosive residues utilizing, but not limited 
to, explosives trace detection techniques (e.g., chemiluminesence, ion 
mobility spectroscopy and mass spectroscopy).
    c. Detonator detection equipment for automated decision making to 
detect and identify initiation devices (e.g. detonators, blasting caps) 
utilizing, but not limited to, x-ray (e.g. dual energy or computed 
tomography) or electromagnetic techniques.

2A991 Bearings and bearing systems not controlled by 2A001.

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: (1) This entry does not control balls with tolerance 
specified by the manufacturer in accordance with ISO 3290 as grade 5 or 
worse. (2) 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)
Related Definitions: (1) (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. (2) Annular Bearing Engineers 
Committee (ABEC); American National Standards Institute (ANSI); Anti-
Friction Bearing Manufacturers Association (AFBMA)
Items: a. Ball bearings or Solid ball 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.

    a.1. Manufactured for use at operating temperatures above 573 K 
(300[deg] C) either by using special materials or by special heat 
treatment; or
    a.2. 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.
    b. 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.
    b.1. 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.2. Manufactured for use at operating temperatures below 219 K (-
54[deg] C) or above 423 K (150[deg] C).
    c. 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.
    d. Active magnetic bearing systems.
    e. 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).

2A994 Portable electric generators and specially designed parts.

License Requirements

Reason for Control: AT.
Control(s).
    AT applies to entire entry. A license is required for items 
controlled by this entry to Cuba, Iran, Libya, and North Korea for anti-
terrorism reasons. The Commerce Country Chart is not designed to 
determine licensing requirements for this entry. See part 746 of the EAR 
for additional information on Cuba, Iran, and Libya. See Sec.  742.19 of 
the EAR for additional information on North Korea.

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

    Notes for Category 2B: 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. 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''.
    3. For the purposes of 2B001 to 2B009 a ``tilting spindle'' is 
counted as a rotary axis.
    4. Guaranteed positioning accuracy levels instead of individual test 
protocols may be

[[Page 644]]

used for each machine tool model using the agreed ISO test procedure.
    5. The positioning accuracy of ``numerically controlled'' machine 
tools is to be determined and presented in accordance with ISO 230/2 
(1988).

2A999 Specific Processing Equipment, n.e.s., as Follows (See List of 
          Items Controlled).

License Requirements

Reason for Control: AT.
Control(s).
Country Chart.
    AT applies to entire entry. A license is required for items 
controlled by this entry to North Korea for anti-terrorism reasons. The 
Commerce Country Chart is not designed to determine AT licensing 
requirements for this entry. See Sec.  742.19 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: See also 2A226, 2B350.
Related Definitions: N/A.
Items:
    a. Bellows sealed valves;
    b. Reserved.

              B. Test, Inspection and Production Equipment

    Technical Notes for 2B001 to 2B009:
    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. Rotary axes need not rotate over 360o. 
A rotary axis can be driven by a linear device (e.g., a screw or a rack-
and-pinion).
    2. The number of axes which can be co-ordinated simultaneously for 
``contouring control'' is the number of axes which affect relative 
movement between any one workpiece and a tool, cutting head or grinding 
wheel which is cutting or removing material from the workpiece. This 
does not include any additional axes which affect other relative 
movement within the machine. Such axes include:
    2.a. Wheel-dressing systems in grinding machines;
    2.b. Parallel rotary axes designed for mounting of separate 
workpieces;
    2.c. Co-linear rotary axes designed for manipulating the same 
workpiece by holding it in a chuck from different ends.
    3. Axis nomenclature shall be in accordance with International 
Standard ISO 841, ``Numerical Control Machines--Axis and Motion 
Nomenclature''.
    4. A''tilting spindle'' is counted as a rotary axis.
    5. Guaranteed ``positioning accuracy'' levels instead of individual 
test protocols may be used for each machine tool model using the agreed 
ISO test procedure.
    6. The positioning accuracy of ``numerically controlled'' machine 
tools is to be determined and presented in accordance with ISO 230/2 
(1988).

2B001 Machine tools (see List of Items Controlled) and any combination 
          thereof, for removing (or cutting) metals, ceramics or 
          ``composites'', which, according to the manufacturer's 
          technical specification, can be equipped with electronic 
          devices for ``numerical control''. 

License Requirements
Reason for Control: NS, NP, AT

 
               Control(s)                         Country Chart
 
NS applies to entire entry.............  NS Column 2
NP applies to 2B001.a,b,c, and d,        NP Column 1
 EXCEPT:(1) turning machines under
 2B001.a with a capacity equal to or
 less than 35 mm diameter; (2) bar
 machines (Swissturn), limited to
 machining only bar feed through, if
 maximum bar diameter is equal to or
 less than 42 mm and there is no
 capability of mounting chucks.
 (Machines may have drilling and/or
 milling capabilities for machining
 parts with diameters less than 42 mm);
 or (3) milling machines under 2B001.b.
 with x-axis travel greater than two
 meters and overall ``positioning
 accuracy'' on the x-axis more (worse)
 than 0.030 mm.
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) See ECCNs 2D001 and 2D002 for software for items 
controlled under this entry. (2) See ECCNs 2E001 (``development''), 
2E002 (``production''), and 2E201 (``use'') for technology for items 
controlled under this entry. (3) Also see ECCNs 2B201, 2B290, and 2B991.
Related Definitions: N/A.
Items:
    Note 1: 2B001 does not control special purpose machine tools limited 
to the manufacture of gears. For such machines, see 2B003.
    Note 2: 2B001 does not control special purpose machine tools limited 
to the manufacture of any of the following parts:
    a. Crank shafts or cam shafts;
    b. Tools or cutters;
    c. Extruder worms;

[[Page 645]]

    d. Engraved or faceted jewellery parts.
    a. Machine tools for turning, having all of the following 
characteristics:
    a.1. Positioning accuracy with ``all compensations available'' of 
less (better) than 6 [mu]m along any linear axis; and
    a.2. Two or more axes which can be coordinated simultaneously for 
``contouring control'';
    Note: 2B001.a does not control turning machines specially designed 
for the production of contact lenses.
    b. Machine tools for milling, having any of the following 
characteristics:
    b.1. Having all of the following:
    b.1.a. Positioning accuracy with ``all compensations available'' of 
less (better) than 6 [mu]m along any linear axis; and
    b.1.b. Three linear axes plus one rotary axis which can be 
coordinated simultaneously for ``contouring control'';
    b.2. Five or more axes which can be coordinated simultaneously for 
``contouring control'';
    b.3. A positioning accuracy for jig boring machines, with ``all 
compensations available'', of less (better) than 4 [mu]m along any 
linear axis; or
    b.4. Fly cutting machines, having all of the following 
characteristics:
    b.4.a. Spindle ``run-out'' and ``camming'' less (better) than 0.0004 
mm TIR; and
    b.4.b. Angular deviation of slide movement (yaw, pitch and roll) 
less (better) than 2 seconds of arc, TIR, over 300 mm of travel.
    c. Machine tools for grinding, having any of the following 
characteristics: c.1. Having all of the following:
    c.1.a. Positioning accuracy with ``all compensations available'' of 
less (better) than 4 [mu]m along any linear axis; and
    c.1.b. Three or more axes which can be coordinated simultaneously 
for ``contouring control''; or
    c.2. Five or more axes which can be coordinated simultaneously for 
``contouring control'';
    Notes: 2B001.c does not control grinding machines, as follows:
    1. Cylindrical external, internal, and external-internal grinding 
machines having all the following characteristics:
    a. Limited to cylindrical grinding; and
    b. Limited to a maximum workpiece capacity of 150 mm outside 
diameter or length.
    2. Machines designed specifically as jig grinders having any of 
following characteristics:
    a. The c-axis is used to maintain the grinding wheel normal to the 
work surface; or
    b. The a-axis is configured to grind barrel cams.
    3. Surface grinders.
    d. Electrical discharge machines (EDM) of the non-wire type which 
have two or more rotary axes which can be coordinated simultaneously for 
``contouring control'';
    e. Machine tools for removing metals, ceramics or ``composites'' 
having all of the following characteristics:
    e.1. Removing material by means of any of the following:
    e.1.a. Water or other liquid jets, including those employing 
abrasive additives;
    e.1.b. Electron beam; or
    e.1.c. ``Laser'' beam; and
    e.2. Having two or more rotary axes which:
    e.2.a. Can be coordinated simultaneously for ``contouring control''; 
and
    e.2.b. Have a positioning accuracy of less (better) than 0.003[deg];
    f. Deep-hole-drilling machines and turning machines modified for 
deep-hole-drilling, having a maximum depth-of-bore capability exceeding 
5,000 mm and specially designed components therefor.

2B003 ``Numerically controlled'' or manual machine tools, and specially 
          designed components, controls and accessories therefor, 
          specially designed for the shaving, finishing, grinding or 
          honing of hardened (Rc = 40 or more) 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).

License Requirements

Reason for Control: NS, AT

 
               Control(s)                          County Chart
 
NS applies to entire entry.............  NS Column 2
AT applies to entire entry.............  AT Column 1
 

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

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: See also 2B993
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

2B004 Hot ``isostatic presses'', having all of the characteristics 
          described in the List of Items Controlled, 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.............  MT Column 1.

[[Page 646]]

 
NP applies to entire entry, except       NP Column 1.
 2B004.b.3 and presses with maximum
 working pressures below 69 MPa.
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) See ECCN 2D001 for software for items controlled 
under this entry. (2) See ECCNs 2E001 (``development''), 2E002 
(``production''), and 2E101 (``use'') for technology for items 
controlled under this entry. (3) For specially designed dies, molds and 
tooling, see ECCNs 1B003 and 9B009 and ML18 (22 CFR part 121). (4) For 
additional controls on dies, molds and tooling, see ECCNs 1B101.d, 2B104 
and 2B204. (5) Also see ECCN 2B117.
Related Definitions: N/A
Items:
    a. A controlled thermal environment within the closed cavity and 
possessing a chamber cavity with an inside diameter of 406 mm or more; 
and
    b. Any of the following:
    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 the deposition, processing and 
          in-process control of inorganic overlays, coatings and surface 
          modifications, as follows, for non-electronic substrates, by 
          processes shown in the Table and associated Notes following 
          2E003.f, 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: (1) This entry does not control chemical vapor 
deposition, cathodic arc, sputter deposition, ion plating or ion 
implantation equipment specially designed for cutting or machining 
tools. (2) Vapor deposition equipment for the production of filamentary 
materials are controlled by 1B001 or 1B101. (3) Chemical Vapor 
Deposition furnaces designed or modified for densification of carbon-
carbon composites are controlled by 2B104.
Related Definitions: N/A
Items:
    a. ``Stored program controlled'' chemical vapor deposition (CVD) 
production equipment having all of the following:
    a.1. Process modified for one of the following:
    a.1.a. Pulsating CVD;
    a.1.b. Controlled nucleation thermal deposition (CNTD); or
    a.1.c. Plasma enhanced or plasma assisted CVD; and
    a.2. Any 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 (EB-
PVD) production equipment incorporating power systems rated for over 80 
kW, having any of the following:
    c.1. A liquid pool level ``laser'' control system which regulates 
precisely the ingots feed rate; or
    c.2. 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 any of the following characteristics:
    d.1. Operating at reduced pressure controlled atmosphere (equal 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
    2. Incorporating in situ coating thickness control;
    e. ``Stored program controlled'' sputter deposition production 
equipment capable of current densities of 0.1 mA/mm \2\ or higher at a 
deposition rate 15 [mu]m/h or more;
    f. ``Stored program controlled'' cathodic arc deposition equipment 
incorporating a

[[Page 647]]

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 any of the following:
    g.1. Coating thickness on the substrate and rate control; or
    g.2. Optical characteristics.

2B006 Dimensional inspection or measuring systems and equipment, as 
          follows (see List of Items Controlled).

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 and .b...........  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: (1) See ECCNs 2D001 and 2D002 for ``software'' for 
items controlled under this entry. (2) See ECCNs 2E001 
(``development''), 2E002 (``production''), and 2E201 (``use'') for 
technology for items controlled under this entry. (3) Also see ECCNs 
2B206 and 2B996.
Related Definitions: N/A
Items:
    a. Computer controlled, ``numerically controlled'' or ``stored 
program controlled'' co-ordinate measuring machines (CMM), having a 
three dimensional length (volumetric) maximum permissible error of 
indication (MPE E) at any point within the operating range of 
the machine (i.e., within the length of axes) equal to or less (better) 
than (1.7 + L/1,000) [mu]m (L is the measured length in mm) tested 
according to ISO 10360-2 (2001);
    b. Linear and angular displacement measuring instruments, as 
follows:
    b.1. Linear displacement measuring instruments having any of the 
following:
    Technical Note: For the purpose of 2B006.b.1 ``linear displacement'' 
means the change of distance between the measuring probe and the 
measured object.
    b.1.a. Non-contact type measuring systems with a ``resolution'' 
equal to or less (better) than 0.2 [mu]m within a measuring range up to 
0.2 mm;
    b.1.b. Linear voltage differential transformer systems having all 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 all of the following: 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, all of the following:
    b.1.c.2.a. A ``resolution'' over their full scale of 0.1 [mu]m or 
less (better); and
    b.1.c.2.b. A ``measurement uncertainty'' equal to or less (better) 
than (0.2 + L/2,000) [mu]m (L is the measured length in mm);
    Note: 2B006.b.1 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.
    b.2. Angular displacement 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. Equipment for measuring surface irregularities, by measuring 
optical scatter as a function of angle, with a sensitivity of 0.5 nm or 
less (better).
    Note: Machine tools that can be used as measuring machines are 
controlled by this entry if they meet or exceed the criteria specified 
for the machine tool function or the measuring machine function.

2B007 ``Robots'' having any of the following characteristics described 
          in the List of Items Controlled 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 2B007.c and    NP Column 1.
 to specially designed controllers and
 ``end-effectors'' therefor.
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: (1) See ECCN 2D001 for ``software'' for items 
controlled under this entry. (2) See ECCNs 2E001 (``development''), 
2E002 (``production''), and 2E201 (``use'') for technology for items 
controlled under this entry. (3) Also see ECCNs 2B207, 2B225 and 2B997.
Related Definitions: N/A
Items:


[[Page 648]]


    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;
    Technical 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).
    b. Specially designed to comply with national safety standards 
applicable to explosive munitions environments;
    c. Specially designed or rated as radiation-hardened to withstand a 
total radiation dose greater than 5 x 103 Gy (silicon) 
without operational degradation; or
    Technical Note: The term Gy (silicon) refers to the energy in Joules 
per kilogram absorbed by an unshielded silicon sample when exposed to 
ionizing radiation.
    d. Specially designed to operate at altitudes exceeding 30,000m.

2B008 Assemblies or Units, Specially Designed for Machine Tools, or 
          Dimensional Inspection or Measuring Systems and Equipment, as 
          Follows (See List of Items Controlled)

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: See also 2B998.
Related Definition: N/A.
Items:
    a. Linear position feedback units (e.g., inductive type devices, 
graduated scales, infrared systems or ``laser'' systems) having an 
overall ``accuracy'' less (better) than (800+(600xLx10-\3\)) nm (L 
equals the effective length in mm);
    N.B.: For ``laser'' systems see also Note to 2B006.b.1.
    b. Rotary position feedback units (e.g., inductive type devices, 
graduated scales, infrared systems or ``laser'' systems) having an 
``accuracy'' less (better) than 0.00025\o\;
    N.B.: For ``laser'' systems see also Note to 2B006.b.1.
    c. ``Compound rotary tables'' and ``tilting spindles'', capable of 
upgrading, according to the manufacturer's specifications, machine tools 
to or above the levels controlled by 2B001 to 2B009.

2B009 Spin-forming machines and flow-forming machines, which, according 
          to the manufacturer's technical specifications, can be 
          equipped with ``numerical control'' units or a computer 
          control and having all of the following characteristics (see 
          List of Items Controlled).

License Requirements

Reason for Control: NS, MT, NP, AT

 
               Control(s)                         Country chart
 
NS applies to entire entry.............  NS Column 2
MT applies to: spin-forming machines     MT Column 1
 combining the functions of spin-
 forming and flow-forming; and flow-
 forming machines that meet or exceed
 the parameters of 2B009.a and 2B109.
NP applies to flow-forming machines,     NP Column 1
 and spin-forming machines capable of
 flow-forming functions, that meet or
 exceed the parameters of 2B209.
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) See ECCN 2D001 for ``software'' for items 
controlled under this entry. (2) See ECCNs 2E001 (``development''), 
2E002 (``production''), and 2E101 (``use'') for technology for items 
controlled under this entry. (3) Also see ECCNs 2B109 and 2B209 for 
additional flow-forming machines for MT and NP reasons.
Related Definitions: Machines combining the function of spin-forming and 
flow-forming are for the purpose of 2B009 regarded as flow-forming 
machines.
Items: a. Two or more controlled axes of which at least two can be 
coordinated simultaneously for ``contouring control''; and
    b. A roller force more than 60 kN.
    Technical Note: Machines combining the function of spin-forming and 
flow-forming are for the purpose of 2B009 regarded as flow-forming 
machines.

2B018 Equipment on the International Munitions List.

License Requirements

Reason for Control: NS, MT, RS, AT, UN.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.

[[Page 649]]

 
MT applies to specialized machinery,     MT Column 1.
 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.
RS applies to entire entry.............  RS Column 2.
AT applies to entire entry.............  AT Column 1.
UN applies to entire entry.............  Rwanda.
------------------------------------------------------------------------

License Exceptions

LVS: $3000, except N/A for Rwanda
GBS: Yes for Advisory Note in this entry to 2B018, except N/A for Rwanda
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: 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 ``Isostatic presses'', other than those controlled by 2B004, 
          having all of the following characteristics (see List of Items 
          Controlled). 

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

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: (1) See ECCN 2D101 for ``software'' for items 
controlled under this entry. (2) See ECCNs 2E001 (``development''), 
2E002 (``production''), and 2E101 (``use'') for technology for items 
controlled under this entry. (3) Also see ECCNs 2B004, 2B204, and 2B117.
Related Definitions: 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 chamber, depending on which of the two 
chambers is located inside the other.
Items:

    a. Maximum working pressure of 69 MPa or greater;
    b. Designed to achieve and maintain a controlled thermal environment 
of 873 K (600 [deg]C) or greater; and

[[Page 650]]

    c. Possessing a chamber cavity with an inside diameter of 254 mm or 
greater.

2B105 Chemical vapor deposition (CVD) furnaces, other than those 
controlled by 2B005.a, designed or modified for the densification of 
carbon-carbon 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
LVS: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Equipment in number
Related Controls: (1) See ECCN 2D101 for ``software'' for items 
controlled under this entry. (2) See ECCNs 2E001 (``development''), 
2E002 (``production''), and 2E101 (``use'') for technology for items 
controlled under this entry. (3) Also see ECCNs 2B005 and 2B117.
Related Definitions: N/A
Items: The list of items controlled in contained in the ECCN heading.

2B109 Flow-forming machines, other than those controlled by 2B009, 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 items controlled by this   NP Column 1.
 entry that meet or exceed the
 technical parameters in 2B209.
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) See ECCN 2D101 for ``software'' for items 
controlled under this entry. (2) See ECCNs 2E001 (``development''), 
2E002 (``production''), and 2E101 (``use'') for technology for items 
controlled under this entry. (3) Also see ECCNs 2B009 and 2B209.
Related Definitions: N/A
Items:

    a. Flow-forming machines having all of the following:
    a.1. According to the manufacturer's technical specification, can be 
equipped with ``numerical control'' units or a computer control, even 
when not equipped with such units at delivery; and
    a.2. Have more than two axes which can be coordinated simultaneously 
for ``contouring control.''
    b. Specially designed components for flow-forming machines 
controlled in 2B009 or 2B109.a.
    Technical Notes: 1. Machines combining the function of spin-forming 
and flow-forming are for the purpose of 2B109 regarded as flow-forming 
machines.
    2. 2B109 does not control machines that are not usable in the 
``production'' of propulsion components and equipment (e.g. motor cases) 
for systems in 9A005, 9A007.a, or 9A105.a.

2B116 Vibration test systems, equipment and components therefor, as 
          follows (see List of Items Controlled).

License Requirements

Reason for Control: MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.
NP applies to electrodynamic vibration   NP Column 1.
 test systems in 2B116.a and to all
 items in 2B116.b, .c, and .d.
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) See ECCN 2D101 for ``software'' for items 
controlled under this entry. (2) See ECCNs 2E001 (``development''), 
2E002 (``production''), and 2E101 (``use'') for technology for items 
controlled under this entry. (3) Also see ECCN 9B990.
Related Definitions: Vibration test systems incorporating a digital 
controller are those systems, 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;
    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

[[Page 651]]

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.
    Technical Note: `bare table' means a flat table, or surface, with no 
fixture or fitting.

2B117 Equipment and process controls, other than those controlled by 
2B004, 2B005.a, 2B104 or 2B105, designed or modified for the 
densification and pyrolysis of structural composite rocket nozzles and 
reentry vehicle nose tips.

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: (1) See ECCN 2D101 for ``software'' for items 
controlled under this entry. (2) See ECCNs 2E001 (``development''), 
2E002 (``production''), and 2E101 (``use'') for technology for items 
controlled under this entry. (3) Also see ECCN s 2B004, 2B005, 2B104, 
2B105, and 2B204.
Related Definitions: N/A
Items: The list of items controlled in contained in the ECCN heading.

2B119 Balancing machines and related equipment, as follows (see List of 
          Items Controlled).

License Requirements

Reason for Control: MT, AT

 
               Control(s)                         Country chart
 
MT applies to entire entry.............  MT Column 1
AT applies to entir      y.............  AT Column 1
 


License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: See also 2B219, 7B101.
Related Definitions: N/A
Items:
    a. Balancing machines having all the following characteristics:
    a.1. Not capable of balancing rotors/assemblies having a mass 
greater than 3 kg;
    a.2. Capable of balancing rotors/assemblies at speeds greater than 
12,500 rpm;
    a.3. Capable of correcting unbalance in two planes or more; and
    a.4. Capable of balancing to a residual specific unbalance of 0.2 g 
mm per kg of rotor mass.
    Note: 2B119.a. does not control balancing machines designed or 
modified for dental or other medical equipment.
    b. Indicator heads designed or modified for use with machines 
specified in 2B119.a.
    Note: Indicator heads are sometimes known as balancing 
instrumentation.

2B120 Motion simulators or rate tables (equipment capable of simulating 
          motion), having all of the following characteristics (see List 
          of Items Controlled).

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: (1) Rate tables not controlled by 2B120 and providing 
the characteristics of a positioning table are to be evaluated according 
to 2B121. (2) Equipment that has the characteristics specified in 2B121, 
which also meets the characteristics of 2B120 will be treated as 
equipment specified in 2B120. (3) See also 2B008, 2B121, 7B101 and 
7B994.
Related Definitions: N/A
Items:
    a. Two axes or more;
    b. Slip rigs capable of transmitting electrical power and/or signal 
information; and
    c. Having any of the following characteristics:
    c.1. For any single axis having all of the following:
    c.1.a. Capable of rates of rotation of 400 degrees/s or more, or 30 
degrees/s or less, and
    c.1.b. A rate resolution equal to or less than 6 degrees/s and an 
accuracy equal to or less than 0.6 degrees/s; or
    c.2. Having a worst-case rate stability equal to or better (less) 
than plus or minus 0.05% averaged over 10 degrees or more; or
    c.3. A positioning accuracy equal to or better than 5 arc-second.

[[Page 652]]

    Note: 2B120 does not control rotary tables designed or modified for 
machine tools or for medical equipment. For controls on machine tool 
rotary tables see 2B008.
2B121 Positioning tables (equipment capable of precise rotary position 
          in any axis), other than those controlled in 2B120, having all 
          the following characteristics (See List of Items Controlled).

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: (1) Equipment that has the characteristics specified 
in 2B121, which also meets the characteristics of 2B120 will be treated 
as equipment specified in 2B120.
    (2) See also 2B008, 2B120, 7B101 and 7B994.
Related Definitions: N/A
Items:
    a. Two axes or more; and
    b. A positioning accuracy equal to or better than 5 arc-second.
    Note: 2B121 does not control rotary tables designed or modified for 
machine tools or for medical equipment. For controls on machine tool 
rotary tables see 2B008.
2B122 Centrifuges capable of imparting accelerations above 100 g and 
          having slip rings capable of transmitting electrical power and 
          signal information.

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: See also 7B101.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.
2B201 Machine tools, other than those controlled by 2B001, for removing 
          or cutting metals, ceramics or ``composites'', which, 
          according to the manufacturer's technical specifications, can 
          be equipped with electronic devices for simultaneous 
          ``contouring control'' in two or more axes.

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: (1) See ECCNs 2D002 and 2D202 for ``software'' for 
items controlled by this entry. ``Numerical control'' units are 
controlled by their associated ``software''. (2) See ECCNs 2E001 
(``development''), 2E002 (``production''), and 2E201 (``use'') for 
technology for items controlled under this entry. (3) Also see ECCNs 
2B001, 2B290, and 2B991.
Related Definitions: N/A
Items:
    a. Machine tools for milling, having any of the following 
characteristics:
    a.1. Positioning accuracies with ``all compensations available'' 
equal to or less (better) than 6 [mu]m along any linear axis (overall 
positioning); or
    a.2. Two or more contouring rotary axes.
    Note: 2B201.a does not control milling machines having the following 
characteristics:
    a. X-axis travel greater than 2 m; and
    b. Overall positioning accuracy on the x-axis more (worse) than 30 
[mu]m.
    b. Machine tools for grinding, having any of the following 
characteristics:
    b.1. Positioning accuracies with ``all compensations available'' 
equal to or less (better) than 4 [mu]m along any linear axis (overall 
positioning); or
    b.2. Two or more contouring rotary axes.
    Note: 2B201.b does not control the following grinding machines:
    a. Cylindrical external, internal, and external-internal grinding 
machines having all of the following characteristics:
    1. Limited to cylindrical grinding;
    2. A maximum workpiece outside diameter or length of 150 mm;
    3. Not more than two axes that can be coordinated simultaneously for 
``contouring control''; and
    4. No contouring c-axis.
    b. Jig grinders with axes limited to x, y, c and a where c axis is 
used to maintain the grinding wheel normal to the work surface, and the 
a axis is configured to grind barrel cams;
    c. Tool or cutter grinding machines with ``software'' specially 
designed for the production of tools or cutters; or
    d. Crankshaft or camshaft grinding machines.


[[Page 653]]


2B204 ``Isostatic presses'', other than those controlled by 2B004 or 
          2B104, and related equipment, as follows (see List of Items 
          Controlled). 

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: (1) See ECCN 2D201 for ``software'' for items 
controlled under this entry. (2) See ECCNs 2E001 (``development''), 
2E002 (``production''), and 2E201 (``use'') for technology for items 
controlled under this entry. (3) Also see ECCNs 2B004 and 2B104.
Related Definitions: The inside chamber dimension is that of the chamber 
in which both the working temperature and 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 chamber, depending on which of the two 
chambers is located inside the other.
Items:

    a. ``Isostatic presses'' having both of the following 
characteristics:
    a.1. Capable of achieving a maximum working pressure of 69 MPa or 
greater; and
    a.2. A chamber cavity with an inside diameter in excess of 152 mm;
    b. Dies, molds and controls, specially designed for ``isostatic 
presses'' controlled by 2B204.a.

2B206 Dimensional inspection machines, instruments or systems, other 
          than those described in 2B006, as follows (see List of Items 
          Controlled). 

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: (1) See ECCNs 2D002 and 2D201 for ``software'' for 
items controlled under this entry. (2) See ECCNs 2E001 
(``development''), 2E002 (``production''), and 2E201 (``use'') for 
technology for items controlled under this entry. (3) Also see ECCNs 
2B006 and 2B996.
Related Definitions: N/A
ECCN Controls: (1) Machine tools that can be used as measuring machines 
are controlled by this entry if they meet or exceed the criteria 
specified for the machine tool function or the measuring machine 
function. (2) A machine described in this entry is controlled if it 
exceeds the control threshold anywhere within its operating range.
Items:

    a. Computer controlled or numerically 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/1000) [mu]m tested with a probe of an 
``accuracy'' of less (better) than 0.2 [mu]m (L is the measured length 
in millimeters) (Ref.: VDI/VDE 2617 Parts 1 and 2);
    b. Systems for simultaneously linear-angular inspection of 
hemishells, having both of the following characteristics:
    b.1. ``Measurement uncertainty'' along any linear axis equal to or 
less (better) than 3.5 [mu]m per 5 mm; and
    b.2. ``Angular position deviation'' equal to or less than 0.02[deg].
    Technical Notes: (1) The probe used in determining the measurement 
uncertainty of a dimensional inspection system shall be described in 
VDI/VDE 2617 parts 2, 3 and 4. (2) All parameters of measurement values 
in this entry represent plus/minus, i.e., not total band.

2B207 ``Robots'', ``end-effectors'' and control units, other than those 
          controlled by 2B007, as follows (see List of Items 
          Controlled). 

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) See ECCN 2D201 for ``software'' for items 
controlled under this entry. (2) See ECCNs 2E001 (``development''), 
2E002 (``production''), and 2E201 (``use'') for technology for items 
controlled

[[Page 654]]

under this entry. (3) Also see ECCNs 2B007, 2B225, and 2B997.
Related Definitions: N/A
ECCN Controls: This entry does not control ``robots'' specially designed 
for non-nuclear industrial applications, such as automobile paint-
spraying booths.
Items:

    a. ``Robots'' or ``end-effectors'' specially designed to comply with 
national safety standards applicable to handling high explosives (for 
example, meeting electrical code ratings for high explosives);
    b. Control units specially designed for any of the ``robots'' or 
``end-effectors'' controlled by 2B207.a.

2B209 Flow forming machines, spin forming machines capable of flow 
          forming functions, other than those controlled by 2B009 or 
          2B109, and mandrels, as follows (see List of Items 
          Controlled). 

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: (1) See ECCN 2D201 for ``software'' for items 
controlled under this entry. (2) See ECCNs 2E001 (``development''), 
2E002 (``production''), and 2E201 (``use'') for technology for items 
controlled under this entry. (3) Also see ECCNs 2B009 and 2B109.
Related Definitions: N/A
Items:

    a. Machines having both of the following characteristics:
    a.1. Three or more rollers (active or guiding); and
    a.2. According to the manufacturer's technical specifications, can 
be equipped with ``numerical control'' units or a computer control;
    Note: 2B209.a includes machines that have only a single roller 
designed to deform metal, plus two auxiliary rollers that support the 
mandrel, but do not participate directly in the deformation process.
    b. Rotor-forming mandrels designed to form cylindrical rotors of 
inside diameter between 75 mm and 400 mm.

2B225 Remote manipulators that can be used to provide remote actions in 
          radiochemical separation operations or hot cells, having 
          either of the following characteristics (see List of Items 
          Controlled). 

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) See ECCNs 2E001 (``development''), 2E002 
(``production''), and 2E201 (``use'') for technology for items 
controlled under this entry. (2) Also see ECCNs 2B007 and 2B207. (3) 
Remote manipulators specially designed or prepared for use in fuel 
reprocessing or for use in a reactor are subject to the export licensing 
authority of the Nuclear Regulatory Commission (see 10 CFR part 110).
Related Definitions: N/A
Items:
    a. A capability of penetrating 0.6 m or more of hot cell wall 
(through-the-wall operation); or
    b. 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).
    Technical Note: Remote manipulators provide translation of human 
operator actions to a remote operating arm and terminal fixture. They 
may be of ``master/slave'' type or operated by joystick or keypad.

2B226 Controlled atmosphere (vacuum or inert gas) induction furnaces, 
          and power supplies therefor, as follows (see List of Items 
          Controlled). 

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) See ECCNs 2E001 (``development''), 2E002 
(``production''), and 2E201 (``use'') for technology for items 
controlled under this entry. (2) Also see ECCN 2B227 and Category 3B.
Related Definitions: N/A

[[Page 655]]

ECCN Controls: 2B226.a does not control furnaces designed for the 
processing of semiconductor wafers.
Items:

    a. Furnaces having all of the following characteristics:
    a.1. Capable of operation above 1,123 K (850 [deg]C);
    a.2. Induction coils 600 mm or less in diameter; and
    a.3. Designed for power inputs of 5 kW or more;
    b. Power supplies, with a specified power output of 5 kW or more, 
specially designed for furnaces controlled by 2B226.a.

2B227 Vacuum or other controlled atmosphere metallurgical melting and 
          casting furnaces and related equipment, as follows (see List 
          of Items Controlled). 

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) See ECCN 2D201 for ``software'' for items 
controlled under this entry. (2) See ECCNs 2E001 (``development''), 
2E002 (``production''), and 2E201 (``use'') for technology for items 
controlled under this entry. (2) Also see ECCN 2B226.
Related Definitions: N/A
Items:
    a. Arc remelt and casting furnaces having both of the following 
characteristics:
    a.1. Consumable electrode capabilities between 1,000 cm\3\ and 
20,000 cm\3\; and
    a.2. Capable of operating with melting temperatures above 1,973 K 
(1,700 [deg]C);
    b. Electron beam melting furnaces and plasma atomization and melting 
furnaces, having both of the following characteristics:
    b.1. A power of 50 kW or greater; and
    b.2. Capable of operating with melting temperatures above 1,473 K 
(1,200 [deg]C);
    c. Computer control and monitoring systems specially configured for 
any of the furnaces controlled by 2B227.a or .b.

2B228 Rotor fabrication and assembly equipment, rotor straightening 
          equipment, bellows-forming mandrels and dies, as follows (see 
          List of Items Controlled). 

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: See ECCNs 2E001 (``development''), 2E002 
(``production''), and 2E201 (``use'') for technology for items 
controlled under this entry.
Related Definitions: N/A
Items:

    a. Rotor assembly equipment for assembly of gas centrifuge rotor 
tube sections, baffles, and end-caps;
    Note: 2B228.a includes precision mandrels, clamps, and shrink fit 
machines.
    b. Rotor straightening equipment for alignment of gas centrifuge 
rotor tube sections to a common axis;
    Technical Note: The rotor straightening equipment in 2B228.b 
normally consists 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.
    Technical Note: In 2B228.c, the bellows have all of the following 
characteristics:
    1. Inside diameter between 75 mm and 400 mm;
    2. Length equal to or greater than 12.7 mm;
    3. Single convolution depth greater than 2 mm; and
    4. Made of high-strength aluminum alloys, maraging steel or high 
strength ``fibrous or filamentary materials''.

2B229 Centrifugal multiplane balancing machines, fixed or portable, 
          horizontal or vertical, as follows (see List of Items 
          Controlled).

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) See ECCN 2D201 for ``software'' for items 
controlled under this entry. (2) See ECCNs 2E001 (``development''), 
2E002 (``production''), and 2E201

[[Page 656]]

(``use'') for technology for items controlled under this entry.
Related Definitions: N/A
Items:

    a. Centrifugal balancing machines designed for balancing flexible 
rotors having a length of 600 mm or more and having all of the following 
characteristics:
    a.1. Swing or journal diameter greater than 75 mm;
    a.2. Mass capability of from 0.9 to 23 kg; and
    a.3. Capable of balancing speed of revolution greater than 5,000 
r.p.m.;
    b. Centrifugal balancing machines designed for balancing hollow 
cylindrical rotor components and having all of the following 
characteristics:
    b.1. Journal diameter greater than 75 mm;
    b.2. Mass capability of from 0.9 to 23 kg;
    b.3. Capable of balancing to a residual imbalance equal to or less 
than 0.01 kg x mm/kg per plane; and
    b.4. Belt drive type.

2B230 ``Pressure transducers'' capable of measuring absolute pressures 
          at any point in the range 0 to 13 kPa and having both of the 
          following characteristics (see List of Items Controlled). 

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: See ECCNs 2E001 (``development''), 2E002 
(``production''), and 2E201 (``use'') for technology for items 
controlled under this entry.
Related Definitions: (1) Pressure transducers are devices that convert 
pressure measurements into an electrical signal. (2) For purposes of 
this entry, ``accuracy'' includes non-linearity, hysteresis and 
repeatability at ambient temperature.
Items:

    a. Pressure sensing elements made of or protected by aluminum, 
aluminum alloy, nickel or nickel alloy with more than 60% nickel by 
weight; and
    b. Having either of the following characteristics:
    b.1. A full scale of less than 13 kPa and an ``accuracy'' of better 
than  1% of full-scale; or
    b.2. A full scale of 13 kPa or greater and an ``accuracy'' of better 
than  130 Pa.

2B231 Vacuum pumps having all of the following characteristics (see List 
          of Items Controlled). 

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) See ECCNs 2E001 (``development''), 2E002 
(``production''), and 2E201 (``use'') for technology for items 
controlled under this entry. (2) Vacuum pumps specially designed or 
prepared for the separation of uranium isotopes are subject to the 
export licensing authority of the Nuclear Regulatory Commission (see 10 
CFR part 110).
Related Definitions: (1) The pumping speed is determined at the 
measurement point with nitrogen gas or air. (2) The ultimate vacuum is 
determined at the input of the pump with the input of the pump blocked 
off.
Items:
    a. Input throat size equal to or greater than 380 mm;
    b. Pumping speed equal to or greater than 15 m\3\/s; and
    c. Capable of producing an ultimate vacuum better than 13.3 mPa.

2B232 Multistage light gas guns or other high-velocity gun systems 
          (coil, electromagnetic, and electrothermal types, and other 
          advanced systems) capable of accelerating projectiles to 2 km/
          s 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: See ECCNs 2E001 (``development''), 2E002 
          (``production''), and 2E201 (``use'') for technology for items 
          controlled under this entry.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.


[[Page 657]]


2B290 ``Numerically controlled'' machine tools not controlled by 2B001 
          or 2B201. 

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: Equipment in number; parts and accessories in $ value
Related Controls: (1) See ECCNs 2D002 and 2D290 for ``software'' for 
items controlled under this entry. (2) See ECCNs 2E001 
(``development''), 2E002 (``production''), and 2E290 (``use'') for 
technology for items controlled under this entry. (3) Also see ECCNs 
2B001, 2B201, and 2B991.
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, except valves 
          controlled by 2A226 or 2A292, as follows (see List of Items 
          Controlled).

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 Definitions: 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)
    Items:

    a. Reaction vessels or reactors, with or without agitators, with 
total internal (geometric) volume greater than 0.1 m\3\ (100 liters) and 
less than 20 m\3\ (20,000 liters), where all surfaces that come in 
direct contact with the chemical(s) being processed or contained are 
made from any of the following materials:
    a.1. Alloys with more than 25% nickel and 20% chromium by weight;
    a.2. Fluoropolymers;
    a.3. Glass (including vitrified or enameled coating or glass 
lining);
    a.4. Nickel or alloys with more than 40% nickel by weight;
    a.5. Tantalum or tantalum alloys;
    a.6. Titanium or titanium alloys; or
    a.7. Zirconium or zirconium alloys.
    b. Agitators for use in reaction vessels or reactors described in 
2B350.a, and impellers, blades or shafts designed for such agitators, 
where all surfaces that come in direct contact with the chemical(s) 
being processed or contained are made from any of the following 
materials:
    b.1. Alloys with more than 25% nickel and 20% chromium by weight;
    b.2. Fluoropolymers;
    b.3. Glass (including vitrified or enameled coatings or glass 
lining);
    b.4. Nickel or alloys with more than 40% nickel by weight;
    b.5. Tantalum or tantalum alloys;
    b.6. Titanium or titanium alloys; or
    b.7. Zirconium or zirconium alloys.
    c. Storage tanks, containers or receivers with a total internal 
(geometric) volume greater than 0.1 m3 (100 liters) where all surfaces 
that come in direct contact with the chemical(s) being processed or 
contained are made from any of the following materials:
    c.1. Alloys with more than 25% nickel and 20% chromium by weight;
    c.2. Fluoropolymers;
    c.3. Glass (including vitrified or enameled coatings or glass 
lining);
    c.4. Nickel or alloys with more than 40% nickel by weight;
    c.5. Tantalum or tantalum alloys;
    c.6. Titanium or titanium alloys; or
    c.7. Zirconium or zirconium alloys.
    d. Heat exchangers or condensers with a heat transfer surface area 
of less than 20 m\2\, but greater than 0.15 m\2\, and tubes, plates, 
coils or blocks (cores) designed for such heat exchangers or condensers, 
where all surfaces that come in direct contact with the chemical(s) 
being processed are made from any of the following materials:
    d.1. Alloys with more than 25% nickel and 20% chromium by weight;
    d.2. Fluoropolymers;
    d.3. Glass (including vitrified or enameled coatings or glass 
lining);
    d.4. Graphite or carbon-graphite;

[[Page 658]]

    d.5. Nickel or alloys with more than 40% nickel by weight;
    d.6. Silicon carbide;
    d.7. Tantalum or tantalum alloys;
    d.8. Titanium or titanium alloys;
    d.9. Titanium carbide; or
    d.10. Zirconium or zirconium alloys.
    e. Distillation or absorption columns of internal diameter greater 
than 0.1 m, and liquid distributors, vapor distributors or liquid 
collectors designed for such distillation or absorption columns, where 
all surfaces that come in direct contact with the chemical(s) being 
processed are made from any of the following materials:
    e.1. Alloys with more than 25% nickel and 20% chromium by weight;
    e.2. Fluoropolymers;
    e.3. Glass (including vitrified or enameled coatings or glass 
lining);
    e.4. Graphite or carbon-graphite;
    e.5. Nickel or alloys with more than 40% nickel by weight;
    e.6. Tantalum or tantalum alloys;
    e.7. Titanium or titanium alloys; or
    e.8. Zirconium or zirconium alloys.
    f. Remotely operated filling equipment in which all surfaces that 
come in direct contact with the chemical(s) being processed are made 
from any of the following materials:
    f.1. Alloys with more than 25% nickel and 20% chromium by weight; or
    f.2. Nickel or alloys with more than 40% nickel by weight.
    g. Valves with nominal sizes greater than 1.0 cm (\3/8\ in.), and 
casings (valve bodies) or preformed casing liners designed for such 
valves, in which all surfaces that come in direct contact with the 
chemical(s) being processed or contained are made from any of the 
following materials:
    g.1. Nickel or alloys with more than 40% nickel by weight;
    g.2. Alloys with more than 25% nickel and 20% chromium by weight;
    g.3. Fluoropolymers;
    g.4. Glass or glass lined (including vitrified or enameled 
coatings);
    g.5. Tantalum or tantalum alloys;
    g.6. Titanium or titanium alloys; or
    g.7. Zirconium or zirconium alloys.
    h. Multi-walled piping incorporating a leak detection port, in which 
all surfaces that come in direct contact with the chemical(s) being 
processed or contained are made from any of the following materials:
    h.1. Alloys with more than 25% nickel and 20% chromium by weight;
    h.2. Fluoropolymers;
    h.3. Glass (including vitrified or enameled coatings or glass 
lining);
    h.4. Graphite or carbon-graphite;
    h.5. Nickel or alloys with more than 40% nickel by weight;
    h.6. Tantalum or tantalum alloys;
    h.7. Titanium or titanium alloys; or
    h.8. Zirconium or zirconium alloys.
    i. Multiple-seal, canned drive, magnetic drive, bellows or diaphragm 
pumps, with manufacturer's specified maximum flow-rate greater than 0.6 
m\3\/hour, or vacuum pumps with manufacturer's specified maximum flow-
rate greater than 5 m\3\/hour (under standard temperature (273 K (0 
[deg]C)) and pressure (101.3 kPa) conditions), and casings (pump 
bodies), preformed casing liners, impellers, rotors or jet pump nozzles 
designed for such pumps, in which all surfaces that come into direct 
contact with the chemical(s) being processed are made from any of the of 
the following materials:
    i.1. Alloys with more than 25% nickel and 20% chromium by weight;
    i.2. Ceramics;
    i.3. Ferrosilicon;
    i.4. Fluoropolymers;
    i.5. Glass (including vitrified or enameled coatings or glass 
lining);
    i.6. Graphite or carbon-graphite;
    i.7. Nickel or alloys with more than 40% nickel by weight;
    i.8. Tantalum or tantalum alloys;
    i.9. Titanium or titanium alloys, or
    i.10. Zirconium or zirconium alloys.
    j. Incinerators designed to destroy chemical warfare agents, 
chemical weapons precursors controlled by 1C350, or chemical munitions 
having specially designed waste supply systems, special handling 
facilities and 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:
    j.1. Alloys with more than 25% nickel and 20% chromium by weight;
    j.2. Ceramics; or
    j.3. Nickel or alloys with more than 40% nickel by weight.
    Technical Note: Carbon-graphite is a composition consisting 
primarily of graphite and amorphous carbon, in which the graphite is 8 
percent or more by weight of the composition.

2B351 Toxic gas monitoring systems that operate on-line 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.

[[Page 659]]

Related Definitions: For the purposes of this entry, the term 
``continuous operation'' describes the capability of the equipment to 
operate on line without human intervention. The intent of this entry is 
to control toxic gas monitoring systems capable of collection and 
detection of samples in environments such as chemical plants, rather 
than those used for batch-mode operation in laboratories.
Items:
    a. Designed for continuous operation and usable for the detection of 
chemical warfare agents or chemicals controlled by 1C350 at 
concentrations of less than 0.3mg/m\3\ (see technical note below); or
    b. Designed for the detection of cholinesterase-inhibiting activity.
    Technical Note: Toxic Gas Monitoring Systems, controlled under 
2B351.a., include those with detection capability for chemicals 
containing phosphorus, sulfur, fluorine or chlorine, other than those 
specified in 1C350.

2B352 Equipment capable of use in handling biological materials, as 
          follows (see List of Items Controlled).

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: For purposes of this entry, isolators include 
flexible isolators, dry boxes, anaerobic chambers and glove boxes.
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 microorganisms, 
viruses, or for toxin production, without the propagation of aerosols, 
having a capacity equal to or greater than 20 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. One or more sealing joints within the steam containment area;
    c.2. A flow rate greater than 100 liters per hour;
    c.3. Components of polished stainless steel or titanium; and
    c.4. Capable of in-situ steam sterilization in a closed state.
    Technical Note: Centrifugal separators include decanters.
    d. Cross (tangential) flow filtration equipment and accessories, as 
follows:
    d.1. Cross (tangential) flow filtration equipment capable of 
separation of pathogenic microorganisms, viruses, toxins or cell 
cultures, without the propagation of aerosols, having all of the 
following characteristics:
    d.1.a. A total filtration area equal to or greater than 1 square 
meter (1 m\2\); and
    d.1.b. Capable of being sterilized or disinfected in-situ.

    N.B.: 2B352.d.1 does not control reverse osmosis equipment, as 
specified by the manufacturer.

    d.2. Cross (tangential) flow filtration components (e.g., modules, 
elements, cassettes, cartridges, units or plates) with filtration area 
equal to or greater than 0.2 square meters (0.2 m\2\) for each component 
and designed for use in cross (tangential) flow filtration equipment 
controlled by 2B352.d.1.
    Technical Note: In this ECCN, ``sterilized'' denotes the elimination 
of all viable microbes from the equipment through the use of either 
physical (e.g., steam) or chemical agents. ``Disinfected'' denotes the 
destruction of potential microbial infectivity in the equipment through 
the use of chemical agents with a germicidal effect. ``Disinfection'' 
and ``sterilization'' are distinct from ``sanitization'', the latter 
referring to cleaning procedures designed to lower the microbial content 
of equipment without necessarily achieving elimination of all microbial 
infectivity or viability.
    e. Steam sterilizable freeze-drying equipment with a condenser 
capacity of 10 kgs of ice or greater in 24 hours, but less than 1,000 
kgs of ice in 24 hours.
    f. Protective and containment equipment, as follows:
    f.1. Protective full or half suits, or hoods dependant upon a 
tethered external air supply and operating under positive pressure;
    Technical Note: This entry does not control suits designed to be 
worn with self-contained breathing apparatus.
    f.2. Class III biological safety cabinets or isolators with similar 
performance standards, e.g., flexible isolators, dry boxes, anaerobic 
chambers, glove boxes or laminar flow hoods (closed with vertical flow).
    g. Chambers designed for aerosol challenge testing with 
microorganisms, viruses, or toxins and having a capacity of 1 m\3\ or 
greater.


[[Page 660]]


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: Also see ECCNs 2B001, 2B201, and 2B290.
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;
    a.3. ``Numerical control'' units for machine tools having two, three 
or four interpolating axes that can be coordinated simultaneously for 
``contouring control'', and capable of receiving directly (on-line) and 
processing computer-aided-design (CAD) data for internal preparation of 
machine instructions; or
    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'' of data to modify tool 
path, feed rate and spindle data, during the machining operation, by any 
of the following:
    b.2.a. 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
    b.2.b. ``Adaptive control'' with more than one physical variable 
measured and processed by means of a computing model (strategy) to 
change one or more machining instructions to optimize the process.
    b.3. Capable of receiving and processing CAD data for internal 
preparation of machine instructions; or
    c. ``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:
    c.1. Two or more axes that can be coordinated simultaneously for 
contouring control; and
    c.2. ``Positioning accuracies'', with all compensations available:
    c.2.a. Better than 0.020 mm along any linear axis (overall 
positioning) for grinding machines;
    c.2.b. Better than 0.020 mm along any linear axis (overall 
positioning) for milling machines; or
    c.2.c. Better than 0.020 mm along any linear axis (overall 
positioning) for turning machines; or
    d. 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:
    d.1. Machine tools for turning, grinding, milling or any combination 
thereof, having two or more axes that can be coordinated simultaneously 
for ``contouring control'' and having any of the following 
characteristics:
    d.1.a. One or more contouring ``tilting spindles'';

    Note: 2B991.d.1.a. applies to machine tools for grinding or milling 
only.

    d.1.b. ``Camming'' (axial displacement) in one revolution of the 
spindle less (better) than 0.0006 mm total indicator reading (TIR);

    Note: 2B991.d.1.b. applies to machine tools for turning only.

    d.1.c. ``Run out'' (out-of-true running) in one revolution of the 
spindle less (better) than 0.0006 mm total indicator reading (TIR);
    d.1.d. The ``positioning accuracies'', with all compensations 
available, are less (better) than: 0.001[deg] on any rotary axis;
    d.2. Electrical discharge machines (EDM) of the wire feed type that 
have five or more axes that can be coordinated simultaneously for 
``contouring control''.

2B992 Non-``numerically controlled'' machine tools for generating 
          optical quality surfaces, 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
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;

[[Page 661]]

    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 all of the following characteristics:
    b.1. Spindle ``run out'' and ``camming'' less (better) than 0.0004 
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.

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

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.

2B996 Dimensional inspection or measuring systems or equipment not 
          controlled by 2B006.

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. Manual dimensional inspection machines, having both of the 
following characteristics:

    a.1. Two or more axes; and
    a.2. A measurement uncertainty equal to or less (better) than (3 + 
L/300) micrometer in any axes (L measured length in mm).

2B997 ``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.

2B998 Assemblies, units or inserts specially designed for machine tools 
          controlled by 2B991, or for equipment controlled by 2B993, 
          2B996 or 2B997.

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: 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.
Related Definition: N/A
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. Single point diamond cutting tool inserts, having all of the 
following characteristics:

[[Page 662]]

    b.1. Flawless and chip-free cutting edge when magnified 400 times in 
any direction;
    b.2. Cutting radius from 0.1 to 5 mm inclusive; and
    b.3. Cutting radius out-of-roundness less (better) than 0.002 mm 
TIR.
    c. Specially designed printed circuit boards with mounted components 
capable of upgrading, according to the manufacturer's specifications, 
``numerical control'' units, machine tools or feedback devices to or 
above the levels specified in ECCNs 2B991, 2B993, 2B996, 2B997, or 
2B998.

2B999 Specific Processing Equipment, n.e.s., as Follows (See List of 
          Items Controlled).

License Requirements

Reason for Control: AT.
Control(s).
Country Chart.
    AT applies to entire entry. A license is required for items 
controlled by this entry to North Korea for anti-terrorism reasons. The 
Commerce Country Chart is not designed to determine AT licensing 
requirements for this entry. See Sec.  742.19 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: See also 0B001, 0B002, 0B004, 1B233, 2A293, 2B001.f, 
2B004, 2B009, 2B104, 1B109, 2B204, 2B209, 2B228, 2B229, 2B231, 2B350.
Related Definitions: N/A.
Items:
    a. Isostatic presses, n.e.s.;
    b. Bellows manufacturing equipment, including hydraulic forming 
equipment and bellows forming dies;
    c. Laser welding machines;
    d. MIG welders;
    e. E-beam welders;
    f. Monel equipment, including valves, piping, tanks and vessels;
    g. 304 and 316 stainless steel valves, piping, tanks and vessels;
    h. Mining and drilling equipment, as follows:
    h.1. Large boring equipment capable of drilling holes greater than 
two feet in diameter;
    h.2. Large earth-moving equipment used in the mining industry;
    i. Electroplating equipment designed for coating parts with nickel 
or aluminum;
    j. Pumps designed for industrial service and for use with an 
electrical motor of 5 HP or greater;
    k. Vacuum valves, piping, flanges, gaskets and related equipment 
specially designed for use in high-vacuum service, n.e.s.;
    l. Spin forming and flow forming machines, n.e.s.;
    m. Centrifugal multiplane balancing machines, n.e.s.;
    n. Austenitic stainless steel plate, valves, piping, tanks and 
vessels.

                         C. Materials [Reserved]

                               D. Software

2D001 ``Software'', other than that controlled by 2D002, specially 
          designed or modified for the ``development'', ``production'' 
          or ``use'' of equipment controlled by 2A001 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           MT Column 1
 equipment controlled by 2B004 and
 2B009 for MT reasons.
NP applies to specially designed or      NP Column 1
 modified ``software'' for equipment
 controlled by 2B001 for NP reasons,
 and to specially designed ``software''
 for equipment controlled by 2B004,
 2B006, 2B007, or 2B009 for NP reasons.
AT applies to entire entry.............  AT Column 1
 

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

CIV: N/A
TSR: Yes, except N/A for MT

List of Items Controlled
Unit: $ value
Related Controls: (1) See ECCNs 2E001 (``development'') and 2E101 
(``use'') for technology for ``software'' controlled under this entry. 
(2) Also see ECCNs 2D101 and 2D201.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

2D002 ``Software'' for Electronic Devices, Even When Residing in an 
          Electronic Device or System, Enabling Such Devices or Systems 
          to Function as a ``Numerical Control'' Unit, Capable of 
          Coordinating Simultaneously More Than 4 Axes for ``Contouring 
          Control''
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.
------------------------------------------------------------------------


[[Page 663]]

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled
Unit: $ value.
Related Controls: (1) See ECCNs 2E001 (``development'') and 2E201 
(``use'') for technology for ``software'' controlled under this entry. 
(2) Also see ECCN 2D202.
Related Definitions: N/A.
Items:
    Note: 2D002 does not control ``software'' specially designed or 
modified for the operation of machine tools not controlled by Category 
2.
    The list of items controlled is contained in the ECCN heading.

2D018 ``Software'' for the ``development'', ``production'' or ``use'' of 
          equipment controlled by 2B018.

License Requirements

Reason for Control: NS, MT, AT, UN.

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 1.
MT applies to ``software'' for equipment  MT Column 1.
 controlled by 2B018 for MT reasons.
AT applies to entire entry..............  AT Column 1.
UN applies to entire entry..............  Rwanda.
------------------------------------------------------------------------

License Exceptions

CIV: N/A
TSR: Yes, except N/A for Rwanda

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'' specially designed or modified for the ``use'' of 
          equipment controlled by 2B104, 2B105, 2B109, 2B116, 2B117, or 
          2B119 to 2B122.

License Requirements

Reason for Control: MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
MT applies to entire entry.............  MT Column 1.
NP applies to ``software'' specially     NP Column 1.
 designed for the use'' of items
 controlled by 2B104, 2B109, or 2B116
 for NP reasons.
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) See ECCNs 2E001 (``development'') and 2E101 
(``use'') for technology for ``software'' controlled under this entry. 
(2) Also see ECCN 9D004.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

2D201 ``Software'' specially designed for the ``use'' of equipment 
          controlled by 2B204, 2B206, 2B207, 2B209, 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: (1) See ECCNs 2E001 (``development'') and 2E201 
(``use'') for technology for ``software'' controlled under this entry. 
(2) Also see ECCNs 2D002 and 2D202.
Related Definitions: N/A
ECCN Controls: ``Software'' specially designed for systems controlled by 
2B206.b includes software for simultaneous measurements of wall 
thickness and contour.
Items: The list of items controlled is contained in the ECCN heading.

2D202 ``Software'' specially designed or modified for the 
          ``development'', ``production'' or ``use'' of equipment 
          controlled by 2B201.

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, 2A292, 2A293, or 2B290.

License Requirements

Reason for Control: NP, AT

[[Page 664]]



 
               Control(s)                         Country Chart
 
NP applies to entire entry.............  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: See ECCN 2E001 (``development'') for technology for 
``software'' controlled under this entry.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

2D983 ``Software'' specially designed or modified for the 
          ``development'', ``production'' or ``use'' of equipment 
          controlled by 2A983.

License Requirements

Reason for Control: RS, AT

 
               Control(s)                          Country chart
 
RS applies to entire entry                RS 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.

2D991 ``Software'' specially designed for the ``development'', 
          ``production'', or ``use'' of equipment controlled by 2B991, 
          2B993, or 2B996, 2B997, and 2B998.

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.

2D992 Specific ``software'', as follows (see List of Items Controlled).

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: 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; and
    a.2.g. Torque measurement.

    Note: 2D992.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. Reserved.

2D994 ``Software'' specially designed for the ``development'' or 
          ``production'' of portable electric generators controlled by 
          2A994.

License Requirements

Reason for Control: AT.
Control(s).
    AT applies to entire entry. A license is required for items 
controlled by this entry to Cuba, Iran, Libya, and North Korea for anti-
terrorism reasons. The Commerce Country Chart is not designed to 
determine licensing requirements for this entry. See part 746 of the EAR 
for additional information on Cuba, Iran, and Libya. See Sec.  742.19 of 
the EAR for additional information on North Korea.

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 665]]

                              E. Technology

2E001 ``Technology according to the General Technology Note for the 
          ``development'' of equipment or ``software'' controlled by 2A 
          (except 2A983, 2A991, or 2A994), 2B (except 2B991, 2B993, 
          2B996 2B997 or 2B998), or 2D (except 2D983, 2D991, 2D992, or 
          2D994).

License Requirements
Reason for Control: NS, MT, NP, CB, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to ``technology'' for items   NS Column 1
 controlled by 2A001, 2B001 to 2B009,
 2D001 or 2D002.
MT applies to ``technology'' for items   MT Column 1
 controlled by 2B004, 2B009, 2B018,
 2B104, 2B105, 2B109, 2B116, 2B117,
 2B119 to 2B122, 2D001 or 2D101 for MT
 reasons.
NP applies to ``technology'' for items   NP Column 1
 controlled by 2A225, 2A226, 2B001,
 2B004, 2B006, 2B007, 2B009, 2B104,
 2B109, 2B116, 2B201, 2B204, 2B206,
 2B207, 2B209, 2B225 to 2B232, 2D001,
 2D002, 2D101, 2D201 or 2D202 for NP
 reasons.
NP applies to ``technology'' for items   NP Column 2
 controlled by 2A290 to 2A293, 2B290,
 or 2D290 for NP reasons.
CB applies to ``technology'' for         CB Column 3
 equipment controlled by 2B350 to 2B352
 and for valves controlled by 2A226 or
 2A292 having the characteristics of
 those controlled by 2B350.g.
AT applies to entire entry.............  AT Column 1
------------------------------------------------------------------------

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

CIV: N/A
TSR: Yes, except N/A for MT

List of Items Controlled

Unit: N/A
Related Controls: See also 2E101, 2E201, and 2E301
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 equipment controlled by 2A (except 2A983, 
          2A991, or 2A994) or 2B (except 2B991, 2B993, 2B996, 2B997, or 
          2B998).

License Requirements
Reason for Control: NS, MT, NP, CB, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to ``technology'' for         NS Column 1
 equipment controlled by 2A001, 2B001
 to 2B009.
MT applies to ``technology'' for         MT Column 1
 equipment controlled by 2B004, 2B009,
 2B018, 2B104, 2B105, 2B109, 2B116,
 2B117, or 2B119 to 2B122 for MT
 reasons.
NP applies to ``technology'' for         NP Column 1
 equipment controlled by 2A225, 2A226,
 2B001, 2B004, 2B006, 2B007, 2B009,
 2B104, 2B109, 2B116, 2B201, 2B204,
 2B206, 2B207, 2B209, 2B225 to 2B232
 for NP reasons.
NP applies to ``technology'' for         NP Column 2
 equipment controlled by 2A290 to
 2A293, 2B290 for NP reasons.
CB applies to ``technology'' for         CB Column 3
 equipment controlled by 2B350 to 2B352
 and for valves controlled by 2A226 or
 2A292 having the characteristics of
 those controlled by 2B350.g.
AT applies to entire entry.............  AT Column 1
------------------------------------------------------------------------

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

CIV: N/A
TSR: Yes, except N/A for MT

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'', as follows (see List of Items Controlled).

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 2E003.a, .b, .e and .f

List of Items Controlled
Unit: N/A
Related Controls: See 2E001, 2E002, and 2E101 for ``development'' and 
``use'' technology for equipment that are designed or modified for 
densification of carbon-carbon composites, structural composite rocket 
nozzles and reentry vehicle nose tips.
Related Definitions: N/A
Items:
    a. ``Technology'' for the ``development'' of interactive graphics as 
an integrated part in ``numerical control'' units for preparation or 
modification of part programs;

[[Page 666]]

    b. ``Technology'' for metal-working manufacturing processes, as 
follows:
    b.1. ``Technology'' for the design of tools, dies or fixtures 
specially designed for any of the following processes:
    b.1.a. ``Superplastic forming'';
    b.1.b. ``Diffusion bonding''; or
    b.1.c. ``Direct-acting hydraulic pressing'';
    b.2. Technical data consisting of process methods or parameters as 
listed below used to control:
    b.2.a. ``Superplastic forming'' of aluminum 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 aluminum alloys or 
titanium alloys:
    b.2.c.1. Pressure;
    b.2.c.2. Cycle time;
    b.2.d. ``Hot isostatic densification'' of titanium alloys, aluminum 
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 the ``development'' of generators of machine 
tool instructions (e.g., part programs) from design data residing inside 
``numerical control'' units;
    e. ``Technology for the development'' of integration ``software'' 
for incorporation of expert systems for advanced decision support of 
shop floor operations into ``numerical control'' units;
    f. ``Technology'' for the application of inorganic overlay coatings 
or inorganic surface modification coatings (specified in column 3 of the 
following table) to non-electronic substrates (specified in column 2 of 
the following table), by processes specified in column 1 of the 
following table and defined in the Technical Note.
    N.B. This table should be read to control the technology of a 
particular `Coating Process' only when the `Resultant Coating' in column 
3 is in a paragraph directly across from the relevant `Substrate' under 
column 2. For example, Chemical Vapor Deposition (CVD) coating process 
technical data are controlled for the application of `silicides' to 
`Carbon-carbon, Ceramic and Metal ``matrix'' ``composites'' substrates, 
but are not controlled for the application of `silicides' to `Cemented 
tungsten carbide (16), Silicon carbide (18)' substrates. In the second 
case, the `Resultant Coating' is not listed in the paragraph under 
column 3 directly across from the paragraph under column 2 listing 
`Cemented tungsten carbide (16), Silicon carbide (18)'.

     Category 2E--Materials Processing Table; Deposition Techniques
------------------------------------------------------------------------
 1. Coating process (1) \1\       2. Substrate      3. Resultant coating
------------------------------------------------------------------------
A. Chemical Vapor Deposition  ``Superalloys''.....  Aluminides for
 (CVD)                                               internal passages
                              Ceramics (19) and     Silicides Carbides
                               Low-expansion        Dielectric layers
                               glasses (14).         (15) Diamond
                                                     Diamond-like carbon
                                                     (17)
                              Carbon-carbon,        Silicides
                               Ceramic, and Metal   Carbides
                               ``matrix''           Refractory metals,
                               ``composites''.      Mixtures thereof (4)
                                                    Dielectric layers
                                                     (15)
                                                    Aluminides
                                                    Alloyed aluminides
                                                     (2)
                                                    Boron nitride
                              Cemented tungsten     Carbides
                               carbide (16),        Tungsten Mixtures
                               Silicon Carbide       thereof (4)
                               (18).                Dielectric layers
                                                     (15)
                              Molybdenum and        Dielectric Players
                               Molybdenum alloys.    (15)
                              Beryllium and         Dielectric layers
                               Beryllium alloys.     (15)
                                                    Diamond
                                                    Diamond-like carbon
                                                     (17)
                              Sensor window         Dielectric layers
                               materials (9).        (15)
                                                    Diamond
                                                    Diamond-like carbon
                                                     (17)
B. Thermal Evaportation
 Physical Vapor
    1. Physical Vapor         ``Superalloys''.....  Alloyed silicides
     Deposition (PVD):                              Alloyed aluminides
     Deposition (TE-PVD)                             (2)
     Electron-Beam (EB-PVD).                        McrAlX (5)
                                                    Modified zirconia
                                                     (12) Silicides
                                                    Aluminides
                                                    Mixtures thereof (4)

[[Page 667]]

 
                              Ceramics (19) and     Dielectric layers
                               Low-expansion         (15)
                               glasses (14).
                              Corrosion resistant   MCrAIX (5)
                               steel (7).           Modified zirconia
                                                     (12)
                                                    Mixtures thereof (4)
                              Carbon-carbon,        Silicides
                               Ceramic and Metal    Carbides
                               ``matrix''           Refractory metals
                               ``composites''.      Mixtures thereof (4)
                                                    Dielectric layers
                                                     (15)
                                                    Boron nitride
                              Cemented tungsten     Carbides
                               carbide (16),        Tungsten
                               Silicon carbide      Mixtures thereof (4)
                               (18).                Dielectric layers
                                                     (15)
                              Molybdenum and        Dielectric layers
                               Molybdenum alloys.    (15)
                              Beryllium and         Dielectric layers
                               Beryllium alloys.     (15)
                                                    Borides
                                                    Beryllium
                              Sensor window         Dielectric layers
                               materials (9).        (15)
                              Titanium alloys (13)  Borides
                                                    Nitrides
    2. Ion assisted           Ceramics (19) and     Dielectric layers
     resistive heating.        Low-expansion         (15)
     Physical Vapor            glasses (14).        Diamond-like carbon
     Deposition (PVD) (Ion                           (17)
     Plating).
                              Carbon-carbon,        Dielectric layers
                               Ceramic and Metal     (15)
                               ``matrix''
                               ``composites''.
                              Cemented tungsten     Dielectric layers
                               carbide (16),         (15)
                               Silicon carbide.
                              Molybdenum and        Dielectric layers
                               Molybdenum alloys.    (15)
                              Beryllium and         Dielectric layers
                               Beryllium alloys.     (15)
                              Sensor window         Dielectric layers
                               materials (9).        (15)
                                                    Diamond-like carbon
                                                     (17)
  3. Physical Vapor           Ceramics (19) and     Silicides
   Deposition (PVD):           Low-expansion        Dielectric layers
   ``Laser'' Vaporization.     glasses (14).         (15)
                                                    Diamond-like carbon
                                                     (17)
                              Carbon-carbon,        Dielectric layers
                               Ceramic and Metal     (15)
                               ``matrix''
                               ``composites''.
                              Cemented tungsten     Dielectric layers
                               carbide (16),         (15)
                               Silicon carbide.
                              Molybdenum and        Dielectric layers
                               Molybdenum alloys.    (15)
                              Beryllium and         Dielectric layers
                               Beryllium alloys.     (15)
                              Sensor window         Dielectric layers
                               materials (9).        (15)
                                                    Diamond-like carbon
  4. Physical Vapor           ``Superalloys''.....  Alloyed silicides
   Deposition (PVD):                                Alloyed Aluminides
   Cathodic Arc Discharge.                           (2)
                                                    MCrAlX (5)
                              Polymers (11) and     Borides
                               Organic ``matrix''   Carbides
                               ``composites''.      Nitrides
                                                    Diamond-like carbon
                                                     (17)
C. Pack cementation (see A    Carbon-carbon,        Silicides
 above for out-of-pack         Ceramic and Metal    Carbides
 cementation) (10).            ``matrix''           Mixtures thereof (4)
                               ``composites''.
                              Titanium alloys (13)  Silicides
                                                    Aluminides
                                                    Alloyed aluminides
                                                     (2)
                              Refractory metals     Silicides
                               and alloys (8).      Oxides
D. Plasma spraying..........  ``Superalloys''.....  MCrAlX (5)
                                                    Modified zirconia
                                                     (12)
                                                    Mixtures thereof (4)
                                                    Abradable Nickel-
                                                     Graphite
                                                    Abradable materials
                                                     containing Ni-Cr-Al
                                                    Abradable
                                                    Al-Si-Polyester
                                                    Alloyed aluminides
                                                     (2)
                              Aluminum alloys (6).  MCrAIX (5)
                                                    Modified zirconia
                                                     (12)
                                                    Silicides
                                                    Mixtures thereof (4)

[[Page 668]]

 
                              Refractory metals     Aluminides
                               and alloys (8),      Silicides
                               Carbides, Corrosion  MCrAIX (5)
                               resistant steel (7). Modified zirconia
                                                     (12)
                                                    Mixtures thereof (4)
                              Titanium alloys (13)  Carbides
                                                    Aluminides
                                                    Silicides
                                                    Alloyed aluminides
                                                     (2)
                              Abradable, Nickel-    Abradable materials
                               Graphite.             containing Ni-Cr-Al
                                                    Abradable Al-Si-
                                                     Polyester
E. Slurry Deposition........  Refractory metals     Fused silicides
                               and alloys (8).      Fused aluminides
                                                     except for
                                                     resistance heating
                                                     elements
                              Carbon-carbon,        Silicides
                               Ceramic and Metal    Carbides
                               ``matrix''           Mixtures thereof (4)
                               ``composites''.
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-     Silicides
                               expansion glasses    Platinum
                               (14).                Mixtures thereof (4)
                                                    Dielectric layers
                                                     (15)
                                                    Diamond-like carbon
                                                     (17)
                              Titanium alloys (13)  Borides
                                                    Nitrides
                                                    Oxides
                                                    Silicides
                                                    Aluminides
                                                    Alloyed aluminides
                                                     (2)
                                                    Carbides
                              Carbon-carbon,        Silicides
                               Ceramic and Metal    Carbides
                               ``matrix''           Refractory metals
                               ``Composites''.      Mixtures thereof (4)
                                                    Dielectric layers
                                                     (15)
                                                    Boron nitride
                              Cemented tungsten     Carbides
                               carbide (16),        Tungsten
                               Silicon carbide      Mixtures thereof (4)
                               (18).                Dielectric layers
                                                     (15)
                                                    Boron nitride
                              Molybdenum and        Dielectric layers
                               Molybdenum alloys.    (15)
                              Beryllium and         Borides
                               Beryllium alloys.    Dielectric layers
                                                     (15)
                                                    Beryllium
                              Sensor window         Dielectric layers
                               materials (9).        (15)
                                                    Diamond-like carbon
                                                     (17)
                              Refractory metals     Aluminides
                               and alloys (8).      Silicides
                                                    Oxides
                                                    Carbides
G. Ion Implantation.........  High temperature      Additions of
                               bearing steels.       Chromium, Tantalum,
                                                     or Niobium
                                                     (Columbium)
                              Titanium alloys (13)  Borides
                                                    Nitrides
                              Beryllium and         Borides
                               Beryllium alloys.
                              Cemented tungsten     Carbides
                               carbide (16).        Nitrides
------------------------------------------------------------------------
1 The numbers in parenthesis refer to the Notes following this Table.


[[Page 669]]

                 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. The term `mixtures thereof' includes 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 in various proportions and combinations, except:
    a. CoCrAlY coatings which contain less than 22 weight percent of 
chromium, less than 7 weight percent of aluminum 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 aluminum 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 aluminum and 0.9 to 1.1 weight 
percent of yttrium.
    6. The term `aluminum 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 national standard 
steels.
    8. `Refractory metals and alloys' include 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, diamond, 
gallium phosphide, sapphire and the following metal halides: sensor 
window materials of more than 40 mm diameter for zirconium fluoride and 
hafnium fluoride.
    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) 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 only 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' 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 
carbide/nickel.
    17. ``Technology'' specially designed to deposit diamond-like carbon 
on any of the following is not controlled: magnetic disk drives and 
heads, equipment for the manufacture of disposables valves for faucets, 
acoustic diaphragms for speakers, engine parts for automobiles, cutting 
tools, punching-pressing dies, office automation equipment, microphones 
or medical devices.
    18. `Silicon carbide' does not include cutting and forming tool 
materials.
    19. Ceramic substrates, as used in this entry, does not include 
ceramic materials containing 5% by weight, or greater, clay or cement 
content, either as separate constituents or in combination.

    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.


[[Page 670]]


    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. Ion Assisted Resistive Heating PVD employs electrically resistive 
heating sources in combination with impinging ion beam(s) to produce a 
controlled and uniform flux of evaporated coating species;
    3. ``Laser'' Vaporization uses either pulsed or continuous wave 
``laser'' beams to vaporize 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.
    Note: This definition does not include random cathodic arc 
deposition with non-biased substrates.

    5. 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 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.
    c. 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.

    Note: 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.

    d. 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.

    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.

    e. 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.
    f. 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.

    g. 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

[[Page 671]]

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 coatings 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;
    4. Application of binders to promote adhesion;
    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;
    f. Control of composition;
    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;
    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 (measured as a 
function of wavelength):
    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 (CVD):
    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 (PVD):
    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;
    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;

[[Page 672]]

    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, UN.

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 1.
MT applies to ``technology'' for          MT Column 1.
 equipment controlled by 2B018 for MT
 reasons.
AT applies to entire entry..............  AT Column 1.
UN applies to entire entry..............  Rwanda.
------------------------------------------------------------------------

License Exceptions

CIV: N/A
TSR: Yes, except N/A for Rwanda

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 equipment or ``software'' controlled by 2B004, 
          2B009, 2B104, 2B105, 2B109, 2B116, 2B117, 2B119 to 2B122, 
          2D001, 2D002 or 2D101.

License Requirements

Reason for Control: MT, NP, AT

 
               Control(s)                         Country chart
 
MT applies to ``technology'' for items   MT Column 1
 controlled by 2B004, 2B009, 2B104,
 2B105, 2B109, 2B116, 2B117, 2B119 to
 2B122, 2D001, or 2D101 for MT reasons.
NP applies to ``technology'' for items   NP Column 1
 controlled by 2B004, 2B009, 2B104,
 2B109, 2B116, 2D001, 2D002 or 2D101
 for NP reasons.
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) This entry controls only ``technology'' for 2B009 
and 2B109 for spin forming machines combining the functions of spin 
forming and flow forming, and flow forming machines.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

2E201 ``Technology'' according to the General Technology Note for the 
          ``use'' of equipment or ``software'' controlled by 2A225, 
          2A226, 2B001, 2B006, 2B007.b, 2B007.c, 2B008, 2B201, 2B204, 
          2B206, 2B207, 2B209, 2B225 to 2B232, 2D002, 2D201 or 2D202. 

License Requirements

Reason for Control: NP, CB, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NP applies to entire entry, except       NP Column 1.
 2B008.
CB applies to ``technology'' for valves  CB Column 3.
 controlled by 2A226 that meet or
 exceed the technical parameters in
 2B350.g.
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 equipment controlled by 2A290, 2A291, 2A292, 2A293, 
          or 2B290. 

License Requirements

Reason for Control: NP, CB, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NP applies to entire entry.............  NP Column 2.
CB applies to ``technology'' for valves  CB Column 3.
 controlled by 2A292 that meet or
 exceed the technical parameters in
 2B350.g.
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

[[Page 673]]

Items: The list of items controlled is contained in the ECCN heading.

2E301 ``Technology'' according to the ``General Technology Note'' 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 Column1
 

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.

2E983 ``Technology'' specially designed or modified for the 
          ``development'', ``production'' or ``use'' of equipment 
          controlled by 2A983, or the ``development'' of software 
          controlled by 2D983.

License Requirements
Reason for Control: RS, AT

 
               Control(s)                          Country chart
 
RS applies to entire entry                RS 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.

2E991 ``Technology'' for the ``use'' of equipment controlled by 2B991, 
          2B993, 2B996, or 2B997.

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
Control(s).
    AT applies to entire entry. A license is required for items 
controlled by this entry to Cuba, Iran, Libya, and North Korea for anti-
terrorism reasons. The Commerce Country Chart is not designed to 
determine licensing requirements for this entry. See part 746 of the EAR 
for additional information on Cuba, Iran, and Libya. See Sec.  742.19 of 
the EAR for additional information on North Korea.

    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

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 controlled by this 
          CCL Category or in any other category in the CCL are 
          designated by the number EAR99.

                         Category 3--Electronics

                  A. Systems, Equipment and Components

    Note 1: The control status of equipment and components described in 
3A001 or 3A002, other than those described in 3A001.a.3 to 3A001.a.10 or 
3A001.a.12, which are specially designed for or which have the same 
functional characteristics as other equipment is determined by the 
control status of the other equipment.
    Note 2: The control status of integrated circuits described in 
3A001.a.3 to 3A001.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 3A001.a.9 and 
3A001.a.12. If the integrated circuit is a silicon-based ``microcomputer 
microcircuit'' or microcontroller microcircuit described in 3A001.a.3 
having an operand (data) word length of 8 bit or less, the control 
status of the integrated circuit is determined in 3A001.a.3.


[[Page 674]]


3A001 Electronic components, as follows (see List of Items Controlled).

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 when usable    MT Column 1
 in ``missiles''; and to 3A001.a.5.a
 when ``designed or modified'' for
 military use, hermetically sealed and
 rated for operation in the temperature
 range from below -54 [deg]C to above
 +125 [deg]C.
NP applies to pulse discharge            NP Column 1
 capacitors in 3A001.e.2 and
 superconducting solenoidal
 electromagnets in 3A001.e.3 that meet
 or exceed the technical parameters in
 3A201.a and 3A201.b, respectively.
AT applies to entire entry.............  AT Column 1
 


License Exceptions
LVS: N/A for MT or NP
Yes for:
    $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 for 3A001.a.1.b, a.2 to a.12, b.2, and b.8 (except for TWTAs 
exceeding 18 GHz).
CIV: Yes for 3A001.a.3.b, a.3.c, a.4, a.7, and a.11.

List of Items Controlled

Unit: Number.
Related Controls: (1.) The following commodities are under the export 
licensing authority of the Department of State, Office of Defense
    Trade Controls (22 CFR part 121) when ``space qualified'' and 
operating at frequencies higher than 31 GHz: helix tubes (traveling wave 
tubes (TWT)) defined in 3A001.b.1.a.4.c; microwave solid state 
amplifiers defined in 3A001.b.4.b; microwave ``assemblies'' defined in 
3A001.b.6; traveling wave tube amplifiers (TWTA) defined in 3A001.b.8; 
and derivatives thereof; 2.) ``Space qualified'' and radiation hardened 
photovoltaic arrays, as defined in 3A001.e.1.c, having silicon cells or 
having single, dual or triple junction solar cells that have gallium 
arsenide as one of the junctions, are subject to the export licensing 
authority of the Department of Commerce. All other ``space qualified'' 
and radiation hardened photovoltaic arrays defined in 3A001.e.1.c and 
spacecraft/satellite concentrators and batteries are under the export 
licensing authority of the Department of State, Office of Defense Trade 
Controls (22 CFR part 121). See also 3A101, 3A201, and 3A991
Related Definitions: For the purposes of integrated circuits in 
3A001.a.1, 5 x 10\3\ Gy(Si) = 5 x 10\5\ Rads (Si); 5 x 10\6\ Gy (Si)/s = 
5 x 10\8\ Rads (Si)/s. For purposes of photovoltaic arrays in 
3A001.e.1.c, an array predominately consists of: a substrate; solar 
cells having silicon cells or having single, dual, and or triple 
junction solar cells that have gallium arsenide as one of the junctions; 
coverglass; ultra-violet coating(s); and bonding agent(s). Spacecraft/
satellite: solar concentrators, power conditioners and or controllers, 
bearing and power transfer assembly, and or deployment hardware/systems 
are controlled under the export licensing authority of the Department of 
State, Office of Defense Trade Controls (22 CFR part 121).
Items:
    a. General purpose integrated circuits, as follows:
    Note 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.
    Note 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 any of the following:
    a.1.a. A total dose of 5 x 10 3 Gy (Si), or higher;
    a.1.b. A dose rate upset of 5 x 10 6 Gy (Si)/s, or 
higher; or
    a.1.c. A fluence (integrated flux) of neutrons (1 MeV equivalent) of 
5 x 10 13 n/cm2 or higher on silicon, or its 
equivalent for other materials;
    Note: 3A001.a.1.c does not apply to Metal Insulator Semiconductors 
(MIS).
    a.2. ``Microprocessor microcircuits'', ``microcomputer 
microcircuits'', microcontroller microcircuits, storage integrated 
circuits manufactured from a compound semiconductor, analog-to-digital 
converters, digital-to-analog converters, electro-optical or ``optical 
integrated circuits'' designed for ``signal processing'', field 
programmable logic devices, neural network integrated circuits, custom 
integrated circuits for which either the function is unknown or the 
control status of the equipment in which the integrated circuit will be 
used in unknown, Fast Fourier Transform (FFT) processors, electrical 
erasable programmable read-only memories (EEPROMs), flash memories or 
static random-access memories (SRAMs), having any of the following:
    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);

[[Page 675]]

    Note: 3A001.a.2 does not apply to integrated circuits for civil 
automobile or railway train applications.
    a.3. ``Microprocessor microcircuits'', ``micro-computer 
microcircuits'' and microcontroller microcircuits, having any of the 
following characteristics:
    Note: 3A001.a.3 includes digital signal processors, digital array 
processors and digital coprocessors.
    a.3.a. [Reserved]
    a.3.b. Manufactured from a compound semiconductor and operating at a 
clock frequency exceeding 40 MHz; or
    a.3.c. More than one data or instruction bus or serial communication 
port that provides a direct external interconnection between parallel 
``microprocessor microcircuits'' with a transfer rate exceeding 150 
Mbyte/s;
    a.4. 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 bit or more, but less than 12 bit, with a 
total conversion time of less than 5 ns;
    a.5.a.2. A resolution of 12 bit with a total conversion time of less 
than 20 ns;
    a.5.a.3. A resolution of more than 12 bit but equal to or less than 
14 bit with a total conversion time of less than 200 ns; or
    a.5.a.4. A resolution of more than 14 bit with a total conversion 
time of less than 1 [mu]s;
    a.5.b. Digital-to-analog converters with a resolution of 12 bit or 
more, and a ``settling time'' of less than 10 ns;
    Technical Note: 1. A resolution of n bit corresponds to a 
quantization of 2n levels.
    2. Total conversion time is the inverse of the sample rate.
    a.6. Electro-optical and ``optical integrated circuits'' designed 
for ``signal processing'' having all of the following:
    a.6.a. One or more than one internal ``laser'' diode;
    a.6.b. One or more than one internal light detecting element; and
    a.6.c. Optical waveguides;
    a.7. Field programmable logic devices having any of the following:
    a.7.a. An equivalent usable gate count of more than 30,000 (2 input 
gates);
    a.7.b. A typical ``basic gate propagation delay time'' of less than 
0.1 ns; or
    a.7.c. A toggle frequency exceeding 133 MHz;
    Note: 3A001.a.7 includes: Simple Programmable Logic Devices (SPLDs), 
Complex Programmable Logic Devices (CPLDs), Field Programmable Gate 
Arrays (FPGAs), Field Programmable Logic Arrays (FPLAs), and Field 
Programmable Interconnects (FPICs).
    N.B.: Field programmable logic devices are also known as field 
programmable gate or field programmable logic arrays.

    a.8. [Reserved]
    a.9. Neural network integrated circuits;
    a.10. Custom integrated circuits for which 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 1,000 terminals;
    a.10.b. A typical ``basic gate propagation delay time'' of less than 
0.1 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 3A001.a.10 and 3A001.a.12, based upon any compound 
semiconductor and having any of the following:
    a.11.a. An equivalent gate count of more than 3,000 (2 input gates); 
or
    a.11.b. A toggle frequency exceeding 1.2 GHz;
    a.12. Fast Fourier Transform (FFT) processors having a rated 
execution time for an N-point complex FFT of less than (N 
log2 N)/20,480 ms, where N is the number of points;
    Technical Note: When N is equal to 1,024 points, the formula in 
3A001.a.12 gives an execution time of 500 [mu]s.
    b. Microwave or millimeter wave components, as follows:
    b.1. Electronic vacuum tubes and cathodes, as follows:
    Note 1: 3A001.b.1 does not control tubes designed or rated for 
operation in any frequency band which meets all of the following 
characteristics:
    (a) Does not exceed 31 GHz; and
    (b) Is ``allocated by the ITU'' for radio-communications services, 
but not for radio-determination.
    Note 2: 3A001.b.1 does not control non-``space-qualified'' tubes 
which meet all the following characteristics:
    (a) An average output power equal to or less than 50 W; and
    (b) Designed or rated for operation in any frequency band which 
meets all of the following characteristics:
    (1) Exceeds 31 GHz but does not exceed 43.5 GHz; and
    (2) Is ``allocated by the ITU'' for radio-communications services, 
but not for radio-determination.
    b.1.a. Traveling wave tubes, pulsed or continuous wave, as follows:
    b.1.a.1. Operating at frequencies exceeding 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 a 
``fractional bandwidth'' of more than 7% or a peak power exceeding 2.5 
kW;

[[Page 676]]

    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. Being ``space qualified'';
    b.1.b. Crossed-field amplifier tubes with a gain of more than 17 dB;
    b.1.c. Impregnated cathodes designed for electronic tubes producing 
a continuous emission current density at rated operating conditions 
exceeding 5 A/cm2;
    b.2. Microwave integrated circuits or modules having all of the 
following:
    b.2.a. Containing ``monolithic integrated circuits'' having one or 
more active circuit elements; and
    b.2.b. Operating at frequencies above 3 GHz;
    Note 1: 3A001.b.2 does not control circuits or modules for equipment 
designed or rated to operate in any frequency band which meets all of 
the following characteristics:
    (a) Does not exceed 31 GHz; and
    (b) Is ``allocated by the ITU'' for radio-communications services, 
but not for radio-determination.
    Note 2: 3A001.b.2 does not control broadcast satellite equipment 
designed or rated to operate in the frequency range of 40.5 to 42.5 GHz.
    b.3. Microwave transistors rated for operation at frequencies 
exceeding 31 GHz;
    b.4. Microwave solid state amplifiers, having any of the following:
    b.4.a. Operating frequencies exceeding 10.5 GHz and an 
``instantaneous bandwidth'' of more than half an octave; or
    b.4.b. Operating 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 
[mu]s having any of the following:
    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% 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 limits 
stated therein;
    b.8. Microwave power amplifiers containing tubes controlled by 
3A001.b and having all of the following:
    b.8.a. Operating frequencies above 3 GHz;
    b.8.b. An average output power density exceeding 80 W/kg; and
    b.8.c. A volume of less than 400 cm3;
    Note: 3A001.b.8 does not control equipment designed or rated for 
operation in any frequency band which is ``allocated by the ITU'' for 
radio-communications services, but not for radio-determination.
    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 exceeding 1 GHz, but not exceeding 2.5 
GHz, and having any of the following:
    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 [mu]s and bandwidth in MHz) of more than 100;
    c.1.b.3. A bandwidth greater than 250 MHz; or
    c.1.b.4. A dispersive delay of more than 10 [mu]s; or
    c.1.c. A carrier frequency of 1 GHz or less, having any of the 
following:
    c.1.c.1. A product of the maximum delay time and the bandwidth (time 
in [mu]s and bandwidth in MHz) of more than 100;
    c.1.c.2. A dispersive delay of more than 10 [mu]s; or
    c.1.c.3. A frequency side-lobe rejection exceeding 55 dB and a 
bandwidth greater than 50 MHz;
    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 and 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. 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.2. Frequency selection at all frequencies using resonant circuits 
with Q-values exceeding 10,000;
    e. High energy devices, as follows:
    e.1. Batteries and photovoltaic arrays, as follows:

[[Page 677]]

    Note: 3A001.e.1 does not control batteries with volumes equal to or 
less than 27 cm\3\ (e.g., standard C-cells or R14 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 (copyright) 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 and solenoids specially 
designed to be fully charged or discharged in less than one second, 
having all of the following:
    Note: 3A001.e.3 does not control ``superconductive'' electromagnets 
or solenoids specially designed for Magnetic Resonance Imaging (MRI) 
medical equipment.
    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;
    f. Rotary input type shaft absolute position encoders having any 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, as follows (see List of 
Items Controlled).

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 Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

LVS: $3000: 3A002.a, .e, .f, .g; $5000: 3A002.b to .d
GBS: Yes for 3A002.a.1.; 3A002.b (synthesized output frequency of 2.6 
GHz or less and a ``frequency switching time'' of 0.3 ms or more); and 
3A002.d (synthesized output frequency of 2.6 GHz or less and a 
``frequency switching time'' of 0.3 ms or more)
CIV: Yes for 3A002.a.1 (provided all of the following conditions are 
met: (1) Bandwidths do not exceed: 4 MHz per track and have up to 28 
tracks or 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); 3A002.b (synthesized 
output frequency of 2.6 GHz or less; and a ``frequency switching time'' 
of 0.3 ms or more), 3A002.d (synthesized output frequency of 2.6 GHz or 
less; and a ``frequency switching time'' of 0.3 ms or more).

List of Items Controlled

Unit: Number.
Related Controls: ``Space qualified'' atomic frequency standards defined 
in 3A002.g.2 are subject to the export licensing authority of the 
Department of State, Office of Defense Trade Controls (22 CFR part 121). 
See also 3A292 and 3A992.
Related Definitions: Constant percentage bandwidth filters are also 
known as octave or fractional octave filters.
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;

[[Page 678]]

    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 IRIG or EIA documents, of less than  
0.1 [mu]s;
    Note: Analog magnetic tape recorders specially designed for civilian 
video purposes are not considered to be instrumentation tape recorders.
    a.2. Digital video magnetic tape recorders having a maximum digital 
interface transfer rate exceeding 360 Mbit/s;
    Note: 3A002.a.2 does not control digital video magnetic tape 
recorders specially designed for television recording using a signal 
format, which may include a compressed signal format, standardized or 
recommended by the ITU, the IEC, the SMPTE, the EBU, the ETSI, or the 
IEEE for civil television applications.
    a.3. Digital instrumentation magnetic tape data recorders employing 
helical scan techniques or fixed head techniques, having any of the 
following:
    a.3.a. A maximum digital interface transfer rate exceeding 175 Mbit/
s; or
    a.3.b. Being ``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, having 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 having all of the 
following:
    N.B.: See also 3A292.
    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 Gbit/s or more;
    Technical Note: For those instruments with a parallel bus 
architecture, the continuous throughput rate is 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.
    a.6. Digital instrumentation data recorders, using magnetic disk 
storage technique, having all of the following:
    a.6.a. Digitizing rate equal to or more than 100 million samples per 
second and a resolution of 8 bits or more; and
    a.6.b. A continuous throughput of 1 Gbit/s or more;
    b. ''Frequency synthesizer'', ``electronic assemblies'' having a 
``frequency switching time'' from one selected frequency to another of 
less than 1 ms;
    c. Radio frequency ``signal analyzers'', as follows:
    c.1. ``Signal analyzers'' capable of analyzing frequencies exceeding 
31.8 GHz but less than 37.5 GHz or exceeding 43.5 GHz;
    c.2. ``Dynamic signal analyzers'' having a ``real-time bandwidth'' 
exceeding 500 kHz;
    Note: 3A002.c.2 does not control those ``dynamic signal analyzers'' 
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 31.8 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 + 20 
log10F-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 
43.5 GHz;
    f. Microwave test receivers having all of the following:
    f.1. A maximum operating frequency exceeding 43.5 GHz; and
    f.2. Being capable of measuring amplitude and phase simultaneously;
    g. Atomic frequency standards having any of the following:
    g.1. Long-term stability (aging) less (better) than 1 x 
10-11/month; or
    g.2. Being ``space qualified''.
    Note: 3A002.g.1 does not control non- ``space qualified'' rubidium 
standards.

3A101 Electronic equipment, devices and components, other than those 
          controlled by 3A001, as follows (see List of Items 
          Controlled).

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

[[Page 679]]

Related Controls: Items controlled in 3A101.a 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:
    a. Analog-to-digital converters, usable in ``missiles'', designed to 
meet military specifications for ruggedized equipment;
    b. Accelerators capable of delivering electromagnetic radiation 
produced by bremsstrahlung from accelerated electrons of 2 MeV or 
greater, and systems containing those accelerators, usable for the 
``missiles'' or the subsystems of ``missiles''.
    Note: 3A101.b above does not include equipment specially designed 
for medical purposes.

3A201 Electronic components, other than those controlled by 3A001, as 
          follows (see List of Items Controlled).

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: (1) See ECCNs 3E001 (``development'' and 
``production'') and 3E201 (``use'') for technology for items controlled 
under this entry. (2) Also see 3A001.e.2 (capacitors) and 3A001.e.3 
(superconducting electromagnets). (3) Superconducting electromagnets 
specially designed or prepared for use in separating uranium isotopes 
are subject to the export licensing authority of the Nuclear Regulatory 
Commission (see 10 CFR part 110).
Related Definitions: N/A
Items:

    a. Pulse discharge capacitors having either of the following sets of 
characteristics:
    a.1. Voltage rating greater than 1.4 kV, energy storage greater than 
10 J, capacitance greater than 0.5 [mu]F, and series inductance less 
than 50 nH; or
    a.2. Voltage rating greater than 750 V, capacitance greater than 
0.25 [mu]F, and series inductance less than 10 nH;
    b. Superconducting solenoidal electromagnets having all of the 
following characteristics:
    b.1. Capable of creating magnetic fields greater than 2 T;
    b.2. A ratio of length to inner diameter greater than 2;
    b.3. Inner diameter greater than 300 mm; and
    b.4. Magnetic field uniform to better than 1% over the central 50% 
of the inner volume;
    Note: 3A201.b does not control magnets specially designed for and 
exported ``as parts of'' medical nuclear magnetic resonance (NMR) 
imaging systems. The phrase ``as part of'' does not necessarily mean 
physical part in the same shipment; separate shipments from different 
sources are allowed, provided the related export documents clearly 
specify that the shipments are dispatched ``as part of'' the imaging 
systems.
    c. Flash X-ray generators or pulsed electron accelerators having 
either of the following sets of characteristics:
    c.1. 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; 
or
    c.2. An accelerator peak electron energy of 25 MeV or greater, and a 
``peak power'' greater than 50 MW;
    Note: 3A201.c does not control accelerators that are component parts 
of devices designed for purposes other than electron beam or X-ray 
radiation (electron microscopy, for example) nor those designed for 
medical purposes.
    Technical Notes: (1) The ``figure of merit'' K is defined as: K = 
1.7 x 10\3\V2.65Q. V is the peak electron energy in million 
electron volts. If the accelerator beam pulse duration is less than or 
equal to 1 [mu]s, then Q is the total accelerated charge in Coulombs. If 
the accelerator beam pulse duration is greater than 1 [mu]s, then Q is 
the maximum accelerated charge in 1 [mu]s. Q equals the intergral of i 
with respect to t, over the lesser of 1 [mu]s or the time duration of 
the beam pulse Q= [int] idt), where i is beam current in amperes and t 
is time in seconds.
    (2) ``Peak power'' = (peak potential in volts) x (peak beam current 
in amperes).
    (3) In machines based on microwave accelerating cavities, the time 
duration of the beam pulse is the lesser of 1 [mu]s or the duration of 
the bunched beam packet resulting from one microwave modulator pulse.
    (4) In machines based on microwave accelerating cavities, the peak 
beam current is the average current in the time duration of a bunched 
beam packet.

3A225 Frequency changers (also known as converters or inverters) or 
          generators, other than those described in 0B001.c.11, having 
          all of the following characteristics (see List of Items 
          Controlled). 

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
 


[[Page 680]]

License Exceptions

LVS: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: (1) See ECCNs 3E001 (``development'' and 
``production'') and 3E201 (``use'') for technology for items controlled 
under this entry. (2) Frequency changers (also known as converters or 
inverters) specially designed or prepared for use in separating uranium 
isotopes are subject to the export licensing authority of the Nuclear 
Regulatory Commission (see 10 CFR part 110).
Related Definitions: N/A
Items: a. A multiphase output capable of providing a power of 40 W or 
more;

    b. Capable of operating in the frequency range between 600 and 2000 
Hz;
    c. Total harmonic distortion below 10%; and
    d. Frequency control better than 0.1%.

3A226 High-power direct current power supplies, other than those 
          described in 0B001.j.6, having both of the following 
          characteristics (see List of Items Controlled).

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) See ECCNs 3E001 (``development'' and 
``production'') and 3E201 (``use'') for technology for items controlled 
under this entry. (2) Also see ECCN 3A227. (3) Direct current power 
supplies specially designed or prepared for use in separating uranium 
isotopes are subject to the export licensing authority of the Nuclear 
Regulatory Commission (see 10 CFR part 110).
Related Definitions: N/A
Items:

    a. Capable of continuously producing, over a time period of 8 hours, 
100 V or greater with current output of 500 A or greater; and
    b. Current or voltage stability better than 0.1% over a time period 
of 8 hours.

3A227 High-voltage direct current power supplies, other than those 
          described in 0B001.j.5, having both of the following 
          characteristics (see List of Items Controlled). 

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) See ECCNs 3E001 (``development'' and 
``production'') and 3E201 (``use'') for technology for items controlled 
under this entry. (2) Also see ECCN 3A226. (3) Direct current power 
supplies specially designed or prepared for use in separating uranium 
isotopes are subject to the export licensing authority of the Nuclear 
Regulatory Commission (see 10 CFR part 110).
Related Definitions: N/A
Items:

    a. Capable of continuously producing, over a time period of 8 hours, 
20 kV or greater with current output of 1 A or greater; and
    b. Current or voltage stability better than 0.1% over a time period 
of 8 hours.

3A228 Switching devices, as follows (see List of Items Controlled).

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: (1) See ECCNs 3E001 (``development'' and 
``production'') and 3E201 (``use'') for technology for items controlled 
under this entry.
    (2) Also see ECCN 3A991.k.
Related Definitions: N/A
Items:

    a. Cold-cathode tubes, whether gas filled or not, operating 
similarly to a spark gap, having all of the following characteristics:
    a.1. Containing three or more electrodes;
    a.2. Anode peak voltage rating of 2.5 kV or more;
    a.3. Anode peak current rating of 100 A or more; and
    a.4. Anode delay time of 10 [mu]s or less.

[[Page 681]]

    Technical Note: 3A228.a includes gas krytron tubes and vacuum 
sprytron tubes.
    b. Triggered spark-gaps having both of the following 
characteristics:
    b.1. An anode delay time of 15 [mu]s or less; and
    b.2. 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 kV;
    c.2. Anode peak current rating of 500 A or more; and
    c.3. Turn-on time of 1 [mu]s or less.

3A229 Firing sets and equivalent high-current pulse generators (for 
          detonators controlled by 3A232), as follows (see List of Items 
          Controlled).

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: (1) See ECCNs 3E001 (``development'' and 
``production'') and 3E201 (``use'') for technology for items controlled 
under this entry. (2) High explosives and related equipment 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).
Related Definitions: In 3A229.b.5, ``rise time'' is defined as the time 
interval from 10% to 90% current amplitude when driving a resistive 
load.
ECCN Controls: 3A229.b includes xenon flash-lamp drivers.
Items:

    a. Explosive detonator firing sets designed to drive multiple 
controlled detonators controlled by 3A232;
    b. Modular electrical pulse generators (pulsers) having all of the 
following characteristics:
    b.1. Designed for portable, mobile, or ruggedized use;
    b.2. Enclosed in a dust-tight enclosure;
    b.3. Capable of delivering their energy in less than 15 [mu]s;
    b.4. Having an output greater than 100 A;
    b.5. Having a ``rise time'' of less than 10 [mu]s into loads of less 
than 40 ohms;
    b.6. No dimension greater than 254 mm;
    b.7. Weight less than 25 kg; and
    b.8. 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 
applications.

3A230 High-speed pulse generators having both of the following 
          characteristics (see List of Items Controlled). 

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: See ECCNs 3E001 (``development'' and ``production'') 
and 3E201 (``use'') for technology for items controlled under this 
entry.
Related Definitions: In 3A230.b, ``pulse transition time'' is defined as 
the time interval between 10% and 90% voltage amplitude.
Items:
a. Output voltage greater than 6 V into a resistive load of less than 55 
ohms; and
b. ``Pulse transition time'' less than 500 ps.

3A231 Neutron generator systems, including tubes, having both of the 
          following characteristics (see List of Items Controlled). 

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: See ECCNs 3E001 (``development'' and ``production'') 
and 3E201 (``use'') for technology for items controlled under this 
entry.
Related Definitions: N/A
Items:

    a. Designed for operation without an external vacuum system; and
    b. Utilizing electrostatic acceleration to induce a tritium-
deuterium nuclear reaction.


[[Page 682]]


3A232 Detonators and multipoint initiation systems, as follows (see List 
          of Items Controlled).

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: (1) See ECCNs 3E001 (``development'' and 
``production'') and 3E201 (``use'') for technology for items controlled 
under this entry. (2) High explosives and related equipment 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).
Related Definitions: N/A
ECCN Controls: This entry does not control detonators using only primary 
explosives, such as lead azide.
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 explosive surface over an area greater 
than 5,000 mm\2\ from a single firing signal with an initiation timing 
spread over the surface of less than 2.5 [mu]s.
    Technical Note: The detonators controlled by this entry all utilize 
a small electrical conductor (bridge, bridge wire 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 a magnetic 
force. The term exploding foil detonator may refer to either a EB or a 
slapper-type detonator. Also, the word initiator is sometimes used in 
place of the word detonator.

3A233 Mass spectrometers, other than those described in 0B002.g, 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: (1) See ECCNs 3E001 (``development'' and 
``production'') and 3E201 (``use'') for technology for items controlled 
under this entry. (2) Mass spectrometers specially designed or prepared 
for analyzing on-line samples of UF6 gas streams are subject 
to the export licensing authority of the Nuclear Regulatory Commission 
(see 10 CFR part 110).
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, lined with or plated with materials resistant 
to UF6;
    e. Molecular beam mass spectrometers having either of the following 
characteristics:
    e.1. A source chamber constructed from, lined with or plated with 
stainless steel or molybdenum and equipped with a cold trap capable of 
cooling to 193 K (-80 [deg]C) or less; or
    e.2. A source chamber constructed from, lined with or plated with 
materials resistant to UF6;
    f. Mass spectrometers equipped with a microfluorination ion source 
designed for actinides or actinide fluorides.

3A292 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 2
AT applies to entire entry.............  AT Column 1
 

License Exceptions

LVS: N/A
GBS: N/A

[[Page 683]]

CIV: N/A

List of Items Controlled

Unit: Number
Related Controls: See ECCN 3E292 (``development'', ``production'', and 
``use'') for technology for items controlled under this entry.
Related Definitions: ``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.
Items: a. Non-modular analog oscilloscopes having a bandwidth of 1 GHz 
or greater;

    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 single-shot inputs 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.

    Note: Specially designed components controlled by 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.

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.

3A991 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 Requirements Notes

    1. Microprocessors with a CTP below 550 MTOPS listed in paragraphs 
(a)(2) or (a)(3) of this entry may be shipped NLR (No License Required) 
when destined to North Korea, provided restrictions set forth in other 
sections of the EAR (e.g., end-use restrictions), do not apply.
    2. See 744.17 of the EAR for additional license requirements for 
commodities classified as 3A991.a.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 any of the 
following:
    a.1. A ``composite theoretical performance'' (``CTP'') of 6,500 
million theoretical operations per second (MTOPS) or more and an 
arithmetic logic unit with an access width of 32 bit or more;

[[Page 684]]

    a.2. A clock frequency rate exceeding 25 MHz; or
    a.3. More than one data or instruction bus or serial communication 
port that provides a direct external interconnection between parallel 
``microprocessor microcircuits'' with a transfer rate of 2.5 Mbyte/s.
    b. Storage integrated circuits, as follows:
    b.1. Electrical erasable programmable read-only memories (EEPROMs) 
with a storage capacity;
    b.1.a. Exceeding 16 Mbits per package for flash memory types; or
    b.1.b. Exceeding either of the following limits for all other EEPROM 
types:
    b.1.b.1. Exceeding 1 Mbit per package; or
    b.1.b.2. 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. Analog-to-digital converters having any of the following:
    c.1. A resolution of 8 bit or more, but less than 12 bit, with a 
total conversion time of less than 10 ns;
    c.2. A resolution of 12 bit with a total conversion time of less 
than 200 ns;
    c.3. A resolution of more than 12 bit but equal to or less than 14 
bit with a total conversion time of less than 2 [mu]s; or
    c.4. A resolution of more than 14 bit with a total conversion time 
of less than 2 [mu]s;
    d. Field programmable logic devices having either of the following:
    d.1. An equivalent gate count of more than 5000 (2 input gates); or
    d.2. A toggle frequency exceeding 100 MHz;
    e. Fast Fourier Transform (FFT) processors having a rated execution 
time for a 1,024 point complex FFT of less than 1 ms.
    f. 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:
    f.1. More than 144 terminals; or
    f.2. A typical ``basic propagation delay time'' of less than 0.4 ns.
    g. Traveling wave tubes, pulsed or continuous wave, as follows:
    g.1. Coupled cavity tubes, or derivatives thereof;
    g.2. Helix tubes, or derivatives thereof, with any of the following:
    g.2.a. An ``instantaneous bandwidth'' of half an octave or more; and
    g.2.b. The product of the rated average output power (expressed in 
kW) and the maximum operating frequency (expressed in GHz) of more than 
0.2;
    g.2.c. An ``instantaneous bandwidth'' of less than half an octave; 
and
    g.2.d. The product of the rated average output power (expressed in 
kW) and the maximum operating frequency (expressed in GHz) of more than 
0.4;
    h. Flexible waveguides designed for use at frequencies exceeding 40 
GHz;
    i. Surface acoustic wave and surface skimming (shallow bulk) 
acoustic wave devices (i.e., ``signal processing'' devices employing 
elastic waves in materials), having either of the following:
    i.1. A carrier frequency exceeding 1 GHz; or
    i.2. A carrier frequency of 1 GHz or less; and
    i.2.a. A frequency side-lobe rejection exceeding 55 Db;
    i.2.b. A product of the maximum delay time and bandwidth (time in 
microseconds and bandwidth in MHz) of more than 100; or
    i.2.c. A dispersive delay of more than 10 microseconds.
    j. Batteries, as follows:
    Note: 3A991.j does not control batteries with volumes equal to or 
less than 27 cm3 (e.g., standard C-cells or UM-2 batteries).
    j.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);
    j.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 (copyright) 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.
    k. ``Superconductive'' electromagnets or solenoids specially 
designed to be fully charged or discharged in less than one minute, 
having all of the following:
    Note: 3A991.k does not control ``superconductive'' electromagnets or 
solenoids designed for Magnetic Resonance Imaging (MRI) medical 
equipment.
    k.1. Maximum energy delivered during the discharge divided by the 
duration of the discharge of more than 500 kJ per minute;
    k.2. Inner diameter of the current carrying windings of more than 
250 mm; and
    k.3. Rated for a magnetic induction of more than 8T or ``overall 
current density'' in the winding of more than 300 A/mm2.
    l. 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 685]]

    1.1. Resonant operating frequencies exceeding 1 MHz;
    1.2. A stored energy density of 1 MJ/M3 or more; and
    1.3. A discharge time of less than 1 ms;
    m. Hydrogen/hydrogen-isotope thyratrons of ceramic-metal 
construction and rate for a peak current of 500 A or more;
    n. Digital integrated circuits based on any compound semiconductor 
having an equivalent gate count of more than 300 (2 input gates).

3A992 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: $1000 for Syria for .a only
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number
Related Controls: N/A
Related Definitions: N/A
Items: a. Electronic test equipment, n.e.s.

    b. Digital instrumentation magnetic tape data recorders having any 
of the following characteristics;
    b.1. A maximum digital interface transfer rate exceeding 60 Mbit/s 
and employing helical scan techniques;
    b.2. A maximum digital interface transfer rate exceeding 120 Mbit/s 
and employing fixed head techniques; or
    b.3. ``Space qualified'';
    c. Equipment, 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;

3A999 Specific Processing Equipment, n.e.s., as Follows (See List of 
          Items Controlled).

License Requirements

Reason for Control: AT.
Control(s).
Country Chart.
    AT applies to entire entry. A license is required for items 
controlled by this entry to North Korea for anti-terrorism reasons. The 
Commerce Country Chart is not designed to determine AT licensing 
requirements for this entry. See Sec.  742.19 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: See also 0B002, 3A225 (for frequency changes capable 
of operating in the frequency range of 600 Hz and above), 3A233.
Related Definitions: N/A.
Items:
    a. Frequency changers capable of operating in the frequency range 
from 300 up to 600 Hz, n.e.s;
    b. Mass spectrometers n.e.s;
    c. All flash x-ray machines, and components of pulsed power systems 
designed thereof, including Marx generators, high power pulse shaping 
networks, high voltage capacitors, and triggers;
    d. Pulse amplifiers, n.e.s.;
    e. Electronic equipment for time delay generation or time interval 
measurement, as follows:
    e.1. Digital time delay generators with a resolution of 50 
nanoseconds or less over time intervals of 1 microsecond or greater; or
    e.2. Multi-channel (three or more) or modular time interval meter 
and chronometry equipment with resolution of 50 nanoseconds or less over 
time intervals of 1 microsecond or greater;
    f. Chromatography and spectrometry analytical instruments.

              B. Test, Inspection and Production Equipment

3B001 Equipment for the manufacturing of semiconductor devices or 
          materials, as follows (see List of Items Controlled), 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 Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions
LVS: $500
GBS: ``Yes, except 3B001. a.2 (metal organic chemical vapor deposition 
reactors), a.3 (molecular beam epitaxial growth equipment using gas 
sources), e (automatic loading multi-chamber central wafer handling 
systems only if connected to equipment controlled by 3B001.a.2 and a.3, 
and f), or f (lithography equipment).
CIV: Yes for equipment controlled by 3B001.a.1
List of Items Controlled
Unit: Number.
Related Controls: See also 3B991.
Related Definitions: N/A.
Items:

[[Page 686]]

    a. ``Stored program controlled'' equipment designed for epitaxial 
growth, as follows:
    a.1. Equipment capable of producing a layer thickness uniform to 
less than 2.5% across a distance of 75 mm or more;
    a.2. Metal organic chemical vapor deposition (MOCVD) reactors 
specially designed for compound semiconductor crystal growth by the 
chemical reaction between materials controlled by 3C003 or 3C004;
    a.3. Molecular beam epitaxial growth equipment using gas or solid 
sources;
    b. ``Stored program controlled'' equipment designed for ion 
implantation, having any of the following:
    b.1. A beam energy (accelerating voltage) exceeding 1MeV;
    b.2. Being specially designed and optimized to operate at a beam 
energy (accelerating voltage of less than 2 keV;
    b.3. Direct write capability; or
    b.4. Being capable of high energy oxygen implant into a heated 
semiconductor material ``substrate'';
    c. ``Stored program controlled'' anisotropic plasma dry etching 
equipment, as follows:
    c.1. Equipment with cassette-to-cassette operation and load-locks, 
and having any of the following:
    c.1.a. Designed or optimized to produce critical dimensions of 0.3 
[mu]m or less with 5% 3 sigma precision; or
    c.1.b. Designed for generating less than 0.04 particles/cm\2\ with a 
measurable particle size greater than 0.1 [mu]m in diameter;
    c.2. Equipment specially designed for equipment controlled by 
3B001.e. and having any of the following:
    c.2.a. Designed or optimized to produce critical dimensions of 0.3 
[mu]m or less with 5% 3 sigma precision; or
    c.2.b. Designed for generating less than 0.04 particles/cm\2\ with a 
measurable particle size greater than 0.1 [mu]m in diameter;
    d. ``Stored program controlled'' plasma enhanced CVD equipment, as 
follows:
    d.1. Equipment with cassette-to-cassette operation and load-locks, 
and having any of the following:
    d.1.a. Designed or optimized to produce critical dimensions of 0.3 
[mu]m or less with 5% 3 sigma precision; or
    d.1.b. Designed for generating less than 0.04 particles/cm\2\ with a 
measurable particle size greater than 0.1 [mu]m in diameter;
    d.2. Equipment specially designed for equipment controlled by 
3B001.e. and having any of the following:
    d.2.a. Designed or optimized to produce critical dimensions of 0.3 
[mu]m or less with 5% 3 sigma precision; or
    d.2.b. Designed for generating less than 0.04 particles/cm\2\ with a 
measurable particle size greater than 0.1 [mu]m in diameter;
    e. ``Stored program controlled'' automatic loading multi-chamber 
central wafer handling systems, having all of the following:
    e.1. Interfaces for wafer input and output, to which more than two 
pieces of semiconductor processing equipment are to be connected; and
    e.2. Designed to form an integrated system in a vacuum environment 
for sequential multiple wafer processing;
    Note: 3B001.e. does not control automatic robotic wafer handling 
systems not designed to operate in a vacuum environment.
    f. ``Stored program controlled'' lithography equipment, as follows:
    f.1. Align and expose step and repeat (direct step on wafer) or step 
and scan (scanner) equipment for wafer processing using photo-optical or 
X-ray methods, having any of the following:
    f.1.a. A light source wavelength shorter than 350 nm; or
    f.1.b. Capable of producing a pattern with a minimum resolvable 
feature size of 0.35 [mu]m or less;
    Technical Note: The minimum resolvable feature size is calculated by 
the following formula:

[GRAPHIC] [TIFF OMITTED] TR10DE03.000

Where the K factor = 0.7.

MRF = minimum resolvable feature size.

    f.2. Equipment specially designed for mask making or semiconductor 
device processing using deflected focused electron beam, ion beam or 
``laser'' beam, having any of the following:
    f.2.a. A spot size smaller than 0.2 [mu]m;
    f.2.b. Being capable of producing a pattern with a feature size of 
less than 1 [mu]m; or
    f.2.c. An overlay accuracy of better than 0.20 
[mu]m (3 sigma);
    g. Masks and reticles designed for integrated circuits controlled by 
3A001;
    h. Multi-layer masks with a phase shift layer.

3B002 ``Stored Program Controlled'' Test Equipment, Specially Designed 
          for Testing Finished or Unfinished Semiconductor Devices, As 
          Follows (See List of

[[Page 687]]

          Items Controlled), 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: $500
GBS: Yes
CIV: N/A

List of Items Controlled

Unit: Number.
Related Controls: See also 3B992.
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 333 MHz;
    Note: 3B002.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. Uncontrolled electronic components, ``electronic assemblies'' or 
integrated circuits;
    3. Memories.
    Technical Note: For purposes of 3B002.b, pattern rate is defined as 
the maximum frequency of digital operation of a tester. It is therefore 
equivalent to the highest data rate that a tester can provide in non-
multiplexed mode. It is also referred to as test speed, maximum digital 
frequency or maximum digital speed.
    c. For testing microwave integrated circuits controlled by 
3A001.b.2.

3B991 Equipment not controlled by 3B001 for the manufacture 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: `Sputtering' is 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.)
    Items: a. Equipment specially designed for the manufacture of 
electron tubes, optical elements and specially designed components 
therefor controlled by 3A001 or 3A991;
    b. Equipment specially designed for the manufacture of semiconductor 
devices, integrated circuits and ``electronic 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 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 m\2\ per minute;
    b.1.c.2. ``Stored program 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 2.5x10\5\ 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%; or
    b.1.d.2. Rotation of individual wafers during processing;
    b.1.e. Molecular beam epitaxial growth equipment;

[[Page 688]]

    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. Beam energy (accelerating voltage) exceeding 200 keV;
    b.1.g.3. Optimized to operate at a beam energy (accelerating 
voltage) of less than 10 keV; or
    b.1.g.4. 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
    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:

[[Page 689]]

    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 or X-ray methods, including both projection image transfer 
equipment and step and repeat (direct step on wafer) or step and scan 
(scanner) 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);
    b.2.f.3. Machine-to-machine overlay no better than  0.3 micrometer; or
    b.2.f.4. A light source wavelength shorter than 400 nm;
    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 focused, deflected-beam systems (direct write systems), 
see 3B991.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. Equipment for the assembly of integrated circuits, as follows:
    b.3.a. ``Stored program controlled'' die bonders having all of the 
following characteristics:
    b.3.a.1. Specially designed for ``hybrid integrated circuits'';
    b.3.a.2. X-Y stage positioning travel exceeding 37.5 x 37.5 mm; and
    b.3.a.3. Placement accuracy in the X-Y plane of finer than  10 micrometer;
    b.3.b. ``Stored program controlled'' equipment for producing 
multiple bonds in a single operation (e.g., beam lead bonders, chip 
carrier bonders, tape bonders);
    b.3.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.3 does not control general purpose resistance type 
spot welders.
    b.4. 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.

3B992 Equipment not controlled by 3B002 for the inspection 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 inspection or testing of 
electron tubes, optical elements and specially designed components 
therefor controlled by 3A001 or 3A991;
    b. Equipment specially designed for the inspection or testing of 
semiconductor devices, integrated circuits and ``electronic 
assemblies'', as follows, and systems incorporating

[[Page 690]]

or having the characteristics of such equipment:
    Note: 3B992.b also controls equipment used or modified for use in 
the inspection or testing of other devices, such as imaging devices, 
electro-optical devices, acoustic-wave devices.
    b.1. ``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: 3B992.b.1 does not control general purpose scanning electron 
microscopes, except when specially designed and instrumented for 
automatic pattern inspection.
    b.2. Specially designed ``stored program controlled'' measuring and 
analysis equipment, as follows:
    b.2.a. Specially designed for the measurement of oxygen or carbon 
content in semiconductor materials;
    b.2.b. Equipment for line width measurement with a resolution of 1 
micrometer or finer;
    b.2.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.3. ``Stored program controlled'' wafer probing equipment having 
any of the following characteristics:
    b.3.a. Positioning accuracy finer than 3.5 micrometer;
    b.3.b. Capable of testing devices having more than 68 terminals; or
    b.3.c. Capable of testing at a frequency exceeding 1 GHz;
    b.4. Test equipment as follows:
    b.4.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.4.b. ``Stored program controlled'' equipment specially designed 
for testing integrated circuits and ``electronic assemblies'' thereof, 
capable of functional testing:
    b.4.b.1. At a pattern rate exceeding 20 MHz; or
    b.4.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: 3B992.b.4.b does not control equipment specially designed for 
testing integrated circuits not controlled by 3A001 or 3A991.
    Notes: 1. 3B992.b.4.b does not control test equipment specially 
designed for testing ``assemblies'' or a class of ``electronic 
assemblies'' for home and entertainment applications.
    2. 3B992.b.4.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.4.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.4.c.1. Using scanning light spot diameters of less than 0.12 mm;
    b.4.c.2. Designed for measuring photosensitive performance 
parameters and for evaluating frequency response, modulation transfer 
function, uniformity of responsivity or noise; or
    b.4.c.3. Designed for evaluating arrays capable of creating images 
with more than 32 x 32 line elements;
    b.5. Electron beam test systems designed for operation at 3 keV or 
below, or ``laser'' beam systems, for non-contactive probing of powered-
up semiconductor devices having any of the following:
    b.5.a. Stroboscopic capability with either beam blanking or detector 
strobing;
    b.5.b. An electron spectrometer for voltage measurements with a 
resolution of less than 0.5 V; or
    b.5.c. Electrical tests fixtures for performance analysis of 
integrated circuits;
    Note: 3B992.b.5 does not control scanning electron microscopes, 
except when specially designed and instrumented for non-contactive 
probing of a powered-up semiconductor device.
    b.6. ``Stored program controlled'' multifunctional focused ion beam 
systems specially designed for manufacturing, repairing, physical layout 
analysis and testing of masks or semiconductor devices and having either 
of the following characteristics:
    b.6.a. Target-to-beam position feedback control precision of 1 
micrometer or finer; or
    b.6.b. Digital-to-analog conversion accuracy exceeding 12 bit;
    b.7. Particle measuring systems employing ``lasers'' designed for 
measuring particle size and concentration in air having both of the 
following characteristics:
    b.7.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.7.b. Capable of characterizing Class 10 clean air or better.

                              C. Materials

3C001 Hetero-epitaxial materials consisting of a ``substrate'' having 
          stacked epitaxially grown multiple layers of any

[[Page 691]]

          of the following (see List of Items Controlled).

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: This entry does not control equipment or material 
whose functionality has been unalterably disabled are not controlled.
Related Definitions: 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 (e.g., gallium 
arsenide, gallium-aluminium arsenide, indium phosphide).
Items:
    a. Silicon;
    b. Germanium;
    c. Silicon Carbide; or
    d. III/V compounds of gallium or indium.

3C002 Resist material 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 positive resists not optimized for photolithography at a 
wavelength of less than 365 nm, provided that they are not controlled by 
3C002.b through .d.
CIV: Yes for positive resists not optimized for photolithography at a 
wavelength of less than 365 nm, provided that they are not controlled by 
3C002.b through .d.

List of Items Controlled
Unit: $ value
Related Controls: N/A
Related Definitions: Silylation techniques are defined as processes 
incorporating oxidation of the resist surface to enhance performance for 
both wet and dry developing.
Items:
    a. Positive resists designed for semiconductor lithography specially 
adjusted (optimized) for use at wavelengths below 350 nm;
    b. All resists designed for use with electron beams or ion beams, 
with a sensitivity of 0.01 [mu]coulomb/mm \2\ or better;
    c. All resists designed for use with X-rays, with a sensitivity of 
2.5 mJ/mm \2\ or better;
    d. All resists optimized for surface imaging technologies, including 
silylated resists.

3C003 Organo-inorganic compounds, as follows (see List of Items 
          Controlled).

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: 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.
Related Definition: N/A
Items: a. Organo-metallic compounds of aluminium, gallium or indium 
having a purity (metal basis) better than 99.999%;

    b. Organo-arsenic, organo-antimony and organo-phosphorus compounds 
having a purity (inorganic element basis) better than 99.999%.

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: N/A
Items:
    The list of items controlled is contained in the ECCN heading.
    Note: This entry does not control hydrides containing 20% molar or 
more of inert gases or hydrogen.

3C992 Positive resists designed for semiconductor lithography specially 
          adjusted (optimized) for use at wavelengths between 370 and 
          350 nm.

[[Page 692]]

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

3D001 ``Software'' specially designed for the ``development'' or 
          ``production'' of equipment controlled by 3A001.b to 3A002.g 
          or 3B (except 3B991 and 3B992).

License Requirements

Reason for Control: NS, AT

 
               Control(s)                         Country Chart
 
NS applies to ``software'' for           NS Column 1
 equipment controlled by 3A001.b to
 3A001.f, 3A002, and 3B.
AT applies to entire entry.............  AT Column 1
 

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

CIV: N/A
TSR: Yes, except for ``software'' specially designed for the 
``development'' or ``production'' of Traveling Wave Tube Amplifiers 
described in 3A001.b.8 having operating frequencies exceeding 18 GHz.

List of Items Controlled

Unit: $ value.
Related Controls: ``Software'' specially designed for the 
``development'' or ``production'' of the following equipment is under 
the export licensing authority of the Department of State, Office of 
Defense Trade Controls (22 CFR part 121): (a) When operating at 
frequencies higher than 31 GHz and ``space qualified'': Helix tubes 
(traveling wave tubes (TWT)) defined in 3A001.b.1.a.4.c; microwave solid 
state amplifiers defined in 3A001.b.4.b; microwave ``assemblies'' 
defined in 3A001.b.6; and traveling wave tube amplifiers (TWTA) defined 
in 3A001.b.8; (b) ``Space qualified'' and radiation hardened 
photovoltaic arrays defined in 3A001.e.1.c (i.e., not having silicon 
cells or single, dual or triple junction solar cells that have gallium 
arsenide as one of the junctions), spacecraft/satellite solar 
concentrators and batteries; and (c) ``Space qualified'' atomic 
frequency standards defined in 3A002.g.2. See also 3D101
Related Definitions: For purposes of photovoltaic arrays in 3A001.e.1.c, 
an array predominately consists of: a substrate; solar cells having 
silicon cells or having single, dual, and or triple junction solar cells 
that have gallium arsenide as one of the junctions; coverglass; ultra-
violet coating(s); and bonding agent(s). Spacecraft/satellite: solar 
concentrators, power conditioners and or controllers, bearing and power 
transfer assembly, and or deployment hardware/systems are controlled 
under the export licensing authority of the Department of State, Office 
of Defense Trade Controls (22 CFR part 121).
Items: The list of items controlled is contained in the ECCN heading.

3D002 ``Software'' specially designed for the ``use'' of ``stored 
          program controlled'' equipment controlled by 3B (except 3B991 
          and 3B992).

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'', Having all of the 
          Following (See List of Items Controlled)

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: 3D003 does not control ``software'' specially designed 
for schematic entry, logic simulation, placing and routing, layout 
verification or pattern generation tape.
Related Definitions: (1.) Libraries, design attributes or associated 
data for the design of semiconductor devices or integrated circuits are 
considered as ``technology''. (2.) A

[[Page 693]]

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.
Items:
    a. Designed for the ``development'' of semiconductor devices or 
integrated circuits; and
    b. Designed to perform or use any of the following:
    b.1. Design rules or circuit verification rules;
    b.2. Simulation of the physically laid out circuits; or
    b.3. Lithographic processing simulators for design.

3D101 ``Software'' specially designed or modified for the ``use'' of 
          equipment 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, AT

 
               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.

3D991 ``Software'' specially designed for the ``development'', 
          ``production'', or ``use'' of electronic devices or components 
          controlled by 3A991, general purpose electronic equipment 
          controlled by 3A992, or manufacturing and test equipment 
          controlled by 3B991 and 3B992.

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 equipment or materials 
          controlled by 3A (except 3A292, 3A980, 3A981, 3A991 or 3A992), 
          3B (except 3B991 or 3B992) or 3C. 

License Requirements

Reason for Control: NS, MT, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to ``technology'' for items   NS Column 1.
 controlled by 3A001, 3A002, 3B001,
 3B002, or 3C001 to 3C004.
MT applies to ``technology'' for         MT Column 1.
 equipment controlled by 3A001 or 3A101
 for MT reasons.
NP applies to ``technology'' for         NP Column 1.
 equipment controlled by 3A001, 3A201,
 or 3A225 to 3A233 for NP reasons.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

    License Requirement Note: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

CIV: N/A
TSR: Yes, except N/A for MT, and ``technology'' specially designed for 
the ``development'' or ``production'' of Traveling Wave Tube Amplifiers 
described in 3A001.b.8 having operating frequencies exceeding 18 GHz.

List of Items Controlled

Unit: N/A
Related Controls: (1.) See also 3E101 and 3E201. (2.) 3E001 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 all of the 
following: 1. Using ``technology'' of 0.7 micrometer or more, AND 2. Not 
incorporating multi-layer

[[Page 694]]

structures. (3.) The term multi-layer structures in this entry does not 
include devices incorporating a maximum of two metal layers and two 
polysilicon layers. (4.) ``Technology'' according to the General 
Technology Note for the ``development'' or ``production'' of the 
following commodities is under the export licensing authority of the 
Department of State, Office of Defense Trade Controls (22 CFR part 121): 
(a) When operating at frequencies higher than 31 GHz and ``space 
qualified'': helix tubes (traveling wave tubes (TWT)) defined in 
3A001.b.1.a.4.c; microwave solid state amplifiers defined in 
3A001.b.4.b; microwave ``assemblies'' defined in 3A001.b.6; or traveling 
wave tube amplifiers (TWTA) defined in 3A001.b.8; (b) ``Space 
qualified'' and radiation hardened photovoltaic arrays defined in 
3A001.e.1.c (i.e., not having silicon cells or single, dual or triple 
junction solar cells that have gallium arsenide as one of the 
junctions), and spacecraft/satellite solar concentrators and batteries; 
and (b) ``Space qualified'' atomic frequency standards defined in 
3A002.g.2.
    Related Definition: For purposes of photovoltaic arrays in 
3A001.e.1.c, an array predominately consists of: a substrate; solar 
cells having silicon cells or having single, dual, and or triple 
junction solar cells that have gallium arsenide as one of the junctions; 
coverglass; ultra-violet coating(s); and bonding agent(s). Spacecraft/
satellite: solar concentrators, power conditioners and or controllers, 
bearing and power transfer assembly, and or deployment hardware/systems 
are controlled under the export licensing authority of the Department of 
State, Office of Defense Trade Controls (22 CFR part 121).
Items:
    The list of items controlled is contained in the ECCN heading.
    Note: 3E001 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 all 
of the following:
    (b.1) Using ``technology'' of 0.5 [mu]m or more; and
    (b.2) Not incorporating multi-layer structures.
    Technical Note: The term multi-layer structures in Note b.2 does not 
include devices incorporating a maximum of three metal layers and three 
polysilicon layers.

3E002 ``Technology'' according to the General Technology Note other than 
          that controlled in 3E001 for the ``development'' or 
          ``production'' of ``microprocessor microcircuits'', ``micro-
          computer microcircuits'' and microcontroller microcircuits 
          having a ``composite theoretical performance'' (``CTP'') of 
          530 million theoretical operations per second (MTOPS) or more 
          and an arithmetic logic unit with an access width of 32 bits 
          or more.
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.
    Note: 3E002 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 all 
of the following:
    (b.1) Using ``technology'' of 0.5 [mu]m or more; and
    (b.2) Not incorporating multi-layer structures.
    Technical Note: The term multi-layer structures in Note b.2 does not 
include devices incorporating a maximum of three metal layers and three 
polysilicon layers.

3E003 Other ``Technology'' for the ``Development'' or ``Production'' of 
          Items Described in the List of Items Controlled
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 .f. and .g
List of Items Controlled

Unit: N/A.
Related Controls: (1) Technology for the ``development'' or 
``production'' of ``space qualified'' electronic vacuum tubes operating 
at frequencies of 31 GHz or higher, described in 3E003.g, is under the 
export license authority of the Department of State, Office of Defense 
Trade Controls (22 CFR part 121);
    (2) See 3E001 for silicon-on-insulation (SOI) technology for the 
``development'' or ``production'' related to radiation hardening of 
integrated circuits.
Related Definitions: N/A.
Items:

[[Page 695]]

    a. Vacuum microelectronic devices;
    b. Hetero-structure semiconductor devices such as high electron 
mobility transistors (HEMT), hetero-bipolar transistors (HBT), quantum 
well and super lattice devices;
    c. ``Superconductive'' electronic devices;
    d. Substrates of films of diamond for electronic components;
    e. Substrates of silicon-on-insulator (SOI) for integrated circuits 
in which the insulator is silicon dioxide;
    f. Substrates of silicon carbide for electronic components;
    g. Electronic vacuum tubes operating at frequencies of 31 GHz or 
higher.

3E101 ``Technology'' according to the General Technology Note for the 
          ``use'' of equipment or ``software'' controlled by 3A001.a.1 
          or .2, 3A101, or 3D101.

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.

3E102 ``Technology'' according to the General Technology Note for the 
          ``development'' of ``software'' controlled by 3D101.

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.

3E201 ``Technology'' according to the General Technology Note for the 
          ``use'' of equipment controlled by 3A001.e.2 or .e.3, 3A201 or 
          3A225 to 3A233. 

License Requirements

Reason for Control: NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NP applies to ``technology'' for         NP Column 1.
 equipment controlled by 3A001.e.2, or
 .e.3, 3A201 or 3A225 to 3A233 for NP
 reasons.
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.

3E292 ``Technology'' according to the General Technology Note for the 
          ``development'', ``production'', or ``use'' of equipment 
          controlled by 3A292.

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

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, AT

 
               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.

3E991 ``Technology'' for the ``development'', ``production'', or ``use'' 
          of electronic devices or components controlled by 3A991, 
          general purpose electronic equipment controlled by 3A992, or 
          manufacturing

[[Page 696]]

          and test equipment controlled by 3B991 or 3B992.

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 4--Computers

    Note 1: Computers, related equipment and ``software'' performing 
telecommunications or ``local area network'' functions must also be 
evaluated against the performance characteristics of Category 5, Part 1 
(Telecommunications).

    Note 2: 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 1 (Telecommunications).

    N.B: For the control status of ``software'' specially designed for 
packet switching, see ECCN 5D001. (Telecommunications).

    Note 3: Computers, related equipment and ``software'' performing 
cryptographic, cryptoanalytic, certifiable multi-level security or 
certifiable user isolation functions, or that limit electromagnetic 
compatibility (EMC), must also be evaluated against the performance 
characteristics in Category 5, Part 2 (``Information Security'').

                  A. Systems, Equipment 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 items in 4A001.a when the     MT Column 1.
 parameters in 4A101 are met or exceeded.
AT applies to entire entry................  AT Column 1.
------------------------------------------------------------------------

NP applies, 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 28,000 MTOPS, 
          unless a License Exception is available. XP controls vary 
          according to destination and end-user and end-use; however, XP 
          does not apply to Canada. See Sec.  742.12 of the EAR for 
          additional information.
License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
          requirements for exports under License Exceptions.

License Exceptions

LVS: $5000 for 4A001.a; N/A for MT and 4A001.b
GBS: N/A
CIV: N/A

                        List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: See also 4A101 and 4A994. 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.)
Related Definitions: For the purposes of integrated circuits in 
4A001.a.2, 5 x 103 Gy(Si) = 5 x 105 Rads (Si); 5 x 
106 Gy (Si)/s = 5 x 108 Rads (Si)/s.
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: 4A001.a.1. does not apply to computers specially designed for 
civil automobile or railway train applications.

a.2. Radiation hardened to exceed any of the following specifications:
a.2.a. A total dose of 5 x 103 Gy (Si);
a.2.b. A dose rate upset of 5 x 106 Gy (Si)/s; or
a.2.c. Single Event Upset of 1 x 10-7 Error/bit/day;
b. Having characteristics or performing functions exceeding the limits 
in Category 5, Part 2 (``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.

[[Page 697]]

 
MT applies to hybrid computers combined     MT Column 1.
 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.
AT applies to entire entry................  AT Column 1.
------------------------------------------------------------------------

NP applies, 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 28,000 MTOPS, 
unless a License Exception is available. XP controls vary according to 
destination and end-user and end-use; however, XP does not apply to 
Canada. See Sec.  742.12 of the EAR for additional information.

License Exceptions

LVS: $5000; N/A for MT
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: See also 4A102 and 4A994
Related Definitions: N/A
Items:
    a. Containing ``digital computers'' controlled by 4A003;
    b. Containing analog-to-digital converters having all of the 
following characteristics:
    b.1. 32 channels or more; and
    b.2. A resolution of 14 bit (plus sign bit) or more with a 
conversion rate of 200,000 conversions/s or more.

4A003 ``Digital computers'', ``electronic assemblies'', and related 
          equipment therefor, as follows, and specially designed 
          components therefor.

                          License Requirements

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, .e, and .g............  NS Column 2.
MT applies to digital computers used as        MT Column 1.
 ancillary equipment for test facilities and
 equipment that are controlled by 9B005 or
 9B006.
CC applies to ``digital computers'' for        CC Column 1.
 computerized finger-print equipment.
AT applies to entire entry (refer to 4A994     AT Column 1.
 for controls on ``digital computers'' with a
 CTP = 6 but <= 190,000 MTOPS).
------------------------------------------------------------------------

    NP applies, 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 190,000 
MTOPS, unless a License Exception is available. XP controls vary 
according to destination and end-user and end-use; however, XP does not 
apply to Canada. See Sec.  742.12 of the EAR for additional information.
    Note: For all destinations, except Cuba, Iran, Iraq, Libya, North 
Korea, Sudan, Syria, no license is required (NLR) for computers with a 
CTP not greater than 190,000 MTOPS and for ``electronic assemblies'' 
described in 4A003.c that are not capable of exceeding a CTP greater 
than 190,000 MTOPS in aggregation. Computers controlled in this entry 
for MT reasons are not eligible for NLR.

                           License Exceptions

LVS: $5000; N/A for MT, b. and .c.
GBS: Yes, for 4A003.e, and .g and specially designed components 
therefor, exported separately or as part of a system.
CTP: Yes, for computers controlled by 4A003.a or .b, and ``electronic 
assemblies'' controlled by 4A003.c, to the exclusion of other technical 
parameters, with the exception of parameters specified as controlled for 
Missile Technology (MT) concerns and 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 .e, and .g.

                        List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: See also 4A994 and 4A980
Related Definitions: N/A
Items:
    Note 1: 4A003 includes the following:
    a. Vector processors;
    b. Array processors;
    c. Digital signal processors;
    d. Logic processors;
    e. Equipment designed for ``image enhancement'';
    f. Equipment designed for ``signal processing''.
    Note 2: The control status of the ``digital computers'' and related 
equipment described

[[Page 698]]

in 4A003 is determined 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 Category 5, Part 1 
(Telecommunications).
    c. The ``technology'' for the ``digital computers'' and related 
equipment is determined 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 utilize any of the following:
    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 190,000 million theoretical operations 
per second (MTOPS);
    c. ``Electronic assemblies'' specially designed or modified to be 
capable of enhancing performance by aggregation of ``computing 
elements'' (``CEs'') 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 limit 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, or 4A003.e.
    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 limit of 4A003.b.
    d. [Reserved]
    e. Equipment performing analog-to-digital conversions exceeding the 
limits in 3A001.a.5;
    f. [Reserved]
    g. Equipment specially designed to provide external interconnection 
of ``digital computers'' or associated equipment that allows 
communications at data rates exceeding 1.25 Gbyte/s.
    Note: 4A003.g does not control internal interconnection equipment 
(e.g., backplanes, buses) passive interconnection equipment, ``network 
access controllers'' or ``communication channel controllers''.

4A004 Computers, as follows (see List of Items Controlled) 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: $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. ``Systolic array computers'';

    b. ``Neural computers'';
    c. ``Optical computers''.

4A101 Analog computers, ``digital computers'' or digital differential 
          analyzers, other than those controlled by 4A001 designed or 
          modified for use in ``missiles'', having any of the following 
          (see List of Items Controlled).

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

[[Page 699]]

Related Definitions: N/A
Items: a. Rated for continuous operation at temperatures from below 228 
K (-45[deg] C) to above 328 K (+55[deg] C); or

    b. Designed as ruggedized or ``radiation hardened''.

4A102 ``Hybrid computers'' specially designed for modelling, simulation 
          or design integration of ``missiles''. (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.)

4A980 Computers for fingerprint equipment, n.e.s.

License Requirements

Reason for Control: CC, AT

 
               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: ``Two dimensional vector rate'' is 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) (see paragraph 
(g) of this ECCN).

    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. ``Electronic assemblies'' 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 Byte/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;
    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'' 
having a ``composite theoretical performance'' (``CTP'') exceeding 8.5 
million theoretical operations per second (MTOPS);
    g. Graphics accelerators or graphics coprocessors that exceed a 
``three dimensional vector rate'' of 400,000 or, if supported by 2-D 
vectors only, a ``two dimensional vector rate'' of 600,000;

    Note: 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

[[Page 700]]

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''.

    j. Equipment specially designed to provide external interconnection 
of ``digital computers'' or associated equipment that allows 
communications at data rates exceeding 80 Mbyte/s.

    Note: 4A994.j does not control internal interconnection equipment 
(e.g., backplanes, buses) passive interconnection equipment, ``network 
access controllers'' or ``communication channel 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: This entry does not control general-purpose sputtering 
equipment.
Related Definition: N/A
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

    Note: The control status of ``software'' for the ``development'', 
``production'', or ``use'' of equipment described in other Categories is 
dealt with in the appropriate Category. The control status of 
``software'' for equipment described in this Category is dealt with 
herein.

4D001 ``Software'' specially designed or modified for the 
          ``development'', ``production'' or ``use'' of equipment or 
          ``software'' controlled by 4A001 to 4A004, or 4D (except 
          4D980, 4D993 or 4D994), and other specified software, see List 
          of Items Controlled.

License Requirements
Reason for Control: NS, CC, AT, NP, XP.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to ``software'' for           NS Column 1.
 commodities or software controlled by
 4A001 to 4A004, 4D001 to 4D003.
CC applies to ``software'' for           CC Column 1.
 computerized finger-print equipment
 controlled by 4A003 for CC reasons.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

    NP applies, 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 
190,000 MTOPS, unless a License Exception is available. XP controls vary 
according to destination and end-user and end-use; however, XP does not 
apply to Canada. See Sec.  742.12 of the EAR for additional information.
    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions
CIV: N/A
TSR: (a) N/A for:

[[Page 701]]

    (1) ``Software'' for equipment or ``software'' requiring a license; 
or
    (2) ``Software'' described by TSR paragraph (b)(1)(ii) of this 
License Exception section, when exported or reexported to a destination 
not included in TSR paragraph (b)(1)(i) of this License Exception 
section.
    (b) Yes for:
    (1) ``Software'':
    (i) Exported or reexported to Australia, Austria, Belgium, Canada, 
Denmark, Finland, France, Germany, Greece, Ireland, Italy, Japan, 
Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Spain, 
Sweden, Switzerland, Turkey, or the United Kingdom; and
    (ii) Specially designed for the ``development'' or ``production'' of 
any of the following:
    (A) ``Digital'' computers controlled by 4A003.b and having a CTP 
exceeding than 33,000 MTOPS; or
    (B) ``Electronic assemblies'' controlled by 4A003.c and capable of 
enhancing performance by aggregation of ``computing elements'' so that 
the CTP of the aggregation exceeds 33,000 MTOPS; and
    (2) All other ``software'' not described in TSR paragraphs (a) or 
(b)(1) of this License Exception section.

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 ``software'' 
controlled by 4A001 to 4A004, or 4D (except 4D980, 4D993 or 4D994).
    b. ``Software'', other than that controlled by the heading, 
specially designed or modified for the ``development'' or ``production'' 
of:
    b.1. ``Digital computers'' having a ``composite theoretical 
performance'' (``CTP'') exceeding 28,000 MTOPS; or
    b.2. ``Electronic assemblies'' specially designed or modified for 
enhancing performance by aggregation of ``computing elements'' (``CEs'') 
so that the ``CTP'' of the aggregation exceeds the limit in 4D001.b.1.

4D002 ``Software'' specially designed or modified to support 
          ``technology'' controlled by 4E (except 4E980, 4E992, and 
          4E993).

License Requirements
Reason for Control: NS, AT, NP, XP

 
               Control(s)                         Country chart
 
NS applies to entire entry.............  NS Column 1
AT applies to entire entry.............  AT Column 1
 

    NP applies, 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 
28,000 MTOPS, unless a License Exception is available. XP controls vary 
according to destination and end-user and end-use; however, XP does not 
apply to Canada. See Sec.  742.12 of the EAR for additional information.
License Exceptions
CIV: N/A
TSR: Yes, except N/A for ``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 follows (see List of Items Controlled).

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. [Reserved]
    c. ``Software'' having characteristics or performing functions 
exceeding the limits in Category 5, Part 2 (``Information Security'').

4D980 ``Software'' specially designed for the ``development'', 
          ``production'', or ``use'' of items controlled by 4A980.

License Requirements

Reason for Control: CC, AT

 
               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

[[Page 702]]

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 system ``software'' 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
Related Definitions: ``Global interrupt latency time'' is the time taken 
by the computer 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.
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 system ``software'' specially designed for ``real time 
processing'' equipment that guarantees a ``global interrupt latency 
time'' of less than 20 microseconds.

4D994 ``Software'' other than that controlled in 4D001 specially 
          designed or modified for the ``development'', ``production'', 
          or ``use'' of equipment controlled by 4A101, 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 or 
          ``software'' controlled by 4A (except 4A980, 4A993 or 4A994) 
          or 4D (except 4D980, 4D993, 4D994), and other specified 
          technology, see List of Items Controlled.

License Requirements
    Reason for Control: NS, MT, CC, AT, NP, XP.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to ``technology'' for         NS Column 1.
 commodities or software controlled by
 4A001 to 4A004, 4D001 to 4D003.
MT applies to ``technology'' for items   MT Column 1.
 controlled by 4A001.a and 4A101 for MT
 reasons.
CC applies to ``technology'' for         CC Column 1.
 computerized fingerprint equipment
 controlled by 4A003 for CC reasons.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

    NP applies, 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 
190,000 MTOPS, unless a License Exception is available. XP controls vary 
according to destination and end-user and end-use; however, XP does not 
apply to Canada. See Sec.  742.12 of the EAR for additional information.
    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions
CIV: N/A
TSR: (a) N/A for:

(1) ``Technology'' controlled for MT reasons; or
(2) ``Technology'' described by TSR paragraph (b)(2)(ii) of this License 
          Exception, when exported or reexported to a destination not 
          included in TSR paragraph (b)(2)(i) of this License Exception.
(b) Yes for:
(1) `` Technology'' directly related to hardware eligible for export or 
          reexport under a License Exception;
(2) ``Technology'':
(i) Exported or reexported to Australia, Austria, Belgium, Canada, 
          Denmark, Finland, France, Germany, Greece, Ireland, Italy, 
          Japan, Luxembourg, the Netherlands, New Zealand, Norway, 
          Portugal,

[[Page 703]]

          Spain, Sweden, Switzerland, Turkey, or the United Kingdom; and
(ii) For the ``development'' or ``production'' of any of the following:
(A) ``Digital'' computers controlled by 4A003.b and having a CTP 
          exceeding 33,000 MTOPS;
(B) ``Electronic assemblies'' controlled by 4A003.c and capable of 
          enhancing performance by aggregation of ``computing elements'' 
          so that the CTP of the aggregation exceeds 33,000 MTOPS; or
(C) ``Software'' controlled by 4D001 and specially designed for the 
          ``development'' or ``production'' of equipment listed in TSR 
          paragraphs (b)(2)(ii)(A) or (b)(2)(ii)(B) of this License 
          Exception section; and
(3) All other ``technology'' not described in TSR paragraphs (a), 
          (b)(1), or (b)(2) of this License Exception section.

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A
Items:
    a. ``Technology'' according to the General Technology Note, for the 
``development,'' ``production,'' or ``use'' of equipment or ``software'' 
controlled by 4A (except 4A980, 4A993 or 4A994) or 4D (except 4D980, 
4D993, 4D994).
    b. ``Technology'', other than that controlled by 4E001.a, specially 
designed or modified for the ``development'' or ``production'' of:
    b.1. ``Digital computers'' having a ``composite theoretical 
performance'' (``CTP'') exceeding 28,000 MTOPS; or
    b.2. ``Electronic assemblies'' specially designed or modified for 
enhancing performance by aggregation of ``computing elements'' (``CEs'') 
so that the ``CTP'' of the aggregation exceeds the limit in 4E001.b.1.

4E980 ``Technology'' for the ``development'', ``production'', or ``use'' 
          of items controlled by 4A980.

License Requirements

Reason for Control: CC, AT

 
               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.

4E992 ``Technology'' other than that controlled in 4E001 for the 
          ``development'', ``production'', or ``use'' of equipment 
          controlled by 4A994 and 4B994, materials controlled by 4C994, 
          or ``software'' controlled by 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: See also 4E994
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

4E993 Other ``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;

    b. ``Technology'', for the ``development'' or ``production'' of 
equipment designed for ``multi-data-stream processing'';
    c. ``Technology'', ``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.

  Information on How to Calculate ``Composite Theoretical Performance 
                                (``CTP'')

    Technical Note: ``COMPOSITE THEORETICAL PERFORMANCE'' (``CTP'')
Abbreviations used in this Technical Note

[[Page 704]]



``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 millions of theoretical operations per second (Mtops) and 
WL is expressed in bits.

                  Outline of ``CTP'' calculation method

    ``CTP'' is a measure of computational performance given in Mtops. In 
calculating the ``CTP'' of an aggregation of ``CEs'' the following three 
steps are required:
    1. Calculate the effective calculating rate R for each ``CE'';
    2. Apply the word length adjustment (L) to the effective calculating 
rate (R), resulting in a Theoretical Performance (TP) for each ``CE'';
    3. If there is more than one ``CE'', combine the TPs, resulting in a 
``CTP'' for the aggregation.
    Details for these steps are given in the following sections.

    Note 1: For aggregations of multiple ``CEs'' that have both shared 
and unshared memory subsystems, the calculation of ``CTP'' is completed 
hierarchically, in two steps: first, aggregate the groups of ``CEs'' 
sharing memory; second, calculate the ``CTP'' of the groups using the 
calculation method for multiple ``CEs'' not sharing memory.

    Note 2: ``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 ``CE'':
    Step 1: The effective calculating rate R

[[Page 705]]

[GRAPHIC] [TIFF OMITTED] TR23JY99.000


[[Page 706]]


[GRAPHIC] [TIFF OMITTED] TR23JY99.001

    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] TR23JY99.002

    ``CEs'' that perform different types of arithmetic or logic 
operations in a single machine cycle are to be treated as multiple 
separate ``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 ``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:

[[Page 707]]

[GRAPHIC] [TIFF OMITTED] TR23JY99.003

    If the ``CE'' implements FP reciprocal but not FP add, FP multiply 
or FP divide, then
[GRAPHIC] [TIFF OMITTED] TR23JY99.004

    If none of the specified instructions is implemented, the effective 
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 R) by the word length adjustment L 
as follows:
P = R * L, where L = (1/3 + WL/96)

    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 ``CE'' with a Word Length (WL) equal to the number of bits in the 
data representation (typically 32 or 64) for purposes of the ``CTP'' 
calculation.

    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 CPUs.
    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'',

[[Page 708]]

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, I/O 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'' 
described 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:

    C2=C3=C4=...=Cn=0.75

    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] TR23JY99.005

Where m=the number of ``CEs'' or groups of ``CEs'' sharing access.
    provided:
    1. The TP1 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 below)
    =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 ``CE''s, 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 MByte/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.: TP1=TP2 
=....= TPn, and
    in the case of TPi=TPi+1, from the largest to 
smallest; i.e.: Ci=Ci+1

    Note: The ki factor is not to be applied to ``CEs'' 2 to 
12 if the TPi of the ``CE'' or group of ``CEs'' is more than 
50 Mtops; i.e., Ci for ``CEs'' 2 to 12 is 0.75.


[[Page 709]]



       Category 5--Telecommunications and ``Information Security''

                          I. Telecommunications

    Notes: 1. The control status of components, ``lasers'', test and 
``production'' equipmentand ``software'' therefor which are specially 
designed for telecommunications equipment or systems is determined in 
Category 5, Part I.
    2. ``Digital computers'', related equipment or ``software'', when 
essential for the operation and support of telecommunications equipment 
described 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. Systems, Equipment and Components

5A001 Telecommunications systems, equipment, and components.

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, or .d.......  NS Column 2
AT applies to entire entry.............  AT Column 1
 

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions
LVS: N/A for 5A001.a and b.5 $5000 for 5A001b.1, b.2, b.3, b.6, and .d 
$3000 for 5A001.c
GBS: Yes, except 5A001.a and b.5
CIV: Yes, except 5A001.a, b.3 and b.5

List of Items Controlled

Unit: Equipment in number; cable and fiber in meters/feet, components 
and accessories in $ value.
Related Controls: Telecommunications equipment defined in 5A001.a.1 
through 5A001.a.3 for use on board satellites is subject to the export 
licensing authority of the Department of State, Office of Defense Trade 
Controls (22 CFR part 121). See also 5A101 and 5A991.
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 effects, both arising from a nuclear explosion;
    a.2. Specially hardened to withstand gamma, neutron or ion 
radiation; or
    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 5A001.a.3 do not apply to equipment on board 
satellites.
    b. Telecommunication transmission equipment and systems, and 
specially designed components and accessories therefor, having any of 
the following characteristics, functions or features:
    b.1 Being underwater communications systems having any of the 
following characteristics:
    b.1.a. An acoustic carrier frequency outside the range from 20 kHz 
to 60 kHz;
    b.1.b. Using an electromagnetic carrier frequency below 30 kHz; or
    b.1.c. Using electronic beam steering techniques;
    b.2. Being radio equipment operating in the 1.5 MHz to 87.5 MHz band 
and having any of the following characteristics:
    b.2.a. Incorporating adaptive techniques providing more than 15 dB 
suppression of an interfering signal; or
    b.2.b. Having all of the following:
    b.2.b.1. Automatically predicting and selecting frequencies and 
``total digital transfer rates'' per channel to optimize the 
transmission; and
    b.2.b.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 frequency range of 1.5 MHz or more but less 
than 30 MHz, or 250 W or more in the frequency range of 30 MHz or more 
but not exceeding 87.5 MHz, over an ``instantaneous bandwidth'' of one 
octave or more and with an output harmonic and distortion content of 
better than -80 dB;
    b.3. Being radio equipment employing ``spread spectrum'' techniques, 
including ``frequency hopping'' techniques, having any of the following 
characteristics:
    b.3.a. User programmable spreading codes; or
    b.3.b. A total transmitted bandwidth which is 100 or more times the 
bandwidth of any one information channel and in excess of 50 kHz;
    Note: 5A001.b.3.b does not control radio equipment specially 
designed for use with civil cellular radio-communications systems.
    Note: 5A001.b.3 does not control equipment operating at an output 
power of 1.0 Watt or less.
    b.4 Being radio equipment employing ``time-modulated ultra-
wideband'' techniques, having user programmable channelizing or 
scrambling codes;
    b.5. Being digitally controlled radio receivers having all of the 
following:
    b.5.a. More than 1,000 channels;

[[Page 710]]

    b.5.b. A ``frequency switching time'' of less than 1 ms;
    b.5.c. Automatic searching or scanning of a part of the 
electromagnetic spectrum; and
    b.5.d. Identification of the received signals or the type of 
transmitter; or
    Note: 5A001.b.5 does not control radio equipment specially designed 
for use with civil cellular radio-communications systems.
    b.6. Employing functions of digital ``signal processing'' to provide 
voice coding output at rates of less than 2,400 bit/s.
    Technical Note: For variable rate voice coding, 5A001.b.6 applies to 
the voice coding output of continuous speech.
    c. Optical fiber communication cables, optical fibers and 
accessories, as follows:
    c.1. Optical fibers of more than 500 m in length 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 40%. 
Equivalent national standards may be used for executing the proof test.
    c.2. Optical fiber cables and accessories designed for underwater 
use.
    Note: 5A001.c.2 does not control standard civil telecommunication 
cables and accessories.
    N.B. 1: For underwater umbilical cables, and connectors thereof, see 
8A002.a.3.
    N.B. 2: For fiber-optic hull penetrators or connectors, see 8A002.c.
    d. ``Electronically steerable phased array antennae'' operating 
above 31 GHz.
    Note: 5A001.d does not control ``electronically steerable phased 
array antennae'' for landing systems with instruments meeting ICAO 
standards covering microwave landing systems (MLS).

5A101 Telemetering and telecontrol equipment as follows (see List of 
          Items Controlled).

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:
    a. Usable for unmanned air vehicles or rocket systems; and
    b. Usable for ``missiles.''
    Note: 5A101 does not control telecontrol equipment specially 
designed to be used for remote control of recreational model planes, 
boats or vehicles and having an electric field strength of not more than 
200 microvolts per meter at a distance of 500 meters.

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 (Public Law 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.

5A991 Telecommunication equipment, not controlled by 5A001.

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: Telecommunication equipment defined in 5A991 for use 
on board satellites is subject to the export licensing authority of the 
Department of State, Office of Defense Trade Controls (22 CFR part 121). 
See also 5E101 and 5E991.
Related Definitions: (1) `Bandwidth of one voice channel' is data 
communication equipment designed to operate in one voice channel of

[[Page 711]]

3,100 Hz, as defined in CCITT Recommendation G.151. (2) `Communications 
channel controller' is 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. (3) `Datagram' is 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. (4) `Fast select' is 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. (5) `Gateway' 
is 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. (6) `Integrated Services Digital Network' (ISDN) is 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.(7) `Packet' is 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.
Items:
    a. 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).
    b. Telecommunication transmission equipment and systems, and 
specially designed components and accessories therefor, having any of 
the following 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 mutiplex 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 any 
of the following:
    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: 5A991.b.1 does not control equipment specially designed to be 
integrated and operated in any satellite system for civil use.
    b.2. Modems using the ``bandwidth of one voice channel'' with a 
``data signaling rate'' exceeding 9,600 bits per second;
    b.3. Being ``stored program controlled'' digital cross connect 
equipment with ``digital transfer rate'' exceeding 8.5 Mbit/s per port.
    b.4. Being equipment containing any of the following:
    b.4.a. ``Network access controllers'' and their related common 
medium having a ``digital transfer rate'' exceeding 33 Mbit/s; or
    b.4.b. ``Communication channel controllers'' with a digital output 
having a ``data signaling rate'' exceeding 64,000 bit/s per channel;
    Note: If any uncontrolled equipment contains a ``network access 
controller'', it cannot have any type of telecommunications interface, 
except those described in, but not controlled by 5A991.b.4.
    b.5. Employing a ``laser'' and having any of the following 
characteristics:
    b.5.a. A transmission wavelength exceeding 1,000 nm; or
    b.5.b. Employing analog techniques and having a bandwidth exceeding 
45 MHz;
    Note: 5A991.b.5.b does not control commercial TV systems.
    b.5.c. Employing coherent optical transmission or coherent optical 
detection techniques (also called optical heterodyne or homodyne 
techniques);
    b.5.d. Employing wavelength division multiplexing techniques; or
    b.5.e. Performing ``optical amplification''
    b.6. Radio equipment operating at input or output frequencies 
exceeding:
    b.6.a. 31 GHz for satellite-earth station applications; or
    b.6.b. 26.5 GHz for other applications;
    Note: 5A991.b.6. does not control equipment for civil use when 
conforming with an International Telecommunications Union (ITU) 
allocated band between 26.5 GHz and 31 GHz.

[[Page 712]]

    b.7. Being radio equipment employing any of the following:
    b.7.a. Quadrature-amplitude-modulation (QAM) techniques above level 
4 if the ``total digital transfer rate'' exceeds 8.5 Mbit/s;
    b.7.b. QAM techniques above level 16 if the ``total digital transfer 
rate'' is equal to or less than 8.5 Mbit/s; or
    b.7.c. Other digital modulation techniques and having a ``spectral 
efficiency'' exceeding 3 bit/s/Hz;
    Notes: 1. 5A991.b.7 does not control equipment specially designed to 
be integrated and operated in any satellite system for civil use.
    2. 5A991.b.7 does not control radio relay equipment for operation in 
an ITU allocated band:
    a. Having any of the following:
    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/s/Hz.
    b.8. Providing functions of digital ``signal processing'' as 
follows:
    b.8.a. Voice coding at rates less than 2,400 bit/s;
    b.8.b. Employing circuitry that incorporates ``user-accessible 
programmability'' of digital ``signal processing'' circuits exceeding 
the limits of 4A003.b.
    c. ``Stored program controlled'' switching equipment and related 
signaling 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 
which provide switching are treated as ``stored program controlled'' 
switches.
    c.1. ``Data (message) switching'' equipment or systems designed for 
``packet-mode operation'' and assemblies and components therefor, n.e.s.
    c.2. Containing ``Integrated Services Digital Network'' (ISDN) 
functions and having any 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 signaling channel (e.g., 2B+D); 
or
    c.2.b. The capability that a signaling 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: 5A991.c does not preclude the evaluation and appropriate 
actions taken by the receiving switch or unrelated user message traffic 
on a D channel of ISDN.
    c.3. Routing or switching of ``datagram'' packets;
    c.4. Routing or switching of ``fast select'' packets;
    Note: The restrictions in 5A991.c.3 and c.4 do not apply to networks 
restricted to using only ``network access controllers'' or to ``network 
access controllers'' themselves.
    c.5. Multi-level priority and pre-emption for circuit switching;
    Note: 5A991.c.5 does not control single-level call preemption.
    c.6. 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.7. Containing ``stored program controlled'' digital cross connect 
equipment with ``digital transfer rate'' exceeding 8.5 Mbit/s per port.
    c.8. ``Common channel signaling'' operating in either non-associated 
or quasi-associated mode of operation;
    c.9. ``Dynamic adaptive routing''
    Note: 5A991.c.10 does not control packet switches or routers with 
ports or lines not exceeding the limits in 5A991.c.10.
    c.10. Being packet switches, circuit switches and routers with ports 
or lines exceeding any of the following:
    c.10.a. A ``data signaling rate'' of 64,000 bit/s per channel for a 
``communications channel controller'' or
    Note: 5A991.c.10.a does not control multiplex composite links 
composed only of communication channels not individually controlled by 
5A991.b.1.
    c.10.b. A ``digital transfer rate'' of 33 Mbit/s for a ``network 
access controller'' and related common media;
    c.11. ``Optical switching'';
    c.12. Employing ``Asynchronous Transfer Mode (``ATM'') techniques.
    d. Optical fibers and optical fiber cables of more than 50 m in 
length designed for single mode operation;
    e. Centralized network control having all of the following 
characteristics:
    e.1. Receives data from the nodes; and
    e.2. Process these data in order to provide control of traffic not 
requiring operator decisions, and thereby performing ``dynamic adaptive 
routing'';
    Note: 5A991.e does not preclude control of traffic as a function of 
predictable statistical traffic conditions.
    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)).
    g. Mobile communications equipment, n.e.s., and assemblies and 
components therefor; or
    h. Radio relay communications equipment designed for use at 
frequencies equal to or

[[Page 713]]

exceeding 19.7 GHz and assemblies and components therefor, n.e.s.

              B. Test, Inspection and Production Equipment

5B001 Telecommunication test, inspection and production equipment, as 
          follows (See List of Items Controlled).
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 Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions
LVS: $5000
GBS: Yes
CIV: Yes
List of Items Controlled
Unit: Equipment in number; parts and accessories in $ value.
Related Controls: See also 5B991.
Related Definition: N/A.
Items:
    a. Equipment and specially designed components or accessories 
therefor, specially designed for the ``development'', ``production'' or 
``use'' of equipment, functions or features controlled by 5A001, 5D001 
or 5E001.
    Note: 5B001.a. does not control optical fiber characterization 
equipment.
    b. Equipment and specially designed components or accessories 
therefor, specially designed for the ``development'' of any of the 
following telecommunication transmission or ``stored program 
controlled'' switching equipment:
    b.1. Equipment employing digital techniques, including 
``Asynchronous Transfer Mode'' (``ATM''), designed to operate at a 
``total digital transfer rate'' exceeding 1.5 Gbit/s;
    b.2. Equipment employing a ``laser'' and having any of the 
following:
    b.2.a. A transmission wavelength exceeding 1750 nm;
    b.2.b. Performing ``optical amplification''
    b.2.c. Employing coherent optical transmission or coherent optical 
detection techniques (also called optical heterodyne or homodyne 
techniques); or
    b.2.d. Employing analog techniques and having a bandwidth exceeding 
2.5 GHz;
    Note: 5B001.b.2.d. does not include equipment specially designed for 
the ``development'' of commercial TV systems.
    b.3. Equipment employing ``optical switching''
    b.4. Radio equipment employing quadrature-amplitude-modulation (QAM) 
techniques above level 256; or
    b.5. Equipment employing ``common channel signaling'' operating in 
non-associated mode of operation.

5C991 Preforms of glass or of any other material optimized for the 
          manufacture of optical fibers controlled by 5A991.

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

5D001 ``Software'', as described in the List of Items Controlled.

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 Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions
CIV: Yes, except for ``software'' controlled by 5D001.a and specially 
designed for the ``development'' or ``production'' of items controlled 
by 5A001.b.5 TSR: Yes, except for exports and reexports to destinations 
outside of Austria, Belgium, Canada, Denmark, Finland, France, Germany, 
Greece, Ireland, Italy, Japan, Luxembourg, the Netherlands, Portugal, 
Spain, Sweden, or the United Kingdom of ``software'' controlled by 
5D001.a and specially designed for items controlled by 5A001.b.5.

List of Items Controlled

Unit: $ value.
Related Controls: See also 5D991.
Related Definitions: N/A.
Items:
    a. ``Software'' specially designed or modified for the 
``development'', ``production'' or ``use'' of equipment, functions or 
features controlled by 5A001 or 5B001.
    b. ``Software'' specially designed or modified to support 
``technology'' controlled by 5E001.
    c. Specific ``software'' as follows:

[[Page 714]]

    c.1. ``Software'' specially designed or modified to provide 
characteristics, functions or features of equipment controlled by 5A001 
or 5B001;
    c.2. [Reserved];
    c.3. ``Software'', other than in machine-executable form, specially 
designed for ``dynamic adaptive routing''.
    d. ``Software'' specially designed or modified for the 
``development'' of any of the following telecommunication transmission 
or ``stored program controlled'' switching equipment:
    d.1. Equipment employing digital techniques, including 
``Asynchronous Transfer Mode'' (``ATM''), designed to operate at a 
``total digital transfer rate'' exceeding 1.5 Gbit/s;
    d.2. Equipment employing a ``laser'' and having any of the 
following:
    d.2.a. A transmission wavelength exceeding 1750 nm; or
    d.2.b. Employing analog techniques and having a bandwidth exceeding 
2.5 GHz;
    Note: 5D001.d.2.b. does not control ``software'' specially designed 
or modified for the ``development'' of commercial TV systems.
    d.3. Equipment employing ``optical switching''; or
    d.4. Radio equipment employing quadrature-amplitude-modulation (QAM) 
techniques above level 256.

5D101 ``Software'' specially designed or modified for the ``use'' of 
          items controlled by 5A101.

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.

5D991 ``Software'' specially designed or modified for the 
          ``development'', ``production'', or ``use'' of equipment 
          controlled by 5A991 and 5B991.

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 ``Technology'', (see List of Items Controlled).

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 Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions
CIV: N/A
TSR: Yes, except for exports or reexports to destinations outside of 
Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, 
Ireland, Italy, Japan, Luxembourg, the Netherlands, Portugal, Spain, 
Sweden, or the United Kingdom of ``technology'' controlled by 5E001.a 
for the ``development'' or ``production'' of the following:
(1) Items controlled by 5A001.b.5; or
(2) ``Software'' controlled by 5D001.a that is specially designed for 
the ``development'' or ``production'' of equipment, functions or 
features controlled by 5A001.b.5.
List of Items Controlled

Unit: $ value.
Related Controls: Technology defined in 5E001.b.1, 5E001.b.2, 5E001.b.4, 
or 5E001.c for use on board satellites is subject to the export 
licensing authority of the Department of State, Office of Defense Trade 
Controls (22 CFR part 121). See also 5E101 and 5E991
Related Definitions: N/A.
Items:
    a. ``Technology'' according to the General Technology Note for the 
``development'', ``production'' or ``use'' (excluding operation) of 
equipment, functions or features or ``software'' controlled by 5A001, 
5B001 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;

[[Page 715]]

    b.3. ``Technology'' for the ``development'' of digital cellular 
radio base station receiving equipment whose reception capabilities that 
allow multi-band, multi-channel, multi-mode, multi-coding algorithm or 
multi-protocol operation can be modified by changes in ``software'' ;
    b.4. ``Technology'' for the ``development'' of ``spread spectrum'' 
techniques, including ``frequency hopping'' techniques.
    c. ``Technology'' according the General Technology Note for the 
``development'' or ``production'' of any of the following 
telecommunication transmission or ``stored program controlled'' 
switching equipment, functions or features:
    c.1. Equipment employing digital techniques, including 
``Asynchronous Transfer Mode'' (``ATM''), designed to operate at a 
``total digital transfer rate'' exceeding 1.5 Gbit/s;
    c.2. Equipment employing a ``laser'' and having any of the 
following:
    c.2.a. A transmission wavelength exceeding 1750 nm;
    c.2.b. Performing ``optical amplification'' using praseodymium-doped 
fluoride fiber amplifiers (PDFFA);
    c.2.c. Employing coherent optical transmission or coherent optical 
detection techniques (also called optical heterodyne or homodyne 
techniques);
    c.2.d. Employing wavelength division multiplexing techniques 
exceeding 8 optical carriers in a single optical window; or
    c.2.e. Employing analog techniques and having a bandwidth exceeding 
2.5 GHz;
    Note: 5E001.c.2.e. does not control ``technology'' for the 
``development'' or ``production'' of commercial TV systems.
    c.3. Equipment employing ``optical switching'';
    c.4. Radio equipment having any of the following:
    c.4.a. Quadrature-amplitude-modulation (QAM) techniques above level 
256; or
    c.4.b. Operating at input or output frequencies exceeding 31 GHz; or
    Note: 5E001.c.4.b. does not control ``technology'' for the 
``development'' or ``production'' of equipment designed or modified for 
operation in any frequency band which is ``allocated by the ITU'' for 
radio-communications services, but not for radio-determination.
    c.5. Equipment employing ``common channel signaling'' operating in 
non-associated mode of operation.

5E101 ``Technology'' according to the General Technology Note for the 
          ``development,'' ``production'' or ``use'' of equipment or 
          software controlled by 5A101 or 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.

5E991 ``Technology'' for the ``Development'', ``Production'' or ``Use'' 
          of Equipment Controlled by 5A991 or 5B991, or ``Software'' 
          Controlled by 5D991, and Other ``Technologies'' as Follows 
          (see List of Items Controlled)

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: (1) ``Synchronous digital hierarchy'' (SDH) is 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. (2) `Synchronous optical network' (SONET) is 
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'.
Items:
    a. Specific ``technologies'' as follows:
    a.1. ``Technology'' for the processing and application of coatings 
to optical fiber specially designed to make it suitable for underwater 
use;
    a.2. ``Technology'' for the ``development'' of equipment employing 
`Synchronous Digital Hierarchy' (`SDH') or `Synchronous Optical Network' 
(`SONET') techniques.


[[Page 716]]


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.

                      II. ``Information Security''

    Note 1: The control status of ``information security'' equipment, 
``software'', systems, application specific ``electronic assemblies'', 
modules, integrated circuits, components, or functions is determined in 
Category 5, Part 2 even if they are components or ``electronic 
assemblies'' of other equipment.
    N.B. to Note 1: Commodities and software specially designed for 
medical end-use that incorporate an item in Category 5, part 2 are not 
classified in any ECCN in Category 5, part 2.
    Note 2: Category 5, part 2, encryption products, when accompanying 
their user for the user's personal use or as tools of trade, are 
eligible for License Exceptions TMP or BAG, subject to the terms and 
conditions of these License Exceptions.
    Note 3: Cryptography Note: ECCNs 5A002 and 5D002 do not control 
items that meet all of the following:
    a. Generally available to the public by being sold, without 
restriction, from stock at retail selling points by means of any of the 
following:

    1. Over-the-counter transactions;
    2. Mail order transactions;
    3. Electronic transactions; or
    4. Telephone call transactions;

    b. The cryptographic functionality cannot be easily changed by the 
user;
    c. Designed for installation by the user without further substantial 
support by the supplier; and
    d. When necessary, details of the items are accessible and will be 
provided, upon request, to the appropriate authority in the exporter's 
country in order to ascertain compliance with conditions described in 
paragraphs (a) through (c) of this note.
    N.B. to Cryptography Note: Mass market encryption commodities and 
software eligible for the Cryptography Note are subject to the 
notification or review requirements described in Sec.  742.15(b)(1) and 
(b)(2) of the EAR, unless specifically excluded from these requirements 
by Sec.  742.15(b)(3) of the EAR. Mass market commodities and software 
employing a key length greater than 64 bits for the symmetric algorithm 
must be reviewed in accordance with the requirements of Sec.  
742.15(b)(2) of the EAR in order to be released from the ``EI'' and 
``NS'' controls of ECCN 5A002 or 5D002. All other mass market 
commodities and software eligible for the Cryptography Note are 
controlled under ECCN 5A992 or 5D992 (without review) and may be 
exported or reexported to most destinations without a license, following 
notification, in accordance with the requirements of Sec.  742.15(b)(1) 
of the EAR.

                  A. Systems, Equipment and Components

5A002 Systems, equipment, application specific ``electronic 
          assemblies'', modules and integrated circuits for 
          ``information security'', as follows (see List of Items 
          Controlled), and other 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 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 pursuant to the Presidential Memorandum of 
that date. Refer to Sec.  742.15 of this subchapter.

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports of commodities controlled under 5A002 and 
exported under License Exceptions LVS or GOV.

License Exceptions

LVS: Yes: $500 for components and spare parts only. N/A for equipment.
GBS: N/A
CIV: N/A

List of Items Controlled
Unit: $ value.
Related Controls: 5A002 does not control the items listed in paragraphs 
(a) through (f) in the Note in the items paragraph of this entry. These 
items are instead controlled under ECCN 5A992.
    Related Definitions: N/A
    Items:
    Note: 5A002 does not control the following. However, these items are 
instead controlled under 5A992:
    (a) ``Personalized smart cards'':
    (1) Where the cryptographic capability is restricted for use in 
equipment or systems excluded from control paragraphs (b) through (f) of 
this Note; or
    (2) For general public-use applications where the cryptographic 
capability is not user-accessible and it is specially designed and 
limited to allow protection of personal data stored within.
    N.B.: If a ``personalized smart card'' has multiple functions, the 
control status of each function is assessed individually.

[[Page 717]]

    (b) Receiving equipment for radio broadcast, pay television or 
similar restricted audience broadcast of the consumer type, without 
digital encryption except that exclusively used for sending the billing 
or program-related information back to the broadcast providers.
    (c) Equipment where the cryptographic capability is not user-
accessible and which is specially designed and limited to allow any of 
the following:
    (1) Execution of copy-protected ``software';
    (2) Access to any of the following:
    (a) Copy-protected contents stored on read-only media; or
    (b) Information stored in encrypted form on media (e.g., in 
connection with the protection of intellectual property rights) where 
the media is offered for sale in identical sets to the public; or
    (3) Copying control of copyright protected audio/video data.
    (d) Cryptographic equipment specially designed and limited for 
banking use or money transactions;
    (e) Portable or mobile radiotelephones for civil use (e.g., for use 
with commercial civil cellular radio communications systems) that are 
not capable of end-to-end encryption.
    N.B.: The term ``money transactions'' includes the collection and 
settlement of fares or credit functions.
    (f) Cordless telephone equipment not capable of end-to-end 
encryption where the maximum effective range of unboosted cordless 
operation (e.g., a single, unrelayed hop between terminal and home 
basestation) is less than 400 meters according to the manufacturer's 
specifications.
    Technical Note: Parity bits are not included in the key length.
    a. Systems, equipment, application specific ``electronic 
assemblies'', modules and integrated circuits for ``information 
security'', as follows, and other specially designed components 
therefor:
    N.B.: For the control of global navigation satellite systems 
receiving equipment containing or employing decryption (e.g., GPS or 
GLONASS) see 7A005.
    a.1. Designed or modified to use ``cryptography'' employing digital 
techniques performing any cryptographic function other than 
authentication or digital signature having any of the following:
    Technical Notes: 
    1. Authentication and digital signature functions include their 
associated key management function.
    2. Authentication includes all aspects of access control where there 
is no encryption of files or text except as directly related to the 
protection of passwords, Personal Identification Numbers (PINs) or 
similar data to prevent unauthorized access.
    3. ``Cryptography'' does not include ``fixed'' data compression or 
coding techniques.
    Note: 5A002.a.1 includes equipment designed or modified to use 
``cryptography'' employing analog principles when implemented with 
digital techniques.
    a.1.a. A ``symmetric algorithm'' employing a key length in excess of 
56-bits; or
    a.1.b. An ``asymmetric algorithm'' where the security of the 
algorithm is based on any of the following:
    a.1.b.1. Factorization of integers in excess of 512 bits (e.g., 
RSA);
    a.1.b.2. Computation of discrete logarithms in a multiplicative 
group of a finite field of size greater than 512 bits (e.g., Diffie-
Hellman over Z/pZ); or
    a.1.b.3. Discrete logarithms in a group other than mentioned in 
5A002.a.1.b.2 in excess of 112 bits (e.g., Diffie-Hellman over an 
elliptic curve);
    a.2. Designed or modified to perform cryptanalytic functions;
    a.3. [Reserved]
    a.4. Specially designed or modified to reduce the compromising 
emanations of information-bearing signals beyond what is necessary for 
health, safety or electromagnetic interference standards;
    a.5. Designed or modified to use cryptographic techniques to 
generate the spreading code for ``spread spectrum'' systems, including 
the hopping code for ``frequency hopping'' systems;
    a.6. Designed or modified to use cryptographic techniques to 
generate channelizing or scrambling codes for ``time-modulated ultra-
wideband'' systems;
    a.7. 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;
    a.8. Communications cable systems designed or modified using 
mechanical, electrical or electronic means to detect surreptitious 
intrusion.

                      Part 2--Information Security

5A992 Equipment not controlled by 5A002.
License Requirements
Reason for Control: AT

 
               Control(s)                          Country Chart
 
AT applies to 5A992.a...................  AT Column 1
AT applies to 5A992.b...................  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:

[[Page 718]]

    a. Telecommunications and other information security equipment 
containing encryption.

    b. ``Information security'' equipment, n.e.s., (e.g., cryptographic, 
cryptanalytic, and cryptologic equipment, n.e.s.) and components 
therefor.

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
Related Controls: N/A
Related Definitions: N/A
Items: 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, 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'' applies to encryption items transferred from the U.S. 
Munitions List to the Commerce Control List consistent with Executive 
Order 13026 of November 15, 1996 (3 CFR, 1996 Comp., p.228) and pursuant 
to the Presidential Memorandum of that date. 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.
    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. See Sec.  740.13(e) of the EAR for 
information on releasing certain source code (and corresponding object 
code) which would be considered publicly available from ``EI'' controls.
    Note: After notification to BIS, 56-bit encryption items (including 
key management products not exceeding 512 bits) and up to (and 
including) 64-bit mass market encryption commodities and software are 
released from ``EI'' and ``NS'' controls. After a review by BIS, all 
other mass market encryption commodities and software eligible for the 
Cryptography Note also may be released from ``EI'' and ``NS'' controls. 
See Sec.  742.15(b)(1) and (b)(2) of the EAR.
License Exceptions
CIV: N/A
TSR: N/A
List of Items Controlled
    Unit: $ value.
    Related Controls: This entry does not control ``software'' 
``required'' for the ``use'' of equipment excluded from control under 
the Related Controls paragraph or the Technical Notes in ECCN 5A002 or 
``software'' providing any of the functions of equipment excluded from 
control under ECCN 5A002. These items are controlled under ECCN 5D992.
    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.

5D992 ``Information Security'' ``software'' not controlled by 5D002.

License Requirements

Reason for Control: AT

 
               Control(s)                          Country Chart
 
AT applies to 5D992.a.1 and .b.1........  AT Column 1

[[Page 719]]

 
AT applies to 5D992.a.2, b.2 and c......  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: 1
    a. ``Software'', as follows:
    a.1 ``Software'' specially designed or modified for the 
``development'', ``production'', or ``use'' of telecommunications and 
other information security equipment containing encryption (e.g., 
equipment controlled by 5A992.a);
    a.2. ``Software'' specially designed or modified for the 
``development'', ``production:, or ``use'' of information security or 
cryptologic equipment (e.g., equipment controlled by 5A992.b).
    b. ``Software'', as follows:
    b.1. ``Software'' having the characteristics, or performing or 
simulating the functions of the equipment controlled by 5A992.a.
    b.2. ``Software'' having the characteristics, or performing or 
simulating the functions of the equipment controlled by 5A992.b.
    c. ``Software'' designed or modified to protect against malicious 
computer damage, e.g., viruses.

                              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 applies 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 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: See also 5E992
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

5E992 ``Information Security'' ``technology'', not controlled by 5E002.
License Requirements
    Reason for Control: AT

 
               Control(s)                          Country Chart
 
AT applies to 5E992.a...................  AT Column 1
AT applies to 5E992.b...................  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:
    a. ``Technology'' n.e.s., for the ``development'', ``production'' or 
``use'' of telecommunications equipment and other information security 
and containing encryption (e.g., equipment controlled by 5A992.a) or 
``software'' controlled by 5D992.a.1 or b.1.
    b. ``Technology'', n.e.s., for the ``development'', ``production'' 
or ``use'' of ``information security'' or cryptologic equipment (e.g., 
equipment controlled by 5A992.b), or ``software'' controlled by 
5D992.a.2, b.2, or c.

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 6--Sensors and Lasers

                  A. Systems, Equipment and Components

6A001 Acoustics.

                          License Requirements

Reason for Control: NS, ATO

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

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

LVS: $3000; N/A for 6A001.a.1.b.1 object detection and location systems 
having a transmitting frequency below 5 kHz or a sound pressure level 
exceeding 210 dB (reference 1 [mu] Pa at 1 m) for equipment with an 
operating frequency in the band from 30 kHz to 2 kHz inclusive; 
6A001.a.2.a.1, a.2.a.2, a.2.a.4, a.2.a.5, 6A001.a.2.b; processing 
equipment controlled by 6A001.a.2.c, and specially designed for real 
time application with towed acoustic hydrophone arrays; a.2.e.1, 
a.2.e.2; and bottom or bay cable systems controlled by 6A001.a.2.f and 
having processing equipment specially designed

[[Page 720]]

for real time application with bottom or bay cable systems.
GBS: Yes for 6A001.a.1.b.4.
CIV:Yes for 6A001.a.1.b.4.
List of Items Controlled
Unit: $ value.
Related Controls: See also 6A991.
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 and specially designed components therefor, as follows:
    Note: 6A001.a.1 does not control:
    a. Depth sounders operating vertically below the apparatus, not 
including a scanning function exceeding  20[deg], 
and limited to measuring the depth of water, the distance of submerged 
or buried objects or fish finding;
    b. Acoustic beacons, as follows:
    1. Acoustic emergency beacons;
    2. Pingers specially designed for relocating or returning to an 
underwater position.
    a.1.a. Wide-swath bathymetric survey systems designed for sea bed 
topographic mapping, having all of the following:
    a.1.a.1. Being designed to take measurements at an angle exceeding 
20[deg] from the vertical;
    a.1.a.2. Being designed to measure depths exceeding 600 m below the 
water surface; and
    a.1.a.3. Being designed to provide any of the following:
    a.1.a.3.a. Incorporation of multiple beams any of which is less than 
1.9[deg]; or
    a.1.a.3.b. Data accuracies of better than 0.3% 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;
    a.1.b.2. Sound pressure level exceeding 224dB (reference 1 [mu]Pa 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 [mu]Pa 
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 operate with an unambiguous display range 
exceeding 5,120 m; or
    a.1.b.6. Designed to withstand pressure during normal operation at 
depths exceeding 1,000 m and having transducers with any of the 
following:
    a.1.b.6.a. Dynamic compensation for pressure; or
    a.1.b.6.b. Incorporating other than lead zirconate titanate as the 
transduction element;
    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:
    Notes: 1. The control status of acoustic projectors, including 
transducers, specially designed for other equipment is determined by the 
control status of the other equipment.
    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; or
    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.c.3. Side-lobe suppression exceeding 22 dB;
    a.1.d. Acoustic systems, equipment and specially designed components 
for determining the position of surface vessels or underwater vehicles 
designed 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;
    Note: 6A001.a.1.d includes:
    a. Equipment using coherent ``signal processing'' between two or 
more beacons and the hydrophone unit carried by the surface vessel or 
underwater vehicle;
    b. Equipment 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 and 
specially designed components therefor, as follows:
    a.2.a. Hydrophones having any of the following characteristics:
    Note: The control status of hydrophones specially designed for other 
equipment is determined by the control status of the other equipment.
    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; or
    a.2.a.2.b. Flexible piezoelectric ceramic materials;

[[Page 721]]

    a.2.a.3. A hydrophone sensitivity better than -180dB at any depth 
with no acceleration compensation;
    a.2.a.4. When designed to operate at depths exceeding 35 m with 
acceleration compensation; or
    a.2.a.5. 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 [mu]Pa. 
For example, a hydrophone of -160 dB (reference 1 V per [mu]Pa) 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 having any of the following:
    a.2.b.1. Hydrophone group spacing of less than 12.5 m;
    a.2.b.2. Designed or ``able to be modified'' to operate at depths 
exceeding 35m;
    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. Heading sensors controlled by 6A001.a.2.d;
    a.2.b.4. Longitudinally reinforced array hoses;
    a.2.b.5. An assembled array of less than 40 mm in diameter;
    a.2.b.6. Multiplexed hydrophone group signals designed 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.b.7. Hydrophone characteristics controlled by 6A001.a.2.a;
    a.2.c. Processing equipment, specially designed for towed acoustic 
hydrophone arrays, having ``user accessible programmability'' and time 
or frequency domain processing and correlation, including spectral 
analysis, digital filtering and beamforming using Fast Fourier or other 
transforms or processes;
    a.2.d. Heading sensors having all of the following:
    a.2.d.1. An accuracy of better than  0.5[deg]; 
and
    a.2.d.2. Designed 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;
    a.2.e. Bottom or bay cable systems having any of the following:
    a.2.e.1. Incorporating hydrophones controlled by 6A001.a.2.a; or
    a.2.e.2. Incorporating multiplexed hydrophone group signal modules 
having all of the following characteristics:
    a.2.e.2.a. Designed to operate at depths exceeding 35 m or having an 
adjustable or removal depth sensing device in order to operate at depths 
exceeding 35 m; and
    a.2.e.2.b. Capable of being operationally interchanged with towed 
acoustic hydrophone array modules;
    a.2.f. Processing equipment, specially designed for bottom or bay 
cable systems, having ``user accessible programmability'' and time or 
frequency domain processing and correlation, including spectral 
analysis, digital filtering and beamforming using Fast Fourier or other 
transforms or processes;
    b. 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       MT Column 1
 6A002.a.1, a.3, or .e that are
 specially designed or modified to
 protect ``missiles'' against nuclear
 effects (e.g., Electromagnetic Pulse
 (EMP), X-rays, combined blast and
 thermal effects), and usable for
 ``missiles''.
RS applies to 6A002.a.1, a.2, a.3, .c,   RS Column 1
 and .e.
CC applies to police-model infrared      CC Column 1
 viewers in 6A002.c.
AT applies to entire entry.............  AT Column 1
UN applies to 6A002.a.1, a.2 a.3 and c.  Rwanda.
 

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

LVS: $3000, except N/A for MT and for 6A002.a.1, a.2, a.3, .c, and .e
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value.
Related Controls: The following commodities are subject to the export 
licensing authority of U.S. Department of State, Office of Defense Trade 
Controls (22 CFR part 121): 1.) ``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; 2.) ``Space qualified''

[[Page 722]]

solid-state detectors defined in 6A002.a.1, ``space qualified'' imaging 
sensors (e.g., ``monospectral imaging sensors'' and ``multispectral 
imaging sensors'') defined in 6A002.b.2.b.1, and ``space qualified'' 
cryocoolers defined in 6A002.d.1, unless, on or after September 23, 
2002, the Department of State issues a commodity jurisdiction 
determination assigning the export licensing authority to the Department 
of Commerce, Bureau of Industry and Security. See also 6A102, 6A202, and 
6A992
    Note: Exporters may apply for a commodity jurisdiction request with 
the Department of State, Office of Defense Trade Controls for ``space 
qualified'' solid-state detectors defined in 6A002.a.1 and imaging 
sensors (e.g., ``monospectral imaging sensors'' and ``multispectral 
imaging sensors'') defined in 6A002.b.2.b.1 that may have predominant 
civil application(s).
Related Definitions: N/A
Items:
    a. Optical detectors, as follows:
    Note: 6A002.a does not control germanium or silicon photodevices.
    a.1. ``Space-qualified'' solid-state detectors, as follows:
    a.1.a. ``Space-qualified'' solid-state detectors, having all of the 
following:
    a.1.a.1. A peak response in the wavelength range exceeding 10 nm but 
not exceeding 300 nm; 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. ``Space-qualified'' solid-state detectors, having all of the 
following:
    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;
    a.1.c. ``Space-qualified'' solid-state detectors having 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 of the following:
    a.2.a.1. A peak response in the 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 12 [mu]m or less; and
    a.2.a.3. Any of the following photocathodes:
    a.2.a.3.a. S-20, S-25 or multialkali photocathodes with a luminous 
sensitivity exceeding 350 [mu]A/lm;
    a.2.a.3.b. GaAs or GaInAs photocathodes; or
    a.2.a.3.c. Other III-V compound semiconductor photocathodes;
    Note: 6A002.a.2.a.3.c does not apply to compound semiconductor 
photocathodes with a maximum radiant sensitivity of 10 mA/W or less.
    a.2.b. Specially designed components, as follows:
    a.2.b.1. Microchannel plates having a hole pitch (center-to-center 
spacing) of 12 [mu]m or less;
    a.2.b.2. GaAs or GaInAs photocathodes;
    a.2.b.3. Other III-V compound semiconductor photocathodes;
    Note: 6A002.a.2.b.3 does not control compound semiconductor 
photocathodes with a maximum radiant sensitivity of 10 mA/W or less.
    a.3. Non-``space-qualified'' ``focal plane arrays'', as follows:
    Technical Notes: 
    1. Linear or two-dimensional multi-element detector arrays are 
referred to as ``focal plane arrays''.
    2. For the purposes of 6A002.a.3. ``cross scan direction'' is 
defined as the axis parallel to the linear array of detector elements 
and the ``scan direction'' is defined as the axis perpendicular to the 
linear array of detector elements.
    Note 1: 6A002.a.3 includes photoconductive arrays and photovoltaic 
arrays.
    Note 2: 6A002.a.3 does not control:
    a. Silicon ``focal plane arrays'';
    b. Multi-element (not to exceed 16 elements) encapsulated 
photoconductive cells using either lead sulphide or lead selenide;
    c. Pyroelectric detectors using any of the following:
    c.1. Triglycine sulphate and variants;
    c.2. Lead-lanthanum-zirconium titanate and variants;
    c.3. Lithium tantalate;
    c.4. Polyvinylidene fluoride and variants; or
    c.5. Strontium barium niobate and variants.
    a.3.a. Non-``space-qualified'' ``focal plane arrays'', having all of 
the following:
    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. Non-``space-qualified'' ``focal plane arrays'', having all of 
the following:
    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;
    a.3.c. Non-``space-qualified'' non-linear (2-dimensional) ``focal 
plane arrays'', having individual elements with a peak response in the 
wavelength range exceeding 1,200 nm but not exceeding 30,000 nm;
    a.3.d. Non-``space-qualified'' linear (1-dimensional) ``focal plane 
arrays'', having all of the following:

[[Page 723]]

    a.3.d.1. Individual elements with a peak response in the wavelength 
range exceeding 1,200 nm but not exceeding 2,500 nm; and
    a.3.d.2. Any of the following:
    a.3.d.2.a. A ratio of scan direction dimension of the detector 
element to the cross-scan direction dimension of the detector element of 
less than 3.8; or
    a.3.d.2.b. Signal processing in the element (SPRITE);
    a.3.e. Non-``space-qualified'' linear (1-dimensional) ``focal plane 
arrays'', having individual elements with a peak response in the 
wavelength range exceeding 2,500 nm but not exceeding 30,000 nm.
    b. ``Monospectral imaging sensors'' and ``multispectral imaging 
sensors'' designed for remote sensing applications, having any of the 
following:
    b.1. An Instantaneous-Field-Of-View (IFOV) of less than 200 [mu]rad 
(microradians); or
    b.2. Being specified for operation in the wavelength range exceeding 
400 nm but not exceeding 30,000 nm and having all the following;
    b.2.a. Providing output imaging data in digital format; and
    b.2.b. Being any of the following:
    b.2.b.1. ``Space-qualified''; or
    b.2.b.2. Designed for airborne operation, using other than silicon 
detectors, and having an IFOV of less than 2.5 mrad (milliradians).
    c. Direct view imaging equipment operating in the visible or 
infrared spectrum, incorporating any of the following:
    c.1. Image intensifier tubes having the characteristics listed in 
6A002.a.2.a; or
    c.2. ``Focal plane arrays'' having the characteristics listed in 
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, having a cooling source 
temperature below 218 K (-55 [deg]C), as follows:
    d.2.a. Closed cycle type 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 having bore 
(outside) diameters of less than 8 mm;
    d.3. Optical sensing fibers specially fabricated either 
compositionally or structurally, or modified by coating, to be 
acoustically, thermally, inertially, electromagnetically or nuclear 
radiation sensitive.
    e. ``Space qualified'' ``focal plane arrays'' having more than 2,048 
elements per array and having a peak response in the wavelength range 
exceeding 300 nm but not exceeding 900 nm.

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         NP Column 1.
 paragraphs 6A003.a.2, a.3 and a.4.
RS applies to items controlled in         RS Column 1.
 6A003.b.3 and b.4.
AT applies to entire entry..............  AT Column 1.
UN applies to items controlled in         Rwanda.
 6A003.b.3 and b.4.
------------------------------------------------------------------------


License Exceptions
LVS: $1500, except N/A for 6A003.a.2 through a.6, b.1, b.3 and b.4.
GBS: Yes for 6A003.a.1.
CIV: Yes for 6A003.a.1.
List of Items Controlled
Unit: Number.
Related Controls: (1) See ECCNs 6E001 (``development''), 6E002 
(``production''), and 6E201 (``use'') for technology for items 
controlled under this entry. (2) Also see ECCN 6A203. (3) See ECCN 
8A002.d and .e for cameras specially designed or modified for underwater 
use.
Related Definitions: N/A.
Items:
    a. Instrumentation cameras and specially designed components 
therefor, as follows:
    Note: Instrumentation cameras, controlled by 6A003.a.3 to 6A003.a.5, 
with modular structures should be evaluated by their maximum capability, 
using plug-ins available according to the camera manufacturer's 
specifications.
    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/s;
    Note: 6A003.a.1 does not control cinema recording cameras designed 
for civil purposes.

[[Page 724]]

    a.2. Mechanical high speed cameras, in which the film does not move, 
capable of recording at rates exceeding 1,000,000 frames/s 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 having writing speeds 
exceeding 10 mm/[mu]s;
    a.4. Electronic framing cameras having a speed exceeding 1,000,000 
frames/s;
    a.5. Electronic cameras, having all of the following:
    a.5.a. An electronic shutter speed (gating capability) of less than 
1 [mu]s per full frame; and
    a.5.b. A read out time allowing a framing rate of more than 125 full 
frames per second.
    a.6. Plug-ins, having all of the following characteristics:
    a.6.a. Specially designed for instrumentation cameras which have 
modular structures and that are controlled by 6A003.a; and
    a.6.b. Enabling these cameras to meet the characteristics specified 
in 6A003.a.3, 6A003.a.4 or 6A003.a.5, according to the manufacturer's 
specifications.
    b. Imaging cameras, as follows:
    Note: 6A003.b does not control television or video cameras specially 
designed for television broadcasting.
    b.1. Video cameras incorporating solid state sensors, having a peak 
response in the wavelength range exceeding 10nm, but not exceeding 
30,000 nm and any of the following:
    b.1.a. More than 4 x 106 ``active pixels'' per solid 
state array for monochrome (black and white) cameras;
    b.1.b. More than 4 x 106 ``active pixels'' per solid 
state array for color cameras incorporating three solid state arrays; or
    b.1.c. More than 12 x 106 ``active pixels'' for solid 
state array color cameras incorporating one solid state array;
    Technical Note: For the purposes of this entry, digital video 
cameras should be evaluated by the maximum number of ``active pixels'' 
used for capturing moving images.
    b.2. Scanning cameras and scanning camera systems, having all of the 
following:
    b.2.a.A peak response in the wavelength range exceeding 10 nm, but 
not exceeding 30,000 nm;
    b.2.b. Linear detector arrays with more than 8,192 elements per 
array; and
    b.2.c. Mechanical scanning in one direction;
    b.3. Imaging cameras incorporating image intensifier tubes having 
the characteristics listed in 6A002.a.2.a;
    b.4. Imaging cameras incorporating ``focal plane arrays'' having the 
characteristics listed in 6A002.a.3.
    Note: 6A003.b.4 does not control imaging cameras incorporating 
linear ``focal plane arrays'' with twelve elements or fewer, not 
employing time-delay-and-integration within the element, designed for 
any of the following:
    a. Industrial or civilian intrusion alarm, traffic or industrial 
movement control or counting systems;
    b. Industrial equipment used for inspection or monitoring of heat 
flows in buildings, equipment or industrial processes;
    c. Industrial equipment used for inspection, sorting or analysis of 
the properties of materials;
    d. Equipment specially designed for laboratory use; or
    e. Medical equipment.

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 Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

LVS: $3000
GBS: Yes for 6A004.a.1, a.2, a.4, b, d.2, and d.4
CIV: Yes for 6A004.a.1, a.2, a.4, b, d.2, and d.4

List of Items Controlled

Unit: Equipment in number; cable in meters/feet; components in $ value.
Related Controls: ``Space qualified'' components for optical systems 
defined in 6A004.c and optical control equipment defined in 6A004.d.1 
are subject to the export licensing authority of the Department of 
State, Office of Defense Trade Controls (22 CFR part 121). See also 
6A994
Related Definitions: N/A.
Items:
    a. Optical mirrors (reflectors), as follows:
    a.1. ``Deformable mirrors'' having 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 having an average ``equivalent 
density'' of less than 30 kg/m\2\ and a total mass exceeding 10 kg;
    a.3. Lightweight ``composite'' or foam mirror structures having an 
average ``equivalent density'' of less than 30 kg/m\2\ and a total mass 
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 633 nm) having a control bandwidth exceeding 100 Hz.
    b. Optical components made from zinc selenide (ZnSe) or zinc 
sulphide (ZnS) with

[[Page 725]]

transmission in the wavelength range exceeding 3,000 nm but not 
exceeding 25,000 nm and having any of the following:
    b.1. Exceeding 100 cm3 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 having surface coatings (single-layer or 
multi-layer, metallic or dielectric, conducting, semiconducting or 
insulating) or having protective films;
    c.3. Segments 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 m 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 control equipment, as follows:
    d.1. Specially designed to maintain the surface figure or 
orientation of the ``space-qualified'' components controlled by 
6A004.c.1 or 6A004.c.3;
    d.2. Having steering, tracking, stabilization or resonator alignment 
bandwidths equal to or more than 100 Hz and an accuracy of 10 [mu]rad 
(microradians) or less;
    d.3. Gimbals having all of the following:
    d.3.a. A maximum slew exceeding 5[deg];
    d.3.b. A bandwidth of 100 Hz or more;
    d.3.c. Angular pointing errors of 200 [mu]rad (microradians) or 
less; and
    d.3.d. Having any of the following:
    d.3.d.1. Exceeding 0.15 m but not exceeding 1 m in diameter or major 
axis length and capable of angular accelerations exceeding 2 rad 
(radians)/s\2\; or
    d.3.d.2. Exceeding 1 m in diameter or major axis length and capable 
of angular accelerations exceeding 0.5 rad (radians)/s\2\;
    d.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.
    e. Aspheric optical elements having all of the following 
characteristics:
    e.1. The largest dimension of the optical-aperture is greater than 
400 mm;
    e.2. The surface roughness is less than 1 nm (rms) for sampling 
lengths equal to or greater than 1 mm; and
    e.3. The coefficient of linear thermal expansion's absolute 
magnitude is less than 3 x 10-\6\/K at 25 [deg]C;
    Technical Notes: 1. An ``aspheric optical element'' is any element 
used in an optical system whose imaging surface or surfaces are designed 
to depart from the shape of an ideal sphere.
    2. Manufacturers are not required to measure the surface roughness 
listed in 6A004.e.2 unless the optical element was designed or 
manufactured with the intent to meet, or exceed, the control parameter.
    Note: 6A004.e does not control aspheric optical elements having any 
of the following:
    a. A largest optical-aperture dimension less than 1 m and a focal 
length to aperture ratio equal to or greater than 4.5:1;
    b. A largest optical-aperture dimension equal to or greater than 1 m 
and a focal length to aperture ratio equal to or greater than 7:1;
    c. Being designed as Fresnel, flyeye, stripe, prism or diffractive 
optical elements;
    d. Being fabricated from borosilicate glass having a coefficient of 
linear thermal expansion greater than 2.5 x 10-\6\/K at 25 
[deg]C; or
    e. Being an x-ray optical element having inner mirror capabilities 
(e.g., tube-type mirrors).
    N.B.: For aspheric optical elements specially designed for 
lithographic equipment, see 3B001.

6A005 ``Lasers'' (other than those described in 0B001.g.5 or .h.6), 
          components and optical equipment, as follows (see List of 
          Items Controlled). 

License Requirements
Reason for Control: NS, NP, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.
NP applies to ``lasers'' controlled by   NP Column 1.
 6A005.a.1.c, a.2.a, a.4.c., a.6,
 c.1.b, c.2.b.2.a, c.2.b.2.b, c.2.c.2,
 or d.2.c, as described in the
 following License Requirements Note.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

License Requirements Note: NP controls apply to the following ``lasers'' 
controlled by 6A005:
    (a) Pulsed excimer ``lasers'' controlled by 6A005.a.1.c having all 
of the following characteristics:
    (1) Operating at wavelengths between 240 and 360 nm;
    (2) A repetition rate  250 Hz; and
    (3) An average output power  500 W;
    (b) Copper vapor ``lasers'' controlled by 6A005.a.2.a having all of 
the following characteristics:
    (1) Operating at wavelengths between 500 and 600 nm; and
    (2) An average output power = 40 W;
    (c) Pulsed carbon dioxide ``lasers'' controlled by 6A005.a.4.c 
(except industrial CO2 lasers used in applications such as 
cutting and welding) having all of the following characteristics:
    (1) Operating at wavelengths between 9,000 and 11,000 nm;
    (2) A repetition rate  250 Hz;
    (3) An average output power  500 W; and

[[Page 726]]

    (4) A pulse width < 200 ns;
    (d) Argon ion ``lasers'' controlled by 6A005.a.6 having all of the 
following characteristics:
    (1) Operating at wavelengths between 400 and 515 nm; and
    (2) An average output power  40 W;
    (e) Alexandrite ``lasers'' controlled by 6A005.c.1.b having all of 
the following characteristics:
    (1) Operating at wavelengths between 720 and 800 nm;
    (2) A bandwidth <= 0.005 nm;
    (3) A repetition rate  125 Hz; and
    (4) Average output power  30 W;
    (f) Single-transverse mode output neodymium-doped (other than glass) 
``lasers'' controlled by 6A005.c.2.b.2.a with an average output power 
 40 W;
    (g) Multiple-transverse mode output neodymium-doped (other than 
glass) ``lasers'' controlled by 6A005.c.2.b.2.b with an average output 
power  50 W;
    (h) Neodymium-doped (other than glass) ``lasers'' controlled by 
6A005.c.2.c.2 having all of the following characteristics:
    (1) Incorporating frequency doubling for output wavelength between 
500 and 550 nm; and
    (2) Average output power  40 W;
    (i) Tunable pulsed single-mode dye ``lasers'' controlled by 
6A005.d.2.c operating at wavelengths between 300 and 800 nm.
License Exceptions
LVS: N/A for NP items. $3000 for all other items.
GBS: Yes, for 6A005.d (except d.2.c), 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; CO ``lasers'' having a CW maximum rated single or 
multimode output power not exceeding 10 kW; CO2 ``lasers'' 
controlled by 6A005.a.4 that operate in CW multiple-transverse mode; and 
having a CW output power not exceeding 15 kW; Neodymium-doped (other 
than glass), pulse-excited, ``Q-switched lasers'' controlled by 
6A005.c.2.b.2.b having a pulse duration equal to or more than 1 ns; and 
a multiple-transverse mode output with a ``peak power'' not exceeding 
400 MW; Neodymium-doped (other than glass) ``lasers'' controlled by 
6A005.c.2.b.3.b or 6A005.c.2.b.4.b that have an output wavelength 
exceeding 1,000 nm, but not exceeding 1,100 nm; and an average or CW 
output power not exceeding 2 kW; and operate in a pulse-excited, non-
``Q-switched'' multiple-transverse mode; or in a continuously excited, 
multiple-transverse mode; and 6A005.f.1.
CIV: Yes, for 6A005.d (except d.2.c), 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; CO ``lasers'' having a CW maximum rated single or 
multimode output power not exceeding 10 kW; CO2 ``lasers'' 
controlled by 6A005.a.4 that operate in CW multiple-transverse mode; and 
having a CW output power not exceeding 15 kW; Neodymium-doped (other 
than glass), pulse-excited, ``Q-switched lasers'' controlled by 
6A005.c.2.b.2.b having a pulse duration equal to or more than 1 ns; and 
a multiple-transverse mode output with a ``peak power'' not exceeding 
400 MW; Neodymium-doped (other than glass) ``lasers'' controlled by 
6A005.c.2.b.3.b or 6A005.c.2.b.4.b that have an output wavelength 
exceeding 1,000 nm, but not exceeding 1,100 nm; and an average or CW 
output power not exceeding 2 kW; and operate in a pulse-excited, non-
``Q-switched'' multiple-transverse mode; or in a continuously excited, 
multiple-transverse mode; and 6A005.f.1.
List of Items Controlled
Unit: Equipment in number; components and accessories in $ value.
Related Controls: (1) See ECCN 6D001 for ``software'' for items 
controlled under this entry. (2) See ECCNs 6E001 (``development''), 
6E002 (``production''), and 6E201 (``use'') for technology for items 
controlled under this entry. (3) Also see ECCNs 6A205 and 6A995. (4) See 
ECCN 3B001 for excimer ``lasers'' specially designed for lithography 
equipment. (5) ``Lasers'' specially designed or prepared for use in 
isotope separation are subject to the export licensing authority of the 
Nuclear Regulatory Commission (see 10 CFR part 110). (6) 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).
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 as follows:
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 having any of 
the following:
    a.1.a.1. An output energy exceeding 50 mJ per pulse; or
    a.1.a.2. An average output power exceeding 1 W;

[[Page 727]]

    a.1.b. An output wavelength exceeding 150 nm but not exceeding 190 
nm and having any of the following:
    a.1.b.1. An output energy exceeding 1.5 J per pulse; or
    a.1.b.2. An average output power exceeding 120 W;
    a.1.c. An output wavelength exceeding 190 nm but not exceeding 360 
nm and having any of the following:
    a.1.c.1. An output energy exceeding 10 J per pulse; or
    a.1.c.2. An average output power exceeding 500 W; or
    a.1.d. An output wavelength exceeding 360 nm and having any of the 
following:
    a.1.d.1. An output energy exceeding 1.5 J per pulse; or
    a.1.d.2. An average output power exceeding 30 W;
    N.B. For excimer ``lasers'' specially designed for lithography 
equipment, see 3B001.
    a.2. Metal vapor ``lasers'', as follows:
    a.2.a. Copper (Cu) ``lasers'' having an average output power 
exceeding 20 W;
    a.2.b. Gold (Au) ``lasers'' having an average output power exceeding 
5 W;
    a.2.c. Sodium (Na) ``lasers'' having an output power exceeding 5 W;
    a.2.d. Barium (Ba) ``lasers'' having an average output power 
exceeding 2 W;
    a.3. Carbon monoxide (CO) ``lasers'' having any of the following:
    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 15 kW;
    a.4.b. A pulsed output having a ``pulse duration'' exceeding 10 
[mu]s and having any of the following:
    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 having a ``pulse duration'' equal to or less 
than 10 [mu]s; and having any of the following:
    a.4.c.1. A pulse energy exceeding 5 J per pulse; 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'', as follows:
    a.5.c.1. Oxygen Iodine (O2-I) ``lasers'';
    a.5.c.2. Deuterium Fluoride-Carbon dioxide (DF-CO2) 
``lasers'';
    a.6. Krypton ion or argon ion ``lasers'' having any of the 
following:
    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;
    a.7. Other gas ``lasers'', having any of the following:
    Note: 6A005.a.7 does not control nitrogen ``lasers''.
    a.7.a. An output wavelength not exceeding 150 nm and having any of 
the following:
    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 having any of the following:
    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 having any of the following:
    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:
    b.1. Individual single-transverse mode semiconductor ``lasers'' 
having any of the following:
    b.1.a. A wavelength equal to or less than 1510 nm, and having an 
average or CW output power exceeding 1.5 W; or
    b.1.b. A wavelength greater than 1510 nm, and having an average or 
CW output power exceeding 500 mW;
    b.2. Individual, multiple-transverse mode semiconductor ``lasers'' 
having all of the following:
    b.2.a. A wavelength of less than 950 nm or more than 2000 nm; and
    b.2.b. An average or CW output power exceeding 10 W.
    b.3. Individual arrays of individual semiconductor ``lasers'', 
having any of the following:
    b.3.a. A wavelength of less than 950 nm and an average or CW output 
power exceeding 60 W; or
    b.3.b. A wavelength equal to or greater than 2000 nm and an average 
or CW output power exceeding 10 W;
    Technical Note: Semiconductor ``lasers'' are commonly called 
``laser'' diodes.
    Note 1: 6A005.b includes semiconductor ``lasers'' having optical 
output connectors (e.g. fiber optic pigtails).
    Note 2: The control status of semiconductor ``lasers'' specially 
designed for other equipment is determined by the control status of the 
other equipment.

[[Page 728]]

    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 having any of the 
following:
    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 having any of the following:
    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 having any of the 
following:
    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. Neodymium glass ``lasers'', as follows:
    c.2.a.1. ``Q-switched lasers'' having any of the following:
    c.2.a.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.a.1.b. An output energy exceeding 50 J per pulse;
    c.2.a.2. Non-''Q-switched lasers'' having any of the following:
    c.2.a.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.a.2.b. An output energy exceeding 100 J per pulse;
    c.2.b. Neodymium-doped (other than glass) ``lasers'', having an 
output wavelength exceeding 1,000 nm but not exceeding 1,100 nm, as 
follows:
    N.B.: 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.
    c.c.2.b.1. Pulse-excited, mode-locked, ``Q-switched lasers'' having 
a ``pulse duration'' of less than 1 ns and having any of the following:
    c.2.b.1.a. A ``peak power'' exceeding 5 GW;
    c.2.b.1.b. An average output power exceeding 10 W; or
    c.2.b.1.c. A pulsed energy exceeding 0.1 J;
    c.2.b.2. Pulse-excited, ``Q-switched lasers'' having a pulse 
duration equal to or more than 1 ns, and having any of the following:
    c.2.b.2.a. A single-transverse mode output having:
    c.2.b.2.a.1. A ``peak power'' exceeding 100 MW;
    c.2.b.2.a.2. An average output power exceeding 20 W; or
    c.2.b.2.a.3. A pulsed energy exceeding 2 J; or
    c.2.b.2.b. A multiple-transverse mode output having:
    c.2.b.2.b.1. A ``peak power'' exceeding 400 MW;
    c.2.b.2.b.2. An average output power exceeding 2 kW; or
    c.2.b.2.b.3. A pulsed energy exceeding 2 J;
    c.2.b.3. Pulse-excited, non-''Q-switched lasers'', having:
    c.2.b.3.a. A single-transverse mode output having:
    c.2.b.3.a.1. A ``peak power'' exceeding 500 kW; or
    c.2.b.3.a.2. An average output power exceeding 150 W; or
    c.2.b.3.b. A multiple-transverse mode output having:
    c.2.b.3.b.1. A ``peak power'' exceeding 1 MW; or
    c.2.b.3.b.2. An average power exceeding 2 kW;
    c.2.b.4. Continuously excited ``lasers'' having:
    c.2.b.4.a. A single-transverse mode output having:
    c.2.b.4.a.1. A ``peak power'' exceeding 500 kW; or
    c.2.b.4.a.2. An average or CW output power exceeding 150 W; or
    c.2.b.4.b. A multiple-transverse mode output having:
    c.2.b.4.b.1. A ``peak power'' exceeding 1 MW; or
    c.2.b.4.b.2. An average or CW output power exceeding 2 kW;
    c.2.c. Other non-``tunable'' ``lasers'', having any of the 
following:
    c.2.c.1. A wavelength less than 150 nm and having any of the 
following:
    c.2.c.1.a. An output energy exceeding 50 mJ per pulse and a pulsed 
``peak power'' exceeding 1 W; or
    c.2.c.1.b. An average or CW output power exceeding 1 W;
    c.2.c.2. A wavelength of 150 nm or more but not exceeding 800 nm and 
having any of the following:
    c.2.c.2.a. An output energy exceeding 1.5 J per pulse and a pulsed 
``peak power'' exceeding 30 W; or
    c.2.c.2.b. An average or CW output power exceeding 30 W;
    c.2.c.3. A wavelength exceeding 800 nm but not exceeding 1,400 nm, 
as follows:
    c.2.c.3.a. ``Q-switched lasers'' having:
    c.2.c.3.a.1. An output energy exceeding 0.5 J per pulse and a pulsed 
``peak power'' exceeding 50 W; or

[[Page 729]]

    c.2.c.3.a.2. An average output power exceeding:
    c.2.c.3.a.2.a. 10 W for single-mode ``lasers'';
    c.2.c.3.a.2.b. 30 W for multimode ``lasers'';
    c.2.c.3.b. Non-``Q-switched lasers'' having:
    c.2.c.3.b.1. An output energy exceeding 2 J per pulse and a pulsed 
``peak power'' exceeding 50 W; or
    c.2.c.3.b.2. An average or CW output power exceeding 50 W; or
    c.2.c.4. A wavelength exceeding 1,400 nm and having any of the 
following:
    c.2.c.4.a. An output energy exceeding 100 mJ per pulse and a pulsed 
``peak power'' exceeding 1 W; or
    c.2.c.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 
having any of the following:
    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 having 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 
having any of the following:
    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 having any of the 
following:
    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. Components, as follows:
    e.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.
    e.2. Optical mirrors or transmissive or partially transmissive 
optical or electro-optical components specially designed for use with 
controlled ``lasers'';
    f. Optical equipment, as follows:
    N.B. For shared aperture optical elements, capable of operating in 
``Super-High Power Laser'' (``SHPL'') applications, see the U.S. 
Munitions List (22 CFR part 121).
    f.1. Dynamic wavefront (phase) measuring equipment capable of 
mapping at least 50 positions on a beam wavefront having any the 
following:
    f.1.a. Frame rates equal to or more than 100 Hz and phase 
discrimination of at least 5% of the beam's wavelength; or
    f.1.b. Frame rates equal to or more than 1,000 Hz and phase 
discrimination of at least 20% of the beam's wavelength;
    f.2. ``Laser'' diagnostic equipment capable of measuring ``SHPL'' 
system angular beam steering errors of equal to or less than 10 [mu]rad;
    f.3. Optical equipment and components specially designed for a 
phased-array ``SHPL'' system for coherent beam combination to an 
accuracy of lambda/10 at the designed wavelength, or 0.1 [mu]m, 
whichever is the smaller;
    f.4. Projection telescopes specially designed for use with ``SHPL'' 
systems.

6A006 ``Magnetometers'', ``magnetic gradiometers'', ``intrinsic magnetic 
          gradiometers'' and compensation systems, and specially 
          designed components therefor, as follows (see List of Items 
          Controlled).

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 Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

LVS: $1500
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: See also 6A996. This entry does not control 
instruments specially designed for biomagnetic measurements for medical 
diagnostics.
Related Definitions: N/A
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 any of the following:
    b.1. 0.05 nT rms/square root Hz at frequencies of less than 1 Hz;

[[Page 730]]

    b.2. 1 x 10-3 nT rms/square root Hz at frequencies of 1 
Hz or more but not exceeding 10 Hz; or
    b.3. 1 x 10-4 nT rms/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, 6A006.b or 6A006.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, components 
manufactured from ``superconductive'' materials:
    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 [micro]m 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, as follows 
          (see List of Items Controlled).

License Requirements

Reason for Control: NS, MT, AT

 
               Control(s)                         Country Chart
 
NS applies to entire entry.............  NS Column 2
MT applies to 6A007.b and .c when the    MT Column 1
 accuracies in 6A007.b.1 and b.2 are
 met or exceeded.
AT applies to entire entry.............  AT Column 1
 

License Exceptions

LVS: $3000; N/A for MT
GBS: N/A
CIV: N/A

List of Items Controlled
Unit: $ value
Related Controls: See also 6A107 and 6A997
Related Definitions: N/A
Items: a. Gravity meters designed or modified for ground use having a 
static accuracy of less (better) than 10 [mu]gal;

    Note: 6A007.a does not control ground gravity meters of the quartz 
element (Worden) type.

    b. Gravity meters designed for mobile platforms for ground, marine, 
submersible, space or airborne use, having all of the following:
    b.1. A static accuracy of less (better) than 0.7 mgal; and
    b.2. An in-service (operational) accuracy of less (better) than 0.7 
mgal having 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 having any of the 
          following characteristics (see List of Items Controlled), and 
          specially designed components therefor.

License Requirements

Reason for Control: NS, MT, RS, AT.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 2.
MT applies to items that are designed    MT Column 1.
 for airborne applications and that are
 usable in systems controlled for MT
 reasons.
RS applies to 6A008.j.1................  RS Column 1.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------

License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

LVS: $5000; N/A for MT and for 6A008.j.1 and 6A008.1.3
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: This entry does not control: Secondary surveillance 
radar (SSR); Car radar designed for collision prevention; Displays or 
monitors used for Air Traffic Control (ATC) having no more than 12 
resolvable elements per mm; Meteorological (weather) radar. See also 
6A108 and 6A998. ECCN 6A998 controls, inter alia, the LIDAR equipment 
excluded by the note to paragraph j of this ECCN (6A008).
Related Definitions: N/A.
Items:

[[Page 731]]

    a. Operating at frequencies from 40 GHz to 230 GHz and having an 
average output power exceeding 100 mW;
    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) radar mode, 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 (PAR) 
equipment conforming to ICAO standards.
    g. Specially designed 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 any of the following:
    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 en route air 
traffic control, provided that all the following conditions are met:
    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 en route ATC center; and
    4. It is to be permanently installed;
    c. Weather balloon tracking radars.
    j. Being ``laser'' radar or Light Detection and Ranging (LIDAR) 
equipment, having any 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 [mu]rad 
(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 any of the following:
    k.1. A ``pulse compression'' ratio exceeding 150; or
    k.2. A pulse width of less than 200 ns; or
    l. Having data processing sub-systems with any of the following:
    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 ATC 
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 
designed 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, 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

LVS: $5000, except N/A for Rwanda
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: The list of items controlled is contained in the ECCN heading.

6A102 Radiation hardened detectors, other than those controlled by 
          6A002, specially designed or modified for 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 10\5\ 
          rads (silicon).

License Requirements

Reason for Control: MT, AT

[[Page 732]]



 
               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: Components in number
Related Controls: N/A
Related Definitions: In this entry, 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.

6A103 Radomes designed to withstand a combined thermal shock greater 
          than 100 cal/sq cm accompanied by a peak over pressure of 
          greater than 50 kPa, usable in protecting ``missiles'' against 
          nuclear effects (e.g., Electromagnetic Pulse (EMP), X-rays, 
          combined blast and thermal effects), and usable for 
          ``missiles.'' (These items are subject to the export licensing 
          authority of the U.S. Department of State, Directorate of 
          Defense Trade Controls. See 22 CFR part 121.)

6A107 Gravity meters (gravimeters) and specially designed components for 
          gravity meters and gravity gradiometers, as follows (see List 
          of Items Controlled).

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:
    a. Gravity meters (gravimeters), other than those controlled by 
6A007.b, designed or modified for airborne or marine use, and having a 
static or operational accuracy of 7 x 10-6 m/s2 (0.7 milligal) or 
better, and having a time to steady-state registration of two minutes or 
less, usable for ``missiles'';
    b. Specially designed components for gravity meters controlled in 
6A007. b or 6A107.a and gravity gradiometers controlled in 6A007.c.

6A108 Radar systems and tracking systems, other than those controlled by 
          6A008, as follows (see List of Items Controlled).

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: (1) 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. (2) 
Items in 6A108.a that are specially designed or modified for 
``missiles'' or for items on the U.S. Munitions List are subject to the 
export licensing authority of the U.S. Department of State, Defense 
Trade Controls (see 22 CFR part 121).
Related Definitions: 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.
Items:
    a. Radar and laser radar systems designed or modified for use in 
``missiles'';
    Note: 6A108.a includes the following:
    a. Terrain contour mapping equipment;
    b. Imaging sensor equipment;
    c. Scene mapping and correlation (both digital and analog) 
equipment;
    d. Doppler navigation radar equipment.
    b. Precision tracking systems, usable for ``missiles'', as follows:
    b.1. Tracking systems which use a code translator installed on the 
rocket or unmanned air vehicle 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 m rms;

[[Page 733]]

    b.2.c. Velocity resolution better than 3 m/s.

6A202 Photomultiplier tubes having both of the following characteristics 
          (see List of Items Controlled). 

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: See ECCNs 6E001 (``development''), 6E002 
(``production''), and 6E201 (``use'') for technology for items 
controlled under this entry.
Related Definitions: N/A
Items:

    a. Photocathode area of greater than 20 cm\2\; and
    b. Anode pulse rise time of less than 1 ns.

6A203 Cameras and components, other than those controlled by 6A003, as 
          follows (see List of Items Controlled).

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: (1) See ECCNs 6E001 (``development''), 6E002 
(``production''), and 6E201 (``use'') for technology for items 
controlled under this entry. (2) Also see ECCN 6A003.a.2, a.3, and a.4.
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;
    Note: Components of cameras controlled by 6A203.a include their 
synchronizing electronics units and rotor assemblies consisting of 
turbines, mirrors and bearings.
    b. Electronic streak cameras, electronic framing cameras, tubes and 
devices, as follows:
    b.1. Electronic streak cameras capable of 50 ns or less time 
resolution;
    b.2. Streak tubes for cameras controlled by 6A203.b.1;
    b.3. Electronic (or electronically shuttered) framing cameras 
capable of 50 ns or less frame exposure time;
    b.4. Framing tubes and solid-state imaging devices for use with 
cameras controlled by 6A203.b.3, as follows:
    b.4.a. Proximity focused image intensifier tubes having the 
photocathode deposited on a transparent conductive coating to decrease 
photocathode sheet resistance;
    b.4.b. Gated silicon intensifier target (SIT) videcon tubes, where a 
fast system allows gating the photoelectrons from the photocathode 
before they impinge on the SIT plate;
    b.4.c. Kerr or Pockels cell electro-optical shuttering;
    b.4.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.3.
    c. Radiation-hardened TV cameras, or lenses therefor, specially 
designed or rated as radiation hardened to withstand a total radiation 
dose greater than 50 x 10\3\ Gy (silicon) (5 x 10\6\ rad (silicon)) 
without operational degradation.
    Technical Note: The term Gy (silicon) refers to the energy in Joules 
per kilogram absorbed by an unshielded silicon sample when exposed to 
ionizing radiation.

6A205 ``Lasers'', ``laser'' amplifiers and oscillators, other than those 
          controlled by 6A005 or described in 0B001.g.5 or h.6, as 
          follows (see List of Items Controlled). 

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: (1) See ECCNs 6E001 (``development''), 6E002 
(``production''), and 6E201 (``use'') for technology for items 
controlled under this entry. (2) Also see ECCNs 6A005 and 6A995. (3) 
``Lasers'' specially designed or prepared for use in isotope separation 
are subject to the export licensing authority of the Nuclear Regulatory 
Commission (see 10 CFR part 110).

[[Page 734]]

Related Definitions: N/A
Items:
    a. Argon ion ``lasers'' having both of the following 
characteristics:
    a.1. Operating at wavelengths between 400 nm and 515 nm; and
    a.2. An average output power greater than 40 W;
    b. Tunable pulsed single-mode dye laser oscillators having all of 
the following characteristics:
    b.1. Operating at wavelengths between 300 nm and 800 nm;
    b.2. An average output power greater than 1 W;
    b.3. A repetition rate greater than 1 kHz; and
    b.4. Pulse width less than 100 ns;
    c. Tunable pulsed dye laser amplifiers and oscillators having all of 
the following characteristics:
    c.1. Operating at wavelengths between 300 nm and 800 nm;
    c.2. An average output power greater than 30 W;
    c.3. A repetition rate greater than 1 kHz; and
    c.4. Pulse width less than 100 ns;
    Note: 6A205.c does not control single mode oscillators.
    d. Pulsed carbon dioxide ``lasers'' having all of the following 
characteristics:
    d.1. Operating at wavelengths between 9,000 nm and 11,000 nm;
    d.2. A repetition rate greater than 250 Hz;
    d.3. An average output power greater than 500 W; and
    d.4. Pulse width of less 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;
    f. Pulse-excited, Q-switched neodymium-doped (other than glass) 
``lasers'' having all of the following characteristics:
    f.1. An output wavelength exceeding 1,000 nm, but not exceeding 
1,100 nm;
    f.2. A pulse duration equal to or more than 1 ns; and
    f.3. A multiple-transverse mode output having an average power 
exceeding 50 W.

6A225 Velocity interferometers for measuring velocities exceeding 1 km/s 
          during time intervals of less than 10 microseconds. 

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: See ECCNs 6E001 (``development''), 6E002 
(``production''), and 6E201 (``use'') for technology for items 
controlled under this entry.
Related Definitions: N/A
ECCN Controls: 6A225 includes velocity interferometers, such as VISARs 
(Velocity interferometer systems for any reflector) and DLIs (Doppler 
laser interferometers).
Items: The list of items controlled is contained in the ECCN heading.

6A226 Pressure sensors, as follows (see List of Items Controlled).

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: See ECCNs 6E001 (``development''), 6E002 
(``production''), and 6E201 (``use'') for technology for items 
controlled under this entry.
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.

6A991 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.


[[Page 735]]


6A992 Optical Sensors, not controlled by 6A002.

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. Image intensifier tubes and specially designed components 
therefor, as follows:
    a.1. Image intensifier tubes having all the following:
    a.1.a. A peak response in wavelength range exceeding 400 nm, but not 
exceeding 1,050 nm;
    a.1.b. A microchannel plate for electron image amplification with a 
hole pitch (center-to-center spacing) of less than 25 micrometers; and
    a.1.c. Having any of the following:
    a.1.c.1. An S-20, S-25 or multialkali photocathode; or
    a.1.c.2. A GaAs or GaInAs photocathode;
    a.2. Specially designed microchannel plates having both of the 
following characteristics:
    a.2.a. 15,000 or more hollow tubes per plate; and
    a.2.b. Hole pitch (center-to-center spacing) of less than 25 
micrometers.
    b. Direct view imaging equipment operating in the visible or 
infrared spectrum, incorporating image intensifier tubes having the 
characteristics listed in 6A992.a.1.

6A994 Optics, not controlled by 6A004.

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. Optical filters:

    a.1. For wavelengths longer than 250 nm, comprised of multi-layer 
optical coatings and having either of the following:
    a.1.a. Bandwidths equal to or less than 1 nm Full Width Half 
Intensity (FWHI) and peak transmission of 90% or more; or
    a.1.b. Bandwidths equal to or less than 0.1 nm FWHI and peak 
transmission of 50% or more;

    Note: 6A994 does not control optical filters with fixed air gaps or 
Lyot-type filters.

    a.2. For wavelengths longer than 250 nm, and having all of the 
following:
    a.2.a. Tunable over a spectral range of 500 nm or more;
    a.2.b. Instantaneous optical bandpass of 1.25 nm or less;
    a.2.c. Wavelength resettable within 0.1 ms to an accuracy of 1 nm or 
better within the tunable spectral range; and
    a.2.d. A single peak transmission of 91% or more;
    a.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;
    b. ``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.

6A995 ``Lasers'', not controlled by 6A005 or 6A205.

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. Carbon dioxide (CO2) ``lasers'' having any of the 
following:
    a.1. A CW output power exceeding 10 kW;
    a.2. A pulsed output with a ``pulse duration'' exceeding 10 
microseconds; and
    a.2.a. An average output power exceeding 10 kW; or
    a.2.b. A pulsed ``peak power'' exceeding 100 kW; or
    a.3. A pulsed output with a ``pulse duration'' equal to or less than 
10 microseconds; and
    a.3.a. A pulse energy exceeding 5 J per pulse and ``peak power'' 
exceeding 2.5 kW; or
    a.3.b. An average output power exceeding 2.5 kW;
    b. Semiconductor lasers, as follows:
    b.1. Individual, single-transverse mode semiconductor ``lasers'' 
having:

[[Page 736]]

    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 a wavelength 
exceeding 1,050 nm;
    c. Solid state, non-``tunable'' ``lasers'', as follows:
    c.1. Ruby ``lasers'' having an output energy exceeding 20 J per 
pulse;
    c.2. Neodymium-doped (other than glass) ``lasers'', as follows, with 
an output wavelength exceeding 1,000 nm but not exceeding 1,100 nm:
    c.2.a. Pulse-excited, ``Q-switched lasers'', with a pulse duration 
equal to or more than 1 ns, and a multiple-transverse mode output with 
any of the following:
    c.2.a.1. A ``peak power'' exceeding 200 MW; or
    c.2.a.2. An average output power exceeding 50 W;
    c.2.b. Pulse-excited, non-``Q-switched lasers'', having a multiple-
transverse mode output with an average power exceeding 500 W; or
    c.2.c. Continuously excited ``lasers'' having a multiple-transverse 
mode output with an average or CW output power exceeding 500 W;
    d. Free electron ``lasers''.

6A996 ``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.

6A997 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.

6A998 Radar Systems, Equipment and Assemblies, n.e.s., (See List of 
          Items Controlled), and Specially Designed Components Therefor.

License Requirements

Reason for Control: RS, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
RS applies to paragraph .b.............  RS 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. Airborne radar equipment, n.e.s., and specially designed 
components therefor.
    b. ``Space-qualified'' ``laser'' radar or Light Detection and 
Ranging (LIDAR) equipment specially designed for surveying or for 
meteorological observation.

6A999 Specific Processing Equipment, as Follows (See List of Items 
          Controlled).

License Requirements

Reason for Control: AT.
Control(s).
Country Chart.
    AT applies to entire entry. A license is required for items 
controlled by this entry to North Korea for anti-terrorism reasons. The 
Commerce Country Chart is not designed to determine AT licensing 
requirements for this entry. See Sec.  742.19 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: See also 6A203.
Related Definitions: N/A.
Items:
    a. Seismic detection equipment;
    b. Radiation hardened TV cameras, n.e.s.

[[Page 737]]

              B. Test, Inspection and Production Equipment

6B004 Optical equipment, as follows (see List of Items Controlled).

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 6B004.b
CIV: Yes for 6B004.b

List of Items Controlled

Unit: Number
Related Controls: This entry does not control microscopes.
Related Definitions: N/A
Items: 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.

6B007 Equipment to produce, align and calibrate land-based gravity 
          meters with a static accuracy of better than 0.1 mgal.

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, 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: See also 6B108
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

6B108 Systems, other than those controlled by 6B008, 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: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: r
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

6B995 Specially designed or modified equipment, including tools, dies, 
          fixtures or gauges, and other 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; 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''.

[[Page 738]]

                              C. Materials

6C002 Optical sensor materials, as follows (see List of Items 
          Controlled).

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: Number.
Related Controls: See also 6C992.
Related Definitions: N/A.
Items:
    a. Elemental tellurium (Te) of purity levels of 99.9995% or more;
    b. Single crystals (including epitaxial wafers) of any of the 
following:
    b.1. Cadmium zinc telluride (CdZnTe), with zinc content less than 6% 
by mole fraction;
    b.2. Cadmium telluride (CdTe) of any purity level; or
    b.3. Mercury cadmium telluride (HgCdTe) of any purity level.
    Technical Note: Mole fraction is defined as the ratio of moles of 
ZnTe to the sum of the moles of CdTe and ZnTe present in the crystal.

6C004 Optical materials, as follows (see List of Items Controlled).

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.a and .e
CIV: Yes for 6C004.a and .e

List of Items Controlled

Unit: $ value
Related Controls: See also 6C994
Related Definitions: N/A
Items: a. Zinc selenide (ZnSe) and zinc sulphide (ZnS) ``substrate 
blanks'' produced by the chemical vapor deposition process, having any 
of the following:

    a.1. A volume greater than 100 cm3; or
    a.2. A diameter greater than 80 mm having a thickness of 20 mm or 
more;
    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 all of the following:
    c.1. Third order susceptibility (chi 3) of 10-6 
m2/V2 or more; 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. Glass, including fused silica, phosphate glass, fluorophosphate 
glass, zirconium fluoride (ZrF4) and hafnium fluoride 
(HfF4), having all of the following:
    e.1. A hydroxyl ion (OH-) concentration of less than 5 ppm;
    e.2. Integrated metallic purity levels of less than 1 ppm; and
    e.3. High homogeneity (index of refraction variance) less than 5 x 
10-6;
    f. 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.

6C005 Synthetic crystalline ``laser'' host material in unfinished form, 
          as follows (see List of Items Controlled).

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.

6C992 Optical sensing fibers not controlled by 6A002.d.3 which are 
          modified structurally to have a `beat length' of less than 500 
          mm (high birefringence) or optical sensor materials not 
          described in 6C002.b and having a zinc content of equal to or 
          more than 6% by `mole fraction'.

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


[[Page 739]]


List of Items Controlled
Unit: Equipment in number; parts and accessories in $ value.
Related Controls: N/A.
Related Definitions: (1) `Mole fraction' is defined as the ratio of 
moles of ZnTe to the sum of the moles of CdTe and ZnTe present in the 
crystal. (2) `Beat length' is the distance over which two orthogonally 
polarized signals, initially in phase, must pass in order to achieve a 2 
Pi radian(s) phase difference.
Items:
    The list of items controlled is contained in the ECCN heading.

6C994 Optical materials.

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: (1) `Fluoride fibers' are fibers manufactured from 
bulk fluoride compounds. (2) `Optical fiber preforms' are bars, ingots, 
or rods of glass, plastic or other materials that have been specially 
processed for use in fabricating optical fibers. The characteristics of 
the preform determine the basic parameters of the resultant drawn 
optical fibers.
Items:
    a. Low optical absorption materials, as follows:
    a.1. Bulk fluoride compounds containing ingredients with a purity of 
99.999% or better; or
    Note: 6C994.a.1 controls fluorides of zirconium or aluminum and 
variants.
    a.2. Bulk fluoride glass made from compounds controlled by 
6C004.e.1;
    b. `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 6A994.b.

                               D. Software

6D001 ``Software'' Specially Designed for the ``Development'' or 
          ``Production'' of Equipment Controlled by 6A004, 6A005, 6A008, 
          or 6B008.

License Requirements

Reason for Control: NS, MT, NP, RS, AT.

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to ``software'' for           NS Column 1.
 equipment controlled by 6A004, 6A005,
 6A008 or 6B008.
MT applies to ``software'' for           MT Column 1.
 equipment controlled by 6A008 or 6B008
 for MT reasons.
NP applies to ``software'' for           NP Column 1.
 equipment controlled by 6A005 for NP
 reasons.
RS applies to ``software'' for           RS Column 1.
 equipment controlled by 6A008.j.1.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------


    License Requirement Notes:  See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

CIV: N/A
TSR: Yes, except for the following:
    (1) Items controlled for MT reasons;
    (2) ``Software'' specially designed for the ``development'' or 
``production'' of ``space qualified'' ``laser'' radar or Light Detection 
and Ranging (LIDAR) equipment defined in 6A008.j.1; or
    (3) Exports or reexports to destinations outside of Austria, 
Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, 
Italy, Japan, Luxembourg, the Netherlands, Portugal, Spain, Sweden, or 
the United Kingdom of ``software'' specially designed for the 
``development'' or ``production'' of equipment controlled by 6A008.1.3 
or 6B008.

List of Items Controlled

Unit: $ value.
Related Controls: ``Software'' specially designed for the 
``development'' or ``production'' of ``space qualified'' components for 
optical systems defined in 6A004.c and ``space qualified'' optical 
control equipment defined in 6A004.d.1 is subject to the export 
licensing authority of the Department of State, Office of Defense Trade 
Controls (22 CFR part 121). See also 6D991, and ECCNs 6E001 
(``development'') and 6E102 (``use'') for ``technology'' for items 
controlled under this entry.
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, RS, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1.
MT applies to ``software'' for           MT Column 1.
 equipment controlled by 6A008 or 6B008
 for MT reasons.

[[Page 740]]

 
RS applies to ``software'' for           RS Column 1.
 equipment controlled by 6A008.j.1.
AT applies to entire entry.............  AT Column 1.
------------------------------------------------------------------------


License Exceptions

CIV: N/A
TSR: Yes, except N/A for the following
    (1) Items controlled for MT reasons; or
    (2) ``Software'' specially designed for the ``use'' of ``space 
qualified'' ``laser'' radar or Light Detection and Ranging (LIDAR) 
equipment defined in 6A008.j.1.

List of Items Controlled

Unit: $ value.
Related Controls: ``Software'' specially designed for the ``use'' of 
``space qualified'' imaging sensors (e.g., ``monospectral imaging 
sensors'' and ``multispectral imaging sensors'') defined in 
6A002.b.2.b.1 is subject to the export licensing authority of the 
Department of State, Office of Defense Trade Controls (22 CFR part 121), 
unless, on or after September 23, 2002, the Department of State issues a 
commodity jurisdiction determination assigning the export licensing 
authority to the Department of Commerce, Bureau of Industry and 
Security. ``Software'' specially designed for the ``use'' of ``space 
qualified'' LIDAR equipment specially designed for surveying or for 
meteorological observation, released from control under the note in 
6A008.j, is controlled in 6D991. See also 6D102, 6D991, and 6D992
Related Definitions: N/A.
Items:
    The list of items controlled is contained in the ECCN heading.

6D003 Other ``software'', as follows (see List of Items Controlled).

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 Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions
CIV: Yes for 6D003.h.1
TSR: Yes, except for the following:
    (1) Items controlled for MT reasons; or
    (2) Exports or reexports to destinations outside of Austria, 
Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, 
Italy, Japan, Luxembourg, the Netherlands, Portugal, Spain, Sweden, or 
the United Kingdom of ``software'' for items controlled by 6D003.a.

List of Items Controlled

Unit: $ value
Related Controls: See also 6D103 and 6D993
Related Definitions: N/A
Items:
    a. Acoustics ``software'', as follows:
    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;
    a.3. ``Software'' specially designed for acoustic beam forming for 
the ``real time processing'' of acoustic data for passive reception 
using bottom or bay cable systems;
    a.4. ``Source code'' for the ``real time processing'' of acoustic 
data for passive reception using bottom or bay cable systems;
    b. Optical sensors. None.
    c. Cameras. None.
    d. Optics. None.
    e. Lasers. None
    f. Magnetometers.
    f.1. ``Software'' specially designed for magnetic compensation 
systems for magnetic sensors designed to operate on mobile platforms;
    f.2. ``Software'' specially designed for magnetic anomaly detection 
on mobile platforms;
    g. Gravimeters. ``Software'' specially designed to correct motional 
influences of gravity meters or gravity gradiometers;
    h. Radar ``software'', as follows:
    h.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:
    h.1.a. Processing and displaying more than 150 simultaneous ``system 
tracks''; or
    h.1.b. Accepting radar target data from more than four primary 
radars;
    h.2. ``Software'' for the design or ``production'' of radomes which:
    h.2.a. Are specially designed to protect the ``electronically 
steerable phased array antennae'' controlled by 6A008.e.; and
    h.2.b. Result in an antenna pattern having an ``average side lobe 
level'' more than 40 dB below the peak of the main beam level.
    Technical Note: ``Average side lobe level'' in 6D003.h.2.b is 
measured over the entire array excluding the angular extent of the main 
beam and the first two side lobes on either side of the main beam.

6D102 ``Software'' specially designed or modified for the ``use'' of 
          goods controlled by 6A108.

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


[[Page 741]]


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

6D103 Software'' that processes post-flight, recorded data, enabling 
          determination of vehicle position throughout its flight path, 
          specially designed or modified 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

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value

    The list of items controlled is contained in the ECCN heading.

6D991 ``Software'' Specially Designed for the ``Development'', 
          ``Production'', or ``Use'' of Equipment Controlled by 6A002.e, 
          6A991, 6A996, 6A997, or 6A998.

License Requirements

Reason for Control: RS, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
RS applies to ``software'' for           RS Column 1.
 equipment controlled by 6A002.e or
 6A998.b.
AT applies to entire entry, except       AT Column 1.
 ``software'' for equipment controlled
 by 6A991.
AT applies to ``software'' for           AT Column 2.
 equipment controlled by 6A991.
------------------------------------------------------------------------


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.

6D992 ``Software'' specially designed for the ``development'' or 
          ``production'' of equipment controlled by 6A992, 6A994, or 
          6A995.

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.

6D993 Other ``software'' not controlled by 6D003.

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: Equipment in number; parts and accessories in $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. Air Traffic Control (ATC) ``software'' application 
``programs'' hosted on general purpose computers located at Air Traffic 
Control centers, and capable of 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;

                              E. Technology

6E001 ``Technology'' According to the General Technology Note for the 
          ``Development'' of Equipment, Materials or ``Software'' 
          Controlled by 6A (Except 6A018, 6A991, 6A992, 6A994, 6A995, 
          6A996, 6A997, or 6A998), 6B (Except 6B995), 6C (Except 6C992 
          or 6C994), or 6D (Except 6D991, 6D992, or 6D993).

License Requirements

Reason for Control: NS, MT, NP, RS, CC, AT, UN.

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to ``technology'' for items    NS Column 1.
 controlled by 6A001 to 6A008, 6B004 to
 6B008, 6C002 to 6C005, or 6D001 to
 6D003.
MT applies to ``technology'' for items    MT Column 1.
 controlled by 6A002, 6A007, 6A008,
 6A102, 6A107, 6A108, 6B008, 6B108,
 6D001, 6D002, 6D102 or 6D103 for MT
 reasons.

[[Page 742]]

 
NP applies to ``technology'' for          NP Column 1.
 equipment controlled by 6A003, 6A005,
 6A202, 6A203, 6A205, 6A225, 6A226 or
 6D001 for NP reasons.
RS applies to ``technology'' for          RS Column 1.
 equipment controlled by 6A002.a.1,
 .a.2, .a.3, .c, or.e, 6A003.b.3 or
 .b.4, or 6A008.j.1.
CC applies to ``technology'' for          CC Column 1.
 equipment controlled by 6A002 for CC
 reasons.
AT applies to entire entry..............  AT Column 1.
UN applies to ``technology'' for          Rwanda.
 equipment controlled by 6A002 or 6A003
 for UN reasons.
------------------------------------------------------------------------

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

CIV: N/A.
TSR: Yes, except for the following:
    (1) Items controlled for MT reasons;
    (2) ``Technology'' for commodities controlled by 6A002.e, 6A004.e, 
or 6A008.j.1;
    (3) ``Technology'' for ``software'' specially designed for ``space 
qualified'' ``laser'' radar or Light Detection and Ranging (LIDAR) 
equipment defined in 6A008.j.1 and controlled by 6D001 or 6D002;
    (4) Exports or reexports to destinations outside of Austria, 
Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, 
Italy, Japan, Luxembourg, the Netherlands, Portugal, Spain, Sweden, or 
the United Kingdom of ``technology'' for the ``development'' of the 
following: (a) Items controlled by 6A001.a.2.a.1, 6A001.a.2.a.2, 
6A001.a.2.a.4, 6A001.a.2.a.5, 6A001.a.2.b, 6A001.a.2.e., 6A002.a.1.c, 
6A008.l.3, 6B008, 6D003.a; (b) Equipment controlled by 6A001.a.2.c or 
6A001.a.2.f when specially designed for real time applications; or (c) 
``Software'' controlled by 6D001 and specially designed for the 
``development'' or ``production'' of equipment controlled by 6A008.l.3 
or 6B008; or
    (5) Exports or reexports to Rwanda.

List of Items Controlled 

Unit: N/A
Related Controls: ``Technology'' according to the General Technology 
Note for the ``development'' of the following commodities is subject to 
the export licensing authority of the Department of State, Office of 
Defense Trade Controls (22 CFR part 121): ``Space qualified'' (1.) 
Components for optical systems defined in 6A004.c and optical control 
equipment defined in 6A004.d.1.; (2.) Solid-state detectors defined in 
6A002.a.1, ``imaging sensors'' (e.g., ``monospectral imaging sensors'' 
and ``multispectral imaging sensors'') defined in 6A002.b.2.b.1, and 
cryocoolers defined in 6A002.d.1 unless on or after September 23, 2002, 
the Department of State issues a commodity jurisdiction determination 
assigning the export licensing authority to the Department of Commerce, 
Bureau of Industry and Security. See also 6E101, 6E201, and 6E991.
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, 6A991, 6A992, 6A994, 6A995, 6A996, 6A997 or 
          6A998), 6B (Except 6B995) or 6C (Except 6C992 or 6C994).

License Requirements

Reason for Control: NS, MT, NP, RS, CC, AT, UN.

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to ``technology'' for          NS Column 1.
 equipment controlled by 6A001 to 6A008,
 6B004 to 6B008, or 6C002 to 6C005.
MT applies to ``technology'' for          MT Column 1.
 equipment controlled by 6A002, 6A007,
 6A008, 6A102, 6A107, 6A108, 6B008, or
 6B108 for MT reasons.
NP applies to ``technology'' for          NP Column 1.
 equipment controlled by 6A003, 6A005,
 6A202, 6A203, 6A205, 6A225 or 6A226 for
 NP reasons.
RS applies to ``technology'' for          RS Column 1.
 equipment controlled by 6A002.a.1,
 .a.2, .a.3, .c or .e, 6A003.b.3 or
 .b.4, or 6A008.j.1.
CC applies to ``technology'' for          CC Column 1.
 equipment controlled by 6A002 for CC
 reasons.
AT applies to entire entry..............  AT Column 1.
UN applies to ``technology'' for          Rwanda.
 equipment controlled by 6A002 or 6A003
 for UN reasons.
------------------------------------------------------------------------

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.
License Exceptions

CIV: N/A.
TSR: Yes, except for the following:
    (1) Items controlled for MT reasons;
    (2) ``Technology'' for commodities controlled by 6A002.e, 6A004.e, 
6A008.j.1;
    (3) Exports or reexports to destinations outside of Austria, 
Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, 
Italy, Japan, Luxembourg, the Netherlands, Portugal, Spain, Sweden, or 
the United Kingdom of ``technology'' for the ``development'' of the 
following: (a) Items controlled by 6A001.a.2.a.1, 6A001.a.2.a.2, 
6A001.a.2.a.4, 6A001.a.2.a.5, 6A001.a.2.b, and 6A001.a.2.c; and (b) 
Equipment controlled by 6A001.a.2.e and 6A001.a.2.f when specially 
designed for real time applications; or (c) ``Software'' controlled by 
6D001 and specially

[[Page 743]]

designed for the ``development'' or ``production'' of equipment 
controlled by 6A002.a.1.c, 6A008.l.3 or 6B008; or
    (4) Exports or reexports to Rwanda.

List of Items Controlled 

Unit: N/A
Related Controls: ``Technology'' according to the General Technology 
Note for the ``production'' of the following commodities is subject to 
the export licensing authority of the Department of State, Office of 
Defense Trade Controls (22 CFR part 121) when intended for use on a 
satellite: ``Space qualified'' (1.) Components for optical systems 
defined in 6A004.c and optical control equipment defined in 6A004.d.1.; 
(2.) Solid-state detectors defined in 6A002.a.1, ``imaging sensors'' 
(e.g., ``monospectral imaging sensors'' and ``multispectral imaging 
sensors'') defined in 6A002.b.2.b.1, and cryocoolers defined in 
6A002.d.1 unless on or after September 23, 2002, the Department of State 
issues a commodity jurisdiction determination assigning the export 
licensing authority to the Department of Commerce, Bureau of Industry 
and Security. See also 6E992.
Related Definitions: N/A
Items:
    The list of items controlled is contained in the ECCN heading.

6E003 Other ``technology'', as follows (see List of Items Controlled).

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: See also 6E993
Related Definitions: N/A
Items: a. Acoustics. None.

    b. Optical sensors. None.
    c. Cameras. None.
    d. Optics, ``technology'', as follows:
    d.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;
    N.B.: See also 2E003.f.
    d.2. Optical fabrication ``technology'' using single point diamond 
turning techniques to produce surface finish accuracies of better than 
10 nm rms on non-planar surfaces exceeding 0.5 m2;
    e. Lasers. ``Technology'' ``required'' for the ``development'', 
``production'' or ``use'' of specially designed diagnostic instruments 
or targets in test facilities for ``SHPL'' testing or testing or 
evaluation of materials irradiated by ``SHPL'' beams;
    f. Magnetometers. ``Technology'' ``required'' for the 
``development'' or ``production'' of fluxgate ``magnetometers'' or 
fluxgate ``magnetometer'' systems, having any of the following:
    f.1. A ``noise level'' of less than 0.05 nT rms per square root Hz 
at frequencies of less than 1 Hz; or
    f.2. A ``noise level'' of less than 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 by 6A002, 
          6A007.b and .c, 6A008, 6A102, 6A107, 6A108, 6B108, 6D102 or 
          6D103.

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: (1) This entry only controls ``technology'' for 
equipment controlled by 6A008 when it is designed for airborne 
applications and is usable in ``missiles''. (2) This entry only controls 
``technology'' for items in 6A002.a.1, a.3, and .e that are specially 
designed or modified to protect ``missiles'' against nuclear effects 
(e.g., Electromagnetic Pulse (EMP), X-rays, combined blast and thermal 
effects), and usable for ``missiles.'' (3) This entry only controls 
``technology'' for items in 6A007.b and .c when the accuracies in 
6A007.b.1 and b.2 are met or exceeded.
Items: The list of items controlled is contained in the ECCN heading.

6E201 ``Technology'' according to the General Technology Note for the 
          ``use'' of equipment controlled by 6A003.a.2. 6A003.a.3, 
          6A003.a.4, 6A005.a.1.c, 6A005.a.2.a, 6A005.a.4.c, 6A005.a.6, 
          6A005.c.1.b, 6A005.c.2.b.2.a, 6A005.c.2.b.2.b, 6A005.c.2.c.2, 
          or 6A005.d.2.c., 6A202, 6A203, 6A205, 6A225 or 6A226. 

License Requirements

Reason for Control: NP, AT

[[Page 744]]



 
               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
ECCN Controls: This entry only controls ``technology'' for ``lasers'' in 
6A005 that are controlled for NP reasons.
Items: The list of items controlled is contained in the ECCN heading.

6E991 ``Technology'' for the ``Development'', ``Production'' or ``Use'' 
          Equipment Controlled by 6A991, 6A996, 6A997, or 6A998.

License Requirements

Reason for Control: RS, AT

------------------------------------------------------------------------
               Control(s)                         Country chart
------------------------------------------------------------------------
RS applies to ``technology'' for         RS Column 1.
 equipment controlled by 6A998.b.
AT applies to entire entry except        AT Column 1.
 ``technology'' for equipment
 controlled by 6A991.
AT applies to ``technology'' for         AT Column 2.
 equipment controlled by 6A991.
------------------------------------------------------------------------


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.

6E992 ``Technology'' for the ``development'' or ``production'' of 
          equipment, materials or ``software'' controlled by 6A992, 
          6A994, or 6A995, 6B995, 6C992, 6C994, or 6D993.

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.

6E993 Other ``technology'', not controlled by 6E003.

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. Optical fabrication technologies for serially producing 
optical components at a rate exceeding 10 m2 of surface area 
per year on any single spindle and with:

    a.1. An area exceeding 1 m2; and
    a.2. A surface figure exceeding lambda/10 rms at the designed 
wavelength;
    b. ``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;

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 7--Navigation and Avionics

                  A. Systems, Equipment and Components

    N.B. 1: For automatic pilots for underwater vehicles, see Category 
8. For radar, see Category 6.
    N.B. 2: For inertial navigation equipment for ships or submersibles 
see item 9.e on the Wassenaar Munitions List.

7A001 Linear Accelerometers Designed for Use in Inertial Navigation or 
          Guidance Systems and Having Any of the Following 
          Characteristics (See List of Items Controlled), and Specially 
          Designed Components Therefor

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: N/A
GBS: N/A
CIV: N/A

List of Items Controlled
Unit: $ value.
Related Controls: See also 7A101 and 7A994. For angular or rotational 
accelerometers,

[[Page 745]]

see 7A002. MT controls do not apply to accelerometers that are specially 
designed and developed as Measurement While Drilling (MWD) sensors for 
use in downhole well service applications.
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, and Angular or Rotational Accelerometers, Having Any of the 
          Following Characteristics (See List of Items Controlled), and 
          Specially Designed Components Therefor

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: N/A
GBS: N/A
CIV: N/A

List of Items Controlled
Unit: $ value.
Related Controls: See also 7A102 and 7A994. For linear accelerometers, 
see 7A001.
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 exceeding 100 
g.

7A003 Inertial Navigation Systems (INS) and specially designed 
          components therefor.

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: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: See also 7A103 and 7A994. Inertial Navigation Systems 
(INS) 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.)
Related Definitions: ``Data-Based Referenced Navigation'' (``DBRN'') 
systems are systems which use various sources of previously measured 
geo-mapping data integrated to provide accurate navigation information 
under dynamic conditions. Data sources include bathymetric maps, stellar 
maps, gravity maps, magnetic maps or 3-D digital terrain maps.
Items:
    a. Inertial navigation systems (gimballed or strapdown) and inertial 
equipment designed for ``aircraft'', land vehicle or ``spacecraft'' for 
attitude, guidance or control, having any of the following 
characteristics, and specially designed components therefor:
    a.1. Navigation error (free inertial) subsequent to normal alignment 
of 0.8 nautical mile per hour (nm/hr) Circular Error Probable (CEP) or 
less (better); or
    a.2. Specified to function at linear acceleration levels exceeding 
10 g.
    b. Hybrid Inertial Navigation Systems embedded with Global 
Navigation Satellite System(s) (GNSS) or with ``Data-Based Referenced 
Navigation'' (``DBRN'') System(s) for attitude, guidance or control, 
subsequent to normal alignment, having an INS navigation position 
accuracy, after loss of GNSS or ``DBRN'' for a period of up to 4 
minutes, of less (better) than 10 meters Circular Error Probable (CEP).
    Note 1: The parameters of 7A003.a and 7A003.b are applicable with 
any of the following environmental conditions:
    1. Input random vibration with an overall magnitude of 7.7 g rms in 
the first half hour and a total test duration of one and one half hour 
per axis in each of the three perpendicular axes, when the random 
vibration meets the following:
    a. A constant power spectral density (PSD) value of 0.04 
g2/Hz over a frequency interval of 15 to 1,000 Hz; and
    b. The PSD attenuates with frequency from 0.04 g2/Hz to 
0.01 g2/Hz over a frequency interval from 1,000 to 2,000 Hz;
    2. A roll and yaw rate of equal to or more than +2.62 rad/s (150 
deg/s); or
    3. According to national standards equivalent to 1. or 2. of this 
note.
    Note 2: 7A003 does not control inertial navigation systems that are 
certified for use

[[Page 746]]

on ``civil aircraft'' by civil authorities of a country in Country Group 
A:1.
    Technical Notes: 1. 7A003.b refers to systems in which an INS and 
other independent navigation aids are built into a single unit 
(embedded) in order to achieve improved performance.
    2. ``Circular Error Probable'' (``CEP'')--In a circular normal 
distribution, the radius of the circle containing 50 percent of the 
individual measurements being made, or the radius of the circle within 
which there is a 50 percent probability of being located.

7A004 Gyro-astro compasses, and other devices which 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.

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: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: See also 7A104 and 7A994
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

7A005 Global navigation satellite systems (i.e. GPS or GLONASS) 
          receiving equipment, and specially designed components 
          therefor. (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.)
    Note to 7A005: See also 7A105 and 7A994.

7A006 Airborne altimeters operating at frequencies other than 4.2 to 4.4 
          GHz inclusive, having any of the following characteristics 
          (see List of Items Controlled).

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: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: See also 7A106, 7A994 and Category 6 for controls on 
radar.
Related Definitions: N/A
Items: a. ``Power management''; or

    b. Using phase shift key modulation.

7A007 Direction finding equipment operating at frequencies above 30 MHz 
          and specially designed components therefor. (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.)

7A101 Accelerometers, other than those controlled by 7A001, with a 
          threshold of 0.05 g or less, or a linearity error within 0.25% 
          of full scale output, or both, which 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.............  MT Column 1
      lies 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 accelerometers which are 
specially designed and developed as MWD (Measurement While Drilling) 
sensors for use in downhole well service operations.
Related Definitions: N/A
Items: The list of items is included in the entry heading.

7A102 All types of gyros, other than those controlled by 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: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value

[[Page 747]]

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 controlled by 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: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: (1) Items described in 7A103.b are subject to the 
export licensing authority of the U.S. Department of State, Office of 
Defense Trade Controls (See 22 CFR part 121). (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.)
Related Definitions: N/A
Items: a. Inertial or other equipment using accelerometers or gyros 
controlled by 7A001, 7A002, 7A101 or 7A102 and systems incorporating 
such equipment;
    Note: 7A103.a does not control equipment containing accelerometers 
specially designed and developed as MWD (Measurement While Drilling) 
sensors for use in down-hole well services operations.
    b. Integrated flight instrument systems, which include 
gyrostabilizers or automatic pilots, designed or modified for use in 
``missiles''.
    c. Integrated Navigation Systems, designed or modified for use in 
``missiles'' and capable of providing a navigational accuracy of 200m 
Circular Error Probable (CEP) or less.
    Technical Note: An `integrated navigation system' typically 
incorporates the following components:
    1. An inertial measurement device (e.g., an attitude and heading 
reference system, inertial reference unit, or inertial navigation 
system);
    2. One or more external sensors used to update the position and/or 
velocity, either periodically or continuously throughout the flight 
(e.g., satellite navigation receiver, radar altimeter, and/or Doppler 
radar); and
    3. Integration hardware and software.

7A104 Gyro-astro compasses and other devices, other than those 
          controlled by 7A004, which 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: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: This entry controls specially designed components for 
gyro-astro compasses and other devices controlled by 7A004
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

7A105 Receiving equipment for Global Navigation Satellite Systems (GNSS) 
          (e.g. GPS, GLONASS, or Galileo) having any of the following 
          characteristics, and specially designed components therefor. 
          (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.)
1. Designed or modified for use in ``missiles''; or
2. Designed or modified for airborne applications and having any of the 
following:
a. Capable of providing navigation information at speeds in excess of 
600 m/s (1,165 nautical mph).
b. Employing decryption, designed or modified for military or 
governmental services, to gain access to GNSS secured signal/data; or
c. Being specially designed to employ anti-jam features (e.g. null 
steering antenna or electronically steerable antenna) to function in an 
environment of active or passive countermeasures.
    Note to 7A105: See also 7A005 and 7A994.


[[Page 748]]


7A106 Altimeters, other than those controlled by 7A006, of radar or 
          laser radar type, designed or modified for use in 
          ``missiles''. (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.)

7A115 Passive sensors for determining bearing to specific 
          electromagnetic source (direction finding equipment) or 
          terrain characteristics, designed or modified for use in 
          ``missiles''. (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.)

7A116 Flight control systems (hydraulic, mechanical, electro-optical, or 
          electro-mechanical flight control systems (including fly-by-
          wire systems) and attitude control equipment) designed or 
          modified for ``missiles''. (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.)

7A117 ``Guidance sets'' capable of achieving system accuracy of 3.33% or 
          less of the range (e.g., a ``CEP'' of 10 km or less at a range 
          of 300 km). (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.)

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: N/A
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 7A994).

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: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: (1) See also 7B101, 7B102 and 7B994.
    (2) This entry does not control test, calibration or alignment 
equipment for Maintenance level I.
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, as follows (see List of Items Controlled), specially 
          designed to characterize mirrors for ring ``laser'' gyros.

License Requirements

Reason for Control: NS, MT, AT

[[Page 749]]



 
               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: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: See also 7B102 and 7B994
Related Definitions: N/A
Items: a. Scatterometers having a measurement accuracy of 10 ppm or less 
(better);

    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 (except 7A994).

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: N/A
GBS: N/A
CIV: N/A

List of Items Controlled
    Unit: $ value.
    Related Controls: (1) See also 7B103, (this entry is subject to the 
licensing authority of the U.S. Department of State, Directorate of 
Defense Trade Controls (see 22 CFR part 121)) and 7B994.
    (2) This entry includes: Inertial Measurement Unit (IMU module) 
tester; IMU platform tester; IMU stable element handling fixture; IMU 
platform balance fixture; gyro tuning test station; gyro dynamic balance 
station; gyro run-in/motor test station; gyro evacuation and fill 
station; centrifuge fixtures for gyro bearings; accelerometer axis align 
station; and accelerometer test station.
    Related Definitions: N/A.
    Items: The list of items controlled is contained in the ECCN 
heading.

7B101 Production equipment'', and other test, calibration, and alignment 
          equipment, other than that described in 2B119 to 2B122, 7B003, 
          and 7B102, designed or modified to be used with equipment 
          controlled by 7A001 to 7A004 or 7A101 to 7A104.

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: (1) See also 2B119 to 2B122, 7B003, 7B102, and 
7B994.
    (2) This entry includes: inertial measurement unit (IMU module) 
tester; IMU platform tester; IMU stable element handling fixture; IMU 
platform balance fixture; gyro tuning test station; gyro dynamic balance 
stations; gyro run-in/motor test stations; gyro evacuation and filling 
stations; centrifuge fixtures for gyro bearings; accelerometer axis 
align stations; and accelerometer test stations.
    Related Definitions: N/A.
    Items: The list of items controlled is contained in the ECCN 
heading.

7B102 Equipment, other than those controlled by 7B002, designed or 
          modified to characterize mirrors, for laser gyro equipment, as 
          follows (see List of Items Controlled).

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:
    a. Scatterometers having a threshold accuracy of 10 ppm or less 
(better).
    b. Reflectometers having a threshold accuracy of 50 ppm or less 
(better).
    c. Prolifometers having a threshold accuracy of 0.5nm (5 angstrom) 
or less (better).

7B103 Specially designed ``production facilities'' for equipment 
          controlled by 7A117. (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.)

7B994 Other equipment for the test, inspection, or ``production'' of 
          navigation and avionics equipment.

License Requirements


[[Page 750]]


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           NS Column 1
 equipment controlled by 7A001 to
 7A004, 7A006, 7B001, 7B002 or 7B003.
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'' DRS
 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) See also 7D101 and 7D994. (2) The ``software'' 
related to 7A003.b, 7A005, 7A007, 7A103.b, 7A105, 7A106, 7A115, 7A116, 
7A117, or 7B103 are subject to the export licensing authority of the 
U.S. Department of State, Office of Defense Trade Controls. (See 22 CFR 
part 121.) (3) ``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.)
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 including inertial equipment not controlled by 7A003 
          or 7A004, or Attitude and Heading Reference Systems (AHRS) 
          (except gimballed AHRS).

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: (1) See also 7D102 and 7D994. (2) This entry does not 
control ``source code'' for the ``use'' of gimballed AHRS
Related Definition: AHRS generally differ from inertial navigation 
systems (INS) in that an AHRS provides attitude and heading information 
and normally does not provide the acceleration, velocity and position 
information associated with an INS
Items: The list of items controlled is contained in the ECCN heading

7D003 Other ``software'', as follows (see List of Items Controlled).

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
IV: N/A
TSR: N/A
List of Items Controlled

Unit: $ value
Related Controls: See also 7D103 and 7D994
Related Definitions: `Data-Based Referenced Navigation' (`DBRN') systems 
are systems which use various sources of previously measured geo-mapping 
data integrated to provide accurate navigation information under dynamic 
conditions. Data sources include bathymetric maps, stellar maps, gravity 
maps, magnetic maps or 3-D digital terrain maps.
Items:
    a. ``Software'' specially designed or modified to improve the 
operational performance or reduce the navigational error of systems to 
the levels controlled by 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 controlled by 7A003 by continuously combining inertial data 
with any of the following:

[[Page 751]]

    b.1. Doppler radar velocity data;
    b.2. Global navigation satellite systems (i.e., GPS or GLONASS) 
reference data; or
    b.3. Data from `Data-Based Referenced Navigation' (`DBRN') systems;
    c. ``Source code'' for integrated avionics or mission systems that 
combine sensor data and employ ``expert systems'';
    d. ``Source code'' for the ``development'' of any of the following:
    d.1. Digital flight management systems for ``total control of 
flight'';
    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; or
    d.7. Raster-type head-up displays or three dimensional displays;
    e. Computer-aided-design (CAD) ``software'' specially designed for 
the ``development'' of ``active flight control systems'', helicopter 
multi-axis fly-by-wire or fly-by-light controllers or helicopter 
``circulation controlled anti-torque or circulation-controlled direction 
control systems'' whose ``technology'' is controlled by 7E004.b, 
7E004.c.1 or 7E004.c.2.

7D101 ``Software'' specially designed or modified for the ``use'' of 
          equipment controlled by 7A001 to 7A006, 7A101 to 7A106, 7A115, 
          7A116, 7B001, 7B002, 7B003, 7B101, 7B102, or 7B103.

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 ``software'' related to 7A003.b, 7A005, 
7A103.b, 7A105, 7A106, 7A115, 7A116, 7A117, or 7B103 are 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.)
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading

7D102 Integration ``software'', as follows (See List of Items 
          Controlled).

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: The ``software'' related to 7A003.b or 7A103.b 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:
    a. Integration ``software'' for the equipment controlled by 7A103.b.
    b. Integration ``software'' specially designed for the equipment 
controlled by 7A003 or 7A103.a.

7D103 ``Software'' specially designed for modelling or simulation of the 
          ``guidance sets'' controlled by 7A117 or for their design 
          integration with ``missiles''. (This entry is subject to the 
          export licensing authority of the U.S. Department of State, 
          Office of Defense Trade Controls. See 22 CFR part 121.)

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 752]]

                              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: NS, MT, RS, AT

 
               Control(s)                         Country Chart
 
NS applies to ``technology'' for items   NS Column 1
 controlled by 7A001 to 7A004, 7A006,
 7B001 to 7B003, 7D001 to 7D003.
MT applies to entire entry.............  MT Column 1
RS applies to ``technology'' for         RS Column 1
 inertial navigation systems, inertial
 equipment and specially designed
 components therefor, for civil
 aircraft.
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) See also 7E101 and 7E994. (2) The ``technology'' 
related to 7A003.b, 7A005, 7A007, 7A103.b, 7A105, 7A106, 7A115, 7A116, 
7A117, 7B103, software in 7D101 specified in the Related Controls 
paragraph of ECCN 7D101, 7D102.a, or 7D103 are subject to the export 
licensing authority of the U.S. Department of State, Directorate of 
Defense Trade Control (see 22 CFR part 121).
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         NS Column 1
 equipment controlled by 7A001 to
 7A004, 7A006 or 7B001 to 7B003.
MT applies to entire entry.............  MT Column 1
RS applies to ``technology'' for         RS Column 1
 inertial navigation systems, inertial
 equipment and specially designed
 components therefor, for civil
 aircraft.
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) See also 7E102 and 7E994. (2) The ``technology'' 
related to 7A003.b, 7A005, 7A007, 7A103.b, 7A105, 7A106, 7A115, 7A116, 
7A117, or 7B103 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

7E003 ``Technology'' according to the General Technology Note for the 
          repair, refurbishing or overhaul of equipment controlled by 
          7A001 to 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: N/A
Related Controls: See also 7E994. This entry does not control 
maintenance ``technology'' directly associated with calibration, removal 
or replacement of damaged or unserviceable LRUs and SRAs of a ``civil 
aircraft'' as described in Maintenance Level I or Maintenance Level II
Related Definition: Refer to the Related Definitions for 7B001
Items: The list of items controlled is contained in the ECCN heading

7E004 Other ``technology'', as follows (see List of Items Controlled).

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: See also 7E104 and 7E994
Related Definitions: ``Primary flight control'' means an ``aircraft'' 
stability or maneuvering control using force/moment generators, i.e., 
aerodynamic control surfaces or propulsive thrust vectoring.
Items: a. ``Technology'' for the ``development'' or ``production'' of:

[[Page 753]]

    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;
    a.5. Electric actuators (i.e., electromechanical, electrohydrostatic 
and integrated actuator package) specially designed for ``primary flight 
control'';
    a.6. ``Flight control optical sensor array'' specially designed for 
implementing ``active flight control systems'';
    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 
``total control of flight'';

    Note: 7E004.b.5 does not control:

    1. ``Development'' ``technology'' for integration of digital flight 
control, navigation and propulsion control data into a digital flight 
management system for ``flight path optimization'';
    2. ``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 multisensor mission 
management systems employing ``expert systems'';
    N.B.: For ``technology'' for Full Authority Digital Engine Control 
(``FADEC''), see 9E003.a.9.
    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 controlled by 7A001 to 7A006, 7A101 to 
          7A106, 7A115 to 7A117, 7B001, 7B002, 7B003, 7B101, 7B102, 
          7B103, or 7D101 to 7D103.

License Requirements

Reason for Control: MT, RS, AT

 
               Control(s)                         Country Chart
 
MT applies to entire entry.............  MT Column 1
RS applies to ``use'' of inertial        RS Column 1
 navigation systems, inertial equipment
 and specially designed components
 therefor, for civil aircraft.
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 ``technology'' related to 7A003.b, 7A005, 
7A103.b, 7A105, 7A106, 7A115, 7A116, 7A117, 7B103, software specified in 
the Related Controls paragraph of ECCN 7D101, 7D102.a, or 7D103 are 
subject to the export licensing authority of the U.S. Department of 
State, Directorate 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, Directorate 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

7E102 ``Technology'' for protection of avionics and electrical 
          subsystems against electromagnetic pulse (EMP) and 
          electromagnetic interference (EMI) hazards, from external 
          sources, as follows (see List of Items Controlled).

License Requirements

Reason for Control: MT, AT

[[Page 754]]



 
               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: 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 .a and .b of this entry.

7E104 Design ``Technology'' for the integration of the flight control, 
          guidance, and propulsion data into a flight management system, 
          designed or modified for ``missiles'', for optimization of 
          rocket system trajectory. (This entry is subject to the export 
          licensing authority of the U.S. Department of State, 
          Directorate of Defense Trade Controls. See 22 CFR part 121.)

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. Systems, Equipment and Components

8A001 Submersible vehicles and surface vessels, as follows (see List of 
          Items Controlled).

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 Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

LVS: $5000; N/A for 8A001.b and .d
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value
Related Controls: For the control status of equipment for submersible 
vehicles, see: Category 5, Part 2 ``Information Security'' for encrypted 
communication equipment; Category 6 for sensors; Categories 7 and 8 for 
navigation equipment; Category 8A for underwater equipment.
Related Definitions: N/A
Items: a. Manned, tethered submersible vehicles designed to operate at 
depths exceeding 1,000 m;

    b. Manned, untethered submersible vehicles, having any of the 
following:
    b.1. Designed to operate autonomously and having a lifting capacity 
of all the following:
    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.3. Having all of the following:
    b.3.a. Designed to carry a crew of 4 or more;
    b.3.b. Designed to operate autonomously for 10 hours or more;
    b.3.c. Having a range of 25 nautical miles or more; and
    b.3.d. Having a length of 21 m or less;

    Technical Notes: 1. For the purposes of 8A001.b, ``operate 
autonomously'' means 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.
    2. For the purposes of 8A001.b, ``range'' means half the maximum 
distance a submersible vehicle can cover.

    c. Unmanned, tethered submersible vehicles designed to operate at 
depths exceeding 1,000 m, having any of the following:
    c.1. Designed for self-propelled manoeuvre using propulsion motors 
or thrusters controlled by 8A002.a.2; or
    c.2. Having a fiber optic data link;
    d. Unmanned, untethered submersible vehicles, having any of the 
following:

[[Page 755]]

    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 any 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) having all of the 
following characteristics:
    f.1. A maximum design speed, fully loaded, exceeding 30 knots in a 
significant wave height of 1.25 m (Sea State 3) or more;
    f.2. A cushion pressure exceeding 3,830 Pa; and
    f.3. 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 having any of the following:
    i.1. A full load displacement exceeding 500 tons with a maximum 
design speed, fully loaded, exceeding 35 knots in a significant 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 draught less 
than 2 x (displaced volume at the operational design draught) 
2/3.

8A002 Systems and equipment, as follows (see List of Items Controlled).

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 Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

LVS: $5000; N/A for 8A002.o.3.b
GBS: Yes for 8A002.e.2 and manipulators for civil end-uses (e.g., 
underwater oil, gas or mining operations) controlled by 8A002.i.2 and 
having 5 degrees of freedom of movement
CIV: Yes for 8A002.e.2 and manipulators for civil end-uses (e.g., 
underwater oil, gas or mining operations) controlled by 8A002.i.2 and 
having 5 degrees of freedom of movement

List of Items Controlled
Unit: Equipment in number
Related Controls: See also 8A992 and for underwater communications 
systems, see Category 5, Part I--Telecommunications). 8A002 does not 
control closed and semi-closed circuit (rebreathing) apparatus that is 
controlled under 8A018.a. See also 8A992 for self-contained underwater 
breathing apparatus that is not controlled by 8A002 or released for 
control by the 8A002.q Note.
Related Definitions: N/A
Items:
    a. Systems and 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 submersible vehicles controlled by 8A001 using 
navigation data and having closed loop servo-controls:
    b.1. Enabling a vehicle to move within 10 m of a predetermined point 
in the water column;
    b.2. Maintaining the position of the vehicle within 10 m of a 
predetermined point in the water column; or
    b.3. Maintaining 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. Television systems and television cameras, as follows:
    d.1.a. Television systems (comprising camera, monitoring and signal 
transmission equipment) having a limiting resolution when measured in 
air of more than 800 lines and specially designed or modified for remote 
operation with a submersible vehicle;
    d.1.b. Underwater television cameras having a limiting resolution 
when measured in air of more than 1,100 lines;

[[Page 756]]

    d.1.c. Low light level television cameras specially designed or 
modified for underwater use containing all of the following:
    d.1.c.1. Image intensifier tubes controlled by 6A002.a.2.a; and
    d.1.c.2. More than 150,000 ``active pixels'' per solid state area 
array;
    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;
    e. Photographic still cameras specially designed or modified for 
underwater use below 150 m having a film format of 35 mm or larger, and 
having any of the following:
    e.1. Annotation of the film with data provided by a source external 
to the camera;
    e.2. Automatic back focal distance correction; or
    e.3. 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 and a flash rate of more than 5 flashes per 
second;
    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 controlled'' computer, having any of 
the following:
    h.1. Systems that control the ``robot'' using information from 
sensors which 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. The ability to exert a force of 250 N or more or a torque of 
250 Nm or more and using titanium based alloys or ``fibrous or 
filamentary'' ``composite'' materials in their structural members;
    i. Remotely controlled articulated manipulators specially designed 
or modified for use with submersible vehicles, having any of the 
following:
    i.1. Systems which control the manipulator using the information 
from sensors which 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 controlled'' computer, and having 5 degrees 
of freedom of movement or more;
    Note: Only functions having proportional control using positional 
feedback or by using a dedicated ``stored program controlled'' computer 
are counted when determining the number of degrees of freedom of 
movement
    j. Air independent power systems, specially designed for underwater 
use, as follows:
    j.1. Brayton 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 any 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;
    j.4. Stirling cycle engine air independent power systems, having all 
of the following:
    j.4.a. Devices or enclosures specially designed for underwater noise 
reduction in frequencies below 10 kHz or special mounting devices for 
shock mitigation; and

[[Page 757]]

    j.4.b. Specially designed exhaust systems which discharge the 
products of combustion against a pressure of 100 kPa or more;
    k. Skirts, seals and fingers, having any of the following:
    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; or
    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, 8A001.g, 8A001.h or 8A001.i;
    o. Propellers, power transmission systems, power generation systems 
and noise reduction systems, as follows:
    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, 8A001.g, .8A001.h or 8A001.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 systems or transmission 
systems designed for use on vessels, as follows:
    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 designed for use on vessels of 1,000 
tons displacement or more, as follows:
    o.3.a. Systems that attenuate underwater noise 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 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 having 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.
    q. Self-contained, closed or semi-closed circuit (rebreathing) 
diving and underwater swimming apparatus.
    Note: 8A002.q does not control an individual apparatus for personal 
use when accompanying its user.

8A018 Items on the International Munitions List.

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

LVS: $5000, except N/A for Rwanda
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: See also 8A002 and 8A992.
Related Definitions: N/A
Items:
    a. Closed and semi-closed circuit (rebreathing) apparatus specially 
designed for military use, 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;

[[Page 758]]

    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 Underwater systems or equipment, not controlled by 8A002 or 8A018, 
          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: See also 8A002 and 8A018
Related Definitions: N/A
Items: a. Underwater vision systems, as follows:

    a.1. 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
    a.2. 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.

    b. Photographic still cameras specially designed or modified for 
underwater use, having a film formate of 35 mm or larger, and having 
autofocussing or remote focussing specially designed for underwater use;
    c. Stroboscopic light systems, specially designed or modified for 
underwater use, capable of a light output energy of more than 300 J per 
flash;
    d. Other underwater camera equipment, n.e.s.;
    e. Other submersible systems, n.e.s.;
    f. Boats, n.e.s., including inflatable boats, and specially designed 
components therefor, n.e.s.;
    g. Marine engines (both inboard and outboard) and submarine engines, 
n.e.s.; and specially designed parts therefor, n.e.s.;
    h. Other self-contained underwater breathing apparatus (scuba gear) 
and related equipment, n.e.s.;
    i. Life jackets, inflation cartridges, compasses, wetsuits, masks, 
fins, weight belts, and dive computers;
    j. Underwater lights and propulsion equipment;
    k. Air compressors and filtration systems specially designed for 
filling air cylinders.

              B. Test, Inspection and Production Equipment

8B001 Water tunnels, having a background noise of less than 100 dB 
          (reference 1 [mu]Pa, 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 designed for underwater use, having all of the 
          following (see List of Items Controlled).

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

[[Page 759]]

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. A density less than 561 kg/m\3\.

                               D. Software

8D001 ``Software'' specially designed or modified for the 
          ``development'', ``production'' or ``use'' of equipment or 
          materials controlled by 8A (except 8A018 or 8A992), 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 Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions
CIV: N/A
TSR: Yes, except for the following:
    (1) Items controlled for MT reasons; or
    (2) Exports or reexports to destinations outside of Austria, 
Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, 
Italy, Japan, Luxembourg, the Netherlands, Portugal, Spain, Sweden, or 
the United Kingdom of ``software'' specially designed for the 
``development'' or ``production'' of equipment controlled by 8A001.b, 
8A001.d, or 8A002.o.3.b.

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 Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: $ value
Related Controls: See also 8D992
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

 
               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

8E001 ``Technology'' according to the General Technology Note for the 
          ``development'' or ``production'' of equipment or materials 
          controlled by 8A (except 8A018 or 8A992), 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 Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions
CIV: N/A
TSR: Yes, except for the following:
    (1) Items controlled for MT reasons; or
    (2) Exports or reexports to destinations outside of Austria, 
Belgium, Canada, Denmark, Finland, France, Germany, Greece, Ireland, 
Italy, Japan, Luxembourg, the Netherlands, Portugal, Spain, Sweden, or 
the United Kingdom of ``technology'' for items controlled by 8A001.b, 
8A001.d or 8A002.o.3.b.

List of Items Controlled

Unit: N/A
Related Controls: N/A
Related Definitions: N/A

[[Page 760]]

Items: The list of items controlled is contained in the ECCN heading

8E002 Other ``technology'', as follows (see List of Items Controlled).

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 Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

CIV: N/A
TSR: Yes

List of Items Controlled

Unit: N/A
Related Controls: See also 8E992
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, 8A002.j, 8A002.o or 8A002.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`

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 9--Propulsion Systems, Space Vehicles and Related Equipment

                  A. Systems, Equipment and Components

    N.B.: For propulsion systems designed or rated against neutron or 
transient ionizing, see the U.S. Munitions List, 22 CFR part 121.

9A001 Aero gas turbine engines incorporating any of the ``technologies'' 
          controlled by 9E003.a, as follows (see List of Items 
          Controlled).

License Requirements

Reason for Control: NS, MT, AT

 
               Control(s)                         Country Chart
 
NS applies to entire entry.............  NS Column 1
MT applies to only to those engines      MT Column 1
 that meet the characteristics listed
 in 9A101.
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: See also 9A101 and 9A991
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 number of up to 16 civil certified engines, assemblies, or 
components including spares is considered appropriate.

    b. Not certified for civil use by the aviation authorities 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 
          not exceeding 0.219 kg/kWh 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: N/A
CIV: N/A

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 a 
ship's electric power generation or propulsion
Items: The list of items controlled is contained in the ECCN heading


[[Page 761]]


9A003 Specially designed assemblies and components, incorporating any of 
          the ``technologies'' controlled by 9E003.a, for gas turbine 
          engine propulsion systems, as follows (see List of Items 
          Controlled).

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 Definition: N/A
Items: a. Controlled by 9A001;

    b. Whose design or production origins are either countries in 
Country Group D:1 or unknown to the manufacturer.

9A004 Space launch vehicles and ``spacecraft''.

License Requirements

Reason for Control: NS and 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: Equipment in number. Components, parts and accessories in $ 
value. Related Controls: (1.) See also 9A104. (2.) Space launch vehicles 
are under the jurisdiction of the Department of State. (3.) Effective 
March 15, 1999, all satellites, including commercial communications 
satellites, are subject to the ITAR. Effective March 15, 1999, all 
license applications for the export of commercial communications 
satellites will be processed by the State Department, Office of Defense 
Trade Controls. Retransfer of jurisdiction for commercial communications 
satellites and related items shall not affect the validity of any export 
license issued by the Department of Commerce prior to March 15, 1999, or 
of any export license application filed under the Export Administration 
Regulations on or before March 14, 1999, and subsequently issued by the 
Department of Commerce. Commercial communications satellites licensed by 
the Department of Commerce, including those already exported, remain 
subject to the EAR and all terms and conditions of issued export 
licenses until their stated expiration date. All licenses issued by the 
Department of Commerce for commercial communications satellites, 
including licenses issued after March 15, 1999, remain subject to SI 
controls throughout the validity of the license. Effective March 15, 
1999, Department of State jurisdiction shall apply to any instance where 
a replacement license would normally be required from the Department of 
Commerce. Transferring registration or operational control to any 
foreign person of any item controlled by this entry must be authorized 
on a license issued by the Department of State, Office of Defense Trade 
Controls. This requirement applies whether the item is physically 
located in the United States or abroad. (4.) All other ``spacecraft'' 
not controlled under 9A004 and their payloads, and specifically designed 
or modified components, parts, accessories, attachments, and associated 
equipment, including ground support equipment, are subject to the export 
licensing authority of the Department of State unless otherwise 
transferred to the Department of Commerce via a commodity jurisdiction 
determination by the Department of State. (5.) Exporters requesting a 
license from the Department of Commerce for ``spacecraft'' and their 
associated parts and components, other than the international space 
station, 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. All 
specially designed or modified components, parts, accessories, 
attachments, and associated equipment for ``spacecraft'' that have been 
determined by the Department of State through the commodity jurisdiction 
process to be under the licensing jurisdiction of the Department of 
Commerce and that are not controlled by any other ECCN on the Commerce 
Control List will be assigned a classification under this ECCN 9A004. 
(6.) Technical data required for the detailed design, development, 
manufacturing, or production of the international space station (to 
include specifically designed parts and components) remains under the 
jurisdiction of the Department of State. This control by the ITAR of 
detailed design, development, manufacturing or production technology for 
NASA's international space station does not include that level of 
technical data necessary and reasonable for assurance that a U.S.-built 
item intended to operate on NASA's international space station has been 
designed, manufactured, and tested in conformance with specified 
requirements (e.g., operational performance, reliability, lifetime, 
product quality, or delivery expectations). All technical data and all 
defense services, including all technical assistance, for launch of the 
international space station, including launch vehicle compatibility, 
integration, or processing data, are controlled

[[Page 762]]

and subject to the jurisdiction of the Department of State, in 
accordance with 22 CFR parts 120 through 130.
    Items: a. The international space station being developed, launched 
and operated under the supervision of the U.S. National Aeronautics and 
Space Administration. Hardware specific to the international space 
station transferred to the Department of Commerce by commodity 
jurisdiction action is also included.
    b. Specific items as may be determined to be not subject to the ITAR 
through the commodity jurisdiction procedure administered by the 
Department of State after March 15, 1999.

9A005 Liquid rocket propulsion systems containing any of the systems or 
          components controlled by 9A006. (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.)

9A006 Systems and components specially designed for liquid rocket 
          propulsion systems. (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.)

9A007 Solid rocket propulsion systems. (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.)

9A008 Components specially designed for solid rocket propulsion systems. 
          (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.)

9A009 Hybrid rocket propulsion systems. (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.)

9A010 Specially designed components, systems and structures for launch 
          vehicles, launch vehicle propulsion systems or ``spacecraft''. 
          (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.)

9A011 Ramjet, scramjet or combined cycle engines and specially designed 
          components therefor. (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.)

9A012 Non-military unmanned aerial vehicles, having any of the following 
          characteristics (see List of Items Controlled).

License Requirements
Reason for Control: NS, MT, AT

------------------------------------------------------------------------
               Control(s)                         Country Chart
------------------------------------------------------------------------
NS applies to entire entry.............  NS Column 1
MT applies to non-military unmanned air  MT Column 1
 vehicle systems (UAVs) and remotely
 piloted vehicles (RPVs) that are
 capable of a maximum range of at least
 300 kilometers (km), regardless of
 payload.
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: See the U.S. Munitions List Category VIII (22 CFR part 
121).
Related Definitions: N/A
Items:
    a. An autonomous flight control and navigation capability (e.g., an 
autopilot with an Inertial Navigation System); or
    b. Capability of controlled-flight out of the direct vision range 
involving a human operator (e.g., televisual remote control).
    Note: 9A012 does not control model aircraft.

9A018 Equipment 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 9A018.a and b.............  RS Column 2.
AT applies to entire entry..............  AT Column 1.
UN applies to entire entry..............  Rwanda.
------------------------------------------------------------------------

License Exceptions

LVS: $1500, except N/A for Rwanda
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Equipment in number; parts and accessories in $ value

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.

[[Page 763]]

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 Sec.  770, 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 controlled 
          by 9A001, as follows (see List of Items Controlled).

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; parts and accessories in $ value
Related Controls: 9A101.b controls only engines for non-military 
unmanned air vehicles [UAVs] or remotely piloted vehicles [RPVs], and 
does not control other engines designed or modified for use in 
``missiles'', which 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:

    a. Engines having both of the following characteristics:
    a.1. Maximum thrust value greater than 400 N (achieved un-installed) 
excluding civil certified engines with a maximum thrust value greater 
than 8,890 N (achieved un-installed), and
    a.2. Specific fuel consumption of 0.15 kg/N/hr or less (at maximum 
continuous power at sea level static and standard conditions); or
    b. Engines designed or modified for use in ``missiles'', regardless 
of thrust or specific fuel consumption.

9A104 Sounding rockets, capable of a range of at least 300 km. (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.)

9A105 Liquid propellant rocket engines. (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.)

9A106 Systems or components, other than those controlled by 9A006, 
          usable in ``missiles'', as follows (see List of Items 
          Controlled), and 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: 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: Items described in 9A106.a, .b, and .c 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: a. Ablative liners for thrust or combustion chambers;
    b. Rocket nozzles;
    c. Thrust vector control sub-systems;
    Technical Note: Examples of methods of achieving thrust vector 
control controlled by 9A106.c includes:
    1. Flexible nozzle;
    2. Fluid or secondary gas injection;
    3. Movable engine or nozzle;
    4. Deflection of exhaust gas steam (jet vanes or probes); or
    5. Thrust tabs.

[[Page 764]]

    d. Liquid and slurry propellant (including oxidizers) control 
systems, and specially designed components therefor, designed or 
modified to operate in vibration environments of more than 10 g rms 
between 20 Hz and 2000 Hz.

    Note: The only servo valves and pumps controlled by 9A106.d, are the 
following:
    a. Servo valves designed for flow rates of 24 liters per minute or 
greater, at an absolute pressure of 7 Mpa or greater, that have an 
actuator response time of less than 100 ms;
    b. 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.
    e. Flight control servo valves designed or modified for use in 
``missiles'' and designed or modified to operate in a vibration 
environment of more than 10g RMS over the entire range between 20Hz and 
2KHz.

9A107 Solid propellant rocket engines, usable in rockets with a range 
          capability of 300 Km or greater, other than those controlled 
          by 9A007, having total impulse capacity of 0.841 Mns or 
          greater. (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.)

9A108 Solid rocket propulsion components, other than those controlled by 
          9A008, usable in rockets with a range capability of 300 Km or 
          greater. (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.)

9A109 Hybrid rocket motors, usable in rockets with a range capability of 
          300 Km or greater, other than those controlled by 9A009, and 
          specially designed components therefor. (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.)

9A110 Composite structures, laminates and manufactures thereof, other 
          than those controlled by entry 9A010, specially designed for 
          use in ``missiles'' or the subsystems controlled by entries 
          9A005, 9A007, 9A105.a, 9A106 to 9A108, 9A116, or 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: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: Kilograms
Related Controls: (1) See also 1A002. (2) ``Composite structures, 
laminates, and manufactures thereof, specially designed for use in 
missile systems are under the licensing authority of the Directorate of 
Defense Trade Controls, U.S. Department of State, except those specially 
designed for non-military unmanned air vehicles controlled in 9A012.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading

9A111 Pulse jet engines, usable in ``missiles'', and specially designed 
          components therefor. (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.)

9A115 Apparatus, devices and vehicles, designed or modified for the 
          transport, handling, control, activation and launching of 
          ``missiles''. (These items are subject to the export licensing 
          authority of the U.S. Department of State, Directorate of 
          Defense Trade Controls. See 22 CFR part 121.)

9A116 Reentry vehicles, usable in ``missiles'', and equipment designed 
          or modified therefor. (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.)

9A117 Staging mechanisms, separation mechanisms, and interstages 
          therefor, usable in ``missiles''. (These items are subject to 
          the export licensing authority of the U.S. Department of 
          State, Directorate of Defense Trade Controls. See 22 CFR part 
          121.)

9A118 Devices to regulate combustion usable in engines which are usable 
          in rockets with a range capability greater than 300 Km or 
          greater, controlled by 9A011 or 9A111. (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.)


9A119 Individual rocket stages, usable in rockets with a range 
          capability greater than 300 Km or greater, other than those 
          controlled by 9A005, 9A007, 9A009, 9A105, 9A107 and 9A109. 
          (These items are subject to the export licensing authority of

[[Page 765]]

          the U.S. Department of State, Office of Defense Trade 
          Controls. See 22 CFR part 121.)

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

9A990 Diesel engines, n.e.s., and tractors and specially designed parts 
          therefor, n.e.s.

License Requirements

Reason for Control: AT

 
               Control(s)                         Country Chart
 
AT applies to entire entry except        AT Column 1
 9A990.a.
AT applies to 9A990.a only.............  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. 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])

    b. Off highway wheel tractors of carriage capacity 9 mt (20,000 lbs) 
or more; and parts and accessories, n.e.s.
    c. On-Highway tractors, with single or tandem rear axles rated for 9 
mt per axel (20,000 lbs.) or greater and specially designed parts.

9A991 ``Aircraft'', n.e.s., and gas turbine engines not controlled by 
          9A001 or 9A101 and parts and components, 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. Civil aircraft; and

    Note: Specify make and model of aircraft and type of avionic 
equipment on aircraft.

    c. Aero gas turbine engines, 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.

    d. Aircraft parts and components, n.e.s.
    e. Pressurized aircraft breathing equipment, n.e.s.; and specially 
designed parts therefor, n.e.s.

9A992 Complete canopies, harnesses, and platforms and electronic release 
          mechanisms therefor, except such types as are in normal 
          sporting use.

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: Number
Related Controls: N/A
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading

[[Page 766]]

              B. Test, Inspection and Production Equipment

9B001 Specially Designed Equipment, Tooling and Fixtures, As Follows 
          (See List of Items Controlled), for Manufacturing 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 1
MT applies only to equipment for         MT Column 1
 engines that meet the characteristics
 described in 9A001.
AT applies to entire entry.............  AT Column 1
 

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

LVS: $5000, except N/A for MT
GBS: Yes, except N/A for MT
CIV: Yes, except N/A for MT

List of Items Controlled

Unit: $ value.
Related Controls: For specially designed production equipment of 
systems, sub-systems and components controlled by 9A005 to 9A009, 9A011, 
9A101, 9A105 to 9A109, 9A111, and 9A116 to 9A119 usable in ``missiles'' 
see 9B115. See also 9B991.
Related Definitions: N/A.
Items:
    a. Directional solidification or single crystal casting equipment;
    b. Ceramic cores or shells.

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 1
MT applies only to equipment for         MT Column 1
 engines that meet the characteristics
 described in 9A001.
AT applies to entire entry.............  AT Column 1
 

License Exceptions

LVS: $3000, except N/A for MT
GBS: Yes, except N/A for MT
CIV: Yes, except N/A for MT

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 temperatures in excess of 773 K 
          (500[deg]C), and specially designed components or accessories 
          therefor.

License Requirements

Reason for Control: NS, MT, AT

 
               Control(s)                         Country Chart
 
NS applies to entire entry.............  NS Column 1
MT applies only to equipment for         MT Column 1
 engines that meet the characteristics
 described in 9A001.
AT applies to entire entry.............  AT Column 1
 

License Exceptions

LVS: $5000, except N/A for MT
GBS: Yes, except N/A for MT
CIV: Yes, except N/A for MT

List of Items Controlled

Unit: $ value
Related Controls: See also 9B115
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 
          ``superalloy'', titanium or intermetallic airfoil-to-disk 
          combinations described in 9E003.a.3 or 9E003.a.6 for gas 
          turbines.

License Requirements

Reason for Control: NS, MT, AT

 
               Control(s)                         Country Chart
 
NS applies to entire entry.............  NS Column 1
MT applies only to equipment for         MT Column 1
 engines that meet the characteristics
 described in 9A001.
AT applies to entire entry.............  AT Column 1
 

License Exceptions

LVS: $3000, except N/A for MT
GBS: Yes, except N/A for MT
CIV: Yes, except N/A for MT

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

9B005 On-line (real time) control systems, instrumentation (including 
          sensors) or automated data acquisition and processing 
          equipment, specially designed for

[[Page 767]]

          use with any of the following wind tunnels or devices (see 
          List of Items Controlled).

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
Related Controls: See also 9B105
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; or
    c. Wind tunnels or devices, other than two-dimensional sections, 
capable of simulating Reynolds number flows exceeding 25x106.

9B006 Acoustic vibration test equipment capable of producing sound 
          pressure levels of 160 Db or more (referenced to 20 uPa) with 
          a rated output of 4 kW or more at a test cell temperature 
          exceeding 1,273 K (1,000 [deg]C), and specially designed 
          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: See also 9B106. Note that some items in 9B006 may also 
be controlled under 9B106
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 1
MT applies to entire entry.............  MT Column 1
AT applies to entire entry.............  AT Column 1
 

License Exceptions

LVS: N/A
GSB 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
GSB 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
AT applies to entire entry.............  AT Column 1
 

License Exceptions

LVS: $5000
GBS: N/A
CIV: N/A

List of Items Controlled


[[Page 768]]


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: N/A
GBS: N/A
CIV: N/A

List of Items Controlled

Unit: $ value
Related Controls: See also 9B005
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading

9B106 Environmental chambers and anechoic chambers, as follows (see List 
          of Items Controlled).

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:
    a. Environmental chambers capable of simulating all of the following 
flight conditions:
    a.1. Vibration environments of 10 g RMS or greater between 20 Hz and 
2,000 Hz imparting forces of 5 kN or greater; and
    a.2. Any of the following:
    a.2.a. Altitude of 15,000 m or greater; or
    a.2.b. Temperature range of at least 223 K (-50oC) to 398 K 
(+125[deg]C);
    b. Anechoic chambers capable of simulating all of the following 
flight conditions:
    b.1. Acoustic environments at an overall sound pressure level of 140 
dB or greater (referenced to 2 x 10-\5\ N/m \2\) or with a 
rated power output of 4kW or greater; and
    b.2. any of the following:
    b.2.a. Altitude of 15,000 m or greater; or
    b.2.b. Temperature range of at least 223K 
(-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: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Equipment in number; components in $ value
Related Controls: Although items described in ECCNs 9A004 to 9A009, 
9A011, 9A101, 9A104 to 9A109; 9A111, 9A116 to 9A119 are subject to the 
export licensing authority of the Department of State, Office of Defense 
Trade Controls (22 CFR part 121), the ``production equipment'' 
controlled in this entry that is related to these items is subject to 
the export licensing authority of BIS.
Related Definitions: NA.
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, 
          9A012, 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: N/A
GBS: N/A
CIV: N/A
List of Items Controlled
Unit: Equipment in number; components in $ value
Related Controls: Although items described in ECCNs 9A004 to 9A009, 
9A011, 9A101, 9A104 to 9A109; 9A111, 9A116 to 9A119 are subject to the 
export licensing authority of the Department of State, Office of Defense 
Trade Controls (22 CFR part 121), the ``production equipment'' 
controlled in this entry that is related to these items is subject to 
the export licensing authority of BIS.
Related Definitions: NA.
Items: The list of items controlled is contained in the ECCN heading.


[[Page 769]]


9B117 Test benches and test stands for solid or liquid propellant 
          rockets or rocket motors, having either of the following 
          characteristics (see List of Items Controlled).

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: See also 9B990
Related Definitions: N/A
Items: a. The capacity to handle more than 90 Kn of thrust; or

    b. Capable of simultaneously measuring the three axial thrust 
components.

9B990 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

9B991 Specially designed equipment, tooling or fixtures, not controlled 
          by 9B001, as described in the List of Items Controlled, for 
          manufacturing or measuring gas turbine blades, vanes or tip 
          shroud castings.

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. 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. Ceramic core leaching equipment;
    d. Ceramic core manufacturing equipment or tools;
    e. Ceramic shell wax pattern preparation equipment;
    f. Ceramic shell burn out or firing equipment.

                              C. Materials

9C110 Resin impregnated fiber prepregs and metal coated fiber preforms 
          therefor, for composite structures, laminates and manufactures 
          specified in 9A110, 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 and a 
          specific modulus greater than 3.18 x 10\6\ m.

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: (1) See also 1C010 and 1C210.c.
    (2) The only resin impregnated fiber prepregs controlled by entry 
9C110 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.
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading.

                               D. Software

9D001 ``Software'' specially designed or modified for the 
          ``development'' of equipment or ``technology'' controlled by 
          9A (except 9A018, 9A990 or 9A991), 9B (except 9B990 or 9B991) 
          or 9E003.

License Requirements

Reason for Control: NS, MT, AT

 
               Control(s)                         Country chart
 
NS applies to ``software'' for items     NS Column 1
 controlled by 9A001 to 9A003, 9A012,
 9B001 to 9B009, and 9E003.

[[Page 770]]

 
MT applies to ``software'' for           MT Column 1
 equipment controlled by 9A106.a and
 .b, or 9B116 for MT reasons.
AT applies to entire entry.............  AT Column 1
 

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: (1) ``Software'' ``required'' for the ``development'' 
of items controlled by 9A004 is subject to the export licensing 
authority of the U.S. Department of State, Directorate of Defense Trade 
Controls. (See 22 CFR part 121.)
    (2) ``Software'' ``required'' for the ``development'' of equipment 
or ``technology'' subject to the export licensing authority of the U.S. 
Department of State, Directorate of Defense Trade Controls is also 
subject to the same licensing jurisdiction. (See 22 CFR part 121.)
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading

9D002 ``Software'' specially designed or modified for the ``production'' 
          of equipment controlled by 9A (except 9A018, 9A990, or 9A991) 
          or 9B (except 9B990 or 9B991).

License Requirements

Reason for Control: NS, MT, AT

 
               Control(s)                         Country chart
 
NS applies to ``software'' for           NS Column 1
 equipment controlled by 9A001 to
 9A003, 9A012, 9B001 to 9B009, or 9E003.
MT applies to ``software'' for           MT Column 1
 equipment controlled by 9B116 for MT
 reasons.
AT applies to entire entry.............  AT Column 1
 

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value
Related Controls: (1) ``Software'' ``required'' for the ``production'' 
of items 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.) (2) ``Software'' ``required'' for the 
``production'' of equipment or ``technology'' subject to the export 
licensing authority of the U.S. Department of State, Office of Defense 
Trade Controls is also subject to the same licensing jurisdiction. (See 
22 CFR part 121.)
Related Definitions: N/A
Items: The list of items controlled is contained in the ECCN heading

9D003 ``Software'' specially designed or modified for the ``use'' of 
          full authority digital electronic engine controls (FADEC) for 
          propulsion systems controlled by 9A (except 9A018, 9A990 or 
          9A991) or equipment controlled by 9B (except 9B990 or 9B991), 
          as follows (see List of Items Controlled).

License Requirements

Reason for Control: NS, MT, AT

 
               Control(s)                         Country Chart
 
NS applies to ``software'' for ``use''   NS Column 1
 of FADEC for equipment controlled by
 9A001 to 9A003.
MT applies to ``software'' required for  MT Column 1
 the ``use'' of FADEC for gas turbine
 engines controlled by 9A101, 9A106, or
 9A110.
AT applies to entire entry.............  AT Column 1
 

License Exceptions

CIV: Yes, except N/A for MT
TSR: Yes, except N/A for MT

List of Items Controlled

Unit: $ value
Related Controls: (1) See also 9D103. (2) ``Software'' ``required'' for 
the ``use'' of equipment or ``technology'' subject to the export 
licensing authority of the U.S. Department of State, Office of Defense 
Trade Controls is also subject to the same licensing jurisdiction. (See 
22 CFR part 121.)
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'', as follows (see List of Items Controlled).

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


[[Page 771]]


Unit: $ value
Related Controls: N/A
Related Definitions: N/A
Items: a. 2D or 3D viscous ``software'' validated with wind tunnel or 
flight test data required for detailed engine flow modelling;

    b. ``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;
    c. ``Software'' specially designed to control directional 
solidification or single crystal casting;
    d. ``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.d 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.

9D018 ``Software'' for the ``use'' of equipment controlled by 9A018.

License Requirements

Reason for Control: NS, RS, AT, UN.

------------------------------------------------------------------------
               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.
UN applies to entire entry..............  Rwanda.
------------------------------------------------------------------------

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

9D101 ``Software'' specially designed or modified for the ``use'' of 
          commodities controlled by 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

9D103 ``Software'' specially designed for modelling, simulation or 
          design integration of ``missiles'', or the subsystems 
          controlled by 9A005, 9A007, 9A105.a, 9A106, 9A108, 9A116 or 
          9A119. (This entry is subject to the export licensing 
          authority of the U.S. Department of State, Office of Defense 
          Trade Controls. See 22 CFR part 121.)

9D104 ``Software'' specially designed and modified for the ``use'' of 
          equipment controlled by 9A001, 9A005, 9A006.d, 9A006.g, 
          9A007.a, 9A008.d, 9A009.a, 9A010.d, 9A011, 9A012 (for MT 
          controlled items only), 9A101, 9A105, 9A106.c and .d, 9A107, 
          9A108.c, 9A109, 9A111, 9A115.a, 9A116.d, 9A117, or 9A118.

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: ``Software'' for commodities controlled by 9A005 to 
9A011, 9A105, 9A106.c, 9A107 to 9A109, 9A111, 9A115, 9A116, 9A117, and 
9A118 are subject to the export licensing authority of the U.S. 
Department of State, Directorate 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.

9D105 ``Software'' that coordinates the function of more than one 
          subsystem, specially designed or modified for ``use'' in 
          ``missiles.'' (These items are subject to the export licensing 
          authority of the U.S. Department of State, Directorate of 
          Defense Trade Controls. See 22 CFR part 121.)

9D990 ``Software'', n.e.s., for the ``development'' or ``production'' of 
          equipment controlled by 9A990 or 9B990.

License Requirements

Reason for Control: AT

 
               Control(s)                         Country Chart
 
AT applies to ``software'' for           AT Column 1
 equipment under 9A990 except 9A990.a.

[[Page 772]]

 
AT applies to ``software'' for           AT Column 2
 equipment under 9A990.a only.
 

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'', for the ``development'' or ``production'' of 
          equipment controlled by 9A991 or 9B991.

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

    Note: ``Development'' or ``production'' ``technology'' controlled by 
9E001 to 9E003 for gas turbine engines remains controlled when used as 
``use'' ``technology'' for repair, rebuild and overhaul. Excluded from 
control are: technical data, 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.

9E001 ``Technology'' according to the General Technology Note for the 
          ``development'' of equipment or ``software'' controlled by 
          9A001.c, 9A004 to 9A011, 9B (except 9B990 or 9B991), or 9D 
          (except 9D990 or 9D991).

License Requirements

Reason for Control: NS, MT, AT

 
               Control(s)                         Country Chart
 
NS applies to ``technology'' for items   NS Column 1
 controlled by 9A001.c, 9B001 to 9B009,
 9D001 to 9D004.
MT applies to ``technology'' for items   MT Column 1
 controlled by 9B001, 9B002, 9B003,
 9B004 9B005, 9B007, 9B105, 9B106,
 9B116, 9B117, 9D001, 9D002, 9D003, and
 9D004 for MT reasons.
AT applies to entire entry.............  AT Column 1
 

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A
Related Controls: (1) See also 9E101 and 1E002.f (for controls on 
``technology'' for the repair of controlled structures, laminates or 
materials). (2) The ``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.) (3) ``Technology'', required for the 
``development'' of equipment or ``software'' subject to the export 
licensing authority of the U.S. Department of State, Office of Defense 
Trade Controls, is also subject to the same licensing jurisdiction. (See 
22 CFR part 121)
Related Definitions: ``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

9E002 ``Technology'' according to the General Technology Note for the 
          ``production'' of equipment controlled by 9A001.c, 9A004 to 
          9A011 or 9B (except 9B990 or 9B991).

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         MT Column 1
 equipment controlled by 9B001, 9B002,
 9B003, 9B004, 9B005, 9B007, 9B105,
 9B106, 9B116, and 9B117 for MT reasons.
AT applies to entire entry.............  AT Column 1
 


[[Page 773]]

    License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: N/A.
Related Controls: (1) See also 9E102. (2) See also 1E002.f for 
``technology'' for the repair of controlled structures, laminates or 
materials. (3) The ``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.) (4) ``Technology'', required for the 
``development'' of equipment or ``software'' subject to the export 
licensing authority of the U.S. Department of State, Office of Defense 
Trade Controls, is also subject to the same licensing jurisdiction. (See 
22 CFR part 121).
Related Definitions: N/A.
Items:
    The list of items controlled is contained in the ECCN heading.

9E003 Other ``technology'', as follows (see List of Items Controlled).

License Requirements
Reason for Control: NS, SI, AT.

------------------------------------------------------------------------
               Control(s)                          Country chart
------------------------------------------------------------------------
NS applies to entire entry..............  NS Column 1.
SI applies to 9E003.a.1 through a.11,     ..............................
 and h. See Sec.   742.14 of the EAR for
 additional information..
AT applies to entire entry..............  AT Column 1.
------------------------------------------------------------------------

License Requirement Notes: See Sec.  743.1 of the EAR for reporting 
requirements for exports under License Exceptions.

License Exceptions

CIV: N/A
TSR: N/A
List of Items Controlled
Unit: N/A.
    Related Controls: (1.) 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 licensing authority of the U.S. Department of State. (2.) 
``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 the Department 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 the Department of State.
Related Definitions: N/A.
Items:
    a. ``Technology'' ``required'' for the ``development'', 
``production''of any of the following gas turbine engine components or 
systems:
    a.1. Gas turbine blades, vanes or tip shrouds made from 
directionally solidified (DS) or single crystal (SC) 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 1,813 K (1,540 [deg]C) or combustors 
incorporating thermally decoupled combustion liners, non-metallic liners 
or non-metallic shells;
    a.3. Components manufactured from any of the following:
    a.3.a. Organic ``composite'' materials designed to operate above 588 
K (315 [deg]C);
    a.3.b. Metal ``matrix'' ``composite'', ceramic ``matrix'', 
intermetallic or intermetallic reinforced materials controlled by 1C007; 
or
    a.3.c. ``Composite'' material controlled by 1C010 and manufactured 
with resins controlled by 1C008.
    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 control (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;
    a.10.c. Propelling nozzles; or
    Note 1: Adjustable flow path geometry and associated control systems 
in 9E003.a.10 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.

[[Page 774]]

    a.11. Wide chord hollow fan blades without part-span support;
    b. ``Technology'' ``required'' for the ``development'' or 
``production'' of any of the following:
    b.1. Wind tunnel aero-models equipped with non-intrusive sensors 
capable of transmitting data from the sensors to the data acquisition 
system; or
    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, ECM or EDM hole drilling processes to produce holes having any of 
the following sets of characteristics:
    c.1. All of the following:
    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. All of the following:
    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;
    e. ``Technology'' for the ``development'' or ``production'' of 
reciprocating diesel engine ground vehicle propulsion systems having all 
of the following:
    e.1. A box volume of 1.2 m3 or less;
    e.2. An overall power output of more than 750 kW based on 80/1269/
EEC, ISO 2534 or national equivalents; and
    e.3. 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.
    f. ``Technology'' ``required'' for the ``production'' of specially 
designed components, as follows, for high output diesel engines:
    f.1. ``Technology'' ``required'' for the ``production'' of engine 
systems having all of the following components employing ceramics 
materials controlled by 1C007:
    f.1.a Cylinder liners;
    f.1.b. Pistons;
    f.1.c. Cylinder heads; and
    f.1.d. One or more other components (including exhaust ports, 
turbochargers, valve guides, valve assemblies or insulated fuel 
injectors);
    f.2. ``Technology'' ``required'' for the ``production'' of 
turbocharger systems, with single-stage compressors having all of the 
following:
    f.2.a. Operating at pressure ratios of 4:1 or higher;
    f.2.b. A mass flow in the range from 30 to 130 kg per minute; and
    f.2.c. Variable flow area capability within the compressor or 
turbine sections;
    f.3. ``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:
    f.3.a. Injection amount in excess of 230 mm3 per 
injection per cylinder; and
    f.3.b. 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;
    g. ``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.
    h. ``Technology'' not otherwise controlled in 9E003.a.1 through a.10 
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, UN.

------------------------------------------------------------------------
               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.
UN applies to entire entry..............  Rwanda.
------------------------------------------------------------------------

License Exceptions

CIV: N/A
TSR: Yes for Australia, Japan, New Zealand, and NATO only


[[Page 775]]


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 commodities or software 
          controlled by 9A012, 9A101, 9A104 to 9A111, 9A115 to 9A119, 
          9D101, 9D103, 9D104 or 9D105.

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: ``Technology'' controlled by 9E101 for items in 9A012, 
9A101.b, 9A104, 9A105, to 9A109, 9A110 that are specially designed for 
use in missile systems and subsystems, 9A111, 9A115, 9A116 to 9A119, 
9D103, and 9D105 are subject to the export licensing authority of the 
U.S. Department of State, Directorate 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 space launch vehicles specified in 9A004, or 
          commodities or software controlled by 9A005 to 9A012, 9A101, 
          9A104 to 9A111, 9A115 to 9A119, 9B105, 9B106, 9B115, 9B116, 
          9B117, 9D101, 9D103, 9D104 or 9D105.

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: (1) For the purpose of this entry, ``use'' 
``technology'' is limited to items controlled for MT and their 
subsystems.
    (2) ``Technology'' controlled by 9E102 for commodities or software 
subject to the export licensing jurisdiction of the Department of State 
in 9A004 to 9A012, 9A101.b, 9A104, 9A105, 9A106.a to .c, 9A107 to 9A109, 
9A110 that are specially designed for use in missile systems and 
subsystems, 9A111, 9A115 to 9A119, 9B115, 9B116, 9D103, specified 
software in 9D104, and 9D105 are subject to the export licensing 
authority of the U.S. Department of State, Directorate 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'' or ``production'' 
          or ``use'' of equipment controlled by 9A990 or 9B990.

License Requirements

Reason for Control: AT

 
               Control(s)                         Country Chart
 
AT applies to ``technology'' for         AT Column 1
 equipment under 9A990 and 9B990 except
 9A990.a.
AT applies to ``technology'' for         AT Column 2
 equipment under 9A990.a only.
 

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

9E991 ``Technology'', for the ``development'', ``production'' or ``use'' 
          of equipment controlled by 9A991 or 9B991.

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

9E993 Other ``technology'', not described by 9E003, as follows (see List 
          of Items Controlled)

License Requirements

Reason for Control: AT.

 
               Control(s)                         Country chart
 
AT applies to entire entry.............  AT Column 1.
 


[[Page 776]]

License Exceptions

CIV: N/A
TSR: N/A

List of Items Controlled

Unit: $ value.
Related Controls: N/A.
Related Definitions: N/A.
Items:
    a. Rotor blade tip clearance control systems employing active 
compensating casing ``technology'' limited to a design and development 
data base; or
    b. Gas bearing for turbine engine rotor assemblies.

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.

[63 FR 2459, Jan. 15, 1998]

    Editorial Note: For Federal Register citations affecting Supplement 
No. 1 to Part 774, see the List of CFR Sections Affected, which appears 
in the Finding Aids section of the printed volume and on GPO Access.

   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 TSU 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, 8E002.a, or 
8E002.b.
    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.
    2. 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;
    3. Electronic transactions; or
    4. Telephone call transactions; and
    b. Designed for installation by the user without further substantial 
support by the supplier.
    Note: The General Software Note does not apply to ``software'' 
controlled by Category 5--part 2 (``Information Security''). For 
``software'' controlled by Category 5, part 2, see Supplement No. 1 to 
part 774, Category 5, part 2, Note 3--Cryptography Note.

[68 FR 10608, Mar. 5, 2003]

        Supplement No. 3 to Part 774--Statements of Understanding

    Statement of Understanding--medical equipment: Commodities that are 
``specially designed for medical end-use'' that ``incorporate'' 
commodities or software on the Commerce Control List (Supplement No. 1 
to part 774 of the EAR) that do not have a reason for control of Nuclear 
Nonproliferation (NP), Missile Technology (MT), or Chemical & Biological 
Weapons (CB) are designated by the number EAR99 (i.e., are not elsewhere 
specified on the Commerce Control List).
    Notes applicable to State of Understanding related to Medical 
Equipment: (1) ``Specially designed for medical end-use'' means designed 
for medical treatment or the practice of medicine (does not include 
medical research).
    (2) ``Incorporate'' into medical equipment means to integrate with, 
or work indistinguishably into such equipment.
    (3) Except for such software that is made publicly available 
consistent with Sec.  734.3(b)(3) of the EAR, commodities and software 
``specially designed for medical end-use'' remain subject to the EAR.
    (4) See also Sec.  770.2(b) interpretation 2, for other types of 
equipment that incorporate items on the Commerce Control List that are 
subject to the EAR.
    (5) For computers used with medical equipment, see also ECCN 4A003 
note 2 regarding the ``principal element'' rule.
    (6) For commodities and software specially designed for medical end-
use that incorporate an encryption or other ``information security'' 
item subject to the EAR, see also Note 1 to Category 5, Part II of the 
Commerce Control List.

[68 FR 68996, Dec. 10, 2003]

                        PARTS 775	799 [RESERVED]

[[Page 777]]



                              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
  List of CFR Sections Affected

[[Page 779]]



                    Table of CFR Titles and Chapters




                     (Revised as of January 1, 2004)

                      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)

                   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)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      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 3201)
     XXIII  Department of Energy (Part 3301)
      XXIV  Federal Energy Regulatory Commission (Part 3401)
       XXV  Department of the Interior (Part 3501)
      XXVI  Department of Defense (Part 3601)

[[Page 780]]

    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)
        LV  National Endowment for the Arts (Part 6501)
       LVI  National Endowment for the Humanities (Part 6601)
      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)
       LXI  National Labor Relations Board (Part 7101)
      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)
     LXVII  Institute of Museum and Library Services (Part 7701)
      LXIX  Tennessee Valley Authority (Part 7901)
      LXXI  Consumer Product Safety Commission (Part 8101)
    LXXIII  Department of Agriculture (Part 8301)
     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--Homeland Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 0--99)

[[Page 781]]

                         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 Nutrition Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        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)
        XX  Local Television Loan Guarantee Board (Parts 2200--
                2299)
      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 the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)

[[Page 782]]

      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    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)
    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  Department of Homeland Security (Immigration and 
                Naturalization) (Parts 1--499)
         V  Executive Office for Immigration Review, Department of 
                Justice (Parts 1000--1399)

                 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, 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)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Part 1800)

[[Page 783]]

                      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)
        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  Department of the Treasury (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)
        IV  Emergency Steel Guarantee Loan Board, Department of 
                Commerce (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board, 
                Department of Commerce (Parts 500--599)

                    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)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

[[Page 784]]

                 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 Industry and Security, 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
        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)

[[Page 785]]

      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  Bureau of Customs and Border Protection, Department of 
                Homeland Security; Department of the Treasury 
                (Parts 0--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Bureau of Immigration and Customs Enforcement, 
                Department of Homeland Security (Parts 400--599)

                     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)
        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 (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  Broadcasting Board of Governors (Parts 500--599)
       VII  Overseas Private Investment Corporation (Parts 700--
                799)
        IX  Foreign Service Grievance Board Regulations (Parts 
                900--999)

[[Page 786]]

         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)
       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)

                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)
        IV  Office of Housing and Office of Multifamily Housing 
                Assistance Restructuring, Department of Housing 
                and Urban Development (Parts 400--499)
         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)

[[Page 787]]

      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         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 (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Part 1200)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--899)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Alcohol and Tobacco Tax and Trade Bureau, Department 
                of the Treasury (Parts 1--399)
        II  Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
                Department of Justice (Parts 400--699)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--299)

[[Page 788]]

       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)
      VIII  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 800--899)
        IX  National Crime Prevention and Privacy Compact Council 
                (Parts 900--999)
        XI  Department of Justice and Department of State (Parts 
                1100--1199)

                            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 Standards, 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  Employee Benefits Security 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)
       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)

[[Page 789]]

       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)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--Department of Justice) (Parts 900--999)

                      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)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       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)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)

[[Page 790]]

        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)
        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)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Part 1501)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

[[Page 791]]

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
        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--1099)
        IV  Environmental Protection Agency and Department of 
                Justice (Parts 1400--1499)
         V  Council on Environmental Quality (Parts 1500--1599)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)
       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)

          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 Service, 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)
       102  Federal Management Regulation (Parts 102-1--102-299)
       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)

[[Page 792]]

       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
       300  General (Parts 300-1--300-99)
       301  Temporary Duty (TDY) 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 (Part 303-70)
       304  Payment of Travel Expenses from a Non-Federal Source 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Centers for Medicare & Medicaid Services, 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--10010)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency, Department of 
                Homeland Security (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 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare

[[Page 793]]

        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  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)
       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)
     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 Homeland Security (Parts 
                1--199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Homeland Security (Parts 400--499)
        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)

[[Page 794]]

       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  United States 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)
        19  Broadcasting Board of Governors (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)
        30  Department of Homeland Security, Homeland Security 
                Acquisition Regulation (HSAR) (Parts 3000--3099)
        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)

[[Page 795]]

        54  Defense Logistics Agency, Department of Defense (Parts 
                5400--5499)
        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 Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Homeland Security (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)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)
        XI  Bureau of Transportation Statistics, Department of 
                Transportation (Parts 1400--1499)
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1599)

                   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)

[[Page 796]]

         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
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR

[[Page 797]]





           Alphabetical List of Agencies Appearing in the CFR




                     (Revised as of January 1, 2004)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Advanced Research Projects Agency                 32, I
Advisory Council on Historic Preservation         36, VIII
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development, United      22, II
     States
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department                            5, LXXIII
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  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
  Food and Nutrition 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
  Procurement and Property Management, Office of  7, XXXII
  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
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       27, II
     Bureau of
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII
Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX

[[Page 798]]

Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
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
Broadcasting Board of Governors                   22, V
  Federal Acquisition Regulation                  48, 19
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Civil Rights, Commission on                       45, VII
Civil Rights, Office for                          34, I
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
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
  Federal Acquisition Regulation                  48, 13
  Fishery Conservation and Management             50, VI
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV, VI
  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, United States      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
Corporation for National and Community Service    45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Court Services and Offender Supervision Agency    28, VIII
     for the District of Columbia
Customs and Border Protection Bureau              19, I
Defense Contract Audit Agency                     32, I
Defense Department                                5, XXVI; 32, Subtitle A; 
                                                  40, VII

[[Page 799]]

  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
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 2
  National Imagery and Mapping Agency             32, I
  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 Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
District of Columbia, Court Services and          28, VIII
     Offender Supervision Agency for the
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
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employee Benefits Security Administration         29, XXV
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
Environmental Protection Agency                   5, LIV; 40, I, IV, VII
  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                5, III, LXXVII; 14, VI; 
                                                  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

[[Page 800]]

  Trade Representative, Office of the United      15, XX
       States
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
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
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
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Board                     12, IX
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 Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
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
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 Nutrition 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
General Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5

[[Page 801]]

  Federal Management Regulation                   41, 102
  Federal Property Management Regulations         41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Temporary Duty (TDY) 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
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          5, XLV; 45, Subtitle A
  Centers for Medicare & Medicaid Services        42, IV
  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
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V; 42, I
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  6, I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection Bureau            19, I
  Federal Emergency Management Agency             44, I
  Immigration and Customs Enforcement Bureau      19, IV
  Immigration and Naturalization                  8, I
  Transportation Security Administration          49, XII
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
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  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
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Human Development Services, Office of             45, XIII
Immigration and Customs Enforcement Bureau        19, IV
Immigration and Naturalization                    8, I
Immigration Review, Executive Office for          8, V
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; 42, I
Industry and Security, Bureau of                  15, VII
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General

[[Page 802]]

  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
Interior Department
  American Indians, Office of the Special         25, VII
       Trustee
  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
  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, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
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, XI; 40, 
                                                  IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration Review, Executive Office for        8, V
  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
  Employee Benefits Security Administration       29, XXV
  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 Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A

[[Page 803]]

  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II
Local Television Loan Guarantee Board             7, XX
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II
Micronesian Status Negotiations, Office for       32, XXVII
Mine Safety and Health Administration             30, I
Minerals Management Service                       30, II
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
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 and Community Service, Corporation for   45, XII, XXV
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 Council on Disability                    34, XII
National Counterintelligence Center               32, XVIII
National Credit Union Administration              12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
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 Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Standards and Technology    15, II
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV, VI
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
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
   Commission
[[Page 804]]

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
Oklahoma City National Memorial Trust             36, XV
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, United States        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 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
  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 Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Procurement and Property Management, Office of    7, XXXII
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; 28, XI
  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

[[Page 805]]

Technology, Under Secretary for                   37, V
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     5, L
  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
  Federal Motor Carrier Safety Administration     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
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury Department                               5, XXI; 12, XV; 17, IV; 
                                                  31, IX
  Alcohol and Tobacco Tax and Trade Bureau        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs and Border Protection Bureau            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
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the 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 807]]



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, 
2001, 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, 2001, see the ``List of CFR Sections 
Affected, 1949-1963, 1964-1972, 1973-1985, and 1986-2000'' published in 
11 separate volumes.

                                  2001

15 CFR
                                                                   66 FR
                                                                    Page
Chapter III
301 Authority citation revised28832...............................
    Nomenclature change28832......................................
301.1 (b)(1) and (d) amended; (b)(3), (c)(1) and (2) revised; 
        (c)(4) added 528832
301.2 (f), (h), (k), (r) and (s) amended; (f)(5) revised28833.....
301.3 (d) amended; (f) redesignated as (g); new (f) added28833....
301.4 (a)(1) and (2) revised; (a)(3) amended28833.................
301.5 (a)(1), (2), (3), (4)(v), (6), (c)(2), (3), (d)(1)(i), (ii) 
        and (e)(5) amended; (a)(5), (b), (e) introductory text, 
        (2) and (3) revised; (a)(7) and (e)(9) removed; (d)(5) 
        added28833................................................
301.6 (a) and (c) revised28834....................................
301.7 (a) amended28834............................................
301.8 (a)(1), (5), (b) and (c) amended; (d) revised28834..........
301.9 (a) introductory text amended 528834
301.10 Revised28834...............................................
303.2 (a)(5), (13) and (b)(1) amended34812........................
303.12 (a)(1) revised34812........................................
303.16 (a)(9) amended34812........................................
    (b)(1) amended34813...........................................
303.17 (b)(4) amended34813........................................
303.19 (a)(1) revised34813........................................
335 Added; interim 56461
340 Added; interim 56461
Chapter VII
734.4 (c) introductory text revised; interim42109.................
736 Authority citation revised49523...............................
736.2 (b)(7)(i)(B) and (C) revised49523...........................
738 Authority citation revised12846, 18402, 49523.................
738 Supplement No. 1 amended12846, 18402, 49523...................
   740 Authority citation revised5444, 6465, 12846, 18402, 36680, 
        49523...........................................................
740.1 (a) revised; interim36680...................................
    (a) amended; interim42109.....................................
740.2 (a)(6) added; interim36680..................................
740.7 Revised5444.................................................
    (d)(4) amended6465............................................
    (d)(1) revised12847...........................................
740.8 (c) amended; interim42109...................................
740.9 Heading and (a)(3)(i)(A) revised; (a)(2)(iii) amended; 
        interim 542109
740.10 (a)(3)(iv) and (b)(3)(i)(D) amended; (b)(2)(iv) revised; 
        interim42110..............................................
740.13 (d)(3)(i) amended; interim42110............................
740.15 (a)(1)(i), (ii), (2)(ii), (3)(iv) through (ix) amended; 
        interim42110..............................................
740.18 Added; interim36680........................................
740 Supplement No. 1 amended12847, 18402, 49524...................
    Supplement No. 1 amended; interim42110........................
742 Authority citation revised5444, 36680, 49523, 50091...........
742.2 (a)(2)(i)(C) added49524.....................................

[[Page 808]]

742.8 (a)(4)(ii) amended; interim36682............................
742.9 (a)(3)(ii) amended; (b)(1)(viii) added; interim36682........
742.10 (a)(4)(ii) amended; (b)(1)(ix) added; interim36682.........
742.12 (a) and (b)(3) revised; (b)(2) removed; (d) amended5446....
742.16 Removed50091...............................................
742.18 Revised49524...............................................
742.19 (b)(1)(xviii) added; interim36682..........................
742 Supplement No. 2 amended; interim36682........................
744 Authority citation revised12846, 18402, 24265, 50091..........
744.1 (c) amended50091............................................
744.11 Removed50091...............................................
744.12 Removed50091...............................................
744.16 Added12847.................................................
744 Supplement No. 3 amended18402.................................
    Supplement No. 4 amended24265, 50091, 65836...................
745 Authority citation revised49523...............................
745.2 Amended49525................................................
745 Supplement No. 2 amended49525.................................
746 Authority citation revised12846, 36680........................
746.2 (d) redesignated as (e); (a)(1)(xii) and new (d) added; 
        (b)(1) introductory text, (3)(iii)(B), (D), (4)(iii) and 
        new (e) revised; interim36682.............................
746.3 (a) introductory text revised; interim36682.................
746.7 Amended; interim36683.......................................
746.9 Revised12847................................................
748 Authority citation revised5444, 6465..........................
748.10 (b)(3) revised5447.........................................
    (b)(3)(i) amended6465.........................................
770 Authority citation revised49523...............................
770.2 (k) introductory text amended49525..........................
772 Authority citation revised18402, 36680........................
772.1 Amended18402................................................
    Amended; interim36683.........................................
    Amended; introductory text revised36910.......................
774 Authority citation revised18403, 36680, 49523.................
774 Supplement No. 1, Category 3 (ECCN 3A001)518403...............
    Supplement No. 1, Category 3 (ECCN 4A003)18405................
               Supplement No. 1, Category 1 (ECCN 1C997) amended; 
        interim36683....................................................
    Supplement No. 1, Category 0 (ECCN 0B001), Category 1 (ECCN 
1C012), Category 4 (ECCN 4A994), Category 5 (ECCN 5A991) and 
Category 7 (ECCN 7A003) amended36912..............................
    Supplement No. 1, Category 7 (ECCN 7E004) amended36913........
    Supplement No. 1, Category 1 (ECCN 1C350) amended49525........
              Supplement No. 1, Category 1 (ECCN 1C355 and 1C995) 
        amended49527....................................................
              Supplement No. 1, Category 2 (ECCN 2B350 and 2B352) 
        amended49528....................................................

                                  2002

15 CFR
                                                                   67 FR
                                                                    Page
Subtitle A
4a Technical correction2135.......................................
4.30 Corrected60282...............................................
Chapter I
50.50 Added54951..................................................
50.60 Added; eff. 1-3-0372096.....................................
Chapter III
303.2 (a)(16) added; eff. 1-17-0377408............................
303.16 (a)(11) added; eff. 1-17-03 577409
Chapter VII
Chapter VII Heading revised 520631
    Nomenclature change20632......................................
700.72 (b) amended45633...........................................
710.1 Amended20631................................................
719.1 (b) amended20631, 45633.....................................
719.8 (b) amended45633............................................
720.3 (c) amended45633............................................
732 Authority citation revised38859, 54952........................
732.2 (d) introductory text revised; interim38860.................
732.3 (e)(2) revised; interim38860................................
    (g)(1) revised54952...........................................
    (d)(4) and (i) introductory text amended70546.................
734Authority citation revised10613................................
    (a) revised10613..............................................
    Technical correction11896.....................................
734.2 (b)(9)(ii) and (iii) introductory text revised; interim38860
734.3 (b)(3) introductory text revised; interim38860..............

[[Page 809]]

734.4 (b) revised; interim38860...................................
734.7 (c) revised; interim38861...................................
734.8 (a) revised; interim38861...................................
734.9 Revised; interim38861.......................................
736 Authority citation revised37981, 54953........................
736.2 (b)(7)(i)(C) amended37981...................................
    (b)(4)(i) revised54953........................................
738 Authority citation revised10613, 11897, 37981, 55596..........
    Technical correction11896.....................................
738.4 (a)(2)(ii)(B) revised; interim38861.........................
738 Supplement No. 1 amended10613, 11897, 37981, 55596, 70546.....
740 Authority citation revised10613, 55598, 59725.................
    Technical correction11896.....................................
740.2 (a)(7) added59725...........................................
740.7 (c)(1), (d)(1) and (2) amended10610.........................
    Revised10614..................................................
740.9 (c) revised; interim38861...................................
740.10 (a)(3)(iii) revised55598...................................
740.11 Supplement No. 1 amended10610, 10614.......................
740.13 Introductory text, (d)(1) and (2), and (e) revised38862....
740.16 (b) revised10614...........................................
740.17 Revised; interim38862......................................
740 Supplement No. 1 amended10610, 10614, 37982, 55598............
742 Authority citation revised10613, 11897, 37981, 55598, 59725...
    Technical correction11896.....................................
742.2 (a)(1) introductory text, (2)(i)(A) and (C) revised; (a)(4) 
        added37982................................................
    (a)(3)(i) revised55598........................................
742.6 (a)(2) revised11897.........................................
    (a)(1) revised59725...........................................
742.12 (b)(3)(iv)(A) amended10610.................................
    (a)(1), (3) and (b)(3)(iv)(A) revised; (b)(3)(i) note and 
(iv)(B) note added; (b)(3)(i)(C) removed; (b)(3)(iii) amended10615
    Technical correction11896.....................................
    (b)(3)(i)(B) and (iv)(A) corrected13567.......................
742.15 Revised; interim38865......................................
742.18 Revised37982...............................................
742 Supplement No. 6 revised; interim38868........................
743 Authority citation revised461.................................
    Technical correction11896.....................................
743.1 (a) note added; (b) revised461..............................
    (c)(2) note amended10610......................................
    (c)(2) and note revised; (e)(2) added10615....................
744 Authority citation revised55598...............................
744.2 (c) revised55598............................................
745 Supplement No. 2 amended37983.................................
746 Authority citation revised70546...............................
746.1 (e) and (f) removed70546....................................
746.9 Removed70546................................................
746 Supplement No. 2 removed70546.................................
748 Authority citation revised10613...............................
    Technical correction11896.....................................
748.3 Heading revised; (a) amended; (b)(3) removed; (d) added; 
        interim38868..............................................
748.10 (b)(3) revised10615........................................
752 Authority citation revised461.................................
752.12 (b) redesignated as (c); new (b) added461..................
758 Authority citation revised54953...............................
758.1 (b)(1) amended70546.........................................
758.2 (c)(2) revised54953.........................................
764 Authority citation revised54953...............................
764 Supplement No. 1 amended54953.................................
    Supplement No. 2 amended54953.................................
766 Authority citation revised54953...............................
766.2 Amended20631................................................
766.4 Amended45633................................................
766.5 (b) amended45633............................................
766.25 (f) revised54953...........................................
770.2 (n) revised; interim38868...................................
772 Authority citation revised461, 38860, 54953, 55598............
772.1 Amended461, 54953, 55599....................................
    Corrected; CFR correction46850................................
    Amended; interim38869.........................................
774 Technical correction11896.....................................
    Authority citation revised37981, 55599, 58692, 59725..........
    Supplement No. 1, Category 1 (ECCN 1A002, 1B002, 1C002 and 
1C007) amended462.................................................
    Supplement No. 1, Category 2 (ECCN 2A001, 2B001, 2B008, 2D002 
and 2E003) amended463.............................................
    Supplement No. 1, Category 3 (ECCN 3A001, 3A002, 3A991, 3B002, 
3B991, 3B992, 3C001, 3D003, 3E001, 3E002 and 3E003) amended465....
    Supplement No. 1, Category 4 (ECCN 4D003) and Category 5 (ECCN 
5D001 and 5E001) amended472.......................................

[[Page 810]]

    Supplement No. 1, Category 6 (ECCN 6A003, 6A005, 6A995, 6C002 
and 6C992) amended473.............................................
    Supplement No. 1, Category 7 (ECCN 7A001 and 7A002) and 
Category 9 (ECCN 9B001 and 9E003) amended476......................
              Supplement No. 1, Category 4 (ECCN 4D001 and 4E001) 
        amended10610....................................................
    Supplement No. 1, Category 4 (ECCN 4A001, 4A002, 4A003, 4D001, 
4D002 and 4E001) amended510615....................................
    Supplement No. 1, Category 3 (ECCN 3A001) amended13091........
    Supplement No. 1, Category 1 (ECCN 1C107) and Category 9 (ECCN 
9A101) amended35428...............................................
    Supplement No. 1, Category 1 (ECCN 1C350) amended37983........
              Supplement No. 1, Category 1 (ECCN 1C353 and 1C355) 
        amended37985....................................................
    Supplement No. 1, Category 1 (ECCN 1C395); (ECCN 1C995) 
amended37986......................................................
    Supplement No. 1, Category 2 (ECCN 2B350) amended37987........
    Supplement No. 1, Category 2 (ECCN 2B352) amended37988........
    Supplement No. 1, Category 5 amended; (ECCN 5D002) revised; 
interim38869......................................................
    Supplement No. 1, Category 1 (ECCN 2B352) corrected50349......
    Supplement No. 1, Category 0 (ECCN 0B008 and 0B009) removed; 
(ECCN 0B003, 0D001 and 0E001) revised55599........................
    Supplement No. 1, Category 1 (ECCN 1A002) amended55599........
    Supplement No. 1, Category 1 (ECCN 1A202) revised; (ECCN 
1A225, 1A226, 1A227, 1B001 and 1B101) amended55600................
    Supplement No. 1, Category 1 (ECCN 1B201, and 1B225--1B228) 
amended55601......................................................
    Supplement No. 1, Category 1 (ECCN 1B229--1B233) amended55602.
    Supplement No. 1, Category 1 (ECCN 1C002, 1C010, 1C116, 1C202 
and 1C210) amended55603...........................................
    Supplement No. 1, Category 1 (ECCN 1C216 and 1C225--1C230) 
amended55604......................................................
    Supplement No. 1, Category 1 (ECCN 1C231--1C236) amended55605.
    Supplement No. 1, Category 1 (ECCN 1C237--1C240, 1D001 and 
1D101) amended55606...............................................
    Supplement No. 1, Category 1 (ECCN 1D201, 1E001, 1E101, 1E102, 
1E201 and 1E203) amended55607.....................................
    Supplement No. 1, Category 2 (ECCN 2A225, 2A226, 2A290 and 
2A291) amended55608...............................................
    Supplement No. 1, Category 2 (ECCN 2A292, 2A293, 2B001, 2B004 
and 2B006) amended55609...........................................
    Supplement No. 1, Category 2 (ECCN 2B007, 2B009 and 2B104) 
amended55610......................................................
    Supplement No. 1, Category 2 (ECCN 2B105 and 2B117) added; 
(ECCN 2B109 and 2B116) amended55611...............................
    Supplement No. 1, Category 2 (ECCN 2B201, 2B204 and 2B206) 
amended55612......................................................
    Supplement No. 1, Category 2 (ECCN 2B207, 2B209, 2B225, 2B226 
and 2B227) amended55613...........................................
    Supplement No. 1, Category 2 (ECCN 2B228--2B232) amended55614.
    Supplement No. 1, Category 2 (ECCN 2B290, 2B350, 2B991, 2D001, 
2D002, 2D101 and 2D201) amended55615..............................
    Supplement No. 1, Category 2 (ECCN 2D290, 2E001, 2E002, 2E101 
and 2E201) amended55616...........................................
    Supplement No. 1, Category 2 (ECCN 2E290) amended55617........
    Supplement No. 1, Category 3 (ECCN 2A001, 3A201 and 3A225) 
amended55617......................................................
    Supplement No. 1, Category 3 (ECCN 3A226--3A230) amended55618.
    Supplement No. 1, Category 3 (ECCN 3A231, 3A232, 3A233, 3A292 
and 3E001) amended55619...........................................
    Supplement No. 1, Category 3 (ECCN 3E201) amended55620........

[[Page 811]]

    Supplement No. 1, Category 6 (ECCN 6A003, 6A005, 6A202 and 
6A203) amended55620...............................................
    Supplement No. 1, Category 6 (ECCN 6A205, 6A225 and 6A226) 
amended55621......................................................
    Supplement No. 1, Category 6 (ECCN 6D001, 6E001 and 6E201) 
amended55622......................................................
     Supplement No. 1, Category 1 (ECCN 1B115, 1B117) amended58692
     Supplement No. 1, Category 9 (ECCN 9B115, 9B116) amended58692
     Supplement No. 1, Category 3 (ECCN 3A001, 3A002, 3D001 and 
3E001) amended59725...............................................
     Supplement No.1, Category 5 (ECCN 5A001, 5A991 and 5E001) 
amended59727......................................................
     Supplement No. 1, Category 6 (ECCN 6A002, 6A004, 6A008, 
        6A998, 6D001, 6D002, 6D104, 6D991, 6E001, 6E002 and 6E991 
        amended59729....................................................
                Supplement No. 1, Category 9 (ECCN (9B115, 9B116) 
        corrected70158..................................................
    Supplement No. 1, Category 0 (ECCN 0A018, 0A984--0A988, 0B986, 
0E018 and 0E094) amended; (ECCN) 0A989 removed70546...............
    Supplement No. 1, Category 1 (ECCN 1A005, 1B018, 1C018, 1C992 
and 1D018) amended70547...........................................
    Supplement No. 1, Category 2 (ECCN 2A993, 2B018, 2D018 and 
2E018) amended70548...............................................
    Supplement No. 1, Category 6 (ECCN 6A018, 6E001 and 6E002) 
amended70549......................................................

                                  2003

15 CFR
                                                                   68 FR
                                                                    Page
Chapter III
303 Nomenclature change56555......................................
303.2 (a)(13) and (14) amended56555...............................
303.5 (b)(6) revised56556.........................................
Chapter VII
732 Authority citation revised50472...............................
732.3 (n)(1) amended50472.........................................
732.5 Heading revised50472........................................
734.4 (b) revised35784............................................
738 Authority citation revised60289...............................
    Supplement No. 1 amended60289.................................
740 Authority citation revised50472, 68979........................
740.1 Heading revised; (d) amended50472...........................
740.2 (a)(8) added; interim16211..................................
740.9 (a)(2)(i) revised35784......................................
740.10 (a)(3)(v) redesignated as (a)(3)(vi); new (a)(3)(v) and (c) 
        added; interim16211.......................................
740.11 (a)(2) revised10589........................................
    Supplement No. 1 revised10590.................................
    (a)(2) introductory text revised; (a)(2)(iv)(G) and Supplement 
No.1 amended68979.................................................
740.13 (f) added; interim16211....................................
    (d)(1) Footnote 1 revised50472................................
740.14 (b)(4) amended; (d) and (f) revised35784...................
740.15 (c)(1)(iv) and (2)(iv) revised50472........................
740.17 (b)(3)(iii)(H) revised35785................................
740 Supplement No. 1 amended16146, 60289..........................
742.2 (a)(3) and (b) revised34529.................................
    (b)(1) corrected67031.........................................
742.5 (c)(1) amended16147.........................................
742.6 (a)(2) and (c) revised; (b)(3) added; interim16211..........
742.8 (a)(4)(ii) amended; interim16212............................
742.9 (a)(3)(ii) amended; (b)(1)(vi) revised; (b)(1)(vii) and 
        (viii) redesignated as (b)(1)(ix) and (x); new 
        (b)(1)(vii), (viii), and (xi) added; interim16212.........
742.10 (a)(4)(ii) amended; (b)(1)(vi) revised; (b)(1)(vii), 
        (viii), and (ix) redesignated as (b)(1)(ix), (x), and 
        (xi); new (b)(1)(vii) and (viii) added; interim16212......
742.15 (b)(1) amended; (b)(3)(ii) revised35785....................
742.19 (a)(3)(ii) and (b)(3) amended; (b)(1)(xi) revised; 
        (b)(1)(xii) through (xvii) redesignated as (b)(1)(xiv) 
        through (xx); new (b)(1)(xii), (xiii), and (xxi) added; 
        interim16212..............................................
742 Supplement No. 2 amended; interim16212........................
    Supplement No. 5 added35785...................................
743.1 (b)(1) and (c) revised; (e)(2) removed10591.................

[[Page 812]]

              (c)(1)(ii), (vi), (viii) and (2) revised; (c)(1)(v) 
        amended68980....................................................
744 Authority citation revised1797, 50472.........................
744.1 (a) revised; interim34194...................................
744.7 (b)(1)(iv) and (2)(iv) revised50472.........................
744.12 Added; interim34194........................................
744.13 Revised; interim34194......................................
744.14 Revised; interim34195......................................
744.17 Added1797..................................................
744 Supplement No. 1 added1797....................................
    Supplement No. 1, Category 3 (ECCN 3A001) amended1798.........
745 Supplement No. 2 amended34529.................................
748.3 (a) amended; (d) revised35785...............................
748 Supplements No. 1 and 2 amended35786..........................
750 Authority citation revised50472...............................
750.7 (b) amended50473............................................
752 Authority citation revised50473...............................
752.7 (b)(1) amended50473.........................................
752.15 (a) revised50473...........................................
754 Authority citation revised50473...............................
754.2 (h)(2), (i)(3) and (j)(2) revised50473......................
754.4 (c)(4) and (d)(3)(ii) revised50473..........................
758 Authority citation revised50473...............................
758.1 (b)(1), (2) and (3) revised; (e) amended50473...............
758.2 Introductory text and (c)(3) revised; (a) amended50473......
758.7 (b)(1)(i) and (6) amended50474..............................
758.9 Revised50474................................................
762 Authority revised16213........................................
762.2 (b)(4) through (41) redesignated as (b)(6) through (43); new 
        (b)(4) and (5) added; interim16213........................
770 Authority citation revised50474...............................
770.2 (m) revised35786............................................
    (e)(2)(ii) and (f) amended50474...............................
772 Authority citation revised50474, 54656........................
772.1 Amended10591, 50474, 54656, 60289...........................
    Amended; interim34195.........................................
    Amended68980..................................................
774 Authority citation revised54656...............................
    Supplement No. 1, Category 3 (ECCN 3A001) amended1798.........
    Supplement No. 1, Category 3 (ECCN 3A991) amended1800.........
    Supplement No. 1, Category 2 (ECCN 2A001, 2B001, 2B003 and 
2B006) amended10592...............................................
    Supplement No. 1, Category 3 (ECCN 3A001, 3A002, 3B001, 3B991, 
3C004, 3E001, 3E002 and 3E003) amended10593.......................
    Supplement No. 1, Category 4 (ECCN 4A003, 4D003 and 4D993) 
amended10598......................................................
    Supplement No. 1, Category 5 (ECCN 5A001, 5A991 and 5B001, 
5E001 and 5E991) amended10599.....................................
    Supplement No. 1, Category 5 (ECCN 5A002, 5B002 and 5E002) 
amended10601......................................................
    Supplement No. 1, Category 6 (ECCN 6A001, 6A005, 6A008, 6C992, 
6C994 and 6D003) amended10602.....................................
    Supplement No. 1, Category 7 (ECCN 7A003, 7D002 and 7D003) 
amended10602......................................................
    Supplement No. 1, Category 8 (ECCN 8A002, 8A018 and 8A992) 
amended10606......................................................
    Supplement No. 1, Category 9 (ECCN 9A012, 9D001, 9D002, 9D003 
and 9D102) amended10607...........................................
    Supplement No. 2 revised10608.................................
    Supplement No. 1, Category 1 (ECCN 1A101, 1A102, 1B101, 1B102 
and 1B115) amended16147...........................................
    Supplement No. 1, Category 1 (ECCN 1B117, 1B118, 1B119, 1C010, 
1C101 and 1C102) amended16148.....................................
    Supplement No. 1, Category 1 (ECCN 1C107, 1C111, 1C118, 1D102 
and 1D002) amended16149...........................................
    Supplement No. 1, Category 1 (ECCN 1D101, 1D103, 1E001, 1E101 
1E102, 1E103 and 1E104) amended16150..............................
    Supplement No. 1, Category 2 (ECCN 2B009, 2B104, 2B109 and 
2B116) amended16151...............................................
    Supplement No. 1, Category 2 (ECCN 2B119, 2B120, 2B121, 2B122, 
2D101 and 2E001) amended16152.....................................
    Supplement No. 1, Category 2 (ECCN 2E002 and 2E101) and 
Category 3 amended (ECCN 3A001 and 3A101)16153....................

[[Page 813]]

    Supplement No. 1, Category 3 (ECCN 3D101, 3D102, 3E101) and 
           Category 4 (ECCN 4D001, 4D002, 4D102, 4D994 and 4E001) 
        amended16154....................................................
    Supplement No. 1, Category 5 (ECCN 5A101, 5D101, 5E101 and 
5E111) and Category 6 (ECCN 6A002, 6A102, 6A103, 6A107 and 6A108) 
amended16155......................................................
    Supplement No. 1, Category 6 (ECCN 6B108, 6D102, 6D103, 6D104, 
6E101 and 6E102) and Category 7 (ECCN 7B001, 7B003, 7B101 and 
7B102) amended16156...............................................
    Supplement No. 1, Category 7 (ECCN 7B104, 7D101, 7D102, 7E001, 
7E101 and 7E104) and Category 9 (ECCN 9A106, 9A110, 9A115, 9A117 
and 9B005) amended16157...........................................
    Supplement No. 1, Category 9 (ECCN 9B106, 9B116, 9C110, 9D001 
and 9D002) amended16158...........................................
    Supplement No. 1, Category 9 (ECCN 9D101, 9D102, 9D104, 9D105, 
9E101 and 9E102) amended16159.....................................
    Supplement No. 1, Category 2 (ECCN 2A983, 2A993, 2D983, 2E001, 
and 2E002) amended; interim16213..................................
               Supplement No. 1, Category 2 (ECCN 2E983) amended; 
        interim16214....................................................
    Supplement No. 1, Category 1 (ECCN 1C351) amended34529........
    Supplement No. 1, Category 1 (ECCN 1C353, 1C991) amended34530.
    Supplement No. 1, Category 2 (ECCN 2B350) amended34531........
    Supplement No. 1, Category 2 (ECCN 2B352, 2E001) amended34532.
    Supplement No. 1, Category 2 (ECCN 2E002) amended34533........
    Supplement No. 1, Category 5 (ECCN 5A002) amended35786........
          Supplement No. 1, Category 6, corrected (ECCN 6E001 and 
        6E002)38599.....................................................
    Supplement No. 1, Category 1 (ECCN 1C111) amended54657........
    Supplement No. 1, Category 7 (ECCN 7A005) amended54657........
    Supplement No. 1, Category 7 (ECCN 7A103) amended54657........
    Supplement No. 1, Category 7 (ECCN 7A105) amended54657........
    Supplement No. 1, Category 7 (ECCN 7A994) amended54657........
    Supplement No. 1, Category 9 (ECCN 9A106) amended54658........
    Supplement No. 1, Category 2 (ECCN 2E001) corrected67031......
    Supplement No. 1, Category 2 (ECCN 2E002) corrected67032......
    Supplement No. 1, Category 1 (ECCN 1B001) amended68980........
    Supplement No. 1, Category 1 (ECCN 1C006) and Category 2 (ECCN 
2B006) amended68981...............................................
    Supplement No. 1, Category 3 (ECCN 3A001) amended68982........
              Supplement No. 1, Category 3 (ECCN 3A002 and 3A991) 
        amended68984....................................................
    Supplement No. 1, Category 3 (ECCN 3B001) amended68985........
    Supplement No. 1, Category 3 (ECCN 3E001 and 3E002) and 
Category 4 (ECCN 4A002 and 4A003) amended68986....................
    Supplement No. 1, Category 4 (ECCN 4D001, 4D994 and 4E001) 
amended68987......................................................
    Supplement No.1, Category 4 (ECCN 4E992) and Category 5 (ECCN 
5A001 and 5A991) amended68988.....................................

[[Page 814]]

    Supplement No.1, Category 5 (ECCN 5B001, 5D001 and 5E001) 
amended68990......................................................
    Supplement No. 1, Category 5 (ECCN 5A002) and Category 6 (ECCN 
6A001) amended68991...............................................
    Supplement No. 1, Category 6 (ECCN 6A002) amended68992........
    Supplement No. 1, Category 6 (ECCN 6A003) amended68993........
              Supplement No. 1, Category 6 (ECCN 6A004 and 6A008) 
        amended68994....................................................
    Supplement No.1, Category 6 (ECCN 6A992, 6E001 and 6E002) 
amended68995......................................................
    Supplement No. 1, Category 7 (ECCN 7A003) amended; Supplement 
No. 3 revised68996................................................


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